Business Analysis of Homestead Catering Service - Case Study Example

1.0 Introduction Profile Homestead Catering Service is a caterer that provides quality catering, at very competitive rates, for the people of Adelaide. This establishment is a for a Caterer who provides casual or full service catering with the best available produce at very reasonable prices then look no further. They cater not only to those important company events, meetings or celebration but also to life’s personal event like, weddings. Since their beginning in the early 1980's as a mobile spit roasting service they have grown into an established off-site full catering service, providing a broad cross section of menus and services. The menus are prepared at a commercial kitchen and then transported via a local car service with which Homestead Catering Services has a preferred account, to the event or prepped at the kitchen and cooked or finished off at the event space. Homestead Catering Services staff arranges and serve the food as directed by the customer. Homestead offers catering to various locations like Cummins House, Old Adelaide Gaol and many others. Homestead also houses some of the favorite delights of finger foods, whether hot or cold. They also offer tasty treats for buffets and amazing pleasures for their formal menus. Marketing Objectives To create brand awareness. To forge links to events/party organizers. To promote repeat business by giving long time customers with discounts/ gifts. To include a wider variety of customers, in terms of food preferences and the event’s purposes, whether business or personal. 2.0 Business Analysis Hospitality and tourism are service industries currently experiencing major growth. As a part of these industries, the restaurant and catering industry plays a very important role in Australia’s economy and society through the generation of employment and the attraction of tourists, while also contributing to the leisure and lifestyle of Australians. As these industries, and therefore the restaurant and catering industry, continue to expand, so too will the economic and employment opportunities they offer throughout Australia. During 2003-04 the restaurant and catering industry employed 188 102 persons and generated $10 129 million in income through 15 083 businesses at 15 567 locations around Australia (ABS, 2005: 3). Café and restaurant businesses dominate this industry, accounting for: • 69.9 per cent ($7 085.1 million) of total income; • 76.1 per cent of total employment; and • 88 per cent of businesses. There is a predominant small business base of the industry, with the majority of businesses (63.4 per cent) employing less than ten persons, although only accounting for 20.6 per cent of total industry income. These businesses recorded a total operating profit before tax of $42.7 million in 2003-04 or, on average, $4465 per business for the year — a very small profit margin. The largest tier of businesses in this industry, those with 50 or more employees, only account for 1.2 per cent of all businesses but generate just under a third of the industry’s income. These businesses recorded a total operating profit before tax of $174 million in 2003-04 or, on average, almost a million dollars per business for the year. (ABS, 2005: 3) The restaurant and catering industry is dominated by a large casual work force. Casual employment accounts for just over half of all employment in the industry. Females comprise just over half of all employment with most (61.6 per cent) working as casuals. Males also occupy more casual positions than the all of employment average, however, comparatively they are more likely to occupy fulltime positions than their female counterparts. (ABS, 2005: 4) Since 1998-99, income in the restaurant and catering industry has grown by 7.1 per cent per year; however, expenditure has grown at a slightly higher rate of 7.4 per cent for the same period, reflected in shrinking profit margins in the industry. Employment has increased by 4.3 per cent per annum since 1998-99, well in excess of the national all sector employment average of 2.4 per cent (ABS, 2007) and labour costs had the highest growth rate of all selected expenses, rising by 10.5 per cent per annum.1 (ABS, 2005: 6) 1 3.0 Plan Objectives The plan focuses on the expanding the target customers, we will be creating more ways to extend our services. Homestead Catering Service will spotlight the new entrée, the special connection with the events organizers and create stronger brand awareness for business and personal exploits. We will also be providing discounts or free gifts for our long-time customers, which is expected to result to more referrals and patronization. 4.0 Budget The budget would need to be supported by the finance department, regarding available funds. The following are the proposed partition of the budget. Creative Department, will be receiving 25 per cent of the proposed budget. This will include the production of the letterheads, logo, and leaflets for print media; story board, scripts and the advertisement for TV and radio, for the mass media. They would also be responsible for advertisements. The Interactive Media will be provided with 30 per cent of the budget. This would include, trainings of new (sales) personnels, if necessary and uniforms, and overtime pay for those who would be handling mall tours. This would also include the food tastings for various sets (i.e. women’s groups, etc.). Under the interactive media, they would also handle repeat customer’s gifts/discounts; as well as that of the outreach events for party organizers. This will also include personnel handling promotional calls and will be sending greeting cards for long time costumers. There would also be a 20 per cent allocation for the development of the new entrées. A part will be given as an incentive to those personnel who would be able to develop a set of menus to cover the dietary needs of most customers. The remaining 25 per cent will be for the operational cost of the whole plan which would include unanticipated costs and added expenses. 5.0 Target Audience Party/Events coordinators will be given much attention on this new marketing plan, we would be building stronger links and possibly establishing partnerships with these organizers, whether independent/free lance organizers up – to those full-size companies. Homestead Catering Services gives importance to these people who makes events smoother for the celebrators. Long – time repeat visitors will also be given high regard, making them eligible for free gifts and/or discounts. They would also be receiving promotional calls, and personalized greeting cards from time to time. Homestead Catering Service will be also be enhancing their menus to adapt to the changing trends of health-conscious people. We would be expanding these menus to accommodate more, especially those who are on strict diets. We would be bringing the complete, balanced and still tasty snack to the buds of our dear customers. No matter if the attendees eat low-fat, low-carb, vegetarian or Halal, you can find something for any diet sing this strategy. From business luncheons to wedding dinners we would be providing the best services. We would be bringing our business to their own convenient place, like malls, they would not need to spend extra time driving down to inquire or to grab phonebooks and locate our numbers, these will be always ready for them anytime, anywhere, where we would be having our print ads, our interactive activities, and other medium like TV and radio. 6.0 Communication Strategy Communication strategy for Homestead Catering Service will be focusing on a new aspect rather than the service only approach. Homestead Catering Service will be developing a new set of entrée to expand the menu, offer seasonal products, and provide customers with more choices, where it would be focusing on the health benefits of the food it would be serving. We would be providing solutions to satisfy clients' strictest dietary needs. This advertisement will be shown on TV and can be heard from radios. Printed materials will also be utilized. We would also be including free gifts/ discounts to long time customers and to events/organizers. We would be utilizing cooking channels, and lifestyle channels where they will feature mostly of events and happenings in the metro. Homestead Catering Service will be advertised by health conscious people. 7.0 Creative Strategy For party/events coordinators, there will be discounts / gifts for every referrals made. Whether personal or business affair, we have what will be needed. Long time customers will also be given discounts / gifts. We would be there when they need us; our contact numbers and offered services will be everywhere, TV, radio, gift shops and various other locations. 8.0 Media Planning Print Media will include letterheads and leaflets. Interactive media will include Mall Tours, Food Tastings, Outreach Events, and Repeat Business Technique. Mass media technique will include TV and radio. 9.0 Media Strategy Print Media Homestead Catering Services has designed a logo, letterhead, business cards and is developing an informational package. This will further enhance brand retention. Especially if logos of Homestead Catering Services will be placed on strategic locations. Leaflets The leaflets would be sent to former customers and prospective customers by direct mail. These should also be provided to local partner institutions where personal dealings are often made (like wedding gown parlors, jewelry shops, and the likes). This will let the prospective customers have a tangible material to consider if they are planning for an event. This will also promote brand awareness of the services offered by Homestead Catering Service. Interactive Media Mall Tours Although work may be set aside during non-working days for companies, mall tours during weekends promotes options for those who would be organizing these company events. Aside from the company personnel who may be doing a bit of working during a weekend, some couples who are planning on their weddings will get better exposure on the service. The tour will also promote the business for events organizers where links may be built to a wider scope of consumers. Food Tastings Food tastings will be organized for several companies or Open Houses where there will be a diverse crowd to expose the brand. These events should be organized for CEO roundtables and other prominent associations. Outreach Events There will be events organized for the party organizers which will further forge links. A referral discount may also be provided for event coordinators. There must also be sales calls and follow-up calls to these evens coordinators for total product/service recalls. Repeat Business Technique Create a customer database and contact them on a regular basis. Mail them a postcard, birthday card, sales flyer, newsletter etc. to keep your name, phone number, and service on their mind. Mass Media There will be a TV and a radio advertisement to promote Homestead Catering Services. 10.0 Campaign Evaluation At every transaction, there will be a survey that will check which among the various advertisement strategies are clear and effective. Monitor and determine how customers heard about the establishment though questionnaires. Determine customer addresses and any other pertinent information that would establish distance from home to the establishment and how often they use the establishment. You could also discuss how this information could be used in the future for direct mail outs and ask their permission if you may use these information for special promotions. Collect sales data about an aspect/product that was promoted in the campaign and how this date could be compared to sales data from before the campaign. Measure customer satisfaction. This may include customer questionnaires, analysis of those questionnaires and feedback to staff. In conjunction with the accountant, assess the success of the plan in financial terms. 11.0 Operational Plan There should be a panel tasked to implement these plans. There will be a team lead who would be supervising the whole team. There should be departments to handle: Creative Department who will be tasked to create the materials (e.i. storyboards, scripts for radio, and even the leaflets for directs mailings and those that would be left on some establishments). The board would be deciding on the value of the free gift or discounts for the long time costumers and the events/party coordinators. There would also be trainings for those who would be extending the services to some public places like malls for the interactive media. Chefs will also be given more rooms for the creation of the new entrée, dieticians will also be included in the team. 12.0 Conclusion Therefore, these strategies will be the turning point of business for Homestead Catering Services where they would be able to expand their links through the help of party/ events coordinator and their long time customers. They would be able to accept a wider set of customers by serving new and palatable food to supply everyone. They would also be able to create an awareness for the brand by the series of advertising in several medium like, mass media, interactive media and the print media. 13.0 Reference http://www.cateringservice.com.au/ http://www.business.com/directory/food_and_beverage/restaurants_and_foodservice/catering/ Guide to Catering Business Events and Meetings by Jennifer Nichols Allen consulting group, Evaluation of the Restaurant and Catering Industry Action Agenda Report to the Australian Government Department of Industry, Tourism and Resources, August 2007 14.0 Appendices (please attached the print media tool that you created) Thanks!! Read More