Strategy Marketing Plan
Strategy Marketing Plan
Vintaged Bar + Grill is a classy and up market wine and dine located in Brisbane’s central business district. The restaurant offers a host of different meals and drinks for its patrons in a carefully constructed environment that guarantees a calm and relaxing atmosphere. Changes in Brisbane’s restaurant industry have made it necessary for Vintaged to do develop new market strategies that will enable it to compete with other players in the industry.
Vintaged Bar + Grill enjoys a comparative advantage over its competitors by virtue of the establishment’s class and prestige. The market in which it operates is stable and predictable a situation made possible by Brisbane’s and Australia’s stable and controlled eco-political situation. The best way for Vintaged Bar + Grill to set itself above the competition is to utilize its advantages. The restaurant has a large seating space, which it can use to host different events while retaining the calm atmosphere that is there in other parts of the establishment. Additionally, Vintaged has established itself as a classy and prestigious eatery and this can help it to attract the specific target market that it wants.
Vintaged Bar + Grill can implement
the strategies it set out using a rigorous advertisement campaign. This
promotion will ensure that the restaurant reaches out to a large number of
people using mass media. The internet is the best instrument for use in this
case, because it is affordable and easily accessible. The restaurant can hire a
professional marketing campaign to design and create the advertisements that it
Table of Contents
Table of Contents……………………………………………………………3
Marketing Goals and Objectives…………………………………………….9
Overall evaluation and Control Procedures…………………………………13
Vintaged Bar + Grill is located in the central business district of Brisbane in Queensland, Australia. It brings together a bar and a restaurant to offer a variety of drinks along with foods that the chef has specially selected from Australia and Queensland and then freshly grilled for the customers. The Queensland Good Food Guide Awards (GFG) recently awarded Vintaged Bar + Grill the 2013 Chef’s Hat award for the second year in a row. The establishment has already set itself out as one of the most prestigious wine and dines in Brisbane; however, there is a need to set out a marketing strategy that will plot out the future goals and objectives with a view to gaining a strong grip in the Brisbane restaurant industry. A few limitations of this plan come from the fact that the restaurant has, by virtue of its pricing, locked out a large section of the Brisbane residents meaning that this marketing strategy targets only a small portion of the city’s residents.
The situation analysis in this case will take into account the conditions in Brisbane, and Australia as a whole, and looks at how conducive it is to run a Bar and Grill business in the city. The market analysis will consider economic, legal, and regulatory factors. Economically, Brisbane presents itself as a good place to run a restaurant. Despite the global economic woes, the Australian economy recorded a growth for the 22nd year in a row in 2012-13. Last year, the Australian economy grew to overtake Spain and become the twelfth largest in the country. Experts consider Brisbane to be one of the fastest growing regions in the country (Economy, 2012). The region has been averaging a growth of 4.7 percent over the past decade and is currently worth $135 billion. The city’s council has undertaken several initiatives to make the trend go on. Plans are in place to expand the infrastructure and allow the city to support as many as 1.5 million workers. The council also plans to relax infrastructure charges for hotel developments (Brisbane City Council, 2012).
Australia’s government and political system is stable, reliable and competent. This makes sure that business owners can run their operations in a good and friendly environment. Brisbane’s government ensures that there is an “open and progressive legal and regulatory framework, providing businesses with a high degree of certainty” (Economic Overview, 2010). The Brisbane City Council requires all food businesses to have permits for operation. This issuance of these permits is determined by several factors. The business must pass an inspection by a public health inspection officer before the council allows it to operate. The entity also has to have an approved food safety supervisor at the premises. The bar and grill will have to have a license allowing it to sell liquor form the Government of Queensland (Types of liquor licenses in Queensland, 2013). All businesses dealing with liquor must be a part of the Valley Liquor Accord. This accord sets guidelines for the business entity to follow concerning the sale and distribution of alcohol (Valley liquor accord (VLA), 2012).
Most of the competition that Vintaged Bar + Grill will face will be from bars and other businesses similar to Vintaged that combine eateries and bars. Brisbane has a very long list of business entities that fall under these two categories. The city has eighty-seven entities that fall under one of the two categories. A majority of them are bars meaning that Vintaged Bar + Grill would have an advantage over them. However, there are several places that are modeled the same as Vintaged. Twenty-three of the eighty-seven bars listed in Brisbane sell both food and alcohol meaning that they would provide the same services and offer stiff competition for the business (Brisbane bar guide, 2013).
A look into Brisbane’s demographics helps to outline the specific customer base that Vintaged Bar + Grill should target. The city has a population of 2.1 million people, which is growing at an annual rate of 2.2 percent (Demographics, 2010). The population is comprised of a host of different cultures from various parts of the world such as the United Kingdom, the United States, India, Vietnam and China. A majority of the city’s residents are young and educated. Experts approximate that twenty percent of the adults in Brisbane have university degrees (Demographics, 2010). This makes it possible for Vintaged to be able to find a large number of customers who can afford the bar’s prices. The city’s large population makes it possible for Vintaged Bar + Grill to have access to a large customer base, even with the stiff competition in the business.
Vintaged Bar + Grill has a variety of strengths related to the field of business. Firstly, the restaurant enjoys high brand recognition and a good reputation. Those two factors are very helpful to the restaurant when it comes to attracting customers. Together, a good reputation and brand recognition can help Vintaged Bar + Grill establish itself as a restaurant in a class of its own. This will help it have access to the customers who enjoy wining and dining in exclusive and classy locations. Another strength that Vintaged has is that it is able to provide its customers with a large range of choices when it comes to beverages and food. The restaurant offers customers a variety of foods that the chef selects. These foods are usually brought from Queensland and Australia. Customers also get the choice to choose from entrees, mains and desserts. The last strength that Vintaged Bar + Grill has is its selection of fresh food and beverages. The restaurant obtains its food from a variety of sources. Some of the food is handpicked daily from markets in the locality and farms in the Southeastern parts of Queensland. Many of the meals that Vintaged serves are made from meat and the restaurant selects this meat from local and national producers.
Vintaged Bar + Grill has a number of weaknesses that affect its operations. One of the restaurants weaknesses is the high cost of food and beverages at the establishment. The process of acquiring the produce and the quality of the food that the establishment serves makes the food more expensive than you would find in other businesses of a similar nature. Serving expensive foods and beverages scares away many potential customers. It also locks out a specific section of the market. This means that Vintaged Bar + Grill is only able to serve a smaller percentage of the Brisbane population in comparison to the markets that other restaurants can access. This issue is a large disadvantage for the establishment but it is worth noting that the high prices make it possible for Vintaged Bar + Grill to present itself as an exclusive restaurant with class.
One opportunity that Vintaged Bar + Grill has is the high potential that emerging markets hold. Brisbane’s population currently stands at 2.1 million people and is growing at a rate of 2.2 percent annually. This presents the establishment with a chance to expand its customer base in two ways. Firstly, the restaurant can attempt to access more of the 2.1 million people residing in Brisbane. Secondly, the restaurant can take advantage of the growing Brisbane population and attempt to grow its business within the people moving into the city. The restaurant should be able to attract people who move into Brisbane from rich countries such as the United States and the UK, who seek a classy establishment where they can wine and dine.
Another opportunity that the restaurant has is its appeal. The restaurant has already set itself out as an exquisite and classy establishment that primarily targets upper class citizens in Brisbane. Vintaged Bar + Grill boasts five unique dining places with a calm and relaxed environment that is bound to appeal to its customers. Australian architect Mark Landini designed the establishment’s interior combining “contemporary furnishings, clean lines and vivid colors” to make vintage one of the most sophisticated restaurants in Brisbane (Vintaged Bar + Grill, 2013). This design, coupled with the restaurant’s pricing of its meals, places it in a higher class and helps it specifically target Brisbane’s upper class citizens who do not mind spending a lot of money for their food.
Another opportunity for Vintaged Bar + Grill presents itself through the restaurants excellent service and its use of technology to enhance the customers’ experience. The establishment has an open grill where the patrons can select the beef that they want to have for their meal. The restaurant also allows the diners to seat in front of the chef’s grill and watch the chef cook as they learn more about their meal and the chef’s experience. The restaurant’s services and use of technology are alluring for customers who are looking to have a complete experience and not just a simple meal.
Developing a Comparative Advantage
Vintaged Bar + Grill can develop a comparative advantage through several ways. Firstly, the restaurant is large and it has several dining and seating areas that it can exploit. This means that it can accommodate a large number of patrons making it possible for the establishment to host large events such as weddings and private parties. The management can divide the seating area to make it possible for such events to go on while the restaurant still caters for regular patrons who are not part of the functions. The large seating space also makes it possible for Vintaged Bar + Grill to separate the area into different sections and construct different environments that have varying atmospheres. This will make it possible for the restaurant to accommodate patrons who are seeking different experiences. Sports fans can go to the bar where the crowd is cheery and bubbly, while couples can go to the restaurant and dine in a calm and peaceful atmosphere.
Vintaged Bar + Grill can also build a comparative advantage by using its prestige to attract the best chefs in the world. The restaurant already has two excellent chefs working for it Chef Jeremy Clark and Sous Chef Dario Fiorino. The two chefs already help Vintaged attract a host of patrons who enjoy fine dining and seek to try out the work of some of the world’s best chefs. The restaurant could build on this to enhance its reputation. Additionally, the restaurant could bring in a guest chef from a different part of the world every now and then to wow the patrons with exotic cuisine that the regular chefs do not normally serve. Celebrity chefs like Gordon Ramsey and Ina Garten would attract large crowds if brought in to as guest chefs on special occasions.
To develop a strategic focus, Vintaged Bar + Grill will have to focus on the areas in which it has strengths and comparative advantages over its competitors (Marketing theory, 2013). Three advantages have already been identified by the restaurant the large seating space, the prestige of the establishment and access to professional chefs. The restaurant needs to build on these strengths and target a specific market group that will be attracted by the identified factors. Doing so will set it in a class of its own and make sure that it can keep up in the competitive food and service industry.
Marketing Goals and Objectives
The primary marketing goal for Vintaged Bar + Grill is to present itself as the premier wine and dine place for classy people who enjoy high-end services and products and prefer to spend their time in calm, peaceful environments. The establishment can achieve this by starting a promotion campaign that reaches out to potential customers in Brisbane and the larger Queensland area Another marketing goal for the restaurant is to set itself out as a prime location for hosting events of different natures. Vintaged Bar + Grill already caters for office parties, birthdays and weddings; however, the management does not prioritize these events. The restaurant should set aside one section of the seating area and use it primarily to host functions for different groups and organizations. These functions could work out as a form of promotion for Vintaged as the people attending them will get to experience the restaurant’s food, beverages and services.
In line with the marketing goals, the restaurant should have two key objectives. The first objective is increase the number of customers to the establishment by using a strong promotion campaign that employs the use of mass media such as television and the internet. The management could post viral ads on the internet through social media sites and video sharing sites such as Facebook and YouTube. If the restaurant carries out the advertisement campaign effectively, the effects should be noticeable within a year. These promotion campaigns will enable Vintaged Bar + Grill to establish a strong brand name. The second objective is to increase the number of clients who go to Vintaged Bar + Grill to host their events at the restaurants. The establishment will achieve this by consistently hosting successful functions that popularize it within the sector.
Vintaged Bar + Grill primarily targets higher income groups and social classes. Other factors such as race, age, gender and religion are of no consequence to the management (Vintaged Bar + Grill, 2013). The location of the restaurant inside Brisbane’s central business district makes it easily accessible to the market section that is being targeted. The strategies that Vintaged Bar + Grill should apply mainly concern product, price, place and promotion. Most of these strategies involve several perspectives. The products and services that Vintaged Bar + Grill provide are perhaps the most important part of the business. The establishments’ food and beverages are the main attraction for the patrons. If the quality of these products fails to meet a certain standard, then most of the clients will stop going to Vintaged Bar + Grill. This means that consistency is very important for the restaurant (Strategy theory, 2013).
Another important aspect of the restaurant’s operations is the pricing. There are two issues concerning the establishment’s pricing. Firstly, the prices that Vintaged Bar + Grill charges play a key role in determining the clientele that they attract. The restaurant has already outlined the fact that it is targeting a higher socio-economic class and this means that the prices must be higher than they would be in other restaurants (Lamb, Hair & McDaniel, 2012). The price that is set on the food and beverages will determine the profits that the restaurant makes and will play a role in sustaining the competitiveness. The second issue concerning price relates to value for money. The restaurant needs to make sure that it provides high quality food, beverages and services to match the high prices charged. If this is not done, then many clients may opt for other wine and dines.
Place is also an important strategy within the marketing mix. The location of the restaurant determines the kind of clientele who are attracted to it. Because Vintaged Bar + Grill is targeting clients in upper socio-economic classes, its location in Brisbane’s central business district suits it. That location is convenient for people who work in Brisbane’s prestigious firms who the restaurant is targeting.
Promotion works in a manner similar to price and place. The kind of advertising campaigns that the restaurant carries out influences the type of clientele that the restaurant attracts. Viral ad campaigns on the internet are effective because they can literally spread across the globe. However, these campaigns need to be designed with care so that they can reflect the establishment’s class, prestige and exclusivity. A part of these campaigns should focus on the restaurant’s plans to become a prime location for people seeking to host events. This will help build the restaurant’s reputation as a classy wine and dine and as a good place for hosting functions.
Vintaged Bar + Grill will have to embark on a rigorous marketing campaign to enhance its image as a wine and dine. The campaign will have two dimensions. Firstly, the restaurant will be presented as a prestigious and classy establishment that is ideal for Brisbane residents who fall in the higher socio-economic classes. The image that the advertisements will project will try to attract that specific target market and create a strong brand and reputation for Vintaged Bar + Grill. The campaign’s second dimension will seek to grow the restaurant’s reputation as a prime location for hosting different types of functions. Vintaged Bar + Grill already hosts weddings, birthday parties and corporate functions. The idea of this advertisement campaign will be to grow this sector of the restaurant’s business and attract more customers.
The promotions and advertisement will mainly use mass media to reach the potential customers. The internet will be a key resource due to the access that it has to large numbers of people. The restaurant should use a professional marketing agency to help it construct this advertisement campaign. The agency can help it construct the right kind of advertisements that appeal to the intended market class and that project the image that the restaurant wants to create. Websites such as Facebook, Twitter and YouTube have access to large numbers of people (Vass and Vass, 2008). If the agency and the restaurant carry out the promotion campaign properly, it is likely that a large number of customers will be introduced to the establishment.
The management will be in-charge of implementing this plan. The implementation can begin as soon as possible with a view of completing the advertisement campaign within a year. It is likely that within a year, the effectiveness of the advertisements and promotions will be visible to the restaurant. At that point, the restaurant will decide whether to continue with the campaign, change its structure or embark on a completely different strategy. The restaurant will carry out a continuous evaluation of itself to try to map out the effectiveness of the campaign. The advertisement campaign should not cost a lot of money because the primary medium used (the internet) is free and easy to access. The only expense will be the cost of hiring the marketing agency and designing the advertisement campaign.
Overall Evaluation and Control Procedures
The restaurant will carry out a continuous evaluation process to check whether the newly implemented strategies are working properly. This evaluation will use the restaurant’s sales figures and the clients as the primary sources of information. The first course of action will be to check the sales that the establishment will record over the course of a year. The evaluators will be looking for any increases in sales that can denote a rise in customers that are frequenting Vintaged Bar + Grill. These figures will be compared with sales from previous years to ensure that any increase is the result of a rise in attendance and not just a routine climb in profits. The restaurant will also evaluate itself with the help of the clients. The establishment can request patrons to fill in a questionnaire that tries to find out how effective the promotions and advertisement campaigns have been.
There is some information that Vintaged Bar and Restaurant needs to collect regarding the marketing strategy. Firstly, there is a need to carry out research and find out the strategies that other restaurants of a similar structure are implementing. It is possible that other restaurants have advantages similar to those that Vintaged Bar + Grill has. This could have a significant effect on the restaurant’s operations especially if other players in the market develop the same kind of business as Vintaged. It is also important for the establishment to find out what the target demographic wants from a restaurant. This can help the management at Vintaged to develop the ideal environment for its clientele.
Vintaged Bar + Grill is a major
player in Brisbane’s
restaurant business. The establishment offers some of the best meals and
services in Brisbane’s
central business district. However, the development of several other wine and
dines in the city has created a lot of competition in the sector. It is
necessary for Vintaged to try to establish itself in a class of its own within
the industry so that it can keep up with the changes. The restaurant targets a
higher socio-economic class, a fact that is reflected in its pricing and
location. The restaurant should embark on a strong marketing campaign to help
it deal with the changing marketing dynamics. The campaign can help outline its
prestige and class while advertising the different services that it offers such
as events hosting.
Brisbane bar guide. (2013). Retrieved from http://www.yourbars.com.au/beer_type/?action=venues&url_landing=venues&url_state=qld&url_region=brisbane&url_suburb=city
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Economy. (2012). Retrieved from http://www.brisbanemarketing.com.au/brisbane-facts/economy.aspx
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Vintaged bar + grill. (2013). Retrieved from http://vintagedbarandgrill.com/
Total Revenue $ 3,500,000 100%
Less Food sold $ 2,380,000 68%
Less Beverages sold $ 1,120,000 32%
Food $ 714,000
Beverages $ 280,000
Accounting fees $ 15,000
Advertising and Promotion $ 88,000
Licenses and permits $ 10,000
Insurance premiums $ 34,000
Rent, Electricity, Water $ 100,000
Repairs and Maintenance $ 20,000
Interior décor $ 50,000
Delivery charges $ 9,000
Employee salaries $ 400,000
Miscellaneous $ 58,000
Total Expenses $ 1,778,000
Net profit $ 1,722,000
Food $ 700,000
Beverages $ 300,000
Salaries $ 430,000
Accounting fees $ 16,000
Licenses and permits $ 10,000
Rent, electricity and water $ 110,000
Advertising and promotion $ 90,000
Interior decoration $ 45,000
Catering equipment $ 30,000
Kitchen equipment $ 20,000
Expenditure $ 1,751,000
Sales Forecast 2013-2014
Beverages Units 2013 Units 2014
Beers 200 250
Soft drinks 600 550
Juices 350 400
Foreign wines 120 150
Local wines 260 270
Champagne 100 110
Total units 1630 1730
Salads 900 1100
Beef products 650 750
Seafood 450 600
Dairy products 500 550
Total units 2500 3000