BUS530 Azusa Pacific University Santa Fe Grill Marketing Proposal Marketing Proposal – Santa Fe Grill: Each week students will be adding new components to the ongoing case study. A breakdown of the work due each week follows:
Part A:
Title Page
Table of Contents
Introduction
Segmentation of customer including:
Perceptual Map
Common characteristics of customer and trend lines
Part B:
Research Methodology including
Descriptive variables
Design of hypothesis (HO and HA)
Part C:
Research Questions
Part D:
Data Analysis – present findings from statistical ANOVA
Present tables and graphs from SPSS
Develop company/corporate strategies based on the results of the ANOVA
Part E:
Compare and Contrast different statistical test (2 qualitative and 2 quantitative)
Present a discussion on why the ANOVA is best suited for this application
Limitations
Conclusion with a faith integration component
Part F:
Budget proposal
Part G:
Executive Summary including
Research objectives
Concise statement of method
Summary of key findings
Conclusion
Recommendations
Wk. 7 Submission of Final Marketing Research Proposal
Specific Details Regarding this Week’s Assignment:
1. Your paper must meet the writing standards set by APA (6th Ed.)
2. Include a completed Change Matrix* (placed immediately following the title page) regarding the changes you made to Wk. 6 Part F
3. Write an Executive Summary (this section must include the five items listed above)
4. Review the entire document before final submission
5. Submit your final paper including Parts A-G
* Student’s must address each of the notes, comments, or other feedback from the instructor previous week’s Proposal before this week’s work will be graded. Running Head: MARKETING PROPOSAL- SANTA FE GRILL
Marketing Proposal- Santa Fe Grill
Amanda McCausland
Rod Ballard
BUS530
August 11, 2019
2
Change Matrix
Instructor’s feedback (specific
How the error was addressed by
Page numbers
listing of the error)
the student.
where change
appears
Inserting tables along with graphs
Placed graphs with their respective
P. 4
tables
Change proximity of the restaurant
Changed proximity to cover
restaurants in a 20 mile radius instead
of just the mall.
P. 8
3
Table of Contents
Segmentation …………………………………………………………………………………………………………………………….. 4
Common characteristics …………………………………………………………………………………………………………. 4
Perceptual map………………………………………………………………………………………………………………………. 6
Research methodology ……………………………………………………………………………………………………………….. 7
Exploratory research ……………………………………………………………………………………………………………… 7
Qualitative research ……………………………………………………………………………………………………………….. 8
The pros and cons of the methodology …………………………………………………………………………………….. 9
In-depth interview as the data collection method …………………………………………………………………….. 9
Descriptive variables …………………………………………………………………………………………………………….. 11
Hypothesis Design ………………………………………………………………………………………………………………… 11
Questionnaire ………………………………………………………………………………………………………………………….. 11
Qualitative questions ……………………………………………………………………………………………………………. 12
Quantitative questions, (Rucker 2015) ……………………………………………………………………………………. 12
Budgeting …………………………………………………………………………………………………………………………….. 22
References ……………………………………………………………………………………………………………………………….. 25
Introduction
Santa Fe Grill was founded by two roommates about a year and a half ago. The need for
self-employment inspired the restaurant idea. The founders first came up with the plan based on
what they had learned in an entrepreneurial class. The plan demographics had to be implemented
in Dallas. However, the restaurant did not achieve an optimal outcome causing the owners to opt
for marketing research. This research aims to survey to help the owners identify the liabilities in
their plan. The main aim is to determine the factors that improve customer satisfaction and
loyalty. They will, therefore, be able to adjust their strategy. The market research will use market
segmentation. This study will generally involve a survey evaluating the traits, attitudes, and
demography of the market. The study aims to come up with better marketing techniques in terms
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of effectiveness and efficiency to increase the customer base. The selected population should
have provided expected to perform well in giving customers for the restaurant. More than half of
the population lied within a suitable age range. The community could also afford to dine at the
restaurant. The survey was comparative. It involved another dinner Jose’s southwestern café. The
study involved a sample of 400 customers. Two hundred fifty from the restaurant and 150 from
Jose’s. The customers have interviewed ant the Cumberland mall, which has a prominent brand
after they had eaten. For the employee survey questionnaires to determine their performance was
issued. The research is to be conducted by a market research company in the mall. The company
has the advantage of being able to intercept the customers as they come in. For the founders, this
survey will be an eye-opener to the restaurant’s strengths as well as weaknesses. The study is not
on the restaurant alone, and it will, therefore, provide insight into the market competition. In the
longing, the restaurant will be able to come up with more strategies to improve the performance
of the restaurant.
Segmentation
Common characteristics
The main advantage of market segmentation is that it informs on the aspects of the
customers. This method provides an upper hand when it comes to marketing in that; the owner
can personalize marketing. When you identify the needs of your targeted customer’s it leads to
satisfaction, and they can refer your business to their friend and relatives. The survey was done
on a sample of 405 customers. One hundred fifty-two were from Jose’s and 253 from the
restaurant.
The founders settled for Dallas instead of Lincoln Nebraska because the market
segmentation they had done showed that Dallas had a higher potential. The significant
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characteristics of the population in Dallas were: 50% of the 5.5 million people were between 1560 years old. This was a favorable number the restaurant required an area with families of
singles. Another characteristic of their target population is that they had a stable income. The
range of the salary was $35000 to $ 75000 annually. This voltage was for 55% of the population.
This meant that a similar percentage could afford the restaurant. This socioeconomic statistic
assured the owners a regular customer base. Another favorable characteristic was that 59% of the
population has a family setting. The table below is a summary of these socioeconomic and
demographic characteristics
Table 1.0 Demographic characteristic the community
Characteristic
Age
household type
target(18 – 50)
859968
72%
not targeted
328032
28%
Family
267000
59%
singles
148850
33%
total of target
415850
92%
653400
55%
$35000
household income
Average
target
$75000
–
population All
characteristics
643072.67 73%
Figure 1.0 Graphical representation of the target population
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Market segmentation graph
1000000
900000
800000
700000
600000
500000
400000
300000
200000
100000
0
target(18 – not targeted
50)
Family
age
singles
household type
Series1
tatal of
target
$35000 $75000
household
income
Series2
From the graph above, it is clear that the household characteristic gives the highest
population target, which is 92 percent, followed by the age which constitutes 72%, and then
income standing at 52%. From this data, the best case scenario the market could have 92% of the
population as the target. The worst and most possible scenario means the industry would have
55% of the people who can afford the meals as the target. On average the targeted population
would constitute 73% of the targeted population
Perceptual map
The perceptual map as made based on the food quality and the value in terms price of
food. These values were obtained from the values of customer reviews on the TripAdvisor
website. The Jose’s southwestern café had 1412 reviews and was ranked 17th out of 113 while
the Santa Fe Grill was ranked 112th out of the 378 restaurants in its market. From the reviews,
Jose’s southwestern café had a rating of 4.5 out of 5 in terms of quality of food and a score of 4.5
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out of 5 in terms of the value paid for the food (TripAdvisor 2019). On the other hand, Santa Fe
Grill had a rating of 4 out of 5interms of food quality and a score of 4 out of five in terms of the
price of the food.
Perceptual map
High Price
Jose’s Southwestern
Cafe
Santa Fe Grill
Low quality
High quality
Low Price
Research methodology
Exploratory research
For Santa Fe Grill, an exploratory form of research is to be used. This method is
appropriate to determine why the customers visiting the restaurant are not as much as the
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expected number. To conduct the research, a sample of customers who dine at the mall will be
interviewed. This will be compared with their competition’s reviews, Jose’s southwestern café, to
determine why the restaurant is not performing as expected and determine the difference, what
Jose’s is doing better, to improve on the quality of food and services they provide.
To effectively assess the market the respondent’s home will also have to be known to
determine if they are from far and why they would take the distance instead of dinning at their
local restaurants. The research will have a concentric radius of about 20miles. This would
include visiting restaurants in the proximity to gain insights on their customers. covering this
radius will help determine why customers would consider going there, also to determine if there
are customers near Santa Fe Grill who still dine there. This part of the research is to help the
marketing team determine the unique elements of other popular restaurants that make their
customers loyal.
Qualitative research
To get more information on the matter, qualitative research would be the most
appropriate. The company had initially used quantitative data during the start of the company.
Though the research method was more reliable, it did not help in the marketing of the company.
Qualitative research will, however, lead to personalizing the marketing strategy. Qualitative
research implies the company will be able to capture thoughts, suggestion, and general rapport
from customers. This information will, in the long run, help identify the obstacle preventing the
restaurant from reaching its desired potential. The research will exploratory, and interviews will
be conducted for a short period of around two weeks. The interview will be open-ended,
providing capacity for more information. A small sample of about 400 will be used.
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The pros and cons of the methodology
Compared to quantities research which was done earlier, qualitative research does not
support box participants into specific categories? Qualitative research allows the researcher to
have a deeper comprehension of the customers. In qualitative research, a quantitative analysis
might be used to make the results more reliable. In qualitative research, the researchers will be in
close contact with the participants. This will enable to collect more detailed data from the openended questions, and the nonverbal cues read from the participant. The researcher has to be
equipped with interpersonal communication skills to do this. The data from this form of research
is rich and can support other types of primary data. In this case, the restaurant might discover the
cultural preference of their potential customers. The analysis might reveal what Jose’s is doing in
food quality and customer service that Santa Fe Grill is not doing. This method is better because
it is quick. There is time efficiency, and data can also be collected from online conversations.
The data will provide insights into the potential customer based on their behavior. The
information is sufficient when coming up with proposals and models for marketing. The
downside is that the data is less reliable and does not bring out the magnitude of the situation.
Then the research company will perform a survey on the current staff in the restaurant. This will
provide information on the quality of customer service offered, which can be compared to the
preferred service by the customers.
In-depth interview as the data collection method
The collection method for this research will be an in-depth interview. The plan will use a
trained interviewer having a one on one interview with a participant while using structured
questions. The necessary steps of the process are; first is the researcher discusses with the
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management of the situation and the issue to be addressed. The interviewer has to have a good
understanding of the restaurant’s system to pinpoint the problem.
Secondly is developing the semi-structured questions to be used in the interview. The
question should be logical. The structure of the conversation should be general at first then
becomes more contextual towards the end. The contextual parts should address specific elements
of the problem.
The third is the environment. This will be at the mall where the two restaurants are
located. It will be an exit interview just after the customers have had their experience with the
restaurants, and this will make the information more accurate. For the sample, since the mall is a
great place, the respondents will have to be adults and should be coming from either of the two
restaurants.
Forth is the interview. The interviewer should set a relaxed environment; this would
entail the customer is aware of how the interview will be done, and the data collection
techniques, for instance, video cameras. Secondly, the interviewer must provide an introduction
of themselves and define the purpose of the interview.
The fifth is the actual interview. Here the interviewer responds to all the questions. On
completion of the interview, the interviewer will thank and debrief the respondent.
Sixth is the analysis of the information collected. This includes classifying the data and
identifying new and outlying information. Lastly, the interviewer will provide a summary of the
research process.
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Descriptive variables
In the research, the standard explanatory variables include; the size of the individual, the
quantity of food they consumed, and people in his household, area of residence, and area of
occupation.
Hypothesis Design
Null hypothesis- Changing the restaurant’s customer service to match the Texas culture and
Norms will have no impact on marketing.
The alternative hypothesis- Changing the restaurant’s customer service to match the Texas
culture and Norms will have an impact on marketing.
Questionnaire
During research one of the most significant process is the survey. The research will use
questionnaires as a source of data. The main objective of the survey is to learn more about the
target population in order to come up with better marketing models that would guarantee
success. The research will have both qualitative and quantitative methods. The quantitative
questions will provide descriptive data. For instance the most preferred restaurant, the often
taken meals and other statistical information, (Epstein, 2019). These questions will provide data
which when analyzed will help the management determine their cut in the market and the overall
target population.
Qualitative questions in the research will provide more insights. The questions are open
ended and will represent the reason behind the quantitative data. This part of the research will
give the management information on where the competition is beating them and the current trend
in the business, (Epstein 2019). This part will also have recommendations that the management
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could improve on. The data from this part will not be analyzed for efficiency and will only serve
to answer the ‘why’. The following are the questions to be included in the questionnaire.
Qualitative questions
How would feel if Santa Fe Grill start making your favorite dishes?
How would you describe the service provided at your preferred restaurant?
What recommendations would you give to improve on the service provided?
What are the main reasons for your preferred restaurant?
Why have not been dinning at the other restaurant as frequent as the other?
What do you feel about the staff at Santa Fe Grill?
Describe the best experience at Santa FE Grill?
How would you feel if Santa Fe Grill adapted a similar environment setting to Jose’s café?
(Fieldboom 2019)
Quantitative questions, (Rucker 2015)
Which restaurant between Santa Fe Grill and Jose’s dinner do you prefer?
How many times have you recommended the restaurant?
What is your alternative for this restaurant?
What are your top favorite dishes at these restaurants?
Which meals do you commonly take at the restaurant?
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What is the comparison between the price of the service and the quality delivered, is the service
worth it?
How many times have you dinned at the other restaurant?
Do you find the environment at Santa Fe Grill comfortable?
What changes would you make to the menu if you were the manager at Santa Fe Grill?
Would you dine at Santa Fe Grill if the prices were discounted?
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Data Analysis and Findings
The findings of this project are displayed below
The t test above analyzes variables which describe the restaurant. The values are greater
than .05 therefore becoming significant. A higher Mean difference in the restaurants for
x21 ‘Speed of Service’x18 ‘Excellent Food Taste’ and x15 ‘Fresh Food’. The aspects
highlighted enable the customers to come back again therefore, Jose needs to improve on
these services and enhance employee productivity.
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The biggest factor to make customers return was the quality of food. In the case
above, correlation significance is 0.01 while significance between the two is 000
therefore the likeness of the customers to return is high. The quality of food must be
improved further to make the customers return daily.
The comparisons between competitors as shown above indicate that the likeness of
customers returning is high at the Southwestern Café compared to Santa Fe Grill. The
southern café has a mean of 5.18 depicting the high likeness of the customers coming
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back compared to 4.28 mean by Santa Fe Grill customers. Santa Fe Grill management
should work out more on customer satisfaction. Despite having high number of
customers, the return rate is low because of the services the customers received.
The table above displays the lifestyle attributes of customers between the two
cafes. The report clearly indicates the customers who dine at Jose are flexible with
introduction of new foods in the café. The customers seem to like visiting Jose’s because
of this attribute. Therefore, the report reveals that Jose changes food products regularly
which are a key factor in attracting more customers.
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Southwestern Café has the highest customer satisfaction and this indicates the services
provided are quality and the food served is satisfying. Despite this research results, Santa Fe
Grill has loyal customers who visit daily. To attract more customers, Santa Fe Grill will have to
introduce new products in their menu, and also compare the foods and services provided by
Jose’s Southern Café to instill competitiveness.
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Statistical tests
Quantitative research is done using numerical values to represent the mathematical
analysis of a project. On the other hand, qualitative research involves use of observation, pictures
and photographs. Qualitative research allows the researcher to have a deeper comprehension of
the customers. In qualitative research, a quantitative analysis might be used to make the results
more reliable. In qualitative research, the researchers will be in close contact with the
participants. This will enable to collect more detailed data from the open-ended questions, and
the nonverbal cues read from the participant. The researcher has to be equipped with
interpersonal communication skills to do this. Sources of qualitative research include interviews,
focus groups, postcards, written accounts of past events and observation. Additionally,
quantitative research sources include surveys, observations and company data accounts. Statistic
comparisons give a clear view of the population about a given product and are determined by
variables, measurement and paramedic /…
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