Marketing Plan for Café Primo: Boosting Sales & Customer Value

This marketing plan report focuses on enhancing the business and financial aspects of Café Primo, an Italian restaurant located in Victor Harbor, Australia. The plan includes a PESTLE and SWOT analysis to identify opportunities and develop marketing strategies aimed at increasing food sales by 10% within a year. Key objectives involve enhancing customer services through staff training, assuring high food quality through total quality management, and implementing extensive promotional offers like discounts and coupons. The target market includes local residents, young people, college students, and working professionals, with a positioning strategy focused on providing the best quality and variety of food with excellent customer service. The marketing mix strategy emphasizes product quality assurance, price penetration, multi-channel distribution, and promotional activities via social media and printed advertisements. The plan also covers marketing implementation, evaluation, and control measures to ensure effective execution and achievement of the set objectives. This document is available on Desklib, a platform offering a variety of study tools for students.

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MARKETING MANAGEMENT
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5/29/2019

MARKETING MANAGEMENT 1
Executive summary
Café primo is an Italian restaurant for which marketing plan would be developed in this report.
Café primo is a restaurant in Australia located in Victor Harbor, Australia. The restaurant
initiated in 1998 with a customer experiencing trendy café seating. The key products offered by
Café primo includes a variety of pasta, Burgers, grills, pizza, Sea Food, Chicken, Salads, Meat,
and various other options
Marketing goal for this marketing plan would be increased in the sale of food by 10 per cent in
the next one year. For this, the marketing objectives were enhanced customer services, food
quality assurance, and extensive promotional offers.
The key strategy for the food and services would be product quality assurance. This would
include improving the food taste and quality through experiment and total quality management.
the appropriate product strategy for café primo would be product development strategy. Price is
another key element and the issue that was faced by the café while analysing customer feedback.
the pricing strategy of café primo needs to be revised and the developing pricing strategy would
be price penetration strategy. The distribution strategy for café primo would be through various
channels to increase the business and sale of the café that is physical or traditional and online
distribution channel. Key promotional activities that the company would include are social media
platforms that will include providing updating information and promotional campaigns through
social media platforms and printed advertisement to keep the promotional budget at low and
make the promotional activity more effective.

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Contents
Executive summary.........................................................................................................................1
PESTLE analysis.............................................................................................................................3
Introduction......................................................................................................................................5
Case Background.............................................................................................................................5
Analysis of internal marketing environment and development of SWOT......................................6
SWOT analysis............................................................................................................................6
Strengths..................................................................................................................................6
Weakness.................................................................................................................................6
Opportunities...........................................................................................................................7
Threats.....................................................................................................................................7
Competitive advantages...............................................................................................................7
Marketing goals and objectives.......................................................................................................8
Marketing strategy...........................................................................................................................9
Target market, segmentation and positioning..............................................................................9
Marketing mix strategy..............................................................................................................10
Product strategy.....................................................................................................................10
Pricing strategy......................................................................................................................11
Place strategy.........................................................................................................................12
Promotion strategy.................................................................................................................13
Marketing implementation.............................................................................................................13
Evaluation and controls.................................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................18

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PESTLE analysis
1. Political factors –
The corporate tax of the nation that is around 30 per cent can adversely affect the profit margins
of the company, which can be a threat to the company. Moreover, the political stability of the
nation is quite high which can be a threat too (theglobaleconomy, 2019) (theglobaleconomy,
2019).
2. Economic factors
Australia GDP is in growth that it seems to be increasing since years and is expected to increase
in the near future as per the statistics. This reflects that the people would be spending on
entertainment and luxury products, which makes a restaurant in the nation to have a good
opportunity (theglobaleconomy, 2019).
3. Social factors
The social trends in the nation seem to be changing since years people have become interested in
spending money in the entertainment industry and are interested in spending time at cafes with
their close one. This can be an opportunity for the Italian restaurant in the region. However, the
increasing obesity rate could be a threat to the company due to the increase of health conscious
people.
4. Technological factors
Technology is the key element of the nation as it is one of the technologically advanced nations.
This could be the opportunity for café Primo to develop technically as well. However, victor

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Harbor is a small region of the nation that does not make technology advanced organization to a
large extent.
5. Legal factors
For food and service industry, various laws and regulation applicable could be a threat for the
company to abide strictly. The legal rules associated with café primo would be food and safety
act, privacy and security act, and labour acts.
6. Environmental factors
The environment is the element in which an organization exists, and the company needs to
consider the activities to prevent environment. The key issue related to restaurant related to
environmental factors would be waste disposal, water consumption and so on for which the
company considered various corporate social responsibilities (Balmer & Abratt, 2016).

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Introduction
The report purpose and scope is the development of the marketing plan of an Italian restaurant in
Australian suburbs. Marketing is the sub part of a business plan, and the purpose of the
marketing plan is to enhance the business in the form of popularity and financial aspects. Café
primo is an Italian restaurant for which marketing plan would be developed in this report. The
report would include analysing the external and internal business environment for the restaurant
to identify the opportunity to develop a marketing plan. For this purpose, tools like PESTLE
analysis and SWOT analysis would be used and to develop the plan the marketing objective
should be defined according to which the marketing strategies would be developed. Moreover,
marketing implementation, evaluation and control would be discussed as there would be no use
to plan the strategy if it is not implemented properly (Craig & Douglas, 2015).
The key limitation for this report would be the limited access to the information that is the café is
located in a small region of Australia that is Victor Harbor, and getting information related to
that would be difficult and limited in scope.
Case Background
Café primo is a restaurant in Australia located in Victor Harbor, Australia. The restaurant
initiated in 1998 with a customer experiencing trendy café seating. Café primo initiated to offer
Italian food to the customer by starting offering pizza or pasta with $4.90 for lunch. The
company expands its business through franchisee. The company offers good quality meals that
are at reasonable prices and are prepared using fresh and healthy ingredients (caffeprimo, 2019).

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The food and beverage industry is growing at a fast pace in Australia, and in Victor Harbor there
are various options for restaurants and café that are offering Italian, Australian vegetarian food;
for instance, Trattoria Lungomare (tripadvisor, 2019). The key products offered by Café primo
includes a variety of pasta, Burgers, grills, pizza, Sea Food, Chicken, Salads, Meat, and various
other options (caffeprimo, 2019).
Situational analysis – The internal analysis of Café primo, it can be said that the key problems
that the customer raise were priced value for the food and the food quality was reviewed as
average. Moreover, the customer was not satisfied with customer service by the employees of the
café.
Analysis of internal marketing environment and development of SWOT
SWOT analysis
Strengths
 Vegetarian friendly – As per the café claim that the environment and food provided by
the company would include the vegetarian friendly. The customer feedback through trip
advisor includes that the availability of gluten free food and vegetarian food was the key
aspect to increase customer satisfaction (Adam & Kotler, 2014).
 Availability of food _ the food availability and services facility on odd timings is other
strength for the café.
 Food taste – Taste of the food is other strength of the café and some food are found to be
a speciality of café as per the reviews like burger and pizza (Chung & Fiore, 2017).

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Weakness
 Overpriced – this was the common review that the customer provided for the restaurant
online that is the prices were high for the café and its products and services.
 Value for the service and food – Similar to previous point customer do not feel that the
food and services of café primo were value or worth for the amount they asked for.
 Poor Customer services as per customer review
 Staff behaviour was rude and not friendly as per feedback from customers (tripadvisor,
2019)
Opportunities
 Enhances customer experiences
 Food quality improvement
 Business expansion
 Product differentiation (Chung, 2015)
Threats
 High competition
 Increase in health conscious people
Competitive advantages
The competitive advantage of the café can be developing by using strengths to gain opportunity
and improve the weakness identified. Therefore it can be said that the competitive advantage for
café primo would be Food variety and taste of the café which must be improved, innovated and
maintained. Another aspect would be vegetarian friendly dinning that needs to be sustained to

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gain competitive advantage and increase vegetarian options with the best food quality offered
(Finne, 2017).
Marketing goals and objectives
Marketing goal for this marketing plan would be increased in the sale of food by 10 precent in
the next year. For this, the marketing objectives would be as follows:
1. Enhanced customer services – One of the key identified complaint by the customers were that
the customer services of the café have been degraded and the customers were not satisfied with
the customer services. The key objective due to this reason is to enhance customer services. This
may also include tactics like providing training to the staff that is interacting with the customer to
make them feel comfortable and provide the customer with a friendly environment with café
experience (Hudson & Roth, 2016).
2. Food quality assurance - Another issue that was reported through the customer feedback was
the food taste and quality was not appropriate and were found to be degraded as per the regular
customers of eth café. This makes another key objective of the marketing plan to improve the
food quality and assure the high food quality to keep the customer satisfied and increase the sale
of the products and services. This would also include assuring the service and food quality
through total quality management. In today’s scenario, the total quality management can be
implemented in the service industry as well. The food quality would be a necessity to ensure the
high sales of the café and attract maximum customer. Most importantly, retaining the existing
customers would only be possible to accomplish with food quality assurance (Gong & Yi, 2018).

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3. Extensive promotional offers – Another problem that was found through customer feedback
was that the customers feel that the price for the products and service were quite high that the
food quality and services. The promotional offers could be helpful for the café to attract the
customer. This would include discount offers, coupons, or membership that would help the café
to attract customer repetitively (Kaplan, 2015).
Marketing strategy
Target market, segmentation and positioning
The target market by café primo through this marketing plan would be residents nearby Victor
Harbor on priority but through the use of the extensive channel, the café would target various
other locations nearby that town.
The customer segmentation would be based on the behavioural segmentation that would include
the usage rate as the base for the café. The regular users would be targeted through offers and
combos that would be appropriate and increase the sale of the café. Moreover, considering the
demographic segmentation, young people would be target specifically. The reason being they are
regular users and prefer to have snacks or meals at restaurants and café. Moreover considering
the photographic segmentation, the college going students and working men and women would
be targeted as these groups are mostly social and prefer to visit new places with their friends,
family and to maintain work relations.
The positioning of Café Primo to be developed would be the best quality and variety of food for
everyone and the best customer service at the café to have a special experience at the café. For
this, purpose various marketing strategies would be developed (Pappas, 2016).

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Marketing mix strategy
Product strategy
Product and service are the main elements in the marketing plan for café primo as the main issue
identified is the food quality that people feel that is being degraded. The key strategy for the food
and services would be product quality assurance. This would include improving the food taste
and quality through experiment and total quality management. The new product development
strategy would be approachable to increase variety to attract maximum customers. This can be
classified through one of the models for product strategy. According to the Ansoff’s model
presented below the appropriate product strategy for café primo would be product development
strategy as through this marketing plan would be targeting existing market with a new product to
attract more customer and provide them the variety of food through enhancing innovation. This
would also increase in service through technological advancement that is delivering food at the
doorstep to target the large area and not limited to the local area (Armstrong & Giardina, 2016).

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Pricing strategy
Price is another key element and the issue that was faced by the café while analysing customer
feedback. The customer considers the price to be overpriced according to the food quality,
quantity and services. Through pricing matrix, it can be said that the pricing strategy of café
primo needs to be revised and the developing pricing strategy would be price penetration
strategy. That includes introducing a new variety of food and service with high quality but the
price would be not too high initially and with time and increase in goodwill and popularity, café
primo can increase the prices of the dishes and services offered to the customer. This would be
an appropriate strategy for café primo, the reason being customer would be satisfied and the sale
would be increased of café primo, which would eventually be helpful in accomplishing the
marketing goal of this plan (Chu & Liu, 2017).