Situation Analysis
Marketing refers to the activities an organization undertake intending to promote and sell product in the respective market. In other words, it is the process in which companies offer their services intending to add value to their respective customers (Bonaparte, 2019). As a marketing consultant, it is crucial to provide better insight about launching the product to make it successful. The present report is based upon Zeptic which manufactures the vending machine in the UK. Furthermore, the company wants to introduce healthy vending machines for every age group with a lottery ticket for every purchase. Along with this, internal and external analysis to understand the market environment helps organizations to effectively launch the brand in the market. Along with this, PESTLE analysis is done to identify the external situation and porter’s five forces to analyse competitor strategy. Besides this, launching strategy and STP method are used to understand the market as this provides a better objective to successfully implement its positioning in the market.
Market analysis is an important process while launching the product as this helps in analysing the trend and allows management to frame policies accordingly. In addition to this, this strategy allows organizations to keep ahead of the competition and manage to overcome challenges respectively. In the fast-changing environment, Zeptic needs to launch its product according to time as this helps in creating a better brand image in the market. Along with this, it also gets to know about the respective player in the market and their strategy which help in providing better opportunities to make improvements respectively. To analyse the situation company, need to use PESTEL to have an idea about the external market.
Political factor: This factor consists of different rules and policies which are associated with food and beverages vending machines. In the case of Zeptic is trying to launching is the product in the market by adding a lottery system for every purchase (Hopkins et al., 2020). However, the UK government is supportive of new business as this help in providing better opportunity to establish the product in the market. Along with this, the country has a stable political system as this helps in creating effective strategies based which help in improving the current vending machine business. Organization requires to comply with all the norms and guidelines of the government as this help in conducting business smoothly.
Economical: This provides crucial information regarding the country’s inflation, recession and consumer purchasing power. It has been identified that the United Kingdom is economically developed this helps company to expand its business to earn more profit. Furthermore, in vending machine business, there is high competition as this become important for the company to launch their brand to attract a larger audience (Shaukat, 2021). In the UK the price fluctuation and local as well as international markets are limited as this makes it economically feasible for the company to operate business activities effectively. Apart from this, the government eased policy support organizations to launch their product in the market. However, the shift in the economy which is moving towards manufacturing and service provides a competitive advantage for growth.
PESTLE for Zeptic vending machine
Social: This indicates the people’s beliefs, social norms, education and background which determine the marketplace. It has been identified that most UK people are open to innovation and adopt new products and services easily. This facilitated Zeptic to launch their vending machines to increase sales and profit (Ning & Villas-Boas, 2022). However, using a lottery system and offering a healthy option in the vending machine allows an organization to sustain itself in the market. Along with this, the marketing team need to identify the need of the customers by conducting proper market research to analyse the mindset of the people. As people are health conscious this provides a better opportunity to increase products like healthy drinks and food which help to attract every age group.
Technological: This factor determines the level of innovation in the respective country as this facilitate organization to meet objective. This indicates the level of acceptance of technology in society and how people at individual level. In the case of the UK, people are highly positive about innovation as this provides a healthy environment for conducting business (Sheina, Kurdyumov & Zavyalova, 2021). Zeptic needs to make improvements to vending machines to make them more attractive. For example, making an animated vending machine for children will be more appealing and help in increasing sales. In addition to this, investing more in innovation is important as these overcome rivals from the market and help in capturing a large market share.
Legal: This determines the various rules and regulations which are made by the government for a vending machine. The management needs to meet all the regulations which are associated with the vending machine operation to avoid future risk and uncertainty. Along with this, Zeptic needs to meet the health and safety law of the country as this helps in creating trust and brand image in the minds of customers. During launching the product, it is important to focus on transparency for fair and consistent decision making and improving the overall objective. However, it is also crucial to acknowledge the law regarding monopoly and restrictive trade policies as a new player in vending machines to avoid unethical trade practices.
Environmental: This came recently into the picture due to rising concern about climate change by the different countries. The management of Zeptic vending machines needs to focus on reducing carbon footprint and contributing to a healthier environment (Mansour, 2021). However, the government of the UK is constantly focusing on a sustainable business environment as this helps in providing a better future respectively. The use of solar power vending machine is an effective option as this saves a lot of energy used to keep the product fresh. Apart from this, indulge in corporate social responsibilities to support and upliftment of society.
Porter’s five forces strategy for Zeptic vending machine
While launching the product, it becomes important for the company to identify the competitor’s strategy as this helps in making an effective plan to overcome problems. Along with this, it enables to set price competitively and help to respond to rival as well as marketing campaign to achieve desired objectives. Such information facilitates management to effectively create a marketing strategy and take advantage of competitors’ weaknesses and improve business performance. Porter’s five force model is used to explain the competitor’s strategy and make an effective plan to successfully launch a new product.
Competition rivalry: This force determines how intense is the competition present in the market. It consists of a strategy used by the rivals to expand business respectively. In the case of Zeptic, there is a high risk as there is intense competition in the vending business. To overcome the problem, the management needs to launch their product as this helps in attracting more customer base (Bunea, 2019). The marketing team need to implement a lottery system as is a unique strategy for vending machines as this motivates people to use them often. Apart from this, installing the machine at a different location as helps in branding the product and increases sales.
Bargaining power of supplier: This helps in analysing how supplier develops a monopoly in the respective business. This is essential for the management of Zeptic to provide better opportunities and make policies which to overcome problems (Fayvishenko, 2018). For instance, the production department needs to hire multiple suppliers as this helps in reducing the monopoly of the supplier. In addition to this, it also facilitates the company to maintain demand and supply and offer products and services at a lower price. Hence, the bargaining power of suppliers is low as there are a different number of suppliers present in the market.
Bargaining power of customers: This factor determines the power of consumers and affects the price of the product. It has a high power index for end-users as there are other options present for customers for a vending machine. To retain loyal customers, the Zeptic vending machine needs to implement new strategies like a lottery system for launching its product in the market. Such a marketing strategy allows a company to will help in attracting more customers respectively (Olsen et al., 2022). Along with this, using a better approach like offering healthy options will capture a large audience of different ages.
Porter five forces
The threat of new entrants: The company needs to identify rivals in the market by conducting proper market research. This threat of new entrants is high as many players are entering the business intending to earn more profit. To launch the product in the existing market, it is important to conduct proper research about the competitor’s strategy to formulate a plan to launch a product in the market. However, there are different barriers which include cost advantage, access to inputs as well as economies of scale.
The threat of substitute product and service: This describes how easy for the consumer to switch to the product or service. To examine the number of competitors, price and quality need to be compared on a timely basis as this helps in increasing the overall objective respectively. In the case of Zeptic is vital for the management to focus on pricing and make strategies like offering healthy products in vending machines to reduce the threat of substitutes. Use of technology and try to innovate the product offering as this helps in achieving success and provides a chance to expand the business to new boundaries.
It is vital for Zeptic management to need to determine the objective as this helps employees as well as management to achieve a common goal. In this competitive environment, determining the rival’s plan and take initiative to offer high-quality service to consumer helps an organization sustain itself in the market for the long run. While launching the product, the marketing team need to make sure to add value to the product as this will facilitate capturing a large market share. Here are some of the objectives of the company which are explained briefly below:
- To increase the sales of vending machines by 10% in the coming 12 months.
- To launch the product and offer satisfactory service to consumers.
- Capture market share in the entire UK and increase profit by 5% in 1 year.
Specific: To goal effective, the company needs to make objectives that are specific and clear. For Zeptic upper-level management need to ensure to take responsibility in developing goals by having proper communication with the employees. For instance, the company set to increase sales of the vending machine by 10%, in this case, management needs to make sure that every worker is aware of the objective and it needs to be achieved effectively. However, management can use mail to provide such information to employees to make it more specific.
Measurable: It is one of the important factors of setting up a smart objective as the management needs to ensure that, the objective need is measurable to make it real. Along with this, it makes it easier to track the progress and guide leaders to move in the right direction. For Zeptic while launching a product, the target needs to be measurable in terms of number as this facilitates management to evaluate the overall objective. For example, increase the sales of the vending machine by 1000 in the year as this helps to measure the goal in a well-defined manner.
Achievable: The smart objective needs to be achievable as well as attainable as the management need to identify different ways to make objects more realistic. The goal needs to be stretched to make employees feel challenged and define the purpose (Iyer et al., 2019). In the case of Zeptic leaders identify the resources and capability to meet the objective. Hence, this will facilitate management to achieve a goal and make the target more achievable for the entire organization.
Relevant: An effective goal consists of a relevant approach that helps in achieving desired aims and objectives. If it is not relevant, in this case, the scenario objective could be successfully delivered but have no impact on the performance. To overcome the problems, the management of Zeptic needs to make objectives that are relevant and achievable at the respective time. Using sustainable objective is important as this motivates employees to work hard and provide better opportunity to achieve desired objectives.
Time-bound: The company must set a time frame for the specific objective as this helps to measure the goal effectively. Furthermore, it not only provides a sense of urgency but also assists review whether the objective is achieved on time (Camilleri, 2018). For Zeptic to increase the sales of vending machine and launch the product need to be determined through time-bound which tends to make the objective clearer.
To launch a new production company is adopting a launching strategy as this helps in providing a better opportunity to be successful in the market. However, Launching is the marketing strategy where a company brand goes through adjustment and overhaul. This is important for the management to make changes in the product by analysing the market trend (Li, Wang & Nault, 2021). The main purpose behind launching the marketing strategy is to attract more people by offering more viable options. Furthermore, in this, strategy the product changes and target remain the same. To sustain business for one year, management need to focus on retaining skilled employees as they are innovative which help company to sustain in the market for the respective time period. Taking effective decision regarding vending machine assist Zeptic to overcome challenges which are associated with sustaining the in the market for the year. There is a different option for vending machines in the entire UK as they only provide fast food which is unhealthy. To launch the company image, Zeptic management is trying to offer healthy products like juice, protein shake and high vitamin chocolate bars to the customers.
In addition to this, the company is also trying to provide a lottery for every purchase this will help in attracting more customers and increase profit share respectively. . At early stage, company will keep the price low as this help to attract more customers. Marketing team will focus on promoting the product and its features to the customers. Such strategy allow company to sustain in the business for longer and able to expand business effectively. Company needs to use effective leadership as this assist management to move in right direction and work effectively towards the goal of sustainability. One of the effective strategies used by the management is to take feedback from the customers regarding vending machine and make changes to offer better services. Through this, Zeptic will able to eliminate future risk and sustain in business for a year. To effectively launch the product in the market, the company is using the Bowman clock strategy as this helps to implement strategies more effectively
It is a comprehensive way to identify and map out the product position in the respective marketplace. With this understanding, management can effectively pursue the change and improve competitiveness. For Zeptic it is vital to use effective strategy as this help in providing better opportunity to achieve desired aims and objective respectively (Tleuberdinova & Zhussupgazina, 2021). However, this model tends to increase the overall productivity and facilitate management to launch the product to increase sales. Here is a detailed explanation of this model as this assists in demonstrating the wide range of options to overcome problems.
Low price and low value-added: In this, the firm tends to keep the price relatively low as this is considered an effective method to compete in the market. As there are various rivals present in the vending machine as it becomes important for Zeptic to launch the product with a new offering to the customers (Gilpatric & Li, 2021). For instance, management needs to focus on increasing high-quality products and increasing healthy items like protein bars and juices. Using such an approach will facilitate management to increase the overall brand image. The price of products and service offerings needs to be low at the initial stage as this strategy will attract more customers and create a larger customer base. However, the company should offer a product at a low price with limited value as this helps in achieving a breakeven point and provide an effective approach towards development.
Low price: To keep the price low for the product companies often produce a product in large scale quantities. However, the company sell their product at a lower level as this leads to a low-profit margin for the individual product. This facilitates high output volume as the company tends to generate huge profits (Kian Mehr et al., 2021). In the case of Zeptic marketing team make sure to cut down the price as this strategy allow management to capture a large market share. With the commodity, companies tend to engage in price wars to retain the market share. Maintaining vending machines is expensive as the use of solar power will save costs and overcome the problem of pricing.
Hybrid: This strategy is effective if the company can clearly articulate the added value and offer the products at a consistent quality on regular basis. In other words, it is also considered to have a mixed approach to overcome the problem and it is an effective way to launch the brand in the market. In the case of Zeptic management need to focus on offering product at a reasonable price with some innovation as this help in increasing sales of vending machine respectively. For instance, a company can offer lottery-like money or extra item for every purchase as this help in achieving desired aims and objective. However, this strategy is successful in convincing that the organization is providing better products and services to customers.
Differentiation: This is considered one of the most effective ways to launch the product in the respective market. The prime objective is to provide consumers with the maximum level of perceived value and offer better service to overcome problems (Baron, 2021). For Zeptic vending machines, it is vital to differentiate the product from rivals to a unique image. However, in the UK market vending machines are common as using better approaches like offering free products if customers use the product often. It also helps in creating a brand image and can retain customers in long run.
Focus differentiation: It targets the position of the product or service at the utmost price level, and the company objective is to keep the price low (Kostelijk & Alsem, 2020). The organization often charges high prices to target customers as they are willing to pay more for the respective customers. Zeptic management needs to offer high-quality service to create better differentiation products to attract more customers. Furthermore, competitors are similar in the market segment as choosing a unique approach will allow organizations to earn more profit respectively.
Risk high margins: As the name suggests, it is a higher risk positioning strategy as this requires proper planning to achieve desired objectives. In this, offering something new is perceived as a new value for the customers. For Zeptic marketing department require to conduct proper market research to identify current trends in vending machines and make changes to make launching successful. However, developing a long term strategy is important as this helps in increasing desired outcomes.
Monopoly policy: The company enjoys a monopoly by effective launching the product in the market. This strategy makes people reliant on the company’s products and services (Tookanlou & Wong, 2020). As result, monopoly pricing has been considered an effective way to earn more profit like this. One of the major advantages for Zeptic is to set prices as per need as well as increase market share respectively. This is vital for the management need to focus on building brand image and provide better opportunities to develop loyal customers for a long time.
Loss of market share: It is the last stage of Bowman’s strategy companies have a monopoly that is not permanent as other rivals present in the market. To overcome the situation either the company lower the price or launches the product to create effectiveness in the market. In the case of Zeptic marketing experts need to conduct research in the respective time frame to identify changes to overcome problems. However, this strategy can be effective in the short term as creating a plan is vital to limit loss in the market share.
Zeptic needs to know the customers as this helps in offering a new experience to customers as this helps increase respective market share. This is vital to achieve desired outcomes and save costs for the organization by identifying customer needs and preferences. To gain such information, management needs to conduct proper research to understand customers and provide them satisfactory service. Here STP model is used as this helps in determining the current positioning as well as its consumers.
STP of Zeptic
Segmentation: This is important for the brand to divide the customers on the basic demographic and geography as this helps in determining the customer base. For Zeptic management can determine the need and improve in offering to overcome the problems. For example, if the company wants to install a new vending machine in the respective area it is vital to segment the product based on age group from 22 to 5. This strategy allows a company to get a better return on investment and increase market share. Besides this, management needs to identify the perception of the customers as this improves customer satisfaction and effectively helps in launching the image in the market (Gammoh, Koh & Okoroafo, 2019).
Target: The next step is to identify the group which helps in expanding the business and provides a better opportunity to sustain in the market. This is vital to determine the customer as this help in offering high-quality product and service in the market (Whatnall, Patterson & Hutchesson, 2020). For example, Zeptic can target customers based on age group from 20 to 50 as they are health conscious. Apart from this, the company need to partner up with different restaurant and gym as this strategy allow it to capture a large market share. However, analysing the size is important as this provides an idea to improve the supply chain and maintain demand respectively.
Positioning: The company needs to know about the current market position as this helps in identifying the core strength effectively. This is essential for the management to focus on improving the brand image in the market as this facilitates establishing the product to a larger audience (Kirchoff, Abadia & Palacios, 2021). For example, Zeptic takes the help of social media like Instagram and Facebook as this promotes the new offering of the product. To avoid competition, management needs to improve its quality and provide an opportunity to increase market share which increases the overall objective. This strategy facilitates managing resources and improves customer experience.
Taking effective measures and control policy help in increasing the overall objective of launching the brand effectively. For Zeptic it is vital to focus to identify the needs of the customers as well as figuring out new trends as this provides an ideal company’s position. Along with this, it also increases overall efficiency and tends to improve the vending machine by introducing solar-powered machines which are eco-friendly for the environment (Kim et al., 2021). To launch the product, the company need to improve its marketing strategy and provide a new offering that helps in attracting more customers. To measure the performance, the company need to identify the sales and market share as this provides information that helps in increasing the overall objective and provides a better opportunity to meet a common goal. For effective control measures, management needs to take feedback from the customers as this provides information regarding drawbacks and areas for improvement. Hence, it is vital to make changes as this improves the quality of offering products and services effectively.
Conclusion
From the above-stated report, it has been identified that launching the product is complex as this requires proper analysis to meet the desired goal. However, the company need to figure out the political and economic impact as they are important to conduct business activities smoothly. An organization need to follow rules and regulation as per the government as this help in building trust among people. It has been concluded that firm needs to hire different suppliers as this facilitates overcoming monopoly and improves the supply of vending machine to their respective destination. Keeping the price low is crucial at the initial stage as this attracts more audience which also reduces competitors’ impact on the respective business. Taking effective control measures is important to identify the current changes and offer high-quality services to consumers.
References
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