MKT501 SLP MOD 4 FINAL Principles of Marketing Module 4 SLP

                    Trident University International xxxxxxxxx Principles of Marketing Module 4 SLP MKT501: Principles of Marketing

Dr. xxxxxxxxxxxxx

  8 December 2019                 Principles of Marketing Module 4 SLP Introduction              La Salsa Grill is a restaurant that will be offering fresh Mexican food cooked in front of the customers’ eyes. Also, it will offer a fresh Salsa Bar, where customers can custom-make their salsa. The restaurant is destined to success owing to the lack of direct competition and the increasing demand for a product like this in Los Angeles. Product Overview La Salsa is a fast-growing New Mexican food restaurant in Los Angeles. It is unique because of its fresh style that has an open-display kitchen where the consumers will be watching their food get prepared. It shall also be famous for its fresh Salsa Bar, where customers can custom-make their salsa. They will be able to choose flavors from hot and wild to robust. The restaurant will not utilize lard, can openers or microwaves. The signature of its unique taste will be charbroiled cooking flavorful Mahi Mahi, jumbo succulent shrimp, tender steak, and white meat chicken that are skinless. Famous menu foods shall be veggie specialties, handcrafted tacos, and gourmet burritos. Its quality menu, combined with the fresh attitude, shall make La Salsa customers' favorite. Customer Profiling             Module 1: Week 1 Discussion Post.     La Salsa will be offering fresh food items and salsa bar. The main offerings include fresh charbroiled Mahi Mahi, large succulent shrimp, tender steak and white meat chicken, tacos and burritos. The three customer profiles for La Salsa include primary and secondary customers or both. Primary customers involve children and families while secondary customers include college students and millennial professionals of ages 18 to 35 years with disposable income of up to $ 70,000. I chose this customer profiles because there is an increasing level of health issues that have made consumers to increasing become keen on their diet and are moving from canned foods to fresh food. Also, many of them take cooking as a hobby and will cook their meals using fresh and healthy foods. In addition, most of these college students and millennial professionals lack time to make their meals and always consider looking for optional cooking. Many of them will not go to just any restaurants but fresh food restaurants like La Salsa for meals as a healthy option to fast food. Places to do ads to these customer profiles include advertisement, online and social media. For children and families, ads on TV are appropriate. For college students and millennial professionals, online and social media advertising is appropriate. This is because youths are constantly on the internet and social media sites like Instagram and Facebook. Messaging             Module 1: Week 2 Discussion Post.  The chosen product is fresh food. The fresh food involves charbroiled Mahi Mahi, large succulent shrimp, tender steak and white meat chicken, tacos and burritos. Chipotles offers similar services like La Salsa. I found Chipotle’s services promoted in print media. Also, I found the restaurant’s services advertised through event promotion. Lastly, the restaurant’s services were promoted in a food festival that I attended. The promotion in print media caught my attention because of the coupons I found on coupons on recipes, magazines as well as newspapers. Also, events promotion caught my eye since themed cups were offered to existing and potential consumers. The food festival promotion caught my eye because the music that was played was based on the restaurant’s services. The messages used emotional appeal to capture attention. The promotions backed this emotional appeal with a rational that gave the audience a chance to act on their emotions. This is because it interests customers to purchase their product by passing the message and intention in a simple way. Customer Demographics and Psychographics             Module 1: Case  The demographic profile of the business describes physical characteristics such as age and sex, social (marital status, social class), and economic (income, education, employment).  Understanding customers' demographics helps to ensure the effectiveness of the marketing strategy, and this is especially when there is a good understanding of the customers' habits (Torres, 2015). The primary target group in family and children and the secondary market is young people from 18 to 35 years.  Where possible, people take home-made meals, but the target group increasingly prefers eating outside the home.   When considering the psychographics aspect of these customers, their personalities, perceptions, and attitudes are taken into consideration. The restaurant's preference for the primary group is formal restaurants and for the young the fast-food restaurants. The customers consider prices, the quality of food and the services             Identifying the type of consumer enables the determining of specific characteristics that allows grouping into niches that define their profiles and segmenting the market into a small number of subsets or segments where there are similarities based on behaviors, needs and motivations.   Nielsen a market research company integrates information on what people watch, listen and Buy together with other data source to provide a complete understanding of the customers in different industries.  Nielsen also offers advanced analytics that allows the business to improve performance when they target meeting the target customer needs.  Market research, combined with the psychographic profiles, helps explain why customers prefer certain brands, products, or services and how their personalities influence this. Customer Relationship Management             Module 1: Case.   Customer Relationship Management (CRM) refers to management based on the relationship with the customers and the software for the administration of the relationship with the clients.  A CRM tool that is a point of sale system (POS) with CRM features such as TouchBistro is potentially beneficial. TouchBistro has been designed by and for the restaurant industry to meet the unique needs of catering, hotel, and restaurant businesses. CRM tools have different functionalities, including the display of the cost of food, sales tracking, inventory, cooking and menu management, managing bookings, tables and waiting lists, employee scheduling, waiter task management, and payroll management. For the restaurant, TouchBistrotool is a POS that can help increase sales, improve customer service, report decisions as well as information on the menu and inventory. The other CRM tool is an automated service focusing on customer service and interactions. This tool would be useful to communicate and interact with customers, and the service solution also facilitates marketing automation.   When different capabilities allow creating marketing campaigns, then this makes it easier to track the performance of the marketing and promotion campaign (Rahimi & Gunlu, 2016). The automated service is linked to the business operations, and keeping details of the customers can provide insights on how to market the target customers. Customer relationships are a crucial objective for any business, and the use of new technologies has made it easier to manage existing and new customer relationships. The CRM tools are used to generate more benefits by focusing efforts on the customers/ clients. Profitability is synonymous with satisfied customers, where satisfied customers are loyal, and there is likely continuous growth when an organization or business meets the customers’ needs.   Since it is easier to retain existing customers than acquiring new ones, there is an emphasis on getting information on the customers to leverage this for selling opportunities and increase profitability. CRM focuses more on growing the customer base and retaining these customers rather than improving satisfaction as well as loyalty, where support is for specific customers depending on customer segmentation (Hasanian, Chong & Gan, 2015).   Target Audience and Competition             Module 1: SLP       Families with children and young people are the target market of the Restaurant, as they choose establishments where there is value for money and quality food.  One of the benefits of determining the target market is that there is a focus on what is offered and the target market is looking for. Mexican cuisines and dishes are among the most popular in the U.S. “In 2017, more than 233 million Americans used Mexican ingredients or products as part of their diet” (Statista) as quoted by Ramírez-Santos (2018). The sale of ethnic foods has increased since then, and most of the Mexican Restaurant operates Full-Service Restaurants (FSRs) and are mostly the 'casual dining’ type of restaurants. The growth rate in the Mexican restaurant industry in the US 2014-2019 at an annualized rate of 4.8%, where there has been growth in the industry and the number of employees (IBISWorld, 2019).   The fast-food restaurants such as McDonald’s and Subway are competitors in the fast-casual category, and numerous restaurants mostly sell Mexican cuisines and Mexican inspired foods such as Chipotle and Taco Bell. As the number of immigrants increases, there is a growing demand for different cuisines in the U.S. Societal Marketing             Module 2: Week 1 Discussion Post.   At our restaurant social responsibility is a vital part of our company’s fabric.  Our customers expect the highest level of morality and ethical behavior.  Our company continues to promote the concept of giving back and has continuously become progressive in doing so.   Our partners strive to create a family-like work environment by assisting causes they’re employees believe in.  Our dress code promotes uniformity and comradely amongst our team.  Our partners support local educational causes that support children of our subordinates.   In our companies’ opinion our CSR should not be in an effort to be reward.  Jones (2003) argued that from the ethics perspective, it’s problematic for CSR to be exercised with the aim of obtaining calculative advantage or strategic competitive edge. We will continue to grow our company and, show gratitude in giving back to the community.  Our overall goal is to model a company like Chic-Fil-A, who has High School nights at their stores.  The kids and families flock to their store to help out their teams, and they come back again and again because of the overall good experience they had.  In this simple interaction we began to lay the foundation for CSR.  It’s also important to note that 92 percent of consumers have a more positive image of companies that support social issues and environmental efforts. (Sickler, 2017)   Creative Message             Module 2: Week 2 Discussion Post. Mexican cuisines cater to male and female consumers from those with young children to low and mid-range income earners. The younger ones tend to be more conscious about their health and the purpose of their take-out food is to meet the needs of this specific group. The outstanding thing about this business is that it draws in people from different cultural backgrounds and races. There is no room for segregation because they all enjoy what this restaurant serves.              Their product fits the needs of those who want hearty, savory, and healthy meals because the restaurant manages to make meals that cater to different demographics. Their foods are high quality and can be delivered. The prices range from cheap to mid-range so that even the young ones and low-income earners can enjoy the food they serve. That is one of the reasons why their restaurant is very popular. A lot of people love burritos because it is filling, flavorful, and rich. When it comes to burritos, size matters (Zelman, MPH, RD, LD, 2019). It is composed of rice, meat, and beans making it a very hearty meal.              Their food is delicious and affordable which are both beneficial to the target market because they are getting quality food at a price everyone can pay for. If someone is craving Mexican food right this very minute, they can just call them up and have it delivered to them. At the same time, they do not have to pay for too much just to have delicious Mexican food right away.              The young ones and low to middle-income earners do not want to spend a lot of time cooking and not all of them can fit it into their schedule. Therefore, the convenience of ready-made meals that will not hurt their health and pocket is ideal for them. Aside from that, they deserve to have delicious Mexican meals        Segmentation Application             Module 2: Case. Gap Analysis, Benchmarking and Competitive Advantage Its primary customer segment is children and families. The secondary segment is college students and millennial professional. The restaurant’s main focus is to take over these segments by providing freshly made meals and put target on them on the basis personalities as well as characteristics. The market has potential since the strategy resonates with college students and millennial who are interested in the environment and the manner food is prepared. Market Gap Analysis 1 This market gap analysis will enable La Salsa identify sales opportunities where the supply is less and demand is great. Utilizing this process, the restaurant will establish current underserved markets. Therefore, La Salsa will carry out a market gap analysis of their offerings to make sure all features as well as functions presented in the business needs are present and operating as anticipated. Status

Focus	Channel	Performance	Potential	Gap
Multichannel Sales	Salsa Bar	$500,000	$1,000,000	$500,000
	Fresh food restaurant	$1,000,000	$2,000,000	$1,000,000

  From the table, Salsa bar for a start is anticipated to perform at $500,000 whereas the market potential is $1,000,000. This implies it has a market gap of $500,000. Similarly, Food services are anticipated to perform at $1,000,000 while market potential is at $2,000,000 implying a market gap of $1,000,000. Gaps

Focus	Channel	Gap	Why?	Gap Description
Multichannel Sales	Salsa Bar	$500,000	Market coverage is limited	Extend market reach

  The salsa bar’s market gap of $500,000 will exist because the restaurant’s market coverage will be limited since it is new. To address this gap, the restaurant will need to extend its market reach as it grows. Bridge Gap

Focus	Channel	Gap	Gap Description	Solutions
Multichannel Sales	Salsa Bar	$500,000	Extend market reach	Provide enough resources to reach a broad market

  To bridge this gap, the restaurant will need to extend its market reach by providing more resources like more staff and finances as it grows. Gap Analysis 2 Status

Focus	Channel	Performance	Potential	Gap
Multichannel Sales	Salsa Bar	$500,000	$1,000,000	$500,000
	Fresh food restaurant	$1,000,000	$2,000,000	$1,000,000

Gaps

Focus	Channel	Gap	Why?	Gap Description
Multichannel Sales	Fresh food restaurant	$1,000,000	Market coverage is limited	Extend market reach

  The food services market gap of $1,000,000 will exist because the restaurant’s market coverage will...