Managing Innovation and Entrepreneurship: Cook and Eat Case Study

This article discusses the Cook and Eat case study in Managing Innovation and Entrepreneurship. It covers marketing and promotional plans, revenue forecasts, KPIs, target market, and growth strategies. The article also includes information on pricing compared to alternate products and advertising and promotion activities.

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Cook and eat
Cook and eat is a place designated for hire at Mulgrave-Australia. The place can be hired
by people doing different functions such as teaching classes, family gathering or wedding. Even
if this is not a hotel the owner incur labor related costs such hiring of watch man, those to clean
the place and also some to keep administrative duties. Other services offered includes, clients can
cook for a large group of friends and then serve and enjoy the food in adjacent that they can
dress and decorate in the way they want.
Marketing plan
Sales and marketing strategy and budgets
The objective of marketing in cook and eat place is to increase the number of customers
visiting the place. As the sales and marketing activities are increases, the information about the
place will reach more people thus the visits will increase. Some of the marketing activities will
include the use of social media in advertisement such as instagram, facebook, twitter and
snapchat. From the research majority of Indian origin people in the area uses social media
meaning it would be easy to reach as many people as possible (Westwood, 2013). The venue will
open a social media account where the venue will be advertised. Also, members will highest
number of followers in the venue will be used to advertise the venue. In some cases, the
management will use top bloggers to advertise the venue so that many people would learn about
the place.
Promotional plan
Just like advertising promotional plan is marketing tools which is aimed at reaching as
many customers as possible. However, this tool is mostly used in launching or expands the
services or product to reach into new verticals or demographics. The venue will also use this tool
in order promote the message in order to reach the intended audience, in order for the target
audience to understand the message and lastly for them to take action.
Marketing strategies

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Customers’ follower
To have the best sales strategies in the market, we will make sure we follow-up all the customers
who had visited the venue to know if they were satisfied with the services offered and the
likelihood of coming back again. We will be able to know the venue’s weakness and opportunity
and utilize them accordingly
The potential customers
The business must realize all the potential customers in order to utilize an opportunity the
moment it arises.
Revenue forecasts
The primary function of every business is to generate revenue. The revenue realized by
the company is used to cater for all company’s cost such as paying of the employee, hiring
equipments, cleaning services, paying for the venue and the remaining money is recognized as
the profit. Any company operating at a loss will end up closing all its branches and lastly end up
dead. However, when trying to make a profit, it must put the customer’s need on the back of
their mind (Danninger, 2015).
Income and costs for the members
Even if the revenue does not sell food staffs and encourages people to carry their own
foods, member may decide to come up with an idea which generate income such selling of
merchandise such as t-shirt which also is used to advertise the venue. Also, participant fees for
all people who are willing to join the venue may also be used a source of income. Cook and eat
is a venue forecasting its revenue annually as follows although all are assumption figures
Profit or Loss Amount
Income
Participant fees $2,350
Merchandising sales $8,000
Total income $10,350
Costs

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Salaries $100
Venue hiring $3,000
Equipment hire $1,500
Cleaning services $1,050
Travelling costs $700
Total Cost $ 6,350
Profit $ 4,000
Key performance indicators
A key performance indicator (KPI) is a measurable value that demonstrates how effectively a
company, firm, institute or business is achieving key objectives. Some of the indicators which
will be used to measure KPI in cook and eat are likes, engagement, social sentiments, social
interactions, and social shares, web visitors from social channel, follower’s growth and social
Visitor’s conversion rate among others means.
Pricing compared to alternate products
Pricing of products can be a very challenging task. This can be more challenging mostly
when it comes to venue hiring. This is because when the products are highly priced some
customers will start looking for alternative products and also when it’s lowly priced the company
might make a loss. Due to this, managers make a tough decision in which both the company and
the customers will be satisfied. Cook and eat company have conducted enough research about
the price of alternative products in the market and have agreed the desired price for its products
which neither the company nor the customers feel un-ease (W. Chan Kim, 2012). However, the
prices are not fixed as it’s bound to changes as an alternative product’s price changes.
Advertising and promotion activities
The company conducted some research on advertising and promotions. Also, the
company knows that customers must kept updated about the company’s new and existing
products and the only right way to update them is through adverting and promotions. The target
market for the company is both old and young people. Venue for hire is used by through

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conducting classes such as cooking classes and also hosting other events, on the old, the place is
hired so that they can hold activities such as wedding and come together which is associated to
old people.
Target market
Our main target customers will be people from Indian community living within this area.
The selection of target customers was reached after an agreement with other stakeholders. The
organizers believe that targeting Indian community at the long run will yield more income. In
order to reach them, different advertising strategies will be used such as.
Use of local dailies
A research shows that, majority of Indian community living around the revenue and
Mulgrave-Australia at large can read and write meaning one of the best ways to reach them
would be using newspaper and magazines
Use of mainstream media
Another perfect way of reaching as many people from Indian as possible is through
mainstream Medias such as television and radio. The revenue can utilize all the media houses
broadcasting using the language mostly used in Indian in order to reach as many people as
possible (Hackley & Hackley, 2014).
Exit or growth strategy
In many cases, a successful company is supposed to assume an exit the moment it
achieves its long-term strategic vision. However, the company must understand that the vision
can only be realized by only executing an effective growth strategy. In many cases, the company
plans for growth strategy if it is making enough profit to sustain its self in the market. This
means that the company can fund all of its projects in the long run. However, the company is
making continuous losses; the company is supposed to plan for an exit strategy. In our cook and
eat hotel as we show in the above discussion the company is making enough profit thus it must
arrange for growth strategy (Kumar, 2014). The gain realized from the company sales can be
used to fund the growth strategy in the company.

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Stages of potential growth
Every company has five stages of growth seed and development, startup, growth and
establishment, expansion and lastly maturity and possible exit. Cook and eat potential hotel
growth is when it is at growth and establishment stage. At this stage, the investor must put a lot
of resources into the hotel to grow and develop in the long run. One should understand that the
more the resources, the higher chances of growth. Also, the company must introduce a new
product at this stage because this is the stage where the company enjoys the highest number of
customers who would consume the said newly introduced product (Hawken, 2013).
Additional investment
The owner must seek to look additional investment at the expansion stage. At this stage
the cook and eat hotel will explore additional capital for expansion and start operating in the new
market. Also one must understand that this is the stage where the profit is at its maximum. If the
owner of cook and eat hotel decides to sell the hotel, he can do it at maturity and possible exit. At
this stage, the owner is ready for departure from the market and the business is ready for new
management (Hill, et al., 2014).

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References
Danninger, S., 2015. Revenue forecasts as performance targets. 5th ed. [Washington]:
International monetary fund.
Hackley, C. E. & Hackley, R. A., 2014. Advertising & promotion. 2nd ed. Los Angeles: SAGE.
Hawken, P., 2013. Growing a business. 4th ed. New York: Simon and Schuster Paperbacks.
Hill, C. W. L., Schilling, M. A. & Jones, G. R., 2014. Strategic management: an integrated
approach, theory & cases. 2nd ed. Boston, Massachusetts: Cengage Learning.
Kumar, D., 2014. Enterprise growth strategy: vision, planning, and execution. 2nd ed. Farnham,
Surrey: Gower.
Rupert Pearce, . B., 2015. Raising venture capital. 4th ed. Chichester, West Sussex, England:
John Wiley.
W. Chan Kim, . M., 2012. Blue Ocean Strategy, Expanded Edition: How to Create Uncontested
Market Space and Make the Competition Irrelevant. 3rd ed. Boston: Harvard Business Review
Press.
Westwood, J., 2013. How to write a marketing plan. 2nd ed. London; Philadelphia, PA: Kogan.

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