Marketing Plan For Donair Town


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Marketing Plan for Donair Town

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Marketing Plan For Donair Town

  1. 1. <ul><li>199159-124691Donair TownMarketing PlanBMKT-161 Cyri JonesCreated By:Jesse Nightingale, Clayton Chan, Sheila Burns, Amy dihn, Ashkon Poursaba, Tamer Maimouneh, Brennan Pringle -453139-352269II. Table of ContentsTitle PageTable of ContentsExecutive Summary...............................................................Page 3Company Overview...............................................................Page 3 Mission Statement and Goals.............................................Page 4MissionFinancial GoalsNon-financial GoalsMarketing Strategies.............................................Page 5,6,7,8,9Figure 1--Loyalty CardFigure 2—Ad in the Local NewspaperFigure 3—Flyer with couponSituation Analysis......................................................Page 10, 11SWOT Chart Figure 4Situation Analysis for eachMarket-Product Focus................................................Page 12,13Descriptive Pie ChartsFigure 5Fixed, Variable, and total costsFigure 6Financial Considerations....................................Page 13,14,15Break Even AnalysisFigure 7Implementation Plan........................................................Page 16Evaluation and Control..................................................Page 17Contingency Plan...............................................................Page 17Works Cited..........................................................................Page 18Appendix (A) Media Release.........................................................Page 19 III. EXECUTIVE SUMMARYThe following report contains an in depth analysis of the marketing plan for the promoting of the opening of the new Donair Town location in Port Coquitlam, BC. Included within this plan is; a background summary about the company and its owner, a SWOT analysis, marketing mix analysis, implementation plan, financial implications, evaluation and control, as well as a contingency plan, for you to review. Included are copies of samples for media releases such as, flyers, coupons, loyalty cards as well as some suggestions for how social media could be used to expand the company’s exposure. IV. COMPANY OVERVIEWDonair Town Background and informationSaeed “Sam” Poursaba was born in Tehran, Iran in 1966 where he spent his childhood. In 1988, due to the unstable state of Iran after the Iranian “Revolution” Sam was forced to leave his family, friends and all that he knew in search of a better future. The search finally ended in 1992 when he arrived in Vancouver, along with his 1 year old son and his wife whom he had married after meeting her in Turkey. The road to success is never easy and Sam spent a year working long hours for mediocre pay to support his blossoming family. Realizing that he wanted more for his family, Sam was always thinking of how to improve their life in their new home. At the same time Sam wanted to bring a part of his Persian upbringing to Vancouver. After much thought and consideration Sam settled on the idea of opening up a donair shop. He opened his first donair shop under the name Mr. Sandwich. From the success of Mr. Sandwich spawned what is now a highly successful chain known as Donair Town Enterprises. Sam is the original owner of Donair Affair at 2540 Mary Hill Rd. He opened and ran this location under the name of Donair and Falafel King/Donair Town for about 12 years prior to selling it 7 years ago. Sam is a well known figure around the Tri-City area; most people would recognize him from his signature moustache. As a result of the many locations Sam has developed a large fan base, with some costumers even travelling from afar just for one of his famous donairs. Over the years Sam’s cheery attitude, delicious donairs and trademark moustache have become a familiar part of the Tri-City area. Now after 5 years away from Port Coquitlam, SAM IS BACK in full force opening a new store in the downtown core, bringing his well known moustache, distinct taste and one of a kind recipes back to the city.-26670-320040V. MISSION STATEMENT AND GOALSMissionDonair Town’s mission is to offer a well-priced and healthy alternative to satisfy consumers in this growing fast-food segment while providing quick and efficient service at a profit.Non-financial GoalsTo retain its image of high-quality and healthy menu optionsDevelop a large and solid customer baseEstablish good relations and reputation with consumersBegin mass distribution to other Donair Town locationsTo expand two other locations in the next calendar yearTo be deemed as Port Coquitlam’s “BEST” Donair restaurantFinancial GoalsShort-Term Financial GoalsDevelop an average gross daily income of $800 within the first monthLong-Term Financial GoalAchieve a daily average gross income of $1200To obtain an increase in sales of 20% during its physical year
  2. 2.                      
  4. 4. PRODUCT</li></ul>Product variations<br />Donair Town offers a variety of healthy and nutritious meal options by offering a diverse menu, specializing in authentic Middle Eastern cuisine. Their value-priced menu items include donairs, falafels, and salads. Halifax, Lebanese, Hawaiian, Caribbean and Greek styles are available for both donairs and falafels in three sizes ranges; Regular, Super, or Jumbo. In addition, there are options for meat preferences including Chicken, Beef, and Lamb. There are different types of salads to choose from such as, chicken Caesar, Caesar, Greek, and Tabouli. The special plate includes beef, chicken, or lamb donair, or falafels, on top of rice with side salad, hummus and pita bread. Other sides available are rice, tzatziki, hummus, fries, and baklava. Water and pop are also available for drinks.<br />Moreover, Donair Town has added three special deals onto their menu. Donair Town provides excellent product quality, product consistency, convenience, healthy choices and delivers quick services to its valued customers.Product differentiationUnlike American fast food chains like McDonald’s, Donair Town’s diverse menu gives it a differential advantage from its competitors. Instead of greasy hamburgers or deep fried chicken, Donair Town offers donairs and falafels which contain nutritional value and on average, are lower in calories. All sauces are made from scratch, in-house daily, providing its unique quality and fresh taste. Donair Town allows its customers to create their own donairs, choosing from a good variety of options of meat, sauces, and sides, or they can customize their orders. Donair Town will expand their drinks menu to healthier choices by providing fresh iced teas, and vitamin water. This is a perfect opportunity to capitalize on taste-trends, as people are more into diverse food options. Donair Town will also plan to have a liquor license, being one of the few fast-food restaurants that acquire one, especially in this region.<br />49225201157605Product innovationDonair Town’s innovation process includes environmentally friendly and biodegradable packaging for boxes, cups, bags, and cutlery. All products are neatly and tightly wrapped to prevent spills and to ensure customers’ satisfaction. Otherwise, the overall product is consumer ready, and at high quality standards.<br /><ul><li>PRICE</li></ul>Donair Town currently uses value pricing to offer just the right combination of quality and good service at a fair price. However, because the fast food restaurant market is so saturated, Donair Town must rely on several pricing strategies to differentiate itself from the competition. Because the demand elasticity of donairs is difficult to measure, Donair Town goes by the going-rate pricing strategy. This going price represents the collective wisdom of the industry concerning the price that will yield a fair return.<br />By adopting value-added services, Donair Town is able to differentiate their offers and thus support higher margins. Rather than undercutting competitors which can erode profit margins, the local family owned business positions itself as offering fresh, daily, in-house prepared donairs with a unique and authentic taste.<br />In addition to going rate and value-added pricing, Donair Town also uses product line, product bundle, and optional-product pricing strategies. The price steps between donairs take into account cost differences between each product in the line (i.e. meat and size) and are thus priced in increments of one dollar. By offering product combinations at reduced prices (" Specials" ), Donair Town is able to promote the sale of less popular products like salads or chicken fries.<br />Finally, Donair Town offers optional products along with their main products by charging $0.50 for each extra topping. Not only does this increase the rate of return for the business, but costs for standard products are reduced to allow for slightly competitive pricing.<br />The menu options at donair town are priced similar, if not cheaper than other donair restaurants in the lower mainland. They offer a range of different prices depending on the size and what the product is. This helps make the menu flexible and customizes to each individual customer. The customer can first choose the type of meat they would want with their donair. Lamb is priced at $5.59 for a regular size, falafel is $4.25, chicken is $4.99, and beef is $4.25. The donairs are also offered in three different sizes, regular, super and jumbo. <br /><ul><li>PLACE
  5. 5. </li></ul>Distribution channelsThe new store opening in Port Coquitlam is found in a populated and easily accessible area, surrounded by busy streets, bus loops, sky trains, and nearby shopping. There are currently ten locations of Donair Town restaurants in B.C., and will continue to expand in the future. Nearby competitors include: Dairy Queen, Sparta Greek Taverna, Omega Pizza & Wings, King Mongolian Grill, Koi Japanese Restaurant, and other retailers and fast food chains. The store embodies a hygienic environment, good ambience and decor including music from the radio, T.V. entertainment, and dine-in services.<br /><ul><li>PROMOTION</li></ul>Loyalty CardsWe will be creating a system of using loyalty cards for the customers, in which case this will entice customers to return to our location, and receive a FREE donair after nine purchases of any size donair or platter. This promotion will only be taking place at the new location of Donair Town in Port Coquitlam.  This type of promotion is subject to change depending on what we would like to advertise and promote the most in order to gain the most revenue. <br />Your TitleJessePhone: 555-555-5555Fax: 555-555-5555E-mail: someone@example.comPrimary Business AddressYour Address Line 2Your Address Line 3Your Address Line 4Business NameOrganizationBuy 9 Regular sized donairs and get the 10th one of equal or lesser value FREE!!! FREE  123456789Figure 1—Customer Loyalty Card<br />-469681-425669Facebook<br />We will be starting a Facebook group as well as a Facebook fan page and also an event for the grand opening.  This will be used not only to generate word of mouth about the opening, but also about the restaurant in general.Twitter<br />We will set up a twitter account to get the word out about the new location.  Once the location has been established for some time, we will use the twitter account to continue to promote the restaurant and ongoing specials at that location.New Location Posted on YELP,, restaurant guide, and<br />We will post the new location on Yelp and (as well as a few others that we have discovered), so that when people are looking for a place to eat online, Donair Town will appear first in their search on those sites.  We optimistically think that being on those sites will encourage people to write reviews and comments about the food and service delivered.  Comments that are posted on YELP for the other locations are favourable and we are confident that they will be for this location as well. <br />Press Kits to Tri-city News<br />We will send a press-kit announcing the opening of the new Donair Town in anticipation of gaining their attention, resulting in having an article written up for the company. This will enable us to develop a strong relationship with the local community, and feasibly with the Tri-city news. This business to business relationship can be beneficial for the both of us.<br />Ad Announcing OpeningWe will be placing an ad in the Tri-City News Newspaper announcing that Sam (the owner) will be opening up a new location of Donair Town. The ad will feature a picture of Sam as well as the location of the new restaurant, and any desired promotional features. This could run for a full week, or a full month to gauge how the customer reactions are. <br />27305407035Figure 2- Ad in the local Newspaper<br />Coupons & FlyersFor the opening we will be distributing flyers that have a map the new location, the menu and a coupon attached.  The coupon will likely be a buy one get one free, or a free salad with purchase of a donair, (this will also promote the salads) or a free pop with the purchase of a donair of equal or lesser value.The other promotional flyers will be handed out close to the date of the opening, in the targeted consumer residences, as well as all feasible businesses that are in the surrounding area. This will include residential, commercial, and retail businesses.<br />FIGURE 3—Flyer with attached coupon<br /><ul><li>41529042405304152901905016954506161405GRAND OPENING!Find Us At: 2652 Shaughnessy StPort Coquitlam, B.C.Phone #: 778-285-3323extra Parking Found At RearDONAIR-Chicken, Beef, and Lamb variations, FALAFEL, Salads, hummus, and sides.
  6. 6. VII. SITUATION ANALYSIS</li></ul>Figure 4--SWOT Chart<br /><ul><li>STRENGTHSHealthyIngredients are prepared fresh daily ‘in house’Vegetarian optionsDiverse menuUnique and customizableFriendly, Family owned business Full control over finances, and staffQuick responses to environment changesWEAKNESESLocation of restaurantLack of advertisementSmall scaled operationProduce a reasonable amount of waste OPPORTUNITIESPossibility of expandingBecoming the main supplier of other Donair TownsGrowing trend of eating healthierOpportunity of franchising their businessBecoming a supplier for future eventsAdd more items to current menuAttain more environmentally friendly productsTHREATSConservative consumersExisting fast food chainsThe other donair locations in the areaInflation causing price of ingredients to rise Only parking available out back of the restaurant, so for those driving by, no quick stop (I.e.: Parking lot/strip mall)
  7. 7. STRENGTHS</li></ul>Donair Town is considered a well-priced fast food restaurant. However, unlike most fast food restaurants donairs are relatively healthy. Donairs are also considered foreign to a lot of people, because they did not originate in North America, therefore adding another appealing characteristic to this type of menu. This will encourage people to try something new and different. In addition, Donair Town caters to vegetarians, and people of unique tastes, which is a hard medium for a lot of other restaurants to cater to.<br />Since Donair Town is a small family owned business, people will recognize the time and quality that is put into the food, which is why we like to prepare most of the ingredients ‘in house’. Being a small scaled operation, Donair Town can react to unsuspected environmental changes quicker than a large corporate company, as it has full control over its finances and business management options.<br /><ul><li>WEAKNESSES</li></ul>The main weakness that Donair Town pertains to is the required location. Donair town is not able to establish itself in a well populated area, because being close to a skytrain station, or areas like Granville Street in Vancouver have such high rental and leasing prices. Another reason that Donair Town is not able to establish itself in certain areas is because some locations require permeation. In order to counter this, we will provide exceptional customer service and perfect our recipes to have the customers coming back.<br />Another weakness is the lack of advertisement Donair Town does on a regular basis in its past ventures. Advertising is generally quite expensive, especially if they plan on advertizing on the radio for example. To improve Donair Town’s awareness we will advertise through more cost effective methods such as flyers and advertisements in the local newspaper.<br />Since Donair town is a small family operated business, they are not able to hire too many people. If a person was to be terminated, on vacation or quit, it would be difficult to find a well-experienced and reliable replacement.<br /><ul><li>OPPORTUNITIES</li></ul>Donair Town has a great potential to expand and become more well-known by the public. Donair Town can do this by selling their name to other restaurants but also becoming the suppliers for them. This will help and make sure that they are providing the same excellent quality of food. Donair Town has the possibility of franchising their business since they have sold past restaurants to new owners.<br />The growing trend of people becoming more health conscious (especially in North America), can be an n exceptional future opportunity for Donair Town to increase business, and revenue. Alongside, following this trend, many consumers are very appreciative and interested in companies that are environmentally aware, and use biodegradable products. This would expand their customer base and also be beneficial to the local community, and surroundings.<br /><ul><li> THREATS</li></ul>Donairs, being a foreign food is a double-edged sword, it can help encourage people to try it, but it could also make some people hesitant, since they have never had it. Some people might not recognize the benefits of having a donair over a Big Mac from McDonald’s, so they may stick to what they are comfortable with or accustomed to. The costs of the ingredients needed are steadily increasing due to the ever changing economy. The price of meat for example, will in turn, force us to increase our prices which may end up with decreased sales.<br />The location is on a busy street, but the front door is located directly on the busy road. This will deter customers who may be with a full family, and feel unsafe pulling over to the side of the road instead of being in a parking lot, such like a Denny’s may be. There is only parking located in the back if it is too busy on the road to pull over and park.<br />6482715-236855VIII. MARKET-PRODUCT FOCUS<br />Marketing and Product Objectives<br />Donair Town’s marketing intent is to re-enter the growth stage of the product life cycle by targeting new markets in the Port-Coquitlam area with its current healthy fast food menu choices. This new location will rely heavily on differentiating itself from the local competition to increase its market share and build consumer brand loyalty.<br />Target Market<br />The primary target market for Donair Town will be students, young professionals, single parents, and middle-income families ($30,000+) with enough disposable income to eat out on occasion living in the Port Coquitlam area. This market segment contains adventurous, compulsive, and time constrained consumers that seek nutritious, value-priced, fast-food alternatives.<br />Figure 5—Descriptive Pie Chart <br /><ul><li>Source: Port Coquitlam 2001 Census Canada Summary CITATION Por07 l 1033 (, 2007)</li></ul>Points of Difference<br />The following characteristics differentiate Donair Town from its local competitors in the Port Coquitlam area:<br /><ul><li>Fresh, in-house made recipes. All ingredients are prepared in-house daily, while sauces and iced tea beverages are made using family recipes.
  8. 8. Grilled; to prevent the consumption of undercooked meat, Donair Town cooks its meats twice: “once on the spit, and then grilled as the donair is being prepared.” CITATION Wik101 l 1033 (Wikipedia, 2010)
  9. 9. Taste trends. Due to the growing ethnic diversity in the Lower Mainland, Donair Town offers authentic Turkish cuisine to satisfy a niche market that its competitors have overlooked.</li></ul>DAIRY QUEEN (Direct Competitor)–GrillBurger with Large Fries, and a Large CokeNutrition FactsServing Size (2880g)Amount Per ServingCalories 1670 Calories from Fat 630 % Daily Value*Total Fat 70g 108%Saturated Fat27.5g 138%Trans Fat1.5gCholesterol 170mg 57%Sodium 2180mg 91%Total Carbohydrate 197g 66%Dietary Fibre7g 28%Sugars97gProtein 61g 0%Vitamin A 25%Vitamin C 6%Calcium 54%Iron 62%* Percent Daily Values are based on a 2,000 caloriediet. Your daily values may be higher or lowerdepending on your calorie needs: <br /><ul><li>Nutritional Information and Facts:
  10. 10. Donair town
  11. 11. -regular sized donair $ can of pop
  12. 12. Nutrition Facts
  13. 13. Serving Size: 1 Donair
  14. 14. Amount Per ServingCOMPARE TO >>
  15. 15. Calories 389 + 155 (Can of Pop) = 544
  16. 16. % Daily Value*
  17. 17. Total Fat 9.9g 15%
  18. 18. Total Carbohydrate 47.7g 16%
  19. 19. Dietary Fibre 2.24g 9%
  20. 20. Protein 25.5g 51%
  21. 21. 476250106680
  22. 22. Percent of Calories from:
  23. 23. Fat: 22.9% Carb: 49% Protein: 26.2%
  24. 24. (Total may not equate 100% due to rounding)
  25. 25. Liquor. Limited to the Port Coquitlam location, Donair Town will be licensed to serve alcoholic beverages to customers eating and staying in on location.</li></ul>Positioning<br />Many fast food restaurants offer convenient value-priced menu options; however, not necessarily the healthiest. Rather than forcing consumers to compromise, Donair Town combines all of the above by offering premium quality, great-tasting, affordable, in-house made donairs that satisfy people who want to lead healthy lives. Donair Town is able to position itself from competitors due to its focus on in-house made recipes that are prepared daily.<br />IX. FINANCIAL CONSIDERATIONS<br />The costs for this marketing plan are minimal.  The Twitter and Facebook monitoring will be a cost of time at the rate of whichever employee is tasked with the job.  (This will be Ashkon and he charges a family rate of $10 an hour)<br />7428230358140The following considerations will apply:<br /> #1=> Flyers: <br /><ul><li>$0.10 per page, each page produces two flyers (Staples Copy Center)
  26. 26. 500 Flyers: $28 (including HST)
  27. 27. #2=> Loyalty Cards:
  28. 28. $22.95 for 250 cards (Staples Copy Center)
  29. 29. 500 Loyalty Cards: $51.41 (including HST)
  30. 30. #3=> Ad in the Tri-City News:
  31. 31. For one edition, editions are printed twice weekly
  32. 32. 1” Ad is $250
  33. 33. 2” Ad is $400
  34. 34. 3” Ad is $500 Total: $479.41 (Quote with 2” Ad)</li></ul>-455930-474345Figure 6 Fixed Costs<br />Rent$36000Wages ($10 per hour)$87600Insurance$1200Taxes$25000Operating Equipment (Broiler, Grill, Refrigerator...etc.)$30000Gas$3000Total Fixed Cost$182800<br /> Variable Cost<br />Annual CostCost Per DonairWater6000.01Hydro30000.05Meat300000.47Beverages10000Bread52560.08Vegetables106600.16Packaging and Utensils50000.08Total Variable Cost645160.85<br /> Total Cost<br />Total Cost (Variable & Fixed)247316<br /> Breakeven Point<br />Unit of donairs sold to breakeven in one year39,312Units of donairs sold to break even in one day108<br /><ul><li>Break Even Analysis
  35. 35. Figure 7</li></ul>Donair Town needs to sell around 39,000 units of donairs each year to reach their breakeven point if the cost of making each donair is $0.85. Since they sell each donair to customers for around the price of $5.50 each, this equals to $216,210.00 in gross sales, but the total actual cost of making 39,000 donairs is $33,150. <br />X. IMPLEMENTATION PLAN<br />All Directives will be implemented by Donair Town Marketing Director Ashkon Poursaba and should take place simultaneously as close to the grand opening date as possible. The aspects of the plan that are on-line, (Facebook, Twitter, and Restaurant Directories) will need to be monitored continually in order to maximize their utility. As flyers and loyalty cards are distributed, they will need to be replenished. <br />XI. EVALUATION & CONTROL<br />There are many ways that Donair Town can evaluate the success of their marketing plan. First of all, they can tally the number of loyalty cards and coupons that customers bring in. This allows them to measure the effectiveness these two campaigns in bringing traffic into the restaurant as well as the general awareness that Donair Town has gained from their use. They will monitor the use of the loyalty cards by customers, by using a very traditional method of a ‘counting clicker’ to keep track every time one is used. There will be a “Coupon” button on the cash machine to monitor the amount of ‘FREE’ Donairs that will be given out. They can also appraise the effectiveness of specific promotional campaigns through social media websites, such as Facebook and Twitter. Customers can post comments on the Facebook event page and send Tweets to Donair Town’s twitter account. These two sites need to be monitored frequently. The purpose of monitoring them is not only to inform Donair Town of how many fans and followers they have and what they are saying, but also to allow Donair Town to continually update their clientele with promotions and events. The continuation of a dialogue with the clientele through these social media sites is vital to their usefulness to Donair Town. Other websites to monitor include restaurant directories, such as “DineHere,” which provide an opportunity for customers to rate, review, and critique Donair Town’s food qualities and services. Donair Town’s key source in evaluating the marketing strategies' effectiveness is to review its sales revenue, which should be increasing, and compare this to other similar restaurants in the industry. Lastly, reviewing customer satisfaction surveys, and asking clients how they heard about Donair Town, are both valuable tools and strategies that the company can utilize, because it allows for valuable insights from customers.<br />XII. CONTINGENCY PLAN<br />If we were to implement our marketing plan and it failed to attract customers to our restaurant we would need to develop new and more effective advertisements but also find out why they are not working. We can start by doing an environmental scan and doing questionnaires such as asking the customers to fill out small survey cards to see if they have ever tried a donair and what they like or dislike about it and what else they would like to see on our menu. After figuring out the taste of the customers we can adjust our recipes or add new items to our menus. We can also scan other existing donair restaurants in the area and compare their menu, services and pricing to ours. In addition to adjusting our menu to fit customer needs we can also start to advertise outside of Port Coquitlam to attract new customers that might be visiting or moving into the area.<br />XIII. WORKS CITED<br /> BIBLIOGRAPHY (2007). 1991-2001 Census Canada Summary. Retrieved June 14, 2010, from<br /><br />Wikipedia. (2010, June 1). Donair. Retrieved June 14, 2010, from Wikipedia:<br /><ul><li></li></ul><br /><br /><ul><li>
  36. 36.
  37. 37. XI. MEDIA RELEASE</li></ul> <br />The Moment We Have all Been Waiting For; Sam is Opening up a New Location of Donair Town!<br />After 5 years away from the Tri-City area, a New Location on Donair Town is opening up at 2652 Shaughnessy Drive in Port Coquitlam.<br />Saeed “Sam” Poursaba was born in Tehran, Iran where he spent his childhood. In 1988, due to the unstable state of Iran after the Iranian Revolution, Sam was forced to leave his family, friends and all that he knew in search of a better future. The search finally ended in 1992 when he arrived in Vancouver, along with his 1 year old son and his wife whom he had married after meeting her in Turkey. The road to success in never easy and Sam spent a year working long hours for mediocre pay to support his young family. Realizing that he wanted more for his family, Sam was always thinking of how to improve their life in their new home. At the same time Sam wanted to bring a part of his Persian upbringing to Vancouver. After much thought and consideration Sam settled on the idea of opening up a donair shop. He opened his first donair shop under the name Mr. Sandwich. From the success of Mr. Sandwich spawned what is now a highly successful chain known as Donair Town Enterprises. Sam is the original owner of Donair Affair at 2540 Mary Hill Rd. He opened and ran that location under the name of Donair and Falafel King/Donair Town for about 12 years prior to selling it 7 years ago. <br />The Grand Opening will be during the month June, the perfect time to come in and enjoy some healthy food.  The new location will be featuring a loyalty card and specials.  Watch for our flyer around town.<br />We would be pleased to have you come in and try a donair on us, just show us your press card and enjoy. We look forward to seeing you!<br />