Corey Harold

Annual Marketing Plan

MKTG341-101

Executive Summary
The Green Grove is a full service restaurant based on the notion of giving back to the community
and providing high quality food and service to customers. The Green Grove donates 10% of
every meals final price to a particular charity based on what the product is.
Target Market
The restaurant will operate in an area with a high median income level, which reflects the high
standard of living in the area. The target market is wealthy, older individuals with and without
children that make up a large share of the population in the area.
Product
The Green Groves products are of a very high quality and organic. Furthermore, the restaurant is
branded as a large contributor to the overall well-being to the community. One of the core
competiveness is the ability to provide a dining experience that not only leaves you full, but also
leaves you with the good feeling that they contributed to the well-being of others.
Price
The restaurant will utilize a prestige pricing strategy. This strategy is used because unit costs are
already high and a portion of sales are donated to charity. So, to convey quality, and value, the
prizes will be higher.
Place
The Green Grove is a one of a kind restaurant that is located in Silver Spring, MD on Colesville,
RD. It is currently the only restaurant within the company, and future expansion to other cities
depends on the success of this initial location. Expansion will be set around other wealthy cities
where the demographic is primarily wealthy. For example, San Francisco, Charlotte, and
Washington D.C. are ideal locations for this restaurant.
Promotion
To promote the restaurant and its brand, social media like Facebook and local news websites will
be used. Additionally, a company website will be established which will talk about the company,
the menu offerings, local farmer supplier partnerships, and customer reviews. Another
promotional activity is the initiative for the company employees and owners to participate in
community based events to establish relationships with potential customers. Furthermore, as a
benefit to customers, there will be a loyalty program that is based on the amount donated to
charity.

Introduction
The Green Grove restaurant is unlike any other restaurant. 10% of the final cost of every meal
goes towards a specific non-profit organization. Doing this creates a feeling of goodwill that
extends beyond food and beverages. This feeling is established with every customer that eats at
the restaurant and leaves the customer satisfied on another level. The focus of each individual
customer is shifted from an internal to an external focus. Not only do the prices go towards the
operation of the restaurant, but they go to an even better cause, people in need. The restaurant
taps into the need for people to do something for others and establishes a connection between
eating food and helping others. Typically, when eating a steak, there is no feeling of goodwill.
This restaurant changes that because 10% of the final price goes to the American Heart
Association.

Abbreviated Situation Analysis

Industry Category
The Green Grove is a full-service restaurant. According to the US Census Bureau, a full servicerestaurant is given the NAICS code of 722511 (CB). Currently there are 300,996 full-service
restaurants in the United States (CB). The restaurant is high-end and charges higher prices than
competitors. Additionally, the Green Grove offers American and Italian cuisine.
Addressing Competitors
The Green Grove is going to be established in Silver Spring, MD where there are 27 other
organizations that fall within the Accommodation and Food Services Industry (CB). Additionally,
5 of those organizations have 20-49 employees, similar to the amount of employees required for
a restaurant of the restaurants scale. The company will compete with Mandalay Restaurant, The
Classics, and Jackies Restaurant. The following table provides more detail about the Green
Groves competitors.
The Mandalay Restaurant is a direct competitor to the company. The company brings a
mix of dishes from the seaside to the mountains, using fresh ingredients and time tested recipes.
(MB) Their focus on high quality and offer of vegetarian options has the potential to steal
potential customers. However, since their cuisine is so exotic, it may turn away customers that
want a more traditional meal. Additionally, the company is running a charity campaign to help
those affected in the flooding in Myanmar. To participate, customers pay $50 and have access to
a buffet of the companys special dishes (MR). To compete, Mandalay Restaurant could offer to
donate a portion of sales to the campaign for flood relief. To counter this, the Green Groves
promise and deliverance of premium quality foods will be a core point to get across to
consumers. Furthermore, customers will have a stronger connection to the non-profit
organizations that the Green Grove donates to because they are closer to home. In the marketing

strategy, these two considerations will be at the center of the promotional strategy and, will give
us a competitive edge against the Mandalay Restaurant.
Another direct competitor in the Silver Spring restaurant market is The Classics. The
restaurant prides itself on having the best premium Angus beef (TC). Additionally, the company
says that their steaks are made with the most prized, premiere cuts and costliest cuts. Since steak
will be an important menu option on the Green Groves menu, they will be a strong competitor.
However, having the costliest cuts and lowest prices do not go together. The Green Grove could
use this to its advantage by showing consumers that there is a clear disconnect between the
quality of their beef and the price. Additionally, the Green Grove may charge higher prices, but
this reflects the use of premium beef and other products. Furthermore, the higher prices are
charged in order to donate to charity with every meal that is purchased.
Jackies Restaurant advertises as being the first independent contemporary American
restaurant (). Additionally the mention that they are a pioneer in bringing farm to table
cuisine in the area (). Their offerings of having food shipped to them directly from the farm, is a
point of competition for the Green Grove. However, the Green Groves connection to the farm is
even stronger, because 10% of the final price of salads at the Green Grove goes towards the
Organic Farming Alliance. With donating to non-profit organizations a core value of the
company, a down-to-earth atmosphere is created. Furthermore, the high prices of the Green
Grove will reflect a high-end dining experience that is not available at the other restaurants in the
area. The combination of these two factors creates a high end dining experience that is rooted in
helping society at large which is a unique environment that no other competitor offers.
Furthermore, the other restaurants do not offer Italian cuisine, so the Green Grove attracts any
customer that wants Italian food while still offering American-style foods.
Market Analysis
The Green Grove is a new business that is looking to establish a presence in the Silver Spring
area. The following table displays information about the current restaurant market in Silver
Spring, MD. The following figure depicts market and target data for the Green Grove.

Table 2. Market and Target Data for Silver Spring, MD

Main Basis of Segmentation

GEOGRAPHIC

DEMOGRAPHIC

BEHAVIORAL

PSYHCOGRAPHIC

Customers
value
for their
Customers
Customers
with 15 miles/30
with goodminutes
paying of
jobs,
themedian
business
income
Zip Code
>seeking
$75,000
Customers
higher
whomoney
prefer to buy organic food
Repeat customers (loyalty status)

Customers who do not mind Organically

paying for: grown food
Good food,
drink
andSpring,
Good serviceNo processed foods
Customers located within
Median
30income:
minutes$93,500
of locationGood
include
Silver
Columbia,
Vegan and vegetarian choices
Rockville,
Occupation: White Collar Customers with social awareness
Washington DC
Low calorie
Socio-economic profile: Upper Middle Class
Population: 37, 845 in Silver Spring
Consumer Spend: $960 MM
Customer base: urban
Age of Customer: 37.5

https://www.claritas.com/MyBestSegments/Default.jsp?
ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup#

This area has a population of greater than 37,000 people. However, it is important to note that
our location on Colesville Road is within 15 miles / 30 minutes of many populated areas such as
Columbia, Rockville, and Washington DC. The average age of our demographic target is 37.5
years of age with a median income greater than $93,500.
The Green Groves target market is wealthier, older people who either have kids or do not. This
is the best target market to reach because these categories of people make up a large portion of
the population in the Silver Spring area.
Research shows that Americans are becoming more and more health conscious; many desiring
organically grown food; no processed foods; and healthy choices to include vegan and vegetarian

offerings. According to Elizabeth Crawford, 35% of consumers associate vegan with health food
(Crawford, http://www.foodnavigator-usa.com/Markets/Vegan-is-going-mainstream-trend-datasuggests). Our plan is to buy locally grown food from local farmers, especially in-season as food
tastes so much better and, our grass fed beef from local farms as well.
Our research shows that customers in this age range are socially conscious who are willing to
support many charitable causes. Americans in 2014 gave an estimated $358.38 billion to
charity in 2014. Thats the highest total in the 60 years since the report was first published
(Giving USA Foundation, 2015, reported in Trends in Charitable Giving,
http://www.baileywealthadvisors.com/resource-center/estate/trends-in-charitable-giving .)
We at the Green Grove are excited at the chance to serve the community by offering a better
selection of healthy, organically grown foods, and helping to support local and national charities
through the generosity of our customers.
Mission
The Green Groves mission is to expose customers to a high-end dining experience with an
outward focus of helping others while providing fresh, quality, food and service.

Marketing Mix
Product
The Green Grove is a restaurant that provides full service delivered by people and equipment.
Chefs cook the food and then the food is delivered by waiters and waitresses. The following
figure illustrates the SWOT analysis for the Green Grove.
Figure 1. Green Groves Service & Product Analysis
Strengths

Weaknesses

-High Quality

-High product costs

-Customers feel good when they

contribute to charity

-Limited brand history

-Organic products
-Only Italian restaurant in area
Opportunities

Threats

-Strong Community Ties

-The Classics

-Various Markets to Expand to

-Jackies Restaurant

The core benefit of our restaurant is that it adds an element of goodwill to the dining experience
that is dissimilar than other restaurants and it will set us apart from the competition. Additionally
our cuisine will be American and Italian. The food and beverages will reflect the upscale area
and will be made with high quality products. Each product will be designated to a particular nonprofit organization. Not only will the proceeds go to non-profits that research human diseases
and cancers, but they will also go towards organizations that push sustainable and green
products. For example, the proceeds for salads will go towards the Organic Farming Alliance.
We will be able to charge these higher prices, in addition to adding benefit of helping others
because the standard of living is particularly high with average incomes of over $70,000.
Additionally, 49% of the population within the 20901 zip code makes over $100,000 ().
Core Benefits of the Green Grove
Relative to the competition, the Green Grove will be advertised as providing a greater benefit for
the community at large. Additionally, products will be marketed as being healthy and connected
to non-profits that push for organic food and the raising of food in better environments. Our
cows will be grass fed and happier. This happiness will connect with customers who are directly
benefiting those cows and humans alike depending on the products that they purchase.
Furthermore, the products will reflect a high quality. Figure 4 illustrates how customers will view
the services of the Green Grove and its competitors with the core values of quality and charity.
Figure 2. Perceptual Map
High Quality
The

Low
Chari
ty

The Green

High
Chari
ty

Jackies
Mandalay

Low Quality

Branding
The company logo is a sleek, clean design that includes warm and earthy colors. The following
figure is the company logo.

Figure 3. The Green Groves Logo

The colors are purposeful. The dark red conveys value and the earthy colors reflect the
connection the company has to its name. Since one of its core competencies as a supplier of
organic, wholesome food, the earthy colors are a reflection of that. Additionally, the branch on
the logo reflects the companys dedication to others. The olive, a symbol of peace reminds
customers to be willing to give to others whether that is peace, assistance, or friendship.
The Green Grove does not currently produce any particular sauce or seasoning that could be sold
individually in stores. However, if a specialty product were to be developed, the logo above
would likely be used for product packaging. Additionally the package would include a similar
color scheme, and would be made with a dark bottle, to resemble that of a bottle of wine.
Price
Demand for The Green Grove is elastic. Customers do not have to eat at a restaurant, and instead
can eat at home. When they do decide to eat out, they can provide a benefit to the community at
large by eating at our restaurant. Furthermore, the average meal for one person will cost
anywhere from $30 to $60 dollars. There are two viable pricing strategy options available,
prestige pricing and price skimming. Additionally, by creating strong relationships with local
farmers, product costs may decrease.
The Green Grove will use a prestige pricing strategy. Because the company will already
charge higher prices to be able to give 10% of every product sold to charity, higher prices are
necessary. Furthermore, the quality of the food is grass-fed and organic, so that will increase
product cost which will increase the final price. With these two forces already at play and a core
of the restaurant, it makes sense to set even higher prices to attract the high-end, wealthy
customers.
The price skimming strategy could be an effective alternative pricing strategy. The Green
Groves products will reflect quality and greener initiatives while helping others, so naturally
more expensive prices will be higher. However, prices could be raised even higher to reflect the
utmost quality. This could be effective as the people in the surrounding area tend to be older and
wealthy with the average income over $70,000. However, slowly lowering the price could push
the wealthy market elsewhere, but we might get a wider customer base with the lower pricing.

Overall, it would be an effective strategy because lowering the prices may not lead a large
positive increase in sales. Additionally, the products will be seen as being made with the utmost
quality, and then customers will want to try it. It will be an upscale restaurant that pushes
sustainability and green while helping the community at large. The high prices will attract
wealthy individuals.
The Green Grove will utilize direct marketing channels whenever possible. The restaurant
will work directly with the local farms and establish long-term relationships. In this way, there
are no middle men that will increase the cost of purchasing the food products. However, when
the restaurant has to use inventory that is not available regionally, the company will likely have
to go through intermediaries.
The Green Grove will take advantage of an array of discounts from within the supply
chain. The restaurant will establish partnerships with local farms to purchase fruit and vegetables
that are in season. A lot of the produce from the local farms will be purchased by our restaurant,
meaning that we could purchase in bulk and talk down a lower price. If it is not possible, then the
difference is a concern, but is compensated with the prestige pricing strategy. When vegetables
are not in season, organic products will be purchased from warm-weather states like California
and Florida. In this case, the likelihood of receiving a discount is slimmer. In similar situations,
our competitors will likely reach out to similar companies in these states. With little option, and
the fact that the restaurant is not a chain, the Green Grove could not bargain for a discount.
For the meat portion, we would look to connect with local or regional farmers. The proximity to
the restaurant would mean fresher meat and better quality food. The quality is further increased
when the cows are grass-fed. Similarly, the same action would be taken for the other meats like
chicken and pork. Furthermore, the Italian dishes will be made with local fish and seafood to
further connect the restaurant to the community.
Place
The restaurants services will be limited to the Silver Spring area with exclusive distribution.
Only the restaurant will sell the services and products of the company. Eventually, based on the
performance of the restaurant, an additional location will be opened in Washington, D.C.
Additionally, there will be a company website that customers can visit to learn more about the
company and its offerings.
As the success of the company grows the strategy will continue to be exclusive distribution.
Restaurants will be placed in wealthier neighbors with high levels of income where the
companys market segments of older wealthy individuals with and without children are located.
Typically areas with the same market segments are in the suburbs of major cities, so all
restaurant locations will be near a major city.

Promotion
The promotional program for the Green Grove will include utilizing online social media sources,
a company website, and participating in community-based events. Because our market segments
are wealthy, older people with and without kids, the Green Grove will also use more traditional
media outlets
An important resource, in terms of promotional activities is the use of social media such as
Facebook and local news sites. Since our demographic is older, they are likely to be resistant to
using younger, more popular social media outlets such as Twitter and Instagram. Using this
information, the social media resources the company would focus on would be more geared to
the later generation. Additionally, under local news sites, we could have our Green Grove
restaurant placed in a new and upcoming segment. Furthermore, we could have an article written
for our restaurant online at a site where it would be seen by those searching for restaurants or
other sites to visit.
The company will utilize a website that will increase customer reach. Customer reach is
spread because the website can easily be found by potential customers looking for a high end
restaurant in the Silver Spring area. Additionally, customers can use the website to comment on
the websites food and services. So, the website can be used as a positive resource for people
who stumble upon the Green Grove website. Furthermore, on the website there will be a
suppliers page with the local farms that the Green Grove uses to fill their inventory. This would
give positive press for the website and the farms because it would promote the higher quality
food sources.
Figure 4. Website Homepage

Community-based events are an effective strategy to spread the Green Grove name. The
older, wealthy, individuals in Silver Spring likely look for extra-curricular activities to participate
in to take up their free time. To use this to our advantage, the company owners and employees

will participate in community based happenings and events. In this way, we as the owners of
green grove can establish a relationship between the people who are active in the community.
Furthermore, this would be positive press for the restaurant as one of its core values is benefiting
the community as a whole. The positive image of having a strong connection to the local
community will spread the restaurants name and brand.
To increase the benefit to customers, the Green Grove will institute a loyalty program.
Customers that sign-up will be eligible to earn a free appetizer or dessert. However, to earn the
free food, customers must pass a donation threshold. This threshold is set at $25 and is the
amount that a customer must accrue in non-profit donations by ordering meals at the Green
Grove. For example, if a customer spends $30 on their meal, the 10% taken out for charity will
equal $3. Once that amount has passed $25, they are eligible for a free appetizer or dessert. It
would be hard to pass the threshold in one meal, so the customers would once again be visiting
the restaurant and giving back to the community through their purchases. In effect, the restaurant
will further emphasize the importance of community service and how it is beneficial to all
people.

Works Cited

http://mandalayrestaurantcafe.com/
http://quickfacts.census.gov/qfd/states/24/2472450.html
https://www.claritas.com/MyBestSegments/Default.jsp?
ID=20&menuOption=ziplookup&pageName=ZIP%2BCode%2BLookup#
http://quickfacts.census.gov/qfd/states/24/2472450.html
http://censtats.census.gov/cgi-bin/zbpnaic/zbpsect.pl