Marketing Plan for small firm in London
Table of Contents
Executive Summary 3
Term of reference 3
Introduction 4
Situation Analysis 5
External Audit 5
Macro Environment Factors 5
Micro Environment Factors 6
Aims and Objectives 12
Mission 12
Corporate objectives 12
Marketing objectives 13
Financial objectives 13
Marketing Strategy 14
Marketing Implementation 14
Marketing Mix (7Ps) 14
Market Segmentation and Targeting 16
Core strategy 17
Positioning 17
Marketing Communication Budget 18
Key General Assumptions 19
Contingencies and controls 20
Appendixes 21
Executive Summary
The modern food service restaurant industry is a highly competitive one. Customers and competitors are the two key platforms on which a restaurant must undertake strategic branding and positioning so as to advocate a strong and relevant marketing plan (McDonald & Wilson 2011). Clifton Restaurant in Brick Lane, London, is widely acclaimed for its unique dishes that come with superb service.
The good reputation notwithstanding, Clifton Restaurant has come under increasing pressure to devise and implement a branding and positioning strategy so as to increase its revenue generation and ultimately gain the much needed competitive advantage . This has been warranted by the fact that the London restaurant business has grown increasingly dynamic and competitive (Harriss 2006). The plan is to take the restaurant experience to another level and stand out from the rest by greatly defying the rather standard East End curry house formula (Carey 2004). The restaurant aims to have its food taste pleasantly different from the other contemporary restaurants in London in line with the desires and taste of its customers.
Clifton Restaurant plans to undertake aggressive branding and positioning strategies that will ultimately benefit its sales, bring about improvements that would endear it more to its existing customers besides attracting potential ones. The food and service giant thus targets to gather much relevant information on both the local and visiting consumers, after which it will adjust accordingly so as to provide excellent service and sumptuous healthy food for them all.
Term of reference
The 2012 marketing plan is for Clifton Restaurant, Brick Lane’s contemporary Bangladeshi restaurant that is strategically located at the gateway to Bangla town in London (Harriss 2006). This is a detailed marketing plan for the next one year. In addition, there is a three-year outline plan for the restaurant.
Introduction
Brick Lane’s Clifton Restaurant is a subsidiary of the great Clifton group and is famed for its specialization in using cooked fresh original spices in conjunction with unique traditional recipes (Stickler 2011). The Clifton has continuously offered a modicum of class together with a raft of outstandingly distinct Bangladeshi dishes to its customers. The menu of this restaurant is vast and varied – it offers all the mandatory curry treats from Tikka Massale to Tandoori Chicken, not to forget a variety of wonderful regional specialties (Carey 2004). It is this latter section that needs to addressed sooner than later- Clifton needs to do strategic branding and product positioning so that it appeals equally or more to other native populations as opposed to those with Bangladeshi affiliations. There vast opportunities for the restaurant in this area a significantly larger number of Britons are finding their eating out gear again after the easing of the great financial crisis that has been around since late 2008 (Stickler 2011).
Situation Analysis
External Audit
Macro Environment Factors
There will analysis using the Porter’s Five forces (Political, Economic, Social, & Technological analysis.
Political Factor
Clifton Restaurant is affected by UK government and London’s local authority’s stiff health and safety guidelines (Frommer’s ShortCuts 2011). Regulations also demand that all genetically modified foods be labeled. In addition, animal rights campaigns affect the meat and dairy supplies of the restaurant.
Economic Factor
The current Euro crisis threatens to increase the cost of raw food ingredients and storage in London. Similarly, higher interest rates threaten to discourage investment because of the high borrowing costs. There is also the risk of higher wage demands by employees which may compromise Clifton’s competitive pricing strategy (Graham 2008). However, it is expected that the easing effects of the global financial crisis will result in increased disposable income among consumer and the market will grow for Clifton Restaurant
Social Factor
There larger majority of people in London and the UK in general have busy lifestyles, translating that fast food service restaurants like Clifton stand to reap huge as less and less people cook at home. There is also increasing change of eating habits where more Londoners are turning into vegetarians, which is Clifton’s specialty. The UK Media has stepped up its attention towards “healthy living” while government and other organizations are offering incentives for the same (Frommer’s ShortCuts 2011). Clifton Restaurant is seeking to tap the growing market as a result of lifestyle change and increasing eating out by offering its customer new flavors, excellent ambience and an excellent general dining experience.
Technological Factor
Traditionally, the restaurant has low demand for technology. However restaurants use specialized equipment necessitating investment in technological innovations. It has also become increasingly necessary to adopt computer functionalities such the tilling system so as to keep with competition in the market. In addition, modernist-technological themed restaurants are being considered more by consumers and Clifton Restaurant is striving to draw utmost attention.
Micro Environment Factors
Given that there are more complexity in the reality of restaurant industry, there is need for individual players to select the appropriate analysis too which compliment the complex situation. Micro environment factors give analysis of the industry using Porter’s Five Forces and SWOT analysis.
Porter’s Five Forces Industry Analysis
Porter’s Five Forces analysis is essential in understanding the stiff competition in the market besides helping in the evaluation of the nature of rivals in the market.
i) Threats of new entrants
Clifton Restaurant is faced with real threat of new entrants. This is because of the established business with large financial muscle are increasingly opting to start new ready meal restaurants to tap the rapidly growing market. What is more, it is now even easier for the retailers to be persuaded to place new ready meal brand on shelves because the available space to take in products from a number of brands. Clifton is currently fighting threat from a new entrant, the Jungle Braai.
ii) Bargaining power of buyers
Generally, the bargaining power of buyers in London and the UK is exceptionally strong. The main purchasers of the products and services offered by the foodservice industry are hypermarkets and supermarkets. These are the main distribution channels for ready meals and their market value is estimated to as high as 80%. In light of this, this large retailer have the ability to buy ready meal products in large quantities meaning they hold great bargaining power against restaurants and hotels from which they source the products.
iii) Bargaining power of suppliers
The UK foodservice industry boosts of a large number of primary suppliers especially farmers and glaziers. However, majority of good manufacturers do not source their raw materials from these primary suppliers, rather they buy them from a handful large companies that deal in the food commodities on a global scale. This is the case because these supplies offer pre-factory processing services such as turning of oilseed to oil. Clifton Restaurant faces the challenge of great bargaining power of suppliers from they source their Bangladeshi raw products. Suppliers with the power to provide high quality raw materials possess more power and dictate prices of the products (Best 2010).
iv) Threat of substitutes
A number of potential substitutes for Clifton Restauant’s foods exist in the market such as canned food and processed Bangladeshi delicacies (Carey 2004). Clifton takes cushion from the unique high quality food and services it offers to its customers compared to its nearest competitors. Clifton offers a diverse menu consisting of Kebab Delight or vegetable Kufta, Chicken Tofa, Manchurian chicken, Tikka Massala among other very tasty delicacies. The restaurant also offers competitive prices for its competitors (Best 2010).
v) The intensity of rivalry among competitors
Clifton faces competition mainly from two fronts – restaurants that deal in same food products and those in the proximity. Some of the food joints near the Clifton include the Shahi Karahi, Whitechapel Gallery Dining Room, Khushbu, Sajna, & Apples and Pears. There is always the challenge of retaining existing customers and attracting new ones because of the identical ready meals products dealt in. however, Clifton Restaurant has been able to fight stiff competition because of its customer brand loyalty that results from excellent services and high quality products we give.
Internal Audit
Human Resources
The Clifton Restaurant has sufficient manpower to attend to every need of its customers. However, there may be need to recruit more hands owing to the rapidly growing market and the aggressive branding and positioning strategies we are embarking on.
Incomes
Clifton Restaurant is doing good business with its Bangladeshi, Indian and Pakistan dishes as well as fish and vegetable supplies. The restaurant is also cashing in big from native lovers of Anglicized food such as Tandoori and Tikka Massala.
Key competitors
Clifton Restaurant has a number of key competitors mostly located on Brick Lane street: Gram Bangla, Café Meraz and Old Truman Brewery, which have grown popular with home-style food craved by first and second generation Bangladeshi.
SWOT Analysis of Clifton Restaurant
Strengths
This deals with the internal positive attributes about the restaurant –those within the control of Clifton Restaurant. First, the Clifton Restaurant is strategically located at the gateway to Bangla town in East London. Brick Lane has a high population of Bangladeshis which enjoy the cuisine offered by Clifton.
Secondly, the Clifton boosts of more than 30 years experience in food and services business. Clifton was the first Indian restaurant to be licensed for operation in Brick Lane.
Furthermore, the restaurant has live kitchen which the customers enjoy very much. It has a spacious contemporary interior with a relatively large sitting capacity exceeding 200 people.
Clifton Restaurant has maintains a positive brand image. It has gained increasing popularity among Asian clients, professionals and food critics thanks to its authentic food ad serene audience.
The restaurant offers excellent variety range of food, more than 25 products. The menu is conveniently divided into Bangladeshi, Pakistani and Indian dishes which serve to enlighten the Western clientele, something which is yet to be reciprocated by other competitors.
Clifton Restaurant curries are offered at incredibly affordable prices starts from £1.95–£3.95, and between £5.95–£9.95 for mains. This is a relatively low price in relation to that of nearest competitors.
Weaknesses
Clifton Restaurant has not undertaken any new significant promotions for a while now and has almost conducted almost no advertising.
In comparison with its key competitors, the parking facility of Clifton Restaurant is inadequate.
Furthermore, some customers have questioned the restaurant’s change of menu and the almost 20% increase in food prices. The restaurant has constantly been on the receiving end for its over-enthusiastic use of the scorched onion shavings (garnish) on its food because their dominant bitter flavor tends to ruin the more delicate dishes.
The sale of drinks from the restaurant is below 20 percent because the Bangladeshis are forbidden by local mosques and section of their community to adhere to Islamic norms of abstaining from alcohol.
The local planning regulations have significantly become favorable, something which has attracted many other highly competitive eateries to set up business in Brick Lane. There has been proliferation of world food stalls which offer visitors a variety of overly cheap Chinese, Thai, Sri Lankan and Vietnamese meals.
Few young Bangladeshis are willing to work in the restaurant business, thus there is workforce problem for Clifton in the days to come.
Lastly, Clifton has not had much innovation on its menus, something that has forced the restaurant to find other unique selling point.
Opportunities
The large Muslim Bangladeshi population in Brick Lane promises continued business for Clifton Restaurant which specializes in their traditional cuisine. This is because research indicates that many Muslim Bangladeshi favor eating out or takeaway food.
The growing population may provide market for Clifton Restaurant. In addition, it is more likely that price of fresh produce and other food-preparation essentials will decrease in the near future.
The government and local authority may relax their food preparation regulations to the benefit of restaurants like Clifton.
There are greater market opportunities in younger, trendier Londoners if sufficient and appropriate efforts are done to attract them to loving the Asian food.
Finally, all indications are that ethnic cuisine demand is bound to continue growing and thus provide a huge market for Asian foods such as Chinese food and sushi.
Threats
Clifton Restaurant continues to be affected by the pressures of economic recession, unstable energy and food prices, and destroyed consumer confidence. The restaurant is forced to focus greatly on value-added products and brand differentiation to continue attracting customers. While the prices of raw food products are increasing to soar, customers expect low-price quality food.
Key competitors are increasingly revamping their menus to respond to growing demand for healthy eating. More and more outlets such as grocery stores and stalls are increasingly encroaching on the fast food market through takeaways options to consumers.
A significant number of consumers have been shying away from fast food because of the hard economic times brought about by the late 2008 global financial crisis and the recent Euro crisis. Furthermore, the government and the Media have been advising people against eating fast foods on the basis of health. This has far reaching negative effects on the profitability of restaurants like Clifton.
Aims and Objectives
Mission
The focus of the 2012 marketing plan for Clifton Restaurant is on significant increase in revenue and attainment of competitive advantage in the UK food and service industry. It is aimed to improve way beyond last year’s goal of £624k in sales, which represented a 20% increase in revenue from the previous year.
In light of the current market trend and strategy to advertise company website through varied channels, it is believed that the Clifton Restaurant will be able to achieve the target revenue. Online sales are expected to bring in excess of £80k for the restaurant. To this effect, the company’s marketing budget is in the tune of £9800, though it is more likely than not the ultimate spending will be lesser than this figure
Corporate objectives
i) To gain competitive advantage in the local fast food industry
ii) To be a popular choice for more Asian clientele, food critics and curry-lovers in general
iii) To offer high quality traditional and modern cuisine to our customers
Marketing objectives
i) Achieve positive, consistent growth each month for the entire year
ii) Generate a minimum of $50,000 in sales each month
iii) Attain an increase in new consumers and retain them in the long-term
iv) Realize growth strategy for the restaurant every year
Financial objectives
i) A double-digit growth rate for the year
ii) Cut down the overhead for the restaurant through disciplined growth
iii) Continue to reduce the variable costs related with food production.
Figure 1. Clifton Restaurant’s One year sales forecast
Marketing Strategy
Clifton Restaurant’s strategy is simple; we intend to meet our objective by offering our customers a mix of quality and excellent food in a serene environment that would appeal to the expansive Asian community and native Londoners who like to try out different cuisines. We will strive to sustain quality and establish a strong identity in the community we do business and beyond. Our main focus in focus will be conduct strategic branding and positioning of our brand so as to increase our overall sales and ultimately gain competitive advantage in the market. To this effect, we will commit all our focus and energy into developing competitor-proof relationships with our customers, employees, suppliers and other significant stakeholders. We shall embark on an aggressive campaign using effective mass media vehicles such as newspaper, radio, television, and the Internet in addition to outdoor advertising. The restaurant will also seek customer satisfaction and customer brand loyalty using the 7 marketing mix (7P’s)
Marketing Implementation
Marketing Mix (7Ps)
Clifton’s marketing mix consists of the following modern approaches to product, price, place, promotion, physical evidence, process and people.
i) Product – Clifton Restaurant offers an array of sumptuous traditional food categories such as vegetarian/fish, tandoori grill dishes, and prawn dishes, Indian Pakistani & Bangladeshi specialties, Balti dishes, Bhuna dishes, Tikka Masala, Jalfrezi, Dansak, Pathia, Biryani dishes, vegetarian bonanza, sundries, lassi, beers and wines among other Clifton’s old favorites.
ii) Price – Clifton Restaurant aims to improve significantly its average spending on food by customers (currently at £10 – £20 per person). The pricing rationale for Clifton is intended to hand the restaurant a competitive edge. We target to earn the confidence and willingness of customers to spend on our starters, main course meals, drinks and desserts and experienced more return sales. For the next one year, Clifton targets to have a pricing scheme where the product is just 45% of the total retail price. Constant customers will earn right to discounts of up to 15% per meal.
iii) Place – Clifton Restaurant is located in Brick Lane at the gateway to Bangla town in London. This is indeed a prime location at the edge of Whitechapel Road and Osbone Street. Clifton is conveniently surrounded by all transport links besides being a few minutes walk fro Aldgate East Station (Carey 2004). Our diverse menu is well categorized according to the origin of the food preparation style for easy understanding of ignorant customers. We have an ample space on a couple of spacious floors capable of accommodating 200 people at ago. The open plan kitchen enables friendly interaction of customers and chefs besides. The Clifton targets to have a take-out model where customers will be able to place their orders through the phone and online.
iv) Promotion – Clifton Restaurant will run promotional campaigns using the mass media, online, banner ads and outdoor advertising done by our staff. The restaurant shall also periodically offer discounts of 15% to customers in the course of the next one year.
v) Physical Evidence – Clifton Restaurant offers the best to its customers – quintessential Bangladeshi & Indian cuisine, warm atmosphere, pleasant festive culinary and an evidently charming interior with serene ambience. It is not only suitable for casual dining but also for both large and small corporate events (Carey 2004).
vi) Process – the making of food begins with precise sourcing of raw products from suppliers, expert preparation of food following strict unique recipe, and high-class service to customers by our employees. The menu particulars have been tailored to give the best of the Indian and Bangladeshi tradition. Customers are kept duly entertained as the master chefs prepare the food to order specifications.
vii) People – Clifton Restaurant boosts of highly experience workforce dedicated to give customers the best customer service. The manpower is sufficient to handle the needs of customers coming at the restaurant. More hands will be recruited to meet our future expansion plans.
Market Segmentation and Targeting
The Clifton Restaurant targets customers with the following characteristics:
• $70, 000+ household income
• Located in and around Brick Lane
• Seek traditional Asian cuisine
• Families with busy lifestyles & no time to cook in homes
• Individuals: people who dine in by themselves
• Social groups dining together at restaurants
• Shoppers who operate the high business stores
• Take out: people that favor Clifton’s food in their home or at different location other than the restaurant.
The bulk of Clifton’s customer base is individuals aged between 25 and 60. Household income is the most defined element of this target market, where the average. The Brick Lane consists of large day and night population made up of entrepreneurs and families having household disposable incomes of over $35, 000.
Core strategy
The external marketing message that the Clifton Restaurant desires to send out is that exotic cuisine is incredible than assumed. The internal positional objective is to give customers a memorable dining experience and promoting authentic service from Clifton’s employees. The desired results include:
a) Attaining return business of at least 25% within six months after their maiden visit
b) Attaining an average per-person meal revenue of more than $20 prior to tax and tip
c) Achieving at least 75% capacity between 5pm and 9pm on Fridays and Saturday within one year.
Positioning
The Clifton Restaurant aims to position itself as an upscale, reasonably priced curly restaurant in London (Sengupta 2005). Customers of competitors will be drawn by the distinct, high-quality food and top-notch services available at Clifton. The restaurant’s patrons will be families and individuals aged 25-60.
Clifton Restaurant’s positioning will boost their competitive edge through:
a) Product – the food will have the freshest ingredients sourced directly from well-acclaimed suppliers.
b) Service – excellent service to customer is Clifton’s topmost priority. All employees will dedicate themselves to seeing that every customer has the most memorable dining experience at the restaurant. The restaurant will conduct a vivid training program for existing workers and new recruits.
• Word of mouth: The most economical and efficient way that Clifton Restaurant will employ in its marketing. Happy customers will always bring return business
Marketing Communication
• Advertising
o Print Media: advertisements shall be run in daily newspapers and leaflets shall be handed to customers as a way to advertise and promote the restaurant.
o Website: The Brick Lane’s Clifton Restaurant will always update new products, new promotion, and the new set of meals on website. Especially, in any occasions the promotion will be posted for special promotion as well.
CRM
The customers’ information will be stored in the data record following customers ordering. The database shall be used to establish the ordering way of customers and use them to strategize for new promotion.
Marketing Communication Budget
• Advertising
Print Media 50%
Website 20%
Social Network 5%
• Special Promotion 20%
• CRM 5%
Figure 2. Gantt chart Three year forecast
Year 1 Year 2 Year 3
Key General Assumptions
The key assumptions are shown in the following table in the form of annual figures.
• A sluggish-growth economy, but without major recession.
• No unexpected shifts in expectancy of Clifton’s popularity
• Sufficient access to investments and financing to maintain and meet our financial plan as indicated in the tables.
Table 1. Key general assumptions
Year 1 Year 2 Year 3
Plan Month 1 2 3
Current Interest Rate 0.00% 0.00% 0.00%
Long-term Interest Rate 7.00% 7.00% 7.00%
Tax Rate 34.58% 35.00% 34.58%
Other 0 0 0
Contingencies and controls
Clifton Restaurant is committed to its mission statement, & objectives and goals. However, in the event that we cannot meet our objectives and face challenges in branding, positioning and gaining competitive advantage, our first response will be to sell the operation and use proceeds to settle all outstanding balances (Graham 2008). Should the selling of the operation raise insufficient proceeds, we will default our loan. Investors will have to stomach any further outstanding balances, on the basis of weighted percentages of total amounts claimed in bankruptcy proceedings.
Appendixes
Appendix I
Presentation & structure of the report
1. Executive Summary
2. Introduction
3. Situation Analysis
4. Aims and Objectives
5. Appropriateness of segmentation and targeting
6. Implementation
7. Contingencies and Controls
Appendix II
Background of restaurant
– Clifton Restaurant was founded back in 1974.
Appendix III
Figure 1. One year sales forecast
– Clifton Restaurant’s sales forecasts 2012
Appendix IV
Figure 2. Gantt chart Three year forecast
– Schedule of all the marketing activities
Appendix V
Table 1. Key general assumptions
Appendix VI
References:
Carey, S. 2004. Curry Capital: The Restaurant Sector in London’s Brick Lane. London: Institute of Community Studies.
Best, T. 2010. Low-Cost Marketing Strategies For Bars And Restaurants. Texas: London: The Butler Publishing Group.
Frommer’s ShortCuts, 2011. London Restaurants: Frommer’s ShortCuts. New York: John Wiley & Sons.
Graham, H. 2008 Marketing Strategy: Competitive Positioning. 4th ed. England: Person Education Ltd.
Harriss, P. 2006. London Markets, 4th. London: New Holland Publishers.
McDonald, M. & Wilson, H. 2011. Marketing Plans: How to Prepare Them, How to Use Them. New York: John Wiley & Sons.
Sengupta, S. 2005. Brand Positioning: Strategies for Competitive Advantage. New Delhi: Tata McGraw-Hill Education.
Stickler, V. 2011. Business of Restaurants: London: An analysis of the current restaurant business. Munich: GRIN Verlag.
