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Assignment Four | Diego Romero, Paul Mclaughlin 1 | P a G E BSNS 7454 STRATEGIC BRAND STRATEGY REPORT RAND B MANAGEMENT Assignment Four | Diego Romero, Paul McLaughlin 1 | P a g e Executive Summary This report is a presentation on the brand strategy for Sabor and Salud, a healthy great tasting Mexican themed restaurant. The recommendations for the brand are to deliver clear marketing communications to the target market on a business delivering; i) A fast, consistent healthy Mexican lunch taste ii) Creating a great tasting healthy Mexican dining experience Using a strategy of differentiation for the business model will create a two prong business that requires décor transformations on a daily basis not seen in New Zealand before. The lunch offering must follow the market leader’s model but differentiate through a new and exciting choice to the consumer. The dine-in experience must compete with large volumes of competition both direct and indirect yet deliver the brand promise of a great tasting healthy experience. The report outlines barriers to the strategy implementation and recommends tactics to help overcome using an action planning process. The business will reach break-even point in the first year of operations exceeding a sales target of $760,000. The calculated figures are low by industry standard and exceeding this expectation is well within the business capabilities. By the end of financial year two the investors will be paid back initial investment and have an approximate figure of $40,000 to reinvest into the business or expand through additional store locations. Being part of this new and exciting business is a chance to be a market leader through brand innovation and opportunity to grow significantly through the franchisee of the business in the future. The strategic direction outlined within this report will lead the brand to ultimate success. Brand strategy presentation Diego Romero and Paul McLaughlin 2 | P a g e Contents Page Executive summary......................................................................................................1 Contents page...............................................................................................................2 Introduction..................................................................................................................3 Industry category ………………………...….............................................................4 Competitive analysis…................................................................................................7 Brand strategic plan...................................................................................................11 Target customer & segmentation analysis...............................................................12 Customer insight…………........................................................................................14 Brand objectives………….........................................................................................15 Equity elements..........................................................................................................16 Brand positioning………….......................................................................................17 Brand concept maps..................................................................................................19 Brand attractiveness..................................................................................................20 Strategic brand promotional mix.............................................................................21 Implementation plan.................................................................................................26 Strategy measurement...............................................................................................27 Strategy evaluation………………............................................................................28 Business financials.....................................................................................................29 Recommendations......................................................................................................33 References..................................................................................................................34 Brand strategy presentation Diego Romero and Paul McLaughlin 3 | P a g e Introduction This report has been commissioned to analyse the feasibility of strategically implementing a strategy plan to launch the restaurant brand Sabor & Salud. The restaurant idea is new because of its two-pronged approach in an attempt to capture as much market as possible. Given that the new dimension of the industry category type has not been attempted before, this report describes in detail plans to overcome barriers identified in a previous qualitative research project. The success of this business will see the two separate offerings of fast service lunch and dine-in dinner have defined brand positioning translating the brand idea early on into consumer knowledge. By the end of the first financial year the restaurant will reach a breakeven point and will continue to provide a return on investment for the stakeholders. The end of financial year two will see a return on investment that can be divided amongst the stakeholders, reinvested into the business or used to start another Sabor & Salud to further grow the brand. Brand strategy presentation Diego Romero and Paul McLaughlin 4 | P a g e Industry category Sabor & Salud will operate within a very diverse environment whereby lots of large share global brands, local business and indirect or direct competitors may be found in every corner of the city all competing within the food industry. Exisiting competitors tend to adopt singular type of business definition which can be represented by either: TAKE- FAST CASUAL FINE DINING AWAY CASUAL DINING (Mealey, 2010) Features such as cheap price, meals served very promptly, limited menu, high volume, low cost are likely all elements of the ‘take-away’ approach. When dining people expect more therefore aspects such as non-disposable plates and cutlery, more casual atmosphere and food quality make prices higher than those of a conventional fast food restaurant. These types can be defined as ‘fast casual’ or ‘casual dining’. The last segment is fine dining and is a more formal service restaurant where high emphasis is placed on all the business elements including higher end meal courses, high levels of service and total attention towards creating atmosphere. Using this analysis of the food industry we see that although the choice related to food consumption affects us as consumers, business’s might not be competing for the same target market if consumers have different goals when deciding to have a meal out of their homes. For example if they are rushing during their break time they would probably not consider an eat-in place which might lead them to a fast-food restaurant. The same occurs if someone has available time to spend dining with friends or relatives, having a meal where fast food would not be one of the top choice for providing the experience factor sought for the occasion. As a result, these businesses are somehow locked up in their main characteristics which has a positive side for consumer learning curve. Brand strategy presentation Diego Romero and Paul McLaughlin 5 | P a g e Utilising a differentiation business approach of competiting in more than one industry group daily, Sabor & Salud aims to break the rule and go beyond that one-type restaurant. The differentiation from industry standards by dissassociating from one unique trend comes not only from offering a distinctive option to suit consumers, but being able to balance its level of appropriate service during the day and night. By taking the Subway example Assignment 3 (Romero, 2012) it is possible to identify that during the day the business has a flow variation which is directly connected to the time of day. Using an observation approach on the last report it was understood the business has its peak during the lunch time and it gradually declines towards its closing with sporadic busy times but manageable without great effort. The following graph illustrates the situation viewed in the shop where the example was taken from: Number of staff on a daily-basis 5 5 3 2 1 08:00 - 10:00 10:00-12:00 12:00-14:00 14:00-16:00 16:00 - close (Romero, 2012) The graph reflects the number of staff throughout a common day at the shop however, it is possible to infer that the number of staff allocated is enough to handle the level of service required. Using this information we see that lunch is the busiest time and the staff reequired thereafter reduces as it is no longer necessary due to the low volume of consumers. The black arrow indicates the drop in level of service identified. Brand strategy presentation Diego Romero and Paul McLaughlin 6 | P a g e The conclusion that can be drawn based on this observation is that fast-food restaurants tend to be a busy place during lunch, taking advantage of the ‘rush’ time. Using this observation we can predict the staffing levels required for Sabor and Salud’s lunch service. As consumers have more time to spend when it comes to dinner, the scenario changes for consumer food choice and fewer consumers select the cheap, fast and easy option. Therefore, in order to be an interesting option in both scenarios and considering the segments of restaurants mentioned before, Sabor & Salud will be positioned casual dining. Positioning of the company elements within the industry will be defined
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