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Shannon School of Business

Cape Breton University
MRKT 3301: 10-Marketing Management
Instructor: Elaine MacNeil

Marketing Plan
OLD TRIANGLE IRISH ALEHOUSE
Sydney N.S.

Students:
Michel Marticotte
Omar Tag El-Din
Bethany Murrant
Alex Macdonald
Marc Read

Executive summary
The Old Triangle Irish Alehouse is a new venture in Sydney, Nova Scotia that has recently
opened its doors to the public within the last few months. It was first created in the year 2000 by
three Irishmen and acquired good success in Halifax, Charlottetown and Moncton. With the help
of marketing tools we will evaluate the internal and external strength and weaknesses to
accomplish the objective of increasing revenue using a situation analysis and survey. The
situation analysis will overlook the areas demographics, menu, competitors, prices and customer
analysis. Some key issues will be identified as well as their competitors which are mainly
Governors Eatery and Boston Pizza. Also, the restaurant is only walking distance from the main
hotels and Casino, therefore; the Pubs location is great. Sustaining the market share as well as
keeping up a high level of customer service is crucial for the business to stay successful and to
keep up with their competitors. Their promotions, for example like having a no cost entry into
the pub on nights when there is a performance is a great way to market their business to
customers. They are still a very new company and really have done little advertising so far so
they should really look into some new marketing strategies.
Increasing revenue is the main objective for The Old Triangle and this can be obtained by
providing good food every visit, consistency of the products offered, great customer service and
an overall comfortable atmosphere, this will hopefully keep customers happy and ensure their
return. The strategy in product is simple; good homemade Irish food, a large selection of drinks,
great service, lives entertainment and an overall great experience. As for price strategy, The Old
Triangles is somewhat competitive to others in the area. The most important tools they used for
promotion are social media and word of mouth; however, we believe the promotion side is where

the organization could use some work. We think more money should be invested in ads and
promotion in the area to ensure that the business keeps bringing in revenue and stays successful.

Table of contents
Contents
Executive summary.................................................................................................... 2
Situation Analysis....................................................................................................... 4
Market Analysis:...................................................................................................... 4
The Old Triangles Menu.......................................................................................... 5
Competitor Analysis:............................................................................................... 5
In Depth Analysis:................................................................................................... 5
Concerning the pricing Strategy for those in direct competition:............................7
Customer Analysis:.................................................................................................. 7
Key Issues:.............................................................................................................. 9
Objectives................................................................................................................. 10
Revenue:............................................................................................................... 10
Market Growth Strategies......................................................................................... 11
Market Penetration:............................................................................................... 11
Strategies................................................................................................................. 11
Product:................................................................................................................. 11
Price:..................................................................................................................... 12
Promotion:............................................................................................................. 12
Distribution:........................................................................................................... 12
References................................................................................................................ 13
Appendix.................................................................................................................. 13

Situation Analysis

Market Analysis:
Some people interact with pubs and restaurant on a daily basis and for others going to a
pub is a special threat; therefore, the restaurant industry has a failure rate of 50% percent in the
first Three years of operation, according to a study done several years ago by Cornell University
and the University of Michigan State.
Canadian economy keeps growing and a review from GE Capital Franchise Finance
shows that Canadian spend more in restaurants every year with a +4% each year. Sydneys
population is a diverse mixture of nationalities which contributes to various Scottish, Acadian,
African Canadian and eastern European cultural events being held throughout the year.
Approximately 400 000 people visit Cape Breton each year and due to increasing events, new
visitors are attracted each year. The Old Triangle is located down town of Sydney which is the
largest urban center for area in Cape Breton Island.
Sydney's accommodations are centrally located and at walking distance from the Pub. In
2011, statistic Canada recorded a population of 31 597 people living in Sydney, 14 710 male and
16 890 female. 13 790 of these people are between the age of 20 and 54 witch represent the ideal
age group going to the pub.
In the summer Sydney has become prime beneficiary for Cruise ship and tourist stopping
in town before or after visiting the Cabot Trail, Baddeck and other areas. In the winter many
international students come live in Sydney to go at Cape Breton University or NSCC.
The Old Triangle is considered a quality eating and drinking place and its segment
includes Tourist, locals or high end students in the area seeking an elegant good night out.

The Old Triangles Menu

As per the menu found in the appendix below, the financial average for

Lunch is $15-$20
Dinner $45+ (drinks included)

Competitor Analysis:
1. Direct Competitors:
IIIIII-

Governors Pub and Eatery

Boston Pizza
East Side Marios

2. Indirect Competitor
IVVVIVIIVIIIIX-

The Italian Restaurant

Don Cherrys
Kennys Pizza
Daniels Pub and Eatery
Steel City
Other Food industry related chains, not fully licensed

In Depth Analysis:
Governors Pub and Eatery must be holding the biggest market share concerning
restaurant/Pub and live entertainment category. Hosting events almost every day of the week
with cover and still receiving the desired turn out, while the old Triangle only perform from
Wednesday to Saturday and still not as well established concerning market share they seem to be
trying to acquire.

Governors Pub and Eatery is also known for food quality through sustainability, as well
as strategic location on the water front, next to the Fiddle and Cruise ship dock receiving hands
on attention from Tourists as soon as they disembark.
Daniels and the Old triangle are almost door to door on Charlottes Street. Although the
old triangle has superiority on the Menu, youngsters looking for value for money and with more
of a drinking style might go directly to Daniels for its drinking orientation and prices.
Boston Pizza is also considered one of the main 3 direct competitors due to its strategic
location and food quality. Located in the same complex as Empire theatres on Prince St, serves it
as a commercial dining and drinking place with a subtle reputation for sustainability. Boston
Pizza has also the highest number of seats compared to all of its competitors. However unlike
Governors and The old triangle, it does not host live performances. It only serves the
entertainment perspective from airing live sports channels and hosting an environment for live
sports entertainment.
East Side Marios as well as Don Cherrys follow a different strategy ensuring
competition amongst this category. Also like Boston Pizza hosts live sports entertainment only;
however, unlike Boston Pizza the location strategy is different. They opened in the Mayflower
mall at the other end of Sydney on Grand lake road. Being the only Eatery and Bar on mall
location ensured its Market share simply through consumer traffic. As for Don Cherrys they
opened in Sydney River being the only bar of this category active and present there and ensuring
full market dominance in the Sydney River Area.

Concerning the pricing Strategy for those in direct

competition:
Boston Pizza & East Side Marios being the cheapest amongst the 3 due to its
commercial chain nature.
Governors and The old triangle are practicing almost the same pricing strategy aside one
small fact; Governors charges cover for entrance when hosting events that can go up to $10 just
to get it, while the Old Triangle has a no cover policy ensuring anyone can get in at any time and
enjoy live entertainment without paying a thing.

Food Services and Drinking Places Total Sales Current! Sat Can http://www.statcan.gc.ca/dailyquotidien/130930/t130930c001-eng.htm
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Customer Analysis:
At the Old Triangle, the demographic trend is clearly focused more on the older
population. People who are most commonly associated with the Old Triangle range anywhere
from the ages of 25-To-55. These people tend to have more consistent deposable income and are
willing to pay an extra buck or two, if it allows them to have a great time and experience. The
prices are considered a little pricy compared to other venues. This seems to deter some of the
younger crowd (mainly ages 19-to-21). These youngsters are new drinkers to the different
establishments around town and are mainly looking for places with the cheap drinks and best
deals.
Customers are looking for a place to gather with friends and family where they can have
a great experience and have a fun time doing so. Whether it be out on a Friday night (having

drinks and food) while listening to a live band or enjoying an evening brunch on a Sunday
afternoon with the whole family. Even though the demographics are focused on the 25-to-55 age
range, the Old Triangle is a place for everyone. They are able to provide a great experience on
any given night.
The Old Triangle tries to provide value in your visit every time that you step in for a bite
to eat or to have a cold beverage. Things like customer service and quick wait times are
important to both the staff and the customers. In always wanting to improve on these, it enables
the customer to have a better experience. There is live music every night from Wednesday-toSaturday. In saying so, there is never a cover charge to enter the establishment. Even though the
drinks may be a little bit more expensive than other places, you are still saving money every time
you walk through the Old Triangles doors.
Current customers are ranging in different satisfaction levels as of right now. This is
happening because the restaurant is so new. It has been opened for just over three months now
and the kinks are working themselves out. Recently, customers have been genuinely leaving the
restaurant more satisfied than what they would have been during the first few weeks of business.
When Joes Warehouse closed, there was a huge void in Sydney. People around town wanted
something done. They wanted somewhere new and different where they could go to spend their
time.
People from Sydney like to support their own kind. The Old Triangle originated in Nova
Scotia and has branched off into 4 locations (Halifax, Charlottetown, Moncton, and now
Sydney). The Old Triangle is filling that void in Sydney ever since they opened the doors on July
3rd of this year.

Key Issues:

Engaging in a direct competition with Governors and Boston Pizza while

establishing their brand and positioning accurately and adequately.

Utilizing their location and services to acquire more market share from tourism

and the local market.

Acquiring and sustaining the corporate market share while improving services
offered to that segment.
A need to make use of a well-designed on location corporate room

designed for business dinners and equipped for presentations.

Upgrade for the payment system due to minor glitches that cause issues in random

nights.
Making use of a no cover policy to ensure viable competition with other cover
charging competition, and ensure cost coverage concerning artists fees from
Wednesday to Saturday without incurring loss and making sure Profit margins are

kept where they need to be.

Promotional presence through different channels
The Old Triangle never used any direct promotional or advertisement due to fast
Cape Breton word of mouth that caused the first 2 weeks of operations to be

jammed with high customer turnout causing service capacity issues.

Facebook presence is there as well as twitters, however emphasis on Radio and
other promotional means are to be considered.

Objectives
Revenue:
Without revenue, any business would cease to exist. Revenue is the ultimate goal but
what is more important on a daily basis, is how to obtain it. For The Old Triangle, being in the
service industry, the most logical way to succeed is to provide the best customer service possible.

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However, this is not an easy task. The customers are individuals with very different wants and
needs and the business, as a service provider must try to cater to them all.
The first step to make this happen begins with management and staff. It is important to
have a great team of employees who not only work well together, but also understand the
companys overall objective and are willing to help achieve it. This type of business could not
succeed without a strong team who knows they are an integral part of the whole.
Good food, consistency of the products offered, great customer service and an overall
comfortable atmosphere will hopefully keep customers happy and ensure their return. Great
customer service will help drive the revenue stream; therefore, it is a win-win situation.

Market Growth Strategies

Market Penetration:
Opening an Irish Pub in Sydney, NS definitely has its share of risks. For starters, the
population for Sydney is small in size; therefore, returning customers are very important. The
goal is to advertise to current customers as well as to the competitions customers in hopes that
The Old Triangle will become their first choice when dining out in Sydney. The Old Triangle
would also like to reach out to consumers who do not currently feel a need to eat out.

The

organization hopes to encourage this group to start going to the pub because of their good food,
great service, a very comfortable atmosphere and reasonable prices.
These days, pubs and restaurants are moving closer together, this means that the
competition is fierce. Another way for them to gain more of the market share is through fresh
ideas. Whether its new menu options, promotional items or interesting entertainment, The Old

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Triangle needs to continuously work on this and keep offering customers something that they
would like.

Strategies
Product:
The Old Triangles product is simple good homemade Irish food, a large selection of
drinks, great service, live entertainment and an overall great atmosphere. One advantage they
have, from a marketing point of view, is that they are an Old Triangle. With their licensing
agreement, they have had instant product recognition because many locals have visited and
enjoyed the Old Triangle in Halifax, Charlottetown and Moncton (this really is a huge
advantage). Also, they are an Irish Pub. There are other pubs in the area, but none have really
marketed themselves as strictly an authentic Irish Pub. This really seems to define who the Old
Triangle is.

Price:
The Old Triangles prices are somewhat competitive. They offer quality products, which
include both food and drinks. As far as drinks, they offer the largest selection of draft (21) on
Cape Breton Island along with many premium liquors but still have domestic offerings as well.
Their view is, you get what you pay for.

Promotion:
As mentioned above, being an Old Triangle gives them a huge advantage from a
promotional point of view. They are still a very new company and really have done little
advertising so far. To date, they have purchased minimal ads in the Cape Breton Post & local

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radio and used some signage. However, the most important tools they have are social media and
word of mouth. They also have more than 5000 followers on Facebook, they are able to use this
daily to get the word out on any promotions, specials, performances, etc.
Coming into the New Year, The Old Triangle will be putting more promotions in place
such as special product promotions, unique performances, new menu items and a new loyalty
program to entice customers to keep coming back. They will also be looking at hosting some
intimate but unique events during the winter months.

Distribution:
The Old Triangles distribution is mainly focused towards anyone residing in the
geographical areas. As well as seasonal tourists and downtown hotel guests. Overall, there is no
particular target market. The Old Triangles goal is to cater to people of any age. These range
from families to individuals that are over the age of 19 and are out to enjoy the night.

Market plan implementation:

In result of contacting the management team from The Old Triangle a lot has been
learned about how they run their business and what aspects of business they are excelling in and
what areas could use some work. However; it is clear that they would definitely benefit from
some tips in how to market their business in order to become more successful. They currently
rely on social media websites and word of mouth to spread the word about their business as well
as promotions and events that they have. The Old Triangle has been successful with these
marketing strategies but they did only just recently open during the summer months, which is
particularly busy for downtown Sydney due to the cruise ships, tourists and also the locals out to

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enjoy the weather. However; the fall and winter months in Sydney are much slower for business
downtown and this could mean a decline in business for The Old Triangle.
Going forward, The Old Triangle could definitely benefit from some new marketing
strategies. One idea that could be suggested to the organization is a bi-weekly brochure that is
placed in various locations around the area, for example Cape Breton University, The May
Flower Mall and other business that have a high traffic area. The purpose of the brochure would
be to list the food specials, drink specials, live performances and events as well as simple
information such as their hours of operation and location. If people were to look at this brochure
they would know exactly what was going on at The Old Triangle and would hopefully consider it
the next time they decide to dine out. Also, this brochure will spread awareness to consumers
who are unaware of the business and bring in some new customers. The cost of something like
this would be approximately $350/bi-weekly for 1000 brochures or $250/bi-weekly for 250
brochures. They could start with 250 brochures and see how well that works, if it looks like the
strategy is successful then they would up the amount of brochures they are having printed every
two weeks.
Another marketing strategy the Old Triangle could benefit from would be the use of radio
play. Radio advertising would strongly promote what events are happening at the Old Triangle
on a weekly basis. Sound has the ability to be stored in your memory more easily than words
written down on a piece of paper. Because of the radio advertisements being played more than
once a day, it also gives the listeners more time to absorb the message through repetition. The
Cape 94.9 radio station here in Sydney offers 30 second ads which cost approximately $30 an ad.
You must commit to at least 3 ads per day for a total of $90. These adds will be played anywhere
from 6:00am-7:00pm. Because the Old Triangle will be promoting the weekly lineup that they

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will be having, it would be beneficial to play the promotional ads weekly on Wednesdays,
Thursdays, and Fridays. This would cost around $270 a week has the potential to greatly increase
revenue. The Old Triangle could decide to do this weekly or even bi-weekly, depending on who
is playing that week and if they really want to get the word out!
The Old Triangle could also ask their customers for their e-mail address the next time
they come in for a visit to the business. Asking for customers emails will allow the organization
to create a database of their customers as well as give them the ability to use direct marketing as
a strategy. The Old Triangle can send out emails when they have a special promotion or event
going on. This would be a great form of marketing because it would be low cost to the business
and they would be able to reach their customers directly, building great customer relationships.

Market plan control:

Once The Old Triangle implements their new marketing strategies they are going to want
to see if these strategies are working successfully for them. One way they would be able to do
this is to watch their revenues, is it a good idea to watch if they money that they are putting out
for new marketing strategies is actually paying off. If they are noticing an increase in their
revenues then that means something is working, if they notice a decline they might want to see
where they are going wrong. Another way that the organization can track their goals is to send
out surveys, much like the one used to research information for this assignment, to see what kind
of feedback they are getting from their customers. A survey like this can tell them where
customers are seeing promotions, how they liked the service, how was the food and the overall
experience they had at The Old Triangle. Using the data from a survey like this would really

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help them decide how they should market their business as well to let them know what areas they
are doing well in and what areas need improvement.

References

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http://novascotia.ca/
http://www.entrepreneur.com/article/78002
http://www.crfa.ca/research/
http://www.hodderhill.com/Sydney.html
http://www.restaurantinvest.ca/site/restaurant_invest/assets/pdf/2013__canadian_chain_restauran
t_industry_review.pdf
http://www.oldtrianglesydneyns.com/our-menu/
http://www.psprint.com/resources/brochure-flyer-marketing-budget/

Appendix