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Marketing Plan Project Cactus Club Cafe Part 2

Table of Contents Table of Contents … 1 Part 1 - Product Decisions a. Types of Products … 2 b. Product Lifecycle … 2 c. Branding Strategy … 2 d. Service Marketing… 2 Part 2 - Distribution a. Main Distribution Channels … 3 b. Types of intermediaries … 3 c. Distribution Intensity… 3

d. Channel Structure … 4 Part 3 - Integrated Marketing Communications Strategy (IMC) a. IMC Objectives … 4 b. Promotional Mix Decisions … 4 Advertising … 4 Sales Promotions … 5 Public Relations … 5 Digital Media … 5 Part 4 - Pricing a. Company Objectives … 5 b. New Product Pricing Strategy … 5 c. Pricing elasticity … 6 d. Selling price … 6 Bibliography … 7

Product Decisions Types of Products The Sushi Bar is a specialty product because of the high quality and one on one experience the client receives. Consumers will typically not purchase this frequently, but it will be a sought after expensive addition that the wealthier percent will enjoy. It will have an affordable price, and it will be important that the brand image remains impeccable. A sushi bar brings in a higher class of people to enjoy their food and makes the restaurant also more highly regarded, but can still maintain The Cafe’s audience by providing it at a price lower than that of a high-end restaurant. This will also open the sushi bar to a new segment of customers who already enjoy sushi and are willing to try it at the Cactus Club. Product Lifecycle The largest aspect of the product is already on the menu, however, it is not in a prominent position. The Sushi Bar Experience would be in the introduction stage of the product life cycle as it’s not very well known in areas that have Cactus Club Cafe Locations. The sushi bar would provide an authentic Japanese experience with a specialized chef preparing the food in front of the customer, something that is not common outside of high-end Japanese restaurants. The product would grow rapidly as it makes Cactus Club a more desirable place for those seeking to try foreign food and could attract Japanese tourists looking for an authentic sushi bar experience (Japan, 2019). With the growth of the sushi product, the return in revenue would

make it worth investing heavily into, so that it can become something that customers can be excited for, and would organize themselves to be able to specifically come to dine on. This product would grow rapidly and increase their market share of the sushi market. Branding Strategy: brand extension The Cactus Club Cafe already holds a strong brand image in the hearts of consumers. Therefore Cactus Club should extend the brand to the sushi bar carrying over the already wellestablished brand image. This would maximize their recognition of the product to consumers not already familiar with the restaurant’s sushi. The positive reputation of using a farm-to-table sourcing method for ingredients can carry over into the sushi bar with consumers knowing that Cactus Club Cafe would only use the freshest, and highest quality ingredients (Trainer, 2019). Service Marketing The new product ranks as a pure service on the service-product continuum, as sushi is already available. The whole aspect is that everything is prepared in front of the consumer for entertainment. The service marketing is much different than what would be done to promote a new food or goods item and relies majorly on observation over normally done hard advertising. Cactus Club Cafe thrives, filling up their tables every night with long wait times. These already excited consumers are the perfect segment for the Sushi bar Experience (Gyaan, 2019). Placing the Sushi Chef Experience within view of the front door, and in a central area of the restaurant would allow many already loyal customers to see it, and book their next visit to experience it for themselves. This would target consumers who are already loyal to the brand and would be excited to try something new, in a familiar atmosphere.

Distribution Main distribution Channels The main distribution channel will be very direct, from producer to retailer to consumer. The products such as fish and rice will be produced and directly shipped to Cactus Club Cafe. Using these fresh ingredients, the sushi chefs will create the final product of sushi rolls to serve in their sushi bar. The lack of a wholesaler will make sure that this distribution channel will serve the freshest possible sushi and will cut out unnecessary steps saving money and maintaining quality, which is critical to maintaining the utmost customer satisfaction (Higuera, 2017). This way of direct production is best for the product and would be perfectly ideal for a sushi bar. Types of Intermediaries: The Cactus Club Cafe’s menu already includes multiple different sushi items, as such, the greater part of the supply chain has already been built. Because of this, it’s simply a matter of bringing in the freshest ingredients into the restaurant in the same way they already are. The Cactus Club Cafe is primarily placed directly among the west coast, and their further inland restaurants can have fresh seafood shipped daily, In order to source the freshest, most available product The Cactus Club Cafe would bring in sustainable fish from farmers, without using a middleman to cut time in between harvest and the consumer’s plate (Ali, 2019). Simply, their

supply chain would be a two-step process, The Fish Farmers as the Manufacturers, then shipped directly to Cactus Club Cafe locations to be prepped. Distribution Intensity The Cactus Club Cafe provides the exact same experience at every single restaurant. From interior design to the menu, everything throughout the establishment is made to replicate a similar experience to previous, or future visits (Richler, 2014). If a consumer enjoys their experience at one restaurant, it’s guaranteed they’ll enjoy it at another, because they all offer the exact same goods and services. Because of this, the Sushi Bar Experience would need to be rolled out to every single Cactus Club restaurant at the same time, in order to continue to provide this familiar feeling. As such, the distribution needs to be intense and organized at every establishment in a short amount of time.

Channel Structure Drawing

(draw.io, 2019)

Integrated Marketing Communications Strategy (IMC) IMC Objectives With the addition of a sushi bar, the main IMC objectives must be to increase awareness of the product. To be successful the sushi needs to develop a following of consumers (Marketing, 2015). The current menu currently holds so many incredible items, designed by Hilary Nguy (cactus club cafe, 2019), that it needs to go above and beyond to promote the Sushi Bar Experience to entice consumers. The restaurant needs to put funds into making customers aware of sushi through advertising in restaurants, which would greatly drive people to the new

Sushi Bar Experience. An additional IMC objective should be a prompting trial. The interest would be driven up greatly and would be a great driving force in promotion for the sushi bar. Promotional Mix Decisions Advertising: With the Cactus Club Cafe already holding a strong brand image and strong brand awareness, the focus won’t be on informative advertising. Instead, the focus will be on productfocused advertising because the restaurant is already well known, and the Sushi Bar will be built as an extension to the already highly enjoyed menu. The goal for this is to inform the customers about the new product and persuading customers to take action will be a priority. The objective is to inform and persuade the market to buy a new product. Sales Promotion: The Cactus Club Cafe Sushi Bar is already planning to be advertised at a low price compared to competitors. Because of this, the Cafe cannot offer coupons because of the loss of profits and the risk of decreasing the perceived value of the service to the customers. Instead, the Cactus Club Cafe Sushi Bar can offer the Sushi Bar Experience as a contest prize in different sweepstakes. Customers will be able to enter the contests at different events sponsored by The Cactus Club Cafe, Thus increasing overall traffic to the restaurant while promoting the Sushi bar. The objective is to increase overall traffic to Cactus Club while promoting the new product. Public Relations: The Cactus Club Cafe Sushi Bar will only purchase sustainable, fair trade, wildcaught fish in order to support local fishermen, instead of major suppliers/corporations. This will improve the company’s public relations by supporting the local industry, and providing highquality food. This will also improve press relations and product publicity. Digital media: The Sushi Bar Experience will be a sight to behold. With Professional sushi chefs cooking directly in front of the consumer in a flashy way to provide a superior experience than what would be provided in a regular environment, there is an incredible opportunity to utilize digital media. The Cactus Club Cafe already excels on Social Media Platforms, amassing over 90 thousand followers on Instagram. Posting photos of regular consumers enjoying this sushi spectacular would be a sure-fire way to help get people in the door to experience it for themselves. (@Cactusclubcafe, 2019)

Pricing Company Objectives - Sales Oriented: Cactus Club Cafe Sushi Bar wants to provide an authentic, one on one experience with a sushi chef. A service that is usually very expensive at an affordable price. With the growing inflation of sushi prices (Pomranz, 2017), This objective will attract more customers because of the affordable price of a unique experience compared to the competitors offering a lesser service at a premium price. New Product Pricing Strategy - Market Penetration Pricing: Since the sushi bar is a new service offered by Cactus Club it is essential to gain market share, sales and profits quickly to promote

the new product entering the market (Watkins, 2017). Therefore the Cactus Club Cafe Sushi Bar will use market penetration pricing and set the price of the service lower than the competitors, creating an urgency for consumers to purchase the new service. With this pricing strategy, it will also discourage other competitors to enter the market and potentially take sales. Cactus Club will be able to implement this strategy with the ability to satisfy a rapid increase in demand. Pricing Elasticity - Elastic: The Cactus Club Sushi bar is a specialty service by providing a one on one experience with the chef, In contrast going to a sushi restaurant without this experience where it would be much cheaper. Therefore the Cactus Club Sushi Bar is sensitive to price changes since it can easily be substituted. It is very important to follow the company objective and keep providing such experience at a low price to maintain sales. Selling price, Discounts - Competitor Based Method: The Cactus Club Sushi Bar’s goal is to provide the specialty premium service at an affordable price. Therefore it is essential to compare and beat the competitors in pricing to drive more business (Ward, 2019). Furthermore, the Cactus Club is new to the sushi market, so the lower prices will help attract more consumers, growing the Cactus Club Cafe’s market share. There will be no discounts offered since this is a unique premium service at an already discounted price, and further discounts will devalue the product.

Bibliography Ali, C. (2014, September 26). Cool down with Cactus Club Cafe's ceviche. Retrieved November 3, 2019, from https://www.straight.com/food/710241/cool-down-cactus-club-cafes-ceviche.

Cactus Club Cafe (@cactusclubcafe) • Instagram photos and videos. (n.d.). Retrieved from https://www.instagram.com/cactusclubcafe/?hl=en. free flowchart maker and diagrams online. (n.d.). Retrieved November 3, 2019, from https://www.draw.io/. Gyaan, R. (2019, August 22). Increase Your Restaurant and Bar Profit With These 8 Golden Tips. Retrieved November 19, 2019, from https://www.posist.com/restaurant-times/restrogyaan/increase-restaurant-bar-profit.html. Higuera, V. (2017, November 21). How Can a New Restaurant Create a Good Distribution Channel? Retrieved from https://smallbusiness.chron.com/can-new-restaurant-create-gooddistribution-channel-38049.html. How We Roll − Sushi x Cactus. (2019, October 22). Retrieved from https://www.cactusclubcafe.com/2019/10/how-we-roll-sushi-x-cactus/. Japan. (n.d.). Retrieved November 19, 2019, from https://www.destinationcanada.com/en/markets/japan. gLake, L. (2019, October 27). Publicity and Why Is It Important? Retrieved November 16, 2019, from https://www.thebalancesmb.com/what-is-publicity-2295550. Landsman, S. (n.d.). The Sushi Factor. Retrieved November 19, 2019, from http://www.saltscapes.com/roots-folks/900-sifting-the-shifting-sands.html. Marketing 4 Restaurants. (2015, April 12). Integrated Marketing. Retrieved from https://marketing4restaurants.com/integrated-marketing/. Must-try Dishes At The New Cactus Station Square. (2019, October 15). Retrieved from https://www.cactusclubcafe.com/2019/07/must-try-dishes-at-the-new-cactus-station-square/. Pomranz, M., & Pomranz, M. (2017, June 30). Sushi Is Getting More Expensive, Says 'Sushinomics'. Retrieved October 27, 2019, from https://www.foodandwine.com/news/sushigetting-more-expensive. Richler, J. (2014, February 25). The Cactus Club Café-a prickly franchise. Retrieved November 6, 2019, from https://www.macleans.ca/society/life/beast-in-a-little-black-dress/. Todd, D. (2014, May 4). Vancouver may be sushi capital of North America. Retrieved at November 15, 2019 from https://vancouversun.com/news/staff-blogs/test-2.

Trainer, P. (2019, October 21). Cactus Club Café Toronto: Farm-to-Table Fine-Dining: Skyscanner. Retrieved from https://www.skyscanner.ca/tips-and-inspiration/cactus-club-cafetoronto-guide. Watkins, D. (2017, November 21). What Is Market Penetration Pricing? Retrieved from https://smallbusiness.chron.com/market-penetration-pricing-20346.html. Ward, S. (2019, November 17). Get More Customers With Penetration Pricing. Retrieved from https://www.thebalancesmb.com/how-penetration-pricing-attracts-customers-to-new-products4156762....