Lyle's Restaurant Marketing Strategy

The assignment provides a detailed analysis of Lyle's restaurant marketing strategy, focusing on their approach to promoting their new Welsh cuisine line-up in the UK market. It discusses the use of penetrative pricing techniques, celebrity endorsements, and social media platforms to attract customers and increase market share. The report also includes recommendations for Lyle's to consider potential failures of the new cuisine and prepare a backup plan for its revival.

Marketing and
Communication

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
OVERVIEW OF COMPANY................................................................................................1
CURRET MARKETING STARTEGIES..............................................................................2
MARKETING PLAN.............................................................................................................3
CONCLUSION................................................................................................................................4
RECOMMENDATIONS.................................................................................................................4
REFERENCES................................................................................................................................6

INTRODUCTION
Marketing is a perpetual process of identifying the needs and demands of potential
customers and then fulfil the same by providing product and service in exchange of money
(Luxton, Reid and Mavondo, 2015). For this report, Lyle's restaurant is taken for consideration
which provides various kinds of cuisine and based on Shoreditch High St, London, United
Kingdom. Existing marketing plan will be explained in the this report along with formulation of
new marketing plan supported with justification and recommendations.
MAIN BODY
OVERVIEW OF COMPANY
Lyle's restaurant is one of the famous restaurant in the Britain which is based on eye
catching location of Shoreditch district. This restaurant operates on a smaller scale with fewer
employees. Founder of the hotel is Chef James Lowe who carries vast experiences of working as
a chief chef in restaurants and hotels like Heston Blumenthal’s The Fat Duck, Rob Weston’s La
Trompette and Fergus Henderson’s St Johns etc. Main attraction point of the place is the chef as
due to which they have gained their first Michelin star within 18 months of launching for the first
time.
This lavish restaurant comes under hospitality industry which is one of the toughest and
competitive industry as compared to others. Environment of the industry is so competitive in
nature as there are more than 86 thousands restaurants in UK which are competing against each
other with the same product (Number of restaurants and mobile food service enterprises, 2019)
Besides this, due to low profit margin, many owners are closing their enterprises with the aim of
reducing loss due to which approximately 10 restaurant are closing in every week (UK
restaurant numbers drop for first time, 2019). Whole sector is facing economic uncertainty due
to high number of competitors and increasing cost of the raw materials. But on the other side, it
is a positive point for the remaining enterprise as their competitors list is decreasing gradually
resulting in better future.
As mentioned earlier, this luncheonette has gained its first Michelin star which
considered various factors like quality of food, ambience, way of cooking, ingredients used etc.
After getting high brand awareness in the market, Lyle has been able to attain a distinct in the
market with the help of its distinct varieties of foods and the ingredients used in the cuisine is
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hard to predict as its their concealed recipe. Their target market will be those customers residing
near Shoreditch, London who are looking ways to relax and enjoy distinct cuisines at premium
prices.
CURRET MARKETING STARTEGIES
Marketing strategies refers to set by step actions planned by enterprise with the aim of
attaining pre set goals and objectives of it. There are various strategies which are implemented
by the Lyle restaurant is explained below with its critique,
Celebrity Endorsements: It has been proven by many researcher celebrities plays an
important role in the success of any enterprise as they enhance brand awareness in the market
resulting in higher revenue. Moreover, it also increases customer trust on the restaurants which
makes them loyal customers. So according to brand equity model, if any customers become loyal
towards their company's product then possibility of company's growth becomes high (Kotler and
et. al., 2015). Recently, Lyle has recently launched brunch with Enrique Olvera who is world's
famous chef and owner of the award winning Pujol restaurant. Besides this, on 4th and 5th of
December 2018, Lyle brings Morgan McGlone in the Kitchen for 2 days which attracted
hundreds of customers waiting for a queue (THE GUEST SERIES, 2019). But all these names
are famous in the field of food only therefore carries limited recognition, therefore it is
recommended to invite Hollywood celebrities for promotional activities.
Premium Pricing strategy: This is a strategy in which higher prices are charged for
products and services of an enterprise. This is generally carried out to establish higher value for
products in the minds of consumers. Customers are happy about the unique wine list they
provided to their customers as its rare in London to provide organic wine which equips them
with a opportunity to charge higher prices. Pricing quality model is a way of deciding the pricing
of product or service enterprise is offering to customers. It shows the interrelation between the
product price, its quality and value perceived by the customers (Use the Price Quality Matrix to
Optimize Your Product Pricing, 2019). According to the survey done by the Trip advisor,
customers are not happy with the price restaurant is charging for their product as customers are
not getting product of perceived value which they expected to get (Lyle's, 2019). Despite their
unique offering, one factor to which restaurant needs to work upon is their value offering so that
higher brand awareness could be achieved.
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Loyalty Programmes: Loyalty programmes are referred to as one of the most sought
after promotional approach for customers who visit a restaurant more frequently. It has been
identified that there is an increase in profits to the businesses which employ loyalty programmes.
This feature will be helpful in obtaining better customer information which will further
supportive in catering their demands. But loyalty programmes tend to hurt the financial position
of the company and are time consuming. It is essential for businesses to monitor their business
programmes so that their purpose is served.
MARKETING PLAN
Looking upon the performance of company over past few years, this restaurant is now
planning to incorporate Welsh cuisine into the menu as it is one of the most liked cuisines
amongst people of United Kingdom. For this, a marketing and communication plan has been
devised by manager of Lyle's restaurant. This is done so as to ensure that the execution of new
cuisine takes place successfully and assists the organisation in facilitating growth of operations
(Fill and Turnbull, 2016).
Business initiative
As Lyle's has been successful in maintaining its name and stake in market with the
passage of time. Therefore, manager of this restaurant has decided to launch Welsh food such as
cawl, rarebit, laverbread, bara brith in the menu so as to gain higher market share by end of this
year.
Situational analysis
Strength: The idea of launching the Welsh cuisine facilitates the growth of this small
business as the food under this cuisine are mostly liked by people of UK.
Weakness: The constraint in carrying this out will be to arrange funds for hiring chefs
who are expert at cooking welsh cuisine.
Opportunity: By incorporating a new cuisine, the restaurant stands a chance to increase
its share in market and also enhance its customer base by attracting the people who like Welsh
food.
Threat: The biggest threat for entity would be the rival entities who are already offering
food belonging to Welsh cuisine.
Target market and Target audience
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Lyle's has been successfully running within London since many years. The restaurant is
targetting the people of United Kingdom post incorporation of Welsh cuisine in its menu and the
target customer segment is millennials in UK, especially London. The market has been selected
to be UK owing to the lavish lifestyle of people here and the liking of majority of population
towards Welsh foods. Millennial group has been selected keeping in mind the influential
behaviour of personnel belonging to this segment and the attraction of this age group towards
delicious and high quality food items of diverse cuisines (Blakeman, 2018).
Budget
For procuring the materials required for incorporating the Welch cuisine in menu and to
recruit expert chefs who excel at preparing this cuisine, the managers will take a short term loan
of £10000.
Market Strategy
Lyle's will make use of penetrative pricing technique in order to attract the attention of a
large quantum within United Kingdom. This is a strategy which focuses on setting prices which
are comparatively lower than rivals so as to entice customers into trying recently added Welsh
cuisine and availing higher market share.
Marketing Channels
Lyle's will continue to make use of celebrity endorsements and social media platforms
like Facebook, Twitter, Google Plus in order to build a healthy connect with people. The
justification for using social media platforms is that they are an economical way of advertising
new added cuisine and helpful in creating brand recognition as well. This approach also assists in
collecting information which will be helpful in fulfilling customer requirements ideally.
CONCLUSION
It can be summarize from the above report that ideal marketing for products and service
is crucial for an enterprise to succeed in the market. Organisation have been taking assistance
from celebrities endorsements and premium pricing strategies to market their products but are
not able to reap ideal results. This enterprise have been undertaking to launch a new welsh
cuisine line-up so as to capture higher market share and improved revenue. This launch will be
supported with new adopted penetrative pricing strategy and E-marketing tactics.
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RECOMMENDATIONS
It has been recommended that company should take into account the possibility of failure
of the new cuisine among people of this nation and thus prepare a backup plan for its revival.
Further, it has been suggested that enterprise should make sure that the quality of the newly
incorporated items is high so as to retain the customers who once taste this cuisine. For
marketing activities, restaurant is recommended to opt for E-Marketing platforms as they are
economical and convenient.
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REFERENCES
Books and Journals
Blakeman, R., 2018. Integrated marketing communication: creative strategy from idea to
implementation. Rowman & Littlefield.
Fill, C. and Turnbull, S. L., 2016. Marketing communications: brands, experiences and
participation. Pearson.
Kotler and et. al., 2015. Marketing. Pearson Higher Education AU.
Luxton, S., Reid, M. and Mavondo, F., 2015. Integrated marketing communication capability
and brand performance. Journal of Advertising. 44(1). pp.37-46.
Online
Lyle's. 2019. [Online]. Available Through: <https://www.tripadvisor.in/Restaurant_Review-
g186338-d6637143-Reviews-Lyle_s-London_England.html>
Number of restaurants and mobile food service enterprises. 2019. [Online]. Available Through:
<https://www.statista.com/statistics/298871/number-of-restaurants-in-the-united-
kingdom/>
THE GUEST SERIES. 2019. [Online]. Available Through: <https://www.lyleslondon.com/the-
guest-series>
UK restaurant numbers drop for first time. 2019. [Online]. Available Through:
<https://www.theguardian.com/business/2018/jun/28/uk-restaurant-numbers-drop-for-
first-time-in-eight-years>
Use the Price Quality Matrix to Optimize Your Product Pricing. 2019. [Online]. Available
Through: <https://www.intelligencenode.com/blog/use-price-quality-matrix-optimize-
product-pricing/>
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