Marketing Mix and Strategic Decisions of Pret a Manger

This written coursework explores the marketing mix elements of Pret a Manger, including product, price, place, promotion, process, people, and physical evidence. It also discusses the company's strategic decisions, such as its use of the BCG matrix and marketing theories like Maslow's hierarchy of needs and communication mix theory. Finally, the report evaluates the effectiveness of Pret a Manger's marketing efforts.

Written Coursework
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Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Marketing mix..................................................................................................................................4
Positioning.......................................................................................................................................8
Strategic decisions...........................................................................................................................9
Marketing theories.........................................................................................................................10
Maslow’s hierarchy of needs.............................................................................................10
Communication mix theory...............................................................................................11
The effectiveness of its marketing efforts......................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................15
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INTRODUCTION
In the dynamic competitive business environment businesses has to invest and focus hard
on their marketing activities in order to have sustainable and competitive positioning in the
market. Marketing is the activity undertaken by the organisations for the promotions of their
products and services and also to gain good positioning of the brand into the target market. The
marketing contains of different activities such advertising, selling, promotions etc. all which
aims to reach the target audience in the most effective manner (Kotler and et. al., 2021). Under
the concept of marketing field there is subject called marketing mix which includes the multiple
areas of the organisation as a focus that combine forms the comprehensive marketing plan.
Earlier, the marketing mix contains four elements i.e. product, price, place and promotion but
later the marketing mix concept was extended and three more elements were added that is
process, people and physical evidence. The present report is based on the “Pret a Manger”
company, the international sandwich shop franchise chain headquartered at London, UK. The
company is commonly known as Pret and was founded in 1983 and is owned by JAB Holding
Company. The report will outline the at least four marketing mix elements in context of Pret UK
operations. The report also reflects its strategic decisions and relevant theories. In the end report
outline the effectiveness of its marketing efforts.
MAIN BODY
Marketing mix
Marketing mix is known as the tool which individually combines various components which
help in making marketing decisions and strategies. Marketing mix is considered one of them and
is an important tool which is been used by Pret a manager which is consist of various tactics
which helps in promoting the product and services in the existing market and help in increasing
the sales. This is a tool which positions the product of the company in right place and with right
price and time, each product is mainly sold by these strategies management (Kotler and et. al.,
2019). The main marketing mix which is used in expanding the business are price, promotion,
product, place, process, people and physical evidence. The 7p’s of marketing is described below.
Product
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A product is known as an organisation commodity which is produced in order to fulfil the
requirement of the customer and industry. It can also be either tangible and non tangible as this
can also be in the form of organisational service. It is required an proper research before
developing or introducing any product into the industry. Pret a manger deals in both product and
services and they always produce a good quality product which an effective and affordable rate
and in various dimensions they are producing there products. This company has always focused
on high quality service and they are also concerned about customer health they use ingredients
which are gluten free and their products are always made and served freshly.
Price
This is considered as the important factor as customer only enjoys the products if comes under
there pricing convenience as only affordable and reasonable pricing they enjoy to pay in any
product and this is always done with an allocated planning as company’s profit and loss is
dependent on the pricing of products (Craig Andrews, Shimp, 2017). As further change in
pricing impacts hugely in the industry and company’s customer base. Pret a manger pricing is
based in the value based pricing and it targets the high class customers and set the pricing
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according to there spending capacity. In there pricing method they always promote to affluent
the customers.
Place
Placing the product at right place is considered as the important part in marketing mix element as
this helps in positioning and distributing it at the right place in the market so that they can
achieve more profit and it can be easily accessible to the potential customers and the buyers. Pret
a manager has located their shops near the stations, business complex and the shopping centres.
There shops are also located in near the competitors’ outlets. This company also provided
delivery services and also serve online order to their customers and also it involve business
customers.
Promotion
This step is known as the marketing process which help in the communication and it also
explores the market and the product and service of the company to the public. This is known as
the expensive step of marketing mix and this helps in grabbing the attention of the potential
customers and make them influence in order to buy their product. The promotion tactics involves
advertising, sales promotion, direct marketing and branding of the company products. Pret a
manager only spends there 1% of turnover in marketing, as they only rely and focus on the
experience of the customers and products which creates an loyalty among the loyal customers of
the customer base.
People
This is known as the human resource which is involved in the company and who delivers all the
services to their clients. This factor is important in the organisation as they are connected to the
company’s profit and this involves the person which is involved in the business operation and
business functions in an organisation and it also involves employees who directly deal with the
customers. There are person and employees who help in increasing the productivity and
profitability rate in an organisation. In Pret a manager staff are considered as the important
people and they mainly focus on the recruitment process and hiring of the employees which
effectively fit in the job role. This company has mainly three values which is team working,
passion and clear talking. In this company employees are treated with full respect and allow them
with reward and recognition to make them feel valued and important.
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Figure 1: Join team Pret, 2022
Process
This involves all the business process which is evolved in the organisation as this mainly
involves and believed in reducing the overall cost of the organisation and to maximise the profit
in an effective manner in order to attain all the aims and objective in the organisation. This step
not only enhances the process system but also motivates the employee to work hard in order to
achieve organisational goal in an effective manner. As Pret a manager has an standardised
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service level all over the stores and this focus on serving better and effective service in order to
attract the customers and this also leads in increasing the customer base of the organisation.
Physical evidence
In an industry or an company physical evidence is known as the service which has been
delivered by the organisation to there potential customers so that they can become a loyal
customer and whenever sandwiches come into the mind of customers they choose Pret a
manager. As in respect with this factor Pret a manager has nice interior which look and feels
good and also attracts the customers effectively as this company always make sure that each
customer has the positive and good experience while visiting to there store. Pret a manager also
helps feedback programmes which ensures the standard and helps in changing strategies and
developing it according to the customer base.
Positioning
Positioning is important in marketing as it is also considered as the marketing strategy and it
always creates an strong and effective competitive position In the industry. As with an better
positioning it also clears the targeted market and helps in making most effective decisions in an
organisation.
Pret a manager positions the market as per there targeted audience as they always sell organic
and fresh products to their customer base and they are switching to healthier line with the
sustainable trends of the industry. AS each customer can choose there product as according to
their preference of flavour and food without any preference by this customer feels satisfied and
value for money. This also helps in increasing the customer base and this also teams up an
potential customer. Positioning is always describing as how the potential customers see the
company products. This company always position their products with the competitive market
and the other existing competitors in the market in an effective manner.
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Figure 2: Pret a Manger campaign, 2019
Strategic decisions
For the strategic decision and planning Pret a manager has used BCG matrix in order to make
effective decisions in order to remain sustainable and earn maximum profit in order to reduce the
overall business operational cost of Pret a manager as this is the popular model which is known
to analyse the strategies effectively as the rate of the growth of product and services in the
industry and the market share is related to the customers. As this matrix is also individual
divided into various dimensions which is described below.
Stars
This company products are promising product and they have high market share and is expanding
vastly in the industry as this basically considers as profitable and can be as future cash cows.
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Sandwiches are known as the start product of the company which always gets profit rate in the
industry and this also increases the goodwill of the company.
Cash cows
When the market growth gets down than the star products become cash cows as they had the
high market share but has the slow growth in the industry and sometimes further require re
investment. As in this it requires a lot of investment or re investment which can be used as the
finance of Pret a manager in order to growth slow market share products.
Question marks
Company products which has quick growing market and they had low market share in the market
as in order to develop the market share further investment is also required as Pret a manager is
famous for there sandwiches and some other products which they are selling like cookies and
coffee has low market share in the industry.
Dogs
These are the company products which has less growth and less market share in the industry as
these products also suffer from high risk and loss and for these products, they has low profit rate
which can not be increased or can get an satisfactory return for that specific products in the
company.
Marketing theories
Maslow’s hierarchy of needs
This is the most important theory which is used in Pret a manager and is known as the
psychological theory and this always fulfil the needs and requirements of the individual in the
organisation and it contains in five steps as first is physiological needs as it involves food, water,
rest and warmth which is consist as the basic human need and is important to be fulfilled. Next
comes is safety needs which involves safety and the security as an employees which is working
in an organisation desire to get security from an company side. As Pret a manager take care of
each employee job security effectively and in an effective form in order to give them motivation.
Next come with love and belongingness needs which is important for each employee in order to
get motivated throughout the company experience. It involves friends and interrelationships in
between team members. Next is esteem needs which is know as the appraisals and reward system
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which motivates the employees to work hard effectively and efficiently as Pret a manager has
recognition and reward system in order to encourage there employees so that they work hard and
can easily achieve their goals. Self actualisation is the top most and final hierarchy of this theory
which involves the own satisfactory needs and requirements in the organisation. This is the
internal motivation and the this Is to fulfil their own needs and requirements in an organisation in
an effective way. Pret a manager also uses this theory as an motivation theory in order to
encourage and motivate there employees to perform better in the organisation.
Communication mix theory
This theory is also used by Pret a manager in order to communicate with the target market
effectively and also help in citing price according to their targeted customers as this
communication mix goes through various stages and used by different form of communication
by the different communicator. The various communicator involves public group, middleman
and consumers. This works as an promotion tactics as it involves advertising of the products
which introduces the product to the potential customer in the market. This also involves direct
marketing which involves various tools which is used in order to connect and communicate with
different targeted market in the industry and these tools are basically used by each organisation.
This also involves sales promotion which are known as the short term incentives which helps in
encouraging the customers to buy and try there products and services and this in always in the
for of reward in an company. This Is also done by public relation which involves various kind of
programs which is designed to enhance and protect the name and fame of the organisation by
there certain goods and services. Personal selling is also the form of communication which is
used by the organisation which sets the main purpose of selling the goods. Pret a manager uses
these communication tactics in order to fulfil there aims and an objective in an effective way
which also helps in increasing the profit and productivity level of the organisation and is
considered to be beneficial.
The effectiveness of its marketing efforts
The Pret a Manger is the leading and international sandwich shop franchise chain based in
UK. The company is also famous for serving hot drinks, breakfast items, sandwiches and wraps,
salads and protein pots, cold drinks, sweet and savoury snacks and fruit and fruit pots etc. The
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company has been positioning itself into the market effectively through the use of its natural
ingredient and by advertising that its sandwiches are made on the day of purchase in a kitchen at
every single store. In terms of positioning the company has been doing explicitly well through its
different positioning factors. Pret a Manger has a huge presence in the food industry and
company spends a good budget on its digital marketing and offline product promotions. In order
to evaluate the marketing efforts of the company the company’s marketing team carefully
evaluate the performance using the different measurement metrics and KPIs (Hopkins and et. al.,
2021). The company’s operations are done through both channels offline and on through its
stores as well. The key operations of the company are listed below:
 Pret coffee subscription that help the customers to enjoy the five barista made drinks each
day at £25 a month and also through this first month order remains free (The Pret Coffee
Subscription, 2022).
 Detail list of the products and services are mentioned on the company’s website.
 There is whole Allergen guide mentioned on the website of the Pret a Manger for the
safety of customers as the company proudly prepare a fresh food in their kitchen
everyday and mention all the ingredients they use and shared equipments.
The company has been using all the metrics of measurements and digital tools of measurement
effectively in its marketing and positioning tactics. The company’s advertisement and website
representation through digital graphics undergo highly effective marketing efforts that support
growth. At the Pret a Manger (ready to eat) believes that developing the performance measures
and cafe KPI are highly essential of any balance scorecard. Examples of such metrics include
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specialized apps that measure daily traffic to websites and use SEO (Search Engine
Optimization) to build higher, more authentic Google search results rankings, which also help in
online marketplaces correct positioning (Chaffey & Ellis-Chadwick, 2019)
. The site of Pret also requires mandatory sign in, and the company can analyze the number
of new visitors and buyers it attracts by looking at the number of new accounts created each day
and the number of online subscriptions of the Pret a Manger coffee.
The Pret a Manger can use the some other KPIs as well to measure and analyze the results
and outcomes of their marketing efforts and return on investment on the budget spend on the
development of effective marketing and advertising campaigns of the company.
Some of the key KPIs and metrucs that Pret a Manger can establish are mentioned below:
 Average number of Pret a Coffee subscriptions per month.
 Average sales per month
 Daily direct door and offline store orders
Figure 3: The Pret Coffee Subscription, 2022
The above KPIs can help track the number of people buying their membership, the number of
their high-end machine sales, and their digital marketing efforts, which will help determine the
effectiveness of promotions and advertising campaign.
CONCLUSION
It is concluded from the above report that for the organisations it is very essential to position
itself effectively into the market. Marketing mix helps to develop suitable marketing strategies
and tactics to strengthen the company's positioning in the market. Thus, the strategic decisions of
the company in context of marketing efforts are highly important in order to gain sustainable
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competitive advantage. Organizations can utilize the different theories and models in order to
support their strategic decisions related to position in the market such as BCG matrix model,
communication theories etc.
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REFERENCES
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The Pret Coffee Subscription, 2022. [online]Available through:< https://www.pret.co.uk/en-
GB/pretcoffeesub>
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