Healthy Food Cafe Marketing Strategies for Gino Nutriona - Case Study Example

A Healthy Food Cafe Marketing Plan for Gino Nutriona Student Name: Institutional Analysis: Date: Table of Contents Australian Cafes and Restaurants Industry Overview Cafe chains in Australia increased by 5.2% in the year 2013, however, independent cafes are on the decline due to rising operational costs and increased competition from cafe chains (Foodservice Australia, 2014). Between 2010 and 2013, the foodservice industry in Australia has been struggling with a low demand for food and beverages particularly due to an economic slowdown. Restaurants that have kept costs down and simplified their menus have benefited from the situation (EuroMonitor International, 2014). In 2013, the number of foodservice outlets in Australia reduced by 1% (IBIS World, 2014). Economic hardships and health awareness are the main reasons Australians prefer to eat at home (EuroMonitor International, 2014). Homemade food is cheaper and healthier. There is a growing demand for healthy foods in the Australian cafe industry. This is partly attributable to changing consumer preferences for healthier diets (IBIS World, 2014). The ACT government is currently running the ‘Towards Zero Growth healthy weight initiative’. This action plan is intended to convince Australians to cut on consumption of unhealthy foods in order to reduce obesity rates (ACT Governement, 2014). According to a report by IBIS World, the Australian cafes and coffee shop industry is expected to generate total annualised revenue of $4.3 billion by 2015. Revenue in the fast food industry is forecasted to grow at an annualized rate of 0.7% through to 2015 (Foodservice Australia, 2014). 1 Uncontrollable environment Political The commonwealth government of Australia is a stable democracy founded on the rule of law and constitutional order. The regional governments work closely with the commonwealth government to provide a peaceful and stable environment for business and development. Businesses in the cafe and restaurant industry cannot be negatively affected by political instability or lack of political goodwill to protect the hospitality sector. The commonwealth government in partnership with regional government helps to promote the Australian tourism and hospitality sector to boost revenue generation (Australian Government: Department of Foreign Affairs and Trade, 2014). Economic General economic slowdown and uncertainty in Australia has considerably reduced demand for food and beverages in the foodservice industry (Westcott, 2014). According to the Euromonitor report 2014, on the Australian foodservice industry, there was an increased frequency of people eating. However, consumers chose more-convenient and less-expensive meals (EuroMonitor International, 2014). This trend is set to continue until economic uncertainty and general performance of the Australian economy improves. Social Society in Australia and other developed countries is rapidly responding to lifestyle diseases through changes in eating, living and physical exercise habits. More people now prefer healthier food and drinks alternatives over salty, sugary and high-calorie foods (Westcott, 2014). The ACT government is leading a campaign on healthy food consumption to spread awareness on the contribution of unhealthy diets to lifestyle diseases such as obesity and diabetes (ACT Governement, 2014). Technological The food service industry not very much exposed to technological changes due to near-constant nature of products and services in the sector. Technological changes in areas such as digital marketing and promotion may be the only factors to consider for Gino’s business. 2 Competition profile There are a number of healthy food and vegetarians restaurants in Canberra. At 12 Beltana Road, Pialligo is pod food restaurant located just a few minutes from the Canberra International Airport. Pod food serves gluten, dairy, grain and refined sugar free foods and drinks to their clients. V-spot cafe located in Canberra central is a vegetarian cafe that serves healthy vegetable-rich foods to their clients. Marple+Clove Restaurant is another healthy food business located just next to the Parliament House in Canberra. Marple + Clove serves a range of healthy foods including kale, chia Seeds, grass-fed beef and biodynamic wines and beer. Marple + Clove Restaurant are dedicated to serving whole foods such as high-fibre grains and egg alternatives in breakfast and lunch meals. Local press Wholefoods cafe is a new healthy foods business located on the Kingston Foreshore. LocalPress has its menu mostly composed of fruit and vegetable salads and traditional coffee drinks (News, 2014). Pod Food, V-spot, Marple+Clove, and Local Press are part of the healthy foods cafes that can provide direct competition to Gino’s Healthy food cafe in Canberra. Indirect competition for Gino’s Healthy food cafe will mostly come from fast-food chain cafes and other food cafes in Canberra. Some of the fast food chains present in Canberra include; McDonalds on Cooyang and Braddon streets and Hungry Jack’s on Gibberson and Keltie Streets (Google Maps, 2014). 3 Market Segmentation Healthier food meals are priced slightly higher than other meals due to the scarcity of the ingredients and the meticulous preparation methods. A three-course meal at Pod food will cost anywhere between $45 and $60 will cost. A glass of cold-pressed juice costs $8 at the same restaurant (Pod Food, 2014). Healthy foods are targeted at clients who are willing to pay more for meals that are not available in the usual restaurants. The general population in Canberra makes up this target market due to the growing awareness on the relationship between diet and health. Canberra’s population as at 2009 stood at 358,222 according to the Australian Bureau of Statistics (2009). Canberra also received more than 1,938,942 tourists in 2013 (ACT Government: Economic Development Directorate, 2013). Canberra residents have an average income higher than that the national Australian average income according to data from the Australian Bureau of statistics (2013). The median weekly household income in Canberra stands at $1,980 (Australian Bureau of Statistics, 2014). The population size in Canberra and the general standards of living can be able to fit in the target market for Gino’s healthy food cafe. Some tourists will also be interested in sampling healthy food menus in Canberra out of travel curiosity. Gino’s healthy food cafe can benefit from the more than 1,000, 000 tourists that visit Canberra attraction sites yearly. 4 Gino’s healthy food cafe Marketing Mix 4.1 Product Gino Nutriona Cafe Shop will offer both quality service and healthy food diet as a bundled product. The product is at introductory stage meaning it will have to be affordable and unique in order to attract customers from the existing competition. There is a growing trend towards restaurants introducing healthy glutton and dairy free meals in their menus (IBIS World, 2014). To differentiate Gino’s product offering in the market, a unique service and a serene restaurant environment will be used as value addition elements. The core product in the offering is food and related service. Health value in the food and serene environment are the augmented parts of the product offering. Nutriona cafe is the brand name for Gino Nutriona cafe. Nutriona as a brand name for a healthy food cafe is ideal as it sounds both nutritious and delicious. This brand name and associated colours will be used to promote Gino’s restaurant business in mediums such as World Wide Web, foods expos, banners and brochures. 4.2 Pricing Price can be used by sellers to differentiate a brand in terms of perceived value or a competition tool. Gino Nutriona’s Cafe will use a slightly lower price to enter the healthy foodservice industry of Canberra. A three-course meal at Pod Food costs $50 while a four-course meal at Marple+Clove is priced at $80 (News, 2014). Gino’s cafe will price its three-course meals at $ 35. This price will only be sustained in the short-run period to attract customers. Gino targets to have a profit margin of 30% in the prices offered. For the introductory stage, Gino will offer discounts to customers that come back with friends in their second and subsequent visits. The discounts will be 50% of the customer’s bill on selected meals. 4.3 Promotion Promotion at the introductory stage of a product’s lifecycle focuses on communicating benefits in terms of value, convenience or price to the target market (Epstein, 2006). The promotion element in the marketing mix will be to communicate the convenient location of Nutriona cafe, the ambience of the restaurant and the quality of the healthy and the delicious foods choices available to customers. Gino Nutriona Cafe will advertise in the local newspapers such as the Canberra times and also in TV commercials during prime time. Gino Nutriona Cafe will use social media and other digital marketing channels to introduce the brand particularly at the launching stage of the restaurant. Gino will hold contests on twitter and facebook to popularise itself as a new healthy food cafe worth visiting. For the promotion to be effective, it has to be coordinated through an integrated marketing communication strategy that positions Gino cafe as stylish, serene, affordable and exceptional in terms of food and service quality. 4.4 Location Location is an important consideration for healthy food restaurants. Location is influenced by price, products and target market considerations (IBIS World, 2014). Gino’s Healthy food cafe will be located on Kingston Foreshore at the heart of Canberra. This unique and beautiful location on the edges of Lake Burley Griffin complements the products value in terms of a serene and ambient restaurant environment. The location is also conveniently located within reach of most Australians in Canberra. There is competition in this area from other healthy food restaurants including Local Press Wholefoods cafe (Tourism Australia, 2014). Gino’s cafe will attract and retain repeat customers through exceptional service quality and a diversified menu. Most ingredients for Gino’s cafe can be sourced locally from groceries. Gino’s new Healthy foods business faces favourable external factors such as political stability and social trends that support consumption of healthy foods. However, the Australian economy is experiencing reduced growth, a situation that is affecting demand for restaurant food and drinks. Gino’s cafe might have to consider serving affordable but quality food for the health conscious population in Canberra. Gino’s cafe should be located in Canberra central, preferably on the Kingston Foreshore in order to blend the value of the location and the brand value proposition. At the introductory stage, Gino’s cafe will have to advertise its product offering extensively through print media, TV and Digital channels. Successful implementation of his marketing plan will deliver profitability and growth for Gino Nutriona’s Idea of a Healthy food cafe. References ACT Governement. (2014). Health Directorate - Population Health. Retrieved October 27, 2014, from ACT- Health : http://health.act.gov.au/health-services/population-health/ ACT Governement: Economic Development Directorate. (2013). Annual Report. Canberra: Economic Development Directorate: ACT. Australian Bureau of Statistics . (2009). Census of Population and Housing. Retrieved October 27, 2014, from Australian Bureau of Statistics: http://www.abs.gov.au/census Australian Bureau of Statistics. (2014, August 4). 6302.0 - Average Weekly Earnings, Australia, May 2014. Retrieved October 24, 2014, from ABS website: http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0/ Australian Government: Department of Foreign Affairs and Trade. (2014). Australia's system of government. Retrieved October 27, 2014, from Department of Foreign Affairs and Trade: http://www.dfat.gov.au/facts/sys_gov.html Epstein, K. (2006). Marketing for small businesses made easy. McGraw-Hill Companies Incorporated. EuroMonitor International. (2014). Consumer Foodservice in Australia. Canberra: EUROMONITOR. Foodservice Australia. (2014, July 18). Australian foodservice market to grow. Retrieved October 27, 2014, from Foodservice Australia: http://www.foodserviceaustralia.com.au/page.cfm/Action=press/libID=1/listID=1/libEntryID=21 IBIS World. (2014). Fast Food Services in Australia: Market Research Report. Canberra: IBIS World. News, (2014, July 1) Merrymaker Sisters spill about healthy food restaurants in Canberra. News. Retrieved from: HYPERLINK "http://www.news.com.au/lifestyle/food/merrymaker-sisters-spill-about-healthy-food-restaurants-in-canberra/story-fneuz8wn-1226973611614" http://www.news.com.au/lifestyle/food/merrymaker-sisters-spill-about-healthy-food-restaurants-in-canberra/story-fneuz8wn-1226973611614 Pod Food. (2014). Where to eat in Canberra - Podfood Menus. Retrieved October 27, 2014, from Pod Food: http://www.podfood.com.au/podfood-menus.html Tourism Australia. (2014). Waterfront dining on the Kingston Foreshore. Retrieved October 27, 2014, from Restaurant.Australia: http://restaurant.australia.com/en/explore/australian-capital-territory/Experiences/waterfront-dining-on-the-kingston-foreshore.html Westcott, Ben (2014, May 1) Australia’s fast-food market is getting smaller, healthier and more diverse. The Canberra Times. Retrieved from: HYPERLINK "http://www.canberratimes.com.au/act-news/australias-fastfood-market-is-getting-smaller-healthier-and-more-diverse-20140608-zr2j7.html"http://www.canberratimes.com.au/act-news/australias-fastfood-market-is-getting-smaller-healthier-and-more-diverse-20140608-zr2j7.html Read More