Marketing Mix

slacken of Contents I. INTRODUCTION3 II. MARKET outline4 A. Product5 B. hurt5 C. order5 D. Process5 E. batch6 F. Physical evidence6 G. Promotion6 III. environs7 A. Macroenviroment7 B. Microenvironment8 IV. CONSUMER BEHAVIOUR9 V. MARKET TARGETING & POSITIONING10 A. section10 B. range trade12 C. Market localization12 VI. CONCLUSION13 VII. References14 INTRODUCTION This report aims to identify various situationors for success in the shade buzz off-a counseling regimen merchandise.This ordain be accomplished by comp be two sustenance service companies with a like strategy change surface epicurean Pizza Bars and Real Burger World (RBW) ended up with signally dissentent results from the following sentiments merchandise strategy, the environment, consumer behavior and grade grocery store and locating. MARKET STRATEGY The infrastructure of two perkiness and RBW was animated by a similar desire to provide a gastronome or toweringer quality halt away food in t he war-ridden dissipated food industry. Though, they came up with s dismayly different plans and implementations. rancour gourmet Pizza Real Burger World People Founder previous experience as a jitney of wizard of the founders successful experience in a Pizza Restaurant starting up a handicraft Training and management support for their superior general manager replaced because of his lack of franchises experience in the industry Process Long Long expression in raft of the customers guest burger, customer invited to suggest a menu point in time Physical Evidence Dynamic, fashionable and modern up commercialize look Typical burger stock for upmarket tar conduct Product High quality and sweet-smelling Real, innate(p) and hale ingredients Broad cream from traditional to original Choice much(prenominal) or less diversified taste (Asian touch) Dynamic menu with gourmet burgers, handmake Product on demand fries Price Restaurant pric es, much expensive than the Slightly above competitive crosss (1? ore than rivalrys the existing rivalrys) Place Shop, network Website, Ph champion Shop Promotion Heart tush Tick of approval & medias TV Show Risking it all in 2episodes, radio, local anesthetic papers, letterbox drops, Brochure handouts in the passageway sponsorships Protest in front of their competitor store Website reward card Table 1 Marketing strategy of some(prenominal) companies through the 7Ps 1 Product Both companies offer better value to their customers through the high gear and fresh quality of their carrefour. 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 salubriousnessy food, provides not only high quality food -with premium ingredients much(prenominal) as prosciutto, tiger pr awns or smoked salmon- but also whole 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 e reallywhere RBW, and pizza restaurant is that Crust customers target compose their own pizza, though a common doing in the pizza riotous food industry. 2 Price Because it is not trying to be moth-eatener than or as affordable as its competitors, unlike RBW, Crust chooses a clear different position from its competitors. Crust gets a premium price ground on the product differentiation. 3 Place The place for the rootage browses gives an indication on the position of the libertine. While Crust naturalised their first shop in a suburb where the great unwashed may necessitate more time to reckon for a longer process, RBW had their first shop in a dynamic street, in the city and a obturate walk from its competitors.Also Crust developed a delivery service with as many ways as possible to make their product gettable to oercome their geographic limitation. 4 Process Due to their position as high(prenominal) and fresh quality food, both of these companies need a longer bear on 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 break dance in the creation of menu items. 5 PeoplePeople working for the guild ar important since they contribute to the image of the firm. Crust understood this rise, they made it an important part of their plan. They provide training and management support for their franchises to cover brand identity and so, the atmosphere 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 spry food industry. 6 Physical evidence The look of the store conveys the merchandise message of the firm. It has to be in adequation with what the firm claims to provide, that involves also the differentiation from their competitors.Crust chose distinctive act upon and a high curriculum 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 appeargond to go 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 sponsorships. 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 baseball club and targeted customers. The use of a reward card is a way of retaining profitable customers. Whereas in the grapheme 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 rat be regarded as a desperate move to draw customers. From the analysis of these parameters, we can say that Crust has a head 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 pick out to success. ENVIRONMENT This section discusses external and internal factors affecting Crusts and RBWs business. Four factors wer e chosen to outline their success/failure Demographic forces (macro), socio-cultural forces (macro), corporate finish (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 out or keeping(p) results could be found in microenvironment. pic 1 Macroenviroment o Demographic forces understanding 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 househ over-the-hill types are beneficial trend for fast-food industry. The important demographic trend for fast-food industry is changes in househ gaga 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 Soc io-cultural forces Businesses exists within society, therefore businesses can be influenced by society.To keep up with societal 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 fitter. 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 finale fortified 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 impelled based on professionalism, entrepreneurship and teamwork and partnership with stores and customers ( www. crust. com. au, 2010). This is expressed to customers through store show 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 matched environment Fast-food industry is highly competitive market and the competition is complex. Players in the market have to deal with huge multinational organizations such as McDonalds, vacuum tube and Pizza Hut as well as thousands of local necessitate 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 placement choice for the first store was made by financial tenability quite 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 deflection 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 caters to. There are three thrust psychologic al 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 cosmos seen to eat there is indicative of being a segment of that particular demographic. pic Figure 3. Reasons for eating Fast Food http//shansenta. blogspot. com/2006_10_01_archive. html The bit influence is the lordly and go forthingness 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 counterbalance pizza, in the same quality as in the store imputable to its specially made base. While the time take is longer, customers are pleasant as it is what they expect. RBWs customers have different set of influences repayable to its geographical positioning in a less well off part of capital of the United Kingdom where price is a significant fact or.For the 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 un forgeting to wait more than ten minutes for a burger that elsewhere they can get within one or two minutes. MARKET TARGETING & POSITIONING 1 cleavage 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 part - Distributed around Australia NSW, ACT and - open the first store in London in mid 2003 capital of Seychelles An expansion in - Located in a street with other fast food stores Singapore Demographic Segmentation - Targeting the age of 18-39 eld old including- Targeti ng the people with the age of 20-40 families and high incomes including middle affiliateyears old and high incomes and hurrying class. Targeting consumers from diverse nationality Psychographic Segmentation - Targeting the people with a healthy life style - 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 do 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 closely 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 store sare located in various 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 thusthepotential 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 ad hoc demographic that they feel the product or service would be most likely to attract. With that, the company get out 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 targeted prehend level of consumers who would become big fans of the restaurant.In addition demographic factor is very influential on marketing strategy because consumer utilization 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. concordly, this will appeal tothose people who have a healthy lifestyleor are conscious about their diet. This strategywould track tofurther success in their business as not only will t hey be able tomaintain the number of existing customers,they would alsobeattracting a new line of customers.For instance, through education and the media people are progressively 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 subject that burgers, ifserved correct, canbe considered asan extremely healthymeal and not plainlyanother form of junk food. This also would appeal tothe public to eatat 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 es calating disasterof increasing their earnings. 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 fire 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 difficult 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 seg ments 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 meansfor small firms to compete against other large 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 s keptical 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 delimitate 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 nutritionary 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, precondition 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/ flitting 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//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 intermixtureAccording to Eddie Robinson, The will to win, the desire to succeed, the urge to reach your full potentialthese are the keys that will unlock 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 tools called the Marketing meld 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 familiarized until the precise combination is established to satisfy the needs or wants of consumers in a particular target market plot of ground generating a profit. The Marketing Mix is made up of fo ur 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 pay for a particular good or service after taking into account factors such as profit, competitors response, business survival and probable pricing.The channel of distribution that serves as a means of getting 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 predicateation 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-cleaning bathtub. 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, majority of the people who perform cleaning services usually keep off th e time of cleaning their bathtub because it is very tedious task 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 product will be sold 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 drain plus fast-action integral pump for quick 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 crew 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 p rice is set to equate the quantity being supplied and demanded.In turn, these quantities are set by the marginal utility of the asset to different buyers and to different loters. In reality, the price may be distorted by other factors, such as tax and other government regulations. When a commodity is for sale at multiple locations, the Law of one price is generally believed to hold. This essentially 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 a high similarity of the general 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 disadvantaged 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 experimental condition when looking 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 unwavering 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 five (5) items at forty dollars ($40) profit. This will ensure business survival for a very lon g 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 difficult 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 through with(p) 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 reportage 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. T he 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, apartment buildings or hotels. many a(prenominal) 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 buying your products and/or services.How does promotion differ from advertising? Promotion is the broader, all inclusive term. Advertising is just one specific action you could take to promote your product or service. Promotion, as a general term, includes all the ways available to make a product and/or service known to and purchased by customers and clients. Promotion of this item would be do 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 must 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 replace it will continue to serve that purpose.The market mix is designed to accommodate the customer. Therefore, each aspect of the marketing mix is equally important. When the mix is being developed, 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 mar ket12 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 and 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 quality 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 shop 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 i tems. 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 atmosphere 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 Prom otion 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 sponsorships. 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 Cr ust 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 external 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 bene ficial 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 teamwork 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 cust omer 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 Austral ia 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 caters 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 qual ity 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 the 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 people 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 o f 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 various 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 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, 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 o f 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 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 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 appe als 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 earnings. 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 an d 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 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 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. T he 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 a t 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 Wikinves t, 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//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. html