Marketing project plan For Andes Café of South America

Table of Contents

  1. Executive Summary……………….……………………………………………….……..……3
  2. Company Description……………………………………………………………………….…3
  3. Strategic Focus and plan……………………………………………………………….………4

Mission Statement……………………………………………………………………..………4

Goals……………………………………………………………………………………………4

Competitive Advantage………………………………………………………………………..5

  • Situational Analysis……………………………………………………………………………6

SWOT Analysis………………………………………………………………………………..6

Industrial analysis………………………………………………………..…………………….7

Customer Analysis…………………………………………………….………………………7

Competitor Analysis……………………………………………………………………………8

Company Analysis…………………………………………………….………………………9

  • Market-Product Focus…………………………………………………………………………9

Market and product objectives……………………………………………………..………….9

Target Market…………………………………………………….…………………………..10

Points of difference……………………………………………………………..……………11

Positioning……………………………………………………………………………………11

  • Marketing Product ………………………………………………..………………………….11

Product Strategy…………………………………………….………………………………..12

Price Strategy……………………………………………..………………………………….12

Promotion Strategy……………………………………….…………………………………..12

Place strategy…………………………………………………………………………………13

  • Financial Objections………………………….………………………………………………13
  • Organization………………………………………………………………………………….13
  • Implementation plan………………………………….………………………………………14
  • Evaluation and Control……………………………….………………………………………14

Possible Deviation……………………………………………………………………………15

Possible Solution……………………………………..………………………………………15

Executive Summary

A marketing plan is a business document outlining a marketing strategy and tactics carried out to create a platform for its existence. Marketing is the process of planning and executing the conception, pricing, promotion and also distribution of goods and services to promote the exchanges that satisfy individual and business objectives. The purpose of this marketing plan is to outline various strategies, tactics and also programs that will ensure the sales objectives detailed in the Andes Café business plan a success. The Andes Café, unlike other cafes, will set out to introduce customers to a variety of flavors and also the Aromas of South American foods in a casual and non-threatening environment. Therefore, due to competition in the market experienced in restaurant industry Andes Cafes hopes to set up for itself apart by reaching out to the foodies with curious and discerning palate at affordable prices. Moreover, the Café will also introduce some of the arts and some aspects of sounds that make countries in South America. Marketing will play a significant role in the success of the business especially in its operation within the market.

Company Description

Andes’s Café is located at the heart of historical South end in Boston and has become a staple among the residence the past 11 years of its existence. Previously, it was owned and operated by a Middle Eastern family. It highlights authentic Cuisine like falafel, hummus and also tabouli. However, in November 2014, Andes Café came to a new ownership and made the decision to continue to deliver these customs crafted recipes and also incorporate the personal style of their Mediterranean background. Its mission is to serve healthy and nutritious food with Mediterranean undertones. The café offers a free delivery within a one-mile radius and over for just $10. Andes Café assists to flesh out Houston’s American dining in the mid-range; it is ambitious but moderately priced with a contemporary sensitivity that makes it seem fleshy. This makes the Café an effective alternative between high-end spots such as the Cordua family’s Americas and also fast inexpensive areas like Peruvian Pollo Bravo mini-chain.

Strategic focus and plan

This aspect of marketing plan concentrates on the strategic planning of Andes Café to ensure it becomes a successful business in the market. The three major areas that we will discuss are the mission statement, financial and non-financial goals and also a competitive advantage. 

Mission statement

The Café’s mission is to serve healthy and nutritious food with Mediterranean undertones at an affordable price compared to other Cafes. The quality and variety of foods for ensuring that the all the needs of the customers are provided effectively.

Goals

The financial goals; are responsible to drive higher profits

  1. To obtain an 18% sales increase from the last sales within the next two years. This will enable the Café to expand its operation and open its branches.
  2. To become stable financially in order to increase its product variety and create options for the customers.
  3. Increasing revenue by 20% every year for the first five years of the Cafes’ operations.

Non-financial objectives; aims at improving the business as a whole

  1. To create a workforce of engaged and loyal employees through giving the staff a greater responsibility and also rewarding exceptional work.
  2. Provide quality meals at a good price for the customers.
  3. To establish a demand for business for all countries by providing their special diets.
  4. In the next 5 years, the Café should have another branch in the international market such as in China, Asia, or in Europe.
  5. Have an in-house training program for both new and old staffs to improve their customer relation skills.
  6. Donating money and other material to charitable organizations for the purposes of public relations.

Competitive advantage

The most obvious competitive advantage for Andes Café is the aspect of quality meals. The meals are prepared by professional chefs like Chef David Guerrero and others who have a strong dedication to the quality services provisions. Even though the Chief Chef Guerrero is Ecuadorian by birth he is conversant and has a nimble feel for South American ingredients. Another competitive advantage over other competitors is on the issue of product line and specialization. These are a homey South American breakfast, a humble corn-based snack, respectable coffee and also a tropical smoothie bar. Moreover, the Café has a good location that is visible and also easy to access compared to other competitors of the sane in the market. The Company has highly motivated staffs that are committed to performing quality services to the customers.

Situational Analysis

This refers to a collection of methods that a business uses to analyze its internal and external environment in understanding the capabilities, customers and also the business environment. The SWOT analysis provides an effective and brief description of the present environment where Andes Café is operating. The SWOT provides a description of the strength, weaknesses, Opportunities and Threats of a business. It is perhaps a quick analysis of Café’s position from internal and external forces affecting its operating strategies.

SWOT’S Framework

 StrengthsWeaknesses
Internal ForcesThe Café has a strong relationship with vendorsHighly trained staff who are customer sensitiveA well-structured communication system both internally and externallyAffordable mealsAn accessible geographical locationsThe café has a limited brand equityLimited marketing budget to develop awareness such as advertisementThe struggle to meet up with current and new communication systemRecruitment and training of staffsA costly marketing activities for promotion
External forcesOpportunitiesThreats
 Increasing sales opportunities as the society become familiar with the advantages of the structured communication systemThe capability and chance to lower variable costs through the gainsThe growing market with a significant percentage level of a target market unaware of the Andes CaféThe local people high taste for their local foodsAbsence of local competitorsAn effective geographical locationGood research teamA slump on the economy which reduces discretional spendingOther international restaurants offering the same line of products

b)  Industry Analysis

The aspect of quality and culture has become integral in the society today. The society today has begun liking the local foods as a way of promoting cultural roots. Moreover, the issue of healthy through the aspect of cleanliness has been the talk of the day as customers choose quality and also affordability. Therefore, since Andes Café is constantly in the provision of quality substances, it is becoming most popular as South American people finds their way to the Café.

c)  Customer Analysis

The customers of the Andes Café comes are diverse as some are the majority are local and others are from other continents. The local community is known for preserving their cultural backgrounds through everything such as language and another aspect. They are also known for their quality orientation as part of their life. The international individuals visiting the regions are quality oriented which directs them to the place of quality. Most of the international tourists are from developed nations where quality is a culture.

Competitors Analysis

Food business has increased globally with more than 70% business engaging in food-related staffs. Since food is the most sensitive product to engage in as people are always carefully as they relate all food business to be at the same rate. Andes Café provides the same foods that are offered in the local food stores and restaurant. However, a quality service at Andes Café has been a factor of distinctions from other stores. Other than the official foods, Andes Café offers products such Sandwiches, Brunch, Salads, Smoothies, Desserts, Ceviche and others. Therefore, in conjunction with a good combination based on health and nutrition, the Café has added the factor of quality to create a difference and provide the best to the customers.

Due to an increase in the number of students at the local universities become known globally, food stores are moving closer to the region. For example, there is one that has opened just some miles from Andes Café is Tout Suite Café. The Tout Suite Café together with some which are locally based provides products of some low quality which makes them gain a reputation for low quality at low prices. Therefore, we value the health of customers and that is why quality has been the mission of the Company.

Andes Café does not have competition in food industry along southern America. Most of the food stores are locally based and does not have a variety of products for customer choice. Therefore, because on quality and customer services Andes Café has been at the service of most people both locally and internationally. The availability of good customer service and well-trained staff has made the customers to maintaining coming to the restaurant. However, the entry of a restaurant offering the same services will create another environment through competition.

Company Analysis

Andes’s Café is located at the heart of historical South end in Boston and has become so important among the residence for the past 11 years of its existence. Previously, it was owned and operated by a Middle Eastern family. It highlights authentic Cuisine like falafel, hummus and also tabouli. However, in November 2014, Andes Café came to a new ownership and made the decision to continue to deliver these customs crafted recipes and also incorporate a personal style of their Mediterranean background.

The Café is set to improve the quality of service through staff motivation and training techniques. More to this, the Café wants to engage the locals through public relations and support to the community. This is important to create and improve the relationship between the business and community.

Market product Focus

The section describes the marketing and product development for Andes Café and also provides information about the marketing and product goals and objective, market-product grid, points of difference, target markets, the positioning of Andes Café.

Marketing and product objective

Andes Café’s marketing primary aim is to provide quality products at an affordable price based on customers’ consideration. Moreover, the café exist to provide healthy meals made locally as per the requirements of the customers. Therefore, to achieve this aims, the Café needs to involve the locals to inquire what the types of foods and drinks they would like to have based on the time frames. The café should also consider expanding their stores into a different section with one part of the locally made foodstuff and the other part for international based foods.

The main objective of Andes Café is to promote the Café to the local people and international students around. Therefore, with the advancement of institution attracting both local and international students, the organization will then use that valid chance to provide for all the students. The quality of service on the meals and customer relationships that the café provides is a marketing strategy. Our objective is to provide that homely comfort for the customers through home away from home service delivery. This is done through our qualified staffs who are assigned a customer each for the purposes of focus.

Andes Café has a desire to increase their products to fit all the cultures globally to make each customer visiting feel at home through their meals. Therefore, achieving this will increase the magnitude of sales and have a variety of customers across the globe.

Target market

This is a specific group of customers through which a business aims its product and services. It is a technique in marketing that allows the business to learn more about the needs of their customers. The target market for Andes Café is the local people and also the students from the universities nearby. Therefore, the Café is working hard to ensure that each of the target markets gets the best from their services and products. This is to maintain a steady flow of customers and create customer loyalty through effective interactions.

Point of difference

 There are various features that set Andes Café apart from other competitors in the market. The features are;

  1. Andes Café is the biggest in South America and also close to the locals settlements
  2. The café is the only one that provides quality and affordable products and services
  3. It is the only Café that provides both local and internal food items to fit all people
  4. It provides a variety of products allowing the customers to make choices

Positioning

This refers to a business’s product stands in relation to other firms offering similar products and services in the marketplace. Positioning makes a product or services unique hence the possibility of the customer’s choice. It is the dream of Andes Café to be known in customers mind whenever quality is mentioned anywhere at an affordable price. Therefore, despite the providing meals and other services, the Café also has the objective to be the leading in the customer’s perception. 

Marketing Programs

Product/service strategies

The product and service line of Andes Café is relatively distinct when it came to their preparation and also evident through the actual taste. Basically, we have the following on the menu; Brunch, Soups, Small Plates, Salads, Sandwiches, Signature Plates, Ceviches, Sides, Desserts, Beverages, Juice Bar, Smoothies, Coffee and other items. There are a variety of services that provide such as take away services to enhance the closeness to the customers. Moreover, the menu provides the list of all products available upon request and is easy to read with good fonts. The menu document is updated every day to make sure that the list provided is actually available and the customer can get whatever is the product is on the list.

The Price strategy

The prices of products at the Café are friendly to the customers and both the local and international people can actually purchase something. Basically, the Prices of each product vary based on the composition and ingredient used. The items are chicken Burger $5.90, Beefy back burger 6.90, spicy chicken spaghetti $8.90, Salmon Spaghetti $9.90, Lemon-lime chicken $9.90, Black pepper fish $10.50, smoked chicken sausage $4.90 and others. There are also some discount prices that are offered when one purchases more than one product. The products provided are competitively priced based on taste and freshness.

Promotion strategy

Andes Café has had a good time in the region building its goodwill based on what they offer to the locals and all customers. It is imperative that locally the Café does not need an extensive research based on the goodwill and customer loyalty that has been attained. However, in regards to the development and growth of the region that attracts more business, the Café must begin advertisement to build its name to potential customers around the region. The use of Television, radio and newspaper are viewed by local people hence form a platform of communication between a business and its people. The use of these forms of media not only passes information to the local people but also across the borders. Moreover, Andes Café also uses social media such as Facebook to communicate to the people since the locals use the site rapidly.

Place strategy

Geographical location is very important in marketing since it influences its visibility to the customers and other people around. Andes Café is located at the south where there are few food restaurants. Based on the geographical analysis, there are few restaurants that can possible creating a system for competition affecting much of business operations as major business interacts effectively.

Financial Data and Projections

Andes Café has a number of varieties of financial issues.  Taking the prices of chicken Burger $5.90, Beefy back burger 6.90, and spicy chicken spaghetti $8.90, to determine the price of a common meal. The price is averaged at $15.76. The fixed cost of operation for the Café is $100,000 every year. The unit variable cost is $3. The revenue of the Café is calculated using the Break-even point.

BEP= (FC/(P-UVC)=  (100,000/(15.76-3)= 7835 meals

Revenue= 7835 x 16= $125, 360

Organization

Andes Café is owned by Chef from Ecuador known as Chef David Guerrero. He makes decision-based on management and all aspects in relation to its operations. Therefore, a single management makes it easy in the decision-making process.

Implementation plan

The table below shows activities that will be carried out;

OperationsDates
Promotion through the TV and RadioMay 15th 2018
Interview the locals on how they have seen our servicesJune 10th 2018
Open up staff training systemJune 3rd 2018
Research for an international market gapAugust 1st 2018
Research on some local foods that are not available in the CaféMay 20th 2018
Find out on customer value creationJune 20th 2018

Evaluation

Andes Café has a variety of objects and goals that it must meet.

Possible Deviations

  1. The customers’ loyalty may be wavering and not constant hence possibility of him or her being lost
  2. Another Company may gain entry to the market offering the same products

Possible solution

First is by creating a strong brand image based on quality and enhanced customer relationship to boast their loyalty. Second, is to stand out in terms of quality and new creation.