International Marketing of a Restaurant - Essay Example

INTERNATIONAL MARKETING MARKETING PLAN FOR A NEW RESTAURANT The focus of the present research is to develop a comprehensive marketing plan for establishing a new restaurant in a specific area keeping in view the patterns of international marketing. The aim of this study is to find out the feasibility of successful launching of restaurant according to the demands and requirements of visitors of hotels on the one hand, and the business environment and corporate scenario on the other; so that the foundations of new restaurant can be laid on the same footings where the prevailing traditions as well as fresh demands of the customers can be presented in a stylish and innovative way. The paper also analyses the significance of the food industry and major factors forming and regulating the industry and the environment under which it experiences its gradual but continuous growth. The present study also makes SWOT analysis of the topic under study keeping in view cultural factors and global phenomenon within which the industry observes significant boost during the last century. The future trends and dimensions of the industry have also come in the fold of present study. TABLE OF CONTENTS Abstract Introduction……………………………………………………………….1 Overview…………………………………………………………………..1 Assumptions……………………………………………………………….2 Situation Analysis………………………………………………………….3 Business Environment……………………………………………………..4 SWOT Analysis……………………………………………………………5 Marketing Objectives………………………………………………………7 Marketing Strategies……………………………………………………….8 Marketing Segments………………………………………………………..9 Targeting and Positioning………………………………………………….10 4 Ps……………………………………………………………………….. 10 Action Plans……………………………………………………………… Control System………………………………………………………….. Conclusion……………………………………………………………….. References…………………………………………………………………. INTRODUCTION International marketing refers to the carrying out and management of marketing activities in more than one country. In other words the term refers to the commercial transactions of the product of a company in international market for the consumers of other states along with the country where the product is being manufactured. The world has been transformed into the global village in the contemporary age where the activities in one part of the world are monitored and taken into account in all other parts of the globe too with keen interest. These activities have introduced new trends and dimensions in the changing market scenario. The companies also present their products for the consumers abroad by launching comprehensive campaigns regarding marketing and advertising to introduce before them the benefits these products contain. Western nations and especially the United States rely on thousands of independent enterprises to convert resources into desired goods and services. Moreover, these enterprises provide most of the initiative for improving and adapting the flow of goods and services to new wants. (Newman & Logan, 1976:1) Hence marketing research and plans have become essential parts of strategic analysis. OVERVIEW ABC Food Company is one of the famous food brands of the USA, which has grown in an environment of perfect competition. The USA is famous for holding world-class food brands including McDonalds, KFC, HFC, AFC, Subway, Pizza Hut and others, which manufacture fast foods and high quality edibles for individuals and ordered in mega events, functions, gatherings, parties and corporate meetings. The wide choice of Chinese, American, German, Indian, Italian and other foods has not only offered variety for the people, the competition has also found its way within the industry to present and manufacture the product in more and more refined and innovative way. Keeping in view the business environment of food industry, the ABC Company decided to open a restaurant where not only latest food products could be offered to the individuals according to their tastes, but also recreational activities must also be presented to the visitors belonging to different age group, gender, community and socioeconomic set up. ASSUMPTIONS Globalization has captured the whole world in its fold and leaves its indelible impacts on all corporate firms and organizations everywhere, which has affected the strategic plans of even international brands including Coca Cola, Marlboro, Honda, Louis Vuitton, Microsoft Corporation, Hitachi and others. The food industry has also seen the changes to a great extent. Sources of information-flow are regulating the strategic schemes of industries. Faster the communication flow, better be the services and products of an industry. Even the gigantic Microsoft Corporation adheres to speedy information gathering to revise its strategic plans for inventing something new and novel for consumers. The dealers and sales agents are the best source of information, who inform the companies regarding latest demands of the customers. Better the relations with the traders and merchants, more the chances of a company to grow. Published material including journals, periodicals and newspapers help manufacturers work on specific direction and dimension as well. Since big companies have hired the services of technically skilled and qualified staff, which are knowledgeable and experienced personnel and can predict the future market scenario, the chances of their development in future are brighter and brighter. Immigration has opened new dimensions and discoveries for the people coming from various regions; they seek innovation in presentation and tastes. As man cannot live without edibles, his requirements also increase with the passage of time. Moreover, customers communicate with rival and competitor companies regarding new product that benefits the customers in two ways. One, the rival companies also produce the same product and secondly choice for the customers increase while the price of the products decreases. SITUATIONAL ANALYSIS Situation analysis refers to the “systematic collection and study of past and present data to identify trends, forces, and conditions with the potential to influence the performance of the business and the choice of appropriate strategies.” (Marketing web) Situation analysis is highly supportive in making strategic analysis of a corporate organization. The foundation of an organization rests on the philosophy, values, vision and goals of the management. All organizations are faced with the need to manage strategies: some developing from the position of strength; some needing to overcome significant problems. (Johnson & Scholes, 1993:3) Strategic management not only thrashes out the decision making regarding major issues of grave concern within an organizational structure, but also it focuses on the implementation of the strategy planned in a proper way in order to obtain the appropriate results within appropriate time. Simply put, strategic planning determines where an organization is going over the next year or more, how its going to get there and how itll know if it got there or not. The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular product, service or programme. (McNamara, 2006) BACKGROUND SITUATION Industrialization and technological advancement has absolutely revolutionised contemporary life. It has not only increased leisure hours, but also created vast opportunities to spend these hours according to one’s own will. Automation has reduced work hours and increased free time. People, now, maintain many leisure hours after work to play, converse, read, attend functions, arrange ceremonies and involve in other activities out of their own. (Zaidi, 1997:3) Visiting the restaurants and dinning out has become fashion of the day. It is therefore food industry is getting projection from all corners. There are many restaurants in the area, an urgent need of a new hotel still exists that can offer the individuals more recreational and amusing atmosphere. ABC restaurant offers Western, Chinese and Thai foods to the customers in its other branches. The area does not have any other restaurant which offers other than western products. In the same way, the company has recently conducted a research plan in order to get acquaintance with the tastes and desires of the local community, which clearly reveals the picture about the future of the branch of new restaurant. OPPORTUNITIES AND OPTIONS People belonging to different classes always seek for two major options for a product they are going to avail; first the quality and presentation and second, its price. Since the US based companies are selling their foods at high rates, there must be need for a hotel which has command over price control of its products. In the same way, the fast foods cause weight increase; it is therefore obesity has appeared as one of the most dominant health problems in the USA. The products of ABC Company are not only economical, but also hygienic. In the same way, the visitors look for the nearby place of leisure consumption. Being established at the heart of the city, the hotel will be within 30 to 45 minutes drive away from all corners of the city. Thus, there exists vacuum for the promotion of such a standard place of eating and enjoyment. SWOT ANALYSIS SWOT analysis concentrates on both the internal and external factors that influence the business strategy of an organization. The business strategy is developed while conducting a comprehensive comparison of an organization’s success factors on the one hand, and competitive resource requirements and the firms internal capabilities and resources on the other. SWOT analysis reveal all the advantages and disadvantages regarding market position of an organization. The SWOT Analysis of the ABC Food Company is as under: STRENGTHS: The dedicated team, experienced staff, innovative ideas, penetration in international market environment, ideal atmosphere, regular customers, reliable partners and joint venture with multinational products especially beverage giant Coca Cola, tangible and intangible assets and intellectual property are among the strengths of the company. Its fast growing products, wide range of consumers, experienced management, policy formulation, inventory, innovation and unique presentation are among its plus points that keep it at a higher rank in production and popularity. The entertainment options for different age groups and social classes make the restaurants of the company a remarkable success. WEAKNESSES: Estimating the weakness the ABC Company include lack of focus according to the prevailing traditions in the hotel industry of modern age. People today believe in variety and speciality. Hence, the presence of too much other-than-food activities may eclipse the glamour of the new restaurant, which is going to make headway in an environment of perfect competition. Similarly, people prefer fast, ready-made and light stuff in foods in order to move speedily. Moreover, globalisation has revolutionised the market scenario of the world at large, and the participation of countless products in the market has diversified the clientele. The world class brands do not give local and domestic brands way to make progress. They have developed trust in people by their high quality manufactures and strong campaign advertising. It is therefore, the new companies must keep such weaknesses in view while launching their product in the market. OPPORTUNITIES: New products have been introduced in a dynamic way with admirable quality and heart melting presentation surely captures the eyes, hearts and attention of the individuals. Furthermore as people all fed up of old commodities, they love to try new things to make them part of their use. It is therefore the vacuum for newly introduced firms and organizations is always welcomed provided they have been launched properly and in a systematic way. Moreover, it is the age of public gatherings, mega events and joint ventures. If the ABC Company gets success in becoming a part of international events, the chances of its unabated triumphs are brighter and brighter. THREATS: The trend of fast foods has brought imperative changes in consumers’ attitudes. People now prefer branded products as well as use of company names in hotels and gatherings. Globalisation factor has also increased competition among the nations and products. Especially China is offering each and every commodity on cheap rates. Therefore, the companies should also take necessary measures in policy making. The management can overcome this threat by applying the strategies of competitive advantages. MARKETING OBJECTIVES Non financial market metrics are applied by the management to estimate the marketing achievement by making the situation analysing and setting marketing objectives of a company. The marketing objectives of ABC Company are as under: Establishing a restaurant where customers can have best recreational activities along with dinning Providing the people with variety of food products under one and the same set up Fulfilling the growing needs and requirements of the regular visitors of restaurants Maintaining the growth of food industry by filling the vacuum through gorgeous presentation and innovative ideas Providing the individuals with delicious, economic and hygienic food stuff near their place of work and dwelling Anticipating and responding swiftly to the customers’ requirements and rival companies’ activities MARKETING STRATEGY Marketing strategy is a predestined component of organizations, which is highly supportive in respect of enhancement of the volume of business, product and sales of the companies. All the business activities revolve around strategic planning of the organizations and determine the steps taken towards some specific direction that may lead to the growth and development of the company. Strategic management not only thrashes out the decision making regarding major issues of grave concern within an organizational structure, but also it focuses on the implementation of the strategy planned in a proper way in order to obtain the appropriate results within appropriate time. The marketing strategy of the ABC Restaurant is as under: Extensive advertising campaign to introduce food products to the target market to get the individuals informed regarding restaurant and its products Keeping both the cost and price lower than the competitors to enhance sales volume Introducing variety of stuff under the supervision of team of expertise Enter into joint venture with world-class brands to penetrate the market in an imperative way Complying with cultural and traditional values of customers in food and entertainment Always preparing for presenting to the customers something new, novel and innovative Providing services, marketing, advertising and technical assistance and training to its customers, stakeholders, staff and dealers. It will support the company strengthening its position in a far better way than competitors MARKET SEGMENTATION and ACTION PLAN Market segmentation is usually made on the basis of three factors: Characteristics of Population: This includes the age, gender, socioeconomic status and life-style of the target population. ABC has targeted the families as its population, so people of all age groups are included in it. Consumption Situation: It is related to brand consumption and purchase behaviour. The regular visitors of hotels are included in the marketing segmentation of ABC. Consumers’ Requirements: It focuses on the quality, quantity and price rates of a company in comparison with the rivals and competitors. ABC maintains such variety of products, including continental dishes, soup, desserts and others, that distinguishes it from other restaurants and food companies. TARGETING AND POSITIONING Target market is a group of people or organizations for which an organization designs, implements and maintains a marketing mix intended to meat the needs of that group, resulting in mutually satisfying exchanges. (Lamb et al, 2005: 540) Targeting the market and consumers is most important factor during the journey towards achievements. People trust those who put them in the proper context and distrust those who resist the images they seek to establish. (Culbert, & McDonough 1985:171) In this perspective, the regular visitors belonging to different socioeconomic status and age group are the target population of the restaurant’s marketing plan. Positioning concerns with the demand of a product in market. 4 Ps------PRODUCT, PLACEMENT, PRICE AND PROMOTION STRATEGIES Four Ps play dominant role in the development of products, which are as under: PRODUCT STRATEGY Product strategy discusses the methodology regarding the launching and presentation of a product in the market. It also concentrates which population should be the target consumers and how these products can be reached to these consumers. Further, it discusses how the consumers can be motivated for using a specific product dropping that of the competitors and rival companies. Product strategy of the restaurant based on the characteristics of the target market, market share objectives, desired product positioning within the market, and profit objectives. It focuses on innovative ideas, comfortable atmosphere, variety of items and expertise management in product strategy. PLACEMENT STRATEGY: Placement strategy refers to the allocation of the finished goods and commodities to the various markets for marketing and sales. Gould et al. (2000) look at product placement as global phenomenon, a key tenet of their research considers the importance of standardising or adapting products placement messages since product meanings may not transfer between countries. While examining the product placement strategy of the ABC Restaurant, the company intends to inaugurate its hotel at the centre of main market where there are bright chances of constant visiting. PRICE STRATEGY: Price is one of the most dynamic phenomena in the subject of marketing. Price determines the value, quality and worth of a market product and urges the consumers take action accordingly. Companies and organizations determine the prices for all articles keeping in view the cost, profit and the price of the products of rival companies. Keeping in view this point, the newly planned restaurant must present the food products in economical rates. Looking into contemporary market scenario, the growing marketing leader of modern age i.e. China has presented its products in different qualities. The Chinese enterprises stick to high quality while producing commodities for the rich western countries, while it concentrates on low price (and low quality too) while making the products for Asian and African countries. Some of the customers demand for high quality whatever it costs; on the other hand, many customers look for hygienic food in economical rates. ABC intends to determine price strategy according to the prevailing scenario of business environment. PROMOTION STRATEGY: Companies articulate theories and conduct researches on the basis of theories to promote their products. The companies always look for the security and growth of their product; thus, they try to penetrate in an environment where its product could be promoted. ABC Company has also devised the same. During its promotion campaign, it intends to distribute its food stuff to offices, colleges, schools and shops free of cost for one week in order to introduce it in market. Similarly, it is determined to invite business tycoons of the region at dinner as a gesture of friendship. Since the upper class regulates markets and the middle and lower classes just imitate them, capturing this class means one has penetrated into the whole target population. CONCLUSION Different strategies are devised by the manufacturers in respect of distributing their products in different areas, regions and population. ABC has entered the food industry with high aims and comprehensive strategic plans in order to capture the attention of customers. There are some markets in the international arena where the highest quality and refinement are most wanted and in vogue for the customers. It is therefore, the ABC aims at manufacturing in such a way that neither the supply of the food product overcomes the demand and imbalance the supply-demand relationship in the region, but also its price should not be so high that it becomes unaffordable for the consumers. As food is the fastest growing industry, many factors have to be kept in mind while making strategic plan. The dynamics of international strategy motivate the international companies alter their strategies according to the changes taking place rapidly around them within the framework of business environment. Remaining updated with the fast changing world and adopt immediate policy accordingly is key to success for a company under the present state of perfect competition. BIBLIOGRAPHY Collis, D. J., & Montgomery, C.A. (1995, July-August). Competing on resources: Strategy in the 1990s. Harvard Business Review, 73(4). Culbert, Samuel A. & McDonough, John J. 1985 Radiant Management. Power Politics and the Pursuit of Trust. The Free Press New York. Gates, Bill.1999. Business @ The Speed of Thought. Using a Digital Nervous System. Warner Books, USA. Johnson, Gerry & Scholes, Kevan. 1993. Exploring Corporate Strategy. Text and Cases. Third Edition. Prentice Hall New York. 1993. Lamb, Charles W, Hair, Joseph F & McDaniel, Carl. (2005). Essentials of Marketing South-Western College Pub; 8 edition. McNamara, Carter 2003. Strategic Planning (in non-profit or for-profit organizations). Adapted from the Field Guide to Non-profit Strategic Planning and Facilitation. (Quoted in http://www.managementhelp.org/plan_dec/str_plan/str_plan.htm) . Newman, William H and Logan, James P. 1976. Strategy, Policy, and Central Management Seventh Edition, South-Western Publishing Company, West Chicago. Zaidi, M. H. (1997) Leisure Time Activities in Relation to Social Class—A Sociological Analysis. An unpublished Thesis submitted to the Department of Sociology, University of the Punjab, New Campus Lahore. Read More