Brand Positioning and Targeting

Sunny's is a restaurant chain with five locations strategically positioned throughout New York City. The company's goal is to provide its customers with the best healthy meals at the most reasonable pricing. The restaurant is quite popular and has a diverse clientele. We currently provide two varieties of breakfast sandwiches and would like to offer a third to our customers.

The group of people who alight from surrounding bus stations and those who work in the workplaces next to the five branches of the restaurant are the best target markets for the new sandwich.  The choice of a targeting strategy by an organization is influenced by the amount of resources at its disposal. The restaurant’s profits have been constantly increasing since it was started therefore the earnings have also increased, there is enough capital to introduce the new sandwich to our customers. The currently available sandwich varieties have been received well by our customers and were even voted the best sandwiches in the last two months. The fact that we already have many loyal clients means that the restaurant will not struggle to find consumers of the new product. The new sandwich will also be affordable to our clients. However, the new sandwich will be introduced into the market in small amounts so as to test its reception by our clients (Kotler & Armstrong, 2010).

Our biggest competitors are Yummy Bites and Smith’s Delicacies. The two offer sandwiches and burgers at a lower price compared to our restaurant. They also have more advertising avenues since they have a big social media following therefore they are more popular among teenagers. The advantage that we have over them is the quality in our food is consistent. We also provide the customers with receipts so that the client can come back in case of any complaints. Our competitor’s food is also known to be very greasy that is why they are popular among the younger generation. We provide food that is low in calories but high in nutritional value therefore catering to the older generation. We also have sugar and cholesterol free food for people with conditions such as diabetes. All our sandwiches have two varieties, one with brown bread and another with white bread. We also offer organic foods at a slightly higher price. Our loyal customers also receive branded T-shirts and vouchers for free meals after a certain number of purchases. Unlike our competitors, we offer office deliveries at a small extra charge. After every delivery, we give client a brochure which has the restaurant’s menu and the available discounts. Unlike our competitors, we also place advertisements on newspapers so that we can make ourselves known to more potential clients. The company also offers special discounts on the first Friday of every month so as to attract new customers and increase the loyalty of the existing ones.

Target Market Description

Majority of the restaurant’s clients are people who work in the buildings next to its five branches and the people from the nearby bus stops. Most people who work in the buildings near the restaurants do not take breakfast at home since they arrive at their offices very early in order to beat the traffic congestion. The restaurants are also located near bus stops therefore providing more potential clients. The other potential customers include people who walk by the restaurants. The clients are both male and female, but the male clients outnumber the female ones i.e. 65% of the clients are male. The low number of women might be due to the fact that most women are fond of carrying snacks to work so that they do not have to eat out. Majority of the clients are also between the ages of twenty and forty. Also, most clients who come in for breakfast stream in between 6.30 am and 10.00 am. The target market is comprised of middle income earners therefor exorbitant prices do not attract them. Some of the clients even come with their children to the restaurants before taking them to school. Therefore, the new sandwich will also serve the taste buds of children. The clients also favour sandwiches with eggs and ham over vegetarian sandwich. 70% of the customers use toppings such as mayonnaise on their sandwich but only 15% use chilli sauce. We attract a client base of many races, however most of them are white people (DesJardins, 2011).

Expected Financial Returns

2017 actual

2018 base

1st scenario

2nd scenario

3rd scenario

assumptions

Revenue

Sales from ads

$230, 630

The scenario results are from a revenue calculator

Affiliate

fees

$80,000

$81600

$81600

$81600

$81600

It increases at a rate of 2% per year with population

Total amount of revenue

310,630

$81600

$81600

$81600

$81600

Expenses

Operations cost

$70,000

$72,100

$72,100

$72,100

$72,100

Increases at 3% with inflation

TV commercials cost

$55,000

Add expenses of incremental programming

Commissions on ad sales

$6,918

3% revenue from ad sales

Advertising and marketing

$45,000

Increased spending of $15M

SGA

$40,000

$41,200

$41,200

$41,200

$41,200

Increasing inflation with 3%

Total cost

$216,918

$113,300

$113,300

$113,300

$113,300

Calculated automatically by spreadsheet

Net income

$93712

Calculated automatically by spreadsheet

Margin

30%

Calculated automatically by spreadsheet

The net income of the company is calculated by subtracting the total expenses encountered during the business from the amount of money received from sales. There are a number of expenses that are incurred during the running of any business. These expenses include the cost of operation, taxes paid to the government, the commission charged on ad sales, the cost of TV commercials, etc. the margin is the percentage of the net income compared to the total amount of revenue (Stahl, 2007).

Part 2: Brand Positioning

Brand Positioning Map

Sunny’s

Average food prices

Low cholesterol food

Discounts for regular customers

More adverts on newspapers

High number of TV commercials

Office delivery

Yummy bites

They have low food prices

They have more branches

They have a bigger social media following

Their food is very greasy

They have free Wi-Fi for clients

Smith’s delicacies

They have low food prices

They have more branches

They have a bigger social media following

Their food is very salty and high in cholesterol

Burger king

Expensive food

Greasy food

High number of staff

More branches

High number of TV commercials

Their burgers are very popular

Description of the Map

The company has three main competitors as named above. As much as we offer similar products, Burger King is not such a big competitor since its prices attract another clientele. The other two are key rivals to Sunny’s. They enjoy most of the young clients due to their low prices and the high social media presence. However, their food is very high in cholesterol therefore Sunny fill this gap.

The Positioning Statement

The positioning statement for Sunny’s is “to provide our customers with quality, healthy food at affordable prices.” We chose this statement because we want to set ourselves aside from other restaurants. Many food joints today offer food which is tasty but has very little nutritional value. Our aim is to provide our customers with healthy food with low cholesterol. We also cater to individuals with lifestyle diseases which place the patients on strict diets such as diabetes. Our prices are also fair compared to other restaurants which offer nutritious food, making us accessible to middle income earners (Wood, 2011).

Conclusion

Sunny’s chain of restaurant is very popular due to the nutritional value of the food that we offer. We currently have two sandwiches on our menu which are customer favourites. We therefore see it fit to introduce a new variety to the existing bunch. According to our analysis of the market, the new venture will be very profitable. There is enough capital to introduce the new sandwich without exceeding the company’s budget. The company has enough staff to ensure that this new venture is successful. Also, we can stay on top of the competition in term of the number of clients since we have extra services such as discounts and office deliveries.

References

DesJardins, J. R. (2011). An introduction to business ethics. McGraw-Hill.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Stahl, W. (2007). The Fashion Channel. Harvard Business School.

Wood, M. B. (2011). The marketing plan handbook. Pearson Higher Ed.