Managing a good, even excellent market performance promises the organisation context to achieve the business success. The role of marketing advances the organisation for effective performance and ensures effective use of resources in marketing and marketing-related activities. One way to assess your organization's performance and to understand what changes to make is through evaluation of market performance. Robert Camp suggests that by using benchmarking to identify and improve "best marketing practices," a company can enhance business performance entirely. According to a benchmark study by Aberdeen Group, a Harte-Hanks company, more and more organisations achieving the highest levels of performance from customer marketing and marketing operations have instituted marketing performance strategies and measurement capabilities (Aberdeen Group, 2007).
Today’s marekt for any marketer, it is more complex and competitive. The organisation will found that it is difficult to succeed just depending on productivity oriented performance. In other word, the time has to stop talking about why and what is marketing (Kotler and Kevin, 2006). It needs more focus on how to make marketing performance in any organisation. Recently, the CitySnacks once again assessed the market competition. They strongly suggested that a market division should specially established within organisation. Thus, that is exactly the program emphasizing on.
2 Current market situation for CitySnacks Restaurants
City Snacks provide most fast food in most UK city centres and become a popular pleasure food group. Over the last four years’s expansion, this restaurant has shown a rapid growth once a upon a time with 140 outlet restaurants nationwide. CitySnacks offer various fast food meals from the breakfast to mid-evening with high quality and standardised hamburger and pizza house offers. However, the market competition is intense in UK’s restaurant industry from local hotels, coffee shops and supermarkets. Marketing performance becomes a key elements to continually improve the organisational performance.
Current market situation for CitySnacks
CitySnacks provides a very diversity of fast foods range from breakfast through mid-evening. In UK, this restaurant depends on its higher perceived quality bracket and gain a wide mix of consumers including officers, businessmen, service workers and shoppers and families, as well as childrens and tourists. The consumers’ valued hamburger and pizza are welcomed. Recently, CitySnacks successfully became a very member of Pleasuure food group, one city food association in UK. Now, CitySnacks holds 140 restaurants in national wide as the way of outlet. As well as, it operates restaurants in several airport, railway statation, and motoway service areas in UK. Although the success of business, CitySnacks must face more competition from other dining offers, hotels, supermarkets and shoppes locally in future. Competitors in London such as Pierre Gagnaire, Tom Aikens and Tony Flinn in Leeds are busy to snatching market sharing from CitySnacks and developing good market performances. Consumers are increasingly demanding more for restaurants also. They experienced all of restaurants with comparison of requirements. From the financial year, the business is declining and the market is becoming small.
In addition, there is historical lack of human resource management in market department. Despite of a obvious plaque hanging on the wall in market department, But there is no really teamwork spirit in the department. Every emploee in market department is relatively charge for special mission. There is no real communication and corporation. Moreover, recently two of young graduate market analysts has left off to McDonalds. As a result, the work of market department is more or less lack of effectiveness. Otherwise, the marekt department is lack of financail support from budgets, even the budgets were cuting back. Accoding to Julia, one emploee in market departmen, the market research and data did not achieve the goal of CitySnacks. Although the promotion people last year spent nearly ￡1 million for various campaigns. the market analysis did not well indicate the favourites of consumers. Meanwhile, the market department focused little on the consumer requirements and creative market research and feedback.
As a result, according to the word of Bill, the finance director of CitySnacks, there is no time to any manoeuvre activity for the market plan. It strongly needs a powerful market approach recently. CitySnacks must consider more about marketing issues in future in order to gain the declining market share. The economic growth of CitySnacks has shown slowed down recently. Moreover, this change maybe trapped the organisation into difficults to operations.
3 Views for the delay of Induction meeting
As regarding for the postponement decision of induction meeting, I am so angry that there is nothing wanted to say while putting down the phone. Now, I must change my programs in the next few days and wait for notice of HR directors.
Despite of the delay for meeting, it allows much time to collect the information of organisation and plan my market approaches further. Certainly, there are many problems existing in CitySnacks. Primarily, the effectiveness of operations in CitySnacks is more or less disordered by the retail staff turnover. It closely related with the market department. Less effective staff for retail decides declining market performance. Any good market strategy would be carried out successfully.
Secondly, the CitySnacks is now lied on the point of juncture. Over the years, it was forced to focuse on the objectives of being a division of Pleasure Food Group. Thus, all of performances mainly operated under the pressure of Pleasure Food Group. As a result, market performance is almost neglected. Now, the importance of market oriented approaches are strongly needed for turnover company’s daily slow growth.
Thirdly and the most importantly, the operations of company exactly do not show this emergence for marketing planning. Just before long, I was told by Ken Jones with enormous enthusiasm to develop market strategies to manage excellent market performances. Nevertheness, he made the clear promise that the budget is available to develop the market department and any strategies. However, Bill sadly told me that immediate financial support would be available for market department. It is funny. Who I should believe? Maybe, I must understand the difficulties to develop these market-oriented reformations in CitySnacks including finance, human resource management and operation of strategies.
4 Marketing issues addressed on meeting
Restaurants industry in UK is the most competitive sector which depended largely on the market performance and how to manage the consumers’ demanding (Customer Service, 2007). Weighing together my these day’s experiences in CitySnacks, I sincerely want to address some marketing aspects. My report mainly includes four large parts repectively market overview of CitySnacks, current problems of market management and marketing planning and position, Evaluation of market performance.
Market overview of CitySnacks
Over years of development, the CitySnacks has growed rapidly with total 140 restaurants outlet presentation national wide. The products and service also ranged from wide diversity from breakfast to mid-evening. Epecially, the high quality hamburger and pizza house offers has established its competitive advantages in UK’s restaurant industry. Consumers as well as comprises of large scales including every class of society such as shoopers, students, tourists and workers. However, according to a new market research, it indicated that the consumer of CitySnacks is declining, even a plenty of loyal consumer also got out the service of CitySnacks. Thus, the importance of improve market performance is emergent for the organisation. Effective market-oriented approaches is stongly needed as well. In this part, it overviewed the market situation of CitySnacks and demonstrated the significance of focusing on market performances for CitySnacks.
Current Problems of Market management
Market management is a business sector which emphasized on the practical application of marketing techniques and marketing resources in organisations. Strictly speaking, the market management comprises of a wide scale of activities. As regarding for the business size, corporate culture, and industry updating, the market management provides the information of level, timing, composition of consumers demanding (Clancy and Peter, 2000). In a wide perspective, the market management is closely related with the gaining of customers, and manage company’s competition, development of products and services, as well as te delivery of customers. McKenna (1991) expressed his influential arguments “Marketing is everything”. He identified the function of market to influence a company’s ability to deliver value to consumers. Thus, it must be all-pervasive and part of everyone’s job description.
Based on the analysis of above statements in CitySnacks, it found serious problems in the process of market management. Firstly, there is no detail and valid market analysis report for years, though the board of directors complained the high cost of market department. According to Julia, the market analysis last year has no idea whether the customers appreciated what we provided in the market. The market department of CitySnacks now is working in a dark most of the time. Though the logical systems for consumer data is introduced before.
Secondly, market strategy for CitySnacks also poor compared with its competitors. For example, the company spent nearly ￡1 million just for the give-away campaigns last year. It cost a plenty of money for the financial market budget. Till now, there are around fifteen thousand plus of the loyalty cards out. However, the saver card scheme as a discount has been achieved the bottom line of the company. Unfortunately, this scheme did not improve the market performances. On the contrary, it reduce the retail margins totally.
Thirdly, market department and the human resource management relatively escape from its functions. The market department in CitySnacks neglected the leadership of teamwork. Meanwhile, it indicated the market department also lacks interactive communication with human resource management on issues such as recruiting, financial support, training, performance appraisals, compensation and other topics.
Marketing planning and position
As long as the market strategy identified, target market selected, brands and products determined, the market department then could consider how to implement it. It is called marketing planning and position. It is important since direct market performances are related closely. Marketing planning means the entire process of pushing the products or services to go to market and execute marketing strategies (Marketing Plan, 2008). For CitySnacks, the situation is not well managed. Just looking at the unsuccessful loyalty cards returning rate, it indicated the market performance showed less effectiveness than the expects. Meanwhile, the marketing planning at its first important function is a best statement of business objectives. there is no any detail statement of business objectives as regarding for the marketing performances in CitySnacks. The first word from Julia Harris is that he was not sure who our customers really are. Sadly, very sadly to hear the news from Julia. As for an employee in market department, it is necessary to know much about your customers and your business objectives, at least, Julia should know, I think. So, it suggests the work of marker department should be needed to improve further.
Evaluation of market performance
Market performance is important for company to well understand the customers demanding, products information, competitor knowledge and changes for market. Moreover, the evaluation of market performance indicates the necessary to improve market planning and strategies (Marketing management, 2008). It could be evaluated through some developed tools and techniques such as PROBE (Galarza, et al. 2004) and Improtance-performance Analysis (I-P) (Martilla and James, 1977). Many researches over the years demonstrated that evaluation of market performance is a new emphasis of market analysis. Generally speaking, there are three levels of performance result including poor performance, good performance and excellent performance (see Table 1). From the indication of excellent market performance, it largely focued on the customer’s value and relationship with product and service. Thus, Developing a excellent market performance could be considered as the ultimate goal of organisations with loyal customers and overwhelming competitive advantages.5 Main barriers for excellent marketing performance
Now, CitySnacks has gradually focused on the importance of market oriented strategies. In order to achieve the excellent marketing performance, CitySnacks maybe encounter some barriers in the process of implementation. For example, the financial budget of marketing implementation would be poor by the finance department. Despite the chief executive commited to improve understanding nature of customers and practice as professional as possible in today’s competitive market. The facts is like the Bill’s word, the company do not have immediate finance support for this market budget. So, I am not very sure the marketing reformation could be processed smoothly in future unless the finance support is promised.
Secondly, the human resource in market department is more or less poor for the reformation. The work of market department is not very effective. It is said that the training program or even new recruitment plan maybe is necessary for my next step. Unfortunately, it exactly the most difficult barriers to in my marketing planning. Since these employees deeply influenced by the traditional working style, and it is hard to change it within a shor period.
5 Market-oriented performance
According to Drucker (1993), the business holds the purpose to create a customer. The business company has two and only two basic functions: marketing and innovation. All of performances are resorted to the result of market and innovation. Thus, the marketing is developed as an unique function of business. Finally, the most important sector is how to plan and implement the market-oriented strategy to achieve the business success.
Weighing together with above arguments, I suggested once again analyze the current market situation and performance for CitySnacks. Then, totally prepare one operational market-oriented strategies, market planning and monitor system for market performance. Meanwhile, it is significant to exert current human resource of market department, and lead them within a tight powerful team.
Therefore, my suggestion is as following:
Valid market research and analysis
Well understand the the customer demanding and own competitive position in the restaurant industry in UK. Mostly, it depended on detail and valid market research and analysis (Customer Service, 2007). Although, CitySnacks spent much money to carry out market reasearch, the information of analysis was proved to be less available for the market demanding currently. So I strongly suggested once more market research should funded related with many aspects of market elements. The market research not only includes the price, place of outlet, and the promotion of products, it but also should concern the influence of customer, competitors, collaborator. For example, the customer analysis needs to break into variou constituent groups according to the of needs-benefit, regions and psychographic and demographic factors. Then, respectively deal with the profiles of each group, focusing on any number of variables. As well as, marketers continually attempt to track the favourite products and feedback from customers through special research techniques such as perceptual mapping. Of course, other factors are at the same important levels. Relating with advanced research techniques such as test marekts, statistical surveys, focus groups and ethnographic observation, the marketers certainly promise the identification trends and inform the company's marketing profiles accurately.
Market strategy---focusing on target customers
Strategy in a large extent depends on the analysis of market situation. Key strategic decisions is a good promise to maximize revenues and profitability. According to the table 1, a high value market strategy and customer-oriented is necessary to indicate a excellent market performance. In order to achieve the business objective both short-term and long-term, strategies typically focuses on one or more highly scored target customers according to the market analysis. There are two dimensions to emphsize. One is these target customers is large, growing, provide frequent profit and purchasing. Moreover, they are not fluctuate along with the price. Other dimension is the resources and capability of company could be gain overwheming competitive advantages compared other competitors (Gomoluch J. and Schroeder, 2004). To some extent, the target customer strategy promise the desired goals of companies.
Marketing planning and position
Once the strategic objectives identied, target market selected, Marketing planning becomes the next cycle in business process, which emphasizes on how to effectively carry out ultimate marekting strategies. According to Michael (1998), the 4Ps notion of marketing is traditionally involved in the implementation of market. It is also called as the market mix today. Whatever how to define these activities, the overall objective is deliver a compelling value to the company's market, and builds consumer loyalty, brands identifiation.
Managing the evaluatin of market performance
Regularly carrying out the evaluation of market performance is necessary to managing the market effectiveness (Galarza, et al, 2004). For example, the benchmarks of excellent performance of market identified the importance of customer-oriented value. Thus, the customer’s feedback could be a good tool to check the market performance. Whether the product in market is the consumer wanted, the feedback would indicate. For the loyal consumer, they maybe have some valid suggestions to proposed through the feedback systems. Unfortunately, the loyal system requires financial support and careful management. According to the current loyal system management, there are still fifteen thousand cards staying out the company’s management since last campaign. It demonstrated that the loyal system is not very successful for marketing survey. As a result, the evaluation result of market performance is more or less less dependent.
In addition, the immediate response from consumers, supermarkets and competitors also is required strictly (Grewal, et al, 2003). It is said that the feedback from consumers hold serious time limitation. Once the feedback keeps a period of time, the relation with market performance is decreasing, even losing its desired function.
Improving teamwork and powerful leadership in market department
Teamwork spirit becomes popular in today’s organisations. It is used in the field of human resource management to tell the leaders and followers that the well organized teamwork is the power of competition for organization development. This is the exact reason that more and more company leaders have increased their interests to reflect the spitit of teamwork while reflecting the organization (Gilley and Eggland, 1989). Today`s firm culture is more or less a culture of Corporating teamwork. In order to achieve the value of organization, power of teamwork faciliate this process. Leaders have the strategy plan of company value, the all followers is real power to achieve this plan. One person`s innovation is not real innovation, the innovation come from the teamwork is the real innnovation. From the development of Japanese firms, it is very easy to understand the power of teamwork. In the last three decades, the human resource management of Japanese firms have accumulated the most advanced and sophisticated experience for managing and leading the people(Kishita, 2006). The success of Japanese firms is not just the result of competition of telent or competent people, it is but also the recognition of spiritual teamwork. It is believed that the revolution about the human resource management including the spiritual leadership and the spiritual teamwork have accomplished today`s success for Japanese firm in the competitive global market.
Therefore, in my market department of CitySnacks, it strongly needs the spiritual power of leadership and teamwork to exert everyone’s ability to achive the marketing objectives. People is the source of innovation, but it could be nothing if without effective corporation. In addition, in near future, there is maybe improve the training programs for market department in order to increase skills and knowledge as regarding for market performance.
Marketing is source of profitability for organisations. It is a unique factors to business success. As a result, more and more companies transferred traditional production-oriented strategy to market-oriented performance. Now, how to managing your marketing performance well? Both theoretical and practical experiences proved that only customer-oriented performance could be considered as an excellent market performance. The report focused on the current market situatin of CitySnacks and problems analysis. It suggested many improvement should be noted careful in future market management. In order to achieve Jones’ market perspective, I intensively suggested the company evaluate current marekt performance and plan one valid, systematic strategic programs before doing market. If finance allows, a training program also exists in my suggestions.
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