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Global Economic Environment and Marketing - PDF

   

Added on  2021-04-16

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Running head: GLOBAL ECONOMIC ENVIRONMENT AND MARKETINGGLOBAL ECONOMIC ENVIRONMENT AND MARKETINGName of the StudentName of the UniversityAuthor’s Note

1GLOBAL ECONOMIC ENVIRONMENT AND MARKETINGTable of ContentsIntroduction........................................................................................................................2About the Bread Talk Group..............................................................................................2Competitive Advantage......................................................................................................3Market Segmentation Process..........................................................................................4Consumer Decision making...............................................................................................5Ansoff’s Matrix (within MARCO: PESTLE)........................................................................7Conclusion.........................................................................................................................8References.........................................................................................................................9

2GLOBAL ECONOMIC ENVIRONMENT AND MARKETINGIntroductionThe report focuses on the ways in which the changes within the global economyimpacts upon the marketing strategies of the Bread Talk Group. The global economicenvironment has direct relationship with marketing since the global factors including thecultural or social factors, demographics, political factors and legal issues impacts themarketing procedure of the company (Terpstra, Foley & Sarathy, 2012). The influenceof this organization’s present and future strategies for sustainable competitiveadvantage, branding and its segmentation process is also critically evaluated in thisstudy. It has been well known fact that consumers play the vital role in the business asthey are ones that influences the marketing strategies in business. Applying this sameeconomic scenario, the potential affect of the enterprise marketing strategies on thecustomer’s decision making is also discussed in this report. In the last section, theAnsoff Matrix (within MARCO: PESTLE) is also explained in this study for evaluating thepossible growth opportunities of the Bread Talk Group. The Ansoff matrix refers to thestrategic planning tool, which provides the framework to facilitate the marketers as wellas managers devise strategies for the future growth. Furthermore, the opportunities forgrowth within this enterprise’s MACRO environments are also highlighted in this report. About the Bread Talk GroupThe Bread Talk Group Limited is the multinational food and beverage enterprisethat is headquartered in Singapore. This organization has organized its units ofbusiness based on goods and services. It has mainly three operational segments thatinvolve- food court segment, restaurant segment and bakery segment. Their bakerysegment is basically engaged in business of production as well as retailing of bakeryand other confectionary products involving franchising (BreadTalk Group – Home,2018). The restaurant segment is mainly involved in business operation of food as wellas drink outlets and eating restaurants. The food court segment is majorly involved inoperation as well as management of the food courts. Its subsidiaries involve Bread TalkPte Ltd that is a producer, baker and dealer in bread. Over the last few years, the BreadTalk Group has expanded increasingly to become distinguished household brandowner. The group basically operates in more than 850 bakeries and 26 globallyacclaimed restaurants across Singapore. Their vision is to institute this company as thebrand and being reputed for innovative and trend setting producer of bread. Their mainpurpose is to establish this company as familiar brands globally (Kotler, 2015). This firmprimarily concentrates on the customer’s preferences and their level of satisfaction. Infact, their main target markets are the high income or middle income people and youngworking group. The mina competitors of this enterprise are Four Leaves, My Bread andso on. One of the vital factors which differentiate this enterprise from other traditionalbakeries is their meaningful and specific names to all types of bread. This strategy

3GLOBAL ECONOMIC ENVIRONMENT AND MARKETINGadopted by the company mainly attracts the younger generations the most. Over theyears, this company has constructed universal reputation to provide renowned productsas well as loftier service to their customers. At present, this firm has been trying toexpand its business and also open more outlets in the existing market. Additionally, theyhave been looking forward to broaden their commodity development practice and gratifythe desires of their customers for improving their position in the market and attain largermarket share. Competitive AdvantageA firm can attain competitive advantage by offering their customers higher valueas compared to the rivalries such as- offering discount or low price product andproviding good quality products. Creating competitive advantage is one of the most vitalgoals of Bread Talk Group as it permits it to attain higher returns for their shareholders(Wagner III & Hollenbeck, 2014). Bread Talk Group uses three strategies for gainingcompetitive advantage over the competitors, which includes- differentiation strategy,focus approach and cost leadership approach. Their differentiation strategy involvesproduction of good quality products, innovation of new products, innovation in foodculture and price differentiation approach. This company’s focused approach involvesacquiring as well as holding of intellectual property rights. In addition, this approachalso helps them to narrow their product lines and customer segments. Their costleadership approach involves manufacturing of products at low cost by adopting newtechnologies. Furthermore, adoption of these strategies through which this enterpriseattains competitive advantage is explained below:Quality of product- Controlling quality of the products is the major priority of BreadTalk Group. Their R&D( research and development) team tries to innovate newproducts by blending local culture with good quality ingredients. They mainly strategizesto source globally for selecting natural ingredients, which are further prepared from rawstate to create fillings of the bread. The manufactured products are further checked aswell as qualified by the food technologists. This however ensures them greater controlon food quality of finished products. In fact, their breads are also baked fresh at everyoutlet in regular basis and is then packed as well as indicated with ‘best before’ date.Thus, adoption of this strategy for producing quality products helps to satisfy theircustomers and attain their trust. Price leadership- As the standard of living of the individuals is increasing at the presentyears and economic environment becoming better relative to last years, thisorganization has adopted “price differentiation” strategy in marketing their products. Theprices of their bakery products are near about 20-25% more expensive in comparisonwith other traditional bakeries. However, high product price level helps the marketing

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