Marketing Management for Wagamama Restaurant Chain UK

This report focuses on the marketing management of Wagamama restaurant chain in UK. It includes marketing environment analysis, key issues, marketing objectives, segmentation, targeting and positioning strategy, and recommendations for marketing mix elements.

Marketing Management

TABLE OF CONTENTS
introduction......................................................................................................................................1
tasks.................................................................................................................................................1
1. Marketing environment analysis..............................................................................................1
2. Key issues of restaurant chain.................................................................................................5
3. Marketing objectives...............................................................................................................6
4. Critical evaluation of the segmentation, targeting and positioning strategy of restaurant
chain.............................................................................................................................................6
5. Recommendation for selected three marketing mix elements.................................................8
6. Critical evaluation of Corporate Social responsibilities of Wagamama..................................9
conclusion........................................................................................................................................9
references.......................................................................................................................................10

TABLE OF FIGURES
Figure 1: Porter's Five Force Model................................................................................................4
LIST OF TABLES
Table 1: SWOT analysis of Wagamama.........................................................................................1
Table 2: Pestle analysis of Wagamama restaurant chain UK..........................................................2

INTRODUCTION
Marketing management can be defined as a process of planning and supervision of new
product development, advertisement, promotion and sales of an organization (Nwokah and
Ahiauzu, 2009). The current research report is based on marketing management and it focuses on
a local and international restaurant chain “Wagamama” of UK. Research study will focus on the
marketing environment analysis and determining the major issues associated with this company.
Along with this, it shed lights on the process of developing objectives and marketing strategy for
organization. Study will apply different tools and techniques of marketing management. Further,
it will discuss segmentation, targeting and positioning strategy of the company. Including this,
evaluation of CSR policy of restaurant chain is also included in the following paragraph of the
report.
TASKS
1. Marketing environment analysis
Marketing environment analysis can be defined as a process of understanding the local
and international as well as internal and external environment of the company which may affect
the differ5ent operational activities of the organization (Fleisher and Bensoussan, 2003). There
are different tools and techniques which can be used by Wagamama for analyzing its internal,
external and competitor environment. These tools are described as under:
SWOT analysis:
Internal environment can be analyzed by using SWOT analysis which includes strength,
weaknesses, opportunity and threats of the company. SWOT analysis of Wagamama is as
follows:
Table 1: SWOT analysis of Wagamama
Strength:
 Great, fresh and nutritious food for
customers.
 Clean and simple designs and
decoration.
 Quick and user friendly customer
services.
Weaknesses:
 Low awareness of customers about the
Wagamama at international level.
 Lack of brand gratitude outside the
United Kingdom (Richards and
Padilla, 2009).
 High pricing policies reduces the total
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 Provide authentic and exotic noodle
house experience to all customers.
number of customers as compare to
the other restaurant chains of UK.
 Lack of privacy of customers.
Opportunity:
 Adoption of culture in international
market for appealing customers.
 Maintain professionalism in offering
services.
 Marketing campaigning can increase
the brand recognition of company at
international level.
 Improvement in environment and
sitting arrangements of the restaurant
chain (Oudan, 2007).
Threats:
 Menu of the company is not appealing
for the customers of every nation.
 Lack of services which are affordable
for normal customers can reduce the
total sales of the restaurant chain.
 Lack of long term sustainability.
PESTLE Analysis:
External environment can be easily analyzed by Pestle analysis tool which help in
determining all those factors which can influence the different operations of restaurant chain.
Pestle analysis of Wagamama is described as under:
Table 2: Pestle analysis of Wagamama restaurant chain UK
Political factors:  Political situations of Northern Ireland, UAE, United
States and Australia.
 Government policies, rules, restrictions affect the
business operation of restaurant chain.
 Instability of the government in different nations.
Economic factors:  Macroeconomic situation of UK.
 High rate of inflation (Ward and Lewandowsko,
2008).
 Changes in currency rates in different developing
countries.
 Low economic growth of UK and other nations.
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Social factors:  Changes in the demographic profiles of customers in
UK and all over the world.
 Wagamama follows the western culture in its food
which is not suitable for needs and requirements of
every customers (Young, 2001).
 Increasing the role of social media in daily life.
Technological factors:  Electronic fund transfer system and online booking,
etc are the major technology changes in restaurant
industry of UK which increases the total technical
cost of Wagamama.
 Website promotion, online marketing and digital
marketing all create tough competition of restaurant
chain in UK.
Legal factors:  Changes in the wages and labor law.
 Government’s new national living wage rules and
policies.
 Rules and regulations of Food Standard Agency
(FSA) in the interest of public health (Szwarc,
2005).
Environmental factors:  Impact of weather condition on taste and preferences
of customers.
 Unsustainable sea food by Wagamama restaurant
Porter’s five force model:
It is most appropriate tool for conducting competitive analysis of the company. There are
different forces which helps in determining the internal and external influence of competitors on
Wagamama.
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Figure 1: Porter's Five Force Model
1. Competitive Rivalry or competition (High): Wagamama is facing the high competition in
the restaurant industry of UK and other nation. In UK major competitors of the company
include Zizzi, Nando’s, Prezzo, Veeno, Millie’s Cookies, etc. All these are the major
competitors of the restaurant chain which may affect the sales and competitive
advantages of the organization.
2. Bargaining power of customers (High): this force is very high for Wagamama because
customers have large number of other options of restaurant so, they have strong
bargaining power which can affect the profitability of the organization as compare to its
competitors (Prasad, 2010).
3. Bargaining power of supplier (low): Wagamama has ranked one of restaurant chain in
UK so, many suppliers wants to supply their raw material to this restaurant chain. So, it
reduces the bargaining power of suppliers towards the company.
4. Threat of substitutes (High): It is also very high because Wagamama offers food
products and services and there are large number of substitutes which can affect the sales
of main products and services of the restaurant chain.
5. Threat of new entrant (Medium): This force is not as high and not as low because new
entrant can affect the initial sales of Wagamama but it can affect the brand image of
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Competitive
Rivalry or
competition
(High):
Bargaining power
of customers
(High):
Bargaining power
of supplier (low):
Threat of
substitutes
(High):
Threat of new
entrant
(Medium):

restaurant chain in customer’s mind. Because, marketing and advertisement of
Wagamama is very effective which has developed strong brand image in customer’s
mind (Craig and Campbell, 2012).
2. Key issues of restaurant chain
Audit of internal and external environment of Wagamama has reflected that restaurant
chain is facing the different challenges and barriers in managing different marketing activities.
These key issues are described as under:
 Competitive analysis has reflected that Wagamama has reflected that restaurant is facing
the high competition in UK and other countries which increases the marketing pressure
on organization. It is one of the marketing and financial challenge for organization
because for overcoming this barrier Wagamama needs to invest huge amount of money in
advertisement and promotion which help in reducing the unnecessary competition in
restaurant industry of UK (Yan, 2009).
 Along with this, unclear marketing goals and objectives is also one of the major issue for
Wagamama because it affect the overall organizational goals and objectives of the firm.
 Wagamama has invested huge amount of money in organizing marketing campaign of the
organization in all over the world. But, return on marketing investment is not fixed so,
restaurant chain needs to analyze the profitability of the investment before its application
in the marketing and promotion (Wagamama ranking, 2015).
 Changes in the government policies and laws also affect the marketing and other business
activities of the restaurant chain. As per the given case national living wage is one of the
major regulation which leads increment in the price of products and services of the
organization which affect the attraction of customers as well as reduce the positive
impacts of marketing and promotion activities of the company.
 Strategic issues is also one of the major challenge for Wagamama because restaurant
markets of UK has become very complex, turbulent and interrelated. It affect the
marketing and advertisement activities of the organization.
Overall, all these are the major marketing management issues which can affect the
marketing and advertising activities of the Wagamama (Layton, 2011).
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3. Marketing objectives
Marketing objectives of restaurant chain helps in developing effective activities and
strategic for different marketing and promotion tasks of Wagamama. As per the SMART criteria
major objectives of this restaurant chain is described as under:
 Specific: To increase the demand of the products and services of Wagamama in UK as
well as other countries.
 Measurable: To increase the value of market share by improving the brand recognition of
restaurant chain.
 Attainable: To generate profit and sales of the company by increasing the number of
customers of Wagamama.
 Realistic: To increase awareness of customers about the different products and services
of Wagamama.
 Time bound: To complete the marketing campaign of Wagamama in all over the world in
two months (Wagamama, 2015).
4. Critical evaluation of the segmentation, targeting and positioning strategy of restaurant chain
For attaining the above discussed objectives and resolving all the key issues Wagamama
needs to adopt appropriate marketing strategies which will comprise segmentation, targeting and
positioning strategy of the restaurant chain.
Segmentation strategy of Wagamama:
There are different segment which can be used by Wagamama for its distinct marketing
mix. It is a restaurant chain so, as per the products and services company needs to select the
following segmentation:
Segments Justification of selection
Age Group Wagamama should focus on the age group of 18 to 39
because these customers are included in the youngsters.
These age group highly uses the products and services of
restaurant chain so, it will help in increasing the sales of the
organization.
Income level Analysis of the company’s product has reflected that
Wagamama charges high price for their different products
and services for specific and unique dishes. So, company
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should select the customers segment of high level of income.
It will help in attaining marketing objectives of the firm
(Cao, Yong and Thomas, 2005).
Urban areas It is also considered as important segment for Wagamama
because it offers premium dishes, such as sea foods, etc
which can be afford by the urban areas of different counties
so, for increasing the profitability and level of income
company should select this segment.
Kids Competitors of this restaurant chain offers different products
and services for kids also. So, for reducing competition,
Wagamama needs to offer different food products for kids
also. This segment help in increasing the total sales of the
company.
World wide areas Company is operating its business in all over the world so, it
needs select the customers of local and international level
(Charles, 2007).
Targeting strategy of Wagamama:
Targeting strategy of a restaurant chain should be based on needs and requirements of
customers of each and every segment of the Wagamama. It will help in attracting customers of
all selected segment. So, this restaurant chain should focus on differentiated marketing strategy
for targeting all segments. As per this strategy, Wagamama needs to use social media marketing
for attracting young customers for different fast food products and services of organization.
Similarly, company can use the digital marketing for attracting customers of whole world. Along
with this, offering healthy and low specie products to kids, company can use the different
marketing activities such as advertisement on television, etc (Aaker, 2011). Differentiated
marketing strategy is beneficial for attaining the different objectives of the Wagamama such as
sales maximization, improving brand recognition and increasing the profitability of the
organization.
Positioning strategy of Wagamama:
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Major objective of the positioning strategy is to develop strong brand image of the
company in customers mind as compare to its competitors. Wagamama should use two different
strategies for positioning strategy such as pricing and quality. Organization should charge
appropriate price of its products and services as per the quality. Analysis has reflected that
co0mapny focuses on the healthy, nutrition and fresh food for every customers so, company
should change high prices for their products and services it will help in developing a strong
qualitative image in customers mind. Including this, company should also change its positioning
strategy as per the competitors. If any competitor uses the effective marketing and advertisement
for launch of new products and services then Wagamama should also adopt attractive and low
cost marketing strategies for positioning its products and services. It will help in developing
good image of the company in customers mind (Positioning Strategy, 2015).
5. Recommendation for selected three marketing mix elements
As per the above discussion Wagamama is facing the different key marketing issues
which can affect the marketing position of the organization. So, company should follow
appropriate strategies for attaining all marketing objectives and overcoming all key issues in
effective manner.
Recommendation for Products: Wagamama needs to offer products and services as per the
needs and requirements of customers. Regarding this company needs to conduct a customer
survey which will help in determining the actual taste and preferences of local and international
customers of restaurant chain. Along with this, organization should focus on the fresh and
nutrition food products and services. It will help in developing good image in customer’s mind
which will lead improvement in the overall sales of restaurant chain (Restaurant Marketing,
2015).
Recommendation for Price: Low price products and services create question mark on quality of
products and services so, Wagamama should follow appropriate pricing strategy. It should
charge price as per the quality of products and services. Pricing policy must be focused on the
value of money concept for customers also. So, organization should provide appropriate return
for the purchase money of customers. It will help in increasing the satisfaction level of
customers.
Recommendations for promotion: for overcoming the marketing issues Wagamama should
focus on different promotion strategy of the organization. Restaurant chain should promote its
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product and services by different strategies such as discount and coupons for loyal customers of
the company. It will help in attracting customers which will lead improvement in total sales and
profitability of restaurant chain (Ward and Lewandowsko, 2008).
6. Critical evaluation of Corporate Social responsibilities of Wagamama
Environmental analysis of Wagamama has reflected that company has followed
appropriate corporate social responsibilities towards all stakeholder which help in sustainable
development of the company. Company focuses on needs and requirements of customers which
play important role in increasing the satisfaction level of every consumer. Along with this,
restaurant chain also follow different laws of employment which help in increasing job
satisfaction of every employee. Wagamama focuses on the appropriate working environment
favorable policies for salary and wages, etc. CSR policies of restaurant chain has also reflected
that Wagamama has followed appropriate format of financial reporting which helps in
communicating all necessary information to all investors, government and shareholder. On the
other hand appropriate payment of all taxes and interest is also one of the major CSR of
Wagamama and this responsibility has also appropriate followed by Wagamama (Michman,
2006).
CONCLUSION
The current research report has concluded that Wagamama has followed appropriate
strategies for managing its marketing activities. But, it has faced various key issues and
challenges and for overcoming all these issues organization should follow appropriate marketing
strategies such as suitable products as per the needs and requirements of customers, favorable
pricing, appropriate promotion al strategy, etc. All these strategies will play important role in
increasing sales and profitability of the organization in all over the world.
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REFERENCES
Books and journals
Aaker, D., 2011. Marketing Research. John Wiley and Sons.
Cao, Yong, and Thomas, S., 2005. Reducing adverse selection through customer relationship
management. Journal of Marketing. 69. pp.219–229.
Charles, W. L., 2007. International business: competing in the global marketplace. New York:
McGraw-Hill.
Craig, T. and Campbell, D., 2012. Organisations and the Business Environment. 2nd ed.
Routledge.
Fleisher, S. C. and Bensoussan, E. B., 2003. Strategic and Competitive Analysis: Methods and
Techniques for Analyzing Business Competition. Pearson Prentice Hall.
Layton, R., 2011. Marketing: is management all that there is?. Journal of Historical Research in
Marketing. 3(2). pp.194–213.
Michman, R., 2006. The Affluent Consumer: Marketing and Selling the Luxury Lifestyle.
Greenwood Publishing Group.
Nwokah, N. G. and Ahiauzu, I. A., 2009. Emotional intelligence and marketing effectiveness.
Marketing Intelligence & Planning. 27(7). pp.864–881.
Oudan, R., 2007. Market Orientation. VDM Verlag.
Prasad, V., 2010. Business Environment. Gyan Publishing House.
Richards, T. and Padilla, L., 2009. Promotion and Fast Food Demand. American Journal of
Agricultural Economics. 91(1). pp.168-183.
Szwarc, P., 2005. Researching Customer Satisfaction & Loyalty: How to Find Out what People
Really Think. Kogan Page Publishers.
Ward, S. and Lewandowsko, A., 2008. Is the marketing concept always necessary?. The
effectiveness of customer, competitor and societal strategies in business environment
types. European Journal of Marketing. 42(2). pp.222–237.
Yan, R., 2009. Product categories, returns policy and pricing strategy for e-marketers. Journal
of Product & Brand Management. 18(6). pp.452–460.
Young, S., 2001. What do researchers know about the global business environment?.
International Marketing Review. 18(2). pp.120–129.
Online
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Positioning Strategy. 2015. [Online]. Available though: <
http://www.marketing91.com/positioning-strategies/ >. [Accessed on 11th December
2015].
Wagamama ranking. 2015. [Online]. Available though: <
http://www.ranker.com/review/wagamama/2353009#theRanks >. [Accessed on 11th
December 2015].
Wagamama. 2015. [Online]. Available though: < http://www.wagamama.com/>. [Accessed on
11th December 2015].
Restaurant Marketing. 2015. [Online]. Available though: <
http://www.rrgconsulting.com/restaurant_marketing_article.htm>. [Accessed on 11th
December 2015].
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