MKT101A - Marketing Fundamentals Situational Analysis Report Assessment 1

Introduction

El Camino Cantina, a well renowned Mexican theme establishment situated in Sydney, Australia, has positioned itself as a vibrant restaurant, where authentic Mexican cuisine is served. The following marketing report intends to scrupulously investigate the establishment’s existing marketing strategies, while taking its positive aspects, shortcomings, opportunities as well as threats into focal point, as determined through the situational analysis. Aside from that, the report would also intricately analyze the target market categorization, for the sake of furnishing a positioning statement, all while conducting a marketing mix analysis, so that a strategic recommendation can be formulated, which would essentially assist the organization to grow in a seamless manner (David & Damien, 2020). By inculcating the insights garnered from the situation analysis and incorporating it into the core strategies of marketing, this report would extrapolate actionable recommendation, which would assist the establishment to augment its market presence and accomplish its desired objectives, within a short span of time.

Target Market Profile

The predominant market niche of El Camino Cantina comprises of young adults as well as families, who are looking forward to experiencing an authentic Mexican delicacy within Sydney. The following profile is furnished, while implementing to variables to each segmentation elements, which are hereby mentioned below:

Demographic Segmentation

(Age)- Young adults aged between 18 years to 35 years and families with children constitute this demographic.

(Income)- Middle income families to upper middle-income individuals and families who can be categorized as individuals having disposable income to spend for experiencing authentic delectables are primarily emphasized upon (Olson et al. 2021).

Geographic Segmentation

(Location)- Individuals residing in Sydney or in the vicinity of the central area, where the restaurant is located constitute the geographic segmentation.

(Urban lifestyle)- Residents accustomed to the dynamic lifestyle of Sydney and seeking options to be entertained by satiating their delectable preferences are the intended niche of lifestyle, which constitutes this segmentation (Olson et al. 2021).

Psychographic Segmentation

(Lifestyle as well as preferences)- Residents who value experiential dining along with individuals would like to be entertained with vibrant ambiences and open to extrapolating diverse cuisine are the demography in this instance (Adams, Freitas & Fontana, 2019).

(Socially connected)- Social interaction place a crucial role in psychographic segmentation, since individuals who are seeking for opportunity to gather with friends and family in an energetic ambience are also taken into consideration as demographic suitable for this establishment.

Behavioral Segmentation

(Dining frequency)- Regular diners who enjoy at least couple of times in a month to try out new dining experience.

(Occasional driven diners)- Individuals who are drawn towards this establishment for celebratory purposes, such as birthdays or special events, also constitute this demographic (Varadarajan, 2020).

By concentrating upon young adults and families within the precise geographic, psychographic and demographic segmentation, the establishment can tailor its efforts oriented towards marketing, so that the message it would convey through marketing would not only reverberate through the target niche, but at the same time, satiating preferences of this consumer would be quite convenient for the organization (Li, Larimo & Leonidou, 2021). This would not only assist the establishment to promote an energetic ambience through social gathering, but at the same time, with the help of word-of-mouth strategy, the establishment can showcase its diverse range of authentic Mexican delectables in a cost-effective manner. Simply put, in a competitive business landscape of hospitality establishment across Sydney, tailoring message and delivering quality consumer experience would assist El Camino Cantina to get ahead of the competitive curve in a swift and seamless manner.

Positioning Statement

• For: Young adults, families, and individuals looking towards an engaging and authentic Mexican dining experience in the heart of Sydney.
• Who must: Satiate their cravings for exemplary and authentic Mexican cuisine in a vibrant social ambiance that reflect the dynamic urban lifestyle of Sydney.
• Our product is a: Genuine as well as lively Mexican-themed establishment, El Camino Cantina, offering a plethora of diverse selection of classic Mexican dishes coupled with an energetic ambiance (Katsikeas, Leonidou & Zeriti, 2020).
• That provides: The paramount advancement afforded by El Camino Cantina is not confined to mere dining; rather, it encompasses an immersive sojourn into the very heart of Mexico. This is facilitated by an ambiance suffused with electric dynamism, resonant with lively melodies, and embellished with a menu meticulously curated to embody unwavering commitment to both authenticity and superlative quality. Within the precincts of El Camino Cantina, patrons are not mere diners; they embark upon an indelible odyssey into the tapestry of Mexican culture, all the while indulging in culinary creations wrought from the freshest of ingredients (Park, 2020).
• Unlike: Other alternative dining options that merely tries to replicate an authentic dish, but simply falls short in preparing the delectable, palates of the El Camino Cantina patrons are satiated extensively by the touch of authentic recipes and pinch of conventional cooking mechanism. This truly segregates El Camino Cantina from the crowd, since this establishment blends the Mexican culinary excellence with the dynamic spirit of Sydney (Lopes & Casais, 2022).
• Our product/solution offers: A fine line of difference that can be drawn between potential rival with this establishment is that the ability of augmenting an ambience that is attributed with genuine delicacy and coupled with intoxicating ambience, which has the notion of ethnic Mexican cultural authenticity simply fosters an environment that is not only welcoming but at the same time exhilarating in nature. This energetic atmosphere is the dominantly ameliorated with vibrant Mexican music that segregate the establishment from the competitors apart from that the food offered embodies the true spirit of Mexican delicacy where the patrons are not only satisfied but also experience an electrifying celebration of food, culture, and community (Darma & Noviana, 2020).

Analysis of the Current Marketing Mix

1. Product Strategy

• Core Product: The core product that this establishment offers apparently seems to be the delectable; however, in reality, the patrons are being given an opportunity to indulge in experiencing authentic Mexican vibrancy with palatable delicacy, where one can not only test the essence of Mexico, but at the same time experience the culture as well as its spirit.
• Actual Product: The product revolves around Mexican delectables, such as enchiladas, tacos, fajitas and other authentic recipes, where the ingredient as well as method of preparing these delectable are adhere to conventional practice, so that the magnitude of authenticity is not at all compromised, while the patrons delve into the dining experience (Purwanto, 2022).
• Augmented Product: The augmented product predominantly inculcates additional element that not only enhances the dining experience through palatable delicacy, but at the same time, assist consumer to delve into an electrifying experience with quality music, themes and enthusiastic workforce.

El Camino Cantina's classification of product falls under a continuum ranging from unique to distinct dining experience that satiate consumer preference, where the product portfolio entails diverse Mexican delectable that can captivate consumers and create a comprehensive menu that can be catered to diverse taste within the realm of Mexican delicacy.

ii. Pricing Strategies

The pricing strategy that El Camino Cantina can inculcate is mentioned as follows:

• The first course of action that the establishment can emphasize upon is to incorporate a value-based pricing, where the pricing associated with individual item can be set on the basis of its perceived value, depending on the degree of authenticity associated with the dining experience, preparing the palatable delicacy and augmenting the vibrant ambience along with accessory entertainments. Not only this would allow the restaurant to justify its pricing, but at the same time, it is also beneficial for the consumers to understand that the restaurant has incorporated a great deal of effort to furnish this dining experience (Borges et al. 2021).
• Introducing bundle pricing is also another alternative that would not only allow the establishment to offer meal deals that incorporate multiple dishes, appetizers and drinks to be ordered at once by the patrons, but at the same time this would also encourage the consumer to opt different categories of food at discounted price, in comparison to purchasing these delectables individually. This would give the consumer an option of letting them choose, where they would feel the liberty to opt from diverse array of Mexican dishes.
• Associated concepts: Associated concepts such as price skimming as well as psychological pricing can also be inculcated by the establishment, if necessary.

iii. Placement

As far as placement is concerned, utilizing a direct channel strategy would assist the establishment to serve consumers directly, through its physical establishment, which is situated in the central location of Sydney. The organization, in this instance, can capitalize on the strategic location, which would inherently experience high foot traffic as well as exposure necessary for substantiating its revenue generation. The dynamic dining experience would captivate visitors, onlookers and residents alike, towards the establishment. This approach would also assist the restaurant to foster meaningful relationships with the consumers, all while providing them with authentic ambience. This is a strategic measure that is also cost effective in nature, since it would assist the restaurant to augment its consumer experience (Darma & Noviana, 2020).

Associated concept: A Location-based strategy can be opted for enhancing its strategic position and maximizing its accessibility. However, depending on the circumstance as well as profitability of the organization, this measure should be evaluated, since this is not at all cost effective in nature.

iv. Promotions

El Camino Cantina can inculcate an array of promotional tools to directly convey its message to the target market for captivating them towards the vibrant dining experience. To begin with, the establishment can inculcate social media marketing platforms such as Facebook as well as Instagram to highlight its electrifying ambience, by sharing images of its palatable delicacy as well as patrons entertaining themselves in the themed ambience. Aside from that, introducing event promotion and loyalty programs could also enhance its foot fall extensively. The feasibility of such events to entice consumers and allure them towards the authentic dining experience increases seamlessly. These are the least three promotional tools that the establishment should concentrate upon (Park, 2020).

Recommendations

After meticulously analyzing the situation analysis as well as the marketing concept pertaining to the establishment, the recommendations which can be inferred for the sake of assisting El Camino Cantina to get ahead of the competitive curve are jotted down as follows:

• Diversifying the menu should be the focal point of the establishment, so that a wider variety of palatable delicacies can be reflected on the menu. On top of that, inculcation of vegetarian, gluten-free as well as vegan options can also augment demand for health-conscious crowds.
• The pricing strategy should be flexible in nature, so that consumers can accommodate different budgets, while delving into the dining experience. Introducing happy hour discounts during lean periods can also stimulate the business landscape extensively. Not only it would encourage consumers to visit the place without financial hesitation, but at the same time, it would completely mitigate lack of demand from the equation.
• El Camino Cantina should foster a relationship with online delivery platform so that consumers can even order their dishes directly from the convenience of the residence. Although this measure would not allow the patron to experience the vibrancy in the establishment. However, from a financial perspective, delivering convenience to the target market would be beneficial for the organization in the long run (Li, Larimo & Leonidou, 2021).
• Within the sphere of targeting, El Camino Cantina would be prudent to persist in directing its efforts towards a demographic comprising youthful adults, familial cohorts, and connoisseurs of an engrossing Mexican culinary milieu.

References

Adams, P., Freitas, I. M. B., & Fontana, R. (2019). Strategic orientation, innovation performance and the moderating influence of marketing management. Journal of Business Research, 97, 129-140.

Borges, A. F., Laurindo, F. J., Spínola, M. M., Gonçalves, R. F., & Mattos, C. A. (2021). The strategic use of artificial intelligence in the digital era: Systematic literature review and future research directions. International Journal of Information Management, 57, 102225.

Darma, G. S., & Noviana, I. P. T. (2020). Exploring Digital Marketing Strategies during the New Normal Era in Enhancing the Use of Digital Payment. Jurnal Mantik, 4(3), 2257-2262.

David, A. A., & Damien, M. (2020). Strategic market management: global perspectives. Wiley.

Deepak, R. K. A., & Jeyakumar, S. (2019). Marketing management. Educreation Publishing.

Katsikeas, C., Leonidou, L., & Zeriti, A. (2020). Revisiting international marketing strategy in a digital era: Opportunities, challenges, and research directions. International Marketing Review, 37(3), 405-424.

Li, F., Larimo, J., & Leonidou, L. C. (2021). Social media marketing strategy: definition, conceptualization, taxonomy, validation, and future agenda. Journal of the Academy of Marketing Science, 49, 51-70.

Lopes, A. R., & Casais, B. (2022). Digital content marketing: Conceptual review and recommendations for practitioners. Academy of Strategic Management Journal, 21(2), 1-17.

Olson, E. M., Olson, K. M., Czaplewski, A. J., & Key, T. M. (2021). Business strategy and the management of digital marketing. Business horizons, 64(2), 285-293.

Park, S. (2020). Marketing management (Vol. 3). Seohee Academy.

Purwanto, A. (2022). How The Role of Digital Marketing and Brand Image on Food Product Purchase Decisions? An Empirical Study on Indonesian SMEs in the Digital Era. Journal of Industrial Engineering & Management Research.

Varadarajan, R. (2020). Customer information resources advantage, marketing strategy and business performance: A market resources based view. Industrial Marketing Management, 89, 89-97.

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