Copy of Retail Assignment- Outline Template East Side Mario\'s PDF

Preview

Summary

Retail Assignment ...

Description

RUNNING HEADER: RETAIL ASSIGNMENT

Retail Assignment: East Side Mario’s Introduction to Marketing MKTG1000 Lilly Tepera Tuesday, October 15th, 2019

Table of Contents

Introduction…………………………………………………………………………………… 3 Secondary Research…………………………………………………………………………... 3

RUNNING HEADER: RETAIL ASSIGNMENT 2

Observational Research………………………………………………………………………. 4 CREST…………………………………………………………………………………………...6 Conclusion……………………………………………………………………………………... 11 References…………………...………………………………………………………………… 12

Introduction The purpose of this assignment was to develop proper research skills by way of

RUNNING HEADER: RETAIL ASSIGNMENT 3

observation. The chosen retailer to study was the Italian restaurant called East Side Mario’s. The location visited was in Barrie at 451 Bryne Drive. This took place on Thursday, September 26 at 11am and continued until approximately 4pm. Lunch traffic was observed that day.

Secondary Research The first East Side Mario’s was founded in 1987, in Whitby, Ontario. The original East Side Mario’s was actually called Pat and Mario’s restaurant, the main objective was to establish a successful takeout pizza and pasta business. Now the establishment is known for their Amarican styled Italian foods. East Side Mario’s states in their story that they “wanted to bring a little bit of italy to [their] guests. To show hospitality and passion for great food that Italians are known for around the world- and having fun doing it” (East Side Mario’s, 2019). East Side Mario’s is now owned by a conglomerate company called Recipe Unlimited Corporation, previously Cara Operations Limited. They own 19 restaurant chains including such restaurants as The Keg, Montana’s, Kelsey’s.... And the list goes on. The company employs more than 38,000 people, and the total sales as of Dec 30, 2018 were $1,006,672. East Side Mario's is a Canadian chain of casual dining restaurants which have 75 restaurants in 60 cities in 9 Canada’s provinces. Some of these restaurants are located in Britsh Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Quebec, New Brunswick, Nova Scotia, Newfoundland, and Labrador.

Observational Research During observation (observation time: Thursday, 26th of September, 11AM - 4PM) 16 tables

RUNNING HEADER: RETAIL ASSIGNMENT 4

were occupied: Group of

Families

Families of Couples

Friends

people

of 5

4

(same

Single

gender) The number 3 3 5 4 1 Demographic and psychographic factors are significant because knowing your audience is the key to success. Demography studies customer’s vital characteristics such as age, gender, race, income, etc. East Side Mario’s is known not only for its delicious food but also for warm and relaxed atmosphere, so it is a good option for friends’ or family meeting, or a date. As East Side Mario’s is often chosen as a place to have lunch or dinner in a company of friends, family or colleagues, there was only one single person in the cafe during 5-hour observation. The people observed were older than 35 years approximately with the exception of 4 kids who came with their families. Based off of the observation the establishment is not popular with teenagers and children. The amount of people of different genders is equal 24 women and 22 men. East Side Mario’s main business focus is on the delivery of exceptional customer service and high quality food at an affordable price for families of all incomes. The main products that this establishment demonstrates expertise in is pasta and food service. Based off of the observational research the most popular item ordered was various pasta dishes, beverages, and bread as well as soup or salad. East Side Mario’s is known for the “all-you-can-eat” promotion this is highly demonstrated through the customer’s various orders. Out of 16 tables; a total of 42 customers were observed, 38 people had ordered the “all-you-can-eat” promotion with pasta entrees. A couple of retailers that follow suit by way of promotion is Jack Astor’s with their

RUNNING HEADER: RETAIL ASSIGNMENT 5

signature “Pan bread” and Montana’s offers all you can eat ribs on Wednesday. Also Olive Garden is a close match to East Side Mario’s with their offer of breadsticks and salad with a pasta dish. At times, they also offer an unlimited bowl of pasta, satisfying many of the same consumers that could enjoy a similar experience at East Side Mario’s. East Side Marios at 451 Bryne Drive is a one-floor, middle-sized restaurant in the south end of Barrie, Ontario. It’s placed next to the Mall in a well-crowded area. The establishment is a black and red building with a memorable saying “HOME OF ALL-YOU-CAN-EAT”. As the clients walk inside the first thing that they can observe is a red motorbike tied to the ceiling right next to the entrance. It seems like it is exactly what a local of a small Italian province would ride. And not only that, the whole place looks like it was designed to give its customers a real Eastern Italian experience. Red, white and green are dominant colors both in styling of a menu and a hall. A room is equipped with cozy, comfy couches matching the rest of the interior. The colorful lights and blackboards depicting the process of making some of Marios’ dishes and sauces serve as the decor. The music is primarily a light pop. Songs of Sam Smith, Ariana Grande, Taylor Swift and other well-known modern singers accompany guests while they spend their time at a restaurant. The menu is executed in really bright colors that catch the eye. It also includes high-quality photos of the dishes that immediately make you want to try them! The assortment as well is diversified with gluten-free and vegetarian offers, so that every client finds something delicious that matches their personal needs and expectations. Pricing may be referred to as average. Prices for drinks vary from 7 to 17 canadian dollars. For pizza - between 16.99 and 23.99. Regular pasta costs 14.55 dollars. Although on Wednesdays, East Side Marios pleases it’s customers with a special offer called “All-you-can-eat”. Guests can order a bowl of a regular pasta (without a topping, they go

RUNNING HEADER: RETAIL ASSIGNMENT 6

as extra for 1.99 - 4.99 $ each) and receive a soup, salad and a loaf of garlic bread as a gift. Their plates will be refilled over and over as they finish eating until the person asks to stop. That allows clients to enjoy all the food they can eat for an amazingly low price. Tuesdays are the best days for parents and their children as on these days of the week all Kids Meals go for just $2 each. The staff, which consists mostly of women of ages between 22-35, is very polite and friendly. The negative factor noticed is a long wait for a service delivery.

CREST Competitive Factors It has been determined that there are a number of key competitors for East Side Mario’s for example there is Kelsey’s with their promotion of 2 main entrees for $50 and Montana’s has all you can eat ribs on Wednesday. Jack Astor’s “Pan Bread” is a customer favorite bringing them back for more. Applebee’s has a 3 course meal offer for $45, then there’s places like Moose Winooski’s or Casey’s that make a “classic Canadian style” menu comparable to East Side Mario’s aside from focusing on pasta of course.

Regulatory Factors Competition Act - This law is responsible for regulating and encouraging competition between Canadian companies in order to improve the economy and make Canada stronger opponent on a World Market. The other purpose of the act is to even opportunities of mediumsized and small companies of participating in the economy. To supply customers with a variety of choices that would meet their needs.

RUNNING HEADER: RETAIL ASSIGNMENT 7

Trade-marks Act - Is in charge of names and trademarks of products and establishments. Includes a list of laws and regulations on their use. Health Canada’s Food and Drugs Act and Regulations - Promotes safety and high quality of foods and medications on the territory of Canada. Personal Information Protection and Electronic Document Act - Protects personal information given by consumers through web-site while registering or ordering products. Meant to prevent personal data abuse.

Economic Factors East Side Mario’s pricing may be referred to as average for a middle class family. While East Side Mario’s main target customer is of middle-class families, psychographic factors that impact the establishment are hobbies (sports games), values, interests, and culture. Preferences in cuisine may have an increased impact on the choice of ordering from East Side Mario’s due to its expertise in pastas and pizzas at an affordable cost. An additional economically free advantage is appreciated for the hospitality and warm friendly atmosphere, customers are greeted with warm fresh home style bread loaves, and beverages. East Side Mario’s creates more than just a meal, it is not just about tasty food but also a great opportunity to spend this time with friends, family, and colleagues.

Social Factors Social factors are definitely the most difficult ones to forecast but it is possible to find out some social trends and analyze their influence on East Side Mario’s restaurant chain. Family

RUNNING HEADER: RETAIL ASSIGNMENT 8

first, is a motto for the majority of Canadians. In fact, it is also an East Side Mario’s motto. They position themselves as family oriented place. “At East Side Mario’s, your family is our family”! The 2017 article Attitudes Toward Healthy Eating by Mintel finds 84% of Canadian consumers believe what they eat impacts their physical health, with nearly two-thirds (63%) agreeing it also affects their emotional wellbeing. More and more healthy food oriented cafes are opening, because Canadians are trying to take care of their health and stay fit. Unfortunately, food served in East Side Mario’s is high in calories and not considered to be healthy. Adults and youth (older than 13) need approximately 2000 calories while one dish in the restaurant have 1000 calories on average. East Side Mario’s can develop a low calorie menu for those who are concerned about healthy food. In today’s society people are quite busy not only because of jobs and housework. There is a huge trend on self development and improvement. People are trying to do various activities such as sports because Canadians value fit bodies. That means that often they do not have enough time to cook meals or even to get themselves out to a cafe or restaurant. In such situations ordering meals at home is a good opportunity. Delivery is possible in East Side Marios, which is a great strength of the retailer. Undoubtedly, people spend a lot of their spare time on social networks. This has a huge influence on marketing and advertising. Social media marketing has become an integral part of any company’s marketing plan. East Side Mario’s social media network statuses are on Facebook (approx. 45 000 followers), Twitter (approx. 5000 followers) and Instagram (approx. 7000 followers). The content posted is very appealing and encourages cravings while, informing followers about news and events that take place in the establishment.

RUNNING HEADER: RETAIL ASSIGNMENT 9

Technological Factors Today’s customers are all about accuracy, efficiency, and convenience. Technology is impacting restaurants all over northern america with its portability; being able to take accurate orders right from the table via electronic devices. This skips unnecessary steps and makes the experience more efficient. Technology has also allowed restaurants like East Side Mario’s to take part in upcoming delivery service apps. Apps such as Door dash, Uber eats, and Skip the dishes allows for restaurants to offer more convenient meals at affordable delivery rates to a wider range of customers. In Sharp’s 2017 article about the impacts of technology right now on restaurants, he states that restaurants are impacted by five main areas of technology; communication, social media, accessibility, reviews, and data breach. Communication has become increasingly important because “[i]f your restaurant is not easily found on the internet, it can have a big impact on the amount of new customers you can acquire” (Sharp, 2017, para 2). With today’s society and generations turing to the internet for answers about almost anything business are discovered more frequently based off of their positive reputation online. Social media platforms are the necessary marketing tool for all business owners, but exceptionally to those of small restaurants. Social media “allows restaurants to build their own individual brand and reach out to diners online like they never have been able to before. For many small business owners, it is leveling the playing field with national chains who have much larger marketing budgets” (Sharp, 2017, para 3). While allowing restaurants to further educate or expand their customers interests and engagement with the company such as East Side Mario’s. Accessibility and reviews are both positive and negatives of technology. With most chains, you must now be able to be reached, accessed, and discoverable across all platforms and

RUNNING HEADER: RETAIL ASSIGNMENT 10

brands of technology. While heavily relying on technology to draw in the needed customer traffic to expand and grow, this also may be a downfall if there are ever any situations where a location is having technical problems such as internet loss which would heavily impact the efficiency of services. Reviews, similar to word of mouth can now be reached at a fast pace rate across multitudes of levels and areas. Instead of talking to one person, someone may post a review and suddenly it has been seen by thousands of people in a matter of seconds, in various areas of the world. Lastly, with the new and constantly changing technology restaurant and business owners who rely heavily or use technology to run or base the companies must consider protection from hackers, or scammers, etc. “Several of the largest data breaches in history were by first accessed by hackers first gaining access to a smaller business who was a vendor of the larger business that was ultimately hacked” (Sharp, 2017, para 7). Like many other areas of our lives, it is important for chain restaurants to obtain data protection insurance. When East Side Mario’s was asked the management was able and willing to provide adequate and acceptable proof of insurance.

Conclusion

What was observed on that Thursday was: what started as a small business called Pat and Mario’s, preparing takeout pizza and pasta, has evolved over the years to become East Side Mario’s, a successful chain of 75 restaurants across Canada. Their efforts of wanting to “bring

RUNNING HEADER: RETAIL ASSIGNMENT 11

Italy to their guests” has been achieved and has continued throughout all of these years, to their benefit, and the consumer’s. The comfortable family-style, fun atmosphere, great prices and excellent service keeps customers coming back and continues to satisfy.

References

Sharp, M. (August 18, 2017). Five Ways Technology Is Impacting The Restaurant Industry Right Now, Retrieved October 5, 2019 from, https://www.modernrestaurantmanagement.com/fiveways-technology-is-impacting-the-restaurant-industry-right-now/

Recipe Unlimited Corporation (formerly Cara Operations Limited) (2018, Dec 30) Management’s Discussion and Analysis. Retrieved, October 6, 2019 from https://recipeunlimited.investorroom.com/annual-reports

Ulrichsen, H. (2008, June 1). Canadian-style casual dining invented in Sudbury. Retrieved from

RUNNING HEADER: RETAIL ASSIGNMENT 12 http://www.sudburylivingmagazine.com/2008/06/01/canadian-style-casual-dining-invented-insudbury.html.

W. Lambe, C. F. Hair, Joe. McDaniel, C. Boivin, M. Gaudet, D. Shearer, J. (2019). MKTG, Fourth Canadian Edition; Nelson Education Ltd. 17....