PEST analysis stands for Political, economic, social and technological analysis that describes a framework of macro environmental factors used in the environmental scanning component of strategic management.
2.1.1 Political factors are basically to what degree the government intervenes in the economy. Specifically, political factors include areas such as tax policy, labor law, environmental law, trade law, tariffs, and political stability. Political factors may also include goods and services which the government wants to provide or already provided.
In our business there are some specific tax policies. We will collect the taxes from the customers as the product VAT and that will paid to the government as tax. Describing the labor law we
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These are some basic segmentation that can be done for our restaurant business.
Geographic Segmentation divides the market into different geographical units such as nations, regions, states, counties, or cities. Based on our restaurant business we have decided in a coastal area near Cox’s Bazaar where our customer can enjoy a wonderful scenario of sunset and sunrise.
Demographic Segmentation divides the market into groups based on variables such as age, gender, family size, family life cycle, income, occupation, education, religion, race, generation, and nationality. We are targeting our customer based on newly married couples and teenagers which age around 15-40 years old.
Psychographic Segmentation divides buyers into different groups based on social class, lifestyle, or personality traits. We are doing psychographic segmentation through charging a bit premium price in our products. This will psychologically perceived our customer that our foods are high quality foods compared with other
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In our restaurant business we have decided to use concentrated marketing targets which involve targeting a small share of a large market. Since our restaurant is a medium size company we have limited resource and knowledge of the market. However, our success will depend on how effective and efficient we can become in delivering our services to our target customer.
3.3 Product positioning is a way that the product is defined by consumers on important attributes such as the place the product occupies in consumers’ minds relative to competing products. Product positioning can be based on the consumer’ perception, feelings or impressions it has to our products. So for our restaurant this is how we will be positioning ourselves.
• We ensure that each guest receives prompt, professional, friendly and courteous service.
• Clean, comfortable and well maintained premises for our guests and staff.
• A fair price - nutritional, well-prepared meals - using only quality ingredients.
• Consistently offer to our customers with impeccable service by demonstrating warmth, graciousness, efficiency, knowledge, professionalism and integrity in our work.
• Hospitality and entertainment point
4. The Marketing Mix
4.1
Considering 4 elements of the marketing mix and the case discussion of the general trends in the industry, it seems that MCB is experiencing problem with place and determining its target market. The case provides many examples of the company's difficulties in gaining more retail locations, maintaining sufficient inventory level, and, the most important, improper positioning of its product, which impeded the MCB to reach its potential customers.
Segmentation variables can be classified into four major classes; geographic, demographic, psychographic and behavioural. The use of these categories either individually or in combination assists companies to identify and establish market segments which is relevant to the product or service they are offering. This in turn helps these organisations to evaluate the relevant segments to choose the pertinent target market.
Many factors should be addressed when defining a target market. These factors include market segmentation, product life cycle, and the four "P's" that make the marketing mix. Market segmentation is the process of dividing a total market into market groups consisting of people who have relatively similar product wants and needs. There are four major segmentation variables: geographic, demographic, psychographic, and behavioral. Geographic segmentation includes world region, country region, city, density, or climate. Demographic segmentation can consist of age, gender, income, occupation, education, race, religion, or nationality. Social class, lifestyle, and personality fall into the psychographic segment. The behavioral segment divides buyers into groups based on their knowledge, attitudes, uses, or responses to a product (Bethel, 2007). Once the market segment is identified, that market can be targeted.
Figure out the typical customers is the first marketing strategy. Business should find the right customers who would by your product and tailor and focus its marketing effort toward them. Thus, this target market represents the group of customer offering greatest opportunity.
Terrell, E. (n.d.). Market Segmentation. (Business Reference Services, Library of Congress). Retrieved April 6, 2014, from http://www.loc.gov/rr/business/marketing/
A segment profile comes down to describing customer characteristics of a typical customer. It is important to build profitable relationships with the right customer is good for the marketer’s stakeholders. After this, the brand can start to build up their company target market, as well as selecting merchandise that would be best for the store.
Caroline and Jennifer said that ‘Market segmentation is a crucial marketing strategy. Its aim is to identify and delineate market segments or set of buyers which would then become targets for the company’s marketing plans.’ (Tynan and Drayton, 1987) There are many ways to segment the market, such as age, region, environment, psychology and wages (Hall, Jones and Raffo, 2010).
Segmentation is the process of identifying different macro-groups of customers (i.e. segments) based on their common characteristics. The process of choosing a target segment, on which to focus marketing activities on, is a process named targeting.
To begin with, it is crucial to appreciate the meaning of segmentation and targeting because these two terms lay the foundation for this report. Consequently, segmentation is dividing a market, into groups of consumers with homogenous traits in order to provide each group with the desired product. What is the meaning of targeting? It is where an enterprise evaluates every segment with an objective of identifying segments with promising business opportunities. Considering the nature of the product in question, it sufficed to mention that liquor- filled chocolates are to be sold to adults.
We believe that honesty and integrity engender trust, which is the cornerstone of our business. We abide by the laws of the United States and other countries in which we do business, we strive to be good citizens, and we take responsibility for our actions. Respect Others: We recognize that our success as an enterprise depends on the talent, skills and expertise of our people and our ability to function as a tightly integrated team. We appreciate our diversity and believe that respect for our colleagues, customers, partners, and all those with whom we interact is an essential element of all positive and productive business relationships. Perform With Excellence: We understand the importance of our mission and the trust our customers place in us.
In this essay I will be discussing and critically analysing each element of the PESTLE analysis within the hospitality industry, with examples to reflect each point. Also this essay will discuss how marketers should adapt to changes in the macro-environment. The PESTLE analysis is a marketing principle used to understand the relation between a company and the external environment. Murray-Webster (2010:88) states PESTLE analysis will help to capture understanding about aspects of the context by using the prompt political, economic, sociological, technological, legal and environment.
which is under the conservative government. Economic factors changes include changes such as a recession creating activity at the lower end of the product price range. Also for instance the rate of interest rates rising depressing businesses. causing redundancies and lower spending levels. Social factors change include changing lifestyles and attitudes.
Strategic analyses can be either internal or external. Internal analyses take a look at firms on an individual basis to determine their abilities, while external analyses look at the industry or overall business environment. The PEST analysis evaluates the environment surrounding an industry. It looks at political, economic, social, and technological factors that are current or potential future drivers that shape the landscape. The tool is useful for both strategy and market research and will provide a broad framework for Casa San Ysidro to consider in their future decisions. In the context of this project, we decided to to focus on a few specific factors that can affect museums within the U.S.
PEST Analysis for a Company in the Tourism Industry The Tourism industry is one of the fastest growing industries in the world. The World Travel and Tourism Council estimates that in 2004 Travel and tourism is expected to generate * US$ 5,490.4 billion of economic activity * 10.4% of total GDP * 214,697,000 jobs or 8.1% of total employment * 12.2% of total exports [1] My task is to conduct a PEST analysis for a company within the Tourism industry. Within the tourism industry, I have to select one area of interest like transportation, accommodation and transportation etc. and then one company doing business with these sectors related with the tourism.
From marketing perspective, LOCATION for the fast food service to the potential customers is most important according to Maritz Marketing Research. The recent study showed the location has to be convenient. The analysis said that adults under the age of 65 prefer convenient location for their fast food. They need their service to be in “an arm distanced”, which means the convenient location helps customers save their time, traveling cost. For the fast food chain companies, locating the branches to reach customer becomes a positioning strategy.