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H2O London Business Plan

Mahnoor Ali
Dylan Musico
Peipei Zhang
Fanshawe College

MKTG 1012 Principles of Marketing

Professor: Sherry McEvoy
November 26, 2014

People dont know what they want until you show it to them. Hence it is our job to create that want
and need to stimulate peoples desires and pamper them with the finest dining experience in Canada.
We are proud to introduce to you and the world: H2O London.

H2O London is a revolutionary Asian fusion restaurant that features Chinese and Japanese
food. Our objective is to pamper Londons urbane city dwellers with sophisticated
atmosphere, intriguing dcors, upscale ambiance and a sense of exclusivity, which brings
their dining experience to another level.
Featuring Chinese and Japanese gourmet, H2O presents its dishes aesthetically rather than in a
traditional way, so that they are both pleasing to the eye and the taste buds.
Once you set foot into H2O, you will be pulled into a world beyond your imagination. Entire
restaurant floor is covered with open water, and large windows are from ceiling to floor. Each table
is on an exotic island named Maldives, Santorini, Bora Bora, Fiji, Maui, Bali, Kauai, Anguilla,
Galapagos, Tahiti and etc. Every island is fenced with French iron railings and connected by glass
paths. Both the water and paths are lit with soft lighting to create a tranquil yet intriguing
The restaurant can be enjoyed through two distinct dining experiences: the Tavern and the Dining
Room. The Tavern serves wine, cocktails and specialty beers. The Dining Room offers fixed-price
menus with a -la-carte option at lunch.
H2O London is ready to guide you to a world of exoticism and elegance.
Mission Statement
H2O London, an art of Asian fusion cuisine, where city energy meets exotic sophistication.
Name: H2O London
We are a high-end restaurant catering to sophisticated city dwellers such as business executives,
white-collars and young professionals. In the name, H2O reflects the theme of our restaurant
water, and it has a taste of modern simplicity and mysterious sophistication in it. H2O also
stimulates peoples curiosity and eagerness to explore it; London can be understood both as
London, Ontario and London, UK. It adds an urbane and high-society implication as well as
metropolitan energy to the name.
Location: The intersection of Richmond & Dufferin (See Appendix 1 for floor plan)
1. Downtown London is the hub of activities and trends while we are the trend setters in
the restaurant industry.
2. Affluent diners can easily access the location where its busy streets will increase our
3. Being in the downtown would give us a plus point as we would be able to attract downtown
shoppers, weekend nightlife crowds, businessmen and population in general.

Uniqueness: We stand out as a unique
Lack of Capital: All startup funds will
blend of different cuisines known as the
need to come from investors and bank
Asian fusion. Due to our high quality
loans, who in return would demand a
regulations and distinctive atmosphere we
collateral as it is a new business. In
differentiate ourselves from the
some cases we would also have to
give a percentage of ownership of
Location: Our first location in downtown,
London will attract people of all age
Lack of reputation: Being a new
groups especially urban dwellers.
restaurant we have no reputation and
Downtown being the hub of activities and
will have to work hard to make them
trends is the most appropriate location for
aware of our existence.
our trendy and high-end restaurant.
No customer loyalty: Our target
Strong Management: We plan to assemble
market is not yet aware of us, thus we
a team of hardworking and enthusiastic
need to create a customer base by
people who will serve the customers to the
providing good quality food and
best of their expectations.
service to attract new and the
All in one: We aim to provide our
customers of competitor restaurants as
customers an all in one under the same
roof experience. Customers will have high
Low budget for promotion: A highquality food, bar and a caf style menu at
end restaurant like ours needs
their disposal to choose from.
excessive promotional campaigns to
attract our target market.
Income levels: According to Statistics
Competition: A lot of competitors in
Canada, 2010 the income levels are rising.
the market with established businesses
In London the employment income
and customer loyalty. Many
accounted for $84.30 of every $100
restaurants have been here for a long
market income. In London, 4.3% percent
time and people know them and their
of the population aged 15 years and over
had total income that put them in the top
Quality concern: Being new in the
five percent that is being slightly above
restaurant industry and having set
$102,300 and 0.8% in the top one percent
high expectations, we would have to
that is over $191,100. This compared with
be perfect. Regardless of the opening
5.5% and 1.1% in Ontario and 5.0% and
being busy, our service should be
1.0% in Canada.
efficient because initial poor service
Rising Population: As per Statistics
or quality would discourage
Canada 2011, the Canadian population
customers to return.
has increased over the past few years. In
Price Fluctuation: Our competitors
London there are 87,655 (18.8%)
being well established can afford to
immigrants, 374,875 (80.2%) nonreduce prices and offer discounts to
immigrants and 4730 (1.0%) nondrive us out of business whereas it
permanent residents. And the numbers
would be difficult for us to reduce
continue to rise.
price as we would have to cover up
Baby Boomers: The population of baby
our initial costs as well.
boomers is rising, making more
opportunities for new restaurants like us
to capture their loyalty. Reaching the age
of retirement and having lots of free time
will make them want to try new
restaurants and places.






(Our restaurant)




We aim to
provide a unique
blend of Asian
fusion cuisine
with a great menu
to choose from
with the addition
of various
cocktails to
choose from as
Our price range is
$30-35 per
person. It may be
expensive as
compared to
other restaurants
but we provide
highly quality
food with a
where customers
can relax and
It will be located
in downtown. At
Richmond &
intersection as it
will attract
3-steps mass
mailing invitation
prior to opening,
social media,
school cooking
day events,
partner with the
theatres, seasonal
promotions, gift
cards, loyalty

A blend of
Vietnamese, Thai
and Chinese
cuisine. More
than 40 dishes on
the menu.

Chinese buffet.
Reviews show the
food is good but
sometimes is cold
and bland and sits
out for too long.

Chinese cuisine.
Regular clientele
and is well
Review shows
people consider it
authentic and
good quality food.

$10-15 per dish,
very low prices
customers from
all over London.

$20-30 per
Customers find it
pricey as no new
changes in the
menu have taken
place. It is the
same menu.

The price range is

from $15-25 per
person. Customers
find it pricey but
some also find it
good value food
and overlook the

Highbury Avenue
North. A
convenient place
to go to for

It is located on
Wellington Road.
One of the major
roads of the city.

Located on Horton
Street, East.

It has actively
taken part in
development of
the Northeast
through the Can
You Feel It?
Campaign and
has thus, attracted
many community

Mandarin sends
out flyers
containing its
menu items and
campaigns to
attract customers
to come to their

They send out

flyers to
customers to
attract them but do
not have a website
of their own or a
Facebook page,
thus it will give us
a competitive


Segmentation Basis
- Type of Region

Wealthy Relative (Primary)

Classy Family

Works in urban downtown London.

Lives in the suburban downtown

area of London (masonville)

Age ranging from 35-49 and 50-64.

Household income $50000-$100000,
over $100000.

Parents age ranging from 35-49,

childrens age ranging from 12-19.
Household income $50000$100000, over $100000.
Professional/ Young Professional.

- Social Class
- Personality

Lower uppers, upper uppers.

Sophisticated and enjoys intellectual

Lower uppers, upper uppers.

Artistic and enjoys intellectual

- User Status
- User Rates

Regular users.
Heavy users.

First-time users.
Medium users.

- Benefits
- Need To Be The Best

Highly regard quality and service in

importance when visualizing the
ideal restaurant.
A drive for success and being at the

Highly regards quality and service in

importance when visualizing the
ideal restaurant.
A desire to instill good manners and
etiquette in their children.

- Age
- Household Income
- Occupation
- Education

Target Market Selection

Wealthy Relative
H20 will be able to grab the attention of the wealthy relative and satisfy their needs and wants as
well. Retention of the primary segment is critical and H20 is the perfect restaurant for this
prospected customer. With our prime downtown location, H20 proves convenience to business
people who need a quick place to go for lunch. The fact that target customers are postgraduate
professionals is ideal due to the fact that H20 proves a serene environment and highly trained and
professional staff. This will be perfect for the crowd who enjoys intellectual conversation and is
sophisticated. The loyalty card which H20 promotes will be perfect for obtaining regular and heavy
users. Not only does the card give the customer a percentage off the bill, it is a status symbol that the
customer is highly valued. The kind of crowd who highly regards quality and service will find H20 a
perfect place to dine. H20 ensures each customer to receive a personal experience where they feel
like a highly-respected individual and a sense of belonging. The variety and aesthetics of exceptional
cuisine will keep customers coming back. H20s main goal is to become a status symbol and with
the reservation only fact, it will become highly sought after by individuals who pride themselves at
being at the top.
Classy Family
This market segment is the family who is seeking for superb quality in every aspect of life. They live
in a wealthy neighborhood such as Masonville (average family income running at $153,560 [IBID]).

The simple fact is, at this point in the familys life-cycle, the parents will be looking to spend time
with their children and they are old enough to comprehend more mature materials like plays. The
classy family has parents who want to instill proper etiquette and manners into their children. These
families see a value in artistic outing such as theatre (H20 is just down the street from the Grand
Theatre). An advertisement partnership will be heavily sought after with the Grand Theatre because
the results would be advantageous for each party. By partnering with the Grand Theatre or having
deals, we will be able to give first time users a complete experience. The family outings will only be
on occasion, thus this segment is for medium users. Yet we all know word of mouth spreads like
Target Market
Many people can relate to the fact that they have that one relative who is incredibly successful and
has an excessive amount of cash. This is the highly regarded individual whom is sought after by the
creators of H2O. H2O will be conveniently located all around the majority of lawyers offices in
London. This fact allow the many business professionals in the area to be accessed. The age groups
which have been targeted, range from 35-49 years old and 50-64 years old. At these ages,
individuals are quite well off and typically are achieving the highest income in their career. They
also have the largest percentage of disposable income. The majority of wealthy people are very
money conscientious and our prices adhere to this requirement. Postgraduate professionals have
been selected as the target for H2O due to the fact that this group of individuals hold a lot of
influence in the community and is known to be trend setters. Regardless of there being lower uppers
or upper upper, the overall goal is to just to reach an upper class crowd. These people need to be
sophisticated and enjoy intellectual conversations. Sophisticated and intellectual chat is such a
necessity because of the associated mature mindset of our target customers. Diners who value
quality and service are ideal customers for H2O. H20 will provide an exceptional and novel
experience with servers being trained heavily on customer engagements.

Price Goal: An average price of $30-$35 per diner.
Given our downtown London business district location, we are catering the affluent business
executives, urban white-collars, young professionals and their families & relatives that want to have
a unique dine-in experience. We decorate our restaurant in an intriguing Exotic Islands ambiance
with entire floor covered with water and glass. Our waiters and waitresses are highly trained
servicing personal dressed in exotic islander costumes. We invite skilled Japanese and Chinese chefs
to please our customers palates. The purpose is to ensure our customers a unique, upscale,
unforgettable experience with one-of-a-kind ambiance, better-than-expected food and superb
Demands, Costs & Profits
1. Demands
Maximum Accommodation: 55 diners
Expected diners: 100/day

Target Revenue: $100,000/month
2. Costs
Rent Cost: $8,000-$10,000/month
Estimated Cost of Food & Beverages (alcoholic and non-alcoholic): $25,000-$40,000/month
usually paid on delivery hence need to budget enough money to buy supplies until we turn
a profit.
Salary Cost: $21,100/month

Chinese chef: $4,000/month x 1

Japanese chef: $4,000/month x 1
Sous Chef: $3,000/month x 1
Kitchen Staff: $2,000/month x 1
7 Waiters/waitresses: $870/person plus gratuities x 7
Cashier: $2,000/month x 1

Utility Cost: $3000/month

Total Operating Cost: $57,100 - $74,100
We also need to purchase (consider) the following:

Construction and decoration: $250,000-$300,000

Cooking, ventilation, storage equipment & Refrigeration: $100,000
A point of sale system for managing orders: $3,800
Credit card processing fees 1.8 to 2.5 percent of sales
Other extra costs include but not limited to: service items such as table, chair, furniture,
plates, cutlery and glasses, maintenance cost for breakages and equipment repair,
permits, signage, marketing/advertisement, menu printing, staff-training, uniform
purchasing, laundry (napkins & tablecloths), waste disposal, accountant and etc.

Total Estimated Start-Up Cost: $450,000 - $500,000


Target Profit: $20,000/month

We propose a high start-up cost for our restaurant since the goal is to bring an upscale
experience to our customer. Our price is on the high side but not the most expensive in
downtown London. An exquisite ambiance, palatable foods and justifiable prices are the 3 key
factors for customer loyalty. Our target profit is approximately $20,000/month after 2 years of
its initial opening.
We anticipate our business to stabilize by Year 2. Even though net profit margin can go up to
$400,000 per year by Year 4, majority portion of the profit will be utilized to pay off our start-up

Sales Forecast


Gross Margin



Net Profit

4. Source of funds:

Investors and Partners: We will propose a $500,000 investment to H2O for a 30% ownership
of the restaurant. Whether our investors/partners want to simply be kept informed or want
some control or influence over the restaurant is negotiable. We will draft a legal contract to
protect everyones interests.
Targeted loans and government grants for new business
Bank loans
Personal Funds

Price Strategy
As a high-end restaurant, we have fix prices for all dishes unless we introduce new ones. We will
only conduct major promotions at the beginning of our operation. When business stabilizes, mass
promotion should stop. Also, we dont want to confuse our customers with fluctuated prices or
discounts, especially when we operate on a reservation-only basis in the future.

Differentiation #1: The only game in town
We offer Asian Fusion Cuisine featuring Chinese and Japanese food. We present each dish like a
piece of art rather than serving it in a traditional way. Our dishes are both pleasing to the eye and to
your taste buds.
Differentiation#2: Dining at H2O gives our customers a novel & unique experience

The ambiance is an important part of our product. Being the only game in town, the quiet,
sophisticated and unique atmosphere of H2O London will offer an upscale experience to business
executives. For urban white-collars and young professionals, H2O London will be their new hot
spot to explore. The business executives can be their aspirational reference groups and opinion
leaders. By dining at the same restaurant, white-collars and young professionals can associate
themselves and identify with the executives.
Differentiation#3: Customization
We offer to customize an island, a table and a dish to meet customers needs for different occasions
or events. Special arrangements will be made for anniversaries, birthdays, retirement parties and
graduation parties. Our event planner will provide with you a one-stop solution to give your special
ones an unforgettable experience.
Differentiation #4: Limited distribution serves to project an exclusive image
Once H2O generates enough customers, we will begin to operate it on a Reservation ONLY basis.
We give out private reservation telephone number to VIP customers and the ONLY way to
guarantee seating, especially premium seating, is by calling that private number. Obviously these
VIP customers are not willing to give the private number to others. But people always want what
they cant have. The purpose is to create a sense of exclusivity for those who have access to that
number, and as a result, to attract more customers.
Product and Price Detail:
Japanese Menu:
Appetizers: $4-$8
Sushi & Sashimi: $3-$4/piece
Sushi Platters: $22-$50
Maki rolls: $10-12/roll
Main Plates: $15-$22
Large Platters: $35-$50
Sides: $4-$5
Rice & Noodles: $8-$12
A few items in seasonal price
Chinese Manu:
Appetizers $4-$12
House Special $10-$14
Poultry $10-$25
Beef $10-15
Seafood $13-$25 or seasonal price
Veggies: $7-$12
Soup: $3-$10
Full, Rich, Complex Reds: $10-$12/glass, $33-$110/bottle
Happy Hour Specials: Cocktails & Beer from $3-$7
Also provide sushi rolls, dumplings, chicken wings, calamari and etc. for happy hour

Ice cream, Sorbet, tart, pudding & etc. with price range $2.25-$8
After dinner cocktails $10
Organic Loose Leaf Teas: $5/pot
Coffee & Espresso: $3.5-$5.5
Other featured exotic drinks: $12-$28
Lunch -la-carte: $25/diner

Marketing Communications Plan

1. Use Snap Admail service from Canada Post to send H2O London Invitations to all addresses
in downtown London our target market.
Below are Snap Admail coverage area and number of mails delivered (9,931 pieces)

Due to the sophisticated nature of our target customers, we designed this 3-step mass
mailing advertisement campaign to create awareness of H2O London. We will design 3
versions of restaurant invitations, each of which uses A4 size matte finish paper. The cover
will be a picture of H2Os beautiful interior (the water and lights, the path and the islands)
with name, address, telephone# and website; Inside will be the H2Os simplified menu with
pictures of feature dishes blurry in the background; the back cover will have more pictures
of chefs specialty the artsy presentation of our dishes and coupons.
Below are specifications and price detail:


We need 30,000 invitations for launching (3 different versions with consistent themes)
Total cost: $11,400
Target customers will receive invitation 3 times: on the 7th day from launching, 4th day
from launching and 2nd day from launching.
2. Launching date & time Friday 5:30 pm
3. The restaurant will gradually be operated on a Reservation-Only bases for dinners.
Customers without prior reservation should not be admitted easily for dinner. We will
provide our VIP customers with a private telephone # and only those who have access to this
number are guaranteed (premium) seating another way to make our customers feel special
and exclusive, the result of which is attracting more customers.
4. Coupons and discounts
We want to obtain market share but do not want our customers to be addicted to coupons
and as a result, erode our brand value; hence we will not offer coupons very often. After
launching, we will adjust the usage frequency of Snap Admail based on the number of diners
and volume of business we receive.

Launching day everything 50% off (with mail invitation coupons ONLY)
The first week after launching day all appetizers 50% off (with mail invitation
coupons ONLY)
Monday - Wednesday all drinks 50% off after 9pm
5. Sampling we will provide sample dishes (something either new or featured) for free for
dinner parties. 1 dish/2-4 diners, 2dishes/6-8 diners and etc.
6. Communications with the community - Cooking Days at Elementary Schools Events
We contact the following schools and send out our chefs to teach kids knowledge such as
recognizing vegetables, cooking ingredients and etc. We also teach them how to make a
dish. We will bring restaurant invitations and exquisite custom-made utensils to give to the
kids. The utensils have our logo, address and telephone# and website on them. Kids will in
turn bring utensils and invitations home and share the cooking day experience with their
Ryerson Public School Parents average income: $118,900
Jack Chambers Public School Parents average income $116,300
Masonville Public School-Parents average income $148,000
John Dearness Public School Parents average income $132,200
Byron Somerset Public school $104,200








Stoneybrook Public School $143,900

Clara Brenton Public School $118,500
Seasonal opportunities - we will conduct mass inviting and offer giveaways for the
following seasonal opportunities and remind our consumers to make reservations as soon as
Valentines day
New Year
When presenting the check to customers, we attach a coupon and a $2 scratch-off game. The
coupon is 50% off towards their next drink, and the scratch-off game is a unique way for the
customer to remember the restaurant. Itll be a plus if they win a cash prize. These are just a
little something and they give our customers a reason to return without eroding our brand
Gift cards promote them as the best gift cards you can give a prestige to possess.
Loyalty cards we will give priorities to the holders when it comes to reservations. Below
are additional benefits:
$500 Loyalty card receive 5% off every time customers use it.
$1000 Loyalty card receive 10% off every time customers use it.
Host Corporate Events After their great dining experience, the business executives will be
more than happy to utilize our venue for their corporate events another way to increase our
brand awareness.
Sponsor Charity Events We will periodically sponsor charitable events to give back to the
Strategic Alliance We will partner up with Grand Theatre to provide a complete outing
experience for theatre-loving families and individuals. Holders of our loyalty cards should
receive special discounts on play tickets and those with tickets for tonights show will
receive special discounts if they dine at our restaurant.
We will utilize Owned media, earned media and paid media

1) Owned media: H2Os website, Facebook page, Twitter, Instagram, Pinterest


Theme: water theme with a contemporary and exotic look

We will have a different picture of either the restaurant or featured dish as the background
for each page customers click in
Home Button
1. Background: ambiance of restaurant pictures/featured dish & dessert pictures (fade
in style)
2. Twitter, Facebook, Pinterest and Instagram buttons
3. Online reservation box (Date, time & # of people)
Menus Button
1. Brunch
2. Lunch
3. Dinner
4. Happy Hour
5. Beverages
6. Dessert


Special Events Button

When customers click into this button it contains 4 sections
1. Plan your event
2. Pictures of past events
3. Floor plans of the restaurant
4. Opening hours
5. Make A Booking (Telephone, email, address and an extra button for Contact A
6. What Our Guests Say
Whats Happening Button
1. H2Os Downtown London -la-carte Lunch (Monday-Friday, 12PM-2PM)
2. New Oyster Happy Hour (Sunday-Thursday, 5:30PM-Close)
3. Why Not Try(Our featured/most popular dishes)
4. Coming Events in Downtown London with H2O (Partner with Theatres)
Gallery Button
This button will lead to a page where customers can browse photos of H2O - the venue and
About Button
When customers click this button it will open a page in the format of 4 boxes. Each box has
a picture of a star dish, the ambiance, people dinning and a street view, with description of
the picture or testimonials from customer (preferably famous food critics and magazines)
Hours + Locations
When customers click this button it will open up a page with all contact information of the
restaurant with a map. The page also contains an online booking link.
Reservations Button
This button leads to a page where simple reservation instructions are given. It also informs
the customer that they should call the restaurant for same day reservation after 4pm.

Facebook Ads
We will create a Facebook page and announce that anyone who follows it, shares the ad and
collects 200 Likes will receive a complimentary tasters combo, a $50 value, for free.
Create a YouTube video
We will create a YouTube video featuring the ambiance of our restaurant and specialty dishes.
Our chefs will introduce themselves and our restaurants core values. We also include the
Elementary School Cooking Event in the video to express our sense of corporate social
responsibility. This video will be updated periodically and uploaded to Facebook and other
social media.
Restaurant Review Websites
Invite customers to share their experience on Zagat, Yelp, Urbanspoon and etc. to increase our

2) Earned Media - Facebook, Twitter, Instagram & Pinterest

We will encourage our friends and customers to share their experiences at H2O on
Facebook, Twitter, Instagram & Pinterest. We tend to build H2O into a high-society hangout
spot therefore dining there is a sign of social status and privilege.
3) Paid Media
We will advertise on AM980 radio to have our commercial broadcasted during morning and
evening rush hours, when our target customers are in their car listening to the radio. The
reason we chose AM980 is because it is a news channel, which business people tend to
listen to, hence the message is relevant.


Statistics Canada. (2013, May). NHS focus on geography series London. Retrieved
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Job Bank. (2014, September). Job posting: Chef (Chinese chef). Retrieved from Job
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Job Bank. (2014, August). Job Posting: Specialty foods chef (sushi chef with
Japanese chef training). Retrieved from Job Bank Job Posting online via GPO Access:

Canada Post. Snap admail: Target your audience. Retrieved from Canada Post Snap
Admail online via GPO Access:

Report card for Ryerson public school. (n.d.). Retrieved November 26, 2014, from

Report card for masonville public school. (n.d.). Retrieved November 26, 2014, from

Report card for john dearness public school. (n.d.). Retrieved November 26, 2014,