Customer Segment Analysis - Research Paper Example

Marketing Report Marketing Report SWOT PLAN In order to start a restaurant business, it is necessary to conduct SWOT analysis that shows how effectively the business will be able to run taking notice of competitive factors that may have an impact on them. SWOT analysis will also help the business to instill an operating and promoting strategy that gives them an added advantage in the market (Maringe & Gibbs, 2009). The following SWOT analysis is taken into account when Tina decides to open a restaurant in Hyde Park, London. Strengths The first strength of the restaurant would be that it would be located at an easy accessible location and would be catering to all the age groups; families, business associates and students having a varied menu at reduced prices so that more people are able to approach it, increasing the business in the cosmopolitan area at Hyde Park. Furthermore, restaurant will have an innovative interior depicting infusion of cultures, warm ambiance as Tina has always been keen on designing interiors and also has an inclination to drafting appealing profile menu, so these will be the strengths of the restaurant. Weaknesses One of the weaknesses of the restaurant would be that as the company is new, Tina would need management teams that can run business effectively. That would be a difficult for Tina to approach candidates and select competent employees, provide training and supervise them to work effectively in the restaurant. The second weakness could be there would not be any relationship with the customers and the company is starting from scratch to establish a niche market so they have to build loyal customers. Opportunities The biggest opportunity for Tina to build business was on the fact that she won a lottery ticket that she could use and invest money to start the restaurant business at a high profile place, which was her passion and dream. As a new restaurant, the company has the opportunity to attract people through promotional schemes and other marketing medium. Threats The threat lies on the competitive forces that exist within the locality posing a threat to the new business. As restaurant business is new, Tina would require time and patience to establish a reputed name for her business. The locality where the business is set consists of a chain of reputed restaurants that may act as a barrier for customers to approach the new restaurant. Competitive Analysis The restaurant would be located at Hyde Park so there are three main competitors in the market, Montana’s Cookhouse, Kelsey’s and Boston Pizza. A competitive analysis of the three restaurants shows that there are certain strengths and weaknesses in them but they have a well-maintained clientele that poses a threat to Tina’s restaurant. Looking at the profile of these three restaurants it is seen that they have been competing with each other since last few years providing good food, maintaining their services due to which there is increased number of sales in their organization building loyal customers. A competitive analysis will be carried out through market analysis for the three companies. They are giving the following results based on marketing mix; product, price, promotion and placement. Montana’s Cook House: They are offering a limited selection of dishes but they have an excellent brand image with high quality of food with high prices. Due to their brand image they do not focus on product promotional schemes. Kelly’s: They are offering a variety in dishes. The only dropout is that they service quality and food is in- consistent. However, they are expanding their businesses advertising their new products by distributing fliers and this is serving as an added advantage to their business. Boston Pizza: It is an upscale restaurant providing a variety in pizzas. It is overpriced and even though they have maintained the quality of food but sometimes their service is slow. They are involved with promotional schemes once a year when they introduce a new entrée in their menu. Customer Segment Analysis Tina’s would be catering to serve a diverse group of people. The customers can be divided into target segments. Students: They would be coming after their school hours or between their breaks. They may also come and work in the restaurant as there would be a quiet and relaxing environment for the student to refresh himself when their school/college gets over. The restaurant provides fast food dishes for students who are keener for “take away” service. Low prices and economical range of dishes may be feasible for the students to easy and convenient access. The business people: people who would come to the restaurant to establish working relationship with their clients and future prospects. These people would conduct their business activities in the restaurant and more likely to spend more on tips and drinks. Couples & Families: these people would come on weekends, to have a sophisticated family gathering where they can relax and discuss their affairs. They would enjoy the extensive menus and meals offered by Tina’s with ambiance that promises excellent service. Couples & families mostly order balanced food, not spending too much on drink. After conducting the customer segment analysis, Tina’s can carry out a market analysis based on the chart discussed below. Market Analysis Potential Customers Growth % Year 1 Year 2 CAGR Lunch 8% 2000 4500 8% Supper 8% 2500 3200 8% Dinner (Weekday) 8% 2100 2500 8% Dinner (Weekend) 10% 3200 3500 !0% Total 9.1 98,00 13700 9.1% The Market analysis shows that customers will mostly arrive for supper and weekends as compared to lunches and weekdays. However, there are other customers as high-end singles that may come for excellent service and tourists who are more likely to appear during the summer season in the months of May to July. Target Selection: The target market for Tina’s would be the people living around the area of Hyde Park catering to families, singles, businessmen as well as tourist. As this place has developed in the recent years and the housing has grown, the income bracket of people living comprises about $99,551, showing that their low cost strategy would work for a company to launch its business successfully in the market. Mission Statement “Tina’s promises a casual and fine dining environment appropriate for business people as well as for families. Our goal is to provide premium quality products and services that cater to people of all ages promising to bring a permanent smile on your face.” Location and Name The restaurant would be located at Hyde Park, London, Ontario besides the three competitive forces, Montana’s Cookhouse, Kelsey’s, and Boston Pizza. The name of the restaurant would be “Tina’s Grill”. The restaurant would be located at Hyde Park as the area is cosmopolitan, comprising of people of different age groups and class. Moreover, it is seen that the housing in that locality has just developed with an average man generating an income of about $99,551 showing that the average number of people would have the capacity to try new restaurant. The other restaurants have a certain image in the market but as there are increased in mass inflow of people coming from all over the places at Hyde Park, they may try Tina’s new restaurant as they are catering to all the individual groups having a low cost strategy. Floor Plan Layout for the new restaurant The floor plan would be such that there would be a general manager responsible for running all the activities of the restaurants. In the beginning the restaurant would be a small scale business comprising of hall rooms and a gallery having ample space to accommodate more than 100 customers at one time. The anterior part would be a non-smoking area for families and couples, the exterior part of the room would be a smoking area for business associates. The gallery would be open for all. This place would be only used in summers from May to September and be closed otherwise as the climate of Hyde Park is extreme to be sitting outside in the winter season. All the servers, assistant chefs would be reporting to the general manager except the master chef who will be responsible for designing new innovative dishes and providing the training to the junior chefs and the preparatory cooks. Product The dishes in the menu should have a range that can match the neighboring restaurants and they are also required to be repositioned to broaden their scope. In order to cater all the age groups, the menu will consists of a variety. A kiddy’s corner, where the dishes would be designed keeping in view the taste buds of the young children. Tina would design new, innovative recipes with the help of a master chef so that they have an edge over the competitive restaurants in the same block (Pride, 2011). Price Price of the product determines the sales revenue for the company and other costs involved in the company. Price also creates value for the consumers as the amount of money they are willing to pay for the dishes. Taking these elements into consideration, the company will design such prices that are lower than the competitive forces so that it is easier for the average persons living in Hyde Park to make affordable choices that match their average income. However, the company’s pricing policy in liable to change over time after the company establishes a certain brand image in the market (Pride, 2011). Promotion As the restaurant is new, the company is required to have an effective promotional strategy to build a clientele. The promotional schemes are the way to communicate with the customers, providing them information about the products and services they are offering that could help them to purchase their products. Tina would be required to associate the cost of the promotional activities at the time of investment, after the company is able to develop a clientele they would be required to determine the cost of promotion through sizeable proportion of the prices of the dishes in the menu in order to run business successfully (Pride, 2011). After determining the product and prices of the products’ offering, Tina would instill an effective promotional strategy in order to launch a restaurant. The company will focus on the following promotional schemes; 1. There would be a grand opening ceremony in its celebration in which the first 50 customers will be given a free choice of entrée from the main menu. 2. The company would provide an in-store tour to every new customer who would come, showing them the new innovative interior design exclusively done by Tinas. 3. Advertising would be carried out through newspapers and distributing fliers. 4. In order to attract new customers, the company would change the outdoor marquee note depicting the company’s creative menu on a weekly basis. 5. After the company gains some recognition, the company would initiate organizing events like business dinners and birthday parties as part of the promotional plan. References Maringe, F., & Gibbs, P. (2009). Marketing Higher Education: Theory and Practice. New York: McGraw-Hill International. Pride, W. M. (2011). Marketing. Mason: South-Western Cengage Learning. Read More