StrategyPg. 11 Marketing Organisation AuditPg. 11 Formal StructurePg. 11 Functional EfficiencyPg. 11 Interface EfficiencyPg. 12 marketing system AuditPg. 12 Marketing System InformationPg. 12 Marketing Planning SystemPg. 12 Marketing Control SystemPg. 12 New Product Development SystemPg. 12 Marketing Productivity AuditPg. 13 Profitability AnalysisPg. 13 Cost-Effectiveness AnalysisPg. 13 Marketing Function AuditPg. 13 ProductsPg. 13 PricePg. 13 DistributionPg. 13 Sales ForcePg. 14 AdvertisingPg. 14 Conclusions and RecommendationsPg. 14 Report Title:Sarto’s Gourmet Plaza
Prepared for:This report was prepared for Sarto’s Gourmet Plaza Prepared by: The report was prepared by a research company, in company with Ready-Made Marketing. Date:This report was completed in December 2008 Purpose of Report:Ready-made marketing engages a conduct a marketing audit on their client, Sarto’s Gourmet Pasta. The audit is to cover macro and micro environmental factors, and the internal marketing operations including the marketing organisation, systems and productivity. Sarto’s will make available existing research data, internal sales data and details of their supply chain logistics.
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The purpose of this audit is to research the Graceville trading area and its place in the wider Australian community, while specifically targeting the pasta restaurant trade. Priority of the audit is to uncover the key factors that have inhibited the client’s ability to achieve the objectives of the market plan. The audit is to make findings in relation to the marketing plan, culminating in a report that compares the marketing plan assumptions with actual findings. It is expected that the report will follow the outline of the marketing plan.
Macro Environmental Factors Economic Factors| Based on economic forecasts, Sarto’s Gourmet Pasta assumes that interest rates are coming down and that this reduction will create more disposable income and more money available for families to eat out. In terms of available credit, Sarto’s assumes that this will not change in the foreseeable future and will not be a threat to the potential sales. The same assumption is made about employment levels, where Sarto’s assumes that unemploymentlevels remain the same at 5. 1%. | Demographic Factors| Male and female. * Ages 25? 0, this is the segment that makes up 53% of the Graceville market according to the Graceville Chamber of Commerce. * Young professionals who live close to the location. * Have attended secondary and have further education. * An income over $60,000. The target market tends to eat out several times a week and also tend to patronize higher quality restaurants. | Technological Factors| Non Applicable| Social Factors| The number of hours of the demographic is working is increasing. Over the last five years the number of hours spent at work of their archetype customer has significantly increased.
As the number of work hours increases, there is a high correlation of people that eat out at restaurants. This is intuitively explained by the fact that with a limited number of hours available each day, people have less time to prepare their meals and eating out is one way to maximize their time. | Political – Legal Factors| From research carried out, Sarto’s identify that the government focus and emphasis in future legislative direction will be about ‘work/life balance’, which Sarto’s see a positive for their business model.
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Sarto’s, as a business operating in Australia, will abide by the law in all its dealings and comply with legislation that impacts on its business activities. | Micro Environmental Factors Market| In 2008, the global pasta market reached $10 billion dollars. Pasta sales are estimated to grow by at least 10% for the next few years. This growth can be attributed to several different factors. While not all pasta is ‘good for you’, particularly the cream? based sauces, pasta can be very tasty. Sarto’s sees no real substitute for what it provides – ‘Impossible to substitute this taste and offer’, according to Sarto’s owner and founder, M.
Sarto. | Customers| High customer loyalty among repeat customers. The reason for this trend is that within the last couple of years the restaurant offerings have increased, providing customers with new choices. Restaurant patrons no longer need toaccept a limited number of options. With more choices, patrons have become more sophisticated. This trend is intuitive as you can observe a more sophisticated restaurant patron in larger city markets such as Sydney or Melbourne where there are more choices available. Sarto’s strongly believe that customers are more interested in exotic taste than any other issue.
This will be why they shop with them and become loyal patrons. | Competitors| Apart of the national competitors, Sarto’s have the local competitors where this audit is based:Stella: This is an upscale Italian restaurant that has a limited selection of pasta dishes. Although, the selection is limited and pricey, the dishes are quite good. Peri Pasta: An Italian restaurant with a decent pasta selection, however quality is inconsistent. Niccolo: An upscale restaurant with a large wine selection and good salads. Everything else is mediocre at best and over-priced.
Service can often be poor. Sarto’s do not see the competitor changing their marketing strategy or product offer in the foreseeable future. | Suppliers| Ready supply of organic food in the area not like other states| Distributors / Dealers| Non applicable| Scope of the Report: Audit Type:It is and internal and external, to cover macro and micro environmental factors, including the marketing operations, marketing system and productivity as well. Timing:While the marketing plan is in action. It’s expected that the report will follow the outline of the marketing plan.
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Personnel: Name| Role| Information| 1. Mario Sarto| Owner of Sarto’s Gourmet Plaza| Who could provide reasons behind the decisions and directions given| 2. Eric Yeung| Accountant of Sarto’s Gourmet Plaza| Who could provide financial data on costings and profiability| 3. Adriana Como| Sales & Promotion of Sarto’s Gourmet Plaza| Who could helpt with the internal operational problems with the marketing process. | 4. Rose Ready| Owner of Ready-Made Marketing| Who provided the marketing plan and research data for use in the audit report. | Audit Methodology:
The best way for collecting data in this case is the primary collection, trough questionnaires, interviews, observations and focus groups to underlying reasons and motivations for people’s attitudes in order to Sarto’s Gourmet objectives and expectations. However, the secondary data collection is also an important source of information regards to competitors from Graceville. Having access at Restaurant Association, we can have qualitative data with competitive analyses. As a quantitative data, we find timely information regarding others restaurants with the same service offering.
Characteristics of the Audit: Marketing Environment Audit: Macro Environment: Economic Factors| This element is necessary, because could explain to this report if the way of spending money of the customers is still the same as predicted in the marketing plan or if there was any changes in their income and needs. | Demographic Factors| Yes, it was necessary to cross the data about the target market. | Technological Factors| Yes, looked through research reports from Australian Treasury trends and information about current levels of credit availability, and innovations about packages could be found. Social Factors| Yes, it was necessary in terms of attitudes and values which affects their relationship with the Sarto’s Gourmet Plaza. | Political – legal Factors| As the same situations as technological factors, previous researches was found in terms of employees conditions. Mario also spoke about the fact that the government had not built the ‘Park & Ride’ parking area as planned and had stopped the project for another year. This Mario said had a big impact on people having access to the restaurant at night. | Micro Environment:
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Market| No changes in the market were found. | Customers| According to the focus group, there was a consensus among the participants about the preference in take away and eat at home than eat out. | Competitors| Mario Sarto explained that Stella’s, one of his local competitors, had built a large 30 seat outdoor eating area and that it seemed to be full every time he went past and looked in. Also one of the franchise chains, Pasta Bite, had opened up in the adjacent suburb giving the local customers greater options in pasta. |
Suppliers| It wasn’t necessary. | Distributors / Dealers| It wasn’t necessary. | Marketing Strategy Audit: Marketing Objectives| Yes, to outline the report audit with the marketing objectives intended in the marketing plan. | Strategy| Yes, it was important for identifying and analysing the target market, and determining how to meet the need of the market. For example, the great customer service is not being reached as planned for Sarto’s. | Marketing Organisation Audit: Formal Structure| Yes, it was necessary for the audit report.
When talked with Rose Ready of Ready-Made Marketing, she spoke for a while about Ready-Made Marketing’s role with the owner Mario Sarto and the fact that he made all the decisions relating to the marketing, and mostly without any consultation with them. Rose accepted the position but feel that it was not always in the best interests of Sarto’s business or its customers. Adriana was in charge of the sales and promotions for Sarto’s but worked as a supervisor in the kitchen as well. She admitted that her skills and qualifications were more in kitchen management than sales, but Mario had asked her to carry out this function. Functional Efficiency| Yes, it was necessary for the audit report. According to the Rose, for instance, Mario had rejected the idea of converting the take away ordering system to the new internet based technology. Her own experience was that the staffs, while being very competent cooks, were not skilled in telephone sales anyway. | Interface Efficiency| Yes, it was necessary for the audit report. Adriana said one of the biggest problems was that the phone ordering system was constructed in the kitchen next to the cook with the most responsibility to compile and check every meal.
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She said it created real logistics problems in dealing with take away orders. | Marketing System Audit: Marketing System Information| As seen in this marketing audit, Ready-Made Marketing use some of the following reports to obtain findings on the demographic, economic, ethical, geographic, political/legal/, social/cultural, technological influences. In a comment about new product development, Adriana Como explained that there were was plenty of research available in the Restaurant Association’s monthly magazine, but Mario just left that for magazine for the staff in the lunch room and never consulted it. Marketing Planning System| Yes, it was necessary for the report. For example when Sarto’s had to drop the prices on pasta products due to two other competitors close to him, giving the local customers greater options in pasta. | Marketing Control System| Yes, it was also necessary, however, no one efficiently control system was found. | New Product Development System| According to the marketing plan, new products would be developed on a regular basis in thine with menu changes which is targeted at every three months. The plan for product testing is to offer ‘free meals’ to regular customers, staff and their families.
By getting feedback from these people, changes can be made or products ‘canned’ so that only tested and proven products make it onto the menu list. However, new products were developed based on Mario’s assessment of how exotic the new product was or how easy it was to make. Mario felt that testing new products by giving them away was too costly and counterproductive to increasing sales. | Marketing Productivity Audit: Profitability Analysis| According to the financial analysis from 2009 the take away business was really growing and not the family group specials that Mario was targeting with his advertising in Bmag.
Segment Budget – 2009 Actual – 2009 Individuals 120,000 121,000 Families 150,000 112,000 Take away 180,000 203,000 Total 450,000 436,000 | Cost – Effectiveness Analysis| With the prices on pasta dropped down, the accountant said that pasta gross profit % was only 45%. Mario explained that his strategy to deal with the slow sales was to make the flyers more single product promotion rather than promoting the band and the assortment offer.
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As far as Mario was concerned advertising and promotion should be directed at getting next week’s sales and nothing more. When Mario spoke about the flyer, Eric said that there had been a huge increase in flyer unit costs. He believed it was the short print runs and the use of full gloss colour that was causing it. Mario explained that he needed the high gloss to show his pasta to the best advantage and short print runs because he was offering different ‘specials’ every week. | Marketing Function Audit: Products| Yes, it was necessary and according with this audit, there was no complaining about the product offered by Sarto’s Gourmet.
According to the focus group from the local community, the group want convenience products and more healthy options. | Price| Yes, it was necessary. According to the focus group, some customers questioned the ethics of Sarto’s Gourmet Pasta, who charged more for delivery into the neighbouring ‘gated estate’ than to every other home delivery customer. | Distribution| Sarto’s food distributed through a take away model where customers can phone in their order and come to the restaurant to pick it up, come into the restaurant, place the take out order and wait for it to be completed, or come in and dine at the restaurant.
However, according to the focus group, customers want to order via the internet and not be stressed out by the phone system with its delays and difficult to understand accents and noise. | Sales Force| When the group was asked about it, they had commented: “They may be great cooks, but they don’t know how to handle telephone sales”. | Advertising| According to the marketing plan, the most successful advertising would be adverts and inserts in the BMag as well as a PR campaign of informational articles and reviews also within the BMag.
Promotions would be taken the form of in restaurant entertainment and ‘free meal’ giveaways. Heavy emphasis on promoting the brand and not just advertising products. As Rose Ready from Ready-Made Marketing, there was no write up of the business at all for the entire first year, and she indicated that Mario believed that all the business needed was the delivery of regular flyers in local letterboxes, but according to Rose the feedback from the surveys showed that the majority of customers thought that flyers were mostly junk mail anyway. |
Conclusions and Recommendations: In conclusion, the main points of the report are about: * The customers preference in take away and eat at home rather than eat out, which is different from what was explained in the marketing plan. * The take away business is more profitable than the individuals and families products. * Customers want to order via the internet and not be stressed out by the phone system with its delays and difficult to understand accents and noise. * It would be necessary to convert the take away ordering system to the new internet based technology. Customers prefer fewer flyers which they saw as ‘junk mail’, and the flyer should be more informative about the ingredients and offer a full menu. According to these statements, in the near future, Sarto’s Gourmet Plaza should improve their take away system for an internet base and also create an organogram with roles and responsibilities for each area. Who would be responsible to look after the kitchen, for the marketing and sales and also to coordinate the only take away orders. Also, an appropriate and often way of advertising the products is need.
According to the marketing plan, Sarto’s Gourmet Plaza should advertise at BMag magazine, as well as a PR campaign of informational articles and reviews. The use of research data should be used before take any decisions. Another important point is the way to develop new products. The plan for product testing should be followed by offering ‘free meals’ to regular customers, staff and their families and getting real feedbacks, instead of be developed by Mario Sarto’s opinion of how easy is to make it or how exotic it could looks like.