Marketing Plan

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Contents

Page Number

Submission Form
1.0 Marketing Plan/ Business strategy
1.1 Positioning
1.2 Points of Differentiation
1.3 Pricing
1.4 Sales & Promotion

1
3
4
4
4
5

2.0 Operational Plan

2.1 Personnel Plan
2.2 Management Summary
2.3 Location
2.4 Production/ Purchasing
2.5 Legislative Consideration

5
5
6
7
8
9

3.0 Financial Plan

3.1 Personal Survival Budget
3.2 Start up Cost
3.3 Fixed & variable Cost
3.4 Break Even Point
3.5 Sales forecasting & Adjustment
3.6 Cash flow year 2012
3.7 Cash flow year 2013
3.8 Profit & Loss Accounts for year 1 and 2

10
10
12
13
13
14
18
20
22

4.0 Conclusion
5.0 References

24
25

Appendices

26

1.0 Marketing Plan/ Business strategy:

We are talking about Gimerton Indian Restaurant & Take Away a medium sized, 40
Seated Restaurant which will be based at Drum Street, Gilmerton, small town on the
Southern Part of Edinburgh.

The SWOT Analysis is a useful tool used for reviewing strategy and direction of a
company. This widely recognized 2*2 matrix method is used for business planning,
marketing, competitor evaluation and so on (Chapman, 2012).
STRENGTHS (INTERNAL)

WEAKNESSES (INTERNAL)

- Adequate, well trained Staff

- Away from the City Center

- Highly experienced Chef, Cook

- Less Space for Parking vehicles

- Marvelous Design & Cleanliness

- Marketing, Promotion, reasonable Price

- Online Booking, Ordering
OPPORTUNITIES (EXTERNAL)

THREATS (EXTERNAL)

- Could attract large number of local -

Plenty of local Indian & Chinese

people if executed correctly

restaurant/ take away.

- Outside catering

- Business will be in a danger without the

- The nearby Royal Infirmary Hospital, loyalty of the local people.

its staff and patients.

- Significant number of staffs from local

and Midlothian council offices, SQA
offices and from other agencies

In this era of technological development when people want everything on their finger
tips, the marketing strategy of this restaurant will be to go with the flow and make use
of it. This will include several Ads on most popular websites. Help people know about
3

this place easily by developing several Apps for Android and iPhone. Sharing
awareness about the restaurant with the help of various sites like Facebook, Twitter,
Trip advisor, Group On etc.
The products of the restaurant are delicious food based on Indian Cuisine prepared by
a team of highly experienced chef and cook, which is garnished properly with
appropriate herbs, spices and served elegantly. The food prepared for the takeaway are
slightly bigger in portion, which is packed beautifully and delivered to the customers
with right kinds of sauces and salads.

1.1 Positioning:
The aim of the restaurant is to provide a fine dining experience to every single
customer. Following the traditional style of cooking it focuses on being original and
not copying from other plenty of restaurants found in Edinburgh.

1.2 Points of Differentiation:

This is the only sit in Restaurant found at the heart of Gilmerton. The restaurant gives
special discount to a person who is unemployed from over 4 months. A special proof
of unemployment is required from Job Center Plus. This restaurant actively supports
many charity organizations and local sports club that includes Gilmerton Boxing
Club.

1.3 Pricing:
The importance of setting the right price cannot be underestimated. Pricing directly
affects the profit of a firm. Whether the price is too high or too low, pricing errors
destroy profits. (Smith, 2012)
Regarding Pricing strategy two things should never be done.
-

If we have a prestige offering, we should never give it away for free. There is
no quick way to destroy our ability to charge a high price than by giving it

away for free. Also we should be careful at offering it at discounts as it can

destroy the price integrity.
-

When discount is to be given, we should put items on sale, or promote free

offers but we should never be predictable (Mealey,2012)

Please check the Appendix A below for the pricing list.

1.4 Sales and Promotion:

Sales: The primary selling method is serving food with drinks inside the restaurant
and receiving the payments through cash or Debit Cards. Secondary method is from
the take-away. Other selling method is outside catering, online orders through
5PM.co.uk.
Promotion: The restaurant tends to promote itself through some of the famous
promotional websites such as Group on. Trip Advisor is another website which is
widely used and accepted for its reliability as it helps people to find the accurate result
trusted by many people. It will sponsor local sports and helps charity organizations as
a part of the promotion. Facebook, twitter, text guru is helpful in promotion.

Opening Time: Sun Thu =

Fri - Sat =

3:00 till 11:00PM

3:00 till 11:30 PM

2.0 Operational plan:

2.1 Personnel Plan:
The Restaurant is a small organisation with 13 employees that include 3 people at the
management level. Out of 10 people 1 of them are part timers 3 of them are waiters, 5
people will be used in the Kitchen and 1 person will be delivering the food and
purchasing stuffs for the restaurant. Two days off will be provided to each worker
once in a week, and that will be given either on Monday, Tuesday or Wednesday on
rotation basis. All the full time timers should go through a Probation period of 6

months, on joining. After 6 months they will be promoted to a permanent staff and
will be eligible to take paid holidays i.e. 36 days in a year.
The table below shows the payroll of the staffs for the first 3 years.
Job Title
Manager
Accountant/ service
Manager
Asst. manager
Waiters (*3)
Part timers

Year 1
11,000

Year 2
12,000

10,900

11,900

11,700

12,700

29,100

32,100

500

620

Drivers

6,500

Kitchen potter
Chef
Tandoori Chef
Middle Man
Total Amount

4,000
13,900
8,200
6,200

8300
5,500
14,700
8,700
6,700

102,000

113,160

2.2 Management Summary:

Here is a list of the management team and a brief introduction of each member.
Michael Clarke Michel Clarke has successfully completed Masters Degree in
Hospitality Management from the Napier University and has 18 years of experience in
this sector. He is the sole proprietor of the business.

Martin Khan He is the Assistant Manager and has 8 years of experience in the field.
His responsibility includes checking store rooms and making list of the all the items
needed. At arrival, he needs to ensure that everything is delivered and stored properly.
He, along with the director, will be doing market research, developing new strategies,
analysing and forecasting the business.
Laura Thomson Her role is to manage staffs, prepare monthly rota for all the staffs.
Making sure restaurants daily, weekly and monthly duties are timely covered.
She will be dealing with the customers complaints, feedback and sorting out the issues
effectively. She will take care of Payrolls, HMRC File and transactions, the data
related to the income, expenditure, gross profit, accounts and so on.

2.3 Location:
Business Location: Drum Street, Gilmerton, Southern part of Edinburgh.
The Drum Street is on the east of the Restaurant which links Midlothian to the City of
Edinburgh. There are some shops on the North and South and on the West lies
Candlemakers Park. This is a 40 seated restaurant, with 13 Tables with a gorgeous
looking bar at the opening. It consumes total space of 2,500 Sq. Ft. that includes
kitchen at the back and store at the extreme end. All the food production is done in the
kitchen whereas all the food items for the kitchen is stored in the store room. There is
a relatively small store room made for storing wines, soft drinks and all the items that
is required in the front. The first floor is the staff house which is a 5 Bedroom flat
where some of the full time workers live. It consists of one massive room designed
beautifully with four tables for the four people at management.

There are advantages and disadvantages of this location. The table shows below.

Advantages
On the High Street so it can be

Disadvantages
Less space for parking when its
7

easily found without hassle

-

Only 4.6 miles away from the

Edinburgh city centre, only 13

busy.
-

No attractions nearby, should

come specifically for dining.

minutes by car
-

Lothian Buses 3, 3A, 29, 7, 18 is

available and stops near the
restaurant.

2.4 Production/ Purchasing:

Production
As a part of the curry industry, the restaurant produces several dishes of Lamb,
Chicken, Beef, Prawn and Vegetables. The production process begins from cutting,
chopping food items into different size and shapes. Boiling, marinating, frying,
cooking into the clay oven, preparing different types of gravies or sauces for different
curries and several other activities are performed. These are basic preparation and it
should be completed before the dish is prepared. When the order enters into the
kitchen they take a bit of already prepared items and make the dish ready in a few
minutes. The dishes or items which are not prepared inside the restaurant are bought
from the suppliers and presented to the customers after doing the needful.
External agencies or websites such as Yelp.co.uk, tripadvsor.co.uk can also be useful
in determining the quality of the food and the service. Reviews given by the
customers, feedback and criticism received in the restaurant can contribute in
controlling the quality. All the managers actively take part in getting feedback from
the customers; any issues found will be sorted out as quickly as possible and any
serious issues will be discussed in the weekly meeting.

Purchasing
Restaurant needs raw materials and they all come from different suppliers.
Please check the table below:
8

Food Item
Lamb, Chicken, Beef
Sea Foods

Name of the supplier

George Bower

Address
75, Raeburn Place, EH4

Ruskim Seafoods Ltd.

1JG, 0131 332 3469

Benton, Newcastle Upon
Tyne, NE12 9SZ, 0191

Vegetables

Capital wholesalers

2701 904
15, salamander yards, EH6

Ice cream

Aroma Ice cream Co. Ltd.

7HB, 0131 553 6522

34,
Trafalgar Business
Centre, Barking, IG11 0JU

2.5 Legislative Considerations:

The restaurant is aware of the trading regulations and has completed many legislative
requirements such as Tax, Vat and Payroll, Legal Status and many Licenses as per
Business Gateway Scotland (2012).

3.0 Financial Plan:

Financial plan analyzing is one of the major parts in an organization. Its include
method of developing our business plan and monitoring the success of that plan.

3.1 Personal survival Budget:

It is the minimum amount we need to be able to draw out the business, as net salary,
just to maintain the current standard of living.
Personal Survival Budget = Expenditure Income (McGrail, 2008)
This part has 3 sections, Expenditure, Income and Assets.
Expenditure
Essential expenditure

Weekly

Monthly

Yearly

Rent/board/mortgage

500

6000

Council tax

150

1800

Power

100

1200

Insurances

30

360

Food/household
expenses
Clothing

100

1200

50

600

Christmas/birthday
presents
Car or travel costs

20

240

75

900

1025

12,300

Credit card repayments

Other loan repayments

Total required

Income
Income

Weekly

Monthly

Yearly

10

Basic wages/salary

1400

16,800

1400

16,800

Overtime
Child benefit
Interest from savings
Rent paid to you

Total income

Assets
Asset

Value of asset

House/flat
*State mortgage outstanding on
property as well as value of house/flat

Property:

Car
*State current value of vehicle
Savings

9,000

Mortgage outstanding:

3,000

Life insurance policies

Home contents

5,000

3.2 Start up Cost:

Without sufficient funding and resources it would be almost impossible to establish,
Operate and succeed in setting up a new business. Thats why start up cost is so
important. It is the total cost incurred before the business is up and running. Ignoring the
11

start up cost is one of the primary reasons why many small businesses fail within their
first year of operation (Kubba, 2010)

Item/area

Amount paid

VAT paid

Total cost

Property costs
Building work

3,000

600

3,600

Decoration

2,000

400

2,400

Fixtures and fittings

6,000

1,200

7,200

Signage

1,000

200

1,200

Sub total

12,000

2,400

14,400

3,000

0.00

3,000

3,000

0.00

3,000

500

100

600

Advertising/promotion 2,000

400

2,400

Business stationary

600

120

720

Sub-total

3,100

620

3,720

Miscellaneous
costs
Sundry expenses

200

40

240

18,300

3,060

21,360

Equipment

*Initial stock
Listed on back of this
form
Totals carried forward
to here
Sub-total

Marketing costs
Research costs

Total start-up costs

for business

12

3.3 Fixed and Variable cost:

Fixed cost is something which remains constant with respect to time and
variable cost keeps changing with time and is affected by other factors.
Please check below Appendix B for details.

3.4 Break Even Point:

It is a calculation of the sales volume in unit, required to just cover the costs. It is a
known fact that a higher sales volume is profitable than a lower sales volume. It
focuses on the relationship between fixed cost, variable cost and selling price.

Sales = Fixed Costs + Variable Costs

Cost or
revenue

Total revenue
it
Prof

Total costs
Break-even point

Loss

Fixed costs

A
Output volume

13

3.5 Sales Forecasting and seasonal Adjustment:

Forecasting is the art of estimating the future market demands anticipating what
buyers are likely under a given of condition. (Kotler and Armstrong, 2005)
There are three steps in this worksheet.
The table below shows each month of the year in relation to the business analyzing
whether every month will be busy in terms of the sales, or average or very quiet.

Month
April

Expected
level
business (2012)
20,000

May

21,000

June

22,000

July

25,000

August

25,000

September

27,000

October

30,000

November

35,000

of

14

December

35,000

January

32,000

February

35,000

March

35,000

Step 2 the next step is to estimate the total potential sales in a month.

Average
sale per
customer
()
20

Frequency
of visits
per month
2

Number of
potential
customers
per month
1,000

Total
potential
sales in a
month
40,000

Step 3 (Seasonal Adjustment)

As we know from step 1 that not every month is a busy one in terms of the trade. Now
we will make some seasonal adjustment to lift the business when its not doing very
good.

Month
April

Level of
business
A

Expected
income
24,000

May

24,000

June

40,000

July

40,000

August

24,000

September

14,000

15

October

40,000

November

40,000

December

40,000

January

24,000

February

24,000

March

40,000

Here, A= 60% of the figure, B= 100% of the sales figure calculated for a month, Q=
35% of the busy figure.

Potential Income year 2 (2013)

Month
April

Level of
business
A

Expected
income
26,300

May

27,400

June

41,000

July

40,700

August

25,800

September

25,100

October

42,200

November

42,600
16

December

44,000

January

25,800

February

25,500

March

40,100

3.6 CASH FLOW YEAR 2012:

Startup
costs
Sales
Capital employed
Total income

Stock/materials purchased
Staff wages
Own drawings
Rent
Rates
Insurance
Power
Telephone
Advertising

25,000
25,000

3,000

Apr

May

Jun

Jul

Aug

24000

24000

40000

40000

24000

24000

24000

40000

40000

24000

8000
8500
1300
1200
800
250
500
150
100

8000
8500
1300
1200
800
250
500
150
100

8000
8500
1500
1200
800
250
500
150
100

8000
8500
1500
1200
800
250
500
150
100

8000
8500
2000
1200
800
250
500
150
100

17

Accountant/solicitor fees
Travelling
Bank Chages/ Interest
payments
Loan repayments
Capital expenditure

18,360

Total costs
Income less costs

Add bank balance start of

month

Cumulative bank balance at

end of month

300
50

300
50

300
50

300
50

300
50

50
250

50
250

50
250

50
250

50
250

21,360

21,450

21,450

21,650

21,650

22,150

3,640

2,550

2,550

18,350

18,350

1,850

3,640

6,190

8,740

27,090

45,440

3,640

6,190

8,740

27,090

45,440

47,290

CASH FLOW YEAR 2012 CONTINUED...

Sales
Capital employed
Total income
Stock/materials purchased
Staff wages
Own drawings
Rent
Rates
Insurance
Power
Telephone
Advertising
Accountant/solicitor fees
Travelling
Bank Charges/ Interest payments

Sep

Oct

Nov

Dec

Jan

Feb

Mar

14000

40000

40000

40000

24000

24000

40000

14000

40000

40000

40000

24000

24000

40000

8000
8500
2000
1200
800
250
500
150
100
300
50
50

8000
8500
2000
1200
800
250
500
150
100
300
50
50

8000
8500
2000
1200
800
250
500
150
100
300
50
50

8000
8500
3000
1200
800
250
500
150
100
300
50
50

8000
8500
3000
1200
800
250
500
150
100
300
50
50

8000
8500
3000
1200
800
250
500
150
100
300
50
50

8000
8500
3400
1200
800
250
500
150
100
300
50
50

18

Loan repayments
Capital expenditure
Total costs

250

250

250

250

250

250

250

22,150

22,150

22,150

23,150

23,150

23,150

23,550

Income less costs

Add bank balance start of month
Cumulative bank balance at end of month

-8,150
47,290
39,140

17,850
39,140
56,990

17,850
56,990
74,840

16,850
74,840
91,690

850
91,690
92,540

850
92,540
93,390

16,450
93,390
109,840

3.7 CASH FLOW YEAR 2nd (2013):

Startup
cost
s

Sales
Capital employed
Total income

Stock/materials purchased
Staff wages

3000
8,500

Apr

May

Jun

Jul

Aug

Sep

26,3
00

27,4
00

41,0
00

40,7
00

25,8
00

25,1
00

26,3
00

27,4
00

41,0
00

40,7
00

25,8
00

25,1
00

8200
9430

8200
9430

8200
9430

8200
9430

8200
9430

8200
9430

19

Own drawings
Rent
Rates
Insurance
Power
Telephone
Advertising

1400
1200
800
250
500
150
100

1400
1300
880
260
524
155
150

1550
1300
880
260
524
155
150

1500
1300
880
260
524
155
150

1600
1300
880
260
524
155
150

1625
1300
880
260
524
155
150

1300
1300
880
260
524
155
150

300
50

320
50

320
50

320
50

320
50

320
50

320
50

50
250

55
220

55
237

55
268

55
198

55
224

55
288

22944

23111

23092

23122

23173

22912

3356

4289

17908

17578

2627

2188

Add bank balance start of

month

109,840

113,196

117,485

135,393

152,971

155,598

Cumulative bank balance at

end of month

113,196

117,485

135,393

152,971

155,598

157,786

Accountant/solicitor fees
Travelling
Bank Charges/ Interest
payments
loan repayments
Capital expenditure
Total costs

Income less costs

CASH FLOW YEAR 2013, CONTINUED

Sales
Capital employed
Total income

Stock/materials purchased
Staff wages

Oct

Nov

Dec

Jan

Feb

Mar

42,2
00

42,6
00

44,0
00

25,8
00

25,5
00

40,1
00

42200

42600

44000

25800

25500

40100

8200
9430

8200
9430

8200
9430

8200
9430

8200
9430

8200
9430

20

Own drawings
Rent
Rates
Insurance
Power
Telephone
Advertising

1455
1300
880
260
524
155
150

1800
1300
880
260
524
155
150

2200
1300
880
260
524
155
150

2300
1300
880
260
524
155
150

1600
1300
880
260
524
155
150

1400
1300
880
260
524
155
150

320
50

320
50

320
50

320
50

320
50

320
50

55
233

55
305

55
237

55
199

55
268

55
289

Total costs

23012

23429

23761

23823

23192

23013

Income less costs

19188

19171

20239

1977

2308

17087

Add bank balance start of

month

157,786

176,974

196,145

216,384

218,361

220,669

Cumulative bank balance at

end of month

176,974

196,145

216,384

218,361

220,669

237,756

Accountant/solicitor fees
Travelling
Bank Charges/ Interest
payments
loan repayments
Capital expenditure

3.8 Profit and Loss Account for the year 1(2012) & year 2(2013):
Using the cash flow figures for year 1 and year 2, a profit and loss account has been
created which shows the profit levels for both the years.
Profit and Loss Account
For the year 2012

Sales

374,000

Less cost of sales

99,000

Gross profit

275,000

21

Expenses:
Rent/mortgage

14,400

Rates

9,600

Power

6,000

Wages/salaries

102,000

Insurance

3,000

Bank charges

600

Telephone

1,800

Advertising

1,200

Sundry expenses / initial advertising

3,960

Total expenses

142,560

Net profit

132,440

Gross profit margin = 73.5%

Net profit margin = 35.4%

For the year 2013

Sales

406,500

Less cost of sales

101,400

Gross profit

305,100

Expenses:
Rent/mortgage

15,600

Rates

10,560

Power

6288

Wages/salaries

113160

22

Insurance

3120

Bank charges

660

Telephone

1860

Advertising

1800

Sundry expenses

4200

Total expenses

157,248

Net profit

147,852

Gross profit margin = 75.05%

Net profit margin = 36.37%

4.0 Conclusion:
Dear Stella,
I went through your business proposal and found it very convincing. As I have spent
many years at Gilmerton so this is one of the places which I would like to see
growing. I have always been passionate towards the Restaurant Industry and this one
is at my favorite place in Scotland. Your marketing strategy is new and based on
current trend which is very interesting. Your operating and financial plans shows that
we will definitely make a profit of this business and it will keep increasing as time
passes by.
At the end I would like to confirm my partnership with an investment of 200,000
in opening a fine dining Indian Restaurant at the heart of Gilmerton.
I am sure well have a great time working together.

23

Looking for your positive response

Kind Regards,
XXX

5.0 References:
Business

Gateway,

(2012).

Business

Gateway,

[online],

Available

from:

http://www.business.scotland.gov.uk/bdotg/action/layer?
site=202&topicId=5001004301 [Accessed: 06 May 2012]

Chapman,

A.,

(2012).

SWOT

Analysis,

[online],

Available

from:

http://www.businessballs.com/swotanalysisfreetemplate.htm#swot-analysis-matrix
[Accessed: 05 May 2012]
Kotler, P. and Armstrong, G., (2005). Marketing: An Introduction, 7th edition, N.J.:
Pearson Prentice Hall
Kubba, S., (2012, p.444). Green construction Project Management and cost
Oversight, Elsevier Inc

24

McGrail, A., (2008, p.86). The essential business guide, 3rd edition, Essential Business
Mealey, L., (2012). How to price your restaurant menu, [online], Available from:
http://restaurants.about.com/od /menu/a/foodcost.htm [Accessed: 07 May 2012]
Smith, T. J., (2012). Pricing Strategy, Setting price levels, Managing Price Discounts
& Establishing Price Structures, South- Western. Cengage Learning

Appendix A
Food Item
Vegetable Starter
Non Vegetable Starter
Beef dishes
Classical dishes
Specialties
Fish Dishes
Tandoor Dishes
Nan
Nan with Flavors
Rice
Side Dishes
Vegetable Main Course

Prices (In)
3.60
3.95
9.95
7.50
8.25
8.25
8.25
2.25
2.50
2.50
3.50
6.25

Prices(Takeaway)
2.95
3.50
8.95
6.25
7.95
7.25
7.25
2.10
2.25
2.25
3.25
5.75

All prices are in GBP.

Appendix B

25

Business costs

Monthly

Yearly

Stock/materials purchased

Fixed or
variable cost
F

8,000

96,000

Employees wages/salaries

8,500

102,000

Own drawings

1,500

26,000

Rent/lease/mortgage

1,200

14,400

Rates

800

9,600

Power

500

6,000

Telephone

150

1,800

Advertising

100

1,200

Bank charges/interest
payments

50

600

Loan repayments

250

3,000

Travelling expenses

50

600

Insurance

250

3,000

Solicitor/accountant fees

300

3,600

21,650

267,800

Total business costs

26

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