Setting SMART objectives Essay

Alley Domino 13 CSS III In this part of the coursework I will investigate on a small business in a local area called Needed Grill Restaurant. For this coursework I will be investigating on their marketing strategies, marketing tactics target market, aims and objectives, how the business is meeting different customer needs. I will be recommending a marketing strategy for Need&s business activity. Introduction: Needed Grill restaurant is a sole trader business which is owned and controlled by Mr. All and it existed for nearly 20 years.

Before starting his own business Mr. All was irking into Tab’s restaurant as a Chef for about 16 years and afterwards he has decided to launch his own restaurant. It is situated in Whitecap (figure 1) and is one among the famous restaurants in London which attracts a lot of customers because of the delicious food, great atmosphere, good service and economical prices. Moreover, it is a hall restaurant that serves both Indian and Pakistani Punjabi food together (figure 2). On their website they have mentioned that they use fresh spices In order to make the starters, mains and desserts delicious but Its menus are similar as Tab’s one’s.

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Mr.. All has done his best In order to achieve 100% customer satisfaction by offering friendly and professional service at all time and he has won the customer Excellence award In 2010. The restaurant Is now as successful as they had been nominated for Ethical Good Food award 2009 Instituted by customer associations who alms are to recognized local food businesses and encourage their ethical conduct. Even Needless Is not as successful as Tab’s It provides catering for parties (figure 3) or for other occasions and can welcome up to 200 people which they offer a friendly environment with good food and excellent customer service.

They also give freebies to people who are organizing parties in this way they can food because it’s similar to them. For example, they may do all the decorations for a birthday party. However, the competitors of Needle’s are restaurants which are situated in the same area of Needle’s Grill and they are Tab’s Restaurant and Lahore kebab’s house. Furthermore, in order to attract a range of people, every Tuesday night Needle’s has a night buffet which is offered at a reasonable price which is E. Needle’s Grill restaurant Aims: An aim is where the business wants to go in the future, that is its goals.

It is a statement of purpose, e. G. Needed want to have branches all Tower Hamlets. Business objectives are a list of goals and directions that a business owner sets down in writing for a business to follow. It is an essential outline of where the company wants to go and how it intends to get there. It is important for every business to have goals else the business will fail. For instance, Needed Restaurant would want to achieve E 20,000 at the end of January’s. Setting SMART objectives allows you to understand exactly where your role fits within the business and what your responsibilities are.

You gain a better understanding of the value and contributions you bring to the business. A firm must be careful when setting objectives to ensure that they can be met. It is a good practice for a firm to set up SMART objectives: S – Specific – objectives are aimed at what the business does and should specify what the business wants to achieve, e. G. Needed Restaurant would be making an increase of 30% of profit in the end of 2012. M – Measurable – the business can put a value to the objective and know when it has been achieved, e. G.

E,OHO sales in the next half year of trading. A -Achievable- is there a realistic path to achieve the objectives you set R – Realistic – the objective should be challenging, but it should also be able to be achieved with the resources available, knowledge and time. T- Time specific – when do you want to achieve the set of objectives the business has set? For example, it has to be achieved by the end of the year. Aims and objectives for Needle’s Restaurant: Aims: Survival: Survival is an aim set by small businesses when they are Just setting up.

As Needle’s is a sole trader business it would necessary to set objectives for customer’s distraction, and effectiveness in handling customer orders within a given time The key to any successful business rests on the ability to keep the money coming, to offset expenses. However, many small businesses fall into the trap of excessive loans for instance by doing costly advertising campaign. Besides many small businesses owners find that they are not selling a unique product or service in their community for example Needle’s Restaurant has a lot of competitors in Whitecap such Tabby restaurant and Lahore Grill Hotel.

If Needle’s competitors are offering accounts on some of their products they should be launching similar campaign as them. As Needle’s Grill restaurant has been nominated for Ethical Good food award 2009 they should maintain excellent services for instance, by introducing new menus which would attract more customers. Needle’s can cut back on these expenses for example, to cut back on the distribution their leaflets from monthly to weekly. SMART Objective: the objective Needle’s Grill can set is to survive through recession and to ask employee and customer feedback by the end of 2012.

Profit minimization: Profit is the excess of income over expenses. Profit minimization is when a business tries to make the most profit possible and it is the main aim of all owners and shareholders. Profit minimization will therefore be important for Needle’s Grill Restaurant as it is necessary for the survival of the business and for the growth of the business. For example, when Needed will make profits it would be able to compete with Tab’s and other competitors located in White chapel. If a business faces tough competition, the only way the business can survive is to pay attention to revenues and costs.

Moreover, Needed can use the extra money to pay for its fixed sots which would be for instance rent and wages. Fixed cost is a cost that does not vary depending on production or sales levels. SMART Objective: Needle’s can reduce overheads cost by the end of December. Growth: Identifying opportunities for growth becomes a priority to ensure the enterprise’s sustainability. Needed Grill restaurant can therefore measure growth by profits, sales and staff numbers. A balanced way of measuring growth is a combination of sales and profits.

Even if Needle’s is happy with its current performance, it is important for the business to keep looking for ways to develop. If Needle’s don’t, it is taking the risk o allow its competitors the room to grow, which could seriously weaken its position. One way to promote the business is through local newspapers and by distributing leaflets to people in the same locality. For example, Needle’s can advertise what type of menus they offer and what kind of atmosphere do they provide in East End Life which is Tower Hamlets local newspapers distributed free on every Sunday.

On the other hand, Needle’s can also try to open more branches in Tower Hamlets which would make them financially better. The benefits of growth would be that Needs would be able to enjoy economies of scale. This means that the restaurant would have lower unit costs because of its large size. They can buy raw materials cheaply in bulk. For instance, as larger restaurant Needle’s can sell its main dishes at E. 50 while it costs its small rivals an average of E, then the larger restaurant has a E. 50 per unit cost advantage. Larger businesses can charge lower prices.

The drawbacks of growth would be risky as there is always the chance that any expansion plans can fail and result in losses rather than profit. Owners are then worse off than before the growth of the business. SMART Objective: to cut on doing advertising campaign takeover is anyone who has interest in a business. They include owners, managers, workers, customers and suppliers and the community. There are two types of stakeholders: Internal stakeholders External stakeholders Internal stakeholders are groups within the business.

For example, the internal stakeholders of Needle’s would be the owner. Mr. All would be interested in how much profit the business makes. Secondly, some workers would want to earn more money such as the Chef. External stakeholders are groups outside the business. For example, customers are external stakeholders as they would want Needle’s to reduce quality products at reasonable prices. In a small business such as Needle’s, the three important stakeholders would include the owners, staff and customers. Owners Owners have a big hand in how the aims of the business are decided.

For example, Mr. All who is the owner of Needle’s restaurant will decide the day-to-day affairs of the business. He can also aim to make more sales as a top priority rather than more profits. Customers A customer is the person who will be buying goods or services at Needle’s restaurant. Customers are one of organizations stakeholders. No organization can survive without customers. Customers are one of the stakeholders but unlike other stakeholders they bring in revenue which is the life blood of every business. Businesses that ignore the concern of customers will find themselves losing sales to rivals.

For instance, if customers will not be satisfied with the services provided at Needle’s restaurant they will therefore start going to rivals such as Tab’s restaurant and in that way they will start losing sales. Staff Few stakeholders are as vital in a business as its workers. Staff has a big interest in the success of Needle’s. Employees are vital stakeholders as they help Needle’s to achieve its aims and objectives. SMART Objective: to increase the number of customers by the end of the year 2012. Maximizing sales revenue: On way which Needle’s can maximize sales revenue will be by looking at its cash flow.

They will have an idea of how much money is coming into the business and how much money is going out of the business. The cash flow will determine problems with the business liquidity. A business can also fail because of shortage of cash while being profitable, for that reason before Needle’s can market the restaurant they need to have a look at their cash flow. The restaurant can therefore advertise the business in local newspapers and posters in order to attract more neighboring customers. They can also offer discounts on their meals for example, they can offer reductions of 5% on their main dishes in order to have customer loyalty.

Loyal customers is all about attracting the right customer who would buy often at Needle’s and bring in more customers in order to increase their sales hence profits. But Needle’s cannot increase their prices as customers will shift to competitors such as Tab’s and they would not make profits and on the other hand, they cannot crease the prices as well because this would results too loss. SMART Objective: to increase sales revenue via customer loyalty by the end of December 2013. Marketing objectives are targets that the marketing department wants to achieve. These objectives help businesses achieve their overall objectives.

Marketing objectives are about products, sales and marketing only. Product mix The product that Needle’s are offering is the food. The restaurant is well-known for its quality food. Customers will be more willing to visit as in 2009 they have been nominated for the Ethical Good Food Awards. The owner, Mr. All is offering Indian and Pakistani Punjabi Food. The place is the restaurant. The food can be eaten in a modern, air conditioned and relaxing atmosphere. They would need the abilities to be able to control and handle extra pressure when the restaurant gets busy. For instance, the restaurant will be busy during lunch and dinner time.

The staffs need to be hard working and good with handling and communicating with customers. The price is how much it costs. For example, if a person is having the Needle’s special starters, main dishes and desserts. Therefore the food needs to be of high quality in order to satisfy the customer hence he would be willing to pay for it. Promotion will include how Needle’s restaurant markets its food. The restaurant may be full on Tuesday evenings as Needle’s has a night buffet which is offered at a reasonable price which is E. Market segmentation Market segmentation is the first of three important steps in developing marketing strategy.

Segmentation groups customers with similar needs and responses; targeting determines which segments to serve; positioning is about how the product should compete with others in the market. The objectives of market segmentation are ore precise to meet the needs of selected customers in a more profitable way. Needle’s may be able to boost up sales and cut advertising costs if they target customers with the same pattern of purchase. For example, as Tower Hamlets is a multi cultural diversity, Needle’s provide a variety of food which caters the needs of different type of customers.

For instance, as they provide Hall food they are targeting a market for Muslims customers. Increasing profit is the major objectives of Needle’s restaurant. Additionally, by targeting the most profitable segments Needle’s is able to reduce its marketing costs. By better meeting customer needs through segments Needle’s is able to increase its market share. Product positioning Positioning is the process by which marketers try to create an image or identity in the minds of their target market for its products. The product positioning of Needle’s can be the appetizer.

Starters are increasing in numbers but they are not frequently the reason a customer visits Needle’s. There are many times when a consumer will go to a restaurant to have a drink or a dessert but mostly a person visits a restaurant will position their items. Moreover, if they have well-trained and skilled waiters they an put the appetizer and they will get sales. Needle’s need to give clear instructions to its staff for example, which items it, needs to make more sales. They can also motivate their staff with offers for instance, giving them free lunch.

Another way to increase the sales of starters, Needle’s can position the appetizer on the cover of the menu and the waiters need to point it out to every customer. Increasing the margin Usually, people eat out because they want something new that is not easily available at home. Hence promoting delicious foods is important for Needle’s to increase profit. Needle’s can try to identify which menu is the most selling one. Moreover, Needle’s can increase its profits by increasing the number of customer and get their customers to come back more often.

Needle’s should try to including an online booking page and this would help customers to book the table they want like Tab’s do. To calculate profit Needle’s need to add production, retail and VAT costs and deduct it from its purchasing price. Marketing strategy: Making and using a marketing strategy has a positive impact on Needle’s success. This is because small businesses that employ a marketing strategy tend to focus on heir customers and markets, put together their marketing responses and work out in advance where their profits will come from.

The business had an award in 2009 which was the Ethical Good Food and customer Excellence award in 2010. Their target markets are city workers and University Students. During lunch time they receive a lot of working people who works in the area of Whitecap for instance; staffs from Mulberry School can go and have lunch at Needle’s. But on the other hand, small businesses do not usually carry out marketing strategy because of the limited resources. They also need to look at their cash flow in order to know how much money is coming into the business and going out of the business, to see if money is available.

Types of marketing strategy: Market penetration Market penetration occurs when a business penetrates a market in which current products already exist. The best way to achieve this is by gaining competitors’ customers. Needle’s can do this by attracting Tab’s and Lahore Grill customers. A business can increase sale of an existing product in an existing market in one of two ways. One is to increase its market penetration that is to sell its products to more customers in the market. Needle’s can attract new customers by advertising locally such as newspapers or posters.

Secondly is to increase the quantity sold per customer. That is to make the existing customer buy more of the product. For instance it can give discounts such as eat as much as you want for EYE. Market development Market development is finding new market for an existing product. Needle’s can update its menu every month in order to know what is selling and what needs Needle’s should decide if there are menu options they can add to attraction into the new business. Needle’s should try to advertise the new menu offerings in order to attract loyal customers.

Product development Product development is to give an existing products a Unique Selling point (USPS) to differentiate them from the products of competitors or make them appeal to new markets, or developing new products for an existing market. For example, Needle’s can offer cheap price menu such as eat as much as you want for El 5 or as Needle’s Restaurant is full of young families during dinner time they should therefore try to introduce kids menu and this would be appealing to its target market. Marketing tactics: Marketing tactics are the particular marketing activities that will be used to implement a marketing strategy.

If Needle’s want to launch a new product it may involve various forms of promotions such as customers may eat as much as you want for EYE or EYE for starters and mains for a group of 5 person. An increased in competition may require to new pricing policies such as the cost of buying meat then they will be able to review the prices. The change in tastes of customers may lead to the need for new product development. Marketing Warfare strategies Offensive This marketing strategy is designed to attack competitors such as Tab’s restaurant.

Offensive marketing warfare strategies are a type of marketing warfare strategy designed to obtain an objective, usually market share, from a target competitor. This is therefore a short term strategy. Needle’s can advertise the menus it is offering but it cannot afford to do television advertising, it can only afford to use local newspapers and posters. For instance, they can have a deal on three course meal up to E. 99 which is similar to Tab’s products but selling it at a lower price. Money will not be enough to run television advertisement as it is expensive and small.

This strategy would be challenging for short-term hence if it is not working well Needle’s would have to use some of Tab’s advertisement for instance Needle’s should try to include an online booking page which Tab’s has on its website. Moreover, a good business should update their website frequently, by doing that they can do offer of the week for instance, they can offer two mains for E 12. 50 and change it weekly to make it sounds more interesting and in this way it will attract a lot of customers both for lunch and dinner time. Defensive Defensive are a type of marketing warfare which focus on to protect a business market share.

It is more profitable for a business as they trust to establish long term relationship with customers and employees. Staff working best to their abilities can be given free lunch with drinks and this will motivate them to work harder. Needs can also train an employee to deal with customer complaints so that the negative and harmful effects on the firm’s are minimized. Additionally, Needle’s can offer a Unique Selling Point (USPS) such as discounts for repeat purchase or can reward repeat errs by giving them a voucher, offering starters and main dishes at Ell. 50 and this would have a unique benefit as competitors do not have.

This can therefore, increase customer satisfaction, customer loyalty or repeat purchase. However, they cannot offer customer’s freebies or free drink as this would lose profits but on the such as you pay for one drink and you get the rest of them free. Besides, as Tower Hamlets is a multi cultural diversity, Needle’s provide a variety of food which caters the needs of different type of customers. For instance, as they provide Hall food they re targeting a market for Muslims customers. Flanking Flanking appears impossible to defend a market and the possible approach is to find a new market. This is designed to protect a new market.

Needle’s would have to look at the product/services it is offering and see how they can change/ find new ways to improve the business. For example, Needle’s can look at other segments that are not well served by existing competitors. However, Needle’s cannot expand as one of its main aims is to survive. They cannot relocate because they might not have enough money as it is a sole trader business. Needle’s will have to look at its financial budget which will forecast the flow of cash and other funds into the business. Guerrilla This approach is suitable when a smaller business faces new competition from a larger business.

In this situation neither attack nor defended is possible and the business would not want to leave its current market. In this way Needle’s will have to identify Tab’s potential weaknesses and attack in that way as it is a big restaurant. The weaknesses that Tab’s have can be the outdated dcore. The downright dcore can detract from the ambiance and is a significant major restaurant weakness. This is an opportunity for Needle’s to attract more customers as Tabby is more successful and have a significant amount of customers compared to Needle’s.

Furthermore, another weakness can be poor customer service. People do not only go to restaurant to enjoy quality food but also to enjoy the services. At Tab’s customers have to wait for quite a long time to get a plate of food and sometimes to their surprise it is not cooked properly. Customers that are unhappy with Tab’s service will not return again and this can be useful to Needle’s as it already provide excellent customers service and the evidence is the Excellence Customer award in 2010.

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