1.

BUSINESS BACKGROUND

MARCELLOS, a new upscale Italian restaurant and bar, recently opened in Taman Sri
Hartamas. The restaurant officially opened its doors on October 2008. The founder of the
company is George, and his companion, Michelle Ong. The restaurant exercises a fine-
dining concept and

1.1 LOCATION

Marcellos is located in a very strategic location based of its geographic, demographic

and behavioral factors.

Geographic - Taman Sri Hartamas is a fast moving suburban township in Kuala

Lumpur. It is situated 15 minutes away from the centre of Kuala Lumpur. The
township is well served by three major expressways that link the area with the
various other surrounding suburbs. (Exhibit : )

Demographic - The total population of the township is estimated at 10,481 residents.

With an average monthly household income of RM8,000. Table _______ illustrates
the various ethnics residing in Sri Hartamas.

Behavioral Factor - The residents are rather cognizant about quality and healthy
lifestyle. On the other hand, they also enjoy dining out with friends and families, for a
high quality meal without putting effort of making it themselves, thus often seek more
than value relationship.

1.2 BUSINESS OWNERSHIP AND STRUCTURE

The business is made up of 10 employees. George acts as the Managing Director of

the business, focusing on the kitchen operations, service standards, food quality
issues, marketing and promotions. There is four other staff that coordinates closely
with him. Michelle acts as the Director, managing personnel and handling financial
issues.
1.3 START-UP SUMMARY

The initial capital for the business was RM1.8 million, solely from the owners’
account. The start-up capital amounted to close to RM800,000, obtained from a SME
loan with a interest rate of 6.5% over a 15 year term. The breakdown for this amount
is illustrated below.

AMOUNT
DETAILS
(RM)
Rental (RM10,000 x 2 months advance) 20,000

Utilities (Advance Utilities) 10,000

Renovations & Décor 250,000

Furniture and Fittings 100,000

Kitchen & Bar Equipments 200,000

Cutleries & Clockeries 100,000

Liquor License 25,000
Legal Fees 10,000

Advertisements & Signboard 11,000

Staff Salary 30,000

TOTAL 756,000
2. SITUATION ANALYSIS

A situation analysis is a marketing term that involves evaluating the situation and trends in a
particular company's market. In Marcellos case, the analysis will cover a description of its’
products and services, advertising strategy and an analysis of the problem faced.

2.1 PRODUCT AND SERVICES DESCRIPTION

Menu - The character-filled establishment offers a delicious authentic modern Italian

cuisine for lunch and dinner. The lunch comes in a 3-course set which has a
combination of appetizers, a wide range of choice, for pasta, soup or pizza, dessert,
beverages and free flow of soft drinks or one glass of wine or beer. The different
menu is offered for the set lunch over the weekend. Wherelse the dinner is based on
ala carte specialties. An exceptional range of domestic and Italian wines
complemented by noble grapes from Australia, France and Chile are offered as
complimentary for dinner. (Exhibit ___ : Menu)

Price - The 3-course set lunch is priced at RM45, the ala carte menu for the dinner
range from RM20 onwards, wherelse the price for the wine is between RM100 to
RM450. All the prices are subject to service tax.

Operation Hours - The restaurant is opened daily. Lunch is usually offered between
11.00am to 3.00pm, evening tea from 4.00pm to 5.30pm and dinner from 6:30pm –
12 midnight. The bar operates from 7.00pm onwards up to midnight.

Payment Options - Customers are allowed to make their payments either by cash or
credit cards such American Express, MasterCard and Visa.
2.2 ADVERTISING STRATEGY
Advertising costs can overwhelm a new business, so keeping marketing simple and
creative will be challenging. Cost effective marketing is one of our keys to success,
and fortunately a large portion of it will be taken care of by Santa Barbara Restaurant
Group.
A combination of local media and event marketing will be utilized at each location.
Radio is most effective, followed by local print media. When the La
Salsa construction in Eugene is finished, broader media will be employed. Print
media, radio and college events advertising will be the most effective way
of generating publicity.

The advertising strategy used by Marcellos was simple. With a small budget
allocated, the advertising strategy was employed in the first six months of the
business. the print media advertising method was used whereby the advertisements
were placed in the Sun newspaper and some selected magazines such as the
Flavors and Cleo. The newspaper carried a half page advertisement, bi-weekly for
two months whilst the magazines published for three consecutive months. The
advertisement comprised the food and dining services offered by Marcellos. The
details of the cost incurred for the advertisements are as follows.

a) The Star Publication

Edition : Star Metro

Focus : Central Region Only
Price per Insertion : RM6,000
Total Charges : RM6,000x 2 times x 2 months
= RM24,000

b) Flavor
2.3 PROBLEM ANALYSIS

Marcellos is close to entering its second year of operation. But the growth and
profitability of Marcellos seems to be impacted since there is been no increase in the
customer numbers to the restaurant. Although, there were advertisements placed in
the print media, yet Marcellos failed to generate the desired attention from its
customers. This is likely due to the advertising and promotional plan which is dull and
did not reach the targeted audience.

3. MARKET ANALYSIS SUMMARY

3.1 SWOT Analysis

The strengths, weaknesses, opportunities and threats of Marcellos are tabled below.

Strengths

• Rents an end-lot unit

• Location links to neighbouring townships
• Located in highly dense commercial centre
• Township is a boon to foreigners and night life lovers
• Quality Service – Guests are welcomed and given personalized table
service
• Halal Certification – An advantage to the Muslim customer to dine-in
 Weaknesses

• Do not offer take away and delivery services

• Bottlenecks during peak hours
• Variety of businesses is hodge-podge
• New establishment – Lack of publicity
Opportunities

• Bright prospect for expansion – Township identified as strategic growth

area by KL City Hall under the KL City Plan 2020 project
• Knowledge base economy promoted by government attracts foreigners and
creates demand for expansion
• Offer discount vouchers or promotions to regular customers

• Expand to first floor for function rooms and event halls

Threats

• Competitors of the similar kind

3.2 Target Market

The market for Marcellos covers a large area of diverse and densely populated
groups that caters to the demographic segment of which Marcellos is targeting. The
restaurant market is divided into three target population segments.

The main target will be the upper income level families living within the township. The
restaurant focuses on this specific group of people who are young professionals and
foreigner with an average income of RM8,000 and above. This group of people often
seeks a differing cuisine than the ordinary established food chains to suit their busy
lifestyle.

The secondary target will be the resident population within the 10km radius of the Sri
Hartamas area which is approximately 350,000 people that encapsulates the entire
Mont’ Kiara, Damansara Heights and Kenny Hills area.
 The final target is the “white-collar professionals” at Plaza Damas and the Crystalville
commercial centre, with approximately 600 office suites. These segment targets the
group within the age of 25-45 years old, who seek upscale, trendy, and comfortable
restaurant options to try something vibrant or for the purposes of conducting small
scale business meetings or gatherings.

3.3 Competitors Analysis

There are dozens of restaurants in Taman Sri Hartamas, operating as independent

restaurants. There are close to 80 restaurants operating in this township, comprising
of various cuisines and services, out of which four restaurants are solely Italian
cuisines. Exhibit _________ indicates the complete listing of the restaurants in the
Sri Hartamas township.

a) Alberto Pizza and Pasta Food

Target Audience : Family, Working Group, College Students. Specializes in thin-crust pizzas
and the pasta comes with seven types of sauces, comprising of meat and seafood dishes,
complimented by Italian wines, alcohol-free Tiramisu, homemade pastries, gelato and Italian
coffee. The restaurant is opened daily with business hours commencing from lunch to midnight.

Specialty
• Thin Pizza Crusts with Mustard • Pistachio Ice Cream (RM12)
• Kinder Bueno • Mixed Vege Salad Buffet (RM15)
• Crispy Choclolate Chips • Seafood Pizza (RM24)
b) Hayn's Pizzeria
The restaurant was started by Arne Hayn, a German of Italian descent. Its speciality is the paper
thin crust and innovative toppings pizzas, made the true Italian way. The pizzas come in three
different sizes—eight, ten, and twelve inches with sixteen types of toppings.

Speciality Facilities
• Pizza (M9.50-M26.50) • Credit Cards
• Butter Prawns Pasta (RM19.90) • Wi-Fi
• The tiramisu (RM6.50) • Home Delivery & Take Away
• Pasta - From RM8 to RM15 •
• Crème Brulee (RM5.50)
• Soup and Salad – From RM5 to RM6

c) IL Divo Italian Restaurant

An Italian restaurant which comes from the city of Naples, Italy. Offers a wide range of
selection

Specialty Facilities
• Sautee Clams (RM22) • Credit Cards
• Grilled Tuna Steak (RM53) • Live Entertainment
• Seafood Spaghetti (RM42) • Special Arrangement for Parties
• Tiramisu (RM24) • Home Delivery & Take Away
• Wide range of house wines • Air-Conditioned
• Liquor Served
• Catering Service Available
 d) The Olive Italian Cuisine
The restaurant targets the elite group. As such, price is slightly on the higher-end.

Specialty • Linguine with Mussels

•Wild Mushroom Soup • Fettuccini Carbonara
• Fettuccini Salmon • Ravioli
•Spaghetti Carbonara ‘
Facilities
• Pepperoni Pizza Carpaccio with
Credit Cards
Sautéed mushrooms
• Deep Fried Calamari

4. INTEGRATED MARKETING COMMUNICATIONS (IMC) PLAN

The Integrated Marketing Communication (IMC) plan is an integration of all marketing tools,
approaches, and resources within a company which maximizes impact on consumer mind
and results into maximum profit at minimum cost. The IMC plan comprises of a marketing
plan and the advertising and promotional (A & P) efforts of an organization.

4.1 MARKETING PLAN

A marketing plan is a written document that details the necessary actions to achieve
one or more marketing objectives. It can be actions taken to improvise a product,
service, brand, or a product line. This is basically evaluating the 7 P’s marketing of
the service industry. The framework integrates the total marketing effort to ensure a
systematic approach in developing quality products and services to meet and satisfy
the customers’ needs.

4.2 OBJECTIVES

For Marcellos, the marketing plan is based on developing visibility among the Sri
Hartamas community and the population within the 15km radius.

4.3 RATIONALE
4.4 MARKETING MIX

The 'marketing mix' is a set of controllable, tactical marketing tools that work together
to achieve company's objectives. A restaurant fall under the service sector and
comprises the 7 P’s – Product, Place, Price, Promotion, People, Process and
Physical Appearances. The marketing mix for Marcellos is an analysis of the 7 P’s in
the present condition and actions to be taken to improve to enable it to deliver a more
quality service to the customers.

a) Product

Present :

Future : The restaurant must frequently develop new menus and offer a selection
of different menu items to attract customers. The menus should be separated for
lunch and dinner. This is to differentiate the meals and provide exclusivity in the
offerings.

b) Place

Present : The

Future : The end-lot unit is an added advantage to Marcellos since the space
available by the side of the premises can be extended for an open-air dining. This
is to cater to the diner who enjoys the atmosphere of a Tropical climate.

c) Price

Present : Marcellos menu has a simplified pricing structure.

Future : The menu This is to enable customers to pay for what they see rather
than having to pay for additional hidden cost.

d) Promotion

Present :
 Future : The restaurant should introduce a Frequent Diners Program whereby a
reward in the form of discounts is given to the regular patrons, and to attract more
customers to patronize the restaurant, frequently.

e) People

Present : The waiter and waitress often turn up to the restaurant manager of the
owner at times in cases when they are unable to handle the customers doubts,
especially in the case when the customers asks for recommendations on the ala
carte menu. This creates agitation to the customers for waiting for long until
someone attends to their queries.

Future : The restaurant crew needs to be trained and impart knowledge on the
product offered, and possess appropriate interpersonal skills and aptitude to be
independent in attending to the customers’ queries, thus enabling to market the
products offered.

f) Process

Present : The restaurant is often crowded during peak hours. And

Future : Marcellos must more staff to

g) Physical Evidence

Present : The restaurant possesses a fine-dining concept. The interior features a

soothing warm tone with a cozy dining room and an elegant lounge. The lounge
has comfy couches and antique seats.

4.5 ADVERTISING AND PROMOTIONAL (A & P) PLAN

Advertising and promotional costs can overwhelm a new business, so keeping

marketing simple and creative will be challenging. Cost effective marketing is one of
 our keys to success, and fortunately a large portion of it will be taken care of by
Santa Barbara Restaurant Group.
A combination of local media and event marketing will be utilized at each location.
Radio is most effective, followed by local print media. When the La
Salsa construction in Eugene is finished, broader media will be employed. Print
media, radio and college events advertising will be the most effective way
of generating publicity.

The A & P plan for Marcellos will be segregated into two, advertising and promotion.
The advertising strategy will focus mainly on publicity and generating visibility, whilst
the promotional strategy will focus customer appreciation as well as bringing in some
extra business on the same time.

4.1 Advertising Plan

The advertising strategy will be a two-pronged strategy, which is the print media
advertisement and the broadcast media advertisement.

(a) Print Media

Menu Flyers- Creating a menu flyer, or a take-out menu is another way to get
the word out about your restaurant, without breaking the bank. Place these flyers
at local hotels, chambers of commerce, and to local businesses. Be sure to place
flyers at popular tourist destinations as well, such ski mountains, parks, or
whatever place in the area that draws a crowd. You may not be able to fit your
entire menu on a flyer, so add your most popular dishes, as well as your hours,
any special promotions (happy hour, early bird, ect…) directions and telephone
number.

Menu Inserts- Menu inserts are a great way to advertise new promotions or services
to your existing customer base. For example, if you are introducing a new promotion,
such as a wine tasting dinner on the first Friday of each month, you can place an
insert advertise that in your regular dinner menu. You can use this same idea with
table tents, as well.

(b) Broadcast Media

 Restaurant Website- One of the most powerful tools a restaurant has, is
one that is often overlooked. More and more people are turning to the
World Wide Web for information, rather than the yellow pages.
Maintaining a website is crucial for any business today. While your
website doesn’t have to have all the bells and whistles of retail websites,
which are trying to sell products directly to consumers, it should give the
basic information of your restaurant, such as hours, telephone number,
directions and a copy of your menu. You can also add weekly customer
promotions, such as an early bird menu, or happy hour details to your
site. One of the best ways to get business through your website is linking
with other businesses, such as local hotels, the chamber of commerce
and local tourist information sites.

4.4 Promotional Plan

on distribution of flyers on,