The marketing plan gives an in-depth analysis of all the marketing strategies that will be implemented for the product. This plan gives a detailed description about the marketing strategies of “xyz restaurant”. The restaurant operates in the United States and it is located in all the major states.
Certain brands of the restaurant are quite recognized and they are targeted to a niche market. The restaurant wants to follow an expansion strategy and for this reason they are entering the subcontinent market. The restaurant has decided to enter the Indian market and target a niche in that market.
Marketing Strategy
Mission
The mission of “XYZ restaurant” is to provide the cleanest and the healthiest food to the people of New York. Besides that the restaurant will dedicate 1% of their earnings in social work that is devoted for the betterment of children.
Product Offering
The restaurant offers healthy burgers and sandwiches for people who are health conscious. The restaurant provides consultancy services for the people and it allows them to pick the meal that’s best for their health. Olive oil is used in cooking all the products and no artificial ingredients are used in any offering.
Marketing Objectives
The marketing objectives of the restaurant are:
- To acquire 35% market share in New York and at least 25% share in India.
- To position the company in a way that taste, quality and customers are the essential ingredients of the restaurant.
- The brand acquires the USP of being the cleanest restaurant brand in the world.
Financial Objectives
The financial objectives of the restaurant are:
- To increase the sales by 20% in the first month of operations.
- To achieve at least break even in India.
Target Markets
The restaurant is located near the New York University that’s why its major targeted chunk is the students of the New York University. Since consumer preferences are changing that’s why youngsters are getting health conscious day by day. Therefore, this restaurant would fulfill their needs and targets two majors segments. One is the University students and the other one are the people who go to gyms and are very choosy in their diet.
Positioning
The positioning of “XYZ restaurant” is quite simple and straight. The brand is a healthy alternative to junk food and fast food and top notch standards are maintained in all the aspects that are related to health. The ambiance of the restaurant gives a cleaner touch and the food is healthy yet tasty. Customers have the choice of selecting every ingredient of the meal which they have ordered.
Strategies
The core strategy of the restaurant is simple and the ultimate goal is to stick towards the mission of the restaurant. The employees of the restaurant are advised to answer three questions at the end of every week. These questions are:
- What our customers think of us?
- What’s our main purpose?
- What can we do to develop a returning attitude in our customers?
Customers are always considered to be an asset for every organization. Therefore implementing such strategies that would satisfy the needs of the customers are essential for the restaurant. A forward looking strategy must be formulated in such a way that both the customers and the employees are happy with the company. If employees are not happy then they would transform their pressures and negative feelings to the customers. A sense of entrepreneurship must be developed within the employees and they believe that it’s our own restaurant. Similarly, decision making processes must be developed with the help of all the employees.
Marketing Mix
The main focus of the marketing mix is customers and employees. Promotional programs like advertising on television, newspaper, magazines should be opted. Moreover, organizing events and activating the brand through activities like shows, concert etc can also be an effective strategy.
Foreign Market Analysis
XYZ restaurant is planning to expand its operations and they have opted to become an international organization. The place they have selected is India therefore they have to acquire all the in-depth knowledge about the country. Demographics, psychographics and consumer preferences must be kept in mind. XYZ restaurant must establish a new target market and the target audience and then they would focus on that. Furthermore, they have to take care about the environment of the country. The restaurant has decided to enter the Indian market therefore it must be kept in mind that India is a nationalist country and foreign organizations face a certain level of difficulty when they enter in a country like India. The people are taste oriented but they are price conscious too.
Foreign Market Environment
The foreign market environment possesses certain characteristics these are:
- Technological
- Political
- Legal
- Cultural
Technological Environment
The technological environment is an important factor when entering into another country. Since the restaurant is entering into a developing country therefore it must be enriched with all the technological aspects (Kotler, 2006). However, when placing machines like dispensers, vendors, fountains consumer preferences must be kept in mind. Moreover target markets of the restaurant are people belonging to rich classes that are why all the necessary items must be technologically updated.
Political Environment
The political environment of India is not stable that’s why the restaurant must have a backup plan. Similarly, the entire situation of the subcontinent has the tendency to change drastically therefore XYZ restaurant must possess a viable strategy to face the circumstances.
Legal Environment
XYZ restaurant must be well aware about the rules and regulations of the country and they must know issues related to taxes, jurisdiction etc.
Cultural Environment
In order to get an in-depth analysis of the target market, XYZ restaurant must evaluate the culture of the entering country. In the case of India the restaurant must take utmost care because India is quite rich in culture and people from nearly all the religions live in India.
Opportunities and threats for the restaurant
When entering into a new market every organization faces certain threats and opportunities. The biggest opportunity for XYZ restaurant is that market preferences are changing and people are diverting towards healthy food and food that fits their diet. That’s why entering into a new market can be beneficial at this time and they can target the upper class of India which comprises of industrialists, individuals from show business and cricketers. However, there are certain threats that can cause serious problems to the restaurant. The biggest threat is terrorism in the subcontinent and people avoid going to a restaurant because of that. Similarly, local restaurants can pose serious threats to the business and they can be the barriers to entry. Substitute products can be introduced by local manufactures and this can harm the brand (Kotabe & Helson, 2003).
Market Entry Method
Since XYZ restaurant has decided to enter the Indian market therefore they can opt for different entry methods. The different entry methods are licensing, franchising, joint ventures etc. The best entry strategy is the joint venture strategy in the case of XYZ restaurant. They must mutually collaborate with another local manufacture and enter into India. This joint venturing would give a localized touch to an international brand and people become more acceptable in this situation. The biggest advantage of this strategy is that it gives a local touch and the biggest disadvantage is that the company has to adopt strategies of the local vendors to fulfill their objectives (Keegan, 2001).
Product Strategy
Product Strategy is the most important function of every organization. The xyz restaurant must develop an attractive product offering which will cater the needs of the Indian market. The restaurant is operating in New York and the offerings are appreciated by the people. People loved the way the restaurant responded to all the health issues and they appreciated the product line. The restaurant is currently targeting a niche in the New York and that’s why they are expanding their operations to India. In India they are first planning to enter the financial capital Mumbai and then they would expand to New Delhi and Goa. The preferences of the Indian people must be kept in mind and when entering into different states of India because a product strategy is the most important element of the organizational strategy (Karol, 2007).
Vegetarian touch
The product offerings of XYZ restaurant are sandwiches, burgers, salads and beers. The must have a vegetarian touch in every product because people in India are mostly vegetarians and they prefer vegetables. Since, it’s a diet oriented and health conscious restaurant therefore offering vegetarian food is quite an easy job. The entire product offering would be comprised of vegetables and fruits. Moreover, continental and local salads would be offered to the people. Besides offering vegetables and fruits an instructor can refer a best combination of meal to the customers. Moreover, customers can prepare their own meal and privileged customers have to right to enter the kitchen and develop their own meals.
Local Touch
The restaurant must have a local touch in it. The offerings should be tailor made according to the preferences of Indian people. Indian people like spicy food therefore products like spicy barbecue sandwich, spicy vegetable burgers should be included in the menu. Some product offerings can be of similar to New York but most of them must be changed because the restaurant has to adopt the local nature of India. Items like curry, pulses should be presented in a healthier manner. The names of the products should give a local touch because XYZ restaurant has joint ventured its entry that’s why the names of certain products must depict that’s it’s a international chain of restaurant with a local touch in it.
Focusing on the Niche
Since the organization focuses on a niche market therefore items like red wine and white wine must be offered in the menu. People that belong to the upper class prefer a glass of wine after having their meal. Therefore, since the restaurant is targeting to a niche and there differential element of selling is health and hygiene that’s why they can offer wine with lunch or dinner. The wealthy members of the society would definitely respond positively on this strategy. Although, people in India are price conscious but they are status conscious too.
Pricing Strategy
Since an international chain is opening a chain of restaurants in India that’s why the prices of the offered products are high as compared to other restaurants. There are certain reasons for this and these reasons are listed below:
Branding healthy food
Just by naming and using the name of health in the restaurants offering the restaurant can easily charge premium prices (Baker, 2006). Through proper branding and presenting techniques a simple meal can be charged extremely high. This strategy is the best possible strategy for XYZ restaurants because they are targeting a niche market in India. Since the niche market comprises of people who are mill owners, industrialists, movie stars etc.
Posh location
XYZ restaurant selected major cities of India in order to open up their chain of restaurants. Posh locations of Goa, New Delhi and Mumbai re selected that’s why they are opting for premium pricing strategy. Rich people live in posh areas so the point is simple that restaurant can charge more prices than any other restaurant just because of the claim that they offer the healthiest food in town and the food is prepared with a local touch in it.
Expensive ingredients and fabulous ambience
One of the reasons to choose a premium pricing policy is the use of expensive and imported ingredients. The chefs use olive oil in every meal and that’s one of the differentiating factors and a point why the restaurant is charging premium prices. The ambience of the restaurant depicts that it’s an expensive one.
Privileged cards
XYZ restaurant can charge premium prices by selling privileged cards to the customers. This strategy would generate more profit and customers can reserve their seats in the restaurants. The strategy can benefit the firm both in the short and in the long run.
Trained chefs having international exposure
The restaurant can communicate a difference in such a way that XYZ is one of the restaurants in India that possesses trained chefs and all the chefs whether local or international all of them have international exposure. That’s why they can develop recipes that other chefs can’t prepare.
Training classes for customer
XYZ restaurants can follow the same strategy of the New York that they can offer cooking classes to customers on Sundays and on other holidays. This might be a new phenomenon for the people of India and every individual can pay more money for this.
USP
The unique selling proposition of the company is that we sell the cleanest food in the world and for that reason they can charge more prices. A differential characteristic can be sold at a higher price (Nagle & Hogan, 2005).
Works Cited
Baker, R. (2006). Pricing on Purpose: Creating and Capturing Value. Wiley.
Karol, R. (2007). New Product Development For Dummies. For Dummies.
Keegan, W. (2001). Global Marketing Management. Prentice Hall.
Kotabe, M., & Helson, K. (2003). Global Marketing Management. Wiley.
Kotler, P. (2006). Marketing Management. Prentice Hall.
Nagle, T., & Hogan, J. (2005). The Strategy and Tactics of Pricing: A Guide to Growing More Profitably. Prentice Hall.