Situation analysis
The report mainly focuses on the internal scenario of the restaurant named the Malaysia restaurant. The aim of the report is analyze the situation analysis of the restaurant. It further includes the situation analysis of the restaurant and the stages of the product lifecycle. It also includes the BCG matrix and an Andsoff analysis. The report further consists of the strategic outcome based on the three analysis that has been done. At the end of the report, there are recommendations for the future of the company based on the pricing of the same and the promotional strategies. An effective strategy has been suggested towards the end for the development of the products. It also includes the pricing strategy and an effective development plan for the same. The entire report comprises of the effective strategy to develop the restaurant in all of the aspects.
The Malaysia restaurant is located in the Queensland, which is in the suburb area of Australia. The restaurant is placed in such a location where the income of the people is comparatively less. Maximum people in that area belong to the middle-class. It is therefore a problem for the people of that area to afford costly items of food. However, it has been opined by Metzger that the restaurant has lots of club around it, which helps in the increase of the customers. Apart from this the promotional events of the restaurant is comparatively less (Metzger, 2014). The problem can however be solved by making effective promotions of their restaurant. The restaurant has a stable condition for the past twenty-five years. They have made no effort to promote their restaurant in the past years. It has not been able to enjoy the dominance of the market and the system of monopoly because of the other businesses that focuses on the setting up of their operations along with the Fitzroy River and the Central part but it is predicted that even they will identify the attractions of the public before expanding their locality. Though the location has remained a problem apart from this the factor brings out the need to develop a strategic plan of expansion by the directors to increase the turn over and the yearly profits to make sure the development of a stable working environment (Li et al., 2015).
The product life cycle stage includes four clear stages. The initial stage is the introduction stage, which includes the introduction of the product in the market. In this case, the Malaysia restaurant was not that successful when it came in the market. The restaurant was slowly gained the popularity after few years. This is common for all the companies. The introductory stage is vital for all the companies. It is expensive as well as the company has to do heavy investment. The Malaysian restaurant had to make huge investment. The market was low for the same. Due to this, the sales are initially low. Restaurant has always been a competitive sector. In the introductory period, it was difficult for the restaurant to experience a successful sale (Kuimov&Kuimov, 2017).
Stages of product lifecycle
The second stage in the product life cycle stage is the growth stage. This stage is characterized as the stage where the company experiences a growth in the sales and the profits. The reason behind this is that the company makes profit from the economies of the sale of the products. The Malaysia restaurant went through this stage. While the company went through this stage, it was able to make some money that made it possible for them to invest more capital in the company The restaurant slowly started to become popular in this stage (Kotler, Berger & Bickhoff, 2016).
The third stage in this cycle is the maturity stage. The Malaysian restaurant was at a peak after few years. The maturity stage indicates the stage where the product is able to establish itself in the market. The restaurant was able to make profit in the market and they were able to set a competition in the market for themselves. During their maturity stage, they experienced full profit. By doing a Google search, it was found that Malaysia Hut Restaurant was located in North Rockhampton. All the competitor restaurants were found in the south Rockhampton. The closest competitor were mainly located approximately 1.5km from the Malaysian Hut Restaurant which is located in the far north of Rockhampton. It has been found that Malaysian Hut Restaurant is the only restaurant in that area This made the restaurant a monopolizing business in that entire area. In the growth stage the restaurant was able to gain a stable condition (Kim, et al., 2015).
The final stage of this process is the decline stage. In this stage, the market for any particular product starts to shrink gradually. The shrinkage is due to the market, which starts becoming saturated. In this case, the customers of the Malaysian Hut Restaurant slowly started to shift their taste to some other restaurants. The decline cannot be stopped but it can be controlled (Xia, et al., 2015). The restaurant has reached the decline stage after twenty-five years. The company should have focused in the promotions and the modern technologies. The operations should have been improved. The decline stage of the company is due to the cost cutting and the failure in proper advertising and marketing strategy. this process has resulted in the failings of the business of the restaurant, which majorly affected the business operations, growth and profitability (Jenkins & Williamson, 2015).
Brand positioning map
Based on the diagram this can commented that the position of the restaurant is towards the higher quality and lower price (Shaw & Goodrich, 2014). The quality of food of the restaurant is high but it has kept a reasonable price of the foods. The restaurant is located in Queensland, which is a suburb of Australia. The people in this region belong to the middle class family. It is not possible for all the people to afford cuisines of high price. This is the reason the price of the cuisines are reasonable enough for all the people. The variety of foods is large falling under different price range. It allows the business to target the multiple customer groups that helps to increase the sale, which are made during the short working period (Grünig& Morschett, 2017). The quality of food is high and it is maintained as the owners know that the customers come to their restaurant to have good quality food. The quality of food should be maintained as the brand image depends upon the quality of foods. The restaurant offers the different combo meals that make the food more reasonable. Customers usually look for reasonable but quality food. There are many restaurants that offers reasonable foods but the quality is not that good (Rudnick & Vagner, 2014). The reverse things happen as well. The quality of the vegetables, the quality of the ingredients of the food has always remained of the best quality, which was used by the owners of the restaurant. Therefore, the business diagram above showed the placement of the restaurant in the section of high quality with low price (Gould, Missimer & Mesquita, 2017).
The above figure shows the four aspects of BCG matrix. The four aspects include the question mark, the stars, the question mark, the cash cows and the dogs. In order to increase the high market growth of the restaurant, it should focus on the food items and the food quality as well as the price. This is the way it can have a high market growth. In order to have the high relative market share the restaurant must introduce the customized food menu to give competition to the competitors (Gmelin & Seuring, 2014).
In the next aspect that is the question marks, the restaurant must maintain the price and the quality and to avoid the low relative market revenue, the restaurant must think strategies to increase the sales and the promotion of the restaurant. This will increase the sale of the restaurant and therefore the revenue of the restaurant will increase.
Marketing objectives
The next aspect is the cash cows where the restaurant shall focus on the quality and the sale strategy to avoid low market growth. On the other hand, to have the high relative market share the restaurant must think about the competitors and should come up with better plans than they should (Campbell, 2017).
The final aspect is the low market share and the low relative revenue. This is the worst condition a company can suffer. The company will be in the complete stage of declination in this stage. The restaurant must take special care about the customers in this case and the company should formulate the effective strategies in this case. The declination might occur because of many reasons. The quality gets hampered, the quantity gets affected, the poor marketing and promotional strategy (Cabeza, et al., 2014).
The better positioning of the program can be determined by another program that is the Ansoff Matrix analysis. This process determines the growth of the product. This tool is used as a marketing plan which serves to determine the product growth and market growth of a company. It includes the market penetration, product development, market development, diversification and the analysis penetration. In the case of the Malaysia Hut Restaurant, the cuisine of the restaurant contains the typical Australian cuisine. The restaurant can plan cuisine of some other kind. The Australian cuisine is already famous in the Australian market (Oonincx & De Boer, 2012). It should come up with some other kinds of food that are not common to the people. Apart from the existing cuisine the restaurant must make efforts to bring about customized cuisine to gain a good position in the market. The market development is another factor that includes the segmentation of the market for the restaurant which should have effective strategy for the products of the same (Vignali, 2015).
Based on the reports of the product life cycle, BCG matrix and the Ansoff analysis few marketing objectives can be drawn which will be helpful for the growth of the restaurant. It was important for the restaurant to make efforts for the promotion of their restaurant and bring a change in the cuisine of the restaurant. The important marketing objective for the restaurant was to focus on the variety and the range of the products and it should concentrate on the ways of increasing the revenue. The final objective that the restaurant should follow is the strategy of promoting and selling of the new products. The restaurant must focus both on related and unrelated diversification. The restaurant should focus on products of other genre as well, like apart from the main courses it should focus on the cookies and cakes as well (Accorsi, et al., 2015).
Brand positioning strategy
The four strategies based on the objectives should be
- The restaurant should take initiative to distribute the pamphlets of the cuisines of the restaurant with the daily newspapers.
- The restaurant should offer special combos that could attract more customers.
- The restaurant should give special discounts to the patent customers of the restaurant.
- The owners of the restaurant should take efforts to open new outlets.
The restaurant must take the initiative to take the regular feedbacks from the customers. The restaurant has made lot of investment so it should check whether the raw materials are not wasted. The owners of the restaurant must ensure on the quality service.
Conclusion
From the above report this can be concluded that for the better sale and an increase in the revenue of the Malaysia Hut Restaurant the above mentioned strategy should be maintained. The different strategies that have been described are all an effective ones and with the application of such policies the restaurant can increase the market scope and the revenue of the restaurant. It is located in a densely populated region which decreases the competition for the same. The application of the strategies will make the restaurant more popular and successful.
References
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