Nerida Beonida and Boris Russian Restaurant Marketing Mix - Case Study Example

Name Tutor Title: Nerida Beonida and Boris Russian Restaurant Marketing Mix Institution Mission Statement To offer delicious food while ensuring the highest standards of freshness, health and quality products are met. Providing excellent services and maintaining professional and friendly staff. Marketing Objectives To increase the sale to make revenue of $162,212 To attain higher levels of customer satisfaction in relation to the product To change our brand image towards nutrition and healthier attitudes To create an outstanding organizational culture through maintaining professional and friendly staff as well as good working environment. To inform the target consumers of the nutrition benefits and value of our products Target Market Nerida Beonida and Boris Russian restaurant targets young women aged 18-35 years as this group form the largest percentage of the guest in Australian Capital Territory casual dining. Also, the company targets young children aged below 18 years as this is believed will lead to attraction of urban families with children looking to have fun and a nice time. Young women are estimated to make up 35.9% of the total population in Balconnen while children make up for 18.4%. Marketing Mix The idea of marketing is founded on the base that companies must first find out needs of costumers before developing their products. This marketing strategy is referred as costumer-centered and can result in greater demand for an organization's products and greater client satisfaction after a purchasing the product (Baker, 2000). It is essential for the Nerida Beonida and Boris Russian restaurant to employ this approach in developing its products for it to experience success within the food industry sector. It will execute the usual marketing mix which was established by McCarthy in the period 1970s (Banting and Randolph, 2010). This marketing mix strategy is also referred to as the four Ps, including Price, Product, Place and Promotion. The general practice of marketing entails applying these four variables in the framework of the organization's macro-environment while focusing on the target consumers. An organization possesses the power to influence the marketing mix nevertheless it doesn't have the capability to directly influence its macro-environment (Shimizu, 2014). The main goal of Nerida Beonida and Boris Russian restaurant will be to produce a brand, for every product that meets wants of its consumers and ensures its competitive advantage to attain success. Nerida Beonida and Boris Russian restaurant will create marketing strategies utilizing the marketing mix that will enable it to achieve sustainable competitive advantage leading to long-term growth and success. This report documents the best marketing mix approaches that Nerida Beonida and Boris Russian restaurant will execute for it to witness increased profitability. Product The product is the marketing mix component that involves the tangible products as well as each service which is used to develop the final product. Product entails of a set of products or else services which consist of the total production (Pearce, and Robinson, 2005). The variables related to the product decision include variety, quality, packaging, brand name, design, features, and supporting services. Nerida Beonida and Boris Russian restaurant will offer a wide range of drinks and food products to its clients. Moreover, the company will offer high-quality drinks and foods products to clients so as it can have a competitive advantage over its competitors in this food industry. The company will ensure that only fresh and natural ingredients are used to make it products so as to maintain high quality. Nowadays, people have become very conscious of their health, and they tend to opt for products that are low regarding fat, sugar, and cholesterol. Thus, Nerida Beonida and Boris Russian restaurant will endeavor to offer drinks and foods that have low calories and fat content. All staffs, including chefs and waiters will be required to maintain high hygiene when handling the products. The design of Nerida Beonida and Boris Russian restaurant will be elegant yet simple so as to make it appropriate for the young people and middle-aged individuals since they are their target consumers. The company will consider packaging generous serving that may be shared. Good packaging of a product shows that a firm offers more than merely a product. Moreover, it presents the notion that a high-grade product needs a good package as well as shows that the company minds its customers. In our day, people have a behavior to appraise the product centered on the exterior look and therefore it is essential to have an eye-catching design and slogan which people can relate to over a long period (McDonalds and Wilson, 2011). The product's size is somewhat connected to the marketing of the product. When determining the size of the product, it is important to take into account the income level and the size of the consumers (Larkin, 2009). For example, if a whole family comes to the restaurant, then they should be served using bigger package than when a client is alone. Therefore, Nerida Beonida and Boris Russian restaurant will adapt their product size to include regular and large sizes. A brand name is of great importance when it involves marketing a company's products. Nerida Beonida and Boris Russian restaurant will work hard to build a brand name to add value, which their customers connect to their products. The company needs to build positive brand awareness to link the minds of consumers to the company. The company will build a brand name through ensuring constant products enrichment and improvement. Moreover, the company will offer a wide variety of services to its clients, including parking and sitting services. Nerida Beonida and Boris Russian restaurant will offer excellent service to clients such as high hygiene and good quality products. Also, it will consider delivering its products to its consumers at home. Price Price refers to the value linked to a product. Price has two components: non-monetary and monetary components (Fill, 2002). Nerida Beonida and Boris Russian restaurant will create a well-written price list for the variety of drinks and foods it offers. The company will ensure that the prices are in alignment with the foods’ and drinks’ prices of other companies in this industry. It will ensure that their prices don't go far beyond the average market price. Often, the legal, as well as political factors influence the pricing strategies of a company due to the imposing levies. Non-monetary components of price include the accessibility of the place and the amount of time a consumer can use to search and evaluate the product (Kotler, 2012). When a client has to move for a very long distance searching for the product, he/she will suffer costs in terms of time taken and depreciation of the vehicle. Consumers tend to relate a specific perceived price to the product. This can have an influence on the purchasing and the fulfillment level of consumers. Customers tend to assess the benefits they get from what they purchase (Kotler, Keller, Brady, Goodman, and Hansen, 2009). Thus, Nerida Beonida and Boris Russian restaurant will make sure that it maintains a balance between prices of their products and quality so as their consumers can consider their products to be valuable. Nerida Beonida and Boris Russian restaurant will maintain low but reasonable prices since this will be rather suitable for its consumers given that they consist mostly of young people. The other elements that Nerida Beonida and Boris Russian restaurant will consider when creating their pricing strategy include discounts and different payment alternatives. The company will offer discounts to customers who purchase their products to ensure an increase in sale. As regards the payment option, Nerida Beonida and Boris Russian restaurant will employ the payment on scene type of payment because it will be selling its products on the scene. The type of payment will be achieved through direct payment either by cash or using credit cards. Budget This will involve creating a budget for Nerida Beonida and Boris Russian restaurant for the first year it will be in business so as to determine the total costs the company will incur. The First Year-2016 Aug-Oct Nov-Jan Feb- April May-Jul Total Fixed Costs (Aus. Dollar) Salaries 20,100 20,100 20,100 20,100 80,400 Rent 15, 400 15,400 15,400 15,400 61,600 Advertising expenses 3,200 3,200 3,200 3,200 9,800 Other Administrative costs 1,400 1,400 1,400 1,400 5,600 Variable costs Raw materials 80,500 80,500 80, 500 80,500 322,000 Labor 82,000 82, 000 82,000 82,000 328,000 Other expenses 1,100 1,100 1,100 1,100 4,400 TOTAL COSTS 811800 Breakeven Analysis This involves determining the units the company needs to sell to breakeven. The marketing objective of this company is to increase sale to make revenue of $162,212. The company’s annual budget is $811,800. To breakeven, the company will need to sell 3000 units every month at which equates to 100 units each day $27. Place The place is the marketing mix component that involves the delivery and logistics of developing a product and ensuring that it is accessible to consumers (Brassington, and Pettitt, 2000). The variables linked to this marketing strategy and that are relevant to Nerida Beonida and Boris Russian restaurant include location, coverage area, type of channel, transportation and inventory. Before deciding where to situate the company, it is vital to take into account the costs of procuring raw materials required to prepare their foods and drinks products. The company will be located in a place that will ensure the costs of obtaining raw material are low, both in terms of time and money. Besides, it will be situated in a place that will ensure its customers can without difficult access their products. Normally, consumers like quality products and therefore the company will not sell anything decayed to them. The company will consider executing a home delivery of its products so that people may eat them in an atmosphere they consider favorable. Promotion The promotion element of the marketing mix includes all the communications associated with marketing a product. It comprises of four components: advertising; sales promotion; personal selling; and publicity (Hoyer and MacInnis, 2001). Advertising and publicity are forms of mass communication using a variety of mediums including radio, newspapers, television, direct mail, magazines, and the Internet. Advertising refers to any paid form of mass communication via identified sponsors whereas publicity is a non-paid form of mass communication that does not require a sponsor. Personal marketing is a form of interpersonal communication financed by the company. Sales promotion is a short-term incentive meant to raise the sales of a product (Kotler, and Keller, 2006). Nerida Beonida and Boris Russian restaurant will determine its promotion strategy based on its target audience and market. The company draws its consumers from the local people and therefore it is advantageous for it to utilize the local media, such as newspapers and radio station to market its product. The other advertisement method that Nerida Beonida and Boris Russian restaurant will utilize and which might be cost-effective is giving leaflets to customers frequently to draw their attention to their products. Besides, the company will consider developing public-related programs aimed at marketing its product and enhancing its sales by enabling it to easily access major cities. Moreover, the company will consider having a face-to-face interaction with its potential costumers letting them know the health benefits of eating their products. This is part of personal selling. Furthermore, Nerida Beonida and Boris Russian restaurant will use direct marketing, including phone fax to communicate with it consumers. The emergence of the internet has existing smaller firms with a cost-effective promotion strategy to reach their target audiences (Solis, 2011). Nerida Beonida and Boris Russian restaurant will make use of LinkedIn, Twitter, Facebook, among other social media platforms to reach its target customers who in this case happen to be frequent users of social media. Besides, it will create its website whereby it will post a menu of its foods and drinks and their respective prices and direct potential consumers to where it is situated. Maintaining a menu on the website will lead to timesaving as it makes sure that the consumers know what they need even before reaching the restaurant (Cadle, Paul and Turner, 2010). The waiters will inform customers of the different varieties of drinks and foods that the company offers as soon as they get into the restaurant and assist them in choosing which preference to buy by for example notifying them the top most drinks and foods varieties that are mostly purchased. Implementation Implementation will begin at five weeks before the opening of the restaurant. The table below show what will be implemented and the timeline. Events Timeline Organizing lease, human resources and wholesalers. Begins creating the menu 5 weeks before Start renovating and modifying the rooms. Choose the wholesalers and starts interviewing the applicants 4 weeks before Develop agreements with wholesalers and determine the menu prices. Creates twitter and Facebook pages 3 weeks before Start training employees 2 weeks before Intensifying promotional work through distributing leaflets 1 weeks before Open the Restaurant Opening week Conclusion Nerida Beonida and Boris Russian restaurant has realized that to gain a competitive advantage in the food industry; it will need to develop an efficient marketing mix strategy. It needs to develop a wide range of drinks and foods products so as to match the requirements of consumers. The company will develop a price strategy that is low but reasonable that will make sure it maximizes its profit. Nerida Beonida and Boris Russian restaurant should utilize direct channels of delivery to make sure that their customers get their products at the right place and time. Moreover, the company will use direct marketing, personal selling and sales promotions to communicate its product to the customers. If Nerida Beonida and Boris Russian restaurant perfectly addresses the 4Ps of the marketing mix, it can be assured of its success. Bibliography Baker, M. (2000) Marketing Management and Strategy, 3rd edition, Macmillan Business Banting, P., and Randolph E.R., (2010). "The marketing mix: A Canadian perspective". Journal of the Academy of Marketing Science. Brassington, F and Pettitt, S, (2000), Principles of Marketing, Second Edition, Prentice Hall, Harlow Cadle J. Paul, D. and Turner P. (2010). Business analysis techniques, 72 essential tools for success, the chartered institute for IT. 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