Business Strategies for Bestcheese Restaurant & Cyber - Case Study Example

Executive Summary. This business plan report has been prepared by the board of directors of St. Luke’s Hospice, a charitable organization to seek fund from the bank help them start a restaurant and a cyber café to meet some hospital expenses. Due to the high demand by the patient, the hospital has not been able to give adequate support as it’s required due to lack of fund as they depend on donors and well wishers to fund their project. The capital was not enough are seeking $300,000 from the bank to assist. They are starting a restaurant & a cyber café to serve the community around. The report has highlighted major areas of concern in starting a new business. The report has discusses marketing and marketing sales strategies. Among the marketing strategies are the market segment, competitive advantage, market differentiation and commercialization at the stage of introducing the product to the market. The report concludes by presenting the profit and loss and cash flow projections for the company. Introduction. St. Luke’s Hospice is among the charitable hospitals which is a charitable organization which provides free medical to all. They finance their activities through donors and community well wishers. Currently the hospital has been facing some challenges due to poor respond of the donors. The organization needs to raise more funds through other small investment which can help improve the hospital supplement their expenditure. Through a consultant, the hospital management is to prepare a business plan proposal to the bank in order to raise fund to finance the project. Through the income from the Bestcheese Restaurant and cyber, the hospital will be able to supplement their expenses. This plan has been designed and developed in order to obtain finances from the bank. Product & Services. Bestcheese Restaurant & Cyber café is a proposal by the management of St. Luke’s Hospice to the bank to seek financial assistance. By introducing Best cheese Restaurant & Cyber café, it will serve the public by ensuring they are offered affordable and good foods with very convenient set up services. Bestcheese Restaurant & Cyber offers unique services to their customers. The restaurant will also ensure university students from nearby get their very best cheese close to their door step of their learning institution. A part from the satisfaction, Bestcheese restaurant will provide other activities like conference hall for meetings and this will also generate income towards the charity. Bestcheese Cyber and Restaurant aims to offer the best to their customers and win customer loyalty (Morden A R, 1994) which will help Bestcheese survive in the market; and in the entire service industry. They ensure they have the best computers and a reliable internet service provider to meet their customer needs and ensure efficiency is achieved (Kotler P.1996). Market Marketing Objectives. Best cheese restaurant concentrates to employ the concepts and techniques of strategic marketing management strategies (Morden A R, 1994) in order to meet and fulfill its business aims and objectives. It concentrates on giving best the services to the public. Best cheese Cyber would be operated in order to improve and supplement the operating expenses of St. Luke’s Hospice. This demonstrates that the company would concentrate on targeting the right customer in order to develop long standing relations with them. In order to meet the organizational and business goals and objectives it is necessary that the marketing goals and objectives are incorporated and organized (Kotler P.1996). The company will launch its products in the local market and will concentrate on winning and maintaining its customers in order to maintain its position in the market (Kotler .P1996). Market Segmentation Market segmentations is where customers grouped on the basis of their behavior, age, life style and habits with the aim to get people with similar needs (Appleby R C, 1994)) and has several advantages to the marketers as they are able to identify customers .After taking the bigger population, then the group is split into smaller segment according to either age or lifestyle commonly referred to as the top-down approach (Day, G.1980). This will help Bestcheese improve at identifying customers according to their needs (Pine J.1993) and make it as a priority to serve them. Bestcheese aims at doing every thing to serve all the groups and ensure better prices and quality food is offered with superior service and of which Bestcheese has recognized majority of their customer are the university student. Selection of Target Market. It is important to have the exact and accurate information of the business target market in order to survive in it (Kotler, P.1996).For this purpose it is necessary to execute thorough and in the depth market research on the standards of the industry and behavior and attitudes of the customer (Malhotra, Naresha K., 2002). Bestcheese shall be proactive in their management and adopt the process effectively. There is also a need to deal with the customer needs and requirements efficiently, which has to be considered in order to ensure that the organization can meet and fulfill its aims and objectives (Appleby R C, 1994). The Competition. It should be noted that several restaurants are present in the local region, which concentrate on providing food at affordable prices which brings very high competition (George J. Stigler, 1987). From this perspective it is necessary for Bestcheese to have unique and affordable prices for their product. This would increase the chances of survival in the competitive market (McKenna, R. 1988). Competitive Advantage There are several ways in which Bestcheese Restaurant & Cyber would have competitive advantages over their competitors: High quality product innovation and fresh cheese burger in town. Qualified Employees with better training on customer satisfaction to meet their requirements. Bestcheese is located at the middle of town with big institutions surrounding it and adjusted to St. Luke’s Hospice and shares the ground rent with the Hospice which means most of the fixed cost is spread to the advantage of Bestcheese Restaurant & Cyber. Commercialization Plan Market Differentiation. Market differentiation is considered to be the main and essential features where the product and services are positioned to various market segments with different unique attributes to each product or a service (Morden A R, 1994).The aim is to ensure the business offer outstanding first class superior services to their customers. It also ensures that demands of the customers are met and that they are content with new products. According to, Webber, A M.1997, suggests that a strong brand name and image of the company can help it reach its goals and objectives and a great brand taps emotions of the people. Bestcheese Restaurant will provide the advantages offered by competitors. Market Positioning. Market positioning is where the marketers give a picture of the product and services to customers into their mind (Kotler P.1996) and is part of the marketing procedure. It concentrates on employing effective and efficient strategies which would help the organization to meet its aims and objectives (Appleby R C, 1994) for this purpose the main features of the product have to be emphasized and advertised in order to make sure that it is successful in the market. The company would concentrate on targeting the right customers in order to develop long-standing relations with them. It is necessary that the marketing goals and objectives are incorporated and organized and taken as apriority as part of management goals to be achieved (Appleby R C, 1994). Marketing Plan and Sales Strategy Market Penetration. It should be noted that when entering the market, those already there at first may seem a problem since most customers out of curiosity may (Morden A R, 1994) shift from their old customers to the new entrant. At this point Bestcheese shall take the advantage to advertise their product to them hence retains them and win customer loyalty. Marketing Strategy. The main aim would be to concentrate more on the product that is, Bestcheese Restaurant & Cyber with its original food, entertainment and communication facilities would offer a better opportunity for the consumers as well as business people. For this purpose advertisement would be used in order to deliver the presence, image and the message of restaurant. Bestcheese Restaurant would use all forms of media, print media, broadcast media, city guides, direct mails and other ways in order to advertise its products and message. Aims & Objectives. Bestcheese Restaurant & Cyber idea of developing it to support the St. Luke’s Hospice is and has got support from the public at large especially due to the needy cases at the hospital. It would be assumed that the Bank will give a positive response and would give the fund to Bestcheese Restaurant in order to start up the project with immediate effect. The goal of the organization is to ensure that it will successfully maintain its position and its quality uniqueness of food and its message to support a charitable organization. Risk Evaluation. It should be noted that any new investment carries some risks (Appleby R C, 1994) and Bestcheese Restaurant & Cyber has taken provision on that. The achievement and success of Bestcheese Restaurant is dependent on the strength and acceptance of consumers. After a period one year there is a possibility that several other organization would try to copy its product and services. Management. Key Employees & Principals. Bestcheese Restaurant & Cyber shall be operated as a subsidiary of St. Luke’s Hospice. However some of the management shall be taken from outside and the management has identified the best chef to head the restaurant and also a very competent Information technology to head the Cyber café. These two have been identified as best an employee from previous employment hence there is good will from the personnel side and has the best and most reliable board of directors Compensation & Incentives. Bestcheese Restaurant will concentrate on increasing the wages and salaries of the employees once they start operating. At the same time it will also give them special benefit packages. Financial Data The Bestcheese Restaurant & Cyber project to have an equity capital of $1,420,000 with a projected loan capital expected from the bank of $300,000.The structure of the investment is listened below. Projected profit and loss for the 12-month period. $ Total Revenue for the period 3,460,000 Total Expenses 2,820,000 Net Profit 640,000 Total Assets of the company 1,720,000 Liabilities 300,000 Owners Equity Capital 1,420,000 1,720,000. The cost of capital per annum shall be 12% Cash flow projection for the 12-month period. The total cash flow shall be based the average revenues for the period less any non cash items. ((Jennings A R, 1993)) The expenses shall also be net of non cash items (Jennings A R, 1993).According to the above figures from profit and loss projection; the company shall have cash available Investment payback period. The loan by the bank is expected to be repaid within a period of eighteen month with an interest rate of twelve percent and is rated as the lowest in the market. Important Assumption. Because of the economic recession, there is a possibility of slow economic growth. It is expected that there would be modest growth after a year Weekends would be considered to be days in which highest amount of sales would be generated. The revenue calculations are on the basis of competitive price. The daily spending for lunch would be around twelve pounds per person dinner would be at thirty pounds per person and about twenty pounds at no-dining hours. Conclusion This plan has been designed and developed to obtain finance from the bank in order to open Bestcheese Restaurant to subsidize the charity work for St.Lukes’s Hospice. The financing is the main requirements in order to start the new project as well as to support the Hospice in their demand for the patient. By introducing Bestcheese it will generate several lucrative opportunities for the Hospital Best cheese restaurant and cyber café concentrate to employ the concepts and strategic management in order to meet and fulfill its business aims and objectives. It concentrates on launching Bestcheese in order to win its clients as well as to support the hospital. Market segmentation has been focused to be the tool by the marketers in introducing the restaurant to the community and public at large References Day, G. 1980, "Strategic Market Analysis: Top-down and bottom-up approaches", Pine, J. 1993, "Mass customizing products and services", Planning Review, vol 22. Kotler, P.1996, Principles of Marketing, 4th edition. Malhotra, Naresha K. 2002, Basic Marketing Research, a Decision-Making Stigler G, J. 1987, Competition, the new Palgrave Dictionary. Jennings, A R.1993, Financial Accounting, 2nd Edition. Morden, A, R. 1994, Elements of Marketing, 3rd Edition. Appleby R, C.1994, Modern Business Administration, 6th Edition. McKenna, R. 1988, Marketing in the age of diversity. Webber, A, M.1997, Fastcompany, issue, No. 10 Read More