The Restaurant Industry Today Marketing Essay

Published Date: 23 Mar 2015

Restaurants are one of the most highly regulated businesses today. The nature of the project is starting a new Asian restaurant in North West London. We decided to open the new restaurant in Wembley central. According to the National Restaurant Association, the restaurant industry sales are expected to reach a record $537 billion in 2007 and they have estimated that there are approximately 935,000 restaurant-and-food service centres. Firstly we need to do first business plan in order to open a new restaurant.

Project objectives

Opening up a new Restaurant in Wembley central area will meet the following set of objectives:

Achievement of company's objective which includes maximisation of shareholders wealth.

Fulfil its growth organically.

Accomplishing customer's requirement such as easy access to our stores and good customer services.

Industry Analysis

Although the restaurant industry is very competitive and as the number of people have less time, resources, and ability to cook for them it is important that the restaurant is well positioned for the current interest and people get healthier foods at moderate to low prices.

The Restaurant Industry Today

The food service business is one of the third largest industries in the country. It accounts for more than $240 billion sales annually. The independent restaurant accounts for 15% of that total. According to a survey the average American spends 15% of his/her income on meals eating away from home. This number has been increasing for the past seven years. In the last five years the restaurant industry has out-performed the national GNP by more than 40%.Due to the change in people lifestyles, economic climate, and due to the increase in the variety of products there are more than 600 restaurants opening every month and over 200 more needed to keep pace with increasing demand.

Future Trends & Strategic Opportunities

The predicated expansion movement is very positive both in short and long-term projections. Folkney states again that as modern living creates more demands, people will be forced to eat more meals away from home. According to the DMR Industrial Report (April 1995) estimates this as high as 30% over the next five years.

According to the National Restaurant organization (1998) released that how the Foodservice industry might look in the year 2000. Some highlights from the panel's findings are as follows:

Consumers will spend a superior quantity of their food dollar away from home.

Independent operator and entrepreneurs will be the main source of new eating place concept.

Food concern will be critical at all types of foodservice operations, and food flavour will be of greater significance.

Ecological concerns will receive increased interest.

Feasibility Study

Financial Feasibility

A Financial Feasibility study is an estimation of the financial aspects of something. This project has been assessed in terms of its financial feasibility and it feasibility in terms of cost and benefit analysis. The benefit that can be derived from this project and will outweighs it initial cost. Taking into account performance of restaurant with similar size in Wembley area, I have used those performances as to project the expected cash flows where on average they both produce £10,000 per week.

Operational Feasibility

I recommend that this restaurant will be able to achieved these targeted payback period of five months to make back the initial investment. This analysis has been shown below:

Revenue per month: £78,350/5 = £15,670

Revenue per staff per operating hours: £78,350/ (10*8) = £980 as part of company training policy, all staff will be well trained to deliver excellent customer service standard.

Revenue per week: £15,670/5 =£3,134

Social and Environment Feasibility

I have undertaken a market a market research and environment scanning to ascertain whether there will be interest on our restaurant, what is the demographic settlement like in terms of food. My study indicated that most people will like our food because we will provide different kind of variety.

Timescale

In order to open a restaurant, we need to prepare business plan first. It will take around 1 month. About finding location and finding restaurant name will take 1 month. Finance the business will take 2 month because sometimes it takes time. Installation of electricity and equipment will take also 1 to 2 month. And last we need to obtain business licence.

Task-1.2

SWOT Analysis

SWOT Analysis is a tactical preparation process used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the purpose of the business course or project and identifies the internal and external factors that are favourable and unfavourable for achieving the business objective.

Strengths

Brand equity

The Restaurant location ( Wembley area )

Reliability of food

Consumers choice at reasonable value and great service

Cheaper price than others

We have take-away option

Different menu items

Weakness

Quality and taste of products

Our restaurant is new and not established

Our restaurant has poor disabled facilities

Limited funds

Opportunities

A new office complex is being built near by

A new housing development is planned

Threats

The high street brand is moving into the area

A main competitor has lowered their prices

Our operational costs are set to boost

PEST Analysis

A PEST analysis stands for "Political, Economic, Social, and Technological analysis" and describes a framework of macro-environmental factors used in the environmental scanning component of strategic management.

Political Factors

This relates to direct impact of political influences and it impacts our project. In the case of this project local council will support to our business because it will create jobs as well as optimize council's tax revenue. Especially creating job is a major priority for the national government so they will be in support of the project. And also there will be less political risk that will affect this project such as government rejection of the propose moved, increased in tax at present time in very unlikely.

Economic Factors

The general economic environment shows that spending level among some people individual will fall due to difficulty in gaining credit but most young people with relative disposable income can at least spend and these are the people we are targeting.

Social Factors

Social factors mainly include the educational aspects and include health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety. In this area I have undertaken a market research and environment scanning to ascertain whether there will be interest on our restaurant food. My study indicated that most people are Asian in Wembley area and will be interested in our Asian.

.

Technological Factors

A technological factor includes the ecological and environmental aspects, such as R&D activity, automation, technology incentives and the rate of technological change. Here the impact of technological changes which we already possessed will help the company to gain competitive advantages such as e-commerce.

Stakeholder Analysis

A Stakeholder Analysis is a essential tool for identifying those people, groups and organisations that have significant and genuine interests in a specific urban issue. Clear understanding of the likely roles and contributions of the many different stakeholders is a original condition for a successful participatory urban Governance process, and stakeholder analysis is a basic tool for achieving this understanding.

The Stakeholders are;

Customers

Suppliers

Employees

Shareholders

Customers

Each of the stakeholders will have different expectation of an organisation. They try to engage with customers. They provide sales information, monthly monitoring of views. Their customer question time meeting help to identify and respond to changing customers' needs.

Suppliers

The relationship of interests between an organisation and its suppliers can be seen as very similar to that between the organisation and its customers, but reversed. They do regular visits, meeting and discussions with suppliers. They have direct relationships with important raw material suppliers. Suppliers stock the business with all its business supplies. Suppliers may want an increase in wages. Suppliers have an interest in ongoing and mutually beneficial business relationships, and they expect to be paid on time.

Employees

The Company try to engage with employees. They have many ways such as internal communications including an employee magazine and regular business updates. Employees many want an increase in pay rise. Staffs have a very big interest in the business in the form of wages, bonuses, discounts and holidays pensions. Employees' interests may be seen as the assertion of certain rights deriving from what is seen to be acceptable in the way in which employees are treated within society.

Shareholders

The Company have shareholders. They do collection of feedback questions from individual shareholders. Shareholders are the owners of a company. Their only real involvement in the organisation will be at the Annual General Meeting, when they are called upon to approve, by a vote, the overall direction of the organisation and the senior management team responsible for achieving that direction.

Oftentimes, the only difference between floating and drowning is the direction. Without the restaurant financial analysis, a restaurant may be face downwards without even knowing it.

A restaurant financial analysis analyzes routine metrics such as profits and losses, cash flow, cost of sales and cost of labour. By assessing this data, operators can evaluate their finances and establish systems and structures to keep their restaurant a float.

Restaurant financial analysis performance metrics

Profits and losses

Whether we are produced monthly or weekly, profit and loss statements give restaurant operators a broad overview of their sales history.

But the information only becomes useful when broken down to reflect the cost of sales, cost of labour and other overhead costs. Restaurant financial analyses assess the profits and losses

With a vital eye to settle on specific areas taht should be improved upon.

.

Cost of sales

A restaurants cost of sales, sometimes referred to as cost of goods, is the sum of all expenses associated with producing the menu items.

Should food costs be running at 20 percent or 40 percent? The answer can vary depending on

A restaurants positioning (fast casual, casual or upscale) and menu mix.

Restaurant financial analysis can help operator decide where their cost of sales should be by building academic food and beverage costs.

Cost of labour

Cost of labour is another donor to cost of sales. A fine line exists between overstaffing a

Restaurant and scheduling enough employees to run a restaurant effectively. Sensible setting up and employee output are the best ways to control cost of labour. In addition, tools should be available to assess mid-shift needs. Many restaurateurs are unwilling to phase out employees in a timely fashion. Restaurant financial analysis can re-examine payroll reports, sales reports and customer counts to optimize Scheduling and productivity and decrease cost of labour.

When to undergo restaurant financial analysis

Opening a new restaurant

When opening a restaurant, restaurateurs can make use of financial analysis to forecast their success. A restaurant financial consultant can sketch a five-year plan and financial forecast based on industry and division standards.

Financial analysis can also be used to establish financial systems for a new restaurant. Wheels for cash handling, inventory, payroll and daily sales reconciliations should best established well in advance of a restaurant opening. By implementing these systems early in the game, a restaurant can effectively monitor them, giving it a greater chance of succeeding financially.

Purchasing an existing restaurant

Before the purchase of an existing eating place concept, restaurateurs should conduct financial analysis and feasibility studies to determine the productivity probable of the operation. This can be sketchy by evaluating pattern and trend in the restaurants past presentation and estimate the effect of probable changes.

Running an operating restaurant

Restaurant financial analysis is not just for new operations. Generally, it is most beneficial for restaurants already in operation. Whether a restaurant has been in business for a year or 20, financial analysis can help identify losses and hidden costs. That information will help establish proper financial systems or process existing ones to keep money from slipping through the crack.

Who can perform a restaurant financial analysis?

Restaurant financial analysis shouldn't be performed by just any financial consultant. It is best to work with consultants that specialize within the restaurant industry.

The main goal of restaurant financial analysis is to help operator understand how their restaurant can become more profitable. A restaurant-specific consultant can explain the analysis course and their findings in terms that restaurant operators will know.

A financial consultant will know the aim routine metrics for specific restaurant categories and the industry as a whole. They can provide guidance for the selection and performance of point-of-sale and accounting systems and show operators how to get best results from these systems.

A financial consultant can help eating place operators build the necessary tools to pull and analyze their own financial reports. Eventually, financial analysis should be ongoing, becoming an everyday part of a restaurants thinking.

Restaurant financial analysis doesn't just keep a restaurant floating, it helps their business fly.

Task-1.3

Market Competitively and Activity

This project will fit the business strategic of the restaurant because it will help gain competitive advantage, create new market for potential customers, gain market share in as well as responding to changes in business environment, increase profitability, establish local branch, obtaining new customers, expansion of business and improve company's image which could be achieved since there is an existing market gap which we can fill via Ansoff's matrix.

Marketing Analysis shows that this project will make the business more competitive in the following ways:

Demographic population: In west London area, the population is very high. There are many Asian restaurants available in the area. And the all restaurants provide good services and good food.

Food variety: The social society will be interested in our food because we will provide variety in the food along with music.

Market gap: the economic feasibility have highlighted that our competitors are doing well in these area.

Industry Trends

Studying industry trends is one of the first steps in conducting a market analysis. It will help you recognize opportunity and threats in the industry that may affect your productivity. Consider the following Food Service Industry 2000 Trends, reported by the National Restaurant Association:

Consumers will spend a greater portion of their food dollars away from home;

Competition in the food service industry will be more intense as growth continues;

Major food service chains will increase their shares of both sales and units;

Independent operators will be the main source of new restaurant concepts;

Nutritional concerns will be critical at all types of food service operations; and

Service will become a more important point of differentiation.

Industry Tends Checklists:

Growth in Industry Sales

Quick-service vs. table-service

Chain vs. Independent

Types of restaurants (steakhouses, ethnic...)

Catering

Deli, bakery and takeout operations

Monthly/seasonal dining out patterns

Industry sales outlook

Market Demand

Economic trends

Consumer confidence

Demographic trends

"Food away from home" trends

Factors that motivate one to dine out Eating habits of different market segments

Menu Preferences

Appetizers/soups

Entrees

Sandwiches

Desserts

Nutritional concerns

Menu pricing

Alcoholic beverage consumption

Vegetarian trends

Restaurant Success Factors

New and popular concepts/themes

Customer service innovations

Pricing practices

Food production methods

Labour saving techniques

Debt-to-Sales ratios and other statistics

Legislative and Regulatory Issues

Business meal tax deductibility

Health insurance

Wage and hour requirements

Americans with Disabilities Act

Competition:-

This is restaurant in the area is very good because in this area almost Indian and mix people living. So restaurant is also provide verity of foods and dices serve.

But in our restaurant totally different from other like blue ginger, Panther, Tikka world, Bombay bits etc .these all are our competitors but we provide best services, best food, best drinks so automatically our restaurant beet our restaurant .

Competitive Strategy

There are three major ways in which we will create an advantage over our competitors;

product identity, quality, and novelty

high employee motivation and good sales attitude

Innovative and aggressive service options

The restaurant will be the only restaurant among all the competition which focuses the entire menu on healthy, low-fat cooking. Each of the competitors offers at least one "healthy" selection on their menu. The target market will perceive the restaurant as the destination location for healthy, low-fat cooking.

The main points are Pricing, Location, Reputation, Image/Brand, Choice/Variety, Service and Atmosphere.

References

www.essortment.com (12th June 2010 )

www.awib.org (12th June 2010 )

www.mplans.com (12th June 2010 )

www.virtualrestaurant.com (12th June 2010 )

http://www.bplans.co.uk/steak_buffet_restaurant_business_plan/financial_plan_fc.cfm (12th June 2010

Part 2

Task 2.1

Resources

Materials: Rented property from an individual landlord in west London as a perfect location for the new restaurant to be open, this is critical factor in terms of visibility and easy access of the restaurant for our customers.

Equipments: Different kinds of restaurant will require different kinds of equipment. Typically equipment needed to open a restaurant includes a service kitchen (oven, microwave, heat lamps, prep tables and dish washer, fryers, boilers, refrigerators (table, chairs, spoon, glasses and cash registers).

Labour: Ten staff normal standard hours (8 hours per day) and contractors the fixed day of work for one month.

Finance: Most banks and lenders require you to put some of your own money into the business and contrary to popular belief, they do lend money for businesses. The project financed can be source from long term borrowing from bank in Iceland of £50,000 to finance the project deliverables.

Cost Associated With Resources

These are one-off capital cost required immediately to deliver project deliverables.

Materials: property rent in west London area will requires a normal rental agreement with the landlord. A deposit of £15,550 plus one month's rent in advance including council tax will be require total £32,350.

Equipments: Kitchen equipment will cost £10,000, boiler will cost £2000, till and it maintenance will cost £12000 and general things e.g. tables, chairs will coat £8000.

Labour: External contractors for refurbishment are expected at £12,500 this will includes: electrician, refurbishing the restaurant and painting the restaurant.

Sources of Finance

The project financed can be source from long term borrowing from bank of £78,350 to finance the project deliverables. They could be approach on the based that this project will recoup its initial investment within four months time; and that revenue generate can be used to pay of principal loan plus interest.

Budget for the Project

This project has been budgeted on the grounds of Zero based budgeting which involves identification of tasks to be performed and then funding resources to complete the task independent of current resourcing it ensure that resources are efficiently allocated. The project budgets have been made on this bases with each cost justify in terms of their usage in the project:

Resources

£ Cost

Rent

16,800

Total

16,800

Resources

£ Cost

Deposite

15,550

Equipments

32,000

Labour

12,500

Miscellaneous expenses

1,500

Total

61,550

Cost Benefit Analysis

Cost Benefit Analysis is classically used by governments to assess the attraction of a given interference; it is an analysis of the cost success of different alternative in order to see whether the benefits outweigh the costs. The aim is to gauge the competence of the involvement relative to the status quo. The costs and benefits of the impacts of interference are evaluated in terms of the public's willingness to pay for them (benefits) or willingness to pay to avoid them (costs). Inputs are typically measured in terms of opportunity costs the value in their best alternative use. The guide attitude is to list all of the parties affected by an intervention, and place a monetary value of the outcome it has on their benefit as it would be valued by them.

Years

0

1

2

3

Present value

78,350

3,90,180

1,090,860

1,072,163

Probability

50%

50%

50%

Certainty equivalent

1,95,090

5,45,430

5,36,082

D.F 9%

1.000

0.880

0.945

0.820

Present value

(75,000)

1,71,679

5,15,431

4,39,587

NPV

£10,51,697

The project is viable because it will yields to shareholder wealth conception of about £2.01 million in three years time. However incorporate rick to the cash flows using certainty equal, and for the fact that current economic climate in terms of expenses will affect all industries, I am certain that the 50% of the cash flows will be generate in each of the years. This is show below:

One time investment

Budget Overview -  

Sources of Funds

 

 

 

Proposed Loan from Bank

£100,000

 

 

Uses of Funds

 

 

 

Construction

£65,000

Walk-in Refrigerator

£10,000

Cooler for Beverages

£5,000

Stove oven

£5,000

Deep Fryer

£4,000

Two sinks for Kitchen

£1,000

Microwave

£500

Toaster

£100

Cash Register

£400

Furniture

£7,000

Dinnerware

£1,000

Pots and Pans

£1,000

Plan by Month or Period

Most of the restaurants use a scheme of 12-month or 13 four-week periods to way their yearly accounts. By infringement the budget down into these types of sections, it is easier to see when money is moving in and out of the eating place.

Anticipate Your Costs

In the eating place, budget is often a game of evaluation costs and income. In fact, a budget is much like a profit and loss (P&L) account extended over a longer period of time. Be set to account for the following costs in your yearly budget:

Rent or mortgage payments

Taxes

Insurance

Labour/payroll

Utilities

Loan payments

Operational supplies

Repairs and maintenance

Marketing

Training

Food service professional recommend that you plan to spend about 30 percent of your budget on food, 25 percent on labour, 10 percent on rent or advance, and 3 percent on utilities.1 The rest goes in small part to operational charge, promotion, taxes, continuation and other patchy costs. These are purely sketchy plan to follow, as every restaurant's payment and budget are different. Look below for a graphical image of these suggested expenditures:

Know Your Breakeven Point

The cope point is the volume of sale needed to cover all charge without making a profit. It is the bare least amount amount of sales the restaurant process needs to bring in to survive. It is central to know your restaurant breakeven point so that future monetary decisions can be made in hopes of making a reasonable profit.

Analyze Your Financials Every Period

Exploratory your P&L and your budget on a weekly and monthly basis will help you keep your bases covered in terms of realize your payment and income. Appraise your budget operational payment and your actual expenses, as well as the net profit you expected and what your eating place actually made. Make a note of any areas in which your expenses exceed your budget amount.

When budgeting for the year, especially if you are doing so for the first time, it helps to have a budget worksheet. Download a sample budget worksheet to your own back office computer.

Cost of Goods Sold -- The cost of goods sold was strong-minded by taking actual Profit and Loss statement from various eating place concepts and then using our price structure and guest counts to arrive at costs.

Management Payroll -- Figures are based upon the use of five managers per unit at our maximum bonus and salary levels. If we use four managers per restaurant, this will lower our payroll.

Fixed and Variable Expenses -- The various fixed and variable expenses were determined by taking actual numbers from several different restaurant concepts.

Marketing Fees -- These funds will be used for the production of various marketing materials.

Advertising -- These funds will be used, if necessary, to maintain our sales at projected levels. If we are management appreciably ahead of our sales projection, then these funds may not be necessary.

Management Fees -- We will use these pounds for accounting and payroll services of our firm. As we grow in size, this cost burden will shrink per store due to efficiencies in volume.

Important Assumptions

The financial plan depends on important assumption, most of which are revealed in the following table as annual assumption. The journal assumptions are included in the annotation. Interest rates, tax rates, and personnel burden are based on traditional assumptions. Some of the more important causal assumption is:

We assume a strong economy, without a major recession.

We assume, of course, that there are no unforeseen changes in consumers' tastes or interests to make our concept less competitive.

Task 2.2

Report

TO: Management

FROM: Project Manager

DATE: 20th May 2009

SUBJECT: Staff Development and Training Cost

Introduction

This report is concerned staff training and development it related cost associated to this project. The company sales force plays a vital role in delivering better customer services and each member have different training needs depending our their position. The company's their future depends on nurturing great individual talent and providing an environment where staff can flourish personally and professionally. Successful training will help to develop the following skills.

Deliver excellent customers

Well motivated

Increase morale

Improved job and staff performance.

Recruitment takes place from the point when a business decides that it needs to employ somebody up to the point where a pile of completed application forms has arrived in the post. Selections then involve choosing a suitable applicant through a range of ways of organization out suitable candidates leading to interview and other tests. Training involves providing a range of planned performance that enable an employee to develop the skill, attitudes and knowledge required by the organisation and the work required.

A job account is also helpful because it sets out:

The job description can be sent out to probable candidate along with a person arrangement, which sets out the pleasing and vital description that someone will need to have to be selected to the post.

A variety of media will be used to be a magnet for applications e.g. national newspapers for national jobs, and local papers and media for local posts.

Objectives of Training and Development

The main objective of staff training and development is to improve the qualities of the trainee, formulation of objectives for different needs and ways to achieve it. The training objective is very important because it determine the calculated and content of the training programme. Contents of the training stay put the same no matter the type of training occupied. It is to increase personnel efficiency, professional growth and smooth and more useful organization's operations.

Methods of Training and Development

On the job training/coaching: This relates to formal training on the job. A worker becomes experienced on the job over time due to modification of job behaviours at the point of training or acquisition of skills.

Induction/orientation: This is carried out for new entrants on the job to make them familiar with the total corporate requirements like norms, ethics, values, rules and regulations.

Apprenticeship: A method of training where an unskilled person understudies a skilled person.

Demonstration: Teaching by example, whereby the skilled worker performs the job and the unskilled closely observes so as to understand the job.

Vestibule: This is done through engineering part for the purpose of skills and technology transfer. It is therefore achieve through residency of an individual within another area of relevant work or organization. The effect is the attainment of practical and specific skills.

Formal Training: A practical and theoretical teaching process which could be done within or outside an organization. When training is carried out inside an organization, it is called an in-house training. Off-house training is passed out in professionalized training areas like: Universities, Polytechnics and skilled Institutes.

Cost of Training and Development

The cost of training will be the time of each individual at their contracted hourly rate for the two days which will last for three hours a day. .

However management training will cost the company in terms of travelling, refreshments, days attended, guaranteed hours of eight hours.

Employees

Store managers

TOTALS

Cost per hour

6.50

10.00

Number of hours

8

8

Number of staff

10

2

Number of days

3

3

Totals

1560.00

480.00

£2,040.00

Overall training and development cost associated with this project will be £2,040.00 for this project.

References

www.mindtools.com (25th June, 2010)

www.12manage.com (30th June 2010)

www.thetimes100.co.uk (2nd July 2010)

Part 3

Task 3.1

Plan and Agreed Timescale for this Project

No. Of Months

Task to be Achieved

1

Prepare business plan

1

Finding a location

2

Finance the business

1

Finding restaurant name

1

Installation of Equipment

1

Installation of electricity and CCTV

1

Obtain business licence The plan and agreed timescale for the management and implementation of the project, services and process are detail below using Gantt chart below:

The Plan and Implementation of this Project is show in chart below:

Activities

Obtain business licence

Installation of electricity

Installation of equipment and CCTV

Finding restaurant name

Finance the business

Finding a location

Prepare a business plan

1 2 3 4 5 6

Months

Prepare Business Plan

To prepare for your dialogue with the invest; you need to do your assignments. Creating a industry plan that outline your restaurant and how you plan to make it money-making, will show the credit official you mean business.

Finding a Location

Location is vital to the success of any restaurant. There are a number of factors to believe when searching for that wonderful restaurant location, including population base, local employment figures and accessibility. This involves find a location Wembley Central in London, agree rent, acquire assembly permission before to start renovating and scheming the restaurant. Sometimes it might take time to find a suitable place so it likely to take one month.

Installation of Equipment and CCTV

Outfitting your restaurant kitchen, dining room and bar is the principal part of your start off up budget. Shop around for good buy deals of used tackle and lease equipment. This activity can only establish in office once the contractor have finished renovating the store, and it will all start a week after restoration woks finished. It include installation of power, CCTV, equipments etc.

Task-3.2

Marketing Plan & Sales Strategy

Market Penetration

Entry into the market should not be a problem. The restaurant has tall visibility with heavy base travel all day long. The local residents and students always support new restaurants and the tourists do not have fixed preference. In addition, £10,000 has been budget for a pre-opening publicity and public relations campaign.

Marketing Strategy of new restaurant

Focusing on the unique aspect of the product theme (healthy, tasty foods) a mix of marketing vehicles will be created to convey our presence, our image, and our message.

Print media -- the media, magazine and student publications

Broadcast media -- local programming and special interest shows

Hotel guides, gatekeeper relations, Chamber of Commerce brochures

Direct mail -- subscriber lists, offices for delivery

Misc. -- yellow pages, charity events

A public relations firm has been booked to create special events and solicit print and put out coverage, especially at the start-up.

The Marketing Effort will be split into 3 Phases; new opening restaurant

1) Opening -- An advanced notice (press packet) sent out by the PR firm to all media and printed announcement ads in key places. Budget - £10,000

2) Ongoing -- A flexible campaign (using the above media), assess frequently for effectiveness. Budget - £10,000

3) Point of sale -- A well-trained staff can increase the average check as well as attractive the customer's overall practice. Rumour recommendation is very important in building a shopper base.

Future plans and Strategic Opportunities for opening new restaurant

Catering to offices (even outside of our local area) may become a large part of gross sales. At that point a sales agent would be hired to directly market our products for daily delivery or catered functions.

Marketing strategy for the Project of opening new restaurant

Our business is offering to our target market.One way to look at our strategy to grow our business is through the way we will use products and markets or customers. Using Ansoff's Matrix will be guide for ours:

Existing Products

New Products

Existing Markets

Market Penetration

Product Development

New Markets

Market Development

diversification

Market Penetration (existing markets, existing products):

Here we market our breathing products to our existing customers. This means raising our revenue by, for example, promote the product, moving the brand, and so on. However, the product is not altered and we do not seek any new customers.

Market Development (new markets, existing products):

Here we market our existing product range in a new market. This means that the product remains the equal, but it is market to a new viewers. Exporting the product, or promotiong it in a new region, is examples of market development. Market development is the name given to a growth strategy where the business seeks to sell its breathing products into new markets.

Product Development (existing markets, new products):

This is a new product to be marketed to our existing customers. Here we enlarge and innovate new product offerings to return existing ones. Such products are then marketed to our existing customers. This often happens with the auto markets where existing models are Updated or replaced and then market to living customers.

Diversification (new markets, new products):

This is where we market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that we remain in a market or industry with which we are well-known. The diversification can be divided again into horizontal, vertical and lateral diversification.

The horizontal diversification is the extension of the production programme.

The vertical diversification is the sales stage stored by products pre order.

Marketing Mix

The marketing mix is normally established as the use and order of the four P's describing the calculated point of a product in the marketplace. One report of the origins of the mix starts in 1948 when James Culliton said that a selling decision should be a result of rather similar to a recipe.

The 7Ps of the marketing mix can be discussed as:

Product - It must provide value to a customer but does not have to be physical at the same time. Basically, it involves introduce new products or improvise the active products.

Price - Pricing must be competitive and must entail profit. The pricing strategy can comprise discounts, offers and the like.

Place - It refers to the place where the customers can buy the product and how the product reaches out to that put. This is done through different channels, like Internet, wholesalers and retailers.

Promotion - It include the various ways of communicate to the customers of what the company has to offer. It is about communicating about the profit of using a particular product or service rather than just talking about its features. In useful items spread to targeted audience with no duty attached. This category has grown each year for the past decade while most other forms have suffers. It is the only form of advertising that targets all five mind and has the addressee thanking the giver.

People - People refer to the customers, employees, management and everybody else implicated in it. It is essential for everyone to realize that the name of the brand that you are involved with is in the people's hands.

Process - It refers to the methods and process of providing a service and is hence essential to have a thorough knowledge on whether the services are helpful to the customers, if they are provided in time, if the customers are informed in hand about the services and many such things.

Physical (evidence) - It refers to the experience of using a product or service. When a service goes out to the customer, it is essential that you help him see what he is buying or not. For example- brochures, pamphlets etc serve this purpose.

Task 3.3

Monitor and Evaluate this Project

Project evaluation aims at analysing research and development projects, or activities or ideas, for any or all of the following purposes:

Getting an overall understanding of the project.

Making priorities among a set of projects.

Taking a decision about whether or not to proceed with a project.

Monitoring projects, e.g. by following up the parameters analyzed when the project was selected.

Terminating projects and evaluating the results obtained.

Evaluation is an analysis of the relevance, effectiveness and efficiency of the multi-sectoral team's prevention and response strategies. Evaluation systematically assesses the protection impact of the policies, programmes, practices, partnerships and procedures. Evaluation criteria can include the sustainability of prevention and response activities, co-ordination and consistency, and the effectiveness of monitoring and reporting systems.

Monitoring is the ongoing review, conducted by the multi-sectoral team, of prevention and response interventions to determine whether they are developing according to plan and budgetary requirements and whether any adjustments may be needed so they achieve their intended goals. Effective monitoring includes a co-ordinated reporting system.

Project appraisal plays key role for the flourishing carrying out of this project which will includes evaluation of work permission, evaluation of project control, performance analysis, Evaluation of technical analysis, evaluation of project control, scheduling and budgeting are some of factors to be evaluated before getting into the projects after successful approval of the necessary requirements reporting system should be organized and it should be monitored regularly.

As project manager I will assess the work progress, schedule and cost performance of the project this would requires monitoring two activities: data collection and the second one is information reporting to project committee. Frequent reports on the overall project performance will be submitted to higher-level authorities (project committee). Separate, specified schedule reports, the cost analysis reports and the performance of the project will be prepared and evaluated for a specific time period.

Typical Inputs to Project Evaluation

The Inputs:

The data on important aspects of the projects and the business environment which are needed to analyze them. The inputs will be assembled from various sources, and care should be taken to ensure its certainty, although some inputs will surely be very subjective. At the end of the day, an evaluation can only be as good as the data that go into it.

Typical Inputs

Technological

the technical activities which will have to be undertaken, maturity of technology, company's technological position

Internal

potential technical success, familiarity with the area of the project, role of individuals and of different functions within the organization

Financial

expected benefit, likely cost, both of project and consequent actions

Market

size and attractiveness of the market, competitive position

Business

clarification of objectives, fit with company's strategy, level of top-management support, key success factors

Long-Term Development & Exit Plan

Goals - our restaurant is an innovative concept that targets a new, growing market. We assume that the market will respond, and grow quickly in the next 5 years. Our goals are to create a reputation of quality in food, consistency and security (safety of food) that will make us the leader of a new style of dining.

Strategies - our marketing efforts will be concentrated on take-out and delivery, the areas of most promising growth. As the market changes, new products may be added to maintain sales.

Milestones - After the restaurant opens, we will keep a close eye on sales and profit. If we are on target at the end of year 1, we will look to expand to a second unit.

Risk Evaluation - With any new venture, there is risk involved. The success of our project hinges on the strength and acceptance of a fairly new market. After year 1, we expect some copycat competition in the form of other independent units. Chain competition will be much later.

Exit Plan - Ideally, our restaurant will expand to five units in the next 10 years. At that time, we will entertain the possibility of a buy-out by a larger restaurant concern or actively seek to sell to a new owner.

References

www.environment.nsw.gov.au (2nd July 2010)

www.tutor2u.net (2nd July 2010)

www.quickmba.com (2nd July 2010)

www.marketingteacher.com (5th July 2010)

Final Report of the Project

This Project relates to proposed investment for Opening a New Restaurant in Wembley Central area.

Opening New Restaurant in Wembley central area will meet the following set of objectives: Achievement of company's objective which includes maximisation of shareholders wealth, Fulfil its growth organically, Accomplishing customer's requirement such as easy access to our stores and good customer services.

Feasibility studies have been undertaken after detailed market research and environmental analysis as well as marketing analysis to ascertain whether it will fit their business strategy which is differentiation focus.

I have carried Feasibility Study, SWOT analysis, PEST analysis, Stakeholder Analysis, Market Analysis, Ansoff's Matrix, Resources, Sources of Finance, Implementation of the project, Marketing Strategy, Marketing Mix etc.

Project required resources have all being identified, their associated cost and the necessary source of finance to fund this project are well established including its overall budget. The project have been evaluated in terms of it cost and benefit analysis.

The project plan and timescale for managing and implementing the project have been shown in the Gantt chart. All relevant stakeholders including engagement with senior supervisors and area manager have been contacted in relation to the appropriate marketing strategy to be adopted for this project.