Marketing Plan

Marketing Plan

Executive Summary

Introduction

A marketing plan may be a component of a general business plan. A strong marketing strategy is the basis of a properly-written marketing plan. The marketing process takes lots of preparation, time, and money (Garvey, Dismore, & Dismore, 2004). The food industry has continued to grow because of the increased demand in the market and the opportunities for growth. There are numerous opportunities for growth of Chinese restaurants in the food industry. For instance, there is greater innovation that can help the company to offer and produce unique services and products that can meet the demands of customers. There are opportunities for global expansion and new markets that can allow the company to expand its operations. The restaurant is expected to perform well because it is in the foodservice industry that has done extremely well, especially since the introduction of fast food restaurants. Some of the organizations that have done well in the industry include McDonald’s and the Chinese Bistro in U.S.A. For instance, since its development 1948, the McDonald’s has grown from a family business to a worldwide fast food restaurant and has 31,000 locations in 119 nations. Such organizations reward their workers heavily, and this motivates them.

The service’s quality is just as vital as the restaurants beverages’ and foods’ quality. In many instances, service is the most essential aspect in the decisions of customers in relation to where they eat out. No single individual wants to eat at a place that has incompetent or inadequately trained staff and which has no enthusiastic management philosophy. In the foodservice industry, competition is very high and thus, the level of service at any conception must be organized, specialized, on time, and helpful. Over the years, the food and beverage service concept has evolved and currently can be viewed in various distinct environments besides the original pubs and taverns. There are a number of examples of foodservice segments such as receptions, banquet service (both table and regular style), buffets, room service, show room service, drive through service, cafeteria service, fountain service, and cafeteria service. Each form of service provides its distinctive benefits and disadvantages and can be geared towards all meals including breakfast, lunch and dinner. This being the case, therefore, the Chinese Bistro is likely to successfully gain the attention of the market and result in increased productivity and profitability.

The main purpose of this report is to prepare a marketing plan for a Chinese Bistro (restaurant) that expects to start operations in the new future and offer products and services similar to those offered by PF Changs (foods and beverages). The paper presents an executive summary and a brief introduction then goes ahead to present SWOT analysis, then a competition analysis, and finish with the PESTEL analysis of the restaurant. The restaurant plans to offer quality products and services, which is the main concept of the company in order to meet the customers’ demands in the market. This will enhance the success of the business.

  

SWOT Analysis

The main aim of SWOT analysis is to identify the major internal and external variables that are important in attaining the goals and objectives of an organization. This technique classifies vital pieces of information into two major categories. The first category is the internal factors represented by strengths and weakness which are within the organization. The other category is represented by opportunities and threats which are found in the external environment of the organization. The internal factors may be seen as strengths or weaknesses of an organization because they affect the goals of the organization. What may be seen as strengths in relation to one organizational goal may represent weaknesses for other goals. Internal factors include the 4 P’s of marketing and finance, manufacturing capabilities, and personnel of the organization. On the other hand, the external factors may include macroeconomic matters, legislation, changes in technology, changes in the market place, socio-cultural changes, and competitive position (Hamzei & Shobin, 2013). The SWOT analysis of the restaurant is vital since it will analyze the possible internal and external environments of the organization in an attempt to determine whether circumstances are favorable or unfavorable for the operation of the business.

Strengths

  • The present reputation of top notch service and quality for food
  • Unique menu offerings that the Chinese Bistro to transform home delivery of Chinese food
  • Excellent food
  • Value addition of home delivery
  • Pricing power taking into consideration that customers revolt against increases in prices by switching to competing products and services
  • Strong management to help the company reach its potential through the utilization of the company’s strengths and opportunities
  • Asset leverage to allow the organization to utilize their operational assets to expand their operations
  • Financial leverage to allow the company to utilize its balance sheet in order to expand its operations
  • Supply chain to help the Chinese Bistro attain the appropriate resources from its suppliers and distribute to the target customers
  • Cost advantages (lower costs) to increase profitability of the organization
  • Size advantages to lower the company’s risks
  • Customer loyalty and unique products to help in distinguishing the company from its competitors (P.F. Chang’s China Bistro, 2010)

Weaknesses

  • High debt burden that may increase the risk that the Chinese Bistro of going bankrupt
  • High staff turnover that can hurt the ability of the company to compete
  • Lack of sufficient suppliers
  • Low barriers to entry
  • Concentration in a single locality

Opportunities

  • Greater innovation that can help the company to offer and produce unique services and products that can meet the demands of customers
  • Opportunities for international expansion
  • New markets that can allow the company to expand its business operations and diversify its portfolio

Threats

  • Internal and external competition which is difficult to combat since it is stiff. The competition can also lower the profits of the Chinese Bistro since competitors may entice customers to buy their products and services
  • Poor economy that can hurt business operations of the company by reducing the number of potential customers
  • Political risk that can hinder the operations of the company
  • Changes in government rules and regulations that can negatively affect the company’s operations

 

 Porter’s Five Competitive Forces.

Rivalry or competition among existing firms

The Bistro restaurant will be focused on differentiation in order to remain competitive in the industry. This will include unique modern design and décor that will create a high energy, upscale ambiance and non-chain image in a casual location or setting. Economy of scale is an important factor in boosting the business. In many cases, small business organizations in the food industry have been capable of controlling extremely large portions of share in the market because of few exit barriers factors (Shock, Bowen, & Stefanelli, 2003). The restaurant industry has only moderate existing barriers. In most cases, such organizations do not have much specialized machines and equipment. Therefore, this will help in maintaining its position in the industry.

Threat of new entrants

The Bistro restaurant will ensure large economies of scale as this will enable it to position itself among top competitors in the industry. This will allow the company to grow and expand as much as possible. The company will have first mover benefit. This will be achieved through having good relations with some established restaurants and its customer that can be of huge benefits. The threat of new entrants will also be created by legal barriers as there are many regulations and laws including regulation by government authorities and licensing.

Threat of substitute products

Relative price and performance are essential for businesses to ensure that customers do not buy goods from the company’s competitors. The Bistro restaurant will keep the quality of its business in order to match the price that consumers pay for their products and services. Consumer’s willingness to substitute is also a contributory factor to threat of substitute products. Because of the competition level in the restaurant industry, as well as, the number of marketing channels switching manufacturers is relatively easy. The restaurant, therefore, will ensure maximum benefits to its customers in order to prevent switching to other products.

Bargaining power of suppliers

The restaurant will ensure that the bargaining power of suppliers is kept on the lower side in order to remain successful in its operations. Switching costs is an important strategy for organizations. However, for the restaurant industry, it is low because of the large numbers of suppliers and substitutes that are available in the market. In the restaurant industry, there are extremely few ways for suppliers to be able to differentiate products. In addition, there are various varied options for restaurants to choose a supplier from the many that are available. In this case, the suppliers’ bargaining power will be on the lower side.

Bargaining power of customers

Price sensitivity will be taken into consideration by the Bistro Restaurant because customers always want to get the best and quality items for the lowest price. The number of customers that enter the high-end restaurants is much lower than fast food and casual dining restaurants. There is need for the company to be concerned with the cost and quality of products. A majority of customers have some form of bargaining power of product quality and cost.

The Macro Environment (PESTEL Analysis)

Political

Macro environment political factors that may affect the operations of the restaurant include tax policies, availability of government contracts, government-issued safety rules and regulations, and changes in the political party under control. Global laws such as trade tariffs and agreements may also affect the chains of demand and supply for the restaurant, but the effects may only be mild.

Economic

A market bang, depression, or increasing inflation issues may change the way a restaurant operates in the present, as well as, how it plans to operate in the future. Economic variables are in most cases not easy to evaluate because economic evaluations and forecasts vary largely between economists or professionals (Bowhill, 2008). Unemployment levels, comparative rates of foreign exchange, and situation of the international economy may enhance or harm the restaurant’s ability to acquire the needed components and maintain constant profit levels. The Chinese Bistro will ensure that important measures are taken to ensure that its success is not affected by economic factors.

Social

The Chinese Bistro business targets all types of customers because it deals with foods and beverages. This means that nationalities, age, economic status, gender, and other variables associated with customer behavior will not affect the consumers’ buying patterns of the restaurant’s products and services.

Technological

For instance, a new form of machinery and equipment such as computer chips, or product developed through thorough research and development can assist the Bistro restaurant to stay beyond the market curve and become modernized. The restaurant will utilize all forms of new technologies in order remain competitive in the industry.

Environmental

For example, natural catastrophes may disrupt the production and supply operations of the business or destroy the company’s assets. Programs of assessing environmental risks may help in dealing with short term short term challenges. The restaurant will carry its operations and focus on ensuring sustainability of the environment. This is important because it will strengthen its position in the industry.

Legal

The restaurant will adhere to all legal laws and regulation in order to maintain its position in the industry in terms of profitability and productivity. Failure to this may lead to unnecessary costs.

References

Bowhill, B. (2008). Business planning and control: Integrating accounting, strategy, and people. Chichester, England: Wiley.

Garvey, M., Dismore, H., & Dismore, A. (2004). Running a restaurant for dummies. Hoboken, NJ: Wiley Pub.

Hamzei, F., & Shobin, S. (2013). Master traders: Strategies for superior returns from today’s top traders. Hoboken, N.J: Wiley.

Henry, A. (2008). Understanding strategic management. Oxford: Oxford University Press.

 P.F. Chang’s China Bistro. (2010, April 8). P.F. Chang’s Restaurant Dining & Take Out. P.F. Chang’s Restaurant Dining & Take Out. Retrieved February 10, 2014, from http://www.pfchangs.com/index.aspx

Shock, P. J., Bowen, J. T., & Stefanelli, J. M. (2003). Restaurant marketing for owners and managers. New York: John Wiley and Sons Ltd.

 

 

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