3.2 Social :
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According to the official data of Preston city council, Preston owned population of 139633 .The person who have birthday will be 139633/365 equal to 382 in every day. If the people celebrate his birthday in our restaurant in 20 percent and at least one person will come with him, The number of customer will be about 153 . And if per capita consumption is 15 pound, The income will be16067 pound Per week. It’s just estimation in Preston ; Further considered of whole national, It is a very attractive market and it has a very light future.
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Communities from a wide range of ethnic backgrounds living side by side and around 35,000 studying at the University of Central Lancashire has been offered preston a culturally diverse, vigorous and modern living environment. Residents and youth students here prefer choosing product and services that meet diverse needs and interests rather than conforming to traditional stereotypes. Also,customers pay more attention on entertainments’ qualities and its meaning. They take priority to relationship among friends, families, colleague...
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All kids want to be valued and treasured by people who live surrounding by themselves.Also, nowadays 's youth and children is not just satisfied with birthday cake,card and gift. They prefer taking on a big party that invited lots of friends, also attends outdoor activities with friends to fulfilled the special day.
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Lover parents who cherish kids and dedicate to create them an intelligent and happy life has been felt pressure due to the shift in birthday party trends. Hosting a birthday party is stressful and time-consuming, especially holding a party at home.
3.3 Demographic
According to to the search in the website of Office for national statistic, the proportion of different races and numbers of people in each ages level in Preston area can be see below and right sides :
3.3 Restaurant Industry Analysis:
3.3.1 Trend and Drive
- Although the economy recession significantly influence the purchasing power and consumer habit, the society is becoming more various and people’s life standers is raising.
- Customers pay more attention on entertainments’ qualities and relation among surrounding's. A birthday can be more special and full of memorable things. Therefore a restaurant special for birthday can be a good idea.
- After the questionnaire and survey in Internet. It indicate that although some restaurant like Macdonald will offer some discounts during people’s birthday , 57% people will like to try the special birthday restaurant compare with those who did not have wholly or special service and different atmosphere. And the demand cycle will not be affected by the season.
3.3.2 Market Overview in Preston
Competitive landscape
- According to the survey in the Internet (UK Yell Websites) ,There are more than 150 restaurants in whole Preston area and most of them are located near city centre.
- When narrow down searching, there remain exists 126 restaurant and more than 50 takeaways within 5 miles radius of the city centre.
- The cuisine types of these restaurant and takeaways shop differ from East to West, covering nearly all food types, such as Chinese, India, Thai, Italy, Spanish, France, British...
- As for aspects of services,Nearly all small and parts of middlion eat-in restaurant are equipt take-away and food delivery services. Also, part of some restaurant such as Tang Restaurant, New Element Restaurant...install entertainment facilities like KTV, Computer and dinning hall...
However, theme restaurant that special for birthday are few or in other words：none. Nevertheless, the potential market is too big to cover since the people have more requirements and food flavour preference on life standers now. Therefore, theme restaurant special for birthday can be seen as growth market and attractive.
3.4 SWOT Analysis
- OBJECTIVES
- Build the customer awareness to our restaurant.
- Build the customer loyalty.
- In the beginning of the 2012we will share the 10% of the target market.
- In 2011, we will open the first restaurant in Friargate Road, and choice a nice place to run it.
The area will be 1000 ㎡
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After one year’s running we will gain 10%profit.
5.MARKET POSITIONING AND TARGETING
5.1 Positioning
Wow Birthday Restaurant will position itself as a reasonably priced, upscale, fashionable and entertainment restaurant. consumers who wish to own special and memorable birthday will recognize the value and unique offerings of Wow Birthday Restaurant. Wow Birthday restaurant will be all youth,students,colleges,partners,couples,elder, ages 18-80
Wow Birthday Restaurant positioning will leverage special and unique competitive edge and its clam and clean atmosphere will bring you a birthday celebrating feelings.
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Dishes : The flavour,kinds of dishes will specially cooked according to any requirement of customers. Each dishes would given a special name which can show the birthday celebration features.
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Environment and Equipment: Whole restaurant are meticulously decorate and full of celebrating atmosphere
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Services: Customer service will be the priority. All employees will ensure that the customers are having the most pleasant memorable,special birthday experience and wonderful with most enthusiastic optimistic initiative.
By offering a superior product, coupled with superior service, Wow Birthday will excel relative to the competition
5.2 Market Segmentation
Market Segment is a subgroup of people or organizations sharing one or more characteristics that cause them to have similar product needs(MacDaniel ect,2006).
When taking consider about the difference among general lifestyle, psychology needs, This plan segment all people into 4 groups
- Segmentation by Lifestyle and Needs
5.3 Target Market strategy
According to MacDaniel ect(2006) A Target Market is a group of people or organizations for which an organization designs,implements, and maintains a marketing mix intended to meet the need of that group,resulting in mutually satisfying exchange.
This Target Marketing Strategies including: Undifferentiated targeting, Concentrated targeting and Multi-segment strategy. However, This plan recommend to choose concentrated targeting and prefer niche market.Reasons are following:
- Concentrated Targeting strategy
The mission of Birthday restaurant is to enable each customer who has been in URON Birthday to enjoy food and memorable birthday so as to create better catering value. Therefore, The value in this restaurant is create special and Customer-oriented experience . Thus, Undifferentiated strategic is impractical for different people even against for building brand image and brand loyalty.
Moreover, multi-segment targeting need high cost to competed with all rivals in every details. However,As a new restaurant The enormous development investment at first time increase both risk and the cycle of investment return.
Thus, This plan adopt Concentrated targeting strategy which used to select one segment of a market for targeting marketing efforts(MacDaniel,2006) is the choice and select niche market that specialize to young people,especially students.
The target audience is shown below:
- MARKETING PROGRAME
In this Part, This plan will detail the major elements of marketing mix. Justify the timing and sequencing of all elements and explain how they interact to create synergy.
6.1 Product Strategy
Principles: Make flavours of dishes appeal to maximization of local taste
With the increasing intensive competition in restaurant industry. The basic and the key elements that satisfied customers is also food and it's flavor . However, In different countries, religions, cultures and people, the food and flavor is different. How to appeal maximization of local taste is important.
Based on the demographic data that shows in 3.3. White British is the largest group in Preston,which take up 82.3%. And the second is South Asian with 11.6% population. Therefore, The mainstream local taste can be seen as an constitution taste of these two largest groups.
Thus, the main types of food in Wow Restaurant should be adopt British food style. but each kinds of foods should also make innovation , processing and redesign to cater macimization of local taste. (Need to talk and make detail research with chef)
Add product level conscious that provide form product. expect product, extension product to additional product, so that make customers to experience an inexpert surprise.
As for Dish innovation, It can be according to the suggestion and recommendation that customers provided. Customers have the option to put forward their opinion. After summarization, selection, judgement, selection and experiment. The customer who invent this dishes will get a big surprise
- New Product----Create "Wow Birthday Restaurant " E-Magazine
Nowadays, E-magazine is popular within the young groups. Also, E-magazine is not only as one of the better platform for Viral Marketing,but also One way to build brand image of Wow Birthday Restaurant by reporting and publishing the wonderful pictures of each activities and parties (under the permission of attended parties ).
6.2 Services Strategy
Based on providing an attractive, comfortable physical restaurant environment , satisfactory dinner services,Wow Birthday Restaurant also install advanced entertainment equipment such as KTV, dancing hall and entertainment room.
- Birthday Dinner Services:
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Special Offer Services: Carry one One-to-One special services.The flavour,kinds of dishes will specially cooked according to any requirement of customers.
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Free dishes: A free of dish which offered depends our restaurant.
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Birthday cake purchase: Clients can order Birthday cake from our restaurant,VIP member will get 20%discount.
Groups above 15 people will get free cake
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Music Offer: A Happy Birthday Song can be played by our restaurant’s workers which dressed special.
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Free Flowers: Couple can get a flower from our restaurant.
- Birthday Entertainment equipment Services:
- Provide KTV,dancing hall, entertainment rooms.
- Recording the whole process of birthday celebration video for the customer. (extra charge accordingly)
- Birthday Party Services (For groups over 10 ):
- Big Birthday Parties plan and implement (extra charge accordingly)
- Recording the whole process of birthday celebration video for the customer. (extra charge accordingly)
6.3 Promotion & price Strategy
- Long term Relationship Strategy :
VIP Services and Loyalty Programme :
- Lucky Card：One-off consumption value reach £ 50 in dinner will get free VIP member card and get 12% discount on the following consumption in dinner(KTV and other entertainment room consumption is not available )
- Wow Card：Accumulated Consumption value reach £ 500（One-year）in dinner will get one free“Wow card”and get unlimited 22% discount.
- Love Star Card：（Suitable for popular people）Customer who making application to Love star card can enjoy 12% discount in the same day and get 10 pieces of“Star Card”，（Send this card to different friends），Your friends who held "Star Card" and come to eat-in will get 8% discount. After collect your 10 pieces of "Star Card", You can have a "Love Star Card" and get unlimited 32% discount.
- Free Entertainment and Party service:One-off consumption value reach £ 150 pounds will free to enjoy all.
Set unscheduled promotion according to practical situation.
- Set discount dishes
- Get discount by paying by cash
- Regular launch "Restaurant Special" to attract old/new clients.
- Special Activity Promotion:
Regularly carry out " prize-winning essay" in different title, like "Cherished Friendship "," U & ME"....
6.4 Pricing Strategy
The strategy is mainly focus on cost.
- Product sold in restaurant
It has certain plan and strategy to fix price no mater in the overall structure or in individual product. Different industry has different affordable profit, so it has a great feasibility for us to fix price according to sales revenue and sales volume, i.e. unit price=fixed cost/salesvolume+variable cost.However, Owing to economic recession and the changing of purchasing habit, Customer expect to get more when spending the same money.
Therefore, The ordinary dish,especially which other restaurant have,the price should be lower than their's or set the same value but extra offer, so that , the clients will prefer to choose Wow Birthday restaurant first.
- Special offer for customer
Nevertheless.on the other hand, Since the customer will treat the dish prices as a kind of quality performance. So we should price our delicious signature dishes higher, the customers will also feel it is reasonable. It is very needed to call some signature dish during the dinner to make up the face. So the customers like to pay for this kind of dish.
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And every day we will bring out a special discount dish or set unscheduledoffer
- Different VIP card holder will also get different discount according to their level.
6.5 Place Strategy
- Build Wow Birthday Web-site:
Establish E-magazine and publish regularly and spread it through restaurant official web-site, facebook.... and transmit by free mailing list, so that its easy for highlight birthday atmosphere and then built Wow Birthday brand.
- Popularize Creative video and Internet spread
Making advertisement spreading by using the network advertising and Internet advertising exchange.
It can be invite students to attend making process, let them take part in advertisement planning , shotting,and actioning so that explore target marketing .
Also, develop and publish creative advertising video to different Net community such as Facebook, Twitter ...
- IMPLEMENTATION
7. 1 Organization Management
There will be at least 40 stuffs and the organization structure can be seen as below:
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Financial Department:Responsible for Budget and settlement business, tax declaration. accuracy and completeness of financial and management accounting records and make close relation with third party company or bank.
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Planning Department: The core department for strategy planning. Mainly responsible for establishing strategic direction for company development .Cooperate with Marketing Department to explore new market area, development new project, services, dishes and relative new products.
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HR Department: Responsible for Staff recruitment, training and salary management
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Operation Department(Public Department):responsible for the restaurant service, service management . improve the service quality and make cooperation with other company and established good relations of with them.
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Purchase and logistic Department: Responsible for the purchase of food, tableware....responsible for equipment maintenance and purchasing,also responsible for property management
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Marketing Departure: The main duty for marketing department is to capture instant information of restaurant market and make market development, market research and get timely feedback from customer about the needs and wants. Do research and make analysis about relative customer group and make responsible for E-marketing duty and maintain.
- EVALUATION AND CONTROL MECHANISMS
8.1 Cost and Revenue
8.1.1 Cost Forecast
In order to take control on financial consumption. It vital to make cost forecast and budget evaluation.According to the organization structure and operation needed,The cost may incurred from following catalogues:
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fixed investments: Including the restaurant renting or purchasing ,Mortgage fee, restaurant building and decoration, kitchen ware and other equipment purchasing, Warehouse renting fee, computing system and software permission, transport tools that for logistic and food purchasing.
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Operating and management investment: Including advertising and general publicity expenses, Business operation expenditure(energy consumption fee),Office expenditure, employee wage,salary and warfare and other unexceptable fee.
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Flow capital investment: Including all food,beverage purchasing ,such as raw materials procurement,accessory purchasing,drinks,alcohol purchasing and other Disposable Tableware cost
8.1.2 Revenue Predict
According to MacDaniel(2006)The final goal of marketing is to Optimization operation index.From narrow senses, The value why one business is to create profit continually.However, The necessity for getting profit is business indicators combination.
For example: Profit=Occupancy×Seating Capacity×Capital consumption(gross margin-expenses rate)
Therefore, The revenue and benefit can be predict based on formula above and can be divided into 3 catalogues:
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Profit Index:including practical Occupancy,seating capacity and capital consumption
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Customer Satisfactory index: May have no direct relation to current profit, but will be influence future profit, which including consumption frequency and new customer generation.
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Brand index: May have no direct relation to current profit,,but will have influence in brand reputation, brand awareness,competitive intensity and comprehensive impression
8.2 Risks and Control.
8.2.1 Market :
Risk:
- Although wow birthday restaurant have special feature,which can attract customers, but also exist those customer that can not adapt this culture so that lead single customer groups
- Although the numbers of theme restaurant is less and the competition is relatively low in Preston,It does not mean that it won't appeal fierce competition
Control:
- Conduct Marketing Research and understanding customer's needs from more aspects
- Based on original feature and restaurant culture, try best to narrow down culture difference
- Set Planning department and Marketing department that regularly set Marketing research and make improvement plan.
8.2.2 Environment:
Risk:
- The change of Macro-environment or industry-environment such like the food safety policy,the economic recession will have influence to the business of restaurant
Control:
- Set Planning department and observe the change of environment change
- REFERENCE
- Lamb, Charles W., Jr., Joseph F. Hair, Jr. and Carl McDaniel, Marketing, 8th ed. Cincinnati: South-Western College Publishing, Thomson Learning,2006.
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Preston Population and Ethnicity, 2001. Office for National Statistics,[Online]
by
handtree1211 (student)
