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! ! Rotisserie Affair Deli Marketing Plan

Synergy Marketing
Timothy Constant, Ariela Engber, Heather Hurmiz, TJ Kidder, Daina Larkin & Justin Suarez

Table of Contents
Executive Summary.......1

INTRODUCTION....2
Problem Statement, Background & Objectives......3

COMPETITIVE ANALYSIS........4
Porters Five Forces.......5 SWOT Analysis....6 Competitive Maps....7

MARKET RESEARCH.......11
Goals & Methods.......12 Physical Survey Results.....13 Online Survey Results.19 Informational Interview25

MARKETING STRATEGY.......26
Research Conclusions.27 Recommendations.......28 Implementation Suggestions.29

REFERENCES..32 APPENDICES.......33

Appendices Table of Contents

1. Rotisserie Affairs Physical Survey - Blank Version 2. Rotisserie Affairs Online Survey - Blank Version 3. Google Maps Screen-Shot- Competition Local 4. Google Maps Screen-Shot- Competition Immediate 5. Excel Sales Tracking System 6. Paper Menu 7. Punch Card 8. Sign

List of Tables and Figures

1. Porters 5 Forces Industry Analysis 2. SWOT Analysis 3. Favorite Menu Item 4. Work Location of Customers 5. Days of the Week that Customers Visit 6. Loyalty Card 7. Group Orders 8. Would You Place a Group Order for 5+ People? 9. Customers First, Second, & Third Lunch Choices 10. Overall Distribution of Most Likely Lunch Options 11. Target Customers Work Week Lunch Habits 12. Typical Group Dining Size 13. Percentage of Important or Very Important Responses 14. Customers Willingness to Travel for Lunch 15. Customers Online Ordering Habits 16. Customers Likelihood of Ordering Online for a Discount 17. Tracking Sheet 18. Rotisserie Deli Menu 19. Loyalty Card 20. Rotisserie Deli Sign
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Executive Summary
Rotisserie Affair Deli is owned by Kevin Fisher, who has been working in the catering business in San Diego for over 25 years. While his attention is primarily focused on his catering business, Mr. Fisher wanted to address the marketing issues that his Deli is currently facing in hopes of increasing awareness of his catering through the Deli. Currently, Rotisserie Affair Deli does not have a concrete marketing strategy. The Deli itself is being used as a promotional tool to help increase the sales of the catering portion of the company, where most of the income from the business is earned. The strategy of the restaurant thus far has been to emphasize the value (portion size in relation to cost) of the food. After researching the competition, we found that Rotisserie Affair Deli is in a unique position to leverage its proximity to local businesses to attract customers. There are 33,000 individuals that work within a 5mile radius of the delis location. There are over 20 restaurants within a 2-mile radius of the Deli, but the Deli is the only rotisserie-oriented restaurant in the area. The Deli also possesses more authenticity defined as having a unique and homey atmosphere - than the numerous fast-food restaurants within the area. Based on these findings, we believe that the most profitable target market that would be interested in the Deli consists of price sensitive males who work within 5-miles of the Deli. Taking into account his current customer traffic, we believe it is possible for the Deli to increase its daily traffic to over 50 customers per day with the addition of a menu, consistent promotions, and a loyalty card. This would effectively double the average current customer traffic, and thus double sales.

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INTRODUCTION

Our team is acting as marketing consultants for Rotisserie Affair Catering. All conducted research, and the resulting strategies, will focus on the business deli segment.
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Problem Statement
Rotisserie Deli lacks awareness to leverage its convenient location.

Background
Rotisserie Affair Catering was opened by Kevin Fisher 25-years ago as San Diegos first and only rotisserie catering service. Rotisserie Affair Catering is unique because it provides the novel experience of watching your food cook before your eyes. While catering is the primary focus of business, Rotisserie Affair also operates a deli next door to its catering consultation location. The deli is open Tuesday through Friday from 11:00A.M. 2:00P.M., and is intended to act as a marketing tool to increase awareness of Rotisserie Affair Catering to the employees within the surrounding business area. Currently the deli attracts roughly 20-30 people Tuesdays and Wednesdays, and 25-40 people on Thursdays and Fridays when there is an all-you-can-eat buffet. Beyond the buffet there are no consistent promotional efforts, though in the past fliers have successfully attracted customers from local businesses in the area.

Objective
Increase Rotisserie Affair Deli sales by 50%.

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COMPETITIVE ANALYSIS

In order to assess Rotisserie Delis competitive environment, we conducted Porters Five Forces industry analysis, a SWOT analysis, and two competitive maps. In determining the delis strengths relative to the competition, we will be able to determine the most strategic marketing position and strategy for the deli.

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Porters Five Forces Industry Analysis

The industry for the following analysis has been defined as restaurants that serve lunch.

Rivalry - High
There are many restaurants, fast-food places and cafes that serve food and offer lunchtime specials.

Supplier Power - Low

For the most part, fluctuation of raw food prices will have a minimal impact on profitability due to low food/input costs and high margins. Also, the ingredients are often not specialized, so switching costs are generally low.

Buyers Power - Low

Customers have no influence on the pricing of the food, and therefore the buyer power for this industry is low.

Threat of New Entrants - High

There are low barriers to entry and exit within the restaurant industry due to the ease of acquiring materials, and the simplicity of the business model. Cost of capital can range from low to high, allowing for small and big players to enter the market.

Substitute Threat Moderate

The threat of substitutes is moderate. Two-thirds of Americans eat lunch out regularly - though there are a few notable exceptions. People can replace meals with protein shakes, smoothies, snacks, or bring lunch from home instead of buying lunch at a restaurant (Bain).

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SWOT Analysis

Strengths
> Authentic home-made food > Experienced management & ownership > Flexible product inputs > High profit margin

Weaknesses
> Low awareness > No tracking system > Limited capital > Minimal menu variety

Opportunities
> Large consumer market in close proximity > Trend in dining preferences shifting towards less commercialized and more family owned > Expand target market outside of immediate area
(Figure 1)

Threats
> Business is easily replicable > Potential of new entrants into market > Poor online reviews > Change in consumer habits towards healthier dining options > Suffering economy means more people are eating at home

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Competitive Maps
The competitive maps below demonstrate Rotisserie Delis position as compared to relevant competitors. The competitors consist of local restaurants within a 3-mile radius of the Deli (shown in the figure below), and have been assessed based on cost, authenticity and convenience.

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Competitive Landscape
The green pin represents the deli and the red pins represent the Competition. The first map represents a three-mile radius, while the second map reflects the direct competition. Both maps demonstrate that the deli is somewhat separated from the surrounding competitors. The deli lies within a complex of business buildings, as the local area is saturated with medical research and tech companies. Due to the nature of this location, there is a dense population of employees that directly surround the deli.

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Competitive Map of Value

The qualities of Expensive and Value refer to the average price of food items compared to the quantity of food received. The qualities of drivable and walkable refer to the distance between the target customers work and the restaurant. This visual shows that Rotisserie Affair Deli is positioned as a walkable lunch destination that offers more value than many of the competitors.

(Figure 2)

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Competitive Map of Authenticity

This visual shows Rotisserie Affair Delis position amongst its competitors based on the quality of authenticity. The target customers would describe a more authentic restaurant as more Home Made. Conversely, A more Commercial restaurant would be less authentic. Currently, Rotisserie Affair Deli is more authentic than other restaurants in the area.

(Figure 3)

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MARKET RESEARCH

To determine customer preferences and demographic information, we conducted primary and secondary market research. Primary research included an informational interview with one of the Delis employees, and two surveys (a physical survey of customers and an online survey of the target market).
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Goals
1. Gather information about current customers. 2. Determine group and individual employee decision-making and dining habits.
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Methods
Collect data through an online and physical survey of current customers and of employees of small businesses. Survey current customers throughout a typical week to determine perceptions and preferences of current Deli customers. Implement online survey to determine group-dining trends at work.

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Physical Survey Results

To gather information about Rotisserie Delis current customer base, we conducted a physical survey of customers. In addition to demographics, we collected food/dining preference information.

Work Location
Over 80% of current customers work within a 5-mile radius of the Deli location.

(Figure 4)

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Visit Habits
Over 80% of current customers work within a 5-mile radius of the Deli location.

(Figure 5)

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Loyalty Card Preference

Over 70% of customers surveyed indicated that they would use a loyalty card for Rotisserie Deli.

(Figure 6)

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Group Dining Preferences

Over 75% of customers would consider placing group orders for 5+ people in exchange for a discount.

(Figure 8)

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Customer Lunch Preferences

The graph below demonstrates customer lunch preferences. Notably, peoples first choice for lunch was split equally between bringing their lunch, fast food and sandwich/deli. Another notable factor is that across all three choices, customers preference for fast food and deli food remained consistent, indicating that the current customer base consists of sandwich lovers who seek convenience. (Important note: the different options below vary between cuisine and type of lunch - fast food or packed lunch because this was a free-answer question).

(Figure 9)

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Customer Lunch Preference Distribution

The following graph demonstrates the lunch distribution of the delis current customer base. preference

(Figure 10)

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Online Survey Results

To determine lunch dining preferences and group dining behavior, we conducted an online survey of the working professionals.

Work Week Lunch Habits

The following graph demonstrates that 45% of working professionals eat out for lunch 1-2 times a week. 70.3% of respondents reported going out to lunch at least one time per week

(Figure 11)

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Group Dining
Only 3.8% of respondents indicated that they always eat lunch alone. 57.7% dine both alone and with others. 38.5% of people always dine with others.

(Figure 12)

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Important Factors in Dining Decisions

Respondents indicated that the most important factors in their dining decisions are price and proximity to work place, with 84% and 80% respectively indicated as very important factors.

How important are the following factors in your lunch dining choices? (Figure 13)

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Willingness to Travel
This graph shows that there is a large drop-off in willingness to travel for lunch when the destination is 3-4 miles away. It also shows that the majority of people are willing to travel 3 miles or less.

(Figure 14)

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Online Ordering Habits 28% of respondents never order for delivery to the office, meaning that 72% order at least once per month.

(Figure 15)

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Likelihood of Ordering Online for a Discount

This graph shows that 88% of respondents indicated that they would place a group lunch order online if there was a discount.

(Figure 16)

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Informational Interview
Name: Terry Position: Event Coordinator/Part-time Deli Server Interview Questions:
1. What is the average number of orders a day?
o o

Tues/Weds: 15-20 orders Thurs/Fri: 40-50 orders with most of the orders being on Friday

2. What are the most popular items on the menu?

o o

Chicken and Pulled Pork Thurs/Fri: Sausage, Pork, Ribs and Tri-Tip

3. Does the Deli have many regulars?

o

There are more regulars than non-regulars

Other Comments
Do you have any additional comments/opinions about Rotisserie Deli? o Having enough space is an issue on buffet days (Thurs,Fri) o Demand is unpredictable (customers come all at a time or not at all) o Generally all tables will fill on buffet days (Thurs, Fri) o Free cookies are somewhat frequently served, sometimes by Kevin himself o Like the idea of a promo card/lunch special.

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MARKETING STRATEGY

The following marketing strategy has been devised based on the primary and secondary research that we conducted for Rotisserie Affair Deli.
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Research Conclusions

Based on the finding that over 80% of the Delis customers worked within 5-miles of the deli, the focus of marketing efforts will be on this customer segment. As working professionals indicated that price and proximity were most important factors in dining decision making, these are the two factors that we will focus on in marketing the Deli to locals. Considering that approximately 80% of the Delis customers came in on Thursday or Friday for the buffet, a special or promotion should be implemented on other days to increase foot-traffic. Roughly 80% of respondents indicated that they would use both group rate discounts and loyalty cards, both promotions should be implemented. Considering 38% of office employees who were surveyed dine in groups, incentivizing customers with group deals will most likely increase sales. If a discount for group ordering was implemented, 23/29 of the current customers who were surveyed indicated that they would be willing to increase their party size to 5 people in order to receive a discount. If each customer who responded increased their party total to 5 people, the Deli would receive 64 more customers. As 72% of respondents indicated that they order delivery to their office at least once per month, offering a delivery service to local businesses within 5 miles will bring in more business and increase awareness. Based on the finding that 88% of respondents said they would place an order online for lunch if there was a discount, an online ordering system should be implemented to help predict demand and improve the ease/convenience of ordering.
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Recommendations
Target Market
Based on our findings, Rotisserie Affair Delis target market will consist of value-conscious male groups/individual employees that work within 5-mile of the Deli. Immediate concentration will be on consumers within a 1-mile radius.

Positioning
The Deli will be re-positioned against local fast-food restaurants as home cooked food, emphasizing the authenticity of the food, the friendly staff, and the overall homey atmosphere of the Deli itself.

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Implementation Suggestions
Tracking System
One thing we gleaned in our informational interview with the staff was that demand was somewhat unpredictable and inconsistent. To increase the predictability of demand, we propose a tracking system to collect data over time. This will enable Kevin to have better information about the trends of his consumers, enhancing his ability to make decisions about the business.

(Figure 17)

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Paper Menu
The menu would be printed lengthwise on a 8x11 paper, and would be distributed in the deli and directly to local businesses. Attached to the menus given to local businesses would be the loyalty card (see next page) to entice people to come.

(Figure 18)

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Loyalty Card
For each purchase of entree or buffet entrance, one sandwich would be punched. The loyalty card would be distributed directly to customers.

(Figure 19)

Sign
Someone would stand with the sign at the intersection of Carroll Rd. and Miramar Rd. and another person would stand at the intersection of Carroll Rd. and Camino Santa Fe. A pulsing strategy - running the promotion semi-frequently and consistently - would be used throughout the year to increase awareness.

(Figure 20)

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REFERENCES
Bain, Zoe. "Just How Much do Workers Spend On Their Daily Coffee and Lunch Habits?." Food In The News. Delish, 23 1 2012. Web. 1 Jul. 2013. <http://www.delish.com/food/recallsreviews/workers-spend-on-coffee-lunch>.

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APPENDICES
Rotisserie Affairs Physical Survey
Please take a few minutes to answer these questions. We value your responses and will use them to enhance your future experiences at Rotisserie Affair Deli. 1) Is this your first time to Rotisserie Affairs Deli? (please circle one) Yes / No 2) If you answered No, how often do you frequent the Deli? (please circle one) ! ! ! ! ! Once a week 2-3 times per week 4 times per week 1-2 times per month other 3) Which days of the week do you eat at Rotisserie Affair Deli?(please circle one) T W Th F 4) What is your favorite menu item? 5) How did you first hear about the Deli? 6) Do you work within 5 miles of the Deli? (please circle one) Y / N 7) If you answered Yes, which company do you work for? 8) How many people did you come to the Deli with today? 9) Would you consider placing a group order (5+ people) on the Rotisserie Affair Deli website if you received a _______% discount? (please circle one) Yes / No 10) Would you use a loyalty card for Rotisserie Affair Deli to receive your 10 meal free? Yes / No
th

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11) Please provide the top 3 places that you eat lunch most often during the work-week.

Rotisserie Affairs Online Survey

(Next page)

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Google Maps Screen-Shot - Local Competition

Google Maps Screen-Shot: Direct Competition

Excel Sales Tracking System

Paper Menu

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Loyalty Card

Sign

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