Marketing Plan of Green

Olive Restaurant

For Assignment or Dissertation Help, Please

Contact:
Muhammad Sajid Saeed
+44 141 4045137
Email:
todrsaeed@gmail.com
Skype ID: tosajidsaeed

Table of Contents

1. Introduction.............................................................................................2
2. Situational analysis.................................................................................2
2.1 Market needs and trends....................................................................2
2.2 SWOT Analysis....................................................................................2
2.3 Competition based on product/service offering..................................3
3. Marketing strategy..................................................................................4
3.1 Marketing research.............................................................................4
3.2 Market Segments...............................................................................5
3.3 Targeting strategy..............................................................................6
3.4 Positioning Strategy...........................................................................6
4. Marketing programme.............................................................................7
4.1 Marketing mix.....................................................................................7
5. Evaluation and control.............................................................................7
5.1 Breakeven analysis.............................................................................7
5.2 Sales forecast.....................................................................................8
5.3 Expense forecast................................................................................9
References...................................................................................................9

1. Introduction
Green Olive is a global restaurant located in the UK, USA, and some
European and Asian countries. The vibrant and relaxed Green Olive
restaurant provides a variety of creative and fresh food to people within
easily affordable price. The restaurant is known as using fresh, local and
seasonal generated products and foods all year. The restaurant is also
located in a small area of Oregon, USA called Eugene and as a marketing
manager the author is required to write a marketing plan for it for the
implementation of the marketing strategy. Therefore, this report covers
various aspects of a marketing plan including: situational analysis,
marketing

strategy

and

objectives,

segmentation

targeting

and

positioning elements, marketing programme stating marketing mix, and

evaluation and control.

2. Situational analysis
According to Clarke (2005), situational analysis is a collection of ways that
management use to analyse the internal and external environment of an
organisation to know its business environment, customers, competitors,
and market needs etc.
Green Olive has received a considerable success in the existing markets
and wish to continue its successful journey with further growth in
profitability. The restaurant is offering a range of fresh and delightful food
for families and individuals with additional desserts and salads. The
restaurant uses cheeses, premium meats, vegetables.

2.1 Market needs and trends

The basic requirement of the customers is the food quality followed by
health consciousness. The community is health conscious and prefers
clean and tidy environment and also like to enjoy well presented and
attributed food. Additionally, the community is more demanding in
selecting from a variety of foods. By keeping this in mind, Green Olive is
offering its customers with a range of high-quality dishes with qualitybased ingredients and clean environment. By following the market trends
and fulfilling the needs of the customers, Green Olive looks for providing
several benefits such as selection, accessibility, customer service, and
competitive pricing (Sirgy, 2001).
2

2.2 SWOT Analysis

SWOT analysis is the study of identifying an organisations strengths,
weaknesses in the internal environmental and opportunities and threats in
the external environment (Pahl and Richter, 2009). Table 1 contains the
SWOT analysis of Green Olive in order to assess its internal and external
environment.
Table 1: SWOT analysis of Green Olive

Favourable
Unfavourable
Strengths
Weaknesses
o Strong vendor relationships to o Limited brand awareness and

Internal environment

get

high-quality

food

marketing budget
o Lacks in brand equity
ingredients
o Highly trained and brilliant o Struggle to be competitive to
gain more market share in
staff
o Clean,
bright,
and
tidy
the busy area of its location
environment
o Excellent urban location with
malls,

universities,

schools

and offices around

o Loyal, regular and repeated
customers
o Exceed competitors offerings
in terms of price, presentation

External environment

and service offerings

Opportunities
o Market growth with a sound o Local
percentage

with

target

existing restaurants that have

community which is unaware

good repute in the market

of

the

of

Threats
competition

existence

of

Green

Olive
o Sales growth opportunities
o Competent
management
capable

areas

resultants

in

Eugene

other surroundings
slump
controlling o Economic

of

overhead costs
o Establishing subsidiaries
other

and have superior offerings

o The chain of Gourmet Pasta

and

and
which

restricts customers to spend

in

towns

in

Oregon

money on eat outs

2.3 Competition based on product/service offering

Green Olive offers distinct food items which make it different and finer to
its rivals. Customers enjoy the food freshness and quality in each bite.
Some key distinctive features of Green Olive products will be:

Imported cheese
Fresh and organic vegetables
Pasta made with Italian semolina flour
Organic meat with a variety of top-shelf
Other fresh ingredients

The restaurant not only relies on the product but also prefers the
importance of service, training of staff and hiring intellectual individuals
with advanced skills of customer service. Green Olive pride itself in
providing excellent customer service within the restaurant and this is
achieved by arranging several training programmes for the staff and only
employing skilled and experienced personnel. The key to success features
of the restaurant include: its location, clean environment, sitting
arrangement of 35 to 45 people at a time, facility to carry out food,
cooperating staff, special morning evening and night customers, car
parking facility around the corner, and average income level of the
community.
A critical issue associated with Green Olive is its constant modest fiscal
approach. It would be crucial for the restaurant to expand reasonably
within a limited marketing and expansion budget. However, it is very
necessary to build brand awareness to inform customers about its
existence in the market or otherwise the restaurant will lose its customers
because of tight competition around.

3. Marketing strategy
Baker (2008) referred to the definition of David Aaker whole defined
marketing strategy as a process that can allow an organisation to
concentrate its resources on the optimal opportunities with the goals of
increasing sales and achieving a sustainable competitive advantage (p.
3).
The mission of Olive Greens marketing strategy is to offer customers the
premium food and excellent customer services with exceptional dining
experience. The restaurant aims to achieve substantial growth in the
4

customer base and retaining them for a longer period. Specific marketing
and financial objectives are provided in table 2.
Marketing objectives
Preserve
growth

monthly

Produce
minimise
$42,000 per month

Financial objectives

positive To attain a double-figure growth

in next year
sales

of To minimise the overheads per

outlet by achieving a disciplined
growth strategy

Realise a strategy of growth of To constantly reduce the variable

one outlet each year
costs linked with the production
of food
Table 2: Marketing and financial objectives of Green Olive

3.1 Marketing research

Before establishing a marketing plan/strategy, market research provides
clear insights about the market (Hague et al. 2004). During the initial
steps of the development of a marketing plan, many focus groups will be
arranged to obtain insights of a range of patrons of restaurants. In this
way, Green Olive will get enough information about the market and this
will help the restaurant to making decisions. In this regard the suggestion
card system and local community Facebook page will allow the restaurant
to see and address criticism and improve service offerings (Barker et al.
2012).
Competitive analysis would be another source of market research. Green
Olive will continuously patronise restaurants in surroundings for two
possible causes. First, to conduct competitor analysis and second, to
establish relationships with restaurant owners as they sometimes
informally support each other in case of emergency or other incidents.

3.2 Market Segments

The target market can be divided into three prominent segments including
individuals, families & young couples, and take outs. Individuals refer to
people friends that enjoy food alone or with friends. Families segment
defines a group of people who like to eat with families or relatives, and
finally, take out are the people who take the packed food with them and
enjoy at home or any other location.

Green Olive has adequate information about the target market. The
management is aware of the common traits of its most loyal and prized
customers. Green Olive will use this information to better know their
existing and potential customers and their needs and ways to effectively
communicate with them. The profile of target customers of Green Olive is
based on three factors including demographic variables, geographical
variables, and behavioural factors.
The demographic variables include males and female within the range of
ages between 25 and 50 and according to the Eugene Chamber of
Commerce

(2013)

this

segment

is

nearly

63%.

In

addition,

the

employment rate is higher (93.1%) with average annual income $38,635.

Many companies and educational institutes are located near restaurant.
Restaurants geographic target is Eugene city that has the total population
of 159,580 where 88% community is white and 7.4% is Hispanic. It is
estimated that 15 mile geographical areas is required to serve the
community and based on age segment of 63%, the target population is
approximately 100,500 (Eugene Chamber of Commerce, 2013).
With regards to behavioural factors, the restaurant will target the
community that prefers to eat in high quality restaurants many times in a
weak. Like a high profile community, they like to take pleasure of quality
food with no hassle of making it themselves.

3.3 Targeting strategy

The key aim of Green Olives targeting strategy is to target all segments
by effectively communicating with them within a limited budget and
gaining maximum market share in next five years. The market target
strategy aims will aim to develop awareness about products and services
and enhance the customer base, and retaining customers to build
customer loyalty and referrals (Proctor, 2013).
With

limited

advertising

budget,

simple

but

comprehensive

advertisement programme is designed for the Green Olive. The message

that the restaurant will deliver to potential audience is that Green Olive
offers fresh, distinctive, delicious, and a variety of health conscious food
within the reasonable price in the area of Eugene. The restaurant will
communicate this message using a range of advertising methods
including: banner ads, direct mail, personal relations, referrals, and social
6

media. The direct mail campaign will directly address particular existing or
potential customers to attract them to a new variety available in
restaurant. The banner ads will be inserted in the local news papers and
magazines. Register Guard is the well-liked newspaper in Eugene areas
(registerguard.com). In addition, personal relations and referrals will be
the key to success of the restaurant. The PR campaign will address
influence personal relations with customers from business point of view.
Many success stories are associated with Social media advertisement in
the USA and rest of the world. By keeping this in mind, social media
networks will be used to spread message and informing the community
through the community pages on Facebook and Twitter. Facebook will be
given more importance in communicating the message. According to
Carter and Levy (2012), Facebook marketing provides several benefits and
it strongly supports the market targeting strategy of any organisation. So
Green Olive will prefer Facebook over other social media tools in order to
target the audience by spreading marketing message. In addition, the
restaurant will also get an opportunity to improve their products and
services from the feedback and negative comments on communitys
Facebook page (Carter and Levy, 2012).

3.4 Positioning Strategy

Green Olive will adopt price and product based positioning strategy. This
means that the restaurant will capture the minds of the customers on the
basis of its distinctive food menu in reasonable price. The customers who
prefer high-quality food will easily recognise the value of offerings within
the set prices. Green Olive will attain competitive advantage on the basis
of products as well as services. Foods quality, freshness, taste, and price
will help the restaurant to grab position in the minds of the customers and
on top of that the customer service will give excellent dining time to the
customers. All employees will receive special training in this regard. Based
on a combination of price, product and service, it is expected that the
restaurant will excel in the competition.

4. Marketing programme
4.1 Marketing mix
Green Olives marketing mix is composed of product, price, place and
promotion. The food products offered by the restaurant are according to
7

the taste, needs and trends of the local community. Currently, the
restaurant is offering

a variety of dishes including Taramosalata,

Houmous, Potato and Tuna Salad, Mild Chilli, Dolmades, Marinated Olives,
Greek Salad, Fasolia Gigantes, Pastourma, Chicken Souvlaki, Pastitsio,
Pitta bread and Thick Fried Potatoes. In addition, the restaurant will serve
a variety of beverages, desserts and salads.
The pricing scheme of Green Olive will be set by keeping in mind the cost
of the food products. The prices of all food items will be relatively low as
compared to competitors. It is assumed that the prices are set by keeping
in mind 45% total cost of each food item.
The placement is the third and important element of marketing mix which
refers to the distribution of food through take out idea. This means that
customers will be able to call Green Olive for the home delivery or they
can visit the restaurant and take the food with them to enjoy at home or
anywhere else.
As mentioned in the positioning strategy section that Green Olive will use
PR and social media platforms to promote its products and services. In
addition, the banner ads will be inserted in the Register Guard paper.

5. Evaluation and control

5.1 Breakeven analysis
In this section, the breakeven analysis, sales forecast and expense
forecast are made for Green Olive restaurant. It is indicated in the
breakeven analysis chart (see figure 1) that monthly $42,000 will be
required to reach breakeven point. Table 3 demonstrates the breakeven
calculation.

Monthly breakeven Point

40000
30000
20000
10000
0
6000
-10000

12000

18000

24000

30000

36000

42000

-20000
-30000
-40000

Figure 1: Monthly breakeven point

Monthly

breakeven

revenue
Assumptions:
Percentage
of

$23,040

average

variable cost
Estimated monthly fixed cost

45%
$22,000

Table 3: breakeven analysis

5.2 Sales forecast

Table 4 presents the estimated sales forecast of the Green Olive for 2015,
2016 and 2017
2015

2016
2017
Sales ($)
Individuals
103710
262527
327424
Families
150304
380474
474528
Total sales
254014
643001
801952
Direct cost of sales ($)
Individuals
46669
118137
147341
Families
67637
171213
213538
Subtotal direct cost of 114306
289350
360879
sales
Table 4: Sales forecast

5.3 Expense forecast

Marketing expenditures are estimated in table 5.
2015
Direct mail
$5267
Banner ads
$11704
Other
$7022
Total sales & marketing $23993

2016
$5605
$12455
$7473
$25533

2017
$54421
$12047
$7228
$24696

expense
Sales percentage

3.97%

3.08%

9.45%

Table 5: Marketing expense budget

References
Baker, M. (2008). The Strategic Marketing Plan Audit. (2nd Ed.),
Cambridge Strategy Publications Limited
Barker, M., Barker, D.I., Bormann, N. and Neher, K. (2012). Social Media
Marketing: A Strategic Approach. Cengage Learning
Carter, B. and Levy, J. (2012). Facebook Marketing: Leveraging Facebook's
Features for Your Marketing Campaigns. Que Publishing
Clarke, A. (2005). Situational analysis: grounded theory after the
postmodern turn. Sage Publications
Eugene Chamber of Commerce (2013). Facts and figures community
profile.

[online].

Available

at:

http://www.eugenechamber.com/community/facts_figures.aspx [Accessed:
02 July 2014]
Hague, P., Hague, N. and Morgan, C-A. (2004). Market Research in
Practice. Kogan Page Publishers
Pahl, N. and Richter, A. (2009). Swot Analysis - Idea, Methodology and a
Practical Approach. BoD Books on Demand
Proctor, T. (2013). Strategic marketing: an introduction. Routledge
Sirgy, M.J. (2001). Handbook of Quality-of-Life Research: An Ethical
Marketing Perspective. Norwell, USA: Springer Science & Business Media
10