The restaurant business is highly competitive. Success largely depends on the business’s ability to implement a marketing plan that will give the restaurant the competitive advantage over other businesses. Any restaurant business must understand the marketplace and customers’ needs and wants if it wants to grow and compete effectively. The restaurant in this marketing plan is a dine-in, or carries out family owned business specializing in leisure dining. The restaurant has a good reputation within the small community of about 6,000 people. The marketing strategy is to promote new product to the public. This restaurant is open to the public Monday – Friday from 11am to 7pm. The restaurant is currently facing stagnant profit and a decrease in customers over the past few years. The company will implement different marketing strategies to maintain current business with local customers as well as attract new customers in order to increase revenue. Mission Statement
The mission of the restaurant is to ensure each customer receives professional, friendly, and courteous service. To provide our customers a warm dining experience while enjoying delicious family style cooking at an affordable price. To provide all employees with a satisfying rewarding environment which encourage long term employment. To maintain a clean, safe work environment and treat employees and customers with dignity and respect. Marketing Strategy
The focus is to make all our customers happy with our food and service. The restaurant currently allows smoking at the tables and as a result most customers have been driven away because of the smoke. In order to make our customers happy the restaurant will implement a no smoking ordinances to help protect the staff and customers from harmful tobacco smoke. The primary target market will caters to individuals and families who want to enjoy a good home cooked meal. By researching the demographics I will be able to pinpoint the target market in the area the restaurant can cater to them. Managing all four element of the marketing mix will enable the company to fulfill the standard of customers’ expectations. The four essential components which make up the marketing mix are product, price, place and promotion. The idea is to provide a product, which in this case food and service that customers want, price it competitively, place it in a location easily assessable, and promote it so customers know it exists.
The Business plan on Market Plan Cafe Internet Marketing Business
Marketing Plan for INTERNET CAF " ES IN Indictable Of Contents 1 Executive Summary 22 Situation Analysis 32. 1 Market Summary 42. 1. 1 Market Demographics 52. 1. 2 Market Needs 62.1. 3 Market Trends 72. 1. 4 Market Growth 92. 2 SWOT Analysis 102. 3 Competition 142.4 Services 142. 5 Keys to Success 162. 6 Critical Issues 162. 7 Macro Environment 173. 0 Marketing Strategy 173. 1 Mission 183.2 ...
The restaurant sales strategy is quite simple: diversification of the restaurant menu list. It will offer its customers a superior selection of food at a reasonable price as in the current menu price list. By adding something new to the menu list will attract new markets and stimulate sales. However, this marketing strategy “can be risky when a firm is entering unfamiliar markets. On the other hand, it can be very profitable when a firm is entering markets with little or no competition” (Lamb, 2013).
To fit the needs and wants of the target market, the family restaurant has to position and project its product at a unique level compared to other restaurant services. Since customers expressed a need to order homemade pies online, a website will be implemented to send messages and offer special promotions. Customers will have a choice of 17 varieties of baked and cream pies to choose from, price ranging from $12.99- $16.99 depending on the type of pie ordered. Special promotion will include monthly specials for pie of the month at a discount price of $8.99. These pies will be prepared throughout the day to ensure customers are getting fresh quality pies. The pies menu price list includes:
The Business plan on Service Marketing Report Of Sushi Restaurant
Tomodachi operates in the central business district with over 10 competitors around the vicinity. However, Tomodachi has been able to remain relatively competitive and active by maintaining its differential advantage as the only modern Japanese restaurant with a world class sushi train as well as an a la carte menu to cater for a full Japanese dining experience. Our service report analyzes ...
Apple PieBlueberry Pie
Apple Crumb PiePumpkin Pie
Peach Pie Cherry Pie
Key Lime PiePecan Pie
Banana Cream PieCoconut Cream Pie
Chocolate Cream PieLemon Meringue Pie
Boston cream piePeanut Butter Pie
Sweet Potato PieRhubarb Pie
Egg Custard Pie
Customers can also order from the in store menu list as well. This strategy will certainly boost sales as customers will have the choice of ordering delicious meals and pies from the comfort of their homes. The company mission is to become more than just a place to offer great tasting food. We want to make it a part of your daily life to hang out with family and friends. With the new menu list in place, promotion is very important. Although the family restaurant current promotional strategy is word of mouth advertising, it will benefit by placing advertisement in locations that will reach target markets such as promoting through billboards, local television, radio, and print.
Within the next six months, I expect to have all strategic plans into place and improve revenue of the company. My overall goal for the restaurant is to expand and grow within the year. Like any business, operating a restaurant requires careful planning and paying attentions to details of day-to-day operations. With the implementation of diversifying the menu list, promotion of advertising, hiring new staff, creating a business website, and maintaining a smoke free area, the restaurant will change customers dining out experience. Consumer Purchase Decision
According to the National Restaurant Association, the number of restaurants in the United States has increased over the past decade. As of 2009, over 945,000 restaurants are in business today in the U.S. What this means is consumers now have more choices to decide on where to eat. Therefore in order for restaurants marketers to sustain their existence in the competitive market, they need to understand their customer’ decision-making process in selecting restaurants (Hwang, 2012).
Marketing managers must have a thorough knowledge of consumer’s behavior. As consumers buying preferences are constantly changing, it is critical that mangers understand these changes in order to create a proper marketing mix (Lamb, 2014).
Because consumers differ in age, education level, income, and taste, this restaurant will have to consider it can’t always fill the wants and needs of every consumer group.
The Business plan on New Product Development Process 2
For every successful new product, many new product ideas are conceived and discarded. Therefore, companies usually generate a large number of ideas from which successful new products emerge. I work as a strategic manager in Solarland Co., Ltd. This company does business of electronic appliances. As a Strategic Manager, I have been directed by my BOD to introduce a new product in Bangladesh. I want ...
Therefore, as marketing manager I must research which consumer groups the restaurant will serve and then the restaurant will be able to develop products and services modified to meet their needs. This restaurant is well-known in the local community. It caters to the local residents ranging between 40 and 60 years of age. However, due to changes in the community demographic, these baby boomers are being replaced by Generation X families. The restaurant will have to adjust its menu list to meet their needs. The specific steps in the consumers’ decision making process go through five stages. The first stage in the process is need recognition. Need recognition occurs when the consumer is faced with an actual and desired need to purchase a product or service. This process leads to the second stage of the decision making process- information search.
Consumers look for information about the product or service. For example, consumers search ads and the internet for information on family own restaurants that sells home style cooking. Most likely, consumers might seek out referrals from other people who have dined at the restaurant. After gathering all this information, consumers evaluate alternatives and make a purchase decision. The process does not end here. After the purchase, consumers reach the final stage, which is post purchase behavior. How well the product or service meets their expectations determine whether the consumer is satisfied or dissatisfied with the purchase (Lamb, 2014).Feedback is critical to this restaurant success because it provides information on the customers likes and dislikes. Suggestion and comment box added on the restaurant website will help to identify what is working and not working in the restaurant marking plan. As an incentive for feedback, customers will receive a percentage off coupon on their next meal. Market Segmentation and Target Market
The process of segmenting the market for the product or service is profitable for the business. For example, a shoe store may decide to sell only women shoes, only men shoes, or children shoes. The decision here is finding the right market segment that would be most profitable to serve for the new store. “Marketing often segment markets on the basis of demographic information because it is widely available and often related to consumers’ buying and consuming behavior” (Lamb, 2014).
The Dissertation on Process Of Marketing Research
Q1. Explain in details the process of marketing research Introduction: Marketing research is “the function that links the consumers, customers, and public to the marketer through information — information used to identify and define marketing opportunities and problems; generate, refine, and evaluate marketing actions; monitor marketing performance; and improve understanding of marketing as ...
The family restaurant in this case study needs to focus on attracting a specific group of customers and this is why target marketing is most profitable for this business. Because of the demographic changes in the local community, the family restaurant will focus on segmentation by age, gender, income level, ethnic background, and family life cycle. By targeting customers based on their income will allow the restaurant to adjust its price according to consumers’ income level.
However, deciding the price range of the menu list is very important as this will relate directly to overheads and expenses the restaurant might anticipate. Since the restaurant serves lunch and dinner, it’s possible to have lunch at a lower price and dinner at a slightly higher price. A customer who spends $10.00 will occasionally come in and spend $20.00 or more. “Customer segmentation in the restaurant business allows owners to provide a differential marketing strategy for different customer groups” (Hwang, 2012).
The primary focus of marketing is to motivate customers by encouraging them to switch from competitors and keep them by staying better than the competition. In addition, create new customers by offering product or services that is hard to resist. Consumer behavior (Lamb) is how consumers make purchase decisions and how they use and dispose of the purchased goods or services (Lamb, 2014).
New Product Development
Because the market is constantly changing, developing new products is important to companies’ success. That’s why companies must do a new product development process. The key elements of the new product development process consist of 7 steps. The first step is new product strategy which links the objectives of the organization overall marketing strategy. This strategy describes the role and characteristics the new product will play in the organization plan and what it has to offer and the markets it want to serve. The second step involves idea generation. New product ideas come from sources such as customers, employees, distributors, competitors, etc. As new ideas are formed they are checked against the company’s goals and strategies. In the third step after new ideas have been generated, the product goes through a filtering process known as idea screening.
The Essay on Marketing Strategies 5
MARKETING STRATEGIES ABSTRACT Marketing strategies should be turned into specific action programs that answer the following questions: What will be done? When will it be done? Who is responsible for doing it? And how much will it cost? For example, the manager may want to increase the sales promotion as a key strategy for winning market share. A sales promotion action plan should be drawn up to ...
This process eliminates ideas that are not part of the organization’s new product strategy. Once the product passes the screening process the new product moves on to step 4 which is business analysis. This stage of the process requires the organization to estimate “demand”, “cost”, “sales”, and “profitability”. This step is very important for market research because once a product idea enters the development stage cost has a potential to increase. The fifth step of new product process is development. A prototype of the new product is created; followed by a marketing strategy which includes developing the product’s packaging, branding. After the product has been develop the organization need to test market the new product. The sixth stage is test marketing which is testing the product among potential users. This allows the organization to evaluate various strategies and see how well parts of the marketing mix fit together. The final stage of the process is commercialization.
Once a product is introduced into the market several tasks takes place: ordering materials and equipment, starting production, building inventories, shipping product, training employees, and advertising (Lamb, 2013).
The idea of the restaurant new menu list has to do with improving and updating the product lines. Most products go through the stages of the product lifecycle and eventually have to be replaced. With the restaurant new menu list it will try to extend the lifecycle because the product will be made from fresh wholesome ingredients. The family restaurant believes its guests deserve the best quality food at the best affordable value. The restaurant new addition of a seafood line on the menu every day will bring a high end option to the menu selection. The selection comes with a complete meal with your choice of fried, baked, or grilled fish.
In addition, instead of the traditional French fries, ours will be a thicker cut with a spicy coating and your choice of salad or steamed fresh vegetables. To maximize the restaurant profit for this new product, it must take into consideration costs and revenue. Generally, (Mealey) food cost should be around 30-35%. For instance if you pay $1.00 for something then $3.34 is the minimum to charge for that item. This amount is based on cost for preparing the food, serving the food, and clean up after the food. Everything in the restaurant is covered by the food that is served (Mealey, 2014).
The Term Paper on When A New Product Comes Onto The Market There Are
When a new product comes onto the market, there are soon many companies selling it. By the time the market matures, there are usually very few companies left. Large sales volume leads to economies of scale which result in lower unit costs and reduced prices, driving competitors out of the market. This often allows the few remaining companies to exert more control over the prices they pay for raw ...
This marketing strategy will help to ensure that sales stay up for the restaurant. However, the restaurant must keep in mind how important it is to control cost if it wants to stay profitable. The chef for this restaurant must understand how critical it is to know how much the food item cost the restaurant.
For this restaurant, if the chef buys a box of 48 8 oz tilapia fish that cost for $63.60 the standard portion cost is $2.63. Also, factor in the cost of ingredients to prepare as well as sides that comes with the meal. “Portion control is why so many restaurants stay successful. However, expensive, purchasing pre-portioned items is a good way to practice portion control but it save money in labor and food waste in the long run” (Mealey, 2014).
With the introduction of the new seafood menu customers will have a new dining experience while dining at the restaurant. By following the new product development process will widen the attraction to new customers as well as bringing back regular customers. According to Lamb, the most important factor in successful new product introduction is a good match between the product and market needs as the marketing concept would predict (Lamb, 2013).
Distribution
Distribution and pricing are not the easiest elements of the marketing mix, but can have a powerful advantage over the competition if manage effectively. The role of distribution is moving products from the manufacturers to end users and consumers. Therefore choosing a food supplier for the restaurant must be one that provides high quality fresh fish to make customers come back for more. The restaurant hopes by expanding its products it will attract more customers and increase profit. . The place strategy in the development of the marketing plan will be similar to that of the other products the restaurant serves. However, distribution for the daily fresh fish product will be a different supplier. This is why the restaurant will be careful in its choice of suppliers. The strategy here is to research different suppliers and generate a list of suppliers according to the most important criteria.
The restaurant objective is delivery of fresh wholesome fish every day. The restaurant will also need to look at its accounting records and customer volume to determine the most cost effective way to purchase fish. The best possible distribution channel is buying wholesale. Distribution channel is a “business structure of interdependent organizations that reach from the point of product origin to the consumer with the purpose of moving products to their final consumption destination” (Lamb, 2013).
The strategy for wholesalers for this restaurant will include local suppliers who will be responsible for providing only the freshest and finest fish available. Of course, the restaurant will make sure to research all the local suppliers in the area to help decide which supplier provides the most cost effective and best quality of fishes. Pricing
The restaurant traditional seafood plates will include a variety of fresh fish that is grilled, baked or fried and served to customers daily with a choice of two sides and a beverage. For that family member who isn’t into seafood, our regular menu items are still available at the same affordable price—prepared exactly the way you want it. The menu list has something for everyone to enjoy. The family restaurant will also include a “catch of the day” displayed on ice to ensure our customers they are getting the best. These fish meals, depending on the type of fish ordered will have a price ranging from $7.99 – $10.99. This will allow room to lower the price if the product is not as popular as anticipated without losing profit for the restaurant. Website Sales
Technology has come a long way and many businesses are taking advantage of technology to enhance their products. Because ordering food online is more appealing and saves time from calling the restaurant, many people are using this option to order food. Profits will increase because the restaurant will attract more customers (Wein, 2011).
Anyone wanting to order meals online can browse and quickly see what similar restaurants are charging and compare prices. Choosing the most efficient method of delivering online purchases will require evaluating transportation strategies such as vehicles and drivers undergoing training to provide good delivery service. Because the restaurant has lost sales over the years it has to budget the amount of money evenly in implementing this marketing plan. Therefore customer’s orders placed online will require in store pick up.
We’re looking to foresee a 50% rate of profit increase within the year and will be able to introduce a delivery service. When designing a restaurant website to receive orders online; your target market should be the same as the walk in market. Moreover, keep the website pages simple to avoid overwhelming potential customers. The idea is to create a user friendly website. For example, create a homepage, about us page and review page to show what other customers say about the restaurant. High quality images of the food on the menu list are positive way to arouse the taste buds and customers can’t wait to try the food (Young, 2014).
With all this in mind the restaurant must determine all components associated with designing its website such as domain name, web planning, marketing the site online, etc. Most importantly, cost should be figured in the budget for this project.
Global Marketing
global marketing is “marketing that targets markets throughout the world” (Lamb, 2013).
The growth of global marketing has created many advantages, disadvantages, and challenges that influence the marketing of products to global businesses. Marketers have had to respond to these changing market conditions in order to achieve global efficiency while responding to local markets Marketing products to consumers around the world that have cultural, religion, and moral differences is a major task for any company. However, if a business is well prepared, global expansion could be the best experience for the company, yet profitable as well. If a company has a unique product or service not available to other international competitors, this advantage could result in business successes abroad. Some advantages of global marketing include expansion (Lamb) of economic freedom, drive competition, and raises productivity and living standards of people in less developed countries.
In addition, technology improvements in regards to communication and transportation continue to make it easier to sell and distribute products in the global markets. However, a country is doomed to failure if it does not understand another country culture. Cultural mistakes often lead to misunderstanding and often perceived as rudeness or incompetence. Language barrier is another challenge that can create problems in global expansion. Marketers must be careful when translating information so as not to convey the wrong message (Lamb, 2013).
Each country has its own customs that determines business transactions and practices with other foreign customers and in a globalized business world this can be confusing when trying to negotiate business. According to Klohs, developing a successful, long-term international business development strategy requires analysis, community input, and establishing measurable goals. These goals must fit the unique culture of the community and its assets.
There is no “one-size-fits-all” approach to international business development, and what works for one community may not work for another. Without a clearly defined and documented strategy, not only can a community’s efforts be in vain, the consequences can be very costly (Kohls, 2012).Robanda International, which distributes samples beauty and skin care lines to various distributors on a daily basis to over 52 countries, has mastered the art of global expansion while keeping risk low. President and CEO David Leib states that “knowing that the products or packages are going to get where they need to go, and being able to monitor the process right through to the delivery point, is very useful for us”. By partnering with UPS express delivery services, the San Diego based company can ship out a package on Friday and have it delivered in England that Monday.
This reinforces the company’s ability to respond to target markets reliably, consistently, and any market it does business. With the assurance of knowing that UPS will deliver its service standards the company has the freedom to concentrate on other things such as “quality of its brands, the strength of its relationships with global distributors, and continue to emerge in the global marketplace (Beauty of Going Global, 2013).
Companies decide to go global for a number of reasons such as expanding their market and/or saving money. Whatever the reasons, business managers face many challenges when operating a business; unfortunately, the challenges are even greater and more complex in global markets. Therefore succeeding in any business takes time and effort. Evaluation Plan
Before a marketing plan can work, it must be implemented. After the plan implemented, it should be evaluated. Evaluation involves measuring the extent of the marketing objectives in order to determine whether they have been achieved during a specific time. Poor implementation can mean failure that’s why it is so important to measure and monitor results in order to help the organization objectives within budget guidelines (Lamb, 2013).
With the implementation of the new seafood menu list, the marketing campaign effectiveness will be monitored through distribution channels, sales, and consumer feedback. The rate of sales and the frequency of product shipped from the warehouse will help to identify the market that have the best results with the new menu list. Feedback will be collected from consumers via the restaurant website.
Collecting information from these channels will help to identify strengths and weakness in the marketing plan. In addition, the restaurant expenses will be measured with a monthly balance sheet which will include fixed cost, variable cost, and expenses. Also, there will be weekly inventory and sales reports to ensure the restaurant goals are met. Furthermore, a quarterly report will be generated to assessed performance on a three months period. In conclusion, the strategy of this marketing plan is to increase profit and sale for the family restaurant. The restaurant hopes to attract more customers by targeting and catering to the largest target market. In addition, the restaurant will continue to improve upon it menu list and provide promotions to keep customers coming back.
Reference
The Beauty of Going Global. Inc., May 2013, Vol. 35, Issue 4. Retrieved on February 10, 2014 from http://web.a.ebscohost.com/ehost/detail?sid=25000bd6-5ffd-455c-8b49-211aae16aee0%40sessionmgr4003&vid=19&hid=4112&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=87434707 Hwang, J., Choi, Y., Lee, J., & Park, J. (2012).
Customer Segmentation Based on Dining Preferences in Full-Service Restaurants. Journal Of Foodservice Business Research, 15(3), 226-246. doi:10.1080/15378020.2012.706180 Retrieved on January 13, 2014 from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=16&sid=eb267525-e7e8-4c06-a840-aa735c16570c%40sessionmgr111&hid=117 Joseph, Chris. Objective of Sales Promotion. 2014. Retrieved on February, 1, 2014 from http://smallbusiness.chron.com/objectives-sales-promotion-1058.html Klohs, B. M. (2012).
Going Global. Economic Development Journal, 11(3), 27-34. Retrieved on February 11, 2014 from http://search.ebscohost.com/login.aspx?direct=true&db=a9h&AN=80224608&site=ehost-live 211aae16aee0%40sessionmgr4003&vid=19&hid=4112&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=a9h&AN=874347077 Lamb, C., Hair, J. and McDaniel, C. (2013).
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Mealey, Lorri. (2014).
About.com. Restauranting. How to Price Your Restaurant Menu. Retrieve
