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Marketing PlanMichael ParkhurstBellevue UniversityAbstractA marketing plan is important for companies to determine their marketing goals, strategies, strength, weakness, target market, and other valuable information. This paper contains a sample marketing plan about a whole healthy food restaurant. The marketing plan object is to increase brand awareness and maintain sales of at least $500,000 each year for the first 3 years and a 10% increase in sales each year after the initial three years. The copy will use various outlets for advertising such as social media, television, and radio to promote the company. The owner will track the results of the different activities to ensure they are producing the expected outcome.Marketing PlanA marketing plan is important for companies of any size. It allows a company to determine their marketing goals, strategies, strength, weakness, target market, and other valuable information. This helps the company to see where they are at compared to where they wish to be. Below is an example of a marketing plan for a small diner located in Parkersburg, West Virginia that focuses on whole healthy foods.Executive SummaryHealthy Home Meals is a restaurant located within the Patriot Shopping Center in Parkersburg, West Virginia. It will provide customers with lower calorie healthy meals. The company’s primary suppliers will be located within 100 miles from the company’s city of operation. The primary goals of the marketing plan is to increase brand awareness and maintain sales of at least $500,000 each year for the first 3 years and a 10% increase in sales each year after the initial three years. The company will try and achieve these goals through the use of social media, TV advertisements, radio commercials, newspaper articles, and a health living show through the news station. The owner will be tracking how much sales each menu item is making through the use of a point of sale system and software. This will allow him to determine if the menu needs to be changed or if items are not selling well. He will also be gathering information from guests on how they heard about the restaurants to determine which methods of advertising are working and which might need to be improved upon or discontinued all together. The preparation and advertising will take place over a two month period leading up to the grand opening of the restaurant. The plan is expected to help grow the brand over the first year and will be continually reevaluated and improved upon.Situation AnalysisThe Internal EnvironmentReview of marketing goals and objectives. The two primary goals of the marketing plan is to increase brand awareness and maintain sales of at least $500,000 per year for the first three years. Brand awareness will be Review of current marketing strategy and performance. Since this is a new company there is no current marketing strategy or performance metrics to review.Review of current and anticipated organizational resources. The anticipated organization resources include funding for the advertising, employee training, beginning inventory, and point of sales system. There will also need to be time invested by the owner and management to create the menus and train the employees.Review of current and anticipated cultural and structural issues. There are not any current cultural or structural issues. Some possible issues include employees not buying into what the company is looking to achieve. If the employees don’t believe in the products they are selling then it will be hard to convince the customers to buy them.The Customer EnvironmentWho are the firm's current and potential customers. The firm’s potential customers are people who are conscious about what they eat. They are people who want to lose weight maintain a healthy life style or put on lean muscle. They are also people with special dietary needs such as vegetarians, diabetics, and people with specific food allergies.The owner is the primary purchaser for the company. He handles all the inventory ordering and payment of bills. Decisions on what types of ingredients to order is at the discretion of the owner, but he is always taking input from the employees and customers as to what they would like to see on the menu.What do customers do with the firm's products. The primary thing done with the product is consumed by eating. The products are purchased as appetizers, side dishes, main courses, and desserts. Product waste will be recycled as much as possible. Any type of bottles, can, or boxes will be placed in recycling. Any left over, out of date, or non-usable product that can be composted will be placed in the compost to be used in the restaurant’s garden. Where do customers purchase the firm's products. The products are purchased from the store located in the Patriot Shopping Center. Meals can also be ordered by phone and picked up at the location. Delivery is available for purchases larger than $50, this included multiple orders going to the same building that when added together total more than $50. When do customers purchase the firm's products. The restaurant is open from 6am to 9pm. It is anticipated that breakfast and lunch will be the busier times of day at the restaurant while lunch will have more delivery and pickup orders. Winter time might bring slower periods due to inclement weather. The first of the month might see higher sales volume due to a higher surplus of funds for most people, while the end of the month might see a lower sales volume.Why (and how) do customers select the firm's products. The meal this restaurant sells is made from whole healthy foods. There are no preservatives or additives in the meals. They are created and prepared with health in mind and paying attention to the nutrition that the food provides while keeping it delicious. Competitors have a wide range of preservatives and additives in their ingredients. Employees are trained to be polite and courteous of all the customers no matter how they are treated. The customer’s satisfaction is a main priority. Why do potential customers not purchase the firm's products. Some people might not purchase the product because they feel they need to eat unhealthy when they go out. Products might also be slightly more expensive than competition’s products due to the organic produce costing more. Others might not come because the company does not serve alcohol and many people enjoy drinks with their meals when they go out.One way to convert some non-customers might be to show them that the food the company sells is just as delicious as cheaper unhealthy food that they might get from the competition. The External EnvironmentCompetition. There are no competitors in the area that are completely dedicated to whole healthy food like this company is. There is competition that offers similar products on their menus with lower calorie alternatives to their dishes for their customer to choose. All food service providers are potential competition. Each company is trying to be the decision that the customer chooses when they go out to eat or pick something up for lunch.There are many well-known sit down restaurant brands in the area including Golden Corral, Applebee’s, Olive Garden, Red Lobster, Ruby Tuesday’s, Cheddars, and Buffalo Wild Wings. These brands have the advantage of a name that is known in many parts of the country. When people visit and try to decide where to eat normally the larger chains get mentioned first. There are also many well-known fast-food and pizza chains such as Wendy’s, McDonalds, Hardee’s, Pizza Hut, Domino’s, Captain D’s, and Subway.The other competition that is often overlooked in food service is people choosing to cook meals at home. Some consumers look at going out to eat as a luxury and believe they can get cheaper meals if they prepare them for their selves. Economic Growth and Stability. The economic growth in the restaurant industry has a good lookout. It is estimate that by 2025 there will be around 15.7 million employees in the restaurant industry. 2015 was estimated to bring around $709.2 billion dollars in sales. Industry sales are estimated to increase by 1.5 percent after the inflation-adjustment. Restraints have increased their share of the food dollar from 25 percent in 1955 to 47 percent presently meaning more people are spending their money on eating outside of the home CITATION Nat15 \l 1033 (National Restaurant Association, 2015). Political Trends. There are different political trends that can affect the industry including economic uncertainty, government mandated obstacles, compliance issues, and menu mandates. During election seasons there is a lot of talk about economic hardships and a slow economy. When people fear that the economy is going to be slow or rough they often tend to spend less money outside the home. The government will sometimes put mandate on certain products for example the prohibition in 1919 where alcohol was band. If certain products are ban it can cause issues for the industry as a pliance issues such as increased minimum wage, immigration laws, tip allowances and mandatory healthcare can cause companies to be leery of how many employees they staff. Items such as increase insurance premiums or minimum wage can also cause a company to implement price increase that might deter potential customers. Finally with the increase awareness of obesity and diet-related diseases many advocacy groups are wanting restaurants to be more clear about what are in their products and how many calories the meals contain CITATION Cyn15 \l 1033 (Perkins, 2015). Legal and Regulatory Issues. Legal and regulatory issues include many of the items listed above in the political factors such as minimum wage, tip allocation, mandatory health insurance for full time employees. Restaurants must also undergo health inspections by the local health department to ensure they are upholding food and safety standards. In the county that this restaurant will operate in each employee who cooks or handles the food must obtain a food handlers card from the local health department or a ServSafe certification from the ServSafe website.Technological Advancements. Technology trends in the restaurant industry include better Point of Sales Systems and software, guest facing technology, and increase social network usage. The Point of Sales systems used by restaurants are greatly increasing the efficiency of order tracking, inventory tracking, and sales forecasting. The POS systems are linked to software that help companies determine trends and inventory needs as well as tracking which menu items are selling well and which are not CITATION Res15 \l 1033 (Restaurant Engine, 2015).Guest facing technology is relatively new in the restaurant industry. These items are tablets on the guests table that allows them to order food and drink right from their table, play games while waiting for their food, pay when they are finished eating, or be notified when their order is ready. This allows the customers to do things on their own time without having to wait for the waiter or waitress to come back around. Even fast food chains such as McDonalds have started placing kiosks that allow people to order their own food instead of waiting in line at the counter CITATION Res15 \l 1033 (Restaurant Engine, 2015).Social Networking is giving companies an easier way to connect with their customers. They are using sites such as twitter and Facebook to run promotions or create brand awareness for their stores. The site also provide a way for companies to get feedback from their customers and let word of mouth do some promoting for them.Sociocultural Trends. Sociocultural trends in the restaurant industry are leaning towards locally scored ingredients, healthy meals for kids, minimally processed foods, gluten-free items, and mini-desserts. These types of sociocultural trends are the main things this company is focused on. For family dining restaurants around 85 percent of people are more interested in locally sourced items than they might have been a couple years before CITATION Nat15 \l 1033 (National Restaurant Association, 2015). SWOT AnalysisStrengthsThe strengths of the company include over 20 years of restaurant experience between the owner and his management staff. This means the people involved in running the company knows the trends and regulations of the industry and understand how it works to provide what the customer wants and needs. The owner has a good standing relationship with the suppliers of the produce. These strong ties can help ensure that any possible disruption to the supply chain can be dealt with quickly and pricelessly. WeaknessesLack of brand recognition is one of the major weaknesses. The company will need to work hard to get its name out there to increase its customer base. Many of the other competitors in the area have a well-recognized national brand that they can associate with or have been in the area long enough to have been able to grow their recognition with the local community.Cash flow is another weakness. The primary source of funding comes from the owner and possibly bank loans if needed. While the owner has enough fund set aside for the company to run safely for 6 to 12 months if the business not start to gain its own traction by then it will need to look into the possibility of a loan.OpportunitiesThe first major opportunity for the company is the trends of people wanting lower calorie healthy options for themselves and their kids when they go out to eat. This trend has been increasing over the past few years and with the increase of obesity awareness it is likely to continue into the future.The increased technology is another opportunity for the company. The technology will allow the company to see what products are selling well and what are not. Also with the use of whole natural foods inventory control is going to be important to ensure there is not a large amount of waste being produced from unsold items.ThreatsIncreased minimum wage and mandatory health benefits poses a real threat for the company. Since whole natural foods already cost a bit more than process foods the prices of menu items are slightly higher. With higher minimum wage and health insurance costs the prices could have to be increase more if the desired profits are not being maintained. Other well-known companies also pose a threat. The stronger brand recognition that these companies’ possess might make people more likely to choose them over an unknown company such as this one.The SWOT MatrixStrengths:Combined 20+ years’ experienceGood supplier relationshipOpportunities:Healthy food trendsIncreased technologyWeakness:Lack of brand recognitionLow cash flowThreats:Government regulationsWell-known brand competitionDeveloping Competitive AdvantagesThe matching of experience and suppler relations to healthy food trends will allow the company to maintain a great stock of whole healthy foods for customers. Being the only company in the area that caters to the exact needs of people who are waiting to watch what they eat and avoid the temptation of the higher calorie meals will allow the company to who the majority of the market share. The two primary weaknesses of the company can be improved upon with the marketing plan. If the company can satisfy the customer’s needs and provide whole health foods that people enjoy then the brand recognition will increase. As the brand recognition grows the number of customers should increase with will drive up the amount of cash flow the business will receive allowing it to grow into self-funding without the need for external investment except in the case of expansion.There are not many thing the company can do about the outside threats against it in the area of government regulations and well-branded competitors. The best thing the company can do with the government’s regulations is to keep a close eye on any political changes that may affect the price of products or overhead costs. The company also needs to work on its brand recognition to ensure they can start to match the well-branded companies in the area.Developing a Strategic FocusThe primary strategic focus of the company is on nice marketing. The niche market this company focuses on is the consumers who wish to eat whole healthy foods when they go out to eat or people with special dietary needs such as diabetic, gluten-free or other related food allergies. The marketing will focus on informing customers that the primary food is acquired from local farmers and meat producers, lower calories, and, minimally processed food products.Marketing Goals and ObjectivesMarketing Goal AMarketing Goal A: Increase brand awarenessObjective A1: Increase the number of likes on the Facebook page by at least 100 likes per month for the first year.Objective A2: Within three years be the primary brand in the community that people mention when talking about whole natural health meals.Marketing Goal BMarketing Goal B: Continually increase annual sales over the next 5 yearsObjective B1: Have annual sales of at least $500,000 the first 3 yearsObjective B2: Increase sales by 10% each year after the initial 3 yearsMarketing StrategyPrimary Target Market The company’s target market are consumers who are looking for a healthier alternative to the normal high calorie, salt, fat, and sugar foods normally associated with eating out. These customers could include people who are trying to lose weight, maintain a healthy weight, or even put on lean muscle. This can also include people who have special dietary needs like diabetics, vegetarians, and people with different allergies.The secondary markets for this company are anyone who wants to eat out and enjoy whole healthy foods even if they are not focusing on a healthy lifestyle. This market will not be focused on as much as the primary market but people will see the advertisements when they look online or in the phonebook for a place to eat.Product StrategyThe brand name is Healthy Home Meals. The major features of the products are whole healthy meals made with fresh ingredients from local farmers and growers. Many restaurants offer lower calorie options on their menu but don’t cater to the full needs of the health food community. Many competitors get their products from warehouses that supply many different store. They also use products that are full of additives and preservatives. Pricing StrategyThe company will use a Cost-plus pricing strategy. Cost-plus pricing takes all overhead costs into account when determining the price of products. The price of rent, wages, utilities, and food cost are used to determine a percentage to mark up prices of each menu item. Using this method would allow each item sold to make a profit since all food cost and overhead is accounted for CITATION Lor15 \l 1033 (Matterhorn, 2015). This could cause prices to be slightly higher than competitors. Distribution/Supply Chain StrategyThe majority of the ingredients needed for the menu items will be sourced from local growers and farmers. The company will use the point of sale system to track how much product is used by the different menu items. The company will try to keep just the right amount of inventory on hand in order to fulfill the estimated demand of the products.The company will get fresh product from its supplier at different times throughout the week to ensure the freshest ingredients are used for the menu items and to limit the amount of waste from expired product. Keeping minimal product on hand will also help limit the amount of space needed to store ingredients leaving more room for seating within the building.Integrated Marketing Communication (Promotion) StrategyThe company will use a mix of tv, radio, and social media for its primary modes of advertisements. The TV ads will focus on showing the customers the food that is offered and show the location of the restaurant. Radio marketing will tell customers about what the company offers and any of the current promotions currently being offered. Social media will be used to show pictures of the restaurant, promote promotions, and interact with customers.The owner will be conducting an interview with the local newspaper about the restaurant and what the company will be offering. The hopes of this is to try and get some free publicity through the paper. The owner will also be featured on a local news healthy living segments to promote the restaurant as well as share a recipe with the viewers to show them how good whole health foods can taste. He has made an agreement with the news station to be a monthly guest on the show as well.The wait staff will be trained to suggest meal choices based on customers individual needs. If a customer is diabetic the waiter or waitress will know which menu items are specially designed with a diabetics needs in mind. They will know which products are safe for people with various food allergies such as peanut, eggs, or milk. This training should help the customers feel well informed about the food they are eating.Promotions will be offered depending on the different ingredients that are in season at the time. Promotional meals will showcase seasonal ingredients and since the ingredients are cheaper while they are in season the company will be able to offer a decent sales price while still maintaining a decent profit.Marketing ImplementationStructural IssuesThis strategy will be implemented over a two month period leading to the grand opening of the restaurant. The first month is the preparation month and will consist of creating and testing the menu items, signing the contracts with the suppliers, determining the price markups, and creating the social media sites and commercials. The second month will be more of the final stage grand opening promotion push and training of the staff. The staff will taste the various food products and will gain knowledge of the different menu items and how they align with the different goals of potential customers. The newspaper article will be ran 2 weeks prior to the grand opening and the first appearance on the news stations healthy living segment will take place a week before the stores grand opening even.Tactical Marketing ActivitiesSpecific Tactical ActivitiesPerson/DepartmentResponsibleRequired BudgetCompletionDateProduct ActivitiesCreate MenuTaste TestStaff TrainingOwnerManagement02/19/201603/05/201603/05/2016Pricing ActivitiesDetermine Price MarkupDetermine Sales PricesPOS system programedOwner02/28/201603/10/201602/16/2016Distribution/ Supply Chain ActivitiesSign ContractOrder ProductsOwner02/06/201603/01/2016IMC ActivitiesCreate Social Media SitesMake Radio and Television CommercialsInterview with PaperAppear on News ShowOwnerManager02/07/201602/10/201603/21/201603/28/2016Evaluation and ControlFormal ControlsThe input controls that will need to be in place included funding for the commercials, beginning inventory, and employees training time. A list of available ingredients will need to be obtained from the suppliers to ensure all items needed for the menu can be ordered and arrived before the taste testing and before the grand opening. The Point of Sales systems will need to be installed and all menu Items will be loaded in before staff training.Process controls will include the ongoing training and evaluation of the staff and menu. The food quality will always be under close supervision to ensure the customers are getting the best possible product. Output controls are one of the important factors of a marketing plan to make sure the marketing plan is working. The owner will be measuring traffic through the social media sites as well as talking to guests during their visits to see how they heard about the company. This will allow the owner to determine which modes of advertisement are bringing in the most rmal ControlsEmployees who do not fully believe in the product the company is offering can undermine the process. The company wants employees who are excited about the healthier options and willing to promote them. Also employee satisfaction is the top priority of the company, if an employee is not happy it will show in their work performance and the customers will be able to pick up on it. Employees will asked to provide their feedback on the company and how they believe things can be improved on. Since this is a new company the culture of the organization has yet to be determined, but the owner and management staff will be monitoring it constantly to make sure it stays within the confines of the organizations goals and objectives.Implementation Schedule and TimelineMonthFebruaryMarchActivities Week123412341234Product ActivityCreate MenuXXXTaste TestXStaff TrainingXPricing ActivatesDetermine Price MarkupsXDetermine Sales PricesXProgram POS SystemXDistribution ActivitiesSign ContractXOrder ProductXIMC ActivitiesCreate Social Media SitesXMake Radio and TV commercialsXInterview with newspaperXAppear on News ShowXMarketing AuditsThe commercials and social media advertising will be monitored by the owner. With the current goal of $500,000 per year for the first three years the company will need to have sales of at least $42,000 a month, which is a weekly sales volume of $10,500. The POS system will keep track of all sales numbers and the owner will evaluate if the sales volume is meeting expectations.Likes and retweets of the social media sites will help the owner gage the effectiveness of social media. The radio commercials and TV ads might be a little tougher to track as well as word of mouth. If there are not many people who say they heard about the company from the TV or radio the owner might wish to run a promotion where mentioning the ad with give the customer a discount.If any part of the marketing strategy is not working then the company will have to reevaluate the particular phase. For example if a radio ad is not bring in any sales the owner might try switch the time slots of the radio add or possible doing away with the advertising all together.The advertising would be the first elements that should be revisited if the plan starts to look like it won’t meet the objectives of the company. After that the menu might have to be adjusted, and if there are still issues the company might have to look at the product price point to determine if they can lower the price of the menu items to bring in more sales.References BIBLIOGRAPHY \l 1033 Matterhorn, L. v. (2015). Restaurant Food Pricing Strategies. Retrieved from smallbusiness.: Restaurant Association. (2015). 2015 Restaurant Industry Forecast. Retrieved from : , C. (2015). Political Problems Affecting The Restaurant Industry. Retrieved from smallbusiness.: Engine. (2015, February 02). Seven Trends In Restaurants For 2015. Retrieved from : ................
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