CHINESE RESTAURANT

MARKETING PLAN

Bilal Hamid

BBE / 537
9/12/2009
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TABLE OF CONTENTS

Contents Page #

Executive Summary
……………………………………………………………………………………… 3
Market Needs
……………………………………………………………………………………… 4
Market Analysis
……………………………………………………………………………………… 4
Market Trends ……………………………………………………………………………………..
5
Market Growth ……………………………………………………………………………………..
5
Mission ……………………………………………………………………………………..
5
Service Offering
…………………………………………………………………………………….. 6
Positioning
…………………………………………………………………………………….. 6
SWOT Summary
…………………………………………………………………………………….. 7
Objective & Strategy
…………………………………………………………………………………….. 8
Branding & Messaging
……………………………………………………………………………………. 9
Strategy Pyramids
…………………………………………………………………………………….. 10
Marketing Mix
……………………………………………………………………………………………. 11
Financial Analysis
…………………………………………………………………………………………… 12 - 17

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Executive Summary:

Mr. Chen Leon Tang is a Chinese National an expert cook who is interested in opening
a Chinese Restaurant in Karachi. He has the capital of Rs. 4,000,000.

Mr. Tang has directly invested Rs. 2,600,000 in the business and hold back Rs.
1,400,000 for Working Capital Management.

He rented a bungalow in PECHS, and paid Rs. 900,000 to land-lord as security deposit.
His main investment was on fixtures. He hired 6 people to run the restaurant from
which 2 are chefs.

The location of the restaurant is surrounded by the residential bungalows, where he

estimated 200,000 potential customers.

Mr. Tang’s is following the long term financial objective therefore he carefully prices
the menu because he understands that there is good market growth for his business
in 5-6 years time.

The Restaurant has a clear mission of treat customer on best possible levels for
earning repeat business.

Mr. Tang’s offering includes 100 + selected meals and desserts with the average item
cost Rs. 283. Mr. Tang set his contribution margin for the 1st year is 15% which he has
the plan to rise in the coming years in ration with the operating cost.

Mr. Tang’s Marketing objectives include advertisement and events arrangements, but
since he cannot afford to spare large marketing budget he is mainly he is relying on
word of mouth.

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The estimated sales and income statements for the restaurant is attached, which
predicts that it would take about 6.4 Years / 54,000 customers to Mr. Tang to break
even with the total cost (investment).

Market Needs:

• The City of Karachi has great potential for cultural diversified foods. The
Karachitees love food and they like to experience in it.
• There are almost 50+ Chinese Restaurants are operating in city, but small quantity
of them are truly satisfying the taste and requirements of their customers.
• Most of the Chinese Restaurants operating in the City are run by the Locals,
• There is a need for a truly significant Chinese restaurant which is operating under
native Chinese chefs.
• Mr. Chen Leon Tang is the Chinese National. He has experiences in Chinese
cooking. It would give him a opportunity to fill the market need.
• The consumers will feel the difference and an exciting experience.

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Market Analysis

Growt 2009 2010 2011

h

Potential Customers

Adults 5% 100,00 105,00 110,25

0 0 0

Teen age 4% 65,000 67,600 70,304

Office employees 2% 3,000 3,060 3,121

Total 4.56% 168,0 175,6 183,6

00 60 75

Market Trends:

• There is a Market Trend rising that people try to choose healthy food rather than
the junk food.
• This Market Trend is arising due to various diseases such as cardiac arrest, high
cholesterol etc which occurs due to the high cholesterol fast foods.
• The media is vibrant on this issue also.
• On the other hand, Chinese food are world-wide renowned for their healthy
ingredients which are not only good for stomach but also good for the health.
• The Trend of taking healthy food will continue to grow in the future.

Market Growth:

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• There is an overall Market Growth seen in the restaurant segments.

• There are many international fast foods chains are successfully operating in the
market.
• The growth in Target Market of Chinese Restaurants is also good.
• There is a segment of people who enjoy the calm environment for their eating out
and gatherings.
• The Chinese Restaurant is the place where one can experience the eastern cultural
values.

Mission:

• Our mission is to delight the customer with our service and food.
• Provide customer the welcoming environment where they feel comfortable
to experience new food
• And offer them the best value for their money, profitably!

Service Offering:

The Restaurant will offer Chinese dishes with variations menus in Chopsuey, Fish, Prawn,
Wonton, Chicken, Beef, Noodle, Rice, Hot & Cold Drinks, Ice-cream and Various Soups.

Positioning:

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• The main positioning of the restaurant is focused on the family oriented peace full,
healthy and quality dine out experience.
• The overall positioning is the value added customized service where customer is
valued and respected.

SWOT Summary:

The expertise of Mr. Tang in Chinese cooking is the main strength of restaurant, where
he is confident for the repeat business. The offering includes variety of Chinese dishes
the area is suited for the restaurant but to initiate the business the larger operational
expenses would be required to meet the quality as well as the economical crises.

Strengths:

• Mr. Chan Leon Tang has his true expertise in the area of Cooking Chinese Dishes.
• He is confident that his experience and expertise is better than anybody in this
particular area.
• We offer home delivery in the 2 km surrounding area.

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• Through our website, customers can learn more about the healthy food and take
advantages of learning about the ingredients we use in our food.

Weaknesses:

• Additional funds are needed to maintain the quality of the experiences offered and
meet future program demands.
• We don't have large budget of marketing therefore we first rely on word of mouth.
• The training and orientation of new staff is required.

Opportunities:

• The area of PECHS is strategically is on good location for Restaurant, as it is

surrounded with bungalows, and the income level of people are very good.
• In general people like to dine out and caring out different events in restaurants,
therefore the opportunities are obvious.
• There is no Chinese restaurant in that area who is offering home delivery.

Threats:

• Economy: full recovery from current recession may take time.

• The BBQ spots: offering traditional BBQ food to people on fewer prices than ours.
• Load Shedding: cost more capital to maintain the Air conditioning environment
hence disturbs price structure as well.

Financial Objectives:

• To always maintain a minimum cash balance of Rs. 100,000.

• To achieve sales of Rs. 15,000,000 in year one

Marketing Objectives:

• The objective is to provide a experience of eating Chinese food in a relaxed

environment to as many people as possible.

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• On average basis the objective is to gain business twice a month from a single
customer, whether it's dined in or take away.
• The objective is to aware people about the benefits of healthy food through
website and other media.

Target Market Strategy:

• The first target market strategy is the families and couples to enjoy meal at
restaurant.
• The second target market strategy to introduce meals to the teen age group who
spend 200 to 500 on BBQ and on Fast food.
• Third Target market strategy is to introduce our menus in the surrounding
companies head offices residing the neighborhood bungalows for their business
lunch orders delivery.

Branding:

With our kind of offering, branding is a slow process of word of mouth and repeat
business. We do however need to use the logo on our website and on promotional
brochures which depicts the importance of healthy diet. We also need to always work
towards establishing ourselves as the acknowledged experts in our field.

Messaging::

Adults: Taking healthy and balance food helps nurturing better family
and relationship.

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Teen age: Hygienic and low fat food is good for developing minds.
Office employees: Develop better relationship with your customers by offering them
healthy
Business lunch.

Strategy Pyramids:

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Marketing Mix:

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Product Marketing:

Product: high quality and healthy food accompanied by personal service, differentiated from
competition quality with the overall brand strategy has proven to be a successful approach
generating high levels of repeat business.

Pricing:

Our pricing needs to match our positioning, we cannot afford high end or cheap prices therefore we go for the economical pricing
strategy:

The average pricing of the most demanded items are as follows: -

• Average Soup Menu Price: Rs. 270

• Average Choupsuey Menu Price: Rs. 283
• Average Fish Menu Price: Rs. 357
• Average Prawns Menu Price: Rs. 344
• Average Chicken Menu Price: Rs. 295

Promotion:

• Our Promotion Strategy focus on html based Emails about our meals, menu additions, update menu pricing and services to
our customers.
• The email addresses will be obtained through the feedback forms which we bring with the bill to the customer.

Advertising:

• We do not have a large advertising budget and will not be advertising in the print media.
Instead we distribute our brochures in the target market through newspaper hawkers.
• We also focus on Social Responsibility Marketing by inviting hospitalized children for free
lunch and offering single free lunch coupons to neighborhood school children so they bring
their parents for lunch, etc.
• This campaign can help gaining the restaurant respect in the area, brand recognition and
print media coverage as well as it will help attracting new families to visit the restaurant.

Implementation:

We will manage implementation by having a weekly meeting with the staff to make sure that we
are on track with our plan.

Financials:

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Total Budget 4,000,000

Hold Money for Working Capital Management 1,400,000

Safety Deposit (Land lord) 900,000

Balance 1,700,000

Supplies & Purchases

A/Cs 208,000
Gen-sets 700,000
Cutlery 150,000
Carpet & Decoration 20,000
Cooking Range 20,000
Deep freezer & Fridge 30,000
Furniture 200,000
Stationary & Printing 5,000
Computer & Communication 25,000
Misc 5,000
Section Total 1,363,000

Balance 337,000

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Product Costing :
(Raw Material + Carriage in)

Avg. Soup Menu Cost ……………………………………. 229

Avg. Choupsuey Menu Cost …………………………. 241
Avg. Fish Menu Cost …………………………………….. 303
Avg. Prawn Menu Cost…………………………………. 292
Avg. Chicken Menu Cost………………………………. 251

Income Forecasts:

Forecasted Income Statement

2009
Sales 1,01

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7,105
88
Cogs 4,439
1
Gross Profit 32,666

Operational
Expenses:
Fix Cost
150,
Rent 000
40
Utilities ,000
90
Salaries (x 6) ,000
28
Section Total 0,000

Marketing & Promotional Expenses:

Brochures Printing & 15
Distribution ,000
Special Invitation & Free 20
Coupons ,000
20
Banners & Signboard ,000

Section Total 55,000

(20
EBIT 2,334)
(20
EAT 2,334)

Forecasted Income Statement

2010

2,90
Sales 1,550

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2,52
Cogs 3,087
3
Gross Profit 78,463

Operational
Expenses
Fix Cost
160,
Rent 000
50
Utilities ,000
96
Salaries (x 6) ,000
30
Section Total 6,000

Marketing & Promotional Expenses

Brochures Printing & 5
Distribution ,000
Special Invitation & Free 10
Coupons ,000

Banners & Signboard -

Section Total 15,000

EBIT 57,463

Income Tax 5% 2,873

EAT 54,590

Forecasted Income Statement

2011

9,77
Sales 7,096

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8,50
Cogs 1,823
1,2
Gross Profit 75,273

Operational
Expenses
Fix Cost
170,
Rent 000
60
Utilities ,000
102,
Salaries (x 6) 000
33
Section Total 2,000

Marketing & Promotional Expenses

Brochures Printing & 5
Distribution ,000
Special Invitation & Free 10
Coupons ,000

Banners & Signboard -

Section Total 15,000

92
EBIT 8,273

Income Tax 5% 46,414

8
EAT 81,860

Contribution Margin:

If the restaurant sets higher price its sales will affect, and if restaurant sets the lower price so its
profits. Therefore the restaurant should set moderate price and search ways to lower fixed and
product cost to achieve the Target Profit.

Contribution Margin 2009 15%

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Contribution Margin 2010 18%

Contribution Margin 2011 21%

Break-even Analysis:

• To Break-even with total investment of 4,000,000 the restaurant has to serve 54,000
customers.

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