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Marketing Plan For Old Smithy Restaurant. The business mission of Old Smithy is to provide superior service in the restaurant industry within George by providing local entertainment and cultural education coupled with superior quality products and servic

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Introduction

NELSON MANDELA METROPOLITAN UNIVERSITY STRATEGIC MARKETING PLAN OLD SMITHY RESTAURANT AND LOUNGE AUTHORISED BY: VINCENT HAU-YOON STUDENT: JOAN-MARIE STEENKAMP STUDENT NUMBER: s208034231 DUE DATE: 04 AUGUST 2011 TABLE OF CONTENTS 1 INTRODUCTION 2 BUSINESS MISSION AND OBJECTIVES 3 SITUATION (SWOT) ANALYSIS 3.1 Internal Strengths and Weaknesses 3.2 External Opportunities and Threats 3.2.1 Social 3.2.2 Economic 3.2.3 Demographic 3.2.4 Political, legal and financial 3.2.5 Competition 3.2.6 Technological 3.2.7 ecological 4 COMPETITIVE ADVANTAGES 5 MARKETING STRATEGY 5.1 Target Market strategy 5.2 Positioning 5.3 Marketing Mix 5.3.1 Product 5.3.2 Place 5.3.3 Marketing Communication 5.3.3.1 Advertising 5.3.3.2 Promotions 5.3.3.3 Publicity 5.3.4 Price 6 IMPLEMENTATION, EVALUATION AND CONTROL REFERENCE 1 INTRODUCTION Old Smithy is a restaurant and lounge concept which aims to provide a completely sophisticated, sensual, yet casual and affordable dining and/or lounge experience for locals and tourists who frequent George's casual dining spots and entertainment venues. The restaurant aims to incorporate local talent and to create awareness of local heritage sites. The name of the restaurant, Old Smithy, was decided on as this is a historical site located on the Montague Pass. The Old Smithy was used as the supply storage and repair house and a garrison for prisoners during the time when John Montagu built the pass over the Outeniqua Mountains. After the completion of the Pass, Old Smithy slowly dilapidated and today the walls are nearly broken down to the ground due to vandalism (George Museum, 2010). Please note: when the author refers to Old Smithy as the 'restaurant', she is referring to both the lounge and restaurant sections. When referring only to the lounge, the author will name it thus. 2 BUSINESS MISSION AND OBJECTIVES The business mission of Old Smithy is to provide superior service in the restaurant industry within George by providing local entertainment and cultural education coupled with superior quality products and services, while striving to be both a 'green' company and a good corporate citizen. ...read more.

Middle

This will affect the restaurant as people will have less purchase power due to the fall in the economy and Rand value. 3.2.5 Competition Old Smithy's direct competition includes the restaurant and theatre Kalahari, located at the Redefine centre at the bottom of York Street. Old Smithy seeks to strengthen its competitive stand by strategic alliances with the Arts Theatre and the Trinity School. Indirect competition includes all restaurants, including fast-food outlets, within George. 3.2.6 Ecological Old Smithy has invested in the latest technology to make its operations as environmentally friendly as possible. This includes utilizing alternative electricity sources like solar energy, recycling of waste material, purchasing from local fresh produce vendors (to minimise the carbon footprint) and by using biodegradable cleaning products. 4 COMPETITIVE ADVANTAGES The competitive advantage offered by Old Smithy includes the combination of lounge and restaurant with live entertainment on a regular basis. In addition, it aims to gain advantage over the competition by o product identity, quality, and novelty o high employee motivation and good sales attitude o innovative and aggressive service options Furthermore, the restaurant aims to gain the competitive edge by utilizing the value chain and building long-term, mutually beneficial relations with the various members of the value chain. 5 MARKETING STRATEGY The target market is a defined group of people who will most likely visit Old Smithy (McDaniel, 2006). 5.1 Target Market strategy Old Smithy will appeal to middle-income workers, tourists and students within George who desire a casual dining, lounge entertainment experience. The market segment would largely be heterogeneous, consisting of singles, married couples without young children, students attending university, and tourists. The high opportunity segments include the married couples without young children and young singles. The restaurant and the lounge area will each have their own unique marketing mix. The lounge will cater mostly for young professionals and students who seek a casual, relaxing experience in comfort furniture and decorations, while the restaurant will be more formal and will consists of "traditional" dining tables and chairs. ...read more.

Conclusion

Preliminary research is being conducted to determine the average prices of various meals at different restaurants that fall within the same category as Old Smithy. Based on these results, a competitive mark-up will be added to cost-prices of the meals. All discounts will be taken into account and worked back into the mark-up. Customers within George are relatively price sensitive due to George's economy. However, patrons will be willing to pay extra if they perceive the benefits to out-weigh the costs. Therefore good service, entertainment and quality products are of vital importance to Old Smithy. Credit cards, debit cards and cash will be accepted as methods of payment. Traveller's checks are still being debated at present. Pre-ordered meals can be paid over the internet using Paypal, or other means of direct internet payment. The management is still in discussion as to various payment methods through the internet that will guarantee the patron's online payment safety. 6 IMPLEMENTATION, EVALUATION AND CONTROL The implementation of the market strategy will commence on September 1, 2011. Operations will commence from December 1, 2011, and it is expected that the restaurant will begin making a profit at the end of January 2012. Audits will be done by Mazaars Accounting firm located in George once every 6 months, starting January 1, 2012. Due to the fact that the company is still in its infancy stage, evaluation on financial performances cannot yet be asserted, however, within the space of one calendar year, the company wishes to show a positive growth trend of five percent (5 %). Should this rate and profit earnings increase by the end of three calendar years, the possibility of opening another branch within Mosselbay would be considered. REFERENCE McDaniel, C., Lamb, C.W. & Hair, J.F., 2006. Introduction to Marketing. 8th ed. Ohio: Thomson South-Western. Saayman, Chalmain, personal research and observation of restaurant demographics within George, [conversation] (personal communication, 19 April, 2010) News24, Market Meltdown to Hit Global Economy http://www.fin24.com/Economy/World/Market-meltdown-to-hit-global-economy-20110809 [Online] Accessed 9 August 2011) News24, Horror as US Markets Plummet http://www.fin24.com/Markets/International-Markets/Horror-as-US-markets-free-fall-20110808 [online] Accessed 8 August 2011) George Museum, 2010. Montagu Pass. [Photocopied Pages] George: George Museum ...read more.

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