Marketing Plan
Description of the Business
The value of strategic behavior, allowing the company to survive the competition in the long term, has increased dramatically in recent decades. Accelerating changes in the environment, the emergence of new demands and changing the position of consumers, increasing competition for resources, internationalization and globalization of business, the unexpected emergence of new business opportunities offered by advances in science and technology, the development of information networks that make possible the lightning spread and receive information, the general availability of modern technology and the changing role of human resources, as well as a number of other factors have led to a great increase in the value of strategic management.
However, each company is unique in its own way, and therefore the process of developing strategies for each company is unique, as it depends on the firm’s position in the market, the dynamics of its development, its potential, the behavior of competitors, the characteristics of its goods or services rendered by it, the state of the economy, the cultural environment and various other factors. Thus, in order to develop a strategy for a particular firm first thing that should be done is to conduct a strategic analysis of its internal and external environment. The issue and the subject of this reference work.
Food industry is one of the main spheres of services today. The main activity of catering is the preparation of products, implementation of food and beverage, as well as recreation and entertainment. Assortment policy is one of the most important places in the marketing business. Assortment policy affects the marketing of products and its effectiveness depends on the financial performance of the company and the company’s image in the market.
The particular marketing plan is aimed to present the marketing plan of the restaurant.
The relevance of the subject involves the number of factors:
– Competition between foodservice is growing;
– The need to promote and encourage continuous service;
– Requires proper planning of marketing policy of the company.
The aim of the course work is the development of measures to improve the assortment policy of the restaurant in Australia.
Identify the product or service
Analysis of the formation range of dishes at the restaurant is carried out by determining its properties, width, depth, richness, and stability, to plan menus and parameters (coefficients). The restaurant will focus on the Greek food. Analysis of the latitude range in the restaurant can be divided into the following groups:
• Appetizers: 3 items;
• Salads: 11 items;
• Dips: 3 items;
• Sides: 3 items;
• Hot Vegetables: 9 items;
• Pita and Pies: 5 items;
• Meat Entrees: 11 items;
• Platters: 12 items;
• Sandwiches: 9 items;
• Desserts and Drinks: 8 items.
The restaurant`s menu is “a la carte,” which means that all the dishes are available to the visitor at any time of the institution, and contains an assortment of cuisine in the world. It offers a choice in each section, the price of food is indicated separately. The dishes from this menu are selected by cooked to order. Name and composition of courses are printed in English. At the restaurant, for a quick customer service during business hours, offers a menu of lunch, which is based on the reasonable restriction of choice and classic food combinations, lunch can be “split,” taking in parts and combine with dishes from the main menu. The part of the commercial policy of the restaurant is the assortment policy. It includes all the solutions on the formation of the range. Assortment policy is a set of principles of goods (services) that produces or sells the company. The purpose of this policy is to stock companies, on the one hand, the most closely match the demand of customers, on the other hand, allows the optimal distribution of the company’s resources and get the most profit.
The wide range of dietetic and children, company and desserts restaurant gives a real opportunity to take a leading position in the market. With appropriate regulations, technical and technological maps, products and equipment, the restaurant will be able in a short time to master cooking with great taste and low fat and cholesterol.
Generally, the life cycle of the product restaurant demonstrates gradual passage of separate phases: introduction, growth, maturity, and decline. Sales volume in the phase of implementation is low. Sales increases in the growth phase, which is associated with a set of special distinguishing features of the proposed restaurant product for consumers. This restaurant is well-known over a wide range of consumers. Growing sales generate more profit. At the same time sales have stabilized pioneers who initiated the appearance of the original restaurant product. Increased competition helps to reduce the profitability of the business. Over time, the decline phase begins when the sales volume decreases, demand for this product from the restaurant customers are less and less. There is a need to either modify and improve the restaurant, or go the way of folding the business. Under the modification and improvement of the proposed restaurant product mean the solution of one or more tasks:
– Improving the range of food and drinks available restaurant menu;
– To change the elements of the interior and furnishing restaurants;
– The introduction of a new show program for guests of the restaurant;
– Staff restaurant, serving guests in conjunction with the development and implementation of certain standards of service
All meals are included and supported in the menu for various reasons. Some are prepared in large quantities, as popular with many visitors, and form the basis of the menu. Other, just in case, for an amateur, and others “for the image” that is, they must be in place according to the concept, but they are rarely bought. Finally, the fourth is the result of creative experimentation chefs. Therefore, for effective management of the menu, you need to conduct regular sales analysis, that is, technical analysis menu. Armed with the data obtained as a result of such analysis, you can make small changes to the menu so that the next menu to bring in large profits.
Restaurant democratic is the concept of non-network format to 83 seats. The principle of the restaurant: from 11:00 to 15:00 clients are offered a business lunch, the rest of the restaurant is in normal operation, maintenance is carried out through the menu, in addition, for the duration of the restaurant (from 11:00 to 24:00 ) visitors can enjoy a buffet breakfast, which is calculated by the system 1 plate – 1 visit.
Organization’s Vision, Mission and Objectives
The projected restaurant is a legal entity, with its own separate property recorded on a separate balance sheet, may acquire and exercise property and personal non-property rights, incur obligations, sue and be sued. Restaurant is a medium-sized company, but still has a little difficulty, as its management involves a number of sub-systems themselves. This company has many senior positions. However, compared to other larger organizations, this restaurant can see only three points on the vertical complexity. The particular restaurant is not only great food, but a great atmosphere. A distinctive feature of the institution is that the freshest fish and seafood, live lobsters, crabs, snails, lobsters can be delivered by plane directly from France, Canada, Tunisia, Morocco and Kamchatka. In this restaurant the staff recruited only with experience, and staff receives training, after which the employee can begin its work. The preparation time depends on the degree to which the worker is arranged. For example, the waiter should have work experience of at least one year. Also, he has been training for three months, only then can get to work. However, working with the staff involves a variety of other professional training. The restaurant`s ideology is Motion, Success, and Prosperity. The main objective is to develop the sustainable service in the future and increase its market share by 10%. Therefore, the company is going to make a major focus on its advertising campaign as it is very poor now. In the marketing plan portion we will propose the possible ways to achieve these objectives in a more detailed way.
The restaurant would have 30 people of workers, among the most important positions are:
Restaurant Administrator:
• organize the work of the restaurant;
• is fully responsible for his condition and state workforce;
• represents the company in all institutions and organizations;
• hire and dismiss employees;
• provides economic planning;
• enter into a contract;
• searches for material suppliers;
• leading marketing policy;
• uses incentives and impose penalties on employees;
• takes part in the planning;
• develops measures to reduce costs and increase profitability, improve the use of production assets, the identification and use of reserves in the enterprise;
• takes time schedules;
• purchases the required goods (products).
Chef:
• controls manufacturing processes that take place in the kitchen;
• controls the use of equipment ensuring its regular maintenance;
• introduces the rational use of labor;
• coordinates the operations associated with food preparation and presentation of meals;
• develops a new recipe dishes;
• prepares of applications for products needed;
• controls quality of raw material supplied to the production;
• control compliance cooking techniques, the implementation schedule.
Suchief:
• is responsible for a certain area of the kitchen and consistency with other areas;
• cooks and prepares meals typical for its size;
• controls the quality and healthiness of the site.
• Accountant:
• maintains accounting and reporting;
• performs the calculation works, prepares the necessary documentation;
• ensures accuracy and timeliness of settlements with customers, suppliers and authorities of tax control;
• is the final budget reports to be submitted to the tax authorities;
• takes an active part in the planning of tax and price policies of the enterprise;
• performs financial settlements with customers and suppliers associated with the implementation of the finished product, the procurement of raw materials.
Hall Administrator:
• makes sure the work entrusted to him, the equipment and personnel;
• provides inventory control of material values;
• schedules the work of staff;
• interacts with all internal services necessary to operate the restaurant.
Waiter:
• lays the table in accordance with the standards;
• controls the state of cleanliness of instruments, utensils, napkins;
• is responsible for the knowledge of the menu, the main and seasonal dishes;
• advising guests about food, cooking terms, methods of delivery.
Key stakeholders – consultation and involvement
According to Mendelou model, all interested parties can be classified according to two variables: their interests and their power. The stakeholder power determines its ability to influence the organization. The stakeholder interests are determined by the desire to influence the organization. Thus, the scheme of the stakeholders in the restaurant represents an attempt to protect the organization by using the uncertainty of receiving means for predicting effects of stabilization. They are the methods of management stakeholders as market research, the creation of special units that control the sphere of interests of important stakeholders (eg, rule of law, control of environmental safety), efforts to achieve conciliation, advertising and communications firm with the public etc. Internal stakeholders include managers, employees, owners and the board of directors or board of directors, which represents managers and owners. One of the most significant internal stakeholders is the sole executive body. The general interaction with internal stakeholders is that their interests are often systematically contradict each other (the desire for greater autonomy of management, the need for shareholders more control, greater willingness of staff salaries, the need to reduce management costs, and so on). These contradictions can be effectively solved by linking together the interests of different groups (such as the construction of incentive system tied to the outcome of the company as a whole).
Resource Allocation
Productivity and Performance Targets
Promotion
In order to attract guests to the restaurant during the hours when the load of the hall is a minimum, the restaurant will use a marketing technique “happy hour.” At that time, for example, guests are offered a special menu with discounts on individual dishes or order one – two mugs of beer next offer for free.
Restaurants are widely used by other types of discounts.
– Buying one dish, the second restaurant visitor gets free, “two for the price of one;
– A free meal at a certain order, for example, cup of coffee with dessert or salad to the main course;
– Discounts on certain order value (when the percentage of discount depends on the order amount).
Product promotion is advertising, personal sales presentations, sales promotion of products with the help of restaurant coupons, prizes, raffles, special events and discounts, “club special events,” gift certificates. Personal advancement is aimed to provide dining sales presentations to potential clients, conducted in the following sequence:
– Opening presentation;
– Involvement of the client in its process;
– Direct-presentation;
– Closing presentation.
For these purposes, advertising messages as a means of personal promotion: restaurant manager sends letters to businessmen and newlyweds with an offer to attend the institution. Popular form of promotion service restaurant establishments are coupons, a method of discount offers views of the new dishes on the menu, as well as increased marketing a particular dish. Using coupons carries some negative consequences as coupons involve regular discounts on the same dishes, visitors psychologically begin to perceive the discount price as a regular and therefore, refuse to buy a dish at its regular price. Prevent the occurrence of such sentiments helps the system of constraints: each coupon specify an expiration date stamped his actions or the warning “does not work on weekends.”
The main promotional strategy the restaurant is that the waiters and head waiters are always in direct contact with visitors should be well informed about the other form of the successful promotion of restaurant services, based on the receipt of prizes for guests to purchase the complex: one souvenir of the visit.
Porter Analysis
Power of Buyers
A study was conducted on the basis of the structure of consumers’ demographic factors, which revealed the following picture: the data on the gender and age structure shows that most of the restaurant patrons will be men (71%), and in the age group of 29 to 35 years. On average, the total number of respondents is 65% and higher than the number of women by 54%. It is due to the fact that people of this age are usually already taken place businessmen, people with good wages. The age structure of the study sample is shown in Figure 1.
Figure 1. The age structure of the consumers
Thus, the potential customer of the restaurant is a male between the ages of 29 and 45. The study showed that most visitors use the services of the restaurant because it is convenient (27%). In addition many (25%) like the quality of services provided. However, the power of buyers is very strong because there are many factors due to which customers (target audience) may have no costs when changing the restaurant. Power of buyers is manifested in a significant impact on the company, for example, by changing the sensitivity of buyers to price changes, respectively, to reduce the demand for the company’s products or even abandon it, or vice versa – increasing loyalty to a product company.
Power of Substitution
The power of substitution is usually high because, despite the economic crisis, many restaurants decide to open new restaurants, so that the competition with the opening of each new project becomes tougher. Availability of substitute products is a serious threat to the company, as it may increase the propensity of consumers due to changes in prices, and, therefore, delay some of the demand.
Power of Suppliers
The power of suppliers is low because there is a wide choice of providers (partners). Power of suppliers is that they can significantly affect the activities of the company, for example, by changing the price of the necessary resources, services, etc. The increasingly widespread practice of establishing long-term relationships between manufacturers and suppliers allows: to introduce a system of supply “just in time” which reduces storage and operating costs; accelerate the development of new models of components, to improve the quality of components and reduce the level of marriage, reduce the cost of the supplier and the purchase prices, respectively. All this increases competitive advantage of the companies in the industry that effectively inter exist with key suppliers. The suppliers are organizations engaged in wholesale trade, which meets the organization in terms of:
1. The cost of goods delivered;
2. Guarantee the quality of the delivered goods;
3. Delivery schedule of the goods;
4. Punctuality and the obligation to fulfill the terms of delivery of goods.
Power of Competitors
The power of competitors is high because there are many factors for which consumers (the target audience) may not have any cost by changing the restaurant. For example, many restaurants are located near each other in the center, by changing the restaurant, people will not spend more/less time on something that would get to it, will not be spending more/less money on transport. According to Porter, the analysis of the existing competition is very important and is a decisive factor, allowing to determine the current state of the industry. The author also claims that the competition more difficult, the more competition there is and the closer the ratio of forces. The emergence of new players in the market leads to higher levels of competition and thus lower profitability. Obviously, in order to prevent a decrease in profit, it is necessary to take measures for the difficulty and the creation of barriers to entry for new competitors. Competitive pressure from consumers also can range from significant to the weak.
PETS-Analysis
Political and Legal Environment
Political factors are quite unpredictable and always pose a threat to the industry. The position of the organization can be complicated due to the new regulations on the sale of alcohol and tobacco products. Therefore, each large enough organization taking strategic decisions tends to have a clear idea about the programs and objectives of the various political parties, lobbying groups in government, the attitude of the government towards certain sectors and regions of the country, the means of carrying out the policy of the government. It is extremely important to figure out how stable the government is and, as far as it is able to implement their policies, what is the extent of public discontent.
Political Factors: Evaluation of Possibilities and Threats
Factors Threats and Possibilities
Changes in legislation;
Changes in laws and regulations, requirements for premises, etc. Threat
Changes associated with the changes in the development of small and medium businesses. Possibility
The threat from the regulatory authorities and administrations. Threat
Economic Environment:
The sharp wage dynamics in the field of sales is characterized by the growth of the markets in general: there is strong consumer demand for goods and services. In addition, the economy has changed over time making a significant contribution to the uncertainty of the environment. That restaurant will succeed which faster and more accurately predicts the change in the trend towards increasing or declining and showing the flexibility tends to adapt to the new economic situation. The state of the economic environment involves the analysis of the dynamics of key macroeconomic indicators, growth rate of gross domestic product, inflation, unemployment, real income, refinancing rate, rate of the national currency, and many others. The restaurant’s top menu dish is lunch boxes maid out of chicken or beef. Therefore, any changes in prices for meat will influence of the price policy of the whole restaurant. Objectives and methods of economic management of the country can result the policies of the restaurant.
Economic Factors: Evaluation of Possibilities and Threats
Factors Threats and Opportunities
Inflation rate:
There has been a rise in inflation, which is very unfavorable effect on the enterprise Threat
Rising prices:
The higher prices for products increase the cost of ready-made dishes, which significantly reduces the profit. Threat
The standard of living of the population
The situation with a payment in the region reflects the national trends – the price of labor in Australia is growing. This can be seen in the changes in wages on standard items. Opportunity
Technological Environment:
The main uniqueness of the restaurant is its good hardware, fast and high-quality coffee machines, equipped with a computer to calculate the best programs such as 1C to automate the catering industry. The program fully supports Accrual accounting of goods and food to the places of storage, which allows obtaining information not only on the quantity but also the remnants of sum for each storage location. For each course you can drive a few recipes. Choosing the right prescription is performed at the time of preparation. Join the movement of products in the kitchen for meals or to the retail point of sale on the implementation carried out by the documents. The work plan technologist or chef fixed by the document “menu plan.” It formed accounting entries for the production of food and preparations. This program automates and simplifies the institution.
Technological Factors: Evaluation of Possibilities and Threats
Factors Threats and Opportunities
The development of technological innovations greatly simplify the activities of the company Opportunity
Social and Cultural Environment:
Social factor has a direct effect on organizational operations, statistics shows decrease of potential customers, which negatively affects the activity of the restaurant.
Social Factors: Evaluation of Possibilities and Threats
Factors Threats and Opportunities
Migration:
According to statistics, the number of people immigrating to Australia was 32.9 million people in 2007, which positively affected the restaurant business in the region Opportunity
The increase in the pace of life Opportunity
The presence of the working population (potential customers)
Working-age population is 64.8% of the total, under working is 15.6%, and older than the working age is 19.6%. Opportunity
Within a given society people hold many beliefs and values. For the basic beliefs and values characterized by a high degree of stability. Thus, people who are used to a certain type of cuisine (Georgian, Ukrainian, Chinese, Indian, Italian and Russian, for example, or maybe he’s a vegetarian) will visit the restaurants, bars and cafes, offering a menu of the food to which he/she is accustomed. The mentioned restaurant is presented in more Arabian cuisine, but if the customer looks for some other dishes, he/she is sure to find something to he or she likes.
To conclude, the analysis of the global macro environment the industry has shown that there are more opportunities than threats.
Financial Indicators
Pricing policy is an important element of the control system. It involves not only the determination of the price for the products, goods, services and works, but also the management of prices in different market situations. The pricing system of the organization should be designed in order to determine the most efficient way of setting price the buyer is willing to pay, and also to investigate the possibility of the sale of products at a price that includes a profit. Pricing tactics of particular restaurant provides the optimal response as an established and promising group of consumers in a competitive enough. When determining the price, analysts are based on evidence-based selling price structure. It also uses a multi-stage approach of forming the selling price. It allows achieving optimal results for the segmentation of the market and the range of market planning services. When developing a method of pricing in the restaurant the following key factors are included:
Pricing Factors
Micro factors Macro factors
Sales prices The degree of competition and its effect on prices
The cost structure of direct and indirect The state of demand for the products
General and specific objectives of the organization Dependence on suppliers of raw materials and semi-finished products
Experience pricing Demand structure and its dependence on the price
Degree of scrutiny of market State policy
Reaction of the sales workers
The following key points in determining the price policy in the restaurant may be noted:
1. The price policy is based on the estimated cost of the minimum possible price of the product, which corresponds to the lowest cost of production.
2. The price policy is based on the analysis of competitors’ prices determined by the average level of prices on food, drinks.
3. The maximum possible price is set for the dishes are of high quality and unique advantages.
4. The prices are determined by demand and market conditions of the product may fluctuate throughout the range from minimum to maximum prices. These prices change in different periods of the life cycle of the product.
5. Important from the point of view of marketing is to develop leadership cafe its pricing policy.
6. Targeted pricing is as follows: it is necessary to install on their services, such as prices and change them depending on the situation in the market to acquire a certain share of the market, to get the desired amount of profit.
In each case, a way to identify the final price at which the product is sold has its own characteristics. In this regard, the optimal price optionally is highest in terms of maximizing the profit from the sale of a particular product or service. Given the variety of factors in a particular organization can be considered that the optimal price that best suits the strategic and operational challenges of the economic entity. Overall, the cafe is focused on customers with low and middle-income. The pricing policy in the cafe is quite flexible and combines the capabilities to meet the discerning tastes of visitors without paying attention to the cost of a cup of really good coffe, as well as to meet the needs of visitors, estimated fairly average income. Thus, the most expensive dish in the menu should be approximately $18.99. The cheapest dishes are salads, which can be bought for $3.29. Meat Entries will cost $5 on average. The most common chicken shawarma salad is $8.99, and another top popular dish in the restaurant Combo Kebab Plate cost $18.99. Therefore, the average person should have approximately $10 if case of visiting this restaurant.
Timeframe – Short Term/Long Term
As the main recommendation for the restaurant is improvement of is its promotion policy, we need to calculate how much in total the restaurant will spent on “sales promotion” for the first month and the year. Thus, we can divide the goals for the long term and short term. The long term is sustainable development and establishment of the restaurant. The short term is the constant increasing of the market share by 10% a year due to the effective promotional campaign.
Financial indicators
1. Calculate the advertising budget.
In our case, in the first month, we expect to provide 20% coverage of the target audience (assuming that the male world market consists of 1 million customers). The goal is to reach 200 consumers (1000 x 20%). The best for us will be ensuring the five advertising contacts. Since the average consumer will have 5 contacts with advertising, the advertiser should ensure that the purchase of (200 x 5) 1,000 contacts. We need a contact-quarter impact forces (with the help of advertising on television, radio or the popular newspapers and magazines). The estimated number of contacts must be purchased up (1000 x 1.5) in 1500. One blade of the magnitude will effect an average of 6$, (a newspaper or magazine on a full page spreads), then the advertising budget must be equal to the average from 50$ up to 28 400$ monthly. To order leaflets will cost approximately 630$. Thus, each leaflet will cost 0,4$.
Second step is the need to hire people (10 people) who are ready to hand out these flyers. Their work will cost near 6$ per hour. Schedule: 5 people from 8.00 am to 11.00 am and 5 persons from 17.00 to 20.00, except Sundays.
Thus, we see that everyone is working for 3 hours a day, 6 days a week (ie. 18 hours per week). We can say that for the entire period of the action of each employee has worked for 36 hours.
2. The creation of the website. For this has been spent on average $ 1500. Besides, it does not include monthly update that will worth about $ 150.
3. Estimates for sales promotion activities. It can be developed as follows: select the specific measures and shortchange their cost. There is the need to order plastic regulars cards. On average, each card will cost $ 5. It is necessary to order the printing posters, which have the full information about the campaign, “Regular customer.” The cost of the 1st poster will cost $ 4. We must be ordered 50 posters. Knowing all the rates, we can make a cost estimate for the first month of the marketing activities.
№ . Name of the Activity The Cost in Dollars
1 Creating a website 1650
2 The action “Regular customer”:
1. Ordering plastic cards
2. Ordering the poster printing
1074
3 Distribution of leaflets
1. Ordering leaflets
2. The salary for the workers
12000
5 Promo in the newspapers 948
Total: 15672
We see that the minimum budget for the first month of the marketing activities should be 1576$ only for promoting.
Long Term
On the creation of a new restaurant business goes from half a year to a year, not counting the time “included in the process.” The cost of design, interior design and equipment of the order of $ 500 million – $ 2 million Experience shows that for a restaurant of 4-5 stars, with an average mark-up on food in 300% good result will be a turnover of $ 25-40 thousand per month. Profit, in this case, not including taxes, may be around $ 5-15 thousand per month. In democratic restaurants threshold payback comes on revenue of $ 45 million with revenue of $ 70 million profit is there of $ 10 thousand.
Marketing Activity
№ п/п Marketing Strategies
1. Implement a modern automation system restaurants, which will accelerate not only the processes of care, but also to simplify the work with checks
2. Regularly conduct market research, including a study of the status and capabilities of its own enterprise
3. Creating a new and improved products based on the results of market research, product range optimization according to customers’ requests restaurant complex (even adhering to traditional dishes, in connection with the worn kitchen equipment, you can update the menu, modernize the ingredients)
4. To allocate resources to continuously improve the educational level of the subordinate
5. Work out a common strategic vision of the company
6. To organize the company’s corporate identity
7. Organize work in advertising and sales promotion
Implementation Process
Since the implementation of marketing plans raises a lot of surprises, the marketing department should conduct ongoing monitoring of their progress. Marketing control systems need to be sure of the effectiveness of the company. However, the marketing control concept is by no means unambiguous. We can distinguish three types of marketing control in our restaurant:
TYPE OF CONTROL Responsible for his conduct Aim of Control Methods of Control
Implementation of the annual plans Senior management.
Middle management Make sure to achieve the intended results Sales analysis.
Analysis of market share.
Analysis of the ratio between the cost of marketing and sales.
Monitoring the ratio of clients.
Profitability control Controller in Marketing Find out on what the company makes money, and than lose them Profitability by product, territories, market segments, sales channels, the volume of orders
Strategic control Senior management.
Inspector marketing Determine whether the company uses the best of its existing marketing opportunities, and how effectively it does Revision of marketing
Monitoring after implementation of the annual plans of the restaurant is compared with the current performance target figures of the annual plan, and if necessary, steps to remedy the situation should be taken. The purpose of control is to make sure whether the restaurant has gone beyond scheduled for the year sales figures, profits and other target parameters. We suggest the management of the restaurant to systematically work on data of companies-competitors. In practice, they can use the following methods: a survey of individuals, clippings from published sources, registration of special forms for the competition, the reduction of the information in the reports.
