Marketing Management Project 3
TonKung
SamplePaperPartCAssignment32.docPART C: MARKETING PLAN WELL FED 1
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PART C: MARKETING PLAN 2
Part C: WELL FED Marketing Plan
Anonymous
MKT500 Marketing Management Strayer University
Dr. Lisa Amans
11/27/2018
Introduction
The hypothetical company is Well Fed, a restaurant opening up in Albuquerque, New Mexico. The focus is on sustainable healthy food. Well Fed is a mid to high end Greek American fusion restaurant offering a variety of small plates and a fine dining experience. The menu will change frequently as items come into season. The location is in the popular Uptown Shopping area.
The feedback received on assignment 2 was overall very positive. The brand strategy, target market, positioning statement, and perceptual map was done correctly and succinctly. Opportunity feedback stated to ensure that the document is submitted in word document format instead of pdf. Next, it is important to understand the difference between a mission statement and a positioning statement, as they are not the same. Finally, the use of scholarly resources drastically improved, but journals do need a volume and issue number.
Feedback incorporated into the third assignment begins by ensuring that the document is submitted in .doc format. The positioning statement and mission statement are correctly discussed in this paper. Journal volume and issue numbers have also been added. Finally, in text citations include the authors name in addition to the year.
The message to be relayed by Well Fed is that they are a high-quality restaurant that cares about their community. The food is local, organic and sustainable. The communications plan is to ensure that the brand message rings clear in every channel. The primary and secondary target market audience are advertised to in ways that the user-friendly. Public relations, sales promotion, and the personal selling plan aim to build positive associations and interactions with consumers. The company demonstrates its social responsibility via an environmental focus and through community relationships.
Pricing, and Distribution Strategy
The pricing and distribution strategy for the Well Fed restaurant is simple yet strategic. From a pricing perspective, being a product-quality leader while providing a range of price points will ensure that the company is competitive in the marketplace. In addition, following the six steps to setup a pricing policy from Chapter 11 of a Framework for Marketing Management will ensure that correct price points are established for the most profitability. (Kotler & Keller, 2016). The distribution plan is for local and large-scale vendors to wholesale items to the restaurant. The channel strategy is a single brick and mortar location with an Omni approach for ordering items to-go.
Pricing Strategy
Well Fed’s pricing objective is to be a product-quality leader. The goal is for customers to see the value in fresh local ingredients combined in a variety of delicious ways. It is important to not set prices too low or menu items may not be seen as high value. Also, the price cannot be so high as to be completely unaffordable to the primary target segment, which are health focused individuals. Customers will be more likely to pay more if the value of the product is justified.
Understanding the demand in the marketplace is the next step in setting up a pricing policy (Kotler et al., 2016). According to the Journal of Retailing and Consumer Services, modern consumer’s expectations have shifted with an increased demand towards organic food (Rana, 2017). This demand can be fulfilled with food provided by local farmers to the Well Fed restaurant. The word ‘organic’ can be marketed strategically by the company with the use of labels and verbiage on the menu, website, and general branding.
Different types of costs need to be accounted for so that prices can be properly established. Fixed costs will include renting the physical location in the uptown shopping area, which is expensive. Salaries of all employees will also calculate in. Variable costs will include costs such as produce from local farmers. Prices can vary from season to season based on the produce available. Marking up prices based on total costs will help safeguard profitability.
In addition, being competitive in the market without dropping prices too low is critical to success in customer perceptions and profit. Prices will be comparable to other restaurants that are within walking distance from a fine dining perspective. Customer will use reference pricing to associate and interpret the amounts charged by nearby establishments. Some items on the menu will be more expensive than other restaurants in the area given the quality of the ingredients. If the high-end dine-in customers infer quality or think that others cannot afford these uniquely fresh items, then a high price could add more perceived value (Kotler et al., 2016).
According to Chapter 11 of a Framework for Marketing Management, “having a range of price points allows a firm to cover more of the market and to give any one consumer more choices” (Kotler et al., 2016). This will be accommodated in that food items will be slightly more affordable during happy hour and with the Well-fed Express menu. This will help more price sensitive customers be able to afford either the dine in or dine out menu.
Price elasticity will be managed and reviewed closely to ensure that profits are maximized. For instance, let us say for instance that the Well Fed Express menu started at the same price as the dine-in menu, and a baseline was established. Next, a 4% price drop occurs to see how the market responds specifically for these always-ready to-go items. If sales and profits drastically increase, then the small price drop may be justified on a long-term basis.
In summary, it is important to follow the necessary steps in setting up a pricing policy so that all components are considers. Pricing decisions should take into account the consumer, the company, competition, and the environment (Kotler et al., 2016). Doing so will ensure that the final prices selected are right for the market and help the company to be profitable.
Distribution Strategy
The logistics starts with vendors that supply the local organic produce in New Mexico. Local vendors may include Skarsgard Farms, Loose Leaf Farm, Urbana, Heidi’s Raspberry Farm, Sichler Farms, Wagner Farms, and NM Reyes Farm (LocalHarvest, 2018). Farmers and ranchers will sell wholesale to the Well Fed restaurant. The producers can collaborate with a cooperative or food hub to ensure quantity and consistency for all produce received (Massey, 2015). Shipments will need to be coordinated frequently so that items move via truck to the restaurant, thus ensuring fresh produce. In addition, crating and cushioning techniques need to be reviewed so that produce is not damaged during shipment.
Wine and beer will only be sourced from local wineries and breweries. Local brewers may include Marble, La Cumbre, Red Door Brewery, and Bosque Brewery (VisitAlbuquerque, 2018). Local wineries may include Las Nuevas Ninas, St. Claire Winery and Bistro, Casa Rodena Winery, and Le Combes (VisitAlbuquerque, 2018). Spirits will not be sourced, as the restaurant will only have a beer and wine license, which is less expensive to maintain.
Any remaining food items that are not locally sourced will go through big suppliers such as Sysco, US Foods, and Crossing Fine Foods (SimpleOrder, 2018). These items will also be shipped and moved to the restaurant via truck, but with less frequency. Chefs will carefully prepare meals from all items received daily so that customers can enjoy fresh food. From here, the path to purchase is very simple.
The Well Fed dine in, sit-down restaurant will have one channel of distribution to the consumer, which is the brick and mortar store in the uptown shopping area. Well Fed Express will be Omni-channel in that the customer can purchase any to-go item through the app, website, over the phone, or in person and receive a very similar experience. The customer will select an item for purchase and pick it up very quickly. This approach ensures that food can be ordered in the most convenient and efficient way for the individual.
Integrated Marketing Communications
The American Marketing Association defines integrated marketing communications as “A planning process designed to assure that all brand contacts received by a customer or prospect for a product, service, or organization are relevant to that person and consistent over time.” (Kotler et al., 2016). Starting with the primary and secondary target market segments of health focused individuals and millennials will help ensure that communications are most effective. The objective is to ensure that Well Fed can reach these individuals with the right message and in the right ways.
Message Strategy
Well Fed's positioning statement is "For customers who want to eat healthy food and improve their overall wellness, our brand is the best at providing delicious meals that are fresh, nutritious, and sustainable." The slogan is “Wellness, one bite at a time.” This information will be displayed on the company website, app, and verbiage can be bolded, enlarged, or italicized to ensure that it jumps out to the end user. This is just the starting point to inform consumers of the restaurant’s message, but they also should persuaded with messaging that is reinforced in a variety of ways.
Creative ways this message can be relayed to the end user is through the source and how it is said. For instance, with the slogan statement, a short video can be created featuring everyday healthy people who are millennials working out and playing different sports. They could each say one word of the slogan, which will later be combined together. The video will highlight very fit people doing yoga, playing soccer, and eating a healthy meal. The word ‘wellness’ will be displayed as a yoga instructor is doing a meditative pose. The next word ‘one’ will be displayed as a soccer ball appears on the screen with someone about to kick it. The word ‘bite’ will appear as chef takes a bite of a healthy meal while enjoying it thoroughly. The words ‘at a time’ will display as a series of other individuals of different ethnicities are playing sports or running. There will be motivational modern music in the background to complement the words.
The source of who is giving these messages adds creditability. For instance, a well renowned chef that is focused on creating healthy meals would be a perfect fit to talk about the product. This person could be featured through a quote and picture on the website in support of the positioning statement. They can also be the chef in the video mentioned. Local farmers would be a great add to the mix as well. Showing pictures, quotes, and testimonials next to the company positioning statement and slogan will add credibility to the message.
Finally, everyday people speaking to the truth of the messaging through their own experiences can add additional value. For instance, people can post comments in a multitude of locations about how they feel about Well Fed. If individuals post that they feel great and that the food was delicious and nutritious, this would add value for other potential customers. Someone that is an avid cyclist might post something like “I just finished eating at Well Fed. I have had such a hard time finding a healthy restaurant that leaves me feeling great. I biked 30 miles today and I now am now happy and full!” This statement supports the brand promise and messaging to consumers.
Media Strategy
Multichannel and Omni channel marketing will be utilized. What this means is that the messages across channels will be consistent and complement one another. Formats will include social media, events, company website, email, newsletter, radio, and other apps. Relationships with vendors can also be leveraged to promote the company image. Well Fed will use a combination of paid and unpaid advertising methods.
Social media will be the primary media channel. A Facebook page will be created for the restaurant and will display important information about the menu, community, and brand message. For the opening date of the business, there will be a Facebook Event created to promote the occasion. Entire Facebook Groups can be invited including local sports teams and vendor partners. For instance, the La Cumbre Brewing Co. IPA Fan Club has 413 members. The ABQ Yoga Club also has another 404 members. Soccer Fans of Albuquerque has another 796 members. Future gatherings can be organized and created using Facebook Events as well.
Paid advertising in the form of short videos will feature delicious looking meals and people eating while having a great time. The slogan video previously mentioned can also be used. This is a great way to support the launch of the business while focusing the videos at the primary and secondary target market segments. As millennials are avid users of Facebook, and they are the secondary target market segment for Well Fed, this approach will be key. Also, with the majority of the competition in the health food and sustainable restaurant business being located at least 15 miles away, a geographic market segment can also be leveraged with these communications plans.
Local radio is another source of paid advertising that can be used in moderation. Ideally, the plan will be to only use this during the period of the initial launch of the restaurant until other free sources of marketing can be leveraged. The goal will be to raise awareness in the community. As radio reaches 93% of the U.S. population age 12 and up, this is a great way to do this (Kotler et al., 2016). The owner and chef of the restaurant can be interviewed about how they created the restaurant and menu. This will explain the brand promise and aim to connect with the primary target market segment, which are health conscious individuals.
The costs of advertising can be reduced by using a technique called flighting. What this means is that there will be a period of advertising followed by a period without any advertising. This will reduce costs of advertising, but also ensure the ads are not annoying by being too frequent to consumers. This technique can be used with the Facebook and radio strategy mentioned previously.
The company app and website will also be utilized as media channels for marketing. Customers can easily go online and download the App to get more information about the restaurant. They can also go directly to the website if that is preferable. Menu information, branding, videos, and messaging will be supported with links to and from Well Fed’s Facebook page.
Capturing the customers email address when they post a question on the company website will be a great way to follow-up and start building relationships. Emails can also be captured at local events and in the restaurant. This can be used for later marketing techniques and customer communications, such as event reminders or company newsletters. The newsletters can tell the customers about menu updates, promotions, community involvement, and more.
Other great media formats that can be incorporated into the communication plan are the use of apps and websites other than Facebook. The primary costs would be for the staff needed to create, monitor, facilitate, or edit content. For example, Instagram is a great app that can be used to display a variety of delicious, artful looking food that is appetizing to the viewer. These pictures can be incorporated into Facebook posts as well. Other apps that can be added as additional media formats include LinkedIn, YouTube, and Twitter. These are great tools for customers to see content, comment, and interact with the business. Ultimately, the goal is for all channels to provide a consistent and easy to understand message to the consumer.
Public Relations, Sales Promotion, and Personal Selling Plan
The Public Relations, Sales Promotion, and Personal Selling Plan focus on providing a great sense of community and customer focus. Public relations activities will focus on ensuring the message of Well Fed is consistent across channels. Sales promotions will create brand awareness, create relationships with new and potential customers, and strengthen loyalty with existing clients. Staff will be hired and trained with a focus on health and building positive relationships with their customers.
Public Relations Plan
Public relations will be accounted for on many fronts. Press releases, newspaper articles, public events, sponsoring efforts, and partnerships will be key to the long-term success of this company. These sources remind the public about the restaurant and the overall benefits to the community.
Press releases will be done for the opening of the original restaurant location and subsequent location launches. Other uses of a press release will also be when solar panels are installed on the restaurant and when additional farms or vendors are added to source local ingredients. When Well Fed hosts an event at the restaurant, this can also be used to notify the public through a press release.
One benefit of press releases is that it can trigger different news sources to pick up the story. For instance, adding solar panels to the restaurant as a source of power could be a great story for the local newspaper the Alibi to pick up. A full article could be written about the benefits to the business and how the community is brought together. This will allow a lot of beneficial information to get to the public in a new way. This will help the company reach new individuals, and increase knowledge for those already aware of the restaurant.
Events can take the form of on-site events, public events, or sponsored events. On-site events would be physically located at the restaurant. For example, healthy cooking classes by a well-renowned chef would be a great event to peak the public’s interest. Another instance would be an on-site meal with guest speakers for key individuals from the Well Fed community and Solar Panel Company. This event could take place immediately following the install of the solar panels. Public events would include music festivals at parks, the yearly Balloon Fiesta, farmers markets, and other community happenings. Well Fed staff would sell pre-packaged meals and give away free samples to the community. As users enjoy a small bite, they will want to come back for more. An example of a sponsored event might be the Kickball for the Kids tournament and the yearly Mudd Volleyball tournament. Well Fed would provide T-shirts and funding to help support good causes within the local community.
Finally, partnerships with local vendors and farmers will be key to the success of the business. Ensuring that the relationships are strong will help establish the right company image. Having a solid relationship with the community will provide word of mouth referrals and promotions coming from other company websites.
Sales Promotion Plan
Promotional techniques will come in the form of coupons, free samples, give-away items, and a loyalty club. This will build customer loyalty and bring new customers into the business. It can also help increase business during off-peak times and provide a stronger sense of community.
Coupons can be offered to the primary and secondary target market segments during the early stages after opening the restaurant. Digital coupons can be scanned in store or printed online and brought in. One great example would be a free appetizer with the purchase of two entrees. This is designed to provoke the new customer to come into the business prior to the expiration date of the coupon. Coupons can also be created for special events or for use during off-peak times.
Food samples will be given away at community events. This would either be a very small bite on a toothpick or a sample in a small cup. This will entice individuals to then purchase a pre-packaged meal right then, or later on visit the restaurant. In both cases it builds revenue and brand image. Giveaways will be company merchandise such as pens, key chains, tote bags, and other low-cost items. These items can be raffled off or handed out to the public. The brand logo would be displayed on all items and could entice new business and build brand loyalty from existing customers.
A loyalty club will be created for frequent visitors. It can be tracked through the Well Fed App or a physically printed out card, depending on the customer’s preference. A customer will earn points based on the number of visits and amount spent in a given month. These points can be used to purchase merchandise, given back to the community for a good cause, or used as a credit towards a meal.
Personal Selling Plan
The personal selling plan for Well Fed begins with the utilization of in-house staff along with a social media manager and events coordinator. The purpose will be to build positive relationships with customers, respond to their questions and concerns, and meet them in the fashion they choose to communicate with the company. Throughout this process, customer loyalty will be built, which will stimulate repeat business and long-term revenue.
In-house staff will help sell food in a variety of ways. The hosts and hostesses will assist with seating tables, answering phones, and help with Well Fed Express orders. Those hired will be polite, courteous, and get to know the customers. If two hosts are needed at a time during peak hours, then that will be accommodated to ensure they are not overworked. Well Fed believes that when the staff is happy, customers are happy.
All staff members including waiters, waitresses, expos, managers, and even cooks will be carefully selected for hire to ensure that customer service and hospitality is at the fore-front. It will also be important to hire staff members that believe in the company’s message. Individuals who are into fitness and eating healthy food in their personal lives will be able to help explain the benefits from their own perspective to their customers. The most outgoing staff members will be utilized at events for selling merchandise, handing out free samples, selling food, and promoting the company. Overall, staff members should focus on building positive relationships with each other and their customers.
A Social Media Manager will be hired to respond to customers via the web. All questions and concerns must be answered within 48 hours, with a target goal of 24 hours or less. Customizing responses to the individual in the way that they have contacted the company will show care and ensure that the customer can be taken care of. This manager can also be utilized to respond customers beyond Facebook. Instagram, Google, Yelp, and other websites and applications can be monitored to ensure that all customer’s issues are resolved. Positive reviews can also be used to build hype and confirm when the company is doing extremely well.
In addition, an Events Coordinator will be needed to organize and promote events. This person will schedule all on and off-site events. They will work with vendors and ensure that enough staffing is present to assist customers quickly. This person will create flyers and work closely with the Social Media Manager to create social media events, including signage. Finally, they should be focused closely on the customer interactions during live events to ensure that the brand reputation and image is being portrayed at all times.
Online and Direct Marketing Plan
The current age group of millennials targeted by Well Fed is individuals 16 to 36 years old (Kruger, Saayman, 2015). According to an article in the Washington Post, 55% of millennials say that convenience is a key factor when buying food (Rosenbloom, 2018). Rosenbloom goes on to state that healthy food, sustainability, the environment, and customization are also important factors to them when buying food. Convenience will be accounted for with the ability to order online, through the app, in store, and over the phone. It is also convenient for those out shopping to simply walk into the restaurant and dine-in. Any order will be able to be customized as requested.
There are several elements to consider ensuring the effectiveness of the company website. Having information displayed in an easy to understand layout with a variety of content is a good starting point. Creating easy to use clickable tabs such as sections about the menu, placing an order, community involvement, mission statement, events, contact information, and frequently asked questions will make it user friendly. Pictures of menu items, videos, and colors will also make the site visually appealing. In addition, having a way for the customer to easily post a question or add a comment will allow the customer to interact with the business and other customers. This helps the business better understand what the customer wants and make any adjustments to improve the customer experience. Finally, the website should be linked to any other websites the company desires the customer to visit such as Instagram, Facebook, or YouTube.
Other media for direct-response marketing includes the use of radio and newspapers. According to a study by the Journal of Vacation Marketing, millennials music preferences include R&B, country, hip hop, and rock (Kruger, Saayman, 2015). Therefore, local radio stations used may include 105.1 for classic hip-hop, 107.9 for country, or 94.1 for rock. The business can also test the response of using newspaper ads in very small quantities to see if the costs justify the results. The Albuquerque Journal and Alibi can displaying the company logo, slogan, phone number, and location. This will raise awareness of the business and it’s purpose in print format. The goal initially is to only do one ad at a time so that the company can properly measure results.
In regards to social media, Facebook is the top social networking site with over 751 million active monthly users (Ho, 2014). Furthermore, not only do half of these users login every day, but also participation in Facebook has a positive effect on brand trust and community identification (Ho, 2014). This explains the importance of having a Social Media Manager to interact quickly and in a meaningful way with the community. Events, picture, posts, videos, messages, and more can be done via the Well Fed Facebook page. Building brand trust will solidify the restaurants role in the community and build a strong company image.
One study done in South Africa by a Department of Marketing found that advertising on Facebook had a favorable influence on intent-to-purchase and purchase for millennials in the area (Duffett, 2014). Another study in Sweden at Lulea University of Technology found that one of the best ways to grab the attention of millennials on Facebook is to post a short funny or captivating video (Arnvaller & Andersson, 2017). This is helpful information because Well Fed can ensure that any advertising videos created are concise and an element of humor or fascination is incorporated. For instance, on the video explained for the slogan “Wellness, one bite at a time,” the person doing yoga saying ‘wellness’ could have a face mask on or be in a very funny and awkward looking yoga pose. The sports can be extreme such as skydiving or mountain biking in beautiful mountains when the words ‘at a time’ display. This can easily be a clip under 30 seconds in length.
Finally, online reviews and word of mouth advertising can bring in new business and build long-term brand reliability. Online review platforms include Yelp, Google, and TripAdvisor. Individuals can post comments and pictures of their experience. A Nielsen survey found that “online customer reviews were the second-most trusted source of brand information (after recommendations from friends and family)” (Kotler et al., 2016). These reviews need to be monitored regularly so that the company can focus on providing a superior product and experience. All negative assessments need to be closely examined for any needed changes and customers may need to be contacted so the situation is remedied. Individuals will tell their friends about the experience and that can influence others decisions to dine at the restaurant. Word of mouth can come from anyone who has eaten at the restaurant, taken food to-go, visited a company event, and more. Overall, the goal is to build positive experiences for the customer in all touch-points. This will improve the brands reputation and create customer loyalty.
Social Responsibility Plan
The social responsibility that the company will be doing includes building a stronger community through partnerships with local vendors, recycling and reducing waste on the environment, and using clean energy solar panels to help power the building. Marketing information will be displayed on the company website, app, social media, Instagram, press releases, and in newspaper articles. Also, on the back of each menu and on the walls of the restaurant will be messaging that explains this as well. Collaborating with farmers and ranchers in the Albuquerque area will help support the community through building and strengthening these business relationships. Giving back by providing free meals on special occasions such as Thanksgiving to the homeless community will also help those in need.
Conclusion
In summary, Well Fed’s message of health, sustainability, and overall wellness should ring clear in any channel that the customer chooses to interact with the business. Marketing communications are primarily targeted at health conscious individuals and millennials. A high-quality product with competitive pricing in a busy location will increase revenue. Strong partnerships will be built within the community with a variety of vendors, farmers, and other businesses. Following this strategic plan while creating positive customer experiences will support the longevity of the company.
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