Principles of Marketing

MKTG 1012
December 22, 2017
Professor C. Piper

‘WICH CRAFTS AYMEN AL AM

TAYLOR SCOTT
FINAL MARKETING PROJECT WYATT STONE
NATHAN WATTS-BARNHOUSE
 ‘WICH CRAFTS

TABLE OF CONTENTS
1. INTRODUCTION

2. SWOT ANALYSIS

3. COMPETITVE ANALYSIS

4. CUSTOMER SEGMENTATION ANALYSIS

5. TARGET MARKET SELECTION

6. ‘WICH CRAFTS’ MISSION STATEMENT AND OBJECTIVES

7. PRODUCT and MENU

8. PRICING

9. OTHER FIGURES
 ‘WICH CRAFTS

WHAT IS ‘WICH CRAFTS?

‘Wich Crafts will be an upscale sandwich restaurant located in Masonville. The restaurant will be
in Masonville due to the close proximity of two retirement homes and the largest shopping mall
in London Ontario. With two retirement homes so close the restaurant, we will bring in many
seniors, and with Western University close by it will attract plenty of students. ‘Wich Craft is a
new restaurant featuring classic soup and sandwich combinations as well as a variety of new and
unique sandwich combination catering to seniors as well as students.

Address: 1737 Richmond St, London, ON N5X 3Y2

‘WICH CRAFTs
 ‘WICH CRAFTS

SWOT ANALYSIS
OUR RESTAURANT
STRENGTHS • Unique / wide variety on menu
• Competitive pricing
• Great value
• We offer breakfast, lunch, and dinner
• Casual and comfortable environment
• Our location is on the corner of a busy
intersection
• Our location has a patio for outdoor dining
in the warmer months
• Plenty of parking
• Close to the Masonville bus terminal for
access to public transportation

WEAKNESSES • Lots of competition

• We don’t appeal to people seeking a
refined dining experience
• We will need to build up a lot of brand
loyalty for our restaurant to succeed in this
market

OPPORTUNITIES • Mostly big franchises for competition

• Our restaurant is new and interesting
• Very few breakfast restaurants in the
Masonville area
• Breakfast restaurants are appealing to the
older crowd in the Masonville area
• Our menu has lots of different sandwiches
that no other place has in the area
• Our unique menu items will attract
students who want to try new things

THREATS • Richie’s Family Restaurant is very

affordable, family friendly, and well known
in the area
• Pita Pit has built up brand loyalty in the
area
• The Great Canadian Bagel bakes all their
food items in store
• Well known franchises tend to be families
first choice when going out for dinner.
Comfortable, well known, and reliable
 ‘WICH CRAFTS
COMPETITVE ANALYSIS
Company A
Factors
Name: Pita Pit
Pita Pits products include
Product – Number of 26 unique pitas with
product/service/offerin plenty of free toppings, 6
gs /mix/width different smoothies, as
well as a kid’s menu.
Product quality –
facility/experienced
Product quality includes
staff/organic
fresh vegetables, Lean
certification/food safety
grilled meats, and a
inspection approval/
health oriented menu.
on-sight bakery/
product freshness
Customer services include
Customer Services –
take-out as well as eat in.
amenities take-out, eat-
Pita’s are made to
in, delivery, special
customer specifications.
order, patio, catering
Pita pit offers catering.
The menu includes
Current trends in
current trending options
gluten-free/ancient
including vegan subs,
grains/new product
gluten free bread, and
introduction
fresh smoothies.
Prices range from $5.05
for small classic pitas to
$7.75 for regular
Price – Sample pricing
premium pitas. Extra
meat and cheese ranges
from $0.99 to $2.65.
Pricing Strategy – Pita Pits pricing strategy is
Skimming/Penetration/ penetration pricing and
Status Quo/Pricing their pricing tactic is price
tactics bundling.
Company B
Name: The Great Canadian
Bagel
Great Canadian Bagels
products include 24
different bagels, 21
different types of cream
cheese as well as a variety
of meats and other
toppings.
Product quality includes
daily fresh baked bagels on
site, cream cheese spreads
made on site, all bagels are
made all natural with no
preservatives or additives
as well as only name brand
products in their recipes.
Customer services include
take out and eat in options.
Bagels can be made to
order or chosen off the
menu. Great Canadian
Bagels also offers catering.
The menu includes current
trending options including
all-natural ingredients and
no additives or
preservatives.
Prices range from $4 to $10
depending on the bagel as
well as the toppings.
The pricing strategy used is
Status-Quo pricing and
their pricing tactics are
price bundling.
Company C
Name: Richie’s
Richie’s offers a wide variety of
food options for dinner, lunch,
and breakfast. They also offer a
family friendly atmosphere and
an “old school” restaurant feel.
Product quality is fresh
homemade hot meals. A great
family friendly setting with a
relaxed classic setting.
Customer services include
Takeaway, Table service, Walk-
ins welcome, Catering, and
Great for children.
Richie’s is an old-fashioned
restaurant what it lacks in
current trends it makes up for
in old-fashioned homemade hot
meals
Entrées range from $15-$25
depending on the entrée and
specials.
The pricing strategy used by
Richie’s restaurant is status quo
pricing.

Factors
Place – Established in
community/Ontario/Canada
- years
Desirable company location
- transit route/main
roads/congestion
Availability – hours of
operation
Number of locations –
London/Ontario/Canada
Promotion – IMC Current
events or sales promotion
Creativity – Company
slogan
Public Relations efforts in
the community
Brand perception of the
company – feel of the
website/your observations
‘WICH CRAFTS
Company A
Name: Pita Pit
Established in Kingston,
Ontario Canada in 1995.
Located right next to a bus
stop and a major
intersection. As well the
location is in the Hylands
Center shopping mall.
Monday-Saturday: 10am-
10pm
Sunday: 11am–7pm
7 locations in London
140 locations in Ontario
256 locations in Canada.
Sales promotion includes
rewards cards, School
Lunch Programs, every gift
card purchased this
December Pita Pit donates
$1 to the Breakfast Club of
Canada.
“Fresh Thinking – Healthy
Eating”
Pita Pit offers healthy
school lunch programs.
Family friendly, fresh take
on fast food, and good
quality for a fair price.
Company B
Company C
Name: The Great
Name: Richie’s
Canadian Bagel
Established in London,
Established in Toronto,
Ontario Canada
Ontario Canada in 1993.
In 1956.
Located right next to a Located right next to a bus
bus stop and a major stop and a major
intersection. As well the intersection. As well the
location is in the Hylands location is in the Hylands
Center shopping mall. Center shopping mall.
Monday-Saturday: Monday-Saturday: 7am-
6:30am-8pm 9pm
Sunday: 7:30am–6pm Sunday: 8am–3pm
2 locations in London 1 location in London
15 locations in Ontario 1 location in Ontario
23 locations in Canada 1 location in Canada
Sales promotion includes
“the bagel club” and “the
birthday club” rewards Sales promotion right now
programs and on is Christmas specials on the
Wednesdays if you menu.
purchase a dozen bagels
a $1 discount is applied.
The Great Canadian
Classic "old school" Family
Bagel doesn’t have a
Diner.
company slogan
Public relations efforts in
the community are
abundant Richie’s has been
No Public relations
deeply embedded into the
efforts present in the
community for the last 61
community.
years throwing events
including barbeques and
hosting radio stations.
The perception of the Brand
and the Company is it’s fair
Fresh bagels and
priced and has fresh home-
toppings, good quality
cooked meals as well as an
and patriotic.
old-fashioned feel and
quality.
 ‘WICH CRAFTS
Pita pit advertises on
social media sites
Advertising- media choices
including Facebook as well
as Instagram.
Pita Pit has a strong brand
name especially in Ontario
as it was established
there. They have
competitive pricing and
In a brief summary list fresh product. This will
what each company’s impact our product
sustainable competitive offering because we will
advantages are? have to have similar
How will this impact your pricing but for better
product offering? quality food. As well we
will have to build a brand
name in London to
compare to the brand
loyalty they have built
over the years.
The Great Canadian
Bagel advertises on
Richie’s advertises on
social media sites
Facebook alone.
including Facebook as
well as Instagram.
The Great Canadian
Bagel has a fairly strong
brand name across
Richie’s competitive
Canada considering how
advantages are its fresh
patriotic the company is.
home-cooked quality meals
Their product is fresh
and its brand recognition in
and hand baked and
the London area from 60
made instore with all
years of serving the London
premium natural
area. This will impact our
ingredients with no
offering because we will
preservatives or
have to offer competitive
additives. This will affect
pricing to compare with 60
our product offering
years’ worth of a loyal
because we will need to
customer base.
bring equally fresh and
quality products at a fair
price.
 ‘WICH CRAFTS

CUSTOMER SEGMENTATION ANALYSIS

We decided to research specific targets by picking four consumer profiles to analyze. The
four that were decided were seniors, which wasn’t originally in Tina’s research, students, young
families, and late established adults. In London, Ontario there are 115,365 citizens over the age
of 60. This was a large market that was unrecognized by Tina’s original data. This generation –
the Baby Boomers have generous amounts of free time and crave a quaint, comfortable social
environment. Many people this age want to sit down and eat breakfast and have coffee or lunch
while talking with their partners or friends. To satisfy this market we would need to create a
menu that focuses on hearty, classic meals that offer good value for the pricing. Service will be
very important to seniors, they want polite, chatty and friendly customer service. To gain their
repeat business and keep them satisfied, we would offer classic menu items such as tomato soup.
Repeat business is very important to us, especially if we capture the hearts of the Baby Boomers’.
To encourage this, we have created ‘WICH CRAFTS Sandwich Club Memberships. These are cards
that can be shown anytime during their visit and they can receive 15% off their purchase by being
60 years of age or older. Our restaurant is located between two established retirement homes in
the Masonville area.

The second profile we analyzed was students. During the academic year, London is home
to approximately 30,000 full time Western students and 16,000 Fanshawe students. Our location
is 3km away from Western University, and a short 8-minute bus ride (according to google maps
and LTC). Fanshawe students are not close in proximity to our location, but Masonville Mall brings
lots of student traffic into the Masonville area. Aside from external student traffic, London also
has a population of 36,275 citizens ages 19-24 who fall into our “student” profile. “Generation Z”
are busy students and young individuals who spend a lot of their disposable income on dining
out and entertainment expenses. According to Tina’s consumer research, each student adds
$4000 in spending, with $880 allocated to dining. Student’s live a busy, on-the-go lifestyle and
often are interested in food with delivery options. Students are reluctant to cook meals and often
eat out. By pricing our food at reasonable prices for good value and offer take-out or delivery
options, our restaurant can offer tasty convenient food to students. Partnering up with justeat.ca,
a food delivery service for our area may increase sales and repeat customers. As students are
usually dependent on public transportation, our location is located across from the major bus
terminal at Masonville Mall, making it easily accessible. Another way to encourage repeat
 ‘WICH CRAFTS

customers is offering our ‘WICH CRAFTS Sandwich Club Memberships to students, to receive 15%
off their purchase. Having usage rate membership cards may increase returning business. To
satisfy their dining needs, we would offer sandwiches and soups that have unique and interesting
flavours at good prices. We would also have fast service, but an environment that allows big
groups to socialize.

The third group we analyzed are “young families”. In London, Ontario there are 31,990
citizens aged 29-34. Not all of these individuals have families but those who are married with
young children have busy lifestyles whereas many are dual-income families. Although Tina’s
research explains that the major centers for this group are Hyde Park, Hamilton Road and White
Oaks, there are 4 public and Catholic elementary schools located around our restaurant’s
location. Masonville Public School, Stoneybrook Public School, Jack Chambers Public School and
St. Catherine of Siena Catholic Elementary School are located in the four neighbourhoods
surrounding ‘Wich Crafts. The average married couple in London makes $89,230 annually for
dual-income families and $42,670 for single parent families. These young parents seek healthy
alternatives for their children when living a busy lifestyle. They seek a family friendly environment
and speedy, friendly service. Our restaurant would have to be kid friendly and accommodate
families to win over the parents. A winning combination would be well priced, nurturing food
with fresh ingredients that can be made quickly. A child version of our menu may offer “half
sandwiches”, a smaller portion of our classic sandwiches that come with a healthy side. In this
area, there are lots of fast food options, so making ours competitively priced for the value and
make food available for take-out is an important choice to satisfy the needs to a young family.

The final group, are late established adults. This profile is composed of adults 49-59. In
London, 73,505 of its citizens are between that age group. In Tina’s research, she suggests that
many “Generation X” adults live in the Masonville area. These people have more established
careers and have higher incomes. What makes this group attractive is that they have more free
time now that they don’t have dependent children. The drawback is that they enjoy more refined
fine dining experiences. ‘Wich Crafts’ food is not sophisticated in design but it is sophisticated in
flavour and taste which may appeal for an on the go alternative or breakfast and lunch options.
Most of the restaurants in this area are quick service or casual, but majority of these chain
restaurants lack the unique appeal of a stand-alone luxury sandwich bistro. Fine dining
restaurants such as the Keg across the street are open much later in the day and do not cater
interesting flavorful foods before 3-4pm. This allows us to take advantage of the lunch crowd
that does not want to spend their money on fast food.

TARGET MARKET

Considering the nature of our restaurant and segmentation bases, we have chosen to
focus marketing efforts on two group profiles: seniors and students. Although these two groups
seem conflicting of each other, these groups can be satisfied the best. The nature of our
restaurant is a comfortable, casual restaurant with casual food – but sophisticated flavors.
Because our restaurant’s menu focuses on sandwiches, soups, sides, these groups benefit the
most from what we offer. Seniors will be more likely to sit, enjoy service and the comfortable
 ‘WICH CRAFTS

atmosphere. Students will stop in for lunches and may be more likely to take food to-go or have
it delivered. The menu can consist of more daring creations and comforting home-style options
that cater to both market’s needs. In Tina’s research, she claims restaurant operating costs could
be offset by revenue and traffic during the lunch hours. In her research, she found that Western
University is one of the top employers in London and has roughly 3,500 employees that may be
catered to lunch options. The Schulich School of Medicine and Dentistry is even closer to the
Masonville area with few options around it, while the Masonville area is a quick car or bus ride
away. The Schulich School has approximately 1500 employees. Although our target markets are
seniors and students we can expect traffic from other segments as the restaurant opens.

‘WICH CRAFTS’ MISSION STATEMENT AND OBJECTIVES

‘Wich Crafts mission is to provide fresh and unique meals at a fair price. ‘Wich Crafts will service
the Masonville-London area with great customer service and a smile. Combining great value,
great food and great customer service together.

• Provide the freshest product and unique flavour experience in the Masonville area
• Increase our market share by 5% over this fiscal year
• Provide the best customer service and casual dining experience in the Masonville area

PRICING

‘Wich Crafts will be using a penetration pricing strategy to break into the Masonville
market because of the low prices that Pita Pit and The Great Canadian Bagel charge. This will
cause the restaurant to reach a larger fraction of the market in less time, with great service and
low prices customers will recommend the restaurant to other potential customers. ‘Wich Craft
will team penetration pricing along side price bundling offering a sandwich and soup combo this
demonstrates great value for a great price. Using price bundling and penetration pricing together
will gather the attention of students and seniors, because students are always seeking out great
value at a great price. While seniors are more likely to try a new restaurant if the pricing is lower
than the competitors. Therefore, using the penetration and price bundling strategies ‘Wich Craft
will quickly gain market share and with the great quality food and service will hold that market
share.
 ‘WICH CRAFTS

MENU AND PRODUCTS

‘WICH CRAFTS
 ‘WICH CRAFTS

USAGE RATE
 ‘WICH CRAFTS

INTERIOR
 ‘WICH CRAFTS

SOURCES CITED

Canada, G. O. (2017, July 12). Median total income, by family type, by census metropolitan area
(All census families). Retrieved December 21, 2017, from http://www.statcan.gc.ca/tables-
tableaux/sum-som/l01/cst01/famil107a-eng.htm

Census Profile, 2016 Census London [Census metropolitan area], Ontario and Ontario
[Province]. (2016, November 16). Retrieved December 20, 2017, from
http://www12.statcan.gc.ca/census-recensement/2016/dp-
pd/prof/details/page.cfm?Lang=E&Geo1=CMACA&Code1=555&Geo2=PR&Code2=35&Data=Co
unt&SearchText=N5X4L2&SearchType=Begins&SearchPR=01&B1=All&TABID=2#map-popup

Generations x, y, z and the others. (n.d.). Retrieved December 19, 2017, from
http://socialmarketing.org/archives/generations-xy-z-and-the-others/

The great canadian bagel, ltd. (n.d.). Retrieved December 18, 2017, from
http://greatcanadianbagel.com/

Pita pit canada - fresh thinking, healthy eating. (n.d.). Retrieved December 18, 2017, from
https://pitapit.ca/

Richies family restaurant. (n.d.). Retrieved December 18, 2017, from

https://www.facebook.com/RichiesFamilyRestaurant/