Integrated Business Management Project

This Integrated Business Management Project focuses on the development of Delight restaurant in Orange, Australia. It covers market structure channel, competition, market entry model, pricing, marketing, customer profile, blue ocean strategy, and Porter's Five Forces analysis.

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Integrated Business Management Project
Student’s Name
5/30/2019

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Introduction
The growth in the tourism industry has developed the market potential and has developed
various market opportunities for the business. In accordance with the tourism research
Australia statistics Central NSW is considered as the best tourism spot in Inland Australia and
the number of visitors has increased to 14.92% (Central Western Daily, 2018). It is analyzed
that Orange wine festival alone contributes $1.5 million to the Australian economy and is
considered as the best tourism spot (Central NSW, 2019).
Central NSW is a welcoming city that is full of life, elegant streetscapes, beautiful parks and
some of the best regional food and wine in Australia. Orange is considered a colourful city in
Australia. The colors are showcased in the middle of the city’s magical Cook and Robertson
Parks and the Orange Botanic Gardens. The city consists of flourishing cultural scenes,
cosmopolitan cafes, restaurants and the theatres that add flavours to the city in the unique
style. The city has a direct flight from Sydney, regular country link service, and excellent
road access. Such characteristics make the city a great destination for the shorter and long
term stays (NSW government, 2019).
Considering the opportunity from the characteristics of Orange the report will focus on the
development of Delight restaurant that will provide the flavours of cultural cuisine and will
be located between the rolling green hills of Orange. The report will reflect upon the elements
on market channel structure, market entry mode, competition, marketing channels, pricing
and the profile of the customers. It will also cover the strategic framework to provide a
detailed analysis (Tourism Western Australia, 2019).

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Market structure channel
Market structure describes the distribution channel that the business uses to make the
products or the services available from the producer to the end user. Delight restaurant will
use zero level channels under which the restaurant will directly serve its customers. Adoption
of this channel will allow the restaurant to provide personalized services to the customers and
deliver a valuable experience to the customers (Kozlenkova et al, 2015).
The zero level channels will allow the restaurant to focus on the needs of the customers and
develop strong relationships by interacting with the customers. It will help in providing quick
service and target potential customers. Using the zero level channels will help the business to
reduce the operating cost and increase the profitability of the restaurant (Palmatier et al,
2016).
Competition
It is analyzed that the intensity of competition is high. The main competitors of the restaurant
are Overland Indian restaurant, Lolli Redini, Scrumptious on Summer and Charred Kitchen &
Bar. These are the main competitors of the restaurant because the dishes are moderately
priced and if offers different cuisines that are gluten-free and includes vegetarian options.
These restaurants have a strong customer base and make continuous innovations to attract
potential customers. The restaurants provide the finest collection of wines and ads flavor to
the tastes of the customers (Trip Advisor, 2019).
The other competitors provide cheap price products and deliver fast food which is becoming
the greatest competition because the changing preferences of the customers over the fast
foods and cosmopolitan cafes creates the threat for the restaurant in developing its market
position where the rivalry among the existing restaurants is high. (Pinstrup-Andersen, 2015).

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This develops the emerging need for the restaurant to understand the market size and the
preferences of the customers and innovates the services to attract potential customers.
Considering the intensity of competition, Delight Restaurant will focus on providing the
cultural taste to the customers and will focus on providing personalized services to deliver
valuable services to the customers (Pinstrup-Andersen, 2015).
Market Entry Model
Delight restaurant will enter the Australian market using the licensing entry mode. Under the
contractual agreement with the Australian government, the restaurant will gain the right to
use the technology, resources, trademark, patents and the name of the company. Through
payment of the licensing fee, the restaurant will gain the right to produce and sell the
products in the Orange city and develop the market for delivering service (Murphy, 2018).
Adoption of the licensing model of entry the restaurant will be able to make a quick entry in
the Australian market and will require less financial investment in entering through licensing
mode. It will allow the restaurant to earn a higher rate of returns and will involve less risk in
comparison to the other entry modes. This mode of entry is beneficial to the restaurant
because the Australian government puts various trade barriers and also requires legal
protection to use the resources of the target market. The restaurant will receive the license to
use the technology and the technical know-how of the city. It will allow the restaurant to hire
the workers and use their business skills. The restaurant will be liable to perform under the
rights stated by the Australian government (Murphy, 2018).
Support
The restaurant will consult to Austrade services to get a deep insight into the Australian
market. The networks of Austrade will provide insight into the cultural tips for doing the

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business in the overseas market. It will provide information regarding local commercial
practices and the requirements. They will help in finding the local sponsors and will help in
the identification of the customers. It also designs the visit program to spend more time at the
market and analyze the business capabilities (Australian Trade and Government Commission,
2019).
Austrade will help in conducting market and country research. It will help in gathering the
statistics of market trends and the barriers in regulating the business. It provides advice
regarding the suitability of the products and the services offered. Austrade also helps in
conducting the offshore marketing activities to promote the restaurant and provides the
follow-up to the local contacts to gather the resources and assessment of the products and the
services to provide the real fit with the customers (Australian Trade and Government
Commission, 2019).
The supporting activities will help the restaurant to conduct market research and analyze the
trends in the market. It will provide a deeper understanding of the customers and will help in
sourcing the local contacts to take the support of the sponsors and develop the market for the
services. It will help in analyzing the competitors and will guide to develop the appropriate
strategic actions (Australian Trade and Government Commission, 2019).
Pricing
Pricing plays a crucial role in determining the demand for the product or service. It plays a
major role in determining the profitability of the business and helps in capturing the target
market. It is crucial for the restaurant to use the appropriate pricing strategy and develop the
market for its services. In consideration to the above, Delight Restaurant will use the
combination of penetration and competitive pricing strategy. Under the penetration pricing
strategy, the restaurant will provide the cuisines at the lower prices to attract the customers

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and develop the market. After capturing the market the restaurant will increase the price of its
cuisines to increase the profitability of the business (Nagle and Muller, 2017).
The restaurant will also use the competitive pricing strategy under which it will compare the
pricing of its competitors and will define the price in accordance to its competitors. It will
help the restaurant to target the customers and will set the moderate pricing to protect the
interest of the moderate pricing customers (Nagle and Muller, 2017).
Using the penetration pricing strategy the restaurant will able to capture the market and
increase the sales quickly. It will help the restaurant to develop loyal customers for its brand
and attract more price-conscious customers. The increasing demand of the customer will
allow the company to enjoy substantial economies. This strategy will allow the restaurant to
become a market leader in the long run. The competitive pricing strategy will help the
restaurant to control the prices in comparison to its competitors and enables to respond to the
price conscious customers in an efficient manner (Nagle and Muller, 2017).
Marketing
To develop the low-cost marketing strategy the restaurant will focus to use social media to
cover the wide customers within a short span of time. The restaurant will design an online
loyalty program to attract visitors and make them feel connected. It will focus on setting the
yelp account and be proactively updated on it to get the positive reviews of the customers and
will provide the information regarding the location, timing, photos of ambiance, price range
and menu of the restaurant. The restaurant will focus to update foodie photos upon the social
media platforms including Instagram and will make the Google account to target youngsters
and visitors (Kotler et al, 2017).

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The restaurant will focus on developing the professional website to attract a large number of
visitors and increase the customer base. The restaurant will focus on reaching out to bloggers
and influencers and will share the content of the restaurant to create awareness to attract
potential customers (Kotler et al, 2017).
The restaurant will focus upon using the sales promotion techniques under which it provides
free coupons and discounts to attract the customers and will sponsor events to create the
awareness among the customers and develop the market for the restaurant. The company will
use online marketing and will make contracts with the trip advisors to increase the visitors
and will promote the services through direct marketing channels (Fahy and Jobber, 2015).
Customer profile
Through analysis of the trends and the market research, the restaurant will design its
customer profile. Designing the customer profile will help the restaurant to satisfy their needs
efficiently and develop the products that suit them the most. It will provide a detailed
specification of the ideal customers of the restaurant. Analysis of the customer profile will
help the restaurant to change its pricing, marketing and the business strategies to satisfy the
customers and provides the best services and products to them (Lovelock and Patterson,
2015).
Demographic
The restaurant will target the younger generations and employed customers. The age group
includes 16-50. It will include all the males and females and the disposable income of the
consumers will be moderate (Santeramo et al, 2018).
Geographic

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The target customers will be from all over the world. The main target customers will include
the visitors and the local people of Orange NSW Australia (Santeramo et al, 2018).
Psychographics
It will cover the taste and the preferences of the customers and the likes and the dislikes of
the customers to create the most valuable experience by delivering personalized services. The
cuisines will be moderately spiced and will focus to provide the taste of the local culture. It
will cover the activities at the restaurant to attract the customers and deliver the best services
to the customers (Heide and Olsen, 2018)
Behavior
The customers will be divided based upon the morning commuters, seasonal celebrators and
the one-time weddings. The morning commuters will include the customer who comes daily
and wishes to spend less and prefers fast service. Seasonal celebrators will include who
middle-aged group who comes to celebrate and prefers unique seasonal treats. The one-time
wedding includes the newlyweds which constitute very less proportion of the target market
(Law et al, 2015).
The segmentation of the target market will help in getting a deep insight into the customers
and their preferences. It will allow the business to earn higher revenue by meeting the
expectations of the target market.
Blue Ocean Strategy
Blue ocean strategy focuses on creating new market space and the creation of the new
demand. It focuses on capturing the unrecognized market and makes the market irrelevant.
The strategy was coined by W. Chan Kim & Renee Mauborgne under which it categorizes
Red Ocean and Blue Ocean to describe the market universe (Mi, 2015).

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Delight restaurant will consider the read ocean tactics and will design a blue ocean strategy
that is unrecognized in the market space. The exiting read ocean strategy includes a wide
variety of choices in the menu, the finest collection of wines, high pricing of the food,
attractive ambiance. The competitors of Delight restaurant provide good quality food with
quick delivery. In the competition to the red ocean strategies, the restaurant will focus upon
engaging the customers through developing the activities that engage them which includes a
short quiz about the best places they know about Orange, the 2 minutes flash mob organized
by staff to showcase the cultural dances and other customer engagement activities. It will
provide cultural flavor cuisines that are moderately priced and will design its unique selling
proposition by delivering personalized services to the customers (Mi, 2015).
Porters Five Forces
Porters Five force analysis helps in analyzing the industry under which the company operates.
These analyses will describe the competition that the restaurant will face and the bargaining
power of the buyers and the supplier. It will also cover the threat of new entrants in the
market and the threat of the substitute product. It will provide insight about the industry and
will help in increasing the profit of the business (Burns and Dewhurst, 2016).
The threat of new entrants
The threat of new entrants is high because Orange is considered as the most attractive spot
which in turn increases the opportunity to enter into the potential market and deliver better
than the existing restaurants (Burns and Dewhurst, 2016).
The intensity of competitive rivalry
The intensity of competition is high because the food industry business has been taken over
by from fast-food chains, cafes, and food trucks to fast casual venues. The increasing online

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presence creates high competition and one negative review can switch the customers to the
other restaurants (Stindt et al, 2017).
The threat of new substitutes
The threat of substitute is high because of the availability of substitutes in high due to
growing fast food chains and the increase in the restaurants (Luttgens and Diener, 2016).
Bargaining power of the buyers and suppliers
The bargaining power of the buyer and the suppliers is high because the customers can easily
switch over the other restaurants and cafes. The power of the supplier is low because of the
availability of a large number of suppliers switch the power to the restaurants (Luttgens and
Diener, 2016).
BOS Framework Tools
Four Action Framework
The four action framework provides the technique that breaks the trade-off between
differentiation and low cost to create a new value curve. The four action framework asks four
questions and pushes the company to act upon the question to derive a new value curve for
the company (Thompson et al, 2015). The four questions include
Eliminate the factors that the company has taken granted for.
Delight restaurant will focus upon eliminating the food waste and bad quality of the food. It
will not focus on the overpricing of the dishes.
Reduce the factors that are considered below the industry standard.

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The restaurant will focus on reducing the service delivery time and reduction in the operating
cost by reducing frills. It will reduce the variety to make the customer choices more clear and
will reduce insufficient marketing (Thompson et al, 2015).
Raise the factors above the industry standards.
It will add a balanced menu and will focus on training the staff to provide the best customer
service. It will focus more on social media marketing.
Lastly, create the factors that have not created before.
The restaurant will create its USP by providing the cultural tastes and engaging the customers
through preparing activities that entice them and the ambiance will be attractive (Thompson
et al, 2015).
Eliminate
 Food Waste
 Overpricing of dishes
 Bad quality food
Raise
 Marketing activities
 Balanced menu
 Proper training of staff
Reduce
 Service delivery time
 Operating cost
 Insufficient marketing
 Too much variety
Create
 Unique selling proposition
 Customer engagement activities
 Attractive ambience
Strategy Canvas
The strategy canvas is a graphical form action framework to conceive a value innovating blue
ocean strategy. In the graph, the horizontal axis will describe the factors with which the
restaurant competes and invests in the structure from a market perspective. The vertical axis

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will describe the offerings given by the restaurant in consideration of the competing factors
included on the horizontal axis (Agnihotri, 2016).
(Source: Agnihotri, 2016)
The Strategy Canvas is destined to assist a two-fold purpose. In primary occurrence, it
modifies the present state of play in the known market space, so that users can comprehend
the factors that the industry competes on and where rivals invest in. Secondly, it serves to
reorient users’ strategic focus for action by shifting attention from competitors to alternatives
and from customers to noncustomers of the industry. The horizontal axis describes the factors
that are offered in market space and the vertical axis describes the offerings by the Delight
restaurant to create value innovating business ocean strategy (Agnihotri, 2016).
Conclusion
From the above discussion, it is crucial to note that the growth in the tourism industry has
provided the opportunity to expand the market potential. It is analyzed that Orange NSW is
considered as the best tourist spot in Australia. It is considered as the city of flavors and the

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famous wine festival takes the spot. The growth in the city provides the opportunity to open a
restaurant that provides the cultural tastes cuisines.
The restaurant will use the zero level channels and will use licensing as the entry mode. It
faces high competition and will use social media platforms to market their services. The
increasing uses of online platforms will help in creating brand awareness and will adopt
penetrate pricing and competitive pricing strategy to describe the price of its services.
The restaurant will take the support of Austrade services to source the local contacts and will
provide better insight into the Australian market and the potential of the food chain industry.
The company uses a blue ocean strategy to develop value innovating strategy and analyze the
industry using Porter’s five force model. It will also use four action framework and the
strategy canvas to create a new value curve that helps in increasing the profitability of the
business.

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References
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