Prepare a market strategy for Lucky Restaurant.

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TABLE OF CONTENTS

INTRODUCTION 1

AIMS & OBJECTIVES 2

AIMS 2

HYPOTHESIS 2

OBJECTIVES 2

Primary Research Method 1 4

Primary Research Method 1 4

Research result 1 - Public Questionnaire 4

Primary Research Method 2 8

Research Result 2 - Managerial Questionnaire 8

Secondary Research 10

Result 1 - SWOT Analysis 11

Secondary Research Result 12

CONCLUSION 16

RECOMMENDATION 19

BIBLIOGRAPHY 22

MAP 1

MAP 2

APPENDIX 1

APPENDIX 2

APPENDIX 3

Introduction

Lucky Restaurant is situated in the rural town of Coleford in the heart of The Forest of Dean, which is 20 miles West of Gloucester, 31 miles East of Newport, 32 miles North of Bristol and 23 miles South of Hereford. (See Map 1 & 2)

Lucky Restaurant (See picture below) is a family owned business with two partners who are brothers; it is a well-established business that has traded since September 1974. It has provided services to the community of Coleford and surrounding areas for 28 years.

Coleford has an average population of 8,100 in the mid 1998, according to the figure given by the Office for National statistic (See Appendix 1). Lucky is now well situated in the central business district, as most of the businesses are mainly gathered in the area around the clock tower in Coleford. There are a number of competitors around the area. Such as, other Chinese takeaway shops, fish & chips shops, cafés, pub restaurants, supermarket etc. This has pulled custom down towards the place where Lucky is. It is not modern and attractive in design, but being well established it has built up a loyal customer base through its quality goods and services.

The target audience of Lucky is mainly people lives in Coleford and surrounding area e.g. Cinderford, Lydney, Ross-on-Wye. Especially age group 26-35 which has 1264 population which is the largest age group in Coleford. (See Appendix 5. They are likely to have a secure job and higher income among the other age group. The other main customers are people who like takeaway meals. The delivery service for meal attracts anyone that does not have a car or desire a meal but leaving their home.

Aims & Objectives

Aims

The aim of this investigation is to prepare a market strategy for Lucky Restaurant, so that volume of sales can be increased. Sales have declined within the last two years due to fierce competition and customers being spoiled for choice, due to the variety number of fast food outlets.

A structured marketing strategy should help to increase sales by attracting new customers. To do this it should not excessive expenditure, that the service and the product is maintain and to retain existing customers.

The main aim of the strategy is producing promotional materials that would increase sales revenue by 10%. When all the factors in the study have been considered, it will be possible to draw a conclusion about the most appropriate marketing mix for Lucky to adopt.

Hypothesis

An effective market strategy should allow potential customer who purchase from Lucky to find out about the restaurant and purchase their desired goods.

The plan for the Lucky's marketing strategy must include:

* Assessment of the current situation of sales and marketing strategy. Including a managerial questionnaire

* A survey of the public to ascertain their point of view on the current marketing strategy of Lucky

* Various method of marketing will be investigated. Promotional material will be produced which satisfies the aim.

Objectives

To help generate a fully comprehensive marketing strategy for Lucky Restaurant. I will use four source of information to investigate the way it wish to be perceived and the way other firms have achieved this

Primary Research Objectives

Research objectives can be identified as follow:

* To identify who is the target audiences for Lucky Restaurant, their age group

* To determine which medium is the most effective to reach the target audiences

* To determine how the customers satisfy their needs and wants with the services and food offered

* To determine whether the distribution of the services and meals to customers is appropriate and convenient

* To determine how to improve for market strategy including advertising and promotion method

* Find out the main reason why demand of Chinese meals from Lucky is declining

* Find out about the current marketing strategy, so that new strategy can be formulated to increase sales revenue.

Secondary Research Objectives

. Discover if the chosen location will generate sufficient custom, by assessing the competition in surrounding areas and conducting a SWOT analysis of Coleford.

This may be investigated by comparing the services offered by competitors to Lucky Restaurant and conducting a head count of the number of clients served at particular hours on particular days.

2. To discover the average number of population that likes take-away food, this can be determined by various age groups.

3. To determine the disposable incomes of population of the target age.

The information for the above two objectives, may be discovered from demographic information obtained from social trends (national statistics)

4. Investigate the cost of advertising the business.

This may include method of above and below the line promotion and research into local radio, newspaper and leaflet drops must be considered.

After the objectives above had been achieved, I will examine the results of the former market research in order to create a marketing strategy and valuate the effectiveness of it. Finally, to construct a compilation of recommendations as to how to possibly help solve their problem.

Primary Research Method 1

The first step in research is often the most important. The problem would be defined and set the objectives of the research.

The aim of the research for Lucky Restaurant is to discover why the number of customers is declining and decide on the most appropriate marketing strategy to increase sales. This will include determine ways to retain present customers and attract new customers.

The questionnaire was focused on the marketing strategy of Lucky Restaurant and whether it is doing its job, in terms of fulfilling AIDA. An overall rating of the marketing strategy adopted by Lucky Restaurant was also included.

Research result 1 - Public Questionnaire

The following results have been taken from the Public questionnaire that was given to thirty people. This is a form of quantitative research which gathered measured numeral data. This questionnaire was carried out at the Lucky Restaurant. For the questionnaire see Appendix 2.

Figure 1.1 shows the majority of clients, at 33%, that filled in the questionnaire were in the age group 26-35. Only 3% were in age group Under 15. A large chunk of 27% was in the age between 15-25. 7% lay in the 56-66 age category as well as in the 66+ group. A pie chart has been used rather than a bar chart because visually it gives a better representation of the proportion of age groups that purchase from Lucky Restaurant.

Fig 1.2 is displayed to show the huge discrepancy in the advertising of Lucky Restaurant. Despite adverts in newspapers, the results reveal that most clients, with a majority of 33% heard about Lucky Restaurant through word of mouth. Marketing messages, which take place on the basis of word of mouth, is a non-controllable promotion method. Lucky Restaurant does not pay off its marketing budget for promotion by word of mouth. People must recommend others about the range of meals and the quality service at Lucky Restaurant and through this, new people are attracted to the restaurant. This is a valuable asset to the business. The next largest response was window display (30%). This also is not included in Lucky Restaurant's marketing budget. People are attracted to the shop when they walk past. The rest of the responses distribute by other advertising methods such as advert in the local directory (13%), newspaper (10%), yellow pages and town/shop signs (both 7%). Most of the marketing budget spent in those adverts, however, the return on investment has room for improvement.

This question is related to the distribution of Lucky restaurant. Figure 1.3 shows that the majority of 38% who took part in the questionnaire travel less than 2 miles to get to the restaurant. Perhaps this is because they work there or live within Coleford. Most of the loyal customers are local residents, part of customers from some nearby areas also willing to travel a longer journey to eat their meal. Almost 60% participants travelled 3-12 miles whilst only 6 % travel further than this. This bar chart has been used to emphasise the fact the bulk of customers only travel between 0-2 miles, therefore are more likely to live locally.
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Figure 1.4 shows that the level of satisfaction that the customers felt for the food offered by Lucky Restaurant. It shows how they satisfied with the cleanliness, taste and smell. However, they felt that the colour and portion size have to be improved.

Figure 1.5 displays how satisfied general customers with the packages on offer at Lucky Restaurant. It also gives us a quantifiable measure of what the public says is 'good'. All packages were rated average or above, the majority believing the service was excellent. Most (30%) rated the service as very good, being above good ...

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