Bliss Casual Dining Restaurant

Bliss Casual Dining Restaurant

BlissCasual Dining Restaurant

Phase3 of Marketing strategy

Executivesummary

BlissCasual Dining Restaurant as the name suggests seeks to offer a finedining experience in a casual relaxed and tranquil environment in thecity of Saskatoon. In light of bother the micro and macro environmentof the business, will seek to expandits operations by increasing spending per customer, increasing brandawareness and carrying out print advertisements in the local printmedia. The local newspaper shall be used for its wide circulationwhile the local magazine will be used for its ability to target aspecific niche market. The most potential threats and challenges thatthe restaurant faces pertain to local economic forces that pose athreat to the firm’s market share earnings of pensioners and seniorcitizens. Additionally, the corporate clients form an important partof the market. It is recommended that Bliss should utilize furtherits relationship with corporate clients to offer complementary mealtickets at half price to their partners to reward their loyal clientsand employees. These clients will get the chance to acquaintthemselves to the brand and in the process create brand awareness. Tofurther create awareness of the brand and increase efficiency at therestaurant, opening hours will be extend during holidays and weekendswith a view to increase sales. Themed events will be held on specificweekends largely oriented towards cultural diversity in Saskatoon. Anumber of events such as a cooking competition for seniors will beheld regularly to celebrate our clients and also offer the restaurantfree publicity in the local press. It is also recommended thatemployees be trained on carrying out the new recommendations such asup selling in order to achieve the stated objectives of therestaurant both in the short term and long term.

Currentmarket situation

Asa relatively small business, Bliss has identified a specific segmentof the market to service as opposed to attempting to serve allparties in the market. Specifically, the restaurant uses differentparameters to segment and identify its key market. The parameters ordimensions used include demographic factors (age, sex, ethnicity,family size, income), psychological factors (ambience, environment).In combining all these dimensions, the Bliss targets baby boomers(born in 1946-1964) and senior citizens who have the time andpatience for wait service. These targets are also defined by theirincome with the key target being baby bombers and senior citizenswith an annual household income of $30,000 and above with a smallfamily that can easily be accommodated in a regular table of four atthe restaurant.

Thesecond market segment identified by Bliss consists of corporateclients. This will entail businesses offering voucher meals and giftcards for their employees and clients at the facility. These vouchercards and gist cards will be redeemable during weekends when theregular customer flow will have subsided. The firm restaurant willrely on good service, quality food and good relationship withcorporate clients and individual clients to market the hotel throughreferral and word of mouth. With increased brad awareness in thelocal market and what the restaurant promises to offer, theestablishment will be able to grow its market share and even expandinto new market segments with time.

Blisshas also identified a unique marketing positioning strategy in themarket. The market position will be viewed as a unique place in themarket that will be associated with the restaurant and a brand imageand marketing message that will continuously and consistently portraythe restaurant in a certain way. At the same time, the establishmentmust be distinct and unique by providing value and attributes thatcan customers can only get at Bliss. This position must be engravedin all aspects of the communication and relay a consistent message onthe desired place or position of the restaurant in the marketplace.For this reason, Bliss Dining Restaurant aims to satisfy seniors whoalways value privacy and convenience in life. The Bliss endeavors tobe a casual dining restaurant that is designed to make dining anexceptionally affair in a tranquil and friendly environment for babyboomers and senior citizens.

CurrentMarketing Situation

SWOTAnalysis

Strengths

  • Clear market segment that is not well served in the market

  • Private parking lot that can accommodate more than ten cars

  • Located in a tranquil environment

  • Use of ATM’s

  • Provision of room and room service

  • Has enough space to ensure that tables are well spaced out

Weaknesses

  • Does not address the younger consumers who have a higher dietary intake

  • Located relatively further away from the market in a less populated area

  • Relies on a small budget hence cannot engage in aggressive marketing and promotion campaigns

  • The restaurant will operate in a small scale hence cannot enjoy the benefits of scale

Opportunities

  • An aging population means a growing market size

  • Competing players address younger markets

  • Growing popularity of healthy living

  • Patriotism and loyalty in Canadian home-grown brands

Threats

  • Competition from existing players such as Calories

  • Growing inflation rates which means Canadians are more poorer than they were a few years ago

  • Decrease growth in wages and social benefits to pensioners decreases the market size

MarketingObjectives for 2016

Toconsolidate its position in the market as the restaurant of choice ofelderly people and corporate clients, the Bliss restaurant shouldcapitalize on its strengths and opportunities and address itsweaknesses and threats. For this to happen, Bliss has set thefollowing objectives.

Objective1: Increase profits for 2016 by 10%.

Asan existing business, Bliss can step away from addressing revenuealone to addressing profits. Activities that support this objectiveinclude:

Tactic1: Increase prices.This strategic choice will be highly informed by the elasticity ofthe market. Bliss will be targeting seniors earning $30,000 andabove. These seniors have a lot of disposable income as they are mostlikely to have no or very few dependants. The fine dining market hasalmost the same attributes as a Luxury market is that consumers arewilling to pay a premium price for quality service. Thus priceelasticity of demand in this market segment is minimal becausepositioning the hotel as offering a fine dining experience promisesto deliver quality at a premium price. This means a change in pricewill not result in any significant change in demand.

Itis recommended that Bliss should introduce a more expensive productoffering. Bliss will choose to either increasing prices on all foodsand beverages served or to increase prices on specific popular fooditems.

Option1 Increasing prices all around

Growthin prices over time is expected due to inflation. However, a rapidincrease in prices should commensurate with a better product offeringin terms of quality of food and service delivered to clients.

Prosand cons

Thefine-dining market segment does not exhibit price elasticity ofdemand as clients are willing to pay more for superior products andservices. Such is expected among middle and high income earners. Forsenior citizens who have a short time to live, they are moreinterested in quality and value for money that makes their last phasein life worthwhile.

Option2: Increase price of specific products

Increasein prices will only target specific product offerings. This willensure that consumers do not feel as if they are being unfairlytargeted for exploitation.

Itis recommended that main dishes and wines should be the only items tohave their prices increased.

Prosand cons

Increaseprices for specific products will be expected to increase revenue butspare the restaurant from appearing greedy as a result of blatantincrease in prices. On the other hand, it will deny the restaurant asignificant amount of revenue on other product that will not besubject to price increment.

Objective2: Increase sales:

Highersales will imply higher profit levels. There are two main options toincrease sales.

Tactic1: Increase opening hours

Oneof them is to increase opening hours. Given that the corporateclientele and the senior citizens are less likely to visit theestablishment on weekends and holidays, the restaurant will considermaking special offers for weekends and holidays to keep a constantflow of customers.

Itis thus recommended that Bliss should put in place culturally themedmeals to give customers an additional reason to visit the restaurant.For instance, Asian themed dishes should be offered every firstweekend of every month.

Prosand cons increased opening hours

Howeverthis option is likely to increase costs to the firm resulting fromextra wages paid to employees for working over the weekends andholidays. On the other hand, this option will greatly increase theefficiency and utilization of the resources of the hotel. Forinstance, opening for longer hours will increase utilization of spaceand rent for the space.

Tactic2: Less expensive ingredients

Lessexpensive substitute ingredients can be used to increase profitmargins for the firm. Furthermore, unnecessary ingredients in certainmeals and beverages can be excluded altogether depending on marketresponse.

Prosand cons

Customersmay feel short changed in case they notice that their trusted mealsand food items are made from cheap ingredients which are likely toaffect quality and also affect the perception and public image of therestaurant.

Objective3: Decrease costs

Efficiencyand reducing wastage will be pursued by the firm. Reducing wastagemakes the restaurant operations sustainable which is line with thepositioning of the restaurant as being in touch with nature in termsof tranquility.

Tactic 1:Reducing wastage

Blisswill develop new operational policies that will reduce waste in thekitchen. Certain ingredients will be reused and meals registering thehighest levels of leftovers from clients will be subject to reducedportions. Wastage in other commodities such as water and power willbe reduced by training the employees on sustainable operations. Therestaurant will also ensure good ventilations and natural lighting toavoid reliance on air coolers and utilize natural light.

Prosand cons

Apartfrom cutting costs, this will enable the facility to operate in asustainable manner in this age of green living. This will go a longway in creating a positive public image of the restraint as aresponsible corporate citizen. On the other hand, it may requireintensive training for employees before they can adopt new ways ofdoing things in their operations that cut on wastage. Such trainingcosts a lot of money and many man-hours that the restaurant does nothave at the moment.

Tactic2: Recycling

Somematerials will be recycled. This may include water that can betreated and recycled for cleaning purposes. Some kitchen refuse shallbe used in flower gardens and flower pots.

Prosand cons

Thiswill not only reduce costs but help the restaurant in achieving itssustainability goals as corporate citizen. On the other hand, someclients may feel that reuse of some materials such as water mayreduce the expected quality of meals and services at the hotel.

Commonmarketing objective

Increasebrand awareness with target group by 20% in one year.

Therestaurant looks forward to increase the persons familiar with thebrand and what it stands for by 20% in one year. Brand awarenessposes many benefits to the restaurant. To start, strong brandawareness strengthens the firm’s position in the market as theestablishment that caters to senior citizens, adults, corporatecitizens and special needs clientele. Strong brand awareness alsoimplies that the restaurant can command higher prices for its goodand services and at the same time reduce price erosion. Strong brandawareness also breeds customer loyalty and advocacy. This is veryimportant for Bliss as the business does not have vast resources toengage in extensive marketing and promotions campaigns. Brandawareness also plays a significant role in facilitating new productsacceptance because customers know the standard of quality and valueto expect from a new offering from a trusted brand. This way, Blisswill not have trouble introducing new offerings through productextension.

Increase“spending per customer” by 10%

Increasedspending per customer will increase revenue and profits for therestaurant. Pursuing this objective holds many benefits for therestaurant. They include increased efficiency and utilization ofspace and resources at the facility. When spending per customerincreases, there is also better utilization of marketing resources asa fewer number of customers are targeted by unit sales.

Marketingtactics

Recommendedtactics to increase brand awareness

Createa customer loyalty program.

Thisprogram is mostly likely to tart with creating a database of frequentclients at the establishment. Creating such a database will increaseservice delivery and customer satisfaction. Specifically, with adatabase, employees will learn to address clients by their names,learn their favourite table in the restaurant, their common dininghours and even their favourite meals and beverages. This way, eachand every customer will feel valued and will trust the establishmentto always deliver. Frequent customers will be awarded occasional freemeal item or special discount after a specified amount of spendingover time or after a specified number of visits to the establishment.

Connectwith local businesses and corporations

Links,connections and strategic alliances with local businesses can beagreed on many levels. These local businesses provide many numerousoccasions for networking and also f or marketing and increasing brandawareness. Bliss should liaise with local supermarkets, gas stationsand other businesses to offer complementary meal tickets or vouchercards to their loyal customers. This will offer the restaurant a newchance to get new customers into the establishment and get familiarwith the brand and what its stands for. Once customers are introducedinto the brand of Bliss they are more likely to visit later on theirown.

Recommendedtactics for increasing spending per customer

Crossselling

Crossselling is an important strategy in service delivery. This processinvolves in selling a core product and then offering a relatedservice r product at a great price. In this case, the restaurant willlearn to strategically plan the menu that includes coupling certainmeals and making suggestions on the menu on important accompanimentsto main dishes. This will include items such as a glass of expensivewine with a certain meal. Waiters will also play a great role inmaking these suggestions especially with senior citizens who mighthave trouble reading the menu or who are not accustomed to finedining.

Menuarrangement

Additionally,the menu will be strategically organized to promote up selling. Thiswill see complex main dishes put against less expensive simple mealitems to encourage clients to demonstrate their class and standardsby going for their more complex sounding meals. Again, the menu willsee the most popular dishes and the expensive ones placed atstrategic places on the menu to increase pending per customer. Themost strategic places on the menu include the right top corner andthe bottom right corner. These areas should thus be occupied byexpensive meals that guarantee increased spending per customer.

Organization/ Logic

Thecurrent strategy has not increased brand awareness to the desiredlevels. A slight change in strategy in addressing brand awarenesswill be carried out. Bliss will carry advertisements in a localnewspaper specifically in the Star Phoenix Business Section duringthe first quarter of 2016. The objective is to inform the babyboomers, adults and elderly persons in the neighbourhood of whatBliss Casual Fine Dining Restaurant has to offer. The main messagewill be to inform them that there is a unique place that offers awide range of Canadian and international meals located in a tranquiland peaceful environment that they can visit to dine and socialize.

Printmedia is preferred to other media for a variety of reasons. One isthat the print media is still a major source of news for the babyboomers as opposed to the generation X and millennial who source mostof their news online on social media platforms and news websites.Second is that print media advertising is non-intrusive in naturecompared to direct selling. On the other hand, newspapers such asStar Phoenix Business Section carry numerous adverts and they do notaddress a specific market.

TheBliss should carry an advert in the local city magazines such as thePlanet S Magazine and the Saskatoon Home Magazine. Magazines whencompared to newspapers and other media platforms target a specificniche market which Bliss can target through placing ads in suchmagazines.

Blisswill host and/or sponsor public events to gain free publicity. Forthe year 2016, the restaurant will seek to host and sponsor culturalfood events, community activities and competitions to gain brandawareness. Such food events will afford the publicity that thefacility needs and offer a chance to create brand awareness and givethe market chance to learn more about the restaurant. The restaurantwill create sponsor a senior citizen cooking competition which willbe turned into an annual event.

Swotreview

Thefirm does not have the desired market presence. Based on theprevailing market opportunities and threats, the firm shouldimplement the recommendations made. They include increasing salesper customer by increasing prices, reducing wastage and carrying outadvertisements in the local print media to increase brand awareness.