MKTG 1012 Final Project 1

MKTG 1012 section 9

Wednesday December 2, 2015
Prof. Cindi Amlin
Isaac Ferguson, Nickolas Zoccano, Jackson Williams

MKTG 1012 Final Project 2

SWOT Analysis

Strengths

Financial resources: with her lottery

winnings, tina has suitable capital to kick
start a startup business.
Experience: Tina has years of experience in
managing high end restaurants as well as
marketing experience that can be applied to
her new restaurant
High end menu: the menu will be locally
sourced, fresh, and handmade to the highest
standard
Image: The God Fathers will have a
beautiful, luxurious design and atmosphere
in an attempt to market ourselves as a high
end option.
Marketing Budget: $30,000 budget will
allow for a decent marketing campaign to
penetrate London market, allowing
introduction and growth of the restaurant.

Opportunities
Early Adulthood Demographic:
Median age of London Ontario residents: 40
(As of 2011) with over 37,000 residents aged
45-49 and over 36,000 residents aged 50-54 in
a 2011 census. (Satistics Canada 2012)
Lower End competition: Hyde Park area
consists of a many lower end franchise
restaurants and fast food options such as
Montanas, Boston Pizza, and McDonalds and
Wendys. Entering this location as a higher end
competitor will allow The God Fathers to
stand out from competition.
Italian Population of London: Italy is the 10th
top place of birth of immigrants to London in a
2011 census, and the 6th top non official
language spoken by London immigrants.
(Statistics Canada 2013)
Social Trends: through Tinas research, she
has noted that ethnic food has become popular
in recent years; specifically Italian food
inspired by Tuscany, Liguria and Piedmont
regions.
Sustainability: The God Fathers will follow
trends of locally sourced food and work with
Ontario Farmers for a locally sourced menu

Weaknesses
Unestablished brand: the new restaurant
has no established image in London
High costs: choosing premium ingredients
may lead to lower profit margins
High Price: choosing a price skimming
strategy will alienate budget conscious
customers who will not see value in
premium ingredients from local farms.

Threats
Competition:
350 Boston Pizza locations in Canada; well
established brand close to our planned location
(Boston Pizza n.d.)
Economic:
7.0% employment rate in London (stats
Canada 2015)
Value of Canadian dollar is low; Canadians are
spending less money and may not choose to
dine out
Technological:
Boston Pizza and many other lower cost
competitors offer online ordering for a more
convenient option than dining in.

MKTG 1012 Final Project 3

Competition analysis:
The following is a comparison of three existing Italian restaurants in London Ontario.
Included is an analysis of Bertoldis Trattoria and Abruzzis, two high end individually owned
restaurants, as well as Boston Pizza, a large Canada wide chain, which is our local competition in
the Hyde Park region. Analyzing the unique marketing mixes of these three establishments will
help further plan our own marketing strategy as we enter the extremely competitive restaurant
market of London Ontario.
Product

Price

Bertoldi's Trattoria
Menu features
ingredients from Ontario
farmers wherever
possible as well as flour
imported from Italy
("Bertoldi's Trattoria,"
n.d.)
Pasta sauces made daily

Pizza ranges from 1417 dollars

Pasta: 13.25 19
dollars
("Bertoldi's Trattoria," n.d.)

Abruzzis
Boston Pizza
Rotating
100+ menu
seasonal menu
items ("Boston
of locally
Pizza," n.d.)
sourced and
Gluten free
sustainable
options
food ("Abruzzi
Wide selection
Ristorante,"
of pizza and
n.d.)
pastas, as well
Website clearly
as more typical
lists each of
bar food such
their suppliers,
as burgers,
showing
wings, etc.
confidence in
the quality of
their
ingredients.
Diverse wine
menu
Pizza: $17
$6.99 kids
meals
Pastas:
Pizza: Around
$24-25
$12-30
Wines

Pasta: $10.99range from

$35-50 /
18.49
bottle
("Boston Pizza," n.d.)
("Abruzzi Ristorante,"
n.d.)

MKTG 1012 Final Project 4

Place

650 Richmond St
Downtown London
location

119 King
Street, London

Promotion

Bertoldis Social Club:

free program offers
member only benefits such
as invitations to tasting
events, reservations for
members only, and updates
on new menu items.
("Bertoldi's Trattoria,"
n.d.)

Use social
media to
connect with
customers and
share their
latest menu
offerings
("Abruzzi
Ristorante,"
n.d.)

Over 365
locations in
Canada
("Boston
Pizza," n.d.)
3 locations in
London
My BP
program:
offers in
restaurant
deals as well
as online order
specials,
personalized
online profile
for easier
ordering.
("Boston
Pizza," n.d.)

Customer Segmentation Analysis

Segmentation Bases

Potential Customer Profiles

Profile
Name/Group

Young Family

Lunch Crowd

Health Nut

Student

Geographic

London ON

London ON

London ON

London ON

MKTG 1012 Final Project 5

Demographic

Young couples
with children
High income

Psychographic

Benefits they
seek
(how it would
apply to your
business)

Have the money

to treat
themselves to
better healthier
alternatives

Between ages 30- Between 30-55

65
High income full High Income
time workers

Young
Single

Close access
from place of
work.

Choose healthier
food options and
supports local
restaurants with
the same
philosophy.

Looking for local

restaurants close
to school

Willing to spend
money for more
quality

Interested in
cultural food

Seek local,
Looking for a
healthier options. higher quality
alternative to
Food choices for chain restaurant
the whole family.
Willing to spend
more to get a
trusted brand

Generally low
income

Seeking the new

and best food
around

Close to school
Looking for
healthy local
alternatives

MKTG 1012 Final Project 6

Usage Rate

Light usage.

Medium usage
rate weekly
usage based off
work schedule

Very time
restricted.

Very heavy
usage rate
they need to
eat gluten
free / wheat
free products
exclusively

Light usage
rate based
on income
and school
schedule

Satisfying our possible target markets:

Young Family: If Tina chose Young Family as our target market, we would have to
incorporate a larger kids food selection as well as more group based promotions.
Lunch Crowd: If we focused on Lunch Crowd we would likely consider creating a fullyfledged lunch menu with smaller portions and quick cook times for busy customers.
Health Nut: Focusing on the Health Nut segment, we would really have to focus on our
healthy and local food specials. Incorporating background information on the farms and local
distributors we work with to create the food in the menus would be a good way to show the
customers our farm to table philosophy.
Student: To appeal to the Student crowd more weekly specials and promotions would
help bring in students who are low on money. We could offer social media exclusive deals online
to appeal to a younger demographic who enjoy interacting with their preferred restaurants and
stores online already.

Target market selection

MKTG 1012 Final Project 7

To coincide with the Farm to table philosophy that Tina hopes to achieve with The God
Fathers restaurant, choosing The Health Nut segment is a good way to secure consistent
business as the would return often to enjoy the specialty food that we serve knowing it is fresh
and locally produced. Using Tinas philosophy of local and healthy foods we can gain these
customers as loyal returnees as we are one of the few in the area and London who offer this
special attention to locally produced Italian food. Young families (aged 36-49) who have a
slightly higher income and are also looking for healthy dining options for their family in this Hyde
Park area will be able to enjoy our restaurant for a healthy and delicious option for family meals
and dates.
By maintaining a strict and dedicated focus on high quality food made through a relationship with
the farmers and companies of Ontario, our target market of high conscious individuals and young
parents will easily justify our slight price increase and hopefully become returning customers.
Mission Statement and Objectives
The God Fathers is devoted to delivering a rich and traditional Italian dining experience, through
use of only the finest ingredients sourced from select farms and distributors in Ontario. We spare
no expense in creating the freshest and most delicious meals possible in an intimate and luxurious
setting. With our meticulously crafted food and drink menus, we aim to dazzle and excite and
make every visit to The God Fathers a special occasion.
OurObjectives:
1. Maintaina35%monthlyprofitmargin
2. Enactandmaintainacustomerloyaltyprogramwithatleast5000usersbyDecember
2016
3. Establisha10%marketshareinfinedininginLondonOntariobyDecember2016and
15%byDecember2017.
These Marketing objectives are a modest set of expectations for the next year as The Godfathers
begins establishing itself in the crowded restaurant market of London Ontario. These Goals are

MKTG 1012 Final Project 8

Time specific, measurable and realistic guidelines so that we may monitor our overall profit,
measure the effectiveness of our new customer loyalty program, and set goals to penetrate the
market of fine dining in London over time.
Product
The product we will be offering at our restaurant is Italian Cuisine. Some of the items that will be
on our menu are spaghetti, lasagna, cheese ravioli, fettuccine alfredo, and linguini with clam
sauce. Examples of our specialty dishes are:
Spaghetti and Lasagna - our spaghetti and lasagna will be made with homemade meat sauce that
has been made right in our restaurant. We will use only the freshest ingredients. Our pasta will be
made in our restaurant daily. We will serve generous portions that will satisfy our customers.
Cheese ravioli - we will use fresh ricotta and mozzarella cheese to fill our homemade ravioli.
Fettucine Alfredo - we will use cream mixed with Romano and parmesan cheeses to make the
Alfredo sauce. The fettucine will be made in our restaurant each day so it will be extremely fresh.
Linguine with clam sauce - we will use white wine and clams to make this sauce.
All of our dishes will be made with our specialty spices (garlic, onion, red pepper flakes).
We will serve each table a basket of sliced homemade, warm bread with seasoned dipping oil
before their meal arrives. We want our customers to enjoy this while they are waiting for their
meal. Our customers won't feel like they are waiting too long for their meal if they are eating this
bread before their meal.
We will also serve red and white wine which we will buy in bulk. We will serve a rotating menu of
various VQA wines to showcase the flavors that Ontario wineries have to offer. We will also work
with Ontario craft brewers to serve a small selection of seasonal beers that will pair nicely with
meals. Because our customers have extra disposable income, they won't mind spending extra
money on alcohol with their meal.

MKTG 1012 Final Project 9

PricingStrategy
AfterCarefulconsideration,wehavedecidedtousethestatusquopricingstrategyforThe
GodfathersselectionofFinefoodsandWines.Aftercloselyexaminingthemenusofour
existingcompetitors,wefeelwecancloselycompetewiththeirpriceswhilestilldelivering
excellentqualityproduct.Ourtargetmarket(ages3649)willstatisticallyhaveenough
disposableincometopaythepriceswehopetocharge.Ourcompetitionalreadychargesa
considerableamount,sowereconfidentwecancompeteatacomparablecostandstillmakea
profit.WithalackofcomparablecompetitionintheHydeParkregion,weshouldbeabletoable
toattractcustomerstoTheGodFathersknowingourpricesarecomparabletothecompetition
whiledeliveringasuperiorproduct.

DistributionDecisions
OurrestaurantiscalledTheGodFathersandwillbe
locatedonFanshaweParkroadintheHydePark
RegionofLondonOntario.Thisareaisclosetomany
youngfamiliesanddoesnthavealotofexisting
competition.Twoofthetopemployersinourarea

MKTG 1012 Final Project 10

includeWesternUniversityandUniversityHospital,bothofwhichpaytheirworkersabove
averagewage.Thispotentialdemographiccouldeasilyearnrepeatbusinessforourrestaurant
duringlunchhours.Thenameappealstoourtargetmarketaswehopethatitwillbecome
synonymouswiththehomemade,authentic,qualitycuisinethatItalyisknownfor.
Belowareamockupfloorplanandpotentialdesignofourrestaurant:

MarketingCommunicationsplan:

MKTG 1012 Final Project 11

AgoodmarketingplanisakeycomponentforintroducingTheGodFatherstoLondons
competitiverestaurantindustry.Sinceweareintheintroductorystageoftheproductlifecycle,
weneedtofocusonadvertisingandpublicrelationshipstoincreasecustomerawarenessofour
newrestaurant.ThesetwomethodsareagoodstepasaccordingtotheAIDAmodel,theygain
attentionandinterestmoreeffectivelythanotherpromotionalmethodsthatwillcomelaterinthe
lifespanofthebusiness.Wecouldstartwithamodestlocaladvertisementcampaignthrough
localchannelssuchasRogersTelevisionandthroughprintadvertisementthroughLondonFree
Press.WecouldrentoutbillboardandpublicoutdooradvertisementaroundtheHydePark
regionwellbeforeourarrivalinthearea,creatingawarenessandcuriosityaboutournew
business.AsforPR,softopeningsandtastingscouldbesimplewaystogetpotentialnew
customersthroughthedoorandacquaintedwithouruniqueproductofferings.Therestaurant
couldsponsorandhostwinetastingstoshowcaseourmenuoffineOntariowines,creating
positivepublicityforbothourrestaurantandthesuppliersweplantobuildacloserelationship
with,ontopofintroducingourmarkettothewideselectionofwineswehopetosell.Asfor
SocialMediaandOnlineMarketing,wemaynothavethebudgettocarryoutafullyfledged
Searchengineoptimizationcampaignwithinourbudget,butwewilldefinitelyutilizesocial
mediafortwoway,controlledcommunicationwithcustomers.Twitter,FacebookandInstagram
accountscanbeeasilysetuptocommunicatewithcustomers,postspecialsandnewmenuitems,
aswellasdealwithcustomerconcerninaninstantandpersonalway.Wealsoplantoestablisha
simpleonlinecustomerloyaltyprogramsothatwecanmoreeasilybuildrelationshipswithour
customers.Bycollectingemailaddressesofcustomerswhowishtosignupfortheprogram,we
willofferexclusivebenefitsintheformofdiscountsandcouponsinexchangefortheirrepeat
business.

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References
Abruzzi Ristorante. (n.d.). Retrieved November 29, 2015, from http://abruzzi.ca/
Bertoldi's Trattoria. (n.d.). Retrieved November 29, 2015, from http://www.bertoldis.ca/
Boston Pizza. (n.d.). Retrieved November 29, 2015, from http://bostonpizza.com/en
Lamb, C. (2016). MKTG: Principles of marketing (3rd Canadian ed.). Toronto, Ontario:
Nelson Education.
Statistics Canada. (2012). Focus on Geography Series, 2011 Census. Retrieved December 1,
2015, from https://www12.statcan.gc.ca/census-recensement/2011/as-sa/fogs-spg/Facts-cmaeng.cfm?LANG=Eng&GK=CMA&GC=555
Statistics Canada. (2013). Immigration and Ethno-Cultural Diversity. Retrieved December 1,
2015, from https://www.london.ca/About-London/community-statistics/populationcharacteristics/Documents/4-%20ethnoculturalJune21.pdf