Pricing Strategy
Wood Bay Restaurant & Bar pricing strategy will take the following factors into account:
1. Fixed and variable costs.
2. Competition
3. Company objectives
4. Proposed positioning strategies.
5. Target group and willingness to pay
The pricing strategy will be a competition based strategy. It will attempt to match the pricing of its closest competitors and differentiate itself by offering unique products, ambience and service. However, while the pricing strategy is designed to generate a 62.5% profit margin on food and a 100% profit margin on beverage, its pricing strategy will be that of Competition Pricing, with the prices set being comparable to its major competitors.
Promotion Strategy
The business will be promoted in various ways including:
? Signage – as the location is in the heart of the entertainment area, signage will result in self-advertising to a captive market. Previous restaurant Charthouse will be an automatic sell because it was well establish and well-know.
? Advertising – a mix of media will be utilized to generate awareness and demand including:
? Radio – for local clientele during news times and morning and evening rush hour.
? Television – local television stations to attract locals, and the Visitor Channel targeted at tourists.
? Print – hotel guides and tourist publications. Also flyers for distribution in key locations such as the marina, stand-alone bars, malls.
? Online – popular news sites such as St. Lucia News Online and electronic publications such as Caribbean Business Report.
? Direct sales
? Eblasts
? Flyer distribution to offices, on vehicles, and in key places where the public congregate such as malls and banks.
? Point of sale – A well-trained staff will focus on enhancing the customers’ overall experience. The hope is that our service quality and the excellent quality of our menu offerings will generate word-of-mouth referrals, which are very important in building a customer base.
? Online – establishing a presence via a website, social media pages, and write-ups in popular travel blog
? Incentives to key partners – to generate word of mouth advertising
? Promotions – these include social media promotions, seasonal promotions and value specials
? Events and entertainment – hosting of live bands and ancillary entertainment such as wood sculptures, during peak dining periods and in keeping with the national calendar of events.
Marketing Programs
Promotions
Friday after Work Lime
In addition to the existing 6 to 7 pm Happy Hour, Wood Bay can get extra special on Fridays with more music, even a live band and specials for office groups of five or more who come to lime together. The car-park can be lit and that open-air barbeque feeling recreated with roasted fish, lambie, ribs etc.
This will be promoted via:
? Facebook
? E-blasts
? Flyer car drops
? Word of mouth, repeat customers is one of our main goals.
Pictures from the Friday Night Lime must always keep the Facebook site refreshed and interest up.
Date Night Saturdays
Get a babysitter and come enjoy an adult evening out with a complimentary glass of bubbly on arrival and a dinner special of $xxx.00 for a two course meal for two. Live romantic music will be playing and dancing is encouraged.
Advertising and promotions will be done using:
? Reminder Radios on Friday
? Giveaway Dates on Facebook
Sunday Roast
This is a feel-good, family event for a Sunday afternoon and perfect for visitors and locals alike. A sumptuous Sunday Lunch with traditional pot roast and what makes it special is that part of the proceeds go to a Feed the Poor Charity. It will make people feel good while eating good food with family and friends. Perfect for after church gatherings.
Promotion of Sunday Roast will be via
? Radio adverts on Religious Stations
? Counter with money raised from the Sunday Roast on Facebook
$30.00 Lunch Buffet Monday to Friday
Wood Bay can have a flat priced lunch buffet that is perfect for working professionals in the North. The buffet has a set start and end time and includes an appetizer, main course, dessert and drink. We can get the word out via:
? Facebook
? E-blasts
? Flyer card
Social Media Promotions
Food Selfies – once a month
We want people who are enjoying the food at Wood Bay to share the experience and snapping a picture of food or eating while dining out is a popular thing among young foodies. We will have a competition on Facebook every month for the most appetizing and amusing picture of someone enjoying the food at Wood Bay. The winner gets to come and dine again for free.
TGIF- every week
The Friday after Work Lime has to become THE place to see and be seen among working professionals. We want groups from offices to come and lime together and everybody bringing the most energy and fun to the lime. The group to post up the wildest and funniest pics from their Wood Bay TGIF Lime on Facebook will win complimentary drinks for the next TGIF Lime.
Saturday Date Night Giveaways – once a month
For married and common law couples only, this is a chance to win a Wood Bay Date Night. Just write down why you and your hubby deserve a break and a little chance to romance.
Seasonal Promotions
LOBSTER DECADENCE!
This has to become an annual and highly anticipated event at Wood Bay from September to April (Lobster Season) with specials on lobster and new lobster dishes to try. The other weekly activities can be used as a means to promote the special season as well, with lobster being offered at TGIF limes but the season should have its own promotional material.
? Facebook Timeline Photo ; Special Offer
? Radio ; Television
? Flyers for hotel
? Outside sign on main road
JAZZ IN RODNEY BAY
Every year, a few restaurants and bars in the Rodney Bay area get in on the Jazz action by having performers come and play at their venue and some even get sponsorship. Wood Bay has to get in on this action as the location is perfect for a relaxing jazz after-show wind-down. It should become the place to go, after the main-stage show.
Strategic Alliance
Strategic alliances will play an important role in the success of the business. As word of mouth/ recommendations is one of the primary sources of advertising, it is important that strategic alliances be established with the following
? Hotels – the placement of promotional materials at all hotels in the north of the island will ensure awareness of the restaurant and bar. In addition, front line staff (including front desk, concierge and entertainment staff) should be offered an incentive for confirmed bookings.
? Taxi Drivers – most visitors trust taxi drivers’ recommendations. Hence it is important to establish a formal relationship with taxi drivers. Again it would be incentive based, examples of which can be
o 1 free dinner for 10 referrals
o Free drink when dropping of 2 persons or more
o Provision of business cards, with the name of the driver on one side, and information on Wood Bay on the other side
o Discounts
? Trade Associations – organizations such as the Chamber of Commerce, the Saint Lucia Hotel and Tourism Association, are not only a good source of business for their corporate events, but also for referrals/word of mouth advertising.
? The Media – Free advertising/publicity from an independent source makes the messages more credible. The media can be wooed into making the Wood Bay Restaurant & Bar their special place by offering them a free drink/discount whenever they patronize the facility.
12.0 DEVELOPMENT, MILESTONES AND CONTINGENCY
Key milestones will be monitored and observed in order to ensure that operations are in line with the business plan. They will include:
