Mkt340 Strategic Marketing Management Answers Assessment Answers
Task
This assessment focuses on implementation of marketing strategy. With the same organisation you selected in assignment 1 and 2, examine the tools for strategy (chp 12) implementation and including Value Chain Analysis.
Please select 2 approaches to implement your strategy and briefly explain the benefits of their usage in an organisation of your choice. Choose one of the models and using academic and organisational resources, show how the model could be informed (populated or used) within the organisation.
Show how you would roll out the model in terms of collecting information and using the model, through electronic communications, personal interactions, meetings and any support activities you might need i.e an off site location, competitive shop, other research etc. Include job titles of people you'd expect to contribute to the process.
Rationale
This assessment task will assess the following learning outcome/s:
- be able to develop an integrated strategic marketing plan with appropriate and measurable strategic marketing goals.
This assignment is about understanding and applying 1 or more strategic development tools to develop marketing strategy for a known organisation. It can be any organisation large or small, NFP or commercial, but focus should be on a single SBU, Brand or span of control. It also asks you to justify why you think a particular strategic development tool is appropriate. This assessment is also marked on the quality of your presentation and how convincing it is. A key aspect of any acceptance of strategy within an organisation by top management.
This assessment meets one of the most important learning outcomes of this subject:
- be able to develop an integrated strategic marketing plan with appropriate and measurable strategic marketing goals
Answer
Introduction
Red Rooster is one of the largest fast-food companies in Australia with a considerable large market control. The company was founded in the year 1972 by the Kailis family. Over the past 40 years, Red Rooster has been in existence, it has increasingly grown and expanded. Currently, Red Rooster has over 366 stores and more than 7500 staffs all across Australia (Wilson & Gilligan, 2012). In comparison to other fast-food industries in Australia, Red Rooster portrays its brand as a healthy option in the market with an increased emphasis on quality and fast service. Red Rooster mission statement is defined as “Red Rooster is a leading Australian-owned quick service restaurant, committed to providing innovative products that are consumer and lifestyle focused. We aim to exceed our customer expectations on quality, value, service, and hygiene.”
Apart from the chicken products as one of the main specialization of the company, other services, and products offered by Red Rooster include beverages and desserts, fish related products, burgers, and whole and half roasts. In the approach of expansion and maintaining competitive advantage, Red Rooster has also been identified to have a continuous increase in its number of franchises. Therefore, the main feature of this study will be to reflect on the Red Rooster strategic marketing plan for the next 3 years by analyzing its environmental factors and most effective strategies for the company (Pride, Ferrell, Lukas, Schembri, & Niininen, 2012). The main two models that I aim to implement at the of the study are Product Expansion Grid and Sustainable Competitive Analysis.
Internal Environment Analysis-Red Rooster SWOT Analysis
Strength
Red Roost has a very strong market position in Australia with more 366 stores.
Strong and unique brands recipes such as marinating chicken.
The innovation of the company is extremely high with continuous additions in taste and brand variation.
The organization structure of Red Rooster is significantly strong with more than 7500 employees.
Weaknesses
Unlike its major competitors such as Mac Donald’s, Subway, KFC, and others, Red Rooster has very poor expansion strategies.
Due to the limited market expansion in other regions, Red Rooster has limited experience in brand and organization development (Pride et al., 2012).
Limited share market due to the increased competition in the fast-food industry.
Opportunity
Through the increase in demand in fast-food products in emerging market, Red Rooster has significant capability in utilizing this markets.
Through the expansion of Red Roost in a new market, there will be significant product diversification (Christopher & Peck, 2012).
Introduction and enhancement of online services which offer more customer friendly services.
Threats
The increasing fast-food companies have a significant threat to the company performance.
Change in policies in markets such as India will greatly affect the entrance of Red Roost.
Increased awareness in healthier food and diet is a significant threat to the fast-food industry (Food & Council, 2014).
External Environment Analysis-Red Rooster PEST Analysis
Political Factors
The political stability in Australia is one of the best all around the world. With the replacement of Whole Sale Tax by Goods and Services Tax, the Australia government has provided enough incentives to companies such as Red Rooster to flourish and offer sustainable products to consumers. The use of “Free trade” policy is also another important aspect in Australia trade policies supporting business and corporate development (Mullins, Walker, Boyd, & Larréché, 2010).
Economic Factors
Australia credit rating i.e. ‘Aaa’ is one of the best elements which can be used to analyze the economic growth in the country. Through the healthy budgets and the enhancement in Wage Cost index by 3.6%, the social and community development in Australia has increasingly continued to grow thus portraying strong economic sustainability (Sokhatska & Lahotska, 2013).
Social Factors
The population of Australia has continued to increase significantly where currently there are 24.2 million people which a significant increase especially in the past decade. Also, more 80% of the population today is considered to learned which offers wide skill labor. Despite the highly practiced American culture, the increase in health awareness is also one of the main challenging concern for the fast-food industry in Australia (Food & Council, 2014).
Technology Factors
The technical efficiency of Australia is one of the best in the world. This can be perceived from the internet adaptation in Australia where it has significantly enhanced innovation and development of many economic sectors. With this, Australia is considered as the leading nations in the exportation and importation of goods.
Competitor’s Analysis
Fig 2: Competitor Analysis – Perceptual map of fast-food positioning (Kelly et al., 2016)
The main competitors for Red Roost include Mac Donald’s, Subway, Pizza Hut, KFC, and Hungry Jack’s. Most of the companies such as Subway and Mac Donald’s have continued to improve on new and better strategy approaches. Example, Subway has created healthier strategies on its product production and sales services through customization of flavors and ingredients (Hollensen, 2010). Through this, customers are given the power to control the type of product ingredients, flavor, and other substances which they may opt to be added or removed. This method has achieved significance profit growth for Subway where its reported its considered as very huge threat for Mac Donald’s by over 625 trading stores.
Currently, Mac Donald’s has also over 726 stores throughout Australia which mark by its strong dominance in the market. Mac Donald’s main marketing strategy is focused on offering quality and sustainable services which are also cheap to consumers (Cheng, Chiu, Hu, & Chang, 2011). Like in the US, the strategy has also significantly performed in most of the Mac Donald’s market setups i.e. including Australia. Mac Donald’s dominance in the fast-food industry in Australia and other parts has been also contributed by its variety of product brands. KFC and Pizza Hut have also applied major approaches to the development of healthier brand products (Lee & Carter, 2011). Therefore, health approaches have been considered as one increasing concern in the world today thus challenging fast-food companies in creating better and healthier strategies.
Target Market Opportunity Analysis
- Currently, the fast-food industry in Australia is estimated to be worth more than AU$ 20 billion.
- The growth has been majorly contributed the by the increasing trend and culture of Australians in enjoying eating meals out
- In regards to the customer perception, Red Roost has a very strong brand image where more than 70% of the consumers reported to opt its products and services (Christopher & Peck, 2012).
Over the past decade, the food services in Australia has continued to increase which has been contributed by a number of factors which include increased population and the introduction of favorable policies such as Good and Service Tax. Currently, the fast-food industry in Australia is estimated to be worth more than AU$ 20 billion. Since 2012, the percentage of fast-food retail sales has incredibly increased with about 3.6%. Through this, there has been also the emergence of new competitors in Australia which include Guzman y Gomez, Zambero, Taco Bell, and Oliver’s. The growth has been majorly contributed the by the increasing trend and culture of Australians in enjoying eating meals out (Kelly, Freeman, King, Chapman, Baur, & Gill, 2016).
Through this trend, its estimated that the fast-food industry in Australia will also increase by approximately 4% in the 2 or 3 years. Example, in comparison to other strong fast-food markets such as the US, Australians only eat out half of the percentage which US citizens do (Schlosser, 2012). In regards to the customer perception, Red Roost has a very strong brand image where more than 70% of the consumers reported to opt its products and services. Despite this, 80% of consumers the price mix of Red Roost is considered fairly moderate with its competitors while only 15% considered the prices as cheap (Christopher & Peck, 2012). Generally, through the analysis, Red Roost market awareness strategies are basically very poor leading to also poor positioning in the market.
Analysis of Marketing Strategies Used by the Red Rooster
- Through the increasing health awareness issues, the company focus on satisfying the customer needs have been through the increase of healthier products (Chen & Hu, 2010).
- The main pricing technique used by Red Roost is valuing of the brand through measuring its superiority and demand in the market and also use of competitors value.
Product and Services
As stated earlier, Chicken products are considered as one of main focus brand of Red Roost. Apart from this, Red Roost has also a large portfolio of brand products linked to it which also range with the kind of market segmentation. Through the increasing health awareness issues, the company focus on satisfying the customer needs have been through the increase of healthier products (Chen & Hu, 2010). This has majorly been portrayed through generating balanced diet meals and with the decrease of fat in food. In the approach of attracting more customers, Red Roost has expanded its chicken brand menu in line with increase the of aside menu.
Pricing
According to the Red Rooster menu, most of the products can be purchased in different aspects which include individual, group, and family packages. Generally, all types of products come in 3 or more sizes which allow customers to pick the most convenient sizes to meet their demand. The main pricing technique used by Red Roost is valuing of the brand through measuring its superiority and demand in the market. The other approach is through standardization of the product in comparison with competitor’s set prices (Hollensen, 2010).
-
Red Roost has majorly utilized is the application and use of franchises.
-
It has about 366 stores throughout Australia.
-
With the growth of technology and social media, like most of its competitors, Red Roost has developed a wide use of internet services in its sales and promotion. (Wilson & Gilligan, 2012)
Place/Distribution
In the aim of increasing the company share market, the main approach that Red Roost has majorly utilized is the application and use of franchises. Through the use of targeted market, most of Red Roost location include university area, City areas, and shopping malls, which are characterized to have the highest number of young people in Australia. Also, in the past few years, Red Roost has concentrated in re-constructing its stalls to catching and modern restaurants.
Promotion
The advertising of the company is majorly specified for three major purposes which comprise on emphasis in product awareness, sales promotion, and building a brand image. The main utilized methods of advertising include Radio and TV commercials, and use of Magazines and Newspapers such as Sydney Magazine and the Sun Herald. Sales promotion is also one of the majorly utilized marketing strategies by Red Roost (Wilson & Gilligan, 2012). The two main goals for this method is to maintain customer loyalty and to also encourage customers to try new product brands from the company. This is mainly achieved through offering percentage discounts and giving out free meal cards. In the approach to maintaining good public relation, Red Roost majorly utilizes specialist reviews (Wellard, Glasson, Chapman, & Miller, 2011). This is mostly covered in lifestyle sections of magazines or newspapers where Red Roost is able to showcase its product suitability and steps taken to enhance customer’s health. With the growth of technology and social media, like most of its competitors, Red Roost has developed a wide use of internet services. This is through the application and use of social media, ads, website, and other direct and online approaches.
Implementation Plan
- In order to achieve an effective market strategy in Red Roost management, the approach of the implementation will be based on a systematic cycle overview i.e. Plan, Do Check and Act (PDCA).
- According to Red Roost environment analysis, the main models for effective change comprise of Product Expansion Grid model and Sustainable Competitive Analysis model.
In order to achieve an effective market strategy in Red Roost management, the approach of the implementation will be based on a systematic cycle overview i.e. Plan, Do Check and Act (PDCA). This will help in monitoring the implementation process and also be able to identify some of the challenges that might arise with the process. Scheduling and time management are also important aspects in the consideration of the use of systematic cycle during the implementation (Jarillo, 2013). According to Red Roost environment analysis, one of the main weakness of the company is lack of product diversification i.e. poor brand portfolio and poor promotional campaign.
Product Expansion Grid is designed to boost the development of products in the firm and at the same time evaluate on ways of entering into a new market through the use of market penetration strategy. With the use of product expansion grid model, Red Roost major marketing challenges will be effectively curbed and in the same line increase the company market share which also means an increase in income revenue.
The other model that is to be implemented is Sustainable Competitive Analysis model. Sustainable Competitive Analysis model is mainly designed to investigate and determine a competitor’s major strength and weaknesses (Braue, 2011). Through the sustainable competitive analysis, Red Roost will be to determine effective marketing approaches and major competitive gaps in the market. Through the application of the model, Red Roost promotional campaigns will also be enhanced very efficiently. The ability of Red Roost to attain and sustain competitive advantages will also be significantly advanced.
The Product Market Expansion Grid model will be the main implementation strategy. Majorly, the model is focused in into major parts of marketing which include product production and the market. The model is also attained through the implementation of four major strategies which include Market penetration strategy, Market development strategy, Product development strategy, and the Diversification strategy (Aaker & McLoughlin, 2010).
Marketing Penetration Strategy will be used to improve the sales of currents products in Red Roost by also concentrating on the current markets. This can be mainly achieved through the increase of stores in the current markets and improving promotional approaches of the different target markets. Example, open 50 stores in Sydney and improve the product quality.
Market development strategy will mainly comprise of approaches of identifying new market segments. This is mainly achieved through thorough geographic and demographic research of the major potential areas (Gilligan & Wilson, 2012). Red Rooster new market segment should be focused in capturing middle-aged and senior population as its new market development strategy.
Product development strategy is one of the key requirement of this strategy implementation plan since Red Rooster portrays very poor product innovation and development. Red Rooster should join alliances in the approach of improving its product service. This includes the provision of meals during lunch and dinner times (Best, 2012).
Diversification strategy will be mainly utilized by Red Rooster in new business start-ups and acquiring of small businesses. Unlike in the franchise method, the company will be able to tap other market segments with complete different brand e.g. clothing industry.
Generally, in order to implement the model successfully, I would require the entire the attention of the entire senior management i.e. CEO, Branch managers, Marketing and Advertising managers, Directors, HR, and others. Through the application of the model, it will also be easy to enhance the staff and customer engagement through the use of integrated marketing strategies.
Conclusion
In summary, Red Rooster is regarded as one of the largest fast-food companies in Australia with a significant originality competitive advantage. Currently, the market share of Red Rooster is approximately 7.7%. With the increase of fast-food demand, Red Rooster has to generally re-strategize its approaches in order to tap the new market opportunities (Cheng et al., 2011). Through the implementation of product expansion grid model, Red Rooster will be able to achieve the maximization of the current products and market, penetration of new markets, and most importantly diversification of the product portfolio. The model will also focus on the improvement of promotion strategies and enhancing sustainable communication and engagement between shareholders.
References
Aaker, D. A., & McLoughlin, D. (2010). Strategic market management: global perspectives. John Wiley & Sons.
Best, R. (2012). Market-based management. Pearson Higher Ed.
Braue, D. (2011). Dragging the supply chain. CIO, (Jul/Aug 2011), 74.
Chen, P. T., & Hu, H. H. (2010). How determinant attributes of service quality influence customer-perceived value: an empirical investigation of the Australian coffee outlet industry. International Journal of Contemporary Hospitality Management, 22(4), 535-551.
Cheng, C. C., Chiu, S. I., Hu, H. Y., & Chang, Y. Y. (2011). A study on exploring the relationship between customer satisfaction and loyalty in the fast food industry: With relationship inertia as a mediator. African Journal of Business Management, 5(13), 5118-5126.
Christopher, M., & Peck, H. (2012). Marketing logistics. Routledge.
Food, A., & Council, G. (2014). Quick service restaurant initiative for responsible advertising and marketing to children. Australian Food and Grocery Council.
Gilligan, C., & Wilson, R. M. (2012). Strategic marketing management. Routledge.
Hollensen, S. (2010). Marketing management: A relationship approach. Pearson Education.
Jarillo, J. C. (2013). Strategic networks. Routledge.
Kelly, B., Freeman, B., King, L., Chapman, K., Baur, L. A., & Gill, T. (2016). The normative power of food promotions: Australian children’s attachments to unhealthy food brands. Public health nutrition, 19(16), 2940-2948.
Lee, K., & Carter, S. (2011). Global marketing management. Strategic Direction, 27(1).
Mullins, J. W., Walker, O. C., Boyd, H. W., & Larréché, J. C. (2010). Marketing management: A strategic decision-making approach. Boston: McGraw-Hill.
Pride, W. M., Ferrell, O. C., Lukas, B. A., Schembri, S., & Niininen, O. (2012). Marketing principles. Cengage Learning.
Schlosser, E. (2012). Fast food nation: The dark side of the all-American meal. Houghton Mifflin Harcourt.
Sokhatska, O., & Lahotska, N. (2013). Strategic marketing management. Journal of the European economy, (12,? 1), 117-120.
Wellard, L., Glasson, C., Chapman, K., & Miller, C. (2011). Fast facts: The availability and accessibility of nutrition information in fast food chains. Health Promotion Journal of Australia, 22(3), 184-188.
Wilson, R. M., & Gilligan, C. (2012). Strategic marketing management. Routledge.
Buy Mkt340 Strategic Marketing Management Answers Assessment Answers Online
Talk to our expert to get the help with Mkt340 Strategic Marketing Management Answers Assessment Answers to complete your assessment on time and boost your grades now
The main aim/motive of the management assignment help services is to get connect with a greater number of students, and effectively help, and support them in getting completing their assignments the students also get find this a wonderful opportunity where they could effectively learn more about their topics, as the experts also have the best team members with them in which all the members effectively support each other to get complete their diploma assignments. They complete the assessments of the students in an appropriate manner and deliver them back to the students before the due date of the assignment so that the students could timely submit this, and can score higher marks. The experts of the assignment help services at urgenthomework.com are so much skilled, capable, talented, and experienced in their field of programming homework help writing assignments, so, for this, they can effectively write the best economics assignment help services.
