EAT. (also called EAT Cafe) is a chain of sandwich shops with over 90 branches in the united kingdom, the majority can be found in London, with others in Birmingham, Brighton, Cambridge, Canterbury, London Heathrow International airport (Terminal 3 and 5), Gatwick International airport, Leicester, Manchester, Windsor, Oxford and Edinburgh.
The first shop was opened in Oct 1996 in Villiers Avenue, London, next to Charing Cross railway train station. That shop was Owned or operated and run by couple Niall and Trust MacArthur. The business is comparable to Pret a Manger in so far as all the produce is freshly made. Unlike Pret a Manger, food is ready in a local location and delivered to each cafe every morning. The ready food is also sold in the same day
Its mission is usually to be the main for sandwiches and soups from a united team that is passionate about being the best in the bakery.
For its customer it provides a variety of fresh, great tasting food, made out of quality ingredients. Most of its savories can be purchased fresh from the ovens from its outlets within a day. It markets made by hand sandwich in the outlets every day which is made by highly trained staff.
For its people it is designed to give a Great Place to Work, where its people feel respected, are looked after, and where every individual is recognized as essential to the success of its business. .
Sandwiches: With a variety of sandwiches and baguettes, the interesting collection of fillings includes traditional favorites, typical meals and new twists.
Bread & Cakes: It also provides a range of delicious doughnuts, cakes and scones. Savories: The ever-popular Sausage Spin is still one of its best selling products
Regional Products: In addition, it sells lots of regional products to represent its customer's likes and preferences in several parts of the country.
It has now more than 100 retailers throughout the united kingdom, but bulk in London. It serves over 5 thousands customers every week in their outlets.
7. Business Category:
Over two thirds of its business is at takeaway food - principally sandwiches and savory products like sausage rolls, pies and pasties, plus bakery great lines and refreshments. These product categories have powered the expansion of the group for many years.
8. Operational Performance & Resource Chain Activities:
It is a vertically built-in business which means that it prepares, distributes and provides all its products through local bakeries; its transport network and its own shops. It possesses and performs all aspects of its business from make through to retail and do not franchise any aspect of its operation.
Source: www. eat. co. uk
EAT's vision is to be the main for sandwiches and soups from a united team that is interested in being the best in the bakery. So to achieve this it has to develop a plan by analyzing the following factors:
Macro Environment: It really is a PESTEL Factor which includes the following things:
a. Political Factors: The political environment is steady and reliable in London, even if Britain does not achieve total contract with some EU policies every once in awhile. Currently no EU directives are known that will have a direct effect on the united kingdom food industry in the near future.
b. Inexpensive Factors: The development rate of the food market is currently in a stagnant position because of the economic tough economy. So EAT should be turning over this matter.
c. Public Factors: Nowadays life style is changing. Average working time o f the folks have been decreased and they get more spare time. This means they have time to free time in the food or caf shop.
d. Technological Factors: New technology allows services to be developed. Existing materials can be produced quicker and cheaper. Adopting these technology can be considered a decisive factor concerning whether a company is before his opponents or whether it lags back of.
e. Environmental Factors: The wastages of the food and other things should not be kept any where which can eliminate the balance of the environment.
f. Legal Factors: Should maintain business legislation to safeguard the company from unfair competition, to safeguard consumers from unfair business tactics.
Micro Environment: THE BUSINESS should be considered the next factors:
High quality product with acceptable cost
Good traditional reputation
Brand name known to virtually everyone
Loyal aged customer base
Very reliant on the performance of own labels
Five Forces Research assumes that we now have five important causes that determine competitive vitality in times. These are:
a. Supplier Ability: Here it assesses how easy it is perfect for suppliers to drive up prices. That is driven by the number of suppliers of every key insight, the uniqueness with their product or service, their durability and control over the company, the price of switching in one to another, etc.
b. Buyer Electric power: Here it should ask itself how easy it is perfect for buyers to drive prices down. Again, this is driven by the number of buyers, the value of each specific buyer to your business, the cost to them of moving over from its products and services to people of another person, etc.
Competitive Rivalry: What is important here is the number and capacity for its competitors - if Eat have many opponents, and they give evenly attractive products and services, then it'll most likely have little electricity in the situation.
Threat of Substitution: That is affected by the ability of its customers to discover a different way of doing what you do - for example, people can rely upon the Indian restaurant for his or her launch in place of sandwiches.
Threat of New Accessibility: Electricity is also affected by the power of folks to enter EAT market. If it costs little with time or money to enter into the food market and compete effectively, if there are few economies of size set up, or if it have little safety because of its key technologies, then new competition can quickly go into the market and weaken the EAT's position.
The BCG Matrix should be considered by EAT to accomplish its aims by the next ways;
Star High High
Cash Cow Market Progress Rate
Low High Market Talk about Low
Source: Philip Kotler; Eleventh Model; Marketing management; Prentice Hall; page: 94
1. Actors: It is the market leader position in a high-growth market. EAT should spend substantial money to deep up with the high market development and to battle off opponents' problems.
2. Cash Cow: EAT should keep up with the cash cow which is the business in high market-share in low growth-rate market. EAT should not finance in the forex market because the growth rate has slowed.
3. Question grades: in this section the business enterprise of EAT runs in high-growth market segments but have low comparative market shares. The company should think hard about whether to keep pouring money into this business.
4. Pet dogs: if EAT has sop which performs in low development market with fragile market share it is named dogs. The company should be consider whether it will retain these business or not.
5. The SWOT Evaluation of EAT:
Good with food
Variety of product
Celebration cakes are only available in some shops
Have no franchised shops
Limited service hours
Can expand to other European union market
Have the ability for franchishing
Spreading overall of the UK
Partnership gain with other company
Other group Opportunity(Non-food sector)
Other companies growing quickly
Overseas business coming into UK
Can unable to provide night shift service like Macdonald
PLC: The PLC of Eat's product is as follows;
Source: http://samueljscott. files. wordpress. com/2007/09/product-life-cycle. png
The products of EAT are now in some market in a maturity stage, imagine in central London. Someplace these are in introduction stage, imagine in out aspect of London. If it will enter in a new region then the product will be in development stage. Special Pudsey biscuits and cakes which continue sale from the beginning of November in the EAT retailers are now in the development stage
(Source: www. eat. co. uk/food/biscuts).
As EAT wants to be the number one for sandwiches and soups from a united team that is interested in being the best in the bakery. So to gain this it can adopt one of the next potential of alternate marketing strategies:
Intensive Growth Strategies: Ansoff's Product-Market Growth Grid;
Product Development Strategy
Market-development Strategy Current Product New Product
Source: Used and reprinted by permission Harvard Business Review. From "Strategies for diversification", by lgor Ansoff, September-October 1957.
Market Penetration Strategy: EAT can provide its current products for the existing marketing by providing a better service. For instance, EAT should increase its till quantity for servicing more customer at the same time at each retailers so the customers need not wait for long for their products.
Product Development Strategy: it's the strategy where new products are provided in today's customers. So adopting this strategy EAT provides its services to its currents customers. For example, it will have lots of brand products that the existing customer will find in the majority of the shops, it also sell a number of regional products to represent its current customer's likes and tastes.
Market Development Strategy: It really is one kind of strategy where current product is provided to the new customer. So EAT also can apply this plan to attain its goal by giving current products to the new customers. For instance, EAT does not have any shops outside of UK. So that it can set up its business in other countries which is similar to its country's financial condition. Assume it can start retailers in USA and other countries of EU.
Diversification: It really is such kind of strategy where new products are provided to new marketplaces. EAT can also take this plan to accomplish its goal and can in a position to provide services and new service to new geographic regions or new market. Suppose it can unveiling a fresh brand such as Bic Barger to a new market such such as India to broaden its business.
To capture your competition on the market EAT can adopt the following marketing strategies;
Marketing head Strategy: In this strategy the company gets the largest and the largest market share in the merchandise market, and generally leads the other businesses in price changes, new product launches, circulation field and promotional steps. So adopting this plan EAT could possibly be the market leader in its business market. But to be the business enterprise leader EAT has to provide unique products as well as services to its customer much better than its competitors. So it is very difficult to adopt this strategy. It could be adopted by the next by the next ways;
Expanding the total market
Defending the market share
Taking defensive strategies
Expanding the market share
Market Challenger Strategy: Company which capture the next, third and lower ranks in the industry are often cured as a runner up or following firms. By adopting this plan EAT can attack other company in bakery products and food business in an aggressive bid for even more market show. EAT should determine whom to attack;
It can power the market head in this field such as Pret A Manger
It can harm to its size company like Macdonald
It can also attack the tiny and the local companies who are in bakery and food business.
Market Follower Strategy: EAT could possibly be the market follower by duplicating or improving the merchandise or business the marketplace head in bakery and food business. Suppose it can make and sell the unique product of McDonald which Bic Macintosh personal computer and can be considered a market follower in food business. Also it can take up one the followings market follower strategu;
Market Nicher Strategy: EAT can also follow the steps of market nicher strategy which to being a follower in a large market is usually to be a innovator in a tiny market or area of interest. By implementing this EAT can normally avoid competition with the top firm by focusing on the small market segments. Suppose it can aim for the small developing countries' market like India, Pakistan, Bangladesh etc. To be always a nicher EAT should be specialized in the next ones;
Product or Product-line specialist
Source: Philip Kotler; Eleventh Model; Marketing management; Prentice Hall; site: 254
Greggs can use the marketing mix variable to achieve the marketing targets by the next ways;
Product Place Price Promotion
Source: Philip Kotler; Eleventh Release; Marketing management; Prentice Hall;
Product: EAT can make its product unique because of its customer by the next ways;
It may bring variety in its product line. Suppose it can add Birthday/Wedding Cakes items its products.
Though it will try to keep up quality in its products but it has more conscious about the food hygiene and protection.
Its may use an individual brand name for its specific product.
It can show its uniqueness it's in packaging also by providing attractive and defensive package because of its products.
Price: EAT may use the next price approaches for its products;
Its may use list price where it provides different components of food with a unique price. For example, it can offer one pastry, one sandwish, and one drink with 2. 99 pounds where specific price of the product tend to be than 4. 5 pounds.
It can provide discount to the merchandise bundle. Assume if five sandwishes are brought together then your price will be 5 pounds where in fact the individual price of each is 1. 5 pounds.
It can provide its suppliers allowances to aid their trade campaign activities
Promotion: To accomplish its objective EAT may use the following promotional tools;
To increase its sales it may use the sales advertising tools such as discount, buy one get one free, product bundling etc.
It can use Television advertising, Radio advertising because of its products and shop information. And yes it can use print out advertising such as paper ad.
It can maintain general public relation with different kinds of groups such as cultural communities, young one, and more mature one by creating night clubs.
It can also use sales force or immediate marketing tools for increase its sales. For instance it will have home delivery service.
Place: Place can be an important marketing blend. EAT should be cautious enough to choose its place. It should utilize this tool by the next ways;
It should maintain a proper relationship using its different stations such as provider, shoppers, suppliers etc.
It should be cautious to choose its location for its shops. The shops should be put in location where enough people will be obtained during breakfast, lunchtime and supper or for show their leisure time.
It should have well transport system to carry its raw material to look and deliver the meals with time to the house or desired place.
Here a list marketing combination is given to analyze of what's needed by EAT for it's attaining marketing objectives in a short form;
Product variety List price Sales campaign Channels
Quality Discount Advertising Coverage
Design Allowance Sales team Assortments
Features Payment period Public connection Locations
Brand name Credit conditions Immediate marketing Transpost
Source: Philip Kotler; Eleventh Edition; Marketing management; Prentice Hall; site 16
1. Current Changes in Marketing Environment:
Change is the demand of day. So the world is changing daily. New inventions and technological advancements create many opportunities as well as hazards for the firms of business community. Economic tough economy and growth also influence the marketing environment of the firms. EAT is not beyond of these impacts. The next current changes is happening in the EAT marketing environment;
The market share of EAT is lowering day by day for the impact of huge competition. Including the supermarket is currently acquiring this field. Also other cafs and bakery retailers are emerging daily.
The market size of the bakery business is increasing day by day. Because people are depending daily on fast food culture. Because the don't have plenty of time for preparing food. EAT also face this situation
There has a opportunity for EAT to increase to at least 500 - 1000 shops, both by development within existing trading areas where it is under-represented, like the South East, and by moving into new parts. The markets in which it functions are large, fragmented and growing.
At earlier EAT could find more employees for part time program. But now the government restriction on part-time job for university student. EAT must face a problem in this case because of most part-time employees are learner. So now they need to count more on regular employees, which is costly
For the growing of modern systems the control system of the fast food retailers and cafes are now changing. For instance EAT will have to now try to change its business system into e-commerce system.
. EAT businesses are exaggerated only by climatic extremes - scorching weather can slow down demand for bakery products, and long-standing rain or snow can make people unwilling to go out and make their usual daily buys.
For the modern technologies the control system of EAT is changing from manual work to technology centered work.
To meet this troubles EAT may take the next initiavies; To satisfy this probable we plan to
Expand other bakeries to make possible greater expansion than formerly planned
Reshape the older someone to improve quality, efficiency and convenience of growth
Afford the capability for new shop development in the South by swapping its shop in Twickenham
Build yet another new bakery to aid progress in the South of England.
Besides the aforementioned strategies to be a market innovator in baker and caf industry the following plan and strategies can be studied by EAT;
It should broaden its total market. By the following ways it can increase its market size to other areas;
New uses: EAT can develop it's markets through exploring and promoting new uses for it's products. For example sandwiches are consumed as a breakfast in UK. EAT can gain if it can promote sandwiches eating on other occasion - perhaps as a snack.
New users: Every product class has the potential of attracting purchasers who are uninformed of the product or who are resisting it because of price or be short of certain description. Therefore the company can type in this new market to provide its service. For instance EAT can extend its business far away where it could not go into before, such as with China, Japan, Middle East countries where its products can have great demand.
More usage: EAT can also persuade visitors to use more products per use occasion. Assume it provides product pack, like two sandwiches with a drink at a standard price, so that individuals consume food more at a time.
A. The opening time of EAT should be extended. Its present time is from 7am to 4pm. So that it can not be able to get the night switch consumers. So the should be a day like MacDonald. Usually the market show will be captured by competitiors.
B. It will offer franchises to other region because of recording the market. It is not possible to encounter your competition in other region without franchise business, because it is too hard to accelerate in other region with own management. So at this stage franchise is way better option to accelerate business.
C. At this time celebration cakes are only available in London credited to falling recognition across the remaining country. But it can be available in every the EAT retailers.
D. EAT should come out a touch-screen Electronic Point of Deal (EPoS) system that will provide its business with much better business information through the Internet. It will significantly improve its connection using its suppliers through e-commerce.
It may take some defense ways of be considered a market leader. It can make use of the strategies by the next ways;
Position security: EAT can choose this security strategy by building superior brand power, making the brand almost unconquerable. For example, it can make big Barger for the oily people which ideal for their health insurance and not make sure they are fatty.
Flank defense: By adopting this strategy EAT can make a strong position against its opponents. It such kind of strategy which can help the business to make its rival position weak. For example the main competition of EAT is Supermarkets. So it can reposition itself to be primarily a takeaway food business. Here its convenient locations will maintain the high avenues and suburbs where people live and work, will give it a genuine competitive benefits.
Preemptive protection: EAT can Strike its competitors prior to the enemy starts off its offense. For instance EAT can increase its retailers at every possible area before its competitors where its competitor can begin its business
Counter protection: When attacked, most market market leaders will act in response with a counterattack. In a counteroffensive, EAT can meet up with the Attacker frontally or strike its flank or launch a pincer movements. In this strategy EAT can invade the attacker's main territory such that it must pull again some troops to defend the territory. For instance, EAT can reduce its baker products' price so the supermarket can not contend with it.
Contraction security: when EAT will find that it has no range with the competitor in some specific territories it will withdrawal its business from that territory and begin business in other suitable region. For example, if EAT can not fight in European union countries' baker business it will withdraw its business form there and begin a new in business in any suitable in UK or any other Asian countries in the world.