NORTH SOUTH UNIVERSITY

Subject : MKT202

Section : 09

Group Project

Team : The Dictators

Submitted to - Ms. Farhana Habib Zinnia (FHZ)

Designation - Lecturer of North South University

Submitted by:
Biva Benta Sarwar - 1612791030

Noshin Sadmin Islam - 1911358630

Md.Mehadi Hassan - 1912758630

Anika Munaw-Wara - 1631970630

Md. Shafayet - 1420211030

       Executive Summary

 Our restaurant “ The Fitness Kitchen” is introducing healthy fast food to the market. As we’re
new in the town we will need huge promotion so we can sponsor some members of ‘Bangladesh
Cricket Team’. In the introduction stage, we’re going to invest more on the promotion but
eventually, when the restaurant gets popularity we’ll not invest that much on promotion. After
our restaurant gets into the maturity stage we will open more branches as well. We will follow
the value-based pricing strategy and as we are new we’ll go for market skimming. “Chicken
Teriyaki Sandwich” and “The Veggie Noodle Stir Fry” both will be the main attraction of our
restaurant and we’ll have many items like that which will be healthy and tasty at the same time.
The main motive of opening this restaurant is to produce both tasty and healthy fast food to the
people with heart diseases and also who's highly conscious about their health. We are going to
open this restaurant at Gulshan considering all the factors. There will be many price ranges of
food in our restaurant so the customer can choose and order their dishes considering their
comfort zone. We will be giving many offers and discounts just to catch our customer’s
attention. Moreover, we will be distributing leaflets, develop Facebook pages and radio jingle for
more promotion. We are going for diversification and new brand expansion strategy. And lastly
analyze our Strength- healthy food, Weakness –a new product, Opportunity – uncommon idea

and strategies, Threat –other premium restaurants.

 Acknowledgment

Acknowledgement Firstly, we are very grateful to almighty Allah for giving us the ability to
work diligently and with patience for which we were able to complete our project on time. We
would also like to thanks our group members, survey participants and friends who have helped
us a lot by providing required information to complete this project successfully. We would also
like to express our heartiest thanks of gratitude to our course instructor Ms. Farhana Habib
Zinnia (FHZ) , who gave us the opportunity to do this research project. We are exceptionally
grateful to her and it's our honor to have Ms. Farhana Habib Zinnia (FHZ) as an instructor.
 CONTENTS

Introduction ------------------------------------------------------------------------------ 1

STP Strategies--------------------------------------------------------------------------- 2-3

Product ----------------------------------------------------------------------------------- 3-4

Price -------------------------------------------------------------------------------------- 5-8

Place ------------------------------------------------------------------------------------- 8-9

Promotion ----------------------------------------------------------------------------- 9-12

Strategic applications ------------------------------------------------------------------- 12-14

Conclusion------------------------------------------------------------------------------- 14
Introduction -
 “ The Fitness Kitchen” aims to provide good quality healthy fast food to people of Dhaka city so
that they can enjoy eating without worrying about their health. Our mission is to provide
premium healthy and tasty food in a calming environment. We also wish to provide superior
service to the customers so that they can create new memories with us. As the country’s
economic condition is developing day by day, the ability to spend more money is also increasing.
As a result, having fast food now and then has become a common habit for people of
Bangladesh. But fast food is considered unhealthy because of the excess fat it contains and also
because of the unhealthy way of making it. There are so many restaurants in Bangladesh. But
only a few of them maintain hygiene and also uses good quality ingredients. Many restaurants
were fined by the mobile court for serving rotten food. To name some - The New Star restaurant
was keeping rotten meat, the Food Fair was storing bad, expired food and also the workplace was
unhygienic, etc. Moreover, as people are now replacing the daily traditional food with fast food
because of the shortage of time and effort, people are suffering from obesity. People tend to
suffer from obesity-related illness as a result. Keeping in mind all those things, we came up will
be tasted as well. We will try to minimize the fat and sugar level as much as possible and also try
to make it healthy as much as possible by putting fresh veggies, meats, etc. We will also change
our cooking style by using coal stove which will help to extract the fat from the foods itself and
cook it with its fat. There will be customizing option allowing consumers to customize their food
with their preferred veggies, sauces, etc. With all these, people can enjoy some quality food and
time without worrying about their health. Our tag-line is - Heath should be fun and filling. We
will fight against the thought that one needs to eat less to stay fit. We will set an image that says -
one can have a good quantity of food when the quality is right and we are providing them the
quality. That way one does not need to worry about the size of the portion and have fun.

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STP strategies -

Targeted consumer Segments - we will segment the target customers based on Demographic,
Geographic, Psychographic and Behavioral variables. They are -
Demographic - demographic segment divides the market place based on age, gender,
occupation, etc. We don’t need to consider all the variables. Our targeted customers will be of -
Age - 18 to above and Income - 40000 to above.
Geographic - Geographic variables are the city, state, country, etc. A good place is mandatory
for people to come and relax. It is important to place the restaurant in a place where the targeted
customers are available. So we are going to Gulshan of Dhaka city. Because there are a lot of
offices and schools and people can have our food for breakfast, lunch and even dinner.
Psychographic - Here the target market is segmented based on characteristics, belief, traits,
values, etc. Our targeted segments are - Lifestyle -   People who want to eat healthily, and Social
class - Upper middle class and upper class.
Behavioral - Here the market is segmented by observing the buying behavior of the buyers, such
as - loyalty status, usage rate. Our target is - Benefits sought - We will target people who want
low fat and low calories in their food.

Targeting Strategy - Our targeting strategy is a concentrated marketing strategy. As our

restaurant is new and just getting started, we will keep the market size small and target a selected
number of people. Another reason is that our resource is limited. So we can not serve a bigger
market with this limited resource as well. So we will establish one marketing mix for our target
market. Our target market will include the health-conscious people and also people who have
obesity-related issues.

Value Proposition - We will implement a “More For More” image within the target customer. Ir
means that we will provide superior service and product which best quality, and in return, we
will charge a higher price. We will fulfill the needs of the customers fully providing them a
higher value than the competitors. But the price will be also high.

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Positioning Strategy -

Feature - We will have “add on” feature. There will be vegetables and sauces of different kinds.
They can choose whatever suits their taste.
Reliability - Our restaurant will earn the trust of the customers by providing their needs.
Service differentiation - we will provide a free quick delivery service (30 min within Gulshan ).
We will also provide premium service by trained employees. Our employees will be highly
trained and always prepared according to the customer’s need.
Symbol - the logo of the restaurant will also help in positioning.

Marketing Mix Strategy -

Product -
Brief details about the product: Our signature dish will be “Chicken Teriyaki Sandwich”
which will be stuffed with teriyaki glazed chicken strips and topped with our fat-free
sweet onion sauce. Another one is “The Veggie Noodle Stir Fry”. For those two items,
our price and ingredients are fixed. Rest of the item given below where customer can
add according to their preference.
Item:
· Burger
· Sandwich
· Hot dog
· Sub
· Salad
· Noodles
There will be so many items like 7-10 kind of fresh vegetables, fish, meat, cheese customer can
add according to their preference. Starting from per 50 gm they have to add. We will use fresh
vegetables. Meats and fish will be burn by using coal stove, we will avoid fry. There will be a
live kitchen so that customers can see how we maintain quality and hygiene as well. Also, there
will be some secret souse from Italy and masala from Egypt to make it tasty.
Brand sponsorship: 

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As we are new in town and we are here to provide premium service. So for that, we need a huge
promotion. We can sponsor the Bangladesh Cricket Team to get easy & quick promotion. We
also have some plan to sponsor some corporate sports event.
Product life cycle:
We are going to introduce new healthy fast food in Bangladesh. For that, we have to develop
some product according to follow the recent trend, customer preference, culture. We also have to
work on product size, shape, quality, how to make it tastier as well as it is good for health. In this
stage, we have to invest more to develop our product. We can’t sell our product so profit is also
negative.
 In the Introduction stage we have to promote as much as possible in social media (Facebook,
Instagram, snap chat, twitter) as well as public media like a newspaper. In this stage, our
promotion cost will be high and we can expect some innovators customer who will come to our
restaurant only to check the product. We didn’t expect any profit in starting but we can make
some sells.
 In the growth stage hopefully, we can make our place inside the consumer mind. People will
like our product and purchase. So our advertising cost per units will decrease. Our sells will
increase rapidly and we can make a profit as well. In this stage, we expect some direct
competitors in the market. In this stage, we can provide a discount for students, offer happy hour
meals to grab more customers. We also have the plan to add some new item in Menu.
In the maturity stage, we plan to expand our business in other places in Dhaka city like
Dhanmondi, Mirpur, Uttara, if possible we will open in Chittagong and Sylhet as well. In this
stage, we expect the highest sell as well as the highest profit. We have to set less price than
competitors and maintain the same service and quality. In advertising, we have to show the
difference and extra features of ours, why we are better than competitors. In this stage, lots of
competitors can’t survive in the market and they will shut down.
Finally, in the declining stage, we have to very careful about the market. Only a few competitors
will be available and sells will decrease. For survive we have to keep our place at the number
one position so that customers will come for us. We believe that in future people will be more
health-conscious. So those who like fast food and care about their health as well they will be our
customer. In this stage, we can expect some loyal customers. If necessary we have to shut down

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some branches as well. We have to cut the price and have to provide discounts to attract more
customers.
 
Price-
Pricing Strategy: Value-based pricing.
Our restaurant “The Fitness Kitchen” will follow the customer value-based pricing strategy. So,
in this strategy, we’re going to set the price of our healthy food based on our target customers
perception. Firstly, our company will assess customer needs and value perception. As we’re
mainly targeting the people with health consciousness so we’re going to consider their
perception about healthy food. Secondly, we’re going to price our food to match customer
perceived value. Then we will determine the cost that can be incurred. Lastly, we will deliver our
food with the desired value at a target price.

 
Here, we can see that 90.3% of people want to try out healthy fast food. Our signature dish will
be “ Chicken Teriyaki Sandwich” which will be stuffed with teriyaki glazed chicken strips and
topped with our fat-free sweet onion sauce. The cost of making per sandwich would be 450/=
and we’re going to have a 10% profit from it, which means the customer cost will be 499/= and
vat excluded.
 
We can see from the pie that there’s 85% percent of
people who will pay 499/= taka to try our signature
dishes. “Chicken Teriyaki Sandwich” will be the main
attraction of our restaurant and we’ll be pricing this at
an optimum level was any target customer can buy it
and enjoy our signature dish. The main cost to make
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this dish is 450/= taka so it’ll be our price floor, and we won’t charge more than 499/= exclude
vat so 499/= will be the price ceiling for our signature dish. Our motive is just to provide our
signature dish at a price where any of our customers can easily get it and enjoy it.
New product-pricing strategy:
As our project is introducing healthy fast food to the targeted customers so it is absolutely a new
product and we’ll follow the ‘Market-skimming’ pricing strategy. Market skimming pricing is
setting a high price for a new product to ‘skim’ maximum revenues from the target market. So’
we’re going to set a high price to skim maximum profit from our target customers. Though this
type of pricing strategy will result in fewer, more profitable sales. There’re a few amounts of
people in Bangladesh who will willingly pay a high price for healthy food. That’s why we’re
going to target that particular amount of customer’s and skim profit by selling them our quality
food.

We can see that 67.7% of the people will pay more for healthy fast food. That means ‘Market
Skimming’ will be an accurate strategy.
Product-Mix Pricing Strategies :
We, “The Fitness Kitchen” will be choosing two types of product mix pricing strategies. They
are:               
Product line Pricing: There’ll be many fast food items in our
restaurant. The fast-food we will offer won’t be at the same
price there’ll be a difference in prices of each food item.
Moreover, there’ll be large/ medium/ small options and the
price of food will be changeable for this. Even we’ll offer
‘Extra spice’ , ‘Extra cheese’ options in our menu; anything
‘Extra’ will cost ‘Extra Money’

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This is quite evident from the pie chart above that the majority of people are willing to pay 450-
550/= for healthy fast food. And the second-highest voted option is 550-650/= taka. That means
we can add up many ranges for different fast food items so that our customer can choose their
food at their convenient budget.
Product-Bundling: “The Fitness Kitchen” will not only bring healthy fast food but also bring a
healthy and tasty meal to their customers. The price of one sub sandwich is 499/= but the
package of 4 sub sandwich will cost 1899/=taka where vat excluded. There’ll be more packages
like this.
Price-adjustment Strategies :
Our restaurant will follow 4 kinds of price adjustment strategies. They are :
Quantity Discount: The restaurant will offer special discounts based on the quantity of the
ordered food. The price of a Burger of our restaurant is 399/= taka but if someone orders 4
burgers it will cost them 1499/= taka instead of 1596/= taka.
Customer Segment Pricing: Our restaurant will offer a special 5% discounts to the students by
checking their ID card. Even children below 15 will get special discounts from us. Our loyal
customers will have a membership card and after 10 buys from us they’ll have a free meal from
our restaurant.
Psychological Pricing: As many customers use price to judge quality, and we’re using market
skimming pricing. So, our customer will understand it is a premium fast-food restaurant.
Besides, odd pricing of our offered foods will catch customers attention.

Promotional Pricing :
Membership: There’ll be membership policies for loyal customers.
Buy 4 items and get free beverage :
If someone buys four items similar or different will get free beverages from us.
Though this policy will be used for a limited time just to boost up our sales.
15% discount on anything for the first one week after our opening is also a promotional strategy.
Factors to consider for setting price :
1.Competition based pricing: We’ll set the price of our available food considering our
competitor's prices.

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2. Environmental factors: We will have to price our food considering the environmental factors
also.
3.Government actions: We can’t price our food without considering the government actions.
4.Economic conditions: Economic conditions can also have a major impact on pricing decisions.

Place -

Location strategies: We only have one outlet which is in Gulshan. As there are lots of schools
and offices in the Gulshan area and people are health-conscious, so it will be a suitable place for
our outlet. Later on, we will place more outlets to some places like Dhanmondi, Mirpur, etc. Of
Dhaka city.
Distribution channels: A set of the interdependent organization (intermediaries) involved in the
process of making product or service available for use or consumption by the consumer. Channel
decisions involve long term commitments to other firms.
Nature & importance of marketing channels: Our intermediaries help food assortment
demand with supply. Our intermediaries help bridge major time, place and possession gaps that
separate product from those who would use them.
Distribution channels function:
Information: As we are going to produce healthy foods we need to have proper knowledge
about which ingredients are harmful to our health and how to replace them.
Promotion: For the loyal and regular customer there will be a membership card and they will get
some discounts for purchasing regularly from our restaurant. Some buy 2 get 1 offer can be
introduced in the first week to get more sales and marketing.
Matching: We will always keep in mind that consumers expectations should be fulfilled. As our
foods are healthy it should be tasty as well to match the expectations of the consumers.
Number of channel levels: We can design our distribution channels to make our foods services
available to our customers in different ways. As we are the manufacturer, we are going to
distribute foods directly to our customers. So it is better to use the direct channel as it is the
direct process of serving foods from manufacturers to customers directly.
Vertical Marketing System:  In our structure, there are producers, retailers, and wholesalers who
act as a unified system.

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Corporate VMS: Leadership is owned by common ownership. It combines successive stages of
production and distribution under single ownership.
Channel Design Decisions:
Analyzing Consumer needs:  We must consider the cost and feasibility of meeting needs. We
need to know to do customer want add-on services or do they want to buy from nearby locations.
We also need to know do they want to buy in person or over the phone or via the internet.
Identifying Major Alternatives: Every member of our restaurant are to perform specific price
policies, services, and territorial rights.
Number of marketing intermediaries: We will be doing exclusive distribution as we have only
one outlet. Later on, we will add some outlets inside the Dhaka city.
Evaluating Major Alternatives: adaptive criteria flexibility of our channel members are to adapt
to environmental changes.

Promotion -
Advertising - the main purpose of advertising is to communicate with the target consumers.
Advertisement can be done for many purposes, such as - to create customer knowledge, to
promote incentives such as discounts, to remind the customers about the firm, etc.
Advertising Objective - As we are just starting our business in the market, we need to work for
gaining customer’s awareness about our restaurant that we are in the market. We need to
introduce our service, the dishes we are offering and how we are different from our competitors
to the customer. So our main advertising objective will be to inform the target market in the
introduction stage of the product life cycle. Once the customer knowledge is increased within the
customers and they are well aware of our presence, we will advertise to persuade them to take
action. We will invite them to purchase in the growing stage. When we reach the maturity level,
we will be advertising to remind the customers about our restaurant.
Creating Advertising message - We need to communicate the values we are providing to the
customers through the advertising message. We also need to let them know about competitive
advantages. Our main message will be - “Heath should be fun and filling”. We will show that
with “The Fitness Kitchen” one does not need to eat less and think about consuming a lot of fat
and calories. They can have all they want and still stay balanced. Our main message will provide

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information about how healthy and tasty our food is. So that our target customers who care
concerned about their health and lifestyle become attracted by our advertisement.
Execution Style - There are so many execution styles available, but not all of them are
appropriate for all firms. For our restaurant, we will select -
Lifestyle -  This strategy relates the product with the customer’s lifestyle. In other words, it
shows that the product will fit into the customer’s lifestyle perfectly. We will show the target
customers that our restaurant's food is perfect for a healthy lifestyle. Healthy lifestyle and healthy
food come hand in hand. So if they want that kind of standard lifestyle, our restaurant is a place
which can be added with that kind of lifestyle. 
Slice of life - This execution style shows a daily life problem and presents the product as a
solution to the problem. We will display the obesity problem which is caused by the
consumption of excess fat and calories with daily fast food. Then, we will present our
restaurant’s food as a solution to that problem. Our food is healthy and contains less fat and
calorie. So people will not face any obesity-related issues from having our food.
Spokesman and Testimonial - we will invite Bangladeshi cricketers and health-conscious and fit
actresses like Jaya Ahsan and Nusrat Imrose Tisha to provide an honest review of our food
quality and benefits. Moreover, we will also try to gain BSTI(Bangladesh Standards and Testing
Institution) approval to gain customer trust.
Advertising Appeals - We will use both emotional and rational appeal to capture the target
market. Everyone wants to stay healthy and fit for a better life. Nowadays the fear of losing
health, beauty is increasing day by day as people are feeling more insecure. With the increased
use of social media, everyone tends to present themselves as a perfect person to the rest of the
world and want to be recognized and respected by others. Our restaurant will be a solution to
having a healthy lifestyle and having both good quantity and quality food at the same time. As
our food has low sugar and fat level, it will be healthy for people to consume. With this, we can
target the customers with the both emotional and rational appeal.
Selecting Advertising Media - At the beginning, TV advertisements were really popular as
there weren’t many media available. But nowadays it has become outdated. There are so many
media, so with only TVC, the maximum coverage is not possible at all. The media we will be
using are -

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1. Social media - we will have Facebook, YouTube and Instagram account where the pictures of
foods and offers will be displayed. People can order food from the Facebook page and also share
their thoughts and complains as well. Moreover, we will be providing small YouTube videos
where the Chefs will provide information about the food’s quality, how clean and neat the
cooking place is, how the food quality is maintained. All those will help to gain customer’s trust.
Those videos will also be shared on Facebook and Instagram as well. Of course, the important
information and recipes will be a secret for competing against the competitors, but we will try to
let the customers know what they are having as much as possible.
2. Print media - Though now print media is not as popular as it was before, still it works well.
We will establish leaflets and newspaper advertisements to reach more customers. We will
provide information about the food, discounts and other offers through it.
3.  Billboards - Billboards are effective for busy cities like Dhaka. People tend to ignore print
media as they tend to be very busy. In this case, billboard becomes an effective source. People
can steal a glance at it while walking or sitting in a vehicle. If they are interested, they can
research further searching on social media.
4. RVC - Some people listen to radios while working or driving. So it can help to capture the
attention of those persons. With this in mind, we will create a jingle for our restaurant and
release it as RVC.
Sales Promotion -
There are several kinds of sales promotion. We will be using some seasonal promotions which
will be available on special occasions such as - valentines day, Pohela boishakh, eid, puja, etc.
Some advantages will be for regular ad loyal members of the restaurant.
1.  Sample testing - this one will be a short term incentive. We will provide samples of food to
beginner customers. As we are new in town, it will help the customers choose the one suits their
taste.
2.  Coupons - we will provide coupons of free drinks and small discounts in case of repeated
purchase. Occasionally we will allow customers to gain their discounts by playing “Dart”. It will
be only available in case of repeated purchase.
3. Healthy Eater Membership - we will create a healthy eater community where people with our
restaurant’s membership can communicate with each other. They can share their healthy
lifestyle, give tips and suggestions to other problems with using #healthyeater. They will get

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special discounts, patronage rewards by getting points from purchase, healthy diet chart, badges
of being a healthy eater. It will encourage them to purchase frequently and become loyal. They
can also start a trend of staying healthy and create memories with us.
4.  Student discount - though we are targeting people with a good income, students are also a
good target market. Parents feel anxious about their diet and health. So we will encourage them
to visit us by providing a 5% discount.
Public Relation -
PR activities are good in two ways. It generates customer loyalty and also is good for society.
We will also contribute to the society to perform our share of social responsibility. We will
provide a “ Special Month” service where 2% of every person’s purchase will go to childcare
activities for underprivileged children. With this others will also get a chance to contribute by
purchasing out foods. We will also arrange a yearly event where we will provide housewives an
opportunity of showing their cooking skills. We will arrange a food carnival where housewives
who want to display their cooking skills can install their stalls and present their cooking skills.
Direct Marketing -
 we will text and email the membership customers to let them know upcoming offers, their
purchasing status, points gained from purchase, events, etc.

Strategic applications:
Product/ Market expansion grid
·  Diversification:
Our company is new and we have to create a market for it. So that at first our company will be at
diversification stage. When our company will be well known and trusted to people and will
create a good market, it will reach to market penetration stage.
·  Market penetration:
After diversification, in the market penetration stage, our company will make more sales to the
current customers without changing our product and services. It means in this stage our company
will add new stores or outlets in the current market areas or will improve advertising and pricing
or will try to improve the service or design. So that we will make more profit than before with
the current products.

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·  Product development:
Then we will try to step towards the next level which is product development. So our company
will add more products and services to the current market. We will add more products to our
company. We can introduce more new products in a new style or we can come with new flavors
or colors of the current products.
·  Market development:
Then we will try to develop a new market place for the products. We will research where our
demographic demand is high and according to that, we will develop our new market there.
And this is how the product/ market expansion grid will work for our company.

Brand expansion grid

·  New brand:
Our company is new, so it’s a new brand.
·  Product line extension: 
Product line extension means adding some additional items in the same product category under
the same brand name such as new flavors, forms, colors, added ingredients, package sizes. So
after establishing our new brand, we will try to extranet our product line by changing the flavors,
colors or packaging. 
·  Brand extension:
Though we are starting our restaurant with healthy fast foods, in the future, we can add Korean
and Thai foods in our menu. We can serve our customers with some healthy dishes from Korean
or Thai dishes. By that, we can extend our brand.

SWOT Analysis
 ·  Finding opportunity :
1. Opening new outlets(Market extension)
2. Product development (Adding new fast food items)

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 ·  Understanding strengths:
1. Healthy fast food
2. Superior personnel service
3. Avoiding unhealthy ingredients but tasty
4. Good brand image
 ·  Analyzing weaknesses:
1. Only fast food
2. Price is a little bit higher than other unhealthy food courts
 ·  Avoiding threats :
1. Similar competitors(Indirect competitors: KFC, BFC, Well Food)
2.  Economic factor
3. Fire safety

Conclusion:
 People nowadays are health conscious. They prefer eating healthy and delicious foods. We are
preparing healthy and delicious foods for the people. So, people will prefer more to come to our
restaurant more than other restaurants. As we are starting our restaurant, we will get less
customer and less profit. After getting well known to the people, we will get more customer and
more profit. As we are serving healthy and delicious foods, we hope that we will get known to
people very easily and the customer will get satisfied after eating foods from our restaurant.

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