Runninghead:YOURmarketingplan

Tommy R. Session
Marketing Management-MKT 500
Professor Dr Alexander Onukwugha
13 Mar 14

Author Note
This paper was prepared for Marketing Management 500, taught by Professor Dr
Alexander Onukwugha

EXECUTIVE SUMMARY

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Four Star Delivery is a unique delivery company that specializes in delivering quality
restaurant prepared meals to surrounding locations within a 20 square mile radius of
South Point Shopping Center. We have partnered with local restaurants Chilis Grill &
Bar, Applebees, Griolis Italian Bistro and Morsis Mediterranean Grill. All four
restaurants are located within the South Point Shopping, each restaurant has established a
per delivery minimum order to qualify for the delivery service. Chilis Grill & Bar
minimum order is $25 per order, Griolis Italian Bistro minimum order is $25 per order,
Applebees minimum order is $25 per order and Morsis Mediterranean Grill minimum
order is $20 per order.
Currently there are restaurant delivery services located in the South Point
Shopping Center limiting competition to only one pizza delivery operation located 3
tenths of a mile south. Four Star will have an initial team consisting of four full time
positions and two part time positions. The full time positions will comprised of an office
manager, a coordinator and two delivery drivers. One part-time position will be a
combination office manager/coordinator and the other position be a driver.
Our goal is to acquire 2 or more restaurant partners per year located at the South
Point Shopping Center. Our five goal is to expand operations to include restaurants
located in the larger Central Park Shopping area. Our Central Park location will also
cover restaurants located the Westwood Shopping Center located three tenths of a mile
north on route one. Two of our current partners have businesses located in the Central
Park Shopping area and one is located in the Westwood Shopping Center. When have
tentative agreements in place with those restaurants with a service starting date within the

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next five years. Our agreement stipulates that both companies will set an official start
with the next 2 year.
MISSION STATEMENT

The mission of Four Star Delivery is to provide our customers with an experience
unlike any other. We will bring our customers the experience of four star dining to their
door step. Our service will be prompt and courteous, meals will be delivered hot and
fresh just as if the customer was in the restaurant awaiting the delivery at their table. The
restaurants that we partner with will be of the highest quality and their reputation will be
well known. Our partners will have an A rating from the health depart and receive
excellent rating from any agency that is tasked with inspecting them. We are striving to
bring our customers a variety of foods from varying restaurants with different types of
cuisine that will satisfy every customers taste.
COMPANY INTORDUCTION
Four Star Delivery was formed by two friends will eating dinner a local restaurant
and wondered why the restaurant didnt have a delivery service. The concept of delivery
the restaurants form the core idea behind the company. The limited amount food delivery
options prompted the two friend to seek a viable option to bring that restaurants foods to
their door steps. The initial concept encompassed only one restaurant, the idea eventually
spread to encompass our current four partners. We are currently located in the South
Point Shopping center which is a central location in the Fredericksburg/Spotsylvania
County area. This location serves the heart of what is considered the old part of the

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country. This area was the hub of the county where old town Fredericksburg meet the
outlying surrounding county of Spotsylvania. We currently have 5 employees, our staff
consist of the office manager, the coordinator, two full time delivery drivers and one part
time office manager/coordinator. We are currently seeking and driver that will be parttime for us.
BRANDING

Our company log will consist of our company surrounded by four stars to indicate all that
we do is surrounded by stardom to rely the message of success. This design will be used
of all company correspondence as our official letter head.

Our picture log will used on our company website and be used a refrigerator magnet with
our company information printed for easy access for our customers. Will include a
refrigerator with every new delivery. We will track the new deliveries through our
computer data base.

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PRICING
Our pricing strategy will initially be based on the delivery location and the miles
from point of origin to the point of delivery for our customers. Will charge our partner
restaurants 15% order will be paid to us for the delivery service. The fee we are charging
our partners will not impact the cost for the customer. Our delivery vehicles average 50
miles per gallon of gas and their tank holds 12 gallons of gas. Our cars will be able to go
up to 600 miles per tank of gas. Gas prices are averaging $3.22, it will cost us $38.64 to
will up our vehicles. Every mile that we drive to deliver an order will cost us $.06. Our
planned furthest deliveries will have a round trip total mileage of 40 miles. These trips
will cost a total of $2.40 per trip. We will charge our customers $3.00 per delivery if they
are within 5 miles of our location, $4.00 per delivery if they are within 10 miles of our
location, $5.00 per delivery if they are within 15 miles of our location and $6.00 per
delivery if they are within 20 miles of our location.
DISTRIBUTION PLAN
Our company will not be distributing any products to physical locations at this time. We
will be trying to put some brochures at a few of the restaurants here in South Point

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Shopping Center that have not partnered with use. Our brochures will contain a
questionnaire to gauge the interest of the customers in a delivery service for that
particular restaurant. We will also distribute some brochures at the restaurants in
Central Park Shopping Center initially with Applebees & Chilis Grill & Bar. Feedback
from the brochures questionnaires will give the marketing information necessary to
determine a timeline for our expansion in the Central Park Shopping Center.
MARKETING STRATEGY
a. Our major competitors that are within our 20 square mile radius are 10 restaurant
businesses that currently offer home delivery. Six of the businesses are dominos
pizza, two of the businesses are Chinese cuisine and the other two are Pizza Hut
restaurants. Three of the dominions pizza locations are close enough to be
considered intra-competitors, the other three dominions restaurants are considered
inter-competitors. The two Pizza Hut restaurants are considered intra-competitors
because of their locations. The two Chinese restaurants are considered intercompetitors because their menus greatly differ from the types of food we can
presently provide to our customers. Our greatest competition will come from the
Dominos restaurant that is located 3 tenths of a mile from our location. Our
partner restaurants have types of pizza on their menu, this coincidence puts in
direct competition of the Dominos restaurant. This Dominos major strengths are
their longevity in servicing the areas that were currently servicing. This dominos
location has been operating for over 10 years. Due to the number of other
dominos restaurants in the area this location services a much smaller area than we
cover.

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b. We will differentiate ourselves from the Dominos by providing our customer a

variety of food choses that Dominos will not be able to match. We will provided
our service at a price where our customers will receive the best value for our
service. We will incorporate a loyalty program that will save our customers a
percentage of the delivery price after they reach certain miles stones. This
program will have incremental milestones measured over a given time period.
c. Our plan is to establish our company as an industry leader and maintain our initial
competitive advance as other companys enter our market. Our planned
expansion into the Central Park area will help maintain our position by cover
more geographical area with our service. Other areas of the city do not have a
concentration of restaurants that would support an initial startup in those areas.
They will only support expansion operations supported by well-established
nearby locations.
d. Our drivers will have to be in compliance with the Rappahannock Area Health
District (RAHD) standards for food handling. The other regulatory or legal forces
impacting Four Star is the Virginia Department of Agriculture and Consumers
Services. Transporting food is heavily regulated and we must stay in compliance.
Advances in Global Positioning Systems (GPS) will aid each driver with quick
routes and accurate locations. Each vehicle will be equipped with a built-in
navigation system and will have a backup portable navigation device. According
to Lidstone (2013) new emerging technology has increased in-car navigation
systems by 90%. Each vehicle will also have a tracking device to enable the
coordinator tracking information for each vehicle. One potential competitive

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advantage for Four Star delivery is that no other company is offering the same
services. We will be offering our customers the opportunity to enjoy quality food
at home that previously was only possible through their endeavor to venture out to
restaurants. We will be offering a quality service that will save them time and
effort. These same services can be seen passed down to the children and
grandchildren of the Boomer generation: consumers in the late teen to early 40s
demographic. The net result is an increase in potential new customers for our
services. The current state of the economy is bordering on be a full recession, this
may indicated that consumers will likely eat more at home than dine out. A
successful pricing strategy will help us alleviate the impact of the trend. The
trend in dinning out has brought health foods to the forefront of consumers
choices. Consumers are less likely to dine out but not because of budget
constraints (Jennings 2013) there are shifting to a healthier diet which will impact
their choice of restaurants they will patronize. Our current partners offer a wide
variety of foods that are classified as healthy choices. We will be able to deliver
our customers a fast and affordable opportunity to dine out in the comfort of their
own home. Other economic forces that will impact our ability to create and
sustain customers is the wiliness of our partners to promote price discounts that
will affect their profit margins.
e. The most significant trend that will impact our success is the rising cost of
utilities, especially the cost of electricity. Every household uses electricity daily.
The more household income goes toward utilities the less each household will be
able to spend on entertainment and luxuries such as dinning out or dining in as
our service provides. This trend will vary depending on time of year and weather

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conditions. Extreme winters or summer will cause a spike in household utility
cost. The only way we can minimize the impact of this trend is to develop a
marketing strategy that will increase or profits during optimal times of the year
when utility cost are at their lowest. Another trend that will impact or profits is
the rise and fall of gas prices. Gas prices are somewhat predictable as far when
they will rise and fall. Spring and summer months tend to show a rise in gas
prices. We will have to contend with lightly lower profit margins during these
months of rising gas prices.
IMPLEMENTATION STRATEGY
The office manager will be responsible for the following pre-launch activities:
1. Acquire necessary office space with the South Point Shopping area
2. Screen applicants for the full time driver position, Position will be filled no later
than 15 days before our launch date.
3. Lease two Toyota Prius with a 2 years lease agreement no later than 30 day prior
to launch day.
The coordinator will be responsible for the following pre-launch activities:
1. Acquire insurance policies that will cover all employees while at work, initially
the coverage needs to be a blanket coverage for anyone that company hires.
2. Design our company website
3. Screen applicants for the part time office manager position, Position will be filled
no later than 15 days before our launch date.
4. Ensure all agreements with our partner restaurants have been signed by both
parties and are filed with the necessary agencies.

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5. Coordinate with all utility companys the ensure office has the necessary utilities
to being operation on our scheduled launch day.

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The office manager will be responsible for the following launch activities:
1. Test website functionality to ensure website is fully function. Place dummy
orders to allow the website and our computer software run a submitted order.
2. Ensure the delivery vehicles are on-site and fully fueled for operation.
3. Ensure all computer systems are in place and operational
The office manager will be responsible for the following Post-launch activities:
1. Institute vehicle maintenance cycles keeping each vehicle functioning properly
and in accordance with our lease agreements.
2. Ensure our software packets are updated at least once a year
3. Hire a part-time driver as soon as operation stabilized
EXPANSION PLAN
We currently have agreements with 4 of the 10 restaurants in the South Point Shopping
center. Our goal is to acquire the business of at least one additional restaurant each year
of operation. Currently of biggest competitor is Dominions pizza, they are averaging 150
deliveries per week in our 20 mile square radius. We will capture 25% of those deliveries
within the first six months of the operations. We will increase this to 50% by the end of
our first year and increase this percentage by 10% end year thereafter.

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Delivers per week 150 Average

Dominos

Chinese Cuisines

Four Star

Pizza Hut

At our fifth year we will open an office in the Central Park Shopping area. Our goal is to
start operations in that area with at least 3 agreements in place. We will be able to open
the office with 2 agreements minimum. Central Park is a premium area with a variety of
restaurants that have not delivery service. The following list is comprised of potential
partners:
1. A&W Dining
2. Applebees
3. Bonefish Grill
4. Buffalo Wild Wings
5. Carrabbas Italian Grill
6. Chick-fil-A
7. Chipotle
8. Cicis Pizza
9. Cracker Barrel
10. Fire House subs
11. Fujiya House
12. GURU Indian Cuisine
13. Hibachi Buffet & Sushi
14. IHOP

15. Jimmy Johns Gourmet

Sandwiches
16. Long John Silver
17. Noodles & Company
18. Olive Garden
19. Outback Steakhouse
20. Pancho Villa
21. Panda Express
22. Qdoba Mexican Grill
23. Quaker Steak & lube
24. Ruby Tuesday
25. Ryans Family Steakhouse
26. Shanes Rib Shack
27. Smokey Bones
28. TGI Fridays

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29.
30. Our goal will be to break these restaurants down into categories based on the
type of food they specialize in preparing. We will then target restaurants from
each category to ensure we have a variety of options for our customers.
31.
32. SOCIAL MEDIA
33.

The first social media sight that I would be Facebook, The numbers of
user of this sight is steadily growing. The number of exposure one post on this
site could potentially reach every member. If is very easy for information to go
viral, according to Tam (2013) The social network is now at 1.06 billion
monthly active users. In addition to a 25 percent increase in monthly users from
last year and a 28 percent rise in daily users, Facebook saw 57 percent growth in
mobile monthly users. User have instant access to their Facebook with the
mobile app that can be used on any smartphone. Advertisers can use Facebook
to increase Brand awareness. We offer a unique service and Facebook is one
way we can attract a wide range of potential customers. According to ONeill
(2009) Facebook provides advertisers with 11 targeting factors:

1. Location - Facebook enables advertisers to target by country, state/province, city,

and metropolitan areas. All advertisements are required to have a location
selected. This should be pretty straight-forward as to which location youd like to
select.
2. Age - Age is a standard demographic factor. Most marketers that have a welldefined target-market will be able to select their age.

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3. Birthday - This is one of Facebooks latest advertising targeting filters. It should
be pretty obvious what types of ads should be presented to people whose birthday
it is. Try wishing the user a happy birthday and offer them a gift for higher
conversion rates.
4. Sex - Gender is another typical targeting filter for Facebook.
5. Keywords - Keywords will are based on a users profile information including
Activities, Favorite Books, TV Shows, Movies, and more. I believe job titles are
included in this field and I typically spend the most time trying to brainstorm
effective keywords. What types of products do your customers like? Whats their
job position within an organization? Spend time on this field and youll be
rewarded.
6. Education - While you can target based on their level of education, this is most
effective for targeting ads based on the schools that people went to. Want to
announce a reunion for the University of Illinois class of 1996? This is a great
way to promote it.
7. Workplaces - This is another great targeting filter. Often times you will know the
companies that your target market works at. If you are looking to get new clients
or looking to spread awareness within specific organizations, this filter can be
priceless.
8. Relationship - Want to target people that are about to get married? This is a great
tool for that. If you are a bar or club, you most likely want to go after those people
that are single. While this filter can be useful, you also need to keep in mind that
selecting any of these settings will remove all users that havent selected a
relationship status in their profile.
9. Interested In - This factor is useful if a users sexual preferences are relevant to
whatever you are advertising. I tend to skip this field for most of my ads.

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10. Languages - If your ad is in English but the user speaks Chinese, its probably not
a good idea to be displaying ads to them.
11. Connections - The connections fields were launched yesterday by Facebook and
they enable you to include and exclude users based on pages, events, and
applications that the users have joined and you happen to be the administrator of.
If youve created a Page and dont want the ads to display to people who have
already joined, this is a great way to avoid duplicate clicks.
34. We can use these targeting factors to reach customers with a wide variety of
food taste. Facebook is not for direct sales but our website will be available for
any user that visits or page. We will provide user with a small incentive if they
like our page and order from our website.
35.

Twitter will be the second social media toll that we will use to advertise
our services. We will establish a twitter account to communicate with potential
customers. We can purchase promoted tweets to engage the tweeter user base,
this can be cost effective because we would only pay if when a user replies to,
clicks or favorites the tweet (Edwards 2013).
36. PERFORMANCE STANDARDS

37. Our drivers will maintain a clean driver record, they will not exceed posted
speed limits on all deliveries. Speeding tickets will be a clear violation of this
standard. We will process all orders telephone and website within 15 minutes of
receiving the order. Telephone orders will be from or partners and web orders
will be from our customers.
38. MONITORY METHODS

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39. Our computer software will have integrated functions that will be able to track
the processing times of each order through input from the coordinator and driver
handheld system. Once a customer signs the driver handheld signature device
the information will be recorded in our computer data base. Our partner
restaurants will also track our order to pick time using their individual computer
systems.
40. FINANCIAL CONTROLS
41. We will have two options to handle our financial obligations. We have a line of
credit through Bank of America, with a maximum limit of 10,000 per month for
operational expenses. The line of credit can only be used with two signature
verification. Both the office manager and the coordinator must agree on each
expenditure. We have an American Express credit card with a $3,000 monthly
limit. The office manager and the coordinator will have the authority to use the
credit card. Drivers will have to reconcile each transaction nightly. We will
keep petty cash on hand that the office manager will have access to $150 per
day for small incidentals.
42. OVERALL PERFORMANCE
43. We will have 4 partners initially in the South Point Shopping Area, our initial
estimate of nightly deliveries is 20 per night. These deliveries will generate
$250 of revenue each night. Each year will add new partners generating
additional revenue, each new partner will increase our revenue by 10%.

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44.

Chart Title
25

20

15

10

0
Year 1

Year 5
Partners

Year 10

Year 15

Column2

45.
46. INTEGRATED MARKETING COMMUNICATIONS
47. We will advertise in our local newspaper The Free-Lance Star to target our local
customers in our 20 mile radius. We will initially run a full page ad for the first
two weeks of operations. Then we will run a half page ad for an additional two
weeks, we will then run a quarter page ad during or second month of operation.
During our second month of operation we will initiate a direct mail campaign to
cover every home in our 20 mile radius. We will systematically cover our area
sending direct mail to different home weekly. In our 3rd month of operations we
will also advertise on local radio stations, our goal is to simultaneously advertise
on 3 radio stations. We have four radio stations that broadcast a signal that

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sufficiently covers our area with a strong signal. We will advertise on WQRJ
95.5, WTDI 89.1 and QDRN 101.5. These stations play a variety of music
genres.
48.

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57.
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72.
73. References
74.
75. Jennings, L. (2013). Study: Consumers to dine out less often in 2014. Nations
Restaurant News. Retrieved from http://nrn.com/consumer-trends/studyconsumers-dine-out-less-often-2014
76.
77. Tam, D. (2013). Facebook by the numbers: 1.06 billion monthly active users.
Retrieved from http://news.cnet.com/8301-1023_3-57566550-93/facebook-bythe-numbers-1.06-billion-monthly-active-users/
78.
79. ONeill, N. (2009). 10 Rules For Advertising On Facebook. Retrieved from
http://www.businessinsider.com/10-rules-for-advertising-on-facebook-2009-7
80.
81. Edwards, J. (2013). How To Advertise On Twitter To get The Best Results.
Retrieved from http://www.businessinsider.com/how-to-advertise-on-twitter-toget-the-best-results-2013-2
82.
83. Lidstone, R. (2013). Researchers Develop a More Accurate Car Navigation
System Based on GPS. Retrieved from
http://www.m2mevolution.com/topics/m2mevolution/articles/326894researchers-develop-more-accurate-car-navigation-system-based.htm