A1 Sweets & Restaurant:Marketing Plan

By: Farhan Khanani and Brendan Sequeira

PrimerPhase One

Market Analysis, A1 Sweets & Restaurant Situation, Competitive Analysis

Phase Two Macro Environment Analysis, SWOT Analysis, Key Issues

Research 200 Surveys Completed and Analyzed

Phase Three Recommendations, One-Year Action Plan, Budget,

Controls

Agenda

SWOT Issue Analysis Financial Objectives Recommendations Marketing Objectives & Strategies Action Plan Proposed Budget

SWOT Analysis-Recap

Strengths

High quality food with real nutritional ingredients

Strong consumer confidence 100% vegetarian menu Reasonably priced Incorporates a cultural background to

give it an edge

Strengths Cont’d

Current locations are spacious and comfortable

Menu is complementary for both lunch and dinner

Staff is well trained and have great product knowledge

In business for 11 years and well settled

Weaknesses

No room for meat lovers - narrows target market

Closed Mondays Consumer awareness still lacking Lack of diversity in the menu No breakfast menu

Weaknesses Cont’d

No delivery service Ineffective website Lack of attention towards Social

Media

Opportunities

Increase in dining out at full service restaurants(Stats Canada)

Popularity of drive-through and delivery systems increasing

Full service restaurants are the largest and most profitable sector holding 35% of industry revenue

Opportunities Cont’d

Healthy food awareness is growing allowing A1 to advertise as 100% vegetarian to increase demand

Threats

Labor and food costs continue to increase forcing restaurants to increase their prices

Holding largest revenue in the sector means greater competition

General competition in food industry is high

Dining out is considered luxurious by many consumers - posing a threat to A1

Threats Cont’d

Must abide by Canada’s Food and Drug Act as part of Health Canada

They must follow Canadian Food Inspection Agency’s regulations

Current economic state still keeps consumers thinking twice about dining out as opposed to cooking at home

Issue Analysis

To determine the problematic areas of A1 Sweets business we conducted an Issue Analysis and the following are the results of the analysis: Small Billboard Company Name Price Differences Lack of Management

Issue Analysis Cont’d

Higher Overhead Costs New Brampton Location/Not utilizing

potential target market Product Inconsistency

Financial Objective for One YearFinancial Objectives

Increase sales by further $600,000 raising them to $2.2 million from previous year figure of $1.6 million.

Recommendations

Within their marketing objectives, A1 sweets is limited to low budget alternatives in order to make a splash. Following are suggestions that will help them in succeeding:

Recommendations

Change the name of their company

Expansion to BramptonOnline Ordering needs to be

revampedAdapt to the cultureSignage needs to be bigger

Marketing Objectives & StrategiesTarget Market Objectives

Age: 18-65 Race: All Ethnicities Psychographics: Vegetarians/Health

Conscious Individuals Income Level: Low-Middle Income

Marketing Objectives & Strategies Cont’dTarget Market Strategies

Increase advertising to the College across the street and implement student discounts

Advertise in local newspapers and community gatherings as a healthy food option

Marketing Objectives & Strategies Cont’dPositioning Objective

To implement A1’s image as ‘A healthy individuals choice at a respectably low price, with great service and quality standards.’

Marketing Objectives & Strategies Cont’dPositioning Strategy

Implementing quality assurance standards and metrics

Reaching out to the local community and urging them to be more conscious about their health

Marketing Objectives & Strategies Cont’dProduct Objectives

Continue selling 100% vegetarian menu with the possibility of adding more vegetarian dishes

Avoid transporting the product from one location to the other

Marketing Objectives & Strategies Cont’dPositioning Strategies

Produce product at their respective locations

Marketing Objectives & Strategies Cont’dPricing Objectives

Lower the cost of food production allowing for greater profit margins

Make dining in and take-out prices equivalent

Marketing Objectives & Strategies Cont’dPricing Strategies

Producing products at respective locations will allow for lower costs (avoids transportation)

Keeping same prices throughout gives consistency to restaurant ethics

Marketing Objectives & Strategies Cont’dDistribution Objectives

Stop delivering products from the Scarborough location to the Oakville location

Distribution Strategies Direct delivery system, delivering raw

materials to respective locations

Marketing Objectives & Strategies Cont’dSelling Objective

To increase overall sales by 15% in a one year period

To increase sales from 11am - 2pm To increase the number of online

promotion sales

Marketing Objectives & Strategies Cont’dSelling Strategy

Increase promotions in all mediums centralized in Oakville

Show more effectiveness in the use of social media to attract college crowd

Train employees in up-selling techniques

Marketing Objectives & Strategies Cont’dService Objective

To provide the customer with the best possible quality service

Service Strategies Employee CRM training Employee reward system

Marketing Objectives & Strategies Cont’dAdvertising Objectives

Increase frequency on currently used mediums and explore new mediums in new Brampton location

Marketing Objectives & Strategies Cont’d Advertising Strategy

Advertise lunch special signs in plaza

Signage facing on coming traffic to increase awareness

Radio channel advertisement

The Oakville Beaver Newspaper Advertisements

Take part in health care discussions during morning TV shows

GPS listings and Google Maps listings

Marketing Objectives & Strategies Cont’dPublic Relations Objective

To become an active participant in community events in the Oakville and Halton region

Public Relations Strategy Donate catering to eastern church/temple

events Sponsor local kids soccer teams Sponsor local marathons in the area

Marketing Objectives & Strategies Cont’dResearch & Development

Objectives

Explore more vegetarian dishes Understand nature of college students

and how to get involved with a positive image

Consumer Spending Habits and Current Price Sensitivities

Action Plan

April 1st 2012 Change The Company’s Name

April 15 to April 29 2012 Implement The New Billboard

May 1st to May 15th 2012 Implement Cooking Measuring Metric

June 1st to July 1st 2012 New Pricing Changes In The Menu

Action Plan

July 15th to July 31st 2012 Analyze Current Production Location

August 1st to September 1st 2012 Set In Motion Brampton Location

September 1st to October 5th 2012 Focusing On Public Relations

Proposed Budget

Based off last years figures: profit margin of 37% total annual sales figure of $1.6 Million The net profit is $592,000 $307,500 will be re-invested into

expanding

Marketing Activity Comments Percent of the budget1. New Brampton Location-

Acquisition + Lease Expand into a market with

higher target market reach $210,000- 68.3%

1. Hiring a new manager Having another manager is essential to look over the locations as Viqas the owner cannot be in both places at the same time

Salary of $50,000 a year

$50,000- 16.3%

1. A1 Sweets Billboard Change Changing the sign in front of the store to make it more appealing

$2,500- 0.8%

1. Changing company name Changing the company name/legal changes and others

$5,000-1.6%

1. Implement Product Quality measures

To assure that they have consistency in the food quality metrics need to be placed and systems

$5,000-1.6%

1. Advertising for new Brampton location in Brampton

Putting up signages, billboards, posters.

$25,000- 8.1%

1. Website Maintenance Hire professional IT consultants to keep product website up to date and incorporate online ordering.

$10,000-3.2%   TOTAL = 100%

Thank You!

Any Questions?

References Statistics Canada, census 2006. (2006). Retrieved Web 2 Nov

2011 from http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-591/details/Page.cfm?Lang=E&Geo1=CSD&Code1=3524001&Geo2=PR&Code2=35&Data=Count&SearchText=Oakville&SearchType=Begins&SearchPR=01&B1=All&Custom=

Statistics Canada, census 2006. (2006). Retrieved Web 2 Nov 2011 from http://www12.statcan.ca/census-recensement/2006/dp-pd/prof/92-591/details/Page.cfm?Lang=E&Geo1=CSD&Code1=3524001&Geo2=PR&Code2=35&Data=Count&SearchText=Oakville&SearchType=Begins&SearchPR=01&B1=All&Custom=

Farhan Khanani