Marketing plan

SECTION 2: STRATEGY, CONSUMER BENEFIT AND MARKET SEGMEN

2.1. STRATEGY

Since Enzo’s want to open up interstate, it is foreseeable that the increase in market share would be plausible, which would then lead to future cash flow. However, in order for Enzo’s to make it in an interstate market, they first need to be recognized in South Australia. Research proves that even though Enzo’s have a presence in South Australia, they are still not a well-known restaurant chain, which could potentially damage any type of move if they do not have a dominant share in the market.

Our strategy is simple and straightforward. Enzo’s must first make a bigger name for itself around South Australia, preferably Adelaide, through social media,public relations and in-store promotions about Enzo’s at home.

2.2. CONSUMER BENEFIT
Enzo’s at Home is available to help fulfill the needs and wants of the consumer. The benefits Enzo’s at Home provides to the consumer can be either rational or emotional.
Rational: People are often looking for quick ready made meals which don’t require much time or effort to make. Traditionally people would look to sit down to eat three times a day, however, busy lifestyles have led to the increase of eating while on the go. Enzo’s at Home provides customers with the ability to save time during the day, they just have to heat up the ready made meal and the rest of the work is done for them. Consumers no longer have to slave over the stove for an hour or more preparing quality food for themselves or their family.
The number of microwaves purchased in Australia has been increasing each year for a number of years (See Figure 2). This further supports the fact that more and more people are looking for easy microwavable meals to save them time. Unless another product comes along that renders the microwave useless then it looks as though this trend will continue for the foreseeable future. Thus leaving Enzo’s at Home in a growing market.
Emotional: Enzo’s at Home also looks to connect with the consumer on an emotional level. This is done by targeting the consumers wants for tasty restaurant quality food at home. From the G.A.L.A.N.O.S Marketing survey, it was identified that around 50% of people had heard of Enzo’s Ristorante whilst only about 30% had heard of Enzo’s at Home. Making the general public aware of the fact that Enzo’s at Home is connected to Enzo’s Ristorante will give consumers greater confidence in the product during purchasing situations. They will understand that if they were to buy Enzo’s at Home then they will be guaranteed a tasty Italian meal and that want will be satisfied.

2.3. MARKET SEGMENT
Enzo’s at home provides consumers with authentic home cooked Italian food at a somewhat affordable price. Given it is pre-made food, it is most likely that their target market will be the middle-class population working from 9-5, due to the fact that their home cooked meals are easy to make. Because Enzo’s at home requires little time to prepare since the food is premade. They would be busy to point where tasks like grocery shopping would seem like a complete hassle. One can conclude that Enzo’s target market profiles the everyday working class.
This population has the intentions of healthy eating habits but do not have the time to go to the grocery store. Ideally, the target market will be from ages 18-64 of both male and female with an income of $73,308.34 and above (Economics, 2016). Furthermore, their lifestyles will be busy, but still with interests of consuming nutritional and delicious food. Their attitude or opinion towards pre-made meals would be indifferent but slightly skewed to accepting pre-cooked meals due to the convenience of an easy to make or open meal.

2.4. MARKET SIZE
Enzo’s at home functions in the “on the go” market with their pre-made Italian meals. Their products range from shelf-stable to frozen foods. From the information stated previously, within the last two years, there has been an increase in the ready meals market in Australia’s market a 10% gain in 2014 to an 8% increase in 2015 with sales reaching $1.8billion. The majority of Enzo’s target market consisted of students according to the survey we have conducted in [Appendix A].
As referred to in section 1.5 purchase/consumer when looking at consumer employment status we found out that students were the largest consumer of ready to eat meals with an approximate of 20.8% of the 104 people surveyed stated they have purchased a ready to eat meal in the past 6 months. However, when asked if they have purchased an Enzo’s at home ready to eat meal only 7 out of 34 students said they have over the past 6 months. Therefore, we recommend targeting female university students ranged between 18 and 26 because females make up the majority consumed readily to go meals.

In 2015, University of Adelaide has a had a ratio of 48.3% females, the University of South Australia with 57%, and Flinders University consisting of 63.7%

SECTION 3: FINANCIAL & MARKETING OBJECTIVES

3.1. FINANCIAL OBJECTIVES

FindTheCompany is a site which provides details about many companies around the world. They gather data including financial information, contact details, number of employees and more and make it available to the general public. According to the FindTheCompany profile of Enzo’s at Home, they recorded an annual sales revenue figure of nearly $575,000.³⁸ The year in which this sales figure was recorded is unknown. However as Enzo’s at Home financial information has not been provided this figure will be used as a starting point. In order to make assumptions regarding other financials of Enzo’s at Home, MAUS, a website which provides business benchmarking guides was used. Figure 3 shows the financial averages for Australian take away food retailers.³⁹ These averages were used to determine the current financial position of Enzo’s at Home.

Current Financial Estimates:
Sales Revenue $575,000

Gross Profit Margin 47%

Gross Profit $270,250
Net Profit Margin 12%
Net Profit $69,000
Year One Objectives:
Given that the marketing budget is $0, a dramatic increase in profit cannot be expected over the first year. Ideally, through making a change to consistent branding across Enzo’s Ristorante and Enzo’s at Home more sales can be brought in. A Sales revenue figure of around $600,000 would be a steady increase from the previous year and give Enzo’s at Home a more comfortable position in the market place.
Year Two Objectives:

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  Increase Sales Revenue to $625,000
  
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  Achieve a higher Gross Profit Margin
  
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  Keep Net Profit Margin between 10-12% (May see a slight decrease due to some money being allocated to the initiation of a marketing campaign)
  

Year Three Objectives:

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  Increase Sales Revenue to $700,000
  
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  Achieve a Gross Profit Margin of around 60% to compete with the top companies in the industry
  
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  Increase Net Profit margin to 15-20%
  

3.2. MARKETING OBJECTIVES
Year One Objectives

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  Increase awareness of Enzo’s at Home in Australia from approximately 30% (According to G.A.L.A.N.O.S Marketing survey) to 40%
  
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  Increase awareness of Enzo’s at Home in Enzo’s Ristorante Customers by 40%
  
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  Decrease product wastage in South Australia by 1%
  

Year Two Objectives

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  Allocate 1% of Sales Revenue to marketing Enzo’s at Home in South Australia
  
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  Increase awareness of Enzo’s at Home in Enzo’s Ristorante customers by a further 20%
  
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  Decrease product wastage in SA by a further 0.5%
  

Year Three Objectives

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  Increase cost of Enzo’s at Home meals by around 10%
  
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  Increase awareness of Enzo’s at Home in Australia to roughly 50%
  
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  Have 80% brand awareness in South Australia.
  
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  Have 100% brand awareness of Enzo’s at Home in Enzo’s Ristorante customers.
  
• 
  Decrease product wastage in SA by a further 0.5%