Coursework 2: Strategic Marketing Report for Chiquito Restaurant

This report provides a comprehensive strategic marketing analysis for Chiquito Restaurant, focusing on its expansion into the Parisian market. The report begins by examining the standardization or adaptation of the marketing mix elements, including product diversification with a vegetarian taco, price skimming, and adapting processes and physical evidence. It then applies the Customer Based Brand Equity Model, discussing brand salience, meaning, response, and resonance to build a strong brand presence. Furthermore, the report explores the application of Integrated Marketing Communications (IMC), highlighting advertising, personal selling, and digital marketing strategies. Finally, it critically assesses methods for measuring marketing success, such as Return on Investment, market share, and customer acquisition, to evaluate the effectiveness of Chiquito's marketing efforts and potential for future improvements.

STRATEGIC
MARKETING

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Standardisation or Adaptation of Marketing Mix Elements...................................................1
TASK 2............................................................................................................................................3
Application of Customer Based Brand Equity Model............................................................3
TASK 3............................................................................................................................................5
Application of Integrated Marketing Communications..........................................................5
TASK 4............................................................................................................................................6
Critical Assessment of Measuring Marketing Success..........................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Strategic Marketing refers to essential as well as effective communication of a firm’s
offerings with its customers as well as potential customers within the market, in a way which
leads to giving the firm a competitive edge within the marketplace (West, D.C., Ford, J. and
Ibrahim, E., 2015)
. The report below is a continuation of Coursework 1 and is based on Chiquito Restaurant,
which is one of the leading Mexican restaurants within the UK. It covers a detailed overview of
standardisation or adaptation of marketing mix elements within the new market. Moreover, the
report also showcases application of Customer Based Brand Equity Model as well as application
of the concept of Integrated Marketing Communication (IMC). It also undertakes critical
assessment of how the restaurant could measure its marketing success in the market and its
future improvement.
TASK 1
Standardisation or Adaptation of Marketing Mix Elements
In order to succeed within the new market, it is highly essential for Chiquito Restaurant to
standardise or adapt the elements of marketing mix in order to gain an effective advantage within
the market, as well as ensure long term sustainability within the same. While standardisation is a
process adopted by a company to produce and offer its products by keeping each strategy same,
adoption is the procedure of introduction of modification in strategies which suit the target
market. Following are the marketing mix and strategies which Chiquito Restaurant would be
following within the Parisian market:
Product: Seeing the Parisian market and the rising obesity problem within the country, the firm
would be adopting Diversification as a strategy (Chernev, A., 2018). Its new product, which is
Vegetarian Taco, would be different than the traditional taco with a variety of sauces to choose
from. Thus, the firm would be choosing adaptation for its new offering.
 Price: The pricing strategy of Chiquito Restaurant within the UK is competitive. It has a
long traditional association with the country and within all its stores; the prices are set as
per the competition in that area. However, with its new Taco, the firm would be adopting
price skimming strategy. This means that the company would be offering its Vegetarian
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Taco at an affordable pricing in Parisian market. Thus,, the firm would be opting for
adaptation in its pricing.
 Place: Chiquito Restaurant wishes to keep itself traditional in presentation due to its
decades-long presence. Thus, the firm would be opening its restaurants within Paris in
order to keep its tradition intact. Thus, standardisation would be strategy which the firm
is willing to adopt within the new market.
Promotion: As for its promotion, the firm would be continuing to promote its brand name within
the Parisian market. Thus, the firm is continuing its approach of promoting itself using its brand
image as well as with communicating specifications of the new product. Thus, for promotion, the
organisation is choosing standardisation (McDONALD, M.A.L.C.O.L.M., 2016).
 People: With new market, comes new challenges and new ways through which
customers are attracted and served as per their expectation. In order to do so, the firm
would be hiring local employees who would be skilfully handling the operations of the
firm as per the demand of market. As for customers, the organisation would be modifying
its operations as per the market and hence, it would be using adaptation as its strategy.
 Process: Chiquito Restaurant wishes to establish effectively within the Parisian Market
and in order to do so, the firm is planning to reform its processes in ways through which
could accomplish its objectives of expanding its market into Paris and sell its new
vegetarian taco effectively. Thus, Chiquito Restaurant would be adapting its processes as
per the Parisian market.
 Physical Evidence: A major change would be brought by the organisation in its new
Mexican offering within Paris. As for Physical evidence, the company is completely
changing the packaging of its Vegetarian Taco by using paper with its logo instead of foil
to serve it. Moreover, it would be introducing variety of sauces for people to choose from
which would help the firm in satisfying the customers effectively. Thus, the firm is
willing to use adaptation in its physical evidence (Štefko, R., Kiráľová, A. and Mudrík,
M., 2015).
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TASK 2
Application of Customer Based Brand Equity Model
It is utmost necessary that there a firm builds and maintains a strong brand equity within
markets it plans to establish itself in. However, one must undertake several aspects into
consideration in order to accomplish the same.
In context with Chiquito Restaurant, Customer Based Brand Equity Model is discussed
below which would allow the organisation to build and manage a strong brand in Paris: Salience:
The first step of every brand is to effectively create “brand salience” or in other words, to
develop an awareness in the market. This is necessary in case a brand wishes to distinguish itself
from other organisations. Chiquito Restaurant would be dealing in Parisian Market which is
already has numerous Mexican restaurants. Awareness would allow the firm to create an
effective image within the marketplace. The restaurant is a popular name within the UK. Thus, a
decent salience is held by the company within Paris. However, in order to build it more
effectively, the firm is required to communicate its Unique Selling Product to the customers,
which is Vegetarian Taco. Furthermore, the company must also indulge in market research in
order to understand customer perspective and act upon it (Hollebeek, L.D., Conduit, J. and
Brodie, R.J., 2016)
.
 Meaning:
Within this stage, the agenda of the firm must be to communicate the meaning behind the
brand and its heritage to the people of Paris. A company reaches this stage after it makes
customer aware about themselves. This stage is usually attained in order to build up curiosity
within the market. There are two parts of this stage:
 Performance: One of the most effective way through which brand
meaning is communicated to customer is by building up on performance
of the business. For this, it is crucial that the business ensure top quality
service of its vegetarian taco, which is healthy and addresses the problems
of overweight within the city.
 Imagery: Another aspect of meaning is the imagery which the organisation
builds in the eyes of the customers. As an example, the organisation must
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use word of mouth as well as target marketing as methods to ensure that
customers perceive the brand the way it is planning to be showcased. Response:
Within this stage, the firm aims at gaining knowledge about the judgements and feelings of
customers about the brand. This stage comes after the customer buys the offerings by the
company, which in this case is the Vegetarian Taco.
 Judgement: There are certain aspects on which a customer builds
judgements about the firm, for instance, quality, credibility, consideration
and superiority. It is thus, necessary for Chiquito Restaurant to act in ways
which builds positive judgements in the minds of customers.
 Feelings: The kind of judgement which is developed within the customers
by the firm’s product would develop certain feelings among the buyers
about the company. For instance, in case the Vegetarian Taco meets the
standards, it would develop positive feelings within the customers and it
would make them advocate of the firm. There are several feelings which
are induced within customers, like warmth, fun, self respect, excitement,
etc.
 Resonance: There are very few companies which could lead up to this
moment. This level is reached when there is a very strong psychological
and social connection establish within the brand and customers. The goal
of Chiquito Restaurant at this stage must be to strengthen all the categories
within this step, which are achieving behavioural loyalty, sense of
community, attitudinal attachment as well as active engagement
(McDonald, M., 2015). To ensure the same, the firm could work upon
encouraging loyalty through gifts and vouchers, reward loyal customers
and adapt strategies like discounted pricing to sustain within the market.
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TASK 3
Application of Integrated Marketing Communications
Integrated Marketing Communication refers to effective linkage of all the forms of
communications as well as messages to ensure a synchronised and harmonised promotion of the
new product. It is highly important for Chiquito Restaurant to ensure a proper application of IMC
within launch of their Vegetarian Taco within Parisian Markets. This is because it holds effective
importance within establishment of itself within the new market. Some of these factors are
discussed below:
 It would help the firm in better communication of information about its product within
the market.
 It would develop an endless and consistent communication channel within and outside
the organisation that would lead to better professionalism and appropriate product
development as per customer requirements and demands.
There are several marketing communication methods which could be used by Chiquito
Restaurant in relation to reach their targeted customers (Miles, M., and et. al., 2015)
. Some of these methods are discussed briefly below:
 Advertising: One of the most prominent methods which the restaurant could choose is
advertising. It refers to a paid from of presentation of products, services, ideas, etc. There
are several advertisement media which could be used by the firm such as newspaper,
radio, television, etc. this would allow the firm to specifically reach their target audience
and is a prominent method to develop their interest towards the offerings of the
restaurant.
 Personal Selling: Another effective method which could be used by the restaurant to
reach its target audience is through personal selling. This method provides an opportunity
to the company to interact personally with their target audience and build effective
relationships with them.
 Digital Marketing: With advancements in technologies and cultural integration through
web portals like Facebook and Twitter, Chiquito Restaurant could use digital marketing
as their method to reach to target audience. From forming its own website to social media
marketing, the firm could attract ample customers who could be its loyal long-term
buyers. Moreover, this would also help the company in developing a positive image in
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the market about being technologically advanced and follower of market trends, which
would further assist the company in communicating its offerings with its target
customers.
TASK 4
Critical Assessment of Measuring Marketing Success
After adopting strategies and effectively implementing the same, Chiquito Restaurant must
also monitor the performance of the company with respect to marketing. It is important as this
would further widen the pathway for the firm to improve itself within the marketplace.
There are several ways through which Chiquito Restaurant could measure and monitor its
success. These methods are analysed below:
 Return on Investment: One method through which the firm could denote and measure its
success is through Return on investment. It refers to measurement of gain or loss on an
investment made by the firm. This would allow Chiquito Restaurant to effectively
measure that whether the marketing of their new offering, i.e., Vegetarian Taco is
successful or not. It is measured by the returns gained by the company on the product
after a specific period of time, say, 2 years.
 Market Share: Another effective method of measuring success is the market share of the
company in the Parisian Market. This means how far the firm has captured the whole
market within the Paris. This could be measured by the branches firm opens in the
country, its customers down the line as well as its profitability ratio (Hunt, S.D., 2015).
 Number of Targeted Customers: It is a quite important method for Chiquito Restaurant
to determine success of its marketing. In a very simple context, it is the number of
customers that associate themselves with the company and its offerings. If the targeted
customers are more than the standard expectation of the company, this means that their
marketing has succeeded quite effectively or else, there might be severe modifications
which are required to be done by the firm.
In order to improve in the future, the organisation must keep up their marketing research
constant as well as enhance awareness of their product and improve their quality of service. This
would allow the firm to have more customers and better outcomes of their marketing efforts.
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CONCLUSION
Thus, it is concluded by the report above, that strategic marketing is very important within
an organisation in order to launch a new offering within a new market. It is effective to analyse
that whether elements of marketing mix are adapted or standardised in the new location as it
would help the company in building up appropriate strategies as per the market. Moreover, in
order to develop an effective brand image in the market, a firm must implement CBBE model in
theri business context. Integrated Marketing Communications too is important for a company to
follow. Lastly, it is crucial and necessary for a firm to carve out methods through which it would
measure the success of its new offering within the market.
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REFERENCES
Books and Journals
Chernev, A., 2018. Strategic marketing management. Cerebellum Press.
Hollebeek, L.D., Conduit, J. and Brodie, R.J., 2016. Strategic drivers, anticipated and
unanticipated outcomes of customer engagement.
Hunt, S.D., 2015. The theoretical foundations of strategic marketing and marketing strategy:
foundational premises, RA theory, three fundamental strategies, and societal
welfare. AMS review. 5(3-4). pp.61-77.
McDonald, M., 2015. Marketing accountability. Wiley Encyclopedia of Management, pp.1-8.
McDONALD, M.A.L.C.O.L.M., 2016. Strategic marketing planning: theory and practice. In The
marketing book (pp. 108-142). Routledge.
Miles, M., and et. al., 2015. Exploring entrepreneurial marketing. Journal of Strategic
Marketing. 23(2). pp.94-111.
Štefko, R., Kiráľová, A. and Mudrík, M., 2015. Strategic marketing communication in
pilgrimage tourism. Procedia-Social and Behavioral Sciences. 175. pp.423-430.
West, D.C., Ford, J. and Ibrahim, E., 2015. Strategic marketing: creating competitive advantage.
Oxford University Press, USA.
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