Marketing Strategy Report For Small Bar And Kitchen

Target Market and Segmentation

Marketing strategy plays a prominent role to enter in the new market. Every organization needs to have a strong base of marketing strategies to launch their product into a new market (Baker, 2014). Small Bar and Kitchen is a small restaurant and has a planning to expand their roots in the international market with the innovative concept. Small Bar and Kitchen (SBK) is located in Sydney, Australia. They have created the base of loyal customers by catering high-quality items at a competitive price (SBK, 2018).

In the following context, there will be a detailed discussion on the marketing strategies which is required to enter in a new market.  

Looking at the market analysis of the Small Bar and Kitchen, the following groups are defined as a targeted segment. Such segments are explained in below points:

Geographic

The ethnic food in Singapore is mostly preferable by Asian tourists and local people of Singapore. Singapore is one of the destination places for the tourist. Therefore, the hotspot area of Singapore tourist will be the main target in which Sentosa is a recommended targeted area for SBK (Solomon et al, 2014).

Demographic 

The seniors, and young married couples with children, teenagers, and citizen especially tourist or foreigners are the main targets for SBK. Both genders, male and female will be the targeted audience for the restaurant with an appeal to the high side of middle-income individuals and to all in the high and low-income bracket. Therefore, it will belong to all age group and all level of income (Dolnicar & Leisch, 2017).

Behavioral 

Most of the crowd in Singapore have a preference of spicy and healthy food. The variety of seafood is one of the main attractions with some delicious chocolates in Singapore. The current trend in the industry of Singapore showcase that the ethnic food with efficient service and low priced items are highly popular among the residents in Singapore with such reason there is an increase in the number of casual dining restaurants. Therefore, looking at the current trends, there is huge scope for SBK restaurant in Singapore (Kim et al, 2016).

Psychographic

The habit of healthy consumption has become a major eating trend in Singapore. The sugar, salty, and plump are being highly switched by the vigorous and bold flavors in Singapore. The food of SBK includes variety of nutritious for being healthy with the combination of spices and herbs. It is the best opportunity for the restaurant to attract maximum customers in Singapore by catering healthy food and chocolates (Aghdaie & Alimardani, 2015).

Positioning Map

Thus, it has been analyzed that more than ten million tourists visited Singapore in 2008. With the maximum number of visitors in Singapore, it would give an advantage to the SBK to earn maximum profit in such country. Furthermore, SBK has seating space of almost 300 people, the restaurant is hoping to target an average of 200 customers every day for the first year and to grow to 15 % each year. Besides that, the restaurant will adopt the lunch strategy which is dually proposed. As some of the people do not have lunchtime, from that reason, SBK will keep the price low as possible in the lunchtime to compete with the fast-food restaurants. The guest will be catered by not only sandwiches, drinks, and fries but also cater with salads, desserts and a selection of hot food items with the SBK specialist chocolates. On the other hand, SBK can reduce the hot food variety for dinner as they can reduce the cost of food in line with the reduced price. Consequently, this strategy will cover the maximum customer base at lunch while still maintaining their core market segment. Therefore, the main target market for SBK is tourists with all range of age group and the local people of Singapore (Bruwer & Li, 2017). 

With the help of the positioning map, the condition of the restaurant has been shown below. The perception about SBK and its competitors are highlighted for the ease of comparison (Moon & Kamakura, 2017).

In this positioning map, it has been observed that SBK has kept different range in its prices of the product. It covers under the category where high quality of products is provided at a reasonable price. The Cliff falls under the category where, the restaurant caters high price products by compromising with the quality of the products (Hot Spot, 2018).  The Verde is one of the strong competitors of SBK. In the positioning map, it falls under the category of high quality with high price. Verde Kitchen caters high-quality product but at a high price. Verde Kitchen undoubtedly focuses on the high-quality product but it increases the costing of the hotel which indirectly affected the price of the hotel (Hilton, 2018).  Lastly, the product of fast-food stalls falls under the category of low price with a low-quality product. The products of the Fast-food stalls are provided at a cheaper rate by compromising the quality of the product.

Positioning

Positioning is the process of identifying the concepts for each target segment, select one of the best, and then communicate it. There are certain positioning theories or approaches which can be adopted by SBK in order to position their product in the new and competitive market (Passmore et al, 2017).  These are explained in below points:

The first theory of positioning can be used by any company or organization. It is regarded to the benefits or the characteristics attached to the product. This theory would help in order to emphasized upon the overall style and the upcoming trend in the market and also help the SBK to analyze the various characteristics of the similar product at the same time.

In this theory, the positioning is depending on the price which is attached to a specific product or a service, offered. The price of the item should be in such a way that, the customers able to make a trust bond and have a full worth of the money spent by him or her. It is one of the most effective and efficient theories in nature. The use of pricing pattern in positioning is an effective approach which can be adopted by SBK. From such theory, the organization can able to attract maximum customers. The price of the product should be in such a manner that the customer would have a full worth of the money spent by them (Deppermann, 2015).

In this positioning theory, it depends on the use of the product or the services that offered. This form of theory has been mostly utilized to expand the market for a specific product or brand. It would help SBK to create the image of their restaurant in the new market.

Positioning on the basis of the process of the product would help SBK to get knowledge about the people or users class level which is being catered by the similar thing. Under this theory, the general disposition of the product could be communicated.

This theory would help the organization to link with all the competitors based on the variety of elements. The theory of competitors would be helpful, in order to analyze that either similar or different strategy have been used by the organization. With the help of such approach, SBK will able to analyze the marketing strategy of the competitor and adopt or use of different advertisements, slogan and so on to attract maximum customers (Coffie & Blankson, 2018).

Product Mix

Singapore is majorly known for the seafood. SBK can introduce a unique product which is called Salmon. It is the bestselling Seafood in Singapore. Singapore is also loved for its range of ethnic food available. SBK can cater Satay, Hokkien Noodles, and Hainanese Chicken Rice (Catherine, 2014). There are other Seafoods that can be offered by SBK are Crab, Tuna, Pollack, Flatfish, Lobster, Cod, Shrimp (Henderson, 2016).  In addition to the food, SBK can cater the beverage culture in the restaurant with an amazing Wine where the customers can enjoy all kind of drinks with the meal which will allow the customers to enjoy and spend more time in the restaurant. SBK has a concept of a small bar, therefore; all variety of alcohol can be offered by SBK. Lastly, SBK has a specialty in organic chocolates, to attract maximum customers; SBK can introduce a variety of organic chocolate which differentiates them from other competitors.  

There is a certain way to cater the product to the maximum customers, as they are explained in below points: 

Value Approach

It is the approach which involves the selling of menu product at discounted prices. Start by offering popular items in small proportion. Combine each food with the side dishes and a small drink to create a basic combo meal. This type of approach is effective to target customers between the age group of 16 o 34 years old (Gordon & Brezinski, 2016).

Themes

SBK can tie-up their product with certain themes. SBK can arrange cross-promotion between the restaurant and local amusement park, zoo or symphony orchestra. SBK can hold the contest in their restaurant, where customers can win discount coupons to the favorite entertainment venues by ordering featured menu items. In this approach, customers would purchase multiple means to collect the entire set (De Mooij, 2018).

Considerations

The frequency program is another type of product strategy in which customers are rewarded for the number of items they purchase certain food items, or for the amount they spend. The customers are rewarded with coupons, meals, and free drinks. Through such strategy, SBK can able to cater the maximum product to their customers.

Seasonal Food Promotions

During certain seasons, some foods sold in a better way. Therefore, SBK can take advantage of these food trends when creating product strategies and promotions. SBK can offer the green beer on Saint Patrick’s Day while running a full-service dining facility and can also promote more cold beverages products and chilled desserts during the summer months.

Product Level

 

(Source: CGMA, 2018)

Core Product

The core products of SBK will be seafood such as Salmon with the texture of Australian taste as well as a variety of desserts and beverages. The client will mainly attract towards Salmon which will cater with Wine.

Basic or Generic product

The product will be known for their taste and presentation. Variety of product will be catered to the customers with the Australian theme and culture.

Expected Product

There are certain expectations of the customers towards any restaurant. The expectations are soft music with a comfortable ambiance, the courtesy of staff members especially waiters towards customers and cater fresh product with cleanliness.

Augmented Product

SBK will represent the waiter, who sings to entertain the customers. The SBK will have its own brewery and will also have its own cave which will enhance the taste of the product. Moreover, the focus will be also done on waiters as the waiters will be dressed in a good manner and the training of courtesy will be provided to them.

Potential Product

The food will be catered in a good manner by the waiter. A restaurant has set their roots in the hotspot area where maximum tourist and customers will able to reach out the product.

The product level will help the SBK to differentiate their product from other competitors and can able to enter in the new market in an effective way which would help to attract maximum customers in a limited time period.

Pricing Strategy

Quality

Economy Pricing	Penetration Small Bar and Kitchen
Skimming The Cliff Verde Kitchen	Premium

 

In general, there are certain type of pricing strategies such as economy pricing, penetration, skimming, and premium pricing strategy. Most of the restaurants prefer and adopt the skimming strategy but it is recommended that SBK should adopt the penetration pricing strategy. In this strategy, it will mainly focus on the lower pricing and catering high quality of food. In Singapore, most of the customers attracted towards lower pricing product. The penetration pricing is the practice of setting a low price initially for a product or services. The strategy of low pricing among the competitors will draw attention towards the restaurant immediately. Buy-one Get-one free is one of the common penetration pricing techniques that can be adopted by SBK. Moreover, SBK can also provide heavily discount on particular items or offering for free when ordered with a related product. The penetration pricing will be effective for SBK to enter in the new market with new products (Nagle & Muller, 2017).

Justification

Penetration strategy is recommended because of the following reasons which are explained in below points:

• It will help SBK to gain quick attention to their business and build the base of customers with word of mouth publicity.
• The low price product attracts the customer most it will put the competition on the defensive because most of the restaurants such as Verde Kitchen, The Cliff adopted the strategy of skimming.
• This strategy will help SBK to keep focus on the efficiency and reduction of cost to maximize the profits.
• It will help to capture a larger share of the market and eventually become the “go to” business for a particular product.
• SBK can take advantage of economies of scale and also able to maintain profitable margin by selling their product at reasonable or lower price.
• The strategy will help SBK to target maximum range of customers in an efficient way and effective manner.

Distribution

The distribution is the process of making a product available to the customers. There are majorly three distribution strategies that SBK can adopt, which are explained in below points:

 

(Sources: MBA Skool, 2018)

Exclusive Distribution: in this strategy, the company can set exclusive stores to sell their products which may lead to more control.

Intensive Distribution: in intensive distribution, a company can maximize the outlets to maximize the sales.

Selective Distribution: It is a strategy in which company carefully choosing the multiple channels and partners to enter in a market.

The above-mentioned strategies are mostly used by the companies, SBK can use online as well as offline strategies together to maximize and optimize sales (MBA Skool, 2018).

SBK will be retail outlet which directs to sell to the customers. The outlet should be at that point where maximum customers can be covered. Singapore is the hub of tourist. Therefore, the visiting spot of the tourist will be recommended to cover maximum customers. SBK can also offer their services online to reach out maximum customers with the free delivery system; through this, the customers can look for the services from any place.

There are certain promotional strategies that can be adopted by SBK to promote their restaurant on the market of Singapore (Chong et al, 2016). These are explained in below points: 

Social Media

In the recent scenario, the user of internet sharply rises with the big amount. Most of the restaurants adopt the tool of social media for promoting their product. SBK can use the platform of social media such as Facebook, Twitter, in order to gain the popularity high brand value. It is an effective tool to advertise the product (Tuten & Solomon, 2017).

Online Selling

The use of internet is being risen from 26 % to 85 percent in Singapore therefore, the SBK can take the order from online. Through such a tool, the restaurant will be able to cover maximum customers.

Sale promotion

It is the best way to attract maximum customers. SBK can give offers and discounts to customers such as fifty percent off on first order. Provide complimentary goodies to the customers who order food more than a certain amount.

Pull strategy

SBK can adopt pull promotional strategy that would attract most of the customers on advertisement to buy or demand the items. They can advertise more advertisement so that customer will receive information directly from the media on radio, newspaper, and internet.

People

SBK can concentrate on the employee welfare to motivate the employees such as reward to the staff for the best performance. It can be measured, for instance, punctuality, honesty service mind, and personal skills. Moreover, the part-time staff producing a masterpiece will be promoted to be full-time staff (Armstrong et al, 2014).

Physical Evidence

• Clean restaurant – SBK will need to set the cleaning plan for staff to clean the regular part such as tables, chairs, doormats, and floor every day before the opening of the restaurant. In cleaning the particular part such as windows, shelves, and fish tank also cover in every week to cater and present the clean restaurant to the customers
• Friendly Environment – To target maximum group, SBK needs to produce a friendly environment by decorating a relaxing style in the restaurant. The restaurant can be decorated by the small green plants which are placed in most of the corners to make and create a more natural environment (Awan et al, 2015). 

Process

Catering product to the maximum customers requires fast service. SBK need to concentrate on the pattern of service. It is the expectation of the customer to get the food in less time. To serve faster, the chef also needs to know how fast they can cook with well preparation and management. SBK should have a target that the food will be served within 10 minutes after ordering. This assures customers requirement and also makes the restaurant different from the others.

Conclusion

From the above, it can be concluded that marketing strategy plays a prominent role for every organization to survive in the competitive market. SBK is the small restaurant with the small concept of Bar. The company is planning to extend their roots in the international market. Therefore, it is required to have a strong marketing strategy to enter the new market. Singapore is the place where SBK has a planning to open a new restaurant. SBK needs to cater a variety of items which can be differentiating from the competitive products. The restaurant should adopt the penetration pricing strategy to promote their product. Moreover, various promotional strategies can be used by SBK to promote their products in the market.  By adopting such marketing strategies, SBK can enter in the new market and can able to compete in the competitive market. 

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