Blossom Market Plan

Executive Summary

A brand is significant in positioning a restaurant in the United States of America (USA) market. In particular, it creates a corporate personality and can give a business a competitive advantage. Blossom is a restaurant targeting customers from the USA, which focuses on fresh items that are locally sourced. Since a large and successful restaurant is supporting the new branch, the owner understands that to produce high-quality food, one must get a good source of fresh ingredients. Blossom can establish its brand using its interior design and the dining experience it will provide for its customers. The restaurant will position its brand by coming up with a logo and maintaining clean eating, community building, and responsible sourcing of ingredients.

Blossom’s target audience is the working-class people and their families. Potential customers are between the ages of 20 and 50 years. The restaurant should fill a niche of providing meals that resemble those prepared at home. Besides, in the digital era, many people are busy and do not have time to cook. They even work while at home, and that is the reason why Blossom comes in. The restaurant should focus on preparing healthy meals apart from junk food, which is offered by many local eateries. The primary objective of Blossom should be providing healthy meals, maintaining a high level of cleanliness, getting fresh ingredients domestically, and engaging in community building initiatives.

Current Market Situation

Food Trends in the USA

The USA food industry has significant differences from other markets in different parts of the market. Based on a report by NPD Group, the prices of food in many restaurants are hiking. However, about half of the USA population prefer eating at restaurants to cooking at home due to their busy schedule (Huen, 2018). Blossom must ensure that its products and services are affordable to the majority of Americans. Any eatery that wants to grow and expand in the future ought to adopt digital strategies such as establishing a website or mobile app. Many Americans are using the current technology and would prefer a restaurant where they can order meals or make reservations online. NPD Group makes it clear that about 2.8 million people in the USA order food online where it is delivered to their doorstep. Moreover, Blossom must offer a variety of American cuisines and provides the best dining experience, both casual and formal ones. The restaurant should hire the right workers and avoid employing undocumented immigrants. About 37% of members of the National Restaurant Association affirmed that the most significant obstacle in the food industry is labor recruitment (Beckett, 2019). Since many Americans are becoming vegetarians, Blossom must cater to their foods and come up with a plant-based menu.

Full-Service Restaurants

Many existing restaurants in the USA offer various products and services to their customers. That is the reason why they are known as full-service eateries. Blossom will be a full-service restaurant that focuses on casual dining. A full-service restaurant provides customers with a menu that has a variety of meals so that they can select the ones they want. Waiters or waitresses take the orders and bring food together with the drinks that customers have requested. In other terms, customers are served for their entire time at the restaurant, and they pay after the services. In addition, full-service restaurants deliver food products to their clients upon request.

Competition

The food industry in the USA has about 20,000 restaurants and companies, which generates around $760 billion annually. As such, this sector is highly competitive, and a new entrant must provide high-quality products and services to thrive. The profitability of Blossom will depend on the restaurant’s efficiency in fulfilling its customers’ preferences and requirements (Hudson, Cardenas, Meng, & Thal, 2016). The most significant thing about the USA food industry is that it is an open market where any company can be at the top. For Blossom to survive the stiff competition in the USA market, it should concentrate on sourcing fresh produce and remaining true to its primary objectives. Furthermore, employees of Blossom should be trained on how to handle clients and how to create a welcoming and positive environment so that customers can keep returning for more products and services. 

Pricing

Although eating at full-service restaurants in the USA is becoming expensive, Blossom should set the prices of its products and services by considering average Americans. When the cost of meals at the restaurant is high, many people would prefer cooking at home or buying fast food from the supermarkets. Currently, the average price for a regular breakfast is $15, $20 for lunch, and $40 for dinner (Liu & Tse, 2018). Therefore, Blossom’s prices should be around the figures indicated above, depending on the type of meal. One of the significant problems that make many new restaurants to close down in the USA is setting high prices for the products and services they are offering. However, Blossom should as well provide expensive meals for those who can afford. Pricing should be determined by the type of food and the target audience.

SWOT Analysis of Blossom Restaurant

Strengths	Weaknesses
Strategic location. Highly-qualified employees who have experience in the food industry. A variety of food products on the menu. A conducive environment where customers can eat while they interact with their colleagues. Fresh and tasty food products. Hospitable and welcoming workers.  Highly-qualified chefs who understand various American cuisines. Fresh locally sourced ingredients.	A new restaurant that is not well-known to many Americans. The lack of enough space. Difficulty in getting fresh local products.  Highly-competitive operating environment.
Opportunities	Threats
The majority of Americans are ready to buy food products as long as they foster their health. Average prices that make meals affordable to a significant percentage of people. Extended opening hours to serve everyone. The provision of healthy food. Many Americans are turning to vegetables and salads. A proper understanding of the dynamics in the food industry since Blossom is a subsidiary of another large and successful restaurant.  Community involvement will enable the firm to know the culture of its customers. Growth in low-calorie meals. The emergence of digital strategies that enhance food delivery using mobile app.	The lack of proper knowledge about the American culture and how it affects people’s eating habits. Stiff competition from well-established and high-end restaurants that have built their reputation for an extended period. The lack of trust from clients since Blossom is a new restaurant. The probability of American restaurants offering similar products and services to that of Blossom. Difficult in getting a reliable source of fresh ingredients.

Objectives

Year 1

During the first year in operation, the primary goals of Blossom Restaurant are to get a reliable source of fresh ingredients, clean eating, and community building. Since the business is new in the USA food industry, the management will master various things that the company needs to improve so that it can gain a competitive advantage. In reality, the food sector in the USA is highly competitive, and only the restaurant that is ready to listen to its customers will survive. For this reason, during the first year, Blossom will know what many Americans like so that they can incorporate new products and services. In addition, the restaurant will familiarize itself with the community. On that note, it can suggest some initiatives to help individuals residing in the neighborhood. By providing healthy diets, complying with the American policies, and listening to its customers, Blossom will develop a good reputation gradually.

Year 2

During the second year in operation in the USA market, Blossom would have mastered the dynamics of the food industry. On that note, the objectives that the restaurant would be striving to achieve are improving existing products, attracting new customers through referrals, and introducing health awareness campaign by suggesting nutritious meals to its clients. The other goal of Blossom should be coming up with new food products, redesigning the seating arrangement, and maintaining high levels of hygiene. At this juncture, Blossom should not struggle in maintaining its customers by providing the meals that they want. The restaurant should offer a discount for returning clients to attract many consumers through testimonials. However, Blossom should be careful not to alter the quality of its products and services while trying to cater to the needs of many people. Most importantly, the restaurant should establish one community initiative to bring the people residing around closer. For example, it can participate in a tree planting activity where individuals would be served lunch or dinner at the restaurant. Consequently, during the second year, Blossom should achieve more goals than in the first year, which involves studying the dynamics of the food industry in the USA.

Marketing Strategy

Positioning

As indicated earlier, the primary values that will position Blossom in the American food industry are responsible sourcing, community building, and clean eating. Specifically, the restaurant will find a reliable source of fresh ingredients for the continual provision of healthy diets. The lack of a good source of local fresh produce might jeopardize the meals that Blossom offer to its clients. Clean eating means that the restaurant will maintain high levels of hygiene in food handling. In other words, cases of food poisoning will be unavailable since they can damage the firm’s reputation. By coming up with community initiatives, Blossom Restaurant will engage its neighbors in environmental conservation.

Targeting

When it comes to potential consumers, it is clear that Blossom targets ordinary Americans. These are the working-class people who can afford to buy a variety of food products provided on the menu. For this reason, Blossom will set prices that the majority of Americans will find reasonable. High costs of food products will send clients away, which can have adverse effects bearing in mind that Blossom is a new restaurant in the USA. Consequently, target customers will eat meals from the restaurant if they are satisfied with the services provided.

Integrated Marketing Mix (Place, Price, Product, and Promotion)

Blossom should start by providing the products and services that are offered by its competitors. Specifically, the restaurant should stick with the common meals that many Americans like before introducing new products. After operating for some time, Blossom would have mastered the food industry dynamics, which will enable it to launch new types of meals. After identifying the products to offer, the restaurant should set prices appropriately. Besides, the costs of products and services affect the demand, supply, and profit margins (Jin, Goh, Huffman, & Yuan, 2015). For fast-moving food products, the restaurant should promote them through social media marketing, discounts, search engine marketing, and other forms of advertisements. When it comes to the place, Blossom should ensure that its location is strategic and that it provides the right food products. Overall, product, price, promotion, and place are among the most significant components to be considered when entering a particular market.

Marketing Controls

Marketing controls enable one to monitor a business and see whether it is achieving the set objectives. In other words, it is a roadmap that shows where a firm should be at a specific time. If the management realizes that something is not right, it adjusts the organization’s direction so that it can reach to its actual destination. The results of Blossom performance will be measured by the number of returning clients and the availability of fresh ingredients from the local market. For instance, if the percentage of customers within a specific period keeps decreasing, the management should know that something is wrong. As Blossom continues to operate, it should attract many new customers where a significant percentage of clients would return. Marketing research will be used to increase the number of customers by advertising products using the right channels (Raab, Baloglu, & Chen, 2018). For Blossom to enter and gain a competitive advantage in the American food industry, it should study the appropriate media where it can reach potential customers. Without effective market research, Blossom cannot grow and expand since it will be hard to find new clients that would increase its profitability.

References

Beckett, E. L. (2019). 6 restaurant trends that could turn tables in 2019. Restaurant Drive. Retrieved from https://www.restaurantdive.com/news/6-restaurant-trends-that-could-turn-tables-in-2019-1/545323/.

Hudson, S., Cardenas, D., Meng, F., & Thal, K. (2016). Building a place brand from the bottom up: A case study from the United States. Journal of Vacation Marketing, 23 (4), 365-377. 

Huen, E. (2018). The top 5 food trends to watch in 2019. Forbes. Retrieved from https://www.forbes.com/sites/eustaciahuen/2018/11/30/foodtrends/#661829ce507e.

Jin, N., Goh, B., Huffman, L., & Yuan, J. J. (2015). Predictors and outcomes of perceived image of restaurant innovativeness in fine-dining restaurants. Journal of Hospitality Marketing & Management, 24 (5), 457-485. 

Liu, P., & Tse, E. (2018). Exploring factors on customers’ restaurant choice: An analysis of restaurant attributes. British Food Journal, 120 (10), 2289-2303. 

Raab, C., Baloglu, S., & Chen, Y. (2018). Restaurant managers’ adoption of sustainable practices: An application of institutional theory and theory of planned behavior. Journal of Foodservice Business Research, 21 (2), 154-171.