Table of Contents
Mission Statement and Objectives. 9
Price and Products Analysis 10
Distribution, Location, name and Floor Plan. 12
Marketing Communications Plan. 13
Tina’s Restaurant
SWOT Analysis
Strengths |
Weaknesses |
Healthy choice Differentiated menu Finances Experienced Management Affordable Prices Excellent location Culture |
Higher Operating Costs Small Market Share Competition |
Opportunities |
Threats |
Expanding market Positioning Menu |
Substitutes Weather competitors |
Strengths
- Healthy choice- In the society today, there is an increasing market that best suits the fitness sector which is rapidly influencing the public on making healthy meals options (Bittman, 2013). As individuals’ are becoming highly mindful on what they consume this offers businesses like our restaurant the opportunity to assist consumers in making not just healthy options but also a potent chance to grow revenue generation with the expanding consumer markets. Based on recent research individuals are becoming more mindful of the surrounding and the organic focus is one that fits this preferences.
- Differentiated menu- Despite the growing demand for more organic foods it has been established that most food companies are focusing on providing rather contemporary meals. The company, therefore, has the opportunity to participate in offering unique menu one that is not offered by many.
- Finances- After the win of 286,000 dollars it is apparent that the business has adequate starting capital. This will facilitate the smooth running of the business before steadiness is acquired as well as in facilitating marketing operations.
- Experienced Management – Management is an essential aspect of ruling a business effectively based on the dynamic and complex of contemporary business. The management will not only be handled with an experienced but also a skillful group. With the increasing need for business innovation, this group will not only help in the acquisition of a competitive edge within the market but also create a sustainable competitive position.
- Affordable Prices - In the market today consumers are not only interested in the quality of products but they also consider the associated cost. Affordable prices accompanied by quality will, therefore, seek to trigger the interest of more consumers.
- Excellent Location – Downtown Core-South London offers an excellent position for creating a positive brand image within the restaurant industry which is occupied by well-established corporations. The location has an increasing preference for healthy choices based on the changes of lifestyle, particularly in the cities.
- Culture – London has the largest diverse populace nationally (Hill, 2015). The provision of organic meals will give individuals the opportunity of experiencing a diversified menu that incorporates ingredients acquired from foreign markets. People are highly interested in testing new and healthy meals from other cultures and the uniqueness of our foods based on focusing on diversified culture will be useful in attracting more consumers. This option is suitable for individuals from all age brackets and can easily be enjoyed based on the involved flexibility of having more choices.
Weaknesses
- Higher Operating Costs – the cost of operating in the developed city is quite high due to high rent and high organic food expenses. Operating an organic business tends to be associated with 10 up to 30 percent higher costs.
- Small Market Share – Despite the recorded increasing growth of the organic meals industry, it still occupies the smallest share in the food industry in general.
- Competition – With several options of fast food restaurants in the location, it is particularly challenging to attract consumers specifically those that not into organic diet in the peak periods.
Opportunities
- Expanding market – Based on a recent consumer survey conducted in the city it was established that about 40 percent of parents are now purchasing organic meals as compared to the past (McCormack, 2017). In this context, it is easier to establish that the market is experiencing a rather speed growth which is the major motivation to the opening of an organic restaurant.
- Positioning – Downtown Core-south can best be categorized as a major preference spot for dining and lunch which makes the restaurant’s positioning to be a suitable opportunity for the growth of business.
- Menu – It is universally known that organic meals are particularly innovative and consistently changing towards the satisfaction of both social and health trends. This is an opportunity that permits the restaurant to maintain the interest of the consumers in the organic products given that the menu is bound to consistently change.
Threats
- Substitutes – With the presence of well-established competitors in the industry the competitors provide more options and extra services such as delivery which the restaurant lacks currently.
- Weather- Organic products are bound to be affected by undesirable weather which will then necessitate the firm to acquire goods from other suppliers which might increase the cost and create inconveniences.
- Competitors – Despite having less competition within the organic food industry when equated to the fast food sector, having few competitors in the restaurant’s region creates threats given that more marketing in creating awareness is required.
Name |
The Root Cellar |
Organic Works Bakery |
Veg Out |
Products |
Offers a variety of vegan options for lunch, breakfast, desert and Dinner. |
Offers organic products variety. The foods include; baked product, breakfast, lunch and appetizer foods. |
VegOut mainly deals with organic and Vegetarian friendly menu. Mostly they offer Dinner as well as Lunch time meals. Foods offer include: sandwiches, salads, appetizers and entrees. |
Products reviews
|
Friendly and quality services More options Great tastes
|
Convenient situation Speedy delivery More selection options |
The delivery system is ineffective given that it is slow. Clean and fresh products. More options. |
Service
|
Online orders Seating Take out |
Take out Delivery Take in |
Take away Take In Online purchases |
price |
The prices are particularly fair given that they range from $5 up to $20. |
The prices are particularly broad ranging from $3.75 up to $55 which are dependent on the commodities. |
Fair prices for all the products ranging from $8 up to $20. |
Pricing Strategy |
Skimming |
Perception/ Penetration |
Low cost leading approach where the prices are reduced based on what competitors offers. |
Place |
Situated at 623 Dundas Street, Hamilton Road. |
Situated at 222 Wellington Street, Downtown Core-South. |
Situated at 646 Richmond Street. This places the restaurant in the northern part of Downtown Core, London. |
Restaurant Design |
Clean, lively and stylish |
Lively but congested in regard to seating structures. |
Enjoyable and adequate for family. |
Number of locations |
One |
One |
One |
Promotion |
Delivery promotion |
Coupons and Discount |
Online Purchases |
Advertising |
Facebook and Media |
Social Media and Online advertisement |
Facebook and website advertising |
Brand perception of the company |
Young and innovative individuals willing to try organic but creative dishes. |
Middle aged and middle income persons with the love for organic meals. |
A small organization that targets mainly young workers and students from the Downtown region. |
Customer Segment Analysis
Segmentation Bases |
|
Potential Customer Profiles |
|||
|
1 |
2 3 4 5 |
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Consumer Segmentation |
Students |
Young Professionals |
Young families |
Established Adult Early |
Established Adult Late |
Geographic |
Fanshawe College. Western University |
Downtown Core-South/North
|
Most of the young families reside in Hamilton and Hyde-park road. |
Most of these people exist in Hyde-Park. |
Most of them reside in Masonville region. |
Demographic |
Between 18 up to 22 years. Under an income of approximately $20, 000. |
Between 22 and 30. Low – average income with increased one-use income. Not yet married without children High school up to university education.
|
Between 29 and 35 Years. These are Dual income generators with low to Middle revenue. Married. |
Between 36 and 49 years. Their income is intensely growing which places them within the average and high levels of revenue. |
Between 49 and 59 years. Hold secure employment with the highest earning. Children have already moved out for schooling or working.
|
Psychographic |
Students |
Lower, Upper up to working class.
University graduates
|
Have young kids. Lower to Upper working Class. |
Between Middle up to Upper class. Most of the free time is spend for social interactions and entertainment. |
Between middle and Upper class. A significant number is retired. |
Benefits they seek |
Students normally spend their free time Downtown particularly during the night hours and thus they look for convenient, quick and healthy options. |
Health food, convenient for the populace living in the region working longer hours
|
With stressful lives based on their young establishment with children and therefore they are in search of flexibility and convenience. |
The acquisition of creative and fresh food experiences and the group would thus benefit from the restaurant by trying tasty organic meals. |
The group is in search of health and environment friendly options and this makes the restaurant’s organic option and excellent one |
Usage Rate |
Averagely students normally utilize about $880 on the dinning and lunch out. |
Spend more time within the Downtown area particularly during the weekends and peak hours thus spending more in disposable things.
|
Based on their young and modernized lifestyle the group are in search of convenience thus they make frequent orders while heading home. |
Most income spent on outside dinning. |
They consume healthy meals on the ground of health consciousness and hold the highest spending income. |
Target Selection
For the restaurant’s target market, it is deemed that the target that would suit Tina’s services include established young adults, students, and young expertise. From the students, the corporation anticipates that most of them will be acquiring services during the lunch and dinner period as the menu is mainly directed towards meals that are stylish with fewer formalities like smoothies and sandwiches along vegetables but this does not imply that breakfast products will not be included.
It is the company’s anticipation that students and young professionals will be seeking the restaurants services with the high interest for health consciousness whose significance which is not just a popular subject among the general public but amid the young generation (McCormack, 2017). The restaurant’s menu does not only seek to offer health benefits but also assist local farmers financially by purchasing products from them. The restaurant’s atmosphere will be a modernized one, the reason for anticipating that the largest portion of our consumers will accommodate students and young professionals. In particular for the young established and young adults the company believes that it will attract a significant portion of the group for equal reasons with that of the student group but with an extra reasoning that the prices might appear to be particularly high. However, in appreciation of the health benefits, freshness, and items quality, it is our belief that this will equate the prices. It is our wish that the restaurant will be providing a speedy paced working surrounding particularly in the morning for all the targeted groups which will encourage healthy eating by changing their consumption perceptions.
Mission Statement and ObjectivesThe restaurant will strive to provide quality services with a creative menu in creating maximum consumer satisfaction.
The restaurant will focus on promoting healthy living as well as hygienic eating in all the organic and vegans products and offer support to the farmers in the provision of quality and fresh products. This approach will mainly seek to prove to the consumers that the food is not only enjoyable but also healthy. All the products will adhere to the utmost superiority and freshness values in innovative modes. In consistent, our consumers will be given astounding services that are graced with expertise, efficiency, truthfulness and friendly relations. The restaurant will strive to provide an equitable surrounding for all the employees with a desirable working surrounding and effective policies that encourage input. The main objective is to acquire the leading position within the organic foods sector.
Location
Price and Products AnalysisFor the restaurant’s pricing scheme, an average to premium pricing strategy is the best model for the restaurant, in consideration of the products to be offered. The products are particularly expensive and the quality of the items will be highest made from superior and fresh products. The restaurant will be offering things that other restaurants do not offer which is an incorporation of indigenous and foreign products with gluten free and vegetable options. The alignment of the organic products and reasonable prices, the company has the potential of attracting a significant portion of its target. The prices and items are differentiated from those of the existing competitors, thus the restaurant will be the first to offer more creative choices. Despite the fact that the prices are competitive with the ones in the market they are lower than several of them which increases success opportunities. The restaurant’s products such as smoothies and fruit juice are prepared on daily occasions after ordering. The restaurant will also be providing enjoyable and healthy conscious items such as sandwiches and burger.
Vegetable Burgers
Vegetable Sandwich
Distribution, Location, name and Floor PlanThe restaurant will operate under the name Specialized Organic which will be situated at 120 Dundas Street. The name Specialized Organic is selected to ensure that the consumers understand that the restaurant is serving excellent and proven organic foods. In addition, the name denotes professionalism.
The restaurant will be situated in Downtown Core-South. The region is associated with high traffic with increased number of persons moving as pedestrians. The traffic is mainly contributed by a number of several forces such as night life popularity given that it is near to a number of bar joints and factories (Storm, 2015). Given that the location is some minutes away from Fanshawe Downtown branch this implies that there are several students operations that are in place.
Distribution DecisionsThe restaurant will be situated at Downtown Core-South. Based on research in regard to rental stalls around the area and a considerable location along the street was established. The restaurant is considered to be gainful given that it will be grounded in a fast and convenient food style organic food restaurant which will mainly be targeting young professionals and students. Thus the place which is surrounded by casinos, bars and joint points fits into the expectations of the location.
The prime distribution modes that the restaurant will be utilizing include fast food dining, take away and close distance delivery. Given that the restaurant is just beginning its operations the website with be developed and structured after the initiation of operations. This will offer an opportunity to research on the best delivery options that are linked with less cost and high delivery speed. Given that the restaurant will be accommodating take in and take away a dining set will be developed to facilitate the accommodation of more consumers.
Marketing Communications PlanAdvertisement
It is apparent that venturing into a fresh business particularly one that deals with differentiated products requires more marketing (Lamb, Hair & McDaniel, 2012). The restaurant will, therefore, be spending much of its marketing budget on promotions. In particular, the larger budget share will mainly be portioned for advertising given that it holds the highest capability to reaching more individuals within a lesser duration. Social Media communication is favorable given that it is linked with less cost and is effective in reaching the young populace (Lamb, Hair & McDaniel, 2012).
Pamphlets
Pamphlets tend to be the wildest, highly effective, direct and associated with less cost (Lamb, Hair & McDaniel, 2012). This is the best means through which the restaurant will be reaching to its target consumers. The pamphlets will incorporate the location, menu and the mission of the restaurant. The pamphlets will be distributed on frequent periods around Fanshawe and Western Schools and distribute them to the working, entertainment and learning joints to increase awareness as well as familiarity of the existence of the restaurant.
Promotion Strategies
Promotions offer the most effective means for reaching consumers particularly those that are conscious about prices, health as well as quality. This is a channel through which the target consumers get to understand where the products that the restaurant offers suits them more as equated to those of competitors (Lamb, Hair & McDaniel, 2012). The most effective approach to promoting the restaurant is through making a free delivery to the students and working professionals given that they are situated close to the location. The second promotion approach will be accomplished via the opening of tasting stands and open discounts to attract and trigger the buying willingness to all the consumers.
References
Bittman, M. (2013). Yes, Healthful fast food is possible. But Edible? Retrieved from http://www.nytimes.com/2013/04/07/magazine/yes-healthful-fast-food-is-possible-but-edible.html?pagewanted=all
Hill, I. (2015). Start-up: A practice based guide for new venture creation. Palgrave Macmillan.
Lamb, C. W., Hair, J. F., & McDaniel, C. D. (2012). Essentials of marketing. Mason, Ohio: South-Western Cengage Learning.
McCormack, B. (2017). Clean Cuisine: London’s Best Clean Eating Restaurants. Retrieved from http://www.telegraph.co.uk/luxury/drinking-and-dining/londons-best-clean-eating-vegan-organic-gluten-free-raw-food/
Ronald, P. C., & Adamchak, R. W. (2008). Tomorrow's table: Organic farming, genetics, and the future of food. Oxford: Oxford University Press.
Storm, S. (2015). Small Food Brands, Big Success. Retrieved from https://www.nytimes.com/2015/08/26/dining/start-up-food-business-changing-appetites.html