Benihana Case Study

foodstuff Management Class Notes 1/16/13 Markets * Consumer merchandiseB2C * Business merchandiseB2B * Global market (? ) * Not-for-profit marketmust have higher revenues than address to survive * ex health-care hospitals need 7% more revenues than expenses to survive * Government market Core Concepts * needs, wants, and demands * segmentation, target markets, positioning * offerings and imperfections value and satisfaction * relationship marketing * marketing channels * supply kitchen stove * competition * marketing environment Marketing mix4 Ps * producegood, service, idea, experience, place, person, etc. * Priceabove, at, or below market * Placeretail location, channel of distribution * Promotionadvertising, personal selling, sales promotion, PR/publicity Shifts in marketing management in past marketing does marketing now everyone does marketing * organized by crossing units now organizing by customer segments * using umteen suppliers now using fewer suppliers who are p artners * ex Wal-Mart and Procter & Gamble pampersno longer places orders for pampers now P&G brand manager manages Wal-Mart shelf of pampers * emphasizing tangible assets now emphasizing intangible assets * building brands through advertising now building brand through performance and integrated communication * good experience=tell 5 former(a) people ad experience=tell 9 other people * now even more permanent with online ratings * shotgun (dispersed) v. rifle (accurate) * avoid shotgun (avoid bristleing product/service that would appeal to everybody) * relying on darkened markets now uncovering new markets * concentrate oning on profitable transactions now customer lifetime value * major goals of increasing revenue and market piece v. now must be responsible for return on marketing investment (ROMI) * local now glocal (local and global) * focus on shareholders now focus on stakeholders What do marketers do? develop marketing strategies and plans * generate/collect marketing inf o (research) * connect w/ customers * develop market offerings * build brands * preservation and communicate value * create long-term harvest * ex ivory 1879 and still going New Marketing capabilities * use of internet for info and sales * easily gather info about * customers, prospects, markets, competitors * social media * facilitate and speed communication w/ customers * personal marketing (thru email) * mobile marketing for customers on the go * mass customization * bit of an oxi-moron * ex Levis jeans made to size measurements use internet internally and for other than marketing Evolution of the Marketing Concept * takings Conceptproduction efficiency, low costs, mass dist. consumers want the most quality, performance, or innovative features (more, go against, faster) * Stool made in cottage industryindividuals made them at home w/ tools on handindustrial revolutionfactories, standards, conformity, production concept emerged * Selling Conceptconsumers will buy only if the company aggressively promotes/sells these products * Too many stools produced and no one is buying themhow to sell them? must aggressively sell and advertise * Marketing Conceptfocuses on needs/wants of target markets and delivering value better than competitors * Quit reservation stools that people dont need or want * must determine how many stools the customer wants first before making them * The Marketing ConceptsThree Pillars * Customer orientation * Integrated marketing effort** * Table 1. 1 on p. 23 * integrated w/ other departments b/c marketing interacts w/ customers * Emphasis on profitable sales (not all sales are worth pursuing) * Pillsbury Ex 1. We occupy flourhow do we make the flour faster and better * 2. We sell flourhired sales people and started advertising * 3. What do customers want that has flour in itexpanded product lines Burger Kinghamburger buns, pie shops, refrigerated dough products Ch. 2 Developing Marketing Strategies and computer programmes * Valuethe totality of features and characteristics of a product or service compared to its costs * Determinant of Cust0mer Values * Customer perceived value * total customer value * Image value * Personal value * function value * product value vs. total customer cost * Monetary cost * time cost * energy cost * psychic cost * in mindinstantly assessing value and weighing it against cost Creating value * satisfy needs * more than one org * functions of marketing creates value Generic value chainlink in chain consists of * Primary activities inbound logistics, operations, out-bound logistics, marketing and sales, service * support activities firm infrastructure, HR management, technology development, procurement (purchasing) * margin-includes profitability Ex Levi Jeans Value-Delivery mesh topology Dupont fibersMilliken fabricsLevis apparelSears retailcustomer * each is a link in the value chain When value is not provided * lost sale * lost customerCLV (accounting for the human body of years person would have been a customer) Competitive Advantagesomething a co. has that no other co. has * achieved through * 1. core competenciessource of comp. advantage, application in wide variety of markets, and difficult for competitors to sham * 2. distinctive capabilitiesexcellence in broad business practices * involve multiple levels of people ex ability to innovate, ability to reckon your customer, understanding the market Marketing goal=competitive advantage * must be something significant to customers * important in a variety of markets * difficult to imitate Strategic planning * Corp. Mission * Marketing Myopiasee close but dont see far away * Railroads thought they were in the railroad business, had they realized they were in the transportation business they could have expanded line to auto or plane * What business are we in? * offshoot opportunities * growth matrix * SBUStrategic Business Unit * ResourcesS/W AssessmentO/T * goalsstrategies to achieve goalstactical plans to achieve strategies Good Mission report * exs in the book Table 2. 5 * identify * target customers and markets * principle services delivered * org. philosophy * desired self/public image * Mission statementwhat the co. does Vision statementhope for future Goals and Objectives * goalsumbrella hierarchical (at different levels) * provide broad direction * objectivesSMART * Specific * measurable * Actionable * Realistic * Time boundfor marketing plan, usually a year * for new product, maybe 6 months Porters Generic Strategies * 1.Overall cost leadershiplow cost provider can make stuff at the lowest cost (will have higher margins and more choices) * 2. Differentiationdevelop competitive advantages that are diff. from competition * Focussegment * niche market focus that has either overall cost leadership or differentiations Ansoffs Product/Market Expansion Grid Existing products New products Existing markets Market Penetration * advertising, lowering price, increasing sales perso nnel, * take existing pie of market share and try to get bigger piece of the pie Product development New markets Market development * ex co. hat made lawnmowers B2B (golf courses) decided they could sell those lawnmowers to consumers variegation Boston Consulting Groups Growth Share Matrix Relatively high market share Relatively low market share exalted market growth rate Stars Question marks (aka problem childrendont know how they are going to turn out) Low market growth rate Cash cowsproducts youve had for a relatively long time but they have slow growth Ex Coke for Coca-Cola Dogs ImplementationplansEvaluation and maintain * Set objectives (to be measured) * measure performance against objectives * understand deviationswhy didnt you achieve what you set out to achieve * set new objectives Marketing Plan Parts * Exec. Summary * Table of Contents * Situational Analysis External Analysis * Situational Analysis internal analysis * SWOT critical success factors * Goals/objectives * Strategy4 Ps * Action programs * Financial implications * Controls Case Analysisslides being sent via email