MARKETING MIX FOR HEAVEN 7

Contents Page:
APPENDIX A -------------------------------------------------------------------------------------15 CONSUMER QUESTIONNAIRE --------------------------------------------------------------------------------------------------------15 PERSONAL SECTION................................................................................................16 MAIN QUESTIONNAIRE...........................................................................................16 REFERENCE LIST:

Appendix A: Questionnaire Appendix B: Graphical Representation Appendix C: Interpretation of the results

1- Purpose of the Study:

The study is aimed at the development of a product: restaurant by the name of Heaven 7 after conducting market research. The main areas covered in the study would be relating to marketing mix of the restaurant on the basis of the results compiled from the questionnaire responses. 2

2- Methodology Used in the Study:

According to Sekaran (2004), a descriptive analysis is undertaken in order to ascertain and be able to describe the characteristics of the variables of interest in situation. The research methods used in this study were based on gathering of primary data via a selfadministered questionnaire. A review of restaurant market literature and secondary data was used in support.

3- Importance of Marketing Research:

As we have stepped into the new millennium, marketing research is becoming more and more important for companies facing intensifying competition. This trend is firmly in place and marketing research is expected to experience continued growth as long as competitively driven economies of the world expand (Honomichl, 2000; Barnard, 1999). Same is the case for this study. The purpose of the field survey research was, first, to identify and address the current restaurant trends and consumer preferences and second, to identify and measure the strength and direction of the relationship between marketing mix and dining satisfaction. However, the methodology described and employed in this study was sufficiently vigorous and comprehensive to provide insights and translatability about customers' dining satisfaction perceptions and their intentions regarding restaurant food (Crane, 1993).

4- Situational analysis:
In essence, marketing is a management function. It is concerned with satisfying clients objectives while achieving organizational goals (Pheng & Ming, 1997). The restaurant market in UK has been growing over the last decade continuously. Particularly the city of

London has been a centre for the restaurant and eating-out business. London saw the advent of world famous restaurants during these years, like KFC, Taco Bell, Burger King, McDonalds and Subway, giving a rise to the modern eating-out trend. Along with these foreign franchises, some local investors have also come up with wonderful ideas and restaurants. Still the traditional and ever-prevalent category of classy, modern family restaurant still thrives, and if anything, it has grown stronger. After years of careful repositioning by the managements, restaurants have finally gained the acceptability of masses as the ultimate outing. In a place like London, restaurants growth is only natural, and with this growth, there has started an intense competition. Every restaurant has been busy positioning itself and in trying to become the first choice of people looking for eating entertainment.

5- Introduction to the product: heaven 7 The Established Eating out Preference

The idea of the study is to establish a restaurant by the name of Heaven 7 which is going to be one of the most innovative restaurants of London, where art and originality elegantly combine to offer some rare spectacles. Located in a busy district, the sparkling 4

facade and chic environment will fill the customers with wonder. Heaven 7 is aimed to possess a legacy that will make customers realize that there is no place like this - yet their experience will essentially and uniquely their own.

TARGET MARKET
The target audience is a critical influence on the communicators decisions on what to say, how to say it, when to say it, where to say it and whom to say it (Kotler & Keller, 2006). The restaurant mainly aims to serve families and other segments like youngsters and business parties. The main focus is on the families and the management tries to ensure a complete family experience as the management understands that focus of industrial marketing should not be products but buyer-seller relationships (Webster, 1984).

6- MARKETING MIX
The marketing mix principles (also known as the 4 ps.) are used by Heaven 7 as tools to assist in pursuing the marketing objectives. The marketing mix principles are controllable variables that have been carefully managed to meet the needs of the defined target group. By offering the product with the right combination of the four Ps we can improve our results and marketing effectiveness. After conducting primary research with the consumers of different backgrounds, the marketing mix of Heaven 7 is developed and consists of analyzing the defined:

Product strategies. Price strategies. Place strategies.

Promotion strategies.

6.1 PRODUCT STRATEGIES

Heaven 7 is a restaurant that will provide six cuisines under one roof Italian, Indian, Continental, Spanish, Bar BQ, Chinese and a discussion lounge for the business class. The restaurant will be located on a corner plot of a posh locality and cover a considerable area. It will be having two floors and entrance would be through the ground floor. The ground floor will be composed of a sitting area with numerous tables in different sizes. On the left side will be a huge bar style counter. Fresh drinks, fruit cocktails and beverages will be available there; in one corner will be a beautiful waiting lounge with black leather sofas. The upper floor will consist entirely of sitting space and on one end will be the discussion lounge. 6

The food here will not deal in a specific genre; like Pizza or Fast Food, instead it will provide rich variety of cuisines, basically divided into 6 categories. The restaurant will not be offering home delivery services. It will also provide a huge parking space with guards aiding in the parking. People can also order their food in their cars and enjoy their food in the parking if they want. PRODUCT LINE: The product line of Heaven 7 consists of 7 dimensions: Chinese Continental Business discussion lounge Italian Spanish BAR B Q Indian

PRODUCT QUALITY In Heaven 7, quality will be ensured through Checking the freshness of daily arrival and cleanliness. On site inspection of Kitchen during the cooking process. The chefs Cleanliness and recipes Cooking Utensils Temperature required

Any complaint received from customers will be sent to the management and corrective measures will be made as soon as possible to remove those problems. SERVING The waiters will be trained in such a way that they represent and serve the food in a very decent manner. This type of image will make the restaurant repute well in consumer point of view. PRODUCTION CAPACITY Heaven 7 will be having a production capacity to serve their 3000 to 5000 customers daily. It will ensure that sufficient capacity will be available to maintain service levels, even as circumstances change in the future (TeamQuest, 2007).

6.2 PRICING STRATEGIES

Before pricing the product, every company has, rather should have some goals and objectives. Heaven 7's pricing objectives are: * Profitability for the company. * Providing consumers the value for their money. PRICING STRATEGY Heaven 7 aims to set the items at premium price where it will use high prices to show the uniqueness about the product and service it is providing. The MARKET SKIMMIMNG PRICING strategy will be used in which the product will be offered in more for more area. As its products are very highly price elastic, so the company is very, efficient, and takes immediate pricing decision. Pricing decision will be made through mutual understanding between the management and employees.

The pricing strategy at Heaven 7 will be determined by the top level management. The usual method will be used by calculating the cost of the food product, and then adding a moderate margin to chalk Price skimming. Psychological pricing: This approach has been used because the organization wants the consumer to respond on an emotional, rather than rational basis. For example 'price point perspective' 99 cents not one dollar will be used on the value deals that is being offered. Captive product pricing: The products which have complements will be charged a premium price to capture the consumer. Product bundle pricing: Here it has combined several food items in the same package. The packages will be priced at relatively low price that attracts customers.

6.3 PLACEMENT STRATEGIES

Heaven 7 has so far opened one outlet for its restaurant. The restaurant is located on a corner plot of a posh locality of London and covers a considerable area. The management selected this location after a lot of consideration and analysis. The management believes that the location is ideally suited for their marketing and placement strategies. People do not have to undergo frustrating traffic jams, as it is a wide 3 lane road. Neither is the location complicated as it falls in a commercial area. Another major factor that led to the decision of selecting this location was the parking facility. There is a huge parking area for the restaurant, which is easy manageable. 9

Parking has been an annoying problem lately for people, in restaurants. Heaven 7 wanted to avoid this problem and this location has helped it manage the parking problem quite well as so far, even in peak hours. The placement of the restaurant is also beneficial in this respect that it is easily accessible to their distribution network. All the supplies for the restaurant are purchased locally.

6.4 PRODUCT POSITIONING AND DIFFERENTIATION

The restaurant management wants to position the restaurant as a place which provides quality food in a peaceful environment. It also wants its customers to associate the name of restaurant with a picture of an A-class restaurant. Moreover as a flexible organization it aims to respond quickly to the changing customer preferences or market conditions (Blake, 2008). POSITIONING OBJECTIVE: Its positioning objective is to have each targeted customer perceive Heaven 7 distinctly from other competing brands and favorably to the other brands in terms of taste and quality.

DESIRED RESULT: It wants to gain a meaningful and distinct position in the minds of customers in the target market. The restaurant business in London is growing in meteoric fashion. The restaurant will be positioning itself with the main competitive advantage being the variety of food stuff that

10

it is offering. It aims to be known as the place where the whole family can enjoy, children and elders alike.

The positioning

concept of Heaven 7 is developed by understanding the customers in

terms of Heaven 7`s relevance to their needs and preference.

In designing positioning strategy for the restaurant, the marketing mix components have
been placed into a coordinated set of actions, which are design to achieve the positioning objectives.

PROMOTION STRATEGIES
Delivering measurable increases in food and beverage revenues can be achieved with simple restaurant promotional techniques available to big budgets and shoestring marketers alike. These are the restaurant promotions that Heaven 7 will be using to get its own creative marketing wheels turning: Tactic 1: Advertising: Advertising objective of Heaven 7 is to build strong brand equity and to make sure that the target consumers relate the quality and service with its name. The restaurant will use pull strategy for its promotion and focuses on word advertisement by making sure every customer goes satisfied. Tactic 2: Public relations: Heaven 7 is determined to spend 15-30 percent of budget on a solid public relations program. Everyone wants to be associated with a winner. The key is how the publicity comes across. This publicity will support our position in the market, exclusivity and prestige.

11

Tactic 3: Bounce backs This tool will bounce guests from peak times to off-peak times and work to encourage frequency in food and beverage operations it involves offering incentives at the point of purchase on popular services to encourage the guest to try the restaurant another time. For instance, if one is busy for lunch and need to drive sales for dinner, offer bounce back certificates that can only be redeemed during dinner hours. Tactic 4: No discounting: Discounting tells the customers and prospective customers, We dont deserve full price, so well be happy to lower our rates to make up for the difference. Discounting the price would be to waste all that is spent building a brand. Instead of discounting, it aims to consider no strings offers that do not rely on percentages. Examples include valueadded perks such as free valet parking, complimentary services, merchandise, etc. Tactic 5: Business socials Partnering with a business or charitable organization works on many levels and will help the company stretch its marketing budget while still delivering higher returns on investment than can be achieved with traditional advertising. Tactic 6: Host food events--Hosting food events such as the Taste of London is a great way to position the restaurant as a center of the food scene in market. It will allow leveraging the reputation, profile and credibility of all of the other participants, and it will also help to share the expense of holding the event. Hosting an event will also provides us with the opportunity to recruit additional manpower and resources for promoting the event and gives that added edge with garnering local publicity.

12

Tactic 7: Menu Bingo: This is a great tactic for encouraging frequency and getting members to try different items on the menu. It can simply create bingo cards that have different menu items in boxes and have the cards designed with five columns and five rows. Guests will be given an allotted period of time 60 days for example to complete a connection just as they would with a bingo card. Once they try five items in any direction, they receive a free gift basket or other incentives that are roughly equal to one of the items purchased. Tactic 8: Website development: A website for the restaurant is in pipeline. The management hopes to launch the website late in 2009.

7- Evaluation of 4 Ps on basis of Primary Research:

The primary research conducted with a sample of 20 consumers having different backgrounds is used as the basis of formulation of the 4 Ps marketing mix for the restaurant. The results are combined to make a generalization of the consumers perceptions regarding dining out. Some of the points worth discussing are as follows: The customers would prefer to go to places where they could get quite a lot of things available under one roof. The customers are ready to pay a premium price if things are made available under one roof. The customer watch TV and read newspaper the most so it is good for the restaurant management to advertise and promote its brand through these channels along with others.

13

Customers would prefer convenience so the management could think of making things accessible by offering home delivery service. However the proper parking and other capacity attributes give an edge to the restaurant in placement.

The customers would like to try out different cuisines available in one area, so the product of Heaven 7 is itself very strong.

Conclusion:
The restaurant industry has been conditioned to believe that only traditional marketing efforts can be applied to grow sales because its what everyone else is doing. Fact is, the restaurant industry is getting more competitive and will continue to do so. In the face of increased competition, the most effective strategy is to differentiate the restaurant from the others and create excitement in a way that reinforces its positioning strategy. Again, restaurant promotions are only gimmicky if they are created that way; it is entirely possible to execute these restaurant promotions in a way that is completely in alignment with the image of the restaurant no matter how exclusive.

Word Count: 2573 words

Reference List:
Barnard, P. 1999, Address to the Masters of Science in Marketing Research program at the University of Texas at Arlington, Arlington, TX. Blake, D. 2008, Major Factors Affecting Process Design Decisions, American Journal of Agricultural Economics, vol. 72. Crane, F.G. 1993, Professional Services Marketing, The Howarth Press.

14

Honomichl, J. 2000, Research revenues on the rise in 1999, Marketing News. Kotler, P. & Keller, K. 2006,Marketing management, Upper Saddle River, NJ: Pearson Prentice Hall. Pheng, L.S. & Ming, K.H. 1997, Formulating a strategic marketing mix for quantity Surveyors, Marketing Intelligence & Planning, vol. 15, no. 6, pp. 273. Sekaran, U. 2004, Research Methods for Business, California: Southern Illinois, University at Cambridge. TeamQuest Corporation, 2007, An Operation Analysis Approach to Capacity Planning. Webster, F.E. 1984, Industrial Marketing Strategy, John Wiley & Sons, New York, NY.

Appendix A CONSUMER QUESTIONNAIRE SERIAL NO

NAME

15

ADDRESS PHONE# CITY

PERSONAL SECTION
1- Please tell me your marital status? Unmarried 2- What is your occupation? Housewife Working 3- Number of Members in Household? Less than 3 Three More than 3 Married Student

4- Please tell me the approximate monthly household income from all sources? Less than 500 $ 500 $ - 2500 $ More than 2500 $

MAIN QUESTIONNAIRE
5How often do you dine out? Daily often Never

6Do you prefer going at places where you could find different stuff combined in one area? Yes restaurant? Never Often Always No

7- For yourself, how frequently do you consider price of the food you buy at a

8- What attributes of a food do you think are important? Taste Presentation 16 Nutritional Value

9-

Tell us how important or unimportant Brand consideration is in your purchase decision? Important Neutral Unimportant

10- Is health consideration important in your purchase decision? Important Neutral Unimportant

11- Do you prefer convenience when you choose to dine out? Yes 12- How likely are you to switch your present most favourite food? Most likely 13- What do you prefer the most? Newspaper Magazine Radio TV Neutral Not likely No

14- Would you prefer a place where all things of interest are available, at quite a high price comparatively? Yes No

15- Would you like to travel to reach for a place that offers quite a wide range of options for entertainment? Yes No Thank you for your precious time!

APPENDIX B Question 1:

17

Question 2:

Question 3:

18

Question 4:

Question 5:

19

Question 6:

Question 7:

20

Question 8:

Question 9:

21

Question 10:

Question 11:

22

Question 12:

Question 13:

23

Question 14:

Question 15:

24

APPENDIX C

25

Question 1:

DESCRPITION: 12 respondents out of 20 were married however 8 were unmarried.

Question 2:

DESCRPITION: 10 respondents out of 20 were working in some organization, 6 were house wives and 4 were students.

Question 3:

26

DESCRPITION: Out of all the 20 respondents, 8 were having less than three house hold members, 8 were having three and 4 were having more than three members in their house hold.

Question 4:

DESCRPITION: 8 of the respondents were having income of more than 2500$, 6 with less than 500$ and 6 between 500 $ to 2500$.

Question 5:

27

DESCRPITION: 12 out of 20 respondents dine out daily, 4 quite often and 4 never dine out.

Question 6:

DESCRPITION: 16 respondents prefer to go at places where they could find different stuff combined in one area, however 4 do not prefer this option.

Question 7:

28

DESCRPITION: 10 respondents never consider the price of the food when they buy it at a restaurant, 6 of them often consider while 4 of them always look for the price.

Question 8:

DESCRPITION: 10 respondents consider the nutritional value to be most important, 5 each consider taste and presentation to be important.

Question 9:

29

DESCRPITION: For 12 respondents the brand consideration is important, for 6 it is unimportant and two of the respondents have no view regarding this.

Question 10:

DESCRPITION: For 16 people, health consideration is important, for 2 it is unimportant and 2 respondents did not reply.

Question 11:

30

DESCRPITION: 14 people out of 20 prefer convenience when they choose to dine out however the rest do not.

Question 12:

DESCRPITION: 10 people out of 20 are likely to switch from their most favorite food, 8 are not likely and 2 did not reply.

Question 13:

31

DESCRPITION: 10 out of 20 respondents prefer to watch TV and will be attracted more by market promotions than any other promotion strategy, 5 prefer newspaper, 3 of them magazine and only 2 radio.

Question 14:

DESCRPITION: 18 out of 20 respondents would prefer a place where all things of interest are available at quite a high price comparatively, where as 2 would not.

Question 15:

32

DESCRPITION: 18 respondents would like to travel to reach for a place that offers quite a wide range of options for entertainment, where as 2 would not.

33