Currently, there are only two competitors in the division category. The competitors can be analyzed through geographical division in which the two competitors in the division are high-end restaurants serving the high-end clientele. Therefore, to beat these competitors, the company will be positioned as a low cost provider to target the low and middle-income clientele.
By products lines
There are currently four companies offering similar products to the restaurant. These are called direct competitors. These include Chicken Inn, pizza in, and café delica. Chicken Inn has been in the business for over 10 years with franchises worldwide. The company is more financially stable than neo-restaurant. Pizza in is amongst the pioneer fast food and restaurant chain in the areas but their brand is currently weak. Therefore, neo-restaurant seeks to ensure that it own 20% of the market share by the end of the first fiscal year.
The main competitors in the market include those casinos, pubs, and hotels that serve both food, and beverages. By identifying these competitors, the company will be able to position itself properly and sell its products and services. The company will leverage its knowledge of all the casinos, the clientele, and the products offered to determine how best to meet the demand of these customer segments
Identify and compare your company’s and your competitors’ strengths and weaknesses.
The company’s strengths
Unique menu with a lot of extras for the customers
Unique talent and skilled chefs
Ability to offer products and services at low prices as part of its market penetration strategy
Year of experience in the market
Exceptionally loyal customers
The company’s weaknesses
The company’s success is limited by its limited production capacity as the rooms, and facilities cannot meet large demand
Outdated equipment and lack of vibrancy
Inability to innovate. The company has grown to an extent the they cannot innovate as fast as neo-restaurant
Compare your marketing techniques with those of your competitors
The competitors use a range of outdated marketing techniques that cannot be used in competitive marketing environments. For example, it is using social media marketing, event marketing, and email marketing. On the other hand, neo-restaurant is planning to leverage word of mouth marketing, upselling, newsletters, and personal selling through text messaging. The company has identified internal marketing as the most effective way to market whereby the employees market to the customers during services tom convince them to come back next time.
Describe potential advertising program – discuss the following:
◦Possible use of ad agency and/or in-house ad department
The company will consider using ad agencies to help in developing a unique and effective commercial that will be aired on TV and radio to help the company increase its coverage. The ad agency will be chosen through a competitive tendering process. The main factors to be considered include their experience, key performance indicators and cost.
Media choices, how selected and target audience
The company has conducted a market research and realized that the best target market that promises positive ROI is the youth and corporate bodies. Therefore, social media will be the most used marketing channel because it is relatively cheaper. The company has also identified integrated marketing communication (IMC) (Kurtz, 2010).
Project expenditures for each medium and product/service
◾Describe potential public relations/publicity activities
The business opening is slated for the first week of April with pomp and pageantry. The company will hire local artists to perform at the restaurant as part of its corporate social responsibility. The artist will range from musicians, actors, acrobats, and even comedians who will be hired to perform during the grand opening. The company will advertise aggressively over the social media, print magazines, radios and TV. Finally, the company will invest in local talents who will act as brand ambassadors (Rajagopal, 2007)
•Show recent sales trends in industry.
•Project sales and income for next four quarters
3 rd quarter
Sales income from Small Meals, Drinks, Desserts
Total Sales and Marketing Expenses
Percent of Sales
Rajagopal. (2007) Marketing Dynamics: Theory and Practice. New Delhi, India: New Age International
Kurtz, Dave. (2010). Contemporary Marketing Mason, OH: South-Western Cengage Learning