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This report is based on the evaluation of the marketing activities and approaches of Planet Doughnut which is a family-owned and operated organization situated in Shrewsbury, United Kingdom. The company is involved in baking as well as sales of the heavenly handcrafted doughnuts which are a little different from its competitors’ offerings. This report will provide information on the external environment of the industry using PESTLE analysis, SWOT Analysis, the Segmentation, Targeting, and Positioning Analysis as well as the marketing mix strategies used by the company. In the end, the recommendation for the company to improve its marketing and sales activities will also be offered.
In order to analyze the external environment of the company Planet Doughnut, below is presented the analysis of different factors:
Political Factors
Doughnuts come under the specialist eateries category and it has been identified that the political factors mainly consist of the minimum wage changes as well as the employment law changes in relation to this industry. As this industry requires trained and professional staff members with prior little experience in baking, the companies require paying at least minimum wages. There are some other political factors such as the actions taken by the government to reduce the problem of obesity among adults as well as children. Another major political factor is the policies and guidelines regarding food standards (Ali and Anwar, 2021).
Economic Factors
The economy of the nation is a very important factor associated with consumer spending as well as the availability of disposable income. Doughnuts come under the list of non-essential food items and the economic downturn and reduction in the disposable income of people in the United Kingdom have affected their spending on such items. There is also an upward pressure due to the rising rates of inflation due to which the habits of savings are being developed among the people. With the increasing interest rates, the cost of borrowing for the companies like Planet Doughnut is also increasingly affecting their plans for expansion.
Social Factors
It has been identified that the consumers in the United Kingdom are being more aware of the ingredients in their food items as well as their health. Obesity is a major issue among children and such a shift toward a healthy lifestyle has impacted the business operations of the confectionery as well as bakery items. However, in the United Kingdom, the trend of gifting the bakery items such as doughnuts and chocolates is increasing. On special occasions like Good Friday as well as Christmas, the sales of such companies shoot up due to the increasing demand for such products. The companies dealing in this industry also require spending a higher amount on their marketing and advertising activities to attract the attention of new customers as well as gain the loyalty of the existing customers. Some of the social factors are favorable for the companies operating in this industry but some factors are against the trend of eating unhealthy and sugar-containing food (Raworth, 2019).
Technological Factors
Technology plays a major role in the preparation as well as the marketing of doughnuts and similar products. Technological trends have a great influence on the industry and the United Kingdom is a highly technologically advanced country. The technology in this industry can be used to improve the production, efficiency, distribution as well as monitoring of the commodities in real-time. The companies are utilizing the online delivery options as well as customization of the products through applications. Moreover, the companies in this industry are fully utilizing the technology to promote their brands and make the advertising more attractive (Olson, et al., 2018).
Legal Factors
There are some important laws and regulations which are required to be followed by the companies operating in this industry. They need to consider the content of sugar to be used while preparing the products as well as follow the food standards in order to avoid any legal consequences. Other major laws required to be followed include the minimum wages act as well as the employment act for the staff members working in such organizations (Mokhtar, et al., 2021).
Environmental Factors
People are now more aware of environmental sustainability as well as the protection of the environment from any harmful substances. The company is looking forward to having its edible packaging and removing the plastic completely from its packaging part in order to protect the environment. Moreover, the company is also following the CSR policies appropriately for the welfare of the community.
In order to conduct the internal analysis of the company, SWOT analysis is the most appropriate tool to be used by business analysts. Below is presented the SWOT analysis for Planet Doughnuts to identify its key strengths, weaknesses, opportunities as well as threats:
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Strengths
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Weaknesses
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Opportunities
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Threats
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The company Planet Doughnuts is focused on meeting the current demands of its targeted market by focusing on its product line as well as the taste. The pricing of the company is also quite competitive and consumers are able to afford the products easily. The current marketing arrangements of the company are more inclined towards digital marketing strategies and the company has completely avoided using the traditional marketing approaches. However, the companies operating in this industry require very b marketing and advertising strategy. There should be utilized a mix of traditional as well as digital marketing approaches to attract more and more consumers. The main target market of the company is children and the marketing strategies are formulated according to the needs of such market. However, the company also requires widening its focus and should also focus on the adults as they also like to buy such products for their loved ones on special occasions. The company needs to focus on its weaknesses and should start working on its marketing strategies. The marketing strategies are required to be designed in such a way that a maximum of the people can be aware of the products offered by the company. Some of the common strategies include advertisements through hoardings, emails, TV advertisements as well as sales promotion approaches (Morgan, et al., 2019).
Segmentation
Market segmentation is considered the process of dividing the market into different categories based on the needs, traits as well as behaviors requiring the marketing initiatives. There are mainly four segments identified for the Planet Doughnuts Company which include the psychographic, demographic, behavioral, and geographic segments. The company is utilizing the undifferentiated approach for its products offering all the consumers with similar tastes and exciting designs (Putri, et al., 2020). The demographic segmentation includes the details of the consumers like income level, age as well as profession. The geographic segmentation includes the location of the target market and here Planet Doughnuts is focused on the tastes as well as p
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