Integrated Marketing Communication Plan on New Delhi Restaurant

This article discusses the marketing plan for New Delhi Restaurant, including its mission, objectives, target market, marketing mix, pricing strategy, market analysis, SWOT analysis, digital advertising strategies, competition, products and services, sales strategy, and milestones in the process. The article also emphasizes the importance of offering high-quality food and excellent customer service to ensure success.

Integrated Marketing Communication Plan on New Delhi Restaurant
Table of Content
Executive summary.....................................................................................................................................1
Mission........................................................................................................................................................1
Objectives....................................................................................................................................................2
Target market..............................................................................................................................................2
Marketing mix.............................................................................................................................................2
The pricing strategy.....................................................................................................................................2
Market Analysis..........................................................................................................................................2
SWOT analysis............................................................................................................................................5
Digital Advertising Strategies......................................................................................................................6
Competition.................................................................................................................................................6
Products and services..................................................................................................................................7
Strategy for marketing.................................................................................................................................7
The keys to succeed.....................................................................................................................................8
The milestones in the process......................................................................................................................8
Sales strategy...............................................................................................................................................9
Summary on management.........................................................................................................................12
Financial plan............................................................................................................................................12
Appendix...................................................................................................................................................25
References.................................................................................................................................................27
Executive summary
This restaurant is relatively small and owned by private investors in Kitchener Canada, 720
Westmount Rd E unit 9. These restaurant was officially opened on 1st February 2018.2 Most of
the foods offered are Indian but there has a Canadian taste. This Indian cuisine is made from
menus that date back to 400 years ago. The restaurant offers a very good dining and take away. It
is actually one of the most prominent restaurant in Kitchener with a good cuisine, more friendly
staff and proper services. Its use of the freshly collected ingredients puts it at the top.

Mission
New Delhi aims at being a high end restaurant that will offer fast cold or hot foods such as
drinks, salads and sandwiches plus the cuisine of Canada.3
In order to attain this, the restaurant must adhere to a strategy of differentiation of the products
that makes it difficult for the managers to make choices.8 This will efficiently aid them produce
more products with higher profits yet they will be charging more for their foods.
Objectives
Some of the goals that the restaurant seeks to achieve include the following:
 Achieve sales over 600 Dollars by the end of the 1st year.
 Achieve sales over 700 Dollars by the end of the 3rd year.
 Provide enough income for the founders of the restaurants.
 Ensure adequate cash flow in the 1st year.
Target market
The Kitchener community market can be subdivided into three categories
 Personal individuals: those people that come to the restaurant by themselves.
 Indian Families: this may include friends and relatives
 Take outs: people who take their food at homes or other places.16
Marketing mix
This comprises the following approaches:
Pricing: The pricing scheme is 45.0% of the retail price.
Distribution: Customers will either call place their orders then come later to pick up, or come to
the restaurant place their order and wait for it to be done, or come to dine in the restaurant.
Advertising: Banner ads, inserts in registration Guards will be the most effective method of
technique. Public campaigns may also be held to increase sales.18
Customer service care: anything that will make the customers happy should be done even if it
leads to low profits. After some time, this will pay off.9
The pricing strategy
The focus of the strategy on pricing will be to offer healthy, high standard with unique taste
foods.17 Because of that, our products will be slightly charged especially when the consumers of
the products are agreeing that the food is of another standard.

Market Analysis
New Delhi restaurant is its third month since commencing operations. Though it well received
by people in Kitchener, there is still need to improve on marketing to ensure success and
profitability in the future years.1 The most fundamental marketing need will be to offer attractive,
highly innovated Indian dishes, desserts and salads.
Marketing restaurant services.
In this restaurant most services offered will depend on the aforementioned factors. This
restaurant still serves tangible products and have various ways in production processes.4 It is
most likened by customers since the food offered is of good quality. If the services are of low
standard, then customers are likely not to frequent the restaurant.24 In case the quality is so poor
then no customer will come to the restaurant. Tangible foods are called so because they have to
be sampled by the kitchen department first. There is always consistency in the quality of the
foods if the set menu is well organized and properly trained waiters and chefs are put to use in
the restaurant. This should be the case in fast food hotels.
A Pie chart for
Market Analysis
Customers Growt
rate
Local businesses 0.0%
Local workers 2.0%

Other downtown
traffic
1.0% 15,010 15,160 15,312 15,465 15,600 1.00%
Total 1.550% 35,500 36,060 36,600 37,189 37,768 1.55%
Growth rate
To ensure success then New Delhi restaurant must ensure that the growth rate is matched with
the demand of the cuisine. There will be need to expand from one restaurant to three after 5
years.6 The restaurants will then be designed to accommodate more people.
Market requirements
As mentioned earlier, customers need food that is high quality and healthy which appeals to their
aesthetic tastes with no effects and there is a conducive environment in the restaurants.12
Additionally, they will need a good dining environment that make them relax during lunch hours.
All the above requirements must be provided but with ease and less expenditure.16 Facilities such
as take away cans; refrigerators must also be available to enable customers take some meals at
home for cooking or eating.
The trends in the market.
A rise in the interest to eat healthy foods is one of the current trends in the market. Most people
have adjusted to organic foods.23 It has been noticed that a large number of people from Western
Kitchener have adjusted to naturally produced, organic vegetables and meats and hence this is an
opportunity that the restaurant is ready to grab and utilize.21 Tenders have been given to suppliers
and growers of organic foods to ensure adequate consistent supply of the organic foods.
The following are some of the different adjustments the manager of the restaurant has to notice:
 The quality of the food: most customers in the market are preferring high standard
ingredients since most of them have noticed the difference in the foods.19
 Appearance and food presentation: Concurrently, most customers need a high standard
appearance of the foods and well presentation from the employees.
 Health considerations: Since most of the people are now more careful about their health,
since most of them exercise a lot and have joined health clubs hence managers must be
well aware of the healthy options that they should adhere to.
 Selection: most of the people are now selective of the foods they need and thus there
must be quite a number of foods in the menu.17

SWOT analysis
Strength
The restaurant has Indian Foods that are authentic, they are made with fresh ingredients from
scratch and they have a mixture of dried spices and fresh ones.17
Menus that can be adjusted to the client’s preference.
Weaknesses
 There’s limited supply of authentic ingredients, additional source suppliers are required.20
 The market targeted is narrow and thus there is low profits accumulated. Most of the
customers targeted are either Indians, local food lovers and Chinese. Most of the people
in the area do not have a taste for the foods offered and this leads to low profits.
Opportunities
 The number of Chinese and Indian people living in the area is quite high and thus the
restaurant must utilize that advantage. Additionally, there are some other local people
who are just in love with the foods offered at the restaurant and this creates more
customers.10
 Increased globalization which has led to a lot of international tourists and travelers,
increasing clients
 Other dishes have also been introduced and thus this will create a large market for the
restaurant.
Threats
 Lack of skilled personnel affects the quality of the sector.
 Some of the people in Kitchener consider that the Indian food to be so much spicy. This
is quite a huge risk since if the local people have a negative attitude then that means the
attitude translates to the entire population. 21This could be combated by introducing
consumer preference on the spices.
 There are low profits generated from the restaurants.19 These makes the entire operations
ineffective and of low performance.
Digital Advertising Strategies
Printing advertisements in magazines
TV advertisements: branding the restaurants image, idea and strategies
Making newspaper advertisements
Installing billboards
Holding events that promote the restaurant.
Marketing tools

Introduce a web presence in the marketing process by installing:
 Online newsletters and webinars
 Search engines
 Website links and Urls
Competition
New Delhi is facing adverse indirect and direct competition.13 The competition is from every
hotel and restaurant in Canada. Some of the major competitors include the following: Aroma
Fine Cuisine, Raja Fine Cuisine, The Guru Fine Indian Cuisine, Chutneys Fine Indian Cuisine
and many other hotel establishments.8 Additionally, there is competition from the suppliers
especially the grocery stores who offer meals and also high end restaurants like Ambrosia’s.
From the competition posed it will be noticed that the products or services produced have to be
unique as so thus the taste.
Smaller firms are never able to carry out operations efficiently due to the limited funds. This
restaurant wants to increase on profits that will then increase on the marketing techniques.12
Larger firms have advanced marketing techniques due to adequate funds and thus will attract
huge number of customers.6 The most appropriate solution to this situation will be to promote
and advertise on cuisine as well as the local flavor of the foods especially to those people who
think that the food is low standard and unhealthy. The management believes that there is an
opportunity to expand.
Growth and Share
Competitor restaurant Pricing Growth Rate Share market value
Raja Fine Cuisine $16.0 7.000% 15.000%
Chutneys Fine Indian $12.0 6.000% 11.000%
The Guru Fine Indian Cuisine $14.0 7.000% 13.000%
Average $14.0 6.500% 13.000%
Total amount $42.0 19.500% 39.000%

Products and services
Breakfast menu Lunch menu Restaurant creations
Tea. Watercress and Sesame Salad Widbey Loganberry Tarts.
Coffee Caesar Salad Hood River Fresh Apple
Cake
toast, Greek Salad. Coos Bay Hot Crab
Sandwiches
Cereal Italian Eggplant Salad Anacortes Seafood Burgers
Omelets Maury Island Cranberry
Arctic Salad.
Smoked Salmon Sourdough
Bread
Yoghurt Homemade Potato Salad Columbia Salmon Rolls.
Strategy for marketing
Most of the efforts towards marketing are already mentioned above. The major focus is to create
awareness that we actually do exist to all the people around Kitchener.7 We also need to spread
out our powerful theme about the restaurant.
To focus on marketing especially to the local people then we will have to distribute flyers to
people, hold a grand opening party again just to create awareness.
The keys to succeed
We must that every customer who arrives at our restaurant gets the best services that make him
or her come back to our restaurant and even make recommendations about our services to other
interested parties.
Marketing by word of mouth is also an essential strategy in ensuring success.4
The restaurant should also be strategically located closer enough to the market so that people will
able to reach us.
Offering the best and right food is also another opportunity that we must prioritize on.

The milestones in the process
The table below highlights the important milestones in the program, with the corresponding
dates, managers and budgets. The schedule below also emphasizes on planning before
implementation.
Milestones
Milestone Starting
Date
closing
Date
Budget
allocated($)
Manager in
charge
Department
Website
planning
1st Jan 2018 3rd Jan
2018
1000 Design website
Implementati
on of website
2nd Jan
2018
5th Jan
2018
9000 Design website
Recruitment 1st Jan
2018
3rd Jan
2018
2000 Founder Management

Sales 1st Jan 2018 4th Jan
2018
2000 Founder Management
Market
communicatio
n
3rd Jan
2018
6th Jan
2018
5000 Founder Management
Bank loan 12th Jan
2017
1st Jan 2018 0 Founder Management
1st seminar 1st Jan 2018 3rd Jan
2018
2000 Founder Management
2nd seminar 3rd Jan
2018
5th Jan
2018
2000 Marketing Marketing
3rd seminar 4th Jan
2018
5th Jan
2018
2000 Marketing Marketing
Total Budget
sum
25,000
Sales strategy
There will be need to offer quick customer services especially during peak times.19 Here, the
most important key will be managing the crowd, so that we always look not so busy and never
full that we refuse offering services to other customers. Queues will have to go fast. We will
also need a wonderful selection on convenient products that customers do buy all the time.
The most important strategy that will enhance sales will be enabling a repeat business.20 Such
that, those customers who make it to our restaurant will always come back. Additionally, we will
also offer discount cards, regular menu adjustments and special menu meals. By that we have to
keep track of all those foods that sell very good by creating surveys and questionnaires to our
customers to better understand our customers. With the information obtained from the surveys
then we match our foods with the tastes of the people.
Lastly, we shall design a business or home delivery program where we will drop off food just
after an order has been placed by a potential customer. This will improve on the eating patterns
as well increase sales.
Sales predictions
The table and charts below show the forecasts of sales. This forecast is manageable.
Monthly sales

Yearly sales
Sales Forecast
Year
1 2 3
Sales ($)
Breakfast queues 181,585.00 190,664.00 200,197.00
Lunch queues 140,605.00 147,635.00 155,017.00

Coffee queues 113,876.00 119,570.00 125,548.0
Take-away dishes 154,135.00 161,842.00 169,934.00
Others 59,020.00 61,971.00 65,070.00
Total sum of
Sales 649,221.00 681,682.00 715,766.00
Direct Cost of Sales 1 2 3
Breakfast queues 63,555.00 72,452.00 76,075.00
Lunch queues 49,212.00 56,101.00 58,906.00
Coffee queues 39,857.00 45,437.00 47,708.00
Take-away dishes 53,947.00 61,500.00 64,575.00
Others 23,608.00 23,549.00 24,726.00
Direct Cost
of Sales 230,178.00 259,039.00 271,991.00
Summary on management
The restaurant is relatively small and the employees can be categorized into busboys, kitchen
helps, and clerks.22 In total we have nine workers, the owner, four clerks, two chef and two
delivery boys.
The owner will come to the restaurant by 7 o’clock in the morning then leaves at 6 in the
evening.17 Some employees, especially those appointed by the owner will play a role of
supervising the other employees.

Financial plan
The initial investment from the founder was $20000. He was also funded by the bank, a loan of
$30,000 to pay within five years and also a 10,000 loan from a friend with no interest.8 The loan
was to be secured by the owner of the business.
Assumptions
General assumptions
1 2 3
Plan Month 1 2 3
Current Interest
Rate
10.00% 10.00% 10.00%
Long-term Interest
Rate
10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0 0 0
Key financial indicators
Some of the key financial indicators will include the adjustments in the sales, gross margin and
the expenses.2 The chart below explains those indicators
Benchmarks

Break-even Analysis
Monthly Revenue Break-even $39,158
Assumptions:
Average Percent Variable Cost 35%
Estimated Monthly Fixed Cost $25,275
The projected Profits and losses
Here we assume a slightly higher gross margin as compared to the industry standards for these
restaurants, since we do not have the full meals. The kitchen staff, delivery boys are excluded
from the cost of sales, to make simple conclusions.3

Since, our restaurant is new in the market, the profitability has been adjusted to normality by
adding quite a huge amount on the expenses.10 This gives an overview of the expenses that we
are anticipating. If this does not happen then our restaurant will be more profitable.
Monthly profits
Yearly profits
Monthly Gross profits

Gross Margin Yearly
Pro Forma Profit and Loss
1 2 3
Sales($) 649,221.0 681,682.0 715,766.0
Cost of Sales 230,178.0 259,039.0 271,991.0
kitchen expenses 36,000.0 40,000.0 45,000.0
Total Co Sales 266,178.0 299,039.0 316,991.0

Gross Margin 383,043.0 382,643.0 398,775.0
Gross Margin percentage 59.000% 56.130% 55.710%
Expenses
Payroll 186,000 135,000 170,000
Sales and Marketing and
Other Expenses
81,000 57,500 76,000
Depreciation 0 0 0
Utilities 2,400 2,400 2,400
Insurance 6,000 6,600 7,200
Payroll Taxes 27,900 20,250 25,500
Other 0 0 0
Total Operating Expenses 303,300.0 221,750.0 281,100.0
Profit Before Interest and
Taxes
79,743.0 160,893.0 117,675.0
EBITDA 79,743.0 160,893.0 117,675.0
Interest Expense 3,678.0 1,257.0 0
Taxes Incurred 22,819.0 47,891.0 35,303.o
Net Profit 53,245.0 111,745.0 82,373.0
Net Profit/Sales 8.200% 16.390% 11.510%

Projected Cash flow
These restaurants will remain with enough cash throughout the first three years.15 For the 1st and
2nd year the cash will be used to upgrade the equipment and facilities in the restaurant.
Cash
Pro Forma Cash Flow Year 1 Year 2 Year 3
Cash Received
Cash from Operations
Cash Sales $649,221 $681,682 $715,766
Subtotal Cash from Operations $649,221 $681,682 $715,766
Additional Cash Received
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $15,000 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $664,221 $681,682 $715,766
Expenditures Year 1 Year 2 Year 3
Expenditures from Operations

Cash Spending $186,000 $135,000 $170,000
Bill Payments $400,625 $436,393 $462,602
Subtotal Spent on Operations $586,625 $571,393 $632,602
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $19,868 $25,132 $0
Other Liabilities Principal Repayment $10,000 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $40,000 $0
Purchase Long-term Assets $0 $50,000 $0
Dividends $25,000 $25,000 $60,000
Subtotal Cash Spent $641,493 $711,525 $692,602
Net Cash Flow $22,728 ($29,843) $23,164
Cash Balance $50,928 $21,086 $44,250
The projected balance sheet
Pro Forma Balance Sheet
Year 1 Year 2 Year 3
Assets
Current Assets
Cash $50,928 $21,086 $44,250
Inventory $24,979 $28,111 $29,516
Other Current Assets $2,000 $42,000 $42,000
Total Current Assets $77,907 $91,197 $115,766
Long-term Assets
Long-term Assets $24,000 $74,000 $74,000
Accumulated
Depreciation $0 $0 $0
Total Long-term
Assets $24,000 $74,000 $74,000
Total Assets $101,907 $165,197 $189,766

Liabilities and Capital Year 1 Year 2 Year 3
Current Liabilities
Accounts Payable $34,330 $36,006 $38,203
Current Borrowing $25,132 $0 $0
Other Current
Liabilities $0 $0 $0
Subtotal Current
Liabilities $59,462 $36,006 $38,203
Long-term Liabilities $0 $0 $0
Total Liabilities $59,462 $36,006 $38,203
Paid-in Capital $20,000 $20,000 $20,000
Retained Earnings ($30,800) ($2,555) $49,191
Earnings $53,245 $111,745 $82,373
Total Capital $42,445 $129,191 $151,563
Total Liabilities and
Capital $101,907 $165,197 $189,766
Net Worth $42,445 $129,191 $151,563
The Business ratios
Ratio Analysis
Year 1 Year 2 Year 3
Industry
Profile
Sales Growth 0.00% 5.00% 5.00% 7.60%
Percent of Total Assets
Inventory 24.51% 17.02% 15.55% 3.60%

Other Current Assets 1.96% 25.42% 22.13% 35.60%
Total Current Assets 76.45% 55.20% 61.00% 43.70%
Long-term Assets 23.55% 44.80% 39.00% 56.30%
Total Assets 100.00% 100.00% 100.00% 100.00%
Current Liabilities 58.35% 21.80% 20.13% 32.70%
Long-term Liabilities 0.00% 0.00% 0.00% 28.50%
Total Liabilities 58.35% 21.80% 20.13% 61.20%
Net Worth 41.65% 78.20% 79.87% 38.80%
Percent of Sales
Sales 100.00% 100.00% 100.00% 100.00%
Gross Margin 59.00% 56.13% 55.71% 60.50%
Selling, General &
Administrative Expenses
50.80% 39.74% 44.18% 39.80%
Advertising Expenses 5.08% 3.67% 5.59% 3.20%
Profit Before Interest and
Taxes
12.28% 23.60% 16.44% 0.70%
Main Ratios
Current 1.31 2.53 3.03 0.98
Quick 0.89 1.75 2.26 0.65

Total Debt to Total Assets 58.35% 21.80% 20.13% 61.20%
Pre-tax Return on Net
Worth
179.21% 123.57% 77.64% 1.70%
Pre-tax Return on Assets 74.64% 96.63% 62.01% 4.30%
Additional Ratios Year 1 Year 2 Year 3
Net Profit Margin 8.20% 16.39% 11.51% n.a
Return on Equity 125.44% 86.50% 54.35% n.a
Activity Ratios
Inventory Turnover 10.91 9.76 9.44 n.a
Accounts Payable
Turnover
12.67 12.17 12.17 n.a
Payment Days 27 29 29 n.a
Total Asset Turnover 6.37 4.13 3.77 n.a
Debt Ratios
Debt to Net Worth 1.40 0.28 0.25 n.a
Current Liab. to Liab. 1.00 1.00 1.00 n.a
Liquidity Ratios
Net Working Capital 18,445 55,191 77,563 n.a
Interest Coverage 21.68 128.04 183,568,059.24 n.a

Additional Ratios
Assets to Sales 0.16 0.24 0.27 n.a
Current Debt/Total Assets 58% 22% 20% n.a
Acid Test 0.89 1.75 2.26 n.a
Sales/Net Worth 15.30 5.28 4.72 n.a
Dividend Payout 0.47 0.22 0.73 n.a
Appendix
Sales Forecast
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Sales ($)
Breakfast
lines
0% 3,960 8,515 10,85513,01513,73516,61514,63513,73520,80821,73223,68820,292
Lunch
lines
0% 9,240 9,756 10,47611,15511,69511,87510,52510,61513,31514,21514,90412,834
Coffee
lines
0% 7,920 8,495 8,855 9,095 9,275 9,575 8,135 8,195 10,41611,15511,96510,795

Take-out
dishes
0% 11,00012,14513,31513,76513,67513,85511,24511,33512,77513,31513,40514,305
Other 0% 3,212 3,891 4,350 4,703 4,838 5,192 4,454 4,388 5,731 6,042 6,396 5,823
Total
Sales
35,33242,80247,85151,73353,21857,11248,99448,26863,04566,45970,35864,049
Direct
Cost of
Sales
Month
1
Month
2
Month
3
Month
4
Month
5
Month
6
Month
7
Month
8
Month
9
Month
10
Month
11
Month
12
Breakfast
lines
35%1,386 2,980 3,799 4,555 4,807 5,815 5,122 4,807 7,283 7,606 8,291 7,102
Lunch
lines
35%3,234 3,415 3,667 3,904 4,093 4,156 3,684 3,715 4,660 4,975 5,216 4,492
Coffee
lines
35%2,772 2,973 3,099 3,183 3,246 3,351 2,847 2,868 3,646 3,904 4,188 3,778
Take-out
dishes
35%3,850 4,251 4,660 4,818 4,786 4,849 3,936 3,967 4,471 4,660 4,692 5,007
Other 40%1,285 1,556 1,740 1,881 1,935 2,077 1,782 1,755 2,293 2,417 2,558 2,329
Subtotal
Direct
Cost of
Sales
12,52715,17516,96518,34218,86820,24917,37117,11322,35223,56324,94522,708

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