MKTG 1012-05

November 27th, 2014

Mrs. Angela Keating
Dakota Daley, Paul Simani, Eric Hooper

SWOT Analysis
Strengths:
-We have a wide variety of food and drinks, so we appeal to people of all tastes.
-We offer discounts at lunch, allowing us to bring in some business during the slow hours.
-We plan to hire a professional chef, allowing us to make a name for ourselves through our food.
-We offer relatively cheap food compared to other bars, considering the level of our chef and
the ingredients we use.
-We are in a good location, with lots of potential customers (many of which work and live in
area, and are our target market). Also located one bus ride away from Fanshawe and Western,
so we are easily accessible to students as well. (which are our second target market)
-We offer themed food nights, which will appeal to people who like to try new things or
experience different cultures, and is something that few businesses have tried to do.
Weaknesses:
-Business will be slow at lunchtime, as our target market will be less likely to visit during these
times. (Due to school and work hours)
-Students only in London 8 months of the year, as they have a 4-month summer vacation, so
business will decrease during the summer months with that specific group
-A chef trained in multiple types of food will be expensive to keep
-By choosing to get ingredients locally, we will have higher food costs when compared to other
bars and restaurants.
-Due to the young, social atmosphere of our bar, we do not appeal to older people, and will not
bring in much income from that group.
Threats:
-There are already many bars in downtown London, with established regular customers who
are unlikely to switch to our bar.
-Both Western and Fanshawe have their own bars on Campus, so they could avoid a bus trip by
simply going to those bars. They are a huge threat to taking our potential customers
-there are many well-established bar and grills here in London, with locations all over the place,
such as Crabby Joes
-School costs are already high, so students might not have as much spending money to go out
to eat or drink at night

-By having themed food nights, some people might avoid our bar on certain nights, as they
dont like the food being offered. (Ex. Not everyone likes sushi, so they might avoid our bar on
that night)
Opportunities:
-There are few bars here in London that focus on a variety of food
-We have a very specific target market, and dont really target the older age group, so no need
to focus on advertising to the masses
-Our discount lunch specials might be popular with young professionals who are on their lunch
break, or with students who have a couple hours to go out for lunch
-Our food will be of a higher quality than most other places in the area, due to the local
ingredients we use, as well as the level of our chef.
Competitive Analysis
As far as here in London, we have 3 main sources of competition:
1. The Spoke and Rim Tavern/ The Wave
These are two of the most popular bars/restaurants located on the Western
University campus. The Wave is more of a restaurant than a bar, but serves good
quality, pricier food and wine, so as far as quality of food goes, they are similar
to us, but have us beat when it comes to location, as they are much closer to a
large population of students than we are. They serve what would be considered
classier food, such as salads, soups, and wine, while keeping classic food that
appeals to the average student, such as burgers and fries. They tend to spread
their name by word of mouth, and by being highly recommended by Western
students through social media. They also offer a unique service where you can
book the bar for a special occasion, such as a wedding, and they will also cater
for parties or other special events. Overall, the Wave gets their name around and
continues to be successful through their good food, unique service offerings, and
their prime location.
The Spoke, on the other hand, emphasizes a fun, social atmosphere. They host
various weekly events, such as a quiz night on Thursdays, showing sports games
such as hockey or football on Mondays, a live in-house band every Tuesday, and
coffee house night on Friday, Saturday, and Sunday. By doing this, they provide
social, fun, and friendly environment, which goes along with the school spirit of
Western, and is very popular with students as result. They also have the
advantage of being located on the university campus, and are advertised
through social media, Westerns school paper, and by word of mouth. With all of
these things, The Spoke has become a very popular spot for students, and will

be competition for our bar.

2. The Out Back Shack
This is the bar and grill located in Fanshawe College. Like the ones listed above, it
greatly benefits from a prime location- inside the school. Where the restaurant
excels is that its food is quite cheap in comparison to the other two, and due to it
being in the school, it gets a larger lunch crowd than the average bar. Like the
two bars above, a lot of its advertising is word of mouth; however, it also has ads
in the school newspaper as well as in the planner every Fanshawe student
receives at the beginning of the year, so it is able to stay popular, and remains a
good choice for a place to grab a drink. Also, it too has events on weekdays. For
example, tonight (Nov. 27th) they are showing a few of the Thanksgiving Football
games, which should bring in a decent crowd, as many students dont have
access to a T.V, and it is a lot easier to go to bar to watch a football game than
try to stream it online. In conclusion, The Out Back Shack is a very popular bar
among Fanshawe students, and as result, is a threat to our restaurant.
3. Crabby Joes
After some consideration, we decided that Crabby Joes was likely our biggest
threat as far as the Young Professionals segment was concerned. Much like the
other bars listed here, Crabby Joes is open at lunch, and as result, tends to be
popular with working people who have a little time off for lunch. Unlike the
other bars, it is not located near a school, so it is not a huge threat for stealing
our crowds; however, one thing that puts Crabby in a good position is its food
offerings. Crabby Joes has a wide variety of food, and while some of it is
expensive, there is one menu item that is very popular: The Crabby Platter. This
is a relatively cheap item, and basically gives customers a variety of different
appetizers, and is typically purchased by those looking to drink, but who want a
light snack along with it. Crabby Joes also offers various different discounts to its
customers, such as allowing kids under 12 to eat free on Sundays, having a VIP
club that gives various discounts on certain days (ex. 39 cent wings on Tuesdays),
or even activities to interact with customers, such as its own hockey pool. By
doing these things, they are able to draw in a variety of customers, and because
it is a chain of bars, unlike the school bar and grills, it has multiple locations, can
offer food at a cheaper price without losing money, and has a definite edge
when it comes to customer awareness. Overall, Crabby Joes is a huge threat to
our restaurant, and if we arent careful, it could put us out of business.

Customer Segmentation Analysis

Customer

Geographic

Demographic

Psychographic

Benefit

Usage-Rate

Segments/Seg
mentation
Bases
Students

-A majority reside
in or around
university/college
(north end or
east end)
-many foreign
students, who
live in London for
school, but
elsewhere when
out of school

-18-24 years old

-single or dating,
almost always
unmarried
-mix of male and
female
-46,000 full-time
students,
contribute on
average $4000
each to local
economy, $880 of
that to eating out

-want to socialize
and unwind from
academic
endeavours
-go out on
weekends, due to
no classes, so its
their best time to
relax and meet
new people
-like to meet new
people,
experience new
things
-put priority on
selves and their
friends

Young Families

-located all over

city, but many in
Hyde Park,
Hamilton Road,
and White Oaks

-couples aged 2935

-married, living
together, many
have children
-dual-income
families
-lower
incomes/disposabl
e incomes
compared to other
groups

Established
Adult Early

-tend to reside in
the Hyde Park
area

-adults aged 36-49

-largest group, by
population
-increased income
and disposable
income

-due to having
children, they are
time-strapped
and value
convenience
-children come
first, much of
income spent on
them as result
-value
reinvigorating
activities when it
can fit on
schedule
-put a lot of value
on new
experiences, and
spend much of
income on food
and
entertainment

-look for
products/servi
ces that allow
them to
unwind/relax
-tend to look
for
convenience
food, etc, as
they eat out a
lot (many
dont cook
much)
-close to
where they
live, as many
dont have
transportation
besides the
bus
-look for
healthy foods
for children
-like things to
be quick and
convenient
-value things
that are
inexpensive

-buy what is familiar, so

might be medium or heavy
users
-follow what products are
considered popular, stay
loyal to them
-if something new becomes
popular, prime target to be
a potential/first-time
consumer

-prefer unique
things that
they havent
tried before
-as they eat
out a lot, they
also enjoy

-always open to trying new

things, so they are good
potential/first-time users

-buy whatever is cheaper,

healthier, etc
-tend to be heavy users of
what they buy

-eat out more

than any other
group

Established
Adult Late

-many live in the

Masonville area

Young
Professionals

-mostly live in
and around
downtown core

-adults aged 49-59,

most established in
careers
-grown children,
many of who fall
under Student or
Young
Professionals
segments
-highest average
income, and
highest disposable
income
-adults aged 22-28
-fresh out of
school, and just
starting careers
-unmarried, no
children, many live
with roommates or
in multi-dwelling
units
-low income, but
much of that
income is
disposable, so
disposable income
is high compared
to other segments

-more free time

than any other
group
-more mature,
have refined,
sophisticated
tastes
-value
connections to
community and
the environment

-value friends,
socializing, and
dating, and they
are a major part
of this groups
lifestyle
-similar to
students, in that
they like to
unwind from
stresses of new
career

things to be
convenient,
and not too
timeconsuming
-want to be
entertained
environmental
ly friendly
-helps support
local
community
(for example,
places that
donate % of
profits to
benefit local
sports teams)
-like to meet
new people
and socialize
-value social
activities, look
for them
-want to be
entertained
through
interactions
with others

-tend to be heavy-users, and

stick to what they know
-high brand loyalty
-former users too, as they
may give old products
another chance

-usually have some

preferred brands, so are
mostly medium/heavy users
of certain products
-migh become
potential/first-time
consumers if new
opportunity to meet people
arises

Students- If we were to choose this group for our target market, one of the key things needed
would be to establish ourselves as a popular spot for socializing and hanging out, while being

reasonably priced. We would need to put an emphasis on our unique food offerings, and find a
way to appeal to a variety of different people. If we are able to make ourselves seem to be the
cool place in town, while being located close to the school, we will be able to easily pull in this
group of people, and with what we plan to do, this is the perfect group to target.
Young Families- To appeal to this group, we would definitely need to be a healthy, cheap
restaurant, that encourages people to eat out with their children. As this group tends to value
their children above all else, we would need to try to make our restaurant be appealing to
children, through our advertising, our actual building, or by our type of food. Children do not
each much variety, and stick solely to what we like, so we would need to have a simple menu.
Also, children struggle to sit still for long, and as such, a restaurant where you sit and socialize
for extended periods of time wouldnt work. For what we have in mind, this group is very hard
to appeal to.
Established Adult Early- To appeal to this group, we need to emphasize new experiences, such
as unique food, or a lot of entertainments. These people like to try new things, and will spend a
lot of money for good entertainment and a unique atmosphere. Although what we plan to do
will fit the uniqueness/variety with our food, we really have no plans to entertain, and as result,
would not really appeal to this group of people. However, if we were to introduce things such
as a Quiz Night or hire a lot of bands, comedians, etc. to perform at our bar, this group would
be a prime target. Unfortunately, because of how expensive that could potentially be, this
group isnt the right group for us.
Established Adult Late- To appeal to this group, we would need to emphasize supporting the
local community, while being environmentally friendly. To do this, our best bet would be to not
use any disposable utensils, etc., and to get our ingredients locally. Also, as this group is older,
they tend to value a sophisticated, refined dining experience. While our restaurant/bar fits
some of those criteria, we do not intend to be a high-class restaurant, and have instead decided
to focus on a social, relaxing atmosphere, so we will not appeal to this group.
Young Professionals- The main thing needed to appeal to this group is an atmosphere that
encourages a social, fun, and relaxing atmosphere. More than anything else, this group wants
to interact with other people, and meet potential people to date/ pursue a relationship with. As
result, they are not as picky with food and drink as opposed to other groups, and if we can draw
in a few young people, many others will follow. As result, we believe this to be another good
potential market for us to target.

Target Market

The target market our group has chosen to focus on are students and young
professionals. We have chosen these target markets because our bar and restaurant theme fits
perfectly with the young crowd. Not only do both these groups have high disposable incomes,
they also both desire a sociable, relaxing atmosphere, where they can enjoy themselves with
friends for a reasonable price. Both students and post-graduates are welcome to enjoy a casual
atmosphere that invites them to meet new people in the bar section. The seating area is
perfect for young professional meetings during dinner and for students during lunch or dinner
specials. By targeting a younger crowd.
One of the main factors we considered when choosing our target market was which
group we believed was most likely to go out later at night. We figured a bar and grill would be
more profitable, due to the amount of potential profit we could make from the alcohol sales,
and alcohol is usually sold at night, so targeting a night crowd made the most sense to us. As
result, we figured that out of all the groups, the young people would be most likely to go out at
night, as they are busy during the day, and look for ways to unwind during night and on
weekends. After deciding they would be a good target, we noticed that both groups value
socializing, and look more for a unique, sociable atmosphere than anything else. With all this
taken into consideration, we decided that these groups would be the best ones to target.
Mission Statement
Roulette is a drinking and dining establishment dedicated to providing high-quality food
and drink in a sociable atmosphere for customers who seek a fun, casual dining experience. The
bar and grill will make a healthy profit for its owner which will provide sustainability over the
years, allowing it to slowly expand and increase its advertising. We also maintain a friendly,
rewarding work environment for our employees, which provides respect and safety, as well as
job security.
Location/Name/Floor Plan
When deciding location, we decided to open our restaurant in the Downtown CoreSouth. While we originally planned on opening it in the north end of downtown, we decided
against it, because of the extremely high costs of property. By opening our bar near the south
end, around Budweiser Gardens, we still manage to stay in between both Fanshawe and
Western, while being in the area where many of the young professionals live, and at the same
time, save a lot of money for property. This area is currently growing, with more and more bars
and restaurants opening, as well as more multi-scale apartments, meaning it is quickly
becoming another area with a busy night-life. Also, due to it being located near Budweiser
gardens, we will get a high influx of foot traffic after events such as hockey games, concerts,
and other special events. Many of these events happen late at night, and by the time they finish,
many people desire a good place to get a cheaper drink, especially since the price of alcohol in
Budweiser Gardens is very high. On weekends, this area is extremely busy, and between the

fact that our target markets have time

off on weekends, and the various
events that occur at the Gardens
during the weekend, we have the
potential to be extremely profitable.
As far as our name goes, we
decided to call our bar and grill
Roulette. We chose this name
because for one thing, one of our
regular specials are called the
Roulette Wings. Basically, when you
order these wings, you receive 12
wings, and approximately 1 in 12 wings
is coated in a sauce that uses the
Carolina Reaper as its main ingredient.
This pepper has a rating of 2.2 million
Scoville Units, and according to the
Guiness Book of World Records, it is
the hottest pepper in the world.
Basically, much like the game of
roulette at the casino, you have a very
slim chance to win, or in this case, to
lose. Another reason why we called
our bar and grill Roulette is because
of our wide variety of food. Much like
a roulette wheel has many numbers,
our restaurant offers many different
The floor plan for Roulette

types of food through our themed

food nights, which we believe will
differentiate us from every other bar. Lastly, we decided on this name because we found it to
be pretty catchy, and makes people curious about what our bar is about.
Pricing
After some consideration, we have determined that for our business, the best pricing
strategy would be to have a combination of revenue-oriented pricing and patronage-oriented
pricing. By using some revenue-oriented pricing, we can put a focus on maximizing the surplus
of income over costs, specifically through our sale of alcohol. When we sell draft beer or mixed
drinks, its difficult to predict exactly how much alcohol is going into every drink, as sometimes
bartenders might over-pour or under-pour mixed drinks, and the amount of foam in a keg of

draft beer greatly influences the amount of foam, which changes the amount of beer you can
get out of it. Due to these variables, we cant predict our exact profit, so using revenue-oriented
pricing would be the best for this situation. To implement this, we would need to calculate cost
using the costs of bottles of alcohol and pop, as well as the price of a keg. By doing this, we see
the minimum price necessary to break even on these, and we can then simply estimate how
many drinks we could make using our alcohol supplies, choose a percent profit we want to
make, and then base our prices around those numbers. For example, lets say we spend $1,000
on alcohol, kegs, and pop. We figure that each drink costs us on average $2 to produce,
meaning that we can make a total of 500 drinks. Lets say we want to make a 300% profit on
every drink, meaning we would charge $6 for every drink we sell. By selling our drinks at $6
each, we end up making a total of $3,000, which gives us a profit of $2000 on those 500 drinks.
Of course, not every drink would be priced the same, and there might be some nights that we
dont sell quite as many drinks, but when we use such high percentages/markup (which is
standard for a bar) we simply need to sell a small amount of drinks to make our money back. In
this case, selling 167 drinks would get our money back, anything else after that is profit.
We would also try to implement some patronage-oriented pricing. Our main way of
implementing this type of pricing strategy would be with our lunch specials. Our main target
markets, students and young professionals, both are busy during the afternoons, and unless we
are located really close to where they work/study, they are unlikely to come to our bar for
lunch. Therefore, we need to use a pricing strategy that makes it in their best interest to come
for lunch, and for us, the most effective way to do this would be to offer cheaper lunch specials,
that can beat out many other places, and encourage people to come to our bar and grill for
lunch as well as late at night. Specifically, we could adopt a strategy like Crabby Joes and their
Crabby Platter, which is basically an assortment of appetizers for a cheap price. In our case, we
could focus on a combination of our more unique foods, such as some of the ones we usually
only offer once a week. Since lunch hours are not typically as busy as late night, it allows our
chef to cook food that might take longer to prepare, as he isnt as pressured and busy trying to
get food out in a timely manner. We could also allow for deals such as free drinks with any
orders over $8 before 5 PM. With deals such as this, people will be more encouraged to come
to our place for lunch, and although offering discounts cuts into our profits, it gets more people
in the door, and hopefully, we can get them to spend that money on other things in our
restaurant. Basically, by adopting this strategy, we can focus on getting them into the door and
spending some money, and hopefully encourage them to spend more money while they are
there, maybe even more than they would have had there not been a discount.
Product
We believe that contrary to many bar and grills, ours is unique in that we focus on
producing a wide variety of very high quality, unique food, that is different from any average
bar. For this reason, we would hire a top-notch chef, in the hopes that his/her cooking could
bring people to our bar and grill, regardless of price. One of our main ideas was to introduce a

special to our restaurant, which in this case would be our Roulette Wings. For $12.99, you will
be able to get 12 wings, coated in our barbeque sauce that is made in-house, by our chef.
However, what makes these wings appealing is that 1 in 12 of the wings is coated in a sauce
made using the California Reaper pepper. This pepper has a score of 2.2 million Scoville units,
and is the hottest pepper on earth. By doing this, it introduces our consumers to something
unique to us, and is one of those things that most people will try at least once, due to a bet with
friends, or just to experience it. We would also give out something like a free drink if you
manage to finish all the wings, since it would be very difficult, and might encourage more
people to give it a try.
The other way we would differentiate ourselves using our food would be to introduce
what we refer to as Themed Food Nights. Of course, on these nights, we would still need to
offer some regular bar food, in order to not discourage people from entering, but as a bonus,
we could add a variety of unique things to our menus on certain days of the week. For our bar,
we decided that we would have 3 different-themed food nights: Mexi-Mondays, Taste of
Asia Tuesdays, and Thursdays in Europe. We believe that by offering different food choices
on certain days of the week, it will encourage people to visit our bar on those days, as you can
only get those types of foods once a week. At the same time, we hope that it pulls in customers
who might not have visited our bar and grill if we didnt have those kinds of food. Lastly, we
believe that by having themed food nights, it could increase business on nights that might not
always get the most business, such as days in the middle of the week. Overall, we believe that
this is the type of service that would be unique to our bar, and as result, would generate a lot of
business, and draw people away from other bars and into ours.
Some of our Menu Items:

The Roulette Wings-$12.99

An order of 12 of our specialty wings, coated
with our secret barbeque sauce, made in-house by
our chef. One in 12 of these savoury wings is coated
in a sauce made from the Carolina-reaper pepper,
said to be the hottest pepper in the world. DO NOT
TRY THESE IF YOU DONT LIKE SPICY FOOD. (Note:
you are welcome to order wings and specify to not
have a spicy one mixed in)

Perogies n Sour Cream- $16.00

One of our weekly specials, our classic
Perogies n Sour Cream is a hit with
everyone. Topped with bacon, and with
sour cream on the side, they are a hit with
both meat lovers and vegetarians alike! Our
perogies are stuffed with cheesy mashed
potatoes, which are made by our chef
specifically for our Thursday Nights in
Europe. Order comes with 10 perogies,
your choice of either carrots, broccoli, or
spinach, and a small drink.

Seafood Curry Plate- $15.95

One of the specials on our Taste of Asia Tuesdays,
this dish consists of stir-fried seafood (shrimp, etc.)
and vegetables in a Japanese tomato curry sauce.
Comes with a side of white rice.

Mountain o Nachos- $12.99

This popular dish from our Mexi-Mondays consist
of a heap of crispy nachos bathed in cheese, beans,
tomatoes, onion, and with sour cream on the side.
Great to share with friends!

Classic Burger n Fries- $9.99

A hit with everyone, our classic burger and fries combo! The burgers are freshly made by our
chef every day, and come topped with cheese, lettuce, and tomato, with your choice of any of
our condiments.(ketchup, mustard, mayonnaise, and hot sauce) Comes with a side of fries and
a pickle (sliced or whole, your
choice) Extra burger toppings $1
each
Extra Toppings ($1.00 each):
-Double Cheese
-Bacon
-Mushrooms
-Hot Peppers (Red and Green)
-Onions (Fried or Raw)

Marketing Communications Plan

For our restaurant, we have decided to focus on a few main methods of advertising. We
hope to be able to break the $30,000 into various types of advertising over the course of one
year, and based on the success or failure of our bar, we will increase or decrease the advertising
budget. Although $30,000 seems like a lot for advertising, we hope to not spend it all this year,
and instead hope to spend maybe 40% of that money, or $12,000, so we can make this budget
last for a minimum of 2 years. However, as it will be our first year of business, we believe it to
be important to get our name out there, so if we have to spend a lot on advertising our first
year, we will.
Method 1:
Our first method of advertising would be through the local newspaper; in this case, we
would try to advertise through The London Free Press. For a regular newspaper ad, it costs on
average $200. (for a medium sized advertisement, that would appear on the side of a news
article) At this price, we could easily post a couple ads a month, and still have a lot of money

left over for other methods of advertising. However, advertising more than a couple times a
month in the newspaper would be very costly, so by running only a few ads, we get our name
out, while saving a bit of money to advertise in other ways.
Cost: 36 ads (12 months, 3 ads a month) x $200(per ad) =$7200, so we have $4,800 remaining
Method 2:
Our second method of advertising would be through the radio, although not in the way
you would expect. After doing some research, we found that advertising on the radio during
prime-time is very expensive: about $250 per 30 second ad. Unfortunately, that is out of our
price range, as unless we could afford to run ads for months at a time, I dont believe it would
be effective. However, radio stations regularly do giveaways, and events at places such as
universities, other schools, or sporting events, so we could try to sponsor some of these events,
and get our name mentioned through those activities. If we were to give up approximately
$3,000, we could likely sponsor multiple events, and have our name mentioned multiple times,
which could greatly increase the number of people who hear about our bar.
Cost: $3,000, so we have $1,800 left
Method 3:
Another method we could use would definitely be social media, and by making our own
website. By doing these things, not only do we get to advertise for almost no money. (Stuff like
Facebook groups are free, and a website can be opened for as little as $10.00 monthly) Social
media is a key part of advertising in this day and age, especially since our target-markets are by
far the most tech-savvy, so by making a page on Facebook, we could generate a lot of traffic,
and can advertise special promotions, discounts, etc., for no cost. We believe that a key way to
bring in people, especially our student segment, would be to reach them through social media,
and have a high presence online. Overall, this would easily be the most cost-effective way to
advertise, and is a necessity to be successful
Cost: $200 per year to keep website open, so $1600 left over
Method 4:
The last way we could advertise is by approaching school newspapers at Western and
Fanshawe, and seeing if they would be willing to run ads for our bar, or even write a review.
Due to the fact that they are school newspapers, they do not reach nearly as many people, and
as result, advertisements would be a lot cheaper. Also, we could approach Fanshawes radio
station, and see if it would be willing to run some ads for us at a discount. Lastly, we could look
into putting some coupons into the planners that are handed out at the beginning of the year,
as many different businesses offer coupons to students to try to get them to come to their
businesses, and if we do the same, we will also get that exposure. As a whole, we could use the

remainder of our budget to try and convince schools to post ads for us, as not only are they
cheaper, they only reach one market-our target market- and as result, are much more efficient.
Cost: The remaining $1600, meaning we have spent out $12,000, and have $18,000 left over for
the future
As a whole, I believe that these methods of advertising are the best way to get our name out
there, and to draw in business. While there are many other methods, such as bus
advertisements, many of them are quite expensive, and we would have to spend the whole
$30,000 to maintain them for any extended period of time. With that in mind, we decided that
instead of piling our entire budget into a single effective way of advertising, we would spend
less money and attempt to use multiple ways of slightly weaker forms of advertising to try and
achieve the same effect. By doing this, we hope to pull in more business, and have enough
money left over to cover next year, or to greatly increase future budgets.

References
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