Chilis Presentation


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A presentation relating to a suggested Marketing Plan for Chili\'s Restaurant. (University assignment)

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Chilis Presentation

  1. 1. Chili's Restaurant
  2. 2. Restaurant Overview <ul><ul><li>Name: Chili’s Texas Grill </li></ul></ul><ul><ul><li>Location: Chili’s is a global franchise, but we are focusing only on the Wentworthville outlet </li></ul></ul><ul><ul><li>Style of Restaurant: </li></ul></ul><ul><ul><ul><li>Family and group dining </li></ul></ul></ul><ul><ul><ul><li>Specialise in Texan-Mexican (Tex-Mex) cuisine </li></ul></ul></ul><ul><ul><li>Reason for choosing the restaurant: </li></ul></ul><ul><ul><li>Poor rating at (3.3 out of 10) </li></ul></ul><ul><ul><li>Offers unique meals, so something different </li></ul></ul>
  3. 3. Restaurant Overview – Cont. Hierarchy at Chili’s Wentworthville Wait staff Chiefs (make main meals) Bar attendants Cooks (make side dishes) Restaurant Managers Back of House Manager Customer Service Team Leader Wait staff Chiefs (make main meals) Bar attendants Cooks (make side dishes)
  4. 4. <ul><ul><li>Economic Conditions </li></ul></ul><ul><ul><li> For: 1985/86 to 2005/06: H ousehold income increased at an average of 5.1% per year I nflation rose only 3.7% per year (ABS, 2007)  Increase in the level of disposable income </li></ul></ul><ul><ul><li> Increase in labour force of Holroyd City Council  more families with disposable income </li></ul></ul>The Business Environment Source: Holroyd City Council website – Community Profile. 4,159 (10.8%) 3,169 (8.3% ) 2,985 (7.5%)  Total unemployed 34,326 (89.2%) 34,964 (91.7%) 36,955 (92.5%)  Total employed 38,485 (100%) 38,133 (100%) 39,940 (100%)  Total labour force 1991 1996 2001 Holroyd City Council - Employment status (persons aged 15 years and over)
  5. 5. <ul><ul><li>Technological Factors </li></ul></ul><ul><ul><li> Increasing realisation amongst businesses that the internet is important to their success </li></ul></ul>The Business Environment - Cont. Source: Australian Bureau of Statistics - Business Use of Technology, 2004-05 <ul><ul><li> A clear upward-trend in the percentage of households with internet access In 2001, 31% of Holroyd residents had internet access. That has surely increased! </li></ul></ul>27  25 23 24 22 Businesses with web presence 77  74 71 71 69 Businesses with internet use 89  85 83 84 84 Businesses with computer use 2004-05 % 2003-04 % 2002-03 % 2001-02 % 2000-01 % Business Use of Selected Technologies - 2000-2005 Source: Australian Bureau of Statistics – Household Use of Information Technology, Australia, 2005-06 HOUSEHOLD HOME INTERNET & COMPUTER ACCESS - 1998 to 2005-06
  6. 6. <ul><ul><li>Key Market Analysis Issues </li></ul></ul><ul><ul><li> The Restaurant industry is highly competitive , because of:  a high number of business in the industry – 37,700 restaurants </li></ul></ul><ul><ul><li> high costs  very low profit margins ABS: In 1998-99, the average profit margin was only 4.8% </li></ul></ul><ul><ul><li> low barriers to entry – only real barrier is start-up costs </li></ul></ul><ul><ul><li> Changing customer trends:  shift towards wanting an entire ‘experience’ rather than just good food and service </li></ul></ul><ul><ul><li> increasingly popularity of new and exotic foreign dishes </li></ul></ul><ul><ul><li> increasing demand for take-away menu offerings from full-service restaurants </li></ul></ul><ul><ul><li> recent increase in the demand for healthier menu offerings </li></ul></ul>The Business Environment - Cont.
  7. 7. <ul><ul><li>There are 5 generalised market segments in the Restaurant Industry </li></ul></ul><ul><ul><li>Category Advocates Appreciate dining out, and tend to dine out fairly frequently </li></ul></ul><ul><ul><li> Usually an informal occasion for dining out – eg. ‘to get out of the house’ </li></ul></ul><ul><ul><li> Still seek value when dining out </li></ul></ul><ul><ul><li>Relaxed Winer/Diners Relaxed attitude to dining out, common and comfortable experience </li></ul></ul><ul><ul><li> Often with kids, tend to spend more while dining-out than at fast-food outlets </li></ul></ul><ul><ul><li> Dine out usually on formal occasions </li></ul></ul><ul><ul><li>Reluctants Are infrequent diners, tend to go for fast-food more often </li></ul></ul><ul><ul><li> Not interested in the ‘special occasion’ aspect of dining-out </li></ul></ul><ul><ul><li> Do not spend much when actually dining-out </li></ul></ul><ul><ul><li>Quality Time, Quality Dine Have conservative and traditional values </li></ul></ul><ul><ul><li> Have high expectations of dining-out experience </li></ul></ul><ul><ul><li> Mainly only go to dine-out on special occasions </li></ul></ul><ul><ul><li>Social Drinkers/Chatters View dining-out as a means of conveying social status </li></ul></ul><ul><ul><li>Aspire to dine-out very frequently, but are limited financially </li></ul></ul><ul><ul><li>Dine-out for a variety of occasions </li></ul></ul>Industry Customer Segments Source: the Australian Dining-Out Market –Department for Industry, Tourism and Resources.
  8. 8. <ul><ul><li>Chili’s (Wentworthville) Customer Characteristics </li></ul></ul><ul><ul><li>Demographic Characteristics: </li></ul></ul><ul><ul><li> Age bracket: Dining-in customers: 20 – 55 yrs. of age (children excluded since they do not pay themselves) </li></ul></ul><ul><ul><li> To-Go customers: 25 – 60 yrs. of age </li></ul></ul><ul><ul><li> Geographic area: Dining-in customers: Holroyd-Merrylands area </li></ul></ul><ul><ul><li> To-Go customers: mainly people who work in Wentworthville town </li></ul></ul><ul><ul><li> Income bracket: $40,000 - $80,000 a year (per person, not household income) </li></ul></ul>Industry Customer Segments – Cont.
  9. 9. Competitor Analysis Varying Levels of Competition General Competition Product-From Competition Product-Category Competition Chili’s Restaurant (Wentworthville)
  10. 10. <ul><ul><li>Product-Category Competition </li></ul></ul><ul><ul><li> Very similar product Examples: Soy Kong Restaurant, Sundary Indian Cuisine </li></ul></ul><ul><ul><li> Very similar target market and Imperial Dragon Restaurant </li></ul></ul><ul><ul><li>+ Chili’s is an established brand-name restaurant </li></ul></ul><ul><ul><li>- Very poor rating on = they are not meeting customer expectations </li></ul></ul><ul><ul><li>Product-Form Competition </li></ul></ul><ul><ul><li> Similar category & product Examples: McDonalds, KFC, Red Rooster, Hungry Jack’s </li></ul></ul><ul><ul><li> Similar target market Pizza Hut and Domino’s Pizza </li></ul></ul><ul><ul><li>+ They are not DIRECT substitutes, so Chili’s can differentiate themselves </li></ul></ul><ul><ul><li>- Such outlets have high awareness and actively engage in promotional activities </li></ul></ul><ul><ul><li>General Competition </li></ul></ul><ul><ul><li> Any place which sells food of any sort Examples: Café 64, Holee Take-Away, Woolworth’s </li></ul></ul><ul><ul><li> Target market = all consumers Supermarket, Service Stations </li></ul></ul><ul><ul><li>+ High-level of difference between Chili’s and these competitors </li></ul></ul><ul><ul><li>- They still offer competition, especially in terms of Take-away which Chili’s just began offering </li></ul></ul>Competitor Analysis - Cont.
  11. 11. Perceptual Map Comparisons Repeat Purchase Favourability Uniqueness 10 0 10 0 Perception of: Chili’s Restaurant Other Restaurants Fast-food outlets Actual Impression of: Chili’s Restaurant
  12. 12. Perceptual Map Comparisons - Cont. Food Quality Service Quality 10 0 10 0 Perception of: Chili’s Restaurant Other Restaurants Fast-food outlets Actual Impression of: Chili’s Restaurant Healthiness ‘ The Experience’ 10 0 10 0 Perception of: Chili’s Restaurant Other Restaurants Fast-food outlets Actual Impression of: Chili’s Restaurant
  13. 13. SWOT Analysis Type of Strength – (Ranking) : A: Mangers experience and expertise – (2nd) B: Recognised and distinctive brand name – (1st) C: Restaurant location and facilities – (4th) D: New Take-away (To-Go) menu – (3rd) Type of Weakness – (Ranking) : A: Very poor customer rating – (1st) B: Limited healthy menu– (4th) C: Lack of marketing activities– (2nd) D: Seen as a special occasion venue (issue of low repeat purchase) – (3rd)
  14. 14. SWOT Analysis - Cont. Type of Threat – (Ranking) : A: Fast-food outlets expanding their menu offerings – (2nd) B: Increased social emphasis on healthy eating – (1st) C: Economic factors reducing disposable income – (4th) D: Increasing popularity of ‘make it at home’ recipes – (3rd) Type of Opportunity – (Ranking) : A: Greater emphasis of Chili’s brand image – (1st) B: Greater focus on take-away business during weekday lunch-time hours – (2nd) C: Offering repeat purchase incentives for customers – (3rd) D: Expand the menu to cater to wider tastes – (4th)
  15. 15. Alternative Marketing Strategies <ul><ul><li>Ansoff’s Product/Market Matrix strategies </li></ul></ul><ul><ul><li> Market Development: selling existing products to new customer segments </li></ul></ul><ul><ul><li> Market Penetration: selling more of the company’s existing products to existing markets </li></ul></ul><ul><ul><li> Product Development: developing a new product and offering it to existing customers </li></ul></ul><ul><ul><li> Diversification: double change - developing new products for new markets </li></ul></ul><ul><ul><li>Porter’s Generic Strategies </li></ul></ul><ul><ul><li> Cost Leadership: gain a competitive advantage by having the lowest costs </li></ul></ul><ul><ul><li> Differentiation: gain a competitive advantage by offering a new and unique product </li></ul></ul><ul><ul><li> Focus Strategy: focus on one or two narrow segments – gain competitive advantage by effectiveness rather than efficiency </li></ul></ul>
  16. 16. Objectives <ul><ul><li>1. Increase Customer Retention </li></ul></ul><ul><ul><li>  Target a 67% retention rate of new customers ie: for every new customer, get 2/3rds of those customers to come back to the restaurant </li></ul></ul><ul><ul><li>  At least one repeat purchase every 3-4 weeks from each couple or family </li></ul></ul><ul><ul><li>2. Improve Overall Restaurant Rating </li></ul></ul><ul><ul><li> Improve on a variety of aspects such as: dining-experience, food quality, service quality, value and overall customer satisfaction </li></ul></ul><ul><ul><li>3. Greater awareness of To-Go facet of the Business </li></ul></ul><ul><ul><li> Create greater awareness amongst local businesses </li></ul></ul><ul><ul><li> Thereby, improve sales noticeably over the next 3 years </li></ul></ul>
  17. 17. Recommended Marketing Strategy <ul><ul><li>Target Market </li></ul></ul><ul><ul><li>Chosen Strategy: Product Development Strategy (Ansoff) This strategy is about: developing a new product, but still sell to existing customers </li></ul></ul><ul><ul><li>therefore the target market remains the same </li></ul></ul>$40K - $80K Wentworthville town 25-60 range To-Go customers $40K - $80K Holroyd-Merrylands district 20-55 range Dining-in customers Income Geographic Age
  18. 18. Recommended Marketing Strategy - Cont. <ul><ul><li>Positioning </li></ul></ul><ul><ul><li>Chosen Strategy: Differentiation Strategy (Porter) This strategy is about: gaining a competitive advantage by offering a new and unique product compared to your competitors </li></ul></ul><ul><ul><li>Key positioning points: </li></ul></ul><ul><ul><li> - Emphasis on Tex-Mex style of restaurant = unique brand-image eg: ‘Spice up your life, try something new’ message </li></ul></ul><ul><ul><li> - Emphasis on being a ‘experience’ rather than just a ‘place to eat’ eg: - fun, lively, enjoyable atmosphere for couples and families - experience the Tex-Mex culture not just their cuisine - For the To-Go facet of the business: time-convenience, but with no compromise in taste (unlike fast-food outlet competitors) </li></ul></ul>
  19. 19. Recommended Marketing Strategy - Cont. <ul><ul><li>Product </li></ul></ul><ul><ul><li>Goal: To change the dining-service into a dining and cultural experience </li></ul></ul><ul><ul><li> New exterior and interior décor’ to match with the Texan/Mexican cultural theme </li></ul></ul><ul><ul><li> Improve employee uniforms to match cultural theme (sombrero’s, cowboy hats, etc.) Also, teach the employees basic Mexican greetings </li></ul></ul><ul><ul><li> Hire Mexican musicians and singers for Friday & Saturday nights = fun/fiesta atmosphere </li></ul></ul><ul><ul><li> Change weekday lunch-hour offering to To-Go only meals = cost & productivity efficiencies </li></ul></ul><ul><ul><li>Price </li></ul></ul><ul><ul><li> Maintain relative premium pricing strategy (relative to competitors) – maybe even increase unpopular item prices by a small margin </li></ul></ul><ul><ul><li> promotional pricing (coupons) for members so as to entice them into repeat purchases </li></ul></ul>
  20. 20. <ul><ul><li>Promotion </li></ul></ul><ul><ul><li> email club – free membership – sweepstakes, discount vouchers, promotional info’ </li></ul></ul><ul><ul><li> Grand Re-Opening publicity event = increased awareness, and publicise changes </li></ul></ul><ul><ul><li> Increase awareness of To-Go offering: flyers to local businesses, and in-store information </li></ul></ul><ul><ul><li> Kids ‘Cool Cups’ – kids toy, as well as in-home reminder of Chili’s </li></ul></ul><ul><ul><li> Local newspaper ads (infrequently) to publicise Friday & Saturday Fiesta Nites </li></ul></ul><ul><ul><li>Cnr. Francis & Bartlett st </li></ul></ul><ul><ul><li>Place </li></ul></ul><ul><ul><li> Restaurant location is very ideal in terms of accessibility – parking also very good </li></ul></ul><ul><ul><li> Distribution of flyers to local business will be done by two employees – hand delivered </li></ul></ul>Recommended Marketing Strategy - Cont.
  21. 21. Implementation and Control Project Plan 28/03/2008 1/02/2008 Customer Service Leader New uniforms 28/03/2008 1/02/2008 Customer Service Leader ‘ Cool Cup’ for Kids 2 19/03/2008 5/03/2008 Customer Service Leader Live Entertainment 1 6/04/2008 4/04/2008 Both Restaurant Managers Grand Re-Opening 2/04/2008 2/04/2008 Customer Service Leader Teaching employees basic Mexican greetings 28/03/2008 1/02/2008 Both Restaurant Managers New exterior & interior décor* Complete Commence Responsible Activity/ Task Continuous 11/04/2008 Customer Service Leader Monthly member emails Continuous 4/04/2008 Customer Service Leader Membership Registration 28/02/2008 1/02/2008 Both Restaurant Managers Newspaper advertising 4 21/04/2008 7/04/2008 Both Restaurant Managers Flyers to Businesses 30/03/2008 1/02/2008 Both Restaurant Managers Emailing System 3
  22. 22. Implementation – Gantt Chart
  23. 23. Economic Evaluation Forecasted Profit & Loss Statement Graphically
  24. 24. Economic Evaluation – Cont. So in simple...
  25. 25. Economic Evaluation – Cont. Profits Increase!
  26. 26. Any Questions ? Thank You