Don Carlos Marketing Project

Don Carlos Marketing Project

Evelyn Fnu

Devry University

Carolyn Read

Contents

TOC o “1-3” h z u HYPERLINK l “_Toc405601054″Executive Summary PAGEREF _Toc405601054 h 4

HYPERLINK l “_Toc405601055″Company Description PAGEREF _Toc405601055 h 4

HYPERLINK l “_Toc405601056″Strategic Focus PAGEREF _Toc405601056 h 5

HYPERLINK l “_Toc405601057″Mission and Vision Statements PAGEREF _Toc405601057 h 5

HYPERLINK l “_Toc405601058″Goals PAGEREF _Toc405601058 h 6

HYPERLINK l “_Toc405601059″Core Competency and Sustainable Competitive Advantage PAGEREF _Toc405601059 h 6

HYPERLINK l “_Toc405601060″Situation Analysis PAGEREF _Toc405601060 h 6

HYPERLINK l “_Toc405601061″Swot Analysis PAGEREF _Toc405601061 h 6

HYPERLINK l “_Toc405601062″Industry analysis PAGEREF _Toc405601062 h 10

HYPERLINK l “_Toc405601063″Competitor Analysis PAGEREF _Toc405601063 h 10

HYPERLINK l “_Toc405601064″Company Analysis PAGEREF _Toc405601064 h 11

HYPERLINK l “_Toc405601065″Customer Analysis PAGEREF _Toc405601065 h 12

HYPERLINK l “_Toc405601066″Marketing Product Focus PAGEREF _Toc405601066 h 12

HYPERLINK l “_Toc405601067″Marketing and Product Objectives PAGEREF _Toc405601067 h 13

HYPERLINK l “_Toc405601068″Target Markets PAGEREF _Toc405601068 h 13

HYPERLINK l “_Toc405601069″Marketing Program PAGEREF _Toc405601069 h 14

HYPERLINK l “_Toc405601070″Product Strategy PAGEREF _Toc405601070 h 14

HYPERLINK l “_Toc405601071″Price Strategy PAGEREF _Toc405601071 h 14

HYPERLINK l “_Toc405601072″Promotion Strategy PAGEREF _Toc405601072 h 15

HYPERLINK l “_Toc405601073″Place (Distribution) Strategy PAGEREF _Toc405601073 h 15

HYPERLINK l “_Toc405601074″Financial Data and Projections PAGEREF _Toc405601074 h 15

HYPERLINK l “_Toc405601075″Organizational Structure PAGEREF _Toc405601075 h 16

HYPERLINK l “_Toc405601076″Implementation PAGEREF _Toc405601076 h 16

HYPERLINK l “_Toc405601077″Evaluation and Control PAGEREF _Toc405601077 h 16

HYPERLINK l “_Toc405601078″References PAGEREF _Toc405601078 h 18

Executive SummaryDon Carlos Restaurant is an establishment that is moderate in size and specializes in providing its clients with services and food that is similar to one they consume at home. The major products that the restaurant offers comprise of wraps, classic hamburgers, generous salads, pot roast, steaks, roasted chicken and pork chops. The restaurant also aims to provide its clients with other specialized selections, which will mostly target menu for children.

The owners of the restaurant are Wright and Betty Jeff, and they both have more than 10 years’ experience in the catering and restaurant business. The owners of the enterprise will lease 2,500 square foot space, which will be situated in Miami’s central shopping center. This location had been previously leased to another tenant who removed most of the equipment, and thus meaning that most of it will need to be replaced. Moreover, the location will be fitted with additional makeover so as to increase the dining area’s size together with the table space (Lynn, 2009).

The projected sales target 1,200 clients every week and thus leading to approximately $15,000 or $780,000 annually. This amounts to about $312 for every square foot on all sales. Don Carlos Restaurant lies in a location where sales revenue of between $250 and $325 for every table is regarded as being a desirable investment. The anticipated costs of startup will be $300,000, of which the owners of the business will contribute $154,000, and the rest will be in the form of a bank loan.

Company DescriptionThe snack (read restaurant) industry is one of the largest there is the world over. As such, Don Carlos is a company that will have to “swim” with other “big fishes” in the Miami market. As a result, marketing is of great importance; strategies that stand out. Having operated for about a year, there have certainly been lessons to learn. In this crowded industry, there is the need to adopt something that is capable of standing out from the rest; this serves as the greatest marketing strategy ever. This could take the form of reduced prices or even the provision of delivery services.

Given the possibility of franchising, the company is bound to expand in leaps and bounds. This comes with a dire need for a sound system, more so the marketing one. Our initial strategy was to position our restaurants within malls due to the large human traffic therein. This was then to be expanded to other parts of Miami and its surroundings. In a mall, making one’s shop attractive is a requisite for increased business performance. This naturally calls for rebranding, in a way that makes our brand sound and look better (Baldwin, 2009).

Strategic FocusMiami has a large population; one that adores snacks! This will essentially serve as the market for the products Don Carlos produces. The state of Miami also has a number of malls. As had been mentioned, this is where most of the shops will be located. With amazing products and offers for shoppers visiting the mall, the company will certainly make a considerable amount of sales. Additionally, Miami is one of the most visited states in America (Baldwin, 2009). Visitors to the city will also be our targets; it is always great to have individuals looking forward to visiting just to try our food!

Having been established in time and era when everything has been digitized, Don Carlos is quite strategically placed. Through the use of the company’s site, customers are capable of interacting efficiently with the staff. This will heighten the level of service since they can then make suggestions and even give their complaints. Such an interaction has been proven to be a great strategy in attracting and maintaining clients. Moreover, social sites such as Twitter and Facebook, to mention but a few, are also amazing platforms to establish a rapport with one’s customers.

Mission and Vision Statements

The mission for Don Carlos restaurant will be to deliver our shoppers with an eating experience that is both relaxing and unique. The company anticipates realizing this initiative by adopting a menu that allows our clients to enjoy quantity meals at prices that are reasonable. Moreover, we anticipate addressing the needs of our clients by treating them with respect (Lynn, 2009).

GoalsThe goals of our establishment will be as follows:

To emerge as the leading restaurant that offers home type food in Miami.

To adopt exemplary services that will allow us to offer our clients with quality meals, and affordable prices.

Core Competency and Sustainable Competitive Advantage

We have sufficient experience in terms of addressing the needs of our clients sufficiently. Moreover, the manager of the restaurant has more than 6 years’ experience in the catering and restaurant industry. Additionally, our menus are simple, healthy, fast as well as easy to make. With these traits, we are capable of generating sufficient competitive advantage in the market.

Situation AnalysisSwot Analysis

INTERNAL

Factors Strengths Weaknesses

Management Three of the major shareholders are well-educated. This will go a long way in ensuring that the right managerial decisions are made.

Their experience is also instrumental towards the growth of the company. This also justifies their passion towards the industry. Different individuals will most certainly have diverse thoughts on how to achieve a particular goal. It becomes really difficult having to find a common ground.

This could cost the company in a lot of ways. For instance, with a lot of time being taken to make a single decision, many things are likely to stall. As a “young” company, time is really of the essence.

Offerings Franchising is a very effective method to increase the equity (and profits) of any company. With the possibility of such offers, the future of Don Carlos never looked brighter. Such offers also elevate the confidence the public has towards the said company. With offers such as franchises, a company could lose its uniqueness. Franchising has sometimes led to major losses; even from previously high-performing companies. The management of the franchises could fail to have the required skills hence lead the business down the drain.

Marketing I trust my capabilities in as far as marketing is concerned. With the realization of how crowded this industry is, a lot has to be done. Nevertheless, with the vast experience our marketing staff has, we will definitely make it big. This is an industry with quite a number of large players. Some spend billions of dollars in advertisement given the idea that they have operated in the industry for long. This amount of money spent in marketing is one we cannot quite afford; given we have only been operating for around a year.

Personnel We have managed to employ some of the best personnel in the industry. We believe that ours is a labor intensive company and that we cannot compromise the labor factor at any cost. As such, all our departments are comprised of nothing but the best. Our personnel may not always be as dedicated as like we anticipate. They may make decisions that could prove to be detrimental to the company. Most often than not, such mistakes are identified after the harm is done.

Finance Being a young company, most of the profits are ploughed back into the company. This essentially works to improve the company’s equity. Also, franchising is also an effective means of raising more capital. Having to establish a new company in a flooded industry can be heart wrecking, to say the least. Comparatively speaking, Don Carlos may not have as much finances to operate as largely as its counterparts.

Research & Development (R&D) The R&D department is one Don Carlos has heavily invested in. For an enterprise to remain dominant in any particular industry, constant research should be done. There are aspects of business that cannot be revealed immediately through research. Sometimes, losses are made to teach lessons. Research may not reveal every loophole hence additional strategies are required.

EXTERNAL

Factors Opportunities Threats

Consumer/Social There is a large market in Miami. Most of the people who visit shopping malls like fast foods. As such, the strategic location of the Don Carlos restaurant is bound to attract quite a number of customers. The restaurant industry is characterized by many players in Miami. These are firms that have been in the market longer than Don Carlos. As such, they are better placed in the market in a lot of ways.

Technological As a company, Don Carlos appreciates the impact that technology has had in the modern world. This has led the owners to invest very heavily in technology. Technology requires constant upgrading. Principally, this means more funds. Given the fact that the company is quite young, it could be quite a task having to reinvest into technology.

Competitive As the marketing team, we have managed to come up with plans that set us apart from the crowd. This will play a vital role in terms of ensuring that we compete effectively with the rest.

Most of our competitors are better placed in many ways. Most of them have been operating for a long period; way longer than ours. This gives them an in-depth understanding of the Miami market. Most of them are also highly capable of spending tons of cash towards a single project.

Legal/Regulatory Don Carlos is a legal company with all the requirements soundly in place. There are a lot of regulations in play the food industry. We have ensured we meet all of them not only to avoid trouble with the law but also to ensure our customers are safe. As each day passes, various laws and regulations are included into the existing list. This essentially means that the management needs to constantly keep an eye on any addition; a factor that requires extra finances.

Industry analysis

The industry where Don Carlos Restaurant is situated engages in the provision of food and services to seated clients. It emphasizes on waitress/waiter services, whereby the clients pay after they eat. These establishments tend to offer food to their client, while also offering them with take away services, sell alcoholic beverages or provide them with live entertainment.

The forces that drive the demand in this industry comprise of personal income, tastes of the consumers and demographics. The profitability that the unique companies realize differs. This depends on how efficiently the companies perform their operations, and the marketing strategies that they adopt. Most large companies witness advantages, especially with respect to finance, marketing and purchasing. Smaller companies on the other hand realize increased sales for providing their clients with quality food (Lynn, 2009).

Wages have a significant impact on the costs of operation. The prevalence of minimum wage in Miami and other states forces most companies to keep their costs of operation as low as possible. For instance, some states regard the trips that the employees make as being part of their wages. In these states, the policy has a significant impact on the minimum wage based on the perspective of the employers (Lynn, 2009).

Competitor AnalysisThe restaurant and catering industry is highly competitive in Miami. The major competitors for Don Carlos Restaurant are as follows:

Applebee’s: This restaurant comprises of a chain of stores that aim at charging standard fare to clients. The worth of food that the diner avails is average, and the prices for the products that the restaurant charges range from $6.00 to $20.

Herdarys Restaurant: This restaurant specializes in offering family services. The restaurant operates as a sole proprietorship, and it capable of generating approximately $1.8 million every year. It charges higher prices, which range from $8.00 to $20 per client.

Barbeque Ben’s: This restaurant operates as a sole-proprietorship, and mostly emphasizes in providing barbeque products. Even through the food that this restaurant offers fails to compete effectively with Don Carlos; it targets families that reside in the same neighborhood. The prices that are charged to the clients range from $8.99 to $12.

Company Analysis

The owner for Don Carlos will be Wright Jeff. He sufficient experience working in a regional restaurant chain, where he has served as an Assistant Manager as well as General Manager. The restaurant will operate as a sole proprietorship, whereby Wright Jeff will be the one to govern its entire operations, and will be registered with the State of Miami. The anticipated startup cost is $300,000, whereby the major operations will comprise of equipment and furniture, which will amount to $100,000. The location of the restaurant will demand for some renovation, which will cost approximately $40,000. The estimated time for renovation is about 25 days. The owners of the enterprise will contribute $154,000, and the source of their funds will come from marketable securities and liquid assets, which will come from prevailing catering enterprise.

Don Carlos restaurant will be situated on a 2,500 square foot space at the central shopping center in Miami. Based on data from US Census Report in 2012, the central shopping region in the state of Miami has a population of approximately 100,000. The average household at Miami is $40,000, and the major employers comprise of Bank of America and Union Pacific.

Customer Analysis

The projected sales target 1,200 clients every week and thus leading to approximately $15,000 or $780,000 annually. This amounts to about $312 for every square foot on all sales. Don Carlos Restaurant lies in a location where sales revenue of between $250 and $325 for every table is regarded as being a desirable investment. The layout with which Don Carlos has been designed is characterized by a line for facilitating in serving, a kitchen and a dining room. It has been planned in a style that can facilitate for flexibility as well as accommodate the customer traffic, especially during peak hours and periods. Also, the owners of Don Carlos has a huge client base, especially through blogs and their catering enterprise, who will be contacted first during the grand opening of the restaurant (Hiduke & Ryan, 2013).

Marketing Product FocusAs has been mentioned above, the Miami market is one that has been revealed to be receptive of products from Don Carlos. For any product to sell, focus must been made to the target market. Based on prevailing research, Miami is a great location to be used as a pilot market. With the reception that has been achieved, it is true that this is a product that is bound to perform well in a variety of states. Marketing has been shown to be a major determinant of the extent to which the product has been received. Owing to this, a lot more marketing has to be done (Baldwin, 2009).

Conclusively, the highly competitive nature of the snack industry requires that Don Carlos invests much more resources in marketing. With this done, the comparatively young company can then compete effectively with its more experienced counterparts. The future however, seems to be very bright for this company especially since it has gladly embraced technology.

Marketing and Product Objectives

Don Carlos realizes that in order for it to succeed in the market, then one of the major initiatives that it needs to embark on it offer its clients with amazing food as well as provide services that are friendly to them. To allow them build customer traffic, the company will utilize a marketing plan. It will embark on initiatives that will allow them to win a large number of clients by remaining proactive while marketing their products. Don Carlos will also implement efforts that will allow them to stay in track in the case of the trends that take place in the market (Hiduke & Ryan, 2013).

Target MarketsThe location of Don Carlos Restaurant is situated in a busy location. It is located in a route that people follow while heading home. In this case, most families will be encouraged to stop at the restaurant before going home, where they can enjoy quality cooked food (Hiduke & Ryan, 2013). The location of the restaurant is popular for offering fast foods, and since the closest competitor is situated about 20 minutes’ drive, Don Carlos will serve as an appealing restaurant for most customers going home after work.

Positioning

Most consumers of fast food believe that the meals that they consume while at home are much healthier while compared to the one that they consumer at home. Don Carlos will position itself to serve as the foremost restaurant that prepares food for its clients to make them feel as if they are consuming food from their homes. The restaurant will also charge prices, which will be rhymed with the ones that clients experience while preparing food at home. Don Carlos will be positioned to serve as the foremost restaurant that provides food to its consumers like they do at home (Hiduke & Ryan, 2013).

Marketing ProgramProduct StrategyThe restaurant applies the value approach strategy to impact on its margins of profit (Oswald, 2012). The value approach involves the sale of a select range of food products at reduced prices to attract groups and families. The integration of the strategy into the restaurant objectives targets at the creation of a core customer base. The combination of meals with side dishes and drinks to create a combo meal and variation to meet the consumer tastes appeals to the consumers (Oswald, 2012). Don Carlos Restaurant also associates their products with specified themes to enhance promotion (Oswald, 2012). As such, cross promotion between the restaurant and amusement parks have been set up.

A frequency program has been established to reward the consumers for the number of purchases they make on a project.

Price Strategy

Breakeven Analysis

The total fixed costs that are linked with Don Carlos Restaurant are $590,200, and they are a representation of the overall annual expenses, the variable costs for every meal are anticipated to be $4.5. With the assumption that the average price for a meal is $10.5, then the break even revenue will be as follows: Gross Margin= Sales price – variable cost = $10.5 – $4.5 = $6. Gross margin (percentage) = $6/$10.5 = 0.57 = 57 percent. This means that for every packet of snack that Don Carlos sells, 57 percent will be the gross profit.

With respect to the annual break even revenue, the total fixed costs for operating Don Carlos is $590,200. In this case, the break even revenue will be as follows: Break even revenue = $590,200/57percent = $1,035,438

Promotion Strategy

Don Carlos already has a database of prevailing clients, and will thus rely on the word of mouth tactic to attract a large number of clients, who will then allow the business to grow. The company will also embark on direct mail style, which will allow them to contact potential clients directly. Moreover, Don Carlos aims at linking with the nearby chamber of commerce and other networking services that will help it make its grand opening process to emerge successful (Lynn, 2009).

Place (Distribution) Strategy

Don Carlos Restaurant will be situated at a region that has huge traffic for people who love to consume food that has been cooked like in the case of home cooking. It will be situated at a place where most people visit especially while going home to allow them access food easily, especially while going home, or in case they need to be delivered food in their place of work.

Financial Data and ProjectionsThe following tables illustrate the financial data for Don Carlos

Projected Profit and Loss

Projected Cash Flow

Organizational StructureDon Carlos Restaurant anticipates hiring about 17 employees. Wright and Betty Jeff are the ones who will be endowed with the role of hiring each candidate. The two have developed a comprehensive interview process, which will allow them to select ideal candidates for every process. Wright will serve as the owner of the enterprise while Jeff will be the kitchen manager. Both Wright and Betty will initially fill most of the management gaps in the enterprise, before they manage to hire the general manager, sales director, and kitchen manager eventually (Hiduke & Ryan, 2013).

ImplementationTo facilitate in the implementation of the business plan, Don Carlos will undertake marketing campaigns by contacting the clients that they have in their databases. They will also adopt a mailing program, whose role will be to help them implement the campaign. They will also use loyalty programs to allow them notify their clients regarding the highly rated menus and catering services (Lynn, 2009).

Evaluation and ControlThe plan will be evaluated by trusted stakeholders in the enterprise. It will be assessed for any incidences of error, and appropriate corrections made before the plan is enacted. This process is essential in terms of refraining an enterprise from collapsing, or be subjected to errors that would negatively impact on the overall performance of the enterprise.

References

Baldwin, C. (2009). Sustainability in the food industry. Ames, Iowa: Wiley-Blackwell/IFT Press.

Hiduke, G., & Ryan, J. (2013). Small Business: An Entrepreneur’s Business Plan. New York: Cengage Learning.

Lynn, J. (2009). Start Your Own Restaurant Business and More: Pizzeria, Coffeehouse, Deli, Bakery, Catering Business. New York: Entrepreneur Press.

Oswald, L. R. (2012). Marketing semiotics: Signs, strategies, and brand value. Oxford: Oxford University Press.