Running Heading: El’s Hell fire Kitchen Elizabeth Maidment 1
El’s Hell fire Kitchen Elizabeth Maidment 9
Marketing Plan
Student: Elizabeth Maidment
Professor: Dr. Karen Mountain
Course: Marketing Management (MKT 500)
Date: Saturday, July 19, 2014
Company Introduction
Welcome to EL’s Hell Fire Kitchen! We are a restaurant in Murfreesboro, TN that is dedicated to all things hot and spicy. We like to refer to our cooking as “Melting your Face.” We specialize in a product called “Hot Chicken.” This is a Nashville specialty that combines cyanine pepper and some secret ingredients. We also offer several unique menu items (all with a kick) and some hard to find canned or pickled items for our local chili heads.
EL’s Hell Fire Chicken wasn’t created for the faint of heart or faint of tongue! We have a captured audience near to our location from the Middle Tennessee State University. Our target market segment would be 20 – 24 year olds looking for something spicy to prove their culinary chops. We run monthly contests (with prizes) to entice the crowds and post the results on our Facebook page. We have seen a 20% increase in sales over a 5 year period and are able increase our market shares for our shareholders by 3%.
We are a family owned and run restaurant located at 536 N Thompson Lane in beautiful Murfreesboro, Tennessee. We specialize in extremely hot and spicy food. We currently employ 2 full-time and 3 part-time employees.
Elizabeth Maidment, owner and operator, will be in charge of all functions of the restaurant. This will include cooking, cleaning, advertizing, promotions and vision of the restaurant. She manages the daily operations and serves as head cook and financial advisor. She is in charge of marketing events and promotional contests. Elizabeth writes a daily tweet on Twitter about what the menu item of the day will be and keep up the company’s Facebook page. Rodney Rounds is the business manager. His duties include hiring, promoting and managing the staff. He is in charge of scheduling and staffing the restaurant and also is in charge of inventory. There are 3 part-time employees that assist with customer requests, cleaning and prepping food.
Detailed Environmental Analysis
Competitive Forces
Murfreesboro has an estimated 450 restaurants to choose from. There are no restaurants dedicated only to hot and spicy food. As a college town, there are several hot wing restaurants. Some of the national chains are Buffalo Wild Wings, Wing Zone and Hooters. There are also several local restaurants that offer hot wings such as Slick Pig BBQ, Kirkenburts BBQ and 3 Brothers Brew house.
Our major competitor is Buffalo Wild Wings. They are a restaurant dedicated to wings, beer and sports. Started in 1982, they currently have 14 different flavors of hot wings that are spicy. (Wings, 2014) They offer several other menu items that you can put the hot and spicy sauce on, but the flavors do not change and t.
Running Heading El’s Hell fire Kitchen Elizabeth Maidment 1.docx
1. Running Heading: El’s Hell fire Kitchen Elizabeth Maidment 1
El’s Hell fire Kitchen Elizabeth Maidment 9
Marketing Plan
2. Student: Elizabeth Maidment
Professor: Dr. Karen Mountain
Course: Marketing Management (MKT 500)
Date: Saturday, July 19, 2014
Company Introduction
Welcome to EL’s Hell Fire Kitchen! We are a restaurant in
Murfreesboro, TN that is dedicated to all things hot and spicy.
We like to refer to our cooking as “Melting your Face.” We
specialize in a product called “Hot Chicken.” This is a
Nashville specialty that combines cyanine pepper and some
secret ingredients. We also offer several unique menu items (all
with a kick) and some hard to find canned or pickled items for
our local chili heads.
EL’s Hell Fire Chicken wasn’t created for the faint of heart or
faint of tongue! We have a captured audience near to our
location from the Middle Tennessee State University. Our target
market segment would be 20 – 24 year olds looking for
something spicy to prove their culinary chops. We run monthly
contests (with prizes) to entice the crowds and post the results
on our Facebook page. We have seen a 20% increase in sales
over a 5 year period and are able increase our market shares for
our shareholders by 3%.
We are a family owned and run restaurant located at 536 N
Thompson Lane in beautiful Murfreesboro, Tennessee. We
specialize in extremely hot and spicy food. We currently employ
2 full-time and 3 part-time employees.
Elizabeth Maidment, owner and operator, will be in charge of
all functions of the restaurant. This will include cooking,
cleaning, advertizing, promotions and vision of the restaurant.
She manages the daily operations and serves as head cook and
financial advisor. She is in charge of marketing events and
promotional contests. Elizabeth writes a daily tweet on Twitter
about what the menu item of the day will be and keep up the
company’s Facebook page. Rodney Rounds is the business
3. manager. His duties include hiring, promoting and managing the
staff. He is in charge of scheduling and staffing the restaurant
and also is in charge of inventory. There are 3 part-time
employees that assist with customer requests, cleaning and
prepping food.
Detailed Environmental Analysis
Competitive Forces
Murfreesboro has an estimated 450 restaurants to choose from.
There are no restaurants dedicated only to hot and spicy food.
As a college town, there are several hot wing restaurants. Some
of the national chains are Buffalo Wild Wings, Wing Zone and
Hooters. There are also several local restaurants that offer hot
wings such as Slick Pig BBQ, Kirkenburts BBQ and 3 Brothers
Brew house.
Our major competitor is Buffalo Wild Wings. They are a
restaurant dedicated to wings, beer and sports. Started in 1982,
they currently have 14 different flavors of hot wings that are
spicy. (Wings, 2014) They offer several other menu items that
you can put the hot and spicy sauce on, but the flavors do not
change and the items are all protein based. We differentiate our
business by offering several different menu items that are hot
and spicy such as spicy fried mac and cheese balls, spicy hot
dogs and sausages and spicy chocolate ice cream.
Economic Forces
The number of food and beverage establishments declined in the
United States from 149,000 – 147,000 from 2002 – 2007
according to the Statistical Abstract of the United States Table
756, P.499.(States) It is expensive to own and run any business.
With a business that has perishable items, such as food it is
difficult to predict your inventory.
According to American Fact Finder, Murfreesboro Tennessee’s
4. median income is $61,304. Our target market of 20 – 24 year
olds make up 7.5% of the population. (Bureau) According to the
2010 census, the population of Murfreesboro is 109,172
residents. That an increase from the 2000 census from 68,816.
The unemployment rate is 8.6%. Of course if your customers
don’t have a job or an income they won’t be very good
customers.
Political Forces
Politics in Murfreesboro are at a high pitch. We are currently in
an election year and many candidates are attempting to
influence the vote. One of the trends that we see is politicians
giving interviews at local restaurants. This can be a vital boost
to the establishment if the politician is in good standing. But if
you are on the other side of the camp from this politician as a
customer you may not want to contribute to that establishment’s
success.
Legal and Regulatory Forces
There are several licenses, permits, fees and inspections that
must be maintained to establish a restaurant in Murfressboro,
TN. One thing that is unique to the town is its historical
buildings. This plays a role in where you are able to set up a
restaurant and what types of food you are able to serve. Selling
alcohol is still outlawed in some counties in Tennessee. It is
important to get all the information about where and what you
are legal to sell before attempting to set up any type of
business.
Technology Forces
Social Media can play a vital role in the success or failure of a
restaurant, especially if it is not a major chain restaurant. There
are many websites that assist consumers by having other
consumers write reviews. These are websites such as Trip
5. Advisor, Yelp, Zagat, Urban spoon and Open Table. When a
customer gives you a great review, it is free advertising for the
restaurant. But when you get a bad review, this is the negative
publicity that no restaurant wants or needs. Customers are fickle
and you can’t please everyone all the time. In a case study done
by the First Monday Journal in April of 2014, on Yelp.com
alone there were almost 900,000 reviews from 6,548
restaurants. (Jurasky, Chahuneau, Routledge, & Smith, 2014)
Technology can also be used as a marketing tool. You can sign
up for a free account on Facebook, Twitter, Pinterest and My
Space. These are websites where you can post menu items and
have interactions with customers even if they are not directly in
your store. A service that you can provide customers is the use
of wi-fi. This is another way to get customers in the door.
Social Cultural Forces
In order to have a successful business, you must know your
audience. We are an ever changing culture in the United States.
It is important to be aware and sensitive to other cultures with
who we share our society. Using terminology that does not
offend your customers can be difficult if you are not aware of
the culture. There are other segments of the population to
consider as well. Something that appeals to one age group may
not appeal to another or to male verses a female. In the 37130
zip code there are 2 target markets that are predominate. Based
on Nielson’s PRIZM software, the lifestyles of these markets
are described below:
Lower Mid Middle Age w/o Kids
Affordable housing, abundant entry-level jobs, and a thriving
singles scene--all have given rise to the Boomtown Singles
segment in fast-growing satellite cities. Single and working-
class, these residents pursue active lifestyles amid sprawling
apartment complexes, bars, convenience stores, and
6. laundromats.
Upper Mid Middle Age w/o Kids
Widely scattered across the nation's suburbs, the residents of
Home Sweet Home tend to be upper-middle-class married
couples living in mid-sized homes without children. The adults
in the segment, mostly under 55, have gone to college and hold
professional and white-collar jobs. With their upper-middle-
class incomes and small families, these folks have fashioned
comfortable lifestyles, filling their homes with exercise
equipment, TV sets, and pets.
Target Market 4Ps, 5Cs and STP
The overall population of Murfreesboro is depicted by the table
below from the American Factfinder. However this is an
unsegmented look at the population. To be successful we have
paired down this population to 2 demographic groups. Our
primary target market is the college aged segment.
Population Estimates by Age 2012
Murfreesboro city, Tennessee
Estimate
Percent
SEX AND AGE
Total population
109,172
109,172
Male
53,639
49.1%
7. Female
55,533
50.9%
Under 5 years
7,468
6.8%
5 to 9 years
7,034
6.4%
10 to 14 years
6,568
6.0%
15 to 19 years
8,657
7.9%
20 to 24 years
14,665
13.4%
25 to 34 years
19,606
18.0%
35 to 44 years
14,143
13.0%
45 to 54 years
12,436
11.4%
55 to 59 years
4,571
4.2%
60 to 64 years
4,463
4.1%
8. 65 to 74 years
5,680
5.2%
75 to 84 years
2,580
2.4%
85 years and over
1,301
1.2%
Median age (years)
29.3
(X)
RACE
One race
38,606
96.8%
White
32,529
81.5%
Black or African American
4,662
11.7%
American Indian and Alaska Native
22
0.1%
Asian
1,098
2.8%
Hispanic or Latino (of any race)
39,889
39,889
Source: Factfinder2.census.gov (Bureau)
,
9. This target market is congruent with the primary residents of
the zip code for 536 N Thompson Lane, our location. This is a
strip mall that is located close to the busy corner of Medical
Center Parkway and Thompson Lane. This is the only place in
Murfreesboro where you can find some of our unique products.
EL’s Hell Fire Kitchen targeted customers are population
segments of males and females from 20 – 24 years old.
Murfreesboro Tennessee Population Information in Zip Code
37130
The price is important for this segment. College students don’t
generally have a lot of money and everything on our menu is
under $20.00 with most items averaging around $5.00. We also
offer monthly contests and promotions to encourage targeted
customers to come to our restaurant. Come check out our “Wall
of Flame!” Our most popular contest is the “Fried Ghost Pepper
Challenge!” This is targeted to very specific customers who
want to “Melt their Face.” We actually have them sign a waiver
before they are able to compete in the challenge.
Murfreesboro Tennessee Income Information in Zip Code 37130
2014 Nielsen PRIZM Segmentation System, The Nielsen
Company, MyBestSegments retrieved 08/14/2014
https://segmentationsolutions.nielsen.com/mybestsegments/.
They are Middle Tennessee State University students. Their
attitude towards the product is a challenge! Because they are at
an impressionable age, they may want to impress their peers or
a potential mate. They are also interested in fame and glory.
10. Having their picture posted in a public place is appealing to
them. They are cash conscious and have several choices on our
vast menu. Our company is known for having the hottest food in
town. What we do well is combine heat with flavor. Not all
companies can be successful at this. If we are successful in this
location, we would like to start expanding to other locations,
preferably in towns with universities or high schools. The
context of the environment is a stable economy. Murfreesboro is
growing! We are using Facebook and Twitter to get the word
out about our restaurant. Many of our customers have posted 5-
star reviews on websites such as Yelp.com and
TripAdvisor.com. We are collaborators with different food
distribution companies such as Sysco, Royal foods and GFS
stores. Even though there are over 450 restaurants to choose
from in the Murfreesboro area, our competitors don’t have the
spicy southern style that makes our restaurant unique.
Kirkenburt’s BBQ won “Best Buffalo Wings in Murfreesboro”
in 2013. We plan on taking that title away from them this year
by positioning the quality of our products. We also have the
largest selection of hot and spicy products than any other
restaurant in Murfreesboro.
Secondary Market 4Ps, 5Cs and STP
The secondary market that we are targeting is made up of
several segments. These customers would be on the fringe of
our target market. Their demographics would be an older part of
the population or a very young part of the population. Perhaps
some of them have medical issues that wouldn’t allow them to
eat things that are hot and spicy. They could also be too young
to understand the concept of eating hot and spicy foods. We
have products that they would be able to eat with very little
spice in them such as fried chicken with just a little kick. They
would also enjoy our low prices on these menu items. We offer
a meal plan promotion for students and a frequent flyer card for
non-students. These customers would be few and far between,
11. so it would not be very economically wise for the company to
put much money into marketing for them.
Murfreesboro Tennessee Household Information in Zip Code
37130
2014 Nielsen PRIZM Segmentation System, The Nielsen
Company, MyBestSegments retrieved 08/14/2014
https://segmentationsolutions.nielsen.com/mybestsegments/.
Short Term and Long Term Goals
Our short term goals are as follows:
· We would like to be the first restaurant that our targeted
customer market thinks of when it comes to value and late night
food. To do this, we will stay open until 2 am Sunday through
Thursday and 4 am Friday and Saturday.
· We would like to have a televised “Ghost Pepper Eating”
contest to promote our company by June 2015. We will partner
with the local television news station to create a segment on the
nightly news.
· We would like to collect email addresses of our customers and
create a mailing list. We will put a mailing list signup sheet at
the counter and on the website to do this.
· We will like to be featured on a Travel Channel or Food
Network show for hot and spicy food. We can do this by
encouraging our customer to contact these organizations and
rave about their experience.
We will measure our performance based off of the following
benchmarks:
· We would like to see our late night sales increase from 25% to
50% of revenue by the end of 2014. This can be accomplished
by increasing flyers to the student areas on the Middle
Tennessee State University campus.
· We would like to increase website visitors by 75% in our
target market by June 2015. We will partner with Google.com
and Ask.com to be the number one search item with the key
12. words “Murfreesboro, hot, food and spicy.”
· By June 2015 we would like to have an increase in menu
downloads from our website by 60%. We will partner with
Menus.com to be the number one search item with the key
words “Murfreesboro, hot, food and spicy.”
Our long term goals are as follows:
· By June of 2019 we would like to have 50% of the target
market eating in our restaurant instead of our competitors. This
can be accomplished by increasing our online presence with
more Twitter tweets and interactions with Facebook.
· During 2019 we would like to open a second location in an
additional college town. The location is to be named later
· We would like to have regular appearances on Food Network
shows, highlighting us as the premier spicy food locale.
· By 2019 we should be exploring co-branding opportunities for
bottled sauces and frozen foods for retail sale.
S.W.O.T Analysis
Strengths:
· We provide a unique dining experience for the adventurous
diner. We are the only restaurant in Murfreesboro dedicated to
spicy food.
· Our pricing structure is low. Menu items range from $20.00 to
$3.00 with most items averaging around $5.00.
· We are the only non fast food option that is open until 2 am
Sunday through Thursday and 4 am Friday and Saturday.
· We offer promotions and contests to get customers in the door
and utilize technology to promote these to our customers.
Weaknesses:
· We have only 5 employees. If anyone gets sick, it is hard to
cover the shift for that employee.
· We currently use an outdated system to take orders and keep
track of inventory.
· We have limited seating in the restaurant. There are 10 tables
and 4 booths for customer seating.
13. · Customers may not want to eat items that are hot and spicy.
We lose this part of the market based on our concept.
Opportunity:
· We have the opportunity to gain part of the health food market
by offering healthy choices and nutritional information on our
menus. Spicy food can increase your metabolism.
· We have the opportunity to gain another part of the market by
offering delivery options to our customers.
· We have the opportunity to increase our lunch sales by
offering lunch specials and catering options for businesses and
parties.
· We have the opportunity to increase traffic to our website by
offering incentives for multiple visits and downloads.
Threats:
· Competitors in our area are offering more hot and spicy
options on their menus. “Hot Chicken” is a Nashville Original
and very popular in the surrounding areas.
· New restaurants opening in the area are also a threat. There is
usually higher customer traffic to new restaurants in
Murfreesboro.
· Consistently rising prices on supplies for the restaurant may
result in an increase in our prices.
· Local and federal laws for minimum wages may also increase
and result in an increase in our prices.
References
Bureau, U. C. (n.d.). American Fact Finder. Retrieved 2013,
from United States Census Bureau:
http://factfinder2.census.gov/faces/tableservices/jsf/pages/produ
ctview.xhtml?pid=ACS_12_5YR_DP05
Jurasky, D., Chahuneau, V., Routledge, B. R., & Smith, N. A.
(2014). Narrative framing of consumer sentiment in online
restaurant reviews. Chicago: University of Illinois at Chicago .
Murfreesboro, TN - The Official Website-Statistics. (n.d.).
14. Retrieved from Murfreesboro, TN - The Official Website:
http://www.murfreesborotn.gov/index.aspx?nid=515
States, S. A. (n.d.). Statistical Abstract of the United States.
Retrieved from census.gov:
http://www.census.gov/prod/2011pubs/12statab/business.pdf
Wings, B. W. (2014). Buffalo Wild Wings Menu. Retrieved
from Buffalo Wild Wings Menu:
http://www.buffalowildwings.com/menu/wings/