Marketing Plan

Marketing Plan

Marketing plan Title: Introducing a new meal- "Charley's Box"

Course Title/ Number: Marketing Management / C8

Name and Date: Tishta Bachoo/ 07.12. 2013

Name of Instructor: Mr. Vasenden Dorasami

Executive Summary It is the beginning of a new era that the fast food industry has gradually breakthrough the Mauritian lifestyle. Due to the globalisation process, many fast food franchises are now available in Mauritius. Today these products form part of our lifestyle and culture. People rely on their convenience to enhance their lives and productivity. But in the fast and increasing competitive business environment of today, the right marketing approach is necessary to deal with competitors. The ability to develop effective marketing strategy enables the firm to become more responsive and adaptable to the market. With the the growth of fast foods in Mauritius, the first Charley's store was introduced at Trianon in the year 2013 to cater for customer needs. The restaurant features sandwiches such as the PhillyCheese steak, ChickenTeriyaki, Buffalo Chicken, and recently offered the Chicken Chipotle, Spicy Asian BBQ, South Philly and the Southwest Chicken sandwiches during limited time offers. Charley's also serves salads, fries, and lemonade. Charley's is an extremely innovative company with unique menu items and its products are manufactured within international norms and quality to provide the maximum satisfaction to its customers. The products sold are Halal guaranteed. Thus, whatever someones belief and culture, he or she can eat at Charley's. The rational of developing marketing strategies is to respond to the increasing high demand in fast food and to eventually increase the market share of Charley's. Charley's main and direct competitor is Kentucky Fried Chicken (KFC). Charley's is relatively new on the Mauritian market and KFC has already positioned itself in the mind of customers since it was launched in Mauritius in 1983.

The marketing plan is for the launching of a new meal named "Charley's Box". It will be a complete meal in a box containing a drink, a sandwich, salad and dessert, as per the customer's choice. This meal is specifically designed for the time-strapped families, white-collar busy people and the teenagers. Charley's Box will be introduced in the market with the help of various promotional advertisements. A SWOT analysis has been carried out to see the outlet's strength, weakness, opportunities and threats. Then, the goals and objectives have been explained. A Product Portfolio has further explained the management of Charley's product lines. The STP process has been used to divide the specific segmented and targeted market and with the use of the marketing mix elements, Charley's positioning strategies are implemented. Assumptions made in this particular study are that the company: is financially stable, operates in an oligopoly market, has a research and development team in place and that Charleys is a socially responsible company.Table of Contents

Situation Analysis4External Environment Analysis4Context analysis with Pestel model4Competitor Analysis [Porters Five Forces]5Customer Environment Analysis5Segmentation6Target markets6Positioning7Internal Environment Analysis8SWOT Analysis8BCG Product Portfolio Matrix8The Ansoff Growth Matrix9Elements of Market and Marketing Research11Issues Analysis13Goals and Objectives14Marketing Strategy Statements15Target market definition15Strategy statement15Proposition statement with reference to the 7ps of marketing16Accessibility statement with reference to the 7ps of marketing17Communication Statement17Marketing Implementation19Marketing Budget20Control20Contingency Planning21References23

Situation Analysis External Environment AnalysisThis is asystematiccollectionandevaluationof past and presenteconomical, political, social, and technologicaldata, aimed at the identification of internal andexternal forcesthat mayinfluenceCharley'sperformanceandchoiceofstrategies. It also assesses Charleys current and future strengths, weaknesses, opportunities and threats.Context analysis with Pestel model

Figure 1: PESTEL MODEL

Competitor Analysis [Porters Five Forces]No organisation can afford to ignore their competitors. It is very common for marketing managers to monitor the activities of their competitors, what they are doing to improve? And so on. Charley's beats its competitors through the revision of its marketing strategy all the time. The major competitor of Charley's is KFC.Figure 2: PORTER MODEL

Customer Environment AnalysisThe nature of the buying behaviour is complex.

Figure 3: BUYING BEHAVIOURSegmentationCharley's has divided the market into distinct groups of customers with different demands, tastes and behaviour who require separate products or marketing mix. In Mauritius, the niche marketing is being used for particular classes of people. Market segmentation has been made on the following bases:

GeographicGeographic segmentation of Charley's is worldwide. This year, it got established in Mauritius. The first store was opened in Shoprite, Trianon, the second one at Bagatelle and the third one at Riche Terre mall. These places have been targeted because they are very commonly visited by families, the younger generation. Moreover, these malls are surrounded by offices which mean that workers go there for lunch.

DemographicCharley's general market segment is the younger generation and those who work. However, they segment upper class, upper middle class and lower middle class family as well. Charley's focuses on people under every age group.

PsychographicCharley's psychographic segmentation includes people having good attitude about food sense and those who want to have a good time with their friends and family. It serves all types of personalities by continuously offering variety in its menu.

BehaviouralThis divides buyers into groups based on their taste, class, the price they want to pay and also the quality. Charley's provide convenience, high quality food, rapid and friendly service.

Target marketsCharley's has successfully used a differentiated market segmentation strategy. Charley'sintends to cater a wide customer base. Management wants everyone to feel welcome and entertained. The groups identified as target segments that contribute to Charleys growth projection are illustrated in figure 4.

Figure 4: MARKET PROFILE

This particular market segment of 25-45 years old, have disposable income, and seeks upscale, trendy, and comfortable restaurant options which are offered by Charley's. These are the types of people who visit other restaurants and bars in the area. They aremost likely to spend more on experiences they perceive. They are also the most open totrying something new, food wise, and willembrace Charley's new meal.

PositioningCharley's provides high value offering at affordable prices. Charley's has made its products more nutritious than other fast food outlets. This is due to the huge sum spent on Research & Development. The price of the new meal will be very affordable, taking into consideration, the average pocket money of teenagers.

Internal Environment AnalysisSWOT Analysis

Figure 5: SWOT ANALYSIS

BCG Product Portfolio Matrix

Figure 6: PRODUCT PORTFOLIO

StarThe star product of Charley's is the Gourmet Fries. It has a high market share and brings in high revenue. But it also has high developmental expenditure involved. The profit therefore isgenerally not very high in this product. Charley's istryingto makethisproductacash cowaswell,byreducingthe expenditure.

Question MarkCharley's will launch the new product in the market with the brand name Charley's Box. As it will be a new product it comes in the category of the Question Mark in the BCG Matrix. It has a low market share thus brings low revenue. Charley's should advertise a lot to popularize this product so that everyone gets to know about it. This will increase expenses and will initially not bring much revenue to the company and instead might be cash drain for Charley's. However, if good strategies are used, Charley's Box might shift to either the star or even cash cow at a later stage.

Cash cowCharley's Philly Chicken is the most successful product of the company. It has the highest market share amongst all the other products. It has superior demand in the market and brings in huge sales revenue. The development and otherexpenses are also low and thus this product is a cash surplus for the company.

DogCharley's Philly Veggie comesunderthiscategory.AlthoughCharley's hadlaunchedthis product muchearlier, ithas still failed tobecome a success. It has a low demand for this meal because of Charley's is not well known for its vegetarian meals. Also many people do not prefer to eat out in a place where it makes mostly non veg meals. It has a low market share and although low onexpenditure (as company doesnot spend onits promotion), itdoes not bring in much revenueas demand is low.

The Ansoff Growth MatrixThis is a way to create growth strategies for corporations based on markets and products. There are there are four possible combinations: Marketing penetration - This growth strategy uses current products and current markets with the goal to increase market share. Market development - This growth strategy uses existing products to capture new markets. Product development - This growth strategy uses new products in the existing market. Diversification - This strategy creates completely new opportunities for the company by creating new products and new markets.

A company should decide which strategy to use based on the strengths and weaknesses of the company and its competitors. Charley's has an existing market and now planning to introduce a new product. Therefore, the below combinations are crucial to focus on:

New Product DevelopmentThis process has two parallel paths: one involves the idea generation, product design, and detail engineering; the other involves market research and marketing analysis. Charley's is developing the new product under the brand name "Charley's Box" because the company's believes that its strength lies with the customers. Market PenetrationThe best way for Charley's to achieve this is by gaining the customers of competitors. Other ways include attracting non-users of Charley's product or convincing current clients to use more of its product. After the development of Charley's Box, management can decide upon introducing Free Delivery Services, Drive through or even implementation of an online ordering system whereby customers can order and receive their meals within 30 minutes. The new product is mainly targeting the younger generation and working class. It is assumed that these groups of people are very technological advanced and will find it more convenient to actually order online. Charley's can also provide WI-FI services to its customers especially for the working class and teenagers who can check their e-mails while having lunch.

Elements of Market and Marketing Research The market research will give accurate information about the requirement of the target group, making it possible to create a well thought out marketing mix to win customer loyalty. In all its markets, Charley's faces competition from other businesses. Additionally, economic, legal and technological changes, social factors, the retail environment and many other elements affect Charley's success in the market. In order to succeed in the competitive market, Charleys needs to undertake some marketing research.

Figure 7: PURPOSE OF MARKET RESEARCH

Market research will identify the above mentioned factors and anticipate how they will affect people's willingness to buy. As the economy and social attitudes change, so do buying patterns. Charley's needs to identify whether the number of target customers is either growing or shrinking and whether their buying habits will change in the future.

Figure 8: MARKET RESEARCHMarket research considers everything that affects buying decisions. These buying decisions can often be affected by wider factors than just the product itself. Psychological factors are important, e.g. what image does the product give or how the consumer feels when purchasing it. These additional psychological factors are significantly important to the customer. They can be even more important than the products' physical benefits. Through marketing, Charley's will be able to establish a prominent position in the minds of customers. This is known as branding.

Meeting the needs of key audiencesThere are a limited number of customers in the market. To build long-term business, it is essential to retain people once they have become customers. Customers are not all the same. Market research will also identify different types of customers who will be visiting Charleys.

Customer ProfileReason

A parent with two childrenVisits Charley's to give the children a treat.

ChildrenWant to visit Charley's as it is a fun place to eat.

A business CustomerVisits Charley's during the day as service is quick; the food tastes great and can be eaten in the car without affecting a busy work schedule.

TeenagersThey are attracted by the affordable menu, and the Wi-Fi access which will be available at Charley's.

Figure 9: NEEDS OF KEY AUDIENCE

These examples represent just a few of Charley's possible customer profiles. Each has different reasons for coming to Charley's. Using this type of information, Charley's can tailor communication to the needs of specific groups. It is their needs that determine the types of products and services offered, prices charged, promotions created and where restaurants are located. In order to create a marketing strategy that will enable the needs of the key market to be met, the strengths and weaknesses of the organisation must first be identified and analysed.

The analysis will examine the following parts of the companys business: The companys products and how appropriate they are for the future The quality of employees and how well trained they are to offer the best service to customers The systems and how well they function in providing customer satisfaction e.g. marketing databases and restaurant systems The financial resources available for marketing. Once the strengths and weaknesses are determined, they are combined with the opportunities and threats in the market place.

Issues Analysis Issue 1: Cultural diversityThere are many different religions, traditions, festivals, and cultures in Mauritius. Each Mauritian has a different background and origin. Mauritius population is very rich and diverse. Various cultural groups provide guidelines regarding acceptable foods, food combinations, eating patterns, and eating behaviours. Compliance with these guidelines creates a sense of identity and belonging for the individual.

Decision 1Understanding the religions basic tenets and practices, will allow the company to comply with Mauritian norms and values, associated behaviour in government, politics, business, public life, family life, and social life. Knowing the spiritual barometer of Mauritius will help the company to establish successful relations in a respectful manner and to avoid potential costly social blunders with Mauritian.

Issue 2: Mauritius health conscious societyFast food is considered in Mauritius as unhealthy which contribute to obesity and diabetes.

Decision 2Charley's Sub should extend nutritious and health-conscious menu offered across the Fresh & Healthy Brands family with a whole new approach to grilled items. The company should promote their low fat values across their menu in their advertising campaign.

Issue 3: Facing fierce competition with well established fast foodsCharleys sub is operating in a very competitive market. Companies like KFC, MC Donald, Nandos, pizza hut, Debonair dominate the fast food market share.

Decision 3To gain market share the Charleys sub should differentiate its product from competitors and proposed a relatively low price to the customers.

Goals and Objectives

Profitability Goal: To remain profitable and financially healthy companyProfitability Objective: 1. To achieve a 25% return on capital employed by August 2014.2. Increase productivity of employees by 20% through training and customer feedback by September 2014.

Market Share Goal: Increase our company market share in the fast food industry,Market Share Objective:1. To increase our market share by 25 % by December 2014 by means of value-added incentive.2. Increase customer satisfaction by 50 % before April 2014.3. To offer the lowest meal package in the fast food industry by 2014.

Promotional Goal: To create awareness for the company and its products and services.Promotional Objective:1. Increase customer awareness (Charleys Sub new healthy menu) by 50 % by December 2014.2. Increase customer loyalty through rewards system by 20 % by November 2014.

Growth Goal: To expand the company business throughout the island.Growth Objective:1. To realize an annual growth rate of 10.25% greater than the previous year.2. To recruit 10 qualified staffs by November 2014.3. Open at least 3 more outlets by October 2014 to be more accessible for customers around the island.

Branding Goal: To build awareness of our brand, while constantly maintaining and protecting its integrity.Branding Objective:1. To make charley sub the preferred brand of 18-25 year people in Mauritius by November 2014.2. Establish a corporate image of the company in the Mauritius community by December 2014.3. To develop and make used of environmental friendly packaging (No plastic) by March 2014.

Marketing Strategy Statements

Target market definitionIn demographic segment, Charley's main target is the youngsters and the working class adults ranging from 25 years to 40 years as they are the ones who spend a lot in eating out. The two services provided by Charley's are as follows:

Dine in is for those who love to have good times with their friends and age fellows and some families.

Take away is for those who dont get their food for home. Customers can order on phone and can come pick up the order after some minutes. This is more appropriate for the working class.

Strategy statement

We provide a unique customer experienceProvide customers with value for money either high quality products or services in a very clean and friendly environment.

We operate our business ethicallySound ethics is good business. At Charleys, we hold ourselves and conduct our business to the highest possible standards of fairness, honesty and integrity. We are individually accountable and collectively responsible.

We are committed to our peopleAttracting and developing the best talent for our business, stretching our people and developing a "can do" attitude. Charleys provide opportunity, recognize talent, and develop leaders. We believe that a diverse team of well-trained individuals working together in an environment that fosters respect and drives high levels of engagement is essential to our continued success.

We give back to our communitiesWe help our customers build better communities by supporting charities institution, religious festival and leverage our size, scope and resources to help make Mauritius a better place. We are committed to sustainable business practices and are determined to conduct our operations in a manner that does not compromise the ability of future generations to meet their needs.

We strive continually to improveWe consider charleys as a learning fast food company that is green and growing which anticipates and responds to changing customer, employee, system and community needs through constant evolution and innovation.

Proposition statement with reference to the 7ps of marketingProduct: Provide high quality service/product (healthy only) and maintain long term relationship with customers.Price: Provide and maintain the moderate meal price in the fast food market. This way Charley's can attain large market share.Place: Outlets are very evenly spread throughout Mauritius. Charleys does not offer home delivery but its outlets are very readily accessible in famous shopping complex.Promotion: Advertising is conducted on radio, in cinema, online and by means of magazine to ensure informations are delivered to our target market.People: Continuously train people and motivate them through rewards system to promote high quality service/delivery. The employees at Charleys have a unique standard uniform.Process: By means of open kitchen, charleys allow its customers to see the ingredients being used, and to judge the hygienic standards at the outlet.Physical evidence: Provide a clean, friendly and unique environment

Accessibility statement with reference to the 7ps of marketing

Product: All the ingredients used in the preparation and cooking process should be clearly displayed on menu cards.Price: Each product price must be clearly displayed and communicated to the customers.Place: The address and opening hours of all the outlets should be displayed on the company website and brochures.Promotion: Price, conditions, place must be clearly stated through the promotion campaign.People: Charleys mission, objectives, policy, standards must be communicated to their employees.Process: As charleys makes use of open kitchen, appropriate safety cooking conditions and code of conduct must be communicated to all the employees.Physical evidence: A good appearance of Charleys outlets Staff should be wearing clean uniform, staff courtesy and greetings, staff responsiveness. The restaurant should be comfortable and have enough seating capacity and dining space.

Communication StatementCharleys will like to communicate its commitment in providing healthy menu at affordable price to the Mauritius society. Charleys will use creative advertising campaigns and will pay media to deliver their message to the target market.

Point of Purchase Material and standard uniformIt has mass coverage mainly to Charleys existing customers. Point of purchase material will target our audience of 18 to 40 years old. Hats and shirts will be distributed to employees. Both of the aforementioned will have as main theme the company logo associated with a healthy message.

Website and Smartphone applicationCharleys will implement a user friendly and highly interactive website to promote the healthy menu. Charleys will also provide a free mobile application that will connect customers with the website and its Facebook or LinkedIn page so that they can interact and share opinion. Our target audience will have the opportunity to use the mobile application to further learn about the healthy menu product line.

Online marketingWide internet banner will be displayed on the orange and defimedia website, which are lifestyle, high traffic site that are mainly visited by women and men of 18 to 44 years old.

Mobile Marketing through SMS PUSH strategyMobile is an important way to reach consumers, who increasingly have their Smartphones and tablets within their reach 24-hours a day. Charley's will use SMS push strategy to communicate their promotions and new healthy menus on a monthly basis.

Bus shelters and radio campaignPosters will be placed on bus shelters to capture customers attention because it has a high visibility to every segment. The majority of people listen to the radio during morning hours while they are on the way to their work, school and university. Radio campaign will be put in place through radio+ which is highly rated and considered as premium in their music option. Broadcasters need to constantly reference charleys as a healthy fast food provider will make constant references to Nutrition and Balance products.

Marketing Implementation

Figure 10 : Action to achieve goal

Other actions to be carried out by Charleys Initiate television ad campaign for the new meal Initiate Charley's bag design contest Organize free in store tastings for the new meal Develop Daily Deal site offering that will require email list registration

Marketing Budget In order to compete with the large marketing budgets of competitors, Charley's will increase its marketing budget as shown in the table below.

Figure 11: MARKETING BUDGET

ControlTo measure and evaluate the success of the marketing objectives, Charleys will use metrics analysis tools to keep an eye on customer engagement, lead generation and sales data. Customer Relationship Management and industry-standard metrics will be implemented to manage Charleys customers and lead for online campaigns. Google analytic will be used on the company website to analyse visitor traffic and will provide a complete picture of the audience and their needs, wherever they are along the path to purchase. Management will also monitor and analyse sales result during specific time frames by tracking the ROI of in-store and offline marketing efforts. Furthermore Charleys control process will consist of annual plan control, profitability control, efficiency control and strategic control.

Contingency PlanningCharleys should put more emphasis on having a contingency plan in place. For instance, if its main supplier suddenly goes bankrupt? Its entire sales force gets food poisoning? Or Charleys staff fall sick on a peak time. These things can all cause confusion and disorder if Charleys have not prepared for them properly. Contingency planning is a key part of this preparation. It's about preparing for events such as the loss of data, people, customers, and suppliers, and other disruptive unknowns. That's why it is important to make contingency planning a normal part of the way Charleys works.

Risk AssessmentThe need for contingency planning emerges from a thorough analysis of the risks that Charleys faces. It's also useful in thinking about new projects. For instance, what happens if the meal Charleys Box doesn't go as expected? This is when the contingency plan comes in need. Charleys might be faced with the following risks:

RISKSPLANS

1If location is damaged by natural disasterMove operations to a different location

2If a competing Grill shop is opened nearbyStart an aggressive advertising campaign

3Losing market shareReduce prices so as to get more customers, hence gaining back the market share. Innovate, and improve the product quality.

4Charley's Box fails Invest in new resources or services that help Charley's manage it well. Otherwise, invest in another product or service.

5Loses physical location due to a fireCharley's owner to lay off workers and to stop ordering materials and equipment to be back on the pre-disaster level.

After Addressing Charleys critical business functions and analysing the threats and risks, Charleys should estimate a likelihood of its occurring. Only then, a contingency planning should be the next focus. In order to maintain the process, the plan should be communicated to everyone at Charleys.

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