BUS530-BE Marketing Proposal PDF

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marketing proposal section for the week's agenda....

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1 Running head: SANTA FE GRILL PROPOSAL

Marketing Proposal – Santa Fe Grill

Ebony Chew BUS530-BE Marketing Management Professor Christina Gonzalez February 15, 2021

2 Running head: SANTA FE GRILL PROPOSAL Assignment Title: Portfolio for Santa Fe Grill Student: Ebony Chew Date: March 9, 2021

Instructor’s feedback (specific listing of the error)

-Running head" should not be in all capital letters, just the title next to it. -Please remove the additional spaces between each heading and paragraph. -The perceptual map needs additional detail as each colored circle doesn't provide enough details. -Remember to label all tables (household income)

-I don't see the additional detail on the perceptual map added. I will email you the exemplar (page 6) so you can see how adding the names of the businesses helps to determine what each bubble represents.

-No errors or corrections needed.

-No errors or corrections needed.

-No errors or corrections needed.

How the error was addressed by the student.

Page numbers where change appears

I fixed the running head correction; I removed all additional spaces between the heading and paragraph. I added additional detail to each colored circle, and I added labels to all the tables.

P. 1, 7, 8-9

I fixed the additional detail on the perceptual map.

P. 6-7

3 Running head: SANTA FE GRILL PROPOSAL

Table of Contents Introduction......................................................................................................................................5 Segmentation of Customer..............................................................................................................6 Perceptual Map.........................................................................................................................6-7 Common Characteristics of customers and trend lines............................................................7-9 Research Methodology....................................................................................................................9 Descriptive Variables............................................................................................................10-12 Design of Hypothesis...........................................................................................................12-13 Research Questions..................................................................................................................13-15 Data Analysis - Findings of ANOVA.............................................................................................16 Present Tables and Graphs.............................................................................................................16 Development of New Corporate Strategies...................................................................................17 Statistical Analysis Comparison...............................................................................................17-18 Limitations.....................................................................................................................................19 Budget Proposal.......................................................................................................................19-20 Executive Summary.......................................................................................................................21 Research objectives...................................................................................................................22 Concise statement of method.....................................................................................................23 Summary of key findings...........................................................................................................24 Conclusion.................................................................................................................................25 Recommendations......................................................................................................................26 References......................................................................................................................................27

4 Running head: SANTA FE GRILL PROPOSAL

List of Figures and Tables

Figure 1.0 - Perceptual Map............................................................................................................6

Table 1.1 - Number of Families.......................................................................................................6 Table 1.2 - Age Population Growth.................................................................................................7 Table 1.3 - Median Household Income........................................................................................7-8

5 Running head: SANTA FE GRILL PROPOSAL

Introduction Santa Fe Grill is a Mexican restaurant that was started up by two business students who were roommates and pursued to become entrepreneurs. After graduating from college, they decided to create and open a business rather than work for someone and both had work experience in the restaurant field. After preparing a business plan and thoroughly researching the demographics and competition they decided to open the business in Dallas, Texas. They had everything planned out for example, having fresh ingredients and preparing foods from scratch however, the restaurant was not successful as the owners had planned it to be so in order to improve the operations, they conducted surveys to better understand customer feedback as well as decision-making.

6 Running head: SANTA FE GRILL PROPOSAL

Segmentation of Customer The purpose of this study is to understand how to manage the customers by providing data that will be used. As one can see the types of characteristics of customers, trend lines, as well as the perceptual map will help better determine how Santa Fe Grill can improve business more efficiency as it is extremely important to understand the customers and gain in depth knowledge to their expectations and needs. Perceptual Map The perceptual map helps provide a visual presentation in comparing products and customers perceptions. Shown below is the perceptual map of Sante Fe Grill along with its other competitors. Santa Fe Grill seems to appear in the middle of the map on all 4 attributes. For example, the green circle represents the Habit Grill and was very close to the center radius as meeting all four attributes that consumers expect and need. It indicates that the Habit Grill quite a competitor for the Santa Fe Grill as they are both close to one another and that will be something the business owners will have to discuss about in order to continue being successful. The blue circle represents Chili’s Bar & Grill and shows that consumers believe the restraint is convenient but not as valuable as they would like it to be. The purple circle represents Ancho’s Southwest Grill which shows that more consumers based their food more towards the value and slightly it being convenient. Lastly, the red circle represents Santa Fe Grill which indicates they can meet and achieve the criteria for all four attributes. The food quality is median,

7 Running head: SANTA FE GRILL PROPOSAL and the trend indicates that food quality at casual dining restaurants is lower than formal dining. This is an opportunity for the business owners capitalize on.

Santa Fe Grill Map

Figure 1.0 - Perceptual Map Common Characteristics of customers and trend lines The business owners of the Santa Fe Grill have identified common characteristics of their potential customer in regard to their targeted demographic. Table 1.1 shows the improvement growth of families in Dallas, Texas over the years including those with children under the age of 18 as being their target customers. However, the number of families increased significantly as well as the residents who are targeted market. The increase in the number of families and percentage of the targeted age shows opportunities for the business owners to increase the customer base. As one can see in Table 1.2 the age population has grown over the last three years which means that a lot of people have started to relocate to Dallas, Texas as it is a very popular

8 Running head: SANTA FE GRILL PROPOSAL place to move to and affordable. Therefore, the more people move the more they will be liking to eat at Santa Fe Grill as long as the owners continue to promote their business. The business owners decided to purse to open a Mexican restaurant due to the booming population and economic growth in Dallas, Texas. Table 1.3 illustrates the population growth and median household income from 2017 to 2019. It shows a significant increase in 2019 of the household incomes meaning that since the job market is starting to get back on track with the median average income between $50,000 and $61,000 a year which means that the market has enough income to eat out regularly (Hair, Celsi, Ortinau, & Bush, 2017, p.18-19).

Families with Children in Dallas, Texas Without Children

37%

With Children

0%

64%

10%

20%

Table 1.1 - Number of Families

30%

40%

50%

60%

70%

9 Running head: SANTA FE GRILL PROPOSAL

Age Demographic in Dallas, Texas 60-69

9%

60-69

9% 11%

50-59

12%

40-49

16%

30-39

18%

20-29 14%

0-19 0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Table 1.2 - Age Population Growth

Median Household Income Dallas, Texas 9%

Over $200K

17%

$100k-$200K

29%

$50K-$100K

45%

Under $50K 0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Table 1.3 - Median Household Income Data provided by https://www.census.gov/quickfacts/fact/table/dallascitytexas/PST045219 for all three tables. Research Methodology Now that the owners have figured out their targeted consumer audience and perceptual map the next step is to focus on the long-term overall view of their restaurant considering the expectations and recommendations are yet to be met. Both owners know the importance of understanding their customer satisfaction and loyalty which helps boost the restaurant and have consider studying their competitors by learning from their success and failures. Once again at the

10 Running head: SANTA FE GRILL PROPOSAL very beginning they thought the business would start booming instantly and little did they know then that it requires starting small and working their way up to achieve the goals of having a successful restaurant business. By them taking the best approach which is to conduct surveys it will help them better understand their strengths and weaknesses compared to the competition. When conducting marketing research to gain insight information the best approach for the owners to consider is secondary data. The secondary data does not gather the immediate study but for other purpose. They are increasingly used to examine marketing problems due to the speed and cost-effectiveness of obtaining data (Hair, Celsi, Ortinau, & Bush, 2017, p. 50). Next, a literature review would come into place as it is essential and beneficial to research. Acquiring a literature review helps explain and describe the research problem and research questions. It helps uncover other studies of consumer advertising engagement. That leads up to creating a hypothesis. Descriptive Variables Santa Fe Grill’s three main focus areas they should consider are employment characteristics, economic data, and competitive characteristics. The employment characteristics is important as it determines the number of incomes people have and whether or not they are able to dine in regularly at the restaurant or have to cut back. For example, shown below is the unemployment rate in Austin Texas “lingered at 3.4 percent for the fourth consecutive month, while the jobless rate for the nation ticked up to 3.6 percent”(Austin Economic Indicators, 2019). The job

rate at that point is that it was difficult for those to keep a steady income depending on the profession and industry. However, the employment growth shows significantly increasing in areas of the professions therefore, the individuals and families can afford to dine in.

11 Running head: SANTA FE GRILL PROPOSAL

Austin Chamber explains, “Economic Indicators is a number update on select indicators in the Central Texas region that chronicle economic activity on a monthly or quarterly basis.” As one can see above Austin is a pretty good place when it comes to job security, so the business does not have to worry about the per capita decreasing. The economic data is important as it determines the number of incomes people have and whether or not they are able to dine in regularly at the restaurant or have to cut back. The median household income is roughly estimate of $55,000. The chart below shows the different incomes starting with the age range. The target age ranges from under 25 to the over 64 (Dallas, Texas (TX) income map, earnings map, and wages data, n.d.). The age group 25 to 44 is significantly

12 Running head: SANTA FE GRILL PROPOSAL increasing on household income and shows vast improvement and opens a wide opportunity for the owners as their per capita continues to increase in the range and it shows that the people can afford to eat at Santa Fe grill.

Source: https://www.city-data.com/income/income-Dallas-Texas.html Third, the competitive characteristics are essential as they provide the different competitors and the number and types of retailers that are on the market. Now that Santa Fe Grill is in competition, they are going to have to consider the following: recession, diversity, and delivery service. The owners will need to consider emergencies for example, a recession which hasn’t been affected since 2001. Throughout the years it is important for them to save up money and put it into an emergency fund in case anything occurs that way they do not have to take out any personal loans to continue opening the restaurant. The owners need to take in consideration the diversity in the industry. Writer Maze states, “A plan of action should include policy changes to minimize unconscious bias, engagement of communities of color to build the talent pipeline and metrics to track results” (2018, p. 1). Incorporating diversity opens new talent and opportunity for the business especially when it comes to working with other businesses in the future. The owners should consider a mentorship program that will allow both employees and potential employees to get to know one another and hear different thoughts and opinions on topics. Design of Hypothesis

13 Running head: SANTA FE GRILL PROPOSAL Below are three hypothesis (both the null and alternative) the restaurant owners should take into consideration in order to achieve their main goals and objectives. 1. Hypothesis1 H0: No connection to the quality of the food and the restaurant’s capacity to increase the customer base. Hypothesis 1 H1 : By increasing the quality of the food the business has the advantage of a needless part in the market to increase customer base. 2. Hypothesis 2 H0 : No relationship between the environment and the restaurant’s capacity to increase the customer base. Hypothesis 2 H2: By changing the environment it will increase the customer base. 3. Hypothesis 3 H0 : No relationship between the menu items and the restaurant’s capacity to increase customer base Hypothesis 3 H3 : By adjusting the menu items to include kid options they will captivate additional families and increase the customer base. Research Questions 1. Did Santa Fe Grill make you feel valued as a customer? This question addresses the customers feelings being valued as this is one of the main reasons’ customers choose to dine in at the restaurant. The owners want to make sure the customers are taken very cared for and by maintaining that will increase the relationship between the customer and restaurant. 2. How regularly do you dine with us? This question is a great to introduce as it is important to understand how customers regularly eat. For the owners it is going to be extremely important for them to keep track of their loyal and consistent customers that eat at the restaurant because throughout the years

14 Running head: SANTA FE GRILL PROPOSAL they will be receiving new and original customers, so it is important for them to always check in on their customers from time to time. 3. How did you feel about our customer service? This question is helpful as it allows the customers to tell their honest thoughts and opinions on the customer service they received. There will be good and bad feedback from how the customers felt about service and it will be the owner’s responsibility to go over the customer feedback with the waiters and discuss improvement so they can learn from their mistakes and do better for the next service. 4. How did you find us? There are a variety of restaurants that consumers go to constantly some are far, and others are close. This question helps address on customers thoughts and opinions on finding the restaurant. Whether it is hearing about them on the television, magazines, or internet. All three ways are great ideas the owners have chosen to promote their restaurant and will continue to do so. 5. What are the main reasons you chose to dine with us today? This question allows the business owners to reflect on the customers opinions of choosing to dine in at Santa Fe Grill. The main reasons can vary such as customer reviews, the environment in the restaurant, and location. The owners should consider offering an incentive into their restaurant for example, free Wi-Fi as it allows the customers to interact on the internet while waiting to be served. 6. What things can we improve upon? This question is important as the restaurant starts to become more and more successful it is important for the customers to provide feedback on improving the restaurant. There is

15 Running head: SANTA FE GRILL PROPOSAL always room for improvement thus, that is how the business owners will maintain successful throughout the years. 7. Where did you look before coming to our restaurant? This question is helpful as it allows the owners to understand the customer’s needs and expectations of what they are looking for which led them to Santa Fe Grill. The restaurant has a variety of competitors around them so the owners will need to continue promoting and advertising the restaurant in a unique way that sets them apart from the competition and attracts more customers. 8. Where did you hear about us? This question is an opportunity for the owners to get to know how the customers and visitors discovered the restaurant. It will provide valuable feedback on what marketing efforts work effective and which will not. As well as allowing the customers the opportunity for some additional follow-up questions to learn more about the customers. Data Analysis - Findings of ANOVA Based on the ANOVA results from the response on the questionnaire the importance of the location is the most important factor and the importance of having a bathroom is the least important factor to the respondents. The second highest important factor is how important is the menu. The medium level of importance is how important the price is and how important the service is from the re...