Marketing strategy for the case company “Restaurant Kinza” LAB University of Applied Sciences Bachelor of Business Administration 2021 Filipp Tarkovich Abstract Author(s) Publication type Completion year Tarkovich Filipp Thesis, UAS 2021 Number of pages 36 + appendices 4 pages Title of the thesis Marketing strategy for the case company “Restaurant Kinza” Degree International Business (UAS) Name, title and organisation of the client Bezrukova Liliya, owner and CEO of the JSC “Kinza” Abstract In this thesis, the definition and steps for drawing up a marketing strategy are given. A situational analysis was carried out for the case company, as well as the analysis of competitors and competition environment, analysis of strengths and weaknesses. Also, the elements of the marketing mix were described. Keywords Marketing, strategy, restaurant, marketing mix Contents 1 Introduction ..................................................................................................................... 1 1.1 Objectives of the study and research questions ................................................... 2 1.2 Introduction of the case company ......................................................................... 2 1.3 Research method .................................................................................................. 3 1.4 Structure of the thesis............................................................................................ 4 1.5 Delimitations .......................................................................................................... 4 2 Definition and Planning Process of the Marketing Strategy .......................................... 5 2.1 Definition of the marketing strategy....................................................................... 5 2.2 Marketing Strategy Planning Process ................................................................... 5 2.2.1 Identifying the company’s mission .................................................................... 6 2.2.2 Situation Analysis .............................................................................................. 6 2.2.3 Marketing plan ................................................................................................... 7 2.2.4 Developing marketing mix decisions ................................................................. 7 2.2.5 Implementation and control ............................................................................... 8 3 Situation Analysis Tools ............................................................................................... 10 3.1 PEST Analysis ..................................................................................................... 10 3.2 Porter’s Five Forces Analysis .............................................................................. 10 3.3 SWOT Analysis.................................................................................................... 12 4 Target market of the case company ............................................................................ 14 5 PEST Analysis of the case company ........................................................................... 15 5.1 Political factors..................................................................................................... 15 5.2 Economic Factors ................................................................................................ 15 5.3 Social Factors ...................................................................................................... 17 5.4 Technological Factors ......................................................................................... 17 6 Competition Analysis of the case company ................................................................. 19 6.1 Direct Competitors ............................................................................................... 20 6.2 Indirect Competitors ............................................................................................ 21 6.3 Porter’s Five Forces Analysis .............................................................................. 22 6.3.1 Competition in the industry .............................................................................. 22 6.3.2 Potential of new entrants into the industry ...................................................... 22 6.3.3 Power of suppliers ........................................................................................... 23 6.3.4 Power of customers ......................................................................................... 23 6.3.5 Threat of substitute products ........................................................................... 23 6.4 Summary.............................................................................................................. 23 7 Conducting a survey .................................................................................................... 24 7.1 Results of the survey: .......................................................................................... 24 8 SWOT Analysis of the case company ......................................................................... 27 9 Marketing Mix of the case company ............................................................................ 29 9.1 Product................................................................................................................. 30 9.2 Price ..................................................................................................................... 30 9.3 Place .................................................................................................................... 31 9.4 Promotion ............................................................................................................ 31 9.5 People .................................................................................................................. 32 9.6 Process ................................................................................................................ 33 9.7 Physical Evidence ............................................................................................... 33 10 Conclusion .................................................................................................................... 34 References .......................................................................................................................... 35 Appendices Appendix 1. Interview questions with an owner of the restaurant Kinza Appendix 2. Questions and results of the online survey 1 1 Introduction Lately, restaurant business in Russia was developing with significant pace. Wealth of the population is growing and accordingly is growing a number of potential customers for restaurants. People are visiting restaurants on special occasions, such as celebrations, coming for lunch during the week, meet with business partners, spending time with friends etc. Restaurants are not perceived as something special and luxurious anymore, they are part of our daily life now. The arising of a demand leads to a higher number of those who are ready to meet the demand and offer their service. A lot of new restaurants are opening every year creating a higher competition level on a market. These factors forcing restaurants to act accordingly. Nowadays it is not enough to just serve food, but also to provide a high-level service and create an experience. (Andreeva 2017.) In 2020, restaurant business, as many others faced a very serious challenge caused by COVID-19 epidemic and restrictions that was implemented during the time of it. Restaurants were closed for a continuous period of time, which of course have led to financial loses. In addition to that, the new restrictions on number of customers and working hours have been applied. But those are only the direct factors that influenced the industry. In addition to that, indirect factors have to be taken into consideration, such as decreasing income of the population and increase of the awareness of people to be in crowded places. (Meduza 2020.) So now it is significantly important to create the marketing strategy that will help to overcome the obstacles and not only keep the business profitable but also to increase the profit and loyalty of customers. Marketing strategy is a long-term, forward-looking approach and an overall game plan of any organization or any business with the fundamental goal of achieving a sustainable competitive advantage by understanding the needs and wants of customers. (Baker 2008). Revising the current marketing activities and implementing new strategy can help the company to overcome current obstacles, improve the service and grow the business. Marketing breathes life into the restaurant. Well-planned and conducted marketing will attract visitors to the restaurant. And likely, then they will come back again. Marketing will help to achieve such a state of things that visitors will be satisfied with the company and will bring profit to its owners. (Shock et al. 2003.) It's not enough just to be good nowadays. It is necessary to show the superiority. If the customer who visits the restaurant think that it was “good”, he will probably never come back. The reason is that there are many other good restaurants. But if a customer after a 2 visit describes it as “excellent” it is very likely that he will not only return himself, but also tell other people about how good his visit was. (Shock et al. 2003.) 1.1 Objectives