Marketing Plan fof Chun Po Restaurant - Case Study Example

Executive Summary Chun Po restaurant is a restaurant present in Australia which is into fast food business and serves Chinese food. The restaurant has used the concept of fast delivery and good service and has ensured that they are able to locate their restaurant at a point where they are able to target their set customers. The report looks into various aspects of Chun Po restaurant strategies to market itself. The report presents a situational analysis which helps to understand the different opportunity and threats both from the internal and external environment. It also throws light on the critical success factors. The report also presents the position of Chun Po restaurant on the product life cycle. Various matrixes like BCG Matrix further help to understand the strategy. The report then looks into the marketing objective and also looks into the higher level marketing objective. Light on the positioning and concept map and brand value has been stressed upon which helps to understand the future potential and opportunities Chun Po restaurant has. The report then looks into the marketing strategies where it looks into the target market and the specific strategy in relation to price, product, place and promotion. The report then looks into the implementation phase and the manner it will be monitored. Thus the report presents a bright picture for Chun Po restaurant and based on the marketing strategies adopted by the restaurant it can transform the manner in which it is working. Contents Introduction 4 Purpose of the report 4 Background of the company 5 Situational analysis 5 External Environment 6 Internal Environment 6 Critical Success Factors 7 Problem & Opportunities Statement 8 Product Life Cycle 8 BCG Matrix 9 Marketing Objective 10 Higher Level Marketing Objective 11 Branding & Brand Positioning Strategy 12 Marketing Mix Strategy 14 Budget 16 Cognitive Response 16 Conative Response 17 Implementation Plan 17 Evaluation & Control process 18 Conclusion 18 References 19 Introduction Chun Po is a restaurant in Australia which is offering Chinese cuisine and has been successful in it. The restaurant has been successful and is looking towards devising ways to improve their methods of operations. The report thus looks into various aspects of marketing of the restaurant and the position on the various matrixes. The restaurant is thus looking towards identifying the customer well and is looking for ways to ensure successful marketing of the restaurant. Purpose of the report To identify the situational analysis for Chun Po marketing which includes the internal, external and critical factors To identify the product life cycle for Chun Po restaurant and the position the restaurant has To develop different matrix for Chun Po restaurant like the BCG matrix, GE Matrix and McKinsey matrix To identify the marketing objective and higher level marketing objectives for chun Po restaurant To identify the branding strategy, positioning and brand perception map for Chun Po restaurant To develop a marketing strategy for Chun Po restaurant To identify the factors on the basis of which the performance of Chun Po restaurant will be evaluated and steps taken To identify the budget requirements and the manner in which Chum Po restaurant will help to market its restaurant Background of the company Chun Po is a restaurant in Australia which is offering Chinese cuisine and has been successful in it. Chun Po Restaurant is Located in the Glenferrie Road, Malvern. The surround areas are have shops and eating centres. Presence of university in the adjoining area makes it a place where consumers like to dine. (Chun Po Chinese Restaurant, 2010) This has helped them look for opportunities to grow and ensure that they are able to deliver quality food to its customer as service and quality is a very important aspect in the restaurant industry. (Chun Po Chinese Restaurant, 2010) The restaurant thus has been able to build and grow and is looking towards marketing of the restaurant so that it is able to improve the brand image. Situational analysis The situational analysis for Chun Po restaurant will help to understand the internal and environment factors affecting the restaurant. It throws light on the areas the restaurant can work upon and also helps to find the critical success factor which will help to shape the working of the restaurant. External Environment Analyzing the external factors and its effect on the restaurant industry will help to understand the opportunities the market presents. The PEST analysis for the same has been provided in the following chart (PEST, 2010) Political Economic New legal restriction Decrease in national income reducing purchasing power Change in government policies Rise in interest rate affecting borrowing power Increase taxation rates Increasing inflation reducing purchasing power Changing future laws Reduction in wages   Increase in taxes Social Technological Decrease in population size Rise in capital expenditure due to changing technology Change in lifestyle Rapidly changing research and development growth Concerns about obesity Increase cost of machinery Rise of health conscious people Increase maintenance cost The trend analysis thus presents how the external factors will affect Chun Po Restaurant and other restaurants and companies need to craft strategies to counter those. Internal Environment The internal environment analysis of Chun Po Restaurant will help to identify the areas where the company can work and strengthen itself into a better player. Strengths Satisfies customer needs of hunger which is a basic need Large market and increasing customer base due to population growth Variety of cuisine suiting all customer needs Growth in super markets and universities nearby enabling more customers Weakness Limited shelf life there by making the product become unfit for consumption Brand power require to market the product pushing the cost to rise Critical Success Factors The critical success factor for Chun Po looks as follows Opportunities Huge potential in the school going segment as there is an upward trend in people eating outside. (Ferrell, 2002) This provides an opportunity to tap those and ensure that the benefits reaped due to those multiplies. Opportunity to launch more variety of cuisine to attract different section of customer. This will be critical and will provide a guide and direction to move into a new area where Chun Po is better able to capitalize. Threats High distribution cost will act against Chun Po and will be a hindrance to their critical success factors which needs to be watched out to ensure that they are bale to deliver better service Health issue surrounding the beverage industry is another area which Chun Po needs to work upon to ensure that they are able to draw maximum from their critical factors. Problem & Opportunities Statement The problem and opportunities statement for Chun Po thereby presents the areas which Chun Po restaurant can work upon and throws light on areas which will help the restaurant chain to grow in size. It also presents the opportunities that the restaurant has and the manner which it could transform itself towards a better demanded restaurant. The marketing strategy mentioned below will further help to understand the scope and growth potential Chun Po marketing has. Product Life Cycle The product life cycle for Chun Po restaurant will help to understand the position the restaurant has on the cycle and the future potential can be determined on the basis of it. The product life cycle looks as follows (PLC, 2010) Chun Po restaurant is somewhere in between the growth phase and introductory phase as the restaurant is slowly getting fame. With the passage of time more and more customer are pouring in the restaurant which helps to present an opportunity for growth in the near future. The BCG matrix below will further help to understand the potential. BCG Matrix The situational analysis helps to identify the BCG Matrix for Chun Po restaurant. It helps to find areas where the company needs to work on. It also identifies the sustainable competitive advantage for Chun Po restaurant. It looks as follows Market Growth Rate Stars Question Mark Soups & Mussels Chinese food Sea Food Cash Cows Dogs Relative Market Share Here, we see that Chinese and sea food contributes the most towards the revenue and is the cash cow for the company where as the soups & mussels is a growing sector is a question mark because if the company follow a proper strategy it could become a cash cow else it might not. (Anweshabh, 2010) Chun Po restaurant thus has an advantage to move up which is seen in the GE Matrix. The GE matrix also throws light on the competency and area where Chun Po restaurant has a slight edge. Strategies need to be in place to ensure that Chinese and sea food continues in the same manner. Chun Po restaurant needs to put concentrated effort to ensure that soups and mussels transfer towards cash cows. This have the potential and proper marketing strategies could lead towards ensuring it. Marketing Objective The product life cycle and different matrix helps to identify areas Chun Po restaurant needs to work on as its marketing objective for the near future which will help to increase its business. The marketing objectives are Marketing of the Chun Po restaurant by having more variety of food for the customer to choose from. This will help to attract different section of consumer towards the brand Ensuring that the culture continues so that people get a feel of the local ambience and having those will attract special section of customers. Ensuring different loyalty programs so that the customer come back again to the restaurant. This could be done by ensuring special benefits to the frequent customers and ensuring that they are given better service Designing different plans for different section. Like for the students the restaurant can have different combo rates and for others different. Also having different days in different days of the week can help to execute the higher level marketing plan and will help to create a niche market. Higher Level Marketing Objective The higher level marketing objective which will help Chun Po restaurant in the long run and ensure a steady path of growth would be Chun Po restaurant according to the PLC and BCG Matrix needs to concentrate on the growing segment i.e. soups and mussels and lay stress by having special plans and schemes so that more revenues starts to come from this. The importance of having loyalty programs and schemes which helps the restaurant move from the introductory phase towards the growth phase where the returns multiplies and Chun Po restaurant is better able to convert people into potential customers. The PLC and BCG matrix also throws the importance of adding newer product which could be converted into cash cows and provide the opportunity to the restaurant to test those products as the phase in which Chun Po restaurant is favours such growth. Branding & Brand Positioning Strategy Brand Value Companies work to find brand value. It is done by finding the brand equity. Brand value is “the extra amount which the company gets due to perceived image of the product which might have not been possible in case the product was not branded”. (VanAuken, 2007) The difference is because of quality. Consumers rate the product high. It has resulted in getting extra benefit. This is what companies prefer. They work towards it. Brand Concept Map This is a technique which is widely used. “Concept map is a diagram showing the relationship among concepts and are graphical tools which helps to organize things in a better way and shows knowledge”. (Novak & Canas, 2006) This is widely used. It helps to know areas to market. The marketing and all departments know area of concern. The brand concept map of Chun Po restaurant helps marketers. It helps them decide their strategy. The concept maps looks as follows Figure 1 Concept Map Thus, we see that it helps to identify areas to work on. It also helps to decide the course of action. Chun Po restaurant on the basis of concept maps knows how to improve brand value. This is helping them to decide strategies. This helps to decide ways in which the company can move. Brand Positioning Strategy This helps to attach customer to the product. It is a concept which companies are working on. This is building royalty. “Brand positioning is a positioning strategy formed on the basis of attachment to a product which helps to build identity for the product”. (Susan & Lee, 2008) This helps to remember the product easily. Chun Po restaurant hotels have been successful in it. Chun Po restaurant has built it due to “the culture heritage and good service through proper hospitality which has helped them build a market”. They know the customers wants. This is helping Chun Po restaurant work on those. The culture is also helping them. The hotel has ensured that it continues. This is helping them to integrate people. The group has also been created “due to standards and values that Chun Po restaurant has”. It has been consistent in those. Thus loyalty has grown. Customers prefer it. Thus, Chun Po restaurant has been able to use it well. Marketing Mix Strategy The marketing strategy for Chun Po restaurant can better be identified by finding the target market and the strategy the restaurant uses for the target segment Target Customer The targeted audience for Chun Po has a mix of different age group and people based on the requirements and taste preference. The targeted audience is as follows School & College Goers: Chun Po targets students and college goes as they have universities in the adjoining area. The cuisine of the restaurant matches with the taste of the younger generation thereby helping them to attract the correct customer base. Visitors to malls: Chun Po also targets the customer who visits the shopping mall as there is constant flow of customers there. This will help to ensure that the restaurant always has customers and since the Chinese cuisine is cooked quickly so it helps the visitors to the malls to get food quickly after their purchase. The target customer base helps to identify the marketing strategy fot the target customer as follows Pricing Strategy (Capturing Value): Chun Po has priced its product in such a manner that it eyes the target audience in and delivers them proper services. This helps the company to earn extra. Chun Po has also been able to do it. It has been able “to generate more than its competitors who is reflected in the margins”. (White, 2007) This has enabled Chun Po to get high value. The pricing strategy thus confronts with the promotion strategy and the services provided by them. Place Strategy (Delivering Value): Chun Po has been able to use the place strategy at its advantage. It has ensured that the sales person deliver the services properly. It is merely for the services rendered by Chun Po that it has been able to earn a brand image. The restaurant has ensured that they look into the fact that direct marketing Promotion Strategy (Communicating Value): Chun Po has been able to promote its product in such a manner that it has given them widespread recognition. This helped to attach customer to its product. Chun Po has been promoting it on the basis of “the culture heritage and good service through proper hospitality which has helped them build a market”. They know the customers wants. This is helping Chun Po work on those. The group has also been created “due to standards and values that Chun Po has”. It has been consistent in those. Thus loyalty has grown. Customers prefer it. Thus, Chun Po has been able to use it well. Product Strategy (Developing Value Offerings): Chun Po offers a variety of products. This has made its value rise as consumers get variety. Chun Po restaurant have ensured that customer gets everything. They have taken care of every requirement. This has helped the company as they have been able to give variety. By offering variety Chun Po has been able to lure customer. They have taken the onus and also provided them with varied services. (Sea Food, 2010) Budget Chun Po restaurant needs to plan in such a manner that it is able to budget the expenses for the future planning of the restaurant. The restaurant has charges as “Entree is $4 to 48, mains is $7 to $29 and desserts are $3.5 to 47”. (Chun Po Chinese Restaurant, 2010) Thus the restaurant needs to budget its expenses based on the income it is able to generate. Chun Po Restaurant needs to budget it around 35 to 50% for the marketing in the initial phase as the expenses incurred will be higher which will gradually phase out resulting in higher profits. Thus the budget allocation along these lines will help Chun Po Restaurant. Cognitive Response Chun Po restaurant laid special attention to the cognitive response. The restaurant designed a manner where they noted down the reaction and thoughts they had in their mind when they saw about Chun Po restaurant. This helped them to focus on consumer thoughts and design their response in such a manner that it was able to attract maximum consumer and helped in communicating clearly. Conative Response The Conative response in Chun Po restaurant was to strive and ensure quality was maintained. Employees working in the restaurant strived to ensure that service was laid importance to. This also helped to motivate the in house employees as they understood and had the desire to perform up to the standards that were set so that helped to improve the goals and the implementation became easy. It ensured good service and quality improvement. Implementation Plan During the implementation phase of the market plan special attention needs to be paid to ensure that the process moves as desired. All efforts from the restaurant should be ensured to see that customers come to the restaurant and the restaurant is able to market them. During the implementation phase efforts should be used to ensure that different tactics and schemes are used so the benefits from each can be ascertained and the efficiency which the restaurant will get due to these measures can be measured. Evaluation & Control process To see how this strategy works out it is important that the manager monitors the performance over some time so that he gets an idea whether such a strategy would be productive or he will have to look for newer and better methods. The manager first needs to give this strategy sufficient time. He just can’t monitor the strategy for a week or two and then come to a conclusion. He needs to give it sufficient time. This is so because it might take time for the people to know about this new concept because normally the word of mouth helps to spend the awareness about such a strategy. So, the manager needs to monitor the performance over a period of time. Thus, the manager needs to keep an eye on everything that’s happening around and at the same time ensure that the service and quality of food doesn’t fall down because it will make them lose customers. It is very important in a service industry to maintain the standards and the restaurant needs to ensure that they meet all this requirements. Conclusion Chun Po restaurant thus can grow and increase its size of business by proper marketing and entering into more outlets through franchise and different tie ups. The brand positioning maps and the different matrix throws light on the potential Chun Po restaurant has and based on it the restaurant can market itself in such a way that it gives them the liberty to grow and increase its customer. Also, the fact that the marketing and higher level marketing objectives thereby creates a clear picture and the proper implementation and monitoring of the process will help Chun Po restaurant grow. References Anweshabh T, 2010, “Differentiating the dogs from the stars”, BCG Matrix, Blue Water Press City of Melbourne 2010, Economic and demographic profiles, retrieved on September 28 2010 from Chun Po Chinese Restaurant, 2010, “Chun Po Chinese Restaurant”, retrieved on September 28 2010, < http://www.drinkeatweb.com/chunpo/> Kotler P, 2001, Marketing Management, page 201, 11th edition, Prentice Publication, Upper saddle River, New Jersey PEST, 2010, “PEST Chun Po Restaurant”, Research Paper, Viewed September 28, 2010 PLC, 2010, “product Life Cycle”, Marketing Teachers Ltd Ferrell G, 2002, “SWOT Analysis for Chun Po Restaurant”, Orland, Dryden Press Susan F & Lee L, 2008, “Getting brand communities right”, Harvard Business Review Sea Food, 2010, “Chun Po Sea Food” retrieved on September 28, 2010 from http://www.mauritiusdelight.com/chun-po-seafood-restaurant.htm VanAuken B, 2007, “Brand Equity measurement”, Cool Marketing Inc White P, 2007, “The Chun Po Restaurant”, Business World Read More