Strategy of Dinner in the Sky Launching in Pakistan - Essay Example

? Dinner in the Sky Export to Pakistan from the UK CHANGE_ME [Pick the Executive Summary The objective of this report is to conduct a thorough analysis of launching Dinner in the Sky in the market of Pakistan. Dinner in the Sky is a lifestyle brand which aims to provide a rich, memorable and a unique experience of dining literally in the sky. The restaurant holds offices in the United Kingdom at Guildford. The entity provides a dynamic experience by pulling the structure up in the air through industrial power cables, controlled by cranes which remain fixated on the ground. The aim of the restaurant is not only provide a maximum adventure of dining in the sky but also ensures safety, customer’s satisfaction and serving delicious and quality food. Besides providing an opportunity to the people to go beyond the ordinary, Dinner in the Sky’s mission is to provide a perfect environment to the customers with friendly services and utmost satisfaction (Mills et al, 2003). The restaurant marks its presence in more than 15 countries (Dinnerinthesky.com, 2012). The focus and the gist of this report would be to present the opportunity which the market of Pakistan presents Dinner in the Sky and to present a marketing plan and an audit of the market in order to successfully launch Dinner in the Sky in Pakistan. Table of Contents Executive Summary 2 Audit 6 1 Introduction to Dinner in the Sky 6 2 Environmental Analysis: 7 3 Market of Karachi – Attractiveness and Risk: 9 4 Market Segment: 12 5 Competitive Analysis 12 6 Evaluation of Strategic Options 14 7 SWOT Analysis 14 Marketing Plan 15 1 Situation 15 2 Marketing Objectives 16 3 Marketing Strategy 16 4 Marketing Tactics: 17 5 Action - Strategy and Implementation Summary 19 6 Control: 19 7 Conclusion 20 8 References 21 Audit 1 Introduction to Dinner in the Sky Dinner in the Sky is not just a restaurant with the usual attributes such as good ambiance, quality and tasteful however it is an experience all together of eating in the sky literally. Customer’s safety and security are of utmost importance to the restaurant and it takes specific measures to ensure its customer’s satisfaction. Dinner in the Sky is itself a one of a kind venture which more than 15 countries are deriving utility from. The idea of taking the diners literally in the sky and serving scrumptious food is being widely accepted throughout where the restaurant operates. The restaurant’s main aim is to provide a service and an experience which no one else in the market is providing. The big idea is to cater the client’s lavish needs of conducting their events such as important meetings, marriages etc in the sky but the primary purpose of the entity is to provide an ultimate dining experience to the customers. The restaurant’s vision is to mark its presence globally and promote the idea throughout the world (Dinnerinthesky.com, 2012). In line with the restaurant’s aim to promote the idea globally, Dinner in the Sky will launch its services in Karachi, which is the business hub of Pakistan. The market presents a good opportunity to the restaurant with a growing middle class. As the economic trend show a rise of investment and economic activity in the Asian countries, Dinner in the Sky must grab this business opportunity. Not only the economic side seems favorable but the marketing aspect of the market in accordance with Dinner in the Sky’s aims and objectives compliment the launching of the venture (Hotel, Restaurant & Tourism Directory of Pakistan, 2009; State Bank of Pakistan, 2011). 2 Environmental Analysis: 2.1 Political and Economic Analysis: Karachi, as mentioned above is the business hub of Pakistan. Apart from that, Karachi also is a home of people coming from many cultures and background. This becomes reason for some political disturbance in the city however, the higher end areas of the city, i.e. Clifton, Muhammad Ali Jinnah Society, Tariq Road, Defense Housing Authority remain calm (Hashmi, 1965). Apart from this, the economy of Pakistan is growing at a steady rate. Its GDP is recorded to be at approximately $180 billion and the GDP per capita income is $2000 (State Bank of Pakistan, 2011). One of the setbacks which the economy is facing is high inflation. The inflation of current year has risen about 4% from the previous year’s figures (Economywatch.Com; Theodora.Com, 2011). Despite this fact, Pakistan is considered as a developing economy. This fact attracts foreign direct investment in the country (Sathar et al 2009; Vaughn, 2010). 2.2 Social and Technological factors: Research shows that the people of Karachi prefer to dine in restaurants as the most common activity. The city forms a lucrative for many international franchises such as: KFC, Mr. Burger, Pizza Hut, Cinnabon, Butler’s Chocolate Cafe, Snog etc (Karachisnob.com, 2012). Besides this, the city also holds corporate head offices of many businesses. Brands like Nike, Pierre Cardin, Adidas, Gucci, Prada etc also used Karachi as the point of entry in the nation (Rubina et al, 2004). As far as the technology is concerned, Dinner in the Sky would use the technology which the construction industry uses and as the construction industry’s prominent presence can also be found in the city, the technology can be easily acquired (Mills et al, 2003) 2.3 Legal and Environmental factors: Dinner in the Sky, being a Belgium owned chain, would be franchised out to Pakistan. This will require the investor to already own property in the city. The property could either be leased or purchased. The person who would bring in the franchise will have to own Dinner in the Sky’s franchise in the UK and according to the international law, will have to purchase property in Pakistan as an organization or an individual (Mehdi, 2001). 2.4 Porter's Five Forces As the research data suggests, there are about 30 new businesses which enter the market of Karachi each year. Besides this, because of the cheap and convenient availability of the resources available in the market, the suppliers have less negotiating power (David, 2005). There will be no threat from competition as Dinner in the Sky is itself a one of its kind experience and there are no other restaurants which offer what Dinner in the Sky has to. This would reduce the Rivalry from Competition. Dinner in the Sky can further sustain this position as creating or copying the idea would need advanced training. On the other hand, when the food is concerned, the customers would have the highest negotiating power as there are a lot of other options available to the customers. It is the experience which Dinner in the Sky will provide which will keep the customers hooked (David, 2005; Mills et al, 2003). 3 Market of Karachi – Attractiveness and Risk: About more than a hundred restaurants, organized into entities as mentioned above, form the Restaurant industry of Pakistan (karachisnob.com, 2010). Operative restaurants are further sub-categorized into the kind of Menu which they carry. As mentioned, the customers prefer dining out more than any other activity and on the weekends, the restaurants are filled with customers who look for good quality food at reasonable prices along with a family-suitable ambiance (Industry Reports, 2009). The ideal target market of Dinner in the Sky would be the 10% of Karachi’s population. This would include the people who belong to SEC A and B predominantly (Saqib, 2007). Apart from the target segment, data presented by the “Hotel, Restaurant & Tourism Directory of Pakistan” by Economic Research & Statistics Section Pakistan suggests that the restaurant industry is steadily rising on an annual basis (Industry Reports, 2009; Hotel, Restaurant & Tourism Directory of Pakistan, 2009). 3.1 The 12 C’s Framework: 3.1.1 Country Pakistan sports a growing middle class and the country records a GDP of $180 billion and a GDP per capita of $2000 (State Bank of Pakistan, 2011). As mentioned above, the economy is also facing inflation which slows down economic activity (Economywatch.Com; Theodora.Com, 2011). The demand for eateries however, is high in Pakistan because of the fact that the people prefer to dine out predominantly (Sathar et al 2009; Vaughn, 2010). 3.1.2 Concentration & Consumption The target market of Dinner in the Sky would have most access to the up-market commercial areas of Karachi which are named above (Hashmi, 1965). The country, besides sporting international brands in the market, also has other international apparel brands in the market (Rubina et al, 2004). Mentioned before, studies show that about 30 new businesses enter the market and have the same type of menu to offer to the customers. Their only competitive edge is their unique taste, ambiance along with the price (Industry Reports, 2009; Hotel, Restaurant & Tourism Directory of Pakistan, 2009). 3.1.3 Culture and Consumer Behavior Dinner in the Sky alters its menu for each country in which it operates. In Pakistan, the restaurant would aim to serve Asian-Swedish food with a touch of Arabian cuisine. This choice of menu would most appeal to the market as it is not only unique but also as per the taste buds of the Pakistani market (Pakistan’s Tourism Division, 2006). Another cultural and behavioral factor is the preference of ambiance in the choice of dining out. Dinner in the Sky has to offer the ultimate experience to the customers of taking them to the sky (Industry Reports, 2009). 3.1.4 Choice & Capacity to play Dinner in the Sky’s direct competition would be the following restaurants which have established their brand name in the market: Village Salt and Pepper, Lal Qila (The Red Fortress), Revolving Restaurant, Shan-e-Mughlia (The Demeanor of the Mughals) and Evolution. The target market of this population is the same to what Dinner in the Sky would target. The only difference would be the preference of adventure which the people would choose with Dinner in the Sky. Besides catering to the same markets, the pricing strategies of the restaurants are similar to Dinner in the Sky (Karachisnob.com, 2012). The other restaurants which cater to the low-end market do not impose a threat to Dinner in the Sky as its domain of operations is not in the market where these medium-tier restaurants are positioned (Hasan, 2002). In contrast to the competition’s Unique Selling Point, Dinner in the Sky will provide an ultimate dining experience which none amongst the competitors would be capable of (Pakistan’s Tourism Division, 2006). 3.1.5 Channel As clarified in the Porter’s Five Forces models, the suppliers of raw material have little negotiating power as the availability is not an issue. However, the equipment which Dinner in the Sky would be using to propel the structure up in the sky would need consistent maintenance checks in order to ensure customer’s safety (Mehdi, 2001). 3.1.6 Communication The mode of communication which Dinner in the Sky will use for its promotions would be word-of-mouth marketing. As the idea of launching a unique service itself would create news, Dinner in the Sky will not have to spend huge amounts of money to promote itself. Besides launching a 360 degree campaign, Dinner in the Sky will adopt word-of-mouth marketing to generate a customer base besides launching a will also mark its presence on the social media. Besides this, as a promotional campaign, the restaurant would use BTL and sales promotional strategies (such as discount coupons, vouchers etc) to establish a customer base and generate revenue in the long-run (Mills et al, 2003). 3.1.7 Contractual Obligations & Commitment Being a Belgium based franchise Dinner in the sky will have to purchase/lease property to establish the franchise on. As noted above, the franchisee will have to show itself as a corporate entity or an individual purchasing property for investment purposes in order to be able to bring the franchise in Pakistan (Mehdi, 2001). Apart from this, to begin and sustain its operations, Dinner in the Sky will have to comply with the quality standards of food and safety rules. Apart from this, the standards of kitchen hygiene and standards of restaurant equipment should also be me (Industry Reports, 2009). 4 Market Segment: The target market of Dinner in the Sky will be the elite. Consumers who belong to Social Economic Class A+, A, B+ and B comprise of about 10 percent of the population of Karachi (Saqib, 2007). The brand will be positioned as a premium brand and as a value leader in the restaurant industry in terms of food quality and the ambiance. 5 Competitive Analysis Dinner in the Sky would be competing directly with the restaurants which carry a theme. They are Revolving Restaurant and Evolution, Shan-e-Mughlia (The Demeanor of the Mughals), Village Salt and Pepper and Lal Qila (The Red Fortress). The customers predominantly visit these restaurants to enjoy banquet meals along with their friends and families. The restaurants are premium priced and cater to the same market which Dinner in the Sky is targeting. Amongst these restaurants, Revolving Restaurant would be Dinner in the Sky’s closest competition as it gives an excellent ambiance to the diners. The structure is built on the top floor of a high rise building which slowly revolves and gives the diners a 360 degree view of the city. Apart from this, restaurants which compete on the basis of prices are not direct competition for Dinner in the Sky as the markets which they cater are totally different. As opposed to dining in the city, most Karachites prefer to go the extra mile and drive to sub-urban restaurants for the ambiance of laid-back, peaceful environment there (Hasan, 2002). Moreover, the restaurants and their details mentioned on the webpage of Karachi Sno.com, gives a further picture of the kind of restaurants which are in business at Karachi (Karachisnob.com, 2012). Dinner in the Sky would mainly compete on the basis of its unique idea along with its other competitive edge of its menu items. For this, the restaurant’s whole operations, from waiters to management will have to be directed towards one common goal of providing their customers with the best experience (Dinnerinthesky.com, 2012). The idea presented by Dinner in the Sky is unique and ground-breaking for the market of Pakistan. The extraordinary dining experience would differentiate the restaurant from its competitors. Its decor, design, experience and the ambiance which would be in the sky will make a strong and unique distinction between itself and the competition. Apart from the dining, the restaurants in Karachi differentiate themselves through the quality of their food as well. Dinner in the Sky’s menu would be tailored to suit the need of the market of Pakistan (Pakistan’s Tourism Division, 2006) 6 Evaluation of Strategic Options The target market of Dinner in the Sky is most receptive to the social media. Secondly, going for print publications and PR activities such as advertising on Hotel broachers and guides, targeted publications etc would help promote the brand in the right market. Electronic media is not selected here because the restaurant is not targeting the mass market and the media is also expensive. Secondly, limited promotions to the elite would attract the right audiences and hence, would compliment Dinner in the Sky to become a brand of the same stature (Kapferer et al, 2009). 7 SWOT Analysis 7.1 Strength Dinner in the Sky’s biggest strength is the idea itself of literally taking the diners in the sky. Be it marriage, a meeting or any other important occasion, Dinner in the Sky would make it memorable for the customers. The idea is highly successful throughout the world where Dinner in the Sky is present. Secondly, another of Dinner in the Sky’s strength is its unique menu (Mills et al, 2003; Dinnerinthesky.com, 2012). 7.2 Weakness Major weakness for Dinner in the Sky is the requirement to conduct frequent maintenance checks in order to ensure the customer’s safety. Another weakness is the limited number of seating which will need more trips to the ground and to the sky between dining sessions. This would also limit the turnover capacity as only a limited number of people could be served in a day (Mills et al, 2003). 7.3 Opportunity The opportunity of having no competitors in the market is the greatest which Dinner in the Sky can exploit. Besides this, the markets of the rest of Pakistan are also open to be explored (Hotel, Restaurant & Tourism Directory of Pakistan, 2009). 7.4 Threat The threat imposed by the political unrest in the city must be faced tactfully. However, the business being operating in an area which is free from such hindrances would help Dinner in the Sky avoid the interruption (Economywatch.com, 2011). Marketing Plan 1 Situation The SWOT analysis suggests that Dinner in the Sky must look forward to further expansion in the other metropolitan cities of Pakistan. Not only this, the unique idea which the company has, would create ripples in the industry and the opportunity of having no competition would give Dinner in the Sky capture the first mover advantage and grow steadily through its introductory phase into growth and maturity stage respectively. However, as the weakness points out, Dinner in the Sky will have to save on its running costs or increase the frequency of trips which would lower the average costs of operation. Dinner in the Sky must therefore find the most optimum point/frequency of its operations where it would be profitable rather than overloading its operations which would increase variable costs to the extent that the company would start to lose money with the added frequency of trips to the sky (Economywatch.com, 2011). 2 Marketing Objectives Dinner in the Sky’s marketing objectives would revolve around the concept of SMART: keeping in mind the Specifics, measurability, achievability, realistic and time-specific. By the end of the first quarter year of its launch, Dinner in the Sky must be able to generate 50% return on investment. At the end of the first quarter, Dinner in the Sky aims to increase its operations to thrice a day. This would mean that in a day, the restaurant must have 75 bookings. Of the market share amongst the competitors, Dinner in the Sky must capture a share of 30% of the market in terms of sales and turnover. Dinner in the Sky is to generate a brand awareness of atleast 75% of brand awareness towards the end of the first quarter. By the end of the first year, Dinner in the Sky should have its operations in Lahore. 3 Marketing Strategy 3.1 Market Segmentation As mentioned in the Audit, the suitable market segment for Dinner in the Sky Restaurant will be the elite. The SEC A+ to B will be the core target market. When the restaurant goers of Pakistan, particularly Karachi are studied, the market can be divided into three categories or segments (Rubina et al, 2004). Occasions/Events; Business Officials; The Family Dinner in the Sky would cater to all the sub-segments which fall in SEC A+ till B. Customers who would book for their occasions and events, the corporate sector for their professional meetings and families which dine out regularly. Dinner in the Sky would focus on the family class as the restaurant will generate the major chunk of its revenue from frequent diners. 4 Marketing Tactics: 4.1 Marketing Mix: 4.1.1 Price The service which Dinner in the Sky would be providing to the market is unique and hasn’t been done before. With no competition from the market, Dinner in the Sky does not have to keep its prices low and hence, to skim the profits from the upper class, Dinner in the Sky would keep its prices at a premium (Kapferer et al, 2009). 4.1.2 Place The beach of Karachi is the most ideal location for Dinner in the Sky to commence its operations in. The area is peaceful and attracts large audiences on weekends. Moreover, the area also is the most desirable location for a retail setting as it is located in the vicinity of the elite residential area of Karachi. It is rated as the third amongst the best retail markets in the state by the local Chamber of Commerce. This way, a location on the beach is most accessible by the restaurant’s core target market. On record, a research states: “There are about 400 plus businesses in a ? square mile area with the average sales of $18,000 per square foot” (Industry Reports, 2009). 4.1.3 Promotion: To promote the brand of Dinner in the Sky and to communicate the message to the audience, a mix of promotional vehicles is to be used in a manner which would make the consumers perceive the image of Dinner in the Sky how the marketers want them to. Keeping in mind, the company’s USP, the following mix of promotional tools are to be used (Kapferer et al, 2009): Print media: Local newspapers and magazines Hotel guides: Chamber of Commerce brochures Direct mail: Subscriber lists, offices for delivery Social Media: Presence of Facebook, Twitter and interactive website Misc: Yellow pages, sponsoring charity events 4.1.4 Service/Product: The service which Dinner in the Sky aims to provide would create a huge gap in the market as the restaurant does not have any competitors to match the service and the unique idea which Dinner in the Sky would present. The restaurant will have a movable kitchen. The customers would place their orders on the ground and while the food would be prepared, the crane would be lifted up 180 feet to give the diners a ride in the sky. When the food would be prepared, the structure would be brought down and after when the food would be served, the structure would be hoisted up again to give the customer a dining experience in the sky. The structure would consist of about 27 seats (Mills et al, 2003). Initially, because of the climatic constraints, the restaurant will only operate on an appointment basis and the restaurant will operate 3 days a week which will then be increased as the load of appointments would increase. 5 Action - Strategy and Implementation Summary During the introductory stage of Dinner in the Sky the company will aim to establish itself as a brand with a unique brand image. This would be done by consistently providing the customers with a high quality service in every aspect of its operations. Dinner in the Sky would aim to be the value leader in its category. With a unique service, mixed with premium pricing and moderate level promotions, Dinner in the Sky would uniquely position itself as the value leader in the restaurant industry of Pakistan. After when the market of Karachi becomes mature, the franchise will then be launched in other metropolitan cities of Pakistan namely Lahore and Islamabad (Mills et al, 2003; Economywatch.com, 2011). 6 Control: Possible issues which Dinner in the Sky may face relate to the city’s political unrest. However, the place in which the restaurant is located is considered as an elite and up-market. Massive investment projects are going on along the coast of the beach. Besides this, keeping frequent maintenance checks would be expensive as operating the cranes, along with meeting the safety standards for the structure itself would require skilled and technical staff which might be difficult to find because the whole project would be a new thing for Pakistan altogether (Mills et al, 2003). 7 Conclusion Providing a memorable experience to the customers would help Dinner in the Sky stand out from all the other restaurants. Dinner in the Sky’s vision to provide a lifetime experience to the diners would create a strong and lasting impact on the minds of the consumers who would experience not only a ride in the sky, but also with delicious food served in an extraordinary manner (Mills et al, 2003; Dinnerinthesky.com, 2012; Pakistan’s Tourism Division, 2006). 8 References DAVID, F. R. (2005). Strategic management: concepts and cases. Upper Saddle River, N.J., Pearson Prentice Hall DINNERINTHESKY.COM (2012). Dinner in the Sky. 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