New Product component of a Marketing Plan

◾Identify each service and product specifically

Neo-restaurant is the located in the growing suburbs of the town. Neo-restaurant is comfortably designed to make its customers experience VIP services. It has a unique theme and décor that customers will enjoy while sampling the mouth-watering foods offered at the centre.

All the restaurants’ food and food packages will be identified by their unique services, organic labeled food packages

◾Differentiate products/services in terms of exclusive processes or superior ingredients and other features

The restaurant will have a unique Grille Menu, Seafood, Burgers and other fries, grilled chicken appetizers, Desserts (Flaming Fruit Kebabs with ice cream, Cherries Jubilee, Lime Pie, Milk Shakes, Banana Split, Fat-Free Dessert, and other delicacies. The restaurants do not only boast of professional chefs, but also unique services design, unique ingredients and fresh foods from local gardens (West, 1997, pp. 67–106).

◾Describe product/service weaknesses

Few products in menu limits the customers choices

Low capital affects services quality due to few staff as compared to great demand especially during peak time.

High-end customers cannot find premium wines because the restaurant can only afford Local menu mostly composed of cheap and locally available and affordable drinks.

◾Describe product lines and new products/services that will be introduced.

The restaurant will be having two products line, mainly food and drinks. Other minor services will be offered as demanded by the customer. Later on, new products including high end wines, as well as late night eating where customer enjoy their meals under low light and light jazz music. The store will provide discounts or as range of products every day. The store will also come up with a private dining facilities as well as conference services. All surprise gifts, upcoming events, special delicacies as well as gift coupons will be advertised online (company’s website)

◾Give cost of each product/service.

This restaurant’s menu will be composed of

Menu

Units

price

beef fillet

per portion

$15

Food wrap – made up of salads, bread, and vegetables and other condiments

Guest request

$8

Drinks (all)

glass

$10

All food including bacon, beef, pork will be wrapped and topped with herb butter will be priced at constant price $20. All foods will be priced and accounted for. Food will be priced using the formula= menu prices/0.35. For example, 20/0.35= 57

◾Identify percent of annual sales and total dollar amount each product/service represents.

All foods represent 60% of the restaurant’s revenue, while drinks represent 45%. Other services will represent 5%. Therefore, out of the forecasted $120,000, food will represents $72,000 of the restaurant’s annual revenue, while drinks will represent $48,000 of the annual revenue

◾Determine level of production/service necessary to meet demand generated by marketing

The level of production and services required to meet the demand will be know at the start as the company’s seeks to make a memorable brand. Therefore, the company will stick to 120 portions per day, and 200 drinks per day, and later on increase the portions with the demand after marketing campaigns (Lundberg, 1974).

References

Lundberg, D, (1974). The Hotel and Restaurant Business, Boston : Cahners Books,

West, Stephen H. (1997). "Playing With Food: Performance, Food, and The Aesthetics of Artificiality in The Sung and Yuan". Harvard Journal of Asiatic Studies 57 (1): 67–106.

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