V. Marketing PlanMarket researchBefore planning a marketing plan for any business, doing market research is one of the most important tasks. Without doing the market research, it might be difficult to know whether the business is on track or not. By doing the market research, one will be able to know about the current situation and their competitors as well.
Marketing research can be done by following two methods which are primary and secondary research. Secondary research means using that information which are already available. For example, industry profiles, newspapers, magazines. On the other hand, primary research means collecting data by yourself.
It can be done by surveys or interviews.For our business, we did both primary and secondary research and based on the results of our research, we made our marketing plan by keeping an eye on our customer’s preferences and on our competitors as well. EconomicsAs we are in the food industry, the size of our market is really big. If we consider only our location which is Khilgaon, there are many food shops in this area which make our market and competition both big.
It also provides many options for customers for which we need to maintain our quality of food along with medium price range to survive in this huge competition. Moreover, our target market is the students of Khilgaon area and also nearby areas like Rampura, Banasree etc. As the number of students in these areas are higher than other areas and they eat outside on regular basis, we make our menu and price by keeping their capacity in mind. Their current demand is preferably fast food items. So, according to our main customers, we have different varieties of fast food items.
Furthermore, there are opportunities for food business to grow as nowadays people more prefer to eat outside than their home, also for any kind of meetings whether it is official or unofficial, people meet outside in any cafe or food court, have chat and eat together. Next, after entering in the food business, we had to face many problems. Among them few barriers were bearing the cost of production, rent. At the beginning, we did not have that much profit, as a result we had to spend money from our own money. Also, we had to struggle to survive in the huge competition as there were many successful food shops already. However, gradually we got customers recognition and was able to make profit which helped us to overcome these problems.
If any changes come in technology, economy or in anything, we will be ready to face that as we have the research team to do market research regularly which will help us to become ready for any change. CustomersIn Khilgaon, the number of students are higher than other areas. As the students eat more outside than other group of people, they are our main customers.
We have segmented our market demographically based on customer profile for example age, sex, income. Though our prime customer are the students, we also have other group of customers like families, people of middle age. As this place is already famous for foods of good quality in minimum price, restaurant business has higher chance to grow if it is planned properly. The demand of taking food outside is increasing as the standard of living of Khilgaon people is improving day by day.We prefer to have producer-customer marketing channel. As we directly sell our products to our customers, so there are no marketing intermediaries.
CompetitionAs Khilgaon is well known for quality food, it is obvious to have huge competition among the restaurant owners. There are similar products which we and our competitors serves. As the demanding products are the fast foods, everyone try to keep those in their shops with a unique style which can attract more customers. So, mainly fast food items are the main products in which the competitors have to compete. Our major competitors are-1.
Grind House.Address: 566/A, Block-C, 2nd Floor, Khilgaon, Taltola. 2.China Park Chinese Restaurant.Address: 1/A, B, C, Atish Deepankar Road, Near Khilgaon Railgate, Bashaboo.
3.Rizq Restaurant.Address: 286/C, Ground Floor, Road No 12, Khilgaon, Dhaka 1219. These restaurants are competing with us for certain products like fast food items and being in same locality. Though we are in same locality and have similar products, we are comparatively ahead of this competition for having better quality in food with minimum price.
NicheA niche is a segment in which we focus on our target audience by marketing our product to them. As we are in food business in Khilgaon, obviously we have a huge number of competitors. For niche, we have chosen the “burgers eaters” and our target audience are the students of nearby schools, colleges or who reside around Khilgaon. By choosing “burgers eaters” as our niche, we have differentiated us from our other competitors as there are many fast food shops in Khilgaon but none of them are burger focused. StrategyOur main strategy will be directly communicating with our customers through different advertising techniques.
For that, we will go for direct market. Through direct market we can communicate straight with our customers by advertising techniques including catalog distribution, targeted television commercial, response generating newspapers. Also, we will include special discounts like buy 1 get 1, occasional offers etc.
which can attract more customers. PromotionWe will use varieties of methods to promote our brand. We can use bill board advertisements. While they are stuck on jam, they may notice the bill boards. Also, catalog distribution can be another way. As our prime customers are the students, distributing the catalogs in front of schools, colleges can be a good idea.
Moreover, Facebook can be the best way of advertising without any cost. Through Facebook we can promote our brand fast and easily that too without the cost of advertising. With the help of Facebook, we can get more publicity and attract more customers. Along with these, we can also use the advertisement in newspapers, magazines and television.
Promotional BudgetFor promotional purpose, we do not need huge amount of money. Though we will promote through billboards, catalog distribution, newspaper, magazines and televisions, our major focus will be Facebook. As advertising through billboard, newspapers are costly, whereas on Facebook we can do that easily without any cost. For advertising through newspaper and all other things, we can make the budget from our profit. For promotional activities, we can use money from our profit and major publicity can be done on Facebook. PricingFor pricing we used cost-plus pricing method. In this method, it includes rent, wages for all the staffs like waiter, cooks, managers etc. gas, electricity bills.
After that, for profit margin, we considered few factors for fixing price on the food items. First of all, we considered our customers which are mainly the resident of Khilgaon and nearby areas. We know that most of the people of Khilgaon belong to middle class. So, we need to think about that before fixing the prices.
Secondly, as our prime customers are the students, they usually do not have that much money to spend on foods. Lastly, the price of the competitors is also a matter of concern. We also need to see what prices our competitors are offering. So, with best quality with minimum price, we are far ahead from our competitors. The prices are-The burgers and the set menus range from 220 to 420 BDT. The desserts start from 80 BDT and end at 180 BDT. After that, drinks start from water and range up to 190 BDT.
If we consider our price range, it is reasonable than our competitors. We provide hygiene, healthy food with better quality also in an average price range which is not higher than our competitor’s price range. Price plays an important role as a competitive factor. No matter how much good quality food you can provide to your customer but if your price is so high that customers cannot reach it, then there is no point of that pricing as we cannot make profit through it. For this, quality food with an average price can be a good option. Nowadays, most of the customers make their purchase decisions based on the quality. However, there are people as well who buy products based on price no matter how the quality is.
Next, according to our credit policy, the transaction of money can be done through cash and credit card and no late payment will be accepted. Proposed LocationWe have decided Khilgaon as location. Location plays an important role for the success of the business. We know that Khilgaon is well known place for quality foods with average price. As there are already many restaurants, there will be huge competition. However, with proper planning, one can make much profit.
Our location is important to customers as they already know that here they can have better food with average price. Our location is on main road, so customers will not face any problem regarding parking or spaces. Though the location of our competition is near to us, that does not matter as we provide better service.
Distribution ChannelsWe prefer to have direct producer-customer distribution channel. As we directly sell our products to our customers, so there is no retail, whole sale, agents or any representatives.VII. Management and OrganizationThe president of our restaurant, Fariaha Anunna will manage our business on day to day basis. Along with her, our vice-president and management team will work to achieve our goals.
Our president has experience of working in a renowned restaurant. Also, she has the quality of being a leader and team player as well. As we in food industry and Khilgaon is famous for quality food with average price, we have to compete with many other companies. Moreover, we have a plan for continuation of the business if the president is lost or incapacitated. The brother of Fariaha Anunna will take her place in our business and complete her works.
We choose him as a replacement of Fariaha because he studied on hospitality in abroad from a renowned university and also he has experience of managing restaurant business. In our business, we have 6 members in the management team. Also there are 10 other employees.
The organizational chart showing the management hierarchy and who is responsible for key functions is given below-? President: Fariaha Anunna? Vice President: Jasia Mehjabin Haque? General Manager: Israt Jahan Promi? Marketing Manager: Maisha Ferdawsi? Online Manager: Saad Bin Anwar? Development Manager: Samina Alam Organization Chart:Every employee will get salary according to their work and designation in every month. Also, everyone will get 15% bonus in every religious festival. An employee can also get bonus for extra hours or coming up with a successful scheme. Half of the profit will be divided into the partners according to their investment at the end of the year and rest half will be re-invested into the business to expand our business. .