Marketing Plan

MARKETING PLAN 11

MarketingPlan

InstitutionAffiliation

MarketingPlan for Stagioni Restaurant

Descriptionof Stagioni Restaurant

StagioniRestaurant is anindependent restaurant start-up in Charlotte North Carolina. Therestaurant is located at 715 Providence Road, Charlotte in NorthCarolina. Stagioni Restaurant is owned by an Award winning chefcalled Bruce Moffet.The great restaurant opened in 2014 in theMyers Park neighborhood and features classics with modern twist. Therestaurant was opened driven by the owner’s belief that ‘thegreatest life’s memories unfold around the dinner table’ and thusStagioni restaurant was built to bring family and friends together(Nowicki, 2014).Stagioni is the third venture of the Charlotte –based Moffetrestaurant Group that includes ‘Good Food on Montford’ andBrrington. The Stagioni Restaurant was set up in 2014 with an aim ofintroducing four season classic Italian food in Charlotte area(Thomas, 2014).

‘Stagioni’is an Italian name that means ‘seasons’ and also reflects themenu offered at the restaurant. Stagioni Restaurant is based on theobjective that ‘dining out is as much about the experience as it isabout the food.’ The restaurant was started with the objective ofoffering classic Italian dishes that are sources from the localfarms. The restaurant is known for its unique classic hand-madepastas, pizzas and specialties such as chicken cacciatore and roastedporchetta. Stagioni Restaurant is a classic restaurant that is amixture of tradition and modernity crush. The restaurant boasts ofstunning walled courtyard, large pizzas and exquisite Tuscan design.The tradition and modern aura collide as the restaurant featuressleek and modern dining area that is warm and welcoming. The buildingin which the restaurant is built was an entertainment abode ofBlanche Reynolds and served as a gland palace where people gatheredand this tradition has formed the mission of the Stagioni Restaurant(Thomas,2014).

Missionstatement

Bringfamily and friends together through great meals that change withseasons”

Themission and vision of the restaurant is to enhance people gatheringespecially friends and families. The restaurant is based on themission that good food brings people together and thus as seasonschange, so is ‘food and appetite of the clients.’ Unlike otherItalian restaurants around Charlotte area, Stagioni utilizes thelocally available fresh ingredients to create seasonal menu that ishandmade making it unique among the rest the product pricing isattractive for the high end Italian cuisine dishes at $30 and below.Since its start-up one year ago, Stagion restaurant has received widepositive reviews from local and tourists for its tasty food andpricing.

UsingPorter’s Five Forces to analyze Stagioni Restaurant market

Thedemographic information of Stagioni Restaurant

Stagionirestaurant was built with the objective of reaching out Italianpopulation in Charlotte who want classy Italian dishes. Stagionirestaurant draws customers from various sectors in the Charlotte city(Nowicki,2014).Most customers at Stagioniare baby boomers and young couples whoprefer enjoying the Italian cuisines in a great environment such asStagioni restaurant. However, Stagioni restaurant serves other non-Italian consumers, college students on holiday or outings. Mostclients at Stagioni restaurant come from the local Charlotte citywhile others come from the neighboring estates. Stagioni restaurantattracts diverse clientele for its unique and well priced cuisinesthat are favorable to the local people. The environment, design anddecoration of Stagioni Restaurant attract family, friends and groupswho prefer spacious, lively, warm and quiet areas.

Themarket demographics for Station restaurant are mixed the restaurantis good for both young and old people. However, since its start up in2014, Stagioni restaurant serves family members, couples who are outto experience romantic dinners or youthful individuals who wish tohave good times together. However, Stagioni restaurant menu is allinclusive and offers food varieties for all gusts. Customers travelfrom as far as Atlanta Georgia to have enjoyable and deliciousItalian cuisines. In 2014, Stagioni restaurant recorded more adultcustomers than young people and this trend has maintained in year2015. Among the couples, Stagioni restaurant records older maleclients than females. In part, the awards of liquor license toStagioni restaurant made it a favorite dining venue for old men outin groups, families or on business trips (Nowicki,2014).

Targetmarketing for Stagioni Restaurant

Accordingto the product description at Stagioni restaurant, its market can besegmented in three target populations:

  • Individuals (single persons who dine alone)

  • Families group of related individuals who prefer dining together

  • Takeout: people who prefer buying and eating out food at their convenient locations

StagioniRestaurant customers are hungry individuals aged between 25 and 50years and this group make up 56% of the Charlotte city population.Although age is a significant factor in the demographics segmentationof Stagioni market, income is the most appropriate defining aspectfor Stagioni customers. All ages enjoy hand-made Pastas and Pizzas.In Charlotte city, there is a relatively high population especiallyat night time with families and business people who have averageincome of $40 000 (Nowicki,2014).In this case, the primary segmentation of Stagioni restaurantinvolves:

  • Sophisticated families living in Myers Park area

  • Young college and professionals around Myers Park in Charlotte city.

  • Shoppers who occupy the high rent stores at Myers Park in Charlotte city.

StagioniRestaurant competition

Charlottecity boasts of numerous classic restaurants. Although Stagionirestaurant boast of unique and appealing cuisines and environment,there are significant competition in the market. Most localrestaurants at Charlotte were founded by independent chefs who offerdistinct cuisines based on ethnic group orientation. In this case,most restaurants differ in cuisine and pricing thereby eroding stiffcompletion. For instance, some restaurants such as BAKU offersJapanese cuisines, Semel offers Chinese cuisines, others offersEnglish cuisines such as Dunhill hotel and others offers Americancuisines (Nowicki,2014).In this case, competition is limited to general products such asbeer, wine and lounging facilities.

Thereare numerous restaurants near Stagioni but their completion islimited to menu and food pricing. However, this does not mean thatcompetition is not stiff as there are several Italian restaurantsnear Stagioni. Notable competition for Stagioni restaurant comes fromPane Amore Fantasia restaurant that is 0.5 miles from Stagioni. LaRaccolta restaurant that is 0.3 miles from Stagioni, Trattoria daRocco is 0.4 miles from Stagioni restaurant. Other Italianrestaurants near Stagioni are Cucineria la Mattonaia, GiumellaGastronomia, L’Ortone and others.

Competitionfrom these restaurants is not as stiff due to variation in foodsoffered in their main menus. In addition, there is great variation infood pricing and this poses significant competition to Stagionirestaurant. For instance, Libretto the main competitor of Stagionirestaurant offers similar Italian cuisine. Others such as the Luce,Fiamma, Toscana, Mama Ricotta and Dolce Restaurant are classic highend restaurants that pose significant threat to Stagioni Restaurant.The main source of competition is food, customer service and pricevariation. Reviews by customers from competitors websites indicatesthat customer service, pricing and food quality informs customers’decision to dine at a particular restaurant. Stagioni restaurant’scompetitive edge is fresh food, good pricing and friendly customerservice (Nowicki,2014).

Thebargaining power of Suppliers at Stagioni Restaurant

Stagionirestaurant source its products from local farmers for the variousfoods prepared at the restaurants. Local farmers are the mainsuppliers of Stagion restaurant food preparation materials and thisgives them a higher bargaining power over Stagioni Restauranthttp://stagioniclt.com/.However, Stagioni restaurant has established supplier loyalty withits suppliers to ensure price stability for its supplies. Inaddition, Stagioni restaurant dishes are season driven and this meansthat the suppliers do not have undue bargaining power on Stagioni.The resulting effect is that Stagioni restaurant is able to offerfresh and quality food at low prices. The seasonality of dishes atStagioni are aligned with farm supplies and this means that when theproduce season is high, Stagioni restaurant offers cuisines based onthe available market produce (Nowicki, 2014). In this way, themanagement of the restaurant is able to control food and qualityprices for the benefit of clients (Porter,2008).

Thebargaining power of buyers at Stegioni Restaurant

Demandfor fresh Italian cuisines is high in Charlotte city. There areseveral customers demanding good and quality Italian foods at fairprices. Stagioni restaurant offers unique pizzas that are fairlypriced compared to other restaurants. The serene, modern andseasonally driven cuisine offers clients food diversity throughoutthe season thereby eliminating monotony in one cuisine(http://stagioniclt.com/).The high demand for Italian cuisines that are fresh and of highquality in Charlotte indicates that buyers have a higher bargainingpower. Excellent quality service is another aspect that attractsclients to Stagioni restaurant. Every day Stagioni restaurant recordsfull sitting and individuals are requested to make reservationsearly. This shows that consumers have high bargaining power indriving prices up. In part, this is because most of the localcompetitors offer expensive prices for similar Italian cuisine.Overall, the facilities, service and food offered at Stagioni makesit more attractive to many local and visiting clients (Nowicki,2014).

Threatof new entrants

Charlottecity is experiencing great ethnic restaurant revolution which offersspecial cuisines. As a result there is increased entry of newrestaurants in the market especially those offering Italian cuisines.Competition dining is a favorite culinary game in Carolina and eachyear there are new establishments put up by competing chefs. Inparticular, the Myers Park where Stagioni restaurant is located hasexperienced unprecedented growth of restaurants offering Italiancuisines. The new entrants in the market include Cantina 1511,Little Spoon and Libretto restaurants. These new entrants rivalStagioni restaurant with similar cuisines but do not command muchinfluence as Stagioni restaurant dishes. In part, Stagioni offersfresh, quality and season dishes that makes it unique for it clients(Porter, 2008).Clients at Stagioni enjoy vast Italian cuisines based on theseasonality of produce. The overall effect is that, although there isincreased emergence of new Italian restaurants entrants in Myers Parkand Charlotte, none of these restaurants equals to Stagioni in foodquality, services and price (Nowicki, 2014).

Productstrategy

Adescription of the menu offered at Stagioni restaurant

Stagionirestaurant offers classic Italian cuisines and beverages. Inparticular, Stagioni restaurant is known for its fresh pizza that isserved in various ways. Stagioni cuisines are seasonal but maincuisine involves handmade pastas, wood fried pizzas and slow roastedmeat. Snacks include special, seasonal and unique food products thatare not commonly found in the pother Italian restaurants, thesesnacks include Sputini which is prepared as marinated mushrooms,eggs and marcona almonds. Affetati is another special snack offeredat Stagioni and is made from fresh meat and cheese. An especiallyhand-made pizza is another unique snack made from broccoli,margherita, Bologna, Pepperoni and Tartufi. Dinner include Antipastowhich is composed of Italian sausage, bone marrow, Tega hillslettuce, Argula and soup. Primi is another dinner buffet thatcomprises Rigatoni, Agnolotti, Cannelloni, Gnocchi and Spaghetti.Secondi is another dinner cuisine offered at Stagioni that isconspicuously different from those offered by competitors(http://stagioniclt.com/).In addition, to these snacks and dinner there are wide range ofdesserts, wine, beer and cocktails selected from European states.

Productpositioning

Stagionirestaurant will positions itself as the reasonably priced, upscalepizza and pasta restaurant. Charlotte customers will appreciate thehigh-quality and fresh Italian cuisines and recognize the value ofthe unique cuisines. The cuisines are targeted to single individuals,families and takeout for individuals aged between 25 to 50 years.

StagioniRestaurant will leverage its competitive edge through:

Product:Stagionirestaurant boasts of fresh and seasonal high quality Italian cuisinedishes. These include handmade Pizzas, Pastas, slow roasted meat,imported cheese, wine, beer, organic vegetables. These are preparedwell by experienced award winning chefs to enhance their presentationand aesthetic appearance.

Services: Customerservice is a value entrenched in the Stagioni’s mission statement.Stagioni staffs believe that excellent dinner services give clients alasting dining experience in addition to well prepared dishes. Allemployees are mandated to undertake specialized training in order togive customized client services (Kotlerand Armstrong, 2011).In this way, by offering superior, fresh and high quality menucombined with superior customer service, Stagioni restaurant willexcel well despite the emergence of new entrants in the market.

Pricingstrategy

Thegoal of Stagioni restaurant is to offer the most competitive pricesfor its unique dishes. The pricing strategy to be used at Stagionirestaurant is set to maximize profits of each unit sold and is alsobased on critical assessment of the market especially the threat ofnew entrants. In addition the pricing strategy used is aimed toincrease the market share of Stagioni within Myers Park and thelarger Charlotte City. Stagioni will use contribution margin-basedpricing in order to maximize profits from individual product(Goldstein,2005).

Theprice is set at 45% of the retail price and is based on thedifference between the product’s price and the variable costsincurred to produce that product. In this case, each product pricingis based on the product contribution to total firm’s profit. Thepricing strategy is more of cost-pricing in which the restaurant willdetermine the break-even price for each product (Kotlerand Armstrong, 2011).This will be done by calculating the total cost incurred to produceeach specific product raw materials, transportation, marketing anddistribution. However, this pricing strategy is dependent on marketevaluation especially competition and the market share dominationintended (Goldstein,2005).To this end, the pricing to be adopted at Stagioni is one that givesmarginal-cost and is market oriented.

Promotionstrategy (marketing mix)

Themain objective of the promotion strategy for Stagioni restaurant isto position and command majority of the market share within Charlottein one year. The marketing strategy will seek to create enhancedcustomer awareness regarding the products and services offered,develop a loyal customer base that in turn attract other customersthrough referrals (Kotlerand Armstrong, 2011).

Marketingmessage:

Thepromotion strategy will seek to communicate Stagioni’s cuisines asfreshest, innovative, healthy and reasonably priced within the MyersPark. This message will be conveyed through various means.

MarketingMix

StagioniRestaurant will also adopt a marketing mix that includes pricing,distribution, advertising, promotion and customer service. Underpricing scheme, Stagioni Restaurant will use the marginal cost andmarket oriented pricing set at 45% of the total retail price. Ondistribution aspect, Stagioni will distribute is product and servicesthrough the take out model in which clients can make orders throughcalls and later come for the pick, or place orders and wait forprocessing or dine at the restaurant. Advertising will rely heavilyon social media, mass media and online advertising. Excellentcustomer service is a philosophical pillar for Stagioni Restaurant.The goal is to make clients happy even at the expense of temporaryprofits but pay off later as clients become loyal.

Marketingvehicles

Socialmedia:The first means involves the use of social media to send directmessages to potential clients social media advertising is relativelycheap. The direct message campaign will be aimed at communicatingdirectly with consumers. Social media offers an important platformthrough which Stagioni restaurant can reach local and distancecustomers. Advertising boards will be set at Stagioni restaurantentrance in which clients will be requested to share and ‘like’Stagioni restaurant on twitter and face book. The objective is tocreate traffic and thus enhance public awareness on Stagionirestaurant(Goldstein, 2005).

Personalselling:personalselling will be used in which existing clients will play an importantrole in selling and recommending products to other clients. Stagionirestaurant will establish loyal clients who will be involved inpersonal selling at a fee.

Onlineadvertisingonline advertising is important in informing potential and existing

Clientson where products are available. In this case, the restaurant willincrease online adverts especially in social media, tourism websitesand government sites. Online adverts target the young and learnedprofessionals.

Massmedia:adverts will be run on major television programs as well as the printmedia such as travel magazines and business daily newspapers in orderto increase the brand awareness of Stagioni restaurant. Mass mediatargets the old people and changes are expected to be higher $ 50per advert for 20 second television adverts and $100 for magazineadverts.

Marketingbudget

Stagionirestaurant faces significant competition in Myer Park from othersmall and large upcoming restaurant firms. However, the market forStagioni Restaurant will be influenced by consumers’ preference,unique products and service. To this end, the marketing budget forpromotional activities will be calculated on percentage method basedon the available resources at Stagioni Restaurant (Kotler andArmstrong, 2011).Budget allocation for marketing is based on tasks required to achievethe brand awareness campaign (Kotler and Armstrong, 2011).Similarly, the amount allocated for each marketing tool is based onthe marketing vehicle used. The available funds for marketingactivities within the first six months are $120 million.

Estimatedmarketing Budget for Stagini’s marketing budget

Marketing vehicle

Time

Amount

Mass media advertising

1 year

$100 million

Social media marketing

1 year

$15million

Online advertising

1 year

$5 million

References

StagioniRestaurant.http://stagioniclt.com/

ThomasJennifer. (2014). “Italian Restaurant Stagioni opens in Charlotte’sMyers Park.” CharlotteBusiness Journal.Accessed fromhttp://www.bizjournals.com/charlotte/news/2014/01/05/italian-restaurant-stagioni-opens-in-charlottes.html

NowickiSarah (2014). “Stagioni’s Debut Season: Bruce Moffet opens hismuch-anticipated Italian Restaurant on Providence Road.” CharlotteMagazine.Accessed from:http://www.charlottemagazine.com/Charlotte-Magazine/March-2014/Stagioni/

Goldstein,D., Lee, Y. (2005). &quotThe rise of right-time marketing,” TheJournal of Database Marketing &amp Customer Strategy Management12(3): 212–225.

Kotlerand Armstrong (2011). Principlesof Marketing,14th Edition. United States: Prentice Hall

PorterMichael E. (2008). &quotThe Five Competitive Forces that ShapeStrategy&quot, HarvardBusiness Review,January 2008, p.86-104.NewJersey: Pearson Prentice Hall.