Muskoka Roadhouse and Grill-

Tina’s Restaurant Major Project

MKTG 1012 Section 1
August 7, 2018
Professor: Jack Michienzi
By: Nicholas Bell, Nicolas Caskanette, Marc Dunlop

We have decided to open a high end steak house in north London we will do our best to
locally source all our products (steak, vegetables, potatoes etc). We will cater to established
adults with the most disposable income who are capable and willing to spend money on a high
end restaurant experience. This will be a 24-hour restaurant with a dining side and a bar side.
The dining side would be closed during the night.
1. SWOT Analysis
Strengths
- Product - steak house open 24 hours
in a student based city with a healthy
nightlife. This is a benefit as most high
end establishments in london are not
open 24/7 leaving a segment of the
population drunk and hungry with
nowhere to turn for a good steak. To
further expand our product offering to
more markets, we will offer local
grown products along with a gluten
free section.
- Pricing - Our restaurant will cater to
multiple income levels focusing on the
high end. We will offer tapas (half
portions of our regular dishes for a
reduced price). While simultaneously
offering a high quality fully loaded
steak dinner. The combination of the
bar and the dining side allows us to
also offer “bar food” (cheaper fried
food) for our student patreons.
- Place - For our product offering, we
will be located in north london an area
where our target will be highly
populated 70-200 people per hectare
(Census Canada, 2016)with the most
disposable income.
- Promotion will include but not be
limited to: Social media, print, radio,
special student pricing. Daily deals
(certain food or drinks cheaper at
specific times, usually slower times)
- Technology - We will utilize the latest
and greatest in restaurant technology
from electronic menus to tablets in the
table to take orders and call for a
waiter's assistant. A smart POS will
result in easy bill splitting and all
Weaknesses
- Product - It will be challenging to
locally source year round, winter
specifically will be a challenging time
to keep our vegetable local.
- Pricing - The pricing favors the higher
income customers we do offer tapas
as well as “bar food” but to be able to
appreciate our full menu our clients
must be higher income.
- Financial resources - We begin with
only our lottery winnings which will be
$286,000 this will allow us to rent our
space to begin with allowing potential
expansion or ownership down the
road. Ideally we would build a new
restaurant to better fit our business
model. Either way this aspect depends
on the opportunities presented to us.
- Image - As with any start-up company,
there is a big risk of losing it within the
first year. According to Statistics
Canada, 91% of small businesses
disappear after the first year.
(Statistics Canada, 2016). This shows
that the image perceived by
customers is crucial. If we do not have
a strong image within the first year,
our restaurant will be part of the 91%.
1
 current forms of payment
(apple/android pay , tap)
Opportunities
- Demographic- In the area in which we
are considering for the restaurant, the
largest age category is 49-59 year
olds. The people in this age group
tend to have higher incomes which
lead to higher purchasing power when
related to eating out.
- Competition - In our area there is little
to no high end restaurant competition.
Most of our competitors are located
downtown on Richmond street. There
is a huge opportunity for us to take
advantage of the highly populated
area with few restaurants in this
category.
- Economy - Since we are going to be
located in a neighbourhood where
high income is a significant factor, the
economy becomes an opportunity for
our company. The demographics in
our location show they have high
purchasing power to allow them to eat
at a higher priced restaurant.
- Technological - As a company, we
have been able to use applied
research to help further expand our
company. We now have a further
understanding of the marketplace and
have been able to use that knowledge
as an opportunity. It is now an option
to develop a product differentiation
over the competition.
Threats
- Competition - Our biggest competitors
are other high end steak restaurants
such as: The Keg, Tony Romas,
Moxie’s and Waldo's to name a few.
Many of these restaurants have an
established name and clientele whom
have a certain amount of brand loyalty
to these companies. It will be an uphill
battle to earn these customers for
ourselves.
- Political/Legal - As with any business
we would require a legal team to make
sure we are following all necessary
protocol including: appropriate
business licencing, Alcohol smart
serve and liquor license as well as
health and safety to name a few of the
legal teams responsibilities.
- Economic - Doing any high end
restaurant always presents some form
of risk. If we don't offer customers a
reason to pay our higher end prices
they won't. We have done our best to
placate this by providing high quality
local ingredients, exceptional
customer service, 24/7 availability as
well as a location targeting higher
income families. Despite all this the
high price point is a risk/weakness.
- Social Factors - Canada has been in
an awkward financial situation for a
few years now only recently coming
out a recession in 2015. Plus the new
tariffs on trading with the states results
in more social difficulties and families
being more conservative with their
excess money. This is a threat as we
offer a higher end service which could
be considering in excess by many.
2
2. Competition Analysis
Marketing Mix The Keg Tony Romas Moxie’s

Product Steakhouse Menu - Menu - Menu -

Steak,Ribs, fish, Appetizers, Ribs, Pizzas, Soups &
chicken, appetisers. Steaks, Seafood, Salads, Steaks,
Keg Product Line - Chicken, Burgers & Pasta & Rice,

3
 Seasonings, sauces, Sandwiches, Bar Burgers, Handhelds,
Salad dressing, Menu, Deserts (Tony Deserts, Bar Menu
Prime Rib Burgers, Roma's, 2018)
Appetizers. (The
Keg, 2018)

Price Prices may vary Prices may vary Prices may vary
depending on food depending on food depending on food
quality and portion quality and portion quality and portion
size size size
Appetizers - Appetizers - $8.50 - Appetizers - $11.00 -
$4.95-$9.95 $14.75 $18.75
Steaks - $29.95- Steaks - $23.00 - Steaks - $29.75 -
$43.95 $28.50 $37.00
Ribs - Seafood - $18.00 - Burgers - $15.75 -
$20.95-$24.95 $21.50 $18.75
Seafood - Ribs - $10.00 - Ribs - $13.50
$20.95-$23.95 $25.00 Alcoholic Beverages
Desert - Deserts - $6.50 - - Prices vary due to
$3-$7 $14.00 different daily
Beer - $7.50-$9.50 Beer - $5.00 - $6.50 features
Wine - $7-$192 Wine - $6.00 - $40.00 (Moxie’s, 2018)
Spirits - $8-$13.50 Spirits - $8.00 -
(Keg Steakhouse, $9.50
Menuwiththeprices, (Top Restaurant
2018) Prices, 2017)

Place Masonville area, Wellington Rd. Downtown

South London (South London) (Richmond &
(Wellington and Have dine Queens)
Bradley) in/reservation as well Have dine
-Dine in/Reservation as delivery available in/reservation as well
is the only way to through the Just Eat! as delivery available
access their food company through the Just Eat!
company

Promotion -All forms of social - Social Media - Social Media

media (Twitter, (Twitter, Facebook, (Facebook,
Facebook, Instagram, Youtube) Instagram, Twitter)
Instagram, Linkedin - Television - Television
and Pinterest to Commercials Commercials
name a few) - Their own website - Their own website
-Their own site. - Radio Commercials - Radio Commercials
-Radio, Tv - External - External
newspapers advertisements advertisements

4
 - External (giveaways, (giveaways,
advertisements bench/billboard bench/billboard
(giveaways, advertisements) advertisements)
bench/billboard
advertisements)

3. Customer Segmentation Analysis

Segmentation Business Idea: High End Steakhouse
Bases
Potential Customer Profiles

1 2 3

Profile Name: Established Adult Late Students Young Professionals

5
Geographic - Live near Masonville area - Live near Western - Live in the
(North London) University (City’s downtown core area
- Large portion are over the North End) in London (North)
age of 41 - Live near Fanshawe
- Under 30% of residents in College (City’s East
the area End)

Demographic - Ages 49-59 - Ages 18-22 - Ages 22-28

- Highest Average Income - Lower income - Average Income
- Older married - Young single - Lots of
disposable income
- Young single

Psychographic - Established in their career - weekend spending Socializing with

- Lots of free time (dining and friends
- Connections to the entertainment) - Dating
community are important - want to unwind after - Have free time due
the work week to being single with
no children
-

Benefits - Tastes are more refined - Open 24/7 - Offers both the bar
Sought and sophisticated - Liquor License side and the
-High quality products -Cheaper fried food steakhouse providing
(ingredients, meats and alternatives two distinct
spices) -Economic Value - atmospheres to
-A fully loaded bar set up The atmosphere, enjoy.
providing a wide arrange of entertainment, beer -Good atmosphere to
high quality wine and spirits. on tap, Tv’s, Fried enjoy with company.
- Entertainment food. All the tangible - Both cheap and
feelings a expensive food
bar/steakhouse could depending on the
offer. occasion.
Entertainment

Usage Rate - Medium to Heavy users - medium users - light users

- could using the bar - weekend -socializing with
daily after work entertainment cheap friends
- using the restaurant side food good place to - would utilize the bar
occasionally relax with friends aspect over the
-Could develop into long dining experience
time customers if provided
with quality service.
If we were to target our business to Established Adult Late consumers, then it would be
important to have a high-end products which would align with our higher pricing strategy. This
market segment tends to have the highest average income compared to the other segments. A

6
significant portion of our restaurant would focus on a fine dining experience. Our steakhouse
would have high prices, but also high quality for the customers. This is important as they are
paying top dollar for quality, tasty locally sourced food. This segment in London is mostly
located in the north end which is where we have decided our restaurant would be located. This
way it is a close, easy and convenient dining experience for our customers.

Looking at the Student consumers, our plan would be a little different. There is a good chance
that most of these students do not have much of an income. Therefore, buying an expensive
steak meal is less than likely to occur. Even if they may not have a lot of disposable income,
they are still spending money. On average, an average student spends as much as $880 each
academic year dining out (London Free Press, 2012). This proves that they are still an
important segment to be targeted. The area in which they are located in is not too far out of
reach. For students from Fanshawe College to reach our designated area would be
approximately 10km. This would be an easy access for them to be able to unwind during the
weekends. Knowing that they may not have much income, it would be important to have
attractive bar prices even for students. Our bar will provide tapas which would be cheaper
options for our shareable meals.

Young Professionals are not our target market, it would be unwise to have only a fine dining
experience allocated to them. Even though they have a lot of disposable income, they are still
just starting their career, so they may still be saving money for perhaps a vehicle or a home.
They live most prominently in the downtown area which is in the northern/central London area.
Since we are projected to be located in North London, this is an easier commute for them
compared to other steakhouses. These people are searching for entertainment, so that is why
it is so important to have a “true” bar atmosphere. Cheaper liquor and live music are important
to them which would be a crucial thing to have if they were our target. There are currently
10,500 people who are employed in the London Health Sciences Centre. This is one of the
most employed jobs in the city for young professionals. After a hard days work, they may want
to go grab a drink and relax. This illustrates that having a bar with easy 24/7 access for them is
very important.
4. The target strategy that we would implement would be a concentrated targeting strategy
which would mean we would mainly focus on one segment. The target market that our
steakhouse would be most interested is the Established Adult Later life segment. While looking
for an area to build our restaurant North London made the most sense. This area is well
populated, despite this there is not a high density of restaurants. The segment that is well
populated in the area according to statistics canada is the established adult late segment.
They often look for a high-quality meal when they spend a night out. Our steakhouse would
produce the refined and sophisticated tastes this age group is seeking. This would mean that
our price strategy would be price skimming. This way we would still begin with high-profit
margins, and then be able to increase them once we can figure out how to bring our costs

7
down. Even though we are segmenting a market towards the older generation, we do believe
that it is still crucial to have options available for the other segments. The bar aspect of our
restaurant would still be attractable for them. That is why the tapas are the viable option for
ones with the lesser income. Even though we are targeting towards the Established Adult Late
segment, we are still keeping our doors open with the other age groups.

5. We provide a high-quality dining experience for all types of customers, whether you are a
family man, or a student coming off a long day Muskoka Roadhouse and Grill will have what
you need. Fine meats, quality alcohol, and a relaxing atmosphere with entertainment is what
we offer anyone looking for a meal. We want our customers to feel at home here, a placed to
have a romantic evening with a loved one, or a place to spend a night with the ladies/boys at
Muskoka Roadhouse and Grill will provide:
● Locally sourced & Quality Food
● Exceptional Customer Service
● Quality Atmosphere

6. Product
Our product consists of two different menus to help cater to multiple markets. The main focus,
however, is on the fine dining menu as it is focused solely on the Established Adult Late
category. The Muskoka Roadhouse menu presents the fine dining experience. The menu
starts off with appetizers that vary from garlic bread to different salads. The menu focuses on
steaks, but then also has other multiple entrees for those who may not prefer steak. Only the
higher class steak is featured on our menu including new york striploin, filet mignon, and beef
tenderloin. The reason for high priced meat is due to targeting our restaurant to the higher
class which is perceived to be Established Adult Late. They have higher incomes and have
more refined tastes compared to others. The chances of them looking to eat at a 5-star
restaurant are a lot more likely than the younger segments and students. The theme of this

8
menu is high class, but also comfortable due to the other sections including lobster, ribs,
chicken, and more. Our menu also contains gluten-free products to make sure that we capable
of serving ones who stay away from gluten. Where applicable, we do serve locally sourced
meat. We realize that nowadays that both gluten-free and locally sourced are important to
many consumers. That is why it so important to cover these aspects in order to increase our
market share.

The other menu would is the Muskoka Grill aspect featuring cheaper products that are more
bar-friendly. This includes nachos, chicken wings, dips, and more. These are designed for
people to share with others during a night out or even to watch the big game. The bar side is
for anyone over the age of 19, but more specifically for people from 19-45. This still fits in with
the established adult late segment but also includes the other segments. The north London
area is too big to shut out the other market segments. The tapa menu is one that includes
identical meals to our Roadhouse menu, just half portions. This allows customers with less
income, or maybe smaller appetites to enjoy high-size meals in a bar environment.

The last menu would include the beverage section. This includes the pops and waters, but also
the alcohol selection. Either side of the restaurant is able to choose from this menu. This
allows people to have a glass of fine wine to celebrate a special occasion, or simply to have a
few beers with the boys.

The reason why we are serving steak as a main dish is because of its popularity. Statista
states that 85% of Canadians eat meat (Statista, 2015). Sure they maybe more restaurant
styles that could be very different than others in London; for example, ethnic themed. But as
you segment very specific, than that is when you may lose consumers. Not everyone loves
ethnic or foreign food, but we know a lot enjoy steak.

Attached are the menus for the restaurant.

7. Pricing
The pricing strategy that will be implementing in our restaurant will be the status quo pricing
technique. This entails trying to meet the competition’s prices. In order to maintain a high
market share, we have to have competitive prices. We also have to make sure, however, that
we have a high enough profit margin in order to fulfill our needs of the business. The Keg, for
example, is an established price leader. They also possess a good margin of the steakhouse
market share in London. They are a prime leader for us to keep an eye. This is especially
important when they are our closest competitor at their Masonville location while we are
located in Highbury North. In order to keep our prices comparable, it may be necessary to
shop at competitor's stores. This way we also eliminate any battles with our competitors. We
do believe that our customers will be gaining value from being our status quo pricing as we are
supplying special features such as a gluten-free and locally sourced meats. An advantage of

9
having a status quo pricing strategy is that you have not inherited an adaptive strategy. An
adaptive strategy “responses to circumstances that are specific to your market” (Study.com,
2018). This simply means being able to blend in with the other restaurants without standing out
too miserably. Customers may not want to try a restaurant they know nothing about if their
prices are larger than what they know they already enjoy. Sometimes in order for customers to
try the product, the price has to be right first. The pricing strategy we will also be implementing
is the even-priced strategy. This strategy works well with our restaurant as it emphasizes the
quality of food that we present to our customers.

8. Distribution Decisions
The location we have decided to place our restaurant is in the northern part of Highbury. More
specifically it is on Highbury and Killaly. When figuring out where our restaurant would be
located, we first looked at what age population we would be targeting towards. Established
adult late category seemed to meet our criteria as they have the higher income. This group is
more mature and have more refined tastes. A steakhouse is a great option for that as steak is
a very liked dish in Canada. Statista states that 85% of Canadians eat meat (Statista, 2015).
Now steak is just a refined cut of meat. This fits what this age category is looking for. Many
established adult late people seem to live in the Masonville area. Now, where we are located is
just east to that location, but there are also many retirement homes that are located in the
north London area. This location is also ideal as this restaurant will be the only fine dining
restaurant in the area. It just so happens that there are buildings for lease at the moment which
would work great for an eat-in restaurant. Our restaurant still shares the bar aspect with fine
dining area. 10,500 employees work in the London Health Sciences Centre which is shared in
locations by both North and South. Having a spot for these workers to go and have a drink at
our bar is very crucial for our market share. All in all, it just seems right to have our business
located in this jurisdiction.

The floor plan consists of two different sections. The one side is the fine dining experience
whereas the other side is the bar. In between these two sections is the kitchen. The reason
why we are distinguishing these sides separately is that each side is segmented towards a
different market. The dining side is targeted toward the established adult late segment, and the
bar is targeted to everyone. The bar side consists of a cheaper menu and a dance floor in
order to satisfy everyone’s needs. We give everyone an opportunity to come to our restaurant
no matter what your income status may be. As was stated earlier we are using a concentrated
segment strategy which is still being utilized. Established adult late is still our main priority for
this restaurant. But we do feel that we should not steer away from the other consumers in the
area as we would lose out on many consumers.

10
The name we have decided for our restaurant is Muskoka Roadhouse and Grill. This name will
not only attract a wider customer base but will have a feeling as if you are sitting back at your
cottage enjoying a nice Muskoka style grill house. Our two-part restaurant will include a formal
side with the taste of fine dining, and a bar side with a taste and feel of the good ole outdoors.
We believe that this name will thrive with our menu as it has been modified specifically to our
two-part style restaurant with our grill side and our roadhouse side.

The ways we would distribute our foods would be eat-in, take-out, and also through a delivery
service called JustEat! It simply would not make sense to have a drive-thru with this restaurant
as it would take too long to cook in order for it to seem like a convenience for the customer.

Attached is the floor plan for the restaurant.

9. Marketing Communications Plan

As being a brand new business, it is important to drum up attention for our restaurant. In order
to do this, we must inform people about what we have to offer as a restaurant that is different
than others. One of our first advertisements would be in a newspaper. This would attract and
inform our target market of the established adult late category. This advertisement informs
customers how we are a different steakhouse compared to our competitors. Muskoka
Roadhouse and Grill, black tie dinners, or a night out with friends. Come to relax and enjoy
some 5-star dining and decor with us open 24/7. The full advertisement is attached. There is
another advertisement that is a more subtle. This advertisement explains: Come relax with us;
Muskoka Roadhouse and Bar. This to imitate the reminding function. This advertisement may
not be used until later on since we are new company.

11
Another way to inform people about our restaurant would be through OOH (Out-of-home
advertising). The most efficient way for us to do this type of advertising would be through bus
shelters ads targeting specific neighborhoods near the restaurant. This would be the cheaper
option compared to having to rent out billboard space. This advertisement would be very
similar to the newspaper ad along with a relaxing picture esq image of Muskoka. We would
also be employing direct marketing by handing out discount flyers door to door which would be
an example of direct persuasive advertising. This would make sure that we would reach as
many people as possible to inform them about the restaurant. The flyers would start off with a
small discount or possibly a free beverage with a meal. This would be utilizing a leader pricing
by ensuring customers to simply come in and try our food. As we grow as a restaurant, we
may be able to increase our discounts, but it would be difficult to do right now due to lack of
funds.

We do realize, however, that social media is a big part of modern society. We would make
sure that we have specific pages for our restaurant on all appropriate platforms such as
Facebook, Twitter, Instagram. These pages would cost next to nothing and could be run by us.
Being close by to very big competitors, product differentiation is crucial. The way we have
designed our restaurant and the way we are going to market it, we believe that we will have a
strong business and create a luxurious dining experience for the established adult late
segment.

Attached are the advertisements that will be utilized for the restaurant.

External Advertisements

Muskoka Roadhouse and Grill, black tie

dinners, or a night out with friends.
Come to relax and enjoy some 5-star
dining and decor with us open 24/7.

Located on Highbury and Killaly.

12
Taken From: https://www.discovermuskoka.ca/best-ways-experience-fall-colours-muskoka/

Taken From: https://wallpaper.wiki/free-download-campfire-wallpaper-2.html/wallpaper-wiki-campfire-1600x1200-high-resolution-pic-wpb003702-2/

Bibliography
Best Ways to Experience Fall Colours in Muskoka. (2018, May 07). Retrieved from

https://www.discovermuskoka.ca/best-ways-experience-fall-colours-muskoka/

Cloud Object Storage | Store & Retrieve Data Anywhere | Amazon Simple Storage Service.

(n.d.). Retrieved from https://s3-us-west-2.amazonaws.com/

Home. (n.d.). Retrieved from https://www.kegsteakhouse.com/

Keg Products – Overview. (n.d.). Retrieved from https://www.kegsteakhouse.com/keg-

products/overview/

13
The Keg Steakhouse Prices and Locations. (n.d.). Retrieved from

https://www.menuwithprice.com/menu/the-keg-steakhouse/

Meat consumption in Canada 2015 | Statistic. (n.d.). Retrieved from

https://www.statista.com/statistics/521135/meat-consumption-canada/

M. (2015, September 15). Canada Is in a Recession | Money. Retrieved from

http://time.com/money/4035562/canada-recession/

Moxie's Bar & Grill. (n.d.). Retrieved from https://moxies.com/restaurant-

locations/ontario/london-downtown/drink

Photos, B. (2017, April 10). Campfire-1600x1200-High-Resolution-PIC-WPB003702. Retrieved

from https://wallpaper.wiki/free-download-campfire-wallpaper-2.html/wallpaper-wiki-

campfire-1600x1200-high-resolution-pic-wpb003702-2/

Population Density. (n.d.). Retrieved from https://censusmapper.ca/#13/43.0009/-81.2458

Small Business Tourism. (2016, November 17). Key Small Business Statistics - June 2016 -

SME research and statistics. Retrieved from

https://www.ic.gc.ca/eic/site/061.nsf/eng/h_03018.html#point2-3

Social Wedia - Official links and website addresses for people, places and things.

SocialWedia.com. (n.d.). Retrieved from http://socialwedia.com/

Tony Roma's Prices. (n.d.). Retrieved from https://www.toprestaurantprices.com/tony-romas-

prices/

Tony Roma's Steakhouse Restaurant - Ribs, Seafood, Steaks. (n.d.). Retrieved from

https://tonyromas.com/

14