MARKETING PLAN FOR A SMALL RESTAURANT-DISTRIBUTION STRATEGY
EXPLAIN THE MARKETING PLAN FOR A SMALL RESTAURANT-DISTRIBUTION STRATEGY
Marketing Plan for a Small Restaurant-Distribution Strategy
Distribution is the movement of goods and services from producer to target consumers. The distribution process tends to be an overwhelming task for small business entities compared to their larger competitors. Therefore, there is a need for a strategic distribution channel to ensure that products get to the target consumer at the required time. This section will outline the key marketing strategies applied by a small restaurant in its business plan that will enable the success of market operations.
Strategic distribution needs to understand the two major forms of disseminating food products sold by a small restaurant in the suburbs. According to Mishra (2018), the two major distribution options are the direct and indirect channels. Direct distribution entails direct selling of the entity products to the final consumer. Given the current situation of selling foodstuff to families, this distribution channel becomes the first strategy when planning to venture into the local market. However, it is important to appreciate the role of technology in business entities when the distribution is in question. In this case, the direct distribution will involve a technological approach where customized applications are designed and provide the user with a catalog of foodstuff sold to the target population.
Under the direct selling strategy, the most appropriate distribution of products by the small restaurant is through door-to-door selling. Although this method is considered traditional, some target consumers may not have frequently applied technology to obtain food and beverages. Thus, a small restaurant’s hiring of sales representatives will enhance product delivery at the doors of local families within the environment where the business is situated. Another channel for direct selling is email or restaurant social media platforms to place orders for goods and services needed. Since the restaurant will be handling food that requires a high level of hygiene, mail orders, and social media platforms will reduce intermediaries and ensure delivery is attained within the shortest time possible.
The strategic planning to apply direct selling expresses several advantages that small restaurants will realize from market operations. First, mail and social media platforms create a direct link between target families and the entity (Gigi et al., 2018). This connection allows the collection of customer comments on what needs to be improved for better services. On the other hand, research has indicated higher profit margins realized under direct selling. The sole reason for establishing a business entity is to maximize profit. When the middlemen are eliminated in the distribution chain, the small restaurant’s market revenues will be higher.
Despite the outlined advantages that come with the direct selling method, drawbacks have also been reported in the channel’s use. The major drawback is the inability to expand operations in a larger area. Lack of expansion may limit profits; therefore, future planning for expansion should consider the distribution channel’s change. The second issue is in delivery cost for goods and products to the customers. To limit the inconveniences to target customers, the entity can apply cost-sharing options to improve customer satisfaction using this channel. In conclusion, direct distribution strategy plays a vital role in small business entities. However, strategic planning is required to realize the advantages of this distribution model.
Gigi DiGiacomo, Robert King, Dale Nordquist. (2018). Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses. Retrieved from: https://www.sare.org/wp-content/uploads/Building-a-Sustainable-Business.pdf
Mishra, D. (2018). Rural Marketing Strategies Of Consumer Durables In India. Indian Rural Market: Opportunity and Challenges in the Global Context, 1(1), 266-276. Retrieved from: http://conference.nrjp.co.in/index.php/IRM/article/view/339