Marketing strategy
1.1 Mission: The mission of San Kai is to establish itself as a name for “Authentic and Pure” Japanese cuisine. Maintaining the rich heritage of Japanese cuisine so as to ensure that the tradition of Japanese culture lives on. Japanese cuisine has always been respected across the world, however in this age of fast-foods and take –away the traditional taste and the delight involved has been lost(Wikpedia). We at San Kai aim to provide to the customers that old authentic Japanese delight again. The greater glory of our mission is to spread this mission across different parts of the world. The main aim is to popularise authentic Japanese food among the youth. Keeping this objective in mind we plan to expand our chain across campuses. Let Japanese cuisine grown and prosper(Japan-Guide)
1.2 MARKETING OBJECTIVE: The overall marketing objective of the company is based on a two pronged strategy The strategy being clearly to increase customer share and also to improve customer satisfaction index(Small Business Notes). The entire plan of marketing objective is based on the the above two clear parameters. Looking into the above plan the entire marketing objectives can be jotted as below.
San Kai‘s marketing objects
- Increase 30 % of customer satisfaction and build a repeat-customer base by June 2013:The customer satisfaction level is an important parameter as the footfall to restaurants are based on word of mouth popularity. Poor customer satisfaction levels create a negative image which in fact is very difficult to get rid of. The customer satisfaction level can be monitored on a set of indices based on factors like quality and taste of food, ambience, service time, waiting time, courtesy of staff and cleanliness. An overall 30% increase in satisfaction level across these parameters would ensure that the San Kai as a brand would have a positive impact across customers. This increase in customer satisfaction level would in turn ensure that there is a steady increase in the number of repeat customers .Repeat customers are an important indicator of the improving customer satisfaction level. Moreover a satisfied customer makes sure to spread a positive Word of Mouth, this further helps to pull in more customers. The above marketing objective is quite critical and is very important is San Kai’ future course of action .As always for any service based industry customer satisfaction level defines whether the venture will succeed or perish.
- Increase their position in the local market and strengthen their brand to 20 % by June 2013:As a completely new player San Kai has almost no presence in the local market. As a part of its objective to improve customer share San Kai plans of increasing its Market Share to about 20% by June. This is a conservative figure and is a stepping stone in establishing the Market Share that they are aiming at. A 20% market share is a good stepping stone in achieving the Market Share they are aiming at in the near future.
- 10 new customers are going to become repeat customers on a monthly basis: In order to achieve the repeat customer base that the company is aiming at San Kai is planning to start from a modest customer base of 10 new repeat customers every month. Although a modest beginning this will help to build on an entire base that help propel the company to establish the kind of market share they are looking at. The customers can be enticed with special offerings ,loyalty cards, special table bookings and progressive discount to be repeat customers. This objective should be seriously taken up the sales team least
- Increase promotion budget 5 % of 2012 profit: Any new business requires massive promotional spend. This promotional spend helps to create awareness among the consumer class .The above increased promotional spend would be in the form of regular newspaper ads, hoardings as well as pamphlets circulated through magazines. Other innovative form of promotion can also be selected depending upon the distribution of the target market The promotional campaign should be so designed so as to create of San Kai as a healthy and a traditional restaurant serving authentic Japanese food. The increased promotional food would surely increase the footfalls expected into the joint.
- Develop and making 3 special products such as lunch time special meal every month:To improve footfalls the product line has to be regularly augmented. Adding three special products every month either through a new item in the menu or through a special meal service can help maintain the novelty factor, which will keep on adding new customers and also the older ones interested.
- Increase recycling product by 10 %. : The aim is to establish the brand as an entity that is conscious about the ecosystem in which it exists. The idea thus is to increase recycling product by atleast 10% every month .This objective will also help to conserve cash that would have been used in managing waste disposal
1.3 Financial Objectives
- Increase profit by 10 % by June 2013: The aim is to increase profit percentage through a span of year. This objective is based on the sole purpose of creating adequate cash flows to run the business operations of the organisation.
- Increase gross profit 20 % by June 2013:This financial objective is aimed at reducing the cost of making the product .This can be attained by finding more economical ways to make the product or by using cost effective ingredients in the product.
- Decrease expenditure by using effective suppler and marketing strategy by 10 %.:Developing a robust supplier relationship is very important as it will help reducing sourcing cost. This can be attained by using long term contracts with the suppliers. A decreases in this expenditure will go on to boost the gross profit as well.
1.4 Target Market : Japanese cuisine outside Japan is very popular among the Asian community. Thus , San Kai‘s target market is mainly student and employee who come from Asian, western and south American countries. With rising consciousness about healthy food and healthy eating habits there is a trend is healthy life style so nowadays they prefer healthy food rather than junk food(Slide Share).
The rising popularity of TV cooking is also a trend that we intend to harp upon. These TV cooking shows are raising the popularity of traditional and healthy eating habits. The restaurant thus also plans to start some authentic dishes that will feature in such TV shows and thus improve visibility. With an increase in the share of wallet on out of home consumption employees will also be targeted. With a increase in promotion and visibility campaigns the frequency of footfalls is also expected to increase. It is also believed that increasing promotion will also attract tourist customers which again can help improve revenue. San Kai intends to grow upon the rising popularity of traditional healthy food by attracting students, expatriates as well as tourists.
1.5Positioning: Looking at the perceptual map below we find that there is a big gap in the space of healthy Asian foods(Quickmba). This being the reason San Kai has been effectively positioned to be delivering healthy food in that category. Almost all the restaurants that operate are in the fine dining category with very high quality of food and service. No restaurant operates in the lower end category thus the gap can be exploited by having San Kai take up that given positioning line. San Kai thus can be positioned as a restaurant serving Healthy Asian food having value for money food and service. The positioning platform thus taken up can be augmented by taking active marketing campaigns. However, care should be taken not to keep the positioning fluid as it is a new player and the market may not perceive it as it is being positioned(Nptel). The perceptual map gives a good indication about the spaces available and those that can be exploited effectively by the restaurant. Looking into the quadrant of quality of food and serving San Kai will have only one competitor in the form of Subway. However there isn’t anyone in the segment of healthy Asian food with appreciable quality of food and service.
San Kai’s positioning
High quality of food and service
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Low quality of food and service
Figure 1
1.6:Opportunities Identified. Out of all the set opportunity set available the following list the following set of customers have been identified to be of use can be studied with the help of a Ansoff Matrix as below.
Market Development: Attracting new customers especially tourists from abroad of Asian countries who have a special liking for Asian food. This market can be developed by bringing about exquisite food that is a special hit among the tourists. The margins earned in this segment are handsome and if it grows the operations can be very profitable.
Market Penetration: The market penetration can be achieved by effective promotion by making sure that the marketing spend is effectively utilised. The marketing promotion plan has already been mentioned above and it is expected to bring in result.
Product Development: This part of the matrix can be achieved by developing new interesting products that are in line with the business of healthy Asian food. Some products that can be sold as home cook snacks could also be developed to specially cater to the segment of the working class.
1.7 Cost Benefit and Risk Analysis: The cost benefit and risk attached to the above three opportunities are as follows
Healthy Asian Food: One of the major risk attached with this opportunity is whether it would be cost effective to pull the entire program through. Moreover if successful this opportunity can be easily replicable and the advantage associated would be entirely lost.
Asian Tourists: Tourist prefer fine dining experience however the service offered by San Kai is not on the same lines. Thus it is dicey whether Asian tourists will prefer this restaurant. If they don’t then the entire investment to attract this segment will be a huge waste ,pulling down profits substantially
New Product: The idea of developing new products is always under the risk of being not getting accepted in the market place. This will may also lead to brand erosion among the already present customers. Any unpopular menu will kill the brand equity that the San Kai would have earned. Thus this strategy should be carefully implemented.
1.8 Strategy Summary: Looking at above the entire strategy set of the San Kai can be summarised on basic principle of improving footfalls and making the visibility as effective as possible .The strategy of the restaurant has already been broadly covered in the Marketing Objective part.
Control: A given mechanism of control is very important to make sure that the plans are put into action and are regulated with. A control mechanism is based upon the principle of execution of the project. In the absence of which the all the outlined marketing and financial objectives would never see the light of the day.
4.1 Implementation:The implementation is to be measured by drawing up a set up metrices in the form of daily goals, weekly goals,monthly goals as well as yearly goals.
Indices that can be used:
1)Daily footfall
2)Gross Profit per footfall
3)Average Bill Value
4)Expenses per sq ft of the restaurant area
5)Footfall per dollar spend of ad
These metrices could be tweaked as per requirement to suit the needs of the restaurant. Specific employees should be made responsible for the metrices with points 3) & 4) under the purview of the operations manager and the other points under the purview of the marketing manager.
4.2 Resources: In terms of resources San Kai needs adequate skilled manpower in terms of chefs and waiters. The manpower selection should be based on the positioning mindset of the restaurant to establish as healthy Asian Joint
4.3 Organisational Changes:The organisation being a start up can do without any formal organisational structure.The organisational structure can evolve with the growth.
References:
Wikipedia, Japanese Cuisine [online] Available at: < http://en.wikipedia.org/wiki/Japanese_cuisine > [Accessed on 23 May 2012]
Japan-Guide, Japanese Restaurants [online] Available at: <http://www.japan-guide.com/e/e2036.html> [Accessed on 23 May 2012]
Small business notes ,Marketing Objectives [online] Available at :<http://www.japan-guide.com/e/e2036.html> [Accessed on 23May 2012]
Slideshare, Marketing Objectives , [online] Available at :< http://www.slideshare.net/nusantara99/marketing-strategy > [Accessed on 23May 2012]
Quickmba ,ProductPositioning ,[online] Available at :<http://www.quickmba.com/marketing/ries-trout/positioning/> [Accessed on 23May 2012
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