The Stinking Rose seeks to implement a marketing strategy that enhances the existing marketing plan in order to create awareness and also to create a unique value proposition for their customers. The restaurant wants to capture 50% of the market share of the tourist segment and wants to differentiate itself from its peers based on the food and customer experience. The restaurant’s estimated revenue is $8 million per annum. The marketing budget of three percent of revenue will be focused on marketing the restaurant to the tourist segment. The objectives of the marketing plan are to increase sales volume, market share, and maximize profits. The marketing strategy will be divided into 2 segments: Internet and traditional marketing. Special attention will be given to internet marketing to increase the tourist traffic to the restaurant. Since The Stinking Rose has strong financial background and has been in the industry for many years, management wants to take their restaurant to the next level and would like to support an aggressive marketing campaign to create a strong awareness among the tourist segment. The focus of the internet marketing strategy will be to place the stinking Rose’s website at the top of the major search engines by partnering with google.com and improvising their presence on social media. The traditional marketing will include partnering with travel agencies, tourist buses and souvenirs.

2. Agenda:
 Market Analysis
 SWOT
 Target Market
 Objectives
 Strategies
 Marketing Budget
 Metrics
 Contingency plan

3. Market Analysis
Political/Legal
 subject to licensing and regulation by a number of
government authorities.
Socio-cultural/demographic:
 Society attitude, lifestyles & change in values impacts industry.
 24-50 age group, frequent visitors.
 San Francisco Travel Association reported 24.7 million visitors in
2015, an increase of 2.7 percent from 2014.

4. Market Analysis
Technology:
 Going mobile and moving faster is the technology trend in the
restaurant industry .
 Use of a smartphone and ability to access restaurant booking system
from anywhere.
Economic:
 Restaurant industry sensitive to changes in overall economy
 Food and labor costs have a direct impact on profitability
 Fears of recession/ inflation
 Average salary in San Francisco is raising
 Steady increasing traveler population every year)

5. Competitors
 Trattoria Pinocchio
 Chili Lemon Garlic
 China Garlic

6. Competitive Environment
Threat of new entrants
(moderate force)
High capital
requirements (strong
force)
High cost of branding
(weak force)
Switching costs for
consumer (strong force)
Rivalry
among existing
competitors
Many restaurants (strong
force)
Aggressive marketing
(strong force)
Direct competition
Garlic “themed”
restaurants (weak force)
Many California/Italian
cuisine restaurants
(Strong Force)
Bargaining Power of
Consumer
Availability of substitutes
(strong force)
Switching costs (strong
force)
Bargaining Power of
Suppliers
Number of suppliers
(weak force)

7. SWOT analysis
Strengths
Garlic embraced by cultures.
Highly trained and customer attentive
staff
Retro style interior
Located in north beach- prime location
.
San Francisco, a tourist destination.
Opportunities
Time conscious travelers want the best
experience while travelling.
Increase spending capacity of
customers
Increase tourism over last few year
Weaknesses
● Very competitive environment
● Only use one of seven garlic
varieties
● Well aware visitors (due to social
media)
● Negative Yelp Reviews
● Multi-language menu not available
● Website is not updated
Threats
New emerging restaurants
Low wage argument
Raising food prices

8. Marketing plan:
 Target Market - tourist are the prime customers.
 Positioning– creating a unique selling proposition(only
garlic restaurant in SF with the best dining experience).

9. Marketing mix- 4P’s
Product
best garlic themed restaurant to drive
the tourist traffic.
Differentiate from the food and
services provided
unique ambience set them apart.
Place
central location for many tourist
attractions.
better approachable by targeted
audience.
Pricing
premium price strategy
Promotion
Advertising- through website,
Pamphlets, Trip advisor.
Direct marketing- through social
media
Multi-language menu on website.

10. Objectives:
 Increase sales volume
 Increase market share
 Maximize profits

11. Marketing strategy:
Internet marketing-
 SEO
Website
Social media

12. Marketing strategy:
Traditional Marketing:
a. Tourist Buses
b. Travel agencies
c. Souvenirs

13. Marketing Budget:
Marketing Expense Budget
Action Item Cost
Social Media $60,000.00
Search Engine Optimization $60,000
Bus Boards $4200
Travel Agencies $5460
Total $129,660.00

14. Underlying Assumptions:
 The average tab at the Stinking Rose is $30.00.
 The restaurant does an average of 300 covers per
day.
 Food costs are between 25 and 30 percent.

15. Break even analysis
Break-even=
Fixed/unit cost
Food cost 30%
Margin 70%
B/E in units = 6174 Average tab $30
B/E time = 21 days Average
covers per
day
300

16. System control
 Budget
 Website traffic
 Market reaction

17. Contingency plan:
Best case scenario:
 create the right amount of buzz.
 Sales volume, market share, and profit
 Pursue additional strategies
Worst case scenario:
 The restaurant can resume to their original marketing
plan.

18. Thank You!