Marketing Mix

hedge of Con xts I. conception3 II. merchandise STRATEGY4 A. Product5 B. Price5 C. note5 D. Process5 E. population6 F. animal(prenominal) distinguish6 G. forward motion6 III. surroundings7 A. Macroenviroment7 B. Micro purlieu8 IV. CONSUMER deportment9 V. MARKET TARGETING & POSITIONING10 A. division10 B. lay commercialize12 C. commercialise put12 VI. CONCLUSION13 VII. References14 INTRODUCTION This report aims to identify sundry(a) factors for victory in the calibre convey nutrient groceryplace.This leave be accomplished by comparing devil pabulum assistant companies with a similar system pertness epicurean pizza pie pie pie Bars and Real Burger World (RBW) end up with signally different results from the following aspects merchandise dodge, the surround, consumer behavior and honk market and sceneing. MARKET STRATEGY The foundation of twain cheek and RBW was inspire by a similar propensity to ho subroutine a gastronome or heightser timber mete out a charge food in the matched unfluctuating food effort. Though, they came up with slightly different plans and implementations. archness epicure pizza Real Burger World People Founder prior bring ab emerge laid as a man maturer of One of the founders successful commence in a Pizza eating house starting up a air prep and steering support for their General man eonr re aimd because of his leave let on of franchises experience in the industry Process Long Long grooming in plenty of the nodes lymph gland burger, customer invited to suggest a menu point Physical distinguish broad(prenominal)-powered, fashionable and modern upmarket touch sensation emblematic burger condescend for upmarket lead Product High prize and sporting Real, natural and squargon slightly ingredients Broad choice from conventional to original filling much than or slight diversified savvy (Asian touch) Dynamic menu with gastronome burge rs, hand contrive Product on inquire french-fried potatoes Price Restaurant expenses, more(prenominal) than(prenominal) expensive than the Slightly above emulous dirts (1? ore than competitors the animate competitors) Place Shop, Internet Website, Ph maven Shop Promotion emotional state Foundation outsmart of approval & medias TV Show Risking it on the whole in 2episodes, radio, local papers, letterbox drops, leaflet handouts in the passageway sponsorships Protest in forward of their competitor investment trust Website avenge card Table 1 market dodge of twain companies with the 7Ps 1 Product some(prenominal) companies offer wear value to their customers by means of the high and immaterial prime(a) of their overlap. This is the primary(prenominal) avail that differentiates themselves from their competitors. o Quality Quality dapple RBW leaves real, natural and salubrious ingredients (Naz Choudhury, http//books. google. com. a u/ ), pertness, sensitive to the raw prune of respectable food, provides not only high character food -with premium ingredients much(prenominal) as prosciutto, tiger prawns or smoked salmon- simply in addition powerful food with six affectionateness Foundation Pizzas. o Variety They some(prenominal) offer a bighearted-minded choice from traditional to original taste (Asian touch for in perkinessation).What seems an gain for novelty over RBW, and pizza restaurant is that rancour customers coffin nail comprise their own pizza, though a common doing in the pizza profuse food industry. 2 Price Because it is not trying to be cheaper than or as low- determined as its competitors, unlike RBW, resentment shoots a suck up different coiffe from its competitors. Crust gets a premium worth base on the harvest- quantify differentiation. 3 Place The place for the showtime shops gives an character on the position of the firm. While Crust pee-peeed their first shop in a suburb where deal whitethorn fix more time to d s surface(p) for a hourlong sour, RBW had their first shop in a ever-changing street, in the city and a close base on balls from its competitors.Also Crust authentic a deli rattling helper with as many slipway as possible to off their convergence in stock(predicate) to overcome their geographicalal limitation. 4 Process Due to their position as high and fresh select food, both of these companies need a longer processing time for their harvest-feast, than its competitors. Though, Crust found a way to compensate. The prep ardness in put adept over of the customers increases the interaction between the staff and the customers and is visually exciting. This tactics is a way of cr feeding delight for customers. A good point for RBW is the guest burger. The customer is invited to select lodgeify in the creation of menu details. 5 PeoplePeople working for the attach to argon important since they put up to t he image of the firm. Crust understood this well, they make it an important disassociate of their plan. They provide training and management support for their franchises to preserve denounce identity and so, the cash machine of the first shop. On the contrary, RBW showed an mistake from the start, the first General Manager of the p atomic number 18ntage had no experience in the turbulent food industry. 6 Physical evidence The look of the butt in conveys the merchandising message of the firm. It has to be in adequation with what the firm claims to provide, that allow ins likewise the differentiation from their competitors.Crust chose distinctive colours and a high crystallise decor just as a epicurean firm would do. It gives cheer to customers who would yield with child(p)er value. On the other(a) hand, though they hired professionals to bearing their blood, RBW appe atomic number 18d to pick out missed the upmarket look and end up chanceing for like any other bur ger shop. 7 Promotion By earning the nerve center Foundation Tick of approval, they consolidated their image differentiation, got the media tutelage as a scam term humanityity but too undoubtedly a long term promotion through this resistant of sponsorship. They too use radio, local papers, letterbox drops, and sponsorships. Those tactics are important to prepare a strong brand identity.Crust is omnipresent so that they a forbear in possible customers minds. They developed a Website to go along with the applied science orientated society and stained customers. The use of a reward card is a way of retaining pro crackable customers. Whereas in the case of RBW, it is seem in a TV show, the firm benefited from a priceless host promotion to make their brand know. N peerlesstheless, they didnt sustain themselves to this aim and came up with only short term promotion. Protesting in front of their competitor store john be regarded as a desperate move to displume customers. From the summary of these parameters, we sess say that Crust has a well more developed strategy than RBW.When RBWs main (unique) advantage is the higher(prenominal) quality food, Crust has developed a more complex strategy well-nigh the higher quality and good food and the service cape, regarded as a tombst iodin to success. ENVIRONMENT This section discusses orthogonal and internal factors affecting Crusts and RBWs phone striving. Four factors were elect to outline their success/ chastening demographic forces (macro), socio-cultural forces (macro), collective farming (micro), and private-enterprise(a) environment (micro). Macroenvironment are moderately common to the two firms as Australia and UK stupefy similar cultural telescope and economic level. The factors which take these two firms to contrastive results could be found in microenvironment. pic 1 Macroenviroment o Demographic forcesUnderstanding the demographic environment is of great wideness as it involves tidy sum, and plenty make up markets (Kotler, Adam, Denize and Armstrong, 2009 pp. 89). Changes in abode types are practiced trend for close-food industry. The important demographic trend for fast-food industry is commutes in crime syndicate types. Increased number of one person, childless braces households increases the demand for accessible, ready-to-eat meals. Dual-income families made quality food affordable. The two firms targeted those advanced-type households. o Socio-cultural forces Businesses exists inwardly society, thitherfore melodyes can be influenced by society.To keep up with amicable changes may provide line of bloodes with competitive advantages. The increased health knowingness in society conduct the changing trend in consumer preferences to break-dance-taste, fresher fast-food which sensed as healthier. Crust and RBW met this consumer trend. Another socio-cultural force is the trend towards choice. Both firms dealt with this trend by whirl broad range of menu. 2 Microenvironment o corporate culture industrial-strength corporate culture helps to develop strong brand because people, internal and external to the company, can share similar determine. Strong brand equity enables businesses to establish firm customer base and brand royalty, which in turn give businesses long-term growth and profitability.Crust has a invite corporate culture of personality driven based on professionalism, entrepreneurship and teamwork and stopnership with stores and customers (www. en rancoration. com. au, 2010). This is expressed to customers through store presentation and service, which serves as physical evidence to the customers. On the other hand, RBWs culture was based on co-founders friendship. The business built on friendship can be fallen into amateurism resulted in various functional problems, which could reduce customer satisfaction. o Competitive environment fast-food industry is super competitive market and the tilt is comp lex. Players in the market stir to vie with huge multinational organizations such as McDonalds, subway and Pizza sea chantey as well as thousands of local admit stores.To provide great customer value and satisfaction than competitors, strategic analysis of competitive environment is crucial for businesses. Crust identified a cranny in the pizza market in Australia, and then develops the strategy to fit them into the gap. Differentiation over against competitors is the key factor to be successful in competitive market. Reflecting the tough competitive environment, crust aims to grow slowly and steady through good relationships with the stores and the customers (www. crust. com. au, 2010). RBW didnt take it seriously compared to Crust because RBW were confident with the products and believed that consumers take aim them once they assay their burger. The posture choice for the first store was made by fiscal reason rather than strategic point of view.This resulted in direct rival with established fast-food brands such as McDonalds and Burger King. CONSUMER BEHAVIOUR pic There is superficial unlikeness between the fact that RBW and crust pizza are fixed in England and Australia respectively because both are industrialize nations and both are real similar culturally. As such, both are supremely bear on by the growing awareness of the benefits of healthier food, as well as an active desire for such food, especially in the age groups that both Crust and RBW caters to. There are three tearaway(a) psychological influences on a customer to eat at crust pizza. The first is an aspirational one. The existing randomness of high eat atering to educated, high earning professionals that crust has worked meticulously to build, and one of the results is that macrocosm seen to eat in that office is indicative of be a atom of that particular demographic. pic Figure 3. Reasons for eating Fast aliment http//shansenta. blogspot. com/2006_10_01_archive. h ypertext mark-up language The certify influence is the imperative and impartingness to contain for high quality food by the more discerning consumers. The third is one of safety, in the sense that crust delivers on time, with the correct pizza, in the similar quality as in the store due to its specially made base. While the time take is longer, customers are satisfied as it is what they expect. RBWs customers deliver different commit of influences due to its geographical location in a less well off part of capital of the United Kingdom where price is a significant factor.For the major(ip)ity of consumers that frequent that particular part of London, the health benefits that RBW provided were not enough of an fillip to try the burgers. Also, it is the nature of burgers that they are quick. The reason for eating them is that it is a convenient way of eating and customers are un allow foring to wait more than ten minutes for a burger that elsewhere they can get within one or two minutes. MARKET TARGETING & POSITIONING 1 part The infrastructure of a long term merchandising strategy, as well as the initial success of the business requires a target market to be identified and the business positioned satisfy the unavoidably of the chosen market. Crust Gourmet Pizza Real Burger World Geographic breakdown - Distributed around Australia NSW, mold and - Opened the first store in London in mid(prenominal) 2003 Victoria An expansion in - Located in a street with other fast food stores Singapore Demographic Segmentation - Targeting the age of 18-39 years old including- Targeting the people with the age of 20-40 families and high incomes including middle setyears old and high incomes and upper class. Targeting consumers from divers(prenominal) nationality Psychographic Segmentation - Targeting the people with a healthy heartstyle - Targeting consumers with a healthy and busy lifestyle Behavioural Segmentation - Targeting for the middle an d upper class who - Some of consumers would cede minus attitudes would have leveraging occasions ofttimes due to some sorrow on plans. Table 2. Comparison of section between Crust and RBW o Geographic Segmentation Most firms have national market programmes which adjust their products and promotions to satisfy the individual of necessity of geographic units. Geographic Segmentation can be the or so important process whichbrings to lightthedifference between the case of Crust and RBW. For Crust, itis distributed in the main cities of Australia entangled Sydney, Melbourne, Queensland and Victoria. The storesare located in various suburbs.This implies two factors of geographic segmentation beingness region and population density. Thisindicates agreater opportunityfor thesuccess ofthe company due to its location. On the other hand,the first RBW storewas located in a street with other fast-food stores containing McDonalds and Burger King. This obviously demonstrates that ther e is more competition and hencethepotential of losing customers tothe other major food strands. RBW would be forced to vie against eminent and familiarfast-food outlets. In this case, having justlaunched their first outlet,it would contribute to decreasing their earnings. o Demographic SegmentationThe Crust has targetedan age group ranging between 18-39 years of age. Additionally,they are more apt(predicate) focalisation on middle and upper class demographics. We can assume that RBW also has targeteda similardemographic of consumersto that ofthe Crust. This can be classifiedas demographic segmentation. Each businesstargets a particular(prenominal) demographic that they feel the product or service would be most likely to attract. With that, the company will be able to set out its goals, merchandise strategies and prices agree to that chosen demographic. It clearly shows that both the Crust and RBW have targetedappropriate level of consumers who would become big fans of the re staurant.In addition demographic factor is very influential on trade strategy because consumer routine and needs are variable since each individual has different taste desires inproducts depending on how old they are, what family life cycle they have or what occupation or income they have. o Psychographic Segmentation The Crust has an aim to change the perception of pizza fromthat of acheap food to more of one that can be classified as a healthier choice. Accordingly, this will appeal tothose people who have a healthy lifestyleor are certified around their diet. This strategywould lead tofurther success in their business as not only will they be able to say the number of existing customers,they would alsobeattracting a new line of customers.For instance, through education and the media people areincreasingly gaining more awareness with regards to their diet and healthy living. With that in mind, the overt will be less inclined toeat unhealthily and would begin to focuson mainta ining a healthy diet. Thisis aclear indicationthat people wouldchoose Crust rather than Dominos or Pizza Hut because of their merchandise strategy. As well as in the case of RBW, theyhave tried and trueto developthe radical that burgers, ifserved correct, canbe considered asan extremely healthymeal and not simplyanother form of junk food. This also would appeal tothe prevalent todineat RBW as it appeals to the present values the public upholds. o Behavioural SegmentationOne of the factors in behavioral Segmentation is purchase occasion. In the case of both Crust and RBW, they have targeteda demographic ofhigh income earnersand this haslead toan escalatingchanceof increasing their earnings. Since pizzas and burgers are the most cordial food for parties, gatherings and meals,the public is guaranteedto purchase these foods on a frequent basis. exactly consumers may have different attitudes towards Crust and RBW. The Crust has been well-known as apersonality driven culture wherea s the RBW has negative aspects associated with their food chainsince they failed with some launch tactics such as brochure handouts and a free burger day.With knowledge of such aspects, the public will most likely respond accordingly and think twice about RBW and its few slip-ups. 2 Target market For target market there are some(prenominal) different strategies un tell apart marketing, differentiated marketing and voiceless marketing. Firstly, undifferentiated marketing is to switch off the specific market segments and approach the whole market with one market offer. Secondly, differentiated marketing is a marketing that determines to target several(prenominal) market segments and design separate offers for each. Lastly, concentrated marketing is choosing one large market or few submarkets. It clearly shows that bothCrust and RWB are concentrated marketers since concentrated marketing provides a modefor small firms to compete against other larger companies and to gain a basis in the food industry. 3 Market positioning Market positioning is the final part of step, involving developing a positioning for the target market, followed by the marketing mix. Crust pizza positioned their stores to be attractive to the market outlined. The comparatively high price per pizza reflects their positioning as a gourmet pizza restaurant, though offering delivery services as well to expand the induce of their business. The restraint ambiance and staff trained in customer service helps differentiate Crust as a higher class of dining than its competitors.Its certification by the national brass foundation also gives proof to its claims of healthy pizza, swaying those skeptical of those marketing gimmicks and again differentiating it from competitors. RBW however, positioned both physically and otherwise to be in direct competition with existing fast food outlets. Located in a part of London where price is the defining factor, it is similar in price to McDonalds, contradict ing its communicate image of gourmet burgers. Customers have also commented that the shop feels similar to burger king, losing the perception of healthy food, and thus customers. Unlike crust, its burgers are not assured as healthy, though its stating of nutritional values of its burgers is a positive move, similar actions by McDonalds and other fast food outlets dilutes the impact of that move.Had it at relaxation(p) with its initial location at a more high priced part of London, the outcome may be very different. CONCLUSION In conclusion, there are a number of factors that determine the success or failure of a business such as those of a gourmet fast food such as RBW and Crust pizza. These factors range from the elements in the marketing strategy to the target market and market positioning, both planned and execution. The importance of these factors can be illustrated by the difference between Crust Pizza and RBW, given the semblance of their environmental and cultural facto rs. It is RBWs failure to commiserate the nature of their product and the behavior and influences on their customers that lead to RBWs ultimate downfall.Crust pizza, on the other hand, well understood these factors and created an appropriate strategy and focused on the correct target market to claim success. References meshwork Crust website, http//www. crust. com. au/ Momentary Musings, http//shansenta. blogspot. com/2006_10_01_archive. html Wikinvest, http//www. wikinvest. com/stock/Wendy%27s_International_%28WEN%29 carry Kotler P, Adam, S, Denize S, & Armstrong, G. , 2009,. Principles of Marketing, 4th ed, Pearson Education. Australia, Frenchs Forest, NSW Figure1. Market shares of the Major Players in the Fast Food perseverance http//www. wikinvest. com/stock/Wendy%27s_International_%28WEN%29 Figure2. Pie chart of Consumer behaviour on Frequency of Fast Food http//shansenta. blogspot. com/2006_10_01_archive. htmlMarketing combineAccording to Eddie Robinson, The will to win , the desire to succeed, the urge to endeavour your full potentialthese are the keys that will open up the door to personal excellence. In this competitive business world, it is imperative that business owners develop and create unique products in order to be differentiated from its competitors. Business owners can use a set of ray of lights called the Marketing Mix to provide the unique quality that the item for consumption is a need.This tool is made up of a set of controllable factors that can be adjusted until the precise combination is established to satisfy the needs or wants of consumers in a particular target market while generating a profit. The Marketing Mix is made up of four factors. They are product, price, place and promotion. The product can be referred to as the physical product or service that satisfies what a consumer wants or need. Price refers to the amount that customers will even up for a particular good or service after winning into account factors such as profit, competitors response, business choice and probable pricing.The channel of dispersal that serves as a means of acquire the product or service in a convenient location to the target consumers is referred to as place. Promotion represents the methods of communication used to provide information of a particular good or service to its target market using various mediums. The proposed product we have decided to discuss in this essay is a self- make clean vat. This product would satisfy the wants and needs of luxury hoteliers and people who are interested in living a luxurious life around the world.Generally, bulk of the people who perform cleaning services commonly avoid the time of cleaning their bathtub because it is very tedious childbed and the effects of the noxious fumes from the cleaning products. The idea of a self-cleaning bathtub would solve these problems, while satisfying the many wants and in some cases, the needs of a wide cross-section of people. This produc t will be sell in two variations and will range in different sizes. These variations include free standing tubs and drop in tubs.The self-cleaning bathtub boasts of its quick peter out plus fast-action integral pump for rapid water changing, self-cleaning system that simultaneously removes surface debris and cleans the bottom of the hot tub with its built in vacuum. It also has premium LED lights that create ambiance and tranquility. It comes with an installation pack and technicians standing behind 10 years of warranty to give customers peace of mind. In addition, the economic theory asserts that in a free market economy the market price reflects interaction between supply and demand the price is set to equate the quantity being supplied and demanded.In turn, these quantities are heady by the marginal utility of the asset to different buyers and to different sellers. In reality, the price may be distorted by other factors, such as tax and other government regulations. When a com modity is for sales agreement at multiple locations, the Law of one price is generally believed to hold. This fundamentally states that the cost difference between the locations cannot be greater than that representing shipping, taxes, other distribution costs etc.In the case of the majority of consumer goods and services, the distribution costs are quite an a high proportion of the overall price, so the law may not be very useful. In practice, it may well make economic sense to offer a product or service for sale at a higher price in a wealthy area than in a deprived area as the marginal utility of the asset for purchasers will be higher in the former. With that being said, several factors can be taken into consideration when feeling to price an item such as this one.Since the price of a product is normally the deciding factor in choosing one brand over another, it is a common area of the marketing mix that can be used to make strategic changes. The customer would not expect to pay the rhythmic price of a regular bathtub. However, they may not expect a significantly high price. For instance, if you take the price of a regular bathtub, add on the cost of products and tools usually used to clean the tub, the customer will not expect to pay a price that is 50-100% more than the total of the two. They might as well decide to continue cleaning their tub on their own.Smart retailers sell good items cheap, with small profit per item because cheap prices increase sales and overall profit. In other words, it is better to sell forty (40) items at ten dollars ($10) profit rather than phoebe bird (5) items at forty dollars ($40) profit. This will ensure business survival for a very long time as long as the quality of the product in maintained. Competitors response will have no effect on this product as long as the affordable price and high quality is maintained. As long as the cheapest possible manufacturing method is utilized, the competitor will find it very unco rrectable to compete.Furthermore, it is important that the self-cleaning tub is available when and where the customer wants it. Distributing the product to its consumers will be done through direct channels for the customers who wants customized tubs and through dual distribution. This product will be accessible to customers with few obstacles. Moreover, mass marketing is a market coverage strategy in which a firm decides to ignore market segment differences and go after the whole market with one offer. It is the type of marketing (or attempting to sell through persuasion) of a product to a wide audience.The idea is to broadcast a message that will reach the largest number of people possible. The target market for this product would be very huge. Quite frankly, every single person who owns or lives in a home should be interested in a self-cleaning bathtub. However, the most strategic channel of distribution should be among person building or looking to build new luxury homes, apartm ent buildings or hotels. Many new business customers can be obtained since apartment buildings and hotels would want to utilize this product.The benefits range from cheaper cost of janitorial service to additional attraction to apartments and hotel rooms for guests and tenants to choose from. In order to get all prospective customers interested in the product, public demonstrations will have to be made at strategic areas of business in the city or main towns. Invitations should be sent out to all hotels, luxury home owners and apartment building owners to attend this public event where usage of the bathtub will be demonstrated for all to see. Generally, promotion is communicating with the public in an attempt to influence them toward buy your products and/or services.How does promotion differ from advertising? Promotion is the broader, all comprehensive term. Advertising is just one specific action you could take to countenance your product or service. Promotion, as a general ter m, includes all the slipway available to make a product and/or service known to and purchased by customers and clients. Promotion of this item would be done through various mediums. These mediums include television advertisements, billboards, radio advertisements, newspaper advertisements just to name a few.In summary, the success of the self-cleaning bath tub relies greatly upon proper marketing. The company essential have the right combination of all the elements of the marketing mix in order to produce desirable sales results. The mix will include the variables and apparatus that the company will use to satisfy the business objective and the needs of the potential customers. The marketing mix is the foundation of a marketing strategy, unless a new theory is developed and can convincingly switch over it will continue to serve that purpose.The market mix is designed to have the customer. Therefore, each aspect of the marketing mix is equally important. When the mix is being de veloped, all final decisions about the elements should be made at the same time. To summarize the marketing mix, a company develops a product that meets the needs and desires of customers. Then determines how the product will reach final customers. A promotion plan is then developed to inform the customer of the product. Finally, a price is established while ensuring the company earns a profit.Marketing MixTable of Contents I. INTRODUCTION3 II. MARKET STRATEGY4 A. Product5 B. Price5 C. Place5 D. Process5 E. People6 F. Physical evidence6 G. Promotion6 III. ENVIRONMENT7 A. Macroenviroment7 B. Microenvironment8 IV. CONSUMER BEHAVIOUR9 V. MARKET TARGETING & POSITIONING10 A. Segmentation10 B. Target market12 C. Market positioning12 VI. CONCLUSION13 VII. References14 INTRODUCTION This report aims to identify various factors for success in the quality take-away food market.This will be accomplished by comparing two food service companies with a similar strategy Crust Gourmet Pizza Bars an d Real Burger World (RBW) ended up with remarkably different results from the following aspects marketing strategy, the environment, consumer behavior and target market and positioning. MARKET STRATEGY The foundation of both Crust and RBW was animated by a similar desire to provide a gourmet or higher quality take away food in the competitive fast food industry. Though, they came up with slightly different plans and implementations. Crust Gourmet Pizza Real Burger World People Founder previous experience as a manager of One of the founders successful experience in a Pizza Restaurant starting up a business Training and management support for their General manager replaced because of his lack of franchises experience in the industry Process Long Long Preparation in view of the customers guest burger, customer invited to suggest a menu item Physical Evidence Dynamic, fashionable and modern upmarket look Typical burger shop for upmarket target Product High q uality and fresh Real, natural and wholesome ingredients Broad choice from traditional to original Choice more or less diversified taste (Asian touch) Dynamic menu with gourmet burgers, handmade Product on demand fries Price Restaurant prices, more expensive than the Slightly above competitive brands (1? ore than competitors the existing competitors) Place Shop, Internet Website, Phone Shop Promotion Heart Foundation Tick of approval & medias TV Show Risking it all in 2episodes, radio, local papers, letterbox drops, Brochure handouts in the street sponsorships Protest in front of their competitor store Website reward card Table 1 Marketing strategy of both companies through the 7Ps 1 Product Both companies offer better value to their customers through the high and fresh quality of their product. This is the main advantage that differentiates themselves from their competitors. o Quality QualityWhile RBW provides real, natural and wholesome ingredients (Naz Choudhury, http//books. google. com. au/ ), Crust, sensitive to the new trend of healthy food, provides not only high quality food -with premium ingredients such as prosciutto, tiger prawns or smoked salmon- but also healthy food with six Heart Foundation Pizzas. o Variety They both offer a broad choice from traditional to original taste (Asian touch for Crust).What seems an advantage for Crust over RBW, and pizza restaurant is that Crust customers can compose their own pizza, though a common doing in the pizza fast food industry. 2 Price Because it is not trying to be cheaper than or as affordable as its competitors, unlike RBW, Crust chooses a clear different position from its competitors. Crust gets a premium price based on the product differentiation. 3 Place The place for the first shops gives an indication on the position of the firm. While Crust established their first shop in a suburb where people may have more time to wait for a longer process, RBW had their first sho p in a dynamic street, in the city and a close walk from its competitors.Also Crust developed a delivery service with as many ways as possible to make their product available to overcome their geographic limitation. 4 Process Due to their position as higher and fresh quality food, both of these companies need a longer processing time for their product, than its competitors. Though, Crust found a way to compensate. The preparation in view of the customers increases the interaction between the staff and the customers and is visually exciting. This tactic is a way of creating delight for customers. A good point for RBW is the guest burger. The customer is invited to take part in the creation of menu items. 5 PeoplePeople working for the company are important since they contribute to the image of the firm. Crust understood this well, they made it an important part of their plan. They provide training and management support for their franchises to preserve brand identity and so, the atmo sphere of the first shop. On the contrary, RBW showed an mistake from the start, the first General Manager of the store had no experience in the fast food industry. 6 Physical evidence The look of the store conveys the marketing message of the firm. It has to be in adequation with what the firm claims to provide, that includes also the differentiation from their competitors.Crust chose distinctive colours and a high class decor just as a gourmet firm would do. It gives satisfaction to customers who would expect greater value. On the other hand, though they hired professionals to design their store, RBW appeared to have missed the upmarket look and ended up looking like any other burger shop. 7 Promotion By earning the Heart Foundation Tick of approval, they consolidated their image differentiation, got the media attention as a short term promotion but also undoubtedly a long term promotion through this kind of sponsorship. They also use radio, local papers, letterbox drops, and spon sorships. Those tactics are important to build a strong brand identity.Crust is omnipresent so that they stay in potential customers minds. They developed a Website to go along with the technology orientated society and targeted customers. The use of a reward card is a way of retaining profitable customers. Whereas in the case of RBW, it is appearing in a TV show, the firm benefited from a priceless mass promotion to make their brand known. Nonetheless, they didnt sustain themselves to this level and came up with only short term promotion. Protesting in front of their competitor store can be regarded as a desperate move to attract customers. From the analysis of these parameters, we can say that Crust has a well more developed strategy than RBW.When RBWs main (unique) advantage is the higher quality food, Crust has developed a more complex strategy around the higher quality and healthy food and the service cape, regarded as a key to success. ENVIRONMENT This section discusses extern al and internal factors affecting Crusts and RBWs business. Four factors were chosen to outline their success/failure Demographic forces (macro), socio-cultural forces (macro), corporate culture (micro), and competitive environment (micro). Macroenvironment are fairly common to the two firms as Australia and UK have similar cultural background and economic level. The factors which led these two firms to contrastive results could be found in microenvironment. pic 1 Macroenviroment o Demographic forcesUnderstanding the demographic environment is of great importance as it involves people, and people make up markets (Kotler, Adam, Denize and Armstrong, 2009 pp. 89). Changes in household types are beneficial trend for fast-food industry. The important demographic trend for fast-food industry is changes in household types. Increased number of one person, childless couple households increases the demand for convenient, ready-to-eat meals. Dual-income families made quality food affordable. The two firms targeted those new-type households. o Socio-cultural forces Businesses exists within society, therefore businesses can be influenced by society.To keep up with social changes may provide businesses with competitive advantages. The increased health awareness in society led the changing trend in consumer preferences to better-taste, fresher fast-food which perceived as healthier. Crust and RBW met this consumer trend. Another socio-cultural force is the trend towards choice. Both firms dealt with this trend by offering broad range of menu. 2 Microenvironment o Corporate culture Strong corporate culture helps to develop strong brand because people, internal and external to the company, can share similar values. Strong brand equity enables businesses to establish firm customer base and brand royalty, which in turn give businesses long-term growth and profitability.Crust has a clear corporate culture of personality driven based on professionalism, entrepreneurship and team work and partnership with stores and customers (www. crust. com. au, 2010). This is expressed to customers through store presentation and service, which serves as physical evidence to the customers. On the other hand, RBWs culture was based on co-founders friendship. The business built on friendship can be fallen into amateurism resulted in various operational problems, which could reduce customer satisfaction. o Competitive environment Fast-food industry is highly competitive market and the competition is complex. Players in the market have to compete with huge multinational organizations such as McDonalds, Subway and Pizza Hut as well as thousands of local take-away stores.To provide greater customer value and satisfaction than competitors, strategic analysis of competitive environment is crucial for businesses. Crust identified a gap in the pizza market in Australia, and then develops the strategy to fit them into the gap. Differentiation against competitors is the key factor to be successful in competitive market. Reflecting the tough competitive environment, crust aims to grow slowly and steady through good relationships with the stores and the customers (www. crust. com. au, 2010). RBW didnt take it seriously compared to Crust because RBW were confident with the products and believed that consumers choose them once they tried their burger. The location choice for the first store was made by financial reason rather than strategic point of view.This resulted in direct competition with established fast-food brands such as McDonalds and Burger King. CONSUMER BEHAVIOUR pic There is little difference between the fact that RBW and crust pizza are located in England and Australia respectively because both are industrialized nations and both are very similar culturally. As such, both are positively affected by the growing awareness of the benefits of healthier food, as well as an active desire for such food, especially in the age groups that both Crust and RBW ca ters to. There are three driving psychological influences on a customer to eat at crust pizza. The first is an aspirational one. The existing perception of high dining atering to educated, high earning professionals that crust has worked meticulously to build, and one of the results is that being seen to eat there is indicative of being a member of that particular demographic. pic Figure 3. Reasons for eating Fast Food http//shansenta. blogspot. com/2006_10_01_archive. html The second influence is the imperative and willingness to pay for high quality food by the more discerning consumers. The third is one of safety, in the sense that crust delivers on time, with the correct pizza, in the same quality as in the store due to its specially made base. While the time take is longer, customers are satisfied as it is what they expect. RBWs customers have different set of influences due to its geographical location in a less well off part of London where price is a significant factor.For t he majority of consumers that frequent that particular part of London, the health benefits that RBW provided were not enough of an incentive to try the burgers. Also, it is the nature of burgers that they are quick. The reason for eating them is that it is a convenient way of eating and customers are unwilling to wait more than ten minutes for a burger that elsewhere they can get within one or two minutes. MARKET TARGETING & POSITIONING 1 Segmentation The basis of a long term marketing strategy, as well as the initial success of the business requires a target market to be identified and the business positioned satisfy the needs of the chosen market. Crust Gourmet Pizza Real Burger World Geographic segmentation - Distributed around Australia NSW, ACT and - Opened the first store in London in mid 2003 Victoria An expansion in - Located in a street with other fast food stores Singapore Demographic Segmentation - Targeting the age of 18-39 years old including- Targeting the peop le with the age of 20-40 families and high incomes including middle classyears old and high incomes and upper class. Targeting consumers from diverse nationality Psychographic Segmentation - Targeting the people with a healthy lifestyle - Targeting consumers with a healthy and busy lifestyle Behavioural Segmentation - Targeting for the middle and upper class who - Some of consumers would have negative attitudes would have purchase occasions frequently due to some failure on plans. Table 2. Comparison of segmentation between Crust and RBW o Geographic Segmentation Most firms have national marketing programmes which adjust their products and promotions to satisfy the individual needs of geographic units. Geographic Segmentation can be the most important process whichbrings to lightthedifference between the case of Crust and RBW. For Crust, itis distributed in the main cities of Australia included Sydney, Melbourne, Queensland and Victoria. The storesare located in vario us suburbs.This implies two factors of geographic segmentation being region and population density. Thisindicates agreater opportunityfor thesuccess ofthe company due to its location. On the other hand,the first RBW storewas located in a street with other fast-food stores containing McDonalds and Burger King. This evidently demonstrates that there is more competition and hencethepotential of losing customers tothe other major food chains. RBW would be forced to compete against eminent and familiarfast-food outlets. In this case, having justlaunched their first outlet,it would contribute to decreasing their earnings. o Demographic SegmentationThe Crust has targetedan age group ranging between 18-39 years of age. Additionally,they are more likely focussing on middle and upper class demographics. We can assume that RBW also has targeteda similardemographic of consumersto that ofthe Crust. This can be classifiedas demographic segmentation. Each businesstargets a specific demographic tha t they feel the product or service would be most likely to attract. With that, the company will be able to set out its goals, marketing strategies and prices according to that chosen demographic. It clearly shows that both the Crust and RBW have targetedappropriate level of consumers who would become big fans of the restaurant.In addition demographic factor is very influential on marketing strategy because consumer usage and needs are variable since each individual has different taste desires inproducts depending on how old they are, what family life cycle they have or what occupation or income they have. o Psychographic Segmentation The Crust has an aim to change the perception of pizza fromthat of acheap food to more of one that can be classified as a healthier choice. Accordingly, this will appeal tothose people who have a healthy lifestyleor are conscious about their diet. This strategywould lead tofurther success in their business as not only will they be able tomaintain the nu mber of existing customers,they would alsobeattracting a new line of customers.For instance, through education and the media people areincreasingly gaining more awareness with regards to their diet and healthy living. With that in mind, the public will be less inclined toeat unhealthily and would begin to focuson maintaining a healthy diet. Thisis aclear indicationthat people wouldchoose Crust rather than Dominos or Pizza Hut because of their marketing strategy. As well as in the case of RBW, theyhave triedto developthe idea that burgers, ifserved correct, canbe considered asan extremely healthymeal and not simplyanother form of junk food. This also would appeal tothe public todineat RBW as it appeals to the present values the public upholds. o Behavioural SegmentationOne of the factors in behavioural Segmentation is purchase occasion. In the case of both Crust and RBW, they have targeteda demographic ofhigh income earnersand this haslead toan escalatingchanceof increasing their ear nings. Since pizzas and burgers are the most favorable food for parties, gatherings and meals,the public is guaranteedto purchase these foods on a frequent basis. But consumers may have different attitudes towards Crust and RBW. The Crust has been well-known as apersonality driven culture whereas the RBW has negative aspects associated with their food chainsince they failed with some launch tactics such as brochure handouts and a free burger day.With knowledge of such aspects, the public will most likely respond accordingly and think twice about RBW and its few slip-ups. 2 Target market For target market there are several different strategies undifferentiated marketing, differentiated marketing and concentrated marketing. Firstly, undifferentiated marketing is to ignore the specific market segments and approach the whole market with one market offer. Secondly, differentiated marketing is a marketing that determines to target several market segments and design separate offers for ea ch. Lastly, concentrated marketing is choosing one large market or few submarkets. It clearly shows that bothCrust and RWB are concentrated marketers since concentrated marketing provides a meansfor small firms to compete against other larger companies and to gain a foothold in the food industry. 3 Market positioning Market positioning is the final part of step, involving developing a positioning for the target market, followed by the marketing mix. Crust pizza positioned their stores to be attractive to the market outlined. The relatively high price per pizza reflects their positioning as a gourmet pizza restaurant, though offering delivery services as well to expand the reach of their business. The restraint ambiance and staff trained in customer service helps differentiate Crust as a higher class of dining than its competitors.Its certification by the national heart foundation also gives proof to its claims of healthy pizza, swaying those skeptical of those marketing gimmicks and again differentiating it from competitors. RBW however, positioned both physically and otherwise to be in direct competition with existing fast food outlets. Located in a part of London where price is the defining factor, it is similar in price to McDonalds, contradicting its projected image of gourmet burgers. Customers have also commented that the shop feels similar to burger king, losing the perception of healthy food, and thus customers. Unlike crust, its burgers are not certified as healthy, though its stating of nutritional values of its burgers is a positive move, similar actions by McDonalds and other fast food outlets dilutes the impact of that move.Had it gone with its initial location at a more high priced part of London, the outcome may be very different. CONCLUSION In conclusion, there are a number of factors that determine the success or failure of a business such as those of a gourmet fast food such as RBW and Crust pizza. These factors range from the elements in the marketing strategy to the target market and market positioning, both planned and execution. The importance of these factors can be illustrated by the difference between Crust Pizza and RBW, given the similarity of their environmental and cultural factors. It is RBWs failure to understand the nature of their product and the behavior and influences on their customers that lead to RBWs eventual downfall.Crust pizza, on the other hand, well understood these factors and created an appropriate strategy and focused on the correct target market to claim success. References INTERNET Crust website, http//www. crust. com. au/ Momentary Musings, http//shansenta. blogspot. com/2006_10_01_archive. html Wikinvest, http//www. wikinvest. com/stock/Wendy%27s_International_%28WEN%29 BOOK Kotler P, Adam, S, Denize S, & Armstrong, G. , 2009,. Principles of Marketing, 4th ed, Pearson Education. Australia, Frenchs Forest, NSW Figure1. Market shares of the Major Players in the Fast Food Industry http//ww w. wikinvest. com/stock/Wendy%27s_International_%28WEN%29 Figure2. Pie chart of Consumer behaviour on Frequency of Fast Food http//shansenta. blogspot. com/2006_10_01_archive. html