Marketing Analysis for Indian Restaurant

Marketing Analysis for Indian RestaurantAim and visionThe main aim is to provide customers with authentic Indian aliment laced with the captivate taste and nutritional values of conventionalisticistic Indian herbs and spices served in a traditional Indian (Punjabi) sitting to give the complete feel of incredible India, at the prices which dont make muckle think twice. The derriere customers ar large number of Indian student and families in the area with the aim of taking locals into our victuals by capitalizing on the growing popularity of traditional Indian nutrient.The main decoct of our mission statement is to satisfy our customer by offering traditional Indian food and also provide quality good in the form quick home delivery service. Being a high class community, most of the people in Hatfield are work in offices from 9 to 5. In order to attract these customers we entrust provide competitive prices to attract customers from competitors.IntroductionWe will initiate food backup with the name of DELI-SIOUS which will be traditional foods. For the location of our care we are choosing Hatfield which is one of the City of Hertfordshire County. We chose this business because according restaurant draw in there was an opportunity gettable for Indian traditional food restaurant in the region of Hatfield. To gain this opportunity I made a merchandising plan for investors to cash this opportunity. (Restaurant guide)In the preparation of this report both primary and secondary data is involved. Primary data was collected from local people of the Hatfield by using questionnaires and interviews. While secondary data were collected from Hertfordshire County Council (HCC) and also related books, journals, websites regarding commercialiseing. To analyse the external and inwrought environment we used Swot analysis as a tool to know about the market. I consecrate also explore related sources regarding my marketing plan such as trip advisor, restaurant g uide and mintel international group Ltd.Financial overviewWe have a small business loan of 50,000 provided by two business partners, which have to be remunerative back in instatements in approach three years. In first year of our business we dont have to pay any installments and after first year we have to pay installments on the interest rate of 5.6%. There are three profitable opportunities available in the region of Hertfordshire country, which areOpening a retail premisesStarting a landscape gardening businessLaunching a virtual office support serviceFrom the above opportunities we have chose restaurant business, according restaurant guide there is an opportunity available in Hatfield for Indian food. The allocation of resources will be discussed in the action plan.In the first year of our business which is 2010, our expected profits will 5000 and in 2011 we will expect more then 7000 because of increasing sale by 40% in 2011. We further aim that our expected profit in 2012 w ill be more then 10,000 because of increasing sale by 40%. To secure these profits we will capture the market with the help of differentiation strategy.Our expected sales in 2010 will be 30,000, we will add our sales in 2011 by 40% our expected sales will be more 42,000. We further looking to extend our sales in 2012 by 40%, as a result our expected sales in 2012 will be 59,000. We have an objective to capture 15% market share by the contain of declivity 2015.Market overviewHatfield is located in the County of Herefordshire originally Bishops Hatfield, is in the Welwyn Hatfield district of Hertfordshire, in the south of England. Hatfield is 20miles (32km) to the north of London and separated from the city by the commons Belt. The town has excellent transport links with the nearby airport at Luton only 14miles (23km) away and Stansted airport also within easy r each(prenominal). Most nearest cities are St.Albans, Luton, Hemelhempstead and Welwyn Garden city.We fuck target th e people of nearest cities such as Luton, St.Albans and Hemelhempstead because people from these cities have a job in Hatfield. Our high target customers will be students and rung of Hertfordshire University. (AAroutefinder.com)In Hatfield there are 17 restaurants are working but they are not offering Indian traditional food, in order to cash this opportunity I have a marketing plan for investors to invest in this restaurant. As for people living beat is concern in Hatfield, majority people belongs to middle and high class having income per year from 25,000 to 40,000. (Restaurant guide)According Hertfordshire county council in 2001 census the population of Hatfield has expanded over 28,000 and lock in growing. Due to high competition in the market challenges can be faced in the market. Competitors micturated barriers for new entrants but we can enter in the market with the help innovative ideas and competitive prices. (Hertfordshire County Council)Market ResearchAccording to McD onald (2007366) Market Research is a logical, objective collection and analysis of data about a particular target market, environment and also competition, It always incorporates some form of data collection and could be secondary research or primary research which is directly collected from a respondent. It can be classified either as external or internal. The main purpose of the market research consider is to achieve an increased understanding of the subject matter. In the preparation of this report both primary and secondary research has been conducted to collect the data. Market research enables the business to know about the challenges, barriers and need of the target customers in the market.Market classKotler (1997) states that market sectionalisation is the classification of portions of the market that is different from one another. Due to segmentation firms will be able to satisfy the need of the target customersWe will segment the market into different parts, such studen ts, young couple, and local community people. We will provide supernumerary offers to the students on Tuesday in order to attract them. Mostly students and young couples standardised spicy food we will offer spicy food to them. We will also offer coffee and tea to target the people working in offices and also entertain them with a soft music.Market segmentation of DELI-SIOUS RestaurantMarket segmentation of DELI-SIOUS can be vegetarian, non-vegetarian and target market of DELI-SIOUS will be students and staff of Hertfordshire University, young couples and local community of Hatfield. Some cities like St.Albans and Hemelhempstead and Welyn Garden city are near to Hatfield so we can also target these cities as well. To attract Indian community customers we will offer vegetarian food (for Menu see Appendix). We will target local community of Hatfield by offering Chilies food because they prefer these foods, To target students we will offer special discounts on Tuesday, to target fami lies we will offer free kids food.SWOT analysisIn order to achieve goals and objectives and overcome problems, practitioners suggest strategic tools in the form of porters forces and grind away analysis. According to Alison (2004) SWOT analysis is a strategic planning tool that helps in identifying external factors (i.e. opportunities and banes) for, and internal factors (i.e. strengths and weaknesses) that need to be considered for determining where a business should be going in the future and how to you overcome upcoming threats . On other hand David (2007) argues that Swot analysis indicating the smart objectives by analysing both internal and external factors in the business environment.SWOT analysis for DELI-SIOUSStrengthsThe location we will select is very attractive because its near to St.Albans and most people are coming from St.Albans to Hatfield.Opportunity available in the Hatfield town for traditional food, only few restaurants are offering traditional food.We have hig hly qualified and experienced staff to satisfy the need of the target customer by offering quality food and service.We will offer fair(a) prices to attract customers from competitors, moreover price give to every section of society.(www.restuaantguide.com)WeaknessesWe have some weaknesses such as we will be new in the market and to overcome this weakness we will focussing on the promotions and also by using networking.We will be restricted to resources but we looking to get loan from bank by the end of Dec 2010.OpportunitiesOpen chain of restaurantsTo make restaurant a multi cuisine to expand customer.By offering traditional food we can easily attract customers from our competitors.Threats spunky competition in the market, which can be a threat for our restaurant and also some barriers created by competitors for new entrants. But we can overcome this threat with the help of innovative food such as traditional Indian food.Recession can also be a threat for our restaurant, to overc ome this threat we will offer reasonable prices as compare to our competitors.Gap analysis for DELI-SIOUS RestaurantIn 2010 our expected sales will be 30,000 and we plan to increase by 25% by 2011, which means our sales in 2011 will be 42,000. We further aims that we also increase our sales by 25% by 2012, which means our expected sales in 2011 will be 59000. From the above graph it is quite clear that between 2010 and 2012 we have a gap of 29,000. In order to overcome this gap, we need to adopt marketing strategies in the form of insight strategy and differentiation strategy.By adopting sharpness strategy we will cut across in the market with the help of an effective advertizing and also by offering quality traditional Indian food to our target customers. After penetration in the market we will adopt differentiation strategy to differentiate our business from competitors by offering competitive services and prices. By adopting these strategies we can create a competitive advanta ge in the market.In our restaurant we will have 25 seating capacity, to reach 2010 target sales we expect 40 to 55 customer per day. In 2011 we expect 55 to 80 customers each day and in 2012 we will further expect 80 to 110 customers each day.Smart objectivesAccording to Croft (1994) objectives play a vital role in the making the marketing plan successful. He further suggest strategic tools in the form of Swot analysis, Porters five forces and Pest analysis as an environmental analysis which have to be conducted to control overall marketing plan. By clarifying the task employees will be motivated to reach the given targets and as a result overall performance of the organisation can be improved. These objectives should be smart, measureable, specific, realistic achievable and timed.Smart objectives for DELI-SIOUS RestaurantSurvival ObjectivesThe most significant objective of our business will be to penetrate into the restaurant market as well to promote our restaurant in Hatfield wi th the help of efficient advertisement by offering traditional Indian food and excellent customer service to our target customers. After penetration we need to focus on increasing the sales and market share.Profitability objectives our profitability objective is to reach 15% proceeds on capital employed by Dec 2012 because we have a loan of 50,000 provided by business investors we need to pay installments after one year. advancement objectives To increase awareness of the restaurant in the market with the help of networking and effective advertisements.Market share objectives we have an objective to increase our market share by 15% by the end of Dec 2015.Sales objectives We aims to increase our sales by 40% by end of Dec 2011 and we will further increase it 40% by end of Dec 2012. In 2009 our focal point will be the survival and penetration in the market by adopting penetration strategy. strategy to achieve objectivesTo reach the given objective 1st we need to adopt Penetration str ategy to achieve our most vital objective which can be survival objectives. Which can be practical by adopting penetration strategy and to make this strategy successful we will focus on the advertisement such as advertising restaurant in the local newspaper, distribution of leaflet in the local community and most important to use favorable and business networking. By using this strategy we will promote our business in the target market to attract the target customers. We will offer reasonable prices as compare to our competitors as a result our restaurant will be differentiated from competitors. After penetration in the market we will focus on achieving sales and market share objectives by increasing the sales and market share. We can achieve these objectives by adopting Differentiation strategy. By using this strategy we will differentiate our restaurant from competitors by offering traditional Indian food with Indian theme to our target customers and excellent customer services. Marketing sashay for DELI-SIOUS RestaurantProductProjected Meal 1 Vegetarian Mixed PlatterAccording to our mission statement we will more focus on the traditional Indian food such as herbs and spices. With the help of traditional food we can easily attract customer to creative a competitive stupefy in the marketConfirming to health standards.Free and quick home delivery service.PriceProposed price for Meal1 15.95Currently due to niche customers demand for discounts from restaurant, by offering reasonable prices we can meet their demands.Special price offers for students on Tuesday.Special price offers on advance table booking.PlaceProposed location Hatfielde will make our restaurant more attractive with the help of an effective furnishing.In our restaurants customers will feel a theme of India by enjoying the Indian traditional food.We have 50 seating capacity, we plan to increase in 2011.PromotionWe will promote our restaurants with the flyers, leaflets and advertising in the loc al newspapers.We will offer special deals to students of university as a tool of promotion.We will use our networking to promote our restaurants in the local people by arranging event in the local community.Resources assignationLoan provided by the investors is 50,000 for the coming three years with a rate of 5.6%. In order to utilise this capital in a best possible way we will use 13,000 on the hiring the building and 9,000 will be used for the building refurnishing. While 24,000 will be use as working capital and 8% of the budget will served on the promotions of the restaurant which is 4000. Total salary of the employees will be 6,800 per month which can be subtracted from working capital. For detail see appendix.MonitoringAll the operations such as advertising, finance, raw material, of our business will be supervised by manager. All the subordinate are responsible to report to the manager on daily basis and manager is responsible to report to the business owners. Purchasing of inventory will be make on a weekly basis to minimise the warehouse cost.Risk and Contingency plan and strategyCurrently one of the high risks to our business is the recession many businesses are falling down and unemployment has increasing rapidly in the UK. In Hatfield there is high competition in the market between rivals and creating barriers for entrants in the market. One more risk to our business is the substitute products such as University restaurants and forum. (Financial times)In order to overcome the above risks to our business we have a misfortune plan and strategies. To overcome the recession risk we will offer discounts to our target customers. To overcome the second risk to our business we will adopt cost leaders strategy by reducing the cost we will be able to compete with our competitors. To overcome the risk regarding university restaurants forum we will offer special deals to the students in order to attract them.ReferencesCroft, M. J.(1994) Market segmentation . 2nd edition. Published by Routledge.David F R. (2007) Strategic management concepts and cases (12th edition), Pearson international edition.De Wit, B Meyer, R (2004) Strategy Synthesis (Resolving Strategy Paradoxes to Create Competitive Advantage), (3rd edition)Thomson Business PressJobber, D. (2004) Principles and practice of marketing, 4th edition. Berkshire McGraw Hill.Luther, W. M. (2001) The marketing plan. 3rd edition. Library of congress cataloging.McDonald, M. (2007) Marketing Plans, 6th edition. Oxford Elsevier.Restaurant guide available online at http//www.restaurant-guide.com/uk+south-east+hertfordshire+hemel-hempstead.htmDate accessed 8th Dec 2009Stanley, P. (1993) International marketing. 2nd Edition. Chartered Institute of Marketing.Rieple, A. (2001) The strategic management of organisations, Prentice HallRoute planner available at httpwww.theaa.com/route-planner Date accessed 2nd Dec 2009Trip Advisor, Visiting Hatfield, Online, and www.tripadvisor.com Date accessed 7th Dec 2009Up My Street, Neighbours in Hertford, Online, Available www.upmystreet.com Date accessed fifth Dec 2009