1.0 company background
2.0 Vision Statement
3.0 Internal audit (current position)
4.0 External audit
5.0 Marketing mix
5.7 Physical evidence
6.0 Main objectives for the marketing plan
7.0 Actions for Marketing Plan for 12 months from January 2019
9.0 Reference list
This marketing plan will analyse ‘The Edge of Ormskirk' (hereafter in this plan referred to as The Edge) based in the town centre of Ormskirk, West Lancashire over a 12-month basis. This plan will look at the background of ‘the edge' and consider its current position in the market analysing the local economic environment, looking at SMART points creating an action plan that will be communicated effectively to all staff members to ensure full support is implemented.
1.0 Company Background
The Edge was founded in 2013 by Jill Martin. It is a small café based on the edge of the town centre in Ormskirk. The Edge is an independent business consisting of a few employees. The Edge has become a popular choice in Ormskirk, with their only form of advertising being word of mouth and social media. The Edge offers healthy alternatives to all items on their menu with their two chefs being members of ‘slimming world' they offer a ‘slimmers' alternative to most meals.
According to the global research team, IRI 43% of British shoppers buy organic food – a third more than three years ago – and more than one in four people said they are happy to spend more buying organic food, more than any other healthy food option. the healthy eating industry is growing fast and becoming a popular choice for many people. The Edge has taken these facts into consideration when designing their menu and with no other independent coffee stores offering standard homecooked meals and healthy alternatives Jill and the team have optimized this fact and with obesity on the rise, In 2016, 26 per cent of adults were classified as obese. The edge seemed to have created a place that caters to all needs. In Western European countries the value of the market increased substantially from approximately 129 billion euro in 2013 to over 142 billion euros in 2017. The market is expected to grow in future years with a predicted market value of around 148.7 billion euro in 2018. Which leaves The Edge in a good market position.
2.0 The Edge Vision Statement
“From doorstop toast to a full English for breakfast to a great selection of lunches and Afternoon tea. We use only the finest, freshest ingredients and wherever possible are locally sourced. Our meat is purchased from Scotts, a local Ormskirk butcher and almost everything we make including our soups, cakes and fresh scones are all homemade. We have low fat, gluten free, dairy free, vegetarian and vegan options available and will always do everything we can to accommodate any dietary requirement. Our two cooks are on slimming world and they know everything there is to know about what you can and can't have”.
mission statements capture the overriding purpose of an organization in line with the values and expectations of stakeholders and should typically outline what the company is and what services it aims to provide. Mission and vision statements have been overwhelmingly accepted as an indispensable part of the strategic management process for organizations of all types. Mullane (2002) suggested that mission and vision statements are useful for practical day-to-day operations, taking a contrary view to those who assert they are archaic documents that are typically exhibited as wall hangings. It is therefore important that the mission statement at The Edge is made apparent to all employees and enforced throughout. Bart et al. (2001) found that mission statements could positively affect employee behaviour which had a direct effect on firm financial performance and this could only happen when internal policies/programs are derived from the statement.
The mission statement is clear and precise at The Edge their goal is to focus on pleasing the customer with the ‘customer is always right' approach offering homemade food and healthy alternatives. As this company only has a few employees this statement should be easy to follow.
3.0 Current position- Internal Audit
Conducting a SWOT analysis is a valuable tool used to develop strategic alternatives in a situation analysis. A SWOT analysis determines the strengths, weaknesses, opportunities and threats posed by a business. This will only determine strategic decisions and models such as Porter's Five Forces (PFF) can allow further insight into the external audit. PFF is the idea that there are 5 forces that shape competition; buyers, suppliers, substitution, new entrance and existing rivals. Once this is understood companies can make better predictions, create a more competitive strategy and increase sales. Porter's (1980) framework suggests that a company has to choose whether to target a broad or narrow target audience in order to be successful in business. Porter's (1980) framework states that a company has to choose whether to target broad or narrow market segments in order for success within a business. He also argues that a company has to determine whether to differentiate its products/services from those of competitors or offer products/services with low cost in order to achieve competitive advantage. Based on this reasoning, Porter claims that firms can follow one or more of three generic strategies: cost leadership, differentiation or market focus.
The Edge has been a successful business since opening in 2013. Jill has many potential strengths within her market positioning. The Edge advertises their business on Facebook and Trip advisor with positive reviews. Their Facebook page is regularly updated and there is constant interaction between The Edge and customers. Which helps to build a relationship up with the customer to maximise loyalty and return custom. The Edge accepts all major credit and debit cards, including contactless and Apple pay. They are maximising their profits by offering all methods of payment. The Edge has created a powerful niche, within the restaurant industry. Jill has created a place that is suitable for all dietary requirements. According to Porter's Five Forces (Porter 1980) the narrower the niche the harder it is to compete. Although, there are many strengths to The Edge there are also potential weaknesses. The edge does not have an online website offering a full updated menu, although it does substitute the website for a Facebook page, with its only form of advertisement being a Facebook page and Trip advisor. The Edge should consider creating a website and other forms of advertisement to optimise reaching one of their main target audiences, the elderly. Although, The Edge is a small local café reaching all forms of online and offline advertisement will only increase sales by reaching all targeted market. According to (Dalgic, 2006) Essential elements for a niche marketing strategy include positioning, profitability, distinctive competencies, small market segments, adherence to the marketing concept, relationship marketing practices, and building company reputation based on long-term mutual benefit with its customers. Small firms must incorporate these ideas and become guerilla marketers to compete successfully in markets dominated by much larger companies
See Appendix 1 for full SWOT analysis.
4.0 External Environment
An external audit can be analysed by using the PESTEL framework. This is used to monitor the macro-environment predicting how it can affect a business. This plan has previously touched upon the increasing interest in healthy eating and the rise in obesity. Although the healthy eating and fighting obesity trend is not really a major concern for this business due to the fact that The Edge offers both non-healthy and healthy alternatives, it would have an impact as this is the businesses niche. The increase of people buying organic foods is only on the rise which is encouraging with 7% of the UK's population is now vegan, suggesting a 700% increase in the past two years alone. Further, 14% of Britain's population – more than seven million people – are now vegetarian.
See Appendix 2
5.0. Marketing Mix 7P's
Mccarthy (1960) introduced The Marketing Mix 4Ps, product, place, price and promotion. In 1981 Booms & Bitner created the Extended Marketing Mix introducing 3 new elements people, processes and physical evidence.
5.1. Product- The Edge has a variety of different food on offer due to increasing popularity in healthy alternatives it now specialises in slimmers world food and offers a standard and vegetarian/healthy version of all meals. The level of knowledge that the two chefs at The Edge have due to being members of slimming world is an advantage and proves difficult for future competitors. There is no planned tactic to identify product lifecycle as healthy eating is unlikely to see a decline.
5.2 Price- The Edge does not achieve an advantage over competitors such as Paris In Town, a café opposite The Edge, by revisiting pricing strategy The Edge could undercut some of its competitors to ensure competition is reduced.
5.3 Place- This local business could offer more services to increase potential sales such as a delivery service. With a university just two-minutes away sales could be optimized by offering delivery. There is no way to pre-order food. Customers can request their food to be made with certain dietary requirements with The Edge's ‘flexible' approach to food.
5.4 Promotion- The only form of advertisement The Edge provides is ‘word of mouth' and e-commerce via Facebook and Trip advisor. The edge should look to expanding to multiple social media platforms such as Instagram to interact with customers and engage with a younger target market. There is no advertisement plan, budget or promotional material everything is simply posted onto their Facebook page. Advertising is not only important for customers but for the seller also.
5.5 People- The Edge focus on building up a relationship with customers and providing a high level of customer service to ensure customer loyalty. All staff are made aware of the specials of the day and the nutritional information. Most customers appear to be regular customers and no plan in place to introduce new customers.
5.6 Processes- The customer purchasing experience could be improved. The staff focuses on regular customers engaging in conversation and lack showing attention to new customers, potentially reducing the option to turn new customers into loyal regulars.
5.7 Physical Evidence- The café is clean but cramped with too much furniture to space ratio and at times leaving customers to feel a little tight. There is access for disabled people and one disabled toilet for customers. Although, a little cramped the Edge offers an inviting place to eat on the go or sit in.
5.9 Main Objectives for the plan
1. Revise the process to take advantage of introducing a new target market (students) in order to generate more customers and sales.
2. Redefine advertising plan, create an advertising budget and take steps including creating a larger online presence
3. Consider pricing strategy and promotions that could drive potential sales.
Action Actioned By Resources Completion Measurement Comments
Social media account setup Jill Martin and team Minimal charge as Jill and staff can manage account.
February, 2019 Customer feedback, regular customer interaction Review weekly progress
Implement loyalty card scheme Jill Martin and all staff Promotion for loyalty scheme via social media is at minimal cost, only cost is producing cards £100 April 31, 2019 Create revenue from loyal customers,
Track with loyalty program software, purchase increase, higher referral rates Review monthly progress
Website set up Jill and website developer £5,000 with small business grants available August 31, 2019 Live website.
SBU approval of funding Review weekly progress
Implement a delivery service Jill and employ a delivery driver Wages for delivery driver, charge delivery fee and revenue will contribute to wage cost. April 1, 2019 New target market,
Higher revenue as more sales hitting markets like students, oap Review monthly
Financial Review Jill Martin and accountant Minimal resources required April 30, 2019 Published price lists and competitor comparisons. Customer feedback Sales targets and net profit levels to achieve
Physical impressions All employees Website above, Implementing above factors to drive sales November 30, 2019 Review customer testimonies, Archive material monthly
In conclusion, The Edge is position well within their targeted industry. They have followed Porters Five Forces framework and have created their own niche to excel in. The main sectors that have raised an issue are their advertising plan and online presence. This marketing plan addresses their goals and plans over the next 12 months. If The Edge follows this plan, they will be able to make changes and put relevant orders in place to help The Edge with revenue, increasing sales and gathering a new target audience, optimising their assets and ensuring a larger audience is reached.
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