Saucy grill marketing plan

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Example of A+ Marketing Plan, that was created while attending Sheridan College.

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Saucy grill marketing plan

  1. 1. Marketing Plan Prepared For: Derek Barnes By: Roseanne Rawas, Travis MacDougall, Laura Ball, Luis Levy, Amanda Veitch and Narelle Kichula November 7, 2011
  2. 2. Saucy Grill Marketing Plan November 7, 2011TABLE OF CONTENTSEXECUTIVE SUMMARY……………………………………………………………………….71. Market Situation ..................................................................................................... 9 a) Definition of the market............................................................................................ 9 b) Market Size and Growth ........................................................................................ 10 c) Segmentation of the market ................................................................................... 11 d) Distribution Channels ............................................................................................ 15 e) Consumer Needs................................................................................................... 16 f) Consumer Preferences........................................................................................... 17 g) Consumer Perceptions .......................................................................................... 17 h) Consumer Buying Behaviors Trends ..................................................................... 182. CLIENT’s Business Situation .............................................................................. 19 a) Review of Client’s Business: ................................................................................. 19 i) Sales (in units and/or dollars) for past three years: ............................................. 19 ii) Market share (in units and/or dollars) for past three years ................................. 19 iii) Target Market .................................................................................................... 20 iv) Positioning ......................................................................................................... 20 v) Marketing Objectives .......................................................................................... 21 vi) Promotion Strategies ......................................................................................... 21 a) Advertising...................................................................................................... 21 b) Sales Promotion ............................................................................................. 22 c) Public Relations .............................................................................................. 22 d) Selling ............................................................................................................ 22 vii) Product / Service Quality Strategies ................................................................. 22 viii) Pricing strategies ............................................................................................. 23 ix) Distribution strategies ........................................................................................ 23 b) Summary of Key Findings from the Marketing Research Project .......................... 233. COMPETITIVE SITUATION .................................................................................. 26 a) Definition of primary and secondary competitors ................................................... 26 b) Review of competitors ........................................................................................... 26 Page 2 of 90
  3. 3. Saucy Grill Marketing Plan November 7, 2011 The Keg: .................................................................................................................... 26 i) Sales ................................................................................................................... 27 ii) Market share ...................................................................................................... 27 iii) Target Market .................................................................................................... 27 iv) Positioning ......................................................................................................... 28 v) Marketing objectives .......................................................................................... 28 vi) Promotion Strategies ......................................................................................... 28 a) Advertising...................................................................................................... 28 b) Sales promotion ............................................................................................. 28 c) Public relations ............................................................................................... 29 d) Selling ............................................................................................................ 29 vii) Product / service quality strategies ................................................................... 29 viii) Pricing strategies ............................................................................................. 29 ix) Distribution strategies ........................................................................................ 30 Moxie’s Classic Grill................................................................................................... 30 i) Sales ................................................................................................................... 30 ii) Market Share ...................................................................................................... 30 iii) Target Market .................................................................................................... 30 vi) Positioning ......................................................................................................... 31 v) Marketing Objectives .......................................................................................... 31 vi) Promotion Strategies ......................................................................................... 31 a) Advertising...................................................................................................... 31 b) Sales promotion ............................................................................................. 32 c) Public Relations .............................................................................................. 32 d) Selling ............................................................................................................ 32 vii) Product/Service Quality Strategies ................................................................... 33 viii) Pricing Strategies ............................................................................................. 33 ix) Distribution Strategies ....................................................................................... 33 Michael’s Back Door .................................................................................................. 34 i) Sales ................................................................................................................... 34 ii) Market Share ...................................................................................................... 34 Page 3 of 90
  4. 4. Saucy Grill Marketing Plan November 7, 2011 iii) Target Market .................................................................................................... 34 iv) Positioning ......................................................................................................... 34 v) Market Objectives .............................................................................................. 35 vi) Promotion Strategies ......................................................................................... 35 a) Advertising...................................................................................................... 35 b) Promotions ..................................................................................................... 35 c) Public Relations .............................................................................................. 35 d) Selling ............................................................................................................ 36 vii) Product/Service Quality Strategies: .................................................................. 37 viii) Pricing: ............................................................................................................. 37 ix) Distribution Strategies ....................................................................................... 374. MACRO-ENVIRONMENT SITUATION .................................................................. 38 a) Demographic Environment .................................................................................... 38 b) Economic Environment ......................................................................................... 40 c) Natural Environment .............................................................................................. 40 d) Technological Environment ................................................................................... 41 e) Political/legal Environment .................................................................................... 41 f) Socio/cultural Environment ..................................................................................... 425. SWOT Analysis..................................................................................................... 43 Business Strengths Analysis ..................................................................................... 43 Business Weaknesses Analysis ................................................................................ 43 Market Opportunities Analysis ................................................................................... 44 Market Threats Analysis ............................................................................................ 446. ISSUES Analysis .................................................................................................. 467. RECOMMENDED ONE YEAR OBJECTIVES ....................................................... 48 A) Financial Objectives and Rationale ....................................................................... 48 B) Overall Marketing Objectives and Rationale ......................................................... 498. RECOMMENDED ONE YEAR MARKETING OBJECTIVES AND STRATEGIES 50 A) Target Market ........................................................................................................ 50 i) Objectives and Rationale .................................................................................... 50 ii) Strategies and Rationale .................................................................................... 50 Page 4 of 90
  5. 5. Saucy Grill Marketing Plan November 7, 2011 B) Positioning ............................................................................................................ 51 i) Objectives and Rationale .................................................................................... 51 ii) Strategies and Rationale .................................................................................... 51 C) Product ................................................................................................................. 51 i) Objectives and Rationale .................................................................................... 52 ii) Strategies and Rationale .................................................................................... 52 D) Pricing ................................................................................................................... 52 i) Objectives and Rationale .................................................................................... 56 ii) Strategies and Rationale .................................................................................... 53 E) Distribution ............................................................................................................ 53 i) Objectives and Rationale .................................................................................... 56 ii) Strategies and Rationale .................................................................................... 53 F) Selling ................................................................................................................... 54 i) Objectives and Rationale .................................................................................... 56 ii) Strategies and Rationale .................................................................................... 54 G) Services ................................................................................................................ 55 i) Objectives and Rationale .................................................................................... 56 ii) Strategies and Rationale .................................................................................... 55 H) Advertising ............................................................................................................ 55 i) Objectives and Rationale .................................................................................... 55 ii) Strategies and Rationale .................................................................................... 55 I) Sales Promotion ..................................................................................................... 56 i) Objectives and Rationale .................................................................................... 56 ii) Strategies and Rationale .................................................................................... 56 J) Public Relations ..................................................................................................... 57 i) Objectives and Rationale .................................................................................... 57 ii) Strategies and Rationale .................................................................................... 57 K) Research and Development .................................................................................. 57 i) Objectives and Rationale .................................................................................... 57 ii) Strategies and Rationale .................................................................................... 57 L) Consumer Research.............................................................................................. 58 Page 5 of 90
  6. 6. Saucy Grill Marketing Plan November 7, 2011 i) Objectives and Rationale .................................................................................... 58 ii) Strategies and Rationale .................................................................................... 589. RECOMMENDED ONE YEAR ACTION PLAN ..................................................... 5910. PROPOSED ONE YEAR MARKETING BUDGET ................................................ 6811. MARKETING CONTROLS .................................................................................... 71 a) Explanation of how the proposed Marketing Plan recommendations address the stated issues (Section 6) and objectives (Sections 7 and 8)...................................... 71 b) Methods to be used to monitor and evaluate the Marketing Plan. ......................... 7412. EXHIBITS .............................................................................................................. 78 Exhibit 1 – Re-launch Website ................................................................................... 78 Exhibit 2 – Social Media ............................................................................................ 80 Exhibit 3 – Local Advertisements (flyers) ................................................................... 81 Exhibit 4 – Incentives ................................................................................................. 83 Exhibit 5 – Testimonial Page ..................................................................................... 85 Exhibit 6 – Loyalty Program ....................................................................................... 85 Exhibit 7 – Sponsorships ........................................................................................... 87ENDNOTES .................................................................................................................. 88 Page 6 of 90
  7. 7. Saucy Grill Marketing Plan November 7, 2011 EXECUTIVE SUMMARYThe enclosed marketing plan is an analysis of Saucy Grill’s business and overall operations.The following list of recommendations has been listed in priority and if implemented, shouldimprove upon sales and profits of Saucy Grill’s business.1) The website needs to be re-launched as it is currently out of operation. ● Saucy Grill should get a new website up and running soon, in order to improve restaurant credibility and retain loyal customers.2) Expand the catering business as this is an under-served market for Saucy Grill. ● Build awareness of the catering business to potential clients and increase catering services to existing clients.3) Use social media effectively to create brand awareness and stay connected withcustomers. ● Begin using social media more actively to connect with customers, utilizing sites such as: LinkedIn and Facebook as these are popular social media sites potential clients may already be using.4) Continue and expand local advertising in Streetsville by use of newspapers andflyers. ● Continue advertising in the Mississauga area, but begin to advertise in the Toronto Star. Use of flyers inserts, to reach a targeted number of people.5) Start utilizing the vacant lot (Saucy on the Side) as it is currently beingunderutilized. ● Saucy Grill is renting a vacant lot next to the restaurant, which is currently being used as external storage. The lot must be accessed from a door outside of the restaurant, causing a slowdown in accessing storage. Page 7 of 90
  8. 8. Saucy Grill Marketing Plan November 7, 20116) Start using incentives to keep and attract new customers. ● Begin using promotional incentives on weekdays to promote business during slow periods.7) Start making use of testimonials in the re-launched website to strengthen SaucyGrill’s brand image. ● Incorporate a testimonial page so Saucy Grill can project a positive image to potential customers.8) Saucy Grill should start to implement a loyalty program. ● Saucy Grill should increase its relationships with customers, through the use of loyalty programs to better retain clients.9) Bring in live entertainment to create an ambiance for the restaurant. ● Direct and in-direct competitors in Streetsville use live entertainment to attract customers. Saucy Grill should also use live entertainment to compete with other restaurants in the area.10) Expand the use of sponsorships in the local communities. ● Becoming positively known in the community will build good will for Saucy Grill and draw customers into the restaurant.11) Saucy Grill should look at updating its interior decor, to keep up with new designtrends. ● The decor should be modified to enhance the ambiance in the restaurant, by utilizing modern design trends in the restaurant industry. Page 8 of 90
  9. 9. Saucy Grill Marketing Plan November 7, 20111. MARKET SITUATION The market situation will give a detailed look into the foodservice industry in theStreetsville area (Mississauga, Ontario). We will be looking at the industry that Saucy Grillcompetes in, which is the full service, fine-dining restaurant sector.a) Definition of the market The following section will define the market that Saucy Grill competes in as well assome direct competitors that Saucy competes with. • Saucy Grill is classified in the food service industry as a full service restaurant, particularly in fine-dining, located at 111 Queen St. S, Streetsville, Mississauga, Ontario. • Saucy Grill specializes in catering to private weddings, corporate gatherings, private parties, social events, showers and on or off site. • Catering represents 2 to 3% of overall sales. • Saucy Grill’s direct competitors listed by location include: Mississauga, ON Oakville, ON • Moxie’s Classic Grill • Stoneboats • The Keg Steak House • Trattoria Timone • Michael’s Back Door • Oliver’s • La Castile Steakhouse • Jonathan’s • Breakwater Page 9 of 90
  10. 10. Saucy Grill Marketing Plan November 7, 2011b) Market Size and Growth 1 This section is an overview of the food service industry as a whole and theforecasted market growth. • In Canada, the foodservice industry is expected to grow at an average annual rate of 3.6%, which is slightly lower than 4.1%, the growth experienced in 2005 to 2008. • Limited service restaurants will lead in growth in the food service industry, with an average growth of 1.3% up until 2014. • Full service restaurants will grow annually, at a rate of approximately 1.2% by 2014. • This predicted growth is anticipated due to the recovery from the economic recession. Page 10 of 90
  11. 11. Saucy Grill Marketing Plan November 7, 2011 • In 2010, foodservice industry sales increased 3.1% which resulted in a growth of 1.8 billion dollars. 2 • The following chart represents the percent change in the market from 2008 to 2009 and from 2009 to 2010.Table 1Canadian Restaurant and Foodservices Association (CFRA) Forecast 2009-10c) Segmentation of the market 3 This section will break down the market into distinct identifiable groups. This breakdown will cover various types of restaurants that are in the full service restaurantindustry. Furthermore, this will look at specific customer groups who would be in themarket to utilize the services provided by a full service restaurant. Page 11 of 90
  12. 12. Saucy Grill Marketing Plan November 7, 2011 Segmentation of the businesses in the full service restaurant sector: Licensed/Unlicensed fine-dining: 4 • The dress codes in most fine-dining restaurants do not permit casual wear. • They have top notch service having servers with minimal tables, up to two servers per table, sometimes with a Maitre D’ overseeing it. • The menus are very classy with items being made with fresh quality ingredients. • Smaller portions of food are made with extreme attention to detail making food look and taste great. • Expect to pay a premium for the food and services that you receive. • It is very likely reservations must be made on busy nights at a fine-dining restaurant. • Most fine-dining restaurants are not franchises or have multiple chains. Casual Dining: 5 • Casual dining restaurants offer moderately priced food serving a larger market. • They service in between the fast food and fine dining market. • The atmosphere is with a more casual dress code. • They typically provide table service unless it is a buffet style restaurant. • It is typical to have a full bar, with separate bar staff. • Casual dining restaurants usually have larger beer menus and a limited selection of wines. • Frequently they are part of a larger chain and have multiple locations. Page 12 of 90
  13. 13. Saucy Grill Marketing Plan November 7, 2011 Family Restaurants: 6 • Family restaurants are more affordably priced and have fixed menu items available. • The restaurant is more open with booths and large tables for families. • Table service provided at family restaurants offer minimal service. • Minimal alcoholic beverages are offered, including liquor and a few popular brands of beer. • Staying true to their name, they are typically single-family businesses. Restaurant Bars: 7 • These establishments are moderately priced in the food and drinks offered. • They are typically open concept due to the nature and atmosphere of the restaurant. • They offer common food and meal choices to customers. • Have full bars with usually multiple bar tenders and bus boys. • Table service is provided to guests usually for rounds of drinks. • Offer a wide array of domestic and imported beer in bottles as well as on tap. • Have numerous types of liquors and provide mixed drinks as well. Segmentation of major consumers for full service restaurants 8 This segmentation of the consumer market was provided by a company called Prizm, which specializes in identifying various customer groups. The titles and all descriptions of these customers have been borrowed from Prizm. Since this is a school project we were granted access to this information. Page 13 of 90
  14. 14. Saucy Grill Marketing Plan November 7, 2011 Money & Brains: • They are typically older couples or families living in urban areas. • All of the people in this segment have gone to university and have white- collar jobs. • They are usually English speaking and have an average income of $123,359. • Most are homeowners; enjoy tennis and other upscale luxuries associated with this segment. • They are prosperous parents and are considered urban elites. Cluttered Nests: • These are older couples and have multi-generational families in the household. • They can be considered to be upper-middle class with either a university degree or a high school diploma. • Typically this segment could have either a white-collar job or a higher paying service job. • They are well-off averaging an income of approximately $88,436 a year. Electric Avenues: • This segment tends to be a younger group consisting of either singles or couples. • They are English speaking with either a white-collar or service jobs. • Although this group is either younger singles or couples they are well off with an income of about $85,464. • Due to their high incomes they are university graduates and are considered middle-class. Page 14 of 90
  15. 15. Saucy Grill Marketing Plan November 7, 2011 Grads and Pads: • This segment consists of mostly younger single individuals. • They have either a white-collar job or work in the service industries. • Most of them are recently graduated university students starting their careers. • All enjoy a modest annual income of approximately $61,246 and are considered lower-middle class. Blue Collar Comfort: • Middle-aged families make up this consumer market segment. • Just as the name suggests these are blue-collar and service workers. • These people have completed high-school or college as their education. • They are considered upper-middle class with an income of about $88,436 and they are homeowners.d) Distribution Channels This section deals with how all of the various types of competitors distribute theirproducts to the end consumers. This is also broken down into the various types ofrestaurants under the full service restaurant heading. Licensed/Unlicensed Fine-Dining: 9 • Companies in this segment usually offer “dine-in” as their only option due to the specialization of the meals and the unique plating. • These restaurants would also do catering either in house or on site for special events. Page 15 of 90
  16. 16. Saucy Grill Marketing Plan November 7, 2011 Casual Dining: 10 • Establishments in this market place offer larger distribution options than fine dining, since plates are more standardized and quality is lower. • They typically offer a dine-in option; have a take-out menu, and some even offer delivery on most products. Family Restaurants: 11 • These restaurants being smaller usually do not offer any delivery. • They do however offer dine-in services and the option to order take-out to pick up. Restaurant Bars: 12 • Companies who are restaurant bars also offer dine-in being in the full service sector but typically offer take-out on food items only. • Rarely delivery will be offered since menu items are fairly generic and no alcohol is available for take-out orders.e) Consumer Needs The following points depict various consumer needs that are expected whenordering food from companies in the food service industry: • A large variety of items to choice from, Items such as healthy and organic meals. 13 • Consumers want healthy higher quality products, such as fresher produce and better cuts of meat. 14 • Excellence in service is very important for companies in the foodservice industry, who want to be successful. Page 16 of 90
  17. 17. Saucy Grill Marketing Plan November 7, 2011 • Presentation of the food is important to customers as well as the atmosphere.f) Consumer Preferences 15 This section summarizes some of the consumer’s preferences while dining out: • Excellent customer service that is professional, convenient and timely. • A menu which offers customers to choose from a variety of appetizers, main dishes and desserts. • Consumers are always looking for a less expensive and more affordable meal while not sacrificing taste and service. • Different options such as a vegan and vegetarian alternatives. • Consumers are leaning towards healthier options due to increasing health concerns and dietary needs. 16 • Consumers want to be able to customize their meal, by being able to add and remove items. • Consumers want the option to dine inside, or outside on a patio. • Consumers are drawn to restaurants with promotions and specials such as 10% off meals and discounted drink nights. • Consumers want professional chefs cooking their meal, in order to receive the best quality food.g) Consumer Perceptions This section will cover some consumer perceptions of the food service industry: • Due to the recession, consumers want more value for their dollar. 17 • Customers go out to restaurants to enjoy socializing with friends, family and co-workers. 18 Page 17 of 90
  18. 18. Saucy Grill Marketing Plan November 7, 2011 • Customers want the option to be able to go into a restaurant and customize their meals. 19h) Consumer Buying Behaviors Trends The following dining trends are taking place in the food services market: • Consumers are more health conscious and are purchasing healthier items on the menu such as salads, and red wines. 20 • Maintaining a healthy balanced diet and leading an active lifestyle is increasingly important to consumers. • Consumers want to go out and enjoy an upscale meal, but with a desire to pay less. 21 • Consumers often want the calories listed beside the item on the menu because they are becoming very health conscious. 22 Page 18 of 90
  19. 19. Saucy Grill Marketing Plan November 7, 20112. CLIENT’S BUSINESS SITUATION 23a) Review of Client’s Business:i) Sales (in units and/or dollars) for past three years: The following sales numbers are an estimated figure of weekly sales based on the information Saucy Grill has provided. Based on the weekly sales, we have calculated that the average sales per year are $1,300,000. • $25,000 X 52 = $1,300,000 per yearii) Market share (in units and/or dollars) for past three years • Saucy Grill competes directly with two restaurants in Mississauga: • The Keg • Moxies • The location of competitors are listed on the map on the following page • Based on its annual sales, Saucy Grill likely has a large market share in Mississauga. • Given its location in a highly populated entertainment district, Saucy Grill attracts lunch hour customers, and those on their way home from work. • It also attracts families and couples who are looking for a night out for dinner. Page 19 of 90
  20. 20. Saucy Grill Marketing Plan November 7, 2011iii) Target Market • Saucy Grill has a broad appeal that attracts individuals who are looking for a casual fine dining experience. • Saucy Grill main target market is businesses, with customers ranging in age from 25-60. • Evenings and weekends are targeted towards couples between 25-35, and families with an average middle income. • Saucy Grill’s business is 1/3 lunch and 2/3 dinner. No lunch is offered on weekends.iv) Positioning • Saucy Grill positions itself as a casual fine dining restaurant offering fresh made, in house meals with excellent service in a relaxed environment. Page 20 of 90
  21. 21. Saucy Grill Marketing Plan November 7, 2011 • Saucy Grill also offers catering for mostly corporate business events. • Saucy Grill is “Classy yet social allowing you to relax and enjoy your company and food in a comfortable environment.” 24 • Saucy offers fresh made food prepared on site.v) Marketing Objectives Saucy Grill’s current marketing objectives are as follows: 1. To increase sales by 5% during week nights in the next 3 months. 2. To sustain sales at an increase of $10,000 per month over the next year. 3. To maintain the loyalty of their corporate business customers while meeting the goals outlined in the above two objectives.vi) Promotion Strategies a) Advertising • Saucy Grill advertises in the Entertainment Book that is distributed to the Greater Toronto Area. • Most promotion is done through word of mouth. • Saucy Grill also places business cards in The Delta Meadowvale and The Marriott Hotels, for patrons to choose a restaurant while staying at the hotel. • Saucy Grill advertises in the local newspaper “The Mississauga News” and on the “Village of Streetsville” website. • Saucy Grill’s website provides customers with the menu, pictures of the restaurant and upcoming special events. Page 21 of 90
  22. 22. Saucy Grill Marketing Plan November 7, 2011 b) Sales Promotion • Saucy offers a “Taste of Saucy” menu including a three course meal at a set price of $32 which is available to customer’s every day, but changes are made to this menu monthly. • The “Taste of Streetsville” three course meal is set at a price of $25 and is done twice a year. • They offer 10% off for takeout customers due to the reduction in service required. c) Public Relations • “Taste of Streetsville,” which is done twice a year, helps improve the image Saucy Grill has in the neighborhood, and with other local businesses. d) Selling • Saucy Grill offers in house or take out services as well as catering for corporate events, weddings, and family gatherings. • One of Saucy Grill’s selling strategies is to have experienced staff know the food, wine, and liquor menu very well. • The staff provides information about specials and provides recommendations. • Saucy seats 122 people inside and 24 people on the outside patio.vii) Product / Service Quality Strategies • Saucy always provides fresh ingredients and in house specialties. • Strong relationship building with customers is encouraged, making customers feel welcomed in a classy social environment. Page 22 of 90
  23. 23. Saucy Grill Marketing Plan November 7, 2011 • They provide customers with a friendly welcome and prompt service. • The menu options are continuously being modified.viii) Pricing strategies • Saucy is priced competitively with fine dining restaurants in the Greater Toronto Area. • Saucy offers a 10% discount for all items on their takeout menu. • Saucy offers a three course meal special with a variety of choices to choose from for $32.ix) Distribution strategies • Saucy Grill distribution channels include dine-in and take-out. • Hours of operation include Monday 11:30am to 9pm and Tuesday to Friday 11:30am to 10pm, Saturday 4pm to 10pm and Sunday closed.b) Summary of Key Findings from the Marketing Research ProjectResearch through a self-administrated survey was conducted for academic purposes atSheridan College, intended to provide background information for Saucy Grill, a fine diningrestaurant located in Streetsville, ON. Research was conducted to provide a deeperunderstanding of consumer attitudes towards fine dining restaurants. The survey findingsshould be replicated by an independent, professional research company before being actedupon.Research MethodologyPopulation of interest included people who dine-in at fine dining restaurants for businessand/or personal purposes. Surveys were distributed during January - April 2011. A goal of300 surveys was nearly reached with a total of 295 surveys completed using the onlinesurvey tool, Survey Monkey (117) and standard hard copies (178). Surveys were given out Page 23 of 90
  24. 24. Saucy Grill Marketing Plan November 7, 2011at Sheridan College; survey links were posted on Facebook and LinkedIn and given toemployees at various businesses throughout the GTA (Oakville, Mississauga, and Toronto).Some key limitations of conducting this survey are that the survey may not have reflectedthe population due to the sample size of the survey. Also, inaccurate responses may haveresulted from respondents believing the survey was too long.Significant findings related to our research objectives were found through analysis of thesurvey results. The research objectives are as follows and are in order of priority: 1. To determine the profile of customers who eat at fine dining restaurants. 2. To determine the buying behaviours of consumers who eat at fine dining restaurants. 3. To determine what sources of information people use when deciding to use fine dining restaurants. 4. To determine the ideal attributes and experiences consumers have from a fine dining restaurant. 5. To determine respondents most recent dining experience. 6. To identify consumers needs towards catering for special family events from fine dining restaurants. 7. To determine occasions that customers would use catering services from a fine dining restaurant. 8. To determine what customers look for when ordering take out food from a fine dining restaurant.Key Findings • Most respondents were between the ages of 25-34 accounting for 32.5% of the sample. • Slightly over half of respondents at 50.9% said they rarely use fine dining services for business purposes. Meanwhile, 40.1% of those who were surveyed said they go out at least once a month for personal reasons. • Out of all the respondents 90% agreed that it is important that the servers be knowledgeable and 95.2% of those surveyed agreed that cleanliness is important in Page 24 of 90
  25. 25. Saucy Grill Marketing Plan November 7, 2011 fine dining restaurants. Friendly and courteous employees were also ranked high by respondents with 91.9% stating it is important. • The Keg was the most visited fine dining restaurant with 29.8% of respondents saying The Keg was their last fine dining experience. Those who work in the Management and Business sector stated they dined out at The Keg as their recent fine dining restaurant experience. • Catering services is most frequently requested when consumers are a part of a wedding, with 84.7% of respondents feeling it is likely needed. 81% of respondents feel that delivery time for a catering service is extremely important. • 98.3% of consumers believe having a varied menu selection is important when ordering take out. • The two main sources of information consumer’s use when deciding on a fine dining restaurant are referrals and reputation, both having 95% of the respondents agree. Page 25 of 90
  26. 26. Saucy Grill Marketing Plan November 7, 20113. COMPETITIVE SITUATIONa) Definition of primary and secondary competitors Primary Competition: • The Primary competition for Saucy Grill in the casual fine dining restaurant industry is The Keg, Moxies and Michaels Back Door. These are considered to be Saucy Grill’s direct competitors because they offer high quality of food, acceptable service, and a comfortable atmosphere. Secondary Competition: • The Secondary competition for Saucy Grill consists of indirect competitors such as full-service restaurants that are priced medium to low (Ex. Kelsey`s, Boston Pizza), and fast food restaurants that are priced extremely low (Ex. McDonalds, Subway).b) Review of competitorsThe Keg: 25The Keg is a chain of upscale restaurants in the United States and Canada. The Kegspecializes in serving only the finest cuts of meat. They also offer slow roasted primerib, shellfish, fresh salads, a variety of desserts and wine list. As of right now The Keghas 102 restaurants ranging from coast-to-coast in Canada, and has locations in theUnited States such as Phoenix, Dallas/Fort Worth, Denver and Seattle.The Keg has many similarities to Saucy Grill such as food items, promotional offers,and atmosphere. The Keg can be considered one of Saucy Grill main directcompetitors. Page 26 of 90
  27. 27. Saucy Grill Marketing Plan November 7, 2011i) Sales 26 • The Keg’s main revenue is from sales in the restaurant, franchise royalties and fees. • The Keg Rights Limited Partnership grants an exclusive licence to use the Keg Righs to licence and make royalty payments to the Partnership equal to 4% of gross sales of Keg restaurants. • The gross sales reported by the 102 Keg restaurants in the Royalty Pool were $110,382,000 for the last quarter in 2010, an increase of $2,050,000 or 1.9% from the comparable quarter of the prior year. • The chart below shows the total sales in millions from The Keg restaurantsii) Market share • Market share is not available for The Keg. • Within Ontario there are 41 Keg locations, two are in Mississauga alone.iii) Target Market • The target market consists of males and females and business oriented consumers, aged 20 and over, who are employed with middle to high income salary. • The Keg attracts individuals that are looking for an upscale dining experience. Page 27 of 90
  28. 28. Saucy Grill Marketing Plan November 7, 2011iv) Positioning • The Keg Steakhouse & Bar positions itself as a restaurant striving on three key ingredients: quality, comfort and value. 27v) Marketing objectives 28 1. To increase sales by 2.5% in the next year. 2. To open at least 2-3 more stores within the next year in Canada or the United States. 3. The increase awareness of The Keg. 4. To provide customers with great service and excellent food to encourage repeat business.vi) Promotion Strategies a) Advertising 29 • The Keg uses television commercials to promote their restaurant and specials. • They run advertisements in local newspapers. • The Keg also advertises on their own website providing customers with menus, specials, contact information and franchising information. • The Keg has a newsletter that customers can sign up for to learn about the latest promotion and offers. b) Sales promotion 30 • The Keg newsletter provides customers with features and promotions. • The Keg offers features on their menu for a lower price for a time period to promote the dish. • The Keg has Monday-Thursday cheaper drink night. Page 28 of 90
  29. 29. Saucy Grill Marketing Plan November 7, 2011 c) Public relations 31 • Keg employees are encouraged to donate their time and energy to local initiatives that benefit their communities such as participating in local charity walks, filling the storerooms of emergency shelters, or providing special dinners for families in need. • The Keg also supports many charities such as Big Brother Big Sister, Free the Children, Youth in Motion top 20 under 20, and many more. d) Selling 32 • The Keg offers in house and take out services. • The Keg offers a bar, lounge atmosphere, comfortable restaurant area, and a heated patio. • The staff is well trained and provides customers with recommendations and daily specials. • The Keg in Mississauga is located in a very popular area, with lots of stores and restaurants in the area. • Within Ontario there are 41 Keg locations.vii) Product / service quality strategies 33 • The staff provides friendly service by greeting consumers at the entrance and showing them to their seat. • The Keg is positioned as having the best steak with a great blend of flavors and the best high quality of beef. • Healthy options are offered throughout the menu in a variety of soups, salads, sandwiches and drinks. • The nutritional information is provided to the customer upon request, and can be viewed online.viii) Pricing strategies • The Keg is priced more expensively than its competitors because of the high value of food it offers. Page 29 of 90
  30. 30. Saucy Grill Marketing Plan November 7, 2011 • The Keg offers promotions on their features. • During the week, they offer lower prices at happy hour” for cocktails and drinks.ix) Distribution strategies 34 • The Keg offers a dine-in and take-out option. • The Keg is open from Monday – Wednesday 11:30am-11pm and from Thursday-Friday 11:30am-Midnight, Saturday 3pm-Midnight and Sunday 3pm- 11pm.Moxie’s Classic GrillMoxie’s is an upscale, casual dining restaurant and bar, with an atmosphere that makes youfeel welcome and relaxed. With an elegant dining room and an upbeat lounge to makeguests have the best dining experience possible. Moxie’s focuses on excellent food qualityand services. The company’s dynamic offering appeals to many audiences includingfamilies, students, couples and business professionals. Moxie’s was founded in Calgary in1986, with more than 55 restaurants located in five provinces, including British Columbia,Alberta, Saskatchewan, Manitoba and Ontario. 35i) Sales • Moxie’s main revenue occurs from sales in the restaurant. • Moxie’s generates about $100,000 a week in revenue per location. 36ii) Market Share 37 • Moxie’s has 55 restaurants across five provinces in Canada. • Yearly system sales of over $28.6 million.iii) Target Market 38 Moxie’s has multiple target markets due to having a dining area and a lounge. Page 30 of 90
  31. 31. Saucy Grill Marketing Plan November 7, 2011 Dining Room • The Dining room brings in a crowd of families, couples and business professionals to have a quiet place for meetings. • The music is softer and the lighting is dimmed. Lounge • Moxie’s lounge and bar is age restricted at 19 plus. • The lounge brings in business professionals, couples and students who are looking to have an upbeat relaxing experience. • Servers are friendly and easy to have a conversation with.vi) Positioning 39 • Moxie’s positions themselves as an “upscale ‘non-themed’ restaurant, coupled with superior quality food offerings and service.” • “It is our primary goal to provide a positive experience for each one of our guests. From our freshly prepared food to our guest focused service we continually strive to maintain and improve our guests’ experiences.”v) Marketing Objectives 40 1. To expand from Atlantic Canada and Quebec to Vancouver island. 2. To achieve a high level of long-term restaurant profit. 3. To maximize the profit potential of our sales.vi) Promotion Strategies 41 a) Advertising • Moxie’s does a lot of in store advertising promotions with direct communication from servers. • Servers tell guests about on coming holiday features and promotions including New Year’s set menu. Page 31 of 90
  32. 32. Saucy Grill Marketing Plan November 7, 2011 • Moxie’s uses Twitter and Facebook to advertise upcoming events and specials. 42 • Moxie’s also has commercials and media ads. b) Sales promotion • Moxie’s offers a daily drink feature throughout the week: • Monday: Euro and Amber drafts $3.99 • Tuesday: Margaritas $3.99 • Wednesday: Bellini’s $3.99 • Thursday: Martinis $5.99:Big Life Grasshopper and Gopher pints $4.99 • Friday: Bad boy Beers $7.99 and GT’s $5.99 • Saturday: Long Island Icebergs $5.99 • Sunday: Caesars $4.99 • Monday nights at Moxie’s is wing night, one pound of wings is for $3.99 • When you buy corporate gift cards you save money 43 • $500 - $999 save 5% • $1,000 - $4,999 save 10% • $5,000+ save 15% c) Public Relations • Moxie’s is involved in a charity golf tournament fund raiser. This charity supports breakfast for learning, a leading nonprofit organization. • After the event Moxie’s Classic grill located in Guelph held a steak dinner for those who participated in the event. 44 • Moxie’s has also sponsored an annual charity golf tournament for the Canadian Centre of Diversity. 45 d) Selling • Moxie’s has over 55 locations in Canada and is continuing to grow. Page 32 of 90
  33. 33. Saucy Grill Marketing Plan November 7, 2011 • Servers let guests know about the features of the day. • The menu has a separate section for children’s menu. • On average Moxie restaurants have 225 seats available divided between the dining area, lounge, bar and patio.vii) Product/Service Quality Strategies 46 • Every season Moxie’s comes out with a seasonal menu, to change up the choices available to keep with trends. • Moxie’s motto is “whatever you’re in the mood for” With a wide range of food choices to satisfy everyone. • “Moxie’s focuses on superior food quality, exceptional service and prices that represent great value for guests.” • “We will surprise them with ongoing refinements and new additions of the offering. Our quality, value, décor, product presentation and people speak to the high standard required to exceed the expectations of the marketplace.”viii) Pricing Strategies 47 • Moxie’s is competitively priced and deliver high quality products and services for a reasonable price. • Servers offer meals that always have room for up sells (add chicken, salmon, shrimp, steak, mushrooms, sauces, etc). • Prices may vary by location and are subject to change.ix) Distribution Strategies 48 • Moxie’s offers dine in or take out. • Hours of operation vary depending on location. • Many locations open at 11am and close at 12pm Sunday – Thursday and closes at 1am Friday and Saturdays. 49 Page 33 of 90
  34. 34. Saucy Grill Marketing Plan November 7, 2011Michael’s Back Door Michael’s Back Door is a restaurant with award winning cuisine and professionalcourteous service in a warm, comfortable atmosphere. Michael’s Back Door is a fine diningItalian restaurant offering fresh ingredient, and a large variety of food and wine. Michael’sBack Door offers catering, take-out, private events, special events, and offers a casual orromantic restaurant experience. 50i) Sales • Information is not availableii) Market Share • Information is not availableiii) Target Market • Michael’s Back Door target market is individuals ranging from 19-65 who enjoy a casual dinner, a romantic night out or a group outing. • Target market ranges from middle class to high income families.iv) Positioning 51 • Michael’s Back Door positions themselves as a casual elegant Italian continental restaurant • They offer the freshest ingredients in a variety of wines. • They have multiple different rooms to cater to everyone’s needs such as Banquet room, full bar, wine room, piano room, nonsmoking restaurant, private room, and patio. • Michaels Back Door is successful in bringing a comfortable home environment to dine-in customers. Page 34 of 90
  35. 35. Saucy Grill Marketing Plan November 7, 2011v) Market Objectives 52 1. To increase awareness of Michael’s Back Door in the 19 to 65 age group. 2. To ensure the loyalty of their weekly customers. 3. To increase sales in the week with their lunch crowd.vi) Promotion Strategies a) Advertising • Michael’s Back Door advertises through social media such as Facebook and Twitter. • They advertise in the local Clarkson newspaper. • Michael’s Back Door offers a website with easy access, detailed menus, and detailed services they provide. b) Promotions 53 • Michael’s offers “Taste of Clarkson” which is a three course meal lunch for $15 and a dinner for $25 dollars. • They offer a bonus of $25 gift certificate for every gift certificate purchase of $125 or more. They also offer complementary delivery via Canada Post. • They celebrate 29 years for 29 days at 29 dollars. They offer a three course meal for $29 for 29 days. They also give away a $50 gift card every day for 29 days. c) Public Relations 54 • Michael’s Back Door restaurant is involved in the Hockey Hall of Fame charity presenting the art of hockey. They do a silent auction presented by the Hockey Hall of Fame and Michael’s Back Door in benefit of shoot for cure spinal cure research. They also offer special prefix menu and raffle tickets. • Michael’s is involved in an annual royal Ontario golf club tournament in Oakville. They have raised over $7,100 for the Ian Anderson House Charity. Page 35 of 90
  36. 36. Saucy Grill Marketing Plan November 7, 2011 • Michael’s took place in an event featured multiple course dinners with a selection of breads and white wines and all proceeds were donated to the Heart House Hospice Charity. d) Selling 55 • Michael’s Back Door offers in house dining experience, take-out, catering, private functions, and run special events. • Michael’s offers fresh and rare wines for their customers to enjoy. • Each room accommodates a certain number of guests. Solarium which is a semi-private room holds 22 guests, wine room full private room for 16 guests, piano room which accommodates 40 guests for a sit down, or 80 for sit-down reception and their main dining area holds over 100 guests. • Michael’s provides easy online reservations. Page 36 of 90
  37. 37. Saucy Grill Marketing Plan November 7, 2011vii) Product/Service Quality Strategies: • Michael’s Back Door is an award winning cuisine with professional courteous service in a warm comfortable atmosphere. • They offer healthy foods by providing the freshest ingredients. • They offer a variety of Italian food choices from salads, soups, pizzas, pasta, seafood, and deserts. • Michael’s prides themselves on serving the freshest ingredients, and building long term guest relationships.viii) Pricing: • Michael’s Back Door is competitively priced offering a variety of foods priced accordingly. • Michael’s offers a variety of rare wines at different price ranges. They offer it by glass, ½ Liter or bottle ranging from prices of $26- $400. • They offer “Taste of Clarkson” at a lunch price of $15 and a dinner price of $25.ix) Distribution Strategies • Michael’s Back Door distribution channels include: dine in, take-out, and catering. • Hours of operation include Sunday-Monday: 5pm-9pm Tuesdays- Thursday11:30am-2:30pm and 5pm-9pm, Friday-Saturday 5pm-10pm. Page 37 of 90
  38. 38. Saucy Grill Marketing Plan November 7, 20114. MACRO-ENVIRONMENT SITUATIONa) Demographic Environment Canada 56 • In 2009 Canada’s population was 31.9 million. It has grown by 3% from 2001. Due to the population increasing, restaurants have a great opportunity to gain awareness and revenue. 57 a. To date Streetsville has a total population of 42,327. This has increased by 17% from 2006. 58 b. Saucy Grill is a prime target for households living in Streetsville. The average household income is $114,339. This falls right into Saucy Grill’s target market. 59 c. Most people living in Streetsville are married couples looking for high end casual sit down restaurants. Streetsville population details: 60 • The age range of people living in Streetsville is typically between 20 and 44 years old. At this age, people go out more often for entertainment and dinners. 61 Page 38 of 90
  39. 39. Saucy Grill Marketing Plan November 7, 2011 Streetsville family details: 62 • The average Canadian spends $123.76 on food per week. $37.52 of this is spent at restaurants. 63 • Below is a chart that shows average gross income in by year. Income rates are keeping pace with inflation.Table 2 64 Page 39 of 90
  40. 40. Saucy Grill Marketing Plan November 7, 2011b) Economic Environment • Due to Canada’s unemployment rate being lower than other countries coming out of the recession, in 2011, consumer spending is expected to increase 2.8%. 65 • The restaurant industry is affected as interest rates change, when rates fall and economic activity picks up, consumers are likely to dine out more often. 66 • Restaurants are affected by the economy whenever it takes a plunge, and the first thing consumers cut down on are entertainment and dining out. 67 • Eating out has become more and more expensive over the past few years and the cost of a meal today has tripled over the last decade due to the economy. 68 • In the restaurant industry, increasing costs of doing business affects the entire supply chain.Starting from the farmer to the food processor, distributor, delivery of food items and finally the increased pricing on menus. 69 • When the costs of doing business is coupled with increasing utility bills, insurances and taxes, businesses may be operating on a very narrow margin. 70c) Natural Environment • Rising fuel costs internationally have affected the restaurant industry because people do not want to travel far to go out and eat. 71 • Since there has been an increase in fuel costs, the restaurant industry increased the cost of food items due to increase transportation costs. Rising food prices have risen by 45% since the end of 2009. 72 • Concerns about climate effects restaurant industries with respect to an increase in food crop prices which leads to higher menu prices. 73 • Rising biofuel productions on corn and oil in particular. 74 • An increase in severe weather such as droughts, and shorter crop seasons affects global food production and prices. 75 • Higher input costs such as animal feed, energy, and fertilizer drive up prices in crops for fruits, vegetables, meats, dairy and wheat products. 76 • There has been an increase in organic foods, because it contributes to a healthier living style. The sales for organic food have increased from 2008 to 2009 by 11.4% in the fruits and vegetable industry. This is over 24.8 billion dollars in sales. 77 Page 40 of 90
  41. 41. Saucy Grill Marketing Plan November 7, 2011d) Technological Environment • High-Tech hygiene and new technology is allowing restaurants to maintain food safety and ensure cleanliness of employees. 78 • Restaurant security systems, POS systems, and scheduling systems have made it much easier and more efficient to do business. 79 • Improving technology in restaurants by using basic CRM software, wireless ordering devices and handheld devices improves customer experience. 80 • The future of restaurant technology will use eMenus, which is a digital, touch screen, interactive menu system that is quick and easy for the consumer and restaurant. 81 • Accounting software is important in the restaurant business which focuses on customer satisfaction and pricing strategies. 82e) Political/legal Environment • Businesses must follow employee laws under the Employment Standards Act and the Ontario Ministry of Labour which include: minimum wages, overtime, and employee tips. 83 • There are many permits and licenses restaurants must follow such as: A Food Handler’s License or Permit, A Liquor License, A Sign Permit, A Music License, Fire Certificate and many more, depending on the country and city you are in. 84 • Regulations for specific businesses include: Health and Safety Regulations, Importing Regulations, Registering your business and many more that apply to different areas and regions. 85 • The Smoke-Free Ontario Act affecting Bars and Restaurants, revised May 2010 prohibits smoking in enclosed workplace or public areas in Ontario. 86 • The Smoke-Free Ontario Act also prohibits smoking on outdoor patios if covered or partially covered by a roof. 87 • The Canadian Food Inspection Agency (CFIA) provides standards on delivery of inspection services, federally regulated sectors of Agri-food, imported foods, managing food safety risks, food safety action plan and more information that can be found on the CFIA website. 88 Page 41 of 90
  42. 42. Saucy Grill Marketing Plan November 7, 2011f) Socio/cultural Environment • As consumers are increasingly using social networking sites and e-mail, so do restaurants use them in order to get the word out on their restaurant. 89 • The green movement is now a standard in many restaurants and hotels leaning towards more recycling and conserving energy. 90 • Consumers are leaning towards healthier food options due to the growing concern about our health, which can be found in Canada’s Food Guide. 91 • Special dietary needs to be addressed with regards to restaurant menus. Some consumers have food sensitivities, allergies or intolerance. 92 • Restaurants need to adhere to the ever-changing population. Communities are becoming more multicultural than ever. Different options become readily available such as, Halal for Muslims and Kosher for the Jewish population. 93 Page 42 of 90
  43. 43. Saucy Grill Marketing Plan November 7, 20115. SWOT ANALYSISBusiness Strengths Analysis 94 • Saucy Grill’s business has been open for 10 years in Streetsville. • They are located in a premium location in Streetsville. • The restaurant reaches a wide variety of customers, such as corporate, families and couples. • They regularly advertise in local newspapers and online. • The restaurant meets the needs of customers in three different ways: catering services, takeout or dine-in. • They are regularly active in in the neighborhood through various promotional activities. • Saucy Grill’s seating fits 122 people comfortably, which is larger than the other restaurants in Streetsville. There is also an outside patio, which is great in the summer. • They offer a room for businesses to conduct meetings without distraction from the restaurant. • Saucy Grill uses only fresh ingredients in their meals. None of their food is frozen. • The restaurant employs professional chefs.Business Weaknesses Analysis 95 • Currently, Saucy Grill has no website available for current and potential customers to view. • The restaurant’s décor needs to be updated to meet customer’s expectation of fine dining restaurants. • Saucy Grill is paying for unnecessary space beside the restaurant and is currently not using it as part of the business. • Their open concept kitchen is not visible by the diner. • There is no menu posted on their windows or advertised outside around the restaurant which is key for fine dining. Page 43 of 90
  44. 44. Saucy Grill Marketing Plan November 7, 2011 • Appropriate live entertainment is not offered which is common in restaurants around the neighborhood.Market Opportunities Analysis • The Canadian population is increasing, which means a growing consumer market for the food service industry. 96 • Increasing incomes rates in Canada will encourage greater sales in non-essential goods and services due to higher disposable income. 97 • Social media, has become one of the most efficient ways to connect with customers. 98 • Increased interest in organic food has opened up a new market opportunity for the foodservice industry to serve. 99 • Use of customer databases has been proven to increase retention of customers. 100 • Advancements in POS systems have greatly increased speed of service, accuracy and management of business resources. 101 • With the green movement, many consumers are more aware of products and companies who make an effort to go green. 102 • Canada is a very multi-cultural society with different cuisines from all over the world. 103 • Many companies are using customer databases to effectively promote and retain valuable customers. 104Market Threats Analysis • Rising fuel costs in discouraging unnecessary travelling by consumers. 105 • Rising fuel costs are increasing the cost of goods for restaurants. 106 • Increasing costs of essential goods could cause for another increase in the minimum wage employers must pay their employees. 107 • With consumers being more aware of green initiatives, some may choose to not use a service from companies who are not making an effort to be green. 108 • There are numerous competitors in the casual fine dining industry, many of which offer prices that are usually found at casual dining restaurants. 109 Page 44 of 90
  45. 45. Saucy Grill Marketing Plan November 7, 2011 • After the recent recession, there have been a lot of business closures in the Streetsville area, bringing into consideration the profitability of that location. 110 • Many causal fine dining restaurants are open on Sundays to cater to the family market segments. 111 • There are numerous restaurants serving the different needs and wants of Canada’s changing demographic preferences. 112 Page 45 of 90
  46. 46. Saucy Grill Marketing Plan November 7, 20116. ISSUES ANALYSIS1. Saucy Grill has minimal local advertising. ● Saucy Grill relies mostly on local print advertising. ● Currently is not effectively utilizing social media sites for the restaurant. ● There are no promotions other than “Taste of Saucy” and “Taste of Streetsville.” ● Saucy Grill does not utilize the Internet much to promote public relation activities for the restaurant.2. The website needs to be re-launched. ● Saucy Grill’s website has been out of operation for over 8 months now. ● Competitors have websites with online ordering available while Saucy Grill does not.3. Search Engine Optimization is not utilized to improve visibility of Saucy Grill insite search results. ● Not many keywords, pages, and inbound links come up in a search for “Saucy Grill” on the first page of results. ● Local restaurants are among the most highly searched type of business; therefore, Saucy Grill is missing out on a great advertising tool for the restaurant.4. Customer awareness is minimal in the immediate area. ● Local neighborhood is underutilized for advertising. There are minimal signs identifying where Saucy Grill is in Streetsville.5. Brand image is limited due to minimal use of public relation strategies. ● Saucy Grill is not featured in local outlets or in any travel publications. ● Saucy Grill does not utilize local sponsorships to improve their brands image. Page 46 of 90
  47. 47. Saucy Grill Marketing Plan November 7, 20116. Saucy Grill has limited strategies in place that improves overall operations ofthe business. ● Saucy Grill uses traditional methods of taking and inputting orders, such as a pad and paper, which increases wait times due to the process; this could potentially affect overall order accuracy. ● The restaurant is focusing on one aspect of the business at the expense of other potentially profitable areas, such as “Saucy on the Side - a vacant lot” and the catering services of the business.7. The vacant space next door, owned by Saucy Grill is being underutilized. ● There is a neighboring unit that is currently vacant and being used for little more than storage. ● To access the equipment in this vacant lot, you must enter through an exterior doorway and it is not an efficient workable storage area. ● Saucy Grill is paying for the rental of the vacant lot which is not being utilized effectively.8. Catering represents a small portion of Saucy Grill’s entire operation. ● Catering currently only contributes to 2 - 3% of the total revenue Saucy Grill makes. ● Their catering services are not promoted enough to entice new potential customers. Page 47 of 90
  48. 48. Saucy Grill Marketing Plan November 7, 20117. RECOMMENDED ONE YEAR OBJECTIVESA) Financial Objectives and RationaleObjectives ● To increase Saucy Grill’s overall sales by 15% within a one year time period. • In-house restaurant sales will contribute to a 10% increase to the total gross sales. • The catering business will contribute the remaining 5% increase to the total gross sales.Rationale ● The restaurant has little room for an expansion without a major renovation to the extra lot available next door to the restaurant. By having off peak hour promotions, Saucy Grill could realize growth in markets not previously considered. This is why walk-in sales will contribute a 10% for the upcoming year. ● Currently Saucy Grill’s catering business represents very little to overall sales. With additional advertising and promotion of this service, (outside of the immediate neighborhood) good growth could be realized, building upon their corporate catering reputation. This is why catering will contribute the remaining 5% increase to overall sales. Page 48 of 90
  49. 49. Saucy Grill Marketing Plan November 7, 2011B) Overall Marketing Objectives and RationaleObjectives ● To increase traffic from new markets. ● To increase revenues of the catering business by promoting to other businesses and customers in the GTA. ● To effectively differentiate Saucy Grill from its competition in the area and to position itself as an alternative not a substitute for competitors. ● To create a loyalty program and offer appropriate rewards to customers and expand their customer base.Rationale ● During peak times of the day Saucy Grill is already enjoying high volumes of customers. By appealing to new target markets, Saucy Grill could see more traffic and expand its customer base and appeal. ● By promoting the catering service to a broader market, profits and sales will increase in the business. ● With competition in the area, it’s imperative for Saucy Grill to differentiate their product offerings and occupy a space of its own in the minds of consumers. ● By creating and promoting the loyalty program, customers will choose Saucy Grill over other restaurants when dining out. Page 49 of 90
  50. 50. Saucy Grill Marketing Plan November 7, 20118. RECOMMENDED ONE YEAR MARKETING OBJECTIVES AND STRATEGIESA) Target Marketi) Objectives and Rationale ● To expand the target market of business professionals. • Based on our research, Saucy Grill’s main target market is business professionals ages 25-35, therefore, Saucy Grill should maintain this target market. We believe this target market should be expanded to include business professionals aged 36-60 ● To increase the target market of couples ages 25-35. • Services for evenings and weekends should be maintained as the secondary target market. This is comprised of couples ages 25-35 with middle-high incomes, as they favor these times of the week. ● To increase awareness of catering services with existing customers. • A large portion of Saucy Grills customers are business professionals, they should increase awareness of their catering services to this target market.ii) Strategies and Rationale ● Increase local advertising in newspapers and via social media. • Traditional and non-traditional advertising should be used more often to increase awareness of the restaurant across the GTA. Social media is a great way to connect to Saucy Grill’s target market for specials and promotions in the restaurant. ● Make use of team and event sponsorships in the surrounding area. • Sponsoring various teams and events in the neighborhood is a great way to get your company name out there, improve your brand image and create goodwill within the community. Page 50 of 90
  51. 51. Saucy Grill Marketing Plan November 7, 2011B) Positioningi) Objectives and Rationale ● To maintain Saucy Grill’s positioning as a fine dining restaurant that emphasizes fresh ingredients. • Focusing on providing fresh in house meals will help differentiate Saucy Grill from its larger chain competitors. ● To emphasize more on catering services to existing and potential clients. • Emphasizing catering services to current customers will help generate buzz, though word of mouth attracting more customers and potential new clients who would be interested in catering services.ii) Strategies and Rationale ● Make more use of locally grown food. • Buying local produce provides many benefits not only to the environment but also to Saucy Grill and its customers. Saucy Grill can use www.greenbeltfresh.ca which is a website where one can find local produce in the community. By being a supporter of local food produce, consumers will feel good about buying product that is supporting our local food industries. ● Communicate Saucy Grill’s catering services to existing and potential customers via word of mouth, social media and other traditional advertising methods Saucy Grill currently uses and should increase using. • Communicating the other services Saucy Grill offers will help increase overall revenue annually and will also differentiate them from other competitors, because of its unique selling proposition.C) Producti) Objectives and Rationale ● To continue focusing on fresh ingredients and in house specials. • Currently, Saucy Grill provides fresh in house meals and by continuing to provide freshly prepared meals in the restaurant, Saucy Grill will have increased customer retention and potentially gain new customers via word of mouth. Page 51 of 90
  52. 52. Saucy Grill Marketing Plan November 7, 2011 ● To continue updating menu seasonally. • Items that are not so popular on the menu should continue to be replaced or revised frequently to meet and exceed customer expectations, so customers will continue coming back and potential new customers can be gained.ii) Strategies and Rationale ● Use local produce that are in season. • Local grown foods are fresher and typically of better quality, therefore, Saucy Grill should continue to use local produce to exceed customer expectations and increase customer retention. ● Provide food samples to customers at various community events. • This will improve Saucy Grill’s image in the community, by creating goodwill and will also allow potential customers to try various products, enticing consumers to come into their restaurant.D) Pricingi) Objectives and Rationale ● To maintain a competitive pricing strategy with direct competitors on similar items, and charging premiums for specialty dishes not available at competitors restaurants. • Most fine dining restaurants have menu items that are rather similar to one another, with little variation to the food itself; while each restaurant will have dishes that are only house specials not easily copied by the competition. • Pricing should be competitive on items that are available at competing restaurants, as to not deter guests for a higher pricing. • Pricing should be above average on specialty dishes, since there are no similar benchmarks set by competitors for customers to reference. Page 52 of 90
  53. 53. Saucy Grill Marketing Plan November 7, 2011ii) Strategies and Rationale ● Have semi-annual reviews of competitors pricing strategies. • By reviewing the pricing structure of competitors semi-annually, which coincides with Saucy Grill’s menu change, they will be able to address potential issues and react based on changes in the market. ● Maintain or adjust the pricing strategy being used by Saucy Grill semi- annually. • After reviewing and analyzing the pricing of the direct competitors in the area, Saucy Grill must address the changes in the market. • If competitors are introducing products similar to Saucy Grill, prices should be dropped to maintain a competitive edge. • Dishes that are still unique and have no close substitutes, could maintain a higher pricing strategy.E) Distributioni) Objectives and Rationale ● To increase the distribution methods currently used at Saucy Grill to give customers more availability to their products. • Increasing the number of ways that customers can interact and obtain fine dining foods from Saucy Grill, will allow the business to see better growth for the upcoming fiscal year.ii) Strategies and Rationale ● Maintain traditional distribution methods currently being used (Dining Room and Patio). • Ensure traditional ways of distributing the product, such as walk-ins is not affected with the introduction of the new distribution strategies. ● Have an online table reservation option for dine-in. • This will allow customers to make a reservation for an important business meeting or a night out with the client easier, without having to call or visit the restaurant to reserve space. Page 53 of 90
  54. 54. Saucy Grill Marketing Plan November 7, 2011 • Giving customers this new option of reservation booking, will allow them to choose from multiple methods of booking, enhancing the customers experience with Saucy Grill. ● Introduce online catering requests for various events. • By allowing customers to request an event to be catered via an online form, it will give consumers another way to interact with the business. • When following up with requests (via phone or email), this will help establish or improve upon Saucy Grill’s business to customer relationships.F) Sellingi) Objectives and Rationale ● To increase the sales of products and services offered to customers by 15% in 2012. • By increasing the sales of the products and services that Saucy Grill offers theirs customers, they will be more likely to reach their sales goal of a 15% increase. ● To create/expand upon unique product offerings, (not available at competitors) and to increase the sales of these one of a kind products. • Expanding and introducing unique products will help differentiate Saucy Grill from its competitors, which is a valuable selling feature in a tough market.ii) Strategies and Rationale ● To increase traffic during the lunch hours (11am - 3pm), by using lunch specials. • By increasing the sales volume in “off peak” hours, it will help to drive sales up to the proposed sales target. ● To use up-selling tactics on unique product offerings. • Using up-selling tactics will allow Saucy Grill to introduce clientele to new and unique products that they currently offer, immediately drawing attention to them. • Since these products are unique, higher margins can be expected from these items helping Saucy Grill reach their sales goal. Page 54 of 90

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