One of the reasons for this is the increase in number of hours people are working, which has resulted in more number of people eating out. Based on economic forecasts, the business believes that interest rates are coming down which will create more disposable income, and therefore, more people eating out. However, based on the Australian Treasury report, current interest rate have been rising incrementally during the year and there has also been a tightening on credit card limits. Demographic factors Male and female Ages 25-50, this is the segment that makes up 53% of the Eugene market according to the Eugene chamber of commerce.
Young professionals who work close to the location Have attended college and graduate school An income over $40,000. Eat out several times a week. Trend to patronize higher quality restaurant. Are cognizant about their health. Technological factors The restaurant is still taking order via telephone, and has not taken the marketing firms suggestion of converting the take away ordering system to the new internet based technology. Although the staff is competent in their respective Jobs, they are not skilled in telephone sales.
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This information was obtained from a face to face eating with Rose Ready. Based on focus group conducted it was also found that costumer want to order via the internet, and not be stressed out by the phone system with its delay and difficult to understand accents and noise. Political or legal factors An interview was conducted with Mario Sartor who was of the opinion that the business had been in difficulties since the start. One of the reason for this was that the government had not build the park and ride parking area as planned, and had stopped the project for another year.
In his opinion this has had a big impact on people being able to access the restaurant at night. Mario was asked about his practice of charging different prices for deliveries and his response was that it as good business to charge rich people extra because they can afford it. There might be some ethical implications here from a marketing audit point of view and this was also put into question by some costumers in the focus group. External micro- environmental factors Market characteristics For the last couple of years restaurant is headed towards a more sophisticated customers.
The restaurant petrol today wants food which is of high quality, made room high quality ingredients, is presented in appreciative way and they wanton be offered a larger selection of foods and no longer accepting a limited menu. Customer needs For the couple of years restaurant offering have increased, providing customers with new choices. With more choices patrons have become more sophisticated. The business believes that along with more choice and high quality foods. Customer are also interested in exotic taste.
The SIBS world industry report also mention that customer are now looking for healthy eating options like salads, and also want more information on ingredients. This was also observed from the results of the focus groups. Competitor factors It was informed by Mario that one of the competitors of the restaurant steel’s had built a large thirty seat outdoor eating area and it was doing very well. Another of its competitors pasta bite had a open up a restaurant in the adjacent suburbs giving the local customer greater option in pasta. Mario has therefore dropped prices on pasta products and this has resulted in a drop in gross profit.
Another source of competition is the introduction by supermarket of pre-packaged pasta product. Internal audit Criteria to be used in the internal marketing audit Existing research data During the initial phases of the marketing plan development several focus groups were held to again insight into a verity of patrons of restaurant. These focus group provided useful insight into the decision and decision making process of customers. An additional source of market research is carried out by suggestion card system. Quarto’s claim that it will work hard to implement reasonable suggestions.
Access to ongoing market research will be achieved via the publication from the restaurant association but according to Adrian com, even though there was sufficient data available in the restaurant association monthly magazine but this information not being used. The magazine is Just kept for the staff and its never consulted by Mario. Internal sales data The internal sales data showed that the business would need $45,000 in monthly revenue to break even. The sales forecast which have been prepared keep in mind a 65% gross margin, however, based on actual figure for 2009, this target has not been reached, and the forecasted sales have fallen.
Supply chain management and caustics Adrian com is currently uncharged of sales and promotions of the restaurant. Based on the interview conducted with her one of the biggest problems she is facing that the phone ordering system is constructed in the kitchen next to cook with most responsibility to compile and check every meal. This has been creating real logistics problem in dealing with take away orders. Another problem which she has been facing is that there is no coordination between the timing of promotional flyers and the preparations in terms of having sufficient stock purchases.
Describe the organization conducting the marketing in terms of factional efficiency and internal interface with the organization Although quarto’s uses the services of ready made marketing as a client, the owner Mario sartor makes all the decision related to the marketing himself and mostly without any consultation with ready made marketing. The owner of the marketing firm rose ready believes that although Mario sartor being the owner of his business has the right to do so he his decision are not always in the best interests of the business or its customers.
These are a number of suggestions which rose has given Mario but he has not taken them in to consideration. Describe the marketing system in terms of marketing information, planning and control All decision related to marketing are taken by Mario himself with or without consultation with the marketing firm. When inquired about new product development and forecasting sales, Mario was of the opinion that getting market research done was too expensive, he therefore Just uses the accountants tax figure and his own gut feel to determine the sales forecast.
An interview is also conducted with Adrian com ho has been made uncharged of the sales and promotions of the restaurants. On inquiry she responded that her skills and qualifications are in the field of kitchen management, but Mario had given her marketing position anyway. She was also asked about new product development and her response was that new product were developed based on Marion assessment of how exotic the new product was are how easy it was to make and that in his opinion testing new products by giving them away was too costly and counter productive to increasing sales.
Describe the marketing radioactivity in terms of profitability and cost effectiveness. It is the opinion of the owner of the restaurant that all the business need with respect to arresting is the delivery of regular flyers in letterboxes. Mario is of the opinion that advertising and promotion should be directed at getting next weeks sales only. However, Rose Ready informed that based on the surveys conducted, the feedback was that majority of the customers were of the opinion that flyers are mostly Junk mail. Rose had made the suggestion for engaging a PR specialist after Marion friend BEMA left the magazine.