Abstract / Introduction
The demand for wine and related products is continuing to increase. This is resulting in more producers and establishments offering various services and merchandise. In the future, this demand will lead to rising profit margins.
The wine and cheese restaurant could reach out to new cliental. However, Richmond is growing and it might not be able to sustain these establishments. This study is seeking to see if it is economically viable.
The literature review is showing that demand for these products and establishments are increasing. According to Ruttenberg (2013), this is indicating a shift in the long term trends. In the future, this will result in an increase in demand for many years to come. (Ruttenberg, 2013)
The methodology will focus on using the quantitative approach. This is when there is an emphasis on the other sources and the underlying trends that were identified.
These areas will offer specific insights which will show that the firm is economically viable. This is based upon the shifting demographics in Richmond and increasing demand for wine related products.
The wine and cheese restaurant will reach out to a new cliental of affluent in Richmond. This is because of more people relocating to the area, its close proximity to Washington DC and rising demand for these products. If this establishment is opened, it will reach out to a new demographic of customers in the long term.
Clearly, the wine and cheese restaurant will realize long term profitability from changing demand. This will lead to the firm reaching out a new segment of cliental and helping to build upon many established traditions in the area. In the future, this will meet these changing needs of affluent and wealthy.
Physical Product, Service, or System
This is a physical product and service which is sold to a large demographic of customers.
Who is your target market (Ideal Customer)? (Define the people who come to Wine & Restaurant)
The people who will come to the restaurant will be individuals who are from affluent, wealthy, well-educated backgrounds and specific age groups (most notably: middle aged to older segments). At the same time, different racial groups and nationalities will be cliental of the business. These include: Caucasians, African Americans, Asians and Hispanics. The ideal customers are professionals and will visit the location as a part of the passion they have for wine and cheese.
Where you going to put Wine & Cheese Restaurant?
The restaurant is located in downtown Richmond. This is the business district for the city and affluent cliental frequent similar kinds of establishments. Moreover, the property is situated on a main artery and is easily accessible. There is lots of off street parking available for customers. Valet parking is available at the front of the restaurant.
Where do you get your wine and cheese from?
The wine and cheese will be purchased from different whole sellers. For example, Specialty Beverage of Virginia could be used to buy beer and wine within close proximity of the restaurant. They have a reputation for quality and offer large volume discounts. In the case of cheese and other food products, Howard Creek and Sysco were selected. This is because both firms have operations in the area and the lowest prices available. They also work with a number of established restaurants and microbrewers in the region. (“Howards Creek Distributor,” 2013) (“Specialty Beverage of Virginia,” 2013)
SWOT analysis? What are your Strengths, Weaknesses, Opportunities, and Threats?
The strengths are that Richmond has similar restaurants and bars which cater to the firm’s ideal customers. This means that there is tremendous demand for these services. The weaknesses are the lingering levels of high unemployment could undermine discretionary spending. The opportunities are the number of new families from affluent backgrounds moving into the area. The threats are other establishments could open in the next 20 years and slowly eat away at the company’s profit margins. (Ruttenberg, 2013)
Executive summary about Wine & Cheese
The firm will sell an assortment of wine, cheese, beer, food, deserts and soda. The demand for wine has been continuing to increase. This is resulting in more production and a larger number of firms specializing in these areas. The basic strategy the team should embrace is having superior customer service and knowledge about different products. At the same time, there needs to be an emphasis on quality tasting foods / beverages and an atmosphere which makes everyone comfortable. There are a number of restaurants that will be competitors of the company. The most notable include: the Bamboo Garden, Pedro & Vinnie’s, the Tarara Winery and Gillie’s. Each one of these restaurants serves a variety of foods; they are affordably priced and have a unique atmosphere.
Marketing Strategies: Think about the strengths, what Wine & Cheese Restaurant goals are and what strategies do they have?
The strengths of the firm are it will reach out to a unique demographic of cliental. The goals are to create a unique following of cliental, open other locations in the area and to give something back to the community through responsible practices. The strategies they are using will focus on building a following via: word of mouth, social networking and their reputation for quality.
What types of media should they take for marketing?
The firm will be promoted through online adverting and untraditional marketing strategies. This involves sponsoring various events, using social networking and encouraging clients to bring their friends / family with them.
A menu with prices from different competitors
The prices for wines at the Tarara Winery will range from $15.00 to $300.00. While the various food products (such as: cheese) will start at $5.00 and go up to $40.00. These areas are indicating how there is demand for a host of products and services. (“Tarara Winery,” 2013).
Rationale for capstone/ Strategies towards Advanced level Business Operations
Having established a stable begging with all requirements in terms of resources and structures in place, the business (Wine and Cheese Restaurant) must take initiatives towards improved market operations. This implies that business widen it knowledge of the market through effective strategies like competitive analysis, accurate finance management, necessary cross functional alignments and accurate selection tactics build a successful and focused restaurant ready for going concern operation basis (Thenmozhi, n.d.). Capstone business simulation or high level advancement exposes the entrepreneur to complex and rapid business change scenario which requires accurate application of important business elements like modeling, accurate analysis and evaluation of situations and important strategic planning (Kaplan, Norton & Barrows, 2008).
The firm will be operating in one of the most competitive industries due to the fast movement nature of its products. This implies that there are many wine and cheese restaurants thus compelling the firm to be more strategic with it planning in order to enjoy the much market success. The step towards the success of this wine and cheese restaurant must involve good marketing mix. In this case the success of the restaurant will be based or depend on how its management brings out issues of price, product, positioning and place. While incorporating the marketing mix aspect into restaurants management, the management must also deploy accurate application of market segmentation on right basis so as to capture viable markets.
Although the restaurant will not be the manufacturer of all its products, the management must finds ways of handling its products in a way that leads to success. Being a restaurant, the firm must take not of the fact that service is also one of products or stronger selling hence the need for quality on both the product and general restaurant services. Quality refers to measure of brilliance or a state of being free from insufficiencies, defects, and significant disparities. It can is also defined as the fitness of purpose of a product or service provided by an organization or an individual. In the delivery of services and production of commodities in organizations that are in business like restaurant, quality is very crucial in their operations since it is the backbone of their existence (Goetsch & Davis, 2013). Based on this, the restaurant must plan for first services and home deliveries for uniqueness with regards to quality. The firm must make sure it prices conform or much the services and products offered. By doing all these firm shall have achieved the positioning element in the minds of its customers.
Anticipated benefit to my professional growth
The entire capstone research has massive benefits leading to professional growth or development. From a business establishment and development point, capstone research creates better understanding on how to move a business to advanced levels. This presents a professional with a golden opportunity to learn and take note of the important analysis and strategies needed for advanced or unique business operations. From this kind research a professional gets to the companies should not be left to operate on initial strategies or starting strategies without any adjustment. In conclusion the professional benefits of this research are based around mentoring guiding professionals on how to guide businesses to success taking into consideration various market conditions like competition and consumer behavior decisions.
Implications/Significance of My Capstone Research
This research has numerous benefits towards the success of this firm if implemented accurately. The starting of its significance is helping the management get clear understanding of the market of operation. In addition to that the capstone is an eye opener to the management, making them realize the need to make advanced step after firm establishment. However, these advanced steps according the research must involve accurate strategic planning and competitive analysis.
Restaurant business is one of fastest growing businesses if well managed. However, most restaurants have failed to pick in terms of sales and general business growth due to lack of capstone business simulations. Due to this, a research on this will help restaurant owner rise towards advanced business so as attain the much needed business growth.
- Goetsch, D. L., & Davis, S. (2013). Quality management for organizational excellence: Introduction to total quality. Boston: Pearson
- Howards Creek Distributor. (2013). Howards Creek. Retrieved from: http://www.howardscreek.com/distributors
- Kaplan, R.S., Norton, D. P. & Barrows, E.A. (2008). Developing the Strategy: Vision, Value Gaps and Analysis. Retrieved on June 25, 2013 from http://www.exed.hbs.edu/assets/Documents/developing-strategy.pdf
- Ruttenberg, R. (2013). World Wine Production Seen at 7 Year High. Bloomberg. Retrieved from: http://www.bloomberg.com/news/2013-10-28/world-wine-production-seen-at-7-year-high-on-spain-and-argentina.html
- Specialty Beverage of Virginia. (2013). Great Brewers. Retrieved from: http://greatbrewers.com/specialty-beverage-virginia
- Tarara Winery. (2013). Tarara. Retrieved from: http://www.tarara.com/scripts/wineList.cfm?group=9
- Thenmozhi, M. (n.d.). Types of Strategies. Retrieved on June 25, 2013 from http://www.nptel.iitm.ac.in/courses/IIT-MADRAS/Management_Science_I/slides/9_6s.pdf