CRUISE MAGIC
Marketing Plan
https://www.bplans.com/fast_food_restaurant_business_plan/executive_summary_fc.php
SHEIKH ALI ARSALAN HUSSAIN - 25208
ABDUL WAHAB BANAWAZ - 25413
MUHAMMAD SHAHREYAR SHAFIQUE – 25343
FATIMA IQBAL - 23872
SHAH MUHAMMAD YAQOOB - 25301
Contents
Vision ................................................................................................................................................................................... 3
The Current Marketing situation ............................................................................................................................... 3
Market Description .................................................................................................................................................... 3
Cruise Restaurants in Karachi ................................................................................................................................. 4
Cruise Magic (An Overview) ................................................................................................................................... 4
Company Ownership................................................................................................................................................. 5
Competitive Review ................................................................................................................................................... 5
Direct Competitors:.................................................................................................................................................... 5
Distribution Review .................................................................................................................................................... 6
Types of food distributors in Pakistan ................................................................................................................ 6
Cash and Carry distributors .................................................................................................................................... 6
Redistributors ............................................................................................................................................................... 6
Specialty distributors................................................................................................................................................. 6
Broadline distributors ............................................................................................................................................... 6
SWOT ANALYSIS OF CRUISE MAGIC ....................................................................................................................... 7
Strengths........................................................................................................................................................................ 7
Weaknesses .................................................................................................................................................................. 7
Opportunities ............................................................................................................................................................... 8
Threats ............................................................................................................................................................................ 8
Objectives & Issues ........................................................................................................................................................ 9
Objectives ...................................................................................................................................................................... 9
Issues ............................................................................................................................................................................... 9
Marketing Strategy ...................................................................................................................................................... 10
Positioning ................................................................................................................................................................. 10
Point of Difference .................................................................................................................................................. 10
Point of Parity ........................................................................................................................................................... 10
Product Strategy ...................................................................................................................................................... 11
Pricing Strategy ........................................................................................................................................................ 11
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Distribution Strategy .............................................................................................................................................. 12
Advertisements ............................................................................................................................................................. 12
Third-Party sites/Aggregators ............................................................................................................................ 12
Internet Marketing .................................................................................................................................................. 13
Promotional Ideas ................................................................................................................................................... 13
Marketing Communication Strategy ................................................................................................................ 13
Market Research ...................................................................................................................................................... 13
Pestle Analysis ............................................................................................................................................................... 14
Political Factor .......................................................................................................................................................... 14
Economic Factor....................................................................................................................................................... 15
Social Factor .............................................................................................................................................................. 15
Technological Factor .............................................................................................................................................. 15
Legal Factors.............................................................................................................................................................. 16
Environmental Factors ........................................................................................................................................... 16
Action Plan...................................................................................................................................................................... 16
Financials and Budget: ............................................................................................................................................... 19
Break Even Analysis: ............................................................................................................................................... 20
Sales Forecast:........................................................................................................................................................... 20
Expense Forecast: .................................................................................................................................................... 20
Explanation of Major Marketing Expenses: ................................................................................................... 20
Linking Sales and Expenses to Strategy: ......................................................................................................... 21
Contribution Margin:.............................................................................................................................................. 21
Controls............................................................................................................................................................................ 22
Conclusion ...................................................................................................................................................................... 22
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Vision
Cruise Magic is a great place to eat, combining a fascinating atmosphere with excellent,
interesting food. The mission is not only to provide great tasting food and efficient service but
also water-based leisure activities for complete customer satisfaction. We want to be the
restaurant choice for all families and singles, young and old, male or female. Employee welfare
will be equally important to our success. Everyone will be treated fairly and with the utmost
respect. We want our employees to feel a part of the success of Cruise Magic Restaurant. Happy
employees make happy guests
The Current Marketing situation
Market Description
The restaurant industry in Pakistan is ever so evolving. It is the 2nd largest industry in the
country with approximately 169 million consumers. Pakistan holds the world’s eighth largest
market when it comes to food related business. It is estimated that in Pakistan, average
consumer spends 42% of one’s income on food. The average food consumer in Pakistan dines
out almost once per week. The annual growth of the industry is nearly 20%. Pakistani franchises
such as BBQ Tonight, One Potato Two Potato, Hot Spot, Student Biryani, etc. have now
expanded themselves to such a level that they are now offering their franchises to potential
investors internationally. It is the 16% of the total employment in food manufacturing sector.
There are over 4500 food businesses only in Karachi. Pakistan’s food sector is changing
significantly with a rapid shift in lifestyles and traditional eating habits. Retail sales of processed
food are expanding 10% per annum with current estimated size of about $1.4 billion.
Dine out trend is increasing in Pakistan and is being taken as a leisure trip or a social gathering,
which is very different than as it was perceived once when eating out was restricted to occasions
and celebrations. Secondly, the trend is multi-faceted, as it is not only restricted to a segment or
class which is being affected by the change in eating out trends. The trend is increasing amongst
the youth as well as a family event, and more importantly its significance despite the increase
varies in different social classes.
https://journals.iobmresearch.com/index.php/JELCS/article/view/1765
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Cruise Restaurants in Karachi
Currently there is only one cruise restaurant named “Savor” being operated in Karachi, it
is located at Karachi Creek, phase 8, DHA. Besides dinning services, they provide Cruise
Service for General Public in collaboration with Dream Vacations & Tours. It is the only
Cruise service available for General Public in Karachi and they also offer recreational water
activities such as Boating and Jet Skiing. Since there no competition facing them in the city,
Savor is enjoying a monopoly and charging much high prices for their services and
some customers complain about their quality of food and services not justifying their
high prices. Their staff is not well trained and food lacks taste and choices.
At least one more cruise restaurant is needed in Karachi city to break Savor’s monopoly.
Cruise Magic (An Overview)
Cruise Magic is a cruise restaurant. It will be in the booming, and rapidly expanding, area of
Defense Phase 8 'on the shore and with a land coverage of 2000yards approximately. The
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outlook of this restaurant will be promising it will be a fun and friendly place with excellent food
where people will get the best of everything. It will be the perfect place when customers need
that 'little extra.' They can have business meetings, family gatherings here, a place for a quiet
conversation, or for a special occasion.
Restaurant will be open seven days a week. The menu will be inspired from different countries'
specialties and appeal to a diverse clientele but with a focus on our local Pakistani food. The
menu will change every 3-4 months but keep the favorites. Prices will be competitive, but it is
the strategy of Cruise Magic Restaurant to give a perception of higher value than its
competitors, through its food, service and entertainment.
The restaurant will feature two open air seating areas with comfortable furnishings and decor
with soothing warm tones where customers will be served lunch, dinner, snacks, deserts and
drinks. But the most attractive aspect of Cruise Magic will be its boating lounge, which
consists of boats and small cruise ships, where people can simply have food, celebrate birthdays
or even arrange wedding.
Company Ownership
The restaurant will start out as an LLC corporation, owned by its founders Fatima Iqbal, Abdul
Wahab, Shah Muhammad Yaqoob, Sheikh Ali Arsalan Husain, Sherry Shafiq. Fatima and Wahab
will work as General Managers, Yaqoob and Arsalan will work as managing partners and Sherry
will work as FAO and focus on the financial issues.
Competitive Review
Basically, Cruise Magic has two kinds of competitors that should be considered for better
competitive frame of reference.
Direct Competitors:
Following are the brands that are providing the same products or services that we offer.
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Savor Cruise and Boating Restaurant
BBQ Tonight
Charcoal
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Distribution Review
Food distribution in Pakistan is composed of a variety of companies, organizations and
programs that collect food from producers, store it in warehouses, and then distribute the food
to restaurants and cafeterias. Most of the restaurants in Pakistan are using the traditional
structure of distribution and supply chain processes that cause operational risks due to a lack of
visibility into inventory management. Without proper counts and insight into real inventory
levels, restaurants often over-and under-order product, leading to more waste or missed sales.
Manually receiving product costs labor, and relying on employees to not only accept deliveries,
but also check that product is in good condition upon receipt takes time away from guest
service.
Types of food distributors in Pakistan
Cash and Carry distributors
Cash and Carry distributors do not transport goods. Instead, they operate warehouses where
food service operators can visit, choose products to purchase.
Redistributors
Redistributors do not sell directly to food service operators. Instead, they purchase directly from
manufacturers and then distribute small amounts of the purchased goods to smaller distributors
who are not equipped to deal with bulk quantities.
Specialty distributors
Specialty distributors specialize in a specific product category, they work only with niche food,
imported food items like seafood, fruits and vegetables, for example Red and Yellow Capsicum,
Thania is an ingredient which is not produced locally but imported from other countries.
Broadline distributors
Broadline distributors are the most general food distributor category. They typically handle
thousands of products in large volumes, so they are often used by grocery store chains and
other large retail food businesses.
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SWOT ANALYSIS OF CRUISE MAGIC
Strengths
The strengths of your restaurant lie in what you do best, whether it’s serving tasty food, offering
quality service at the table or providing decor that makes the fun of eating at your restaurant a
memorable experience.
Unique Environment: Offers unique environment to our customers to enjoy good quality food
on cruise and along the sea shores to have natural ambiance and made memorable experience
Clean and Tidiness: Business exterior and interior is quite neat and tidy as compare to
atmosphere provide by the competitor.
Pricing Strategy: Prices are lot cheaper than what competitors is offering.
Proper Boating Schedule: Everything is pre-planned and on time with 5-10 minutes leverage
for customers.
Trained and Knowledgeable Staff: Cruise Magic finds people with a good ethics and serving
quality. Our staff is both knowledgeable and eager to please.
State of Equipment’s: Large numbers of boats, Jet Ski and motor scooter, 2 big cruise ships to
entertain huge audience. Boating, Jet Ski and motor scooter for rides are properly maintain.
Privacy: Offering separate boats for private ceremony, couples and birthday parties at
reasonable pricing
Quality of Food: The quality of food is good and in appropriate quantities
Marketing and Advertisement: Strong local business strategy and knowledgeable marketing
and advertisement strategy is planned. We know the customers, we know the technology, and
we know how to build the service that will bring the two together.
Weaknesses
Weaknesses give you an idea of things to improve in your restaurant and relying on an outdated
point-of-sale system or using paper to keep track of ordering and stocking is a weakness,
because there are better ways of calculating your stockroom, order and financial needs.
Start-Up: Restaurant is new and not established.
Weather: During the period of low tides, it is near to impossible that the cruise set sail.
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Not Enough Capital: Limited funds are available to expand. Furthermore, no dedicated mobile
app for Cruise Magic
Cons of Technology: People in Pakistan don’t trust e-commerce due to lots of incident of
online scamming.
Product Innovation: Product is already available in the market.
Selected Target Audience: No kids-based marketing strategy is implied
Lacks in Future Expenditure Planning: Increase in expenses and General administrative
Transportation Issues: Transportation issues for lower middle class who don’t have their
vehicles.
Labor Turnover: Don’t meet the required number of staffs.
Opportunities
Look for opportunities that help your restaurant increase its profits, such as expanding or
providing different types of food and beverages.
Promotional Offers: People’s attraction towards promotional offers as per marketing strategies
E-commerce and Technology: Utilization of technology in the best possible ways to stay
competent in the market.
Value Customer Needs: People’s need for variety in different sector of boating, entertainment,
food and children play
Market Potential: The market of Cruise and Boating restaurant industry is booming.
Venture to Go Global: The business can be spread globally by establishing strong global
strategies.
Threats
Competing restaurants located nearby represent a threat to your business, especially if you sell
similar types of food or have similar dining experiences.
Economic Crisis: Uncertain Economic conditions in Pakistan are real threat to business.
Political Influences: Political problems in Pakistan (Like Extortion money)
Changing Tastes of People: Nowadays people like to have different cuisines following trends
that excite them.
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Strategies Can Be Copied: Competitor can easily do what we can do for flourishing our
business
Emerging Local Competitor: Hence, the cruise and boating industry is thriving; there is a mere
chance that results in emerging of local competitors.
Online Delivery System: Increasing trend of online food delivery at home, people prefer to
save time and avoid hectic traffic.
Objectives & Issues
Objectives
Cruise Magic objectives for the first three years of operation includes:
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Keeping food cost under 30-35% revenue.
Keeping employee labor cost between 25-30% of revenue.
Stay as a small restaurant with excellent food and service.
Averaging sales between $1,000,000-1,500,000 per year.
Expand our restaurant into Hotel Resort and Club
Promote our business to other cities of Pakistan.
Achieve 13% return on investment to investors for the first two years and 16% for the
next three years.
Issues
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Gaining competitive advantage and a unique selling point due to tough competition.
Arrange and Plan at least enough capital to run the business for one year and cope with
unexpected costs and increases.
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Changing consumer tastes and expectations, especially Millennials, have higher
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standards for quick service restaurants diet and nutrition.
A perfect storm for brand management. Restaurants are struggling with the
reputation economy, where a brand can live or die based on what is being said
about them online.
Designing a good, exciting and balanced menu is a challenge.
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Marketing Strategy
Positioning
The positioning of Cruise Magic:
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Offering a unique experience on the sea.
Memberships for the family.
Ideal for parties and family engagements.
Live food straight from the sea.
Sailing is a lifestyle activity.
Freshness up the mind and relaxes it
Promotes local tourism in the area.
Caters corporate Events.
Small Meetings with foreign Delegation.
Collaboration with Kolachi Restaurant.
Point of Difference
The Difference that Cruise Magic has is that we have collaborated with the famous restaurant
chain by the name of kolachi which is located on the coastline of Karachi at Dou Darya.
The collaboration with this restaurant means that the food provided will be of the top most
quality and that kolachi is an established brand in the market which is famous for its food.
One more point of Difference for cruise magic would be that we have live music shows and Gigs
that would be performed by artist across Karachi. This is a way of promoting our cultural music
also and this would give cruise magic an edge over Savors.
Cruise Magic also has a big dining area which can accommodate around 600 to 700 people at a
time, we also have an indoor space that can accommodate around 150 people.
Point of Parity
The Point Of parity are numerous as we are a direct competitor of savors we also provide food
at the coast line, we also have the ideology of giving family time to our customers as we give
them a unique experience to spend their time on boats and cruise will they enjoy load of fun
activities, those who want to enjoy their leisure time with their loved ones can also enjoy while
they have their personal space, we also accommodate parties and conferences for the corporate
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sector and lastly we have a mix of culinary specialties which includes continental, Asian,
Pakistani, Turkish and American cuisine.
Product Strategy
The Product strategy would be:
The Actual Product: The actual product is that savor is a luxury cruise restaurant serving
customers with a variety of culinary dishes at the heart of the sea.
The Augmented product: The actual product plus several different offerings including Sunday
brunch parties, cruise events, tours of the mangrove forest, promotion of culture, art and
Pakistani cuisine.
Also, Savors provides an opportunity for bird watchers and fishing enthusiast with the facility to
have all this on our boats and cruise ship.
The main USP is that Savors has collaborated with Kolachi which runs their Kitchen so it’s like the
food is of the same taste and quality of kolachi.
Pricing Strategy
The pricing for Cruise Magic is intended to set the restaurant well above a fast food
establishment. The rationale is that coming Cruise Magic is a special event and customers will
feel they can splurge (both calorie-wise and money-wise) on starters, drinks, and desserts
because a visit to Neon Memories it is not an everyday experience.
Our pricing strategy will focus on providing high quality, healthy food that is quick and has a
unique flair. Because of this, we expect to be able to charge somewhat more for our products
than other stores, if the customers agree that the food is better than average.
Coupons and first-timer deals will be relatively easy to find on the diner's website and in radio,
print, and online ads, as well as local events. A standard first-timer deal will be a free drink or
small starter with the purchase of a meal. Generally, these types of deals will only be available to
first-timers, and all customers will be tracked by name and address when they take advantage of
these deals.
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Distribution Strategy
A distribution channel is a path/chain of intermediaries or businesses through which a product
or service passes until it reaches the end consumer or the final buyer.
A good Food Distribution system ensure that customers can eat strawberries in winter and
pumpkin in spring. Maintaining the quality of food products is one of our major challenges. It’s
a complicated, logistically-focused industry, but usage of new technology and softwares make a
difference in streamlining some of the associated processes. An automated distribution system
will be positioned at Cruise Magic by using the best technology available. It will integrate all
stages of supply chain including wholesalers, retailers and transporters and ensure quality at
each step. It will also help us in reducing lot of labor from the equation around inventory
management, including proper rotation and expiration dates, so there will be tremendous labor
savings there, as well as reductions in food waste. It will ensure food is of proper quality, helps
the restaurant's reputation, and increase sales.
Advertisements
Advertising is a key to creating an upright distribution channel for any business. The individuals
might decide to give our restaurant a visit after seeing one or more of our ads. We will make the
best use of the following Print and Electronic Media to appeal new customers and to our
restaurant and retain them by serving best quality, delicious food, there is a chance that they
might recommend our restaurant to their family, friends and others.
1. Newspapers
2. Magazines
3. Bill Boards
4. Television
5. Radio
Third-Party sites/Aggregators
Third-party sites show the availability and offer reservations to customers at several restaurants.
In case of no availability at a desired restaurant the Aggregator recommend another restaurant
from its inventory. When a reservation is made by a customer, a confirmation through email or
SMS is sent to both the restaurant and the customer. In Pakistan there are many online foodordering and delivering businesses such as Tossdown, FoodPanda, Supermeal, Olaround etc. but
we are currently registered with FoodPanda which a famous online food guide app. Customers is
can easily order food via mobile application of FoodPanda and get their favorite food served at
home within shortest possible time.
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Internet Marketing
It refers to online marketing or advertising efforts to promote a brand or business and its goods
or services through Websites and emails and help drive sales, leads and traffic. We will create
our Website and display our menu with nutritional information and special promotional events.
Customers will be invited to join our mailing list. Facebook, Twitter, and Instagram pages will be
created to have direct interaction with customers and get their feedback through inviting them
to Like and Subscribe our page. Special deals such as Two-for-one or Free appetizers will also be
advertised through internet.
Promotional Ideas
We will design different promotional items such as Mugs, Writing Pens, T-Shirts, Key-chains with
our restaurant name print on it and give it our customers so they remember us each time they
see them. We will also promote our business by participating in local Food Festivals,
promotional fares and trade shows, social events and apply to become caterers.
Marketing Communication Strategy
The marketing Communication strategies that Savors has developed:
Savors uses social media marketing as they run their own website, Facebook page and
Instagram page where they promote their club.
2. Savors also advertises on the newspaper, home magazine’s and advertise on TV.
3. Savors also does sales promotion by providing discounts on special holidays such as Eid
and Independence Day which gives a boost to the sales.
1.
Market Research
Changing Trends
Pakistanis are eating out more often than ever before and for a wider range of occasions. This
fundamental shift has led to considerable market growth in the restaurant sector in recent years.
According to State Bank of Pakistan statistics, Pakistanis are spending almost 40% of their
income on readymade food. the exponential growth of the industry has been triggered by
changing population demographics and psychographics, the ubiquitous influence of
technology, higher disposable incomes of a growing middle-class and the increasing proportion
of Millennials in the workforce.
Changing Life Style
A decade ago, dining out was restricted to special occasions, it has now become more of a
leisure activity and a reason to socialize, whether it is after school, after work, or as a family.
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Moreover, with an increasing number of nuclear families in urban centers and more women
entering the workforce, there is less time (and inclination) to cook every day. People like choices
and autonomy and most working professionals these days crave convenience more than
anything else.
With conservative estimates suggesting that Pakistanis spend close to $1 billion a year on dining
out, several technology start-ups are seeking to cash in on this highly lucrative market, seeking
gains from a consumer market of 180 million people. Given that there are more than 25,000
outlets that can loosely be classified as “restaurants”,
There are 600 A-quality restaurants in Karachi. offering dining options, menus, locations, even
tips on what to eat., only about 200 or so are online,”
Food business is a kind of business which yields profits irrespective of the economic situation of
a country, it is not as prone to such risky external factors as a number of other businesses.
Specially opening a restaurant in metropolitan city like Karachi, covers every aspect of making
the restaurant successful. The capital requirements involved in opening up a local food
restaurant are relatively low. If a person can smartly manage the quality, expenses, and
marketing of the business, then this business has every reason to foster and flourish at a rapid
pace.
Pestle Analysis
The following factors can affect a restaurant business in Pakistan
Political Factor
In budget 2019-20 Sales tax on food supplied by restaurants bakeries and caterers will get quite
a bit cheaper as sales tax is slashed from 17pc to 7.5pc. Eating out has got a little easier on the
pocket. https://www.dawn.com/news/1487598 In Pakistan there are regulations related to
wages, hygiene and food quality that need to be complied with, for example, Hotels and
Restaurant Act of 1976 applies to all hotels and restaurants in Pakistan and seeks to control and
regulate the rates and standard of service(s) by hotels and restaurants. Pakistan’s food imports
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are generally regulated by the federal government and food standards are regulated by the
provincial governments. Minimum wage in Pakistan is 17500 for unskilled workers.
Economic Factor
Although Pakistan is facing economic crisis particularly due to circular debt crisis, but
Service Sector has shown the highest growth of 6.43pc as compared to Agriculture and
Industrial sectors that grew by 3.8 and 5.8pc respectively. Restaurant industry accounts for 27%
of its value-added production and it has great potential to grow.
https://invest.gov.pk/food-processing Government has taken several measures and decisions
to fix economic mess. Government’s priorities are to protect the economy from immediate
threat and stabilize it, carry out economic reforms, have friendly relations with other countries,
boost economic growth, attract more FDI, protect the less privileged, make the rich pay tax, and
adopt austerity measures.
Social Factor
Pakistan’s culture, society, customs, norms and lifestyle are influenced by the Islamic
ideology of state, for instance people don’t eat Pork and alcohol is prohibited in the
country. The social and religious values must be respected by the
businessmen/entrepreneurs. Moreover, the social perception of health in Pakistan has
changed vastly, Media has played its own important role in creating health awareness.
Consumers’ changed attitude pressed the restaurant brands to include low calorie and organic
food options in their menu.
Technological Factor
Technology is the most dynamic factor. Rapid technology advancement and change can impact
a restaurant business for sure. Usage of Computer, Mobile Phones, CCTV Cameras and gadgets
is increasing in Pakistan. Employers can have a closer look at their employees and other
operations by installing CCTV Cameras controls in their mobile phone. There are several
restaurant management and accounting software for example POS and QuickBooks Online with
so many options and processes available in Pakistan. If these software’s are used properly it can
increase the flow of profitability. Technology has also affected the marketing and advertising
of the brands. Social media and online ordering have changed the style of customer service in
Pakistan.
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Legal Factors
Legal and local bodies can influence a restaurant business in Pakistan. These regulatory
authorities frequently visit the different areas of the restaurant like kitchen and store to check
the different food items quality and expiry, staff and other hygiene conditions.
Environmental Factors
The 1997 Pakistan Environmental Protection Act demands that: persons as well as companies
under its prohibitions and regulations not to emit or discharge noise, waste or air effluent and
pollutants that flout the National Environmental Quality Standards. Recycling and Waste
management are some areas where brands are forced to change their approach. Public
Awareness and Changing government rules and regulations pressed the brands to adopt a
greener approach. Restaurant management keep indoor plants and take care of cleanliness on a
regular basis while the external surrounding should also be clean and hassle free so that
customers can easily reach the place. They use recycled material and implement a proper food
waste management policy. Donate leftover to charity and needy people. Every environmental
Action Plan
The competition among restaurants is fierce, and one needs to give his all to be successful.
Social Media Presence:
Arguably the very best way to promote restaurants online is with high-quality, drool-inducing
photos. Visual content is in high demand online and having delicious looking photos on
websites and across various social media outlets is essential for drawing hungry eyes.
Have some fun with hash tags – whether jumping on the hype of existing popular Twitter hash
tags like #Throwback Thursday or inventing own hash tags are a great way to have some fun
with fans. Often, the restaurants with a strong social media presence as part of their restaurant
marketing plan are the ones that are the best, and in the competitive food industry, ignoring
social media is a death sentence.
Create a Facebook business page and a Twitter account to share special discounts, exclusive
coupons, photos of newest dishes, and promote own news accolades. But setting up accounts is
only half the job – it’s also essential to keep up with what activities are happening on social sites.
Outsourcing Different Services:
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Partnering up with online food apps (Food Panda) should definitely be a consideration as part of
restaurant marketing plan. Partnering with online apps encourages visitors to check out the
restaurants so they can indulge and stay connected.
Set up Google+ Account
Setting up restaurant’s Google+ account is as important. When a business is searched within
Google, Google’s Knowledge Graph provides the business’s details in the sidebar. Google’s
Knowledge Graph gathers a large chunk of its info from Google+, so having a business set up
on Google+ is a huge bonus, as having restaurant appear via Google’s Knowledge Graph allows
for more prime search.
Geo-targeted Ads
Most folks are looking for good eats close to home, and you’ll get the most value out of online
marketing efforts by investing primarily in geo-targeted ads. Geo-targeting ads help save
money, ensuring that only users in certain cities or within a specific radius see specific ads.
Send Out an Email Newsletter
Restaurant newsletter doesn’t have to be weekly – in fact, users will probably appreciate a less
flooded inbox if it is simply sent a newsletter every month or so.
Use email newsletter as a chance to celebrate success, discuss new menu items, or share special
discounts.
Promote User-Generated Content
User-generated content is a great way to develop personal and intimate engagement with users.
Host a photo contest by asking customers to share their favorite meal at establishment, and
share the entries on a dedicated content page. Consider awarding some random lucky
contestants with a free appetizer or other prize!
Hosting and promoting user-generated content shows customers that they are appreciated,
turning occasional visitors into die-hard devotees.
Show off Staff
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In an age of robotic customer service reps and soon to be self-driving cars, the human element
is severely lacking. Show off 5-star staff doing what they do best! Seeing happy, smiling
employees does wonders for reputation, as customers long to be served by joyful workers.
Showing off pleasant employees also provides major reputation points. Happy workers say a lot
about a business, and fans are sure to take notice.
Share Positive Press
Another major restaurant marketing tip – when mentioned in a news outlet or magazine, show
off good publicity on website and via social media. Fans will spread the word, and newcomers will
be encouraged to visit in person when they see trusted sources celebrating the restaurant.
Have a Celebrity Influence
Business startups need immediate attention and the best way to spread the news in town is to
indulge a celebrity who has large fan following, invite the celebrity in the restaurant, get the
shout out and record his reviews to get maximum people’s attention.
Start a Blog
Starting own blog is a great way to build community and engage with customers. Blogs offer
the chance to experiment with restaurant’s voice and personality. Share successes and
struggles, funny stories, recipes, and anything else that might be interested in customers.
Food Blogger Outreach
When a new restaurant is established, it is difficult to generate reviews and hype about business.
One great way to get reviews and press on the web is to invite food bloggers to restaurant to
give a try and consider offering a free meal or appetizer to get them in the door and share their
experience online.
Sleek, Functional Online Menu
Users love to do research online before ordering from or visiting a restaurant. Don’t make users
scramble to find the menu, publish a high-quality, easy to read menu that is up to date and
accurate.
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Offer Coupons and Discounts
Providing coupons and discounts for restaurant is always a surefire way to bring customers
running. Offer a free dish to new email newsletter subscribers.
Reservation Tools
MagicCruise.com. Website is an online reservation tool that lets customers book reservations for
establishment online! Patrons love it when life is made a bit easier for them.
Fish Bowl Business Card Giveaways
Let customers drop their business cards into a bowl for a raffle. The reward can vary – a lunch
for the winner and 10 friends, a 2-hour happy hour with discounted drinks, Not only are these
raffles fun, but Business cards can also be used by emailing customers. Let them know that while
they didn’t win this time, they can sign up on website to be notified of their next chance to
enter, plus the opportunity to hear about discounts and other offers they’d enjoy.
Source Local Ingredients
Customers love to hear that they’re eating local, and sourcing local ingredients from nearby can
do a lot to boost your fan base and give a positive reputation in the community. If it’s not out of
budget, consider this option!
Financials and Budget:
The marketing plan is built on these truths:
The marketing budget is based on a percentage of sales value. Currently, that value is set
at 20%.
2. Building a strong brand and brand loyalty is critical to the success of Cruise Magic.
3. Marketing is a critical component of the Cruise Magic business plan.
4. The relationship between marketing dollars spent and revenues generated is positive
only to a certain point. We don't feel that a marketing budget based on 20% of sales is
close to that point where additional marketing dollars spent won't create additional
1.
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revenue. If we can manage, we plan to spend more than 20% of sales on marketing in
future years. However, we want to keep this relationship in mind as we consider
spending more on marketing efforts.
5. Our understanding of the need for strong branding and emphasis on marketing gives us
a competitive edge over other restaurants in our area and potential competitors.
Break Even Analysis:
Cruise Magic is operating in an industry capable of supporting high gross margins. Variable
costs in relationship to per-unit revenues are low. Variable costs are equal to roughly 25% of
per-units revenues. It is our hope that as we move into the future and continue to build
relationships with our suppliers, this value will decrease further, approaching a value of 20%.
Fixed costs for Cruise Magic equal almost PKR 500000.
Fixed costs include: payment of debt, facility lease costs, hardware costs, Cruise cost, Boat cost
and other costs Cruise Magic must maintain on a monthly basis. These costs are fixed and aren't
impacted by an increase or a decrease in sales.
Currently, Cruise Magic will break even at a monthly sales point of PKR 1000000.
Sales Forecast:
Revenues for the first year of operation are based on an almost 10% growth rate from month to
month. This is an aggressive estimate, but we feel that our strong emphasis on marketing will
have positive results. Annually, beyond the first year of operations, we're predicting a growth
rate of roughly 10%. The plan will be updated as we receive more information.
Expense Forecast:
The marketing budget will consistently equal approximately 20% of sales. One of our strongest
strengths is our marketing and brand building capabilities, and the aggressive marketing budget
reflects the importance we attribute to our marketing activities.
Currently, the marketing budget beyond year one remains set at 20% of sales. It is our hope to
increase this budget should sales and efficiencies of scale allow us to do so.
Explanation of Major Marketing Expenses:
• Local TV spots… In our first year of operations, we will spend PKR 2 million on TV spots. TV
spots allow us to reach a large audience and effectively target our market.
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• Print Materials... Print materials always require a significant budget. They include: flyers,
literature distributed internally, novelties for customers, coupons, and anything else we can
squeeze into this budget.
• Local Newspapers... An important part of our marketing efforts. Newspapers ads will give us a
vehicle for consistently getting our message/brand in front of many potential customers. We
believe this vehicle will get our message to seniors, which make up a large portion of our target
market. In addition, the business section will provide us with a means for communicating with
our business customers.
• Local Radio Spots... These are an inexpensive way to secure many daily impressions.
• Cruise Magic Events... This will include local events, motivational speakers’ seminars, magic
show for kids with families.
• Customer Happiness Representative... This employee will monitor the level of happiness
amongst Cruise Magic customers. They will be responsible for: developing customer satisfaction
programs, monitoring happiness levels, responding to customer concerns, and the general
wellbeing of every Cruise Magic customer.
Linking Sales and Expenses to Strategy:
Our marketing expenses are tied directly to our sales revenue. As sales increase, the marketing
expenses will increase. Currently our marketing expenses equal roughly 20% of sales, and we
hope to increase that value in the future. Our programs will be monitored for efficiency and
return on investment. Periodically, we will survey our customers to determine the effectiveness
of our programs, and we will adjust the marketing mix appropriately based on our findings.
Contribution Margin:
The Contribution Margin chart and table presents a strong outlook for Cruise Magic first year of
operations.
1. Sales increase an average of 10% per month in the first year.
2. Contribution margin runs at roughly 50%.
3. The marketing budget is consistently based on 20% of total revenue.
4. A strong focus on Social Media is apparent in the expense breakdown.
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5. The marketing budget is spread evenly throughout the year.
Controls
The goal of this marketing plan is to outline the strategies, tactics, and programs that will make
the sales goals outlined in the Cruise Magic business plan a reality in the year 2020. We have
these marketing obstacles to face:
• The creation of a unique, innovative, upscale atmosphere that will differentiate Cruise Magic
from other local restaurants and future cruise restaurants.
• The establishment of Cruise Magic as a community hub for socialization and entertainment.
• The creation of an environment that won't intimidate the novice user. Cruise Magic will
position itself as an experience Dine inn for its customer.
Our marketing efforts will be focused on building the image outlined above. We have
milestones and sales goals to meet and a business plan outlining our first and second year of
business in detail. It will be critical to use this marketing plan and the Cruise Magic business plan
as living/working documents. We can't allow them to sit in a file. They must be used as a map
for the future success of Cruise Magic.
Conclusion
There is no one fit all solution for every restaurant. All new restaurant needs to experiment to
find out which marketing channels work best for them and concentrate on a few areas rather
than spread themselves thin and try cover them all. It might suit a restaurant to be on an
aggregator for discovery but to also optimize their own website and brand and take direct
booking requests under that too. What is important to realize is that this is a changing
landscape and every restaurant must stay on their game to keep ahead.
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