Market and company overview of pret a manger

Market and connection overview of pret a mangerPrt a Manger established in 1986 by two college friends Sinclair Beecham and Julian Mand so forthlfe (who alike is the founder of Itsu sushi bar/restaurant). It is a UK establish sandwich retailer, which now is an internationalist line of credit (Prt). They named the company Prt a Manger, which in french means ready to eat (see Appendix 1.0)Rix (2004) states, a harvest is a set of tangible attri entirelyes in an identifi up to(p) form and he adds, to separately champion crop is identified by a commonly understood descriptive (p. 199). Prt stimulates sandwiches, filled baguettes, soup, salad and coffee. It excessively prepargons desserts, muffins (the Ameri fuel variety), cakes, and croissants. Some locations withal manage sushi and noodles. Prt has a range of vegetarian options including roasted vegetable sandwiches and hummus wrappings. In trade though, clients seek to purchase its quality and benefits (Rix, 2004). Prt essentially provides dulcet fast food do with inborn ingredients. They atomic number 18 passionate ab tabu freshness all food is made fresh in the shop on the day of purchase. Sandwiches argon package in paperboard rather than sealed plastic, to emphasise that they argon fresh and merchantman non be kept overnight. Some packaging contains recipes for well-nigh of their wares these ar for passel who want to achieve sandwiches like Prts for themselves. moreover, Prt also provides a delivery gain for invests over 30 minimum. Service bed be identified as activities that meet customers necessarily or wants solo on intangible benefits (Rix, 2004). Their services are excellent the staff are friendly, always greet with civility, approachable and enthusiastic, which makes their customers feel welcome (ref).Rix (2004) states Marketers are progressively being faced with a choice between profitably agreeable the wants of their customers and complying with the wishes of var ious other groups in the community (p. 5). Prt is aimed at the middle to upper class including white-collar workers and contrastmen and women who use it on a regular root boy to hasten a coffee before work, especially the City role customers (ref). Therefore, Prt stores are normally found near the check or tube stations, affluent places much(prenominal) as Canary Wharf, and cities such as Central London. These are places where testament be more(prenominal) consumers that they are bunsing at.Prets competitors include Starbucks, Costa, Nero and Eat. Relatively speaking, Starbucks is the biggest competitor since it is the largest coffeehouse business in the world.Companies that envision changes in consumer behaviour and respond with virgin gods and services are probable to achieve long-term health and profitability. But companies that change consumer behaviour have the opportunity to make major break withs in raw(a) grocerys and industries (Hoffman et al. 2005)Already in that respect are about 240 Prt shops, which are mainly based in the UK. Statistically, their familyly turnover is approximately 270 million a year (see Appendix 1.1)Task 1P 1.1Situation epitomeA thorough analysis of the situation in which the firm finds itself serves as the basis for targeting opportunities to satisfy unfulfilled customer needs (City of London Academy, Edition 1). call for to be changedOne of procedures of the trade planning is the trade inspect, which plays a large part that constantly is being conducted throughout the only process. It is to take aim interior(a) factors, while also anticipates s take outh former(a)s and external factors. The Chartered Institute of Marketing says Carrying out the foodstuffing audit provides the opportunity to review and appraise your whole selling activity, enabling you to assess past and present performance as wellspring as to provide the basis for evaluating possible future courses of swear out. (year)Marketing audit breaks d proclaim into two categoriesThe microenvironment is the forces close to the company that affect its ability to serve its customers (Kotler et al. 1998, pp. 885-886).This is focusing on the internal business experiences, where an organization has a realize control, giving this opportunity to improve the business.The macro-environment is the larger societal forces that affect the whole microenvironment (Kotler et al. 1998, pp. 885-886).This is the external factors, where a business barely or has absolute no control on, that changes whitethorn adversely affect the organisation. (ref)SWOT analysis is a method, which came from the research conducted at Stanford Research Institute. It draws all the evidence from several analytic proficiencys employ, provides basic useful discipline of developing the business, marketing objectives or aims and raw(a) products into the market. Prt undertakes a SWOT analysis, which its abbreviation is Strengths, the strong features and po sitions of the company, Weaknesses, where the company needs to improve in order to maintain the best melt into of the business as possible internal issues, Opportunities, where the company croupe bewitch chances to better themselves and to dramatise their reputation, and Threats, where the company relish challenges that may affect the business external issues (Rix, 2004). Example of SWOT analysis is shown below hold over 1 (1.1 Explanation of SWOT analysis)Strengths Non-stop producing refreshful products. Often do offers. Prices are cut-rate and affordable. Always make out new advertisements. Services are fast and easy.Weaknesses Products are not healthy. Advertise unhealthy products i.e. burgers Contributes to obesity. Loaded with sugar.Opportunities Exploitation of absorb in healthier eating. Sponsoring could avail the business their gross changes. Home deliveries serviceThreats International reciprocation rate Increasing labours wages Competitors pricing Competitor s invent similar products, susceptibility be better. outset The researcherPEST is an analysis of external factors, largely contained to be outside the control of a business. The PEST analysis is to identify both presents and futures opportunities and panics. PEST stands for Political scotch Social and Technology (ref). decipherable explanation of each of these are shown in the followingTable 2 (1.1 Explanation of PEST)PoliticalThese are factors that are controlled by the government policies. economicThese factors are related to to political and are concerned about interest rates, exchange rate, economic growth and income levels.SocialConcerning the factors of age, size of families, healthy intentstyle and religions.TechnologyFactors concern such as computers, machineries, motor vehicles etc. outset The researcherP 1.2A kick or vision bid is a statement that provides a signpost of where your business aims to be in the future (Chartered Institute of Marketing, ). Choose be tter oneA mission statement has to be concise and explicitly explain that provides a draw in view of Prts intention to customers and stakeholders, what is their business and who their customers are. It also provides motivation at bottom the organization, overhauls them to focus on accomplishing their objectives (ref). This helps seller to make informed decisions of suitable strategies and programs. present are the two mission statements of PrtTurnover presently 270 million to increase 9% within 2 years time.To expand wider and open new stores this year 3 new stores to be open(a) in Birmingham, (BBC News, 2010).According to media sources, Prts turnover is constantly increased in the recent years. Although economic crisis has conscionable ended, nonetheless the business somehow managed to make profits. This shows that the businesss financial situation is stable and secure.Table 3 (1.2 Marketing miscellanea for Prt a Manager)ProductHoi sin Duck roll out is a Cantonese style o f wrap Prt does. Inside the wrap has shredded roast duck, hoisin sauce, red onions, cucumber, leaf spinach and a pertain of mayo in a tortilla wrap. The wrap contains nuts, sesame free, dairy free, GM free and high protein, which keeps customers full longer. Every single Pret store has its own kitchen, they make the product every single purchase day, to make legitimate it is fresh and healthy. Those left unsold at the end of the day, they pass on not be re-sold, but result be collected by the charities, and accordingly given to those are homeless.PriceThis product quite belly callable to the qualities it contains, which exist 2.95 each. This fuel be cost plus pricing, average cost of the product and service plus a profit margin it has a high mark-up.PlaceThe channels of distribution of this product pull up stakes be service providers to consumers, as well as direct marketing through the website so the consumers can shop at home, but minimum of 30. This product sells in a c lean and pleasant environment, affluent places like the city, where the market targets will perform the desire behaviour. Usually during lunchtime, when this product can be purchased the most.PromotionPrt promotes the product through word of emit by informal communication about the product by frequent individuals, satisfied customers or people specifically engaged to create word of mouth momentum. Sales staff often plays an important role in word of mouth. This promotion also includes leaflets, shop windows, and its own website, targeting at older group, middle and upper class groups. reference point wesiteSWOT analysis is use to get something in the right position in the market and help in companys strategic planning. It mustiness be done before Prts product (Hoi Sin Duck Wrap) is launched and at regular intervals after that, also needs to spend resources to maximize profit and minimise potential threat (ref). The following table shows the SWOT analysis of Prt that may influence their sales of the new product.Table 4 (1.2 SWOT Analysis for Prt a Manager)StrengthsPrt is well cognise for handmade sandwiches, which are made with natural ingredients, and immaculate service, which the quality of products and customers are the companys priorities. The business also does delivery service that other sandwich veto do not provide, as well as online order. Thus, these advantages may precaution to gain repeat sales of Hoi Sin Duck Wrap.WeaknessesPrt is considerably to be one of the most expensive sandwich prohibit in the world. This also means that the business only has certain target audience and stores can be found in affluent areas only. Prt stores are generally small that unable to provide decent seats for customers to eat in. Thus, the sales of Hoi Sin Duck Wrap will not be expectedly high.OpportunitiesPrt does not franchise. The business could take this opportunity to franchise out not only Prt can gain popularity, the business can also earn some fees from franchising Prt does not involve a lot of advertisements. ad plays a major part in every organization Prt should seriously think about advertisements on television and newspapers etc. Thus, Hoi Sin Duck Wrap is highly unreachable.ThreatsThe risk of competitors entering the market. Competitors such as Starbucks often distribute discount vouchers. Customers are aware of the price and generally they tend to go for cheaper options. Thus, Hoi Sin Duck Wraps product feel cycle is predictably short.Source websitePrt must consider on the external environment influences, which may have impact on its product. It is a strategic planning technique that provides a useful poser for analysing the environmental pressure on Prt and its product (ref).Table 5 (1.2 PEST for Prt a Manager)PoliticalEconomicSocialTechnologySource The researcherTask 2P 2.1Marketing BarriersBarriers are vague obstacles that tend to thwart a marketing plan and unable to pass messages to external stakeholders. A marketer needs to understand and identify each of the barriers that they are confronting, in order to keep off scuppering the plan. Marketers generally realise these barriers when they manage to envisage a business is not growing or a prolonged unstable position (ref). These barriers can be both internal and external, and all must take into estimateNot endureing your product Lack of knowledge in a businesss product and what services the business can provide to their customers can be an immense barrier to the business success. There will be no guarantee, security, customer loyalty, and number of complaints will increase, the business is ineffectual and needs advancement immediately. Whilst the business competitors understand their products, this can adversely affect the business turnover and repeat sales will not occur.Not knowing your emulation If a researcher does not know where a business stands and positions of the business competitors, it is highly unlikely that the business can topple its competitors. Competitors dissect and be their own competitors. This will give competitors the ideas how to better their performance. Gradually, competitors successfully satisfy customers and therefrom eventually, the business will be ceased.Not understanding the market A product is ready to enter the market. However, if a researcher does not know what a business segmentations are can cause problems to the sales campaign. If the researcher does not know where these segments are, which segment should be guessed and disregarded, the marketing plan will not be effective. It is also concerned with costs. For example, the researcher does not study the environment for the business products, high premises cost, electricity and gas, the business will have no the potential to reach the top.Capital requirements The amount of financial resources that every new business enters a market is immense. Businesses such as manufacturing industries and building constructions are require d extortionate machineries in order to run its business. Investments can also occur to existing businesses. For instance, investing in new product finance availability for research and development, production, marketing etc. The investment funds risk is great, thus creates barrier. However, there is a prospect of overthrowing the business competitors. disposal policy This is concerned with macro-environment. Government policies sometimes are forced to concur competition. For example, laws and regulations such as product testing regulations, global warming and limits on access to raw materials can inhibit the growth of competitions referable to licensing requirements.P 2.2Solutions for marketing barriersKnowing your product It is vital to understand wholly and study what products and services that Prt are providing, how they are functioned and any most recent information that a marketer should know. This will guide the marketer to the right direction and helps to plan a marketin g strategy. Having knowledge of the companys products can laden kinds with customers, suppliers and other stakeholders. For instance, customers expectations will be made, therefore sales enhance. Suppliers will be delighted to supply, as Prt seems stable and able to meet payments on time.Knowing your competition It is important to know and check off about competitors. Competitors can be one of keys to a Prts achievement, as researchers can study and observe the business competitors to acknowledge its weaknesses, opportunities and threats. This consists of competitive pricing, recession market availability, promotion, advertisements and other relevant useful information that can be learned.Understanding your market Researchers must know what are the target groups and who prt is selling its products to. To conduct a market research can help researchers to understand the specific target audience and customers expectations in term of price and quality. Methods of market research ca n be primary and/or secondary, quantitative and/or qualitative. Internet is a very effective lance that can help Prt to overcome its barriers. Information and entropy that are needed can mostly be found online. to a fault, if researchers are struggling, neat guidelines can also be found on the Internet. Until researchers are fulfilled with the results, decisions are then made and subsequently, implement a marketing plan.Task 3P 3.1In competitive world, companies need to produce new products to satisfy customer needs. A company cannot expect to come up growth or to maximise profit by relying exclusively on its existing products. The company must retain to control its market by continuous product innovation that involves complete new product development, product improvement, which is to discover divers(prenominal) ways in improving existing products effectively, and echoic products, which means a copied product that is already exist in the market by other companies. It is essent ial to know how to manage a new product, which goes through its life cycle (Kotler et al., year)Every product has its life cycle, present how long a product will last for. Product life cycle is the phases a product goes through from its introduction to its final blood line (ref). The product life cycle has five main phasesTable 6 (3.1 Product Life Cycle)InductionThis is the starting point, where a product has just begun its sales life. There is usually no profit making overdue to higher cost of marketing and development.GrowthThis is the period when a products sales has just set to rise, and the cost begins to fall due to economies of scale the more consumers purchase the product, the quicker the product will run out, therefore the more quantities of the product will be supplied by the suppliers.MaturityA sale is expanding at a slower rate and profits are soaring. More and more consumers purchase the product. The pricing may be lower due to greater competition.SaturationA market is begun to fall due to galore(postnominal) other similar products, better products, out of date etc. The product will not be produced as much as it used to.DeclineThe ending of a product where the sales cannot survive again, therefore the price will be reduced more. The product then is withdrawn.Source author , dateHoi Sin Duck Wrap is a product, which has been true and marketed to Prets customers, and is currently market leader. Still as the researcher knowledge, there is no market follower for this product. Kotler et al. (year) believe a product tends to develop, improve and diversify through research, as well as to identify, create and deliver the new product that has not emerged in the market yet.Every business must have its segmentation and targeting, its own branding and knowing relationship marketing in order to innovate flawlessly and increase demand.Segmentation technique is separated a market into groups, where there will be different segments requires and different market approaches. It is concerned on understanding customers lifestyles, preferences and aspirations. This can help businesses to find out what consumers are expected and their needs in order to develop products and increase overall demand. ACORN and MOSIAC help to identify groups consumers who are will to purchase, therefore there will be a market for each product.Table 7 (3.1 Segmentation)ACORNA Classification Of Residential Neighborhoods, is a creature used to identify and understand the population and the demand for products and services. Businesses use this information to identify consumers needs and try to target at more consumers. Also identifying consumers age, income, employment, and type of holidays they go for etc.CACIInformation Services develops classification of residential areas, market analysis and provides information.MOSIACThis is another classification to identify household types by combination of credit history, share ownership, postcode data etc. This can help businesses what type of characteristics they are aiming at.Source author, dateSegmentation technique also includes geographic, demographic, and psychographic. This can be developed so that it can create an effective marketing plan.GeographicThis is a method to identify customer behavior information, such as consumer density, past purchasing behaviors etc, which may differ from other countries.DemographicThis uses population factors based on variables such as age, gender family size, income, occupation, education, religion, race and nationality (ACORN).PsychographicA breakdown of consumers according to different characteristics, including the attitudes expectations and activities of consumers, their interests and lifestyles.Source author, dateTask 4P 4.1Marketing respectable is related to or concerning morals, justice or duty, based on ideas of right and wrong. Rules or laws that have already been set, everyday we make any decision may consider on those principles (Baker, 2006). Th ere two main approaches in ethical identified by Rix (2004) are rules approach and issuings approach. Rules approach is otherwise cognize as deontological. It is when rules must be strictly adhered, despite of the outcome. Rix (2004) states trust is one of the main keys of ethical rules in marketing. For instance, a products appearance is deceptive that lures a customer into purchasing the product, although it does not physically harm the customer is so far ethically wrong. Likewise a company intends to maximise profit by conducting wrong approaches, such as making redundancies without a reason, the action is regard as unethical (Rix, 2004). Outcomes approach is otherwise known as teleological. It is occurred when an outcome is seemingly good and bad, depending on the outcome prospective. For instance, Tesco brings a product into the market, but other groceries have had the product in the market already. Tesco set an stupid price for the product that is much lower than other co mpetitors, which competitors accuse Tesco of unethical pricing. A contrary point of view from Tesco, that the outcome is beneficial to its stakeholders. If this action stays on, it may produce a greater amount of good than damaging others (Rix, 2004).P 4.2Marketing mix is a tool that a company has the complete control. There are 4 main elements (4ps) in marketing mix, which are product, price, place and promotion. The fifth P, which is people, sometimes is added to demonstrate the relationship with customers. 2 further Ps are usually added within service industry, which are process and physical evidence (Lancaster and Reynolds, 1999).Conclusion