Contents
This
marketing plan has been created to recommend changes that can uplift Trafalgar
pub to the level of a restaurant and bring in more attendees. Trafalgar is a
pub located in suburban Sydney and has been catering to the drinking and dining
needs of visitors from last few decades. However, it faces some competition
from neighbouring restaurant. The marketing plan highlights the problems that
are being faced by the pub and how its share in the market is diminishing due
to renovations in a neighbouring pub. Moreover, a survey was also conducted
that tells about the preferences of residents and what they would prefer in a
pub.
The
Trafalgar is a hotel located in inner suburban area of Sydney. It was
originally built in the late 19th Century when the area was mainly a heavy
industrial suburb with a section of dwellings for the industrial workers. This
area comprises about two blocks in each direction around the hotel. The hotel used
to cater for the factory workers with lunchtime and after work drinking.
The
Trafalgar management has been trying to increase its marketing share in the
neighbourhood. It has been established for a few decades however the company is
recently witnessing a steady decline in its profit base. This report that was
prepared to work as a guide for the Trafalgar management highlights the issues
that can help the pub increase its marketing share and make an impression on
the white-collar workers.
Since
1995 the suburb has been changing with most of industry moving to cheaper land
on the outskirts of Sydney and the factories and warehouses being either
demolished and replaced or
converted
to apartment buildings. Some warehousing and administrative offices have
remained. Consequently many of the workers have mgved out of the area and the
workers cottages are being refurbished and the suburb gentrified by yuppies
(Young Urban Professionals). The households are often made up of singles living
alone, young people living in shared households, and young couples.
Much
of the new apartment style housing is rented rather than owner occupied.
However, the refurbished cottages are generally being bought by the people
occupying them. These owner-occupiers are also often young working couples.
Most of the households earn $50,000 or more yearly.
The
problem with Trafalgar is that these households prefer it as a ‘blue collar’
place. They do not visit it [according to survey] because they feel
uncomfortable.
-To
bring back people to the pub
-Turn
pub in to a restaurant that can cater to people’s needs
-Increase
market share
-Provide
more facilities to people
-Provide
a secure atmosphere to families
-Treat
visitors with respect, remove the ‘rough’ attitude of staff
The study will
provide certain recommendations to The Trafalgar management acting upon which
it can work towards progress and prosperity of the pub. Different entities have
been kept forward like the issue of price, place and service. These are further
defined in the marketing mix that will lay the foundation and recommendations
for the pub management.
For
Trafalgar management that delivers drink and dine services to their customers,
so they can alleviate the standard and turn the pub into a restaurant.
The
Trafalgar provides profitable, good quality, in-house food, beverage and gaming
services to the residents our immediate nejghbourhood in a safe environment.
The
hotel presently offers food, beverage and gambling services. The food services
are presently restricted to week day lunches over the bar. The bar is open from
10am to 10pm daily and serves draught and bottled beers and mixed spirit
drinks. The gambling services include 15 poker machines and a TAB service
enabling wagering on horse racing.
- Increase worth
of the place and surpass the competition
- Make the hotel
a profitable place like it was a few decades back
- Make use of
the second floor
- Provide
security to attendees of the hotel
- Turn the hotel
from blue-collar place to a white-collar one.
- Train staff
about treating customers
Based
on the analysis, Trafalgar has the following SWOT:
Strengths
- Good location
- centrally located in
- Ample funds
available for investment Good gaming/wagering & bar revenues
- Good supplier
relationships
- Database of
present customers
Opportunities
- Demographic changes due to
newly developed of residential area
- Redevelopment of area e.g.
increased population of yuppies - new products such as dining, cocktails,
functions
- Midnight licence Unused second
floor General economic prosperity and
Weaknesses
- Poor image - seen as 't rough
house' staff
- Need for improved facilities
kitchen, no dining room
- Bar areas in need of renovation
- Beverages presently restricted
to beer and spirits
- Clientele mainly men/women
don't feel comfortable/safe
Threats
- Competition from refurbished
pubs in Untrained area
- Neighbours complaints from
increased e.g. poor patronage
- Changes in licensing/gaming
laws
- Increasing inflation/interest
rates
- Council may not approve
development
- Banning of smoking indoors
Armed Robberies
The
target market of Trafalgar includes mostly people between the age of 23-34
mostly couples. They spend their time drinking and dining. According to a
recent survey conducted, the most frequent uses of pubs are those from shared,
couples and singles households.
Majority
of the residents engage in drinking. As far as 83 percent visitors of the
restaurant drink, while 48 percent attend it to dine. 28 percent engage in
Karaoke and 14 percent visitors watch sports. However, only 11 percent people
attend the pub to meet people and the percentage is around 11%.
The
target market for Trafalgar is the residents of the neighbourhood. These
residents are further divided in to white-collar workers and blue-collar
workers.
White-collar
vs blue collar:
-
85% of the workers are white-collar
-
15% workers are blue collar
By
wage:
79
percent earn more than $50,000 annually
21
percent earn less than $50,000 annually
The
major focus of Trafalgar right now is to tap into the white-collar market.
These people often avoid Trafalgar as in a survey most of the residents said
that Trafalgar looks like a blue-collar place. Another important point that
should be noted is that these people do not visit pub to meet people. Instead,
they want a place that works as an attachment to their living rooms.
The
following discussion outlines some of the details of the proposed marketing mix
for Blue Sky products.
Service:
Trafalgar provides drink, dining, karaoke, gaming
services to its customers. Most of the people indulge in drinking and dining
while a few numbers of people engage in karaoke and gaming services.
The customers of Trafalgar want a comfortable
environment so they can meet their friends, families want security so they can
relax and enjoy. Other than that, many consider it a blue-collar pub and the
population is 86% white collar, so they do not want to visit a low standard
pub.
Trafalgar has ample funds, a good chef, good
relations with distributors and poker machines and is centrally located. These
qualities can be used to provide a comfortable environment to the visitors of
the restaurant.
People have
complained the staff is ‘rough’. Trafalgar should train the staff about
providing better services.
Place:
Trafalgar is centrally located and all neighbours
can easily access the place. It has also space to extend its facility if
needed.
In
the survey conducted, people said they wanted a comfortable place. Trafalgar
has a centrally located place but the label ‘blue collar’ has snatched the
comfort that it can provide. Moreover, due to all arrangements on first place
the pub looks uncomfortable to visitors especially families.
- Build a restaurant/renovate the place:
Most of the
objections raised were that the pub was looks ill renovated. It does not have a
restaurant and families don’t feel secure. Trafalgar should start building a
restaurant on one of its floors.
- Make use of
the second floor:
There are two option, either to shift bar
to the second floor and renovate the first floor into a restaurant so families
can visit the first floor and those couples who want to engage in karaoke,
drinking or gaming can go to first floor directly.
- Hire
guards/Increase security
The Trafalgar should also hire guards, as
most of the people who visit the place do not feel comfortable due to the
environment – which needs a complete renovation.
The Trafalgar can also start family events
on first floor on Saturdays and Sundays just to attract more customers. This
will not only tap into the neighbourhood but will also bring people from other
neighbourhoods to the restaurant.
Price
In the report Trafalgar administration says that
they were earning handsomely through poker and bar and they have ample funds.
Keeping the situation in mind, the renovations can easily be made. Moreover, as
they have good relations with the distributors more services can be introduced
that the competitor is not providing.
1.
Invest on
renovation
Trafalgar
management should invest more on renovation so the pub can stand out and appear
impressive to white-collar workers as well.
Promotion
These are some of the promotional strategies that
the pub can introduce for increased profit and more engagement.
1.
Place a
banner/Advertise on building
As Trafalgar is
centrally located, it will be seen by everyone who passes through it. So, the renovation
will also be observed by the people. What Trafalgar needs to do is to place a banner
outside the restaurant, saying something like ‘new and updated’ or whatever the
words suit the environment.
2.
Promote
through pamphlets:
Trafalgar can
easily send pamphlets to all houses in the neighbourhood telling about discount
rates, family parties, poker and gaming facilities and the renovation.
