The Stinking Rose seeks to implement a marketing strategy that enhances the existing marketing plan in order to create awareness and also to create a unique value proposition for their customers. The restaurant wants to capture 50% of the market share of the tourist segment and wants to differentiate itself from its peers based on the food and customer experience. The restaurant’s estimated revenue is $8 million per annum. The marketing budget of three percent of revenue will be focused on marketing the restaurant to the tourist segment. The objectives of the marketing plan are to increase sales volume, market share, and maximize profits. The marketing strategy will be divided into 2 segments: Internet and traditional marketing. Special attention will be given to internet marketing to increase the tourist traffic to the restaurant. Since The Stinking Rose has strong financial background and has been in the industry for many years, management wants to take their restaurant to the next level and would like to support an aggressive marketing campaign to create a strong awareness among the tourist segment. The focus of the internet marketing strategy will be to place the stinking Rose’s website at the top of the major search engines by partnering with google.com and improvising their presence on social media. The traditional marketing will include partnering with travel agencies, tourist buses and souvenirs.

1. The Stinking Rose Marketing Plan, Tourist Segment
The Stinking Rose Marketing Plan- Tourist Segment
Maha Hanno | Neha Verma | Armando Vanegas | Ming Yang | Kevin Smith
Golden Gate University
Professor Hirschberg

2. The Stinking Rose 2
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................3
SITUATIONAL ANALYSIS .........................................................................................................3
MARKET ANALYSIS.................................................................................................................4
POLITICAL AND LEGAL ENVIRONMENT ...................................................................................4
SOCIAL CULTURAL AND DEMOGRAPHICS................................................................................5
TECHNOLOGICAL ENVIRONMENT............................................................................................6
ECONOMIC ENVIRONMENT......................................................................................................6
NATURAL ENVIRONMENT........................................................................................................6
SUSTAINABILITY. ....................................................................................................................6
RISK ANALYSIS.......................................................................................................................7
MARKET TRENDS....................................................................................................................7
FOOD QUALITY. ......................................................................................................................7
PRESENTATION, APPEARANCE.................................................................................................7
HEALTH CONCIOUSNESS. ........................................................................................................7
SELECTION..............................................................................................................................8
COMPETITIVE ENVIRONMENT..................................................................................................8
COMPETITORS . .......................................................................................................................9
SWOT. ...................................................................................................................................9
MARKETING MIX ..................................................................................................................10
MARKETING PLAN. ...............................................................................................................10
PHILOSOPHY, MISSION STATEMENT......................................................................................10
VISION STATEMENT ..............................................................................................................10
MARKETING GOALS AND OBJECTIVES ..................................................................................11
MARKETING STRATEGIES......................................................................................................11
MARKET SEGMENTATION......................................................................................................11
POSITIONING. ........................................................................................................................11
INTERNET MARKETING .........................................................................................................11
TRADITIONAL MARKETING. ..................................................................................................13
FINANCIAL PROJECTIONS ......................................................................................................14
UNDERLYING ASSUMPTIONS .................................................................................................15
BREAK-EVEN ANALYSIS .......................................................................................................15
SYSTEM OF CONTROL............................................................................................................15
CONTINGENCY PLAN.............................................................................................................15
REFERENCES .........................................................................................................................17

3. The Stinking Rose 3
Executive Summary
The Stinking Rose is a California based restaurant established in 1991, it is known for using
garlic as the central ingredient for all their dishes. The restaurant is located in North Beach,
San Francisco’s renowned Little Italy area. It is said that when one is in San Francisco, one
has to just “follow their nose” and it will lead them to the most unique and entertaining
dining restaurant, The Stinking Rose: A Garlic Restaurant. The Stinking Rose serves 3,000
pounds of garlic each month and celebrates the culinary euphoria of garlic through their
dishes. The Stinking Rose offers California-Italian cuisine infused with garlic to enhance the
flavor of food and to accommodate every palate. The restaurant provides a charming private
dining experience with unique decors like hanging Chianti Bottles, glowing candles,
chandeliers and cozy booths.
The Stinking Rose is located in two famous tourist cities of California: Los Angeles and San
Francisco. However, the restaurant is planning to focus more on the San Francisco location as
the city has become a major tourist destination over the last couple of years and has
experienced an increase in the tourist segment since 2014. Therefore, the restaurant wants to
leverage the increase footfall of tourists in the city to increase their sales volume and
maximize their profit.
The Stinking Rose seeks to implement a marketing strategy that enhances the existing
marketing plan in order to create awareness and also to create a unique value proposition for
their customers. The restaurant wants to capture 50% of the market share of the tourist
segment and wants to differentiate itself from its peers based on the food and customer
experience.
The restaurant’s estimated revenue is $8 million per annum. The marketing budget of three
percent of revenue will be focused on marketing the restaurant to the tourist segment. The
objectives of the marketing plan are to increase sales volume, market share, and maximize
profits. The marketing strategy will be divided into 2 segments: Internet and traditional
marketing. Special attention will be given to internet marketing to increase the tourist traffic
to the restaurant.
Since The Stinking Rose has strong financial background and has been in the industry for
many years, management wants to take their restaurant to the next level and would like to
support an aggressive marketing campaign to create a strong awareness among the tourist
segment. The focus of the internet marketing strategy will be to place the stinking Rose’s
website at the top of the major search engines by partnering with google.com and
improvising their presence on social media. The traditional marketing will include partnering
with travel agencies, tourist buses and souvenirs.
Situational Analysis
The stinking Rose is a well-established restaurant in San Francisco, CA. It is well known
among locals. With many competitors seeking to maximize their market share, The Stinking
Rose needs to differentiate itself by providing an experience that is second to none.

4. The Stinking Rose 4
Market Analysis
The dining scene in San Francisco is more vibrant than ever. Restaurants and chefs are
constantly introducing new approaches to redefine the San Francisco dining scene (Bauer,
2016). Some of the trends include focused menus as well as simple and beautiful dishes for
guests to delight on. As consumers become more health conscious, the shift towards simpler
and organic ingredients has gained momentum. The restaurant and the consumer are
benefitting from this trend. Guests can be more relaxed as the menu is simpler and decisions
are easier to make. Restaurants can benefits from cost savings on products, increased quality
assurance, and reduced waste.
The restaurant industry is affected by consumer preferences, economic conditions, and
demographic trends. Changes in consumer perceptions and preferences can affect the sales of
restaurants. In addition, traffic patterns, the cost and availability of labor, purchasing power,
and competing restaurants can impact the overall performance of the restaurant.
Increases in tangible expenses can cause an increase in menu prices. An increasingly
competitive labor market can put pressure on restaurants to push wages higher to limit
turnover. At the same time, increasing food costs can limit the menu selections. Since garlic
is the restaurant’s most significant raw ingredient, a rise in the price of garlic will affect the
restaurant’s margins and cause profits to decrease. Since the Stinking Rose is a garlic themed
restaurant, it would be unacceptable to substitute garlic due to high garlic prices.
The rise in social media has become a threat to the restaurant industry because a single post
can lead to less than desirable consequences. Consumers will not hesitate to comment on
food or service quality on social media. The consumer is pretty much on the driver’s seat.
Consumers can make or break a brand with a post, a review, or a comment (Doering, 2015).
Political, legal
The restaurant industry is subject to licensing and regulation by a number of government
authorities including, health, safety, fire, sanitation and other agencies in the state as well as
the county in which the restaurant is located (DOL). It is imperative that the restaurant
comply with all local, state, and federal laws to prevent any monetary loss due to failure of
compliance.
Local, state, and federal legislation govern employment regulations such as minimum wage
requirements, overtime, working conditions, and citizenship requirements. The minimum
wage in the city and county of San Francisco is currently $13.00 (Office of Labor, 2016).
Further increases in minimum wage will drive up labor costs. Working conditions are
regulated by the Occupational Safety and Health Administration (OSHA) and periodic
inspections of the facility are required. (U.S. Dept. of Labor, 2016)
Many policies and regulations are affecting the restaurant industry such as food issues, jobs
and the business profitability. For example, since regulations regarding nutrition issues were
published in 2012, restaurants are required to present menus with calories. (National
Restaurant Association, 2012c). Moreover, there are 2 pending bills in Congress regarding
the 15-year restaurant depreciation schedule permanent, where restaurants over 15 are
allowed to depreciate the cost of improvements and new construction, rather than 39 years.
Business meals were reduced from 100% to 50 % in 1992 which reduced the restaurant's’
profitability. (National Restaurant Association, 2012c).

5. The Stinking Rose 5
Sociocultural, Demographic
Sociocultural forces that include attitude of the society, families’ lifestyles and change in
values impact the industry over the time. Shift in preferences is obvious: people are looking
for healthy and freshly prepared food, leaning towards premium products and value.
Society is continually changing. The tastes and preferences are examples of this evolution.
One of the single most important differences is the growing popularity of social media. Social
networking sites like Facebook and Twitter have become the preferred channels of
communication. Consumers have embraced the mobile revolution. Many expect to buy and
research more on their mobile device than ever before.
The rise of mobile commerce presents businesses with a unique opportunity to redefine the
rules of success by adapting to change and building a future-proof business. As society
moves to a visual language comprised of photos, Emojis, and video, businesses must rethink
how to present their value proposition in a visually appealing way that is clear and mobile
friendly (Retailers must embrace, 2016).
Social media and technology is the way many people are getting their travel information
nowadays. People are posting where they went and that creates a lot of buzz. The dynamic of
how people are using online resources to plan, book, and become informed is becoming an
important factor that businesses must take into account.
Tourism in San Francisco reached record-breaking numbers in 2015. The San Francisco
Travel Association reported that San Francisco welcomed 24.7 million visitors in 2015, an
increase of 2.7 percent from 2014. This included 18.9 million leisure visitors and 5.8 million
business travelers. The 24.7 million visitors brought $9.3 billion in spending to San
Francisco. Visitor spending equated to $25.4 million daily or $1.1 million per hour (San
Francisco Travel, 2016).
The most frequent visitor age population is 24-50 when compared to other age groups based
on Household income of 100K+ (2012). This basic income is reflected on the economic
growth, as the higher the household's’ income the higher the increase in economic growth
especially over the past two years. According to IBIS World the economic growth rate will
reach 22.9% by 2016(IBIS World 2011). Therefore, The Stinking Rose has to focus on the
target segment (age population 24-50) and research their preferences. The Stinking Rose is
attracting groups, couples, families, individuals, businesses and friends as the restaurant's
ambiance is unique and each room has its own character (The Stinking Rose official website).
http://www.statista.com/statistics/227579/san-francisco-visitors-usa/

6. The Stinking Rose 6
Technological
The restaurant industry is enhancing the technology trend for faster mobile service for its
targeted segment. The use of smart devices facilitated the access to the restaurant booking
system at any time and everywhere. The customer is to determine the number of the visitors
and the location of the reserved table. This innovation reduced the number of phone calls and
enabled the system operators to collect specific marketing data used to improve the marketing
analysis. GOOGLE wallet is an example of mobile payment system trend which keeps all
plastic cards (credit cards, loyalty cards) and saves all promotional offers in one payment
process while securing the client's’ information. (Packaged Facts, 2012).
Economic
The National Restaurant Association projected that in 2016 the restaurant industry will post
sales of $783 billion dollars. Despite this projection, restaurant operators will face a number
of headwinds, including legislative and regulatory pressures, slow global economic growth as
well as labor cost increases.
Britain’s recent vote to leave the European Union (EU) has caused concern over the world’s
economic stability. In addition, doubts about the future of the EU can cause international
consumers to reconsider their spending plans (How Brexit Impacts, 2016). A cutback in
international travel would be particularly bad news for The Stinking Rose. The restaurant is
highly reliant on the tourist population. For this reason, a slowdown in international travel to
San Francisco can have a significant effect on the operating margins of the restaurant.
Labor is typically among the highest costs restaurant owners incur. According to a 2010
study by the National Restaurant association, the typical full-service restaurant spends about
a third of its sales revenue on labor, including front- and back-of house-positions. Regardless
of the type of food-service establishment you operate, the lower your food cost percentage,
the higher your profit. Both food and labor costs vary with the type of food service operation.
The quality of food and service, pricing and hours of operation will also have a direct impact
on your food and labor cost percentages.
Natural
Climate change can have an impact on farming which ultimately affects cost of food. The
current drought in California can prove to be damaging for The Stinking Rose Restaurant.
Sustainability
Sustainable foods are real foods that human bodies were designed to eat.
• They are healthy for humans, soil, and the animals.
• They do not harm the environment.
• They are humane for both the workers and the animals.
• They provide a fair wage to the farmer without the use of government subsidies.
• They support the local economy instead of large corporations.
The source of food can be found locally. Sustainable food distribution systems rely on local
or regional networks of sustainable farms. Products are usually sold directly to consumers
through farmers’ markets, consumer-supported agriculture, farm shares, and co-ops, or
directly to restaurants, food services, and food hubs.

7. The Stinking Rose 7
Risk Analysis
San Francisco’s restaurant industry engages in aggressive competition. Restaurants are
competing for customers and guests, labor, and public relations.
Competition among restaurants may include how they prepare and deliver their food. The
fiercest of such competition is public relation. Is the restaurant on customers’ top list? Will
the new chef attract more customers? Whether the newly opened/renewed restaurant in
neighborhood affected your popularity? Is a nearby restaurant using the same concepts, same
cuisine, or food theme and less expensive? How to continue prompting for yourself?
The Stinking Rose Restaurant is located in North Beach, one of San Francisco’s most vibrant
neighborhoods. With plenty of cafes and over 35 restaurants this neighborhood captures the
tourist population. The Stinking Rose’s faces direct competition from many of these
restaurants that offer similar food. Many of the restaurants in North Beach offer pleasant
dining environments, which can draw attention away from The Stinking Rose. Within
walking distance is Chinatown, another popular tourist destination that is home to many
restaurants offering a variety of Chinese cuisine. The close proximity to The Stinking Rose
poses an additional risk to the restaurant.
Market Trends
The market trend for restaurants is headed toward a more sophisticated customer. The
restaurant patron today relative to yesterday is more sophisticated in a number of different
ways.
Food Quality
The preference for high-quality ingredients is increasing as customers are learning to
appreciate the qualitative differences. Food quality seems to be accepted as a fundamental
component to satisfy restaurant customers however, it has been often overlooked in restaurant
service quality and satisfaction. When food quality is high, overall food quality significantly
affects customer satisfaction and behavioral intentions and also revealed that the relationship
between food quality and customer behavioral intentions is mediated by satisfaction. Thus,
managers should pay attention to the key food quality attributes that elicit customer
satisfaction and enhance return visits in the restaurant business.
Presentation/appearance.
As presentation of an element of the culinary experience becomes more pervasive, patrons
are learning to appreciate this aspect of the industry. Food presentation is important. It can
make or break a restaurant and it can turn a dinner party into a great success if done right.
Food presentation is all about timing. There is no point in offering your guests a fancy dish if
it is served cold, when it was supposed to be served hot. So spend just enough time plating
your dish. Another important rule of food presentation is balancing variety and contrast. It is
good to have a variety of textures on the plate, but how these textures are combined is just as
important.
Health Consciousness
As Americans in general are more cognizant of their health, evidenced by the increase in
individuals exercising and health club memberships, patrons are requesting more healthy

8. The Stinking Rose 8
alternatives when they eat out. They recognize that an entree can be quite tasty, and
reasonably good for you.
Selection
People are demanding a larger selection of foods; they are no longer accepting a limited
menu. Therefore stinking rose is a good fit in this regard, as it offers variety of garlic themed
dishes. This sets them apart from their peers.
Competitive Environment
For an effective market analysis of the restaurant industry, Porter’s Five Force Model will be
used to analyze the competitive challenges for the Stinking Rose. The model emphasizes on
the different categories involved and aspects that bring about competition (Thompson et al.,
2011).
o Threat of new entrants (moderate force)
 High capital requirements (strong force)
 High cost of branding (weak force)
 Switching costs for consumer (strong force)
o Rivalry among existing competitors
 Many restaurants (strong force)
 Aggressive marketing (strong force)
o Direct competition
 Garlic “themed” restaurants (weak force)
 Many California/Italian cuisine restaurants (Strong Force)
o Indirect competition
o Bargaining Power of Consumer
 Availability of substitutes (strong force)
 Switching costs (strong force)
o Bargaining Power of Suppliers
 Number of suppliers (weak force)

9. The Stinking Rose 9
Competitors of stinking rose
Competitors are divided into two categories:
1- Garlic Themed Restaurant:
• Chili Lemon Garlic
• China Garlic Restaurant
2- Restaurant located in the neighborhood:
• Mona Lisa Restaurant
• Trattoria Pinocchio
• Estia Restaurant
SWOT Analysis
Strengths
• Garlic is embraced by a lot of cultures.
Everybody loves garlic!
• Cutting edge culinary experience.
• Highly trained and customer attentive
staff
• Retro style interior, which is very edgy
and attractive.
• Located in north beach- prime location
(center of city)
• San Francisco is a tourist destination.
Weaknesses
• Located on Columbus Street, with other
similar restaurants all around.
• Negative Yelp Reviews
• Multi-language menu not available
• Website is not updated
• Not taking advantage of 7 garlic varieties
Opportunities
• Growing tourist market can be made
aware of the restaurant through
marketing.
• Time conscious travelers want to have
the best experience while travelling.
• Increase in spending capacity of
customers.
• Increase tourism over last few year
• Targeted marketing strategies with
airlines will attract new tourist and
increase earning potential
Threats
• New emerging restaurants
• Low wage argument
• Rising food prices
Marketing Mix

10. The Stinking Rose 10
The restaurant needs to differentiate itself from the competition. The marketing mix will be
used to define marketing options in terms of Product, Place, Pricing, and Promotion.
1. Product
o Since its Garlic themed restaurant and our target segment is the tourist
segment the restaurant needs to position itself as the best garlic themed
restaurant to drive tourist traffic.
o We can differentiate the restaurant by way of the food and service we provide
to our customers.
o Our unique ambience set us apart from our peers.
2. Place
o The restaurant is in a prime location. North Beach is a tourist hot spot. The
restaurant will be will easily accessible by our targeted audience because of its
central location.
3. Pricing
o The restaurant follows a premium price strategy, as it believes in delivering
high quality food and a memorable experience.
4. Promotion
o Advertising- through website, San Francisco tourism website, Pamphlets,
magazines. We can add “The Stinking Rose” in travel blogs, Trip advisor-
things to do, market the brand as the “best garlic restaurant in San Francisco”.
Advertising in travel guides, flights.
o Direct marketing- through social media and creating contacts with hotels and
travel agencies.
o Since social reviews have great impact on customers- posting positive social
reviews on the front entrance wall with food pictures will create good
impression on customers mind.
Marketing plan
Philosophy/Mission Statement
Our philosophy is to serve delicious and unforgettable garlic themed dishes and desserts to
our guests. To provide a one of a kind comfortable and well-maintained environment that is
whimsical and eclectic. To provide an extensive selection of food and gift items and to ensure
a lasting memory of the restaurant that boasts its motto: “We Season Our Garlic with Food”.
With well-prepared meals - using only quality ingredients all guests and staff are treated with
the respect and dignity they deserve.
Vision Statement
To create tasteful culinary and dessert garlic creations, with healthy ingredients that will
entice and elevate each guest’s eating experience to the next level. To be recognized for
providing great food and great courteous service.
Marketing Goals and Objectives

11. The Stinking Rose 11
The goal of this marketing plan is to capture 50% market share of the tourist segment for The
Stinking Rose and to achieve break even within 1 year. The objectives are to increase sales
volume, market share, and profits. In doing so, we will create brand awareness by using
internet and traditional marketing. Today’s generation prefers online marketing over
traditional methods. We aim to increase tourist traffic to the restaurant by using internet as
the main stage to strengthen the restaurant’s brand identity. Our main goal is to build the
restaurant identity around our target market.
Marketing Strategies
• Market Segmentation- The target market for the restaurant is the tourist segment, as
the tourist wants to have best local experience. Since San Francisco is a tourist
destination with visitors from all over the world, the focus must be on both business
travelers and leisure travelers. Both of these segments must be targeted to achieve the
marketing objectives.
• Positioning- We can deliver value to our customers by providing a “unique” dining
experience where they feel welcome and enjoy quality food. We can differentiate our
restaurant from the competitors by creating a unique selling proposition (only garlic
restaurant in SF with the best dining experience). The goal of this campaign is to
differentiate the restaurant from the competitors by providing the best customer
service that the tourist will cherish.
The restaurant can create value for their customers by giving the customers a memorable
experience. Something they can take home and talk about. This starts by letting the customer
know he/she is welcome. Staff is to greet the customer with a smile.
Things the restaurant can do to deliver unique experience and value to their guests that they
can pass to others.
• Since Monday to Wednesday the business tends to be slower we can attract business
travelers on these days by creating special promotion (i.e. 5% if the customer provides
their email they got through trip advisor).
• Adding live bands especially on the weekend can create an atmosphere where the
leisure tourists like to spend their time and create a memory.
• Adding special menus on different days.
• Giving chef special signature dish to the customers on non-crowded days for tasting.
Will create good impression.
• Uploading professionally shot videos on the website and YouTube. Showing the
pictures of food and the ambience can create a positive influence on the customers, as
they usually want to see the picture of the dish before ordering.
Marketing strategies
Internet marketing
With the strong financial support, the most efficient and effective way to market the
restaurant is to increase its internet visibility. Recent studies and research shows that people
mostly like to search the internet for reviews and ratings before they make their purchase
decision. This concept can be applied to the restaurant business as well. Therefore, The
Stinking Rose should increase their internet exposure so that they can become one of the best
options for potential customers. Since the goal of the campaign is to increase the market share

12. The Stinking Rose 12
of the target tourist segment, increasing promotion of the restaurant online will help drive
sales.
Implementation
a) SEO marketing- Search engine optimization
One of the best ways to increase internet visibility is to use SEO. SEO is short for Search
Engine Optimization. It will optimize website ranking in a search engine to get the most
traffic diverted to the restaurant website. The restaurant will start working with search engine
companies like google.com or bing.com to increase more visibility. The best company to
work with is Google.com. For example, The Stinking Rose should advertise itself as the "best
garlic restaurant in San Francisco/Bay area, California". SEO is important for Internet
marketing success and will help the restaurant to appear on top of the major search engine, by
increasing their visibility. As it is said, “No matter how good the restaurant website is, if you
are left behind in terms of SEO, audiences cannot find you”. This strategy will not give
instant result, but it will make The Stinking Rose website appear on top of the search. This
strategy will benefit the restaurant by attracting their potential customers to their website.
SEO marketing is time-consuming. However, the long-term result will benefit both the local
and international customers. In the long run, SEO marketing will help the business to drive
more traffic to The Stinking Rose's website. Therefore, with a newly updated website and
strong social media enforcement this combined internet marketing strategy will be very
effective.
b) The stinking rose- website
The restaurant website is the best way to attract tourist traffic and to promote The Stinking
Rose online. Since the website is usually the first mode of contact between the restaurant and
the customers it must be actively updated with content that will attract the target market.
Since tourists always want to have the best experience during their visit, we need to make
sure that the website publishes the right content to attract the target market into the restaurant.
Website Implementation plan
The website has tremendous power in the restaurant industry and can do wonders for the
business. Eaters love to do research online. In fact, 89% of consumers research a restaurant
prior to dining. Therefore it will be vital for the restaurant to put their details online and that
they are up-to-date. The website will include photos, opening and closing hours, location,
menu, price, Wi-Fi/outdoor (as a tourist one is always looking for Wi-Fi connection). Adding
multi-lingual menu on the website will help the tourist better understand the content of the
dishes before ordering, as many tourist might not have a proficiency in English. This will
ensure that the tourists are given proper attention while designing the website. The server in
the restaurant can offer the menu in a tab for those who have difficulty in speaking English.
The restaurant can add some live videos of the restaurant to showcase the ambience of the
place, in order to draw customer attention and interest. The stronger and more accurate the
online details are, the better. The website should also mention their good publicity in the
news or magazine. This will encourage the tourist to visit the restaurant, after reading
published articles from trusted sources celebrating the restaurant. By setting Google alerts the
restaurant marketing team will be notified when their business appears in a new piece of
content on the web.
c) Social media

13. The Stinking Rose 13
Social media plays an important role in communicating and attracting potential customers,
especially the travelers. The Stinking Rose is already actively using social media platforms
like Facebook, Instagram, and Twitter. The study found social media is an undeniable force
in today’s world and tourist usually like to do research before they visit a new place. One of
the new marketing initiatives is to leverage the social media usage to let the potential
customer be able to find “The Stinking Rose” during the time they are browsing the internet,
looking for where they should enjoy their next meal. Also, the new social media marketing
strategy will take The Stinking Rose's internet exposure to the next level by building a more
personal connection with potential customers.
Social Media Implementation
In order to attract the tourist and build a personal connection, the new social media marketing
efforts should focus on delivering more content and value to their target audience.
Storytelling
One of the best ways for the stinking rose to upgrade their social media marketing is to use
storytelling. To implement, we will hire a media company to handle the photographs and
shoot videos. Although the story source is exclusive to the restaurant, the marketing
department should consult with the media company in order to produce the best product.
The strategy in this segment will be divided into three parts like the daily video blog, live
stream from the kitchen or dining area, and Staff stories.
Hashtags
Increase the usage of Hashtag on multiple social media platforms. Hashtag is the most
common way to connect with today’s generation on social media. There are a couple of
hashtag that could be used for the restaurant. One is to take advantage of its location. Every
time when The Stinking Rose posts content on Social media platform it should include the
famous tourism locations. It will trigger more exposure on social media for the restaurant.
Also, Hashtag is a great way to promote word of mouth marketing. The Stinking Rose should
encourage their customers to use "@“and "hashtag" their friends and family. Not only for
sharing their wonderful time at the restaurant, but also to introduce the restaurant to their
social circle.
2) Traditional Marketing
a) Tourist buses
The sightseeing buses are all over in San Francisco and are a fun way to see the city. The
restaurant can partner up with these tourist buses to promote their restaurant by displaying
advertisement on their buses and the tourist guide can also announce the popularity of the
restaurant during their tour announcement while passing through the north beach area. Since
the tourists are new to the place, word of mouth advertising by the bus driver will be
beneficial and can help to increase the tourist traffic to the restaurant.
b) Travel agencies
Mostly the tourists from Asian countries prefer to travel in groups. Therefore, approaching
the travel agencies might be a good way to promote the restaurant. The travel agencies have
their tie- ups with hotels and restaurants and by partnering with few of the common Asian
travel agencies; the restaurant can increase the Asian tourist inflow to the restaurant.
Europeans travelers can also be targeted in the same manner and this strategy though
traditional can work in favor of the restaurant.

14. The Stinking Rose 14
c) Souvenirs
They represent a unique memento for the tourist visit. The customer can be encouraged to
purchase any of the Stinking Rose exclusive items for example Gourmet Foods (the pickled
garlic, Garlic Stuffed olives, Garlic Salsa), glasses and mugs, the Stinking Rose cookbook,
and gift cards that are “designed especially for the restaurants’ valued customers.” These
souvenirs will be purchased from the Stinking Rose and transported by the tourist customer
will indirectly help to promote the popularity of the Stinking Rose to the tourist home
country. The servers can ask the customers to buy the souvenirs when they are most satisfied.
The server can provide information about the special, unique products. Or customers may
also call the restaurant at 415.781.7673 where they can receive extra 12% discount by
mentioning the Stinking Rose Restaurant ® web site!” This promotion can further attract the
tourist segment.
Financial projections
Marketing Budget
The projected total cost will be approximately $130,000. The product strategy will consist of
four action items that aim to capture market share in the tourism market. The most important
action item is the search engine optimization (SEO). The cost to maximize the number of
visitors to The Stinking Rose website by ensuring that the site appears high on the list of
results returned results by the search engine will total $60,000 and will represent 46% of the
total budget. The social media action item will cost an additional $60,000 and is aimed at
transforming the website into an eye-catching search engine optimized (SEO) advertisement.
$4,200 will be allocated to advertise on the exterior of tourist buses to increase the visibility
of the restaurant specifically in tourist hot spots. $5,460 will be allocated to working with the
travel agencies to have tour buses bring tourists to the restaurant twice a week. The travel
agency allocation is based on an estimated average tab of $35.00 per customer on a 50-seat
bus. The figures in this marketing budget are on an annual basis.
Marketing Expense Budget
Action Item Cost
Social Media $60,000.00
Search Engine Optimization 60,000
Bus Boards 4200
Travel Agencies 5460
Total $129,660.00
Underlying Assumptions
We have based our break-even analysis on the following:

15. The Stinking Rose 15
• The average tab at the Stinking Rose is $30.00.
• The restaurant does an average of 300 covers per day.
• Food costs are between 25 and 30 percent.
Break-Even Analysis
Break-Even = Fixed costs / unit margin Food cost 30%
Margin 70%
B/E in units = 6174 average tab $30
B/E time = 21 days average covers per day 300
Based on our underlying assumptions we project that the Breakeven Volume is 6,174 covers.
In other words, if The Stinking Rose does 6,174 covers the restaurant will fully recover the
$129,660 invested in the marketing campaign. The time to Breakeven is 21 days.
System of Control
There are three systems of control. First, and most important, is budget control. It is
important that the team remain within budget as this will help determine future budgets and
cutbacks if necessary.
Next, we plan to monitor bookings from website traffic as well as from the partnerships with
travel agencies. From this, we will be able to get a clear picture as to what is working for the
Stinking Rose. We will be able to revise, eliminate, or adjust our current marketing strategy
based on these data.
We also plan to monitor market reaction by way of information tracking systems such as
customer surveys and sales volume.
Contingency Plan
• Best-case scenario
The best outcome is to achieve the objectives of increasing sales volume, market
share, and profits. Our marketing plan will create the right amount of connection with
our target audience. Since the restaurant already has a well-established market with
the current marketing plan we will be able to take the restaurant sales a step further
and achieve the increase in revenue. The present audience likes to connect through
social media our plan of using social media as the main platform for targeting our
audience will lead to an increase in sales. The Stinking Rose will benefit from
increased online traffic and tourists’ population.
• Worst case scenario

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There might be a situation when this plan might not work as it is said too much
marketing is sometimes bad. We might create too much buzz around the internet that
our target audience gets the wrong impression about our restaurant. In that case the
restaurant can reduce their presence on social media and should resume to their
original marketing plan.

17. The Stinking Rose 17
Reference
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