Marketing Strategy for The Early Bird Restaurant

This report discusses the marketing strategy implemented by The Early Bird restaurant in London, UK. It provides an overview of the restaurant, analyzes the range of strategies used, conducts a situational analysis, and develops a set of objectives. The report also discusses the implementation strategy and provides recommendations for the restaurant's future success.

Marketing Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Organisational overview..............................................................................................................1
Range of Strategies......................................................................................................................1
Organisational strategic situation and development of set of objectives.....................................4
Implementation strategy..............................................................................................................7
Recommendations........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategy is general action plan that assists in achieving set of long term and overall
objectives of business under uncertainty situations (Rugman and Verbeke, 2017). There are
various kinds of strategies including marketing strategy, entrepreneurial strategy and so forth
which helps businesses to conduct operations effectively, attract customers and stay in lead in
competition. good strategy aids in creating foundation for an enterprise to ensure growth,
development and success. In this report, The Early Bird is selected which is small independent
restaurant situated at London, UK. It emphasises towards fresh local ingredients to make food as
per customer order. It prepares fresh food items for guests as per first come first basis and avoids
using processed along with frozen products. The report comprises of overview of company,
comprehensive situational analysis, strategic choices and set of recommendations.
MAIN BODY
Organisational overview
The Early Bird is one of small independent restaurants which is pioneer within hospitality sector
that brings world class chef manages together with operated food establishments to London,
offering huge amenities in comfort of sururbs. The company is the result of dream of a couple
who are Daniel and Kristen, who envisioned world class food enterprise which offers fresh,
quality, innovative and creative food and beverage in welcoming environment. In the past years,
the restaurant has achieved a position or ranking in top 5 restaurants within the city (The Early
Bird, 2019). The interior of the establishment is great and is one of the favourite spot among
guests to plan breakfast meetings. It uses all fresh ingredients and provides great services to its
customers. Its menu favourites include Early Bird Risers, The Griddle, The Pantry, Other
Breakfast Favourites, Cocktails and Beverages.
Range of Strategies
Strategy is defined to action which is taken by organisational entrepreneurs for attaining
set of objectives. It is a general direction which is set by business managers for the enterprise and
its essential components for attaining desired future state. There are two types of strategies, one
is entrepreneurial strategy and the other is entrepreneurial strategy. In context to entrepreneurial
strategy, it is a strategy in which entrepreneurs makes widespread as well as certain changes in
decision making patterns of organisation (Gans, Stern and Wu, 2019). While intrapreneurial
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strategies are those strategies that are taken by Intrapreneur for the betterment of company. In
context to The Early Bird, some of the entrepreneurial and intrapreneurial strategies are as
follows:
McKinsey 7S framework
It is the strategy that includes soft and hard elements that aims in influencing business matters
directly. It is one of intraprenurial strategy in which business managers makes decisions for the
elements to achieve sustained position in competitive business environment (McKinsey 7S
Strategy, 2020). It is commonly used by business intrapreneurs to analyse elements which affects
success of company, executing new strategies, facilitating changes and supporting entrepreneurs
decision making. The elements of the strategy in context to The Early Bird are as follows:
Figure 1: McKinsey 7S Strategy. 2020
(Source: McKinsey 7S Strategy. 2020)
Hard elements: The elements of the strategy that are part of hard elements are the
following:
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Strategy: It is organisational plan which is developed for the purpose of building and
maintaining competitive benefits (Guo and Gong, 2018). It involves set of decisions along with
action steps that are required for changing external environment of organisation. For example,
managers of The Early Bird can devise an effective strategy that helps in finding external
opportunities along with developing important resources and capabilities to source new
competitive advantages.
Structure: It is organisational chart which represents the ways distinct departments or
units are organised, reporting system and integration of tasks. In association top The Early Bird,
managers are using functional organisational structure in which reporting of who is accountable
to whom and other are described for different functions.
System: It is primary along with secondary activities which are part of daily functioning
of entity. In The Early Bird, managers are responsible for systems including product
development, supporting practices such as accounting, human resources and so on.
Soft elements: Certain dimensions which are part of soft elements are underneath:
Shared values: It is super ordinate objective as well as the important element of the
strategy. It represents standards, beliefs, attitudes and norms of enterprise. In context with The
Early Bird, management team has adopted shared values which are interrelated with its
employees. These are making differences, being accountable and many more.
Skills: It is the capability and skill set of human resources available with the company (Teh and
Et. Al., 2020). Managers of The Early Bird while recruiting employees or chefs, they focuses of
various skills such as creativity, decision making, innovation and so forth.
Staff: It is the most valuable asset of business and is also known as human resource. In
case with The Early Bird, it has around 40 to 55 employees who are experienced in offering
delicious and quality of food to customers.
Style: it is the management style that involves actions in which superiors behave, take
actions and interacts. In The Early Bird, all managers consult with the entrepreneur while making
and implementing decision for enterprise.
BCG Matrix
It is the entrepreneurial strategy which is adopted by entrepreneurs to represent products and
services offered by enterprise in different quadrants so to make decisions related to keeping,
selling and more investments. It is the model that aids in analysing businesses and is used for
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emphasising on profitability, growth and many more (Schawel and Billing, 2018). The quadrants
of the framework in relation to The Early Bird are as follows:
Dogs: The products of enterprise that have low growth as well as market share are said as
dogs. These are usually in the situation of break even that is neither earning nor devouring great
cash. Some of food items of The Early Bird that are under dog category includes bacon grilled
scallions, prosciutto, guacamole, bananas and toasted coconut, cheddar biscuit, com tortillas,
spring 44 vodka and so on.
Question marks: The offerings of business that have high growth market addition to low
market share are categorised as question marks. These products consume huge money and bring
little returns. As per the entrepreneurs of The Early Bird, products that are in question market
category includes roasted tomatoes, spicy sausage, choice of toast, crispy bacon, honey yogurt,
blackberry or mango mimiso and segura vida rose lemonade.
Stars: Organisational products having high growth market together with high market
share are termed as stars. These generate huge cash for business and have monopolies or first to
market items. Certain star items of The Early Bird are fresh mozzarella, malted Belgian waffle, 2
soft poached eggs, Toasted Granola and novo coffee.
Cash Cows: Products of firm which have relatively low growth market and huge market share
are defined as cash cows (Lee and Et. AL., 2018). These are leaders in market as well as generate
more than what is invested in the. Few offerings of The Early Bird that are in cash cows quadrant
are crème brûlée french toast, berry compote, salsa roja white cheddar, arugula, ebr house mix,
and ice or blended Julius.
Organisational strategic situation and development of set of objectives
An organisation conducts situational analysis to identify what are its capabilities and what
position it have in competing business environment (Agysholli, 2019). In case with The Early
Bird, managers conduct situational analysis through using PESTLE Analysis and SWOT analysis
so to find out its entrepreneurial capability together with position in the market.
PESTLE Analysis:
It is the model that is adopted while analysing external macro factors that influences
business practices and other essentials to huge extent. The Early Bird has achieved an un ique
position within external business environment of UK through offering wide type of breakfast
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dishes to customers. Moreover, the factors that impacts on operations of The Early Bird are as
analysed:
Political: Political factors including tax reforms, guidelines, political stability and heath
regulations impacts working of restaurant in UK. It is seen that UK has stable and fair political
system that opens huge opportunities for restaurant working in the nation. For example, before
making some changes in health grading system, managers of The Early Bird are informed
properly to ensure that the restaurant works as per the code to gain highest ratings.
Economic: Economic factors such as economic heath, business cycle, interest and other rates
impacts performance of restaurant drastically (Sroufe, 2018). As restaurants in UK cannot
control economic factors but can assess them as well as reacts accordingly. For instance, when
minimum wages goes up, then managers of The Early Bird determines the number of employees
they can afford and accordingly makes decision.
Social: In UK, there are numerous number of social factors which affects operations of
restaurants in negative or positive manner. For example, attitude, preference and choices of
customers for organic food impacts menu of restaurant. However, managers of The Early Bird
have set the menu according to preference of customers and their health consciousness that helps
it to enhance customer base.
Technological: It is most dynamic factor of whole situational analysis. It is seen that
rapid technological advancement together with changes impacts restaurants in UK. By adopting
various technologies or accounting software including Toast POS, QuickBooks Online and so on
in proper manner helps The Early Bird managers to increase the interest flows addition to
profitability in dynamic environment.
Legal: Legal addition to local bodies of UK impacts businesses of restaurants as the
regulatory authorities visits distinct restaurant area such as kitchen and store for checking quality
and expiry of food items as well as other hygiene conditions (Bees and Williams, 2017). In
context to The Early Bird, all its store and premises are kept clean and huge focus of given on
hygiene conditions. Along with this, the restaurant uses high quality and fresh ingredients hat
help in fulfilling all legal conditions and managing business in track.
Environmental: In UK, it is necessary for managers to consider exterior and interior
environment of restaurants. For example, indoor plants are placed in restaurant of The Early Bird
and internal cleanliness is also taken care on regular basis. Along with this, external surroundings
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are cleans together with hassle free that guides customers to reach the company easily and enjoy
its clean and calm surroundings.
SWOT Analysis:
For analysing the capabilities of company, SWOT analysis is done as it provide detailed
information related to strengths, weaknesses, opportunities and threats connected with business
(Yang, Bao and Xie, 2019). SWOT Analysis of The Early Bird restaurant is as follows:
Strengths Weaknesses
 The Early Bird restaurant is one of spot where
customers like to have breakfast meetings that
position it among top 5 restaurants of UK.
 The marketing strategies and promotion tactics
of the restaurant are different from those of
other restaurants in the UK.
 It also offers large number of dishes and other
drinks which meets satisfaction of its guests
and enhance its customer base.
 The company has limited and
inexperienced human resources
that resistant to adopt changes in
working system.
 Less recognition or little official
presence in overseas market
which impacts on its position
and image at global level.
Opportunities Threats
 The Early Bird has opportunity of providing
training and assurance to its staff to adopt
changes and achieve success.
 Through various market entry strategies, the
entrepreneur of the business can expand it in
overseas market for making official presence
in diverse locations (Jabbarnia, 2017).
 Sudden changes in political
system and legislations in the
country is huge threat for it.
 Fierce competition from
domestic and multinational
restaurants id another threat for
The Early Bird.
Development of objectives:
As per the research conducted and situation analysis, managers of The Early Bird have
developed following set of objectives to attain in future by implementing effective strategic
choice:
 To launch new product item in the menu within 5 months to enhance profitability by
25%.
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 To make business expansion in untapped market by 2021 for maximising customer base
by 28%.
 To decrease employee turnover by 15% through providing training and development in
coming 7 months.
 To reduce production cost by 11% so to improve profit margin till 2021.
Implementation strategy
According to the review of various strategies, managers of The Early Bird implements
suitable strategy which is consistent with the developed objectives. In context to BCG matrix,
implementation of strategy of cash cow is suitable for the company. It is because making
investment in products that are categorised in cash cows will benefit the entity in achieving more
than the amount invested (Nagle and Müller, 2017). When the company will generate more
revenue then it will lead towards improving productivity and making other decisions like
business expansion in untapped market and launching new product. Though this, managers of the
restaurant will attain all its developed objectives within defined duration.
It is also important for administrators to make emphasis on weaknesses, opportunities,
threats and strengths. This will be done through implementing strategy of SWOT Analysis so
that managers of The Early Bird will capitalise more on strengths, reduce weaknesses, adopt
opportunities and overcome threats. With the strategy, company will be successful in providing
training to manpower that will result in achieving objective of decreasing staff turnover.
Moreover, adopting opportunity of market expansion will help in attaining objective that is
improving customer base and making productivity to the defined state (Xiong, Rani and Harun,
2019).
Recommendations
Managers of The Early Bird are recommended to conduct market research on ongoing basis
so to get information about real position in the market. Addition to this, to maintain or improve
existing productivity, The Early Bird managers are advised to make invest in cash cows products
as this will result in passive gains. Moreover, the entity is recommended to make certain changes
in its menu so that it can satisfy the unmet needs of targeted audiences and doing so will result in
more number of potential and loyal customers who will make visit to the restaurant to enjoy its
breakfast and other offerings.
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CONCLUSION
As per the mentioned information, it is concluded that strategy plays crucial role in business
functions as it provide directions towards attaining identified or developed objectives.
Entrepreneurial strategy is the action plan that is set by organisational entrepreneur to develop
approaches for competitive along with constrained business environment. At same time,
intraprenurial strategy is termed as the action plan which is defined by internal managers of
business to achieve successful outcome. McKinsey 7s Framework is an intraprenurial strategy
that includes hard and soft elements in which certain decisions are set by the internal business
administrative to gain desired state. BCG Matrix is one of entrepreneurial strategy wherein major
decision related to retaining, selling or investing in certain product are taken by entrepreneurs
who set and manage the enterprise. PESTLE analysis is suitable method fro situational analysis
and to generate information about capabilities sand position effective framework is SWOT
analysis.
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REFERENCES
Books and Journals
Agysholli, G., 2019. Podnikatelský záměr (Doctoral dissertation, AKADEMIE STING).
Bees, A. D. and Williams, I. D., 2017. Explaining the differences in household food waste
collection and treatment provisions between local authorities in England and Wales.
Waste Management. 70. pp.222-235.
Gans, J. S., Stern, S. and Wu, J., 2019. Foundations of entrepreneurial strategy. Strategic
Management Journal. 40 (5). pp.736-756.
Guo, R. P. and Gong, J. Q., 2018. Management Innovation of Entrepreneurship Education in
Universities Based on McKinsey 7S Model. China University Students Career Guide,
(5), p.17.
Jabbarnia, R., 2017. Growth plan for a specialized restaurant (Doctoral dissertation, California
State University, Northridge).
Lee, Y. H. and Et. AL., 2018. Investigating adolescents’ sweetened beverage consumption and
Western fast food restaurant visits in China, 2006–2011. International journal of
adolescent medicine and health.
Nagle, T. T. and Müller, G., 2017. The strategy and tactics of pricing: A guide to growing more
profitably. Routledge.
Rugman, A. M. and Verbeke, A., 2017. Global corporate strategy and trade policy (Vol. 12).
Routledge.
Schawel, C. and Billing, F., 2018. BCG-Matrix. In Top 100 Management Tools (pp. 41-43).
Springer Gabler, Wiesbaden.
Sroufe, R. P., 2018. Index', Integrated Management (pp. 391-406). Emerald Publishing Limited.
Teh, D. and Et. Al., 2020. Sustainability strategy and blockchain-enabled life cycle assessment: a
focus on materials industry. Environment Systems and Decisions, pp.1-18.
Yang, Y., Bao, W. and Xie, G. H., 2019. Estimate of restaurant food waste and its biogas
production potential in China. Journal of cleaner production. 211. pp.309-320.
Xiong, T. Z., Rani, M. F. C. A. and Harun, K. S., 2019. Break Time: A SWOT Analysis for an
Order Management System for Food Court in Universities and Colleges. International
Journal of Psychosocial Rehabilitation. 23 (4).
Online:
The Early Bird. 2019. [Online]. Available through: < https://www.earlybirdrestaurant.com/ >
McKinsey 7S Strategy. 2020. [Online]. Available through: <
https://creately.com/blog/diagrams/mckinsey-7s-model-guide/>
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