Diana Berger Arthur Catlin Larry Cenotto Dan Eriksen Matt Gauthier
Background/Introduction
<ul><li>Opened in River Park Square in 2000 </li></ul><ul><ul><li>Offering a small menu which focused on “legendary burger...
<ul><li>Expanded in recent years </li></ul><ul><ul><li>More menu options and a fully stocked bar </li></ul></ul><ul><li>Sa...
Situation Analysis
<ul><li>Macro-Environment </li></ul><ul><ul><li>Weather conditions </li></ul></ul><ul><ul><ul><li>In Spokane and where foo...
<ul><li>Restaurant Industry </li></ul><ul><ul><li>Food and Beverage service </li></ul></ul><ul><ul><li>Make meal an experi...
<ul><li>Market Segments </li></ul><ul><ul><li>South Hill </li></ul></ul><ul><ul><ul><li>Anyone who eats out </li></ul></ul...
<ul><li>Competitive Analysis </li></ul><ul><ul><li>Primary </li></ul></ul><ul><ul><ul><li>Rock City Grill </li></ul></ul><...
<ul><li>The Firm </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><ul><li>2 salaried & 63 hourly  </li></ul></ul></u...
<ul><li>Current Marketing Strategy </li></ul><ul><ul><li>Fairly weak </li></ul></ul><ul><ul><li>Sawtooth has never allocat...
<ul><li>Threats </li></ul><ul><ul><li>-Local competition  </li></ul></ul><ul><ul><li>-Rate of savings rising  </li></ul></...
Marketing Objectives, Target Market, and Positioning
<ul><li>Marketing Objectives </li></ul><ul><ul><li>Increase sales to $2 million for 2006 </li></ul></ul><ul><ul><ul><li>$1...
<ul><li>Target Market </li></ul><ul><ul><li>Lunch </li></ul></ul><ul><ul><ul><li>Business professionals </li></ul></ul></u...
<ul><li>Target Market </li></ul><ul><ul><li>Dinner </li></ul></ul><ul><ul><ul><li>Families </li></ul></ul></ul><ul><ul><ul...
<ul><li>Target Market </li></ul><ul><ul><li>Secondary Market </li></ul></ul><ul><ul><ul><li>Visitors to Spokane </li></ul>...
<ul><li>Market Positioning </li></ul><ul><ul><li>Business Clientele  </li></ul></ul><ul><ul><ul><li>Quick, friendly servic...
Marketing   Plan
<ul><li>Product Strategies </li></ul><ul><ul><li>Focus on healthy side dishes </li></ul></ul><ul><ul><ul><li>Currently off...
<ul><li>Promotion Plans </li></ul><ul><ul><li>iMye affiliation </li></ul></ul><ul><ul><li>Inlander  advertisement </li></u...
<ul><li>iMye </li></ul><ul><ul><li>Comparable to flex </li></ul></ul><ul><ul><ul><li>Available at a wide variety of locati...
<ul><li>Inlander  Advertisement </li></ul><ul><ul><li>Increase brand awareness </li></ul></ul><ul><ul><ul><li>Circulates 4...
<ul><li>Inlander  Advertisement </li></ul><ul><ul><li>Recommendation </li></ul></ul><ul><ul><ul><li>Two unit, black and wh...
<ul><li>Website Design </li></ul><ul><ul><li>Potential to improve reach </li></ul></ul><ul><ul><li>Relatively low cost  </...
<ul><li>Website Design </li></ul><ul><ul><li>Include features such as: </li></ul></ul><ul><ul><ul><li>Mapquest directions ...
<ul><li>Neon Sign Placement </li></ul><ul><ul><li>Current “Sawtooth Grill” neon sign faces a competitor, Rock City Grill. ...
<ul><li>Personal Selling </li></ul><ul><ul><li>Guests asked how they heard of Sawtooth </li></ul></ul><ul><ul><ul><li>Word...
<ul><li>Wireless Internet Access </li></ul><ul><ul><li>Currently does not offer wireless internet </li></ul></ul><ul><ul><...
Conclusion
<ul><li>We believe that these strategies can prove very beneficial for Sawtooth if implemented. By… </li></ul><ul><ul><li>...
Any Questions?
<ul><li>Quiz </li></ul><ul><ul><li>Name 1 market that Sawtooth needs to control or penetrate. </li></ul></ul><ul><ul><li>W...
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Sawtooth Marketing Project

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I made this PowerPoint presentation for my Marketing Communication class in 2006. It was for a project where we took a local business, in this case Sawtooth Bar & Grill, a restaurant in Spokane, and we examined their current marketing strategy and made recommendations on how they could better reach out to the consumer.

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Sawtooth Marketing Project

  1. 1. Diana Berger Arthur Catlin Larry Cenotto Dan Eriksen Matt Gauthier
  2. 2. Background/Introduction
  3. 3. <ul><li>Opened in River Park Square in 2000 </li></ul><ul><ul><li>Offering a small menu which focused on “legendary burgers,” and operating within the casual dining industry, Sawtooth has been fighting an uphill battle to gain market share against existing competitors </li></ul></ul><ul><li>“Preferred Guest Program” </li></ul><ul><ul><li>Over 200 members </li></ul></ul>
  4. 4. <ul><li>Expanded in recent years </li></ul><ul><ul><li>More menu options and a fully stocked bar </li></ul></ul><ul><li>Sawtooth lost money the first 4 years </li></ul><ul><ul><li>Turned a $5,000 profit in 5th year </li></ul></ul><ul><li>The slow time is during the summer and when school starts in the fall </li></ul>
  5. 5. Situation Analysis
  6. 6. <ul><li>Macro-Environment </li></ul><ul><ul><li>Weather conditions </li></ul></ul><ul><ul><ul><li>In Spokane and where food originates </li></ul></ul></ul><ul><ul><li>Product delivery </li></ul></ul><ul><ul><ul><li>Just-in-time inventory system </li></ul></ul></ul><ul><ul><li>Rate of savings </li></ul></ul><ul><ul><li>Gas Prices </li></ul></ul><ul><ul><ul><li>Less disposable income </li></ul></ul></ul>
  7. 7. <ul><li>Restaurant Industry </li></ul><ul><ul><li>Food and Beverage service </li></ul></ul><ul><ul><li>Make meal an experience </li></ul></ul><ul><ul><ul><li>Initial introduction to Sawtooth </li></ul></ul></ul><ul><ul><ul><li>Friendliness of crew </li></ul></ul></ul><ul><ul><ul><li>Atmosphere </li></ul></ul></ul><ul><ul><ul><ul><li>Music, layout, food, decoration </li></ul></ul></ul></ul>
  8. 8. <ul><li>Market Segments </li></ul><ul><ul><li>South Hill </li></ul></ul><ul><ul><ul><li>Anyone who eats out </li></ul></ul></ul><ul><ul><ul><li>Lunch market is downtown business crowd </li></ul></ul></ul><ul><ul><ul><ul><li>Look for quick, high-quality, fairly priced food </li></ul></ul></ul></ul><ul><ul><ul><li>Women shoppers during the day </li></ul></ul></ul><ul><ul><ul><li>Families that combine events </li></ul></ul></ul><ul><ul><ul><li>City visitors </li></ul></ul></ul>
  9. 9. <ul><li>Competitive Analysis </li></ul><ul><ul><li>Primary </li></ul></ul><ul><ul><ul><li>Rock City Grill </li></ul></ul></ul><ul><ul><ul><li>Red Robin </li></ul></ul></ul><ul><ul><li>Secondary </li></ul></ul><ul><ul><ul><li>Olive Garden </li></ul></ul></ul><ul><ul><ul><li>Cyrus O’Leary’s </li></ul></ul></ul><ul><ul><ul><li>Clinkerdagger’s </li></ul></ul></ul><ul><ul><ul><li>Anthony’s </li></ul></ul></ul><ul><ul><ul><li>P.F. Chang’s </li></ul></ul></ul><ul><ul><ul><ul><li>Under construction </li></ul></ul></ul></ul>
  10. 10. <ul><li>The Firm </li></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><ul><li>2 salaried & 63 hourly </li></ul></ul></ul><ul><ul><ul><li>FOH/BOH </li></ul></ul></ul><ul><ul><ul><ul><li>Structure consists of bartenders, servers, expediters, hostesses and bussers, which flow down from the organizational chart in level of authority </li></ul></ul></ul></ul><ul><ul><li>Team-based structure </li></ul></ul><ul><ul><ul><li>All members work together to </li></ul></ul></ul><ul><ul><ul><li>provide enjoyable experience </li></ul></ul></ul><ul><ul><ul><li>for all guests </li></ul></ul></ul>
  11. 11. <ul><li>Current Marketing Strategy </li></ul><ul><ul><li>Fairly weak </li></ul></ul><ul><ul><li>Sawtooth has never allocated a marketing or promotional budget </li></ul></ul><ul><ul><ul><li>Oxford Suites </li></ul></ul></ul><ul><ul><ul><ul><li>Suites offer free appetizer vouchers for staying </li></ul></ul></ul></ul><ul><ul><ul><li>“Bounce backs” from holiday months </li></ul></ul></ul><ul><ul><ul><li>Celebration cards </li></ul></ul></ul><ul><ul><ul><li>River Park Square promotions </li></ul></ul></ul>
  12. 12. <ul><li>Threats </li></ul><ul><ul><li>-Local competition </li></ul></ul><ul><ul><li>-Rate of savings rising </li></ul></ul><ul><ul><li>-Addition of P.F. Chang’s </li></ul></ul><ul><ul><li>-Rising gas prices </li></ul></ul><ul><ul><li>-Adverse weather trends </li></ul></ul><ul><li>Opportunities </li></ul><ul><ul><li>-Advertising </li></ul></ul><ul><ul><li>-Vertical integration </li></ul></ul><ul><ul><li>-Increasing population </li></ul></ul><ul><ul><li>-Downtown renovation </li></ul></ul><ul><li>Weaknesses </li></ul><ul><ul><li>-Staff turnover </li></ul></ul><ul><ul><li>-Inventory depletion </li></ul></ul><ul><ul><li>-Limited restaurant space </li></ul></ul><ul><li>Strengths </li></ul><ul><ul><li>-Food quality </li></ul></ul><ul><ul><li>-Service </li></ul></ul><ul><ul><li>-Restaurant cleanliness </li></ul></ul><ul><ul><li>-Consistency </li></ul></ul>
  13. 13. Marketing Objectives, Target Market, and Positioning
  14. 14. <ul><li>Marketing Objectives </li></ul><ul><ul><li>Increase sales to $2 million for 2006 </li></ul></ul><ul><ul><ul><li>$1.845 million in 2005 </li></ul></ul></ul><ul><ul><ul><li>8.4% increase </li></ul></ul></ul><ul><ul><li>Increase number of customers </li></ul></ul><ul><ul><li>Control business lunch downtown </li></ul></ul><ul><ul><li>Penetrate new markets </li></ul></ul><ul><ul><ul><li>Gonzaga </li></ul></ul></ul><ul><ul><ul><li>Vegetarian & health conscious eaters </li></ul></ul></ul>
  15. 15. <ul><li>Target Market </li></ul><ul><ul><li>Lunch </li></ul></ul><ul><ul><ul><li>Business professionals </li></ul></ul></ul><ul><ul><ul><li>Lots of downtown businesses </li></ul></ul></ul><ul><ul><ul><li>Fast, quality food </li></ul></ul></ul><ul><ul><ul><li>Must beat out competitors like Rock City and Red Robin </li></ul></ul></ul>
  16. 16. <ul><li>Target Market </li></ul><ul><ul><li>Dinner </li></ul></ul><ul><ul><ul><li>Families </li></ul></ul></ul><ul><ul><ul><li>Visitors to River Park Square </li></ul></ul></ul><ul><ul><ul><ul><li>People will not travel long distances for a casual dining restaurant </li></ul></ul></ul></ul>
  17. 17. <ul><li>Target Market </li></ul><ul><ul><li>Secondary Market </li></ul></ul><ul><ul><ul><li>Visitors to Spokane </li></ul></ul></ul><ul><ul><ul><li>Business travelers </li></ul></ul></ul><ul><ul><ul><li>Always need to acquire new customers </li></ul></ul></ul><ul><ul><li>New Market </li></ul></ul><ul><ul><ul><li>GU Students </li></ul></ul></ul><ul><ul><ul><ul><li>Student specials and iMye affiliation </li></ul></ul></ul></ul><ul><ul><ul><li>Riverpoint Campus in Spokane </li></ul></ul></ul><ul><ul><ul><li>New residents of Spokane </li></ul></ul></ul>
  18. 18. <ul><li>Market Positioning </li></ul><ul><ul><li>Business Clientele </li></ul></ul><ul><ul><ul><li>Quick, friendly service </li></ul></ul></ul><ul><ul><li>Families </li></ul></ul><ul><ul><ul><li>Comfortable atmosphere, family environment </li></ul></ul></ul><ul><ul><li>Visitors </li></ul></ul><ul><ul><ul><li>Quality at a great value </li></ul></ul></ul>
  19. 19. Marketing Plan
  20. 20. <ul><li>Product Strategies </li></ul><ul><ul><li>Focus on healthy side dishes </li></ul></ul><ul><ul><ul><li>Currently offered, but do not adequately promoted </li></ul></ul></ul><ul><ul><li>Offer vegetarian options </li></ul></ul><ul><ul><ul><li>Expand on salad offerings </li></ul></ul></ul><ul><ul><li>Provide low-fat options </li></ul></ul><ul><ul><li>Expand the drink menu </li></ul></ul><ul><ul><ul><li>Only 7 drinks on the menu </li></ul></ul></ul>
  21. 21. <ul><li>Promotion Plans </li></ul><ul><ul><li>iMye affiliation </li></ul></ul><ul><ul><li>Inlander advertisement </li></ul></ul><ul><ul><li>Website design </li></ul></ul><ul><ul><li>Neon sign placement </li></ul></ul><ul><ul><li>Personal selling </li></ul></ul><ul><ul><li>Wireless internet access </li></ul></ul>
  22. 22. <ul><li>iMye </li></ul><ul><ul><li>Comparable to flex </li></ul></ul><ul><ul><ul><li>Available at a wide variety of locations </li></ul></ul></ul><ul><ul><li>Would increase awareness among students </li></ul></ul><ul><ul><ul><li>Close to campus </li></ul></ul></ul><ul><ul><ul><li>Many students visit River Park Square to see movies </li></ul></ul></ul><ul><ul><li>Students do not consider iMye real money </li></ul></ul><ul><ul><ul><li>Accounts more than likely funded by parents </li></ul></ul></ul><ul><ul><ul><li>Much more willing to spend this than their own money </li></ul></ul></ul><ul><ul><li>Currently used by Sawtooth’s competition </li></ul></ul><ul><ul><ul><li>Cyrus O’Leary’s </li></ul></ul></ul>
  23. 23. <ul><li>Inlander Advertisement </li></ul><ul><ul><li>Increase brand awareness </li></ul></ul><ul><ul><ul><li>Circulates 45,000 papers to Spokane/Coeur D’Alene area </li></ul></ul></ul><ul><ul><ul><li>Reach readers who use the paper to search for upcoming events downtown </li></ul></ul></ul><ul><ul><li>Increase trial </li></ul></ul><ul><ul><ul><li>Obtain new customers </li></ul></ul></ul><ul><ul><li>Rates vary depending on size and color </li></ul></ul><ul><ul><li>Sizes: 1-20 units, 20 being a full page </li></ul></ul><ul><ul><ul><li>Can be arranged horizontally, vertically, or in a square </li></ul></ul></ul>
  24. 24. <ul><li>Inlander Advertisement </li></ul><ul><ul><li>Recommendation </li></ul></ul><ul><ul><ul><li>Two unit, black and white ad </li></ul></ul></ul><ul><ul><ul><li>Would contain Sawtooth logo, phone number, and address </li></ul></ul></ul><ul><ul><li>Discounts offered </li></ul></ul><ul><ul><li>Sawtooth should run a trial campaign </li></ul></ul><ul><ul><ul><li>Maximize frequency </li></ul></ul></ul><ul><ul><ul><li>Cost-effective </li></ul></ul></ul><ul><ul><ul><li>Run during summer months </li></ul></ul></ul><ul><ul><li>Total cost: $2,184 </li></ul></ul>
  25. 25. <ul><li>Website Design </li></ul><ul><ul><li>Potential to improve reach </li></ul></ul><ul><ul><li>Relatively low cost </li></ul></ul><ul><ul><li>Effective for those familiar with Sawtooth </li></ul></ul><ul><ul><ul><li>Check out promotions, print coupons, view menu </li></ul></ul></ul><ul><ul><li>Increase Competitive Abilities </li></ul></ul><ul><ul><ul><li>Keep up with competitors who operate websites </li></ul></ul></ul><ul><ul><ul><li>Increase awareness </li></ul></ul></ul>
  26. 26. <ul><li>Website Design </li></ul><ul><ul><li>Include features such as: </li></ul></ul><ul><ul><ul><li>Mapquest directions </li></ul></ul></ul><ul><ul><ul><li>Online menu & prices </li></ul></ul></ul><ul><ul><ul><li>Nutritional information </li></ul></ul></ul><ul><ul><ul><li>Business information </li></ul></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>Ranging between $1,600 and $3,100 </li></ul></ul></ul><ul><ul><ul><ul><li>Price dependent upon optional features </li></ul></ul></ul></ul>
  27. 27. <ul><li>Neon Sign Placement </li></ul><ul><ul><li>Current “Sawtooth Grill” neon sign faces a competitor, Rock City Grill. </li></ul></ul><ul><ul><ul><li>Cost of $12,000 to move this sign </li></ul></ul></ul><ul><ul><li>New location faces Main Street </li></ul></ul><ul><ul><ul><li>Seen by visitors coming in to River Park Square </li></ul></ul></ul><ul><ul><ul><li>Creates awareness of an additional dining option </li></ul></ul></ul>
  28. 28. <ul><li>Personal Selling </li></ul><ul><ul><li>Guests asked how they heard of Sawtooth </li></ul></ul><ul><ul><ul><li>Word of mouth/Neon sign/ Inlander Advertisement </li></ul></ul></ul><ul><ul><li>Provides evaluation of promotional avenues </li></ul></ul><ul><ul><li>Potential Problem </li></ul></ul><ul><ul><ul><li>Bothering repeat customers with the same questions </li></ul></ul></ul><ul><ul><ul><ul><li>May deter repeat visits </li></ul></ul></ul></ul><ul><ul><ul><li>Alternative is to offer a discount to customers who mention they saw an Inlander ad </li></ul></ul></ul><ul><ul><li>Virtually no cost </li></ul></ul>
  29. 29. <ul><li>Wireless Internet Access </li></ul><ul><ul><li>Currently does not offer wireless internet </li></ul></ul><ul><ul><ul><li>Spokane “Hot Zone” not reached in Sawtooth </li></ul></ul></ul><ul><ul><li>Effective method of reaching target market: </li></ul></ul><ul><ul><ul><li>Business professionals </li></ul></ul></ul><ul><ul><ul><li>Provides competitive advantage </li></ul></ul></ul><ul><ul><li>Cost </li></ul></ul><ul><ul><ul><li>Installation: $99.99 </li></ul></ul></ul><ul><ul><ul><li>Monthly Payment: $44.99 </li></ul></ul></ul><ul><ul><li>Must be advertised </li></ul></ul><ul><ul><ul><li>Sign near entrance </li></ul></ul></ul><ul><ul><ul><li>Free-standing cards on tables </li></ul></ul></ul>
  30. 30. Conclusion
  31. 31. <ul><li>We believe that these strategies can prove very beneficial for Sawtooth if implemented. By… </li></ul><ul><ul><li>Tapping into new markets </li></ul></ul><ul><ul><li>Catering to repeat customers </li></ul></ul><ul><ul><li>Making small changes such as sign placement and increased menu options </li></ul></ul><ul><li>Sawtooth can become especially profitable in the very near future </li></ul>
  32. 32. Any Questions?
  33. 33. <ul><li>Quiz </li></ul><ul><ul><li>Name 1 market that Sawtooth needs to control or penetrate. </li></ul></ul><ul><ul><li>What is the sales goal for Sawtooth during the 2006 year? </li></ul></ul><ul><ul><li>Name one type of media for Sawtooth that our group has suggested. </li></ul></ul><ul><ul><li>What is 1 strength of Sawtooth Grill? </li></ul></ul><ul><ul><li>In your opinion, what is the best marketing tactic for Sawtooth Grill and why? </li></ul></ul>

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