The Marketing Plan for Khameer Restaurant in Singapore - Case Study Example

Marketing Plan Name Class Unit Executive summary The marketing plan analyses the introduction of Khameer which is a traditional UAE food into Singapore. Bikers’ restaurant in Singapore will introduce the product due to its viability both locally and internationally. There exist a gap in the product market based on the high demand and limited supply. The product is considered a better option to most foods in Singapore due to the country high cost of living. The plan have identified the target market, come up with market segmentation and determined the pricing strategy. The plan also contains detailed financial analyses and gives the breakdown for profits and loss in first and fifth year. Table of Contents Executive summary 2 Table of Contents 3 I. Introduction 5 II. The MARKET 6 A. Marketing objectives 6 B. Market size 6 1. Estimated industry sales for the planning year 6 2. Estimated sales for your company for the planning year 7 C. Market in which the product is to be sold 7 1. Geographical region 7 2. Forms of transportation and communication available 7 3. Consumer buying habits 7 D. Market Segmentation, Target Marketing and Product 8 Positioning 8 1. Market segmentation 8 Analysis your target market in terms of the customers and their profile. 9 Potential Market Segments 10 Positioning Statement 10 E. Compare and contrast of product and the competition’s products 11 1. Competitor’s product. 11 Marriot Singapore 12 E. The Product 13 1. Product as an innovation as it is perceived by the intended market 13 2. Major problems and resistances to product acceptance based on the preceding evaluation 13 Marking and labeling regulations in place 13 Containerization and costs involved 14 G. Promotion mix 14 1. Advertising 14 2. Sales promotions 15 3. Personal selling 15 4. Public relations 16 H. Distribution: From origin to destination 16 1. Port selection 16 2. Product distribution 16 I. Price determination 17 Penetration pricing 17 III. Pro forma financial statements and budgets 17 A. Marketing budget 17 B. Pro forma annual profit and loss statement (first year and fifth year) 18 IV. Resource requirements 1 18 Finances 18 Personnel 18 Production capacity 19 References 20 Appendixes 21 I. Introduction Khameer is a traditional UAE food which is made of honey, cheese or Nutella chocolate. This bread has high popularity in Emirates where it is cooked at home and restaurants. This food can do well in the Singapore market due to its increasing awareness and high nutrient value. At the moment, Singapore market is not well supplied with this food which has led to importation. The product has a capability of gaining local and international market as it does not offend any culture. Bikers’ restaurant in Singapore will venture into production of Khameer. The hotel is well positioned in production in Singapore due to its viability. This market plan analyze Bikers restaurant venture into production of Khameer. II. The MARKET A. Marketing objectives To achieve market share in local and export market. To make sales and achieve profits from the sales of new product. To achieve awareness for the product in the local market. Expand the market and identify new markets for the new product. Accomplish the growth target within a specified time and budget. B. Market size The market size for Khameer is wide with inadequate supply which has led to importation. There are both local markets in Singapore and export market. The market is set to expand as Bikers hotel venture into the production. 1. Estimated industry sales for the planning year The food industry in Singapore has been doing well and is one of the largest sectors in the country. The industry is expected to continue growing after the financial crisis of 2008 which had hurt the sector. The industry was able to make $ 800 million during the 1st quarter of the year. The industry depends on tourism which has been growing at a rate of 4% annually in the country. The high cost of hotels has been the main obstacle to increase in tourism. 2. Estimated sales for your company for the planning year In the first year, sales are expected to be moderate as the consumers adapt to the product. The expenditure is also expected to be high due to product promotion and other expenditure. The hotel will be able to gain profits towards the end of the planning year. C. Market in which the product is to be sold 1. Geographical region The product will be sold to both local and international market. At the beginning, the hotel will embark on the local market and expand internationally. The product does not offend any of the Singapore culture hence can be sold to any ethnic group in Singapore. The hotel will rely on its present market and also venture into new market. The international market is wide for the product. This will help the firm to expand its product base abroad. 2. Forms of transportation and communication available Singapore has a well developed transport and communication infrastructure. Most of the consumers will use personal vehicles to visit the hotel as well as other means of transport. In export market, bikers’ hotels will utilize airlines due to the perishable nature of the product. Singapore has a well developed infrastructure in airline which makes it possible to export at ease. 3. Consumer buying habits Singapore has a high cost of living. Despite this, most of the consumers earn higher wages which enables them to have disposable income. The consumers are thus able to spend on hotels. The country has a large number of tourists. Tourists have disposable cash which they mostly spend on hotels. a. Product-use patterns The product has its origin in UAE. Khameer is very popular in UAE and have been adopted by different cultures due to its nutrient content. Since introduction to Singapore market, the product have been well received where its demand have outstripped the supply. b. Product feature preferences Khameer is a traditional food made of honey cheese or Nutella chocolate. The product is a form of bread which is cooked in homes and restaurants. Khameer is preferred due to its unique taste and high nutritional content. c. Shopping habits Most of the consumers in Singapore have high disposable income. This makes them to have extra cash which can be used for luxury. They also spend a lot in hotels. Tourists spend a lot in hotels and are ready to test traditional dishes. D. Market Segmentation, Target Marketing and Product Positioning Khameer will be positioned as a traditional UAE food with a friendly price based on the market forces. 1. Market segmentation Market segmentation is a vital element in marketing. Khameer will utilize several segmentation strategies in its marketing. Geographic segmentation This will be used by the hotel in targeting customers based on nationalities. Khameer is a UAE traditional food which has been accepted in Singapore local market. At the start, the hotel will target the local Singapore market before venturing into exports. The purchasing behavior of a geographic region is determined by the country. The hotel will thus be able to tailor the product according to market needs. When in export market, the marketing will change due to geographical change. Each location has differences based on cultural factors, traditions and politics. This implies that each geographic region will require a specific form of targeting due to these differences (Kotler, 2000). Behavioral segmentation This is segmentation of the consumers based on their attitude towards a product. The variables considered are occasions, attitude, loyalty status, use rate and readiness to buy. Occasions such as summer when the tourists are many are one of the bases where Khameer can be sold. There has been an increase in buyer awareness on Khameer which have led to the product gaining popularity (Kotler, 2000). The intention to buy is high as evidenced by the current situation where the product is being imported (Luther, 2001). Analysis your target market in terms of the customers and their profile. The target markets are families in Singapore, tourists, travelers and airlines. Singapore families have a disposable income and have been increasingly spending in hotels. Singapore has been a major tourist destination due to its attractions in sunny beaches, hotels among others. The country receives travelers due to business and leisure. Airlines flying to UAE can provide a market for Khameer. These entire groups provide target market for Khameer. Potential Market Segments Families The product has three market segments which are; families, tourists and travelers, airlines. Families can use Khameer as a snack due to its nutrients content. The food has been gaining popularity in the country homes where it is cooked and also available in restaurants. This makes families a viable consumer segment. Tourists and travelers Tourists and travelers have been on increase in Singapore. There are business travelers who would be interested in the traditional dishes. Tourists are also many due to the country vast tourism destinations. Tourists use hotels as their source of food and are mostly interested in local and traditional dishes. This makes it possible for Khameer to gain popularity among tourists. Tourist market in Singapore has been expanding at a good rate of 4% per annum. This offers a promising market for the product (Puri & Chand, 2009). Airlines Airlines travelling to UAE can serve Khameer in their menu. This is due to the fact that most of the passengers will be able to associate with it. Positioning Statement The product will be positioned as a traditional UAE dish with high nutritional content. E. Compare and contrast of product and the competition’s products The traditional food market in Singapore has several competitors. The main competitors are Marriot Singapore and Raffles Singapore. Marriot offers renowned local dishes such as chili crab and succulent roast which have gained popularity among the consumers. The hotel has been rated among the best in offering culinary. Raffles is a hotel widely known for the Tiffin curry which has been served in the hotel since 1899. The hotel mostly specializes on the Asian traditional dishes. 1. Competitor’s product. a. Brand name Raffles Singapore is one of the competitors offering traditional dishes. The hotel offers Tiffin as its traditional dish which has been served since 1899. b. Features The dish is offered as a light midday meal as tiffin curry. c. Package The product is available daily and is offered on specialties taking care of vegetarians and non vegetarians. d. Competitor’s prices The hotel charges SGD 45 for every tiffin meal. e. Competitor’s promotion and advertising methods Raffles Singapore promotes its traditional dish through advertisement online and also using direct sales. f. Competitor’s distribution channels The food is offered in all raffles outlet in a special hotel room known as Tiffin room. For online orders, the hotel uses road transport. Marriot Singapore Marriot Singapore offers various traditional foods in their menu. The breakfast menu offers traditional specialties such as traditional eggs benedict, oaks benedict among others. a. Features All hotel benedicts are offered with breakfast potatoes. These traditional specialties consist of different ingredients. b. Package The products are offered daily in the hotel breakfast menu. c. Competitor prices The prices range from US$ 14 to US$ 29. e. Promotional and advertising methods The hotel uses online channels to advertise its products. There is also use of public relations campaigns. E. The Product 1. Product as an innovation as it is perceived by the intended market Khameer is a traditional UAE food which is made from honey, cheese or Nutella chocolate. The product is very popular in UAE. The introduction of the product to local market has been well received since it is not against any local customs. The local market perceives Khameer as an important food sue to nutritional content and great taste. 2. Major problems and resistances to product acceptance based on the preceding evaluation Adapting product to market The product does not need to the market. This is due to fact that it has been well received in the local market. The product is already being offered in different flavors and types which meets the local consumer needs. Package adaption The product packing will be adapted to fit the consumer market. This is due to fact that it will be served to the customers in its original format but in different locations. The changes that will be done will only be related to branding. Marking and labeling regulations in place Singapore has elaborate marking and laws on marking and labeling of food products. The laws stipulate that it’s an offence to sell food without proper labeling or making false claims on food products. Breaking the law can lead to a fine amounting to $5,000 or an imprisonment term for three months or both. The food label should have name and food description which helps in giving the nature of food. The ingredients have to be well stated in ascending order based on proportion. Any ingredient that causes hypersensitivity should be listed. The food package should include a net content in the label. Others inclusion are name and address of manufacturer and area of origin (Government of Singapore, 2014). Containerization and costs involved At the beginning, the hotel will be selling to local market so there will be no cost of containerization. The cost of containerization is estimated to be $300. G. Promotion mix Prepare a promotional strategy for your company in your country outlining these tools to help you. 1. Advertising a. Objectives To reach a wide market locally and internationally. To gain new and retain the existing market for the hotel. To promote the product as a healthy food. b. Media mix Advertising will be carried out using internet, television and posters (Kotler, 1980). There will also be point of sale coupons which will be given to the hotel customers. c. Message The main message in the advertisement will be description of Khameer, its nutritional contents, price and availability. The advertisement will ensure they portray the product as a healthy food with a great taste. d. Costs The advertisement is estimated to cost USD $800. 2. Sales promotions a. Objectives Arouse consumer interest to buy the product. Make the consumers aware of the product. Increase sales for the product. b. Coupons The business will use coupons and rebate samples. This will help to induce the customers the value of the product. c. Costs The estimated costs incurred by sales promotions are US $ 742. This is due to fact that sales promotions will be carried out in a temporary basis. The campaign gains by sales promotions are temporary and if extended, the camping loses effect. 3. Personal selling This will be used as an important tool to communicate with the current and potential consumers of Khameer. Face to face encounter with the consumers in Bikers hotel will provide an opportunity to influence consumer purchase decision. Personal selling will also be carried out through telephone calls and video conferencing with potential consumers (Kotler, 2000). 4. Public relations Bikers’ hotel will use public relations to influence the image. This will make its products and services to gain popularity and attain large group of consumers (Kotler, 2000). The costs estimated for public relations are US $ 450. H. Distribution: From origin to destination 1. Port selection a. Origin port The export of Khameer will be through airline. The origin of the product is Singapore. b. Destination port Prospective destination market s is UAE, Malaysia, Australia and New Zealand. 2. Product distribution In Singapore the product will be distributed in Bikers hotels country wide. There will also be home delivery for the product to those who will place the order online. The main means of transport will be through road network. This is due to fact that Singapore has a well developed road network which connects all cities and towns. I. Price determination Penetration pricing Bikers’ hotel will use penetration pricing in Australian market. This will be done with an aim of increasing quantity sold through setting a low price (Blythe, 2006). The pricing strategy will be evaluated with time due to changes in the demand curve. The cost will be determined depending on factors such as transportation costs, handling expenses and custom duties. The pricing method to be used is psychological pricing where quality and consumer perception will be taken into account. Activity Cost Transportation $30,450 handling $17,000 Custom duties $7,000 Wholesale and retail markup and discounts $2,000 Company’s gross margin 90% Retail price $45 per meal III. Pro forma financial statements and budgets A. Marketing budget Activity Costs Selling expenses $3,000 Advertising/promotion expenses $7,000 Distribution expenses $13,000 Product costs $45,000 Other costs $12,000 Total $ 80,000 B. Pro forma annual profit and loss statement (first year and fifth year) year 1 5 Cost of products sold $60,000 $18000 Gross margin 90% 90% Sales 455,000 734,000 Operating income $500,000 $800,000 Expenses Payroll 65,000 $76,000 Marketing expenses $80,00 $ 65,112 Travel costs $15,000 $17,620 Taxes $30,450 $39,000 Net profit $112,234 $145,129 Profit margin 17.8% 20.74% IV. Resource requirements 1 Finances Personnel The hotel will require additional staff due to new product. The staffs needed are; chefs, waiters, logistics personnel, drivers, sales and marketing staffs and accountants. Production capacity Bikers hotel have a flexible production capacity which will be determined by the demand for Khameer. At the moment, the production capacity is capable of handling orders in Singapore but its limited when looked at export perspective. References Blythe, J. (2006). Marketing. London: SAGE Publications. Government of Singapore, (2014), AVA, Retrieved 21st Nov 2014, http://www.ava.gov.sg/FoodSector/FoodLabelingAdvertisement/ Kotler, P. (2000). Marketing management. Upper Saddle River, N.J: Prentice Hall. Kotler, P. (1980). Marketing management: Analysis, planning, and control. Englewood Cliffs, N.J: Prentice-Hall. Luther, W. M. (2001). The marketing plan: How to prepare and implement it. New York: AMACOM. Marriot Singapore. (2014). Marriot dining, retrieved 21st Nov 2014 from, http://www.singaporemarriott.com/dining/ Puri, M. & Chand, G. (2009). Tourism and hotel industry. Chandni Chowk, Delhi: Global Media. Raffles Singapore. (2014). Raffles dining. retrieved 21st Nov 2014 from, http://www.raffles.com/singapore/dining/tiffin-room/ Trip advisor. (2014). Mama Tani Cafe Photo: Khameer Cardamom Sandwich. Retrieved 21st Nov 2014 from, http://www.tripadvisor.com/LocationPhotoDirectLink-g295424- d4038022-i86228556-Mama_Tani_Cafe-Dubai_Emirate_of_Dubai.html Appendixes Khameer (Trip advisor, 2014) Khameer (Trip advisor, 2014) Read More