Scenario
Galaxy Restaurant is a start-up restaurant developed with the idea of providing the customer with a unique dining experience. This could extend from the product offering, service offering, atmosphere, or a host of other unique experiences. Initial research will provide an idea of what this unique dining experience would be like.
Introduction/Overview of the Company
The restaurant industry is in the limelight in many countries. Organizations have intended to integrate new business trends to come up with the unique dining experience for customers. The exceptional dining is an effective competitive strategy by the restaurant to differentiate the process, gain a competitive advantage, and sustain the business for a long run (Choi, 2007). Galaxy restaurant is a new business or the company, which is going to start operations in New York, United States. The restaurant industry is competitive, and therefore, differentiating the market through the unique dining experience is the right approach. The study revolves around a comprehensive marketing plan. However, it seems necessary to navigate the business environment to derive market or industry insights.
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Business Model
The business model or strategy of the Galaxy Restaurant is integrated, cost leadership and differentiation. Interestingly, this business strategy can be aligned with the possible marketing plan of the company in the competitive landscape.
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Product or Service Offering
Shakes, Egg Meals, Sodas & Juices, Burgers, Sandwiches, Hot Dogs, Smoothies, and Griddle Meals are some initial offerings of the restaurant. The firm wants to streamline fresh food for customers in a differentiated or a unique dining environment, as it can increase the assertiveness of customers to make operational decisions.
Market Research Strategies
The management of the company has to integrate practical and affordable market research strategies to derive insights into the target market, industry, and competition. Galaxy restaurant will use industry analysis and competitor’s advertising and sales material as the key market research strategy. The industry analysis will help the company to obtain some key trends to shape the unique dining. Also, the competitive analysis will help to perceive competitor’s actions. For Instance, the management of the company may use competitive analysis regularly to observe offerings of competitors, level of competitive advantage, and a difference between the processes of the companies (Kotler & Keller, 2015).
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Understand the Target Market(s), Industry, and Competition
The restaurant industry in the region has helped to identify many customer segments. Millennials are the primary targets of the company, as they like fast food items and unique dining experience. Young adults, youth, kids, and senior citizens are to be targeted by the company management to increase customer traffic and sales. Moreover, industry analysis will facilitate finding top competitors. For Instance, Par Se, Blue Hill, Le Bernardin, the Grill and No Mad restaurant are major possible competitors of the company in this region. The industry is highly competitive because every restaurant contains the differentiation capability to provide a unique dining experience to meet the needs or expectations of several target customers.
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Valuable Insights for Profitable Operations
Based on industry and competitive insights, the management of the company aims to make a workable strategic marketing plan. Also, apart from the market planning process, the firm may design or shape the work process or operating procedure, which can help to get an edge over other rivals. For instance, using technological devices to assess the needs of customers on dining tables is a unique process, which can lead to a competitive advantage. Similarly, the management wants to make all operations profitable and value by integrating with the market or industry data. Thus, both market research strategies are pertinent to drive the marketing process of the company (Batocchio, Ghezzi, & Rangone, 2016).
Macro Environment
The macro environment is an external business environment. The administration has to assess the macro situation of the business before starting the business operations, especially in the restaurant industry.
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Political
The political stability is massive support for the galaxy restaurant in the country. The politically stable state contains flexible rules and regulations for the corporate sector. In the food industry, the firm has to align with good regulations to maintain the standard and quality to contribute to the healthy environment. In a democratic political culture, the firm can sustain growth and sustainability.
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Economical
Starting a restaurant business with a unique or differentiated process is a valid option in a developed country. People, due to their high – income level will depict their assertiveness to make buying decisions. Buying power in this economy is quite high, and it goes in favor of the galaxy restaurant.
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Social
The social factor is in the limelight due to its direct impact on the galaxy restaurant business. For Instance, in a multi-cultural society, the firm has to integrate with several cultural values to contain the emotional and sentimental attachments with people. Using traditional cultural foods, especially on conventional cultural events, will be the right approach to be relevant in the market. People are becoming health conscious due to the increasing rate of obesity (Kraak & Ingrid, 2018).
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Technological
People are becoming tech-savvy, as they like to use technology when conducting daily activities. The restaurant business in the industry has also been linked with modern technology. From the depiction of menus to feedback, technology is doing everything from restaurants. Thus, the firm must increase its adaptability.
Impact on Company & Marketing Decisions
The impact on a company and marketing decisions is positive. The most important thing is to assess the effects of possible changes in the business process, which are conducted after analyzing the market or macro business environment. The galaxy restaurant will streamline rationale business and marketing decisions, which can also justify the competitive advantage in the competitive landscape. The impact on the company is positive because it can enable the change. Macro environment outlines the current market, business and industry situation, and it seems natural for the management to make appropriate decisions with the time (Ghuman, 2010).
Segmentation and Target Market Analysis
Based on the different customer segments, the management of the galaxy restaurant wants to target customers. It is a fact that the unique dining experience is for all customer segments, and it has a direct impact on business sales and profitability.
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Demographic
This segment depicts both males and females. People from 18 to 60 are included in this target segment. Low income and moderate-income people can take advantage of the unique dining experience and low-cost eatable. People in this group are households, business professionals, and millennials (Hosseini & Shabani, 2015).
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Geographic
The geographic segment depicts a group of people in New York City. New York City is an urban area. In this metropolitan area, people like the creativity in restaurant menus and enjoy the unique dining experience. Thus, at this central location, the firm can enhance the visibility of the targeting.
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Behavioral
In the restaurant/food industry, people want value for money. For Instance, health-conscious people, who are also suffering from obesity, are willing to pay high prices for high-quality food. On the other hand, in the restaurant business, the management may also face customers, which contains high bargaining power over the quality, standard, and atmosphere.
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Psychographic
The psychographic segment of the customer demonstrates the lower middle, middle, and upper middle class. The primary target of the company is a group of extroverts. People who are optimistic and want to try different food items will be targeted. People usually want to integrate with new trends, and the firm is willing to fulfill this particular need.
Competitive and Industry Analysis
Par Se, Blue Hill, and Le Bernardin are three main competitors of the company. Due to a diverse food menu and high-quality standards, these competitors are in the limelight in the market. These competitors can be evaluated through a competitive positioning map.
· Competitive Positioning Map
The restaurant industry contains many companies. However, these are three main restaurants, which provide the unique dining experience. Owning a food restaurant in this region is a big challenge. However, differentiation is the only way to enhance the attraction and to position to make the restaurant successful. It has been observed that the number of independent restaurants in the region decreased by 3% (Stabiner, 2016). However, on the other hand, consumer spending is increasing with time. International restaurants intend to enter the market by acquiring local restaurants to expand their market share. Restaurants are to become inimitable to get an edge over other companies (Vargas-Hernandez, Cárdenas-Dávila, Orozco-Quijano, & Ceniceros-Angulo, 2017).
Importance of Marketing Plan
The industry and competitive analysis are helpful for the management to make an effective marketing plan. The firm needs some particular marketing strategy to integrate with specific market trends in the competitive landscape. For Instance, if the galaxy restaurant wants to get an edge over its competitors, it has to engage with customers effectively through different touch points. Marketing content and visualization are outcomes of the information, which have been derived from the industry and competitive analysis (Kotler & Keller, 2015).
SWOT Analysis
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Strengths
The high brand image of the company will be the prominent strength of the company. People will perceive the brand due to the quality and availability of different food varieties. Also, a possible strength of the company is its financial capability, as it can facilitate business expansion. A broad food menu for different target customers is also a significant strength. It can increase customer trafficits the restaurant (Hassan & Craft, 2005).
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Weakness
The biggest possible weakness of the company is advertising and promotion, as the firm may set a limited marketing budget to promote the restaurant in the competitive landscape. Also, the firm depends on one or two customer segments, which can also create some hurdles in the revenue growth and business expansion. Initially, the firm may experience a low market share and growth. The management needs time to create a positive perception. On the other hand, acquiring the local restaurant is a big challenge as well due to the high cost
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Opportunities
Change or evolvement with time is an excellent opportunity due to the good financial capability. For Instance, restaurant industry trends are frequently changing. Now, it seems the right time to adopt these new trends to enable effective positioning. Also, the weakness can be converted into opportunities. For Instance, the firm may integrate with modern low-cost media channels to accelerate the attraction and positioning. The Galaxy restaurant may also increase the number or restaurants in the city. However, it depends on the success or people’s response and demand (Papandrea, 2018).
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Threats
The visibility of different competitors and emergence of international restaurants in the city are significant threats to Galaxy restaurants. New arrivals in the industry or market are emerging with differentiating capabilities. Decreasing ownership of the restaurant has also appeared as a critical threat. If the firm goes for any acquisition, it may damage the financial ability of the company.
Galaxy restaurant has to align with these insights to make an exclusive marketing strategy. The most important thing is to create urgency in the organization before making any changes. The change in the business process must be aligned with the marketing plan. Industry, competitive, and business environmental analysis are the main elements of this study, which provide a base to design the marketing plan.
Product
Galaxy restaurant aims to come up with a broad product line for customers. The restaurant industry is quite competitive, and product extension is one of the prominent product strategies to enable business sustainability and get an edge over other rivals. The main products of the company are Shakes, Egg Meals, Sodas & Juices, Burgers, Sandwiches, Hot Dogs, Smoothies, and Griddle Meals. The appropriate product strategy of the galaxy restaurant is to enhance the unique dining experience. The product and service quality along with the differentiation is a prominent offering. Galaxy restaurant wants to improve the menu, quality of products, and bring diversity to meet the needs of customers (Hoffman, 2017).
On the other hand, to make the dining different, it intends to integrate creative and innovative ideas. With time, the firm will have to align with a new restaurant or dining trends to justify the uniqueness or differentiation. The most important thing is to make people assertive in enjoying the dining services. Service customization and service innovation are two essential elements, which are triggered by unique dining offerings. Along with these differentiated services, the restaurant will depict a creative brand logo in the competitive market.
Competitive Advantage
The product offering of the company can lead to competitive advantage. For Instance, apart from the service differentiation such as unique dining experience, the firm may work to differentiate all product lists. The galaxy restaurant may have a research and development team as well, which may try several ingredients to come up with a new product. In the product offering, the most important thing for the company is to become inimitable. The extensive product range must be shaped to meet several customer targets. The right product for the right product segments is also a good source of competitive advantage (Khan, 2014).
Price
The pricing strategy is an integral part of the marketing plan. In the restaurant industry is in the limelight due to different pricing strategies to companies. Galaxy restaurants, after a complete analysis of the restaurant market, have decided to devise the penetration pricing strategy. The penetration pricing strategy portrays the low prices of offering as compared to other companies. It is a new business, and the firm wants to grab the attention of customers. Due to the low prices of high-quality products and services, the management can increase the customer traffic and make them loyal and satisfied. The firm will keep the profit margins low from the initial stage. After sustaining the revenue growth and customer retention or loyalty, the firm may increase the price to get the advantage. Interestingly, penetration pricing strategy provides a base for the company management to improve the brand image. High-quality products at a lower price in a majestic atmosphere can make an adequate customer base (Min-Seong & Kim, 2018).
Competitive Advantage
Premium service at low prices is a prominent competitive factor. The company can gain a competitive advantage by keeping the price lower for top target low and middle-income people. People can perceive this restaj6nt as a cost-saving option. Ultimately, it creates an impact on customer traffic and perception. The low price of the high-quality offering is a differentiating factor, and it opens ways to get a competitive advantage (Kukanja, Omerzel, & Bukovec, 2017).
Place
The location of the business is in New York City, United States. It is a fact that the company decided to hit the urban area to target people. However, it seems imperative to integrate with the UX1/UI2 (User experience/User interface). Customers will enjoy easy entry and have an excellent parking facility. Also, effective placement can be justified by creating more space for expected customers. The galaxy restaurant knows the segmentation type of the customer, and accordingly, it decides the location. It is a direct distribution technique, as the customer will have to visit the location or place and enjoy the meal in a differentiated dining atmosphere (Hoffman, 2017). Thus, the company wants to increase the end consumer experience through several traits. For Instance, to streamline the view of the location, the company can install a crystal-clear window.
Competitive Advantage
Of course, galaxy restaurant will exist at the location, which does not contain another unique restaurant. Thus, the company can enjoy customer traffic and revenue growth, and it can lead to a competitive advantage.
Promotion
Galaxy restaurant wants to use both social and traditional media channels to enhance the visibility of attraction and positioning. Better positioning is possible through better execution of the promotional activities. First, the firm will align with social media channels such as Facebook, Twitter, and many others. The firm may use comprehensive content regarding the differentiated atmosphere and visualize the location and arrangements to enhance the attraction. Also, customer interactions on this touch point will make it easier to make some improvements and enable business sustainability. Traditional media are useful for promoting as well. For Instance, on different events such as Boxing Day, Black Friday, Christmas, and many others, the firm will offer a discounted meal and free smoothie hours to promote the business (Khan, 2014).
Competitive Advantage
Definitely, by utilizing both traditional and social media channels, the firm can grab the attention of an immense range of customers. The promotion can make the customer assertive, especially on the social media channels, and it looks rare in the competitive restaurant industry. Thus, the firm can reduce the promotion cost by using these digital channels. Grabbing customers through cheaper channels is an advantage (Kukanja, Omerzel, & Bukovec, 2017).
References
Batocchio, A., Ghezzi, A., & Rangone, A. (2016). A method for evaluating business models implementation process. Business Process Management Journal, 22(4), 712-735.
Choi, J.-G. (2007). Developing restaurant industry business cycle model and analyzing industry turning point. Journal of Global Business and Technology, 3(1), 40-48.
Ghuman, K. (2010). Management: Concepts, Practice & Cases (1 ed.). Tata McGraw-Hill Education.
Hassan, S. S., & Craft, S. H. (2005). Linking global market segmentation decisions with strategic positioning options. The Journal of Consumer Marketing, 22(2/3), 81-89.
Hosseini, M., & Shabani, M. (2015). New approach to customer segmentation based on changes in customer value. Journal of Marketing Analytics, 3(3), 110-121.
Kotler, P. T., & Keller, K. L. (2015). Marketing Management (15 ed.). Pearson Education.
Kraak, & Ingrid, V. (2018). Comprehensive Restaurant-Sector Changes Are Essential to Reduce Obesity Risk for All Americans. American Journal of Public Health, 108(2), 158-159.
Papandrea, D. (2018, October 29). 6 Tips for Restaurant Business Expansion.
Stabiner, K. (2016, October 25). Is New York Too Expensive for Restaurateurs? We Do the Math.
Vargas-Hernandez, J. G., Cárdenas-Dávila, C. F., Orozco-Quijano, E. P., & Ceniceros-Angulo, J. C. (2017). Consumer behavior segmentation criteria: prices vs. Product differentiation. Delhi Business Review, 18(2), 17-31.
Hoffman, T. (2017). How to Start, Run & Grow a Successful Restaurant Business: A Lean Startup Guide. CreateSpace Independent Publishing Platform.
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), 95-107.
Kukanja, M., Omerzel, D. G., & Bukovec, B. (2017). A Restaurant Quality Model Based On Marketing Factors. E+M Ekonomie a Management, 20 (1), 157-171.
Min-Seong, K., & Kim, J. (2018). Linking marketing mix elements to passion-driven behavior toward a brand. International Journal of Contemporary Hospitality Management, 30 (10), 3040-3058.
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