The Evaluation of Aroma Company Business Behaviours
Small business is one of business form. It plays an important role in a society contribution. According to Churchill (1987), it is define that small enterprise should has 10 to 49 employees. Aroma is one of UK successful Chinese buffet inn. It establishes the first restaurant in Stevenage in the year 1997. After 3 years development, it develop its second restaurant because the specially test food and reasonable price strategy. There are various kinds of food operate in Aroma, which include fire food, tipanyake, rice, noodles and fruit, even the restaurant supply desert at weekend. There are 7 branches around UK. Aroma is an excellent example in small business. In this report, it has two main parts, in the first part, it aims to explain business behavior about Aroma Company, which will from networking, marketing, and promotion branding and sales four aspects respectively with 4Ps theory. In the second part, it will display that the company difference with its competitor through SWOT theory, which is aim to analysis Aroma core competence.
2. Business behavior in Aroma Company
Market actually is different kinds of relationship, this relationship just like a system. There are many roles in this system, supplier, competitor, family, friends and private and public support agencies. (Carter at el, 2006). Aroma has well performance on networking area. It force on two aspects. The first one is networking with customer. The second is networking with supplement. Because the networking efficiently, Aroma attract lots of customer and this is one of the reasons why it has success.
2.1.1 Networking with customer
The main target market of Aroma is young population. No matters from the restaurant decor style to food favor are satisfied young age customer. In order to attract more target customer, the company insists do activities as following.
First, for social network aspect, the company will hire numbers of part time staff from university in weekend. The first reason is because the restaurant is busy in weekend, the second is though those staff to make a free advertisement for Aroma. The company has a reward strategic which is any staff can get commission if the staff can introduce numbers of customer. Therefore, after young customer first time to Aroma, they will attract by Aroma.
Second, for artificial networks, Aroma has a corporation with charity. The company wills sale their food in university or in shopping mall with very low price regularly. All the profit will donate to the charity which are they corporate with. When customer consume, staff will gives a vouches and buffet menu, it helps Aroma attract lots of customer.
2.1.1 Networking with supplement
Aroma has online excellent online booking system. Aroma is an popular restaurant right now, especially the one in Stevenage. In order to satisfy needs of customer, the buffet accepts online booking. If you and your friend want join meal in Aroma, it is easy to find the official website, customer can sleeted date and time they want to go, even customer can selected where they want to sit. If one restaurant is over booking, the system will recommend the other branch most nearby and give some discount.
2.2.1 Strategy clock
Before the marketing mix analysis, it is necessity to understand what Aroma market option choice. Strategy actually is a kind of choice. To choice product, choice target marketing and chose market position. Because the different size and company competitive, it will has various combination of strategy choice. To set up a reasonable strategic choice is the key step to get into market and gain market share. Strategic option theory could help an organization set up marketing position. According to Bowman’s Strategic Option, what Aroma’s strategic option is to hybrid market position, which is low price but with high perceived added value. Aroma has a range of food style, but maintain low price, which is fix hybrid strategic option. Aroma aims to be a public famous Brand, therefore, it is not depends on high price to maintain profit but a numbers of loyalty customer.
Graph one: The Strategy Clock: Bowman’s Strategic Options
2.2.2 Marketing mix
Marketing mix analysis is important for an organization before step into target marketing. It is necessary to considerate environment, self-ability, and competitor aspects. To make sure company has the best state involved business. A successful business always has a well marketing mix strategy (Borden, 1964). This is the same to Aroma. In the year 1960, Doctor McCarthy points our 4Ps theory. It displays that all business should star from product, place, price and promotion. This report will through marketing mix theory to analysis Aroma business behaviors.
Product: product is the first step about a company step into a market, an outstanding product will guide a company achieve success ( Warerschoot, 1992). aroma has a range of food, it divided in to seven parts which are fire food, rice and noodle, seafood, soup, tipanyake, fruit and desert (see appendix 7.2). Aroma has different combination between lunch and dinner, between Monday to Friday and weekend. It is hard to find another buffet which can like Aroma have various dishes. Beside, the food in Aroma is not like other Chinese buffet, beside the traditional food like dumpling and roster duck, it has lots special element, for example, in charismas day, every customer will has unique dessert. In Valentine’s Day, all fire dishes are made by rose or with rose-share. What is more, Aroma are running take away business and party at the same time.
Place: Place include distribution, location and agent (Warerschoot, 1992). Aroma is highlighting the location element. For different business strategy, company will selected different local to run business. Aroma has seven branches, one in Stevenage, one in Hemel hempston, one in Luton, four around London. All location has one characteristic, which is huge flow population. It is easily to attract more customers. There are two reasons for Arome to selected central position. First, Aroma is implement low price strategic. The number of customer can guarantee company profit.
Price: A company should set up different price in different product life cycle and period. What Aroma runs is a “high quality, low price” service. However, the company is not always maintaining the low price, it will rise price in holiday and weekend and reduce price in European Union football game period. However, for some price rise period, if customer can book in advance, company will give 10% discount. Beside, the company has different price for take away, it sell 3.99pounds a box. It is possible to select any food on displays. If customer order 12 box or more, the extra boxes are selling 2.99 pounds (see appendix 7.3).
Promotion: promotion is a company though different ways to stimulate customer pay attention to product, and finally buy it. Promotion actually is an efficient communication, it like a linage to connect company and customer (Cateora, at el, 1990). There are four types of promotion, which are advertisement, operation, public relationship and personal selling. First, Aroma makes its advertisement on bus station. People may use the space for wait bus to read the slogan which is show on. Second, Aroma will held some parties regularly, the party price usually higher that the company price because sometime will hire some performance on show during the meal time. Thirdly, Aroma has long-term corporation with some charity, it will sell their food on weekend on shopping mall and university. In order words, Aroma is charity sponsor, when people get to know the charity, then will pay attention to Aroma. The last, personal selling in a key part in Aroma promotion, the staff in Aroma in every week will take some food in the town/city center for free to passage. If any customer interesting to Aroma, the staff will give a brief introduce to them.
3. Promotion branding and sales
Brand marketing play an essential role in business, the higher level marketing actually is selling brand. To establish an positive company reputation satisfy customer needs. This is an key step to maintain more loyalty customer (Grimes, 1995). Beside, to establish valuable brand, it is easier have chance to corporation with other companies. There are four aspects for promoting brand, which are brand personality, brand communication, brand sales and brand management. The table below is showing how Aroma fix this theory.
Brand Personality( BP):
BP included brand name, brand design, product content, and style and so on( Burns, 2007). The logo of Aroma buffer is an Chinese word which is call Yun. This Chinese word has two ways explanation. The first one is mean lucky. It is mean that Arome will fix market after the company make develop strategic. The second meaning is smooth. It means Aroma can develop fast. Beside, to select an Chinese word as the company logo, which is suitable for the restaurant style.
BC included advertising style, advertising target market, and advertising activities. In other word, BC is relative to make advertisement (Burns, 2007). It is the most direct way to step public attention. Aroma has various changes under high product quality. However. Aroma still weak on BC aspect, if the company could allocate more fund on advertisement, it might get more profit.
BS included personal selling, discount and advertisement selling. This kind of sales could be only one media or several media. It all depends on the market needs (Burns, 2007). It is difficult for the company spend huge money to brand sales as it is only a small company. However, Aroma from to aspects to do brand sales, the first one is Aroma corporate with local charity organization, the second on it will sell product every weekend on university.
BM included organizational structure, the policy of promotion, motivation and distribution management (Burns, 2007). Aroma is a hierarchy organizational structure; all the direction and decision are need though general manager, staffs have no rights in business decision. Once customer has feedback, lower level employee cannot make decision. Therefore, the communication between customer and company is not sufficient.
4. Compare with Aroma’s competitor
There are various Chinese buffet in UK, the strongest competitor to Aroma is Huang Company. This company established in the year 2001, even though it only has 11 year development history, it has strong ability to against Aroma. Huang is a buffet which is similar like Aroma, the table below is showing the different between two companies.
Huang has fast development, even though two company has similar strategy, Aroma still popular than Huang company. it is because Aroma has relative long development history, beside, it is the first buffet with variable style change, which will deep in customer’s heart. In order to make positive future development strategy, it is essential to use SWOT theory to analysis Aroma current situation.
4.1 SWOT theory analysis
SWOT theory is an efficient tool to analyze a company business strategy and behaviors. McCarthy(2010) points that though strengths, weakness, opportunities and threats to analyze company core competence and strategic option. it is necessarily to use SWOT theory evaluate Aroma as it is a small business. it will helps to understand the company business behaviors
To understand what strengths the company has, it is have a chance to develop its core competence. Aroma has its own business style. It implement “low price, high quality service” which is popular in public life. What Aroma’s target market is young population, the buffet decor and various food are satisfy the needs of target customer.
Beside, the local of each branches are in town/city central. It is easier to catch customer’s eyes. For example, one branches of Aroma in London near Westfield shopping mall. There are only five staff in the restaurant, but they can take care all customer from lunch time to close.
Aroma had poor organization communication, the main reason is because the hierarchy organizational structure. The graph below is showing Aroma organizational structure. There are five management level in Aroma organization, in each branches has two manager and two team leader under them. However, under the size of Aroma, in each branches maximum will hire 25 staffs, in some branches may only have 15staff. That is to say, the number of people in management level nearly equal to the number of staff. First, this kind of organizational structure has negative communication. It is hard for CEO collect information on time. Beside, because staff has no authorization, which may influence staff enthusiastic. Staffs are in pressure work environment for a long time. It in a large measure will influence service quality.
Graph two: the organizational structure of Aroma
First, Chinese food is getting popular in the recent years. Under Chinese culture influence, more and more people interest on Chinese food. Most of branches of Aroma are near university of shopping mall, which are the places has many different nationalities. If Aroma is make advertisement efficient and properly, it will possible to gain more market share and profit.
Secondly, there is more and more Chinese student study UK. It is a good chance to Aroma. Even though Chinese currency against pound is appreciate, to consumer in UK still expensive for those oversea students. Therefore, they more are willing to buffet with Chinese style but price relative low. It is an opportunities to Aroma to make advertisement in university in each entry term. It is possible to give some free tickets for those Chinese students just study in UK.
First, compare with other Chinese buffet in UK, Aroma only has fifteen years development. According to product life cycle theory, Aroma only in growth stage, other companies like Huang already step into mature stage. It is hard to gain more market share. Beside, with the development of UK food industry, there are many different kinds of food starting get into UK. Beside Chinese restaurants, Aroma have to face competitor from India restaurants, Japanese restaurants, Thailand restaurants and so on.
Secondly, because the financial crisis happened in 2008, the UK economic still be influenced. The public in UK are not willing to spend money but save in bank. Under this situation, the company is hard to rise product price to make profit. Beside, because the needs of customer are not strong, Aroma have to spend more funds to make advertisement.
In this report, it mainly from four aspect to evaluate Aroma buffet business behaviors. In the first part, the report is analysis the company networking system from customer and supplement two aspect. Aroma has well performance on networking area. It will be the core competence in Aroma future development. in the second part, the report from strategic clock ,marketing mix and brand promotion three aspects to analysis the company marketing position. Aroma currently is in a hybrid stage, however, it generally come to differentiation stage. Though 4ps theory analysis, it introduce Aroma market situation and analysis reasons for the company success. The next part is mainly introduced the company competitor and use SWOT theory to analysis Aroma Marco-environment and micro-environment. It helps the company more clear which marketing position and product life stage stay in. Aroma is an optional business, even though it is a small business right now, it has lots of specially business concept. It is not easy from a small business to an international business. However, as long as the company gets well know each step in the market, understand customer needs, managing brand and reputation. It is possible plays a leading role in the future development.
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