Comprehensive Marketing Consultancy Report for Wagamama's Expansion

This report provides a comprehensive marketing consultancy analysis of Wagamama, a fast-food company specializing in Japanese cuisine. It examines Wagamama's business challenges, including revenue collection, workforce management, and inventory issues. The report conducts a situational analysis, utilizing PESTEL and Porter's Five Forces models to evaluate the macro and micro environments. It also includes an analysis using the SPICC model. The internal environment is assessed through the McKinsey 7-S framework. The report highlights the importance of understanding market dynamics, competitive landscapes, and customer needs for effective business strategy and expansion. The analysis provides recommendations for addressing identified problems and improving overall business performance.

MARKETING
CONSULTANCY

Table of Contents
INTRODUCTION...........................................................................................................................1
INTRODUCTION TO COMPANY ...............................................................................................1
Outline of company ...................................................................................................................1
Current positions in market - ......................................................................................................1
Problems of organisation- ..........................................................................................................2
Situational analysis of business...................................................................................................2
Macro environment- ..................................................................................................................3
Micro environment .....................................................................................................................5
Internal environment .................................................................................................................6
CONCLUSION .............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Wagamama is a fast food company placed in London, they concentrate on Japanese
food items and use herb like burger, sausages and are using best quality of food items in their
business. Initially at the time of start up they have analysed market very well which including
competitors, customers and production and gained huge profit in their business activity. They
have planned to increase business in other destinations like Burgare market ,de la Croix-Rousse
etc. and have performed successfully initially after some time they have faced issues in
collecting revenues in new ventures, maintaining workforce management and inventory and
transportation and promotional strategy (Zhao, 2011). These are some of the main issues for
downfall of business in competitive market. As a market consultant of it is very important to
analyse different business issues in macro and micro environment and their effect on company
business. These issues are very severe and if they are not sorted out quickly it can lead to
downfall of the organisation.
INTRODUCTION TO COMPANY
Outline of company
Wagamama was founded in 1992 by Aana You. It was having an international chain of
restaurant and having their restaurant base in more 140 places in all round the world. It has
established its base in Bloomsbury London. The food industry has increased their base in more
than 120+ locations in all over UK (Li, 2011) . It is a famous brand which follows values and
ethics in their business policies. Company have effective planning and strategies in business
environment. In very small time they have captured market of UK with their unique food
products. They were named as “naughty child” by other restaurant because restaurant has
captured whole market chain with their new and healthy food products. The company is known
for providing fresh food at relatively cheaper rate.
Current positions in market -
They always tried to capture market with innovative food products. They initially have
unique marketing strategy to capture different genre and class of people but after some time they
have majorly concentrated targeting high profile posh area so to increase their revenue
base(Zhao, 2011). In current scenario they have different programmes and planning to increase
1

their restaurant base near schools and sporting ground to increase their productivity in business
place(Holahan, 2012).
Problems of organisation-
In current market place company is facing different problems in market-
Collection of revenue - Since company is at more than 120 location in all over UK. It is
difficult for them to collect revenue form different ventures which result in downfall of
company in their business
Maintaining workforce – Owner of company is in Japan so he will find it difficult to
maintain different workforces form there. With increase in business top level managers are
finding it difficult to manage workforces and control every factors and aspect in their business
activity.
Inventory management – Wagamama mainly concentrate on organic food, even their fast
food contains herbs and lots of vegetables but some of them are not available in UK hence they
find it difficult to manage inventory in all 120 locations (Holahan, 2012).
These are some important factors which has decreased revenues and increase loss in their
business.
Situational analysis of business
Wagamama is a fast food restaurant dealing different Japanese food , It is a sole
proprietorship business hence the owner ins only responsible for all profits, risks and revenue in
market structure. The company has started their business in Bloomsbury London and increased
their ventures to other geographical destination. Main objective of company is to increase and
expand their business in posh geographical area. The business was running successfully but after
some time they have faced problems maintaining their business activity because owner has not
analysed marker in new destinations and are unable to fulfil demands of customers. As a
marketing consultant before suggesting right approach and scenario. It is essential to monitor and
calculate all internal and external factor of business activity which can be rectified to increase
their value and profit in different markets.
For analysing different elements and factors used in market organisation must understand
different tools and techniques for better analysis of data in both micro and macro environment
2

Macro environment-
The best tool to increase the macro environment of company is PESTEL analysis that
gives detailed analysis of external factor of organisation
These factors are as follows:
PESTLE
Political Factors: Several opportunities and forces are conducted by the government. A
company needs to fulfil the terms and conditions that are described, trading policies to import
and export. Company also need to raise the funding through government, that may be granted by
the political institutions
The other political aspects which can influence the business like internal policies of the
country, local commissions, corruption and bureaucracy (Zhao, 2011) .
Economic Factors: Economy factor is another crucial aspect. Thus, it considers inflation
rate, interest rate, taxation, growth of an industry, economical competition, import and export
duties, foreign trade. These all factors has a big aftermath, that brings foremost grounds of a
business. The incline interest rates may not give a rise as expected. Additional taxes also need to
pay higher costs, inflation rate may cause to decline supply.
Social Factors: It includes the facets that reflects to a society, culture, beliefs, attitude,
lifestyle that brings a food product in demand.
For example, if people who are dwelling in a certain demographical needed some fresh
juice which they found better for their health according to the season, that particular product
demand will rise (Angel, 2011).
It also depends on their culture and belief as per their community which they belong to.
The consumers are also influenced by the other people, so they demand for that things. They can
be affected advertisement, marketing, media, brands, and events which plays an important role
attract the customers. These will increase the number of buyers (Kunz, 2012).
Technological Factors : Technology has various extends it relates to innovations,
barriers, incentives. It aid to emerging techniques, which leads to new innovations. Maturity of
technology refers to from how long time a business follows the technique successfully with
certain timely changes.
Technology also has some laws to be followed. Research and innovations is core part of
technology which needs continue adaptation to explore ahead.
3

It has the fastest way to communications and exchange the information which is the need
of present time, a huge success of a business lies on it.
Legal Factors: Legal factor comprises law, regulations and legislation which bounds the
way of business operated. It determines the current legislation which affect present business and
how it going to pursue in future (Hundhausen, 2012). It also comprises the international
legislation which has a global outcome . It covers the regulatory bodies and processes,
employment laws, consumer protection laws, health and safety regulations, money laundering
regulations, tax regulations. It specifies a law of employment which covers a law for the
employer and employee both. Consumer protection law ensures that there should be no violation
of consumer rights such as selling the goods more than MRP.
Environmental Factors: Ecological and environment has a significance to rise in
demand of a product. In some certain geographical area, may have a demand of packed food or
food specific food ingredients which are necessary according to the environmental effect. That
will give growth to the business. Wagamama, England, is inaugurating a business new food
chain in Kingston. It needs to analyse the market for the stability in and finding the other factors
for the business purpose before initiating further. It has to careful for some sort of factors. These
factors can be define as PESTLE/ STEEPLE (Rosenberg, 2011). These factors which are
included in this impacts a business externally.
Porter 5 Force Model
This model was established in 1979 by Michael Porter for analysing industrial
profitability and attractiveness and within short period of time this has become popular in
business environment. Porter suggest that different organisation tends to keen close eye on
performances of their rivals including strategy affecting business environment. It has 5 forces
which defines different factors in comparative market.
Competitive rivalry – This is used to measure potential and strength of competitor that
include their marketing strategy and and business establishing policy. All organisation want to
have competitive advantage in market for that company concentrate on different suppliers and
buyers to increase their base. Market analysis is very crucial factor to understand market before
investing in particular environment. Royal Food Service before entering in Kensington have
implement different strategy in analysing internal and external business environment that is way
4

they are able to increase their business and able to compete with other rival company
(Lindquist, 2013).
Supplier power – Suppliers have played very diverse role in food and drinks business.
Royal Food Service is concentrating on preparing inorganic fast food. Initially enterprise is
having good relation with their suppliers but later they find it difficult because other company
also have started to make organic food items so suppliers are are getting better value of their
products.
Buyers power – It is the capability of buyer in certain business environment. Since the
the company is dealing in food and drinks particularly in posh and high profile area so rates are
very high for their products (Li, 2011). They have faced problem to sale their product in other
ventures because the cost of living of people in those sectors are lower than living standard of
London so local people cannot afford those products in their day to day life.
Threats of Substitution – Customers are free to choose food items from wherever they
want. So Royal Food Service have tried to increase their customer base but management are
unable to understand need and want of people at particular place. McDonald has sensed
opportunity to sell new food items in business market and earn more revenue and comparative
advantage.
New entries – Food industries must make sure they keep on inventing new food items
and modify old ones to change the taste of their food items (Oh, 2012). Royal Food Service
came up with a very new concept of making organisation fast foods but main problem which
hamper their business is high prices. In recent times many small food companies have started
investing in organic food products and sell them at relatively cheaper rate.
Micro environment
SPICC MODEL -
This model is specifically used for analysing opportunities and threat for a company it
work same Porter model by analysing different factors like
Competitors – Company must analyse different competitors in business so that they can
make effective planning about growth of their business
Customers – Company must analyse their customer and understand their need and want
which help them to fulfil their desires and taste of their customers.
5

Intermediaries – These include factors which are used to regulate business and used to
fulfil and develop basic need of their customers.
Public – all social and cultural factors are induced in this. Royal Food service must have
analysed culture and social culture of organisation before investing in that market.
Suppliers – For making a effective business better coordination with suppliers plays an
vital role. By having better relationship with suppliers company can get better quality of product
from them. In food industry every company want better and fresh vegetables and other stuff for
enriching taste of therefore product.
Internal environment
McKinsey 7s
 Strategy:- According to this, Wagamama can properly manage new property and
strategic alliance. Strategies are capable to do re-branding of organisation and
international marketing.
 Structure:- This will involve implement an effective as well as efficient structure of
company to conduct necessary activities in appropriate manner (Lindquist, 2013).
Wagamama can follow the top to bottom structure.
 System:- It is important to maintain an efficient system of an enterprise to organise
various events of it. Wagamama can apply lodging management system in which gust
history, front office, group sales etc. are easily and properly done.
 Shared values:- Wagamama can aim at leadership in hotel industry and it should be
conscious of its role in community, supporting social needs and ensuring employment.
 Skills:- There are various kin of aspects which are needed to be fulfil by Wagamama like
client satisfaction. It is also included that analytical, critical and problem solving skills
developed through researching, evaluating and presenting arguments or data.
 Style:- Wagamama can follow top down or bottom up style to take major decisions due
to customers and pricing strategies. Staff:- Wagamama have to recruitment more skilled and capable workers to provide
better services for client satisfaction. For this, they have to render proper training or
knowledge to them on regular basis.
BCG matrix
6

It can be defined as portfolio planning model developed by Bruce Henderson of Boston
Consulting Group previously. This factor based on observation which a firm's business units can
be divided into several classes lies on combinations of market growth and share relative to
largest competitor. It is a scattered graph of ranking several business units that is based on
growth rate and market share. Graph contains 4 major components
 Cash cow- It defines high growth market and slow growth. In this company is
generating more amount that their investments.
 Dogs – It is low market share and slow growth strategy. It is phase where revenue
shrinks for company
 Question mark – In this phase business market is having high opportunity but are
producing low market share and revenues for their business
 Stars – This is best phase for an organisational activity. In this phase company is
earning and increasing their revenue and growing their business in much faster way.
Marketing mix analysis
 Product:- It can be defined as final product as result of manufacturing which is ready to
sell for completing needs or demands of customers. Wagamama have to enhance qualities
or features of their goods or services to gain client satisfaction.
 Place:- It is important to decide correct place to sell the product where clients are
maximum in number. Wagamama can render their services at those areas where they can
grab more market area to increase profits.
 Price:- This term is able to generate value and promotes retention. It is essential for
Wagamama to provide better products at reasonable price. This will facilitate clients to
afford these goods to fulfil their needs easily.
 Promotion:- It is important to promote the products and services so that they can
enhance sales and profits more effectively as well a efficiently. Wagamama have to
promote their brand by advertisements, pamphlets, banners and many other means of
promotion(Lindquist, 2013).
 People:- Wagamama have to recruit capable and efficient staff members as per
requirements so that they are able to complete the tasks or activities on regular basis
effectively.
7

 Process:- It is necessary to choose an appropriate procedure to conduct manufacturing
activity and method to deliver service effectively on time for clients.
 Physical evidence:- Wagamama have physical evidence as the end result of its
performance for customer which is either product or service.
Wagamama can consider all these factors to good effect so that they can detect and
handle problem. For example using 7Ps of marketing mix company can understand wants and
expectation from the company. For example if company can analyse different taste of people
they can modify their food product and sell, this will be more benefit.
Summery analysis using swot
SWOT Analysis – It stands for Strength, Weakness, Opportunity and Threat. The above
discussed model are very effective tools in analysing internal and external factors. Wagamama
can use these tools to a good effect to analysis different factors which is hampering their
business ultimately decreasing their revenue base (Hall, 2013).
Summery of outcomes and analysis using SWOT
8

Strength
 Company is dealing in hygienic foods
so it will have major health benefits
 It has more that 120 business outlets in
all over UK
 Most of the outlets are in posh areas
which increases their revenue base
 The company at the time of
establishing a strong financial base so
they can handle risk and uncertainty of
their business in market place
(Lindquist, 2013).
 They have used high-tech technology in
their business like advances machinery,
food processing and making
equipments which have made them
efficient in sustaining in business
environment.
Weakness
 They have different outlets in all over
UK but find it difficult to manage their
workforces.
 The rate list of most of their items are
very high so it is not affordable for
many people to purchase their items. In
many areas
 It is a sole proprietorship type of
business with contentious loss pressure
on the owner increases.
 They have better technologies but
cannot implement them correctly in
business.
 Company tends to increase their
business and expand in new areas
instead of that they must monitor and
analyse the market.
Opportunity
 With huge number of outlets they have
opportunity to increase their brand
value and and business
 They have unique idea of launching
organic food products which is being
accepted by many heath conscious
people in business market.
 Company is located at high profile
business areas .They can satisfy
customer with better marketing
strategy.
 Having better marketing policy will
Threat
 The major threat is from competitors in
market. There are other competitors
like McDonald ,Subway etc. are also
doing business in these marker . Since
these company are having many outlets
in international market so stiff
competition is expected
 Policy – They have different policies
in handling their business. Porter
Model suggest that to sustain in market
company have better relationship with
their suppliers and customers.
9

also increase their value in business
environment.
Company must change certain policy to
sustain and grow in business market.
 Management – Company lacks in their
management ability so they are unable
to manage their workforce and frequent
clashes have erupted in business.
 With coming of Brexit the government
is about to change their policies and
and approach in business in market.
This is a bigger threat of restaurant in
coming days.
CONCLUSION
This assessment has underlines several factors which is degrading performance of
Wakamama hotel in UK market. Factors includes workforce management, marketing strategy,
financial losses. As a consultant all the macro and micro factor are being analysed through
different marketing tools including PESTLE, Ansoff and SMART model. These model has
suggested several methods and changes which can help them to increase their productivity in
business market. Expansion is a large area which has many factored which are yet to be
explored. This assessment has shown some glimpse of that.
10