Example of A+ Marketing Plan, that was created while attending Sheridan College.

1. Marketing Plan
Prepared For: Derek
Barnes
By: Roseanne Rawas,
Travis MacDougall, Laura
Ball, Luis Levy, Amanda
Veitch and Narelle Kichula
November 7, 2011

2. Saucy Grill Marketing Plan November 7, 2011
TABLE OF CONTENTS
EXECUTIVE SUMMARY……………………………………………………………………….7
1. Market Situation ..................................................................................................... 9
a) Definition of the market............................................................................................ 9
b) Market Size and Growth ........................................................................................ 10
c) Segmentation of the market ................................................................................... 11
d) Distribution Channels ............................................................................................ 15
e) Consumer Needs................................................................................................... 16
f) Consumer Preferences........................................................................................... 17
g) Consumer Perceptions .......................................................................................... 17
h) Consumer Buying Behaviors Trends ..................................................................... 18
2. CLIENT’s Business Situation .............................................................................. 19
a) Review of Client’s Business: ................................................................................. 19
i) Sales (in units and/or dollars) for past three years: ............................................. 19
ii) Market share (in units and/or dollars) for past three years ................................. 19
iii) Target Market .................................................................................................... 20
iv) Positioning ......................................................................................................... 20
v) Marketing Objectives .......................................................................................... 21
vi) Promotion Strategies ......................................................................................... 21
a) Advertising...................................................................................................... 21
b) Sales Promotion ............................................................................................. 22
c) Public Relations .............................................................................................. 22
d) Selling ............................................................................................................ 22
vii) Product / Service Quality Strategies ................................................................. 22
viii) Pricing strategies ............................................................................................. 23
ix) Distribution strategies ........................................................................................ 23
b) Summary of Key Findings from the Marketing Research Project .......................... 23
3. COMPETITIVE SITUATION .................................................................................. 26
a) Definition of primary and secondary competitors ................................................... 26
b) Review of competitors ........................................................................................... 26
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3. Saucy Grill Marketing Plan November 7, 2011
The Keg: .................................................................................................................... 26
i) Sales ................................................................................................................... 27
ii) Market share ...................................................................................................... 27
iii) Target Market .................................................................................................... 27
iv) Positioning ......................................................................................................... 28
v) Marketing objectives .......................................................................................... 28
vi) Promotion Strategies ......................................................................................... 28
a) Advertising...................................................................................................... 28
b) Sales promotion ............................................................................................. 28
c) Public relations ............................................................................................... 29
d) Selling ............................................................................................................ 29
vii) Product / service quality strategies ................................................................... 29
viii) Pricing strategies ............................................................................................. 29
ix) Distribution strategies ........................................................................................ 30
Moxie’s Classic Grill................................................................................................... 30
i) Sales ................................................................................................................... 30
ii) Market Share ...................................................................................................... 30
iii) Target Market .................................................................................................... 30
vi) Positioning ......................................................................................................... 31
v) Marketing Objectives .......................................................................................... 31
vi) Promotion Strategies ......................................................................................... 31
a) Advertising...................................................................................................... 31
b) Sales promotion ............................................................................................. 32
c) Public Relations .............................................................................................. 32
d) Selling ............................................................................................................ 32
vii) Product/Service Quality Strategies ................................................................... 33
viii) Pricing Strategies ............................................................................................. 33
ix) Distribution Strategies ....................................................................................... 33
Michael’s Back Door .................................................................................................. 34
i) Sales ................................................................................................................... 34
ii) Market Share ...................................................................................................... 34
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4. Saucy Grill Marketing Plan November 7, 2011
iii) Target Market .................................................................................................... 34
iv) Positioning ......................................................................................................... 34
v) Market Objectives .............................................................................................. 35
vi) Promotion Strategies ......................................................................................... 35
a) Advertising...................................................................................................... 35
b) Promotions ..................................................................................................... 35
c) Public Relations .............................................................................................. 35
d) Selling ............................................................................................................ 36
vii) Product/Service Quality Strategies: .................................................................. 37
viii) Pricing: ............................................................................................................. 37
ix) Distribution Strategies ....................................................................................... 37
4. MACRO-ENVIRONMENT SITUATION .................................................................. 38
a) Demographic Environment .................................................................................... 38
b) Economic Environment ......................................................................................... 40
c) Natural Environment .............................................................................................. 40
d) Technological Environment ................................................................................... 41
e) Political/legal Environment .................................................................................... 41
f) Socio/cultural Environment ..................................................................................... 42
5. SWOT Analysis..................................................................................................... 43
Business Strengths Analysis ..................................................................................... 43
Business Weaknesses Analysis ................................................................................ 43
Market Opportunities Analysis ................................................................................... 44
Market Threats Analysis ............................................................................................ 44
6. ISSUES Analysis .................................................................................................. 46
7. RECOMMENDED ONE YEAR OBJECTIVES ....................................................... 48
A) Financial Objectives and Rationale ....................................................................... 48
B) Overall Marketing Objectives and Rationale ......................................................... 49
8. RECOMMENDED ONE YEAR MARKETING OBJECTIVES AND STRATEGIES 50
A) Target Market ........................................................................................................ 50
i) Objectives and Rationale .................................................................................... 50
ii) Strategies and Rationale .................................................................................... 50
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5. Saucy Grill Marketing Plan November 7, 2011
B) Positioning ............................................................................................................ 51
i) Objectives and Rationale .................................................................................... 51
ii) Strategies and Rationale .................................................................................... 51
C) Product ................................................................................................................. 51
i) Objectives and Rationale .................................................................................... 52
ii) Strategies and Rationale .................................................................................... 52
D) Pricing ................................................................................................................... 52
i) Objectives and Rationale .................................................................................... 56
ii) Strategies and Rationale .................................................................................... 53
E) Distribution ............................................................................................................ 53
i) Objectives and Rationale .................................................................................... 56
ii) Strategies and Rationale .................................................................................... 53
F) Selling ................................................................................................................... 54
i) Objectives and Rationale .................................................................................... 56
ii) Strategies and Rationale .................................................................................... 54
G) Services ................................................................................................................ 55
i) Objectives and Rationale .................................................................................... 56
ii) Strategies and Rationale .................................................................................... 55
H) Advertising ............................................................................................................ 55
i) Objectives and Rationale .................................................................................... 55
ii) Strategies and Rationale .................................................................................... 55
I) Sales Promotion ..................................................................................................... 56
i) Objectives and Rationale .................................................................................... 56
ii) Strategies and Rationale .................................................................................... 56
J) Public Relations ..................................................................................................... 57
i) Objectives and Rationale .................................................................................... 57
ii) Strategies and Rationale .................................................................................... 57
K) Research and Development .................................................................................. 57
i) Objectives and Rationale .................................................................................... 57
ii) Strategies and Rationale .................................................................................... 57
L) Consumer Research.............................................................................................. 58
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6. Saucy Grill Marketing Plan November 7, 2011
i) Objectives and Rationale .................................................................................... 58
ii) Strategies and Rationale .................................................................................... 58
9. RECOMMENDED ONE YEAR ACTION PLAN ..................................................... 59
10. PROPOSED ONE YEAR MARKETING BUDGET ................................................ 68
11. MARKETING CONTROLS .................................................................................... 71
a) Explanation of how the proposed Marketing Plan recommendations address the
stated issues (Section 6) and objectives (Sections 7 and 8)...................................... 71
b) Methods to be used to monitor and evaluate the Marketing Plan. ......................... 74
12. EXHIBITS .............................................................................................................. 78
Exhibit 1 – Re-launch Website ................................................................................... 78
Exhibit 2 – Social Media ............................................................................................ 80
Exhibit 3 – Local Advertisements (flyers) ................................................................... 81
Exhibit 4 – Incentives ................................................................................................. 83
Exhibit 5 – Testimonial Page ..................................................................................... 85
Exhibit 6 – Loyalty Program ....................................................................................... 85
Exhibit 7 – Sponsorships ........................................................................................... 87
ENDNOTES .................................................................................................................. 88
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7. Saucy Grill Marketing Plan November 7, 2011
EXECUTIVE SUMMARY
The enclosed marketing plan is an analysis of Saucy Grill’s business and overall operations.
The following list of recommendations has been listed in priority and if implemented, should
improve upon sales and profits of Saucy Grill’s business.
1) The website needs to be re-launched as it is currently out of operation.
● Saucy Grill should get a new website up and running soon, in order to improve
restaurant credibility and retain loyal customers.
2) Expand the catering business as this is an under-served market for Saucy Grill.
● Build awareness of the catering business to potential clients and increase catering
services to existing clients.
3) Use social media effectively to create brand awareness and stay connected with
customers.
● Begin using social media more actively to connect with customers, utilizing sites
such as: LinkedIn and Facebook as these are popular social media sites potential
clients may already be using.
4) Continue and expand local advertising in Streetsville by use of newspapers and
flyers.
● Continue advertising in the Mississauga area, but begin to advertise in the Toronto
Star. Use of flyers inserts, to reach a targeted number of people.
5) Start utilizing the vacant lot (Saucy on the Side) as it is currently being
underutilized.
● Saucy Grill is renting a vacant lot next to the restaurant, which is currently being
used as external storage. The lot must be accessed from a door outside of the
restaurant, causing a slowdown in accessing storage.
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8. Saucy Grill Marketing Plan November 7, 2011
6) Start using incentives to keep and attract new customers.
● Begin using promotional incentives on weekdays to promote business during slow
periods.
7) Start making use of testimonials in the re-launched website to strengthen Saucy
Grill’s brand image.
● Incorporate a testimonial page so Saucy Grill can project a positive image to
potential customers.
8) Saucy Grill should start to implement a loyalty program.
● Saucy Grill should increase its relationships with customers, through the use of
loyalty programs to better retain clients.
9) Bring in live entertainment to create an ambiance for the restaurant.
● Direct and in-direct competitors in Streetsville use live entertainment to attract
customers. Saucy Grill should also use live entertainment to compete with other
restaurants in the area.
10) Expand the use of sponsorships in the local communities.
● Becoming positively known in the community will build good will for Saucy Grill and
draw customers into the restaurant.
11) Saucy Grill should look at updating its interior decor, to keep up with new design
trends.
● The decor should be modified to enhance the ambiance in the restaurant, by utilizing
modern design trends in the restaurant industry.
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9. Saucy Grill Marketing Plan November 7, 2011
1. MARKET SITUATION
The market situation will give a detailed look into the foodservice industry in the
Streetsville area (Mississauga, Ontario). We will be looking at the industry that Saucy Grill
competes in, which is the full service, fine-dining restaurant sector.
a) Definition of the market
The following section will define the market that Saucy Grill competes in as well as
some direct competitors that Saucy competes with.
• Saucy Grill is classified in the food service industry as a full service
restaurant, particularly in fine-dining, located at 111 Queen St. S,
Streetsville, Mississauga, Ontario.
• Saucy Grill specializes in catering to private weddings, corporate
gatherings, private parties, social events, showers and on or off site.
• Catering represents 2 to 3% of overall sales.
• Saucy Grill’s direct competitors listed by location include:
Mississauga, ON Oakville, ON
• Moxie’s Classic Grill • Stoneboats
• The Keg Steak House • Trattoria Timone
• Michael’s Back Door • Oliver’s
• La Castile Steakhouse • Jonathan’s
• Breakwater
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10. Saucy Grill Marketing Plan November 7, 2011
b) Market Size and Growth 1
This section is an overview of the food service industry as a whole and the
forecasted market growth.
• In Canada, the foodservice industry is expected to grow at an average
annual rate of 3.6%, which is slightly lower than 4.1%, the growth
experienced in 2005 to 2008.
• Limited service restaurants will lead in growth in the food service industry,
with an average growth of 1.3% up until 2014.
• Full service restaurants will grow annually, at a rate of approximately
1.2% by 2014.
• This predicted growth is anticipated due to the recovery from the
economic recession.
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11. Saucy Grill Marketing Plan November 7, 2011
• In 2010, foodservice industry sales increased 3.1% which resulted in a
growth of 1.8 billion dollars. 2
• The following chart represents the percent change in the market from
2008 to 2009 and from 2009 to 2010.
Table 1
Canadian Restaurant and Foodservices Association (CFRA) Forecast 2009-10
c) Segmentation of the market 3
This section will break down the market into distinct identifiable groups. This break
down will cover various types of restaurants that are in the full service restaurant
industry. Furthermore, this will look at specific customer groups who would be in the
market to utilize the services provided by a full service restaurant.
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12. Saucy Grill Marketing Plan November 7, 2011
Segmentation of the businesses in the full service restaurant sector:
Licensed/Unlicensed fine-dining: 4
• The dress codes in most fine-dining restaurants do not permit casual
wear.
• They have top notch service having servers with minimal tables, up to two
servers per table, sometimes with a Maitre D’ overseeing it.
• The menus are very classy with items being made with fresh quality
ingredients.
• Smaller portions of food are made with extreme attention to detail making
food look and taste great.
• Expect to pay a premium for the food and services that you receive.
• It is very likely reservations must be made on busy nights at a fine-dining
restaurant.
• Most fine-dining restaurants are not franchises or have multiple chains.
Casual Dining: 5
• Casual dining restaurants offer moderately priced food serving a larger
market.
• They service in between the fast food and fine dining market.
• The atmosphere is with a more casual dress code.
• They typically provide table service unless it is a buffet style restaurant.
• It is typical to have a full bar, with separate bar staff.
• Casual dining restaurants usually have larger beer menus and a limited
selection of wines.
• Frequently they are part of a larger chain and have multiple locations.
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13. Saucy Grill Marketing Plan November 7, 2011
Family Restaurants: 6
• Family restaurants are more affordably priced and have fixed menu items
available.
• The restaurant is more open with booths and large tables for families.
• Table service provided at family restaurants offer minimal service.
• Minimal alcoholic beverages are offered, including liquor and a few
popular brands of beer.
• Staying true to their name, they are typically single-family businesses.
Restaurant Bars: 7
• These establishments are moderately priced in the food and drinks
offered.
• They are typically open concept due to the nature and atmosphere of the
restaurant.
• They offer common food and meal choices to customers.
• Have full bars with usually multiple bar tenders and bus boys.
• Table service is provided to guests usually for rounds of drinks.
• Offer a wide array of domestic and imported beer in bottles as well as on
tap.
• Have numerous types of liquors and provide mixed drinks as well.
Segmentation of major consumers for full service restaurants 8
This segmentation of the consumer market was provided by a company
called Prizm, which specializes in identifying various customer groups. The titles
and all descriptions of these customers have been borrowed from Prizm. Since
this is a school project we were granted access to this information.
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14. Saucy Grill Marketing Plan November 7, 2011
Money & Brains:
• They are typically older couples or families living in urban areas.
• All of the people in this segment have gone to university and have white-
collar jobs.
• They are usually English speaking and have an average income of
$123,359.
• Most are homeowners; enjoy tennis and other upscale luxuries associated
with this segment.
• They are prosperous parents and are considered urban elites.
Cluttered Nests:
• These are older couples and have multi-generational families in the
household.
• They can be considered to be upper-middle class with either a university
degree or a high school diploma.
• Typically this segment could have either a white-collar job or a higher
paying service job.
• They are well-off averaging an income of approximately $88,436 a year.
Electric Avenues:
• This segment tends to be a younger group consisting of either singles or
couples.
• They are English speaking with either a white-collar or service jobs.
• Although this group is either younger singles or couples they are well off
with an income of about $85,464.
• Due to their high incomes they are university graduates and are
considered middle-class.
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15. Saucy Grill Marketing Plan November 7, 2011
Grads and Pads:
• This segment consists of mostly younger single individuals.
• They have either a white-collar job or work in the service industries.
• Most of them are recently graduated university students starting their
careers.
• All enjoy a modest annual income of approximately $61,246 and are
considered lower-middle class.
Blue Collar Comfort:
• Middle-aged families make up this consumer market segment.
• Just as the name suggests these are blue-collar and service workers.
• These people have completed high-school or college as their education.
• They are considered upper-middle class with an income of about $88,436
and they are homeowners.
d) Distribution Channels
This section deals with how all of the various types of competitors distribute their
products to the end consumers. This is also broken down into the various types of
restaurants under the full service restaurant heading.
Licensed/Unlicensed Fine-Dining: 9
• Companies in this segment usually offer “dine-in” as their only option due
to the specialization of the meals and the unique plating.
• These restaurants would also do catering either in house or on site for
special events.
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16. Saucy Grill Marketing Plan November 7, 2011
Casual Dining: 10
• Establishments in this market place offer larger distribution options than
fine dining, since plates are more standardized and quality is lower.
• They typically offer a dine-in option; have a take-out menu, and some
even offer delivery on most products.
Family Restaurants: 11
• These restaurants being smaller usually do not offer any delivery.
• They do however offer dine-in services and the option to order take-out to
pick up.
Restaurant Bars: 12
• Companies who are restaurant bars also offer dine-in being in the full
service sector but typically offer take-out on food items only.
• Rarely delivery will be offered since menu items are fairly generic and no
alcohol is available for take-out orders.
e) Consumer Needs
The following points depict various consumer needs that are expected when
ordering food from companies in the food service industry:
• A large variety of items to choice from, Items such as healthy and organic
meals. 13
• Consumers want healthy higher quality products, such as fresher produce
and better cuts of meat. 14
• Excellence in service is very important for companies in the foodservice
industry, who want to be successful.
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17. Saucy Grill Marketing Plan November 7, 2011
• Presentation of the food is important to customers as well as the
atmosphere.
f) Consumer Preferences 15
This section summarizes some of the consumer’s preferences while dining out:
• Excellent customer service that is professional, convenient and timely.
• A menu which offers customers to choose from a variety of appetizers,
main dishes and desserts.
• Consumers are always looking for a less expensive and more affordable
meal while not sacrificing taste and service.
• Different options such as a vegan and vegetarian alternatives.
• Consumers are leaning towards healthier options due to increasing health
concerns and dietary needs. 16
• Consumers want to be able to customize their meal, by being able to add
and remove items.
• Consumers want the option to dine inside, or outside on a patio.
• Consumers are drawn to restaurants with promotions and specials such
as 10% off meals and discounted drink nights.
• Consumers want professional chefs cooking their meal, in order to receive
the best quality food.
g) Consumer Perceptions
This section will cover some consumer perceptions of the food service industry:
• Due to the recession, consumers want more value for their dollar. 17
• Customers go out to restaurants to enjoy socializing with friends, family
and co-workers. 18
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18. Saucy Grill Marketing Plan November 7, 2011
• Customers want the option to be able to go into a restaurant and
customize their meals. 19
h) Consumer Buying Behaviors Trends
The following dining trends are taking place in the food services market:
• Consumers are more health conscious and are purchasing healthier items
on the menu such as salads, and red wines. 20
• Maintaining a healthy balanced diet and leading an active lifestyle is
increasingly important to consumers.
• Consumers want to go out and enjoy an upscale meal, but with a desire to
pay less. 21
• Consumers often want the calories listed beside the item on the menu
because they are becoming very health conscious. 22
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19. Saucy Grill Marketing Plan November 7, 2011
2. CLIENT’S BUSINESS SITUATION 23
a) Review of Client’s Business:
i) Sales (in units and/or dollars) for past three years:
The following sales numbers are an estimated figure of weekly sales based on the
information Saucy Grill has provided. Based on the weekly sales, we have
calculated that the average sales per year are $1,300,000.
• $25,000 X 52 = $1,300,000 per year
ii) Market share (in units and/or dollars) for past three years
• Saucy Grill competes directly with two restaurants in Mississauga:
• The Keg
• Moxies
• The location of competitors are listed on the map on the following page
• Based on its annual sales, Saucy Grill likely has a large market share in
Mississauga.
• Given its location in a highly populated entertainment district, Saucy Grill
attracts lunch hour customers, and those on their way home from work.
• It also attracts families and couples who are looking for a night out for dinner.
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20. Saucy Grill Marketing Plan November 7, 2011
iii) Target Market
• Saucy Grill has a broad appeal that attracts individuals who are looking for
a casual fine dining experience.
• Saucy Grill main target market is businesses, with customers ranging in
age from 25-60.
• Evenings and weekends are targeted towards couples between 25-35,
and families with an average middle income.
• Saucy Grill’s business is 1/3 lunch and 2/3 dinner. No lunch is offered on
weekends.
iv) Positioning
• Saucy Grill positions itself as a casual fine dining restaurant offering fresh
made, in house meals with excellent service in a relaxed environment.
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21. Saucy Grill Marketing Plan November 7, 2011
• Saucy Grill also offers catering for mostly corporate business events.
• Saucy Grill is “Classy yet social allowing you to relax and enjoy your
company and food in a comfortable environment.” 24
• Saucy offers fresh made food prepared on site.
v) Marketing Objectives
Saucy Grill’s current marketing objectives are as follows:
1. To increase sales by 5% during week nights in the next 3 months.
2. To sustain sales at an increase of $10,000 per month over the next year.
3. To maintain the loyalty of their corporate business customers while
meeting the goals outlined in the above two objectives.
vi) Promotion Strategies
a) Advertising
• Saucy Grill advertises in the Entertainment Book that is distributed to the
Greater Toronto Area.
• Most promotion is done through word of mouth.
• Saucy Grill also places business cards in The Delta Meadowvale and The
Marriott Hotels, for patrons to choose a restaurant while staying at the
hotel.
• Saucy Grill advertises in the local newspaper “The Mississauga News”
and on the “Village of Streetsville” website.
• Saucy Grill’s website provides customers with the menu, pictures of the
restaurant and upcoming special events.
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22. Saucy Grill Marketing Plan November 7, 2011
b) Sales Promotion
• Saucy offers a “Taste of Saucy” menu including a three course meal at a
set price of $32 which is available to customer’s every day, but changes
are made to this menu monthly.
• The “Taste of Streetsville” three course meal is set at a price of $25 and is
done twice a year.
• They offer 10% off for takeout customers due to the reduction in service
required.
c) Public Relations
• “Taste of Streetsville,” which is done twice a year, helps improve the
image Saucy Grill has in the neighborhood, and with other local
businesses.
d) Selling
• Saucy Grill offers in house or take out services as well as catering for
corporate events, weddings, and family gatherings.
• One of Saucy Grill’s selling strategies is to have experienced staff know
the food, wine, and liquor menu very well.
• The staff provides information about specials and provides
recommendations.
• Saucy seats 122 people inside and 24 people on the outside patio.
vii) Product / Service Quality Strategies
• Saucy always provides fresh ingredients and in house specialties.
• Strong relationship building with customers is encouraged, making
customers feel welcomed in a classy social environment.
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23. Saucy Grill Marketing Plan November 7, 2011
• They provide customers with a friendly welcome and prompt service.
• The menu options are continuously being modified.
viii) Pricing strategies
• Saucy is priced competitively with fine dining restaurants in the Greater
Toronto Area.
• Saucy offers a 10% discount for all items on their takeout menu.
• Saucy offers a three course meal special with a variety of choices to
choose from for $32.
ix) Distribution strategies
• Saucy Grill distribution channels include dine-in and take-out.
• Hours of operation include Monday 11:30am to 9pm and Tuesday to
Friday 11:30am to 10pm, Saturday 4pm to 10pm and Sunday closed.
b) Summary of Key Findings from the Marketing Research Project
Research through a self-administrated survey was conducted for academic purposes at
Sheridan College, intended to provide background information for Saucy Grill, a fine dining
restaurant located in Streetsville, ON. Research was conducted to provide a deeper
understanding of consumer attitudes towards fine dining restaurants. The survey findings
should be replicated by an independent, professional research company before being acted
upon.
Research Methodology
Population of interest included people who dine-in at fine dining restaurants for business
and/or personal purposes. Surveys were distributed during January - April 2011. A goal of
300 surveys was nearly reached with a total of 295 surveys completed using the online
survey tool, Survey Monkey (117) and standard hard copies (178). Surveys were given out
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24. Saucy Grill Marketing Plan November 7, 2011
at Sheridan College; survey links were posted on Facebook and LinkedIn and given to
employees at various businesses throughout the GTA (Oakville, Mississauga, and Toronto).
Some key limitations of conducting this survey are that the survey may not have reflected
the population due to the sample size of the survey. Also, inaccurate responses may have
resulted from respondents believing the survey was too long.
Significant findings related to our research objectives were found through analysis of the
survey results. The research objectives are as follows and are in order of priority:
1. To determine the profile of customers who eat at fine dining restaurants.
2. To determine the buying behaviours of consumers who eat at fine dining
restaurants.
3. To determine what sources of information people use when deciding to use
fine dining restaurants.
4. To determine the ideal attributes and experiences consumers have from a fine
dining restaurant.
5. To determine respondents most recent dining experience.
6. To identify consumers needs towards catering for special family events from
fine dining restaurants.
7. To determine occasions that customers would use catering services from a
fine dining restaurant.
8. To determine what customers look for when ordering take out food from a fine
dining restaurant.
Key Findings
• Most respondents were between the ages of 25-34 accounting for 32.5% of the
sample.
• Slightly over half of respondents at 50.9% said they rarely use fine dining services
for business purposes. Meanwhile, 40.1% of those who were surveyed said they go
out at least once a month for personal reasons.
• Out of all the respondents 90% agreed that it is important that the servers be
knowledgeable and 95.2% of those surveyed agreed that cleanliness is important in
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25. Saucy Grill Marketing Plan November 7, 2011
fine dining restaurants. Friendly and courteous employees were also ranked high by
respondents with 91.9% stating it is important.
• The Keg was the most visited fine dining restaurant with 29.8% of respondents
saying The Keg was their last fine dining experience. Those who work in the
Management and Business sector stated they dined out at The Keg as their recent
fine dining restaurant experience.
• Catering services is most frequently requested when consumers are a part of a
wedding, with 84.7% of respondents feeling it is likely needed. 81% of respondents
feel that delivery time for a catering service is extremely important.
• 98.3% of consumers believe having a varied menu selection is important when
ordering take out.
• The two main sources of information consumer’s use when deciding on a fine dining
restaurant are referrals and reputation, both having 95% of the respondents agree.
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26. Saucy Grill Marketing Plan November 7, 2011
3. COMPETITIVE SITUATION
a) Definition of primary and secondary competitors
Primary Competition:
• The Primary competition for Saucy Grill in the casual fine dining restaurant
industry is The Keg, Moxies and Michaels Back Door. These are considered to
be Saucy Grill’s direct competitors because they offer high quality of food,
acceptable service, and a comfortable atmosphere.
Secondary Competition:
• The Secondary competition for Saucy Grill consists of indirect competitors
such as full-service restaurants that are priced medium to low (Ex. Kelsey`s,
Boston Pizza), and fast food restaurants that are priced extremely low (Ex.
McDonalds, Subway).
b) Review of competitors
The Keg: 25
The Keg is a chain of upscale restaurants in the United States and Canada. The Keg
specializes in serving only the finest cuts of meat. They also offer slow roasted prime
rib, shellfish, fresh salads, a variety of desserts and wine list. As of right now The Keg
has 102 restaurants ranging from coast-to-coast in Canada, and has locations in the
United States such as Phoenix, Dallas/Fort Worth, Denver and Seattle.
The Keg has many similarities to Saucy Grill such as food items, promotional offers,
and atmosphere. The Keg can be considered one of Saucy Grill main direct
competitors.
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27. Saucy Grill Marketing Plan November 7, 2011
i) Sales 26
• The Keg’s main revenue is from sales in the restaurant, franchise royalties
and fees.
• The Keg Rights Limited Partnership grants an exclusive licence to use the
Keg Righs to licence and make royalty payments to the Partnership equal
to 4% of gross sales of Keg restaurants.
• The gross sales reported by the 102 Keg restaurants in the Royalty Pool
were $110,382,000 for the last quarter in 2010, an increase of $2,050,000
or 1.9% from the comparable quarter of the prior year.
• The chart below shows the total sales in millions from The Keg restaurants
ii) Market share
• Market share is not available for The Keg.
• Within Ontario there are 41 Keg locations, two are in Mississauga alone.
iii) Target Market
• The target market consists of males and females and business oriented
consumers, aged 20 and over, who are employed with middle to high
income salary.
• The Keg attracts individuals that are looking for an upscale dining
experience.
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28. Saucy Grill Marketing Plan November 7, 2011
iv) Positioning
• The Keg Steakhouse & Bar positions itself as a restaurant striving on three
key ingredients: quality, comfort and value. 27
v) Marketing objectives 28
1. To increase sales by 2.5% in the next year.
2. To open at least 2-3 more stores within the next year in Canada or the
United States.
3. The increase awareness of The Keg.
4. To provide customers with great service and excellent food to encourage
repeat business.
vi) Promotion Strategies
a) Advertising 29
• The Keg uses television commercials to promote their restaurant and
specials.
• They run advertisements in local newspapers.
• The Keg also advertises on their own website providing customers
with menus, specials, contact information and franchising information.
• The Keg has a newsletter that customers can sign up for to learn
about the latest promotion and offers.
b) Sales promotion 30
• The Keg newsletter provides customers with features and promotions.
• The Keg offers features on their menu for a lower price for a time
period to promote the dish.
• The Keg has Monday-Thursday cheaper drink night.
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29. Saucy Grill Marketing Plan November 7, 2011
c) Public relations 31
• Keg employees are encouraged to donate their time and energy to
local initiatives that benefit their communities such as participating in
local charity walks, filling the storerooms of emergency shelters, or
providing special dinners for families in need.
• The Keg also supports many charities such as Big Brother Big Sister,
Free the Children, Youth in Motion top 20 under 20, and many more.
d) Selling 32
• The Keg offers in house and take out services.
• The Keg offers a bar, lounge atmosphere, comfortable restaurant area,
and a heated patio.
• The staff is well trained and provides customers with
recommendations and daily specials.
• The Keg in Mississauga is located in a very popular area, with lots of
stores and restaurants in the area.
• Within Ontario there are 41 Keg locations.
vii) Product / service quality strategies 33
• The staff provides friendly service by greeting consumers at the entrance
and showing them to their seat.
• The Keg is positioned as having the best steak with a great blend of flavors
and the best high quality of beef.
• Healthy options are offered throughout the menu in a variety of soups,
salads, sandwiches and drinks.
• The nutritional information is provided to the customer upon request, and
can be viewed online.
viii) Pricing strategies
• The Keg is priced more expensively than its competitors because of the
high value of food it offers.
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30. Saucy Grill Marketing Plan November 7, 2011
• The Keg offers promotions on their features.
• During the week, they offer lower prices at happy hour” for cocktails and
drinks.
ix) Distribution strategies 34
• The Keg offers a dine-in and take-out option.
• The Keg is open from Monday – Wednesday 11:30am-11pm and from
Thursday-Friday 11:30am-Midnight, Saturday 3pm-Midnight and Sunday 3pm-
11pm.
Moxie’s Classic Grill
Moxie’s is an upscale, casual dining restaurant and bar, with an atmosphere that makes you
feel welcome and relaxed. With an elegant dining room and an upbeat lounge to make
guests have the best dining experience possible. Moxie’s focuses on excellent food quality
and services. The company’s dynamic offering appeals to many audiences including
families, students, couples and business professionals. Moxie’s was founded in Calgary in
1986, with more than 55 restaurants located in five provinces, including British Columbia,
Alberta, Saskatchewan, Manitoba and Ontario. 35
i) Sales
• Moxie’s main revenue occurs from sales in the restaurant.
• Moxie’s generates about $100,000 a week in revenue per location. 36
ii) Market Share 37
• Moxie’s has 55 restaurants across five provinces in Canada.
• Yearly system sales of over $28.6 million.
iii) Target Market 38
Moxie’s has multiple target markets due to having a dining area and a lounge.
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31. Saucy Grill Marketing Plan November 7, 2011
Dining Room
• The Dining room brings in a crowd of families, couples and business
professionals to have a quiet place for meetings.
• The music is softer and the lighting is dimmed.
Lounge
• Moxie’s lounge and bar is age restricted at 19 plus.
• The lounge brings in business professionals, couples and students who are
looking to have an upbeat relaxing experience.
• Servers are friendly and easy to have a conversation with.
vi) Positioning 39
• Moxie’s positions themselves as an “upscale ‘non-themed’ restaurant, coupled
with superior quality food offerings and service.”
• “It is our primary goal to provide a positive experience for each one of our guests.
From our freshly prepared food to our guest focused service we continually strive
to maintain and improve our guests’ experiences.”
v) Marketing Objectives 40
1. To expand from Atlantic Canada and Quebec to Vancouver island.
2. To achieve a high level of long-term restaurant profit.
3. To maximize the profit potential of our sales.
vi) Promotion Strategies 41
a) Advertising
• Moxie’s does a lot of in store advertising promotions with direct
communication from servers.
• Servers tell guests about on coming holiday features and promotions
including New Year’s set menu.
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32. Saucy Grill Marketing Plan November 7, 2011
• Moxie’s uses Twitter and Facebook to advertise upcoming events and
specials. 42
• Moxie’s also has commercials and media ads.
b) Sales promotion
• Moxie’s offers a daily drink feature throughout the week:
• Monday: Euro and Amber drafts $3.99
• Tuesday: Margaritas $3.99
• Wednesday: Bellini’s $3.99
• Thursday: Martinis $5.99:Big Life Grasshopper and Gopher pints $4.99
• Friday: Bad boy Beers $7.99 and GT’s $5.99
• Saturday: Long Island Icebergs $5.99
• Sunday: Caesars $4.99
• Monday nights at Moxie’s is wing night, one pound of wings is for $3.99
• When you buy corporate gift cards you save money 43
• $500 - $999 save 5%
• $1,000 - $4,999 save 10%
• $5,000+ save 15%
c) Public Relations
• Moxie’s is involved in a charity golf tournament fund raiser. This charity
supports breakfast for learning, a leading nonprofit organization.
• After the event Moxie’s Classic grill located in Guelph held a steak dinner for
those who participated in the event. 44
• Moxie’s has also sponsored an annual charity golf tournament for the
Canadian Centre of Diversity. 45
d) Selling
• Moxie’s has over 55 locations in Canada and is continuing to grow.
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33. Saucy Grill Marketing Plan November 7, 2011
• Servers let guests know about the features of the day.
• The menu has a separate section for children’s menu.
• On average Moxie restaurants have 225 seats available divided between the
dining area, lounge, bar and patio.
vii) Product/Service Quality Strategies 46
• Every season Moxie’s comes out with a seasonal menu, to change up the
choices available to keep with trends.
• Moxie’s motto is “whatever you’re in the mood for” With a wide range of food
choices to satisfy everyone.
• “Moxie’s focuses on superior food quality, exceptional service and prices that
represent great value for guests.”
• “We will surprise them with ongoing refinements and new additions of the
offering. Our quality, value, décor, product presentation and people speak to the
high standard required to exceed the expectations of the marketplace.”
viii) Pricing Strategies 47
• Moxie’s is competitively priced and deliver high quality products and services for
a reasonable price.
• Servers offer meals that always have room for up sells (add chicken, salmon,
shrimp, steak, mushrooms, sauces, etc).
• Prices may vary by location and are subject to change.
ix) Distribution Strategies 48
• Moxie’s offers dine in or take out.
• Hours of operation vary depending on location.
• Many locations open at 11am and close at 12pm Sunday – Thursday and closes
at 1am Friday and Saturdays. 49
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34. Saucy Grill Marketing Plan November 7, 2011
Michael’s Back Door
Michael’s Back Door is a restaurant with award winning cuisine and professional
courteous service in a warm, comfortable atmosphere. Michael’s Back Door is a fine dining
Italian restaurant offering fresh ingredient, and a large variety of food and wine. Michael’s
Back Door offers catering, take-out, private events, special events, and offers a casual or
romantic restaurant experience. 50
i) Sales
• Information is not available
ii) Market Share
• Information is not available
iii) Target Market
• Michael’s Back Door target market is individuals ranging from 19-65 who enjoy a
casual dinner, a romantic night out or a group outing.
• Target market ranges from middle class to high income families.
iv) Positioning 51
• Michael’s Back Door positions themselves as a casual elegant Italian continental
restaurant
• They offer the freshest ingredients in a variety of wines.
• They have multiple different rooms to cater to everyone’s needs such as Banquet
room, full bar, wine room, piano room, nonsmoking restaurant, private room, and
patio.
• Michaels Back Door is successful in bringing a comfortable home environment to
dine-in customers.
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35. Saucy Grill Marketing Plan November 7, 2011
v) Market Objectives 52
1. To increase awareness of Michael’s Back Door in the 19 to 65 age group.
2. To ensure the loyalty of their weekly customers.
3. To increase sales in the week with their lunch crowd.
vi) Promotion Strategies
a) Advertising
• Michael’s Back Door advertises through social media such as Facebook and
Twitter.
• They advertise in the local Clarkson newspaper.
• Michael’s Back Door offers a website with easy access, detailed menus, and
detailed services they provide.
b) Promotions 53
• Michael’s offers “Taste of Clarkson” which is a three course meal lunch for
$15 and a dinner for $25 dollars.
• They offer a bonus of $25 gift certificate for every gift certificate purchase of
$125 or more. They also offer complementary delivery via Canada Post.
• They celebrate 29 years for 29 days at 29 dollars. They offer a three course
meal for $29 for 29 days. They also give away a $50 gift card every day for
29 days.
c) Public Relations 54
• Michael’s Back Door restaurant is involved in the Hockey Hall of Fame charity
presenting the art of hockey. They do a silent auction presented by the
Hockey Hall of Fame and Michael’s Back Door in benefit of shoot for cure
spinal cure research. They also offer special prefix menu and raffle tickets.
• Michael’s is involved in an annual royal Ontario golf club tournament in
Oakville. They have raised over $7,100 for the Ian Anderson House Charity.
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36. Saucy Grill Marketing Plan November 7, 2011
• Michael’s took place in an event featured multiple course dinners with a
selection of breads and white wines and all proceeds were donated to the
Heart House Hospice Charity.
d) Selling 55
• Michael’s Back Door offers in house dining experience, take-out, catering,
private functions, and run special events.
• Michael’s offers fresh and rare wines for their customers to enjoy.
• Each room accommodates a certain number of guests. Solarium which is a
semi-private room holds 22 guests, wine room full private room for 16 guests,
piano room which accommodates 40 guests for a sit down, or 80 for sit-down
reception and their main dining area holds over 100 guests.
• Michael’s provides easy online reservations.
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37. Saucy Grill Marketing Plan November 7, 2011
vii) Product/Service Quality Strategies:
• Michael’s Back Door is an award winning cuisine with professional courteous
service in a warm comfortable atmosphere.
• They offer healthy foods by providing the freshest ingredients.
• They offer a variety of Italian food choices from salads, soups, pizzas, pasta,
seafood, and deserts.
• Michael’s prides themselves on serving the freshest ingredients, and building
long term guest relationships.
viii) Pricing:
• Michael’s Back Door is competitively priced offering a variety of foods priced
accordingly.
• Michael’s offers a variety of rare wines at different price ranges. They offer it by
glass, ½ Liter or bottle ranging from prices of $26- $400.
• They offer “Taste of Clarkson” at a lunch price of $15 and a dinner price of $25.
ix) Distribution Strategies
• Michael’s Back Door distribution channels include: dine in, take-out, and catering.
• Hours of operation include Sunday-Monday: 5pm-9pm Tuesdays-
Thursday11:30am-2:30pm and 5pm-9pm, Friday-Saturday 5pm-10pm.
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38. Saucy Grill Marketing Plan November 7, 2011
4. MACRO-ENVIRONMENT SITUATION
a) Demographic Environment
Canada 56
• In 2009 Canada’s population was 31.9 million. It has grown by 3% from 2001. Due
to the population increasing, restaurants have a great opportunity to gain awareness
and revenue. 57
a. To date Streetsville has a total population of 42,327. This has increased by
17% from 2006. 58
b. Saucy Grill is a prime target for households living in Streetsville. The average
household income is $114,339. This falls right into Saucy Grill’s target
market. 59
c. Most people living in Streetsville are married couples looking for high end
casual sit down restaurants.
Streetsville population details: 60
• The age range of people living in Streetsville is typically between 20 and 44 years
old. At this age, people go out more often for entertainment and dinners. 61
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39. Saucy Grill Marketing Plan November 7, 2011
Streetsville family details: 62
• The average Canadian spends $123.76 on food per week. $37.52 of this is spent at
restaurants. 63
• Below is a chart that shows average gross income in by year. Income rates are
keeping pace with inflation.
Table 2 64
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40. Saucy Grill Marketing Plan November 7, 2011
b) Economic Environment
• Due to Canada’s unemployment rate being lower than other countries coming out of
the recession, in 2011, consumer spending is expected to increase 2.8%. 65
• The restaurant industry is affected as interest rates change, when rates fall and
economic activity picks up, consumers are likely to dine out more often. 66
• Restaurants are affected by the economy whenever it takes a plunge, and the first
thing consumers cut down on are entertainment and dining out. 67
• Eating out has become more and more expensive over the past few years and the
cost of a meal today has tripled over the last decade due to the economy. 68
• In the restaurant industry, increasing costs of doing business affects the entire
supply chain.Starting from the farmer to the food processor, distributor, delivery of
food items and finally the increased pricing on menus. 69
• When the costs of doing business is coupled with increasing utility bills, insurances
and taxes, businesses may be operating on a very narrow margin. 70
c) Natural Environment
• Rising fuel costs internationally have affected the restaurant industry because
people do not want to travel far to go out and eat. 71
• Since there has been an increase in fuel costs, the restaurant industry increased the
cost of food items due to increase transportation costs. Rising food prices have risen
by 45% since the end of 2009. 72
• Concerns about climate effects restaurant industries with respect to an increase in
food crop prices which leads to higher menu prices. 73
• Rising biofuel productions on corn and oil in particular. 74
• An increase in severe weather such as droughts, and shorter crop seasons affects
global food production and prices. 75
• Higher input costs such as animal feed, energy, and fertilizer drive up prices in crops
for fruits, vegetables, meats, dairy and wheat products. 76
• There has been an increase in organic foods, because it contributes to a healthier
living style. The sales for organic food have increased from 2008 to 2009 by 11.4%
in the fruits and vegetable industry. This is over 24.8 billion dollars in sales. 77
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41. Saucy Grill Marketing Plan November 7, 2011
d) Technological Environment
• High-Tech hygiene and new technology is allowing restaurants to maintain food
safety and ensure cleanliness of employees. 78
• Restaurant security systems, POS systems, and scheduling systems have made it
much easier and more efficient to do business. 79
• Improving technology in restaurants by using basic CRM software, wireless ordering
devices and handheld devices improves customer experience. 80
• The future of restaurant technology will use eMenus, which is a digital, touch screen,
interactive menu system that is quick and easy for the consumer and restaurant. 81
• Accounting software is important in the restaurant business which focuses on
customer satisfaction and pricing strategies. 82
e) Political/legal Environment
• Businesses must follow employee laws under the Employment Standards Act and
the Ontario Ministry of Labour which include: minimum wages, overtime, and
employee tips. 83
• There are many permits and licenses restaurants must follow such as: A Food
Handler’s License or Permit, A Liquor License, A Sign Permit, A Music License, Fire
Certificate and many more, depending on the country and city you are in. 84
• Regulations for specific businesses include: Health and Safety Regulations,
Importing Regulations, Registering your business and many more that apply to
different areas and regions. 85
• The Smoke-Free Ontario Act affecting Bars and Restaurants, revised May 2010
prohibits smoking in enclosed workplace or public areas in Ontario. 86
• The Smoke-Free Ontario Act also prohibits smoking on outdoor patios if covered or
partially covered by a roof. 87
• The Canadian Food Inspection Agency (CFIA) provides standards on delivery of
inspection services, federally regulated sectors of Agri-food, imported foods,
managing food safety risks, food safety action plan and more information that can be
found on the CFIA website. 88
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42. Saucy Grill Marketing Plan November 7, 2011
f) Socio/cultural Environment
• As consumers are increasingly using social networking sites and e-mail, so do
restaurants use them in order to get the word out on their restaurant. 89
• The green movement is now a standard in many restaurants and hotels leaning
towards more recycling and conserving energy. 90
• Consumers are leaning towards healthier food options due to the growing concern
about our health, which can be found in Canada’s Food Guide. 91
• Special dietary needs to be addressed with regards to restaurant menus. Some
consumers have food sensitivities, allergies or intolerance. 92
• Restaurants need to adhere to the ever-changing population. Communities are
becoming more multicultural than ever. Different options become readily available
such as, Halal for Muslims and Kosher for the Jewish population. 93
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43. Saucy Grill Marketing Plan November 7, 2011
5. SWOT ANALYSIS
Business Strengths Analysis 94
• Saucy Grill’s business has been open for 10 years in Streetsville.
• They are located in a premium location in Streetsville.
• The restaurant reaches a wide variety of customers, such as corporate, families and
couples.
• They regularly advertise in local newspapers and online.
• The restaurant meets the needs of customers in three different ways: catering
services, takeout or dine-in.
• They are regularly active in in the neighborhood through various promotional
activities.
• Saucy Grill’s seating fits 122 people comfortably, which is larger than the other
restaurants in Streetsville. There is also an outside patio, which is great in the
summer.
• They offer a room for businesses to conduct meetings without distraction from the
restaurant.
• Saucy Grill uses only fresh ingredients in their meals. None of their food is frozen.
• The restaurant employs professional chefs.
Business Weaknesses Analysis 95
• Currently, Saucy Grill has no website available for current and potential customers to
view.
• The restaurant’s décor needs to be updated to meet customer’s expectation of fine
dining restaurants.
• Saucy Grill is paying for unnecessary space beside the restaurant and is currently
not using it as part of the business.
• Their open concept kitchen is not visible by the diner.
• There is no menu posted on their windows or advertised outside around the
restaurant which is key for fine dining.
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44. Saucy Grill Marketing Plan November 7, 2011
• Appropriate live entertainment is not offered which is common in restaurants around
the neighborhood.
Market Opportunities Analysis
• The Canadian population is increasing, which means a growing consumer market for
the food service industry. 96
• Increasing incomes rates in Canada will encourage greater sales in non-essential
goods and services due to higher disposable income. 97
• Social media, has become one of the most efficient ways to connect with
customers. 98
• Increased interest in organic food has opened up a new market opportunity for the
foodservice industry to serve. 99
• Use of customer databases has been proven to increase retention of customers. 100
• Advancements in POS systems have greatly increased speed of service, accuracy
and management of business resources. 101
• With the green movement, many consumers are more aware of products and
companies who make an effort to go green. 102
• Canada is a very multi-cultural society with different cuisines from all over the
world. 103
• Many companies are using customer databases to effectively promote and retain
valuable customers. 104
Market Threats Analysis
• Rising fuel costs in discouraging unnecessary travelling by consumers. 105
• Rising fuel costs are increasing the cost of goods for restaurants. 106
• Increasing costs of essential goods could cause for another increase in the minimum
wage employers must pay their employees. 107
• With consumers being more aware of green initiatives, some may choose to not use
a service from companies who are not making an effort to be green. 108
• There are numerous competitors in the casual fine dining industry, many of which
offer prices that are usually found at casual dining restaurants. 109
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45. Saucy Grill Marketing Plan November 7, 2011
• After the recent recession, there have been a lot of business closures in the
Streetsville area, bringing into consideration the profitability of that location. 110
• Many causal fine dining restaurants are open on Sundays to cater to the family
market segments. 111
• There are numerous restaurants serving the different needs and wants of Canada’s
changing demographic preferences. 112
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46. Saucy Grill Marketing Plan November 7, 2011
6. ISSUES ANALYSIS
1. Saucy Grill has minimal local advertising.
● Saucy Grill relies mostly on local print advertising.
● Currently is not effectively utilizing social media sites for the restaurant.
● There are no promotions other than “Taste of Saucy” and “Taste of Streetsville.”
● Saucy Grill does not utilize the Internet much to promote public relation activities for
the restaurant.
2. The website needs to be re-launched.
● Saucy Grill’s website has been out of operation for over 8 months now.
● Competitors have websites with online ordering available while Saucy Grill does not.
3. Search Engine Optimization is not utilized to improve visibility of Saucy Grill in
site search results.
● Not many keywords, pages, and inbound links come up in a search for “Saucy Grill”
on the first page of results.
● Local restaurants are among the most highly searched type of business; therefore,
Saucy Grill is missing out on a great advertising tool for the restaurant.
4. Customer awareness is minimal in the immediate area.
● Local neighborhood is underutilized for advertising. There are minimal signs
identifying where Saucy Grill is in Streetsville.
5. Brand image is limited due to minimal use of public relation strategies.
● Saucy Grill is not featured in local outlets or in any travel publications.
● Saucy Grill does not utilize local sponsorships to improve their brands image.
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47. Saucy Grill Marketing Plan November 7, 2011
6. Saucy Grill has limited strategies in place that improves overall operations of
the business.
● Saucy Grill uses traditional methods of taking and inputting orders, such as a pad
and paper, which increases wait times due to the process; this could potentially
affect overall order accuracy.
● The restaurant is focusing on one aspect of the business at the expense of other
potentially profitable areas, such as “Saucy on the Side - a vacant lot” and the
catering services of the business.
7. The vacant space next door, owned by Saucy Grill is being underutilized.
● There is a neighboring unit that is currently vacant and being used for little more than
storage.
● To access the equipment in this vacant lot, you must enter through an exterior
doorway and it is not an efficient workable storage area.
● Saucy Grill is paying for the rental of the vacant lot which is not being utilized
effectively.
8. Catering represents a small portion of Saucy Grill’s entire operation.
● Catering currently only contributes to 2 - 3% of the total revenue Saucy Grill makes.
● Their catering services are not promoted enough to entice new potential customers.
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48. Saucy Grill Marketing Plan November 7, 2011
7. RECOMMENDED ONE YEAR OBJECTIVES
A) Financial Objectives and Rationale
Objectives
● To increase Saucy Grill’s overall sales by 15% within a one year time period.
• In-house restaurant sales will contribute to a 10% increase to the total gross
sales.
• The catering business will contribute the remaining 5% increase to the total
gross sales.
Rationale
● The restaurant has little room for an expansion without a major renovation to the
extra lot available next door to the restaurant. By having off peak hour promotions,
Saucy Grill could realize growth in markets not previously considered. This is why
walk-in sales will contribute a 10% for the upcoming year.
● Currently Saucy Grill’s catering business represents very little to overall sales. With
additional advertising and promotion of this service, (outside of the immediate
neighborhood) good growth could be realized, building upon their corporate catering
reputation. This is why catering will contribute the remaining 5% increase to overall
sales.
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49. Saucy Grill Marketing Plan November 7, 2011
B) Overall Marketing Objectives and Rationale
Objectives
● To increase traffic from new markets.
● To increase revenues of the catering business by promoting to other
businesses and customers in the GTA.
● To effectively differentiate Saucy Grill from its competition in the area and to
position itself as an alternative not a substitute for competitors.
● To create a loyalty program and offer appropriate rewards to customers and
expand their customer base.
Rationale
● During peak times of the day Saucy Grill is already enjoying high volumes of
customers. By appealing to new target markets, Saucy Grill could see more traffic
and expand its customer base and appeal.
● By promoting the catering service to a broader market, profits and sales will increase
in the business.
● With competition in the area, it’s imperative for Saucy Grill to differentiate their
product offerings and occupy a space of its own in the minds of consumers.
● By creating and promoting the loyalty program, customers will choose Saucy Grill
over other restaurants when dining out.
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50. Saucy Grill Marketing Plan November 7, 2011
8. RECOMMENDED ONE YEAR MARKETING OBJECTIVES AND STRATEGIES
A) Target Market
i) Objectives and Rationale
● To expand the target market of business professionals.
• Based on our research, Saucy Grill’s main target market is business
professionals ages 25-35, therefore, Saucy Grill should maintain this target
market. We believe this target market should be expanded to include
business professionals aged 36-60
● To increase the target market of couples ages 25-35.
• Services for evenings and weekends should be maintained as the secondary
target market. This is comprised of couples ages 25-35 with middle-high
incomes, as they favor these times of the week.
● To increase awareness of catering services with existing customers.
• A large portion of Saucy Grill's customers are business professionals, they
should increase awareness of their catering services to this target market.
ii) Strategies and Rationale
● Increase local advertising in newspapers and via social media.
• Traditional and non-traditional advertising should be used more often to
increase awareness of the restaurant across the GTA. Social media is a great
way to connect to Saucy Grill’s target market for specials and promotions in
the restaurant.
● Make use of team and event sponsorships in the surrounding area.
• Sponsoring various teams and events in the neighborhood is a great way to
get your company name out there, improve your brand image and create
goodwill within the community.
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51. Saucy Grill Marketing Plan November 7, 2011
B) Positioning
i) Objectives and Rationale
● To maintain Saucy Grill’s positioning as a fine dining restaurant that
emphasizes fresh ingredients.
• Focusing on providing fresh in house meals will help differentiate Saucy Grill
from its larger chain competitors.
● To emphasize more on catering services to existing and potential clients.
• Emphasizing catering services to current customers will help generate buzz,
though word of mouth attracting more customers and potential new clients
who would be interested in catering services.
ii) Strategies and Rationale
● Make more use of locally grown food.
• Buying local produce provides many benefits not only to the environment but
also to Saucy Grill and its customers. Saucy Grill can use
www.greenbeltfresh.ca which is a website where one can find local produce
in the community. By being a supporter of local food produce, consumers will
feel good about buying product that is supporting our local food industries.
● Communicate Saucy Grill’s catering services to existing and potential
customers via word of mouth, social media and other traditional advertising
methods Saucy Grill currently uses and should increase using.
• Communicating the other services Saucy Grill offers will help increase overall
revenue annually and will also differentiate them from other competitors,
because of its unique selling proposition.
C) Product
i) Objectives and Rationale
● To continue focusing on fresh ingredients and in house specials.
• Currently, Saucy Grill provides fresh in house meals and by continuing to
provide freshly prepared meals in the restaurant, Saucy Grill will have
increased customer retention and potentially gain new customers via word of
mouth.
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52. Saucy Grill Marketing Plan November 7, 2011
● To continue updating menu seasonally.
• Items that are not so popular on the menu should continue to be replaced or
revised frequently to meet and exceed customer expectations, so customers
will continue coming back and potential new customers can be gained.
ii) Strategies and Rationale
● Use local produce that are in season.
• Local grown foods are fresher and typically of better quality, therefore, Saucy
Grill should continue to use local produce to exceed customer expectations
and increase customer retention.
● Provide food samples to customers at various community events.
• This will improve Saucy Grill’s image in the community, by creating goodwill
and will also allow potential customers to try various products, enticing
consumers to come into their restaurant.
D) Pricing
i) Objectives and Rationale
● To maintain a competitive pricing strategy with direct competitors on similar
items, and charging premiums for specialty dishes not available at
competitors restaurants.
• Most fine dining restaurants have menu items that are rather similar to one
another, with little variation to the food itself; while each restaurant will have
dishes that are only house specials not easily copied by the competition.
• Pricing should be competitive on items that are available at competing
restaurants, as to not deter guests for a higher pricing.
• Pricing should be above average on specialty dishes, since there are no
similar benchmarks set by competitors for customers to reference.
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53. Saucy Grill Marketing Plan November 7, 2011
ii) Strategies and Rationale
● Have semi-annual reviews of competitors pricing strategies.
• By reviewing the pricing structure of competitors semi-annually, which
coincides with Saucy Grill’s menu change, they will be able to address
potential issues and react based on changes in the market.
● Maintain or adjust the pricing strategy being used by Saucy Grill semi-
annually.
• After reviewing and analyzing the pricing of the direct competitors in the area,
Saucy Grill must address the changes in the market.
• If competitors are introducing products similar to Saucy Grill, prices should be
dropped to maintain a competitive edge.
• Dishes that are still unique and have no close substitutes, could maintain a
higher pricing strategy.
E) Distribution
i) Objectives and Rationale
● To increase the distribution methods currently used at Saucy Grill to give
customers more availability to their products.
• Increasing the number of ways that customers can interact and obtain fine
dining foods from Saucy Grill, will allow the business to see better growth for
the upcoming fiscal year.
ii) Strategies and Rationale
● Maintain traditional distribution methods currently being used (Dining Room
and Patio).
• Ensure traditional ways of distributing the product, such as walk-ins is not
affected with the introduction of the new distribution strategies.
● Have an online table reservation option for dine-in.
• This will allow customers to make a reservation for an important business
meeting or a night out with the client easier, without having to call or visit the
restaurant to reserve space.
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54. Saucy Grill Marketing Plan November 7, 2011
• Giving customers this new option of reservation booking, will allow them to
choose from multiple methods of booking, enhancing the customers
experience with Saucy Grill.
● Introduce online catering requests for various events.
• By allowing customers to request an event to be catered via an online form, it
will give consumers another way to interact with the business.
• When following up with requests (via phone or email), this will help establish
or improve upon Saucy Grill’s business to customer relationships.
F) Selling
i) Objectives and Rationale
● To increase the sales of products and services offered to customers by 15% in
2012.
• By increasing the sales of the products and services that Saucy Grill offers
theirs customers, they will be more likely to reach their sales goal of a 15%
increase.
● To create/expand upon unique product offerings, (not available at competitors)
and to increase the sales of these one of a kind products.
• Expanding and introducing unique products will help differentiate Saucy Grill
from its competitors, which is a valuable selling feature in a tough market.
ii) Strategies and Rationale
● To increase traffic during the lunch hours (11am - 3pm), by using lunch
specials.
• By increasing the sales volume in “off peak” hours, it will help to drive sales
up to the proposed sales target.
● To use up-selling tactics on unique product offerings.
• Using up-selling tactics will allow Saucy Grill to introduce clientele to new and
unique products that they currently offer, immediately drawing attention to
them.
• Since these products are unique, higher margins can be expected from these
items helping Saucy Grill reach their sales goal.
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55. Saucy Grill Marketing Plan November 7, 2011
G) Services
i) Objectives and Rationale
● To provide consistent quality service to new and existing customers.
• Saucy Grill will be able to maintain current customers and set service
standards for customers who are new to Saucy Grill.
ii) Strategies and Rationale
● Continually train staff on new service techniques that will build better retention
rates among customers.
• By increased staff training, Saucy Grill will be able to continually impress
customers with “above and beyond” service, ensuring it is being delivered
consistently from all staff members.
H) Advertising
i) Objectives and Rationale
● To increase awareness in the GTA using traditional and non-traditional
advertising methods.
• Running frequent advertising in the GTA will expand clientele and increase
customer awareness of Saucy Grill.
● To become more active in social media advertising efforts.
• Social media is an excellent, inexpensive way to connect with customers
today, especially the younger demographic.
ii) Strategies and Rationale
● Advertise in newspapers such as the Toronto Star.
• By advertising in local papers in the GTA Saucy Grill will be able to reach
customers in its current and target markets, improving and expanding upon
Saucy Grill’s customer base.
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