Businesses 5,000 6,500 7,000 18.32%
Shoppers 10,000 11,500 12,000 9.54%
Interstate Traffic 5,000 3,500 3,000 -22.54% *
Rex-Plex/Tournaments 2,500 2,750 3,000 9.54%
Totals 47,500 50,250 55,000 7.61%
*Upcoming I-94 Construction will have some negative effect on this area until construction is completed after 2012
2.1.1 Market Demographics
This profile of the Market Demographics sub divided into the following: Geographics, Demographics and Behavior Factors
Geographics
- The site for this location would be near I-94 and Highway 165.
- Traffic will be heavily relied on the Prime Outlet Shopping Clientele and I-94 Traffic.
- Population Estimate for the Kenosha/Racine is around 320,196.
Demographics
- Cater to the business person for a quality dining experience in a unique atmosphere
- Females ranging in ages 27-60 yrs seem to be the main customer at Cheesecake Factory.
- Males- Gen X (27-41yrs) frequent the Cheesecake Factory
Behavior Factors
- Consumers looking for a unique dining experience
- Quality Portion sizes along with reduced sizes reflected in the pricing.
- Healthy Menu Items should be offered along with reduced fat/calorie cheesecake selections
2.12 Market Needs
The Cheesecake Factory Restaurant in Pleasant Prairie will be a successful establishment for this location due to the following:
- The need for an upscale restaurant in this area.
- More than a quick dine location, this establishment can be for business luncheons or for the shoppers from the outlet mall.
- Strives on servicing the customer and giving them choices from a wide selection of breakfast, lunch and dinner entrees to a great selection of dessert items which include, of course, their famous cheesecake.
- This firm spends an average of $2,000 on various training per hourly worker each year; which results in lower turnover rate which is 15 percent below industry average.
2.1.3 Market Trends
The Cheesecake Factory has continued to strive since 1978 on providing its’ customers with quality food and a great dining atmosphere. The general public agrees with this also. According to R&I’s Consumers’ Choice in Chains, Cheesecake Factory has scored high. Across all menu categories, Cheesecake Factory finished at 75.9 just behind Carrabba’s Italian Grill at 76.3. Cheesecake beat out some big names such as Olive Garden (74.7), Cracker Barrel (72.5), Red Lobster (68.5), Starbucks (66.2), Chili’s(64.5) to name a few. From the male customers, Cheesecake was voted best for Reputation and Menu Variety. Meanwhile the women’s view was that Cheesecake was voted best for Food Quality, Reputation, Menu Variety and Service. The customers (both male/female) in the Millennial Minds (age 26yrs and younger) voted Cheesecake with best Menu Variety. Finally the Sonic Boomers (age’s 42yr-60yr) gave Cheesecake the best Menu Variety and Reputation and the Generation X (ages 27-41yr) with best Menu Variety.
2.1.4 Market Growth
Visits to restaurants rose 0.2% in 2008 which is 61.5 billion; however, consumers according to various marketing reports will not abandon the restaurant industry.
2.2 SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within the company, and describes the opportunities and threats facing The Cheesecake Factory.
2.2.1 Strengths
- Excellent Reputation in the Restaurant Industry
- Well Trained Employees
- Clean and Decorative Environment
- Great Menu Selection
2.2.2 Weaknesses
- Known to have long waits; need to service customers in a timely matter
- Some menu items have not been accepted by the public or not being of good quality.
- Not consistence with the quality. Need to work on improving consistence in appearance, serving size and quality.
2.2.3 Opportunities
- Bring public awareness to this new establishment in the area.
- Continue to cater and offer a wide selection of items
- Expand and invent “local favorites” which are unique to the WI area for this restaurant.
2.2.4 Threats
- Average Guest Check for 2008 was $18.50; will this detour customer to “fast food?”
- Economic Downturn at this time
- Various Reviews have the service as being too slow; need to improve on this.
2.3 Competition
The nearest restaurants within a 1 mile radius of the I-94 and Highway 165 would be the Culvers, McDonalds, The Chancery (located in the Hotel) and a few smaller sandwich shops located within the Outlet Mall. These will still have their niche with the consumers; however, the customers that Cheesecake Factory is targeting are the shoppers and business person(s) who want more than just a burger and fries. In addition, as this Marketing Plan mentioned before much success of the Cheesecake Factory and its success is from its consumers. The age groups mentioned in 2.1.3 Market Trends shows that the Cheesecake Factory will be successful at this location due to the shopping and business crowds it caters too.
2.4 Service Offering
The Cheesecake Factory will offer several of the following services and products:
- Unique Upscale Dining High-Energy Atmosphere Seven Days A Week.
- Large Menu Selection with everything from Soups and Salads to Specialty Dishes.
- 50 Plus Cheesecake and Dessert Items to eat or take to go.
- As with other locations, offer the entire menu for Take Out.
2.5 Keys to Success
The single most important assets and success to this restaurant at this location is that it meets the needs of the consumer at this location. Several issues must be addressed to make this location a success.
- Hire and Train Quality Individuals
- Listen to the needs of the consumer
- Offer a unique dining setting
- Offer a wide selection of menu items for all types of lifestyles
- Open 7 Days a week to fit the needs of the business clientele, shoppers and Rex Plex
2.6 Critical Issues
Once ground breaks for the Cheesecake Factory, it is important to immediately market and advertise to the local merchants and businesses in the area to let them know of this establishment. Some items that need to be addressed are:
- Work with the area businesses (Lake View Corporate Park) for Cheesecake Factory to being an establishment for their next business luncheon or diner.
- Market along with the Prime Outlets for the I-94 corridor traffic for a place to stop for quality dining and shopping experience.
- Market with the Lake Andrea and Rex Plex facilities for another choice to dine while at those facilities for various sporting event tournaments.
- Offer a wide selection of healthy alternatives on the menu for meeting the needs of the health conscious consumer.
Marketing Strategy
3.0 Marketing Strategy
The marketing strategy will be to develop visibility among the community. This will be achieved two ways. The first manner will be by placing advertisements in local shopping outlets. The second marketing strategy is by doing a direct mail to residents in the community, offering discounts on menu items.
3.1 Mission
The Cheesecake Factory’s mission is to ensure that each guest receives prompt, professional, and friendly service. To have every customer leave impressed and excited to come back again. Our services will go beyond the expectations of our customers.
3.2 Marketing Objectives
- Maintain positive, consistent growth each month.
- Experience an increase in new customers who turn into repeat customers.
- Increase awareness to the community and surrounding areas.
3.3 Financial Objectives
- Continue to reduce the variable costs related to food production.
- Improve the profit margin by .15% each month.
3.4 Target Marketing
The target market can be segmented into three categories. The segment strategy will not be significantly different to address the three groups.
- Families/individuals: a group of people, either friends or relatives dining together.
- Businesses: a group of colleagues dinging dining together.
- Take out: people who prefer to eat at another location other than the restaurant.
3.5 Positioning
The Cheesecake Factory will position itself as a realistically priced, upscale casual dining restaurant. Pleasant Prairie residents who appreciate high-quality food will recognize the worth and distinctive offerings The Cheesecake Factory has to offer.
The Cheesecake Factory will have a competitive edge because:
- Product – The products will have the freshest ingredients and will also be prepared to enhance presentation.
- Service – Customer service will be our priority. All employees will ensure that the customers are enjoying the most pleasant dining experience.
3.6 Strategy Pyramids
The single objective is to position The Cheesecake Factory as the premier upscale, casual dining restaurant in the Pleasant Prairie, Wisconsin area. The marketing strategy will look to create customer awareness, then to develop a customer base, then finally to work toward building customer devotion and recommendations.
The statement that The Cheesecake Factory will look to communicate is that their menu items are prepared with the freshest ingredients and offered at reasonable prices. This message will be communicated through an assortment of techniques. The first manner will be by placing advertisements in local shopping outlets. This will be effective because the outlet draws thousands of people a day, most of who will eat at least once during their shopping trip. The second marketing strategy is doing a direct mail to residents in the community. Most members of the community take advantage of discounts that are offered by local establishments; therefore, the probability of the residents visiting the restaurant is great. The last method will be word-of-mouth. Once The Cheesecake Factory establishes a customer base, they will recommend the restaurant to their family and friends.
3.7 Marketing Mix
The Cheesecake Factory’s marketing mix will consist of the following methods for pricing, distribution, advertising/promotion, and customer service.
- Pricing: The Cheesecake Factory’s pricing system will be based on per serving and portion size.
- Distribution: The Cheesecake Factory’s food can be distributed as a sit-down meal or as carry-out.
- Advertising/Promotion: This will be done through several techniques, but, the most successful advertising will be word-of-mouth.
- Customer service: Excellent customer service will be demonstrated. The Cheesecake Factory’s attitude is to make the customer happy at all times. This approach will pay off in the long run because it will result in a loyal customer base who in-turn communicate this service to their family and friends.
3.8 Marketing Research
During the preliminary phases of the marketing plan development, research was done on restaurant options in the community of Pleasant Prairie, Wisconsin. This research showed that there is a need for an up-scale casual dining restaurant near Hwy 165 & I-94.
Another source of market research is a feedback form which is based on suggestions from consumers. This feedback form has several categories that customers can rate on a given scale. There is also a section where the consumer can write in his/her own comments. The Cheesecake Factory will work hard to execute the submissions to better serve its patrons.
The last source of market research is a competitive analysis. The Cheesecake Factory will frequent other local restaurants to gain knowledge regarding services that are offered and use the results to help serve its customers.
Financials, Budgets, and Forecasts
4.0 Financials, Budgets, and Forecasts
This section will offer a financial overview of The Cheesecake Factory as it relates to the marketing activities. The Cheesecake Factory will address break-even analysis, sales forecasts, expense forecasts, and how they relate to the marketing efforts.
4.1 Break-even Analysis
The break-even analysis indicates that $30,834 is needed in monthly revenue to break-even.
Break-even Analysis
Monthly Revenue Break-even $30,834
Assumptions:
Average Variable Cost $11,135
Monthly Fixed Cost $19,703
4.2 Sales Forecast
The majority of the revenue will be generated through the restaurant sales. We expect the first few months of sales to be less due to the start up costs. The months that we intend to have the most sales volume will be during back to school shopping and holidays.
Monthly Sales Forecast
4.3 Expense Forecast
The marketing expense budget will be used as a tool to keep the marketing department on target and provide indicators when modifications are needed for proper implementation of the marketing plan.
Marketing Expense Budget
Controls
5.0 Controls
The purpose of The Cheesecake marketing plan is to serve as a guide for the organization. The following areas will be monitored to gauge perfomance.
- Revenue-monthly and annual
- Sales-monthly and annual
- Repeat business
- Customer satisfaction
5.1 Implementation Milestones
The following milestones identify the key marketing programs. It is important to accomplish each one on time and on budget.
Milestones
5.2 Marketing Organization
David Mills, the manager of marketing, is primarily responsible for marketing activities.
5.3 Contingency Planning
Difficulties and risks:
- Problems generating visibility.
- Overly aggressive and debilitating actions by competitors.
- An entry into the market of an already existing franchised restaurant.
Worst case risks may include:
- Determining that the business cannot support itself on an ongoing basis.
- Having to liquidate equipment or intellectual property to cover liabilities.
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Key Demographics-Table 1-Changes, 1990-2000
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