MP Part B Completed111

PART B MARKETING STRATEGIES
Uyen Phan 43340516 | Wendi Jiang 43340927 | Ai Nakauchi 43084472 | William Humble 43176461
TABLE OF CONTENTS
1.0 2.0 3.0 Key issues Branding Marketing Mix Strategies 3.1. Product 3.2. Price 3.3. Distribution 3.4. Promotion 4.0 Action Plan 4.1. Budgets 4.1.1. Launch Budget 4.1.2. First Year Budget 4.1.3. Year Two and Three Budgets 5.0 Controls and Contingencies 5.1. Social orientated Metrics 5.1.1. Online Websites 5.1.2. Social Media 5.1.3. Coupons 5.2. Financial Metrics 5.2.1. Financial Statement Records 6.0 7.0 8.0 Conclusion Appendices Reference list 3 4 5 5 6 7 7 9 12 12 13 14 16 16 16 16 17 17 17 19 20 25
MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies
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1.0 Key issues As analyzed in the first part of the marketing plan, the V.J.C Restaurant is facing a number of issues that place a great impact on the operations and growth of the business. It is thus important for the managers to identify and understand these key issues for planning the best strategies. This part of the marketing plan focuses on the strategies that the managers of the V.J.C will adopt to deliver excellent customer services and generate as high as possible outcomes. Firstly, the SWOT Analysis shows that the combination of three recipes of Vietnamese, Japanese and Chinese food is a competitive advantage, but at the same time, a risk to the restaurant. Diners in Brisbane, especially in West End, are familiar with Asian foods as well as mixed restaurants. Therefore, when the V.J.C enters in this market, we definitely benefit from a strong customer base and easily gain loyalty customers. Nevertheless, a great number of existing Asian restaurants in West End create a relatively harsh trading environment for the V.J.C. Consequently, for the business to compete well, the managers must adopt additional marketing support and strengthen training programs, which lead to high production costs. Secondly, the existence of various Asian restaurants in West End is a threat to the V.J.C. As offered more eating choices, diners will easily change their interests, which results in unstable customer behavior and makes it harder for the V.J.C to manage. In addition, the identical characteristic of several products in the V.J.C to those in other Asian restaurants causes customers to be more sensitive of prices rather than the quality. This is a major difficulty that the V.J.C has to tackle with when brand differentiation plans are implemented.
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The following marketing plan will outline strategies on branding, marketing mix, budgets for a three year period and contingency programs. These strategies are expected to help the V.J.C make the best use of its strengths and opportunities and overcome its weaknesses and threats. 2.0 Branding As Pederson (2004) stated, branding provides a distinctive picture and association positioned in the mind of consumers of an object (product, service) or a subject (person, institution). Thereby, a brand is of importance in creating imaginations and directing behavior patterns among customers and consumers. Regarding the V.J.C restaurant, the concept of the first mixed Asian serving Vietnamese, Japanese and Chinese foods is clearly presented in the logo below:
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As shown in the logo, most of the iconic features of the three countries are easily recognized. In the center stands out the red round which represents the theme color of the flags, while the yellow star implies the golden quality of meals offered by the V.J.C. Other details such as bamboos and the yellow herb reveal the original Asian taste and flavor to the customers. In general, the logo is designed to emphasize the new style of dining that the V.J.C proudly present to consumers. 3.0 Marketing Mix Strategies The following marketing mix strategies will introduce the details of the products/services offered by VJC restaurant and the strategies of its operation. It consists of four parts: product, price, distribution, and promotion. 3.1. Product The core concept of our products will be the authentic Vietnamese, Japanese, and Chinese foods cooked by qualified chefs who are familiar with the local taste of Asian cuisines. The menu will include entres, main dishes, desserts, and drinks. We also provide different types of offering such as set menu, individual orders, and takeaway services to meet with various customers needs. As one of the examples of our product range, our main dishes will include Japanese tempura udon, which is a soup noodle with deep-fried vegetables and seafood combination. We will also offer Japanese tempura udon with the variety of deep fried vegetables for special dietary needs. The figure below shows the image of the cuisine.
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Figure1. Japanese Tempura Udon Augmented feature will include a beautiful decoration of the cuisines delivering the beauty of Asian culture. As the figure below describes, our cuisines will be offered with the elaborate decoration so as to amuse the diners. Therefore, the VJC restaurant will be suitable not only as everyday dining place but also for special occasions.
Figure2. Chinese hors doeuvres 3.2. Price We will offer main meals such as Japanese tempura udon and Chinese Crispy fried stuffed duck for around $10 and set menu for $20 including entre, main dish, mini dessert, and drink. As the West End region has significant influx of students and there is a fact that the rent of the region occupies relatively large percentage of the income the residents are earning (Australian Bureau of Statistics, 2011), we need to offer meals in reasonable price. Therefore, we will adopt Good-value pricing strategy and
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aim to offer just the right combination of quality and good service at a fair price. It can be achieved by building an affiliation with the Asian food retailers to be provided with high quality food resources in cheaper price. 3.3. Distribution The VJC Restaurant is located in West End, which is close to the Brisbane CBD as well as some other suburbs. As West End region is already well known for diverse dining opportunities, it is estimated that many people will come to West End to dine out. Although certain level of competition will be assumed in the region, VJC Restaurant can utilize its competitive advantage i.e. unique characteristic of providing three different Asian cuisines to differentiate products and deliver excellent customer services. Moreover, it is easy to access to VJC Restaurant via public transport as well as by car thanks to convenient transportation. Customers can also take a short walk from the CBD, which will take approximately 10 minutes from South Bank. 3.4. Promotion As more and more people come to use Internet to search dining places, the marketing staff of VJC Restaurant will create a website to provide customers with basic information about our restaurant such as our concept and menu with vivid pictures of the meals. In addition, we will take advantage of the most widespread channel Facebook to promote the V.J.C brand widely. Before the opening of the restaurant, we will place posters and banners with details of the website, facebook page and address on. Special discount programs will also be presented on the banners and posters so as to gain frequently visiting customers.
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Furthermore, we will promote several bus advertisements mainly in West End and in Brisbane CBD (Queen Street) to raise awareness of the restaurant. Interestingly, to strengthen promotion activities the marketing staff will provide residents and buyers in supermarkets and on streets with several samples of dishes. By doing this, we can get direct feedback from triers as well as draw their attention to the restaurant. After conducting street promotion with samples, triers will be invited to leave their contact information in the provided contact sheets. Emails will be sent to these triers in appropriate times to inform them of new dishes and new discount programs. Email address of the VJC will be registered properly by reliable business email hosting service to create a professional image for the business. When the restaurant starts making profits on sales, discount programs including special deals, coupons and loyalty cards will be deployed to strengthen customer loyalty and increase customer returns. Taking advantage of online social media, we will introduce those discount campaigns on the facebook page, website and via email. As majority of people will generally get positive impression to the businesses offering coupons (Marketing Charts, 2011), the weekly coupon will be aimed to promote customers loyalty to VJC Restaurant.
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4.0 Action Plan This part of the marketing plan outlines several promotion activities that will be used in the V.J.C restaurant. These promotion channels are expected to get the V.J.C known by a wider range of customers. In addition, through some of the following methods customer evaluation is directly obtained, thereby, we can assess our performance and customer service quality in an effective manner. Furthermore, a detailed cost list is also presented to provide a general budget plan for all promotion activities occurring in the V.J.C restaurant over the next three years.
Tasks Website
Objectives A website will provide potential customers of the V.J.C with detailed information about the restaurant (including address, menu, discount programs, online order, etc.), its products and service. A fanpage on Facebook will be created to raise awareness amongst internet users through like and share status updates of the V.J.C and check-in. In addition, the fanpage will allow customers to leave feedback and recommendations on the timeline, with a view to
Time Frame / Responsibilities & Geographic Range Resources The number of views on Created one month Graphic designer. the website increase. before opening. Customers leave more Maintained every 6 feedback and months. recommendations. More online orders are made. The number of likes, Throughout share and check-in operation of increase. V.J.C Many feedback and recommendations are left on the fanpage. Positive evaluation is raised more frequently. the A graphic designer will the take charge of personalizing the Facebook page. A marketing campaign manager will be responsible for updating information and informing special deals
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Success Criteria
Facebook page
Banners and Posters
evaluating and improving the quality products and service. Banners and posters help to raise awareness of the restaurant amongst a widespread scale of customers. By viewing the V.J.C banners / posters repeatedly, potential buyers are not only aware of the existence of the restaurant but also raise their curiosity about what will be served.
to customers. The volume of sales rises by 2 weeks before the A graphic designer will new customers as well as launch day. design the banners and patrons. posters with Facebook The restaurant is increasingly fanpage and website searched online on Facebook links inserted. and website. A marketing manager will decide on the most appropriate locations to place the banners / posters. Bus stop ads are expected to get the V.J.C known by a wider range of customers. The restaurant serves diners not only in West End area but also in nearby suburbs and the CBD. Volume of sales grows. Online viewers and orders increase. More triers come to try food. Word of mouth helps promoting the restaurant. Triers become customers who are willing to pay for dining at V.J.C. More recommendations are made on Facebook and One month before the opening for 4 week periods. 8 signs, 5 in West End, 3 in Brisbane CBD. The graphic designer will design the advertisement. The marketing manager will contact Translink for advertisement installation.
Bus ads
stop Advertisements will be placed on several bus stops across West End. Information about the restaurant will be present in the ad for customers to remember.
Street promotion with samples
Street promotion will be the campaign closest to potential clients. V.J.C marketing staff will bring several dishes and offer to pedestrians for trial. This is to get direct evaluation from triers and save time. Locations: Supermarkets, Queen
2 days before the The kitchen staff will be opening. responsible for making high quality and hygienic food. The marketing staff will bring the food to pedestrians. Also, they will explain to the triers
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Email
Loyalty cards
Coupons
Street. website. about the ingredients. In the street promotion, the V.J.C Triers are willing and 2 days before the The marketing manager marketing staff will also get voluntary to register their opening, along with will work on updating pedestrians to register their email in email in the database for the street promotion. information and inform the restaurants database. By doing further information. Emails will be sent the marketing staff. this, we can send them emails about whenever new Marketing staff will send the restaurants activities, discounts updates are emails to potential or coupons and get their responses available. customers. faster. In the form of patronage rewards, More loyalty cards are issued. 6 months after the The marketing manager loyalty cards will be issued to Higher volume of customers opening. will produce loyalty customers with high frequency of return. cards and design the dining at V.J.C (5-7 times). This Sales volume generally rises. rewards. method encourages customers to Sales staff will issue return to the restaurant for cards to regular diners benefitting special deals or and draw other discounts, which increases sales customers attention to volume. the cards. In line with street promotion, New customers come to the Expectedly in year 1 The marketing manager. coupons will be offered to V.J.C when sales volume customers, especially non-users. Frequent customers return to grows. The coupons will be available on the restaurant more regularly. the V.J.C website, Facebook page and probably on the newspaper ads. Table 1: The marketing activities will be implemented in the V.J.C restaurant in the first three years.
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4.1 Budget The activities aforementioned will be adopted in the V.J.C restaurant in suitable time periods depending on the trading performance and other external factors such as seasons and customer preferences. For the action plan to be implemented successfully, it is divided into three budgets; the launch, year one and years two and three budgets. 4.1.1 Launch Budget Capital: $22000 - $26000 At the launching period, most of the activities mentioned above will be carried out to make the best use of the promoting mix in raising awareness of the V.J.C restaurant and attracting as many customers as possible. Therefore, it requires the highest cost of promotion. Promotion Activities Website Timing & Cost Breakdown Domain name: $10 / year Hosting: $25 - $200 / year (depending on traffic & hosting services) Interface design: $1200 - $3500 Images and graphics: $100 Mobile and responsive design: 20% - 30% of the progress price Content creation and insertion: $100 - $150 / page Marketing website online: $750 / month Free Outdoor Vinyl Banners (Gloss or Matte): Size: 48 x 96 Price: $160 / piece (5 pieces) $800 Total expected costs ($) $13000 - $17000 / year
Facebook page Banners / Posters (MegaPrint inc., 2013)
0 $2110
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Bus stop ads
Street promotion samples Email
Crystal Laminate Posters: Size: 36 x 48 Price: $131 / piece (10 pieces) $1310 Installation cost: $250 Rate: $100 / week $400 for four weeks Total cost $650 / sign (8 signs) with Ingredients: $500
$5200
$500
Initial setup: $250 (incl. domain name, registration fees and spam $250 minimizing fees) Including 25 mailboxes and 125GB Storage Total Cost $21060 - $25060 Table 2: The launch budget for the V.J.C restaurant.
4.1.2 First Year Budget Capital: $21,000 In the first year of the trading, a wide variety of promotion activities will continuously be implemented so as to stimulate customer loyalty and increase sales volumes. However, street promotion with samples will be discontinued while bus stop ads, banners and posters will be strengthened. Meanwhile, online promotion channels including website and Facebook fanpage will be strengthened so as to encourage patronage.
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Promotion Activities Website Facebook Banners / Posters
Bus stop ads
Email Coupons (15% off for any bill over $50)
Cost Breakdown Continued at no extra cost Free After opening, banners and posters will be continually placed every 3 months (four times in the first year). Outdoor Vinyl Banners (Gloss or Matte): 5 pieces x $160 x 4 times $3200 Crystal Laminate Posters: 10 pieces x $131 x 4 times $5240 Detailed costs: see Table 2 During the first phase, bus stop ads will be placed every three months (four times a year) for four - week periods. 2 signs / time Monthly emails $15 / month Expected $10 discount per coupon Estimated 700 customers to use per year Total cost:
Total expected cost ($) 0 0 $8440
$5200
$180 $7,000 $20,820
4.1.3 Years Two and Three Budget Capital: 25,000 The budget for year two and three will see a concentration on improving customer service quality through offering coupons and issuing loyalty cards. Costs of promotion during this phase will be reduced remarkably as the restaurant gains reputation and obtains highly frequent customers.
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Promotion Activities Website (executionists, 2013) Facebook fanpage Banners / Posters
Timing & Cost Breakdown Maintenance cost: $250 / month Free Banners and posters will be continually placed every 6 months (four times in the years two and three). Outdoor Vinyl Banners (Gloss or Matte): 4 pieces x $160 x 4 times $2560 Crystal Laminate Posters: 10 pieces x $131 x 4 times $5240 Monthly emails $15 / month Expected $15 discount per coupon Estimated 700 customer Initiated at the start day of year two and ended at the end of year three. Estimated 300 customers will use cards. Average cost of $5 per entre, $5 per drink. Total cost:
Total expected cost ($) $3000 0 $7800
Email Coupons (20% off for any bill over $50) Loyal cards
$180 $10,500 $3000
$24,480
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5.0 Control & Contingencies It is of the utmost importance for a business to be aware of how well it performs in the market. Hence, it is necessary to implement a control and contingency program to monitor the operation of business. Generally, VJC settled its benchmarks by measuring both social-oriented metrics and financial metrics. In case of urgency, these methods can help the managers recognize crisis promptly and get through difficulties as soon as possible. 5.1 Social-oriented metrics: 5.1.1 Online Websites VJC Restaurant website will be designed and listed in some popular review websites such as Urbanspoon.com or Yelp with a view to providing our consumers with details and comments about the restaurant. This website is a platform where customers can not only share their dining experiences in the VJC but also make recommendations for new viewers (Urbanspoon 2013). Generally speaking, the website plays as a direct channel to get feedback from customers. Even in case negative comments are left on the website, it is still a good way for online service staff to record them, report to the manager and figure out a better method to improve customer service. As a result, the quantity and frequency of Internet users browsing the website can be tallied up in order to spread the popularity of VJC Restaurant compared to competitors. 5.1.2 Social Media Social media is a cost effective and timely measure that can be used to promote a business to a wider range of audience. Facebook is one of the most significant channels to monitor the success of marketing activities. Facebook is the world's largest social
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network, with more than 900 million users around the world (Mashable 2013). It provides truth front-line materials to the public. As it is a website with the majority of worldwide users, it can be conducted as a influential social media. Moreover, business can easily manage marketing programs and product evalutation through the shares and likes showed. 5.1.3 Coupons Nowadays, a deal-of-the-day recommendation service becomes increasingly popular among consumers. Coupon is such a middleman method to promote citys restaurants and stores (Paul 2013). The way of monitoring the operation of business is relatively similar to those has been aforementioned, such as measuring the quantity of people browse the VJC Restaurant on coupon, or take record on those people who carry coupons to consume. If our social-oriented metrics are not met, VJC Restaurants control and contingency plans will concentrate on adjusting its operation and management by conducting public survey. We will also gather online comments and set up a scheme of improvement which suits customers interests and expectations. This plan will be implemented effectively in the VJC, especially when a downward trend of performance or negative evaluation on the website is seen. 5.2 Financial metrics: 5.2.1 Financial Statement Records Another way to evaluate business performance is through records extracted from financial statements by comparing revenue, expense and net profit at the end of each week. The main source of information an income statement provides is profit. It also
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reveals the different costs and expenses a company has to drive revenue (Alex 2013). If profits do not reach our budget, the control and contingency plans will start to be used immediately to help VJC Restaurant overcome crisis.
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6.0 Conclusion This marketing plan of VJC Restaurant concentrates on providing a clear marketing strategy in order to achieve higher success. As several key issues are already listed at the very beginning of the marketing plan, it can be concluded that VJC must contribute great effort to survive in such a competitive environment. Hence, an effective branding strategy and marketing mix strategies are established to make our business outstanding from existing competitors. In addition, the action plan outlines a wide range of promotion activities that will be adopted in the V.J.C restaurant, which is expected to get the V.J.C known by a wider range of customers to increase market shares. By making a staged budget, the action plan can be implemented in appropriate periods of time and in suitable circumstances. Moreover, the control and contingency plan has been regulated to monitor the running of business in case operating crisis happens, and at the same time, it ensures the frequent and sincere communication between business and customers. Though VJC Restaurant is in a highly competitive environment, it is attractive to customers not only because of its combined-Asian-cultural concept, tasty cuisines, and a cozy atmosphere, but also the quality of service. We are very confident that this marketing plan can lead VJC to great success in future operation.
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7.0 Appendices
Appendix 1: A serving bowl of noodles (size 6) Source: http://www.ikea.com/us/en/catalog/products/80133124/
MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies Page 20
Appendix 2: A serving bowl of rice (Diameter: 6 ", Height: 2 ") Source: http://www.ikea.com/ca/en/catalog/categories/departments/eating/18864/
Appendix 3: Coupon Sample of Steakhouse 2011 Source: http://www.restaurantsingatlinburg.com/discount_coupons.html
Appendix 4: Restaurant Poster Sample Mings Asian Fusion Source: http://www.signazon.com/asian-restaurant-poster/
Appendix 5: Chart of purchasing, spending of online coupon users 2011 Source: http://www.marketingcharts.com/wp/direct/online-coupon-users-provevaluable-customers-19582/
8.0 Reference Alex, S 2013, What is the Function of an Income Statement?, Online resources, viewed 6 October 2013, <http://www.ehow.com/info_12013857_functionincome-statement.html>.
Australian Bureau of Statistics 2011, 2011 Census QuickStats- West End, viewed 10 October 2013, <http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat /SSC31746>. Executionists 2013, How Much Does A Small Business Website Cost in 2013?, viewed 01 October 2013, <http://www.executionists.com/blog/website-design/costto-build-websites-2013/>. MarketingCharts 2011, Online coupon users prove valuable customers, viewed 10 October 2013, <http://www.marketingcharts.com/wp/direct/online-coupon-users-prove-valuablecustomers-19582/>. Mashable, 2013, Facebook, Online resources, viewed 24 September 2013, <http://mashable.com/category/facebook/>.
Megaprint Inc. 2013, Large Format Printing Pricing and Sizing, viewed 01 October 2013, <http://www.megaprint.com/prices-sizes-prints.php>. Paul, G 2013, Groupon: What Is 'Groupon'? How Does Groupon Work, Online resources, viewed 6 October 2013, <http://netforbeginners.about.com/od/guidesfavorites/f/What-Is-GrouponHow-Does-Groupon-Work.htm>.
Pederson, LH 2004, Why is branding so important, FIBA Assist Magazine, pp. 4748, viewed 01 October 2013, <http://www.fiba.com/asp_includes/download.asp?file_id=406>. Urbanspoon, 2013, Frequently Asked Questions, Online resources, viewed 24 September 2013, <http://www.urbanspoon.com/faq>.

MP Part B Completed111

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PART B MARKETING STRATEGIES

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

Banners and Posters

Street promotion with samples

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

Facebook page Banners / Posters (MegaPrint inc., 2013)

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

Bus stop ads

Street promotion samples Email

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

Promotion Activities Website Facebook Banners / Posters

Bus stop ads

Email Coupons (15% off for any bill over $50)

Total expected cost ($) 0 0 $8440

$180 $7,000 $20,820

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

Promotion Activities Website (executionists, 2013) Facebook fanpage Banners / Posters

Total expected cost ($) $3000 0 $7800

$180 $10,500 $3000

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

MKTG 1501 - Foundations of Marketing | Marketing Plan Part B | Marketing Strategies

Appendix 1: A serving bowl of noodles (size 6) Source: http://www.ikea.com/us/en/catalog/products/80133124/

Appendix 3: Coupon Sample of Steakhouse 2011 Source: http://www.restaurantsingatlinburg.com/discount_coupons.html

Appendix 4: Restaurant Poster Sample Mings Asian Fusion Source: http://www.signazon.com/asian-restaurant-poster/

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