Marketing Plan for a New Product of Comfy Restaurant - Coursework Example

Contents Contents Introduction SWOT Analysis 4 Segmentation, Targeting and Positioning 5 Marketing strategy 7 Ethical Dilemma 10 Reference list 12 Introduction For a number of years, Comfy restaurant has been flourishing in the city with excellent products and services. Its distinct structure has been a centre of attraction to many customers with many of them moving in and endlessly. Comfy restaurant is made glass walls with glass roof and floors. This has made the restaurant excellently unique and attractive. Through the glass floors is the kitchen with modern cooking equipment. Interestingly, the restaurant has automated customer service with iPads and phone tablets fixed on the tables and the dining rooms. The restaurant, therefore, has very few mobile waiters except those serving the customers. Customers place their orders on the tablets and they are served instantly. Mission statement Comfy restaurant aims at providing excellent and affordable food and hospitality service to low and middle earners within the city. The restaurant strives to provide a variety of services to its customers without discrimination of any form. The business will provide an inclusive service with modern service, conference rooms and recreational services for the young and the elderly. It will also provide door step delivery to esteemed customers who purchase the product in bulk or loyal to the business. Most of these are the learning institutions and the hospitals within the city. Marketing research Comfy restaurant intends to conduct an extensive market research market its new products. Since the restaurant has been operational for a number of years, both primary and secondary data is used. Because of insufficient resources and low participant count, the organization will use more of secondary data than primary data. Nevertheless, the organization will source bits primary data from the already existing customers. These are focused groups as learning institutions and hospitals. They will be issued with questionnaires in which their opinions about the new product will be put into consideration. In some occasions, the organization will send its representatives to various customers to interview them extensively how to make sound marketing decisions. Similarly, the organization will source its secondary data from the existing information. Through this research, the organization will be in a better position to weigh out the positive and the negative information and the most credible information. Secondary sources from the restaurant’s website and the database will be used mostly (Westwood). This is because it gives an in-depth analysis of previous performance, the current position and possibly the trend in the future. The anticipated market for a new product can be easily determined by analyzing the company’s databases. Nevertheless, the organization will search for information from the internet especially those from the successful hospitality industries. The marketing information of the successful industries shapes the growing industries. Even if the organization has established, external information adds value to the organization’s marketing strategies (William Pride). Lastly, the organization will subscribe for monthly journals and business magazines. These materials contain very useful business information that the business organizations cannot afford to miss. In reaching out to other customers, Comfy restaurant will publish its products and services in those businesses. The feedback from the customers will be used to upgrade the products. External environment analysis (CREST) The analysis of the external environment is a noble idea that the restaurant should put into consideration. This is the only source of information the organization may get about its competition and sustainability in the market. These factors influence the performance of the organization, though they are out of its operation and control. External environmental change may either influence directly or indirectly the operation, but the organization cannot alter them. For instance, Cultural diversity of the business should be considered. An understanding of the culture of the people will help the business respect them and produce products and services that dignify their culture. Comfy restaurant should know their cultural affiliation of the customers. Customers whose cultural beliefs forbid certain foods should be treated with dignity and respect and prepared what they value. Religious aspect cannot be left behind too. Comfy, just like any other hospitality industry, should offer products and services that attract customers from diverse religious backgrounds. The management should understand well the religious afflictions, their likes and dislikes and what their religious doctrines say. The economic and social status of the customers contributes to the external environment. These factors influence the purchasing power of the products. The low income customers prefer moderate products and services that they can afford. Such groups do not need special treatment because of their economic status. Consequently, these groups will fall into their social class. On the other hand, high income customers need special treatment and correspondingly special diet. These groups also belong to their own social class (William Pride). The technological advancements shape the operations of the business. The business should embrace these changes to remain competitive in the market. The introduction of iPads and tablets is an example of the progress that Comfy restaurant has done. This makes the operation efficient and effective thus maintaining customer satisfaction. Analyzing the external environment regularly helps the business develop and maintain a competitive advantage. SWOT Analysis Strengths Comfy restaurant has a number of marketing strengths. These are: i. Technical skills of the proprietors ii. committed staff iii. Full consensus among the proprietors on their objectives iv. Stable financial resources v. Good contact networks of for potential suppliers, clients, and tradespersons vi. Capacity to respond quickly towards the needs market vii. Business location is very appropriate to the target market Weaknesses i. Insufficient management skills ii. Limited size of showroom premises iii. No consistent track records for the business iv. Inadequate equipment v. No development and research facilities vi. The managers have no guarantee security to raise finance for future growth Opportunities a) Comfy restaurant have identified the following opportunities in the market. b) Fast growing market due to high demand of quality dining services c) Bad reputation of the existing hospitality industries in the area d) Increase in the number of high income people within the target population e) Readily available casual staff and customers f) Increased disposable income within the market g) High chances of future expansion of the business into other towns h) Readily available sources of information from the internet Threats. There is need for Comfy restaurant to be aware of the following threats and try to overcome them: i. Possible harsh government policies ii. Possibility of economic crisis iii. High possibility of competitors in the same industry iv. Increasing costs of running the business v. Diversity in the geographical market vi. Hardship in acquiring and maintaining reliable customers and staff vii. Bad reputation of the business especially in the areas of reliability and quality Segmentation, Targeting and Positioning Comfy restaurant has a wide range of customers that it targets to reach when it has stabilized in its operations. Since it is the hospitality industry, it will provide different products and services. These will determine its target market. The restaurant targets big institutions like hospitals and schools to buy from the business. These will be the largest target groups since they have several people working. In schools, for instance, teachers and the subordinate staff are the full potential clients. These customers like classy places where they can take refreshments and enjoy themselves after their duties. Although pupils are potential customers, most of them are not anticipated. Hospital holds the greatest population in the region with no meals provided except for the patients. These people need restaurant nearby to relief themselves. The general members of the public are also targeted due to their high capacity to purchase from classy restaurants. Segmentation Bases For Comfy restaurant to successfully implement its market segmentation strategy, it has to make use of relevant research techniques so as to find out patterns of similarity amongst its preference customers in the market (Westwood). Essentially, customer preferences fall into different clusters basing on the identifiable characteristics of the population. Market segmentation is a requirement for Comfy to meet so as to remain competitive. Effective and creative market segmentation leads to the establishment of the new products whereas poor segmentation may consume a lot of money and yield nothing fruitful. Comfy restaurant will establish four main segmentation bases viz: Demographic basing on their age, sex, income, migration patterns, and mortality rates, family size, ethnicity, education, occupation, family life cycle, religion and social class. Comfy restaurant has customers in this segment. However, the business is very much interested with customers with a stable source of income who are able to purchase the products and use the services comfortably. Although other demographic factors are equally influential, income will determine the most appropriate market structure. Luckily, the target market for business is the average people who are the majority in the region. Geographic which include Climate, terrain, population density, sub-cultural values etc There has not been a great influence of the geographic factors on the market of the business products and services. Nevertheless, there have been cultural diversities for some customers. Inversely, these are the minority in the region and they have little influence on the market share. Psychographic - personality characteristics, lifestyles and motives Change in lifestyle has influenced the performance of most industries, including hospitality. This group of people has embraced technological advancements to satisfy their needs. The majority of this group is the youth and the middle aged. They like modernization and anything that is related to. Although comfy has embraced technology in its operation, these people are many but they are not self-reliant. They mostly depend on the elderly, hence they form small portion of the market share. The few who are self reliant shall be treated with dignity to attract more customers. Behaviorist Variables - Regular users, potential users, nonusers Heavy/moderate/light users These are the frequent visitors to the business. They buy more often and use the business facilities. The business owes them special treatment because of their loyalty. However, they are a small number. The organization shall treat them well by giving them trade discounts and other after sales services. The entire segmentation process shall narrow down the universe under study to specific markets. This is because specific needs of a particular segment would have been identified hence easy to meet them. It will be easy to get a response from each segment thus making customer service more effective. If Comfy restaurants identify the correct segment, the outcome will be most fruitful. Consequently, the business will have an easy task of selecting other segments that will yield more profits. Most importantly, the businesses own strategy will play a critical role in segmentation. The choice of demographic variable, for instance, the middle class people, may prompt the business to make use of its potentials better and select the segment that will bring the largest profits. Positioning statement For middle class customers who enjoy quality foods, Comfy Restaurant is the only classy restaurant in the city that offers automated self-service among all hospitality industries because it offers excellent dining facilities, affordable food prices, entertainment and recreational services all under one stop. Marketing strategy Product Comfy restaurant has been doing well for a couple of years with its products gaining favor with the rising customer demands. As a result that, the restaurant has introduced the new face of its structure: a new restaurant structure made of glassy walls with floors. This is one of the latest designs in the market with excellent modern facilities fixed on them. Customers walk along the glassy corridors to shinny surfaces. This facility has automated iPads and tablets on the dining tables to facilitate customer service. The restaurant is located in a busy central business district with a lot of customers for easy convenience. This glassy model has been designed to differentiate with other common industries. The customers will be persuaded to use the facility because of its exceptional services. Its permanence shows how it will stand the ages to serve customers even in the decades to come. As the restaurant ventures into the market, it will introduce new products. One of it is the mini crème eggs which have been a favorite for many people. The mini crème egg is a product of Cadbury Company, but it is taken with other foods. This makes the product new in the market since it is sold big supermarkets and leading hotels. As the product is new, the customers are expected to adopt it very quickly. Pricing Comfy’s marketing objective is to provide successful prices that attract and retains more customers. The industry has chosen this objective because it intends to expand its operations by attracting many customers. Comfy will offer $ 25 for all meals unless on special orders. This is opposed to the other competitors that offer $ 35 for all the meals excluding special orders. However, for the season pass holders, Comfy restaurant will offer an automatic 15% discount on all the served meals and the merchandise by presenting their festive season passes at point of sale. Coupons and vouchers may be redeemed to convenient all the customers. Apart from the perks like free tickets on selected days, free special events as well as season pass holders for the youth, the business will also offer a 10% discount for all the nightclubs to promote its operation. These prices will be determined by the market conditions and the competitors. For all the products and services provided, prices will be slightly lower than for the competitors. If, for instance, the market price for mini crème eggs is $12, the company will quote $10 without compromising its quality and quantity. This will ensure that customers are enticed to use the products. In the past, most of the competitors have been opportunistic by escalating their prices. Most of the customers have been complaining due to high prices of the basic needs that they cannot avoid, thus forcing them to buy. Comfy restaurant will, therefore, subsidize its prices to accommodate them. Place Comfy restaurant will be situated at the business streets of the city, opposite the main stage. This is the most appropriate location for the customer premises. However, several other branches shall be opened in various places but centrally managed. In its operation, the company will distribute the product in various places where customers use it. Foods are perishable and go bad easily. Mini crème, to be specific, lasts only three days when exposed before it expires. This means that the business will have few distribution channels to reduce the time taken to reach the final consumer. However, there will be distributors within the town to dispatch the product to the final consumers. Because of high perish-ability of the product, the distributors will sell either directly to the final consumers or either the retailers or the wholesalers. Conversely, B2B will be discounted better than B2C. There will be other distribution channels to facilitate easy delivery of the product. It will hire motorbikes and pick-ups to distribute the products throughout the metropolitan malls within the city. These automobiles will help the company reach the customers in various demographics that mould not otherwise use the product. Large institutions like hospitals and schools will be made as the main distributors. This is because they house many customers who use the product mostly and they cannot afford to miss at any given time. The aim of facilitating all the possible distribution channels is to ensure increased volume of sales. In all the distribution stations, fridges will be installed that the products remain fresh for health reasons. By the time the customers get the products, they are good for human consumption. Promotion The goal of the Comfy restaurant is to attract as many customers as possible to use and reuse the business products and services. To achieve this goal, the businesses will carry out an extensive promotion. With the most exciting attractions offered, the restaurant will engage several people through various promotions. To facilitate effective promotion, Comfy will employ the following promotion techniques: public relations, packaging and personal selling, advertising and after-sale services. To begin with, the business will carry out sales promotions where the customers will get free samples anytime they buy the products (Wong). For instance, in all the public holidays, the visitors will get free samples for the products they buy worth above $50. These days will be marked as “FREEdom” as the customers get free services. This will make all the public holidays the most exciting for all the customers. During the weekends, especially when the schools are closed and most children are at home, the restaurant will conduct personal selling to door steps of the potential customers. During this time, salespersons will carry the products around the city residential areas and other commercial premises. The customers will be introduced to the products, and they will purchase at a subsidized price. All the salespersons will wear the uniforms bearing the company logo/batch. The climax of the Comfy promotional activities will be on the December holidays, where most people are relaxed and free from duties. The company will organize for Big Bash party where people will come to enjoy themselves. It will be priced at $30 per head. As opposed to the other competitors, it will be lenient to all customers. Although promotion is good for marketing, the restaurant may face the following challenges: The business may lose more than it gains during the promotion Integrity of the salespersons may be questioned. It may be too expensive Decreased value It may fail to work Ethical Dilemma Comfy restaurant will have a lot of challenges in making operational decisions of the business. Since the business is expected to pick up soon after inception, the managers will have a challenge in hiring competent employees to work in various departments. The managers are mandated to hire, fire and promote employees accordingly. According to Choffray and Gary, it is very important for the managers to carry out these processes ethically. In most cases, the human resource managers make shady decisions; they are not ready to undergo an objective ranking process of the desired candidates. Instead, they relay personal bias. To avoid this bias in business, the managers should employ a morally upright human resource manager. The challenge now comes: how do the managers of Comfy come into conclusion that this is the best HR manager? Choosing the best manager may not be easy, but basing on their qualifications and experience may be easy. The society expects the business to give back to them by employing its residents. By all means, there should be equality to reflect a good image for the business. Alternatively, the managers/stakeholders may supervise the operations of the human resource departments to ensure quality service. Reference list Choffray, Marie Jean and Lilien L Gary. Market Planning for New Industrial Products. the University of California: Wiley, 2000. Kevin, Clancy J, Krieg C Peter and McGarry Marianne. Market New Products Successfully. NY: Lexington Books, 2006. Westwood, John. The Marketing Plan Workbook. Kogan Page, 2005. William Pride, Ferrell. Marketing. NY: Cengage Learning, 2008. Wong, Ken. Approved Marketing Plans for New Products and Services. London: iUniverse, 2010. Read More