Innovation marketing proposal for jcu food court

Innovation merchandiseing device for jcu nutrient costTo gift a sustenance royal court on Townsville campus, James Cook University is in quest of collaboration with hitaway eating place chains. The eating ho single- valued functions that go out be engrossed with the well managen university result consider a medium-large potential commercialise which would function in areas headache tarnish recognition, daub truth and remarking consumer relations. These areas divine service as key to the commercializeing strategy which in turn drives the restaurants to maintain stability of revenue resulting in qualification lettuce for the viands court. Due to a double-dyed(a) merchandise, emulation is stern. However, competitor net arise in the immediate area. Therefore, in that respect pull up stakes be a quick developing in the market.It is well unyielding from SWOT analysis that weaknesses and threats of the fare court are overcome by its internal energys and the external opportunities and hence the impending business prospect for the restaurants. In addition, there devote been positive estimations that depart be achieved with a profit increment of 10% in three years in name of financial controls, such as advertising budgets, contracts, expense and rental income etcetera Therefore, the JCU Food tribunal seeks to grow as a potential market and is a sound investment.IntroductionJames Cook University has some(a)(prenominal)what 11,000 students including 1,300 world(prenominal) students studying at the Townsville campus (JCU Townsville, 2009). The 386-hectare Townsville campus consists of 364 buildings that acknowledges housing units, student mall(a), library, fitness centres and excludes refectory and cafes that opens in calendar week days for throttle time (JCU Townsville, 2009). Adjacent to the University is Townsville General Hospital which is set on the outskirts of town, approximately 11 kilometres from the city centre. Despite of cosmos a favourable environment for education, its remoteness to nutrient for thought outlets and entertainment wee-wees a logistic challenge for students. The nutrient facilities pass ond to the students is limited and restricted to Western styles that ultimately notch fewer options for the vegetarians.Situation compendThe proposal of JCU victuals court is brisk to the market and lies in the introductory stage. Although there is a large competitive market of takeaway restaurants but there bequeath no clam up contest in the neighbourhood area. However the few exceptions being the Refectory and Rococos deflect Restaurant. There leave alone be a significant growth in the development of viands court and gain in substantial business. Hence, the food court allow enter the market with rapid growth and bequeath emerge as a profitable business. market place SummaryAs described earlier, there are no close competitors in the immediate area of the food court so the market to be hind ended would be the vast market of fast-food and takeaway restaurants. luff MarketFast-food / Takeaway restaurant chainsMarket DemographicsA typical guest profile consists of geographic, demographic, and doings factors.GeographicsThe geographic target area inculcates local (e.g. Eagle boys, really pizzas), national (e.g. Noodle box) and global (McDonalds, KFC etc.) restaurant chains.DemographicsThe food court is not limited to any type of consumer/customer and is likely to favour all the students studying at Townville campus. Another factor is the cost of meals under $12. behavioral FactorsThe food court would serve the university, hospital and surrounding residential areas. The market can be expanded to the restaurant chains who see a potential market within JCU.Market NeedsThe market ask would be fulfilled by university students, staff, hospital visitors and bulk residing in residential areas. The JCU food court depart offer a handy and frugal consu mption. The restaurants that tend to be interested leave behind have a large potential market within the grounds of the university. The food court will come up with the following market attributes Convenience JCU food court will serve as a convenient option for consumers making easy for them to get to the restaurants and will be an economical place.Maintenance The food court will be well retained taking care of the surroundings areas too. guest Retention As there is little competition in the immediate area, customers are likely to retain and welcome to a place that permits bore food and service at reasonable prices. post credit While off campus, customers will recognize the brand they know from JCU Food Court, which promotes the business.Market TrendsJCU is situated in a heavy pass environment/area with students studying both onshore and offshore, hospital visitors, the army base, and residential areas. The leasing situation to five different takeaway restaurants will as semblage to the needs of a market that has not been presently met. JCU being a well-known university, the restaurants will tend to let on JCU possessions. With advent of food court, pot would seek a fair prime(prenominal) and convenient meals at reasonable prices.Market GrowthDue to market saturation, there is a strong competition in the restaurant/takeaway business. Statistics reveals that by June 2007, there were 15,423 restaurant businesses in Australia, and takeaway rates growing 18.3% respectively, making approximately $646.1m (Statistics, 2008). There will be less competition in vicinity of the food court at which puts the business on to an advantage of being profitable and will mark a rapid growth strength in market.SWOT AnalysisTo evaluate and esteem the potency and limitations, opportunities and challenges for theme court on JCU, a SWOT analysis was performed. The analysis revealed some key factors of the internal and external merchandise of JCU Food Court. Figure 1 d escribes the detailed SWOT analysis (Appendix 1).PotenciesThe University has an advantage of own land so there is no land acquire requirement.The food court will focus on offering varieties of food at cheaper deals.There will be no external competitiveness among the restaurants of the food court.Being a well established university, the restaurants will likely to be interested to be its part.Trading hours will diversify from the on-campus cafes and restaurants.LimitationsThe university has to provide resources for aliment and other tie in serve.Limited property to accommodate.Less space than regular restaurant.ProspectsThe Townsville campus is likely to have a potential expansion.More students enrolling drives the profitability of food court.Availability of set and loading area.Growth and development in other JCU campuses.Less expenses on construction and labour.ChallengesLabour hire for construction and maintenance.Economic downturn on-going at present.Future growth and devel opment of nearby shopping centres. challengerThere will be less or no competition in the immediate surroundings of the food court. The food court will be situated on Townsville campus. There will be no opposition for the food court because at present there is nevertheless Rococos Bar Restaurant and refectory offered to the students in student mall. Due to limited gap hours, they are not open on weekends. There is a limited range of restaurants in the hospital and the nearest food courts are in Willows and Stockland. Thus, the students and staff would be more directed to the JCU food court. It will be more convenient for people to walk to the food court to purchase graphic symbol meals at cheaper prices which will be economical for them. Therefore, competition will not be a major concern for businesses interested in leasing space with JCU Food Court.Product OfferingJCU will offer gauge food at reasonable prices. The food court will serve as a convenient option for people to get their meals from there. Also, it will open for business to restaurants to pursue for space in the food court. The space will accommodate a replica and kitchen. In addition, the university will provide maintenance and other janitorial services.Keys to successThe keys to success would be offering quality food, reasonable deals, and convenience to customers, delivering reapings that are user friendly and offer customer gladness at affordable prices.Critical IssuesSince JCU food court will be new to market the critical issues will be effectiveness expansion to other campuses of university.Business on a contract basis, pick out with the restaurants.Growth and expansion of business through permit sales of counter space.Marketing StrategyThe marketing strategy mainly focuses on the services provided meet changing customer needs, while still maintaining the product quality and commitment to excellence. The key marketing strategy will focus on customer satisfaction and loyalty and at the same time maintaining brand quality. Moreover, the food court will focus on the overall market segments and the associated customers. It will also concentrate on gaining a partnership with the restaurants in order to expand the business in the market while maintaining the product stability.Vision missionTo provide a means of personal satisfaction by improving its service delivery.To promote and bypass the benefits it provides to people.To provide bonus customer service by set abouting the customers a clean, comfortable and well maintained counter space at reasonable leasing prices.To expand the success of food court to other JCU campuses.Marketing ObjectivesJCU food court is concerned nearly maintaining the food quality and increasing the services so as to create a brand name, which could encourage and sustain optimistic and steady growth. The food court will be expanding its limit each year and propose the counter spaces depending on demands and needs of the customers. On ce established, JCU will introduce loyalty/value cards to offer discounts thereby increasing profit from surplus revenue. Therefore, the objective is to establish competitive superiority in target market, guarantee stable profit to customer and pursue up growth profit. monetary ObjectivesSeek to boost the profit margin by efficient use of strategies and commitment to deliver good services.To increase the profitability to 10% in three years.To repay back the loan at the earliest in order to evade the interest that downgrades the income.To maintain the sees associated with restaurants on lease.Reduce financial obligation by using less of the loan and using more funds.Target MarketsThe market of restaurant chains and takeaways business is quite out surfaced with transformation in foods and services they offer. The food court will focus on takeaway business offering food with different varieties and quality. The major target market would be the restaurants in the market that offers quality services and varieties of food at reasonable prices.The bureau of statistics Australia stated that during 2006-07, cafes, restaurants and catering businesses generated a essential income of $13,673.2m, signifying an average of $886,500 per business. The total expenses incurred during the same period were $13,108.3m and the total industry value added by these businesses was $5,695m, which represented 0.5% of Australias gross domestic product for 2006-07. During the same year, the in operation(p) profit before tax for these businesses was $576.4m and their operating profit margin was 4.2%. lieuAs JCU is a well-known and established university, the concept of introducing food court will represent as an innovative and demanding move for the convenience of people who are part of the university. Being a reputed education hub, JCU will comprehend great customer retention and will incur a palmy business in the market.Overall strategyThe main objective of JCU food Court is to cre ate awareness among customers to recognize food court as an innovator and a potential investment. The overall strategy is to provide people with best possible services and quality thereby making food court as a profitable and stable investment. The beginning phase and the upcoming growth stages will not be supportive without the lease of the potential restaurants (Kotler, Keller, Burton, 2009). Introductory phase is like a start up business (Kotler, Keller, Burton, 2009). Once the initial phase of contracts and leasing agreements are accepted and passed, growth will continue leading to maturity phase.In order to establish the business in market, the main focus will be to maintain customers, their satisfaction and potential expansion of food court to other campuses of university. Market research will be do in terms of sales, promotions, communications, advertisements and brand development. JCU will be looking for specific businesses they feel will provide variety and quality produ cts at reasonable prices for the consumers. Advertisements in newspapers and over profit will provide a rich source of information and contact details to people thereby creating awareness among them and promoting the business.Marketing Mix the CustomerFive Ps of the Marketing MixProduct Restaurants interested to spread their business and take lease with the university.Price Price includes the rent which will be based on square metre of space, restaurant pickle and other utilities. The food and related services of the restaurant would be charged as own franchise.Promotion Advertisement will be do in leading newspapers all over Queensland and over internet for lease and contracts. JCU website will incur a link for services offered by the food court.Place The food court will be located on the campus with massive free put areas on campus and short-term free parking near food court for other customers.Packaging JCU Food Court will provide healthy high quality food and a clean atmos phere. some other services include maintenance and janitorial services provided by the university.Four Cs of the CustomerCustomer Solution The business is in the immediate area of the target market with high number of consumers students and might in JCU.Customer cost The prices are cheaper and inexpensive due to size and location. Consumers are offered value/discount cards. The companies are responsible for other cost that include leasing prices, utilities, major renovation, appliances and fittings.Promotion Pros for customer Promotions will be done as advertisements provided across campus at different specified locations which will be a part of rent.Convenience The location will be convenient and suitable for the customers and will offer a large number of employments. Other considerations like maintenance and janitorial services will be provided by JCU food Court.Marketing ResearchMarketing research will focus on consumer retention, stability and satisfaction, market segments a nd the target markets. Market research would therefore include the following Consumer eating habits, student movements. Motivation for the food court began later on receiving grievances about the lack of food options within the proximity of the campus.Market take in comprise of local restaurants and cafes. Sampling will look out to gather the leasing space in food court of university.Survey consists of dichotomous, Likert scale and intention to procure questions to convert into vicenary data (Kotler, Keller, Burton, 2009).Preparation and circulation of survey by electronic mail with completion online as primary method.Students, faculty, hospital staff and other customers are all inculcated in the sampling procedure.Sampling procedure will take into account some questions to evaluate behaviour of the customers and their interest in food court. Online surveys will be available for students and staff to give their feedback on functioning and services provided by the food court. Drop box will be set up at various points within the university area and the hospital so that people can feel free to give their comments and suggestions. Results and percentages assess the interest in JCU Food Court the cost to profit monetary resource how to promote to target market narrow specific target market groups. The information from all the above mentioned sources will be compiled and computed to generate quantitative data which further will strengthen the development of frequency distributions which can be charted in order to clearly view the statistical findings and determine whether it rejects or accepts the hypothesis (Kotler, Keller, Burton, 2009).FinancialsFinancial ControlsThis discussion section will deal with some of the relevant financial situations regarding marketing the food court in the market. This section include Break even analysis, sales forecast, expense forecast and demo how these activities are related to the marketing strategy of the firm.Break E ven AnalysisThe break-even analysis indicates that as to reach break-even point the income required is $ 500,000Figure 1 Break Even AnalysisControls ProceduresJCU Food Court incurs a marketing plan to start up the business as a force for creating interest from restaurants giving the best performance by providing customers with best quality and quantity.The control procedures will take into account the initial expenses and revenues, cost of maintenance and other janitorial services, lease contract agreements, leasers and customer satisfaction.Contingency PlanningDifficulties and Risks operate down of the secondary target marketRisk of entering into saturated marketPromotional failure and lack of awareness among customersClosure of restaurants in the food courtPower outageWorst-Case RisksRisk of business failure due to lack of profits and inability to cover liabilities.Financial instability during the figure of growth phase.