Executive Summary
The success of a business plan depends on the ability to carry out explicit research on applicability, sustainability, and proper market penetration. The main elements of a comprehensive marketing plan include a marketing approach, personnel planning, strategic operations, and positioning statement. In relation to the proposed K&M Pizza establishment, the proposed marketing plan will encompass a penetration strategy into the region of Nova Scotia.
This business plan attempts to address the above elements to successfully establish the K&M Pizza restaurant within the location of 263 Townsend Street, Nova Scotia. The business plan will target the customers in the low economic segment and corporate bodies around the region of Nova Scotia and beyond. The restaurant will have competitive prices besides attractive and delicious eating spaces. Since the restaurant targets to introduce unique ingredients in its pizza brands, it will face no competition since none of the potential competitors in the region of Nova Scotia offers similar services to customers. This aspect will form the primary competitive advantage of the restaurant as it seeks to penetrate the Nova Scotia market as an outstanding pizza establishment.
Background statement
The K&M Pizza Restaurant will be packaged as a unique establishment within the region of Nova Scotia. The restaurant will specialise in pizza and soft drinks to attract the targeted customers. The business will operate on the foundation of quality, affordability, and quick services to customers. Since the K&M Pizza Restaurant is the first establishment of such a kind in this type of business, the company will reap benefit derived from being the first mover of customised pizza services.
Currently, most businesses in the region do not specialise on pizza. As a result, there is a steady demand for customised pizza to serve the Nova Scotia market. The customers will pay through cash, Visa and MasterCard. The pizza will be of the highest quality and yet still very affordable. The restaurant’s price range will be from five to twenty dollars per pizza. The prices will increase for the corporate segment, depending on the number of pizzas ordered at one time. The main services at the restaurant will be ‘Walk-In Welcome’, ‘Good for Groups’, ‘Take Out’, ‘Delivery’ and ‘Planning a party’.
Mission statement
The K&M Pizza Restaurant’s mission is to be the most preferred centre with high-quality pizzas that are affordable. The mission of the business is to be the market leader and a friendly partner to clients who are looking for quality pizza. The company is interested in growing different brands out of the current pizza products. Besides, the company has plans for rolling out other stores. Product marketing will be rolled out through social and traditional media. In the next five years, the company targets to increase product visibility, distributing, and diversification in the Nova Scotia market. The mission statement of the K&M Pizza Restaurant is summarised as;
K&M Pizza Restaurant is your ideal eatery that sells customized pizza. The services are certified as clean and ideal to individual customers and families looking forward to spending a good time while enjoying a variety of pizza brands. Your satisfaction is our pride. Come and have a share of the unforgettable experience.
Business objectives
Short term objectives
- The first objective of K&M Pizza Restaurant is to create a stable customer base by ensuring that it serves at least 150 customers at a time continually for the next two years. This objective will be the basis for testing the ability of the restaurant to penetrate the Nova Scotia market.
- The second objective is to create the corporate customer segment by signing memorandum of understanding with private and public institutions across the region of Nova Scotia.
- The K&M Pizza Restaurant also intend to lay down strategies that will include travelling customers as a part of the target market.
Long term objectives
- The K&M Pizza Restaurant has a long term objective of expanding its current menu in order to include other pizza compliment meals and drinks after two years of a successful entry in the Nova Scotia region.
- The K&M Pizza Restaurant will also widen its scope of operations by opening four more branches and stores in regions adjacent to Nova Scotia after three years of operations in the current location.
- The K&M Pizza Restaurant will lay down strategies to ensure that it takes the position of the market leader through initiating mobile vending services for outside catering to customers within Nova Scotia and regions adjacent to the current location. This objective will be implemented at the beginning of the third year of operations.
Marketing approach
Target market
The K&M Pizza Restaurant will target customers within the low economic bracket by offering low-priced pizza. The rationale for targeting this segment was informed by the statistics that this class of customers is the majority in the Nova Scotia region.
Product features and benefits
Through product differentiation, the establishment will reap maximum benefits through packaging the pizza products as the first of its kind in the targeted region. It means that the company will gain from assuming the position of being the first mover of customised pizza brands. Besides, the company will gain from packaging its pizza brands as healthy since customers want to identify themselves with what is ideal. In the end, the company will gain from economies of scale as more customers embrace the affordable and high quality pizza.
Place
In order for the K&M Pizza Restaurant to effectively penetrate the appropriate market, the establishment will procure services of three automobile operators that are mounted with public address systems to publicize the menu of the restaurant across the targeted region. The automobiles will also be branded with images of different pizza brands that the restaurant sells. Specifically, the vehicles will be strategically located in areas perceived as experiencing low product visibility within Nova Scotia.
During these promotions, the benefits of the pizza brands will be presented to the clients. This will be achieved owing to a team of five contracted marketers who will be acting on behalf of the restaurant.
Pricing
The K&M Pizza Restaurant will endeavour to make the pizza products more affordable than the prices offered by competitors. The ideal pricing strategy for the restaurant will be ‘good, better, best’ prices in addition to different price cuts such as promotional discounts to ensure that customers perceive these prices as very friendly. As a result, the K&M Pizza Restaurant will be in a position to draw clients from different segments of customers. It will be possible since the ‘good, better, best’ pricing strategy is accommodative to different customer segments.
Product promotion
The product promotion strategy for the restaurant will be packaged around the principles of emotional appeal through traditional and modern media. Specifically, a larger percentage of promotions will be done through social media since it is affordable and the majority of targeted customers have access to it. In the end, the restaurant will become very visible within the targeted region since social media and other forms of promotion media will increase awareness among the customers. In the proposed billboards as a part of traditional media, the restaurant will contract a local sports celebrity to be the brand ambassador in order to win the support of customers who would want to associate with the excellence of such a celebrity. The promotion plan is summarised in the table below.
Social media advertising
Since social media is currently common in the online business arena, it is important for the restaurant to use Twitter and Facebook appropriately to promote its pizza culture among young clients. These platforms are ideal in building a strong customer base for the K&M Pizza Restaurant products in the region of Nova Scotia. Owing to the direct interaction with customers through these platforms, the restaurant will not only penetrate the market, but create room for menu improvements on the basis of customer feedback.
In the end, the restaurant will be able to track different perceptions of customers in terms of prices, quality, variety, and quantity from different live feedbacks. The Twitter and Facebook fun pages will help the business to reach the clients within the shortest time possible at minimal or no cost, depending on the way each of the platforms is modified.
Selection of location
The business will be located at 263 Townsend Street, Sydney, Nova Scotia. It is along the main street. The location is surrounded by commercial buildings and a nearby college. The rationale for choosing this location was informed by the high number of potential clients within the area.
Physical facilities
The location is well served with physical amenities such as electricity, proper transport network, and piped water system. There is a recreational park adjacent to the business location. There are several governmental and private institutions within a radius of one kilometre from the location of the pizza restaurant.
Plan for personnel
The personnel for the business will consist of a director, supervisor, chef, service attendees, and a marketing team. The job descriptions are summarised below.
Job descriptions
Director
- Managing the daily operation of the K&M Pizza Restaurant business.
- Providing the administrative roles.
- Planning the duties and responsibilities of the employees.
- Tracking the performance of the employees against the set targets.
Supervisor
- Managing the daily operation of the K&M Pizza Restaurant business.
- Providing the administrative roles.
- Planning the duties and responsibilities of the employees.
- Tracking the performance of the employees against the set targets.
- Briefing the directors of the concerns and success of each stage of the business.
Chef
- Generating different recipes for cooking different pizza brands.
- Cooking the meals and cuisines as requested by the customers.
- Ensuring the cleanliness of the restaurant.
- Planning the duties and responsibilities within the kitchen environment.
- Offering creativity in food decoration.
Restaurant Attendee
- Taking orders from the customers.
- Performing public relations exercise with the customers.
- Serving the customers.
- Registering the complains of the customers.
- Providing the administrative roles.
- Briefing the supervisor of the concerns and success of each stage of the business.
Marketing Personnel
- Providing the administrative roles.
- Planning the duties and responsibilities within the marketing plans.
- Marketing the products of the business.
Employee benefits
Pay satisfaction is a central element of employee attraction and retention. The aspect of equity will be a vital element in the pay satisfaction matrix for the K&M Pizza Restaurant. Equity aspect requires employees to be evaluated through the comparison of the ratio of their inputs and outputs with the ratio of input and output of other employees. The inputs take different forms, for instance, job contribution, extra role behaviour exhibited by the employee, and personal contributions.
Employees of the K&M Pizza Restaurant will be given all the necessary medical benefits depending on the position and remuneration of each job group in the restaurant. The aspect of equity will be entrenched in different remuneration standards that are dependent on experience, technical skills, and acceptable labour laws. The restaurant will also endeavour to empower the employees through creation of personnel shares given to the staff on the basis of the results on annual performance contract. The compensations will also comprise attractive packages for day-offs, direct employment benefits, and annual earnings.
Training of employees
The employees will be subjected to continuous training after every three months to ensure that quality assurance is maintained in the establishment. The proposed training module is summarised in the table below.
Summary of the employee training module.
Compensation
The K&M Pizza Restaurant has designed a comprehensive compensation plan through monetary gains and promotion. The compensation plan for the K&M Pizza Restaurant inspires optimal performance through job satisfaction since the total annual compensation and different benefits are relatively attractive. A satisfied employee, in terms of pay, may generally perform his duties efficiently and competently. Therefore, the restaurant can effectively commit to compliance and adoption of standard business practices since the benefits outweighs the cost implications for the employees. The compensation plan is summarised in the table below.