Strategic Planning for Digital Marketing CommunicationsSummative Essay - 1

Strategic Planning for Digital Marketing CommunicationsSummative Assessment - Essay Example Moreover, the UK economy has also witnessed the presence of too many small, medium, and large food and drinks setups in last few years. This is mainly because of the fact that an average UK resident spends 11.3% of his income on food and drinks. There is no doubt that hotels and restaurants have been benefitted by the tourists and locals making way for the success but this has also resulted in the severe competition. Moreover, with 40% of the service tax on the total amount charged by the restaurants and hotels; there is a bit of burden on them in order to be competitive along with being ahead in the value creation process to strengthen the economy (Pesto, 2013). Business Challenges- Customer’s Point of View In last two years, an average UK customer has been spending more than 12% of his income on foods and drinks showing the interest level. However, with unemployment at an alarming high and reduction in the disposable income of people mainly because of the economic and busine ss situations; the overall spending of customers might plummet and thus causing concern for the restaurants and hotel (Pesto, 2013). Furthermore, hotels and restaurants have to pay service tax that is 40% of the total amount charged and in order pay service tax along with being profitable, it become important to concentrate on economies of scale. From customers’ point of view, it can be assumed that there are moderate concerns that may not affect the overall spending on food and drinks for a long period of time. Industry Challenges- Market Competition The hotel and restaurant industry has been affected by the rising inflation, low disposable income of consumers, and service tax structure. Moreover, there are a number of restaurants and hotels offering similar food items. Rollers Cafe is not the only cafe offering delicious Swiss rolls with an in-house open kitchen sharing the recipe with consumers. The chocolate cafe and Hames chocolate cafe are also offering different variet ies of chocolates to consumers. Thus, it can he assumed that the competition is quite high as consumers like to eat things that are different in taste and presentation. In order to attract customers, it is important to offer food items at an affordable and attractive price and in the case of Rollers, prices of food items start from ?2 and can be considered as quite impressive. The competition in the food industry can be mitigated by offering quality products and in the case of Rollers, it can be said that with utmost transparency and customer oriented approach; it has been successful to create a place for chocolate lovers. However, it may face challenges in coming years if lacking differentiation strategies (Kotler and Philip, 2012). Industry Challenges- Customer Perception There is no doubt that chocolates are loved by many and customers tend to buy chocolates for no reasons. At the same time, customers buy chocolates for gifting and other purposes (Adcock, et al, 2001). The percep tion of customers regarding chocolates is very hard to analyse and assess considering the fact that different customers have different preferences. Chocolates are considered as a source of delight and customers do not compromise with the quality. However, when chocolates are presented in a different manner and forms; they are preferred and liked by many (Lotz, 2007). Thus, it becomes important to switch to a product differentiation s