This strategy focuses on supplying fat-free products to the consumer.
It is due to a growing trend in which consumers are now aware of the impact of various goods they drink on their well-being. With the prevalence of cancer, heart disease, and other food-related illnesses, shoppers have become pickier about the goods they buy. However, the move implicitly provides an incentive for potential investors to deliver non-harmful goods to consumers. As a result, this business strategy elaborates on launching grasshopper burgers as a new product that will address these health issues. Apparently, this product will be availed to everyone though the major target group will be the vegetarians as well as the adventurous. To business will be run as a restaurant where marketing and sales promotion will be used to inform customers about grasshopper burger dish, the price, and places where they are found. With the affordable pricing strategy enacted, the projection is expected to flourish within the shortest time possible. It is, therefore, anticipated that locating the hotels in the main towns will be fundamental in accessing the target market.
Table of Contents
Executive summary2
1.0 Business descriptions4
1.1 Mission of the company5
1.2 Business goals5
1.3 Facilitators5
2.0 The industry analysis6
3.0 Marketing plan7
3.1 Target market8
3.2 Sales and promotion strategies9
3.3 Pricing Strategies10
3.4 Competition Analysis10
4.0 Operational Plan10
5.0 Development Plan11
6.0 Financial Plan12
7.0 Conclusion13
8.0
References
151.0 Business descriptionsThe US tourism and hospitality industry have currently experienced various significant changes in the range of products offered. These changes have been spurred by the variable consumer needs and preferences. Additionally, health issues also play a vital role in determining the kind of products demanded by customers. This business will, therefore, customize in producing grasshopper burger across the United States. The grasshopper burger is a unique product that will be provided at an affordable price to customers who are restricted by their health conditions from consuming beef and dairy product. This investment will be carried out under the name “Plan A Restaurant.” It will be the first hotel that will be destined to offer the best quality products and services to vegetarians as well as adventurous across the United States. The business will be registered as a private limited company. The owners of the company will delegate the management of the business to professionals who have worked in the hotel and hospitality industry for long. The progress will be periodically evaluated based on the performance and realization of the objectives formulated each and every time (Bradley, 2010). With the increased awareness by consumers about the health problems associated with excessive consumption of dairy and other products with lots of fats, this business is expected to receive a high acceptance by customers within the shortest time possible. Besides, the company will be located in the New York City. The choice for this City is because of a vast number of populations of about 8.5 million who will serve as the potential customers. The business is expected to expand to new towns and cities that are densely populated as well as near tourist attraction centers where it is evident that visitors are more adventurous and will serve as the target customers for the new product.1.1 Mission of the companyBeing a new venture that has never existed in the targeted geographical regions, the company will operate with the mission of providing excellent grasshopper bugler with the best taste ever to the customers. Apparently, the provision of quality products and services under this mission creates a high possibility of giving customers a holistic experience.1.2 Business goalsThe primary purpose that will ultimately depend on the mission statement will be to grow and expand further. Growth and expansion significantly rely on the effectiveness of strategic plans enacted by the management. The smooth monitoring and evaluation of the firm plans will be a yardstick in propelling the company towards the achievement of the growth objective.1.3 FacilitatorsThis new venture will derive its success from four important factors. These factors will serve as the pillars of success, and they include the following:i. Hire of the qualified and experienced employees. These staff will play a primary role in formulating efficient operational strategies hinged to overcome the hostile external business imperatives as well as align the organization to its business objectives. Also, the experience in the hospitality and restaurant sector will offer a great opportunity in understanding most of the trends that influence the industry.ii. Secondly, the location of the business in strategic points will provide an opportunity for access to a large pool of customers. As earlier noted, the company will be located in the main towns and tourist attractions areas to enhance the access to a large market.iii. The provision of a unique product. Indeed, the grasshopper burger is a product that has lacked in the market for an extended period. The uniqueness and merits associated with consumption of the product. The unique nature, therefore, will significantly impact on the demand of the grasshopper burger menu.iv. The affordability of the product will also be fundamental in enhancing acceptance of the product among the customers. With the consideration of the threat of stiff competition that will be posed by competitors, the pricing strategy will significantly aid in enticing customers to buy the natural product.2.0 The industry analysisCurrently, the pace at which the hospitality, restaurant and hotel industry is changing is very high. As a result, new and better opportunities are created allowing the entrance of new players in the industry. The level of competition and rivalry among the players is heightened where each player is epitomizing on the possible measures just to propel the company towards success. On the other hand, technological enhancement is the major aspect that most enterprises are relying on to ensure their operational and strategic plans are successfully implemented. However, it is not only businesses that have been influenced by the technological breakthrough. Customers purchasing behavior have significantly been affected by the technology. For instance, the users are relying on technology to get more information about product quality, usefulness, and negative effects associated with excessive consumption of the product (Reid & David, 2009). Further, the customers use the technology to access the information regarding product availability, price comparison, and more. Therefore, the rate at which the stakeholders interact in the industry has changed hence creating the need for the producers to employ best practices intended to ensure the customers are provided with the best products and services ever.Similarly, the competitors are also relying on the current developments in the industry to position their companies better. To avert the hostility experienced in this industry, some brilliant entrepreneurs have uncovered the need for producing unique products which have considered the problems caused by the available products and further the challenge of substitutes and stiff competition in the market. This error is characterized by customers being sensitive to health matters. With most of the scientific research conducted that discourages over-consumption of meat products and products with more fats contents, it is apparent that emerging companies that will offer a unique product with reduced fat content can gain a large market share. The United States Market is large enough to support new investments opportunities created. The ever increasing population in urban centers is one of the primary reasons for extrapolating that the market for a new product is and will always be there provided appropriate marketing and sales promotion strategies are embraced to influence the target market. With most customers possessing sound information regarding the products they need, the industry, therefore, restricts producers from adopting unscrupulous measures to entice customers (Reid & David, 2009). Instead, the embrasure of quality products, as well as excellent services at affordable price, is the primary strategies that significantly assist restaurants and hotels maintain, attract and further retain clients.3.0 Marketing planThe business being new will require a great commitment by the management. Besides the development process, marketing is a fundamental process that will determine the outcome of the investment. It will depend on the media planning and the effectiveness of the marketing team in formulating unique marketing strategies (Cravens, 2009). The success will greatly depend on both the ability to target the right market as well as the marketing and sales promotion approaches. Grasshopper burger is a unique product that seems new to most of the prospective customers. Therefore, it is certain that formulating appropriate marketing plans will be a significant boost in meeting the growth and expansion objective (Cohen, 2005). Also, understanding the consumer purchasing behavior is essential in determining the marketing plans for this exceptional product. 3.1 Target marketBesides making the assumption that the grasshopper burger to be consumed by the entire population, it is imperative for the target market to be segmented further into groups to allow the execution of smooth marketing programs (Sunny & Matthew, 2003). However, the primary market for the product will include the vegetarians and the adventurers. Naturally, it is not simple to identify these particular groups of people from the population. The segmentation based on the attributes is one of the challenging target markets one can encounter. Having no otherwise, it is the marketing and sales promotion approaches that will save in such dilemmatic situation. Most importantly, grasshopper burger will be a product produced from the insects which imply it will not constitute dairy substances. The vegetarians are customers who are allergic to meet products perhaps because of health matters or naturally born allergic. The adventurous on the other hand constitutes individuals who prefer testing any new product introduced in the market. The quality and delicious taste of the product will create addictive aspect where customers who taste will continue coming back again and again. Moreover, there will be a media message to inform the general population also to buy the grasshopper burger because it is healthy for everybody.3.2 Sales and promotion strategiesSince the grasshopper burger is still new but constitutes rich nutritional elements, appropriate sales and promotional strategies will be adopted (Hooley & Saunders, 2004). The most important message the target markets should be made to understand should read “Fat-free products with rich nutritional elements.” Being an example, more conspicuous words should be drafted tap the attention of consumers. Therefore, marketing mix and promotion mix will be utilized to create the awareness among the target population regarding the availability of the product. Most particularly, advertising, free sample, personal selling and discount selling will be used. Firstly, there will be a use of both traditional and modern forms of marketing channels to advertise the product and company in general. They include the Television, Radio, Social media, the Internet, Facebook, and more. The combination of different forms of advertising is meant to create integrated communication marketing to boost those channels that fail to result in the desired impact.Currently, most target population use the social media like Facebook. A page about the grasshopper burger will be created where the complete information about this product, attributes, the company information, and places where the consumers can get it. Also, the Television and radio will be used because of its accessibility to the target market. Furthermore, the sales person will be hired to move on the ground to offer personally meet the customers and share their experience, gather resourceful information and others (Hooley & Saunders, 2004). For sure, the appropriate application of these sales and marketing strategies can greatly assist in creating the desired impression and finally penetrate new market regions.3.3 Pricing StrategiesNotably, grasshopper burger will face stiff competition from dairy products. It will thus call for the product to be offered to customers at an affordable price to enhance faster penetration of the product in the market. This low pricing strategy will provide an opportunity for most customers to taste the product. Because most of the buyers in the market are price sensitive, offering the quality products and services to clients who dine in our restaurants will accord the business a comparative advantage against meat products which are perceived to have a high concentration of fats contents that cause heart diseases. Most of the profits will, therefore, be resulted from the large volume of sales.3.4 Competition AnalysisNaturally, most markets around the globe are concentrated with different products. With the increased pace at which globalization has taken roots in both developed and developing nations, most markets have received new players and products for the benefit of the consumers. It is therefore anticipatable that the grasshopper burger will face stiff competition from the daily products. Also, other restaurants operating in the major towns in which the business will locate its premises will pose a great market thread. However, the effective sales and marketing strategies, low pricing strategy, strategic locations and others put in place will be the key enhancers of the business success (Cohen, 2005).4.0 Operational PlanMeanwhile, the management will rent the first building in New York City. The primary reason for locating the first restaurant at the New York City is to access the ready market available due to densely population. The headquarters of the restaurant will be located at this particular point. Also, more branches will be opened in the main cities and tourist attractions areas. The operations are expected to immediately commence three weeks from the approval date by the sponsors or partners. Notably, the company will rent most of the buildings because the available funds are insufficient to facilitate the construction their structures. The business will purchase modern equipment and other necessities required for smooth execution of restaurant business. Also, the company will employ talented graduates from the universities and experienced individuals who had gained enough experience working in hotels and restaurant (Yamakawa et al., 2008). The grasshopper burger will be the unique product offered alongside other meals that are not the area of focus in this plan. The business will operate daily from 5.00 am to 8.00pm daily including the holidays. The awareness about the existence of the product will be created through sales and marketing that will be immensely covered in the first month. Market evaluation will be conducted monthly to compare and contrast the performance with the projections to timely fix the deviation. Further, in the beginning, the operation costs will be provided by the owners, and as time goes by, it is anticipated that the returns from the business will be sufficient to finance the daily operation programs (Bradley, 2010). 5.0 Development PlanThe company will be expected to grow and expand in stages. Usually, at the initial stage, it is anticipated the management aims to recoup some of the initial investment (Christensen and Raynor, 2013). Apparently, it will be similar to this “plan A restaurant” where the grasshopper burger is the main dish. It is however projected that the business will be established in the major cities as follows:Order in location pointsCity1New York City2Los Angeles, CA3Chicago, IL4Houston, TX5Philadelphia, PA6Phoenix, AZ7San Antonio, TX8San Diego, CA9Dallas, TX10San Jose, CAThe establishment is, however, expected to take place in the first two years. Successful entrance into these cities will be a foresight of the bright future of this company. This strategy of occupying major cities will offer a good ground for the access to the target market. Additionally, the initial capital will be provided by the owners of the business. Afterward, the business will use loans from financial institutions and borrow from friends to rent company premises in the top ten major cities in the United States. The evaluation of the progress will be expected to be conducted monthly to align its strategies with the company’s objectives (Cravens, 2009).6.0 Financial PlanThe initial capital will be contributed by partners and then register the enterprise as a private limited company. These funds will be used to primarily meet the operational expenses as well as the acquisition of different facilities used to prepare, preserve and serve the dish and customers respectively. Also, it will be used to acquire the grasshoppers from one of the firms that breed them. Some of the operational expenses include but not restricted to payment of salaries and wages, purchasing of inputs, marketing, and sales promotion, and others. The initial cost for the start of the venture is however expected to $100,000. At the developmental stages, about $150,000 will be required to start -up the investment in a new City. From this investment, the venture is expected to generate Monthly revenue of $250,000 and the fixed plus variable cost is projected to amount to $100,000. Additionally, it is anticipated the sales will increase annually by 30% where the increase is associated with the effectiveness of the sales, marketing and operational strategies formulated (Stanley & Eric, 2000). It thus means that the net profit will proportionately increase according to the sales growth and the same will apply to the expenses. The returns from the investment will be used to top up the borrowings from financial institutions to finance the opening of new centers where the grasshopper burger will be sold (Steven, 2009).7.0 ConclusionSumming up, this venture is expected to flourish well due to the merits associated to consumption of this product. Also, actualizing these projections will significantly result to stellar performance due to the fact the number of vegetarians in the US market and globally. It is thus apparent that the grasshopper burger will be the lasting solution to those restricted from consuming dairy products as well as their allergic reactions resulted in the consumption of dairy products. Also, marketing and sales promotion will be instrumental in assisting the business to inform, attract and retain a large pool of customers. They are also applied to create the IMC to enhance the reach of the information to all the targeted market. In the first two years, the business will prioritize establishing more branches to increase the opportunity to access more customers. Evidently, the venture is expected to succeed despite the stiff competition from the substitute products made from dairy products.8.0 ReferencesBradley, Nigel (2010). Marketing Research Tools and Techniques: Oxford University Press, Oxford, p.90-120Cravens, D. W. (2009). Strategic marketing: 9th ed. Boston: McGraw-Hill, pp. 784 Cohen, A. W. (2005). The Marketing Plan: John Wiley & Sons, Inc. New Jersey-USAChristensen, C. and Raynor, M. (2013). The Innovator’s Solution: Creating and sustaining successful growth. Harvard Business School Press: Boston, Mass. Hooley, G. & Saunders, A. (2004) Marketing strategy and competitive positioning.3rd ed. New York: Prentice Hall, Pp. 622 Reid, R & David, C. (2009). Hospitality Marketing Management: John Wiley &Sons, p.127-139Steven, F. (2009). Guide to writing a killer marketing plan: Network Solutions LLC. Retrieved on 24th Feb, 2017 from http://nsbdc.org/wp-content/uploads/2010/11/Guide_to_Writing_a_Killer_Marketing_Plan.pdfSunny, C., & Matthew, H. (2003) Marketing research for managers: The Marketing Series. Chartered Institute of Marketing, Butterworth-Heinemann p. 19Stanley, F. S. & Eric, M. O. (2000) Strategy Type and Performance: The Influence of Sales Force Management; Strategic Management Journal: London UK.Yamakawa, Y., Peng, M. W., & Deeds, D. L. (2008). What drives new ventures to internationalize from emerging to developed economies? Entrepreneurship: Theory & Practice, 32 (1), 59-82
