HIGHER NATIONAL CERTIFICATE IN BUSINESS

ASSIGNMENT BRIEF

QUALIFICATION: B.TECH HNC BUSINESS UNIT NO AND TITLE: UNIT 4- MARKETING PRINCIPLES STUDENT NAME: MATTA. YESWANTH KUMAR ASSESSOR NAME: SWATI RAGHUPATRUNI DATE ISSUED: ___________DEADLINE:__________SUBMITTED ON_______

ASSIGNMENT TITLE: A REPORT ON DEVELOPING PRODUCT MIX FOR FOOD LAND INDIA

GAYATRI VIDYA PARISHAD

A REPORT ON DEVELOPING PRODUCT MIX FOR FOOD LAND INDIA

STUDENT DECLARATION
I certify that the work submitted for this assignment is my own and research sources are fully acknowledged.

M. Yeswanth kumar

Student signature

Date

Introduction
Food Land India has decided to launch its restaurant in Andhra Pradesh. In order to gain market in Andhra Pradesh they should analyze the market in this state and develop a Marketing Mix. This includes planning the price of products, the type of products they have to offer, the promotion strategy and developing separate marketing mix for different segments. Now let us see how this is to be done.

Objective
The aim of this report is to project how marketing mix can be developed to sustain competitive advantage. This includes how to Develop a product to provide customer satisfaction, Set price according to market conditions, Promote the restaurant and the importance of promotion, Organize distributional channels to build customer relationships, Develop extended marketing mix and its importance.

Research Methodology
Secondary data: The report is based on secondary data collected from text books, online journals, articles, websites and published statistical evidence.

Case Analysis and Interpretation Vision

Apart from offering everyday fast foods Food Land India offers amazingly fresh food at competitive price. Food Land India has a keen eye on health consciousness. Apart from Food Land India renders much hospitality service. Their aim is to provide healthy food and service all the time.

Mission
Food Land Indias mission is to ensure best possible experience for customers when they leave with a positive opinion about their experience. Food Land India is dedicated to serving customers fast and efficiently. Their mission is to provide healthy, nutritious and delicious food and render friendly affordable service.

Goals
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To establish strong customer relationships. To provide customer oriented atmosphere and be a quality restaurant. To make profits within 2 years so that we can improve our service and expand into other parts of market.

Marketing Mix
The specific elements that make up your marketing strategy are typically referred to as the marketing mix. Each element can be varied to broaden the appeal of products and services, and will therefore have a direct impact on sales. The Marketing mix or the 4ps of marketing is crucial to the success of a restaurant. These 4 Ps are known as the physical elements of the marketing mix, because they are tangible and can be touched The Marketing Mix includes the basic tools used by marketers to sell goods and services to target customers. These are

Product

4p's

Price

Promotion

Place

(1) Product: developing product to satisfy customers.

This includes maintaining the quality of food items (even in times of scarcity of an item in the featured menu, or if costs should spike suddenly);

(2) Price: setting prices according to market conditions.

This includes pricing food (menu items) appropriately for the market.

(3) Place: selecting proper market place.

This includes having a good location.

(4) Promotion: bringing our business near to consumers.

This includes utilizing promotional tactics to encourage repeat customers and to encourage new business.

How to develop products?

Product positioning strategies have become more finely tuned to customers needs and perceived benefits. It is a bundle of benefits that is being delivered to meet the needs of your customers. You must determine what your customer's needs are and design a product that will fulfill those needs. This restaurant has good brand name in north India and well known for its exceptionally good food and hence people come to sample it. The product is more than just the food and drink. In a restaurant that includes the menu items, merchandise, service, atmosphere and the whole experience of dining out. Your menu must include regional varieties like idly, vada, dosa etc. Offering new items like north Indian dishes really attracts customers.

How to set prices?

Pricing is extremely important in marketing because, along with quality of product, it influences the perceived value of what you offer to your customers. It is better to go for value-basedpricing. It is basically the amount a customer is willing to give up to obtain a desired product or service. Choosing the right price for your products or services will help you to maximize profits and also build strong relationships with your customers. By pricing effectively (by analyzing costs, market and demand) you will also avoid the serious financial consequences that can occur if you price too low (not enough profit) or too high (not enough sales). Pricing is to achieve a number of different objectives. These may be to:

Maximize profits Achieve a target return on investment Achieve a target sales figure Achieve a target market share Match the competition.( businesscasestudies.co.uk)

Pricing Strategy Considerations

costs market demand profits

Objectives
target sales competition

Your overall pricing strategy will depend on your marketing, business and lifestyle objectives. Before you start researching, define your income (and net profit) aspirations. Your prices for local varieties like idly, vada should not be too high than that of other local restaurants.

Example
McCain uses a range of pricing strategies associated with adding value for money. For example, 'extra-fill' packs can give the customer up to 30% extra free. This rewards regular buyers of a particular product. McCain may also offer its products at a special promotional price using pricemarked packs to encourage people to try the product.

How to select place for restaurant?

Place represents the location where a product can be purchased. It is often referred to as the distribution channel. This may include any physical store as well as virtual stores (such as eBay) on the Internet. Place refers to not only the location of your restaurant, but to the characteristics and demographics of the trading area and all of the people and competition that exist inside of it. Place should be constantly evaluated with an environmental analysis. Being in the right location can be a deciding factor in whether a customer buys from you or not. Launching near colleges, offices, hospitals, parks, theatres, railway stations, bus stations, tourist places, stadiums, and busy streets will really click.

How to promote your restaurant?

Regardless of how good your business is, if you dont promote it and tell people you exist its unlikely you will make many sales. Promotion is more than selling and advertising your business. Its about attracting the right people to use and reuse your business. It includes all the tools that you utilize to communicate with your customers i.e. Advertising, This includes ads in news papers, social networking sites, banners etc. Personal selling, This includes meeting people personally. For example you can take order for catering by meeting personally. Sales promotion, This includes arranging contests and giving small prizes, musical nights, theme dinners, mike night, sports night, happy hour etc. Direct marketing, and
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This includes offering best goods and services to customers who enter your restaurant and make them satisfied. Public relations. This includes building loyal customers, sponsoring, charities etc.

With the advent of sophisticated multimedia opportunities, marketers have expanded their ability to communicate with their target audience. Fortunately, technologies have leveled the playing field.

Success story
Customer Situation A Label Works partner was challenged by their fast food restaurant client to help launch a promotion that would result in more dinner hour sales. The distributor suggested concentrating on their loyal lunch crowd customers and advertising the new 'happy hour' promotion to their drive-thru customers, advertising on the bags and packaging. Solution Working with the Label Works customer service team and advised by internal design artists, a bright full color label was developed to catch attention and deliver the message of the new evening promotion. A label proved to be an economical solution that could easily integrate into the current packaging and delivery system. The restaurant saw their dinner sales increase and met their promotional objectives as a result of this effective and affordable advertising piece. (navitor.com)

Separate marketing mix for different customers

One of the important features of marketing Mix is that we cannot apply the same Marketing Mix for all the segments. One should analyze the marketing mix of each segment and act accordingly. Marketing Mix of one segment may not match to that of other. Planning 4ps based on the segments bring long term profits.

Extended Marketing Mix and its importance

The additional Ps have been added because today marketing is far more customer oriented than ever before, and because the service sector of the economy has come to dominate economic activity in this country. These 3 extra Ps are particularly relevant to this new extended service mix. These include

process people physical evidence

7p's
People
These are the people who are involved in the marketing process, such as serving the customers, cooking the food and cleaning up afterwards, as without them the restaurant would fail to exist. Customers take judgments based on the people represented by your restaurant. Hence they play a major role in ones business. Waiters, chefs and cleaners require appropriate interpersonal skills, aptitude and service knowledge.

Physical evidence
This actually distinguishes a company from its customers. It is used to charge premium prices for services and create positive experience. When people walk into a restaurant you expect a clean and friendly environment. Waiters should receive them with hospitality. Otherwise they walk out.

Process
This looks at system used to deliver service. This may include the process of receiving complaints from customers, their needs and requirements etc. the hygienic of kitchen, qualification and experience of chefs etc. for restaurants this is not too important.
People Process Physical evidence Product Price Place Promotion 4p's 3p's

3p's
4p's Extended marketing mix

Proposed marketing mix for segments

Segment: Age 1) Kids
i) Product: Kids specials, chocolate flavors, fruit flavors etc. ii) Price: Competitive price. iii) Place: At vicinity of parks, shopping malls, busy streets, theatres etc. iv) Promotion: To day many kids like to have their own menu and order food on their own. Kids menu really attracts them. One can promote this individual felling through banners, social networking sites, print media ads etc. this attracts parents too. v) People: One should train their staff in handling children of the customers. If children do any mistakes or noise one should not abuse them, this in fact hurt their parents. vi) Physical evidence: For some tables one can provide furniture suitable to children. One can provide them small toys but after taking permission from their parents. This creates a family atmosphere. vii) Process: Wish the children along with their parents when they enter into restaurant. Ask their preferences and move accordingly.

2) Youth
i) Product: Fast foods, special dishes. ii) Price: Competitive price. iii) Place: Near colleges, offices, theatres, stadiums etc. iv) Promotion: One can tie up with colleges, offices etc. arranging small competitions and giving small gifts, offers, coupons etc. one can promote these through banners, FM Radio, social networking sites etc. v) People: Try to employ young girls and boys as receptionists, waiters etc. this brings resonance between the customers and employees. Arrange live music, cricket commentary etc. vi) Physical evidence: Arrange stylish furniture, latest music albums. Exhibit the cleanliness of your restaurant. vii) Process: They generally do not bother about the process. But be able to provide them information.

Findings
Developing product mix is very important to achieve success but same product mix cannot be applied to all the segments. One should understand the segment and market place and develop a
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product mix accordingly. Today products alone cannot bring long term profits. There should be an intangible service to achieve success. Hence 4ps are extended to 7ps. The additional 3 Ps make a great change in ones business and one cannot ignore them. 50% product, 50% service comprises 100% restaurant. Focus on the service quality like sanitation, hospitality, speed delivery, expertise in cooking etc. these little things bring large profits.

Conclusion
To develop better customer relationships and in turn profits developing marketing mix is compulsory. To achieve long term profits 4ps are extended to 7ps. The additional 3ps are very important and they play a major role in achieving success.