Columbia Southern University
Marketing Plan Part I: Galaxy Restaurant
Introduction
Galaxy restaurant will be a business that offers assorted food, drinks, and snacks to its consumers the hotel will be located in Queens near St. John's University Queens. Two brothers who have been saving capital to start their own business will own the restaurant. the owners are aware of the stiff competition in the hospitality industry and it is because of this that the restaurant will target people of all income as a strategy to widen its target market and earn a competitive advantage in the industry (Viral & Shailesh 2013). The restaurant will also gain market share by offering clients unique restaurant services including special dining offers for couples and families. These ideas will be informed after the initial market research that will be conducted by professional market researching firm. The restaurant will be located in Queens near the St. John's University as the location was found to be the most viable from the initial research. Since the hotel will be targeting people of all income, the location is imperative as it has people of all income ranging from students, University employees to other merchants and people living in Queens. This paper will provide the marketing strategy that the company will employ and the macro-environment of the industry.
Legal and Business Model
Restaurants are categorized under small and medium business ventures due to the capital that is required to start them. However, in other instances, they may require large capital because of the number of employees and the assets that may be required to run the business. Based on the need for the capital and other management requirements, the best legal model for the restaurant is a partnership (Viral & Shailesh 2013). This will be the best business model as it will allow two investors to contribute the initial capital and help one another in the management of the restaurant. The model is good as the two partners will hire employees together, contribute the capital and borrow money to fill any capital deficit. However, the partners may also have more difficulty with taxes and legal responsibility.
Market Research Strategies
The restaurant industry is one of the most competitive industries in the world. This is because of the changing demands of the customers in the industry and the increased global connectivity that has seen people of different culture living in different areas all over the world. The marketing research at galaxy restaurant will use the four W’s strategies (who, what, where and why) to effectively maximize the market (Jogaratnam, 2017). The “Who” strategy will help the business to understand the behaviors of the potential customers. This will help the owners understand how the clients seek information, how they perceive brands, products and what influence their buying trends. the “what” strategy will help the business owner determine the trends and patterns in the market something that will help the business determine opportunities that can be utilized to resonate with customers in the market segment. The “where” strategy will focus on understanding the media used for advertisement in the market space. This is important as it will inform the owners the best way to create content that will be found imperative by the audience (Jogaratnam, 2017). This also important as it will provide industry trends which can be relied on to strategically plan for the entry. The last strategy that will use the “why” question is important as it will help the business owners to understand competition in the industry. The information from this research strategy is important as it will help to determine the available opportunities in the market and those that have been utilized by competitors.
Macro Environment Analysis (PEST)
The restaurant industry is one of the most profitable industries in the world. It is a place where food is prepared and served to people and can work around the clock (Ivanova & Dimitrov, 2017). However, the industry is regulated and shaped by several factors that include political, economic, social and technological. This section will look at Galaxy Restaurant PEST analysis.
Political factors
The government has always wanted to control and have influence over the industry. The government has passed several policies that govern the activities of restaurants that are aimed at ensuring the health of the people. The government monitors the cleanliness standards, tax rates, and labor laws in the industry (Ivanova & Dimitrov, 2017). The government agencies check the quality of food and ingredients used to prepare the food so as to maintain the health of its people with reducing the profitability of the restaurant policies that are also aimed at conserving the environment are also emphasized in the industry.
Economic factors
The change in tax regime has a direct impact on the profitability of the industry. Imposing the tax on consumer goods increases the price of food. the changes in the exchange rate and inflation has a direct effect on the food ingredients which means that the restaurants have to increase their food prices hence low-profit margin (Ivanova & Dimitrov, 2017). The viability of the restaurant business highly dependent on the stability of the economy as a stable economy will mean that people will have the cash to organize for parties and have night outs.
Social factors
People are becoming more educated and they are aware of the food nutrients that they are supposed to take. People are looking for quality but not quantity in this market something that has a direct impact on the sales (Ivanova & Dimitrov, 2017). Increase in the population is what flourishes restaurant industry; however, an increase in population has also resulted in the localization of restaurants in the urban areas hence reducing industry profitability. The movement of people from one region to other has resulted to people of mixed culture and restaurants have to make assorted dishes that satisfy the needs of the diverse population something that has proven to be expensive to maintain.
Technological factor
Technology has not only affected the way food is prepared, served and preserved but also the way advertisements id has done and after service provided to consumers (Ivanova & Dimitrov, 2017). Most of the restaurants use television channels and social media to advertise their restaurants something that is expensive. technology has resulted in automation of services in the industry and some business with huge capital even use SMS services to notify clients of their offers something that has increased competition in the industry.
References
Ivanova, S., & Dimitrov, D. (2017). Implementation of wine culture in the restaurant industry. Journal of Mountain Agriculture on the Balkans, 20(4), 151-167.
Jogaratnam, G. (2017). The effect of market orientation, entrepreneurial orientation and human capital on positional advantage: evidence from the restaurant industry. International Journal of Hospitality Management, 60, 104-113.
Viral Chauhan BCom, M. B. A., & Shailesh Limbad BCom, M. B. A. (2013). Measuring customer satisfaction of Mc Donald's fast food restaurant. International Journal of Management, IT and Engineering, 3(8), 572.
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