The Steeple Analysis ofa Cookery School and Textile Business - Case Study Example

DIGITAL MARKETING CASE STUDY of the of the STEEPLE Analysis The STEEPLE analysis highlights certain external forces likepolitical, economic, social, environmental, ethical, legal and technological aspects. This analysis will be associated with cookery school and textile business based in UK market. In United Kingdom, lesser section of people is visible in the market. Majority of UK population have monthly income within range of £200 to £300. This has been elaborated in figure 1. Figure 1: Income Distribution (Source: The World Bank, 2015) Income distribution in recent years clearly portrays lifestyle changes of consumer market segment. They are inclined towards purchasing high quality products. Their lifestyle also denotes a proper work-life balance. As per the demographic segmentation, there is increased percentage of middle age group individuals in UK market. Poverty level is considerably low in UK market due to economic stability in the geographical region. Cookery and textile business is utilizing online platform to communicate with target audience (Bea’s Handmade, 2014). Expert classes are designed for students along with production of unique textiles for UK consumer market segment. However majority percentage belongs to middle income group segment and this requires proper designing of communication strategy. Technological developments in UK have been able to transform its business environment. UK government is actively involved in lump sum investment towards research and development activities. Funds of £4 billion have been allocated in R&D sector. Key developments have been mainly in communication and internet segment. The rapid change of broadband diffusion has enhanced growth of internet and mobile communications. Technological development has also encouraged transfer of high street shops to online platform. This aspect has been incorporated in the marketing strategy of cookery and textile business. Online platform such as Facebook, Twitter, etc., is being utilized by the firm to promote products and interact with customer base (UK Parliament, 2015). Governmental support towards developing new communication channels shall be an opportunity for the business in future years. As per the analysis on income distribution in UK market, majority of population belongs to middle income group segment. This might negatively affect Becky’s business to certain extent since individuals would not have high disposable income to be spent on cookery classes or handmade products. Positive impact on the business shall be in the form of governmental support to promote textile products. Culture of UK denotes a proper work-life balance, and this can positively affect business since parents would be highly determined to send their children for cookery classes. Global economy has not achieved momentum position since there is presence of global financial crisis. Global growth in current scenario witnessed a marginal growth by 2.6 percent. Monetary policy and labour markets are highly accommodative, and this has contributed towards gathering momentum in United Kingdom and United States. Japan and Euro Area are still witnessing financial crisis and this is tightening demand flow. Developing countries have limited demand due to restricted growth margins and this has also facilitated supply constraints. China is facing slow economic growth. Developing countries are expected to grow in coming years. The inflation rate in UK has been highlighted in figure 2. Figure 2: UK Inflation (Source: The World Bank, 2015) As per figure 2, UK economy witnesses high inflation rate marginally in relation to target rate. This clearly indicates that to certain extent people would be cautious about their overall spending. Low levels of GDP growth is observed in UK with high probability of double dip recession. Unemployment trend has increased in UK market and this has resulted into improved conditions for richer segment. The overall disposable income per household in UK is approximately £16,042. This economic mood indicates that customers shall be willing to spend towards textiles and cookery classes. It is an opportunity for the firm to grab attention of customer market segment. On the contrary, there are individuals who are adversely affected by inflation rate and might not rely on digital platform to purchase products. The rate of customer spending denotes reliable economic conditions of the country. International trading of businesses would not be suitable because of economic turmoil occurring across global market place. As per the statistics unemployment rate have improved lifestyle conditions of higher income group. This would create positive impact on Becky’s business. Individuals would be attracted towards such innovative handmade products. Disposable income is relatively high in this segment and it would generate profit margins for the business. On the contrary, its negative impact will be in context of limited target audience. Economic turmoil will negatively affect business operations of Becky. This is simply because fluctuating exchange rates will adversely affect business operations across national borders. The physical environment of UK is subjected to hurricanes, forest fires and earthquakes. Inappropriate weather conditions such as extensive snowfall or floods greatly affect business operations. Customers are becoming conscious about impact of business operations on external environment. Global warming is an area of concern not only for United Kingdom but also for other regions. Increased rate of carbon emissions from business operations, transportation, etc., is resulting into drastic climate change. Natural disasters in UK are a result of this form of imbalance in external environment. Environmental regulatory framework is designed by UK government which clearly outlines maximum percentage of emissions possible through business operations and compulsory utilization of alternative methods. Natural disasters always have negative impact on such businesses due to disruption of original business set up. Textile or cookery classes will not violate such environmental norms. On the other hand, digital marketing strategy adopted by the business is also well aligned with environmental standards. There exists high degree of political influence on any form of business operations. Political decision such as percentage of tax rate is an essential aspect hindering or enhancing business operations. This aspect is closely knitted with income tax rate and corporate tax for business organizations. Corporate tax rate in UK market has been deliberately lowered in order to initiate economic activity in the region. Interest rate is also low in UK and this supports long term borrowings from business perspective. Lisbon strategy framed by UK government was for stainable economic growth. This strategy stated that more investment shall be done in R&D sector along with upgrading competitiveness reform, modernization of social model of Europe and sustaining economic growth prospects. Corporate tax rate is kept low by government in order to encourage entrepreneurs to come forward with innovative ideas. To be more precise this factor shall help Becky’s business to establish its market position for long run. The chosen business will be benefited by lower rate of corporate tax and more emphasis can be given on digital marketing platform. The legal factor in UK encompasses corporate governance which highlights proper functioning of business operations in compliance with environmental standards. Every business based in UK market needs to portray their contribution towards society. Import and export of services can be done smoothly in UK market. Tax imposed on profit of exports in UK is similar to that of any business. The trade regulations are well aligned with norms designed by World Trade Organization. This is an opportunity for the business since trading can be effectively exhibited through online platform (UK Trade and Investment, 2012). Trade regulations would positively affect business operations since market opportunity can be explored through entering into international markets. On the contrary, it can even negatively affect business due to entry of wide range of players from foreign countries. Ethical factor indicates the level of trust, confidentiality and reputation needs to be maintained by business firms in UK marketplace. Businesses in this region have to be well aligned with interests of customers and other supply chain partners. Ethical aspect is bound to affect business both positively and negatively. For instance, proper ethical conduct might enhance brand image of Becky’s business but not being aligned with ethics shall disrupt corporate image. This would not be suitable for long term business growth. The cookery and textile business have adopted best practices in terms of utilizing social media like facebook, twitter, etc., to communicate directly with end customers. Suggestions and Recommendations Cookery classes are designed for those children who are inclined towards extracurricular activities. On the other hand, textile business would be unique providing handmade products. Cookery school shall address demand of local market and implement effective digital marketing strategy. STEEPLE analysis clearly states that middle income group segment is relatively high in UK market. This group is focused on quality of products and possesses desirable disposable income. Cookery school needs to provide demonstration on social media sites so that customers can easily connect with business offerings. It is recommended that the company design a community on these sites in order to acquire customer feedback. Financial investment needs to be prevented and this ca achieved through enhancing connectivity with customers. Innovative recipes can also be given on these social media sites in order to attract attention of parents. This is simply because parents should be motivated firstly in order to influence children to attend schools. Textile business is a creative way to acquire desirable market share but it shall face a major challenge in the form of high prices. This challenge can be subdued by focusing on technological development in UK market place. Government spending is considerably increasing in this sector and it can be grabbed as an opportunity for the business. Pop-up advertisements about these products can be displayed in various social media sites. This would serve as a trigger in consumer mind. It is recommended that online platform should be used by the business as well as some editorials in order to access wider consumer market segment. References Bea’s Handmade. (2014). Cookery. Retrieved from: http://www.beashandmade.com/cookery.php The World Bank. (2015). Having fiscal space and using it. Retrieved from: http://www.worldbank.org/en/publication/global-economic-prospects. UK Parliament. (2015). Research and development funding for science and technology in the UK. Retrieved from: http://www.parliament.uk/business/committees/committees-a-z/commons-select/science-and-technology-committee/inquiries/parliament-2010/research-and-development-funding-for-science-and-technology-in-the-uk/ UK Trade and Investment. (2012). Import export services: Advice and guidance. Retrieved from: https://www.gov.uk/international-trade-in-services-import-and-export-regulations. Read More