PROFESSIONAL

DIPLOMA
PROGRAMME
(BUSINESS ADMIN)
ASSIGNMENT

MODULE : MARKETING FUNDAMENTALS

LECTURER : DR. KELVIN ONG CHENG THIN

NAME : MOHD FAIZUDDIN BIN ISMAIL

IC NUMBER : 861003-40-5041

MATRIX NO : PTGUSM010/21

CENTRE : PROTEGE

DATE : 01/01/2022
CEED| GSB, Universiti Sains Malaysia
Professional Diploma in Marketing | Marketing Fundamentals
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Marketing Fundamentals Professional Diploma Programme

Your restaurant has recently experienced a drastic drop in business. If this continues for a few more
months, you are afraid that you may have to roll the carpets and close your business. You suspect
that this is due to increasing competition from another restaurant that are located within your city.

Question
1. Carryout an analysis of the major competitors within your area / city.
2. Develop appropriate marketing strategies in order to encourage more customers to frequent
your restaurant.

General Guidelines:

i. The minimum word count of your assignment is 3000 words.

ii. The Font size =12, Font Type = Times New Roman, Calibri. Paragraph spacing = 1.5.
iii. Include Introduction and Conclusion in your assignment
iv. Should be submitted within 3 weeks. You should submit your assignment when you
attend your subsequent module.
v. The Cover page of your assignment should include: Your Name, Module Name,
Lecturer / Tutor Name.
vi. Your assignment will be assessed based on the following (below) marking scheme.
Please print it and have it attached before the table of content of your assignment.

Marking Scheme / Rubric

No Sections Marks % Obtained

.
1. Introduction 4%
2. Competitor Analysis 10%
2. Product Strategy 8%
3. Pricing Strategy 8%
4. Place Strategy 8%
5. Promotion Strategy 8%
6. Conclusion 4%
Total 50%

TABLE OF CONTENT

1 INTRODUCTION 3

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2 COMPETITOR ANALYSIS 4
3 PRODUCT STRATEGY 5
4 PRICING STRATEGY 6
5 PLACE STRATEGY 8
6 PROMOTION STRATEGY 9
7 CONCLUSION 11

1.0 INTRODUCTION

A restaurant is a business that serves a variety of dishes and prepares a place to

enjoy these dishes with the provisions of certain tariffs for service and food enjoyed. The

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restaurant specializes in the types of food served, for example, Padang restaurants, fast
food restaurants, western food restaurants, Chinese food, food courts and so on. The
existence of restaurants began to be known since the 9th century in the Middle East region
before appearing in China and in the Islamic world in the Middle Ages. The restaurant is very
helpful for people who do not have time to eat at home because of outside activities and
other limitations that consumers have.
My restaurant business that is main business of this analysis is the RZ Restaurant
located at Jln. Satu No.81 Dr. Masyur USA, Selangor. This restaurant has been established
since early 2011 to date, founded by a housewife. Restaurant opening hours from 10am to
10pm and are open every day except public holidays. RZ Restaurant is domiciled near the
University Kebangsaan Malaysia so that the biggest consumers are students and workers
around the restaurant environment. RZ restaurants provide various types of traditional
Indonesian home cooking so that when consumers especially students, consume food from
this restaurant, they will feel food like at home, a varied menu and every hour changes to
become a typical of RZ Restaurant.

2.0 COMPETITOR ANALYSIS

The high competition at Jln. Pembangunan USA and the many innovations carried
out by competitors both in offering food that is served and services that are more satisfying
than existing competitors makes RZ restaurants have to think about the right strategy by

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paying attention to internal and external conditions in order to be able to compete and
excel in competition. RZ Restaurant does not superior in competing because many
competitor restaurants provide products that RZ Restaurants do not have so that the RZ
Restaurant itself has experienced a decline in sales in the last few months. The decline in
sales requires RZ Restaurants to have a competitive strategy and innovation in both the food
products presented and the services that will be provided to consumers.
RZ restaurants must have a business strategy, no longer just run a traditional
business without a strategy to anticipate competitors and achieve competitive advantage in
their business. To achieve competitive advantage and formulate the right competitive
strategy, it must be seen from the condition of the company by analyzing the internal and
external factors of the company.
According to Situmorang (2012), internal factors include strength, that is everything
that is the company's advantage, and weakness is everything that is a weakness of the
company. External factors include opportunities, which are all things that can be used by the
company as an opportunity to increase revenue and threats, which are things that can
hinder the company's performance. Analysis using external and internal factors is called the
SWOT analysis. SWOT analysis is used to establish a home business strategy in an effort to
achieve goals and achieve competitive advantage from competitors in similar businesses.

3.0 PRODUCT STRATEGY

RZ Restaurant must establish a distinct brand to stand out from the other traditional
and Indonesian style food competitors. Our logo is distinct as fresh, flavorful and standout
with color elements that are eye catching. Product variety names are geared toward the

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target market which are with business people and student’s items such as “medium size,
single size " and which are fun and easy to remember.
Business managers applying the four-marketing strategy to various efforts in
commence should modify them to help them reach performance objectives, regardless of
the size or focus of their business. Bellin (2016) posited that leaders use the 4Ps to position
products to the target market and gain a competitive advantage.
Marketing strategies of restaurants have to manage the availability of variety of food
and beverages, provide completeness of dining facilities, reserve customer parking space,
schedule sanitation and keep cleanliness of the restaurant and their surroundings,
restaurant have good and proper ventilation, décor attractiveness of arrangement of the
place. Furthermore, supervisor have trained employees to be customer-friendly,
accommodating and very welcoming. These were the main factors that they considered
in the operation of the business in order to attract and retain loyal customers

4.0 PRICING STRATEGY

As a business owner, RZ Restaurant must be planning ahead pricing strategy to
maintaining business in this industry. First things are pricing a menu item is neither entirely
about yourself nor entirely about our customer and it is not all about your competition,

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either. While it is true that imitation is the sincerest form of flattery, our goal is not to flatter
other competitors but it is to design an experience that communicates what makes your
restaurant unique in a way that appeals to ideal customer while turning a profit.
When it comes to pricing the menu items, job as a restaurateur is to find the sweet
spot in the pricing range that is, the lowest price that is willing to sell for and the highest
price which customer is willing to buy at. These are not your only considerations, though
among things like restaurant food costs, salaries, and ingredient price fluctuations should
also be on radar. Consider too, what is customers love, hate, or feel is missing with the
menu and after all, there is no use in laboring over how to price an item nobody is buying.
The team is a great asset for this discovery process, given they are on the floor interacting
with customers day in and day out.
It all sounds like a lot of work, and true as that may be, but the payoff is worth it.
The price offered by the restaurant is lower compared to similar restaurants with good
quality so that it can be said that the strategy used by the restaurant is currently a good
value strategy. The restaurant is superior in product price, it is hoped that mid-low
consumers are interested to come. Although the restaurant’s price is lower than prices at
other restaurants, some consumers state that the price offered is still expensive.
Considering that mid-low-class consumers today are consumers who want to be having a
"luxurious" lifestyle, consumers still demand a menu that looks luxurious and quality but at
a low price. Knowing this problem, the restaurant needs to do a promotion that gives
discounts on certain packages or vouchers for purchases to a certain extent so that
consumers feel that they benefit from the price paid.
Restaurant menu pricing is part-mathematics and part-design manipulation. There are
few tactics for the restaurant to setting the price such as promotion daily specials, which is
the one is technically “off-menu.” Have a separate menu, insert, or board where the
promotion post daily specials. Typically these specials use inventory items that are on their
last leg.
Other tactics which are use white space to sell high gross profit margin items on your
menu. The idea is to leave a lot of blank space around the items that generate the most
profit. It directs the customer’s eye, improves reader comprehension, and even helps
people decide what to order faster. Faster order times mean faster table turns and,

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ultimately, bigger sales figures. Next is regularly review and analyze your menu against your
operations data. With a quality iPad restaurant point of sale system, you can access in-depth
analytics with full reports or charts showing the products are most profitable, best seller
menu, the least ordered item and also total cost, price, and markup for each item on menu.
This is one of the best restaurant menu pricing tricks you can use to control food costs
and profits. As per evaluate these reports, business owner must plan in monthly reviews can
set promotions, daily specials and plan for upcoming discounts to regulars, quarterly
reviews can call for price changes and promotions and lastly annual reviews would be a
good time to redesign menus and eliminate poor-performing or low-profit items.

5.0 PLACE STRATEGY

Place strategy is one of the important aspects in staging the business setup. The
restaurant located in one of the popular malls and still at the same place in the mall right
now. The location of the restaurant is enough strategic to distribute the products. Located

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right next to the parking entrance of the 1st floor car and motorbike, consumers who come
can immediately see the restaurant at the right side. There is a traditional market located
below the mall, a hypermarket that is located right beside the restaurant and a large retail
store on the same floor as the restaurant. These places are potential to bringing consumers,
especially housewives. The second floor right in front of the escalator has a game center
that also has the potential to bring children's consumers.
The location of the restaurant for the past one year has also been strengthened by
the existence of a new hotel beside the mall. This hotel has a connected road to the mall
right on the parking floor on the 1st floor where the restaurant is located. The existence of
this hotel can be an opportunity to channel promotions to hotel residents. Young people,
women, and business members are big contributors to the world of marketing, no longer
parents, men and citizens. Young people find it easier to make a choice about a product
they have just tried, while women are the decision makers of purchasing in the family.
Women are a picture of future consumers who are more responsive to change. The progress
of the internet also made it easier for citizens to become netizens who are very easy to
recognize and understand the environment quickly. Catching this new culture, the
restaurant is expected to be able to use the internet as a media "location" for product
distribution in addition to the current real location.

6.0 PROMOTION STRATEGY

Primarily, sales promotion is one of the promotional tools used by the owners. The
above sales promotion activities are the most common factors they considered in order to
capture and maintain customers’ loyalty, considering that customers are the ones who give

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income to the business. There are ways of advertising restaurants which through local radio,
local newspaper, often where brochures distributed in mall and surroundings,
advertisement on billboard nearby, and through social media.
In terms of advertisement, owners often advertised their restaurants through
brochures. According to them, budget was the main consideration in their advertising
campaigns. Thus, they used the cheapest means of advertising such as brochures and
billboards and through local newspapers and local radio stations. Three employees have
been trained in different marketing tactics to increase customer awareness of restaurant
uniqueness. Our most important tactic will be word of mouth or in-store marketing. This will
be by far the cheapest and most effective of our marketing programs due to the fact that we
are still a developing restaurant. The other marketing tactic will be social media for example
Facebook, Instagram, Tweeter, Tiktok and other social media platform which will lead new
customer to the restaurant. Owner will also be looking into advertising over the local radio
station. This will be the costliest and will be used sparingly to supplement where necessary.
Marketing communications are the means a company uses to inform consumers about
its products and services. In the era of Internet, companies have to suddenly think
differently than they have before. Advertisements are everywhere and people are becoming
increasingly numb to them. This is why companies must get creative and think of new ways
of creating awareness, building a brand and simply reaching the customers. (Kotler et al.
2012, 498.) Marketing communications mix is a set of tools used to gain this visibility.
Kotler and Keller suggest the following eight modes general marketing communications
mix model to reach customers (Kotler et al. 2012, 500). The eight model include advertising
(paid presentation or promotion of the company's products or services presented in any
form of media), sales promotion (an incentive for purchasing a product or service, such as
coupons or samples), events and experiences (companies can organize or promote events in
which they are visible and interacting with the possible customers), public relations and
publicity (a set of programs directed both internally and externally to enhance the company
image), direct marketing (marketing conducted by mail, phone, e-mail or Internet directly to
the customer), interactive marketing (a way to promote the company through online
activities. Encompasses all online channels, from the company website to Facebook,
YouTube and other social media sites), word-of-mouth marketing (communication between

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people that either increase or decrease the company image in the consumers’ eyes) and
lastly personal selling (face-to-face communication with a potential customer).
In many cases, companies might choose to use only some of these modes. The key is
to determine which modes of communication are the most suitable for the company and
the product in question. Companies need to consider the nature on the product and their
desired target market. Other factors to be considered when choosing the right marketing
communications mix are the market situation and the budget available.

7.0 CONCLUSION
There are review from customer which mentioned restaurant service excellence, food
quality, consistency of offerings, atmosphere, expense allocation and budgeting,
relationships with diners, and promoting their locations, as factors in sustainability.

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Restaurateurs maximize physical quality through appropriate décor, cleanliness,

comfortable seating, sufficient lighting, and enticing restaurant.
That explained that the basic marketing principles of a family-friendly atmosphere,
desirable products, and adherence to proven restaurant strategies, created sustainability.
Guchait et al. (2015) found that quality of service contributed to differentiation among
competitors. They reported that adjusting to restaurant location challenges, creating an
environment of hospitality, implementing the engagement and selling skills of staff, and
ensuring restaurant quality and consistency were areas that differentiated the restaurant
from competitors. These areas of focus are consistent with that physical design, product
quality, price, and an emphasis on service excellence maximized customer satisfaction.
Restaurant services, in many ways, encompass most of the four factors mentioned
before, but they do serve tangible products and have varied means of mass production.
Usually, the customers also choose the restaurant for the quality of its food. If the service
was unsuccessful, the customer might hesitate in choosing the particular restaurant
again, but if the food was poor, the customer will most like never visit again. Food can
be considered as a tangible product, since in many ways, it can be sampled beforehand.
If the restaurant has a set menu, and well-trained chefs, the food should also be of
consistent quality so that a customer can enjoy the same meal multiple times without being
disappointed.
Consumer consumption patterns will continue to change over time; therefore this
pattern needs to be monitored using dashboards. The dashboard can be used as a tool for
analyzing the restaurant executives to continuously review menus, activities and promos
that have a positive impact or not impact on profits. Through the dashboard, executives
can easily make decisions to carry out promotions or activities based on the information
displayed.
In conditions of growing and building, RZs restaurant has two strategies, namely first
intensive strategy, a strategy that can be carried out based on intensive strategies namely
market penetration, market development, and product development. Secondly is
integrative strategies, strategies that can be carried out based on integrative strategies,
namely backward integration, future integration, and horizontal integration. Therefore, the
short-term strategy of RZ's restaurant is by making promotion in serving consumers, then

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keep supervise restaurant management so that all parties carry out their duties correctly,
improve the ability of workers or waitresses to serve and make consumers feel comfortable
when eating, creating a comfortable restaurant, establish good relations with business
owners around the RZ restaurant, especially with competitors, creating a catering package
for household consumers, giving bonuses to customers who bring new customers, give
special bonuses to students, start using promotions using the internet to introduce dishes,
and complete facilities to support business success.
For the long-term strategy that can be done is by expanding the market by opening a
new branch on popular place, developing new products or menus, making business
innovations following changes in consumer tastes, and if you have more money, the
entrepreneur can pay a longer shop rental contract.

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