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PART B – MARKETING STRATEGIES
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TABLE OF CONTENTS
1.0 Key issues
2.0 Branding
3.0 Marketing Mix Strategies
3.1. Product
3.2. Price
3.3. Distribution
3.4. Promotion
4.0 Action Plan
4.1. Budgets
4.1.1. Launch Budget
4.1.2. First Year Budget
4.1.3. Year Two and Three Budgets
5.0 Controls and Contingencies
5.1. Social – orientated Metrics
5.1.1. Online Websites
5.1.2. Social Media
5.1.3. Coupons
5.2. Financial Metrics
5.2.1. Financial Statement Records
6.0 Conclusion
7.0 Appendices
8.0 Reference list
3
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1.0 Key issues
As analyzed in the first part of the marketing plan, the V.J.C Restaurant is facing a
number of issues that place a great impact on the operations and growth of the
business. It is thus important for the managers to identify and understand these key
issues for planning the best strategies. This part of the marketing plan focuses on the
strategies that the managers of the V.J.C will adopt to deliver excellent customer
services and generate as high as possible outcomes.
Firstly, the SWOT Analysis shows that the combination of three recipes of
Vietnamese, Japanese and Chinese food is a competitive advantage, but at the same
time, a risk to the restaurant. Diners in Brisbane, especially in West End, are familiar
with Asian foods as well as mixed restaurants. Therefore, when the V.J.C enters in
this market, we definitely benefit from a strong customer base and easily gain loyalty
customers. Nevertheless, a great number of existing Asian restaurants in West End
create a relatively harsh trading environment for the V.J.C. Consequently, for the
business to compete well, the managers must adopt additional marketing support and
strengthen training programs, which lead to high production costs.
Secondly, the existence of various Asian restaurants in West End is a threat to the
V.J.C. As offered more eating choices, diners will easily change their interests, which
results in unstable customer behavior and makes it harder for the V.J.C to manage. In
addition, the identical characteristic of several products in the V.J.C to those in other
Asian restaurants causes customers to be more sensitive of prices rather than the
quality. This is a major difficulty that the V.J.C has to tackle with when brand
differentiation plans are implemented.
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The following marketing plan will outline strategies on branding, marketing mix,
budgets for a three year period and contingency programs. These strategies are
expected to help the V.J.C make the best use of its strengths and opportunities and
overcome its weaknesses and threats.
2.0 Branding
As Pederson (2004) stated, branding provides a “distinctive picture and association
positioned in the mind of consumers of an object (product, service) or a subject
(person, institution)”. Thereby, a brand is of importance in creating imaginations and
directing behavior patterns among customers and consumers. Regarding the V.J.C
restaurant, the concept of the first mixed Asian serving Vietnamese, Japanese and
Chinese foods is clearly presented in the logo below:
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As shown in the logo, most of the iconic features of the three countries are easily
recognized. In the center stands out the red round which represents the theme color of
the flags, while the yellow star implies the golden quality of meals offered by the
V.J.C. Other details such as bamboos and the yellow herb reveal the original Asian
taste and flavor to the customers. In general, the logo is designed to emphasize the
new style of dining that the V.J.C proudly present to consumers.
3.0 Marketing Mix Strategies
The following marketing mix strategies will introduce the details of the
products/services offered by VJC restaurant and the strategies of its operation. It
consists of four parts: product, price, distribution, and promotion.
3.1. Product
The core concept of our products will be the authentic Vietnamese, Japanese, and
Chinese foods cooked by qualified chefs who are familiar with the local taste of
Asian cuisines. The menu will include entrées, main dishes, desserts, and drinks. We
also provide different types of offering such as set menu, individual orders, and
takeaway services to meet with various customers’ needs.
As one of the examples of our product range, our main dishes will include Japanese
tempura udon, which is a soup noodle with deep-fried vegetables and seafood
combination. We will also offer Japanese tempura udon with the variety of deep
fried vegetables for special dietary needs. The figure below shows the image of the
cuisine.
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Figure1. Japanese Tempura Udon
Augmented feature will include a beautiful decoration of the cuisines delivering the
beauty of Asian culture. As the figure below describes, our cuisines will be offered
with the elaborate decoration so as to amuse the diners. Therefore, the VJC restaurant
will be suitable not only as everyday dining place but also for special occasions.
Figure2. Chinese hors d’oeuvres
3.2. Price
We will offer main meals such as Japanese tempura udon and Chinese Crispy fried
stuffed duck for around $10 and set menu for $20 including entrée, main dish, mini
dessert, and drink. As the West End region has significant influx of students and there
is a fact that the rent of the region occupies relatively large percentage of the income
the residents are earning (Australian Bureau of Statistics, 2011), we need to offer
meals in reasonable price. Therefore, we will adopt “Good-value pricing strategy” and
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aim to offer just the right combination of quality and good service at a fair price. It can
be achieved by building an affiliation with the Asian food retailers to be provided with
high quality food resources in cheaper price.
3.3. Distribution
The VJC Restaurant is located in West End, which is close to the Brisbane CBD as
well as some other suburbs. As West End region is already well known for diverse
dining opportunities, it is estimated that many people will come to West End to dine
out. Although certain level of competition will be assumed in the region, VJC
Restaurant can utilize its competitive advantage i.e. unique characteristic of providing
three different Asian cuisines to differentiate products and deliver excellent customer
services. Moreover, it is easy to access to VJC Restaurant via public transport as well
as by car thanks to convenient transportation. Customers can also take a short walk
from the CBD, which will take approximately 10 minutes from South Bank.
3.4. Promotion
As more and more people come to use Internet to search dining places, the marketing
staff of VJC Restaurant will create a website to provide customers with basic
information about our restaurant such as our concept and menu with vivid pictures of
the meals. In addition, we will take advantage of the most widespread channel –
Facebook to promote the V.J.C brand widely.
Before the opening of the restaurant, we will place posters and banners with details of
the website, facebook page and address on. Special discount programs will also be
presented on the banners and posters so as to gain frequently visiting customers.
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Furthermore, we will promote several bus advertisements mainly in West End and in
Brisbane CBD (Queen Street) to raise awareness of the restaurant.
Interestingly, to strengthen promotion activities the marketing staff will provide
residents and buyers in supermarkets and on streets with several samples of dishes. By
doing this, we can get direct feedback from triers as well as draw their attention to the
restaurant. After conducting street promotion with samples, triers will be invited to
leave their contact information in the provided contact sheets. Emails will be sent to
these triers in appropriate times to inform them of new dishes and new discount
programs. Email address of the VJC will be registered properly by reliable business
email hosting service to create a professional image for the business.
When the restaurant starts making profits on sales, discount programs including
special deals, coupons and loyalty cards will be deployed to strengthen customer
loyalty and increase customer returns. Taking advantage of online social media, we
will introduce those discount campaigns on the facebook page, website and via email.
As majority of people will generally get positive impression to the businesses offering
coupons (Marketing Charts, 2011), the weekly coupon will be aimed to promote
customers’ loyalty to VJC Restaurant.
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4.0 Action Plan
This part of the marketing plan outlines several promotion activities that will be used in the V.J.C restaurant. These promotion
channels are expected to get the V.J.C known by a wider range of customers. In addition, through some of the following methods
customer evaluation is directly obtained, thereby, we can assess our performance and customer service quality in an effective
manner. Furthermore, a detailed cost list is also presented to provide a general budget plan for all promotion activities occurring in
the V.J.C restaurant over the next three years.
Tasks Objectives Success Criteria Time Frame /
Geographic Range
Responsibilities &
Resources
Website A website will provide potentialcustomers of the V.J.C withdetailed information about therestaurant (including address,menu, discount programs, onlineorder, etc.), its products andservice.
The number of “views” onthe website increase.Customers leave morefeedback andrecommendations.More online orders are made.
Created one month before opening.Maintained every 6months.
Graphic designer.
Facebook page
A fanpage on Facebook will becreated to raise awareness amongstinternet users through “like” and“share” status updates of the V.J.Cand “check-in”. In addition, thefanpage will allow customers toleave feedback andrecommendations on the“timeline”, with a view to
The number of “likes”,“share” and “check-in”increase.Many feedback andrecommendations are left onthe fanpage. Positiveevaluation is raised morefrequently.
Throughout theoperation of theV.J.C
A graphic designer willtake charge of personalizing theFacebook page.A marketing campaignmanager will beresponsible for updatinginformation andinforming special deals
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evaluating and improving thequality products and service.
to customers.
BannersandPosters
Banners and posters help to raiseawareness of the restaurantamongst a widespread scale of customers. By viewing the V.J.C banners / posters repeatedly,
potential buyers are not only awareof the existence of the restaurant but also raise their curiosity aboutwhat will be served.
The volume of sales rises bynew customers as well as patrons.The restaurant is increasinglysearched online on Facebook
and website.
2 weeks before thelaunch day.
A graphic designer willdesign the banners and posters with Facebook fanpage and websitelinks inserted.
A marketing manager will decide on the mostappropriate locations to place the banners / posters.
Bus stopads
Advertisements will be placed onseveral bus stops across West End.Information about the restaurantwill be present in the ad for customers to remember.
Bus stop ads are expected toget the V.J.C known by awider range of customers.The restaurant serves dinersnot only in West End area butalso in nearby suburbs andthe CBD.Volume of sales grows.
Online viewers and ordersincrease.
One month beforethe opening for 4week periods.8 signs, 5 in WestEnd, 3 in BrisbaneCBD.
The graphic designer willdesign the advertisement.The marketing manager will contact Translink for advertisementinstallation.
Street promotionwithsamples
Street promotion will be thecampaign closest to potentialclients. V.J.C marketing staff will bring several dishes and offer to pedestrians for trial. This is to getdirect evaluation from triers andsave time.Locations: Supermarkets, Queen
More triers come to try food.Word of mouth helps promoting the restaurant.Triers become customers whoare willing to pay for diningat V.J.C.More recommendations aremade on Facebook and
2 days before theopening.
The kitchen staff will beresponsible for makinghigh quality and hygienicfood.The marketing staff will bring the food to pedestrians. Also, theywill explain to the triers
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Street. website. about the ingredients.
Email In the street promotion, the V.J.Cmarketing staff will also get pedestrians to register their email inthe restaurant’s database. By doingthis, we can send them emails aboutthe restaurant’s activities, discounts
or coupons and get their responsesfaster.
Triers are willing andvoluntary to register their email in the database for further information.
2 days before theopening, along withthe street promotion.Emails will be sentwhenever newupdates are
available.
The marketing manager will work on updatinginformation and informthe marketing staff.Marketing staff will sendemails to potential
customers.
Loyaltycards
In the form of patronage rewards,loyalty cards will be issued tocustomers with high frequency of dining at V.J.C (5-7 times). Thismethod encourages customers toreturn to the restaurant for benefitting special deals or discounts, which increases salesvolume.
More loyalty cards are issued.Higher volume of customersreturn.Sales volume generally rises.
6 months after theopening.
The marketing manager will produce loyaltycards and design therewards.Sales staff will issuecards to regular dinersand draw other customers’ attention tothe cards.
Coupons In line with street promotion,coupons will be offered tocustomers, especially non-users.
The coupons will be available onthe V.J.C website, Facebook pageand probably on the newspaper ads.
New customers come to theV.J.CFrequent customers return to
the restaurant more regularly.
Expectedly in year 1when sales volumegrows.
The marketing manager.
Table 1: The marketing activiti es wil l be impl emented in the V.J.C restaur ant in the fi rst thr ee years.
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4.1 Budget
The activities aforementioned will be adopted in the V.J.C restaurant in suitable time periods depending on the trading
performance and other external factors such as seasons and customer preferences. For the action plan to be implemented
successfully, it is divided into three budgets; the launch, year one and years two and three budgets.
4.1.1 Launch Budget
Capital: $22000 - $26000
At the launching period, most of the activities mentioned above will be carried out to make the best use of the promoting mix in
raising awareness of the V.J.C restaurant and attracting as many customers as possible. Therefore, it requires the highest cost of
promotion.
Promotion Activities Timing & Cost Breakdown Total expected costs ($)
Website Domain name: $10 / year Hosting: $25 - $200 / year (depending on traffic & hosting services)Interface design: $1200 - $3500Images and graphics: $100Mobile and responsive design: 20% - 30% of the progress priceContent creation and insertion: $100 - $150 / pageMarketing website online: $750 / month
$13000 - $17000 / year
Facebook page Free 0
Banners / Posters(MegaPrint inc., 2013)
Outdoor Vinyl Banners (Gloss or Matte):Size: 48 x 96Price: $160 / piece (5 pieces) $800
$2110
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Crystal Laminate Posters:Size: 36” x 48”Price: $131 / piece (10 pieces) $1310
Bus stop ads Installation cost: $250Rate: $100 / week $400 for four weeksTotal cost $650 / sign (8 signs)
$5200
Street promotion with
samples
Ingredients: $500 $500
Email Initial setup: $250 (incl. domain name, registration fees and spamminimizing fees)Including 25 mailboxes and 125GB Storage
$250
Total Cost $21060 - $25060
Table 2: The launch budget for the V.J.C restaurant.
4.1.2 First Year Budget
Capital: $21,000
In the first year of the trading, a wide variety of promotion activities will continuously be implemented so as to stimulate
customer loyalty and increase sales volumes. However, street promotion with samples will be discontinued while bus stop ads,
banners and posters will be strengthened. Meanwhile, online promotion channels including website and Facebook fanpage will be
strengthened so as to encourage patronage.
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Promotion Activities Cost Breakdown Total expected cost ($)
Website Continued at no extra cost 0
Facebook Free 0
Banners / Posters After opening, banners and posters will becontinually placed every 3 months (four times in the first year).Outdoor Vinyl Banners (Gloss or Matte):
5 pieces x $160 x 4 times $3200Crystal Laminate Posters:10 pieces x $131 x 4 times $5240
$8440
Bus stop ads Detailed costs: see Table 2During the first phase, bus stop ads will be placed every three months (four times ayear) for four - week periods.2 signs / time
$5200
Email Monthly emails$15 / month
$180
Coupons (15% off for any bill over $50) Expected $10 discount per couponEstimated 700 customers to use per year
$7,000
Total cost: $20,820
4.1.3 Years Two and Three Budget
Capital: 25,000
The budget for year two and three will see a concentration on improving customer service quality through offering coupons and
issuing loyalty cards. Costs of promotion during this phase will be reduced remarkably as the restaurant gains reputation and
obtains highly frequent customers.
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Promotion Activities Timing & Cost Breakdown Total expected cost ($)
Website(executionists, 2013)
Maintenance cost: $250 / month $3000
Facebook fanpage Free 0
Banners / Posters Banners and posters will be continually placed every 6 months (four times in theyears two and three).
Outdoor Vinyl Banners (Gloss or Matte):4 pieces x $160 x 4 times $2560
Crystal Laminate Posters:10 pieces x $131 x 4 times $5240
$7800
Email Monthly emails$15 / month
$180
Coupons (20% off for any bill over $50) Expected $15 discount per couponEstimated 700 customer
$10,500
Loyal cards Initiated at the start day of year two andended at the end of year three.Estimated 300 customers will use cards.Average cost of $5 per entrée, $5 per drink.
$3000
Total cost: $24,480
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5.0 Control & Contingencies
It is of the utmost importance for a business to be aware of how well it performs in the
market. Hence, it is necessary to implement a control and contingency program to
monitor the operation of business. Generally, VJC settled its benchmarks by measuring
both social-oriented metrics and financial metrics. In case of urgency, these methods can
help the managers recognize crisis promptly and get through difficulties as soon as
possible.
5.1 Social-oriented metrics:
5.1.1 Online Websites
VJC Restaurant website will be designed and listed in some popular review websites such
as Urbanspoon.com or Yelp with a view to providing our consumers with details and
comments about the restaurant. This website is a platform where customers can not only
share their dining experiences in the VJC but also make recommendations for new
viewers (Urbanspoon 2013). Generally speaking, the website plays as a direct channel to
get feedback from customers. Even in case negative comments are left on the website, it
is still a good way for online service staff to record them, report to the manager and
figure out a better method to improve customer service. As a result, the quantity and
frequency of Internet users browsing the website can be tallied up in order to spread the
popularity of VJC Restaurant compared to competitors.
5.1.2 Social Media
Social media is a cost effective and timely measure that can be used to promote a
business to a wider range of audience. Facebook is one of the most significant channels to
monitor the success of marketing activities. Facebook is the world's largest social
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network, with more than 900 million users around the world (Mashable 2013). It provides
truth front-line materials to the public. As it is a website with the majority of worldwide
users, it can be conducted as a influential social media. Moreover, business can easily
manage marketing programs and product evalutation through the ‘shares’ and ‘likes’
showed.
5.1.3 Coupons
Nowadays, a deal-of-the-day recommendation service becomes increasingly popular
among consumers. Coupon is such a middleman method to promote city’s restaurants and
stores (Paul 2013). The way of monitoring the operation of business is relatively similar
to those has been aforementioned, such as measuring the quantity of people browse the
VJC Restaurant on coupon, or take record on those people who carry coupons to
consume.
If our social-oriented metrics are not met, VJC Restaurant’s control and contingency
plans will concentrate on adjusting its operation and management by conducting public
survey. We will also gather online comments and set up a scheme of improvement which
suits customers’ interests and expectations. This plan will be implemented effectively in
the VJC, especially when a downward trend of performance or negative evaluation on the
website is seen.
5.2 Financial metrics:
5.2.1 Financial Statement Records
Another way to evaluate business performance is through records extracted from
financial statements by comparing revenue, expense and net profit at the end of each
week. The main source of information an income statement provides is profit. It also
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reveals the different costs and expenses a company has to drive revenue (Alex 2013). If
profits do not reach our budget, the control and contingency plans will start to be used
immediately to help VJC Restaurant overcome crisis.
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6.0 Conclusion
This marketing plan of VJC Restaurant concentrates on providing a clear marketing
strategy in order to achieve higher success. As several key issues are already listed at the
very beginning of the marketing plan, it can be concluded that VJC must contribute great
effort to survive in such a competitive environment. Hence, an effective branding strategy
and marketing mix strategies are established to make our business outstanding from
existing competitors. In addition, the action plan outlines a wide range of promotion
activities that will be adopted in the V.J.C restaurant, which is expected to get the V.J.C
known by a wider range of customers to increase market shares. By making a staged
budget, the action plan can be implemented in appropriate periods of time and in suitable
circumstances. Moreover, the control and contingency plan has been regulated to monitor
the running of business in case operating crisis happens, and at the same time, it ensures
the frequent and sincere communication between business and customers.
Though VJC Restaurant is in a highly competitive environment, it is attractive to
customers not only because of its combined-Asian-cultural concept, tasty cuisines, and a
cozy atmosphere, but also the quality of service. We are very confident that this
marketing plan can lead VJC to great success in future operation.
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7.0 Appendices
Appendix 1: A serving bowl of noodles (size 6”)
Source: http://www.ikea.com/us/en/catalog/products/80133124/
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Appendix 2: A serving bowl of rice (Diameter: 6 ", Height: 2 ")
Source: http://www.ikea.com/ca/en/catalog/categories/departments/eating/18864/
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Appendix 3: Coupon Sample of Steakhouse 2011
Source: http://www.restaurantsingatlinburg.com/discount_coupons.html
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Appendix 4: Restaurant Poster Sample – Ming’s Asian FusionSource: http://www.signazon.com/asian-restaurant-poster/
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Appendix 5: Chart of purchasing, spending of online coupon users 2011
Source: http://www.marketingcharts.com/wp/direct/online-coupon-users-prove-valuable-customers-19582/
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8.0 Reference
Alex, S 2013, What is the Function of an Income Statement?, Online resources,
viewed 6 October 2013, <http://www.ehow.com/info_12013857_function-
income-statement.html>.
Australian Bureau of Statistics 2011, 2011 Census QuickStats- West End , viewed 10October 2013,<http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/SSC31746>.
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