Strategic Response to Challenges

Sample Answer

Marketing Report: Strategic Response to Challenges at FreshBite UK Ltd.

Organisation: FreshBite UK Ltd.

Contents

1. Introduction

2. PESTEL Analysis and Discussion

3. SWOT Analysis and Discussion

4. SMART Objective and Justification

5. Marketing Mix Outline and Justification

6. Conclusion

7. Bibliography

Introduction

FreshBite UK Ltd. is a mid-sized company operating in the fast-casual dining sector, specialising in healthy and organic meal options. Established in 2010, the company has expanded to 25 outlets across the UK, primarily in major cities. Its brand appeal lies in offering affordable yet nutritious food to health-conscious urban consumers. However, the company is currently facing a series of business challenges, including declining customer footfall, increased operational costs, and growing competition from food delivery platforms and chain restaurants.

This report aims to assess the macro and internal factors contributing to FreshBite’s challenges and propose a SMART marketing objective supported by an integrated marketing mix strategy. A detailed PESTEL and SWOT analysis forms the foundation for strategic recommendations. The focus is the UK market, where the company faces its greatest pressures.

PESTEL Analysis and Discussion

Political

The UK government has increased its focus on public health and nutrition, introducing levies on sugar and promoting healthy eating campaigns. These initiatives align with FreshBite’s values but also mean stricter compliance costs and labelling requirements. Additionally, Brexit-related import tariffs have increased food costs, especially for organic ingredients sourced from the EU.

Economic

The cost-of-living crisis and high inflation have impacted consumer spending in the UK. Many consumers are cutting back on eating out, favouring cheaper alternatives. Meanwhile, rising energy costs and staff wages, driven by the National Living Wage increases, have added to FreshBite’s operational expenses. Economic uncertainty has also dampened investment in expansion or innovation.

Social

There is a strong consumer trend towards health and wellness, including demand for vegan, gluten-free, and organic food options. FreshBite is well-positioned here. However, time-poor consumers increasingly prefer home delivery over dine-in services, and there is a growing reliance on online reviews and social media in decision-making.

Technological

Rapid advances in food delivery technology and mobile ordering apps have transformed how consumers access food. Competitors like Deliveroo and Uber Eats dominate the digital space. FreshBite has been slow to develop its own app or partner effectively with delivery services, which has limited its reach and competitiveness.