Marketing Plan for Recovery from Foodborne Illness Disaster - Essay Example

Marketing Plan for Recovery from Foodborne Illness Disaster Table of contents Marketing Plan for Recovery from Foodborne Illness Disaster 1 Table of contents 1 Overview of the scenario 2 Background of the restaurant 3 Mission, vision and positioning statement 4 Hospitality Industry 5 Marketing Objectives 6 Competitive Set 9 SWOT Analysis 10 Marketing Budget 13 Conclusion 13 Works cited 15 Overview of the scenario Foodborne illness disaster has considerable effect on the hospitality industry especially the restaurants, hotels and hospitals. These sectors have to deal with such disasters in ways that will help them in handling the issue and also maintaining the trust of their valuable customers. The present situation which is being encountered in our company is the outbreak of Salmonella. Salmonella has been the main risk factor in our restaurant business because the particles of this infectious disease are found in fresh fruits and vegetables and poultry and dairy items. In USA, it is believed that the food manufacturing/production industry is pervading the entire country. As most of the meetings with friends are accompanied by coffee or lunch, dinners with family is considered as the ideal time for bonding and meal times are considered sacred, all such activities revolve around the food. Therefore, it is embedded by US Food and Drug Administration (FDA) authority that significant care is given in the preparation and distribution of food items (Gomez-Aldapal, Ma.del Refugio, Angelica and Javier, 4). According to the Center for Disease Control and Prevention, more than 48 million individuals are suffering from foodborne illness on an annual basis and about 3000 of these infected people die (Chloe, 4). The major causes of foodborne illnesses are Salmonella and E. Coli in addition to other hazardous bacteria and germs. Despite the advancements in the technology, the foodborne illness is still persistent as an important dilemma especially in the beef. Thus, the US government has implemented various laws to make sure that the raw materials used in food preparation are contamination free. We have been running a restaurant in San Francisco, California in USA for many years and have established a distinguished brand name. The success of our business lies in our excellent quality of foods, clean and hygienic ambience and excellence in offering the customers a sensational dining experience. As food is the basic requirement of every human being and is also the main source of body’s nourishment, we give ultimate priority to our cuisine preparation and delivery procedures. Each step of every meal is carefully monitored so that no compromises are made regarding the health of our customers. In the last few years, the increasing number of Salmonella infected food supplies has caused some concern for us as it has affected our business to a great extent. Although we make sure that our ingredients are 100% healthy and clean but we have to demonstrate this aspect to our customers as well. We have started a campaign ‘get your meals prepared in front of you’ so that the customers can view our complete meal preparation process and be assured that they are provided a wholesome foodstuff. Our specialty is in fast-food products and Italian cuisine. Since our operations rely heavily on those ingredients which can be contaminated from Salmonella, we have to take utmost care in the preparation of our food and even give undue care to the customer’s health. Background of the restaurant The name of our restaurant is “Pure Indulgence” and we started our operations in San Francisco, California in 2003. Initially, we started our business on a small scale in the form of home delivery service in Mission District and a kiosk was set up in the Financial District to serve the tourists. After making our name in the market for five continuous years, we opened our small restaurant at an appropriate place in the Mission District. During our initial two years of operations, we served only fast food items and then successfully started offering Thai, Italian, Chinese, European and Asian cuisines. Once we started gaining popularity, we started our business near Union Square at the Financial District as it is the central hub for shopping malls and hotels. This place gave a boost to our flourishing restaurant and soon it became the leader in the fast-food and continental cuisine. The teenagers are our primary target market as they like the taste of our food items. After the outbreak of foodborne illness caused by E.Coli and Salmonella, we have revamped our operational procedures to avoid any kind of mistakes in our food cooking processes. Since we value the health of our customers, we try our best to offer the superior quality eating options to them so that they can give organic nutrition to their body and live a healthy and enjoyable life. Mission, vision and positioning statement As every business exists in the market with some purpose, the companies have to develop their mission and vision statements along with a well-crafted positioning statement which can provide them a clear sense of direction (Kotler and Kevin, 25). Since we aim to remain in this hospitality industry for long period, our company has created a set of concrete and concise mission and vision statements. With the help of these declarations, our employees are completely aware of our future direction and they give their best performance on their jobs. Vision Statement To successfully cater to the hygienic and exceptional quality food needs of the citizens of USA by giving the top most priority to our customer’s health. Mission Statement To lead the restaurant industry by offering the customers an array of healthy eating options. It is our responsibility to deliver the meals in a healthy and safe way so that the well being of our customers is enhanced. We make sure that all of our ingredients are free from any form of contamination and we comply with all the requirements as set out by US Food and Drug Administration (FDA). It is our priority to take care of the environment by implementing only eco-friendly operational procedures. We also adhere to the laws related to the protection of employees’ rights so that they are treated fairly. Positioning Statement In order to become the leader in the food industry of USA, it is vital to create a distinctive place in the market by offering the customers an exceptionally competent range of product and service offerings (Chloe, 10). Our company aspires to position it as the most reliable and trustworthy restaurant in San Francisco, California which is offering its customers the genuine and hygienic meals at affordable prices. Since gaining the customer’s top share of mind is a difficult task, our company has decided to acquire the leading place by developing cordial relationships with the customers. As our specialty is in the expert and competent menu and exclusivity of special ingredients used to enhance the customer’s taste, we will capitalize on our strength. We will make sure that we deliver consistent level of services to the customers so that positive associations are developed with our brand name. Whenever the word ‘Indulgence’ is coined, the name which should be prompted in the customer’s mind has to be ‘Pure Indulgence’. Till now, we have lucratively attained a competitive edge in our neighborhood. We will enhance our efforts to strengthen our presence by offering exciting and novel food items in our cuisines. Our long time customers are offered various attractive packages on special occasions so that they can cherish the incredible moments of their lives forever. Hospitality Industry The hospitality sector of USA especially in Chicago, Los Angeles, New York and San Francisco are indicating robust potential for further expansion and growth. The main drivers of exceptional performance are rise in the occupancy rate and average daily rate (ADR). It has been stated by Ernst & Young that US hotels have shown enhanced operating fundamentals as there has been widening of the upper tier lodging segment. There are stringent barriers of entrance, large scale and long period of hotel developments and less dependency on the third-party wholesalers in this particular segment (2). The hospitality industry has grown quickly in USA because of the expansion of travel and tourism industry. The international visitors contributed about $153 billion sales in the country’s total GDP. Out of the 25 subsectors of the industry, the restaurants had about 16% share in the total sales (Ernst & Young, 4). It shows that the restaurant industry plays an important role in the proliferation of the hospitality sector. Therefore, there are ample opportunities available for the players of the subsector as they can reap a large number of benefits in the coming years. Marketing Objectives In order to handle the Salmonella issue, our company aims to achieve the following marketing objectives with our strategic marketing plan: 1. To create awareness about the ways to lead a healthy and prosperous life by eating a well-balanced and nutritious diet. 2. To enhance the company’s image by undertaking a range of Public Relations (PR) activities. 3. To make effective use of social networking sites to get in direct contact with the consumers. Marketing Strategies for creating awareness As our company is directly associated with the hospitality industry, it is our responsibility to promote the concept of healthy lifestyle. Despite the need of eating well-prepared and hygienically cooked meals, it is crucial to live a balanced life. Although there is abundance of information available on various online sources but there is a necessity of providing appropriate information to consumers through face to face interactions or other interactive sources. There is even a misconception in the market that the restaurant food is contaminated especially the beef, poultry and dairy items. In order to show that our meals are truly hygienic and will not cause foodborne illness, our company will undertake following measures: 1. A documentary will be made about the meal preparation at our restaurant so that people can have a look at our procedures. This video will be shown on Televisions so that everyone can have an idea about the undue care which we take during meal preparation. 2. After every two months, seminars will be arranged on educating people to follow appropriate set of procedures for cooking at home so that they can be assured that the health of family members is safe and wholesome. With the help of these seminars, it will be communicated to the audience to take preventive measures before Salmonella or any other infectious disease can impact the healthiness of their loved ones. Marketing strategies for strengthening brand image After the outbreak of Salmonella, it has become imperative for our restaurant to show that we give importance to the quality of our supplies. We keep a track of our suppliers to make sure that they provide us with genuine, contamination free and organic items for our meals. In order to assure our customers that they will be offered only pure and nutritious meals suitable for their health, we will undertake a range of PR activities. We will organize the food festivals and arrange events in collaboration with various NGOs to demonstrate our willingness to make valuable contribution in the society. With the help of these initiatives, we will be able to create a positive image in the market that we care for our community and will do everything to support the government in combating the outbreak of this disease. On quarterly basis, the food festivals will be arranged in the Mission District and Financial District which will serve as a platform to interact with the customers. These events will allow the restaurant to revitalize its image of a caring and responsible brand in the hospitality industry. The entire event will be organized with the help of sponsors from the hospitality sector so that the leading players can make it evident that they are fighting against the foodborne illness disaster. Since this disaster has significant impact on the lives of people who are infected with the disease, it is the duty of the companies working in the hospitality industry to provide such patients some form of compensation. Although we will try our best to avoid any incidents but we need to address this issue by working together with the government and NGOs. In order to give sufficient amount of funds to these troublesome people, our company will organize various charity events in the form of strategic alliances so that the compensation amount is appropriate for the affected families. It is a known fact that the organizations which demonstrate their responsiveness to the needs of the society are appreciated by a large number of people and institutions. Therefore, we have decided to move ahead with such projects which will improve our image and will be beneficial both for our society and citizens at large. Marketing strategies for enhancing online presence As the world today as become digital based, it is imperative for every organization to be present on a wide array of online sources. The latest trend in the market is of the social media as majority of the people prefer to communicate with others on social networking sites rather than on telephone or other communication mediums. Our restaurant will first develop its pages on the leading social networking sites so that a resilient relationship is built with the consumers. On all of these networks, the members discuss on a range of topics on the discussion forums. These platforms are the main source of acquiring the customers’ attention and interacting with them on one-to-one basis. Since more than half of the country’s population is using this media, we will try to build solid relations with the customers so that they can trust us and we are able to deliver a consistent level of service to them. It will also help us in gaining insight about the customer’s perceptions related to recovery from the foodborne disaster illness. Similarly, it will allow us to get their feedback about our marketing efforts directed towards regaining their confidence. In order to foster and create a strategic marketing plan, it is crucial to get an understanding about the target market’s set of preferences towards resolving the foodborne illness disaster. With the help of this effective plan, it will be smoother for us to implement the right resources to resume our favorable position in the market as we have developed it carefully after getting the opinion of our valuable customers. Competitive Set Since our company is operating in the hospitality sector, it is facing intense competition both from direct and indirect competitors. In San Francisco, there are extensive number of restaurants which are popular among our customers. Each of these bistros has recognition in the market for any particular cuisine which it offers. The top rated restaurants in the region as identified by Gagliardi are listed below with their competitive edge: 1. Bar Tartine – Mexican cuisine 2. Aziza – Traditional Cal-Moroccan cuisine 3. Mission Chinese Food – Chinese cuisine 4. Nopalito – Mexican cuisine 5. SPQR – Italian cuisine 6. Rich Table – Californian cuisine 7. Namu Gaji – Korean-American cuisine 8. ICHI Sushi – Japanese cuisine Our key competitors in the fast food category are McDonald’s, KFC, Nando’s, Burger King, Hardees, Subway, Pizza Hut, Starbucks, Domino’s Pizza, Dunkin’ Donuts, Papa John’s and Dairy Queen. In order to attain a competitive edge, we strive hard to remain proactive in our approach so that we can present our customers with the most competitive set of choices in our offerings. However, our competitive set also comprises of the hotels, cafes and local restaurants which are offering the lodging facilities in addition to outstanding dining experiences. Despite such intense level of competition, our company has been prospering fruitfully because of the first-class and exceptionally high quality customer service. Since we give our customers the opportunity of getting involved in their meals’ preparation, it allows them to get the dish ready in front of them and have an enjoyable feeling when eating it. As Italian cuisine and fast food items are main domain of our expertise, we make sure that we keep on adding innovative dishes in our menu list so that we can present our customers with new experiences when they visit our location. Recently, we have started membership facility for our loyal and long time customers so that we can appreciate their trust and faithfulness with our restaurant. This step has enhanced the value of our business and has given us an edge over our competitors. SWOT Analysis Strengths 1. Leader in the fast food market 2. Enhanced and aesthetic service experience 3. Excellent financial performance 4. High quality meals 5. Superior quality ingredients which are hygienic 6. Strong internal quality control system Weaknesses 1. Located in one region of USA 2. Limited menu items 3. Insufficient space for serving customers 4. Lack of enhanced distribution network Opportunities 1. Expansion into other regions 2. Take-away and home delivery options 3. Partnership collaborations with top-ranked hotels 4. Initiate CSR activities Threats 1. Weakening economic scenario 2. Entrance of new competitors 3. Changes in the consumers’ tastes 4. Stringent legal requirements 5. Outbreak of foodborne illness 6. Unstable market conditions Strengths As our restaurant has been in the market for last ten years, we have been able to strengthen our internal business operations. In order to maintain our position in the market, we have focused our attention on three key areas i.e. quality of our offerings (both product and service), production processes and stakeholders. Since the food industry is getting competitive, the only way of succeeding is to present the customers with a wide array of dishes which are prepared in a highly controlled manner. We have developed a strong quality system so that the food items are inspected properly and the final product is free from any form of contamination. Likewise, we continuously diversify our offerings by introducing new and appealing servings of food which allow us to strengthen our market stance. In order to maintain superior quality of products and services, we have a good financial position. We even have adequate amount of finance available to spend on high priced ingredients so that no compromise is made on the quality. Hence, we are the leader in the food sector especially in the fast food category because of offering admirable experience of dining, outstanding quality of food, well-designed internal control system and resilient financial position. Weaknesses Despite all these positive attributes of our restaurant, there are certain drawbacks which are faced by us. First of all, we are present only in San Francisco. Although we are planning to move into other regions but it will require heavy amount of investment and we are not in a position to incur such heavy costs. Secondly, our menu items are limited and our customers are looking for a wide variety in all the cuisines. Since we are operating on a small scale, we have access to few suppliers and there is lack of a proper distribution network in our area. Even the size of our restaurants is small which allows us to serve only limited number of customers. On weekends, our bistro is crowded and we need to move into larger places for serving large number of visitors. Lastly, we need to implement the latest IT system for our operations management so that we can enhance the performance of our business. Opportunities In the hospitality industry, there is a wide range of choices available for the players to expand their operations. Currently, we have the options of expanding into other states and regions of USA, enter into partnership agreements with the leading hotels, implement various Corporate Social Responsibility (CSR) activities and start take-away and delivery services in other areas. As our restaurant is located in the busy areas of San Francisco, we can consider starting our delivery and take-away services throughout USA by gradually opening small outlets in various regions. Likewise, we can avail the opportunity of opening physical restaurants in specific regions of the country. Our company will get more involved in CSR activities especially in projects which will help in fighting the foodborne illness and help in creating an optimistic image in the market. As we have already decided about working with various NGOs to provide assistance to the infected people, it will allow us to make more valuable contribution in the country. Since cuisine is an important element of the hotels, we will start our exclusive services to the reputed hotels in San Francisco so that we can show our expertise to the foreign visitors at these amenities. Threats Since we are operating in a tough business environment, we are exposed to various challenges. As the economic recession has hampered the growth of the food industry, it has become crucial to offer affordable range of food items so that the basic necessity of nourishment is fulfilled. Likewise, as this industry appears to be lucrative, the competition can get intensified by the entrance of new competing restaurants. With the availability of a large variety of choices, the customers’ preferences differ a lot and it is important to monitor their demands so that they are proposed the best and compatible dishes. Even the market conditions are changing and there is instability in the industry due to fluctuations in prices of commodities, income and changing rules and regulations. Other key area of concern is the outbreak of any foodborne illness which can be hazardous both for our business and for our customers’ wellbeing. Hence, it is mandatory to remain prepared to handle the challenges as they are encountered by developing a contingency plan. Our restaurant has created such plan so that the dilemma is dealt appropriately. Marketing Budget In order to meet the marketing requirements, it is crucial to have sufficient resources allocated for them in the form of marketing budget (Kotler and Kevin, 150). In the local market, we are using radio and newspapers to publicize about our offerings. However, we are planning to open new branches in other cities of USA so that we can expand our business operations. We will also start advertising on Television so that we can reach a wider audience. We will also place advertisements on various social networking sites and other online platforms so that we can penetrate deeply in our market. In order to make sure that we have adequate amount of fund available for financing our marketing activities, the following marketing budget has been developed: Marketing Activities Amount Advertisement for Television / Documentary $350,000 Arranging Food Festivals (Four times in one year) $500,000 Organizing charitable events $1,000,000 Printing of posters for promotion of events $400,000 Volunteer compensation $100,000 Seminars (Six in one year) $1,200,000 Advertisements on Internet $500,000 Other miscellaneous marketing expenses $100,000 Total marketing expense $4,150,000 Conclusion Although the hospitality industry has to remain well-informed about the foodborne illness disasters which can impact its sales and ultimately revenues but it is important to work out a plan for recovering from the disaster so that the image is restored. In order to address the dilemma of Salmonella, our company has developed a genuine marketing plan so that the issue is handled properly. Our company has even allocated sufficient resources in terms of financial and marketing so that it can revitalize its image during the outbreak of this foodborne illness disaster. Works cited Chloe, Hawker. “The American Food Industry: An incubator for disaster.” Triplehelixblog.com. Triple Helix Online, 2 April 2012. Web. 27 November 2013. Ernst & Young. “Global hospitality insights: Top thoughts for 2013.” Ey.com. EYGM Ltd., 2012. Web. 27 November 2013. Galigardi, Marcia. “Top 10 restaurants in San Francisco.” Theguardian.com. Guardian News and Media Ltd., 25 May 2013. Web. 27 November 2013. Gomez-Aldapal, Carlos Alberto, Ma.del Refugio Torres-Vitela, Angelica Villarruel-Lopez and Javier Castro-Rosas. “The role of foods in Salmonella Infections.” Intechnopen.com. InTech, 2012. Web. 27 November 2013. Kotler, Phillip and Kevin Keller. Marketing Management. 14th ed. New Jersey: Pearson Education, 2012. Print. Read More