Kings Café Marketing Strategy

Kings Café Marketing Strategy

Name

Institution of Affiliation

 

Table of Contents

 

 

EXECUTIVE SUMMARY

The Kings Café is a full- service café that features a full menu for beverages and food products from all cultures influenced by the different traditions. The café haves one section with a single partition and features, newspapers, magazines and five plasma screens that mainly show news and sports.

I and my friend Ravi own and operate the Kings Café with the assistance of a manager and departmental supervisors. The business has been in operation for over ten years, a period through which, it has established itself in the market and created a competitive advantage. The good service provided by the staff and the good end products have earned the business several tenders to provide various offices with lunch.

The Kings Café allows customers to eat in comfort and sample their traditional meals based upon time honoring recipes from a facility containing enough space for eat-in and take-away currently having 50 spacing for eating in. The Kings Cafe’s aim is simple; it is to provide the world’s best café experience with the highest quality foods drinks and customer service as well as great value of one’s money. The marketing strategy focuses on increasing the profits by increasing the sales.

 

COMPANY DESCRIPTION

The Kings Café is a partnership between two friends, Ravi and I, whom we have been business partners for a period of ten years. The café provides breakfast, lunch and dinner to the customers and is managed by a hotel manager who is in charge of the supervisors. Kings Café is a fifty sitter that provides the customers with breakfast, lunch, as well as dinner. It specializes in all manner of foods from various countries thanks to the work of the able staff that work tirelessly to ensure customer satisfaction. The business has been in operation for over ten years, a period through which, it has established itself in the market and created a competitive advantage. The good service provided by the staff and the good end products have earned the business several tenders to provide various offices with lunch.

STRATEGIC FOCUS AND PLAN

Mission/Vision Statements

Mission statement

The Kings Café mission is to provide the world’s best café experience with the highest quality foods drinks and customer service as well as great value of one’s money.

Vision statement

Kings Café’s vision is to provide a unique food experience through an intimate, professional and culture oriented atmosphere to all its customers.

Goals

In order to ensure that the business remains in operation in future, some goals have been set that keeps track of the progress. The objectives of the café are:

  1. Increase the number of customers by 30% in the next three months. This is based on the fact that the business has been having around 1700 customers per week. This means that the business will increase the number of customers to 2210 within a period of three months.
  2. Create a competitive advantage over the neighboring cafés in terms of service delivery. This will be measured if there is an increase in the number of customers visiting the restaurant.
  3. Increase in profit by having customers buy the foods at a faster rate. This concept can be measured with the amount of profit that the company earns from now on compared to the profit that the company was earning before the marketing plan.

Core Competency and Sustainable Competitive Advantage

During the ten years of operation, Kings Café has been able to monitor all the tastes and preferences possessed by its customers. In addition, the staff have been able to adapt to the time schedules for their customers. Operating in a cultural diverse environment, the café’s major competitive advantage lies on the fact the possession of staff who can be able to prepare different cultural food perfectly (Boldt, 1989).

SITUATION ANALYSIS

SWOT analysis

The SWOT analysis captures on the key strengths and weaknesses of the Kings Café business, and also outlines the opportunities and threats that may be facing the business.

Strengths

  • Highly qualified staff from the diverse cultural backgrounds who are skilled at beverages and food preparation.
  • The café is strategically located near offices making it possible to supply some of the offices with lunch and some workers being able to come for lunch on time.
  • The café enjoys a high degree of customer loyalty mainly during the lunch hour from the large number of working customers.
  • Beverages and food offered is of high quality than the one offered by the competitors at a high speed.

Weaknesses

  • Kings Café has a limited budget that can be used for developing brand awareness.
  • The café has a limited capacity and space to serve large number of customers during the peak hours and some of the customers are forced to move to other cafes due to lack of sitting spaces.
  • There is a relatively high cost of sales which is associated with the choice to offer a fair trade and diverse cultural foods and drinks.

Opportunities

  • There exist a strong market potential as a significant section of the café’s target market do not visit on a daily basis.
  • Kings café has the ability to expand and franchise in order to accommodate more customers.
  • Extension of business hours to cater for the customers who work at night and the early risers.
  • Kings café can also venture in corporate catering during ceremonies and also apply food supply tenders in more companies and institutions.

Threats

  • High level of competition from the local food suppliers and cafes.
  • There are potential shifts in population in case the streets or buildings are redeveloped.
  • Uncertainties in the region food supplies.

INDUSTRY ANALYSIS

The food industry in the area is well developed with each food provider trying to outdo the other. There exist a number of cafes and even food hawking individuals who take the food to the people who work in the informal sectors and places of work (Mullin, 2006).

Competitor Analysis

Due to the large number of cafes, hotels and individuals aiming to reach the same customers, the Kings Café working environment is highly competitive. Each business tries to outdo the other in terms of speed of service, quality of food, diversity of food and the prices (Boldt, 1989). With the mushrooming of other food providers who are ready to take the food to the places of work, the level of competition is very high. Business that thrive are the ones that are able to acquire and retain their customers. Some of the competitors in the industry are Rintos Café, Ambana café, Bahar café and Exotic café. The chart below shows the market share for the competitors.

Figure 1: Competitor market share

Customer Analysis

The company does not have specific target clients, as most of the customers who visit the restaurant are diverse in terms of age. However, lunch is mainly cooked for the working class. Most of the people who visit the café come from their jobs, which show that lunch is mainly for a largely diverse background. Most of the customers who visit the café are office workers, students, drivers, others.

Customer Analysis

Name Average number per week Percentage
Office workers 984 57.9%
Students 397 22.8%
Drivers 204 12%
Others 115 6.7%

 

Table 1: Consumer Analysis

MARKET-PRODUCT FOCUS

Marketing and Product Objectives

It is paramount to note that there is a lot of analysis that is required before making a decision on the next move that the business should take. This requires a careful planning to consider where the company or business wants to be in the near future. The following are the objectives for the business.

  1. Increase the number of customers by 30% in the next three months. This is based on the fact that the business has been having around 1700 customers per week. This means that the business will increase the number of customers to 2210 within a period of three months.
  2. Create a competitive advantage over the neighboring cafés in terms of service delivery. This will be measured if there is an increase in the number of customers visiting the restaurant.
  3. Increase in profit by having customers buy the foods at a faster rate. This concept can be measured with the amount of profit that the company earns from now on compared to the profit that the company was earning before the marketing plan.

Target Markets

Kings café targets to reach more customers from the working population during lunchtime. Most of the customers take their food within the café. Hence the sitting spaces have to be enough. Regular commuters are also a target as they undertake their chores within the town. Kings Café also seeks to acquire more tenders to supply not only food during lunch hour but also tea in the offices and other places of work like construction sites.

Points of Difference

Kings Café stands out from the competitors on many scenarios. First, the café has been able to brand most of its beverages like coffee and tea by liaising with roasting houses who supply it with high quality products. As a result, their process also have a significant difference from the one offered in other cafés. Second, the café possesses a large number of staff who are from different cultural backgrounds. Thus, they are able to gain the confidence of their customers on the quality of the indigenous food products. Finally, Kings Café has large and strategically placed television sets that allow their customer to catch up on the news as they eat and charge their phones through the large number of charging ports.

Positioning

Kings Café is a competitively priced, gourmet food and beverage supplier. The customers always appreciate their high quality products and recognize the uniqueness and value of the offers.

  • Product and price: There is provision of high quality beverages, pastries for breakfast and main course dishes during lunch and dinner. Prices are competitive despite being slightly higher than their competitors in order to signify the high quality.
  • Service: There is a consistent friendly and fast service provided by experienced and skilled staff which is a key differentiator in the food industry.
  • Ethics: Kings Café uses fair trade food ingredients that are always fresh and of high quality. The business always tries to use environmentally friendly and recyclable packaging.

 

MARKETING PROGRAM

Product Strategy

Ravi and I created the name “Kings Café” because we wanted the café to be a source of high quality food products that will be attract all the culturally diverse customers. Kings Café has a very unique logo that bears the name of the company and some fancy food products that are offered. The logo is placed on all the menus, mugs, plates and all staff aprons. It is possible for a person to know a little about the kind of services that are offered just by having a glance on the logo design (Cant & Machado, 2008).

Kings Café offers two major products: its beverages and its food. The café is the only unique place where different specialty drinks are offered in the area. Raging from coffee, tea, milk, hot chocolate and juices. Kings Café has its menu separated on the list of the items offered on breakfast and the dishes for lunch and dinner. Food products are very diverse because of the different cultures.

Price Strategy

The prices of Kings Café are competitive but slightly higher than the ones offered by their competitors signifying the high quality of foods offered. Since the main goal of the café is to increase the number of sale and also the profits, the prices favorable to most of their target customers. On the other hand, they enjoy high quality products and services.

Breakeven Analysis

The breakeven point for Kings Café is determined by the ability to pay all the bills that include rent, employees, taxes, ingredients that are taken on credit, utility bills and other miscellaneous expenses (Boldt, 1989). For a café, the breakeven point is acquired by multiplying the number of customers with the average gross margin sale. The answer gives out the cost of doing the business. Numbers to be used for the calculation are generated from the cash register and income statements that show if Kings Café is able to settle all its bills.

Figure 2: Break-even point for Kings Café

Promotion Strategy

Improving the Kings Café promotion is crucial to the achievement of the new goal. Due to the fact that the company reserves very little amount of money for advertising, only a limited number of people are aware of the existence of the café. Some of the ways of promotion that may be used to reach more people in the small town include offering drinking and food specials and samples the prospective customers, developing a website and use of social media sites. In addition, new menus and posters can be designed and put on strategic positions within the café’s locality (Mullin, 2006). The posters should also be posted on the website and social media pages.

Place (Distribution) Strategy

The current distribution at Kings Café is very limited. Except to the areas where the café has tenders, the only way for customers to acquire food or drinks is to physically go to the café. In addition, the café’s physical location is on the back street which make it inaccessible by some people. The new strategy that is to be used for distribution is to get the food to the working locations of the customers. Having food is crucial but convenience and time are if high importance to the customers. There are a high number of small business in the town and the owners cannot close tem during the lunch hour to go and buy food from the café. Consequently, Kings Café will be taking the food to their locations using disposable wrappers and utensils. On rare occasions, Kings Café will have to make food deliveries to the local business premises except when large orders are made (Boldt, 1989).

FINANCIAL DATA AND PROJECTIONS

The following sections state the Kings Café financial plan and data.

Important assumptions

  • All meal prices fall in the $ 8.00 -$15.00 range.
  • Average price for lunch is $8.79.
  • Average price for dinner is $13.74.
  • The dining room has a sitting capacity of fifty people at a time.
  • There are 20 employees.
  • Annual inflation rate of 3%.
  • Annual revenue increase of 5%.
  • The tenders to supply food during lunch time will have a 1% increase.

Past Sales Revenues

Kings Café has been in operation for the last 10 years. However the past sales revenue will be shown for the past five years.

Year 6 Year 7 Year 8 Year 9 Year 10
Total sales/revenues $ 876,353 $895,245 $856,436 $968,132 $1,037,557
Total profit $32,432 $54,456 53,345 $77,678 $83,589

Table 2: Kings Café past sales

Five-Year Projections

The table below shows the projected cash flow in Kings Café.

Cash flow

Year 1 Year 2 Year 3 Year 4 Year 5
Cash received
From operations $148,100 $40,456 $22,456 $34,643 $20,345
Cash sales $1,345,456 $1,156,678 $1,267,432 $1,145,567 $1,294,577
Total cash received $1,493,556 $1,197,134 $1,289,888 $1,180,210 $1,314,922
Expenditures
From operations $578,432 $434,677 $512,789 $672,352 $452,087
Cash spent $756,567 $523,567 $456,898 $467,787 $543,913
Loan repayment $35,567 $35,567 $35,567 $35,567 $35,567
Total expenditure $1,370,566 $1,156,169 $1,240943 $1,141,764 $1,258,277
Profit $22,990 $40,965 $48,945 $38,476 $56,675

Table 3: Kings Café sales forecast

ORGANIZATIONAL STRUCTURE

This business is a partnership between two friends, Ravi and I, whom we have been business partners for a long time. In terms of management, we have appointed a manager who manages all the activities in the business and reports to us. Joseph, the manager has delegated some of the duties to supervisors who head each department in order to ensure that there is an effective running of the business. As owners, we have equal shares, which mean that we have equal say in matters pertaining to the organization. Consequently, we both share profits equally.

IMPLEMENTATION

The strategy for Kings Café is expected to succeend by giving the customrs an excellent combination of interesting food substances in an environment that is appealing. As the owners of the company, we will focus on ensuring and maintaining that the food and beverages are of high quality and it establishes a close relation with the customer’s cultural affiliation. In addition, our major focus will be to cultivate on increasing the awareness of customers in the locality. All the programs and tactics of the company will be geared to achieve the marketing goals keeping our standards as high as possible (Cant & Machado, 2008).

In the long run, we will create an enetertaining and appealing environment which will be possessing unbeatable quality at affordable but exceptional prices. Kings Café will be an friendly and exciting restaurant and at the end of the implementation process it will be the sole talk of the town. Consequently, excecution of the marketing strategy concepts is the most critical element of our plan.

EVALUATION AND CONTROL

After the implementation of the marketing strategy, the whole process will be evaluated in relation to the set objectives. The role of evaluation will be on the company manage who will ensure that all the activities go as planned and that customer satisfaction is ensured to the maximum. However, we as the owners will have the role of controlling the process after analyzing the output during and after implementation.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

References

Boldt, J. (1989). Organizational strategy and marketing evaluation for the golden gate brewery and cafe. Berkeley: University of California.

Cant, M. & Machado, R. (2008). Marketing success stories. Cape Town: Oxford University Press Southern Africa.

Mullin, R. (2006). Creating a marketing strategy [marketing development]. Engineering Management,16(6), 40-41. http://dx.doi.org/10.1049/em:20060609

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