Sigmund's Gourmet Pasta
Strategy and Implementation Summary
Sigmund’s will leverage their two competitive advantages, superior product and industry benchmarked customer service to build a loyal customer base.
5.1 Competitive Edge
Sigmund’s competitive edge is quite simple – superior product and superior service.
- Product: the product will have the freshest ingredients including homemade pasta, imported cheeses, organic vegetables and top-shelf meats. The product will also be developed to enhance presentation, everything will be aesthetically pleasing.
- Service: customer service will be the priority. All employees will ensure that the customers are having the most pleasant dining experience. All employees will go through an extensive training program and only experienced people will be hired.
Sigmund’s will have several milestones:
- Business plan completion. This will be done as a roadmap for the organization. This will be an indispensable tool for the ongoing performance and improvement of the company. The business plan will be also used for raising capital.
- Set up of the restaurant.
- Opening of the second store.
|Milestone||Start Date||End Date||Budget||Manager||Department|
|Business plan completion||1/1/2001||2/1/2001||$0||Kevin||Marketing|
|Set up of the restaurant||1/1/2001||3/1/2001||$162,900||All||Department|
|Opening of the second store||6/1/2004||6/30/2004||$100,000||Kevin and Erika||Department|
5.3 Marketing Strategy
Sigmund’s Gourmet Pasta’s advertising budget is very limited, so the advertising program is simple. Sigmund’s will do direct mail, banner ads, and inserts, with inserts in the Register-Guard likely to be the most successful of the campaigns.
Lastly, Sigmund’s will leverage personal relationships to get an article about the opening of Sigmund’s in the Register-Guard business section. Previously, friends who have had their restaurant featured in the Register-Guard have seen a dramatic increase of sales immediately after the article was published.
5.4 Sales Strategy
The sales strategy will be to allow people to try the superior product and service for themselves. In essence, the product will speak for itself. The marketing campaign will attract people into Sigmund’s and the sales strategy will be to let people experience Sigmund’s, this will be sufficient to turn the person into a long-term customer.
5.4.1 Sales Forecast
The first two months will be used to get the restaurant up and running. By month three things will get a bit busier. Sales will gradually increase, and by the end of the first year we will be running at 2/3 capacity. We will approach full capacity in year two (full capacity for a restaurant being 90% full), and the introduction of new, higher price-point items in the third year accounts for that year’s increase.
|Year 1||Year 2||Year 3|
|Direct Cost of Sales||Year 1||Year 2||Year 3|
|Subtotal Direct Cost of Sales||$125,737||$318,286||$346,773|