Marketing Plan: External Factors and Competitive Advantage for 7Spices

This report provides a comprehensive marketing plan for 7Spices restaurant, a new business venture specializing in meals. The report begins with an introduction outlining the objectives of the marketing plan, including market research and cost analysis. It then provides an overview of 7Spices...Read More

Fundamental of marketing
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Table of Contents
INTRODUCTION...........................................................................................................................3
Overview of 7spices ....................................................................................................................3
External factor effecting business ...............................................................................................4
Competitive advantages and porters generic method .................................................................5
Proposed target market................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8
Books and journals.......................................................................................................................8
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INTRODUCTION
Marketing plan is that type business plan which deals with lunching of new business in market
and aid the business to research about the market for easy establishment of business and future
profit and growth. This report will consider 7spices restaurant as a new business unit which
wants to cover the market for its business. For this analysis, different external factor will be
analysed which can impact business and its profitably(Wood and Jobber, 2016). a good
marketing plan will also be maid for 7 spices which will help it in identifying costs and market
research . competitive advantages in this market will also analyse which can help business in
identifying target customer with long survival.
Overview of 7spices
7 spices is the restaurant with speciality in meals. The main motive of restaurant is to
serve delicious food to its customer and aid them with joy of ultimate spices in there meal.
Restaurant has maintained its key focus on providing good quality food that can fit in budget of
people. It has also implements and innovative idea of providing home delivery services of food
to its customer. It have also designed new and classy interior which attract customers. The chefs
of this restaurant are also well trained have full certified work experience who makes delicious
and price worthy food for their customer. Restaurant has also fulfilled its responsibility towards
natural environment by using no plastic at their work place or in home delivery of food.
Mission: 7 spices have a mission “to make the sense of spices in the mind of people that
they can see the spices and can feel there smell in their life which can change their life towards
healthy lifestyle
Aim: 7spices have main aim of providing good quality service to its consumer that they
can enjoy the every moment of the meal with regular satisfaction to their wants.
Objectives: 7spices have two major objectives which are stated below:
 To take their business at the level of 20% market share in the market they are currently
operating.
 To increase there brand value within a year. With maximising their profit in long run.
These all are the objectives and mission of the 7spices which it Want to fulfil by its opening.
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External factor effecting business
There are various factors which have there direct impact on business there factors are
classified with the help of PESTEL analysis. This is a framework which is meant for analyse
of different factors which have their impact on business and its operations. It includes study
of political, economic, social, technology, environmental and legal factors. All of these
factors are discussed below:
Political factors: these are those factors which have impact on business of firm because
of political decision of government of nation in which origination is working. 7spices is want to
work in UK where there is a political uncertainty of Brexit . This can be major impact on 7spices
because it will change several rules and regulation which can impact negatively on restaurant so
it has to be more planed for there uncertainties. This have some positive impact on business of
7spices as it will also generate new opportunities for growth and development of business and
global expansion as well as cost cutting(Perreault, 2018. ).
Economical factors: In these factors the influence economic activities are taken into
consideration. These are exchange rates, employment rates, per capita income. Inflation rate.
This all things are included in these factors. 7spices is the restaurant which is dealing in food
products which have direct relation with per capita rate and GDP growth Rate this all factors are
taken into consideration and have positive impact on restaurant. As all these think will help in
incising number of customer of food as per capita income of UK people is high.
Social : social factors are those which includes factors like taste, preference, habits ,
thinking , culture and etc. Which is running in external environment of business which business
has no control? These factors have both positive as well as negative impact on business of
7spices(Vidal, 2016.). it have positive impact a have s UK taste and culture is purely suitable for
business that some unique and innovative concept it her working so it will attract more and more
customers towards restaurant. This factor have also a negative impact on business of 7spices as
there is wider cultural difference in UK where there is people of different ideology which can
cause change in thinking ability of people towards business and will impact as negatively on
business of 7 spices.
Technological: These are those factors which are directly related to the technology of
business environment in which firm is working. it have direct impact on 7spices this is because
restaurant is dealing in food products and machine for making these are in regular change which
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can cause huge capital investment of an also act as an barrier for restaurant because of un
availability of funds for regular updating. For saving interest of 7spices , restaurant have to
choose that types on machinery which have no major requirement of updating and have low
capital investment when get updated.
Environment: For every business it is mediatory to fulfil the requirement of natural
environment where it is operating. This is consist of number of factors which are atmosphere,
climate, global warming, temperature, seasonal fluctuation, etc. All of these are the part of this
factor and 7spices have to clearly examine those factors as they have different impact on
business of this restaurant. Positive impact of environment factor is seasonal fluctuations helps in
promoting seasonal dishes of restaurant which also increases its profitability. But there is also
some negative impact of these factors like global warming is increasing temperature of whole
globe which decreases the time period of main season of food which is winter. (Partal, 2017)
Legal: It include those factors which are associated with legal formalities of laws of
different nations these. There are various legal requiring like equity law, cementation law,
hygienic factors in food industry, etc. Are the laws which are formed to save the interest of
different parts which are related to firm in business world. 7spices have also impact of their laws
as it have to follow these requirement they act positively be increasing customer trust on
origination but have also negative impact as increase cost of production because of following
rules and regulations.
In this analysis of external factors this can be said that if 7spices will examine these
resources closely there will be effective results in restaurant by increased profit and huge growth
opportunities.
Competitive advantages and porters generic method
Competitive advantage is that situation in business when firm is superior then its
competition or it can be said that firm will decide where will be the consumer of firm move.
When origination uses the model of porters generic strategies it can get competitive
advantage in business. In context of 7spices restaurant this model can aid in providing great
advantage in gaining competitive advantage and work beyond the reach of other
competitors. The explanation of these strategies is mentioned below:
Porter’s generic strategies
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This is the method which is used to gain competitive advantage by a firm in its targets
market this can be achieve through some small steps these are differentiate, cost control and
focus. These steps must be followed by firm to gaining competitive advantage(Langston and
Loreto, 2017).
Differentiation: it is the method of making product unique than other competitors which
has unique identity. This will make firms product unique and will increase customer as there is
no substitute of their product. In context of 7spices restaurant this function can be used as they
have different kind of dishes which can help them in gaining competitive advantage in long run.
Third can also aid them in deciding their product price according to their needs of profit margin.
Cost control: cost control is the part of this method in which firm adopts policy of
gaining competitive advantage with the help of controlling its production cost. With regards of
7spices this strategy is used when there is large number of committers in marker then firm can
control its cost for selling its food at minimum rates. 7 spices is new entrant in market so firm
can easily attract customer by opting this strategy or cost control because it facilitate company in
lowering food price which automatically attract large numbers of customers towards their food.
(de Vicuña Ancín, 2016)
Focus: Focus means the company's leaders understand and service their target market
better than anyone else. Their either use cost leadership or differentiation to do that. The key to a
successful focus strategy is to choose a very specific target market. Often it's a tiny niche that
larger companies don't serve. In context of 7spices this strategy can be used if it has to maintain
itself at market equilibrium where there is no loss and gain of competitive advantages to
business. Firm can run its process smoothly without any problem in working or incurring any
loss.
A firm's ability to produce a good or service more efficiently than its competitors, which
leads to greater profit margins, creates a comparative advantage. Rational consumers will choose
the cheaper of any two perfect substitutes offered. So it is turn of firm to decide what they have
to choose in there working environment.
Proposed target market
Target marketing is that business strategy which is adopted by the firm to target that type
of consumer whom it have designed its product to sell and this will also includes number of
operation it is doing to divide that market in small segments where it want to sell its product.
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 Segmentation: It is the procedure of separating market according to requirement of firm
and their ability by corresponding quality of their produce. This segmentation is done by
separating bazaar in little fraction. 7spices have to the same for targeting its customer
there will be need of dividing the market in appropriate method by which allocation of
resources can be done. For this dividing or segmenting firm have to identify different
approaches. (Ramón and López, 2016)
 Targeting: It is that occupation of marketing where customers of segmented market are
targeted. Targeting means identifying the needs and requirements of their possible clients
which can help firm in gain competitive advantage in there long run. It will also facilitate
them to get easy excess to market as 7spices knows the behaviour of customers with the
help of targeting. Where it targets the customer which are necessary for its products.
 Positioning: It is the last step in this marketing framework where 7spices do positioning
of their product in targeted market which they have segmented and targeted in previous
step. It is the important step in this process just because firm here place its product In the
divide market for the ultimate consumer who have to use these product ,and for this
7spices have spend huge cost on advertisement and other promotional things for pacing
there product in market.
After analysing this step it can be said that company have to make large number of efforts
to promoter there product in this competitive environment but in can be possible with the help of
good monitoring and control over operations of business.
CONCLUSION
From the above mentioned research it can be concluded that there are various opportunities
for a business for establishment and growth. But it has to make effective marketing plan and
have to make clear analysis of different factors which can impact on its profitability. Newly
established business must have knowledge of what are the factors or resources which can help it
in gaining advantage and defeating its competitor in business environment. Company can also
use the concept on target marketing where it can use its resources to identify the behaviour of
customer and react according to it which will facilitate them in higher productivity and rising
profits.
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REFERENCES
Books and journals
Wood, M.B. and Jobber, L., 2016. The marketing plan handbook. Pearson.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Perreault, W.D., 2018. Essentials of marketing. New York: Mc Graw Hill.
Langston, R. and Loreto, D., 2017. Seamless integration of predictive analytics and CRM within
an undergraduate admissions recruitment and marketing plan. Strategic Enrollment
Management Quarterly, 4(4), pp.161-172.
Vidal, P., 2016. Metodología para la elaboración de un plan de marketing online. 3c Empresa:
investigación y pensamiento crítico, 5(2), pp.57-72.
Partal, S., 2017. UF1820-Marketing y plan de negocio de la microempresa. Editorial Elearning,
SL.
de Vicuña Ancín, J.M.S., 2016. El plan de marketing en la PYME. Esic Editorial.
Ramón, A.E. and López, C.S., 2016. Comunicación integrada de marketing. ESIC Editorial.
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