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CALIFORNIA RESTAURANT
I.
Executive Summary
California Restaurant is a California based restaurant business. It offers quality and
healthier foods and drinks menu along with diverse varieties (traditional local foods and drinks
menus, and other ethnic foods and drinks menu). The overall market California Restaurant
market is getting highly competitive over the time period. The players in the market combats
mainly on quality. Thus, the marketing is very important for the California Restaurant in its long
term success. California Restaurant is going to make a marketing plan for the next three years.
In previous period, California Restaurant has limited marketing budget in developing
brand awareness. In the upcoming marketing plan, the overall budget on the marketing and
promotional activities has been increased. The main marketing goals of the California
Restaurant is to increase sales, and achieve 15% of the total local market share by the end of
2019, develop products and brand awareness through gradual increase of the number of
customers, design creative and innovative marketing and promotional ads, and communicate
various promotional and sales offers to the customers effectively. California Restaurant believes
that strong brand image and high customer loyalty in developing sustainable competitive
advantage over its competitors in the market. It believes in the effectiveness of ‘grassroots’ and
‘referral’ methods, and focuses on placing the advertisements strategically. Four different types
of different marketing tactics including traditional media marketing, online marketing, word-ofmouth /in store marketing, and hosting of events will be employed by the California Restaurant
to attract the customers, and increase overall customer awareness. Among these, social media
marketing and word-of-mouth /in store marketing will be most prioritized. Contingency plans
will be made to ensure the marketing plan implementation successful. Overall budget of the
marketing plan is $2,524,000. After this marketing plan, the return on sales over the next three
years is projected to be 2.7513%, 4.1971%, and 4.2765% in comparison to current level of
4.00%. Overall marketing plan, upon implementation, will be duly monitored, evaluated to
assess the permanence and take corrective actions.
II.
Situation Analysis
Market Positioning
California Restaurant is doing restaurant business in only California City of USA. The
restaurant is formed as a company. It has already created a strong position in the market.
California Restaurant serves the market with quality foods and drinks menu along with diverse
varieties (traditional local foods and drinks menus, and other ethnic foods and drinks menu).
Currently, the company holds 10.30% of the total restaurant business based on a local
magazine.
Market Needs
California Restaurant is a restaurant with a business model of providing high quality, and
healthiest food items to the customers at market price. California Restaurant offers lunch
packages, dinner packages, traditional American foods, Asian foods, and European foods.
Diversity in products offering has made it unique in the market. The company focuses on fulfill
the following needs that are important to the customers.
✓ Selection: A wide range of foods and drinks items offer enables customers to choose as
their needs.
✓ Customer Service: Customers are king and always right.
✓ Competitive Pricing: All products are offered at competitive market prices.
Market Trend
The overall market headed by very sophisticated customers. Customers are getting
cautious in their restaurant choices. The behavior of the customers are sophisticated due to
followings.
✓ Food quality: Preference for high quality foods and drinks is being reinforced by
increasing the number of options.
✓ Health Awareness: People are getting more aware regarding quality and healthiness
issues of the foods.
✓ Quality conversation: People like to share their experience regarding quality perceived
at a restaurant place, and others like to take advice from others experience.
Market Growth
Over the recent period the restaurant market of the California city of USA has
experienced tremendous growth. Overall cumulative average growth (CRAG) rate in the last five
years was 8.05%. The market is expected to increase in near future in the expectation of the
market analysts and experts (Lee, 2016).
Growth Rate
2001
7.45%
Market Analysis
2002
2003
5.89%
7.78%
2004
8.45%
2005
10.69%
CRAG
8.05%
Market and Competition
The restaurant market of California is very large. At the end of 2017, overall market size
is going to be $82.2 billion (Nat...