Description
The final project in MBA 7600 is a marketing plan. This may be a marketing plan that I may request assistance throughout the course of the 7 week semester. Rather than try to imagine a new company or product out of thin air, it is most helpful to pick a publicly traded company (NYSE or NASDAQ) in which you are interested. You will then study this company through their annual reports and other available resources; analyze external environment and their strengths and weaknesses, identify a potential new market opportunity upon which the firm can act, and propose a plan of action for that opportunity. I want you to tell me three companies in which you would be interested in having the CMO role, and I will “hire” you for one of those jobs. In that way, I can insure that the class has a good mix of different types of industries, different sizes of companies, different types of products, etc. I advise AGAINST choosing firms like Apple, Google, Netflix and other multi-billion dollar corporations because they are generally too large to comprehend and analyze well in the short period we have. I find students usually do quite well with single business firms.
Please list three publicly traded companies along with their ticker symbol and in 100 words or less, why you are interested in each of them. If you feel especially strongly about one of the choices, label it as your #1.
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Explanation & Answer
Attached.
MARKETING PLAN
Your Name
Executive Summary
Opportunity
Life style change to adopt organic and healthy foods
Increasing Millennials (23 years-36 years) in the population
accounting for 20%.
Changing of life style to adopt eating in restaurants compared to
eating at home.
The plan will be to shift the current menu list and services
and include healthy foods at premium prices.
Document the total 5 year business improvement in
Sales- Set to grow by 25% annually
Market share- By year five we will have 5% of the market share.
Profit- they will increase by average 16% in years 4 and 5.
Situation Analysis
The Market
Market: Past, present, and future
Market size and growth rate –
$783 billion worth of market and the growth rate is at 25%
annually.
Millennial and families are the target market.
Changing lifestyles and need to adopt organic foods and
increasing demand for restaurant services.
The current market share is at 3%.
Major competitors
➢ Fast food restaurants such as McDonald’s, Wendy’s, Burger
King.
➢ Casual all services restaurants.
Situation Analysis
The Competition
➢
➢
➢
➢
key competitors
Daden, Bloomin, Brinker, Texas Roadhouse, Buffalo Wild
Wing, and cheesecake.
Significant competitive products
Quality of services they offer and the menu list.
Opportunity to compete
Majority don’t offer healthy organic foods which is a
great opportunity to us.
Most fast foods don’t offer the ambiance and space
where customers can relax and enjoy quality time.
Situation Analysis:
SWOT
Strengths
BJ’s has expanded its restaurants over the years to
192 stores which mean it enjoys economies of scale.
BJ’s has quickly expanded to 24 states in America
and this has attracted a strong brand reputation
Weaknesses
A most recent trend is the customer's demand for
healthy food and BJ’s is facing a hard time
complying with the new trend and in some instances,
it has received negative media reviews because of
its grilled meat.
Opportunities
The restaurant industry is growing at incredible
speeds and people are changing their lifestyle and
opting to eat in restaurants more than they prefer
preparing food at home
people are becoming more conscious about their
health they are opting to have organic foods
Threats
Fast food restaurants are becoming even more
popular than all service casual restaurants such as
BJ’s which magnifies the competition in the industry.
Marketing Strategy Objectives
Mission Statement: to create the most conducive environment for the
customers and staff so that together they can create a positive impact to
the community and be able to deliver value to the customer through quality
services.
Marketing objectives : To increase the market share from 2% to 5% and be
number one in organic foods with a market share of 25%.
One year financial objective: In the one year, the revenues are set to
increase by 30% and the profits will increase by 5%
Marketing Strategy – The new services will be tested and popularized
during the peak times with the aim being to get a crowd balance so that we
have something to offer and not turn away the customers.
Repeat business- where we expect that the customer will return back with a
new friend.
Segment – Target – Position
Segmentation Choices for
this Market
Millennials and families are
the market choice because
they have more purchasing
power.
Positioning of product or service
Target Segment(s)
Millennials have a life style
that can support them
eating outdoors because of
more disposable income.
The Millennials will account
for 60% of the market and
families 40%.
Offering customized menus and services to the customers based on feedback
system.
Consumer promise or value proposition
What will be the exception with our services is that we will be customizing
our products and services according to the region we will be operating in so
that we are relevant to the community. For the loyal customers, they will be
getting special menus and discounts which will be more appealing to the
target groups.
Product (Service) Strategy
Describe the product or service being marketed.
Topics should include, for instance
Organic
Breakfast, lunch, dinner and cocktails
Breakfast will include: whole grain cereals, tea, coffee
and break made sugar free.
Benefit is that they are healthy to the customer
Product packaging- the foods will be presented in the
restaurant or take out prepared dishes.
Price Strategy
The pricing strategy that will be followed will be quality
of services and menu
We will charge premium prices with an initial price of
between $17-$27 for each food item.
This is because this is what matters the most to customers in
the restaurant industry.
This is because it will make the customers perceive quality in
our services.
The plan for future price changes will be to reduce the
price based on customer loyalty through offering them
discounts.
Distribution Strategies
Distribution strategy- Direct and partnership
Channels of distribution
Direct
distribution through offering our services directly
to the customers.
Partnership through the local restaurants that have well
established networks.
Distribution Channel
Communication Strategy
The most effective communication medium is social
media and local broadcasting because most of the
target group millennial belong to the digital world
where they socialize through the internet.
Billboards will be used for the next six months so
that customers within the local area can become
aware of our services.
Financials
Qualitative
forecasting is
used because
It is based on the
market trends
that offer the
data to be
analyzed.
Base year
Qtr. 1
Qtr. 2
Qtr. 3
Qtr. 4
Full year
Sales
revenue
$130,221
$130000
$300000
$540000
$600,000
$648,221
Gross profit
$-12, 245
-$12, 245
-$2000
$5000
$17000
$53, 245
New
Marketing
expenses
$37,000
$10,000
$15,000
$25,0000
$36,000
$48,000
New R&D
expense
$130,000
$60,000
$70,000
$50,000
$50,000
$230,000
Operating
income
$150,000
$100,000
$150,000
$70,000
$80,000
$400,000
Implementation Controls
✓
✓
✓
First year goals-to attract the millennial to our
restaurant
Additional year goalskeeping track of sales
Increasing the revenue
Increasing the profit margin
Measures of success/failure- Tracking the number of
customers visiting the restaurant.
Requirements for success
We will need support from financing, R&D and marketing
departments.
Contingency Plan
➢
➢
➢
If we are not meeting the sales projection in each of
the company’s store we will have a plan to
move the store to another location
have an aggressive promotion of the service in the
target location.
diversify our product line
Executive summary
The aim of this marketing plan is to conduct an analysis of the market to determine how feasible the
market is before making the choice to start implementing on the new service line. The plan will give an
overview of the restaurant industry and conduct a SWOT analysis of the company. The plan will highlight
the market segments and identify the target customer group for the new service. To determine the
feasibility of the new service line the plan will give financial projections. To conclude the plan there will
be details of the implementation controls and a contingency plan.
Situation Analysis
BJ’s Restaurant Inc. is an American owned chain of restaurants that provides casual dining to its
customers. The company owns and operates 194 restaurants located in 24 states and specializes in
offering foods and brews within its premises. The company has been named as the fastest growing in
the past 10 years according to the national retail federation report of 2010.
Market growth rates
According to the national restaurant association report on the restaurant industry based on state by
state sales and consumer trends and technology the industry is experiencing growths of up to 25%. The
sales are projected to reach $783 billion by the end of 2017 which will represent consecutive years of
growth. The personal income of most Americans is rising every year which means they have more
disposable income which they can spend in restaurants. According to a research by U.S department of
Economic research service (2016) out of home food accounted for 42% of household expenditure which
means the restaurant industry is set for further growth in the future. According to Technomic (2017),
the restaurant industry sales for 2016 were $541 billion which is 14% up from the previous year which
shows the industry is having consistent growth rates.
Market needs
Customers desire healthy and fast food that will match their taste and preferences in a comfortable
environment. With each meal time, customers want a moment that will be memorable which will allow
them to break the monotony from the day to day life routine. What c...
