Dinner is the Sky: Launch in Pakistan - Essay Example

? Dinner in the Sky: Launch in Pakistan [IDs Number Prof Dinner in the Sky Executive Summary Dinner in the Sky is a restaurant which is propelled in the sky with the help of industrial cables suspended through cranes. The franchise is primarily located in Guildford UK and has presence in various countries. The restaurant sells an exclusive idea and offers its customers an everlasting experience of having their food in the sky. Dinner in the Sky offers an elite cuisine which is meant for those individuals who desire to take their meals and their dining experience to the next level. The unique idea of having one’s meal in the sky will be the Unique Selling Proposition of the brand of Dinner in the Sky. The restaurant would take the customers from the ordinary to the extraordinary, where ordinary meals would be made into a thrilling experience which will leave a lasting impression on the customers. Besides serving good quality food and providing a one of its kind experience, Dinner in the Sky would also ensure the safety of its customers as the company puts its customers’ safety and security before itself. A crane will be used to lift up the setup of the restaurant (which will consist of the crew, furniture, 22 to 350 diners along with other necessary equipment about 180 ft above the ground. Depending on the demands of the customer, Dinner in the Sky will also build an independent "flying stage" which will propel a piano and musicians for the guests so that, they can enjoy live entertainment as they eat aloft. The structure of the eatery will be portable and will need a space of almost 1500 sq.ft, hence can be held anywhere (sea side, public place, historical sites and fields etc), (Dinnerinthesky.com, 2010). The mission of the restaurant, besides providing good quality food matched with a whole new experience, is to have well-organized and friendly services to maximize customer satisfaction (Mills et al, 2003). Dinner in the Sky will ensure safety and security of the structure before anything else. This paper focuses entirely on how Dinner in the Sky will enter the market of Pakistan and how it plans to survive and succeed in the market. The restaurant currently operates in about more than 15 countries (Dinnerinthesky.com, 2010). This report presents an opportunity to study the feasibility of launching this service in the growing market of Pakistan. Table of Contents 1Executive Summary 2 2Introduction 5 3Analysis/Justifications: 6 3.1Target Market and Market Segmentation: 6 3.2PESTLE Analysis: 6 3.2.1Political Analysis: 6 3.2.2Economic Analysis: 7 3.2.3Sociological Analysis and Consumer Behavior: 7 3.2.4Technological Analysis 8 3.2.5Contractual Obligations & Commitment 9 3.2.6Business Environmental Analysis: 9 3.3Channel Strategy: 10 3.4Communication Strategy: 10 3.5Human Resources and Administrative Support: 11 3.5.1Facilities & Offices 11 3.5.2Management & Organization 11 3.6Porter's Five Forces: 12 3.7Product Life-Cycle: 13 4Conclusion 13 5References 14 2 Introduction As quoted by Industry Reports 2009, about more than thousands of restaurants organized in a professional manner form the organized restaurant industry in Pakistan. These are spread throughout all major metropolitan cities of Pakistan, namely Karachi, Lahore, Islamabad, Faisalabad, Peshawar, Quetta etc. With Karachi, the business hub of the country, the city carries headquarters of many international businesses besides housing international brands of food chains, clothing, electronic items etc. The restaurant industry is categorized in eateries according to the type of cuisine which they offer. Weekends are the source of major chunk of the sales of all restaurants in Karachi (Industry Reports, 2009). For something like Dinner in the Sky, the market is virgin as no other offering exist in the market which has to give a unique blend of excitement, food and an experience and this would be an entirely distinctive feature for the market of Karachi. Dinner in the Sky being a UK based franchise, it will have to won some property directly or indirectly in order to be able to set up and start a business. Franchising system would be used as a strategy to enter the market. The franchisee in Pakistan would be the owner of the property as a corporate entity or as an individual under business interest according to International Law and Dinner in the Sky will operate through the latter representative (Mehdi, 2001). 3 Analysis/Justifications: 3.1 Target Market and Market Segmentation: The target market of Dinner in the Sky would be people belonging to the Social Economic Class A+, A, B+ and B. The market size which Dinner in the Sky looks forward to is about 10% of the total population of the city which is approximately 13 to 15 million people. (Saqib, 2007). The company will opt to position the brand as premium and will make itself known as a value leader in the eatery industry of Pakistan. 3.2 PESTLE Analysis: 3.2.1 Political Analysis: As mentioned above, Dinner in the Sky is a foreign entity which will have to enter the market through franchising. Being a UK based firm, either some property needs to be bought or leased in Pakistan or to outsource to a franchise. Dinner in the Sky must gain the first mover advantage. The political scenario of Pakistan seems to encourage Foreign Direct Investment in the country. The country is about to host another democratic elections which will bring in possible new set of incentives to firms investing in the country (Das et al, 2006; Business Monitor International Ltd. 2005). The franchisee in Pakistan will be the owner of Dinner in the Sky in the UK and will purchase the property in Pakistan as a corporate entity or as an individual under business interest according to International Law (Mehdi, 2001). Besides this, Dinner in the Sky has to meet all the standards of food quality, kitchen hygiene and safety standards of restaurant equipment set by the Government bodies (Industry Reports, 2009). 3.2.2 Economic Analysis: Pakistan has a growing economy. Country’s GDP is on the rise and the country’s middle class is also growing. This leaves a good opportunity for Dinner in the Sky as it is a lifestyle and a luxury brand. The country stands at a GDP of approximately $180 billion and sports per capita income of $2,000 (State Bank of Pakistan, 2011). Being a growing economy however, leaves some negative impact on the economy. The country is experiencing a high inflation rate which becomes a hindrance in smooth growth of the economy. Growth rate in the economy has fallen to 2% from last year’s 4% (Economywatch.Com; Theodora.Com, 2011). As opposed to this, the restaurant industry shows a totally contrary picture. The demand for eateries is growing consistently and Pakistan’s growth potential is quoted to have a positive impact on foreign direct investment. Besides this, as Pakistan is in its growing phase, it is yet to be explored and offers many opportunities of innovative ideas (Sathar et al 2009; Vaughn, 2010). 3.2.3 Sociological Analysis and Consumer Behavior: Residents from the high-end towns of the city, namely Muhammad Ali Society, Clifton and Tariq Road are major commercial areas of Karachi, mainly belong to SEC A+ till B (Hashmi, 1965). Along with this, many international brands of food chains and apparels operate in the city Karachi. Few of the many brands are as follows: McDonalds, Pizza Hut, Butler’s Chocolate, Hardees, KFC, Mr. Burger etc. The city also is a host for all multinational corporations operative in the country (Rubina et al, 2004). Approximately, 25 to 30 new businesses enter the market annually. These restaurants have somewhat the same menu and they compete mainly on prices and ambiance which they have to offer (Industry Reports, 2009; Hotel, Restaurant & Tourism Directory of Pakistan, 2009). The restaurant will put Asian-Swedish food on its menu with an assortment of Arabian cuisine as the latter appeals to the taste buds of the target market of Pakistan (Pakistan’s Tourism Division, 2006). The main reason for having a unique set of menu is part of its strategy of connecting more with the society which it operates in. Dinner in the Sky customizes its menu with respect to different markets and countries it operates in. Besides this, the target market prefers a suitable environment where they can eat good food with their families in a comfortable environment (Industry Reports, 2009). 3.2.4 Technological Analysis The restaurant would need state-of-the-art equipment to propel the restaurant up in the sky. This will need a crane and industrial cables which will need to be checked on a daily basis in order to keep the customers safe. As narrated in a report published by the Government of Pakistan: Report on urban construction survey in Karachi, 2009, all the necessary equipment is available in the country as the restaurant will use the same technology which is used in the construction industry (Mills et al, 2003). Besides this, the kitchen equipment can be bought locally from vendors which other restaurants use in the industry (Mills et al, 2003; Government of Pakistan, 2010). 3.2.5 Contractual Obligations & Commitment The franchisee in Pakistan will be the owner of Dinner in the Sky in the UK and will purchase the property in Pakistan as a corporate entity or as an individual under business interest according to International Law (Mehdi, 2001). Besides this, Dinner in the Sky has to meet all the standards of food quality, kitchen hygiene and safety standards of restaurant equipment (Industry Reports, 2009). 3.2.6 Business Environmental Analysis: Dinner in the Sky will offer a unique service to its customers which no other restaurant is currently offering in the market. However, Dinner in the Sky would share its target customer with the following competitors: Revolving Restaurant, Shan-e-Mughlia (The Demeanor of the Mughals), Village Salt and Pepper, Lal Qila (The Red Fortress), and Evolution. These restaurants share the same market and incorporate a theme in their establishment to attract and retain customer. Also, they are premium priced eateries with a pleasant atmosphere (Karachisnob.com, 2011). They also offer banquet meals with the customers can enjoy along with their friends and kin. Other restaurants which cater to the lower end market and the middle class, use the tool of competitive pricing in order to attract more customers. This will not expose Dinner in the Sky to direct threat from these restaurants however; they will be treated as indirect competition (Hasan, 2002). Unlike any other restaurant in Pakistan, the company will offer a unique dining experience to the customers and this unique experience would be Dinner in the Sky’s competitive advantage. Along with this, specific care would be taken by the management of Dinner in the Sky to provide state-of-the-art security to the customers and strife to make their experience one of a kind in order to make sure that a strong customer base is established in the company’s introductory stage (Pakistan’s Tourism Division, 2006). 3.3 Channel Strategy: The restaurant industry of Pakistan consists of many suppliers in the market. This gives them a small bargaining power as the market of raw material is competitive. However, technology which is used in the construction industry will be deployed at Dinner in the Sky along with frequent maintenance tests to ensure the security of the customers. The structure and the restaurant will be placed at Port Grand, and will be operating from 6 pm to 2 am. This is same as the hours of Port Grand, Karachi. As stated on Play TV’s website, Port Grand is the latest food street of Asia, which has been added to the attraction of the city. During its introductory stage, the restaurant will operate solely on booking and reservations in order to skim the higher end market and earn decent revenue before it will move to other segments that are: SEC A, B+ and B (Mehdi, 2001; Industry Reports, 2009; Pakistan’s Tourism Division, 2006). 3.4 Communication Strategy: As the market of Dinner in the Sky is limited to the upper class, it should not advertise on ATL in order to communicate to the masses. Word-of-mouth marketing should be instigated in order to create awareness amongst the target audience. Besides this, the main focus should be on the Public Relations. Writing blogs, managing content and promotion in the right media would help the firm create a strong awareness. Along with this, Print ads should be given in those newspapers and magazines which have access to the relevant target market. Some of the examples are: Dawn, Business Recorder, Daily Times, The News, Synergizer, Diva, Fashion Collection, Herald, She etc. All these publications cater to the upper class market (Sathar et al, 2009). Besides this, the channel of Social Media should also be thoroughly explored as the internet use of the country is consistently rising and the target market of Dinner in the Sky is most approachable via Social Media (Rehmat et al, 2005). 3.5 Human Resources and Administrative Support: 3.5.1 Facilities & Offices The restaurant marks its presence in more than about 15 countries. Pakistan, as mentioned above, is a growing market which leaves a lot of potential for Dinner in the Sky (State Bank of Pakistan, 2011; Economywatch.Com; Theodora.Com, 2011; Sathar et al 2009; Vaughn, 2010). A base location of about 1500 Square foot will have to be selected which is available at Port Grand Karachi. The licenses and Codes of Issues will be taken. Equipment, which is specified under the Technical analysis, will be set up (Mills et al, 2003). 3.5.2 Management & Organization 3.5.2.1 Personnel Plan The restaurant will employ about 8 full-time employees and 17 part-time employees. Following is the management hierarchy (Mills et al, 2003): 3.6 Porter's Five Forces: Porter's Five Forces model can be used to gauge the competiveness of the restaurant industry. It can be ascertained from the number of entrants in the market that both entry and exit barriers are low as 30 entrants are noted to enter the market approximately every year (Industry Reports, 2009). In contrast to this, the suppliers in the industry, being ample in number, have less bargaining power (Industry Reports, 2009). The idea being one of its kind, Dinner in the Sky will definitely gain the first mover advantage. Alongside this, it has no direct threat from competition as well, reducing the Rivalry from Competitors in the Porter's Five Force model. The customers in the industry have a high bargaining power as there are many substitutes of restaurants available to them. However, the market of Dinner in the Sky has low bargaining power as there are no close substitutes for the product (Industry Reports, 2009; Hotel, Restaurant & Tourism Directory of Pakistan, 2009). All these factors clearly give Dinner in the Sky an edge over its competition in an industry where there is fierce competition amongst major players (Industry Reports, 2009; Hotel, Restaurant & Tourism Directory of Pakistan, 2009). 3.7 Product Life-Cycle: Dinner in the Sky will have the opportunity to skim the market at higher prices in its introductory stage as an innovative idea will always sell in the up market as explained by Blythe in the book Key Concepts in Marketing. The product Life cycle of Dinner in the Sky can be extended by re-launching it in different market segments. Skimming the SEC A and B, the restaurant can then move in the down markets to cater to lower SECs and hence, maximize its revenue over a period of time from different markets. 4 Conclusion Karachi houses approximately 18 million people and a growing middle class therefore it leaves a good opportunity for Dinner in the Sky to target the market of Pakistan. The restaurant marks its presence in more than 20 countries which have predominantly been developed countries. It has yet to explore larger markets of the developing countries and Pakistan, amongst other developing countries, forms a good potential market for luxury brands (Pakistan’s Tourism Division, 2006). 5 References HOTEL, RESTAURANT & TOURISM DIRECTORY OF PAKISTAN (2009). Islamabad: Economic Research & Statistics Section, Tourism Division, Govt. of Pakistan, 2009. Print. KARACHISNOB.COM (2010). “Restaurants”. Web 21 December 2011 Available at INDUSTRY REPORTS (2009). “Restaurant Industry in Pakistan”. Industry Reports. 2009. Print MILLS, J., CLAY, J. M., PARSA, H. G., & ISMAIL, J. (2003). Restaurants in the Sky. Journal of Foodservice Business Research. 6, 45-65 DINNERINTHESKY.COM (2010). Dinner in the Sky. [Online] Available at: http://dinnerinthesky.com/dits_dinner/dinner.php [Accessed 22 December 2010] STATE BANK OF PAKISTAN, (2011). The State of Pakistan’s Economy. First Quarterly Report 2010 – 2011. [Online] Available at: http://www.sbp.org.pk/reports/quarterly/fy11/first/qtr-index-eng.htm [Accessed 20th December 2011] ECONOMYWATCH.COM, Pakistan Economy, [Online] Available at: http://www.economywatch.com/world_economy/pakistan [Accessed 19th December 2011] THEODORA.COM, (2011), Pakistan Economy 2011, [Online] Available at: http://www.theodora.com/wfbcurrent/pakistan/pakistan_economy.html [Accessed 19th December 2011] PAKISTAN’S TOURISM DIVISION, (2006). Market potential for five star hotels in Karachi. [Karachi], Economic Research and Statistic Division, Tourism Division, Government of Pakistan. HASHMI, S. S. (1965). The people of Karachi; demographic characteristics. Karachi, Pakistan Institute of Development Economics. HASAN, A. (2002). The unplanned revolution: observations on the processes of socio economic change in Pakistan. Karachi, Oxford University Press. RUBINA HAKEEM, A.H. SHAIKH, & MUSARRAT ZIAEE. (2004). Socio Economic Differences in Frequency of Food Consumption and Dietary Trends in Urban Areas of Karachi, Pakistan. Asian Network for Scientific Information Available at: http://docsdrive.com/pdfs/ansinet/pjbs/2004/822-826.pdf [Accessed 23rd December 2011] SAQIB, O. F. (2007). Papers and Proceedings 2nd SBP International Conference on "fixed income market development in emerging market economies": Karachi, December 18-19, 2006 SATHAR, Z. A., ZAIDI, B., & KHAN, M. A. (2009).Pakistan's demographic transition in the development context. Islamabad, Pakistan, Population Council. PLAYTV.COM.PK. (2011). Asia’s Biggest Food Street In Karachi. [Online] 21st December 2011. Available at: http://www.playtv.com.pk/news/life-a-style/102-asias-biggest-food-street-in-karachi.html VAUGHN, B. (2010). Security and the environment in Pakistan. [Washington, DC], Congressional Research Service, Library of Congress. http://www.cq.com/displayfile.do?docid=3720577 MEHDI, R. (2001). Gender and property law in Pakistan: resources and discourses. Copenhagen, DJOF Pub. Top of Form BUSINESS MONITOR INTERNATIONAL LTD. (2005). Pakistan food & drink report including 3-year industry forecasts by BMI. London, Business Monitor International. http://gateway.proquest.com/openurl?url_ver=Z39.88-2004&res_dat=xri:pqd&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft_dat=xri:pqd:PMID%3D96970. DAS, S., & PANT, M. (2006). Incentives for Attracting FDI in South Asia. International Studies. 43, 1-32. REHMAT, A., & JAN, M. (2005). Media in Pakistan, growing space, shrinking freedoms annual report on state of media freedoms in Pakistan. Islamabad, Internews Pakistan. BLYTHE, J. (2009). Key Concepts in Marketing. London, Sage publications ltd. GOVERNMENT OF PAKISTAN (2010). Report on urban construction survey in Karachi, 2009 Karachi: Central Statistical Office, Economic Affairs Division, Government of Pakistan.Bottom of Form Read More