Market Plan Is the Centrepiece of Any Business Plan

THHGLE12B C61225

MARKETING

General information: From economic sector point of view, hospitality industry or restaurant industry is very competitive. The reason being so competitive is bank gives loans easily for these type of businesses, moreover people get bored having same type of food and they always want to try something different . Because Melbourne is a multicultural city so varieties of food is here. So taking consideration of thee things I have brought an Indian cuisine food as what is my business plan which is called fitz curry and bar.

Size and growth rate of industry: Food industry is one of the largest industry sectors of the world. Because everyone loves food. So many restaurants are opening every month, increasing day by day and this industry is doing around $200 billion business annually. And these factors also show us that restaurant industry or hospitality industry forms 40% of GDP. Apex. As in this busy world nobody have patience or time to waste on eating like to have everybody wants quick like fast-food, but in my business at fitz curry bar, we make our sauces ready in afternoon and we are open for dinner only so we serve in 5-8 mins after dockets comes in. and we also do deliveries which is one of the factor of expansion of my business .its not only my but most of restaurants business are doing take away. And ready food just to be made in few minutes. But in our restaurant we also take care of nutritional values of food. We use all ORGANIC food. Like organic chicken and lamb etc. which customer like to have, some people are diet conscious. and we use less oil in curries . Which is low fat and we offer some banquets in deliveries also which is not given by our competitors. Sensitivity to economic cycle & seasonality: as we all know that economic crisis are here and this is recession period which effects every business to some in low percentage and some in high , to some directly and to some indirectly so in my restaurant case there wasn’t much effect on my business because I think people can’t stop spending on food they can stop on their luxuries or on drinks. Because as we are not charging higher prices, like two persons can have their meal in 30$ which is not bad.

Even the seasonal variations will not effect business much . just in christmas holidays its effected because peoples goes to picnics etc. moreover the business near to beachs have much effect not our.but in summers when temperature rises to 40’c then it effects by having less customers and spoilage of foods like last summers their was power failure because of heat

Market plan: Market plan is the centrepiece of any business plan. I will prepare a market plan so that it will provide me overall analysis of the market in which I have to operate my business. Market plan will provide me some directions regarding the products, prices and the information what is needed for the business to compete in the business. Market plan generally consists of:

 Competition, product and prices.  The total size of the market potential and the available customers.  Estimated market growth rate.  Estimated market share.  What kind of selling strategy is being considered and why?  The promotional activity in the marketplace and your response to it. 1. Situation analysis: We know while performing situational analysis it is conducted from separate viewpoints of the business i.e. internal environment and external environment. It provides us the information that what is going on outside and inside the business. A.) External analysis:

External analysis provides us the information regarding the changes taking place in the state and country:

a.)Changes in political positions:

As I know political changes affect the business so I have to aware about them. When any new political party comes the council also change and they have their own policies and these policies can affect my business so I should be careful about them and I have to make some strategies so that these conditions can not affect my business.

b.) Trends in society’s values and habits:

In today’s world people are more health conscious so their needs can change. The success of whole business depends on the customers. People are more health conscious. So, these changes can affect business if we don’t change our product according to their requirements. Also different people have different tastes I should also take care of this point.

c.) Identify competitors:

I know that any competitors have a great impact on my business because if they are reducing the prices, I also have to cut down my prices to stay in the business and to make profit. My restaurant is in city so there is a lot of competition there. Competitors always try to attract other’s customers so that they can earn more profit. There can be two types of competitors:  Direct competitors  Indirect competitors: indirect competitors do not compete with the product that I intend to sell. It is very important to identify both types of competitors. The key factors I will consider to investigate are following:

 The actual and potential competition.  Location.  Size and style of operation.  Age and growth history of business.  Success of business. d.) Economic conditions:

As we know the world economy is seeing a downfall. This can also affect my business in term of sales, profit etc. I know due to price increase people will spend less money and they will prefer something cheap and healthy. So economic conditions can also affect any business.

B.) Consumer behaviour: a.)Current and potential customers: In my business I have to look after about the current and potential customers. I have to know about the current customer’s behaviour, their needs, their habits, age groups, culture, life style, status, economic circumstances, occupation and attitudes. I have to consider all these factors while thinking about future customers what kind of customers can be there, their requirements etc. b.)Trends in consumer buying habits: Consumer mostly buys things because it’s their habit to buy them. Some of them buy those things even they don’t need but they buy things because this is their habit. For example if one customer in my restaurant is full because he had his dinner and he don’t need anything to eat but still he buy one ice cream to eat because he is addicted to eat ice cream after dinner.

c.)Why consumer purchases these products: Consumer always buys things because it’s very important for him to buy those things. For example if one is hungry he will buy something to eat. Some consumer buys products because it’s their routine. Some buy those products because it is their lifestyle, they like these products, they need these products for their occupation. For example one of my customer working near to my restaurant and he finish his job at 9.30p.m. so most of the times he came to my restaurant for dinner because he is single and no one is there to make food for him at home so he does not have enough time to make food for himself.

d.)Why do other consumers don’t buy the same products: On the other hand some other consumers don’t like to buy the same product because it is not in their culture, they don’t like it, different tastes, different status, economic conditions for example a rich customer can spend 100$ in a restaurant daily but a poor customer can not do so.

2. Strategic assessment:

My strategy is simple. I will provide excellent and interesting food. My main focus will be on marketing to increase customer. I will create an appealing and entertaining environment with good quality products. a.) Swot analysis: A SWOT analysis summarises all strengths, weaknesses, opportunities and threats. Strengths Weaknesses

Good quality food. High production cost. Good customer service. High wages. Healthy food at the price of Old building. fast food. Location of restaurant. Product prices high. Variety of product. Strong business strategies.

Opportunities Threats

Transferring skills to new Economic crisis. products. Expanding my business. Increasing competition in market. Expansion to international Natural crisis such as cyclone, market. earthquake etc. New rules and regulations.

3.) Product analysis:

The product feature of my restaurant is that it is located at a good location. Product analysis incorporates investigation into what constitutes a positioning statement, what are unique competitive advantages, how to convert the features of product/service into benefits, how to support the positioning of a product or service?

A.) Positioning is the perception of my product that I create in the mind of my customer relative to my competition. So my positioning must be relevant to the target market and must represent and promise to deliver what it is they value most in the product category. Positioning conveys most important attributes of product service. In order to create a positioning I have to determine which competitive advantages are strongest for business and how these advantages can be translated into customers benefits. B.) To be successful in my business my products should be differentiate from my competitor’s product. Following are some product differentiates features: a.) conformance quality: if my product delivers on its promise I have made it in comparison with the competition, then these would be of good quality such as my restaurant’s fine dining, good food and service. b.) Performance quality: I will give standard cooking, good service, and presentation to my customers so that my product does not fall short form customers expectations. c.) Reliability: I will take care that my product would be reliable to my customers such as consistency of service and food quality, portion size and control. d.) Design: I will try to design my restaurant in a very good way so that every customer likes it. e.) Style: style of menu, tableware, décor etc. of my restaurant should be good so that customers like it.

C.) Services differentiation: some times service is more important than product that’s why services differentiation is very important. It includes delivery, installation, customer training, ease of ordering, customer consulting, and maintenance. I will make assure that speed of service should be fast in my restaurant and delivering the right meals to right people. I will provide home delivery facility in my restaurant so that customers can order from home if they don’t want to come to restaurant. I will keep the regular maintenance of my hotel so that all things are working properly. 4.) Competitor analysis: in order to do competitor analysis I have to look who is my competitor and is it direct or indirect competitor e.g. the other Indian restaurants are my direct competitors but Hungry Jacks etc are my indirect competitors. I have to be aware of when a competitor lowers his/her prices. It is important to have knowledge of competitor’s products and services. While considering my competitors I have to look after the following format of competitor analysis: a.) Summary of existing customers. b.) Description of the facilities my competitors offer. c.) Detailed breakdown of facilities and services competitors offer compared to my business including the ranked competitive threat. d.) Summary of any new business forecasted to open in the market.

My Competitor Competitor B Competitor C restaurant A Location In city In city Suburb city Parking no yes Yes no Strengths Location Near to Only one Near to and quality transport restaurant in market of products that suburb. Weakness More Old building Inexperienced Low quality es competition staff food Year built 2010 1940 2005 2001

Marketing strategies: Product: Market strategies show that the product which comes first in market generally gains greatest advantage. As more people come to city side so it is better to sale our product in the city. As people like modern facilities so I will provide some entertainment resources for all age groups. Hungry Jacks, KFC etc. are providing fast food which is not healthy. So I will provide healthy food to my customers so that they will eat good and healthy food so they live long. I will provide good and quick service to my customers. As customers believe in brands so I will provide quality products to them. Location has a great effect on the success of any restaurant so I have one benefit for that because my restaurant is in city.

Price: it is one of the most important factors at the beginning. I have to publish my rates in terms of average spends on food and beverage. Prices also depend on business’s location, style and market share. My main aim is to earn profit by satisfying my customers.

a.) While setting for any product I will consider all costs such as fixed costs, variable costs, commission’s costs, maintenance costs, semi-variable costs. When prices go up normally the quality goes up and when the price goes down so does the quality. So the customers get what they pay high quality, high price, low quality, and low price. I have also to consider my competitor’s prices such as:  How much are they paying their staff per hour?  How many staff do they employ?  Are they heavily in debt or highly geared?  Can they purchase goods and services cheaper than their competitors?  How much is their rent, lease, rates etc.? b.) I will give discount to my customer as there is a lot of competition in market and they are providing discount so I will also provide discount. I can provide seasonal discount such as during Christmas eve I can offer with two meals one meal is free etc. or if anyone is buying a big amount then I can offer some discount to them. I can also provide trade discounting to customers who are staff of other restaurant but they came to my restaurant for eating.

Promotion:  As my restaurant is in city so I will advertise mostly at stations, bus stops, trams, public places, shopping centres. I will also distribute some fliers there.  Just my relatives can help me in the promotion of my restaurant. For example my brother is working in a shopping mall so he can encourage other people to come to my restaurant. Same my children can promote my restaurant in their school.  In cinema halls if any new movie is coming then I can promote my business with that movie as well. I can give advertisement in the newspapers as well. I can send messages as well to promote my restaurant.  As I have good relationship with the local council so they can promote my restaurant.

Tutorial 1- SWOT analysis

Property A Strengths Weaknesses International hotel chain. New restaurant so take time to settle down. Latest technologies and Similarity in rooms. modern facilities. Location of the property. High prices.

Opportunities Threats Establishment of position as a Threat of security. leader in the market. Additional facilities lead to profit Natural disaster. for the business. Easy to do a business in partnership.

Property A swot analysis summary: After doing a swot analysis, it has been concluded that the strengths of property A will be the plus points which will be communicated while doing any deal or for the growth of the business. Opportunities arising for this property will be quite good in number. As being good in location and better facilities, more stress will be put on this positive point so as to establish the property as a leader in the market. It will also contribute to profitability of the business. The swot analysis also reveals the location of the property as a negative aspect because there is more crime in city at nights. To overcome the price barrier which will be high during recession period, possible step should be made stabilise the prices on an average so the cost could be met by ordinary person as well and the business is not affected highly by the downfall in economy.

Property B:

Strengths Weaknesses Experienced staff. Lack of technologies and modern facilities. Function room and variety of Non branded. rooms. Surrounded by other buildings. More expenses on maintenance. Opportunities Threats Chefs can be good trainers. Natural disaster. Providing modern facilities Building is old. Can open a new bar to attract more people.

SWOT Analysis Property B

After doing a SWOT analysis, it has been concluded that strengths of property B are affordable by people during recession time. Property B provides good services because staffs are experienced. This is the plus point. On the other hand, opportunities arising for this property B are that its experienced staff can train other people or its building can be used as an antique. The swot analysis also reveals that the lack of modern facilities is property’s negative point.

Tutorial 2- Marketing Initiative: We can define target markets through three basic approaches- market targeting, segmentation and product positioning. To distinct the criteria into different groups of customers according to their needs is market segmentation. Market positioning involves decisions about marketing mixes specially in the case of targeting multiple segments. Market targeting involves assessing the profit potential, both current and future of each segment.

Market initiative 1-  Target market based upon common purchase occasion and highlights benefits and loyalty status. For example a loyal customer always buys bear of one brand.  Different people have different tastes so they buy according to their choice. For example 18-25 age groups are the youngster age group and they believe more in reputation and fashion so they can promote the business. They like to go to bar etc.

Marketing initiative 2  While preparing market budget I will keep in mind that I will keep some amount to advertise during Christmas Eve because it is the busy period. Hotel in the middle of the market price points have to rely on third parties.  To reach the target market, medium should breakdown these groups of people e.g. geographic, demographic, psychographic, and behaviours so that it can better understand how to reach them.

Tutorial-3 competitor analysis:

 Restaurant is underperforming as the hotel is in city and it is surrounded by many other restaurants and these restaurants are providing quick and easy service so this location is the big threat for restaurant. The hotel highlights key threats like high menu prices and slow speed of service and the declining ratio for dinner.  In order to increase the sale we have to prepare easy and simple menu so that customers can understand. We have to improve our service as well. Room service should be quick.  Food and beverage revenue is not achieving budget because not too many people are coming to restaurant and staff is wasting most of the things. Manager should take care of all these things in order to maintain the budget.  Hotel has to provide new facilities in the restaurant so that more people come to the restaurant. Organise some functions etc.  Have to take care what is happening in the market, what other competitors are doing, what are their prices can help to be competitive in market.

Tutorial 4 marketing strategies: In this part we will practice assessing objectives in the key market segments of Leisure and conference and developing strategies to meet them . for the main aim of this exercise we need to envisage we are the marketing Managers for a resort style hotel located within driving distance from Melbourne. Scenario 1 Leisure market: Three components can be described in example of leisure market -couples, families and seniors which increase the sales of rooms in hotels Couples segment: I personally feel that pricing strategy should be based per person , twin share incorporating a range of value added options which may be incorporated by the guest - affecting a tailor - maid package experience. The method of marketing to focus on Melbourne market via press advertising supported by targeted unaddressed direct mail . A supporting television strategy and budget will be evaluated. In regard to the direct mail component, distribution will be staggered to control redemption. Family market: Family market is Melbourne based and is concentrated into school holiday periods. Psychographic and demographic data fits the family model with potential consumer likely to reside in Melbourne’s more affluent north shore, inner west and eastern suburbs. Market is self generating with high return guest ratio. Scenario 2 Functions and weddings: Functions and weddings also play an important role in the sales during the non peak periods. We can book banquet halls for functions, these results in the sale increase of the hotel. These hotel bookings can be based on relationships. We can advertise our hotel so that more people come to hotel and offer some special offers during festive season. While making budget some money should also invest on marketing as well for a successful business.