Tinas Restaurant

MKTG 1012-13
November 27th, 2016
Mark Navackas
By:
Frank Skerlj
Alcides Molina
Kris Beer
Alex Sloot

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Table of Contents
1. Environmental Analysis
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2.

3.

4.

5.

6.

-SWOT Analysis
Page 4
-Competitive Analysis
Page 7
-Customer Segmentation Analysis
Page 10
-Target Market Strategy
12
Business Plans
-Mission Statement
13
-Objectives
Page 13
Product
-Name/Brand
14
-Product Offering
Page 14
-Menu
15
Place
-Location
21
-Floor Plan
Page 22
-Suppliers
22
-Distribution
Page 24
Pricing
-Pricing Strategy
Page 24
Promotion
-Discounts
Page 25
-Social Media
25

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-Newspaper Ad
26
-Radio Ad
26
-Grand Opening Flyer
Page 27
-Website
28
-Summary of Marketing Plan
Page 28
7. Works Cited
-Works Cited Page
Page 29

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Page

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Environmental Analysis
SWOT Analysis
Internal
Strengths
Starting capitol
-Tina has $286,000 cash to start her business. With careful budgeting and
leasing instead of buying property, Tina can open her new business while
incurring a minimal amount of debt.
Experience
-Tina has a lot of experience from managing different restaurants and
growing up with parents in the food industry. This will help her make more
informed decisions with her restaurant.
Education
-Tina went to school and got a two-year marketing diploma, giving her
knowledge in promoting, pricing, placing, and developing her product or
service.

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Sole proprietor
-Since Tina will own 100% of her business, she is able to implement any
ideas she has without having to gain the approval of partners of investors.
Creation of a new brand
-Since Tina is just starting her very own brand instead of franchising, she has
the liberty of creating her brand specifically for her target market through
the use of good marketing mixes.
Weaknesses
Training
-As a new restaurant Tina must not only hire all new employees, but train
them adequately enough to provide good service to customers. After
training, Tina is dependent on those employees to satisfy the customers
needs and wants. Since Tinas restaurant is a very high end restaurant, the
customers will have high expectations for the overall experience.

Unconfirmed suppliers
-Tina must create relationships with and rely on suppliers she may not have
dealt with in the past. She must rely on timely service, quality products, and
good prices based on an external information search due to a lack of
purchasing experience with these suppliers.
Employee wages
-Constantly changing employee expectations with regards to wages has
employees constantly wanting raises, bonuses etc.
Ladder of Authority
-It is sometimes difficult to define and enforce a very clear chain of
command. There must be clear superiors for each individual, starting from
employees all the way to the top.
Uncertainty

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-With Tinas parents restaurant going under with the falling of the economy,
Tina may feel a measure of worry and unrest. These feelings can affect Tinas
decisions, and lead her to be too reserved and not take necessary risks.
External
Opportunities
Locally owned
-Since Tina is targeting the local wealthy consumers, having a locally owned
business and purchasing local products can prove to be an advantage over
competitors as people like to support local business.
Location
-The Masonville area has a large population including a very high average
income, a large number of families and the Masonville mall which attracts
people from all over London.
Additional Funding
-Since Tina is a new business, and is starting in her hometown she may apply
for additional government funding.

New food trends

-In recent years, people have become more and more aware of the effects
food has on health. This is causing a drastic increase in people concerned
with the quality of food in restaurants, which Tina will capitalize on. Through
an effective marketing strategy, we will make it clear that this restaurant
offers only the highest quality and healthiest options.
Expansions in Masonville
-Recently, construction workers have been developing new infrastructure
around Masonville as well as expanding the Masonville mall. This will attract
more new potential customers to the area for Tina to target.
Large businesses in Masonville

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-The London Health Sciences Centre, Western University, and the Schulich
School of Medicine and Dentistry are all located in the North end of London
(near Masonville) and have a combined total of over 10,000 employees
looking for lunch options which Tina can target as a way of significantly
offsetting costs and expenses.
Threats
Expansion of Masonville Mall
-With the expansion of the Masonville mall, a new The Keg restaurant will be
added. In order to combat this, Tinas Restaurant will have to set itself apart
by offering superior and slightly differed services.
Unestablished
-Tinas restaurant, being new, has not yet developed a reputation in the area.
Established competitors already have returning customers and have
developed a reputation with people in the area. Even The Keg, being a
franchise, carries an idea of excellence and is very well known. Tina will have
to offer specials and extra services in the beginning to attract customers
away from competitors.

Vulnerable to Competition
-When competing against established businesses in a new industry, Tina will
be very vulnerable to strategic moves of the competition. Due to her lack of
capital it would be difficult to respond to these situations.
Pricing
-As a new business, Tina is incurring a lot of extra expenses that she must
account for in her initial pricing. The challenge is trying to make up these
costs while still offering competitive value. She must select and implement
an effective pricing strategy.
Legal
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-When starting a new business Tina must obtain all the necessary licensing
such as a liquor license etc. There over 40 permits in total that Tina must
obtain before opening her restaurant.
Competitive Analysis
The Keg
Product
The Keg specializes in different kinds of steaks but also sells a variety of
other dinner items such as fish, ribs, chicken etc. They have appetizers,
desserts, a separate lunch menu, a gluten-free menu, bar food, and a kids
menu. In addition to their restaurants they also sell certain items in retail
stores like burgers, dressings and sauces. The Keg is a brand that represents
quality products and quality service. It is a fine-dining experience.
Place
The Keg is located all across Canada and the United States. Since it is a
franchise, individuals apply to have one built in a location they see fit. They
are most commonly found in areas with dense populations and high income
households. They also offer retail products, which can be found in grocery
stores. They purchase their foods from suppliers and then prepare in-house
immediately before serving.

Price
The Keg appears to use value-based pricing tactics. A high price is charged
for their foods and it is accepted because of their high-end service and highquality products. As a result of their high prices, they target the wealthy and
those looking for a fine-dining experience. The Keg is the most expensive
competitor, and they appear to be using a price skimming pricing strategy.
Promotion

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The Keg has established itself as a household name. Its promotion strategies
have been cut down and now include minimal advertising with commercials,
ads and promotions. As a franchise they are very focused on customer
satisfaction and take drastic steps to rectify any issues experienced by
customers.
Milestones
Product
Milestones is similar to The Keg in the products they offer. Milestones is a bar
and grill that offers the basic foods at increased quality and price. They steer
away from luxurious selection and focus on providing a large variety such as
pasta dishes, meats, seafood etc. They offer a large variety of different
menus including lunch, brunch, date night, Monday night girls night and bar
menu.
Place
Milestones, like The Keg, is a franchise. Potential franchisees apply to open a
Milestones restaurant. Milestones are most commonly found in high traffic
areas like shopping malls, near movie theatres etc. Milestones is found
across Alberta, British Columbia, and Ontario. Their foods are transported to
the restaurants and prepared in house as the food is ordered.
Price
Milestones is slightly less expensive than its competitors such as The Keg
and Tony Romas since it offers more average food options, but still focuses
on the experience for the customer. Milestones looks to be using a status quo
pricing strategy.

Promotion
Despite Milestones becoming more of a household name, it is not quite at
the point of slowing its promotion. They still use a variety of advertising in
commercials, signs and billboards, and discount promotions. Milestones also
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puts great emphasis on customer service and customer satisfaction through

exceptional service.
Tony Romas
Product
Tony Romas Steakhouse specializes in steaks and ribs, while also offering
the basics such as pastas, seafood, chicken, etc. They have appetizers,
desserts and a good drink menu. They offer sandwiches and burgers to
satisfy lunch needs, as well as a focus on the service provided in the dining
experience. Tony Romas carries an image of high-quality service and highend foods.
Place
Being a franchise, like the previous two competitors, Tony Romas is found in
a variety of places. Typically, in high traffic areas near main intersections,
malls etc. Tony Romas has restaurants in over 27 different countries, making
it more difficult to focus on specific segments.
Price
The pricing at Tony Romas is very similar to The Keg. They offer very high
quality foods and great service, and customers pay for it. They do manage to
keep competitive prices with their competitors. Tony Romas appears to be
using a status quo pricing strategy.
Promotion
Tony Romas is a worldwide restaurant chain that promotes through social
media, television ads and other resources. They offer many discount options
and promotions to attract new customers to their restaurant.

Customer Segmentation Analysis

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Target
Segment #1
Young
Professionals
Geographic
Segmentation
Demographic
Segmentation

Target
Segment #2
Young
Families

Target
Students
Segment #3
Established
Adults (Early,
Late)
In order to appeal to local preferences, Mes Amies was located
in a rather populated area (Masonville), dense with
competitors and filled with potential consumers ready to
spend money on a high-quality dinner.
Age: One of
Age: The
Age: The third Age: 18-24
the three
second of the target market Gender:
target
three target
is established This
markets is
markets is
adults, early
restaurant
young
young
(36-49) and
does not
professionals
families (aged late (49-59).
have a
(aged 22-28). 29-35).
Gender: This
specific
A minority of
Gender: This restaurant
gender
young
restaurant
does not have target. They
professionals
does not have a specific
are targeted
reside in the
a specific
gender target. as a
Masonville
gender target. They are
couple/group
area.
They are
targeted as a
.
Gender: This targeted as a couple/group. Income: On
restaurant
couple/group. Income: Early average,
does not have Income:
established
each student
a specific
Income is
adults are
adds $4,000
gender target. typically
seeing
in spending
Income:
lower due to
increased
to the local
Young
costs
income. Thus, economy
professionals
associated
they eat out
each
are early in
with marriage more often
academic
their careers,
and children.
than any
year,
and do not
This target
other group.
spending
have high
market values This group
$880 of the
incomes
convenience,
spends large
total
overall,
which is one
amounts of
allocated on
although they reason why
their incomes dining out.
do have a
we decided to on food and
Ethnic: Mes
large
locate in the
entertainment Amies does
percentage of Masonville
. Late
not reach out
disposable
Area.
established
to any
income. To
Ethnic: Mes
adults are the specific
appeal to
Amies does
most
culture, but
them, we
not reach out advanced in
we invite all
offer
to any
their careers
to try this
competitive
specific
and have the
fine dining
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prices and
great quality.
Ethnic: Mes
Amies does
not reach out
to any specific
culture, but
we invite all
to try this fine
dining
experience.

FLC: Young
professionals
fall in the
Young
single or
Young
Married or
Divorced
without
children
sections. They
have few
financial
burdens, and
have a lot of
disposable
income due to
low living
expense
caused by
rooming
together.

Psychographic
Segmentation

In order to
reach out to
young
professionals,
Tina must
understand

culture, but
we invite all
to try this fine
dining
experience.

highest
average
income of any
other group.

experience.

FLC: Young
families fall
under the
Young
married or
divorced with
children and
Middle-aged
married or
divorced with
or without
children
sections.
Having
children, they
have more
financial
burdens and
have a lot
less time.

Ethnic: Mes
Amies does
not reach out
to any specific
culture, but
invite all to try
this fine
dining
experience.
FLC:
Established
adults
early/late fall
in the Middleaged married
or divorced
without
children,
Older
married, and
Older
unmarried
sections of the
family like
cycle. This
age group is
interested in
recreations
and luxuries.
Established
adults (aged
36-59) love to
eat out, and
demand
quality. While

FLC: Young
Single stage
of the family
life cycle.
Financially
dependent
on parents in
most cases.
Recreation
oriented.

Young
Families
(aged 29-35)
love to have a
bite to eat
once in a

Students like
to spend
their time
out on
weekends at
bars or
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their traits,
attitudes, and
habits. Young
professionals
love to
hangout and
socialize with
friends,
making a
reasonably
priced fine
diner the
perfect thing.

Benefit
Segmentation

while. While
young
families might
not have
much
disposable
income due to
expenses,
Tinas
reasonably
priced fine
dining
restaurant
appeals to
them. This
target market
values
convenience,
which is one
reason why
we decided to
locate in the
Masonville
Area.
Young families
usually have
2 jobs and
time is
scarce.

being priced
reasonable,
and offering
outstanding
quality and
service, Mes
Amies attracts
people from
all ages in the
established
adult section.
Although price
is not an issue
to this
consumer,
Tinas prices
allow us to be
competitive to
anyone else
that offers
similar
product.

Secondly,
established
adults tend to
have more
refined and
sophisticated
palets,
making Mes
Amies the
perfect match.
The young
Young families Established
professionals
do not have
adults
seek a place
the time to go late/early are
to socialize,
out every
more mature
and a nice
night, and
groups. Their
place to go on they certainly tastes tend
dates. Dating do not have
toward the
is a big part of the funds to
more refined
the young
be spending
and
professional
on a high
sophisticated.

restaurants
with friends.
To appeal to
this groups
lifestyles,
Mes Amies
could offer a
band/karaoke
and a
nighttime
special menu
thats
cheaper, and
jumps out to
the younger
audience.

Students
desire fun
and
memorable
moments
with friends
while they
socialize on
weekends.
By providing
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lifestyle. In
order to
satisfy their
needs, we
offer lower
prices and
high quality
products and
service so
that they can
enjoy their
time with
significant
others and
feel good
about the
money they
spend.

quality dine in
experience.
Mes Amies
offers low
prices, and a
convenient
location to
appeal to the
young
families.

Mes Amies
offers
remarkable
quality and
service that
this group can
appreciate
and love. We
offer a dining
experience
that one will
not forget.

a bar, band
and a
cheaper
menu,
students can
be happier
about
spending
their money
while having
fun at the
bar with their
friends.

Target Market Selection:

The Mes Amies crew is using the Concentrated targeting strategy by
creating one marketing mix to satisfy the common needs and wants of four
market segment; the Young Professionals, Young Families, Established Adults
Early, and Established Adults Late. The reason these four target markets
were chosen is because Tina can effectively meet the needs of each group
and there is a growing desire for a more extravagant and exclusive dining
experience.
Young Professionals are ages 22-28 and are in their first or second job
outside of school. They do not have a lot of disposable income, making the
low prices even more appealing. They value spending time with friends and
socializing. Mes Amies offers a top-of-the-line menu, at affordable prices. It is
a great place to take a date and have a great time, without breaking the
bank.
Young Families are comprised of couples aged 29-35, mostly married,
living together and have children. Income is relatively lower, although many
households are dual income. This group is spread throughout London. They
value convenience, since they are time sensitive and working full time. Since

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income is low, and time is scarce, Mes Amies offers great prices, and a
convenient location to meet the needs of these consumers.
Early Established Adults are comprised of adults aged 36-49, Late
Established Adult ages 49-59. This is the largest group by population and
they have become more advanced in their careers. Because of this, their
incomes are higher and see more disposable income. This group values new
experiences and spends a relatively large amount of money on food and
entertainment. Mes Amies takes pride in quality and service. Mes Amies will
offer a wide variety of exceptional menu items, as well as high end service to
appeal to their sophisticated desires and tastes.
Given the specific needs and desires of the target market, Tina has
created a restaurant with an experience far superior to that of competitors.
With the incredibly unique and delicious menu items, a wide variety of
beverages, modern and classy appearance, and tremendous service Tina
gives the customers the experience they want at a competative price.

Business Plans
Mission Statement
Mes Amies operates with the goal of providing an exquisite dining
experience in todays growingly sophisticated society. The fresh ingredients,
skilled kitchen staff, and fair prices will offer incredible value to the
customers. The menu options here at Mes Amies will be ever changing with
different food trends, based on customer suggestions.
Objectives
-

Provide a higher quality experience for customers, and measure

through customer feedback option on website

Maintain similar pricing with competitors
Obtain a 20% market share in 12 months
Recover initial investment into restaurant within 18 months

Product
Name/Brand

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When selecting the name for the restaurant, it to stand out. A name
that is both catchy, elegant, welcoming, and sophisticated. Something to
make the customers feel comfortable and welcome in the restaurant. Mes
Amies was the perfect name for this type of restaurant. Mes Amies is French
for the term My Friends. This term describes the restaurant perfectly because
the customers will get the sense of friendship and love when entering the
doors. The idea behind Mes Amies is to make an exquisite dining experience
while at the same time not feeling overwhelmed with social expectations, or
price.
Product Offering
With the restaurant, Mes Amies, Tina has decided on a very classy and
high end dining experience unlike any other restaurant in the area. The
majority of restaurants at this calibre charge far more than Tinas restaurant
will, and that will be her advantage. Thanks to being privately owned and
accepting lower profit margins, Tina will be able to keep a comparable price
to The Keg, Milestones, and Tony Romas while offering a superior
experience. Not only are there exquisite menu items being offered, we are
creating a very modern restaurant style and will create a brand representing
attainable luxury, prestige, and high class. At the same time as offering this
tremendous dining experience Mes Amies will promote the use of locally
grown produce, appealing to those looking to support local business. When
people see this restaurant, they will see a place that offers a very unique,
friendly experience associated with importance while maintaining reasonable
prices, comparable to those of major competitors in the area. With the high
end experience, there will be a smaller amount of entrees and they will
change seasonally. In terms of menu style, we will be keeping it very simple
and sleek. A charcoal menu with a simple border, logo on the front page and
all options centred. The lunch, dinner, and dessert/drink menu will share a
common front page. Mes Amies will be following the same sort of modern,

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elegant styling with the layout and look of the restaurant. Following is a
rough draft of the menus.

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Place
Location
For the location, 1680 Richmond St was chosen. This puts the
restaurant directly beside the Masonville Mall, and in the heart of the
Masonville area. Masonville is home to some of the largest businesses in
London. Some of these businesses include Western University, The Schulich
School of Medicine and Dentistry, and The London Health Sciences Center.
These businesses have over 10,000 employees in this area, which will serve
as the target lunch time customers. With these businesses providing high
income jobs, Mes Amies would be the perfect spot for work meals. With
Western University just down the road Mes Amies would appeal to not only
the professors, but also to the Young Professionals who want to go for a meal
somewhere prestigious thats going to make them look like the professionals
they are aspiring to become. The Masonville area has a large number of
residential housing with families making an average of $153,560 in annual
income. Mes Amies restaurant will be situated perfectly for the families to go
out and have a dinner that is more suited towards their lifestyle. Having the
Masonville Mall situated in the same location, hungry shoppers will now have
the best and most exquisite place to sit down and enjoy a meal without
breaking the bank. As an added bonus, there is a movie theater in the same
location, giving you the option to enjoy a classic date night, dinner and a
movie.

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Floor Plan

RT= Right Table

LT= Left Table
EE= Emergency Exit
Seats 96 people
Suppliers
Beef
Beef will be purchased from a local Cattle company called Grass Roots
Beef. This company is situated on Hillview Farms, and raises the finest
cattle by letting them free roam. The Cattle are 100% Grass fed, making the
meat less fatty and more tender for your enjoyment.
Yellowfin Tuna

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Yellowfin Tuna will be purchased from Catalina Offshore Products of the

Canadian Maritime Provinces of Prince Edward Island and Nova Scotia.
Straight from the boat we bring the fresh tuna by truck to our restaurant
here in London.

Lamb Chops
These succulent Lamb Chops are imported from New Zealand, and are
some of the finest chops available. The lamb from The Lamb Company
roam the green pastures freely and are grass fed, so you know tour getting
the best meat.
Arctic Char
All the way from the Northwest Territorys, these fish are from the frigid
cold fresh water lakes. Shipped to London by plane, these fish are sure to
make your taste buds tingle.
Lobster
Fresh Atlantic Lobster from the Canadian Maritimes. These lobsters are
picked from the best lobsters that Atlantic seafood Company has to offer.
Salmon
Fraser River Lodge supplies us with the freshest salmon you will ever
taste. These fantastic tasting fish weigh between 25-50lbs and have a
distinct flavour you can only find in the beautiful British Columbia.
Veggies

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Vegies will be purchased from a local company called Eat Green

Organics. They deliver right to our door and all their products are organic.
Rabbit/Duck
Fresh rabbit from the Top Market Rabbitry, this company provides us
with not only fresh free range rabbits, but also fresh free range duck. Located
in Ariss, Ontario, its only about an hour away from London.

Distribution
In the early stages of the business there will be a focus purely on sit
down dining. There will not be any sort of take out as that might make
customers view us less as a luxury and more as an average restaurant. There
will not have any sort of distribution to third parties in the early stages
because without an established brand it doesnt make sense financially to
put money into an endeavor like that. The ingredients will be delivered fresh,
cooked in house for dine-in meals only. We will also keep the option open to

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start catering high end gatherings shortly after the restaurant is opened.
Such events might include weddings, charity events, etc.

Pricing
Due to the competitive nature of this market, in the introductory stage
of the restaurant there will be a sales-oriented pricing objective targeting
market share. The tactic will be penetration pricing in order to gain the
largest market share possible. The products will be priced with very minimal
profits above cost for this stage. During the growth stage, Tina will slowly
convert to more of a status quo objective and strategy. This will allow a
slightly higher profit while still keeping an advantage over the competition
due to the quality of our food and service. When the maturity stage is
reached Tina will be maintaining a status quo pricing objective and strategy
in order to keep the value of our product in the customers eyes up. If there
appears to be a decline in sales, Tina may revert back to a market
penetration tactic until sales increase again. This plan is subject to future
circumstances, depending on the reaction of the consumers, Tina could be
above the average price of competitors by the maturity stage.

Promotion
Discounts

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In the first 7 days after our grand opening, Mes Amies will be offering
every customer 10% off their next visit with a $30 maximum discount ($300
meal). This will not only get people there the first time, but having received
the discount for their next visit it will encourage them to visit us again. This
strategy will give two chances to win their loyalty.

Social Media
With the growing number of Young Professionals, having a social media
presence can be a great asset. Mes Amies has a Facebook page at Mes
Amies as well as a Twitter and Instagram account that share the name
@Real_Mes_Amies. Using these accounts, Tina can share discounts, new
menu items and all other news related to our business. This advertising is
free, and only takes a short amount of time.

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Newspaper Ad
During the week, a lot of Canadians take the time to read the
newspaper. Despite popular belief, newspapers are still a very effective way
of getting the word out there especially with the growing presence of online
news. This, combined with the age demographics of some of the market
segments makes a newspaper a good way to go. The newspaper ad will
include information on where to find the restaurant, how to reach customer
service, and the date of the grand opening. Also included will be the 7-day
promotion. Attached is a draft of an article for the local newspaper. The cost
will be $300 per week, with a beginning budget of 10 weeks totaling $3,000.

Mes Amies Restaurant

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Mes Amies restaurant Grand Opening May 1st, 2017.

Come dine within the first 7-days and receive 10% off your next purchase!
We offer and exquisite, luxurious experience at a great value.
Find us at www.MesAmies.com or on Twitter and Instagram
@Real_Mes_Amies
1680 Richmond St E (123) 456-7890

Radio Ad
A very common practice for people driving to and from work, social
gatherings, or other destinations is to listen to the radio. An effective radio
ad can go a long way to boost our sales. These ads will discuss the 7-day
promotion, superior quality food and service as well as the great prices. Near
the end of the ad our website and address will be included. The designing of
the ad will cost approximately $3,000 and a radio ad costs approximately
$1,000/week to air. With a budget of 10 weeks, brings us to a total of
$13,000.

Grand Opening Flyer

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A very effective way of getting word out to potential customers is

through mass distribution of a grand opening flyer. This will not be a regular
promotional activity, rather it will be a one-time send out in order to let
people know we are coming, and what deals we are offering off the bat.
Included in the flyer will be our 7-day promotion, address, social media
accounts, website, grand opening date, and phone number. Attached is a
mock flyer. It will be sent through the mail with Canada Post at a cost of
approximately $0.13/flyer. There will be flyers sent to 60,000 people in our
target area, totaling $7,800.

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Website
Included in the marketing plan will be a professionally done website. It
will include the menu, without prices. It will also include customer comment
forms, rating abilities, testimonials, information on the staff, and all other
general information. The ratings submitted by customers will be filtered
through a customer service representative before being seen publically, and
can be rejected if deemed irrelevant or unnecessary. Other aspects may be
included at the discretion of the website designer. The estimated cost for this

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is a $3,000 one-time fee. Any maintenance would have to be considered

when needed.

Summary of Marketing Plan

In total there will be a professional website, grand opening flyer, a
newspaper ad, radio commercial, and social media to advertise and spread
the word of our opening and wonderful value for great service. The 10%
discount for all customers within the first 7-days will be a focal point of the
advertising. The total estimated cost for advertising within 1 month is
$26,800. This leaves over $3,000 breathing room for unplanned advertising
expenses along the way.

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Works Cited
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Milestones. (2016, November 21). Milestone's Menus. Retrieved from
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http://www.statcan.gc.ca/eng/start
The Keg. (2016, November 21). The Keg menus. Retrieved from The Keg
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