NORTH SOUTH UNIVERSITY

Assignment 1

Course Name: Strategic Marketing

Course Code: MKT460
Section: 5
Semester: Spring 2024

Submitted by: Group 2

Name ID Contribution
Nusrat Jahan Sinia 2111467030 Question 1
Muttada-Al-Sabah 2111596630 (SWOT Analysis)
Ayesha Erana 2111950630 Question 2
Md. Shahjad Nur Seyam 2013452630 (PESTEL Analysis)
Akib Ahmed Habib 1911239030
Hrithik Samuel Purification 2111166030 Question 3
Bishal Saha 2111168630 (Porter’s Five Forces Analysis)
Probal Kumar Datta 2111594630

Submitted to:
Ms. Sherina Idrish (SEH)
Sr. Lecturer
Department of Marketing and International Business
School of Business & Economics
North South University
 Table of Contents

Answer to the Question No. 1 ...................................................................................................... 3

SWOT TOWS Analysis .................................................................................................................................... 3
Answer to the Question No. 2 ...................................................................................................... 5
A. PESTEL Analysis .................................................................................................................................. 5
B. Scenario Analysis Graph Based on PESTLE ...................................................................................... 7
Answer to the Question No. 3 ...................................................................................................... 8
A. Porter’s Five Forces Model analysis .................................................................................................... 8
B. Table these factors based on their strength (High. Mid and Low) with regards to OTFL. ........... 9
References .................................................................................................................................... 9

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 Answer to the Question No. 1
SWOT TOWS Analysis
Strengths Weaknesses

S1 A well-known and respected brand in W1 Limited visibility on social

the financial industry for 28 years. networking platforms.
S2 A well-established electronics W2 The primary point of interaction
industry distribution network. being Facebook sites.
S3 Profitable endeavors across many W3 The absence of several branches to
industries . align growth tactics with goals.
S4 Suburban and urban market expertise. W4 The restaurant and café business
S5 A substantial market share in specific uses a distribution setup that is not fully
industries, such as Cold Stone Creamery. utilized.
S6 A growing tendency of eating out as a W5 A fierce level of market
result of changing lifestyles. competitiveness.
S7 Four years of experience in the food W6 Insufficient marketing and branding
Internal Factors sector. initiatives in comparison to rivals.
S8 Profitable SBUs. W7 High rates of staff attrition.
External Factors S9 Making use of financial options W8 Lack of skilled workers with
through crowdsourcing. industry-specific knowledge.
S10 Productive Ramadan menu W9 A reliance on seasonal ingredients
selections. that presents logistical obstacles.
S11 Availability of foreign franchises
under Kahala Brands (Taco Time, Planet
Smoothie).

Opportunities SO Strategies WO Strategies

O1 Increasing S1O6 Boost your social media presence W3O1 Open several locations in
consumer demand for to take advantage of the increasing trend prosperous regions to take advantage of
high-quality food at of internet usage and connect with more the expanding out-of-home dining trend.
affordable costs. prospective clients. (Why: Increase brand (Why: Expand market reach; How:
O2 A shift in consumer exposure, How: Increase engagement Identify high-demand regions through
tastes toward quality through promotions and tailored content). market research and provide funds for
and wellness. S1O4 Make use of your respect and solid strategic expansion).
O3 Geographic brand reputation to draw in investors so W6O2 Invest in marketing initiatives
expansion. you may expand your business into more that emphasize the quality and health
O4 Possible profitable regions. (Why: Boost market benefits of products to capitalize on the
cooperation with global presence, How: Offer investment options growing consumer awareness of food
chains for additional based on brand credibility and quality and health by strengthening
expansion such as prospective rewards). branding and marketing efforts.
Banani, Uttara, Mirpur, S11O9 Take advantage of the opportunity W1O6 To capitalize on the expanding
and Bashundhara City. to collaborate with international chains trend of internet usage), invest in
O5 Public funding for under Kahala Brands and leverage infrastructure and technology for online
the development of experience in the food industry to ordering and delivery services. (Why:
infrastructure. introduce healthy street food options. Improve customer convenience, How:
(Why: Tackle the growing demand for

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O6 Growing use of the healthier options, How: Collaborate with Create user-friendly mobile apps and
internet for sales and Planet Smoothie and Taco Time to create optimize delivery logistics).
marketing. and market wholesome street food W9O2 Work together with nearby
O7 A shift in consumer options). farmers and suppliers to minimize
tastes toward fine S10O1 Expand seasonal promotions and logistical obstacles and guarantee a
dining at fair costs. take advantage of festive occasions all consistent supply of fresh ingredients.
O8 Possibility of year long by leveraging the success of (Why: Make sure items are fresh and of
Orange and Half cafe your Ramadan menu offers. (Why: high quality; How: Form direct sourcing
brand growth and Increase income through seasonal alliances and make investments in cold
development. promotions, How: Develop themed chain infrastructure).
O9 Opportunities for menus for other ethnic and religious
innovation and events).
expansion in the food
and beverage sector.

Threats ST Strategies TW Strategies

T1 Vigorous rivalry S2T7 To lessen the threat of overcapacity T5W7 To reduce the chance of shortage
between current and strengthen the distribution setup for the and logistical difficulties, diversify your
new competitors. restaurant and café industries. (Why: sources for fresh materials. (Why: Make
Improve operational efficiency, How: sure the supply chain is consistent; How:
T2 A market that is Streamline distribution procedures to Look for alternate suppliers; Spend
sensitive to pricing and reduce costs and boost profitability). money on logistical infrastructure).
has low-cost
alternatives.

T3 Modifications to S9T8 To counter the threat of high T3W5 To reduce the impact on
regulations (such as employee turnover rates concentrate on profitability, work with industry
VAT and quality staff retention initiatives. (Why: Preserve associations to address government
standards). productivity and service quality; How: policies influencing import duties and
Put in place training courses, chances for VAT (Why: Preserve cost-effectiveness;
T4 How consumer professional growth, and rewards for staff How: Promote industry-friendly
behavior is impacted by members). legislation; Participate in policy
climate change. discussions and lobbying campaigns).
T1S5 To keep ahead of fierce
T5 Fresh ingredient competition, concentrate on product T3W8 Implement operational
shortage affecting innovation and differentiation. (Why: efficiencies and cost-cutting strategies to
supply chain and Preserve market leadership, How: Offer counteract the effects of government
quality. exclusive menu items, seasonal dishes, actions influencing import duties and
and transient promotions. VAT. (Why: Continue to be profitable in
T6 The competition spite of regulatory obstacles, How:
from inexpensive T2S6 In order to counteract the threat of Renegotiate contracts, streamline
substitutes and price sensitivity in the market, strengthen operations, and allocate resources
alternatives. customer loyalty programs. (Why: Retain optimally.
existing customers and attract new ones,
T7 The industry's How: Implement incentive systems, T7W4 Diversify income sources by
overcapacity. offering event hosting and catering

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T8 A severe lack of discounts, and exclusive offers for loyal services to reduce the possibility of
skilled laborers. customers). industry overcapacity. (Why: Bring in
extra money from different sources;
How: Promote catering to businesses;
Hold parties and private events in
restaurants).

Answer to the Question No. 2

A. PESTEL Analysis
Source Description Implication C I
Political P1. Stable political P1 +ve: stable situation ensures smooth operation = 3 5
situation with some increased sales = increased profit.
unorganized unrest

P2. Government’s P2 +ve: developed infrastructure> smooth operation 3 4

investment in = beneficial for customers> increased sales =
infrastructure increased profit
Economic E1: “tiger economy” E1 +ve: growing economy means growing spending 3 4
with GR 8.13% ability of customer = increased sales = increased
profit

E2: Per Capita Income E2: +ve Same as E1 3 5

$1,888 (2019)

E3: Inflation rate at E3: -ve increased items price + decreased spending
5.52% (Current) ability of customers=decreased sales= decreased 5 5
5.62% (expected) profit

E4: Increased interest E4: -ve changes customers spending behavior, more
rate likely to save rather than spend =decreased 3 5
sales=decreased profit

E5: Statista predicts that, E5: +ve: Per Capital Income increase + Purchasing
Per Capital Income of power increase = Sales Increase 2 4
Bangladesh will be
$2846 by 2024
(Bednarz, 2024)

E6: Current Inflation E6: -ve: Inflation increase + Purchasing power

rate in Bangladesh is decrease = Sales decrease
9.86 (2024) 5 5
(Trading Economics,
2024)

5
Social S1: Changing preference S1: +ve changes in preference = increased sales = 4 5
of eating outside rather increased profit
than eating in home

S2: middle-income class S2: +ve more customers = increased sale= increased
spending on food profitability 5 4
outside the house.
Technological T1: technological T1: +ve increased customer engagement = more 5 5
advancement for better aware customer = increased sales and profitability
marketing and customer
engagement

T2: Technological T2: +ve: Increase in technological advancement +

adaptation rate and Increased Accessibility = Increased Sales 4 4
internet users increased
by 1.0% from the
previous year. (2024)
(DATAREPORTAL,
2024)
Legal L1: New law requiring L1: -ve increased cost in packaging= decreased 3 3
labeling of food profit
information on packed
food

L2: Changes in carbon L2: -ve increased cost = decreased profit 3 4

tax and emission limits
affecting the FnB sector.

L3. Imposition of a flat L3 -ve: tax imposition +cost of eating in restaurants

15% VAT for all increased for customer+ decreased sales= decrease
restaurants profit 5 5

L4: Recently the L4: +ve: Less Tax + Less cost of goods = Increased
government has sales
proposed 5% tax for the 2 3
restaurant sector in the
national budget for
FY23. (The Business
Standard, 2022)
Environmental En1: Scarcity of fresh En1: +ve can decline quality+customer 5 5
ingredients due to dissatisfaction=decline in sales=decreased profit.
logistic and
infrastructure issues

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 B. Scenario Analysis Graph Based on PESTLE

Negative Factors = Red E3

Positive Factors = Green
Certain E6
T1
L3
En1
S2
5

T2 S1
4

P1
P2 E2
E1 E4
L1
3

0 1 2 3 4 5
E5
L2
Not Important L4 Important
2

Uncertain

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 Answer to the Question No. 3
A. Porter’s Five Forces Model analysis
Forces Variables Numerical Values
Requirement of high initial investment 2
Product variances 2
Threat of new Achieved brand identity 3
entrants Low switching Costs -2
Government Policy -1
Absolute cost advantage 2
Average 1
Significance A positive value signals low entry threats, providing stability for Olive Tree
Foods Limited and established market players.

Forces Variables Numerical Values

Limited negotiation power of suppliers 2
Bargaining power of Dependence on bulk buyers 1
suppliers Impact of govt. policies on imports and vat (govt. -1
raised 3% carbon tax)
Presence of substitute inputs 1
Average 0.75
Significance With a moderate positive value, suppliers hold some influence, but Olive
Tree Foods Limited maintains negotiating power for a balanced
relationship.

Forces Variables Numerical Values

Buyer switching cost relative to firm switching -1
cost
Substitute product -2
Bargaining power of Brand identity impact on performance 2
buyers Buyer concentration 2
Price sensitivity of consumers -2
Increasing health and quality consciousness -1
Average -0.33
Significance Slightly negative, indicating limited buyer influence, Olive Tree Foods
Limited can control pricing and terms to a certain extent.

Forces Variables Numerical Values

Relative price performance of substitutes -1
Switching cost -2
Threat of substitute Growing consumers preferences for healthy -1
options
Average -1.33
Significance Highly negative, highlighting a significant threat from substitutes, urging
Olive Tree Foods Limited to differentiate strategically.

Forces Variables Numerical Values

Growing industry 1
Fixed cost 1
Product differences -2

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 Intensity of rivalry Switching cost -1
Exit barriers -1
Diversity of competitors -2
Good brand identity 2
Average -0.29
Significance A strong negative value underscores high competition, necessitating Olive
Tree Foods Limited to employ unique strategies in a fiercely competitive
market.

B. Table these factors based on their strength (High.

Mid and Low) with regards to OTFL.
FACTORS LOW MEDIUM HIGH
Threat of New Entrants 1

Bargaining Power of 0.75

Suppliers
Bargaining Power of Buyers -0.33
Threats of Substitutes -1.33
Intensity of rivalry -2

References
Bednarz, J. (2024). Statista. Retrieved from Research Gate: https://www.researchgate.net/figure/GDP-per-
capita-in-Bangladesh-in-2013-2024-in-USD-Source-Statista-2020_fig1_347126463
DATAREPORTAL. (2024, February 23). datareportal.com. Retrieved from DIGITAL 2024: BANGLADESH:
https://datareportal.com/reports/digital-2024-
bangladesh#:~:text=There%20were%2077.36%20million%20internet%20users%20in%20Bangladesh
%20in%20January,January%202023%20and%20January%202024.
The Business Standard. (2022, June 9). 5% tax for restaurant sector. Retrieved from https://www.tbsnews.net/:
https://www.tbsnews.net/economy/budget/5-tax-restaurant-sector-436298
Trading Economics. (2024, January 22). Bangladesh Inflation Rate. Retrieved from
https://tradingeconomics.com/: https://tradingeconomics.com/bangladesh/inflation-
cpi#:~:text=3%2DMonth%20High-
,Bangladesh's%20annual%20inflation%20rate%20rose%20to%209.86%25%20in%20January%202024,
(6.92%25%20vs%206%25).