Marketing Mix - Implementation Evaluation Control

Implementation Evaluation Control

Evaluating the performance of the business against its goals will be key. “Many managers think that "doing things right" (implementation) is as important as, or even more important than, "doing the right things" (strategy). The fact is that both are critical to success, and companies gain competitive advantages through effective implementation.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 55). Boston: Prentice Hall.) Cluck Wagon will implement several strategies for a profitable business venture. These will include using social media to determine which locations the truck should visit each day, how long a visit should last, and how much product can be discounted or given away on any particular day. They will also prescribe to a degree, customer service aspects of the business. Assuming we have chosen the best strategies for success, we will focus on consistently doing things right, as spelled out in our business and marketing plans.

"Marketing control involves four steps. Management first sets specific marketing goals. It then measures its performance in the marketplace and evaluates the causes of any differences between expected and actual performance. Finally, management takes corrective action to close the gaps between its goals and its performance." (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 57-58). Boston: Prentice Hall.) We have previously stated that a company goal is to achieve approximately $100k in sales during Cluck Wagon’s initial year of operation, allowing us to achieve break-even with our start-up costs. Measurements of business performance will be taken monthly. This performance will be evaluated against our expectations, and correction will take place quarterly. At these quarterly intervals, adjustments will be made to the marketing strategy, as required. Such adjustments may include increased promotional efforts, improvements to the menu or recipes, etc. Of course, if immediate action is required for any reason, it will not be necessary to wait until the end of the quarter to take action. 

Marketing Mix - Price

Price

The Cluck Wagon will sell quality and gourmet cuisine, packaged in unassuming

pita wrappers. We want to appeal to foodies, without scaring away the every day man and woman. When it comes to price, we will use a philosophy consistent with our product. We will not attempt to be the ‘cheapest sandwich in town’. Nor, will we try to price-gouge our customers. "To some consumers, “value” might mean sensible products at affordable prices, especially in the aftermath of the recent downward economic spiral. To other consumers, however, value might mean paying more to get more." (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 13). Boston: Prentice Hall.)

Basically, our prices will be set at a point at which we can be profitable. Research will need to be undertaken to determine the actual amount of money customers are willing to pay for a meal/sandwich in town. As a starting point, we will design recipes targeting that average. "Price decisions must be coordinated with product design, distribution, and promotion decisions to form a consistent and effective integrated marketing program.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 265). Boston: Prentice Hall.) Once underway, marketing and data mining will help us to understand the value perceived by our customers, and we can adjust price accordingly. Altering the recipes will be considered a last resort, assuming that they are a hit with customers.

Bottled beverages, and possibly packaged chips, etc. will be made available, and will be priced consistently with the higher end of local trends. We want our sandwiches to be the focus. We can adjust price, as necessary. And spoilage won’t be an issue if these products do not immediately jump off the shelves. 

Marketing Mix - Promotion

Promotion

With the marketing strategy has been determined, promotion should be addressed. Through promotion, “…the company designs promotion programs that communicate the value proposition to target consumers and persuade them to act on the market offering.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 29). Boston: Prentice Hall.). Cluck Wagon will hope to capitalize on word-of-mouth promotion but, at the introduction stage when the product is first launched, sales growth will apt to be slow, and the Cluck Wagon will need to advertise and promote itself. We will begin data mining by offering free or reduced price menu items for those who sign up for our newsletter. This newsletter will keep customers abreast of when and where they can find us, as well as providing them with incentives to continue their patronage. We will continue to collect customer information in this way, indefinitely.

On a daily basis, we will locate the truck at various destinations, based on a perceived customer base available at those locations. We will attempt to partner with local radio stations and other media outlets, and at these radio remotes or events, offer free or deeply discounted product to a number of listeners and/or participants.

Over time we will create loyalty programs. “As the (business) moves through later stages of the life cycle, it must continuously formulate new pricing, promotion, and other marketing strategies. It has the best chance of building and retaining market leadership if it plays its cards correctly from the start.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 244). Boston: Prentice Hall.). We will try to participate at tailgating events for local sporting events. During these events, we will run promotions for certain items, offering them free if certain (difficult/rare) goals are achieved. One such event, for instance, might be a kickoff returned for a touchdown, in which case everyone in attendance would win a free menu item.

Marketing Mix - Distribution

Distribution

“With each new channel, the company expands its sales and market coverage and gains opportunities to tailor its products and services to the specific needs of diverse customer segments.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 301). Boston: Prentice Hall.) That being said, opportunities to create distribution channels at first seem limited for a food truck. Though we will do what we can to create a few of them. "Companies often pay too little attention to their distribution channels, sometimes with damaging results. In contrast, many companies have used imaginative distribution systems to gain a competitive advantage.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 294). Boston: Prentice Hall.) Besides the ability to order directly from the truck, we will enable customers to place orders online, through our website, or our application, which will need to be created as part of our initial launch.

The Cluck Wagon will be capable of operating all day long, from breakfast to dinner, and possibly beyond. What happens to the truck when it is not out and about making sales is an important question. Down time with the truck could be a liability, or a potential asset. When the truck is ‘off duty’ and parked in the company lot, a second or third shift might occupy the vehicle. An early morning shift could be responsible for prepping for the day ahead. An evening shift might come in and clean the truck and restock it for the next day. There is also an opportunity to cater events, and off time might be perfect for this purpose. Catering could become a huge distribution channel.

There is a possibility that horizontal marketing channels could be exploited. For instance, we might be able to set up Cluck Wagon kiosks at concerts, sporting events, and the like. Positioning these kiosks might prove challenging, as they would require fitting out with kitchen equipment, etc. But if the original food truck concept is successful, these avenues may become viable options.

Marketing Mix - Product

Product

Just as the restaurant will be mobile, so too will the food be. The fact that you can purchase your food, then walk away eating it without a plate or utensils will provide for a unique experience. "Marketers want to develop unique market positions for their products. If a product is perceived to be exactly like others on the market, consumers would have no reason to buy it." (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 50). Boston: Prentice Hall.) Cluck Wagon’s product will be wraps (pitas, tortillas, lettuce) featuring fresh grilled chicken, and other ingredients. Tastes from regions around the world will be represented in various recipes. All ingredients will be made fresh and assembled per order. The sandwiches will be gourmet, and will stand out as such.

Despite being a small, mobile package, the sandwiches will also look gourmet. Care will be taken so that employees assembling the sandwiches follow precise instructions, ensuring a beautiful presentation, every time. "Another way to add customer value is through distinctive product style and design. Design is a larger concept than style. Style simply describes the appearance of a product. Styles can be eye-catching or yawn producing. A sensational style may grab attention and produce pleasing aesthetics, but it does not necessarily make the product perform better. Unlike style, design is more than skin deep—it goes to the very heart of a product. Good design contributes to a product’s usefulness as well as to its looks." (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 202). Boston: Prentice Hall.) Every customer ordering a sandwich from the Cluck Wagon will be delighted to find that it looks like the picture in the advertising!

Target Marketing Strategy

Target Market Strategy

“After evaluating different segments, the company must decide which and how many segments it will target. A target market consists of a set of buyers who share common needs or characteristics that the company decides to serve.”

(Armstrong, G., & Kotler, P. (2011). Marketing: An introduction (10th ed., p. 186). Boston: Prentice Hall.) Our customers will be people looking for great tasting food, without the time or opportunity to travel to a restaurant and spend the time required to eat there. As stated in my pitch, we will provide a hand-held meal, costing little dough, for those on the go.

A food truck is perfectly suited for working people. Since Las Vegas is a thriving community, Cluck Wagon should be able thrive with it. “A company should target segments in which it can profitably generate the greatest customer value and sustain it over time.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 49-50). Boston: Prentice Hall.) Most working people have access to the internet, and therefore use, or are capable of using, social media. We will be able to reach out to people of all walks of life to connect with customers on their computers and phones.

Situation or SWOT Analysis

Situation or SWOT Analysis

According to Gary Armstrong, “managing the marketing function begins with a complete analysis of the company’s situation. The marketer should conduct a SWOT analysis, by which it evaluates the company’s overall strengths (S), weaknesses (W), opportunities (O), and threats (T)…” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 54). Boston: Prentice Hall.) And so, I will begin my SWOT Analysis. The goal of SWOT Analysis is to allow a business to “…analyze its markets and marketing environment to find attractive opportunities and identify environmental threats.” (Armstrong, G., & Kotler, P. (2013). Marketing: An introduction (11th ed., p. 54). Boston: Prentice Hall.) Once this analysis has been performed, it can be used as a tool to capitalize on its strengths, and minimize its weaknesses.

Strengths

• Mobility: Since the Cluck Wagon is mobile, it will be able to go to wherever the customers are. We will be able to determine demand prior to arriving at destinations, by utilizing the various social media outlets, combined with our website.
• Experience: I have years of previous experience in food service industry. I have designed, opened and helped operate several restaurants. This experience should help me avoid various pitfalls.

Weaknesses

• Nomadic Nature: We will be without a fixed ‘home base’. The fact that we will have no fixed location means that some customers will have to actively seek out where we will be on any given occasion, and then come to us. Also, we will have to pre-plan and/or negotiate new locations daily. This could translate into daily challenges.

Opportunities

• Customer Base: When it comes to customers, the sky is the limit. Las Vegas is a great location, supplying a virtual plethora of tourists, and approximately two million locals. Customers can be found on construction sites, warehouses and factories, and offices all over the city. There are many potential customers here, and with them, lots of opportunity.

Threats

• Competition: There are already many food trucks operating in Las Vegas. This means that we will have to carve out a niche for ourselves, by chipping away at the business of others.
• Fuel Prices: The price of fuel fluctuates, wildly at times. Since we will rely on it to get to destinations, our bottom line could be adversely affected.