Restaurant App Marketing: STP Analysis & Marketing Mix Case

This case study examines the marketing strategies of a restaurant application providing a city guide to restaurants in Brasilia, Brazil, focusing on STP (Segmentation, Targeting, and Positioning) analysis and the marketing mix (Product, Price, Place, Promotion). The STP analysis details how the ap...Read More

Principles of Marketing

Contents
Contents...........................................................................................................................................2
PART 1............................................................................................................................................1
MCQ............................................................................................................................................1
PART 2............................................................................................................................................3
INTRODUCTION...........................................................................................................................3
STP Analysis...............................................................................................................................3
Marketing Mix.............................................................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

PART 1
MCQ
1.
b. Satisfying customer needs, profitably, in a dynamic environment
2.
d. Identifying, anticipating and satisfying
3.
d. None of the above
4.
d. Achieving more sales with new customers
5.
b. Advertising to consumers encourages them to make a purchase
6.
a. A product that is sold at or below cost in order to sell additional products or services
7.
a. User, Influencer, Buyer, Initiator, Decider
8.
a. We sell hope
9.
d. Product specification
10.
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b. Demographics, topography, habits & advantages
11.
a. Customer perceived value
12.
c. Psychological pricing
13.
b. False
14.
d. Self-actualisation
15.
2. Heterogeneity, intangibility, perishability, inseparability
16.
a. Reference Groups
17.
a. The Silent Salesman
18.
b. Floor and display plans
19.
a. How much your brand is thought about or noticed in a buying situation
20.
a. A promise to the customer about what a product will do
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PART 2
INTRODUCTION
Marketing is the field which is concern to the advertising and promoting the goods and
services of an organisation so that they can capture large market segment at its best (Cannon,
Lohtia and Paulich, 2021). These are the aspects which is related to the higher growth of the
company in the target market. This respective report is based on the case study in which
restaurant application is going to give the city guide in which they are having the major
consideration in the market which is related to the higher growth in the market. They have city
guide to good value restaurants in Brasillia, capital of Brazil. They are having the better
consideration in the target market and they are working with the similar level of satisfaction in
which they are having the full consideration in target market.
STP Analysis
It is the marketing model which help in analysing the product by offering the way in
order to communicate its benefits and value to the particular group (von der Heidt, 2018). STP
Analysis is stand segment, target the customer and positioning in the market. In context to
restaurant app, this model is being used in order to give the high value of the model so that they
can rightly ensures the positioning of the market so that they can ensuring good brand image in
the target market.
Segmentation: It is the aspects in which entire market is being divided the customer into
groups of the people with the sole attributes and needs. This also helps them to meet out the
needs of the people in every group's needs effectively and they can have more benefit over their
competitors. There is various type of segmentation which are given below:
 Demographics: It is the segment in which target audience is being divided by the
personal attribute such as age, marital status, education, occupation and ethnicity. This is
the first step in which an organisation can segregate the customer so that they can rightly
ensures the better working and huge better working.
 Geographic: It is the type of segmentation in which the buyer is being stated as per the
country, region, state, city and neighbourhood. This also helps the company to reaching
their potential customer in an appropriate manner.
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 Behavioural: In this, segmentation is being done on the basis of how people use the
product, how loyal they are or the benefits that they are looking for. It is the type of
aspects which is giving the high power to the people which is leading to have the huge
growth and success.
In context to The Restaurant App, they are going to segment their market on the basis of
geographic as they are having the better consideration in the target market. As per the case study,
they are going to give the city guide of restaurants in Brasilia, the capital of Brazil. This help the
individual visitor to get the best restaurant around the Brasilia.
Targeting: After segmenting the market, it is better to target among the segmented
people which will offer the largest return and will be the most profitable (Laczniak and Murphy,
2019). In context to restaurant application, there are certain factors which have to be considered
by the restaurant application which are given below:
 The profitability of each segment: It is important to analyse that which customer group
contribute most to the bottom line so that restaurant app can generate huge profitability
and resources. This makes more profit to the company if they target their customer by
considering their respective point.
 The size and potential growth: It is vital for the company to have the huge market
growth of each customer group. As it is the main focus of an organization do not shift on
the other segment by reducing the revenue by shifting the major focus to a niche market
which is not large. In context to restaurant app, they must ensure to shift on the market
segment only to have the better consideration in the market by which they can rightly
ensure the better working as well.
 How well the company can service this particular market: It is the major
consideration which is related to the overall success of the company. In this aspects, an
organisation must understand the external environment of the business so that they can
rightly sustain in the market for long period of time. Additionally understand the
opportunities and threat for same which may affect the each segment.
In context to restaurant application, they are basically targeting the foody people who are
residential in the capital of Brazil i.e., Brasillia. This help them to generate more revenue and
profitability and revenue so that they can sustain in the market for long period of time. As the
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geographical location is being chosen by the restaurant application in order to segment their
customer so that they can rightly ensure higher profitability and revenue in the target market.
Positioning: It is the process of creating the unique mental position or image of the
products and services in the mind of the people in comparison to the other brand (Duralia, 2018).
For this, marketing mix is being conducted which are explained as follows:
Marketing Mix
The framework is set of actions as well as tactics which an organisation opts for promotion
of products, services or brand in market. In context to the Restaurant App, purpose of marketing
mix is to find right combination of elements in order to gain together with maintain benefits over
competitors. Mentioned below are elements of marketing mix in context to the Restaurant App:
Product: The Restaurant App includes an individual window as well as wide range of
food parlours along with restaurant under its umbrella. It provides its users with search
information about wide number of restaurants addition to reviews which enable target audience
for devise an informed decision for choice of restaurant (Wang and Et. Al., 2019). The app offers
menu images to customers, particularly about restaurants which are running or not without own
websites. It also includes facilities, such as Restaurant Search and Discovery, Table Reservations
and Management, Online Ordering Services and so on. With The Restaurant App, a customer is
able to make choices from visual menus of ample number of restaurants in neighbourhood along
with order online. It provides people with options to collect information about restaurants with
city guide so to book tables using desktop websites and mobile apps.
With application of Kotlers Five Product Level Model, the restaurant app recognises
levels of needs of customers. The purpose of applying the model is to view the product as more
than sum of its features, rather as everything that are involved with experience which customers
have with the offerings. The first product level for The Restaurant App is core benefit that
includes fundamental want which target audiences satisfy through making usage of it. For
instance, need to process digital images about restaurants across Brasilia. The another product
level is generic product that is version of product that contains characteristics or attributes
essential for functioning. In aspect to The Restaurant App, the requirement of the app to help
people in searching number of restaurants around the city. Expected product is another product
level entailing set of attributes which consumers normally expect along with agree for making
purchase decisions (Horta and Et. Al., 2021) . In augmented product level, benefits and related
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services are included which serve to differentiate the product against rivals. The last is potential
product that entails augmentations along with transformations that a product might undergo in
upcoming era. The Restaurant App must surprise as well as delight customers in future through
continuing augmented facilities.
Price: It is the value that an individual pay for exchange of product or service that is
offered by an establishment. Effective price for the product dictates survival and profit of the
company. In association to The Restaurant App, penetration pricing strategy is effective as it
gives the edge to establishment because ample number of customers are attracted as per price,
value for money along with switch brands for adoption of offering low pricing. . At initiation
level, the app charge around R$ 50 to R$ 500 that depends on area to area services to customers
about restaurants. It applies charges in accordance to total distance among pickup along with
drop point between restaurants and customers. With penetration pricing theory, The Restaurant
App attract customers to various restaurants through offering lower prices at initial offerings. It
is an aggressive action for expanding share of total sales in market. It results in increasing sales
volume for various restaurants that allows the company of The Restaurant App to provide city
guide facilities for generating high percentage of profits. The app is flexible to offer guidance
about restaurants across the city which permits its customers a policy of no minimum order. It
increases customer bases to wider deals.
The Restaurant App also make use of psychological pricing theory for influencing
spending or shopping habits of customers for making higher value sales. The goals of using the
theory is to meet the psychological needs of customers for getting good deals or information
about restaurants around the city of Brasilia. The theory is highly effective for The Restaurant
App as it enhances sales. With usage of range of actions and sticking to one which provides
consistent results, the app maximises profits for services of guidance about various restaurants. It
also emphasises on attention of buyers on particular products, services and ranges which makes
the offerings more appealing to target audiences contributing to more sales volume.
Place: The Restaurant App is presently available for usage in Brasilia, capital of Brazil. It
is an app that offers guidance facilities about good value restaurants having existence at Brasilia
to take order for food from listed restaurant on the portal. It has established a strong addition to
widespread distribution network in order to offer prompts together with best outcomes (Noone
and Cachia, 2020). Moreover, it has exclusive fleet of manpower which comprises services of
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huge number of delivery workforce working on field. From selected restaurant at Brasilia, staff
members are involved in picking order along with delivering it to customers. For The Restaurant
App, recognised collection pint and drop off as part of place offer is Brasilia, capital of Brazil. It
provides ways to restaurants to get orders from the location and permit pickup along with drops
to send or receive food packages from anywhere across city of Brasilia. There are projections
that the app might receive flooded traffic of nearby 50 million visits each month. The service of
guide about restaurants across the city are available in various languages including English,
Spanish and so on.
Promotion: The Restaurant App realised significance of good marketing tactics as well as
adopted certain plans for building further brand awareness. In this aspect, it relies more on mouth
publicity as well as satisfied customers is its appropriate promotional tool because they
recommend the app to family, friends and others. Moreover, The Restaurant App also uses
online marketing strategy and taken assistance of social media platforms, for example, Facebook,
Instagram and so on as to create engaging content that attracts more audiences. For the app,
social media promotion is effective way for reaching target audience because it gives the
company a chance for following activities of consumers and potential buyers. It assists the
marketing team of the app to gain insights about target audiences, their interests and preferences
in order to create better strategies of marketing for attracting them.
Process: Within The Restaurant App, key part lies in fact that each and every target
audience must get appropriate information about good value restaurant that differentiate it from
other rivals. In The Restaurant App, an individual is required to sign in with registered mobile
number as well as email address. Further, the app detects location and provide relevant guidance
about restaurants wherein one browse the menu together with place order. Moreover, payment
process is made through cash and some online modes (Gurney and Loewenstein, 2020). The
whole process is made convenient for target audiences along with provide hassle free
experiences to people.
People: For offering products and services, majority of businesses rely on people. For
The Restaurant App, people are workforce that constitutes people segment. The app constitutes
strong team of people that work for offering best guidance about good value restaurants in
capital of Brazil that is Brasilia. The app has adopted leaner operations system in which market
demand is relatively less. It results on optimum utilisation of human resources for the
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application. Moreover, people involved in the application are keen for suggesting best
consultancy approaches to restaurants, methods of employee retention as well as maximise their
potentiality.
Physical evidence: The Restaurant App offers services of its own. It has no specified
physical presence except for guidance and delivery system which consists of providing guidance
about restaurants around the city and delivery people delivering food placed through an order
from the app. Customers make use of physical aspect of company in order to judge qualities of
services that are provided by the app (Hsu and Lin, 2020). The Restaurant App gives its
customers a brochure or receipt in form of PDFs that permits in associating experience with
physical symbol.
CONCLUSION
From the above report, it is being concluded that the Marketing is the important field which
ensuring the overall flow of goods by promoting and advertising in the target market. As per the
case study, a restaurant app is going to give the city guide in which they are segmenting the
geographic locations which is leading to have the huge growth in the market as they are
expanding their business in Brasilia which is having the major consideration in the target market.
Moreover, marketing-mix is being operated for gaining insights about product, price, place,
promotion, physical evidence and people can offer to target audience.
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REFERENCES
Books and Journals:
Cannon, J. P., Lohtia, R. and Paulich, B. J., 2021. Blended Learning in Principles of Marketing:
The Effects of Student Differences on Student Performance. Journal of Marketing
Education, p.02734753211058357.
Duralia, O., 2018. Integrated Marketing Communication and Its Impact on Consumer
Behavior. Studies in Business & Economics. 13(2).
Gurney, N. and Loewenstein, G., 2020. Filling in the blanks: What restaurant patrons assume
about missing sanitation inspection grades. Journal of Public Policy &
Marketing. 39(3). pp.266-283.
Horta, P. M. and Et. Al., 2021. Digital food environment of a Brazilian metropolis: food
availability and marketing strategies used by delivery apps. Public Health Nutrition.
24(3). pp.544-548.
Hsu, C. L. and Lin, J. C. C., 2020. Understanding continuance intention to use online to offline
(O2O) apps. Electronic Markets. 30(4). pp.883-897.
Laczniak, G. R. and Murphy, P. E., 2019. The role of normative marketing ethics. Journal of
Business Research. 95. pp.401-407.
Noone, B. M. and Cachia, G., 2020. Menu engineering re-engineered: Accounting for menu item
substitutes in pricing and menu placement decisions. International journal of hospitality
management. 87. p.102504.
von der Heidt, T., 2018. A scholarship approach to embedding creativity and sustainability in
Marketing Principles curriculum. Australasian Marketing Journal (AMJ), 26(2), pp.99-
115.
Wang, Y. S. and Et. Al., 2019. Developing and validating a mobile catering app success
model. International Journal of Hospitality Management. 77. pp.19-30.\
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