Boschetto Target Market Customers - Assignment Example

Executive Summary Boschetto is a new bar restaurant located in London. It is a combination of a bar and a restaurant serving Italian finger food. While there are many Italian restaurants in London, there are no Italian bar restaurants even though the demand is quite apparent. These restaurants are always filled with people. Boschetto will meet the unmet demand in London with a bar restaurant offering an extensive wine list and high quality Italian finger food fine. Keys to Success Boschetto has seen the following factors as critical for its success: Logistics procedures should be carefully designed since the nature of the business requires careful programming of food and beverages in order to meet successfully the demand and control employee theft which is rather typical in this business. The other important factor is customer service and in this respect employees behavior is critical. Finally, the business model should be continuously redesigned in order to meet effectively competition and increase profitability. Target Market Customers Boshetto's target market customers are working people aged 30-45 yrs old, middle and upper middle class, and Dinkies (double income no kids). These people appreciate cuisine from other countries, they take care of their line therefore they prefer eating light but fine. This segment has an annual growth of 4% and 11,000 customers. Management Boschetto will be lead by Chiara Mastroianni. Chiara received her undergraduate degree in Business Management from University of Wales. Chiara is half Italian half British. While in college, Chiara managed a cafe.This was Chiara's first experience in a catering business and provided her with invaluableexperience incaf and bar operations, as well as insight into customer habits and preferences. Chiara has always wanted to run her own business but she felt that she had to acquire more knowledge in catering management so she enrolled in the University of Glasgow MSc Catering Management Program. Chiara knows very well from personal experience and origin Italian cuisine and culture. She travels every summer to Italy to visit her relatives but also to visit Italian vineyards and restaurants. Boschetto is a start-up Italian bar restaurant primarily serving professionals of London. The sales forecast is for about $200,000 for year two, which is estimated for year three to $290,000. Net profit is expected tobe negativein the first year and then become %in years two andthree. 1.1 Keys to Success Boschetto has identified several business factors that must be implemented in order to succeed in this competitive market. 1. Design effective Logistics procedures. This is especially important for a bar restaurant where, without logistics there will be problems in demand and supply and in addition, employ theft could cause the business a lot of damage. 2. Offer exceptional customer service. 3. Improve continuously the business model. 1.2 Mission It is Boschetto's mission to become a premier meeting spot for London professionals who are interested in high quality light cuisine and wine. Boschetto will accomplish this by offering abundant Italian finger food and wine, at reasonable prices. By providing the London market with the opportunity to gather and have an exciting meeting point will become a London favorite. The business strong belief is that a successful business is based on satisfied customers. 1.3 Objectives To become one of the premier meeting points in London that offers Italian finger food and wine. To grow thetrend of drinking wine and enjoy light food with it in contrast to beer and sandwiches. Become profitable by year two. Market Analysis Summary Boschetto's target customers are working people age 30-45 yrs old. Upper middle and middle class and Dinkies of the same characteristics. Both groups are interested in light Italian food Both groups are interested in having a regular meeting point which will look rather exclusive and posh but they have some differences therefore they need to be reached differently. 2.1 Target Market Segment Strategy Boschetto will successfully target two market segments. They have similarities but they are also different. The first group (Dinkies) is smaller in size but more profitable. They enjoy travelling and they are easy to reach. It is easy to approach this segment through advertisements in life style press. They look for new places to go either both or with their friends. They like talking and suggesting new places to their friends. The professionals are also easy to find. They come from a wide rang of industries. They can be reached through advertisements in life style magazines, serious Sunday press and financial newspapers. They like to meet during lunch breaks and they want to be in places to see and to be seen. 2.2 Industry Analysis The competitors are traditional pubs and bars and Italian restaurants. People are used to go for a pint to a pub or if they want to eat they go to a restaurant. The combination of a bar and the offering of food is rather new. The business works mostly during lunch and evening hours. 2.3. Competition and Buying Patterns Competitionis pubs and bars and Italian restaurants. Pubs and bars People go to pubs to pass time and have a drink with their friends. There are many different pubs and bars that have professionals and Dinkies as target segments. They are typically categorized by the ambiente focusing either on offering low prices, the music played and the selection of drinks. Bars are competitors for Dinkies and pubs for professionals since they tend to go there to enjoy a drink with a colleague. When Chiara was a student she managed a caf which offered her business and managerial skills. It also gave her the opportunity to know the catering business. Realizing that she needed to develop her skills better she decided to study catering management and then to start running her own business because she saw that there was a great market potential. Italian restaurants Italian restaurants tend mostly to attract Dinkies and professionals for professional lunches and dinners. There is a variety of Italian restaurants ranging from simple pizzerias, to tratorias and the more exclusive Italian restaurants which are traditionally specialized in Italian cuisine from various parts of Italy. 3. Marketing Strategy Boschetto will use two different types of marketing communication as a way to reach both the targeted market segments and at the same time increase the target market awareness of Boschetto. The professional will be reached through a series of advertisements, generally in the serious Sunday newspapers and Financial press. The advertising space in the newspapers is not expensive and is highly targeted to these people. In order to reach the Dinkies, Boschetto will reach them also through advertisements in life style magazines. Boschetto will sponsor several wine taste events, at least twice a year. Boschetto will launch a Public Relations program. Public Relations is a very cheap way to promote business but it is also very effective. The elements of the plan will be press releases concerning the various events that will take place in the bar restaurant, sponsoring wine taste and gourmet events, participating in all events promoting Italian food and culture. 4. Personnel Plan Chiara is the leader in Boschetto. As a manager and owner she is responsible for suppliers, product purchasing, marketing and sales, management, initial accounting and bar tending. Apart from Chiara's position there are the following positions that need to be filled: Bartender: This person is responsible for tending the bar, forming the wine list, managing the bartender assistants, serve drinks. When it is slow, the bartender will help in food preparation. The bartender will also be responsible for making reservations. The Bartender position will be covered by various bartenders, having part-time shifts. Chef: The Chef will be responsible for managing kitchen personnel. Forming the menu, food procurement and cooking. Bartender assistant: The bartender assistants will help the bartender to clean tables, This position will back up the bartender in cleaning tables, serving drinks, and making reservations. There will be various people holding the position. Kitchen personnel: This position will be filled by people working on a full-time basis. They will be managed by the Chef. They will be responsible for cooking, washing the cookware and cleaning the kitchen. Bookkeeper: The business will hire a bookkeeper when it will pick up and this is estimated to be during the fifth month. In the beginning, Chiara will be responsible for bookkeeping but when business picks up there will not be enough time for doing the bookkeeping so someone will be hired on a part-time basis. Personnel Plan 2009 2010 2011 Chiara $24,000 $26,000 $33,000 Bartenders & Chef $17,800 $36,000 $56,000 Bartender assistants & Kitchen personnel $14,500 $18,600 $20,000 Bookkeeper $7,200 $6,000 $12,000 Total People 8 8 8 Total Payroll $63,500 $86,600 $121,000 5. Capital resources plan & raising finance The resources needed are the following: renting the adequate premise, buy kitchen equipment and bar equipment (drinks, glasses etc.), tables and chairs. Part of the initial capital will derive from Chiara's and her parents' personal savings. needed for establishing a start up business. This is a program financed by the State for decreasing unemployment in young people and women. The program is called "Young Entrepreneurs". The machinery and equipment needed such as kitchens, fridges etc. will be acquired by leasing. 6. Financial plan It is estimated by the Break-even Analysis that a monthly revenue ofapproximately $12,000 will be neededto reach the break-even point. Break-even Analysis Monthly Revenue Break-even $12,837 Assumptions: Average Percent Variable Cost 22% Estimated Monthly Fixed Cost $10,001 7. Sources of support for new ventures Boschetto's plan is to take advantage of the premise's garden and expand its activities there by organizing special events and by offering to customers an alternative to enjoy their drink during spring and summer. In addition, Boschetto is planning to expand. Due to current economic crisis, the plan is to create an Italian taverna, offering high quality food at very affordable prices. This taverna will be located in Southern London. The sources of support for these ventures will be: bank financing, part of Boschetto's profits and participation in all state programs that aim to help financially new and old businesses. 8. Entering the market and launching the business Boschetto is planned to open in the first quarter of 2009. Prior to the opening, all appropriate market research, concerning the targeted market segments, will be conducted as well as all the necessary promotion such as advertisements that inform the public about Boschetto will be executed. References Abrams, Rhonda M. 1993. The Successful Business Plan: Secrets & Strategies. Oasis Press. Covello, Joseph A. and Brian J. Hazelgren. 1993. The Complete Book of Business Plans. Sourcebooks, Inc. Covello, Joseph and Brian J. Hazelgren. 1993. Your First Business Plan. Sourcebooks, Inc. Jinnett, Jerry and Linda Pinson. 1996. Automate Your Business Plan. Analytical Software Partners & Out of Your Mind...And Into the Marketplace. McKeever, Mike P. 1992. How to Write a Business Plan. Nolo Press. Read More