ADRESSING MARKETING

AND OPERATIONAL ISSUES

AT CHATTHA’S
Company Overview

 fine-feasting eatery

 situated in Sector F-10, Tariq Market Islamabad

 concentrates on customary food with a select taste in twin urban

communities

 provides a unique combination of excellent food at value pricing

with a fun and entertaining atmosphere.
Mission Statement

FARM TO TABLE
Company Philosophy and Product
Line
 Best dining administrations
 Quality conscious
Sr. number Product (Main course)
1. Chicken Biryani
2. Nihari
3. Tawa Fish
4. Desi Ghee Mutton/Chicken Karahi
5. Turkish Boti
6. Beef/Chicken Kabab
7. Chicken Rajistani Boti
8. Chicken Madrasi Handi
9. Makhni Gurr Brownie
EVIEWS OF THE CUSTOMER
 Key Partners
Key Activities Cost Shaheen
-Catering Value
-Rent Chemist
authentic desi Proposition
Customer -Inventory World Mart Key Channels Revenue
food providing
Segments -Furniture (Suppliers) Resources Streams
-Preparing food healthy and -Official
-Youth -Equipment ethnic food -Organic Farm -Classified Website -Sales
items freshly
-Adults with delicacy -Authentic Chefs -Facebook fan -Events
-renovation -CocaCola
-Upper class and extreme Pakistani street Pakistan -Organic Farms page -Exhibitions
-Training and
care food -Capital -Instagram
-Middle class Hiring -Meat Pro -Catering
-Pleasant and -Customer
-Salaries -Golra Dairy
comfortable satisfaction
-Raw Materials Farm
environment
-Sky Media
 Key Activities
Customer Segments
-Catering authentic desi food
-Youth
-Preparing food items freshly with
-Adults
delicacy and extreme care
-Upper class
-Pleasant and comfortable environment
-Middle class
 
Key Partners
Cost Value proposition
Shaheen Chemist
-Rent -providing healthy and ethnic
food World Mart
-Inventory
-Authentic Pakistani street (Suppliers)
-Furniture
food
-Organic Farm
-Equipment
-Customer satisfaction
-CocaCola Pakistan
-renovation
-Classy Environment
-Meat Pro
-Training and Hiring Affordable prices
-Golra Dairy Farm
-Salaries
-Sky Media
-Raw Materials
Channels Revenue Streams

Key Resources -Official Website -Sales

-Classified Chefs -Facebook fan page -Events

-Organic Farms -Instagram -Exhibitions

-Capital -Catering
BUSINESS PROBLEM

 current approach towards marketing, advertising and operations

 problem of fewer guests in restaurant because of low brand

name

 problem of competitor analysis.

 lack of quantifiable and actionable consumer insights.

 Issues regarding layout design

KEY OBJECTIVES

 Marketing Activities

Need of effective marketing plan to:

- penetrate in the food market
- gain maximum profit

To attract wider audience :

- Brochures will be designed
- Recommendations will be given to make a
website
Cost structure

 major role in consumer buying behavior

 Customers want to spend less and get more in return

 customers prefer quality against their spending

TARGET MARKET
 Upper middle class as well as youth

 To attract target audience:

-Brochures will be designed

- Student packages will be introduced and delivery

of those packages

- Operational plan consisting of industry cost

analysis will be designed

- Sales plan which includes personal sales, sales promotion and

Public relations will be designed
OPERATIONS

 Issues regarding operations relating to the employee

engagement, employee retention, clear understanding of
management’s role ace by Chattha

 Recommendations after a comprehensive analysis will be

provided

 Contact suppliers and wholesalers who provide quality food

items at low cost
MANDATE
Core Issues Activities Deliverables
Marketing strategy 1. Marketing plan The achievement of gathering's targets will prompt to
2. STP analysis advancement of proficient and productive business
and
3. 4Ps systems and operations for ““Chattha’s””
Operations Strategy 4. Brand awareness customer survey
5. Questionnaires
6. ATL & BTL activities
7. Keller's Brand Equity Model
8. Human Resource strategy
9. ServQual- RATER Model
10. Business model
Financial Projections 1. Sales forecast Researchers follow the tendency to create a 3 Years
2. Operating profit margin Financial Analysis guide, keeping in perspective
3. Income statement and balance sheet present and future records of ““Chattha’s Authentic
4. Cash flow statement Pakistani Street Food”. Researchers will likewise
give an itemized Break-even Analysis.
Environmental Analysis 1. SWOT analysis In the wake of directing a point of interest exploration
2. Strategic grouping analysis on the aggressive setting, Researchers tends to plan
3. Industry life cycles analysis a one of a kind methodology to make an upper hand
4. Porters five forces model for ““Chattha’s Authentic Pakistani Street Food”
5. Competitor analysis
6. PESTEL Analysis
7. Resource capabilities
8. VRIO framework
9. 7’S of McKinsey
EXTERNAL ANALYSIS
 PESTEL ANALYSIS
Political  No political pressure
 Unpredictable events
Economic  GDP
 Economy is growing
 Interest rates decreases
 Inflation rate
Social environment  Increases in trend
 Considerable demand
Technological  Up to date
 Need to increase time of order
processing
 Need to increase online blogs
Environmental  Uncertain environmental changes
Legal  Food ordinance
COMPETITIVE ARENA

 Major Competitors

-Monal
-BBQ Tonight
-Chaaye Khana
Subject Chattha’s Chaaye Khana BBQ Tonight Monal

Overview
Chattha’s offers a unique Chaaye Khana is offers Bbq Tonight is a Monal offers Chinese,
Traditional Cuisine with Pakistani-BBQ menu. traditional restaurant and Pakistani and
fine dining services. serving authentic Desi Continental food. The
cuisine. remarkable blend of
health and taste is their
peculiar specialty.

Competitive Advantage  Low prices  Brand name  Layout designing/  Quality food
 Relaxing atmosphere location  Variety in product line
 Quality food  parking area  Educated staff

Target Market
Upper-Middle class Upper class Middle- lower class Upper, middle class
Marketing Strategy Cost leadership Penetration Penetration Market
strategy strategy strategy segmentation
and product
differentiation

Major Product Offering Traditional Cuisine Fast Food Desi and Continental
Bar.B.Q and
Continental Food

Pricing and Cost Low prices High prices High prices High prices

Strengths Low prices and Name of the Name of restaurant Quality food and
friendly environment. restaurant product variety
Threats Same product line of Quality Competitors Continental
competitors at low products offer more restaurants
cost offered by product variety chain i.e.
competitors Tuscany
Courtyard,
Street 1.

Opportunities Marketing activity to Penetrating into other Penetrating into other Quality food and
gain more revenues cities of Pakistan cities of Pakistan and service as well as
especially by using abroad. exotic environment
advertising tools
 Bargaining power of buyers
-High
Threat of new entrant
-Health conscious customers
- low entry barriers -Changing consumer pattern of
eating

PORTER’S
FIVE FORCES
MODEL

Rivalry among existing

Bargaining power of firms
Threat of substitutes
suppliers -Intense competition
-High
-Moderate -Shift from price to menu
-homemade meals,
-Dependence of businesses based restaurants
convenience stores
on suppliers -Direct competitors: Monal
&BBQ Tonight
Industry Life Cycle Analysis

Chattha’s

Introduction Maturity
Decline
Growth
 Strategic Grouping Analysis

HIGH
Monal
Chattha

Quality

Des Perdes
Bbq Tonight
LOW
HIGH

Market share
INTERNAL ANALYSIS
 STRENGTHS
-Emphasis on great WEAKNESSES
nourishment -Less brand awareness in
-Reviving the trend of Islamabad
Pakistani sustenance -New eatery in town
- Considering staff -Less information about
individuals as business rivals
accomplices -Less focus on advertising

SWOT
ANALYSIS
OPPORTUNITIES
-High revenues due to immense
population of Islamabad
- Can capture target customer THREATS
-High threat of
as it offers fresh and healthy
competition
food
- Penetrating into other areas of -Presence of many other
restaurants
Islamabad
Resource and Capabilities
 Resources
 Sufficient resources
 Classified Chefs
 Farms of vegetables

 Capabilities
 Centralized management system
 Loyal customers

 Core Competencies
 Product offerings
 Quality traditional food
 Focus on customer satisfaction
Startup Summary
Resources Cost (Rs.)
Accommodation of plaza& security 3,000,000
cost
(advance 5 months)
Construction/renovation 7,580,000
Furniture 1,873,000
Electrical equipment and Tandoor 550,000
Kitchen Exhaust System 6,000,000
Cutlery and crockery 110,000
Lightning and décor 290,000
Sound system & LED 200,000
LED boards and Panaflex 350,000
Salaries 230,000
Labor expenses (Food)/month 24,750
Raw material 1,050,000
Utility/miscellaneous expenses 430,000
Printing expense (Menu, brochures, 52000
bags)
VRIO FRAMEWORK
Applying 7’S of Mckinsey on ““Chattha’s”
Authentic Pakistani Street Food”

Strategy Best dining services, Satisfy customers

Structure Top down approach
System Right person at the right job is not properly placed
Shared Different people work together
values
Style Unique style of dining
Staff Lazy staff
Skills Skills are not enhanced
Marketing and Sales

 Customer relationship

 Promotion activities
 ATL
 BTL

 Price structure
Research Objective

 Effect of price
 Awareness among people
 Effect of location
 Student packages
 Variety of products
 Role of advertisement
 Chattha’s position in the market
 Customer loyalty
Research design, Population
and Sample
 Quantitative data
 Random sampling
 Residents of Islamabad
 150 Questionnaires
Research Methodology

 Averages
 Descriptive
 Graphs
 Correlation
Framework
Hypothesis Statement

 Ho: There is no relationship between product and sales.

 H1: There is a relationship between product and sales.
 Ho’: There is no relationship between price and sales.
 H1’: There is a relationship between price and sales.
 Ho’’: There is no relationship between place and sales.
 H1’’: There is a relationship between place and sales.
 Ho: There is no relationship between promotion and
sales.
 H1: There is a relationship between promotion and
sales.
SULTS AND INTERPRETATIO
Gender 62% (Male) 38% (Female)

Profession 53.67% (students) 39.33% (employees)

Monthly income 18% (60,000-80,000) 36.33% (above 100,000)

 Which of the following restaurants have
you come across in the last 3-6 months?
Male
Respondent Have not heard 6 months or
s of it within 2 months 3-4 months 5-6 months more
Monal 6 11 20 9 50
Chaaye 17 26 22 23 8
Khana
BBQ Tonight 5 20 31 18 22
Chattha’s 18 26 20 23 9
Female
Responden Have not heard within 2 6 months or
ts of it months 3-4 months 5-6 months more
Monal 2 18 6 12 16
Chaaye 12 17 12 11 2
Khana
BBQ Tonight 4 8 16 13 13
Chattha’s 11 19 11 10 3
FREQUENCIES
Additional Services:

 
Product Quality:
Product Facilities:
 PRICE
Extremely Satisfied Neutral Not Extremely
Satisfied Satisfied Dissatisfied

Reasonable 6% 31.33% 44.67% 17% 1%

Cheaper 17% 46% 29.67% 6% 1.33%

Lowest 39.33% 35.33% 19.67% 4% 1.67%

Price
PLACEMENT

Almost 1-2 3-4 Monthly Occasionall

Daily times/week times/week y
Visit 2.33% 11% 7.67% 34.33% 44.67%

Strongly Agree Neutral Disagree Strongly

Agree Disagree
Place 7.33% 14.67% 25.33% 19.67% 33%

Yes No Neutral I have never

visited
Brand 16.33% 58% 17.67% 8%
Reputation
PROMOTION

Strongly Agree Neutral Disagree Strongly

Agree Disagree

Seasonal 1% 7.33% 35.67% 46% 10%

Promotion

Promotion 1.33% 2.67% 36% 43.44% 16.67%

Attractive 0.67% 4.67% 34.33% 34.33% 26%

 REGRESSION
Coefficients
Model Unstandardized Standardized t Sig.
Coefficients Coefficients
B Std. Error Beta
554161.04  
(Constant) 2 102489.604 5.407 .000
124346.94
Prod 4 36636.782 .676 3.394 .002
1
Price -72837.622 26914.637 -.663 -2.706 .012
Placement 16276.222 20335.307 .150 .800 .431
Prom 13755.268 19923.633 .133 .690 .496
a. Dependent Variable: Sales
Product

Product Sales

• Less product variety

• More focus on unique product and services
• Waiting area
• Music and decoration for parties
Price

Price Sales

 Price penetration strategy

 Reasonable Prices
 Increase in sales
Place

Place Sales

 Tariq market F-10/2, Islamabad

 Marketing strategies
Promotion

Promotion Sales

 Lack of promotion activities

 Need of social media marketing
Segmentation

 Demographics
 Age, gender, ethnicity, household income

 Psychographics
 customer choices, their preferences and behavior

 Geographics
 region, area, location and climate
Targeting

 Upper middle class

 Need of targeting lower middle class as well
Positioning

identify or communicat
analyze the explain the
understand e and deliver
market competitive
target the chosen
competiton advantage
market position
Student Packages
Deal 1 Deal 2
( served one person). RS 240 ( served 2 persons only). RS 640
·1 plate special biryani ·Full Seekh Kabab Karahi
·1 piece chicken tikka ·1 plate Shashlik (4 pieces per
plate)
(served with Raita, salad and
Cold Drink) ·2 special naan
Deal 3 ( served with raita, salad and
(served 3-4 persons only) RS. 900 ColdDrink)

·Full Chicken Karahi

·1 plate biryani
·3 naan
·1.5 litre coke
·(served with raita and salad)
New Arrival

 Karailay
 Palak gosht
 Saagh
 Bhindi
 Mix vegetables
Delivery Services and Kiosks

 Free delivery services for students

 Kiosks in universities and colleges
 Traditional food for hostelites
Sales
Promotion
Taglines

 Farm to Table
 Authentic Pakistani Street Food
 Your preferences is our concern
 Essence of culture.
Brochure

 Attractive brochure
 First page-basic information about Chattha’s
 Second page-list of services, specialty and tagline
 Third page-food item pictures
Website Design

 About the restaurant and location

 Who they are
 Menu
 What they do
 Gallery
 Apps option
 Payment through cards
 Customer feedback
 Map of the location
 Contact information
Training Programs
1st phase
• Firstly the trainer need to
analyze the deficiencies
and also identified the
weak areas of the staff.
Then through some good
practical tasks, encourage
the staff and also boost
their performance
throughout the task. the
trainer also need to
explain the advantages
and disadvantages of the
training session.
2nd phase
• In the second phase,
trainer must ask from
trainees about their
motivation level. Chattha's
staff lacks motivation
because there is no proper
appraisal system for them.
Due to this reason, they
are unable to put
efficiency in their
performance. For this
purpose, trainer must
provide trainees a paper
with some questions
related to motivational
level and tell them to
solve it honestly.
3rd phase
• In 3rdrd phase of training,
trainer accurately analyze
the motivational level of
staff. Then ensure the top
managements in 5 minutes
meeting that there is a
need to improve their
motivation by providing
them incentives and
allowances as well as
some sort of daily
entertainment. Due to this,
staff will be able to
perform efficiently and
effectively.
Reward System

 Employee Motivation
 Lack of reward system
 Performance appraisal system
 Incentives, promotion and allowances
 SERVEQUAL: RATER
 Measure quality standards
 5 key dimensions
Responsiveness and Assurance

 Customer service operator

 record of customer complaints
 give immediate response via emails and calls
 Supportive staff
 Assurance of high quality service
Tangibles, Empathy and Reliability

 relaxing ambiance and cozy environment

 Prioritizing services
 Hiring dedicated staff
 Humanizing restaurant’s social media
 Gaining customers’ trust
Service Gap Model
 Gap 3
 “Discrepancy between service quality specifications and
the service deliver”-Service Delivery Gap
 Lack of trained staff
 Lack of product knowledge of staff and unified team work
 Training sessions
Customer Based brand Equity Model
Step 1

 Brand Identity-Who you are?

 Identification of target market
 Quality traditional food
 “Farm to Table”
Step 2

 Brand Meaning-What are you?

 Two weeks training program
 Focus on style and design of the restaurant
 Market penetration strategy
 User profile, purchase and usage situations
 History, heritage and experiences
 Step 3
 Brand response-What about you?
 Judgments
• Quality
• Credibility
• Consideration
• Superiority
• Warmth
• Fun
• Excitement
• Security
• Social approval
• Self respect
 Feelings
Step 4

 Brand Resonance-Relationship between brand and

customer
 Prime element of brand equity model
 Behavioral loyalty
 Attitudinal attachments
 Sense of community
 Active engagement
 Financial Analysis (Income Statement)

  2017 2018
     
Sales 17,422,093 106,457,949

Expenses    
     
Labor and wages 3,850,000 3,850,000

     
Operating expenses 6,350,142 29,145,584

     
Total expenses (10,200,142) (32,995,584)

     
Profit before interest and tax 7,221,951 73,462,365
 

     
Taxation - -

     
Net income 7,221,951 7,221,951
Conclusion and
Recommendations
 Inability to generate revenues
 Need of an effective marketing plan
 Introduce student packages with free home delivery
 Create a friendly and comfortable environment
 Training of staff
 Establish a website