Table of Contents
1.Executive Summary 3
- Marketing Objectives 4
- Target Market 5
- Marketing Strategy 6
- Marketing Budget 7
- Conclusion 8
Bibliography 9
1.Executive Summary
The business industry has changed a lot in the past few years. To keep the business active an organization must keep the business updated. Otherwise, the business organisation will not be able to be in the market and lose their business position from the competitors (Constantinides, 2006). Rockwell & Sons is a well-known restaurant located in Collingwood, Victoria. In this report, the marketing objectives, marketing strategy, the marketing budget of the organisation will be illustrated. The function of this report is to create a marketing mix strategy to solve the business problem of the organisation within the budget of $10-20,000. The main target is the local people around the area of the shop who belong to different age group and profession. The media to reach the customers will be social networks and print media which will emphasis on the message “Help the Homeless”. The estimated cost for this project is $16,000 and it is expected that the organisation will get 5% net profit in one year.
- Marketing Objectives
For a business organisation, the marketing objectives are a very important aspect of the business. The business objectives give the organisation the goal and the reason to promote their business under a bigger banner. And for this reason, it is important to analyse the market before setting a marketing objective. The marketing objectives must be SMART objectives (Broadbent, 1989).
Rockwell & Sons are very famous for their fine dine and good service. Their main marketing objective is to grow their business by improving their service to the expectations of the customers. The high price and poor environment is a big issue. The SMART objectives here in the case of the organisation are:
Specific They must introduce new product and service and new promotional ways.
Measurable They want to increase the turnover by 5%
Achievable They need to design plan to attract the customers and give a message to them. Public awareness can be rise by promoting the message “Help the Homeless”.
Realistic They should hire more employees to meet the desire and expectations of the customer. Only 5 full time employees are there. Recruiting more employees can reduce the load and make the customer feel valued.
Time-specific The assumed time for achieving the goal is one year. - Target Market
To achieve the marketing objective, and build up a good marketing strategy, it is necessary to know the target market. Targeting doesn’t mean that the business organisation will cut their customers but it means to specify the area where they can do the business well (Broadbent, 1989). While deciding the target market, a business organisation should keep the following things in mind:
I. The present customer base.
II. The competitors
III. The service
IV. Chose a specific demographic target.
Rockwell & Sons are located in a good area and that gives them the opportunity to the make a good business. The shop located in the area where there are number of institutes, shopping mall, railway station, hospital and thus they always get a great number of customer. The situational analysis of the market for Rockwell & Sons shows that their customers are from the age group between 18 to 35. The present customer base is the target market for the organisation (Dorozhkina, 2015). These customers belong from college or office or other sections and they stop by the shop every now and then.
Below the target customers for the organisation from the local people is given:
Target Customer Percentage of local people
The youngsters 50%
The school kids 30%
The professors 10%
The doctors 10%
The hospital staffs 20%
The visitors for shopping 30%
The passerby 5%
People who stop in the station 5%
It shows that the shop is always full of customers. It shows that the youngsters are the biggest portion of the customer. The organisation just needs to prepare the strategy for keeping the target market (Jaworski, 1988). The organisation can take promotional agenda or introduce special offers for a lunch time. Introducing a student platter and providing discount card to them can be a good method to reach the highest portion of the customer.
- Marketing Strategy
Rockwell & Sons is an old dine-in and bar. They are famous for their good service and quality product (Fifield, 2007). Though the service is good; they still need to improve their business strategy. Time has changed and there are many other things that are important for the growth of the business. One of the concerns of the customers is the pricing of the products of because they are quite high than the others. In every dining, the customer spent $40 in an average here. The main issue here is the promotional and communicational activities. The 4P’s marketing mix is the best tool to design the marketing strategy (Graeme Drummond, 2005). The 4P’s are the product, price, promotion and the place. The marketing mix for Rockwell & Sons is given below:
Product:
Rockwell and Sons need to introduce a good range of side dishes, desserts and starters. Moreover, they need to improve their bar service by adding a variety of cocktails (Graeme Drummond, 2005). As the target customers are people who stop here in their way to work or way to home, they need more options to choose from. In addition, there is no takeaway or online delivery service. They should consider adding these services to attract more customer. Price:
The pricing of the food and beverages is quite high. The restaurant and the bar service is quite costly. They price around double than their competitors for the same kind of food. They should improve their pricing a bit by adding new platter, set menu, student patter, special dine-in offer, by one get one free offer etc. This sooth the customer’s pocket and bring profit as well (O. C. Ferrell, 2010). In this way, they can also bring more customer as the loyal customers will promote them outside. They can also add value card, which will provide the regular customer special benefit like discounts.
Place:
The location of the restaurant is really good. They get to take the attention of many customers. They also have a good interior and a well decorated outdoor setting. But keeping the target customers in mind, a little renovation will bring a good business. The modern amenities like Wi-Fi, wheelchair passage will add customers. Adding this can change the ambience of the place and the customer will like it a lot (Craig S. Breitenbach, 1998).
Promotion:
Rockwell & Sons is a reputed local restaurant. They have a bundle of local customers. But as they are targeting the customers from the age group of 18 to 35, they need to add some feature to their promotion. They are missing in the social networking sites. So if they promote their business in the social networking platform like Instagram, WhatsApp, website blogs, then they can seek the attention of more people. Their activity on Facebook should be visible.
The main promotional media here is the social networking sites through which the organisation can be a part of the fast-track life of the target customer. With the help of the social media and print media, they are going to arrange a promotional campaign. The organisation is thinking that on the first day they open after renovation they will donate the total cash of that day to the homeless people. It is good cause and their campaign tag is “Help the Homeless”. Thus they are trying to give a social message and raise fund for a good cause. They want to raise awareness and change the behaviour of the people. And this is a small step.
- Marketing Budget
The given budget for creating a marketing mix strategy to solve the business problems is $10-20,000. The budget is used properly in every section and there is no problem in managing the budget (Taylor, 2012). The budget distribution and association for each sector of the marketing mix strategy is given below:
Expenditure Low High
Product Introducing new side dish $600 $700
Recruiting staff $1,000 $1,500
Kitchen/ Bar equipments $400 $700
Price Staff training $800 $1,000
Office electronics(CC TV, Router, Music) $1,200 $1,400
Liquor license $2,000 $2,400
Promotion Web development $2,000 $2,200
Social media campaign $1,000 $1,200
Local campaign $1,500 $1,600
Print media advertisement $1,500 $1,700
Place Paint and re-decorate $500 $700
New furniture $700 $800
Designs and drawings $800 $1,000
Research $1,000 $1,100
Planning work $1,000 $1,200
Total $16,000 $19,200
So, we can see that the lowest cost for improvement will be $16,000 and highest $19,200. If this budget is followed, then the customer will increase to tease the new dishes and experience the renovated atmosphere of the shop. These local customers will then bring more customers. Most importantly, being regularly active in the social media, they can easily reach the customers and can see their review and reactions.
- Conclusion
From the above analysis, it is pretty clear that the business of Rockwell & Sons is good. But to get a better revenue in the coming years, they have to change some small things in their marketing and then they will be ready to win the heart of the customer in a new avatar. The budget for preparing the new marketing strategy is $10-20,000 which is used properly and according to me the revised planning will help the organisation (O. C. Ferrell, 2010).
Bibliography
Broadbent, S., 1989. Advertising Budget: Advertiser’s Guide to Budget Determination. s.l.:McGraw-Hill Publishing Co.
Constantinides, E., 2006. The Marketing Mix Revisited: Towards the 21st Century Marketing. Journal of Marketing Management, 22(3-4), pp. 407-438 .
Craig S. Breitenbach, D. C. V. D., 1998. Value‐added marketing in the digital domain: enhancing the utility of the Internet”. Journal of Consumer Marketing, 15(6), pp. 558-575.
Dorozhkina, E., 2015. Zero Budget Marketing: ROI Based Marketing Guide for Entrepreneurs. s.l.:s.n.
Fifield, P., 2007. Marketing Strategy. 3rd ed. s.l.: Butterworth-Heinemann.
Graeme Drummond, J. E., 2005. Introduction to Marketing Concepts. 1st ed. s.l.:Routledge.
Jaworski, B. J., 1988. Toward a Theory of Marketing Control: Environmental Context, Control Types, and Consequences. Journal of Marketing, 52(3), pp. 23-39.
O. C. Ferrell, M. D. H., 2010. Marketing Strategy. 5th ed. s.l.:South-Western.
Taylor, G., 2012. Budget Marketing: How to Start & Market an Online Business with Little or Zero Marketing Budget. s.l.:s.n.
Yoram Wind, T. S. R., 1983. Marketing Strategy: New Directions for Theory and Research. Journal of Marketing, 47(2), pp. 12-25.