Retail Marketing Assignment Reviewing Current Operations of Sweet Harvest Cakes

Question

Task: Prepare a comprehensive retail marketing strategy report. Along with a number of others, you made the shortlist to gain a position as a retail advisor for Retail Solutions (a Retail Marketing Consultancy), at present your position is temporary. Your first customer would like you to create a retail marketing report that includes three parts:

a) A review of the chosen retailer’s current entire online store (website, Facebook page)
b) refresh a page* (e.g., Ladies shoes page) on the retailer’s current website using Shopify or design one webpage* (e.g., Ladies shoes page) for a retailer that does not currently have a website presence using Shopify, with supporting justifications provided to substantiate your recommended changes/ design; *Students must not redesign a ‘homepage’, ‘contact us’ or ‘about us’ webpage as it is difficult to address all the required criteria using these pages.
c) Create an email marketing campaign to re-launch the new website page

Answer

Introduction
The concept of retailing plays a central role in the process of the manufacturing activities, significant for the promotion of high-level markets and business organisation. In the current era, multi channelling and omni- channelling has been acknowledged by businesses. The concept of multi-channelling refers to the practice of customer interaction by making the utilisation of direct and indirect communication channels. These comprise of websites, mail catalogs orders and so on. Similarly, the concept of omni challenging is considered a content strategy that aid organization in the improvement and enhancement of the relationship of the business customer.

Sweet Harvest Cakes does not comprise of a website, therefore, through the integration of a website creator, Shopify has been used to redesign the Facebook page. In addition, the business will also acknowledge the benefits of Mailchimp, which is an American automation platform that focuses on the aspect of boosting the growth of business plans in a better manner.The assignment has been divided into three parts and would provide a review of the current operation of Sweet Harvest Cakes and their retail and marketing sectors. It will provide an integrated and illustrated understanding on the factors associated with the retail sector.

Part A: Review of the retailer’s and their current online retail store Retailer’s background
Sweet Harvest is a home based bakery and retailer situated in Perth Western Australia. It has been dealing with decoration and embellishment of cakes and desserts, for various functions and events. As per the retailers the main aspect of the retailers is to “making the special events unique”. The requirements of the product are adhered to the norms and necessities of the client. The customer base of the business relies upon the need and desires of the targeted consumers. The bakery shop mainly specializes in cupcakes, bespoke cakes, cookies, macrons, cake pops, donuts and other dessert. The main aim of the bakery retailers is to serve fresh bakery products along with personalized products made on special demands of the customers. Initially, the business was registered in the year 2018 at that time the small business operating only in Perth WA. However, over the time the business established itself well enough that it started operating on a bigger scale and started taking orders from both online and offline medium.

Figure 1: Image of cakes from Sweet Harvest cakes
(Source: Sweet Harvest Cakes Facebook page)

Taking in to account the baker of the Sweet harvest shop was a self-taught baker and decorator and he started baking from the year 2012. In addition, over the years especially after registering the bakery work officially the baker specialized in its products by using only premium ingredients and with a high quality final product, which mainly focuses on flavorsome and fresh cakes. The boost in the growth of the Sweet Harvest Cakes mainly took place with the use of Facebook community groups, which gave the bakery recognition and also became the biggest source of engagement with people. The facebook page of the bakery shop mainly engages audience from Australia however lately viewers have increased covering areas such as UK, USA Canada and Kenya.

Figure 2: Sweet Harvest cakes
(Source: Sweet Harvest Cakes Facebook page)

Target Market and Positioning
It is highly essential for any organization or business to segment and target their appropriate consumer for their products. For this, the organization needs to study the market along with taste preference choice and demand of the consumers. This will lead the organization to target the right consumer and market for growth and development of their business. Just like any other business, Sweet Harvest Cakes has also segmented consumer for his work. Sweet Harvest Cakes generally offers its services to regular family households on their special occasions. However, with the help of different digital media platform the small business has started gaining many viewers/sources and has a certain age group to attract, this can be better elaborated with the use of STP (segmentation, targeting and positioning) models(Syed SaadAndaleeb, 2016). Segmentation, targeting and positioning is recognizable strategic method in contemporary marketing. The model is practical for forming marketing communications plans because it aids marketers to precedencesuggestions and then build up deliver tailored and pertinent messages to connect with variousaudiences.Therefore, in the below section there would be a discussion of the segmentation targeting and positioning of the consumer of Sweet Harvest Cakes which will give an idea about the current situation and to work on new segment in future.

Segmentation of Market: The product, which is being offered by the business, can be all things to all people. Therefore, it is necessary for the businessperson to segment the market, which the businessperson wants to target as per their products. Hence, the segment of market can be done by different ways some of the most common approaches are discussed below:

Demographic –Generally, major audience of the business is from Facebook and Instagram page of the social media platforms. The audiences in these pages attract 88% women and 12% men with the majority of interested age ranges lying between 25-44 years old.

Geographic – The mainstream audiences of the page is from Australia. However, there is been an increase in the viewers from different sources. Viewers from UK, USA, Canada and Kenya are the audiences who are showing interest in the recipes and post of the Sweet Harvest Cakes.

Psychographic – The audiences who watch the post and videos of Sweet Harvest Cakes on the social media platform are mainly homemakers, people who bake or the ones who like these kinds of baking videos.

Targeting: Sweet Harvest Cakes 80% consumers are mainly its regular family households. On the otherhand, the rest 20% are from wedding and commercial clients. Lately the business has started its biggest engagement with the help of facebook community groups, which has made the business to gain a lot of popularity on these social media platforms. The business targets every age group people, individual irrespective of their age, sex, marital status etc. The business is physically targeting consume base which comprise of its family household and other occasion related with them and also some from wedding and commercial clients. On the other hand, on social media platform it targets every one.

Positioning: The business is still not at that level that it will be creating a positioning level however it focuses on high quality and uses premium ingredients and no two product are same there this makes the product truly unique.

Competitors and competitive advantage
The Sweet Harvest Cakes is a very small home-based business operating only in Perth WA. Therefore, the company does not have any direct competitors or any kind of competitive advantages set. However, the baker has observed that the cake baking industry is being saturated and unregulated. The main reason behind this is rising numbers of cake makers and a unreliable level of expertise and experience. The small business is still thriving in its location and at some places therefore it will take time to set competitive advantages or have competitors. However, for future references of the business BCG matrix the strategic tool can be used for long-term strategic planning.

Figure 3: BCG Matrix
(Source:50Minuten.de, 2018)

The given image offers an idea about the famous strategic model BCG matrix. The star represents high market share and high market growth that is the products are doing well and there are great opportunities that is some of the products of the organization is high in demand and attract majority of consumer. Whereas, the question stands for low market share and high market growth that is the business is still deciding either to invest or to look for new opportunities. This happens when the business is still discussing for taking a major step with their products. Additionally, Dogs symbolizes for low market share and low market growth that is weak in market and difficult to make profit. This means that some of the product of business hardly attract consumer or make money.Therefore, it becomes tough for the organization to make profit in this position with those products.

Lastly, the Cash Cows signifies high market share and low market growth that is some of the products are doing well and still has no growth in the market with limited opportunities. This can be said as some of the products, which are doing well, yet it is not reaching at its peak level because there is not growth in the market.For the given case of Sweet Harvest Cakes Stars can be said as their cakes which has gain popularity and doing well. The business got major recognition for its variety of personalized cakes with superior quality, which boosted its growth. Therefore, this is the star product of the business. On the other hand,question mark is for to increase the business. The baker needs to think about different strategy and activity, which will not only boost its growth buts also to expand its business by reaching major consumers. Expansion of the business is a huge step, which mostly remains in dilemma for new business person.

Moreover, the cash cow product of the small business is its cakes, bespoke cakes and cupcakes. There are considered to be in this place as after cakes people ask for these products. In addition, there are other better and highly recommended shops to serve the same therefore; they do not get much recognition. Products such as macrons, doughnuts, cake pops are some of the business product, whichfalls under the dog category. Though the business tries to cover as much sweet product as possible in order to offer to its consumer however people rarely recognize them and ask for them. Currently cakes are the only plus point of this business.

Retail sector description and environmental factors
The Sweet Harvest Cakes is in Perth WA point, which is Australia that means the business, will be affected by the retail sector norms of Australia and other rules and regulations, which are followed in the country. Perth is considered to be one of most urbanized societies in Australia. In addition, the retail sector of the region has witnessed a boost in growth regardless of considerably low increase in wages and rising household debts(Australia. Productivity Commission, 2011). The country focuses on each of its sector and also over the time the retail and every other sector of the region has developed in every means with the introduction of technology. However, in recent times the retailers are feeling pressure due to changes consumer behavior, which is getting stronger day by day. Additionally, technological advancement has changed the retail sectors working style in a better way.In addition, it is also observed with the inclusion of e-commerce in the sector the retail sector has lost significant share of growth. This is because of increasing use of e-commerce platform rather than going for traditional methods. Technological advancement has altered the working pattern by creating huge differences in the retails sector as compared to traditional one.

Each of the field in the retails sector is facing certain kinds of issues while working in the region. Taking in to account the baking business of the region the cake making market is getting saturated and unregulated due to varying level of expertise and experience. In this field major issues are being faced by the “newcomers” and less experienced bakers as they charge very less for their hard work and efforts. Additionally, there is a conveyor belt cakes that is mass produced cakes from the giant supermarket stores which are further sold in price of a bespoke cake. Another aspect, which the baking field faces, is the cost of supplies is relatively high. Therefore, the profit margin is low. Moreover, not only in this field the cost of supplies is gone high in majority sectors.

Current Digital Channel Presence (Website/ Social Media presence)
With technological advancement and new platform coming to the way the business style and working pattern has changed over the years. In today’s’ world every organization has set its foot in social media platform and in digital media platform to gain more consumer to retain the existing and to offer better services to them. In addition, digital channels also aid in connecting people to the organization easily and rendering their ideas and messages to the target consumer in and effective less time consuming and in an innovative way(Yang, 2017). Organization creates their websites, applications, web pages and also runs many accounts in different social media platform to keep their client connected and updated with their product and services.In the given case, Sweet Harvest Cakes does not have any websites web page or application unlike any other big organization. However, this small business is currently on Facebook with its own Facebook page.

This digital channels presence became the biggest source of engagement for Sweet Harvest Cakes. In addition, Sweet harvest also had an account in Instagram from business to business collaboration and client, which boost its growth and made the business to reach to its neighborhoods and clients all across major part of Australia.With the help of this, the small business has gain viewers not only from Australia but also from Kenya, UK, Canada and USA.The business can also use email marketing. The significance of email marketing campaign lies in the marketing efforts that are undertaken by the researchers to procure the intended aims and objectives, which are instrumental for boosting the objectives of the business. It comprises of a coordinated set of messages that are inclined to a specific target group or other customers, for meeting the specified areas, which are significant for boosting the efforts of the business.

However, the company should not only rely on social media platform but should look out for other means too. Hence, Sweet Harvest Cakes should not only promote its work in social media platform but also opt for other digital platform and adopt different digital tool and technologies for its growth. Furthermore, sweet harvest cake can also use Facebook, Instagram and Twitter for advertising their content and work.

In addition, the business is needed to be consistent with its image and work in the different digital platform as this will keep his consumer updated with work and also make them interested and keen to find more. Moreover, the cake shop should look after its proper branding. This not only creates a strong image of the business but also make it acknowledgeable and recognisable easily. Furthermore, the business has to adopt various other marketing tools such as ads in newspaper, pamphlet and hoarding. In addition, it can also render free live or demo classes for the cake learners.

Benchmark against one main competitor’s website/ social media presence
Though, Sweet Harvest Cakes currently does not have any competitors however it is been observed that in today world be it small business organisation or medium scale organisation each of them are operating in both online and offline modes. Other small business organisations have created website and web pages along with beautiful presentation of their work to attract and retain consumers. However, the site of Sweet Harvest Cakes is not that attractive it is very common and normal one as compared to other small to medium scale business. Other sites of small baking business have much creative and attractive Facebook handles with frequent upload of photos videos and post to keep their consumer engaged. Other businessperson keeps tracking the activity and suggestion given by the consumer in order to work on them for better performance.

On the other hand, Sweet Harvest Cakes is not frequent with their post and less engaging with consumer. Furthermore, other sites of the competitors comprise of different types of activities such as polls and question and answers with their consumer or viewer to get their ideas about their work in order to improve in future. In today’s world where the competition is soaring day by day, every business organisation has to be technically advanced to be in the competition. Therefore, for growing or new business it is highly necessary to look out for cheap yet technically advanced approach to make the business be in the digital platform. Furthermore, the cake shop should start collaborating with other bigger brands of companies in order to get more work and for recognition, this will also aid in creating contacts and taking new opportunities.

Part B: Website re-design strategy using Shop-ify
Shopify is termed to be a multinational e-commerce retailer known popularly as a store builder (Larkin, 2014). Sweet Harvest Cakes comprises of a number of other factors, that have had an influence over their sale of materials and items, which would be significant and utilised by the company. Retail branding plays an instrumental role in meeting the need of the business sector. In the words of Levy Weitz&Grewal (2018), Sweet harvest should be able to present their services for meeting the need of the customers. According to Perrey&Spillecke (2013), the importance of retail, branding lies in the growth of return of investment for the company. It should be noted that through the integration of strategy of redesigning, the company is able to set better standards and feature, which would help in the growth and functioning of the business systems.

The utilization of Shopify will be essential in the maintenance and repositioning of the branding system. Additionally, it would be suggested that Sweet Harvest Cakes can create a website designed by using shopify for the growth and development of its business by using the advanced technology. The business being a cake shop should go for the Bakerix- Bakery responsive shopify theme, which designs best shopify theme for bakery shops for better presentation. The main of the theme is to shopify functionality that means one can sell their product on digital platform. In addition, the application of this is very easy. However, a certain amount needed to be paid to the Bakerix designer for the page design. This will approximately cost $139 for the creation of fascinating webpage. Moreover, apart from presentable outlet and attractive webpage template shopify also benefits the business as well as consumers in many ways. Taking in to account the business perspective the theme offers various features and aspects, which would make the business smooth and outreaching consumers.

The advanced theme option and multi currency features aids the business along with consumers to deal in different currency with and ease. in addition, it become easier for the consumer to explore the business with the website as this contain the useful, and important information about the products and service of the organisation in an attractive and easy way. In addition, with the help of the theme, the business can look out for the suggestion and feedback of the consumer to improve its work and also customize their product as per the consumer demands. Therefore, all in all this is very much useful and effective. However, the business has to invest in this theme while creating as the cost varies as per the theme and designs.

Figure 4: A webpage design done by Bakerix shopify

Part C: Email marketing campaign using Mail-chimp

(Source: Created by Learner)

The mail-chimp has been suggested for boosting and creation of design layouts, which is significant for meeting the need of the customers. The role of the design system, will be used to represent the omni-channel system, which is of importance for the business. This also portrays the growth of the major areas, that would work for intending to the growth of the business. Mailchimp, will be making the utilization of these systems to increase customer awareness of the business.

Conclusion
The given retail marketing report discusses about the chosen small business named Sweet Harvest Cakes, which operates from home in Australia. The reports shed light on the features and aspects of the chosen small-scale business, which is still thriving. Different characteristic such as background, target market and positioning of the business has also been discussed in the report.It is been noted that business operates in a very small scale and to very few consumers only. In addition, Sweet Harvest Cakes has its presence in digital platform such as Facebook and Instagram that act as business-to-business collaborator for the organisation. However, the company has only Facebook account and no website therefore it was needed to create website for the company with the use of shopify.

The platform has been created taken into consideration the various steps, which were required to meet the need of the business. It is of importance to note that the business endorses the sale and product customization of the cakes and bringing in an online payment and delivery system for business. It would re-launch the website via the free plan, which is essential for meeting the need of the business in a better and appropriate manner.Additionally, it would be essential for the company to use direct marketing to boost its growth and development.

Reference List
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Levy, M., Weitz, B., &Grewal, D. (2018). Retailing Management 10E. Boston, MA: McGraw-Hill.

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