Barza Caf: Marketing Plan - Essay Example

Barza Café: Marketing Plan Name Institution Date The Business Business overview Barza café is an Emirati traditional café. Barza café will be a partnership with Jumaa Al Khoori, Abu Baker Al Khoori and Saleh Al Khoori. Barza café will be one of a kind in Abu Dhabi and the UAE. Our unique services will be: 24 hour opining. Amazing atmospheric themed barza. Customized decorations. Internet access availability. Old traditional songs related to each barza. Party section. Section for families. Special costumes for the waiters. Traditional food, sweets and drinks (each barza will have its special menu). Traditional free cinema (old movies from the gulf). Our café will be located on the water breaker opposite to Al Marina Mall, our food will be homemade were we will be associated with some local ladies whom they have their own home business in cooking for special occasions. Our staffs come from a variety of international backgrounds such as Philippine, Iran and Egypt. Our customers will be from the public from both genders, our goal to attract more people. We are hoping to expand for other branches in Dubai and other cities. Barza café will be the number one choice for those looking for the traditional modernized atmosphere. Our targets are to: Attract more clients. Gain 500,000 in funding to develop our business. Generate a profit of 150,000 AED in our first year of business. Barza café will be one of a kind in the city of Abu Dhabi by providing the best service, traditional feeling and not to forget the best traditional food ever. S.W.O.T. Analysis Strengths Weaknesses 1. Demand for dining out is allied to the ever-spending alternatives available, as well as with the number one reason most customers utilise food cafes; they offer a convenient, reasonably priced experience that provides better flavours and taste sensations as compared to what customers can get at home. 2. In regard to technology availability, the Dubai market is highly competitive with several products and brands provided at reasonable prices and this will allow Barza café the luxury of selecting the type of technology that best suits their operations. 1. The rising costs of imported food ingredients lead to increase in production costs. 2. In terms of equipment, food chain owners designate numerous problems that should be handled by the present local sources of food cafe equipment. Opportunities Threats 1. The population to which Barza café is going to serve is largely made up of individuals with higher disposable incomes who are more likely to experiment with different types of traditional foods. 2. Brand loyalty is specifically strong within the traditional food subsector of the food industry. Dubai population remain loyal to the traditional foods and drinks regardless of price increases. 1. There is overwhelming number of food outlets within the area and hence these outlets pose serious competition for Barza café. 2. A fundamental limitation of food industry is that food business entails perishable goods which have to be disposed off at the earliest possible time. 3. Food sales depend on the level of economic activity and real income of local residents and visitors. Times of high inflation lower the household income and also the budget for ‘eating out’. S.W.O.T.Response S.W.O.T weakness/ threat Activity to address weakness/threat Activity completion date 1. High cost of ingredients Increase market share by offering substantial discounts Throughout 2. Perishable goods Inventory management is key to balancing raw material demand and supply February 2012 Products/services Barza café is a café venue that sells fairly-priced food. The venue features 24 hour opining, amazing atmospheric themed barza, customized decorations, internet access availability, old traditional songs related to each barza, traditional free cinema, party section, section for families, special costumes for the waiters and more importantly traditional food, sweets and drinks where each barza will have its special menu (Mike, 2010). Luncheon offering include takeaway and dine-in menu selections, whereas evening hours will accommodate full-service as well as appetizers, full-service bar, weekend, and live entertainment. Demonstrating a target position market, a narrow selection of out-of-town newspapers, in addition to art, cinema, design and lifestyle magazines will be sold. In addition, the venue will feature art and products made by various artists, offering a cross-selling opportunity (Mike, 2010). Products/services Product/Service Description Price Traditional free cinema Old movies from the gulf Free Traditional food Homemade food $45 per plate Traditional drinks Homemade drinks $30 per glass Party section It will involve old traditional songs related to each barza $100 per session Market Position We will be required to target our audience early and regularly. Whereas the business is located within a central and accessible location, several individuals will have to be re-introduced to the vicinity surrounding the Al Marina Mall. Unique Selling Position Our café offers affordable and accessible menu items and entertainment as measured by their essentially natural value, at a reasonably priced cost that will promote regular visits. Therefore, our value position is quite clear and easily differentiated from other cafes within the market. Anticipated demand Pricing Strategy Barza café’s foods, drinks and entertainment varieties are priced to give the business an attractive margin and still offer value to the customers. This pricing strategy will enable us to have a repeat business. We are also aiming at ensuring that the experience remains fresh. This is the reason why the food, drinks and entertainment scheduling will be reasonably flexible (Skamris, 2008). Value to Customer Our products and services are necessities and luxuries at the same time. Food products include the necessities while the drinks and entertainment service are luxuries. Therefore our products ought to be of high quality and value. All staff members will be civil, efficient and attentive as well. Growth Potential Traditional food consumption has illustrated steady growth rate within Dubai over the last decade at 25% growth. The support of homemade foods and discouragements from taking fast foods is very conducive for the consumption of traditional foods. It is expected that the area residents are in favour of well-prepared traditional food, which they can consumed within a relaxing environment. Sales/marketing personnel Job Title Name Responsibilities Marketing/ Sales Manager Mr Chris Brantley 1. Manage the hiring, training, and performance evaluations of marketing and sales personnel. 2. Develop pricing strategies, balancing firm objectives as well as customer satisfaction. 3. Identify, develop, and evaluate marketing strategy. 4. Plan, direct and manage marketing activities and policies to promote products and services, Sales Representative Cube Roomy 1. Promote the products and service offered at Barza café to the potential customers. Advertising and promotion manager Donald Longman 1. Managing the marketing of products and service to prospects, customers and others The Future Vision statement For our most significant target market, local neighbourhoods who desire new as well as classy and unique dining and entertainment options, Barza café satisfies the need for a relaxed, all-in-one dining and entertainment experience. Unlike our main competitors, Barza café is designed to handle this need from its inauguration, beginning with the all-purpose creation of the facility. The wide-ranging food and drinks programming, together with the entertainment programming, will provide the customers with a unique experience, nothing like anything they have presently available (Thomson, 2010). Mission statement Barza café will make its best effort to develop a special place where customers can interact comfortably and in a relaxing environment while enjoying traditional food, sweets and drinks in town. We will be in the business of assisting our customers to ease their daily stress through great ambience, convenient location, and friendly customer service in addition to products of constantly high quality. Barza café will invest its profits to increase the employee satisfaction and at the same time provide stable return to its shareholders (Bplans, 2012). Goals/objectives 1. Sales approaching and exceeding 1.5 million AED by the end of the first year 2. Targeting and sustaining a net profit of at least 14% by the second year 3. To grow monthly sales to reach 167, 000 AED by the end of the fifth month of operation, as well 220,000 AED monthly by the end of the first year of operation. The Market The Barza café will appeal Dubai professional living within the targeted in-town neighbourhoods, the numerous downtown hotel visitor as well as employees who like a refined but still casual eating entertainment experience. In addition, the business will fulfil an under-served need for a pedestrian-friendly dining business for the several residents within the neighbourhoods, in particular newcomers to the immediate vicinity. Members of this market segment dine out often, just about four times or more weekly. The market segment largely consists of people aged between 35 years to 55 years, married couples within the same age bracket, tourists as well as conventioneers (Ramsey, & Stephen, 2009). Our customer’s dining and entertainment requirements are crucial to the success of the Barza café. As the provider of full-service dining and entertainment experience, Barza café should appeal to individuals who are interested in integrating our variety of traditional foods often into their food purchase experiences. Furthermore, we ought to appeal to the customers who often take advantage of Dubai’s dining and evening entertainment scene (Jeremy, 2011). Our customers are learned and interested in involve themselves in new experiences. Maintaining “fresh” menu and entertainments offering will be a continuous challenge to our business. Fragments of the target market tend to eat out, visit cafes and visit evening entertainment joint regularly. They have a tendency of choosing comfortable, reasonably priced venues, and repeat appearance at venues offering well-known scenery with new twists (Jeremy, 2011). The Competitors The Barza café’s closest competitors include Ras Al Khaimah café, among others. These cafes feature reasonably likewise priced menus in addition to menu offering with a notable traditional influence. Their décor and offerings strike evenly between downscale casual and upscale casual. None of these cafes provide a traditional café atmosphere or live traditional entertainment. Relative to the location of these cafes, Barza café is centrally geographically positioned. Its site will easily enable patrons from these other cafes to finish an evening with drinks and entertainments (Mike, 2010). Competitor Details Competitor Established date Size Market share (%) Value to customers Strengths Weaknesses Ras Al Khaimah café 2002 [Number of staff and/or turnover] 30% Convenience, quality, price or service Popular among the area residents, economies of scales, customer loyalty Offers general products and services Poor promotion strategies Yin Yang Cafe 2005 20% High quality products and services Customer loyalty, brand loyalty Poor promotion strategies Kaya Cafe 2005 14% High quality products and services Unique products & services, Demand high Inadequate personnel, Poor promotion strategies Cafe Diem 2008 6% Affordable prices Demand high, Unique products and service Poor promotion strategies, Offers general products and services Bagel Cafe 2010 4% Affordable prices Customer loyalty Weak distribution channels Market Research Questionnaires were used in collecting the information about the market. After the defining the objectives of the survey and establishing the sampling group, questionnaires were written and were the randomly given to various customers with the area. In addition, more information regarding the market of traditional food and drinks in the areas was collected through the internet by searching the information from the websites of the already established traditional food joints. Market Targets The Barza café will appeal Dubai professional living within the targeted in-town neighbourhoods, the numerous downtown hotel visitor as well as employees who like a refined but still casual eating entertainment experience. In addition, the business will fulfil an under-served need for a pedestrian-friendly dining business for the several residents within the neighbourhoods, in particular newcomers to the immediate vicinity. Members of this market segment dine out often, just about four times or more weekly. The market segment largely consists of people aged between 35 years to 55 years, married couples within the same age bracket, tourists as well as conventioneers (Ramsey, & Stephen, 2009). Environmental/industry analysis The Barza café will appeal Dubai professional living within the targeted in-town neighbourhoods, the numerous downtown hotel visitor as well as employees who like a refined but still casual eating entertainment experience. In addition, the business will fulfil an under-served need for a pedestrian-friendly dining business for the several residents within the neighbourhoods, in particular newcomers to the immediate vicinity. Members of this market segment dine out often, just about four times or more weekly. The market segment largely consists of people aged between 35 years to 55 years, married couples within the same age bracket, tourists as well as conventioneers (Ramsey, & Stephen, 2009). Marketing strategy The most essential aspect of the marketing strategy is offering quality products and services. Barza café’s food, beverages and entertainment products ought to first sell themselves through the word of mouth. Then, the packaging of Barza café’s concept as well as external messages should fit the Barza café’s positioning. Barza café offers upscale feel without the customers having to pay a lot for that. This will then be communicated via weekly media, radio advertisement about specific music shows and traditional music shows sponsorships. By developing relationships with the caretakers of the local hotels along with visitor’s agencies within the city, it will be possible to establish and develop opportunities for visitors to Dubai to look forward to experiencing The Barza café (Joseph, et.al, 2006). Marketing activity/milestone Person responsible Date of expected completion Cost ($) Success indicator Print advertising, Mail-out, Media release Advertising and promotion manager 1st February, 2012 $4,500 Presence of cafe’s adverts in the media Online advertising, website, blog/social networking Advertising and promotion manager 1st March, 2012 $4,000 Completion of the cafe’s website Branding and artwork Marketing/ Sales Manager 31st January, 2012 $3,000 Barza café’s brand name and trademark Public relations Marketing/ Sales Manager 31st January, 2012 $2,000 Established relationship between the firm and the public Advertising and promotional strategy The company name and label will be promoted nearly more than the product itself, since for the business to be successful; it should stand for brand-name integrity, outstanding menu offerings, in addition to excellent entertainment and fun. For that reason, Barza café’s promotion strategy consists of focusing on events and messages matching: Barza café’s participation within the traditional music shows’ special promotions and traditional cinemas. This is vital since these are the events that will bring the targeted market together. Barza café’s participation within local radio and in particular targeted traditional shows on the local stations. Public relations programs centering on allied openings, guest appearances on the local radio and such. Advertisements placed with awareness, in mostly popular channels (Joseph, et.al, 2006). Planned promotion /advertising type Promotional strategy Expected business improvement Cost ($) Target date Events: Music show and cinemas Promoting the cafe and its label Events will bring targeted market together $1500 2nd February 2012 Local radio advertisements Promoting the cafe’s products The targeted group will be reaching hence attracting new customers $2000 1st March 2012 Public relations programs The programs will centre on allied openings, guest appearances on the local radio and such Popularise the business (Barza café) $2,000 5th, 10th. 15th, 25th February 2012 Advertisements in popular TV channels Promoting the cafe, its label and its products Create awareness among the public regarding the business $2,500 1st March 2012 Sales Strategy The first grouping of our sales strategy is to set up and retain a position with our principal constituents. We will rely of satisfying and keeping these people pleased with our foods and beverages and entertainment options as well (Rachel, 2012). The second strategy is to make use of convention business through development and maintenance of close relationships with those involved in the planning upcoming conferences and their respective attendees with the aim of establishing a “private function” alternative for firms visiting Dubai during the early part of the week in addition to promoting individual visits by those attending the conventions later, within the week. This strategy will also aim the numerous hotel caretakers who can avail themselves to promote dining alternative situated near the hotel venues. The third strategy is targeting more than 500,000 visitors visiting Dubai for shopping as well as camel race events. This fragment provides mostly lunch business. Finally, the café will target downtown and midtown business for standard business and dinner entertainment (Rachel, 2012). Sales and distribution channels Channel type Products/services Percentage of sales (%) Distribution strategy Shopfront Food and drinks, special costumes for waiters, decorations 90% This distribution channel is fast for perishables. The strategy behind using this channel is distributing the products faster to the customers. Internet Old movies, songs 80% This distribution channel reaches a big audience interested in movies and songs. The strategy behind using this channel is reaching a big number of people who would be interested in buying the products at the cafe. Wholesale Special costumes for waiters, decorations 80% This distribution channel is appropriate for distributing the products to many people and far localities. The strategy for using this channel is reaching the audience even if far areas and making them know about Barza café. The finances The price Product/Service Description Price Traditional free cinema Old movies from the gulf Free Traditional food Homemade food $45 per plate Traditional drinks Homemade drinks $30 per glass Party section It will involve old traditional songs related to each barza $100 per session Expected sales The sales forecast presume that there will be no change in regard to cost of prices; it is a realistic presumption for the most recent years. The sales are expected to increase from 2 million AED at the end of 2012 to 2.5 million AED by the end of 0f 2014. The growth forecast corresponds with the sales growth of cafes within the area and is also tied to estimated population growth of the immediate vicinity. The sales figures assume a standard of 2.5 ‘turns’ daily for a 150 set dining room having a standard tab of 12.54 AED. The business will be in operation for a standard of 26 days monthly. Expected sales Year Year 1 Year 2 Year 3 Sales 2,186,601 AED 2,351,541 AED 2,573,024 AED (Buhl, et.al, 2005). Marketing budget [2012] Monitoring/measurement activities Marketing activity Date of review Monitoring methods Review outcomes Print advertising, media release, events, mail-out, giveaway June 2011 Customer Surveys There was sales’ increase following promotion. There were about fifty repeat customers and more than 100 new customers to the cafe Website, blog/social networking, June 2011 Peer Review There were more than 10,000 clicks on our website so approximately 10,000 visited the website Public relations, branding and artwork, or publications and catalogues. June 2011 Customer Surveys Customer surveys revealed that the customers were satisfied with the products and services being offered at Barza café. Supporting Documentation Workers’ salaries Position Salary General Manager 60,900 AED Chef 55,000 AED Line Cook 48,000 AED Senior Server 30,560 AED + Tips Bartenders 12 AED/Hour Servers 8 AED/Hour + Tips Dishwashers 11 AED/Hour References Buhl, L, et.al. (2005). "How (In) accurate Are Demand Forecasts in Public Works Projects. Journal of the American Planning. Vol. 71/2. Bplans. (2012). Used Book Store Business Plan. . Retrieved on 20th January 2012. Jeremy, R. (2011). Start a Coffee Shop. < http://explorestartups.com/2009/06/start-a-coffee-shop/>. Retrieved on 20th January 2012. Joseph, A, et.al. (2006). The complete book of business plans: simple steps to writing powerful business plans. Florida: Sourcebooks, Inc. . Retrieved on 20th January 2012. Linda, S. (2008). Anatomy of a Business Plan: a Step-by-Step Guide to Building a Business and Securing Your Company’s Future. Chicago: Dearborn Trade. Mike, M. (2010). How to Write a Business Plan. London: Nolo. http://books.google.co.ke/books?id=UGEHCWzVnPUC&pg=PA197&dq=books+on+bus iness+plans&hl=sw&sa=X&ei=_AZT7zRCMueOty1magL&ved=0CF0Q6AEwBw#v=on epage&q=books%20on%20business%20plans&f=false. Retrieved on 20th January 2012. Rachel, M. (2012). Marketing & Communication Objectives for a Coffee Shop. < http://www.ehow.com/info_8135388_marketing-communication-objectives-coffee shop.html? utm_source=rcp&utm_medium=test22>. Retrieved on 20th January 2012. Ramsey, D, & Stephen, W. (2009). The Everything Business Plan Book with CD: All You Need to Succeed in a New Or Growing Business. London: Everything Books. . Retrieved on 20th January 2012. Skamris, H. (2008)."Underestimating Costs in Public Works Projects: Error or Lie. Journal of the American Planning Association. Vol. 68/ 3. Thomson, M. (2010). Now, Build a Great Business: 7 Ways to Maximize Your Profits in Any Market. New York: MACOM Div American Mgmt Assn. . Retrieved on 20th January 2012. Glossary Channel – a way of delivering something to its destination, whether it is a message to be communicated or a physical product to be delivered. Contract – a legally enforceable agreement made between two or more parties. A contract may be a verbal contract or a written contract (or may be partly verbal and partly written). Demographics – the characteristics of a segment of the population, e.g. customers. Domain name – a name that identifies an organisation's address on the internet, either a website address (the domain name follows the 'www') or an email address (the domain name follows the '@' symbol in the email address). High-end – usually refers to expensive or high quality products/services. Market position – refers to the position an organisation, product or service has in the market, usually in relation to its competition. Milestone – a goal or objective with a target date. Mission statement – is a statement outlining how an organisation intends on achieving its vision. Unique selling position – a characteristic of a business or a product/service that sets it apart from the competition. Vision statement – an inspiring statement that expresses an organisation's main ambitions/goals. Read More