The Company:Chittagong is the port city of Bangladesh. It is the business capital of the country.

The number of companies of home and abroad is running their business here. For the geographical position Chittagong is the most important place in the country. The city draws special attention of the local and foreign tourists for her natural and scenic beauty. A recently done research for establishing an international standard restaurant reveals that there are dearths of international standard restaurant in Chittagong. After doing extensive research, the promoters of the project have decided to establish a restaurant named The Pavillion at O. R. Nizam Road in Chittagong. The place is the most posh area of the city, and suitable site for good restaurant. Our company has started their journey in the year 2000 with the name of Food & Accommodation Co. Ltd. This company is affianced in restaurant, hotels and fast food shop. Now the company is introducing a new restaurant named Pavillion. The chairman and the managing director of Food and Accommodation Co. Ltd have 10 years of successful business experience in service and food business. They have engaged some people who have vast knowledge and experience in running and maintaining restaurants that will provide the best and exceptional foods and services in a premium price. Needs the company will satisfy: The company intends to serve the growing demand for foods of high quality, as people desire for enjoyment and luxury in consumption of food. Owners desire to produce greater service with professional and skilled personnel. Local industry demand for food is growing.

Products and services the company will offer:

The restaurant will have the capacity of two hundred (200) people. The high quality food will be served complemented by good service. Different kinds of delicious foods such as Chinese, Thai, Indian, Indonesian and Bengali food will be served for the epicureans. The restaurant will have authentic Thai and Indian chefs. Managers will be recruited from abroad to ensure the high quality. The front view of the kitchen will be made by transparent glass consequently the entire activity of the kitchen will be visible to the health conscious guests. The guests of the restaurant can park their cars at the basement parking. The 100% security of the cars will be insured. Total-Quality-Management will be followed. The restaurant will be well furnished with modern architectural design. The guest can view the outside natural beauty.

Size of the target market:Chittagong has inhabitants of almost 5.5 millions. Amongst them, most are middle class. Only 5% of the total population of the city belongs to the upper class. Our target customers are the business people, executives, highly positioned employees of different government and non government organizations and their family members. We are targeting those people having minimum monthly income of Tk. 40,000 since the price of the food items are high. To our potential customers no discounts will be given to attract them. Only regular and corporate clients will be given discounts. Our major competitive advantages: The chairman and the managing director of Food and accommodation are prominent in the respective field. The promoters have 10 years of successful business experience in service and food business.

The promoters well connection with the target customers for their good, social and economic background. The guests of the restaurant can park at least thirty (30) cars at basement parking of the building. The place of the project is very wonderful. It is free from traffic jam, car parking hassle and crowds. The scenic beauty from the restaurant will be splendid since the place is adjacent to the big hills. The guests will relish the greenish and natural beauties of Chittagong.

Special features in marketing mix:Product: We will serve such items that have never been served in any other restaurant in Chittagong. We will be uncompromising in maintaining the quality of foods and services. Authentic Thai and Indian chefs will prepare delicious dishes. We will give the best effort to create a brand image. We will provide legendary customer service.

Price: We will charge the price that is listed in the menu. No discounts will be given to our potential customers.

Place: The project site is wonderful. It is free from traffic jam, car parking hassle and crowds. The restaurant is in the most posh area of the city, and suitable site for good restaurant.

Promotion: We will advertise the restaurant, while launching, through a press conference. The promoters have well connection with the customers for their good and social relation. People: The skill of our key personals is of the highest order. Customers will be welcomed and cared by trained staff. Manager of famous Rajiv Kapoors Khazana restaurant is supposed to be recruited. Return on investment/ Level of risk: Our investment is very well researched and will go ahead because of the extraordinary quality of food and service. We are able to take advantage of this. Our intention is to achieve a return on investment of approximately 10% over the course of the next ten years. industry maturity point. We chose ten years, as this is an accepted We have set high targets for market We have been conservative at every stage in

approximations of yield and earnings. these targets are achievable.

share, but our quality is great and so is our price, so we have confidence that There is economical risk to which no first-class restaurant is immune. Severe political disorder is still a threat, but we will try to be better off than other. We are also insured for significant losses due to recession or political turmoil. The market is growing, as is the competition. This is potentially a risk, but continued quality production and pricing should help provide a strongly differentiated prestige brand reputation. Once achieved, demand for our product should be relatively price inelastic. Such success relies very highly on providing quality food and service. We have first-rate chefs and staffs, so we are on the right path. Objectives of marketing plan:

 To set the business on a path to sustainable growth. To achieve brand recognition. To match our product with consumer tastes in most efficient manner, so as to maximize profit opportunity.

Cost of implementation of plan: The costs for implementing a comprehensive and likely to be successful marketing plan are estimated to be higher in the initial years of operation of the restaurant. It will include certain long term and short-term expenses on promotion and distribution which will be significantly reduced in the subsequent years. The following items will form the major components of the costs of implementing our Marketing Plan: Launch of The Pavillion will be done in an appealing style for our target market and the prominent niche. This means higher costs in terms of taka but at the same time it will introduce and associate The Pavillion with the specific type of market which initially want to penetrate. Brand promotion and brand awareness will be done through advertising and will definitely have higher costs for the company in the first year of production. We will try to link our brand awareness with quality awareness in order to maintain the competitive edge over other first-class restaurants in the city. For this sole purpose, a relatively higher budget has been allocated for promotion in the first year, which is slightly higher than the trend in the industry. Trademarks, Registration & Licensing will have the standard costs for our brands as is prevailing in the market under the present laws. Hiring Expertise for the purpose of promotion, marketing consultants may be hired in the first and second year of our operation for evaluation of our marketing strategy. The costs for consultancy services will be built into the promotional expenses.

Evaluation Procedure:We will seek to measure and assess the success of our promotional activities by: Actively seeking feedback from retailers. Inviting mail order feedback. Continuing research will be conducted to assess the achievement in terms of brand equity. Mission statement: A mission statement is the organizations purpose that it wants to accomplish in the larger environment. Traditionally companies define their business in product or technological term. But mission statement should be market oriented. Management should avoid making its mission too narrow or too broad. Missions should be realistic. Mission should also be specific.

Our mission: We serve the best because we care. Our mission is to produce consistently high quality foods and to provide these foods to our customers with a high level of service and at good value for money. Uncompromising commitment to customer satisfaction. Providing legendary customer service. Higher quality of food.

Goals: Our goals are to become the biggest restaurant of Chittagong. We want to produce premium food and achieve continued growth in output on a sustainable basis.

Short term goals: To achieve positive cash flow at the end of the financial year. Operate more efficiently by continuously monitoring the customer need, want and preferences. To achieve a significant market share within a year. To continually improve both product and service. Long term goals: To establish our brand image in the mind of consumers. Gradually increase our market share. To build up cash reserves so that capital expansions program can be internally financed. To achieve a net return on investment of 40% over 10 years.

Stakeholders: Our stakeholders are our three partners, our employees, our customers and promoters, the other premium restaurants of Chittagong, the Chittagong City Corporation, and local community, Chittagong Restaurant Owners Association and other statutory bodies, and the wider food industry.

COMPANY DESCRIPTION: We are in the business of restaurant, hotel and fast food shop and providing food and service through these businesses in the port city of the country.

Nature of the business:

The Pavillion is focused on producing high quality premium foods for the target market and the tourists to the city. They want to satisfy the target market as a whole.

Chairman

MANAGING DIRECTOR

EXECUTIVE DIRECTOR

EXECUTIVE DIRECTOR

MANAGER

STUFF

CHEFS

WAITERS

PURCHASE OFFICER

ASSISTANT

ASSISTANT

ASSISTANT

ASSISTANT

ASSISTANT

ASSISTANT

ASSISTANT

Organization Structure

Skill of key personnel The skill of our key personnel is critical to our business, because key personnel play a very important role in this particular Business. We have brought highly skilled chefs from Thailand and India and for continental dishes we recruit chefs from renowned restaurants from Dhaka by using our business strategy. The other employees of the restaurant are highly skilled, well trained and well mannered. Almost every employee is experienced not less than 5 years. The cleaners who are working in the restaurant at least have to be standard 5 passed. The waiters are working in the restaurant have to be: Bright faced Experienced Capable to create impression In good physical condition Laughing faced. OBJECTIVES OF THE BUSINESS: To become a sustainable business, earning a reasonable return and winning a reputation for quality and exclusivity. To develop the reputation of The Pavillion as a provider of premium foods and services. We have a strong commitment to excellence in making and serving food. To satisfy the customers by delighting them with superior quality and service. It is also in our best interest if we cooperate with other restaurants of the city to ensure industry growth and to increase the image and awareness of our restaurant as a producer of quality foods and services. This industry assist objective will be beneficial in meeting our long-term objective of expanding our target market.

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Opportunities Pursued:We have medium-cost, high quality food-making processes. These factors grant to achieve our objectives of brand equity as soon as we can. It is our belief that the publics demand is fairly price-insensitive for quality foods and services. Thus, if we can establish our reputation and market share, and maintain the quality, we will be able to improve our profit margins. Strategy: Current Products Current Market New Markets
2.Market-Development Strategy 4.Diversification Strategy 1.Market-penetration Strategy

New Products
3.Product-Development Strategy

The companys plans for its existing businesses allow it to project total sales and profits. Often, these are less than what corporate management wants them to be. If there is a gap between future desired sales and projected sales, corporate management will have to develop or acquire new businesses to fill it. To fill this strategic planning gap we have three options available. These opportunities are Intensive Growth: - It means to identify opportunities to achieve further growth within current businesses. Integrative Growth: - It means to identify opportunities to build or acquire businesses that are related to the current businesses. Diversification growth: - It means to identify opportunities to add attractive businesses that are unrelated to current businesses.

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To fill up the gap we have chosen the intensive growth strategy. Under intensive growth we have different strategies. The strategies are Market Penetration Strategy: - A strategy for company growth by increasing sales of current products to current market segments without changing the product. Market Development: - A strategy for company growth by identifying and developing new market segments for current company products. Product Development: - A strategy for company growth by offering modified or new products to current market segments. Developing the product concept into a physical product in order to ensure that the product idea can be turned into a workable product. Diversification: - A strategy for company growth by starting up or acquiring businesses out side the companys current products and markets. Among those strategies we have chosen the market development strategy. This is because we are targeting the higher segment through our existing product.

How does the new business fit with other SBUs The new business of restaurant The Pavillion is a natural extension to the other business units that exists in Food and Accommodation Co. Ltd. The restaurant is set up to provide foods and services to high-end target customers. People who stay in the residential hotel The Grand Park on the upper floor of the restaurant is essentially the restaurants primary customer. The restaurant is the sole supplier of food of the hotel. The people staying in the hotel are of higher class, which is a great platform for serving high quality foods. So both the businesses tie in perfectly together. The restaurant can provide more than enough food that we require for the hotel, so we can serve the people who will come to the restaurant and it will be very helpful for us as we progress toward maturity.

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COMPETITION Our competitors are: All the restaurants that serve Thai, Indian, Sichuan and fast foods in Chittagong. More directly, the restaurants that serve premium quality food and charge higher price. These are: 1. Meridian 2. Bonanza 3. Pavillion 4. Silver Spoon As indicated by the advantages, we can compete against all first-rate restaurants in Chittagong by emphasizing our status as provider of high quality food and remarkable customer service at premium price. We compete against the other restaurants of the city with our consistency and superiority of quality. We also have a more aggressive approach to promotion and marketing than other restaurants of Chittagong. Other indirect fast foods are also can compete at it is a new addition

Major competitive advantages of the other restaurants of Chittagong are: Well established/experienced operations; Good reputation/recognized brand names; Established customer base.

Our major competitive advantages in relation to other restaurants of Chittagong are: We will be incomparable and consistent in food quality than other restaurants in Chittagong.

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 Our location very much attractive as it is free from traffic jam, car parking hassle and crowd than other restaurant location of Chittagong. As the restaurant is located in the heart of the city there is adequate facility of transportation. Our strong relationship with the customers and restaurant owners association as we are in the similar business for last 10 years. Our skills of preparing food are of the highest order; our chefs are the creator of the delicious dishes that have never been served in any other restaurants of Chittagong. Our modern startling interior design stands out against the standardized interiors regional competitors. COMPETITIVE ANALYSIS

Competitor Analysis Product Similarities Thai, Continental and country food items. Distribution Pricing Direct distribution channel Catering Service Premium price service * E-Mail * Arranging cooking competition * Cooking show Differences Sichuan foods

with

premium food quality and Promotion Media Newspaper, Leaflet,

Magazine

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Product: Our major competitors are Bonanza, Meridian and Copper Chimney provides higher quality foods and service. As a Restaurant, Pavillion and its competitors offer a wide span of product assortments. They share some similarities and difference with each other in product variety. It is discussed briefly below:

#Similarities: The similar kind of food item that Pavillion and its other competitor offers are: Thai Dish, Continental dish and country specials. #Differences: Pavilion will also provide the same items. But they will offer some extra products and benefits for the customers. They will provide Sichuan food and some other items never been served in any restaurants of Chittagong Distribution: Almost all the restaurants provide their service to the customer from their specific location. Only Meridian affords catering service for the customer outside the restaurant. According to the survey it is found that Pavillion and Its competitors have differences and similarity on their distribution channel. #Similarities: The entire restaurant in Chittagong has the same way of serving their foods and services in their outlets. That means they use direct distribution channel.

#Differences:

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The major difference in distributing the products and services to their targeted customer is that the competitors sometimes provide catering service outsides. But Pavillion will not do it.

Pricing: The pricing equation for foods and service sold in restaurants is illustrated by the following example: The cost proportions of the food item are: restaurant service 30%, restaurant administration and profit 25%, other restaurant overheads 16%, sales tax 15% and remaining 14% to the workers and employees. Pavillion and all the restaurants are determined to provide quality and convenience to the customers. The difference between Pavillion and all other restaurants is that some restaurants provide food with reasonable price, but we provide premium quality with premium price. Promotion: There is little evidence of high profile promotional activity by the restaurants of Chittagong. Most of the significant players seek recognition and hence marketing advantage. Some restaurants occasionally advertise in the national dailies. Most include on their leaflets an invitation to join a mailing list and receive regular information on new releases and specials. The differences and similarities in promotion perspective in between Pavillion and the other competitors are described below: #Similarities: Pavillion is in the in the introduction stage of their business. So the major aims of their promotional activities are to create awareness of the business and to an image in the consumer mind. For this Pavillion uses newspaper, leaflets, and magazines to do the promotion. #Differences:

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Pavillion will also follow some strategies which are not followed by any other restaurants in Chittagong to achieve goals. They will use e-mail or mail. There will be a website for Pavillion which will provide all the necessary information about the restaurant to attract customers. The will also arrange cooking show and cooking competition in special days

Barriers existing for new players to enter the market Investment: The standard costs relating to the establishment of a restaurant are very high. Coupled with the delay in production of minimum 1 year, it is not easy to enter the market without a significant capital outlay. There are significant risks involved and it is highly recommended that substantial cash reserves are available to the owners to avoid accumulating debts where servicing the interest component alone can add years to a break-even timeframe. Time: The industry has some time lags; there is a substantial delay between investment and revenues. It takes one to two years to produce good cash flow from a restaurant like ours. It needs equity and sufficient cash reserves in order to achieve adequate rates of return on investment. Key personnel: The restaurant industry has proven to be a very idealistic for many investors. There are many small producers who struggle to break-even. Simply having knowledge of food and the operations of a restaurant are not enough. There has to be a good team. Skills of preparing various dishes are obviously critical to the success of a restaurant. A recent research shows that factors that have constrained the growth of the local industry in the past two decades are the

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absence of formally-qualified chefs and specialists on food items, and a lack of understanding of the social and demographic problems. Customer loyalty: Customer loyalty is an important factor in repeat sales. Customer loyalty is one of the things that make marketing so successful. It is also the reason why it is essential to provide a high quality food and service every time. Customers do not like risk. If they happened to be holding a dinner party they will not come to the restaurant if last time it was lower than anticipation. Loyalty is also strongly associated with word-of-mouth publicity. Though the positives do not flow as freely as negatives, a recommendation on restaurant like us can be very influential in the market. Others: We have considered that there is the potential for forming relationships with other food producers but this is not a priority at the moment. We will continue to evaluate prospective complimentary arrangements wherever there is a benefit to The Pavillion that does not interrupt on our aim to be known for quality foods.

THE MARKET Industry description: We could not determine the actual time when restaurant business started in this geographic area. But after the independence in 1971, the industry grew at a slow pace. Since the last decade it has drawn a greater attention of many investors who are targeting different segments of people. Now day people go to the restaurants to taste different types of foods as restaurants serve a huge variety like Indian, Thai, Continental, Bengali, Chinese etc. Having food in a restaurant is no longer been a necessity, for some people it has become passion, for some fashion, and for some one change of taste.

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Capital intensive: Establishment costs are very high for a restaurant like The Pavillion. To achieve adequate rate of return on investment we need a higher portion of equity and good cash reserves because the industry has some large time lags. It takes a minimum of 1 to 2 years to produce a good cash flow. There is also ongoing capital investment to continue to provide a better service with unique quality food.

Labor intensive: Providing food & service in a restaurant involves a long series of value adding. So restaurants employ a large number of people directly or indirectly. Labor is required for the following Receiving the customer with great admiration. Help them in selecting item (describing about various dishes). To serve food in an excellent manner. Asking about the dishes and seek advocacy for continual improvement,

Skill based: A high level of skill and knowledge of how to handle the operations and process foods is essential. Chefs and the other skilled staffs must know the quality desired for each product and service. A thorough understanding of the customer psychology and mentality and to handle them according to that is also important. All of these factors ultimately determine the success of the restaurant. Technology: We have invested in the latest, simplest internet based ordering and inventory systems. From our web page customers can learn about us, our products and about the residential hotel that belong to our company. Customers

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payment through the credit / debit cards need approval of credit / debit card transaction, which avoids us running into accounts receivable problems. Changes in the marketing mix: Consumer tastes are forever changing and there are possibilities of newer improved varieties of food items. The restaurant should be as flexible as possible to allow for future changes. SIZE OF YOUR TARGET MARKET: Segments: We have used secondary research to investigate our target market. The figures we are using are based on 2001 census data and were first released in 2003. There have been a few significant adjustments but the figures should still provide a relatively accurate prediction. We intend to focus on the consumer market, particularly the 2040 year age group. The quality grading of our restaurant helped to determine the type of market we will target. We have refined our target market by looking at the people who earn minimum tk 40,000 per month. This is on the assumption that since our food items are priced almost at Tk. 300, we needed a target with sufficient income to afford such luxuries. The market can be segmented into the following four groups. Market Segments:

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Mareket Segmentation of Population by Income

5% 15%

45%

1,000-15,000 15,000-30,000 30,000-40,000 Above 40,000

35%

This, however, is a conservative estimate, as the average income of the people of Chittagong is higher therefore the level of consumption may also be higher. The 5 % proportion projected in the graph is our potential customers whose income is above tk 40,000. From these figures we expect this segment to have a significant positive impact in our business.

Benefits sought

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The Pavillion is most likely to establish a significant market share in the local restaurant market. The benefits sought from targeted segments are listed below:

Common benefits: No harmful ingredients will be used in preparing the dishes. Less fat and cholesterol. Foods will be prepared in such manner that it will be easy for digestion.

Focus on supreme quality: As we are targeting quality conscious people and we are promising to serve many additional benefits than other existing restaurants. So, it is obvious that we are focusing on supreme quality. Attractive interior design: As we are competing in perfect competition, our investment in interior decoration is quite high. So we are emphasizing on attractive and eye-catching interior.

Health conscious target segment: Health conscious people always look for quality foods. They are sharing some hidden needs that cannot be satisfied by any existing restaurants. We have measured the size of the potential market and developed our product to satisfy those needs. Potential Market On average each consumer comes approximately twice a week, spending some Tk. 2,000 each time. Obviously this large consumption is served by a wide variety of competitors; there are some 12 other first-rate restaurants in the city.

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Marketing Research Requirements: 1) Research Problems: Through the marketing plan, we faced some problems related to the research program. Lack of information: There were some people whose attitude were negative and thus didnt provide us sufficient information.

Time consuming: To visit different offices, we had to spend a huge amount of time as some of the people made delay to supply the information and data. Sometimes they took time but didnt disclose proper information. Our sources of secondary data: 1) 2) 3) 4) Annual sales report Sales performance report Market report Different journal published.

Responsible: To collect secondary data, the members who where responsible for it * Ashiqul Haque * Fashiul Alam Estimated Cost: Our estimated cost for collecting secondary information is approx. Tk. 3000 Primary research:

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The factors of our primary research are

1)

Questionnaire:

In Khulshi area, Panchalish, O. R. Nizam Road- we went through with this process.

2)

Market survey: For market survey, we visited Meridian, Bonanza, Silver Spoon, Copper

Chimney, Snoopy, Issy Food. 3) Interview: We visited the restaurants and took interview from their marketing officers. Responsible: Responsible persons related to this section are * * * Sameer Zakaria Mazharul Haque Mamunur Rashid

Estimated Cost : Our estimated cost for primary research is approx. 1000 Tk.

Uncontrollable environmental factors: Some factors existing in the external environment are uncontrollable. These factors have a great impact on every business. We have to consider all these uncontrollable factors. Uncontrollable factors are those on which we dont have any control. As we are unable to handle them, these can affect our business greatly.

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The uncontrollable environmental factors that have an impact on our business are 1) Government regulations: Such regulations are * Import Export policy. * Tax / Vat. * Geographical barrier. 2) Legal Changes: The factors are * Company Act * Situational Govt. Act. 3) Social /Cultural Changes: The changes can affect our business such as * Cultural impact * Local trend. 4) Climate: Climate is completely uncontrollable factor like * Over rainfall * Cyclone

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SWOT Analysis: SWOT stands for strengths, weaknesses, opportunities and threats and is perhaps the most well known of all analytical management techniques. Strengths and weaknesses are usually pin-pointed in the course of internal analysis so that the result of the value-chain and portfolio analysis would be pertinent. Opportunities and threats relate to trends and the likely developments in the external environment and would be identified in the PESTLE and five forces exercise. Thus a strength may be a highly skilled work-force and a weakness out-of-date plant and machinery; while a new product line might constitute an opportunity, but competition from cheaper inputs could pose a threat. Lynch identifies several factors which will enhance the quality of a SWOT Analysis: Keep it brief; long lists suggest a lack of strategic judgment. Wherever possible, relate strength and weaknesses to key factors for successes. Strengths and weaknesses should be stated in competitive terms. Statements statements. Be realistic about strengths and weaknesses. Be able to back each point up with arguments and evidence. should be specific; avoid motherhood and apple-pie

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The overall evaluation of a companys strengths, weakness, opportunities and threats is called SWOT analysis. Strength: Potential resource strengths and competitive capabilities are called strength. 1. Efficient and experienced work force: The chairman and the managing director of food & accommodation company ltd. Have 10 years of successful business experience in service and food business. Some managers will be received from aboard to ensure the high quality. The expertise in the service industry will enable the promoters to minimize the cost of the project (cost efficient) and bring business success within very short time. 2. Location: Location is one of the most important strength of Pavillion. We are covering almost 8 biggest area of Chittagong such as Panchlaish, Sugondha, Nasirabad Housing Society, Hill View, Amirbag, Katalgonj, and Chalkbazar etc. For this reason we expect to pull together a huge number of potential customers.

3. Strong financial position: Financial position is strength for the company. Our board of directors have sufficient amount of money reserved if something goes wrong. So we have good backup. Our directors have other businesses also, which is the main reason for our financial position.

4. Adequate parking space:

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The guest of the restaurant and residential hotel can park at least 30 cars at basement parking of the building. The main competitors Hotel Harbor View and Hotel Meridian do not have such parking facilities. The guest of the restaurants can park their cars at the basement parking. The 100% security of the cars will be insured.

5. Use of latest and sophisticated technology of India and China : In our restaurant we will use all the sophisticated technology i.e. Grill machine, Microwave Oven, Refrigerator and even the glasses and plates are also brought from India and china. These appliances will serve with best performance, as we emphasize more on quality 6. Diverse food items never served in Chittagong : We will serve some food items which have never been served in Chittagong. We will also have special seasonal food items to attract the new customers and to retain them. Weakness: Potential resource weakness and competitive deficiencies are called companys weakness. 1. small size of target customers: One of the weaknesses of Pavilion is small size targeted segments. As our company is targeting only the highest segment in chittagong. As only 5%-7% of the total market is targeted by our company, so it will be hard for us to gain long term profit and market share. Our competitors Meridian and Bonanza is ahead from us from this aspect as they are targeting the upper class and middle class segment.

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Opportunity: A marketing opportunity is an area of buyers need or potential interest in which a company can perform profitably. 1. Accepting differentiated products: As Pavilion is serving some of food items which have never been served in any restaurant of Chittagong, so we have a huge opportunity to explore a new market. Meridian and Bonanza serves dishes which are familiar with the people. So this is a great opportunity for us. 2. Targeting the highest segment and earning profit: We have targeted such a segment, which has never been targeted. This segment used to go to the other restaurants. But as they will get special treatment in our restaurant, so the revenue from this segment will be earned by Pavilion. 3. Clients of the hotel: As Pavilion has a hotel in the 4 th and 5th floor, it is likely that the people staying in hotel will eat in this restaurant. It is a big opportunity for the restaurant.

4. Few competitors: In Chittagong, there are few restaurants which are targeting the same customer group that our company is targeting. Meridian and Bonanza are competitors for our industry. And all the fast-food shops are our indirect competitors. So, this is a great opportunity for us to grave our target market shares. 5. Positive lifestyle:

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From a survey, it was found that the people of Chittagong are now starting to accept new things and changes in life. So we think that it will help us if we can bring new food items. Threat: An environmental threat is a challenge posed by an unfavorable trend or development that would lead in the absence of defensive marketing action to deterioration in sales or profit. 1. Buyers are more price-conscious and harder to please: Now a day, as the competition has increased, the buyers have become more prices sensitive. Again as they are occupied with different brands, it will be hard for us to please them and switch them from their existing brand.

2. We are going to compete in highly competitive market: The restaurant industry in Chittagong is now in matured stage and there is too much competition. So we have to take extensive amount of advertising and promotional activities to achieve our desired market share. So, Competition is a great threat for us.

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Marketing Mix: Products your competitors offer: Product Line: A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. Width: Refers to the number of different product line that the company carries. For Meridian the width is 4, as they carry 4 product lines: 1. Thai 2. Chinese 3. Continental kitchen 4. Country specials Depth: It refers to the number of versions of each product that carries in the product line.

Thai Food: For Meridian, Their 1st product line, which is Thai consists 6 products.

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1. Appetizer--- Version----9 2. Thai hot pot--- Version---14 3. Sea food (Thai style)--- Version---22 4. Poultry and tender lion---- version----14 5. Vegetable Thai Style----- version---- 3 6. Bangladesh rice- Thai noodles--- version---8 Depth for Thai food items= 70 Chinese Foods: Their 2nd Product line, Chinese Foods consist of 6 products. 1. Hong Kong kettle--- version---11 2. Peking crisps----- version----10 3. Bay Assorties-----version-----10 4. Beijing Chicken-----version----12 5. Tender lion tian-min----version---5 6. Chayw fan & Chowmen----version---8 Depth of Chinese food items=56 Continental kitchen: Their 3rd Product line, continental kitchen consist of 4 products 1. A hearty start----version---7 2. The hot mermaid--- version---3 3. The bay Special----version---7 4. Grills & entrees----version---5 Depth of Continental food items=22 The country specialties: Their 4th Product line, the country specialties consist of 2 products:

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1. Served with Nan parata- Steamed rice spicy Salad chatny---version--10 2. Fresh from the Garden---version---3 Quality: Product quality is the ability of a product to perform is functions, it includes the products overall durability, reliability, precision, ease of operation and repair, and other valued attributes. Quality is mixed. Some of the restaurants provide high quality with reasonable price. Again some restaurants provide an average quality food with reasonable price. Service Level: Service is any activity or benefit that one party can offer to another is essentially intangible and doesnt result in ownership of anything. Service is as much important as product, as our business is a hybrid offer. It means the proportion of service and product. It consists of equal parts of goods and services. Our competitor provides better service, but the Pavillion will try to provide something more than better.

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Promotion our competitors use: Media: Competitor: Meridian (Monthly) Radio How offer Estimate d Cost Total costs of promotion: 30,000 % of sales: 3% (10, 00,000) Competitor: Bonanza (Monthly) Radio How offer Estimate d Cost Total costs of promotion: 17,000 % of sales: 1.5% (11, 33,330) 10,000 7,000 TV Cable News Paper Magazine Direct Mail Out door Personal Selling 2,000 15,000 5,000 8,000 TV Cable News Paper Magazine Direct Mail Out door Personal Selling

Competitor: Copper Chimney (Monthly) Radio Others Raffle Draw News Paper Magazine Direct Mail Out door Personal Selling

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How offer Estimate d Cost Total costs of promotion: 25,000 % of sales: 2.5% (10, 00,000) Source: Data provided by Management of Meridian, Bonanza, Copper Chimney. Price our competitor charges: Product Hot & Sour Soup Chicken Corn Soup Fried Spring Chicken Wonton Competitor Meridian 150 130 180 130 Competitor Bonanza 180 160 190 140 Competitor Copper Chimney 170 150 170 150 Our Price 200 190 210 160 10,000 5,000 10,000

Source: by doing survey from Meridian, bonanza, copper Chimney

Competitor emphases: Strategic Competitor Bonanza Competitor Meridian Competitor Copper Competitor Silver Spoon

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Focus Cost Differenti ation

Quality High Brand position

Price Average Choice customers

Chimney Price& Quality Price Average Average by choice by Choice customers customers.

by

Source: through market research.

Sustain strategy of the competitors: Bonanza: Its major competitive advantage is its strong market position due to strong brand loyalty and high market share. So, based on these, Bonanza is capable to sustain in the market. Meridian: The quality of Meridian is not up to the mark. Moreover as they are giving too much discounts, it will certainly hamper their image or brand name. As time is changing, they are failing to cope up with their quality with the price. So, we think that it will be hard for Meridian to sustain with this strategy. Copper Chimney: Copper Chimney is providing the customer the quality food with reasonable price. They also have corporate clients, as they are operating in a commercial area. So, we think that they can sustain with their strategy.

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MARKETING MIX STRATEGY: Companys offer to the marketplace often includes both tangible goods and services. Each component can be a minor or a major part of the total offer. At one extreme the offer may consist pure tangible goods and the other extreme are pure service. Company offer may consist of tangible goods with accompanied services. Where we stand is in HYBRID OFFER. It consists of equal parts of goods and service. Products or Goods: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need is called product. Pavillion has a wide verity of food. Our total product assortment is around 298. Product line: A group of products that are closely related because they function in a similar manner, are sold to the same customer groups, are marketed through the same types of outlets, or fall within given price ranges. In developing product line strategies, marketers face a number of tough decisions. Here we have a discussion about the product line depth and width of Pavillion: Width: It refers to the number of different product line that the company carries. For us our width is 4. That means we carry four product lines.

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1. Chinese Food. 2. Thai Food. 3. Indian Food. 4. Szechuan Food.

Depth: It refers to the number of versions of each product that carries in the product line. Chinese foods: Our 1st product line is Chinese food, which have 10 products. 1. Soup----version----5 2. Dim sums----version---4 3. Starters----version----6 4. Non-Vegetarian----version----9 5. Sea- foods----version---10 6. chicken----version---7 7. Lamb----version----4 8. Beef----version---6 9. rice---version---20 10. Noodles----version---14 Depth of Chinese food=85 Indian foods: Our 2nd product line is Indian foods, which have 5 products 1. Tandor----version---25 2. Daal---version---10 3. Beef---version---16 4. parata----version---9

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5. rice----version---7 Depth of Indian foods= 67 Thai foods: Our 3rd Product line is Thai foods, which has 9 products. 1. Appetizers---version---7 2. Salad----version----9 3. Soup----version---9 4. Price----version---6 5. Chicken----version---12 6. Prawn-Crab----version---18 7. Cuttle fishes----version---4 8. Beef----version---10 9. Fish----version---11 Depth of Thai food=86 And for Sichuan Menu the Pavillion was unable to provide it to us. Quality: Quality is the totality of features and characteristics of a product that bear on its ability stated or implied needs. Many of our competitors are using average quality with reasonable price. But Pavillion is going to charge the premium price and provide premium food quality and service. Management will inspect every step of production and do research to maintain the quality level.

Service Level:

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Service is any activity or benefit that one party can offer to another is essentially intangible and doesnt result in ownership of anything. And Service level is the extent to which a supplying resource satisfies customer requirements, often expressed in terms of error rate, resource availability or accuracy in meeting requested dates. Pavillion will try to ensure the highest level of service to the customers. That means it will serve food faster, create healthy environment than its competitors. Trademark and Branding: Trademark is a word, phrase, slogan, design or symbol used to identify goods and distinguish them from competitive products. Trademarks may be registered with the Patent and Trademark Office, and similar offices worldwide. Trademark Cost for trademark Patent Brand Licensing the Pavillion 12,000/Food & Accommodation corporation Ltd. the Pavillion. Under Govt. regulations. Food & Accommodation corporation Ltd..

Positioning: All marketing strategy is built on STP- Segmentation Targeting & Positioning. A company discovers different needs and groups in the market place. Target those needs and groups that it can satisfy in a superior way and then position it are offering so that the target market recognize the companys distinctive offering and image. If a company does an excellent job of positioning,

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then it can work out the rest of its marketing planning and differentiation from its positioning strategy.

Positioning is the act of designing the companys offering and image to occupy a distinctive place in the mind of the target market. The end result of positioning is the successful creation of a customer focused value position, a cogent reason why the target market should by the product. A company must decide how many benefits or features to convey in its positioning to its target customers. High quality position requires the firm to produce high quality products, charge a high price, distribute through high-class dealers and advertise in high quality magazines. The products quality image is also affected by packaging and promotion.

We want to position ourselves in such a way in the mind of the consumers that whenever they think of Pavillion, they think of premium service with premium price. That means, we want to position ourselves in such a place, that the name Pavillion itself ensures them a promise.

Positioning:

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Figure (1): Price VS Food Quality

Explanation of the Graph (1): As in the graph at the top of Y-axis there is high Food Quality and at the bottom is low Food Quality and in the X- axis in the left side there are High Price and in the right side there are Low price. Pavilions positioning in this graph is at High price High Food Quality area, which is at the Second quadrant of the graph. In this quadrant Bonanza and Copper Chimney also positions themselves, but a relatively at a lower price and food quality than Pavillion. Silver Spoon creates an image of relatively higher food quality with lower price and it is

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in first quadrant. As Meridian is positioned in the fourth quadrant that implies that they have a low price and provide low food quality.

Figure (2): Decoration VS Environment Figure (2): Decoration Vs Environment Explanation of the Graph (2): As in the graph at the top of Y-axis there is high Decoration and at the bottom is low decoration and in the X- axis in the left side there are Environment and in the right side there are Low Environment. Decoration means the ornaments or beauty and Environment means the internal situation of a

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restaurant or how the customer fells in the restaurant? Environment is rather intangible than decoration. Pavilions positioning in this graph is at High decoration and very good Environment, which is at the Second quadrant of the graph. In this quadrant Copper Chimney and Bonanza also positions themselves, but a relatively at a lower decoration and Environment than Pavillion. Silver Spoon creates an image of relatively higher Decoration with lower Environment condition and it is in first quadrant. As Meridian is positioned in the fourth quadrant that implies that they have a low decoration and low Environmental condition.

Figure (3): Location VS Parking

Explanation of the Graph (3): As in the graph at the top of Y-axis there is high Facilities of location and at the bottom is low facilities of location and in the X- axis in the left

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side there are high parking facilities and in the right side there are Low parking facilities. Pavillion has got an excellent location in the heart of the city, G.E.C circle. It has also the option of parking 30 cars at a time in the basement. Pavilions positioning in this graph is at High facilities of location and very good Parking place, which is at the Second quadrant of the graph. In this quadrant Meridian also positions itself, as having a relatively low location facilities and parking facilities than Pavillion. Copper Chimney creates an image of having relatively higher Parking facilities with lower Location facilities and it is in third quadrant. Bonanza has got superior location but lower parking facilities. It is in the first quadrant. On the basis of location and parking Silver Spoon stay at the lowest position in Fourth quadrant.

Product Life cycle: -

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PAVILLION

Industry life cycle.

Product life cycle.

Introduction

Growth

Maturity

Decline

At what Stage is your product in? As our product Pavillion is going to start its journey in the coming May so it is just at the introduction stage in the product life cycle. The concept of Restaurant in Chittagong is old. So in that perspective, the industry life cycle is at the Maturity stage. What implication does that have for our strategy?

Product: We marketed a high quality product.

Promotion: Promotional program will be launched recently. We have a substantial budget allocated for the first few years of production. We need to win

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market share in order to achieve the sort of widespread brand equity we are hoping to achieve.

Price: We maintain a high price.

Customer: We target upper class consumers.

New product Introduction: Upgrade Current Products: Our management is committed to producing the best quality foods and services possible. Each year an innovative technique is adopted by her. Thus, in a way we do strive to upgrade our product. We may experiment changing the food items ingredients if we see there is a benefit to establishing sustainable brand equity. Given that we can achieve our desired brand equity plans, which we will assess through primary research, analysis and evaluation, we will broaden the food menu range. Moreover, we will change our food menus according to different seasons and special occasions. We will also change food items after every six months so that the recipe cannot be copied. We want to be distinct from the crowd. The additions to the range will be new products but we do not see that we will be facing the same risks as say a car manufacturer introducing a new model design.

Same Category:

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New Products will certainly be in the same category Premium. Our food categories will be same that means we will not go beyond our existing product line. We will change the food items according to customer needs and wants.

Responsibility: The manager and as a whole the total management will ensure the quality of our products. All the members from top to bottom will be responsible for the quality and sales of the product. Of course, publicity, awards and other recognition of quality will be prompt us to consider broadening the range. If the customers love it, it will sell! Promotion: Promotions are the activities that communicate the merits of the product and persuade target customers to buy it. As other direct and indirect competitors Pavillion also go with promotion. According to different time dimension and different objective the promotional aims becomes different. As the industry is in matured stage, and there are lots of direct and indirect competitors, so Pavillion has to take an extensive amount of promotional activities to attract the new customers from their current brand. We are going to arrange a launching party in Hotel Agrabad where the Commerce Minister of Bangladesh Government and all the executives of the renowned companies will be invited. Here some different promotional aims a follows:

Promotional Aim:

We aim to project an image of quality and specialty at very good value, with a strong regional identity. By rolling out our promotional campaign in carefully planned steps, we aim to stimulate a demand for our products and services.

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Image: For Pavillion, every media, which is attracted by the target customer, or the media, which reach the target, market can be used. As our target market area only is Chittagong, the target customers are basically interested towards the Newspapers and magazines. Newspaper ads attract them. As Internet is very famous and effective media to create image to in the world, Pavillion will have their own website and it will have all the necessary information about the restaurant. This information will be used to communicate with the target customer Hence Internet is a suitable media for Pavillion to do promotion for image development in Chittagong and through out the country. So, Pavillion can choose Newspaper and magazine media to do promotion for image development. They will also distribute leaflets; as for a new business it is hard to attract the customer. So they will use extensive amount of promotional activities. Increase of Awareness: Pavillion is in the introductory stage. In this stage the company will go for promotion to increase awareness in the consumer mind. According to the characteristics of introduction stage, there are fights for market share among the competitors through making the target customers are well aware of the products. In this industry there are four direct competitors and to gain a large market share, we have to make the customers aware of our brand. Without brand awareness it is virtually impossible to gain market share. A Brand is promise. So to keep the promise we also have to serve the premium quality foods. So, Pavillion will go for aware ness promotion just to aware the target customers that they are there to serve them. By promotion: 1) Newspaper.

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2) 3) 4) 5)

Arranging cookery show. Popular magazines Distributing leaflets. E- Mail.

Price Promotion: We have confidence that with production of consistently high quality foods and services, we can increase the price of our products without significantly affecting the demand. If your Product is proving popular then the price increase may be advantageous. Demand following a price increase may not be affected necessarily, because the product may be perceived as one which has increased in quality.

Seasonal Promotion:

In different seasons Pavillion will take different promotional strategies. Like in different seasons the restaurant will offer different food items and attract customers with new and exclusive food items never served in Chittagong. So, in different seasons there will be special items.

Special Promotion:

Other then the above promotions Pavillion also goes for promotion in some other occasion. In different social occasion and special days Pavillion go for different promotion activities. In mothers day or in womens day Pavillion will arrange cooking competition or give training for cooking different Thai or Chinese items. We will also do raffle draw in different occasions.

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Schedule of Media:

NEWSPAPER E- Mail Reach many market. how people 30% target custome r 30% i.e. of of 80% of the total target customer i.e. 80% of 40000 = 32,000 MAGAZINE 5% of the total target customer i.e. 5% of 40000=2,000

the total

in the target

40000= 12,000 Re How Often Media Cost for Schedule. Total media cost gular Occasionally Per page 25,000 25,000 15,000 color Tk. Occasionally Per color page Tk. 15,000

Total Cost of Above Promotion: -

The total cost of the above promotional activities of a month is TK.-40, 000. Our estimated total sale is around TK.14, 66,700 and we aim to keep about 4.09% of sales for our promotional activities. So every month we have a

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budget of around Tk. 80,000 for promotional works. The remaining money after every months promotional activities if any will be kept for future needs.

Sales promotion for Consumers:

Pavillion will go for different kinds of promotion in different perspective. But above all of those, Pavillion gives some distinctive promotion in sales. Moreover in different occasions Pavillion will arrange a raffle draw Program. Customers who buy more than Tk.1000 product gets a coupon for raffle draw program. Where one can win a Chittagong to Katmandu air ticket, a blander machine, a toaster etc.

Total Costs: Media Production: Newspaper, Magazine, leaflets. Sales Promotion: Raffle draw program Publicity: Opening ceremony. 50% of total Tk.40, 000 Tk.30, 000 Tk.10, 000

Promotion 37.5% of total Promotion 12.5% of total Promotion

The total amount of monthly cost is around TK. 80,000, Which is around 5.45% of total sales.

Promotion Strategy:

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Pull Strategy: - Pull strategy is a promotion strategy that calls for spending a lot on advertising and consumer promotion to build up consumer demand. In successful pull strategy consumer will ask for the products.

Push Strategy: - Push strategy is a promotion strategy that calls for using the sales force and trade promotion to push the products through channels. In this strategy the producer promote the wholesalers, the wholesalers promote the retailers and the retailers promote to customer.

As Pavillion is a new restaurant, and it has no distribution channel or retailers and wholesalers, it needs a wide range of promotional activities. By this the restaurant will attract the targeted customers. So it implies that Pavillion will follow the pull strategy. Where there is no option of using the push strategy.

PRICE: Basis of setting Price: Cost plus pricing means to add a standard mark ups to the cost of the product. That means, Cost Plus Pricing= Cost of production + Mark up Pavillion prefers Cost Plus pricing. Our target is to accomplish 10% market share of total market. In order to grab the market share a unique strategy must be followed which no other competitor has introduced till now. By our survey we found out that our target customer of Chittagong are highly quality sensitive and less price sensitive. Moreover our cost of production is high. So we

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will provide premium quality food & service and our pricing policy will be cost plus pricing. Price Proposed price for products:

Production Costs Fixed Costs Variable Costs Total Costs Break Even point

Chinese Foods 122.72 102.27 225 758

Thai Foods 122.72 102.27 225 758

Sichuan Foods 122.72 102.27 225 758

Indian Foods 122.72 102.27 225 758

Mark Ups: OUR SELLING

PRICE

ESTIMATED LEVELS

COSTS

TAX (OVER ALL)

SERVICE
CHARGE

CONSUMER
PAYS

(PER UNIT)

(PER UNIT) Chinese Foods 1: 1,222.25 2: 1,500 Thai Foods 1: 1,222.25 2: 1,500 Indian 1: 1,222.25 2: 1,500 225 202.27 300 217.27 10% 10%

(OVER ALL)

(PER UNIT)

15% 15%

375 346.58

225 202.27

300 217.27

10% 10%

15% 15%

375 346.58

225 202.27

300 217.27

10% 10%

15% 15%

375 346.58

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Sichuan Foods 1: 1,222.25 2: 1,500 225 202.27 300 217.27 10% 10% 15% 15% 375 346.58

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