write a report to the proprietor of the Trafalgar Pub making recommendations for a marketing plan with regard to:
1. Defining the target market
2. Specifying a position statement, and
3. Defining the marketing mix
“The Trafalgar” is a renowned pub cum hotel which is situated in the suburb area of Sydney. The hotel is specialized in providing food, beverages and the gaming facilities. The hotel has the huge resources and a base of skilled staffs. For years the hotel cum pub is dominating the entire pub market and still now, the pub is positioned in the second position in the market. The popularity of the pub or it can be said that the sales of the pub is declining in nature and the pub is recently undertaking the business plans which is required for the pub to regain the number one position in the market. The report is based on the expansion strategy undertaken by the pub and in this respect the target market of the company, the reasons for choosing the target market and positioning strategy of the pub and the future marketing mix of the company are discussed (Pomering, 2014).
Background of the company
The company was started in the 19th century when the suburb area of Sydney was known as a great place for the industrialization. The industrialization is the main factor which helped the pub and hotel to establish itself in the market of the Sydney. The main target customers of the hotel was the workers of the neighbour organizations and with the industrial development the organization also growth up. The hotel was a popular destination for the organization’s workers as the workers liked to prefer the hotel in two different times; one is the launch time and the second one is the after work. Both of the time the workers used to get the relaxation from the hotel and it was a great place for them to enjoyment (Lim and Ching, 2011). Due to the growing cost of the suburb area the industrialization process of the pub has been hampered and the organizations are shifted to the area where the living cost is low. Due to the shifting of the industries from the area and the growth of the new societal background in the area the pub has observed the decline in its sales volume. The workers from the industrial area are moving from the areas where the new sets up of the industry are made. In the outskirt areas of Sydney the owners of the organizations and factories are replacing the manufacturing units to avail the low cost facilities in those areas. The suburb area of Sydney has now got a new class of people and the social structure of the area has changed a lot. In this situation the pub needs to find out the new target customers so that, the position of the pub can be regained. The factories which were there in the market are destroyed and the warehouses are replaced for the official works only. The warehouses and the remaining houses of the factories are using as official work or as an official purposes (Pomering, 2014). The blue colour workers were the main target customers of the pub and recently, the target customers of the pub has been changed.
Projected business plan for the company
Due to the changes made in the societal structure of the entire area it is a big problem for the pub to exist in the present market and to earn a huge rate of profit as the pub has not matched it with the changing need and the changing societal structure. The pub after doing a research on the present environment and market scenario has realized a need to initiate for a new business plan. The business plan refers to an inclusion of the restaurant in combination of the present structure of the organization. The pub has undertaken the second market position and the main competitor has the facility of restaurant also. To become competitive in the market the pub has included the provision of introducing a restaurant by using the unused second floor of the pub. The pub is facing the problem with its present target market and thus the business plan includes the target market for the pub also (Kimes and Beard, 2013).
1. Target market
The target market for the pub is the white colour workers. Looking at the changing dimension of the society, it is decided by the proprietor of the pub to target a new customer base. The area is filled with the young couples as the workers of the factories have gone away in different places and the nearby apartments are filled up by the young working couples who have come in the rent system. The entire area is filled up by the urban people and the urban people demands a better environment from the pub. The survey has suggested that there is no separate provision in the pub for the blue colour workers and for the white colour workers and the blue workers prefer to go the pub frequently as the environment of the pub matches with their personality. Generally, the blue coloured male workers visit the pub on regular basis and the urban young couple feels hesitated while visiting the pub at night. The research also has suggested that the single households, the couples and the other people on shared basis visit the local pubs in the suburb area of Sydney and that situation has been changed after the factories are demolished from the nearby areas and the blue colour workers are mostly replaced by the white coloured workers. The scenario of the company has been changed and the neighbour area of the organization is comprised of the officials of different offices as the entire place has replaced the residences. The characteristic of the residence of the place has been changed entirely and the residence of the place has started disliking the culture of the pub to a little extent (Ryu, et al, 2012).. Now it is required to go through slowly by the pub as the segmentation is first required before doing the targeting of the market. The pub is required to segment the market on the basis of the blue coloured workers and the white coloured workers. In this case separate floors can be used by the pub as it has the strength of available floor space. The new target customers can be chosen from the white colour employees and especially, from the young urban couple who frequently go for the pubs. The new target market can be again divided into two different parts; one is the family and households and the second one is the late night enjoyers and the people who prefer the weekend parties. The old target market will be remaining same but, the old target customers can be attracted by providing some more facilities and the provision (Solomon, et al, 2012). The single and the young people along with the couples can be grouped into the late nighters and the party lovers (Pomering, 2014)..
2. Positioning of the company
The company would like to position itself on the basis of the current position and the offerings of the company. The company wants to look into three different aspects and those are, the environment that it is going to offer to the target customers, quality food and beverages it is offering to its customer base and the varied gaming facilities (Blythe, 2013).
3. Marketing Mix
The marketing of the pub which also includes the restaurant facilities are shown below:
Product: The product of the pub includes the snacks, the dinner items and the liquors. As the pub is including the facilities of the restaurant as looking at the new market demand it is planned to include the dinner items including, the fresh salad items, the potatoes baked, fish products, chicken products ( grilled chicken, roasted chicken, kabab etc), the snacks items including the crispy chicken, chips, different types of sandwiches and chiko ball. In the desserts, the ice-cream, tea and coffee will be available. In the alcohol segment now the pub is offering only the beer but, the demand is there for the hard alcohol items also. The imported drinks and the mock tails are also kept in the product line of the pub in its new business plan. For the gaming part 15 more poker machines are going to be introduced by the pub (Gössling, et al, 2012).
Price: The price of the product is initially kept as medium in range and it is kept in competitive in nature. The market competition is very high and the main competition of the pub comes from another pub which has the restaurant facility and which is situated in the nearby area of the pub. In order to compete with the competitor the prices are kept as low. In this respect it can be said the pub is following the going rate pricing strategy. As the strength of the company is that it has full information and data base regarding the customer and its competitor so while deciding the price of the products it can compare with the prices of the competitors and on the basis of the competitor’s prices the restaurant can fix the prices.
Place: The place in this case is remained same and the only difference is the organization can utilize the extra available space of the pub. The second floor of the place is remained empty and the pub can use the second floor of the entire place. The first floor is used for the purpose of serving the blue coloured workers and the second floor is kept for serving the white coloured employees. From, the market research it is evident that the pub is specialized in providing services to the blue coloured workers and the positioning strategy of the pub was based on that concept only. This is the reason the serving place of the two separate segments has been divided.
Promotion: In case of promotion in the pub cum new restaurant, the existing customers are informed about the renovation of the pub and the new customers are attracted through calling them to provide invitation for coming into the pub cum restaurants (Shimp and Andrews, 2013). The handouts should be spread in the nearby areas to expand the information that the pub is going to renovate and the new menu and new environment is going to be implemented. In the promotion it is required to be informed that the timing of the pub has been increased and the party lovers are also invited (Okamoto and Polger, 2012).
Process: The pub is going to improvise the new process where every customer will be approached for the feedback as the pub has already a negative image regarding the staff behaviour. Now it is the time to resolve the issues regarding the staff behaviour and it can be possible through providing the feedback form to every customer.
Physical evidence: It is also evident that, the people do not want go to pub for finding out new friends but they want to find a place where the friends can be gathered together and they can enjoy the free time away from the hectic life. Physical evidence for a pub or for a restaurant is an important aspect and the physical evidence includes the areas where the interior and the exterior decoration, the music system and the environment of the pub. To recover the environment of the pub, the pub has decorated in a way so that, people can get more space to gather together. The environment should be comprised with the mild music so that, it does not sounds so noisy (Gössling, et al, 2012). To correct the existing environment the introduction of the no-smoking zone is required.
People: The people are the major resource for the satisfaction of the customers and the people should be educated enough through the help of the training and development.
The company has the resources to utilize the empty space of the pub and the restaurant offerings are also required to be added. The total process of renovation should be passed on the employees also through providing proper training, the target market can be divided into three different segments; one is the household and family members, one is the young couples and the single people and the third one is the blue coloured workers. The pub is positioned itself as the quality provider.
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