Managing Market Environment for China City Restaurant

This report covers about the customer behaviour which helps the marketer of China City Restaurant to determine the potential customers and set their target segment in order to offer better quality Chinese items and gain competitive advantage. STP is the marketing model which consist segmentation, targeting and positioning which helps them to determine their targeted audience. They can apply marketing mix to formulate effective marketing strategy to attract large number of customers and react at the top of Restaurant industry. Moreover, it is essential for marketers to determine recent trends in this industry to reduce social issues and achieve sustainable growth.

Managing Market
Environment

Executive summary
This report covers about the customer behaviour which helps the marketer of China City
Restaurant to determine the potential customers and set their target segment in order to offer
better quality Chinese items and gain competitive advantage. STP is the marketing model which
consist segmentation, targeting and positioning which helps them to determine their targeted
audience. They can apply marketing mix to formulate effective marketing strategy to attract large
number of customers and react at the top of Restaurant industry. Moreover, it is essential for
marketers to determine recent trends in this industry to reduce social issues and achieve
sustainable growth.

Contents
Executive summary ........................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
Consumer behaviour....................................................................................................................1
marketing strategies.....................................................................................................................1
Ethics in marketing strategies .....................................................................................................1
Trend analysis .............................................................................................................................1
Recommendation ........................................................................................................................1
CONCLUSION ...............................................................................................................................2
REFERENCES................................................................................................................................4

INTRODUCTION
Market environment refers to the sum of all external and internal factors which influence
or drive marketing activities of an organisation (Amirtham, 2018). So the management of
business have to aware of the current trends, marketing environment to handle any challenges
and use profitable opportunities which foster their performance as well as helps them to achieve
success. In order to achieve success in current dynamic market marketers must analysis market
environment which affect directly and indirectly their business operations addition to
productivity. To define the concept of managing market environment the selected business
organisation is China City Restaurants which is a newly established Chinese restaurant. It was
located in London and have around 50 employee to offer and serve Chinese food to the people in
Market (China City, 2022).
This aim of this report to critically examine key consumer behaviour as well as
marketing considerations for the newly established business organisation. Further, it covers the
identification of recent market trends related to the restaurant industry as well as recommendation
for the improvement.
MAIN BODY
Consumer behaviour
Consumer behaviour refers to the study of how individuals are making buying decisions
to meet their demands, expectations, wants, needs and desires as well as how their mental,
emotional addition to behavioural responses impact the purchasing decisions (Grzegorczyk,
2021). In order to determine consumer behaviour towards Chinese restaurant, market analyst of
China City Restaurants can use STP to determine the behaviour of their targeted audience which
they want to offer their product and services. STP termed as segmentation, targeting and
positioning which enable them to position their Chinese items to target different segment of
people more effectively and efficiently.
Segmentation- This is the first step of this model which helps market analyst of China
City Restaurants in determine make multiple customer segment of their new restaurant based on
their traits. There are four category of the segmentation such as geographic, demographic, Psycho
graphic and behavioural in order to classified their customers in different segment. As in the

demographic segment they targeted youth, teenager and people who belong to the age group
between 10 to 40. in behavioural segment they can target people who can sit with comfort and
enjoy healthy Chinese food (Jiang, Ritchie and Verreynne, 2022)
Targeting- In this stage marketers of China City Restaurants can set their target market
and choose most profitable segment which they can retain them for long time. Along with people
who are ready to pay amount of food items to meet their desires and increase their experience as
well as offer their service to them which they can easily reach. As market of China City
Restaurants must target people who have good income, prefers to enjoy Chinese food at city
metro area where they can easily attract large number of youth and people in order to increase
their customer base and profitability.
Positioning- IN this stage marketers of China City Restaurants can make effective
strategy to offer their food items with best quality and price in order to add value to their target
customers and increase their experience to gain competitive advantage. As they can use digital
marketing to promote their restaurant as well as offer their healthy and delicious Chinese food to
meet their expectations so they connect more with their services and restaurant (Kazakov,
Howick and Morton, 2021).
Marketing strategies
Marketing strategies refers to the plan of action and method of marketers to reach large
number of customers and attract them toward their services in order to retain them for life long.
Marketer of China City Restaurants can use marketing mix to make their effective marketing
strategies to drive the traffic of restaurant industry towards their new business. Marketing mix
includes 7Ps which are product, price, place, promotion, packaging, people and positioning. In
the dynamic market environment they need to visit these factors to ensure that they are on track
as well as achieve maximum profitable results (Khamidulina and Guzelbaeva, 2019).
Product- It is related to the quality, material, taste, size, nature and other things related to
the products and services which they are offer in the market to increase experience of customers.
As marketers of China City Restaurants must determine the current trends in market and
preferences of their potential customers to make and offer best quality of Chinese food to meet
their needs.

Price- It is related with price of items, offers, discounts, and many other aspects related to
the cost of product and services. As marketers of China City Restaurants must determine price of
product of their competitors and set most affordable price which helps them to increase their
profit margin and customer base.
Place- It is concerned with location, market place, and other services which helps
company to reach maximum number of people and make easy for their customers to enjoy their
food and services easily. Market analyst of China City Restaurants can chose main location of
the city where people come and enjoy their Chinese products easily. As they choose main market
of London to offer their Chinese product and meet the demands of people (Maciaszczyk and
Kocot, 2021).
Promotion- It is associated with the marketing activities like promotion, advertisement of
product and services to spread awareness about their product. In China City Restaurants,
marketers can use digital marketing which is more popular marketing tools nowadays which
helps them to generate interest among youth and attract them to visit their restaurant or enjoy
food.
Packaging- It is related to packaging of food items, serving methods, containers and
other items which make product more attractive and presentable. In China City Restaurants,
marketers can use recyclable containers and serve their food with more innovative way by
maintaining hygiene to increase experience of targeted customers.
People- This factor includes staff member, manager, marketer chef, workers, and people
who are engaged in restaurant to provide food and services. In China City Restaurants, all these
staff member upgrade their skills by training timely and work properly to make a team with
coordination to increase quality, effectiveness and productivity.
Positioning- It is refers to the production process and serving process which add value to
food items or enhance their taste to maximise customer experience and take good response from
them. Professionals of China City Restaurants must make their food items with better quality
ingredients and serve it genitally to meet their expectations (McCrea, Zhu and Johansen, 2022).
Ethics in marketing strategies
It is related to the fair and ethical practices with customers, society to helps them to
increase their living standards. By applying proper marketing ethics, market analyst can engage

potentials with high credibility, significant market share, customer loyalty, better sales, improved
brand value as well as better value. Professionals of China City Restaurants must conduct their
practices by treating people in right manner, provide accurate information, labelling their product
with right information such accurate manufacturing and expiry date and other to prevent the
health and interest of customers. Also they do not provide false and manipulating data, content
and information in their advertisement which harms health, sentiments of customers. Marketers
must collect proper information about their business such as ingredients, number of people,
service facilities and other to make effective content for promotion of their new Chinese
restaurant in order to attract large number of customers to satisfied their needs. This ethical
practices will helps them to foster their profitability and meet short term or long term goals with
more perfection (Muryati, Pujiastuti and Mulyani, 2020).
Trend analysis
It refers to the recent trends in the restaurant market as well as customers taste,
preferences and demands which directly and indirectly affect the restaurant business. This trends
includes social issues and sustainability which has the great impact on the China City Restaurants
to run or operate their business operations successfully. As there are various social issues in the
industry by that customers faced various problems. Social issues includes food quality food
ingredients, problems in order of deliver food, problems related with pollution waste and others.
Market analyst must search about these issues in order to bring innovation in their Chinese
restaurant to solve the social issues (Shukla and Pattnaik, 2019).
The CSR of China City Restaurants includes environmental friendly practices such as
they can use better quality natural or organic ingredients to increase the health condition of
people, make food items with perfections without wasting materials. They can also add new
services in their restaurant which are online ordering, payment and home delivery to customers to
helps them to enjoy food in their busy life schedule.
They can also make food and conduct their operations by maintaining sustainability like
they can pack their food items in paper begs and containers which reduce the use of polythene
that harm environment or increase global warming. Also they can use recyclable containers and
serving plates which reduce cost, wastage and garbage in order to reduce pollution in

environment and enhance the current condition. By this they can contribute in the elimination of
social issues and increase the living standards of people. They can use stats of government and
law to get proper guidance about how they run their organisation and shorten their supply chain
in order to prevent environment, natural resource and spread awareness among users to not use
such thing which harm them or surrounding of their area (Vasyaycheva, 2020).
Recommendation
It has been recommended to market analyst and entrepreneur of China City Restaurants
that they can conduct deep research about market environment, customer behaviour in order to
make best marketing or business strategy to develop their business.
 They can use government report stats to determine the number of youth in metro city area
and their issues to modified their process, policy and plan in order to offer them best
quality Chinese food items to reduce their issues and increase their experience.
 They can conduct their operation under the CSR to reduce pollution, waste and use
cardboard and paper made container instead of plastic based which helps them to attract
people and increase their interest towards their restaurant.
 They can also use food ingredients wisely in order to reduce their operation cost and price
of their food items to offer them at reasonable price with unique packaging to target
customer at target Market to gain competitive advantage (Veselova and Veselova, 2018).
CONCLUSION
As per above presented information it is concluded that, managing market environment is
an essential activities which the market analyst must considered while making their marketing
strategy. There are various factors such as consumer behaviour in order to determine their target
segment. Marketers can apply STP model to determine their consumer behaviour and set their
target audience. In order to make effective market strategy they can apply and use marketing mix
and its 7Ps in order to enhance their performance. They can use codes of ethics to make
marketing strategies by fulfilling the needs of employees. In order to achieve success in

competitive market they must analysis industry trends which impacted their business which
includes social issues and sustainability.

REFERENCES
Books and journals
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capability: managing tourism in a turbulent environment. Journal of Travel
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Khamidulina, A. and Guzelbaeva, G., 2019. Features of managing sources of financing
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Online
China City, 2022. [Online]. Available through: <https://www.opentable.co.uk/r/china-city-
london>