Market for Restaurants in Buenos Aires - Research Paper Example

? Marketing Plan for a New Restaurant Table of Contents Market for Restaurants in Buenos Aires 3 Market Segmentation 3 Target Market 4 Localization 5Differentiating Point 5 Pricing 6 Advertisement 7 Promotions 9 Market for Restaurants in Buenos Aires Buenos Aires is the largest city of Argentina and thus provides with a very large market. The service sector of the city is well developed and complies with the international standards. The city is basically the economic hub of the state of Argentina. You may call it the hospitality industry or the service industry but it is well developed in sector of the economy of Argentina. It is quite profitable to establish a restaurant in the area where this industry is actually flourishing. Buenos Aires has a large tourist influx each year. Not only are the tourist influx, but there several business people who travel to this busy city every now and then. The main concern for the tourists and business people from different parts of the world is the food that they will be getting in the foreign country. The marketing plan is basically for a restaurant that has to be opened in the busy city of Buenos Aires. The restaurant will be situated in the city of Buenos Aires and will provide with the high-quality food. It will not only provide with quality food but also with a place that will be full of comfort. In a hospitality industry servicescape plays a major role. It is the ambience that attracts the customers. It is the servicescape that helps the target market to relate to a particular restaurant or any other service industry. The new restaurant will be targeting the tourists and business people and also the locals. The target market is further discussed under the heading of the target market of the marketing plan. Market Segmentation For any industry, market segmentation is a really important aspect. It helps to make a clear map of the target market and helps to trace out those segments that can provide with the maximum profits. Similarly for this restaurant market segmentation is done on the basis of profits. The target market has been segmented into tourists, locals, business people, children, adults, old age and minorities from different ethnic backgrounds. The market segment of tourists, locals and business people provide with the highest profitability. Thus these market segments have been targeted and are further discussed in the marketing plan. Target Market As mentioned earlier in the introduction and the market segmentation, the target market of the new restaurant will be the tourists and business people from all around the world who visit Buenos Aires. Business people do not mean that they will be businessmen but it means people who are visiting the city for some official or work purpose. The age segment that the restaurant will be targeting is 16 years and above. The restaurant will not cater to the children market. In addition to the tourists and the officials, the restaurant will also be targeting the locals. The question arises that how will the restaurant target such diverse market segments. The answer lies in the set up of the restaurant and the menu that it will serve. The menu will include a wide variety of dishes. These dishes will belong to different cuisines. The restaurant will basically serve the Chinese, Italian, Mexican and Lebanese cuisines. The restaurant will be partitioned according to the different cuisines that it will offer. In addition to this partition, each parted portion will carry the respective theme. For example the part of the restaurant where Chinese is served will have a Chinese ambience and same goes for the other cuisines. This will give an exotic touch to the food and can also be the differentiation point for the restaurant. In order to serve the local target audience the restaurant will also provide with the local cuisines in addition to the world famous cuisines. Localization The restaurant will focus on the local trends as well. It will incorporate local culture along with the international cultures on the basis of which the restaurant will be partitioned. It will blend the local cultural trends of Buenos Aires with the Chinese, Mexican, Italian and the Lebanese cultural trends. One part of the restaurant will be purely based on the local trends and the ambience will be exactly in accordance to the local trends. Tourists and business people who would want to get a taste of local food can go to this part of the restaurant and enjoy the local culture and food. The restaurant will be in total compliance with the local restaurant industry of Buenos Aires. In addition, in order to serve the locals, the restaurant will provide a home delivery service as well. It will help the restaurant to compete with the different restaurants within the vicinity. Plus it will help the restaurant to provide service to those who are not able to visit the restaurant because of some constraint. This will only help to add to their clientele. The restaurant will be following the local trends of hospitality. As it is the hospitality industry, friendly service provision plays a really important role. In the restaurant industry friendliness of the staff adds on to the service experience and leads to customer satisfaction. If the service is not good but the product that is being is served is up to the mark, still it will leave the customer unsatisfied. Thus high levels of hospitality will be incorporated into the restaurant service. Differentiating Point The restaurant can differentiate itself on the basis of its servicescape (Sherry, John F) The different variety of cuisines it will serve and the partitions made on the basis of these cuisines will serve as a differentiating point for the restaurant. The whole restaurant service will serve as its differentiating point because it will provide its customers with a whole new experience which would not only be luxurious but exotic. Not only is unique ambience but also the service quality will serve as a differentiating point for the restaurant. Pricing The restaurant will be providing will high-quality food and service. Pricing strategy plays a central role to the service standard. High prices leave a better perception in the minds of the customers. They anticipate that if the service is being provided for a high price, it will be of high quality. But when it comes to the service industry, pricing is a far more sensitive aspect than one thinks (Zeithaml, Valarie A, A Parasuraman, and Leonard L. Berry) For this restaurant, the prices that will be charged would be moderately high. But it will be made sure that the service provides value for money. This will be ensured through the recruiting of proper hospitable staff. The service standards will meet the level of the prices that are charged. It won’t lead to a negative perception about the restaurant service in any way. The service quality will be standardized and will comply with international service standards. High prices will provide with exact value for money and would not in any way affect the level of customer satisfaction. Whether it’s the food quality, ambience, service time or anything related to the service provision, everything will reflect the prices that have been charged. The customers will get a delightful feeling. They will be satisfied and will not in any way think that they are paying for a service which is not worth the price they are paying. Advertisement For a new restaurant the most advisable advertising mediums that could be used are the local cable channels, flyers, local newspaper advertisements, LCD screens and also the internet. The overall advertising budget for the restaurant for the first year would be: Advertising Medium Budget Local Cable Channels $2000 Internet $4000 Flyers $1000 LCD Screens $5000 Local Newspapers and restaurant directory $5000 Total $17,000 The advertising budget for the restaurant is not very high as compared to the scale and level of the restaurant. The restaurant is an expensive one and it needs to spend a little amount on its advertising in order to create awareness among the target market. In addition to creating awareness it is also necessary so that it can penetrate the restaurant industry with a strong position. Use of local advertising mediums is a better option because it is cheaper and plus is a better way of targeting the local market (Lovelock, Christopher H) Local cable channels will carry ads to target the local market. Flyers can also be distributed within the city that will carry the information about the new restaurant. These flyers should be distributed throughout the city whether it’s houses or shopping malls or offices. This is most easy way of spreading the name of the new restaurant through the public. Then is the turn of the internet which is the cheapest medium for advertising. Restaurant staff can set up a website and also create a page on the social network sites that provides with the menu and all the information about the restaurant services. The restaurant can also engage in the email marketing and can use email marketing software. This will be an effective way of advertising because it will help to build an interaction with the potential customers and will also aid in building up of customer profiles. Internet marketing is quite cheaper; the only thing that is adding up to the cost of advertising through the internet is the purchase of the email marketing software. Advertising through LCD screens is a new advertising trend. These LCD screens are placed in different parts of the city, especially the crowded parts of the city. Buenos Aires has several places that are crowded up by people. These places carry lots of advertising campaigns. LCD screens are placed in these areas to target the audience basically. The restaurant can run their advertisements on these LCD screens. This will be a good option because these LCD screens are exposed to a larger audience. Similarly the restaurant can advertise through the local newspapers as well. They can place their ads in the newspapers. There is a chance that the newspaper ads will be seen by the business people or the tourists visiting the city. Newspapers and flyers are an example of print ads. Print ads work best for the restaurant industry because they help to create awareness and also target the right audience. In addition to the newspapers ads, one very apt medium would be the use of restaurant directories. These directories list down all the restaurants of the city and are a good way to place advertisements of new restaurants. Almost every household and businesses have access to these directories and the audience is likely to get exposed to the new restaurant ads. Print ads can even be given in magazines. These will a little expensive but this can be done at a later stage once the restaurant has been opened. Initially the advertising budget should be kept low and should be adjusted with the profits and the success of the marketing campaign. Promotions During the initial weeks of the opening, the restaurant should be offering some promotions. This is a good way of penetrating the market. The promotions may include free home delivery service. When it comes to restaurant industry, free home delivery really works to attract the audience because it saves their time and also the travelling costs incurred in order to reach to the restaurant. Another promotion that can be offered is that initially the restaurant should be offering discount on different cuisines. It should offer different deals in order to build its clientele. These promotions can have a positive impact on the image of the new restaurant and will also help to boost its sales. If the marketing plan is followed in the right manner and the right target audience is served, the restaurant can reach the peak of its success in a very less time. Initially the restaurant and its staff will have to work really hard to build its repute and attract a large clientele. But in the long run this hard work will surely pay off in the form of a large, satisfied clientele and the increased sales and also a good reputation. References Lovelock, Christopher H. Services Marketing. Englewood Cliffs, N.J: Prentice Hall, 1991. Print. Zeithaml, Valarie A, A Parasuraman, and Leonard L. Berry. Delivering Quality Service: Balancing Customer Perceptions and Expectations. New York: Free Press, 1990. Print. Sherry, John F. Servicescapes: The Concept of Place in Contemporary Markets. Lincolnwood, Ill: NTC Business Books, 1998. Print. Read More