Marketing
Management and Strategies
Introduction
Organizations
across the world are keen to adopt innovative marketing practices to ensure
they derive maximum competitive advantage in the market the business operates
in. Regardless of the nature of business marketing holds tremendous importance
today amid highly volatile and competitive business environment due to the fact
that businesses across the world are increasingly implementing effective and
appealing marketing strategies to market their products and services using traditional as well as online medium. Since
virtual world today is deemed to be far more effective and instantaneous in
educating, informing, and spreading awareness about a particular product or a
service, organizations are increasingly employing innovative marketing
strategies using social media platforms, blogs, portals, and networks with an objective
to gain quick and lasting popularity, market share, and competitive advantage
imperative for business success. This report provides valuable insights on how
implementation of advanced technological tools and effective marketing
strategies enabled a business in gaining desired market share, popularity, and
success.
Background
Foodmandu
is an renowned name in Nepal as a leading fast food service provider in the
country that specializes in Indian, Nepal, Chinese, continental cuisines. The
business is known for its quick and hot delivery of items across the city of
Kathmandu. The business efficiently serves diverse consumer base and targets
people of all age groups and income class. Foodmandu occupies over 80 percent
of market share in terms of revenue being a leader food service provider
followed by Bhoklagyo and Kantipur. Targeting a diverse segment of consumers
that visit the country as tourists and the natives, Foodmandu ensures quality
and fresh food items in time at economical prices. Realizing the increasing trend
of tech savvy consumers and communication barriers in local dialects Foodmandu has
lately launched an online portal and mobile application that allows consumers
across the region to place instant orders, make payment using various options
including debit/credit cards, cash, and wallets, and ensure delivery of hot and
fresh food items within 30 minutes of order receipt (Lee et al, 2017). The
launch of web portal and mobile application has immensely aided the businesses
in efficient management of orders, payments, and consumer information thus
providing great convenient to consumers and the business (Foodmandu, About us,
Foodmandu.com, Food Delivery Service for Home and Office, 2017).
Research Methods
In
order to better understand consumer tastes and preferences this study employed
qualitative as well as quantitative method of survey using appropriate
techniques and tools. The study included
primary method of survey using questionnaires wherein appropriate set of
questions relevant to the needs and requirements of this study were included in
order to better understand the position of business in terms of popularity,
value proposition, consumer satisfaction levels, marketing effectiveness, and
other critical aspects that directly and indirectly influence the business. The
research would therefore include both digital as well as conventional print
medium for gathering information form consumers or users of the business in
order to collect reliable and valid primary data.
In order to ensure that consumers are well aware of the
responses they are providing during the survey, the study ensured that users of
the mobile site that are registered with the businesses and were provided with
a digital survey wherein they can record their responses and submit digitally. Printed
questionnaire was provided to visitors post their meals, lunch, or dinner and
requested to participate in the survey that would not take more than 10-12 minutes
of their time. The responses obtained from printed and digital channels were
then collected, analyzed, processed, evaluated, and meaningfully interpreted in
order to derive an appropriate inference. The facts and information thus
obtained shall provide realistic insights and every piece of information on
business goodwill, performance, popularity, consumer perceptions and business
value, position against competitors, etc. The results of the study shall
immensely help Foodmandu to develop and implement effective marketing and
promotional strategies to derive maximum market space.
The
methods selected for the study were carefully chosen since it ensured that the
participants of study are well aware of the business, its products and services
offered and their responses are reliable and accurate. Since digital
questionnaires provided through the online platforms enable consumers complete
the surveys quickly, printed surveys on the other hand may take some time for
consumers to understand what the study was about and their role in the process.
Consumers were explained clearly about their roles and importance in the study
to ensure research ethics and transparency are adhered to. All research related
ethics, moralities, and procedures were followed to ensure consumers enjoy full
liberty of participation without any compulsion or force. Customer responses
and their participation were purely at their own will without any external
force.
Target
Market
Being
a major player in food industry, Foodmandu has a significant role to play in
fulfilling consumer needs and preferences by serving delicious and timely meals
at economical prices across the region. Foodmandu in order to satisfy consumer
tastes, needs, and demands is keen to develop and innovate its products and
services with an aim to provide even better quality of products and services at
competitive prices to its esteemed consumers. In order to effectively address
consumer needs and demands based on survey responses, Fooodmandu has altered
and improved some of the key aspects of its business. This includes targeting
youth that are always in search for new tastes and prefer instant food in
today’s time starved business world. Since Kathmandu is a hub for visitors for
tourists across the world, it is important that Foodmandu provides state of the
art services, products, and conveniences to ensure the needsa dn preferences of
diverse customer segments are effectively met. This is critical for the success
and growth of the enterprise. It is important to understand that tourists from
Europe, Asia, America, and Australia visit Kathmandu and since they are well
versed with the tastes of highly competitive businesses operating across the
world such as Dominos, McDonalds, Pizza Hut, and others it is therefore
important for Foodmandu to consider their needs and preferences to ensure the
business remains their first choice during their stay in the region. Based on
the outcomes of the study it can be known that the local youth is keen to adopt
new tastes and eating trends by preferring pizzas, burgers, continental meals,
and trying out various menus served across the world, it is therefore important
that Foodmandu is equipped to serve variety of tastes and needs efficiently and
effectively to gain greater market share and remain a leading food service
provider in the country.
It can be understood that the business also has to
consider the tastes and preferences of diverse local consumers that are
unevenly distributed demographically across the region that includes people of
different age grougs, genders, occupations, income, nationality, and races. These
consumers show regularity and loyalty towards the business and therefore it is
important that Foodmandu consider the tastes and preferences of the locals as
top business priority in order to sustain and compete in the region.
Current Value Analysis
The current value analysis of the business reveals that
Foodmandu has better prospects and tremendous opportunities of growth in the
region due to the fact that the business serves over 80% of people and connects
consumers of diverse demographics in the city of Kathmandu. Tourists, citizens,
and commuters across the region rely on the quality food and services offered by
Foodmandu. Since Foodmandu offers variety of dishes and is highly suitable for
breakfast, lunch, and dinner throughout the day, people can avail prompt
service anytime ay cost-effective prices and be rest assured of the quality of
food served. The unique tastes, timely service, reliability and higher quality
of products make the business a top provider in the city.
Brand Value and Consumer Perceived
Value
Due
to the highly competitive products and services offered by Foodmandu and the
huge volume of reliable and loyal consumers the brand value of Foodmandu is
substantially greater than any of its competitors. However, it must be
understood that the outcomes of study conducted for the enterprise reported logically
acceptable inferences that have been elaborated herein.
Customer perceived value can be defined as the difference
between a prospective consumer’s evaluation of advantages and prices of
products or services in comparison to the competitors (Dovaliene, Masiulyte
& Piligrimiene, 2015).
Consumers that are residents of Kathmandu, the influx of
tourists from different parts of the world, and travelers need quality at cost
effective prices with a sense of reliability of product and service. Therefore,
Foodmandu, heeding to consumer voices on tastes, preferences, price, quality,
variety, and demographic factors adopted efficient and effective strategies to
ensure consumers remain satisfied at all costs, stay loyal with the business, and
derive maximum mutual benefit from the relationship. As compared to the quality
standards, variety of products offered, and promptness, and reliability of
products and services of competitors, Foodmandu exceeds consumer expectations beating
all its competitors and guarantees satisfaction consequently winning customer
trust and loyalty.
The brand value and
customer perceived value are mainly based on the 4Ps critical aspects of
marketing mix-
Product-
Quality products and quick service making it an unbeatable provider in the
region
Price-
offers highly competitive prices than any of its competitors
Places-
operates within the city limits in 3 different locations ensuring region wide
accessibility and prompt service
Promotion-
extensively employs traditional as well as modern technological tools of
advertising and marketing such as social medial platforms, blogs and web
portals, and print mediums such as local dailies, magazines, and banner ads
(Goi, 2009).
Competitors of Foodmandu have always failed to ensure
quality, promptness, and variety of products and services to consumers
consequently failing to emerge as parallel competitors to the business. The
consistency in quality, performance, and productivity by Foodmandu ensured
consistent rise in its consumer volume and gain of market share. Additionally,
it is found that consumer want to stick to the business for reaping long term
mutual benefit and enjoy their preferred cuisines offered at current prices. This
ensures that Foodmandu has a long way to go on the path of success and
growth.
Customer Value Proposition
Consumer
value proposition, according to Merritt (2018), states why a consumer would
want to buy products or services offered by a business, in this context- Foodmandu.
In regards to foodmandu, the following are the salient features of the business
that justify customer value proposition-
Ø Prompt
home delivery of ordered food items
Ø Cost
effective food and nominal service charge, delivery charges
Ø Telephonic,
Web and mobile presence of the business that makes order placement, item
selection, and payment possible instantly
Ø Highly
responsive and friendly approach
Ø Attractive
deals, competitive prices, guaranteed quality, and benefits to loyal consumers
making it a first choice
Competitor
Value Proposition
Competitor value proposition is a statement that
describes how a product or service beats its competitor strategies and adds value
to a business (Hassan, 2012).The following are some of the unique features and
advantages of Foodmandu that add value to its business and act as effective
factors in regards to competitor value proposition-
Ø Business
owned delivery vehicle for round the clock service
Ø Cost
effective and matchless prices than competitors
Ø Facility
for online payment using various options such as wallets, bank transfer, etc.
Ø Special
discounts for loyal consumers, on festivals, and for memberships
Ø Special
discounts on high orders up to 25% on orders over 1000 Nrs.
Value Positioning
Value
positioning of a product can be defined as a way of conveying the advantages of
a product offered by a business to convince consumers that the products offer the greatest benefits over other
business competitors. Foodmandu realizing that value positioning is an integral
component of marketing systematically elaborates its products and services by responding
to key consumer concerns such as-
·
Who are the targets of the products and
services- all demographics included
·
Why should consumers buy the products –
top quality of products and prompt service
·
Clear definition of the product and
brand- Quality at cost effective prices
·
What benefits are served by the products
– Fresh, hot, and timely meals/food
·
How is Foodmandu better than its
competitors – better, healthier, cheaper, timely, and tasty
·
Unique selling points that demonstrate
the positives of Foodmandu and its products over its competitors (What's the
Difference Between a Value Proposition and a Positioning Statement? - Actuation
Consulting, 2014).
Marketing
Promotional Plan
Realizing
the increasing scope and tremendous opportunities in and around the region,
Foodmandu is all set to employ some innovative and effective ways of marketing
to reach every corner of the region and with an objective to maximize its
profitability. Foodmandu well understands the importance of technology and its
implication on a business and therefore it is committed to develop and employ advanced
marketing tools and technology using social media networks, blogs, and mobile
platforms to effectively market its products and services and reach maximum
number of consumers in and around the city. The business aims to reach every
segment of consumers regardless of age, gender, race, income group, employment
status, and other identifiable metrics. Foodmandu as a responsible player in
the market does understand the changing needs of diverse consumers across the
region and therefore aims to implement diverse marketing and advertising
strategies targeting people of all age groups, income class, and social levels
of customers to ensure all consumers feel a sense of belongingness towards the
business and can vail quality food at their doorstep (Lorette, 2018).
Foodmandu shall employ variety of advertising and
marketing mix stratgeies that will mainly include product, price, place, and
promotion targeting various places within the region, different and competitive
pricing on products suitable for all income groups, develop and serve diverse
products that are delicious, healthy, and nutritious and employ state of the
art innovative and effective technological tools to market its products.
Elements
of Marketing Mix
The
4Ps critical components of marketing mix model, namely, product, price, place,
and promotion are to be included in the marketing campaign to ensure products
is capable to generating anticipated business advantage (Martin, 2014). In
order to develop an effective marketing and promotional strategy, Foodmandu
must primarily consider 3 critical components, namely, market segment refers to
the industry type- food, target customer refers to the all consumers throughout
the identified demographic parameters, and competitors refers to the key
competitors of business, namely, Kantipur and Bhok lagyo.
The 4Ps of the marketing mix model are sufficient to
develop an effective strategy that addresses several aspects of the business
and marketing campaign. The product, price, place, and promotion ensures customer
know and understand everything about the product that the business offers, pricing,
distribution across the regions through outlets, and lastly, promotion using
various mediums such as print and electronic mediums (Marketing Mix Definition
- 4Ps & 7Ps of the Marketing Mix, n.d.).
By adopting and following the above mentioned parameters
it is possible to generate mas awareness among the consumer community, build
loyalty, develop brand name, improve value perspectives, and offering
competitive differentiation.
Budget Allocation for Marketing
Based
on the results of the survey, Foodmandu realizes that adequate allocation of
capital is required for implementing an effective marketing strategy. Based on
the business needs and objectives, Foodmandu is determined to dedicate or
invest 20 percent of the forecasted revenue towards marketing activities for
the new locations. Another 10 percent towards on business transformation and
8-10 percent on established business.
Foodmandu is committed to reach every consumer within the
region employing state of the art technological tools, social media platforms,
web interface, and mobile interface. It will also make use of print and
electronic medium of advertising and marketing such as cable networks, newspapers,
and magazines (What's the Difference Between a Value Proposition and a
Positioning Statement? - Actuation Consulting, 2018).
In order to grow and succeed, Foodmandu requires to
maintain consistency in performance and productivity and maintain the
effectiveness of marketing and promotional strategies by effectively addressing
competitor strategies and by adopting ways that keep its consumer engaged with
the business, win their trust and satisfy their tastes and preferences
consequently benefitting the business through a long lasting mutually rewarding
relationship.
Conclusion
The discussion and analysis presented in
this report suggests that Foodmandu emerges as successful businesses across the
region due to the implementation of effective marketing strategies and promotional
campaigns. The report has provided vital insights on how effective use of
technology, marketing mix, targeting the consumers, and product positioning
could lead a business to performance consistency, increased productivity, and
higher profitability that result in the transformation of the business and
expansion.
