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Marketing 1012 Principles of Marketing 1
Section 07
November 26, 2014
Professor R. Payne
Gretchen Ball
Faith Place
Neil (Hetianqu) Yang
1. SWOT Analysis
GOALS
Strengths (Observed/Perceived)
1. Creativity: redesign menu, create dishes
2. A diploma in marketing
3. Managerial experience: Italian restaurant,
steak house, a fine dining restaurant
4. Cash flow: $286,000 (won lottery)
5. Passion and drive for the restaurant
business: has never quit
Weaknesses (Observed/Perceived)
1. Emotional scars from closure of family
restaurant: financially, never recovered
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2. Let self and parents down: fear of failure
3. Cannot follow in parents exact footsteps,
therefore, no role model towards
successful business
Opportunities (Considered)
Strength-Opportunities Strategies
Weakness-Opportunities Strategies
1. External cash flow: bank loans and
1. With Tina’s creativity, drive, education,
1. Ability to secure grants and loans to
government grants for young entrepreneurs,
and experience, building a fine dining
overcome anxiety for failure of business
“futurpreneur” (Futurpreneur Canada,
restaurant in Downtown London Core2014).
South is an ideal setting that caters to the
2. Downtown Core-South: Walking distance to
approximate 26% city-wide population of
Budweiser Gardens and Grand Theatre.
45-64 year olds, the established adult early
Positive growth for business due to events
and late clientele (Michienzi, 2012)
(concerts, hockey games, etc.)
2. Strong profit opportunities arise from the
3. Attracting the established adult early and
entertainment down the street at Budweiser
late population with a higher incomes as
Gardens and the Grand Theatre
they have the ability to spend money on fine
3. With the research Tina has done, she has
cuisine and entertainment.
been able to incorporate locally sourced
4. Availability of locally sourced and grown
and grown ingredients into the menu to
produce, (i.e. Eat Green Organics and On
ensure they are readily available to prepare
the Move Organics) as well as making
balanced and wholesome dishes
connections with the farmers from Covent
Garden Market
Threats (Considered)
1. Competitors, for example: Thaifoon, Only
On King, and Garlic’s of London
2. High property costs in downtown London
3. High restaurant business failure rate of
“approximately 95%” (Payne, 2014)
Strength Reduce Threat Strategies
1. Creative ideas with the menu offers a
competitive advantage
2. Peripheral to Richmond Street to reduce
high property costs (i.e., Kent and Talbot
Streets)
Weakness-Threat Strategies (watch out!)
Source: Payne, 2014; Futurpreneur Canada
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2. Competitive Analysis
Thaifoon Competitive Analysis
Thaifoon Restaurant
120 Dundas Street
London, ON
519-850-1222
Business Hours:
Monday – Friday: 11:30 a.m. to 2:00 p.m.
Monday – Sunday: 5:00 p.m. to close
Product
Price
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Focus is authentic Thai cuisine
Soup/Salad: Tofu Soup, Coconut soup, Thai
Wonton Soup as well as Tom Yum Soup
Entrees: Pad Thai, Crispy Chiang Mai, Peanut
Pasta, Pad Seiw, all kinds of curry, Sweet & Sour
Stir-fry
Side: Jasmine Rice
Desserts: Coconut Rice Mango, Chocolate Torte
and Fried Plaintains
Several combinations for Thai dinner specials
Promotion
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Website: http://www.thaifoonrestaurant.com/
o Music enhanced webpage
o Homepage displays slide show of
dishes they serve
Promotes both take-out and dine-in options
Option to order take-out online
Strategic alliances with JustEat, a delivery service
for the take-out dishes
Multiple Menu Options:
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Appetizers: $5 – 10
Soups/Salads: $6
Main/feature lunch: $14
Main/feature dinner: $18
Desserts: $5
Non-Alcohol Beverages: $1
Take-out menu has a slightly reduced price.
Place (Distribution)
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120 Dundas Street
Dundas and Talbot streets
Parking: Street parking available with city parking
lots close by
Source: Thaifoon Restaurant, http://www.thaifoonrestaurant.com/
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Garlic’s of London Competitive Analysis
Garlic’s of London
481 Richmond Street
London, ON
519-432-4092
Business Hours:
Monday – Thursday: 11:00 a.m. to 10:00 p.m.
Friday – Saturday: 11:00 a.m. to11:00 p.m.
Sunday: 11:00 a.m. to 10:00 p.m.
Product
Price
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Locally inspired ingredients to make high quality
meals
Seasonal dishes accompanied by locally harvested
garlic as well as other sustainable organic
Canadian ingredients and products
“The cooking has a contemporary edge, rustic, and
made from scratch with inspiration from local and
signature ingredients and seasonal products”
(Garlic’s of London, 2012).
Ethically inspired menu
Wine list of 50 different types (red, white, and
sparkling/champagne)
Promotion
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Website: http://www.garlicsoflondon.com/home
o Has a very classy and rich feel; more
upscale
o Homepage displays slide show of
dishes they serve
Prix Fixe Dinner Option: $30+ tax for starter, main
dish, and dessert
Garlic’s Urban Rooftop Honey: promoting take
home honey produced by their rooftop busy bees
during summer time
Offering of House Churned Ice Cream: Roasted
garlic and other flavours. Sample of garlic ice
cream just $2.50
Multiple Menu Options;
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Sunday Brunch: $13 – 16
Appetizers/Soups/Salads: $7 – 17
Sandwiches/Panini’s/Burgers: $13 – 16
Brunch Beverages: $2.95 – 14
Pizza: $16 – 18
Pasta and Lunch Mains: $16 – 20
Panini’s, Wraps, & Burgers: $13 – 16
Dinner Mains: $25 – 38
Desserts: $8 – 11
Wine (by the bottle): $26 - 100
Place (Distribution)
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481 Richmond Street
In the heart of Richmond Row
Parking: Street parking available with city
parking lots close by
Source:Garlic’s of London, http://www.garlicsoflondon.com/home
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The Only on King Competitive Analysis
The Only on King
172 King Street
London, ON
519-936-2064
Business Hours:
Tuesday – Saturday: 5:30 p.m. to close
Sunday – Monday : closed
Kitchen closes 10:00 p.m.
Product
Price
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Quality, locally ingredients to prepare
sophisticated French and Italian cuisine
Sample of the menu includes: vitello tonnato
(classic Italian of braised veal in a tuna sauce);
Pizza Romagna; TJ’s trout; cholcolate nemesis
cake with fudge sauce and whipped cream
Wines from France and Italy, of course, and
including Ontario wines
Special menu: Autumn Prix Fixe
Promotion
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Website: http://www.garlicsoflondon.com/home
o User friendly website
o On-line reservations
o Stay in touch on the mailing list
Media coverage in magazines and newspaper
Special brunches for Mothers’s Day and Fathers’
Day
Private rooms available
Multiple Menu Options;
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Appetizers: $10 – 15
Entrees/Mains: $16 – 32
Sides: $8
Desserts: $8 – 12
Brunches: $30/person; $35 with dessert
Special menus: $35/person
Wine priced accordingly
Place (Distribution)
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172 King Street
King and Richmond streets
Parking: Street parking available with city
parking lots close by
http://www.theonlyonking.ca/
Source: The Only n King, http://www.theonlyonking.ca/
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3. Customer Segmentation Analysis
Hyde Park
Hamilton Road
Downtown Core- North
and South
Masonville
White Oaks
Geographic
Segmentation
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6,220 residents
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14, 935 residents
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11,510 residents
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9,895 residents
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20,515 residents
Demographic
Segmentation
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50% of households
have annual total
income over
$91,000
Gender neutral
Young families:
aged 29-35
Established adult
early: aged 36-49
Diverse cultures
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50% of households
have annual total
income over
$50,000
Gender neutral
Young families:
aged 29-35
Portuguese, Italian
and Spanish
ethnicities
Common law
couples: 19%
Lone parent
families: 23%
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50% of households
have annual total
income over
$34,000
Side Note* Talbot
area: 50% 1590
residents have
annual total income
over $125,000
Gender neutral
Young
professionals: aged
22-28
Diverse Cultures
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50% of households
have annual total
income over
$102,000
Gender neutral
Established adult
late: aged 49-59
Diverse Cultures
49% married
couples
o Average family
income over
$153,000
(Michienzi,
2012)
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50% of households
have annual total
income over $57,000
Gender neutral
Young families:
aged 29-35
66% Asian
immigrants
30% other
immigrants
Families have over
average 3 or more
people
o Average income
over $73,000
(Michienzi,
2012)
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Psychographic
Segmentation
 The scope of this
project does not justify
proper psychographic
segmentation analysis,
geo-demographic
segmentation and
socioeconomic
segmentation provides
the details required
Benefits
Segmentation
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 Maslow’s
hierarchy of
needs (p. 86)
Usage Rate
Segmentation
80/20 principle
(p.114)
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Seek comfort and
safety
Prestige: up and
coming social status
Self-actualization
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80% or more of the
population would
find benefit in finedining
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Physiological needs
Primary concern is
shelter and food
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20% or less of the
population would
find benefit in finedining
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Convenience and
social aspects
Social needs: social
belonging and love
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80% of the
population would
find benefit in finedining
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Esteem needs and
some self
actualization
Self respect and
sense of
accomplishment
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Social and Esteem
needs
80% of the
population would
find benefit in finedining
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20% or more of the
population would
fine benefit in finedining
Source: City of London-Statistic and Community Research, 2013
Source: Michienzi, 2012
Source: Lamb et al. MKTG, 2013
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4. Target Market Selection
The market strategy that would benefit Tina’s endeavor would be the multi-segment targeting which
serves three well-defined markets: Established Adult Early, 36-49- Generation X (1966-1978);
Established Adult Late 49-59- Baby Boomers (1947-1964); and the Seniors (age 65+).
Justification:
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These groups “tend to value new experiences and spends a large portion of their
income on food and entertainment.” As well as “their tastes tend toward the more
refined and sophisticated. Connections to the community and the environment are
very important” (Michienzi, 2012).
More disposable income motivates these segmentations towards Maslow’s hierarchy
of needs: self esteem and self actualization
Positioned and have the opportunity to take advantage of new experiences that were
not available in early years because the need was to prioritize financial stability
before disposable income
5. Mission Statement
To bring together an oasis of seasonal foods within southwestern Ontario and culturally diverse tastes
from around the globe, paired with wines in a fine-dine setting of warm ambiance and nuance, as well
as the nutritional benefit offerings of gluten free, and sugar free cuisines. At Bekele’s Oasis, we take
you on the international voyage of continental flavours to experience in your home of London, Ontario.
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6. Location and Name
Bekele's Oasis
Casual Fine
Dining
Rationale:
- Peripheral location to
Richmond Street
- anticipation reduction of
property cost
- "Century home" style
restuarant to provide smaller,
quaint rooms, and private rooms
- Available street parking,
parking lots close by
- Convenient to downtown,
walking distance to venues for
evening events, i.e. Budweiser
Gardens and the Grand Theatre
Location
Selected:
-A side street off
of Richmond
street, i.e. Kent
and Albert streets.
Link to Analysis:
- Downtown core
connects to
evening nightlife
of dining and
social events, i.e.
theatre, concerts,
and sports events
Figure 1
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7. Pricing
Price:
Appetizers: $10 - 15
Entrées: $15 - 35
Sides: $5 - 8
Desserts: $8 - 12
Monthly Featured
Entrée: $30 - 38
Appropriateness:
Choice of Price Skimming
instead of Penetration Pricing or
Status Quo Pricing as they do
not add value to our projected
target market
Continued high pricing after
introductory phase due to
continuous trends of new
culturally diverse products
Rationale:
Quality products justify higher
prices
Quality chefs justify higher
prices
The environment- upscale and
sophisticated atmosphere
Clientele positioned to quality
pricing: "you get what you pay
for"
Profit Generating
Link to Analysis:
Market Plus Approach: "high price
relative to the prices of competitive
products" (Lamb et al, 2013).
Target market is established adult
early and late
Bekele's Oasis is "perceived by the
target market as having a unique
advantage" (Lamb et al, 2013).
Figure 2
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8. Product
Product:
Fresh
Ethnic and Exotic foods
Experience of EatingFine foods, rich and
diverse flavours
Menu items to include not only
pallette pleasing but also
nutritional/health conscious plates
for the diabetic, celiac, and vegan
clients
Appropriateness:
An example of Tina's culturally
diverse promotional themes: Easter
Special Offering; "New Zealand
Rack of lamb with Sweet Potato
Mash and Three Bean Ragout"
(Food Network, 2014) paired with
"Cloudy Bay Te Wahi Pinot Noir"
(Epicurious, 2014), accompanied by
"Ginger Kisses with Caramel and
Chopped Nuts for dessert" (Kiwi
Faves, 2014).
Rationale:
Provides the new sophisticated
experience
Fun, creative, challenging for the
organization
Satisfying emotional need/want
for the client (Self-actualization)
Link to Analysis:
Recent trends indicate an
experience for ethnic foods, both
exotic and regional (Michienzi,
2012).
Provides: unsought product and
product mix width and depth, i.e.,
variety of appetizers, entrées, sides,
desserts, and beverages
Figure 3
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9. Marketing Communications Plan
Advertising
Recommendations to be Considered with
$30,000 budget
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Major Advertising Media
Newspapers: “high individual market
coverage” (Lamb et al, 2013).
 Directed towards seniors (aged 65+) that
actively read newspapers
Promotion
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Personal Selling:
o
Magazines: Business London
 Directed towards the elite business people
of London
Television: During news times and London
sports events (i.e., London Knights games)
 Directed towards entire target market
Internet: Bekele’s Oasis’ website, tourism
London link, Google
 Directed towards entire target market
Inform:
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Pre-opening invitations to downtown
business people, media outlets
including radio, television, and
various magazines
o Having customers get involved in
suggestions towards exotic and
ethnic dishes
Persuade:
o Culturally involved experiences
o Farm-to-table, supporting local and
Canadian farms
o Maslow’s hierarchy of needs: selfactualization
Remind:
o How we get involved: social
responsibility, philanthropy
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Justification
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“Advertising has the advantage of being
able to reach the masses” (Lamb et al.
2013) therefore, to reach our target market
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Creativity
Future Expansion
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Budweiser Gardens: Electronic
advertising for Bekele’s Oasis to promote
dinner and entertainment opportunities
High Tea
Catering
o Business-to-business
o Private functions
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Direct approach is more conducive for
this target market because it adds the
exclusiveness of our product
Networking
Introducing our company with food
sampling from business to business
Connecting with Budweiser Gardens to
promote a sophisticated night out
dinner/entertainment incentives
High Tea: Large parties (30-40) discounts
Source: Lamb et al., City of London-Statistics,
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References
Financing, (2014, November 15). Retrieved from Futurpreneur Canada website:
http://www.futurpreneur.ca/en/get-started.
Garlic’s of London, (2014). Retrieved from http://www.garlicsoflondon.com/home
Lamb, C. W., Hair, J. F. Jr., McDaniel, C., Kapoor, H., Appleby, R., & Shearer, J., (2013). Marketing,
second Canadian edition. Toronto, ON: Nelson Education Ltd.
Michienzi, Jack, (2012). Tina’s Restaurant. Case study from Fanshawe College, Marketing 1012, R.
Payne, 2012.
Payne, R. (2014, November, 17). Lecture given at Fanshawe College, London, ON.
Thaifoon Restaurant, (2014). Retrieved from http://www.thaifoonrestaurant.com/
The Corporation of the City of London, (2014). Retrieved from https://www.london.ca/AboutLondon/community-statistics/Pages/default.aspx
The Only on King, (2014). Retrieved from http://www.theonlyonking.ca/