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Business Plan Part 2

Student Name

Institution

Instructor

Date

Business Plan Part 2

CJ’s Restaurant

3. Company Products and Services

CJ’s restaurant will offer organic food which is high in nutritional value. Most restaurants offer food with less nutritional value and especially fast-food restaurants. Currently, most people are seeing the need to turn to organic food and more nutritional options of food due to the current rise in lifestyle illnesses. That creates a niche in the market whereby the restaurant shall meet the current and upcoming needs of most customers. The high potential for the restaurant’s products is the reason why they have been chosen to be offered to the customers.

With the purchase of organic foods, the customers of the restaurant will get the value for their money. They will access food with high nutritional value at affordable prices. Although some restaurants serve and sell organic foods, most of them charge high prices for the products. The product of the company is a product as well as a service as they will both play a crucial part in the success of the company. The products provided are convenience goods. The customers will also offer a delivery service. That will enable them to eat healthy whether at home or work. The company will start a big restaurant to enjoy the economies of scale. It will also enable the company to gain more customers over a short period of time.

7. Marketing Strategy

A. Target Market

The target market of the company are people from middle and low social classes.

1. Customer Demographics

According to the 2020 Census Bureau, the population in Texas is 29 million (www.census.gov/quickfacts/TX). It is estimated that a third of the population eat organic food.*. Therefore, the company will have approximately 9% of the population. The customers of the business live mostly in suburban and rural areas as the target market includes people from middle and low social classes. The company targets people from both genders, from any race, and with any years. That is because organic food is a necessity and cannot be limited to some people only

2. Customer Psychographics

The target customer of the business are the buyers who want to live a healthy life thus they are motivated to buy organic food. The customers makes planned purchases and brand specific purchases in this case as it is based on quality of the product. The customers may buy the products from any region despite in an urban, suburban, or rural area.

B. Promotion Mix and Sales Strategy

The company will use several promotion strategies to promote its products. One of the strategies that will be used is social networking. Social networking is the use of social media to market one’s products. The company will open social media accounts where it will post information about the company as well as the products the company provides to increase awareness. Additionally, the company will make several celebrity endorsements to increase brand awareness. It will choose celebrities that have an interest in the food industry and those that have positive publicity. The company will also use e-commerce. It will have a website where customers can order their deliveries. The website will be user-friendly and easy to navigate. The company’s staff will be trained to increase their customer relations and communication skills to engage with the customers more effectively.

· C. Pricing Strategy

The product of the company is in the growth phase in the product lifecycle. That is because it is a product that is gaining popularity in the market. The company will enter the market as a low-cost provider. That will enable it to satisfy the needs of its target market which comprises medium-income and low-income earners. The pricing strategy that will be implemented is penetrative. The main objective of the business is to grow the number of customers. Since it will depend on the economy of scales, it will make more revenues with larger volumes. The company will offer discounts to its customers to increase its retention rate as well as attract new customers. The competitors that provide the same products as the company charge higher prices.

References

U.S. Census Bureau QuickFacts: Texas. (n.d.). Census Bureau QuickFacts. https://www.census.gov/quickfacts/TX