Foodservice Marketing Mix Strategy

This assignment delves into the complexities of developing a successful marketing mix strategy for the Australian foodservice market. It examines academic literature on the concept of the marketing mix (4Ps) and its evolution in the context of social marketing and open business models. The analysis draws upon data about market growth and trends in the industry to provide insights into effective strategies for businesses operating within this sector.

A business plan for a new venture applying
principals of entrepreneurship

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................3
BUSINESS GOALS .......................................................................................................................5
MANAGEMENT PLAN ................................................................................................................5
MARKET RESEARCH AND ANALYSIS ...................................................................................6
MARKETING PLAN .....................................................................................................................8
OPERATIONAL PLAN ...............................................................................................................11
FINANCIAL PLAN ......................................................................................................................12
Action Plan.....................................................................................................................................17
References......................................................................................................................................18
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EXECUTIVE SUMMARY
Entrepreneurship is a self-dependent approach of individuals to set up their own business ahead of the streamline
functioning like providing services in a company or assisting in some other business. The basic purpose behind entrepreneurial
venture is to develop certain tactics which will help in overcoming certain needs and demands of the society or potential
customer. The Royal Chauffeur is one such entrepreneurial venture which aims to provide delicious food with exclusive services
to customers without affecting their pockets. People nowadays are aiming to get good quality products and services without
paying huge amounts. The services which will be provided in this restaurant include entertainment, a dance floor apart from the
eating area and a band performance every weekend.
Delicious food when provided with great entertainment and music becomes much more relaxing and refreshing. The
main aim or vision behind this restaurant is to never let any customer's expectations and satisfaction level down. Before making
any decision or strategic implementation, it is important to assess the requirements and analyse the current market situations.
There has to be development of goals, certain plans and proper administration so that correct implementation takes place. These
steps help in reducing the risk or probability of failure for the organisation and bring in more effectiveness in the entrepreneurial
decisions. Hence, a business plan has been developed for gaining these attributes and advantages.
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BUSINESS GOALS
Entrepreneur make a decision for opening a restaurant which named as The Royal Chauffeur. Therefore, goal of The
Royal Chauffeur, business entity to offer huge variety of foods to there customers such as Mexican, Chinese, Italian, Indian and
Continental. In addition to this, The services which will be provided in this restaurant include entertainment, a dance floor apart
from the eating area and a band performance every weekend. Further, from the investigation it has been found that there are
many small restaurant who arrange entertainment facility for those customer who pay for it such as musical show (Bryman and
Bell, 2015.). In accordance to this the entrepreneurship has decided for the entertainment dance floor and a band performance
every weekend will be organized without charging extra amount from customers. This Unique concept will assist business entity
in making the ambiance of the profitable.
Goals and objectives of the business
The main goal of The Royal Chauffeur is to provide high quality services to its customer, in order to attract large
number of customer (Saunders, 2011). In addition to this free entertainment facility is organized by restaurant at free of cost
which lead to enhance the satisfaction level of customers.
The foremost priority of The Royal Chauffeur is to provide excellent services to its targeted customer and surrounding
community by establishing a flourishing, impulsive social enterprise.
Goals and Objectives includes
 Creating an attractive diverse menu
 Offering nutrient, fairly priced and diverse food options
 Delivering high quality customer services that create strong relationship.
 Providing an entertainment facility such as dance floor and band performance every weekend at free of cost.
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MANAGEMENT PLAN
A management plan is a written strategy for the way to get restaurant where it want. There is some benefit of
management plan that is it help in guide the way for achieving goal. Further it allow everyone within a business to clearly see
their place which include the way to report and to whom to report. At The Royal Chauffeur highly skilled employees are hired
in order to provide high quality services to customer.
The management plan consist of the following elements
 Ownership: Owner is mainly accountable for the day to day operations of the business finance. Further owner of an
organization make decision and also responsible for the general direction of the business. Further it take on an active role
in the restaurant operations.
 General manager: The general manager plan significant role in order to carry out day to day operations. They are
responsible for hiring new staff and provide them training and development facility (Osterwalder and Pigneur, 2010).
Further it ensure that The Royal Chauffeur restaurant is maintained in proper operating condition and all things run
smoothly.
 Front of house: Front of house works at operational level and and there duties fall into two area that is back of house
and front of house. Further, they are accountable for the restaurant dining area, and it set up services, and interact with
kitchen staff on customer waiting.
 Executive chef: The executive chef is a person who is accountable for back of house operations. Further it includes
hiring kitchen staff and create menu list. Further they purchase food and assist in determine the price accountable should
place for its meal. Along with this it also report to the general manager of all its purchase items.
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MARKET RESEARCH AND ANALYSIS
Before starting the operations in any industry it is important for entrepreneur to research the prevailing market environment and
challenges in the sector. With the support it this, the owner of The Royal Chauffeur can easily set strategy for the growth and
development of its business. Further in the Australia restaurant sector, entities are facing immense competitive challenges in the
market. So it is essential for business planner to conduct market research and measure the external market condition by applying
the application of Porter's 5 force model which has been covered below:
 Threats of new entrants: For the new entrepreneurs, there is no barrier in the restaurant industry for starting a new
business. However, it become risk for the organization who already exist in this market (Vuong, 2014). For instance
there is high risk to retain their position in competitive world for Shack shack, Pidgin restaurant etc. Further there is high
demand of high quality meal by customers, high yield to entities to run their own business in restaurant sector. On the
other side, enterpreneur is setting its own restaurant with unique concept but there is high competitive presumer from the
effectively established restaurant such as waterfall kebab centre, Pidgin, primeur etc which make very difficult for The
Royal Chauffeur to establish new restaurant.
 Threats of substitute products: At Australia there are prefect substitutes which offered by all the restaurant and it is
available at competitive prices for the customers. Along with this, there are many competitor who are serving healthier
and different combination meal which is one of the critical factor for the The Royal Chauffeur to achieve success. Here
for the proposed The Royal Chauffeur it has been decided to offer its inbound and outbound customer nutritional and
tasty food of different variety such as Italian, Chinese, British etc. further The Royal Chauffeur is providing free
entertainment facility that is dance floor, weekend band performance. Hence it support in retaining young generation
people for longer time.
 Bargaining power of supplier is low: The Royal Chauffeur buy raw materials form its different suppler who deliver
them high quality ingredient at normal price. Further it can be stated that quality of food is depended on the ingredient
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which is used by chef for preparing meal (Growth rate of restaurant in Australia. 2016). Therefore, it is essential for the
The Royal Chauffeur to make buy raw material from those suppler who provide good quality of ingredients. Further in
restaurant industry there are large number of supplier who sell food raw material therefore their bargaining power is not
in their hands. This means that if any supplier sale raw material at high price then firm can switch to other supplier for
purchasing food ingredient. Hence, The Royal Chauffeur is opening new restaurant which goal is to deliver quality
food to its customer for this purpose it need to buy fresh raw material at low price to hence profit.
 Bargaining power of customers: Customers bargaining power is extremely bet on the differentiation level in the
industry. Therefore in restaurant industry of Australia, customer have high bargaining power because there are various
restaurant who provide different type of meal in order to satisfy their customers. So customer will mainly prefer to
choose restaurant where they get high quality food at low price. Further, the quality of product attract large number of
customer including traveller as well as visitors. As for the proposed restaurant targeted customer are young people and
middle class people. OR also kept lower price of there products and provide entertainment at free of cost which is
appropriate for targeting large number of customer.
 Threat of competitive rivalry: The strength of competitive threat is high for the restaurant industry. It is due to there are
large number of restaurant at Australia who are serving multi cuisine and high quality product to customers. There are
some competitor of The Royal Chauffeur who are offering same type of products and services. To remain in
competitive pressure The Royal Chauffeur has decided to offer high quality product at reasonable price and provide free
entrainments. Along with this, high quality food and online food services is best strategy for The Royal Chauffeur to
remain in competitive market.
MARKETING PLAN
 Marketing is a function which enhances the distribution of products and services to the customers (Fan, Lau and
Zhao, 2015). The Royal Chauffeur can use a marketing plan with certain strategic tools like marketing mix and STP
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(segmentation, targeting and positioning) so that potential customers will be more aware about the concerned restaurant
and its services.
 Elements of the
marketing mix
 Description
 Product/service  The Royal Chauffeur is a restaurant with an in-tact dancing
floor for the customers which is useful when the restaurant is
hosting parties or celebration events. Products and services
are considered as the primary components of the marketing
mix. Proper idea regarding the product or service helps in
increasing the effectiveness of the marketing plan.
 Price  Price is a factor which is considered most important when
taking customer perspective. The company can use different
pricing strategies like creaming, skimming, penetration or
marginal pricing. It is also important that a competitor
analysis is performed for gaining an idea about the pricing
standards of the competitors (Khan, 2014). Furthermore, the
benefits and profits of the organisation should not be
underestimated when considering pricing strategy.
 Place  Marketing aims to spread information regarding products
and services of the company to the customers. Place
component depicts the distribution and placement of
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products with respect to their accessibility. Since, this
company is a restaurant and provides services, then
distribution is limited to the suppliers and their approach of
raw materials (Hanssens and et. al., 2014). When proper
distribution channels are developed then production of the
food will be quicker and in time.
 Promotion  Promotional strategies are the tactics which are used by
organisation for communicating the features of products and
services to the customers in different parts of the target
markets. Some of the promotional strategies include
sponsorships, personal selling or distribution, posters,
billboards, campaigns, public relations, social media
marketing, etc. The more a company uses promotional
strategies, greater are the chances for potential customers to
know about the same (Tapp and Spotswood, 2013).
 Physical evidence  The elements of extended marketing mix are physical
evidence, people and process. The production of a service or
product involves different components and individuals.
Physical evidence deals with the perseverance of business in
the concerned markets. The presence or absence of the
company in the current scenario helps in determining the
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physical evidence.
 Process  Customer satisfaction can only be attained when the entire
process involved in production is very efficient. Quality of
final outcome must be able to fulfil the criteria of customer
requirements and demands (Sheau-Ting, Mohammed and
Weng-Wai, 2013). Hence, systems and processes which are
involved in the service production of The Royal Chauffeur
should be initiated in such a way that costs are minimised
and efficiency of the organisation is not affected.
 People  People that are indirectly or directly related with the
organisation or company should not be adversely affected by
the marketing plan. If restaurant staff or employees are not
happy or satisfied by the level of treatment provided by the
organisation heads then their productivity is affected
(Diamantopoulos and et. al., 2014). Simultaneous drawback
is experienced by the company. Being a service oriented
venture, there has to be proper facilitation of employees.
This will yield an internal competitive advantage and
strengthen the business position in operational markets.

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 Segmentation, Targeting and Positioning (STP) is an effective strategy for developing a marketing plan. The
product or service which needs to be communicated to the audience will be marketed properly only when there is proper
idea about the preferences, choices and characteristics of customers.
 Parameter  Description
 Segmentation  Demographic segmentation has been performed for
developing the marketing strategy of The Royal Chauffeur.
This segmentation will concentrate on the potential
customers that belong to young age group i.e. 18-30 years.
Furthermore, families are also considered in this
segmentation. Another criteria for classifying customers
which has been considered is geographical segmentation
that is bounded for individuals residing specifically in
Australia.
 Targeting  The targeting strategy helps in evaluating the potential and
benefits of concerned service and product. The elements or
components which are required to be added in the marketing
strategy are identified through this strategy with reference to
selected segment (Hanlon, 2013). Money or cost and
uniqueness of the restaurant have to be considered in this
strategy.
 Positioning  Positioning strategy involves the development of perceptual
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maps which need to be designed for classifying and
positioning the concerned product and service of the
company. There are different parameters selected for this
strategy which help in understanding the strategic placement
of the company in concerned markets (Simkin, 2016).
OPERATIONAL PLAN
For carrying out the operational plan of The Royal Chauffeur more effectually business entity needed head chef, quality
and management team. Along with this is also needed serving staff in order to carry out day to day operation in systematic
manner. For this purpose The Royal Chauffeur need to hire staff who is highly competent and experienced. Moreover, in food
sector customer satisfaction is most important and it is mainly influenced by the manner in which staff member provide services
to its customer (Vuong, 2014). The main reason behind this is that customer of restaurant have great interaction with staff
member and it make there perception level about the services which is offered to them. Along with this taste and health food is
one of the important aspects which are considered by the customers at the time of choosing restaurant for dinner. Along with
this organization can focus on advertising its vacant position at newspaper and social networking sites. Through this,
entrepreneur can easily hire highly skilled candidates for its new business.
FINANCIAL PLAN
Financial feasibility
It is important for The Royal Chauffeur to measure its project is financial viable. For this purpose study need to conduct by
enterprenuer through taking into account the following facts
Facts:
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 Increase of sale upto 14% till the end of the year
 Charges from the customer is £65 and restaurant will be open for 365 days.
 Expenses which include marketing and promotional is upto 8% every yea
Input data
Values in A$
British 10
Indian 22
Mexican 12
Chinese 21
Intercontinental 17
British 6
Indian 9
Mexican 7
Chinese 7
Intercontinental 8
Weekly cost data
British 42
Indian 63
Mexican 49
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Chinese 49
Intercontinental 56
Monthly cost data Values in A$
British 168
Indian 252
Mexican 196
Chinese 196
Intercontinental 224
Revenue per person July
Augu
st
Septem
ber
Octob
er
Nove
mber
Dece
mber
Janua
ry
Febru
ary
Marc
h April May June Total
British 3000 3750 4875 5362 7239 7963 7976 8774 9651 12064 12080 18120
10085
9
Indian 4400 4425 4450 4477 6043 6072 6102 6133 6164
8630.9
3 8665 12997 78563
Mexican 2400 2413 2427 2442 3296 3312 3328 3345 3362 4707.7 4726 7089 42852
Chinese 5250 5274 5298 5323 7186 7214 7242 7271 7302 10223 10255 15383 93225
Intercontinental 3400 3419 3439
3458.
65 4669.1 4688 4708 4727 4747 6646 6665 9998 60569
Revenue 18450 19283 20491 21064 28436 29251 29358 30252
3122
9 42273 42393 63590 37607
15

Values in A$
Cost of goods
sold July
Augus
t
Sept
embe
r
Oct
ober
Nove
mber
Dece
mber
Januar
y February March April May June
British 1800 2250 2925 3218 4344 4778 4786 5265 5791 7239 7248 10872
Indian 1800 1810 1821 1832 2473 2484 2496 2509 2522 3531 3545 5317
Mexican 1400 1408 1416 1425 1923 1932 1942 1951 1962 2746 2757 4136
Chinese 1750 1758 1766 1775 2396 2405 2414 2424 2434 3408 3419 5128
Intercontinental 1600 1609 1618 1628 2197 2206 2216 2225 2234 3128 3137 4705
8350 8836 9546 9876 13332 13806 13854 14374 14943 20051 20106 30158
Expense percentage of
revenue July
Augus
t
Septemb
er
Octob
er
Nove
mber
Decem
ber
Janua
ry
Febru
ary March April May June
Marketing cost 0.54% 0.52% 0.49% 0.47% 0.35% 0.34% 0.34% 0.33% 0.32% 0.24% 0.24% 0.16%
Administration expenses 2.71% 2.59% 2.44% 2.37% 1.76% 1.71% 1.70% 1.65% 1.60% 1.18% 1.18% 0.79%
Finance cost 1.36% 1.30% 1.22% 1.19% 0.88% 0.85% 0.85% 0.83% 0.80% 0.59% 0.59% 0.39%
Insurance 1.08% 1.04% 0.98% 0.95% 0.70% 0.68% 0.68% 0.66% 0.64% 0.47% 0.47% 0.31%
Rent 0.80% 0.78% 0.73% 0.71% 0.53% 0.51% 0.51% 0.50% 0.48% 0.35% 0.35% 0.24%
Pay and wages
54.20
%
51.86
% 48.80%
47.48
%
35.17
%
34.19
%
34.06
%
33.06
%
32.02
%
23.66
%
23.59
%
15.73
%
Depreciation 4.52% 4.32% 4.07% 3.96% 2.93% 2.85% 2.84% 2.75% 2.67% 1.97% 1.97% 1.31%
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Preliminary expenses
written off 9.03% 8.64% 8.13% 7.91% 5.86% 5.70% 5.68% 5.51% 5.34% 3.94% 3.93% 2.62%
Other operating
expenses 5.42% 5.19% 4.88% 4.75% 3.52% 3.42% 3.41% 3.31% 3.20% 2.37% 2.36% 1.57%
Budget plan
July August
Septem
ber October
Novem
ber
Decemb
er
Januar
y
Februa
ry March April May June
20000 24690 30211.8 36940
44241.0
5 58912 74398 89991 106476 123937 152441 181065
Sales 18450 19282.8 20490 21063 28435 29250 29358 30252 31229 42273 63590
Total 38450 43972.8 50702.4 58004 72676 88163 103757 120243 137705 166210
Opening
balance 244655
Expen
se
Market
ing
expens
es 80 80 80 80 80 80 80 80 80 80 80 80
Admin
istratio
n
expens
es 400 400 400 400 400 400 400 400 400 400 400 400
Financ 200 200 200 200 200 200 200 200 200 200 200 200
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e cost
Insura
nce 160 160 160 160 160 160 160 160 160 160 160 160
Rent 120 120 120 120 120 120 120 120 120 120 120 120
Salary
and
wages 10000 10001 10002 10003 10004 10005 10006 10007 10008 10009 10010 10011
Deprec
iation 666 666 666 666 666 666 666 666 666 666 666 666
Prelim
inary
expens
es
written
off 1333 1333 1333 1333 1333 1333 1333 1333 1333 1333 1333 1333
Other
operati
ng
expens
es 800 800 800 800 800 800 800 800 800 800 800 800
Sum of
expens
es 13760 13761 13762 13763 13764 13765 13766 13767 13768 13769 13770 13771
Net
balanc
e 24690 30211.8 36940.4 44241 58912 74398 89991 106476 123937 152441 181065 230884
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Output sheet or cash flows for years
Income statement
Value in A $
2016 2017 2018 2019 2020
Revenue 376070 564105 705132 881415 1101768
Less: Cost of goods sold 177231 33987 42484 53105 66382
Gross profit 198839 530118 662648 828309 1035387
Expenses
Marketing expenses 1200 2039 2549 3186 3983
Administration expenses 6000 10196 12745 15932 19914
Finance cost 3000 5098 6373 7966 9957
Insurance 2400 4078 5098 6373 7966
Rent 1800 3059 3824 4779 5974
Salary and wages 120000 138000 158700 182505 209881
Depreciation 10000 16994 21242 26553 33191
Other operating expenses 12000 84616 105770 132212 165265
Sum of expenses 156400 264080 316301 379506 456132
PBIT 42439 266038 346347 448804 579255
Tax 0 53208 69269 89761 115851
Net profit 42439 212830 277078 359043 463404
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2016 2017 2018 2019 2020
Marketing expenses 0.36% 0.36% 0.36% 0.36% 0.36%
Administration expenses 1.81% 1.81% 1.81% 1.81% 1.81%
Finance cost 0.90% 0.90% 0.90% 0.90% 0.90%
Insurance 0.72% 0.72% 0.72% 0.72% 0.72%
Rent 0.54% 0.54% 0.54% 0.54% 0.54%
Salary and wages 36.15% 15.00% 15.00% 15.00% 15.00%
Depreciation 3.01% 3.01% 3.01% 3.01% 3.01%
Other operating expenses 3.62% 3.62% 3.62% 3.62% 3.62%
ACTION PLAN
In action plan there are some step which organization need to followed in order to open new restaurant.
Create a revenue plan:
 Identify your sources of revenues: Here The Royal Chauffeur need to identify its sources of revenue and it need to
plan the price of its products and services.
 Identify targeted customer: It is important for The Royal Chauffeur to identify its target customer that is middle class
people and young generation. If company know its profile then it can easily save time and money at the time of acquiring
(Collis and Hussey, 2013.).
 Create a unique position in market: Here, The Royal Chauffeur need to identify the biggest problem at marketplace
and to inform people the way they solve problem.
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 Task action: At last organization need to take action in order to implementation of its business plan. Here it need to
monitor its plan and make changes if required in business plan.
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REFERENCES
Books and Journals
Diamantopoulos, A. and et. al., 2014. Drivers of export segmentation effectiveness and their impact on export
performance. Journal of International Marketing. 22(1). pp.39-61.
Fan, S., Lau, R. Y. and Zhao, J. L., 2015. Demystifying big data analytics for business intelligence through the lens of
marketing mix. Big Data Research. 2(1). pp.28-32.
Hanlon, A., 2013. The Segmentation, Targeting and Positioning model-Smart Insights Digital Marketing Advice.
Hanssens, D. M. and et. al., 2014. Consumer attitude metrics for guiding marketing mix decisions. Marketing Science. 33(4).
pp.534-550.
Khan, M. T., 2014. The concept of'marketing mix'and its elements (a conceptual review paper). International journal of
information, business and management. 6(2). p.95.
Sheau-Ting, L., Mohammed, A. H. and Weng-Wai, C., 2013. What is the optimum social marketing mix to market energy
conservation behaviour: an empirical study. Journal of environmental management. 131. pp.196-205.
Simkin, L., 2016. 11 Segmentation. The Marketing Book, p.271.
Tapp, A. and Spotswood, F., 2013. From the 4Ps to COM-SM: reconfiguring the social marketing mix. Journal of Social
Marketing. 3(3). pp.206-222.
Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.
Chesbrough, H., 2013. Open business models: How to thrive in the new innovation landscape. Harvard Business Press.
Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and postgraduate students. Palgrave
macmillan.
Osterwalder, A. and Pigneur, Y., 2010. Business model generation: a handbook for visionaries, game changers, and
challengers. John Wiley & Sons.
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