Marketing Plan for Dog Central

Ed Evans

Meghan Moylan

Lauren Vetter

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TABLE OF CONTENTS Executive Summary………………………………………………………….……….…3 Situation Analysis…………………………………………………………………….....4

Macro-Environment Analysis…………………………………………………...4 Industry Analysis………………………………………………………………..5 Competitor Analysis…………………………………………………….…...….5 Company Analysis…………………………………………………….………...7 Customer/Segmentation Analysis……………………………………….………8 SWOT Analysis…………………………………………………………….…...9

Overall Marketing Strategy…………………………………………………….……….11 Marketing Objectives………………………………………………………...…11 Financial Objectives……………………………………………………….……11 Target Markets…………………………………………………………….…….12 Positioning…………………………………………………………….………...12

Marketing Mix……………………………………………………………….………….13 Product and Service……………………………………………….…………….13 Pricing………………………………………………………………….………..15 Promotion………………………………………………………….……………20 Distribution…………………………………………………….………………..21 People…………………………………………………….……………………..22 Process………………………………………………………………….……….23 Physical Evidence…………………………………………….…………………24

Implementation and Control………………………………………………….…………26 Budget……………………………………………………………….…………..26 Timeline…………………………………………………………….…………...26 Monitoring……………………………………………………….……………...26

Appendix…………………………………………………………………….…………..28 References……………………………………………………………………….………35

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EXECUTIVE SUMMARY Downtown Mount Pleasant is home to many successful and locally owned small businesses. On the corner of Main St. and E. Michigan, sits Dog Central, the city’s newest (and some would argue, best) hot dog restaurant. Owner and Central Michigan University alumni, Paul McFall, opened the doors of his unique and eccentric shop on August 13, 2012 (Shaffer, 2012). Since then, McFall has been successful in serving the needs of the Mount Pleasant community in a way that his competition had not. Dog Central offers an unfathomable amount of toppings that customers can pile high on their hot dog. While they have a menu chock full of crazy and zany topping combinations, all dogs are customizable to fit the specific needs of each customer. McFall is currently doing a fantastic job of acquiring customers. Upon entering the restaurant on a weekend night, one will quickly realize how popular Dog Central really is. That is, if they can fight through the crowded doorway and actually get into the store. Once the bars close around 2 A.M., students usually want something to eat before heading home and Dog Central is their only option within walking distance. Not that they are complaining; students can’t seem to get enough of these delectable hot dogs. However, if one were to enter the store in the middle of the day on a weekday, they may question if they were in the right place. The restaurant looks much different in the daytime, as they are still struggling to stimulate demand during the week. Like many of the businesses in Mount Pleasant, Dog Central loses half of their customer base when the college students go home during the summer months. Therefore, it is crucial that they focus on expanding their customer base of local Mount Pleasant residents. Our goal for Dog Central is to establish it as a “household name” in the city of Mount Pleasant. In order to do so, we boiled down our overall goal into three main objectives. They include increasing brand awareness, increasing foot traffic in the store, and the continuous differentiation of Dog Central compared to other restaurants and eateries in the area. We believe the strategies and tactics associated with these objectives will pave the way for Dog Central to be a recognizable name in this area. One of our strategies to differentiate Dog Central from the competition is to establish a separate menu of higher quality hot dogs, which will be offered at a premium price. Offering customers multiple price points will draw in people who may have never considered Dog Central as a place of luxury and prestige. In addition, creating new combos and specials for families and individuals will also act as an incentive for new customers to give Dog Central a try. We also suggest the purchase of multiple hot dog carts, which can be placed strategically around the city during outdoor events or gatherings. This will not only increase brand awareness, as the name and logo will be seen in other than just the downtown area, but it will also increase overall sales, as it gives customers another opportunity to purchase the dogs. We have developed an approximate budget for this marketing campaign using the objective and task method of budgeting. This allows us to look at what we need to purchase in order to accomplish each strategy and assign a monetary value to each item. After determining the costs associated with each action program, we discovered our total budget to be $37,414.97. Each line item has its own total cost, allowing the owner to pick and choose what he feels is necessary, if the marketing plan is too costly to implement all at one time. Once the campaign is complete, Dog Central will be busier during the weekdays and even in the summer months. The restaurant will be well on its way to becoming a famous and iconic Mount Pleasant eatery.

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SITUATION  ANALYSIS      Macro-­‐Environmental  Analysis  Political/Legal              One  of  our  strategies  is  to  implement  mobility  into  Dog  Central’s  culture.  This  includes  the  utilization  of  a  mobile  hot  dog  cart  that  can  be  transported  to  various  locations  through  the  week  to  make  a  profit.  Since  Dog  Central’s  target  market  is  college  students  placing  this  cart  outside  bars  after-­‐hours  would  prove  to  be  a  strategic  idea.  Young  adults  leaving  the  bars  would  be  appreciative  of  the  convenience  of  the  cart  being  brought  directly  to  them.    One  issue  that  may  arise  is  zoning  laws/restrictions.  The  bars  that  the  cart  would  be  stationed  outside  of  might  protest  this  if  they  themselves  serve  food  and  don’t  want  us  to  take  away  from  that  profit.  This  would  bring  about  conflict  with  other  local  businesses,  which  would  put  our  operation  in  a  bad  light  and  make  it  seem  like  we  are  illegally  infringing  on  their  territory  for  our  own  gain.  Making  sure  that  we  have  the  permission  and  documentation  to  operate  our  mobile  carts  on  their  property  is  crucial  so  Dog  Central  does  not  face  any  legal  controversies.          Economic            Mount  Pleasant’s  unemployment  rate  is  5.7%  and  the  median  household  income  is  $37,367.  The  income  per  capita  is  $  18,346.  The  recent  job  growth  has  been  negative  (-­‐1.57%)  with  a  predicted  future  job  growth  of  31.16%  within  the  next  ten  years.  The  sales  tax  is  6%  and  the  income  tax  is  4.35%.  Sales  and  office  occupations  make  up  the  majority  with  27.41%.  The  standard  of  living  is  fairly  low  and  most  families  do  not  have  disposable  income  to  throw  around.  These  issues  are  relevant  when  trying  to  recruit  the  full-­‐time  residents  of  Mount  Pleasant  to  become  Dog  Central  regulars.  (“Economy  in  Mount  Pleasant,”  2014).    Socio-­‐Cultural            The  total  population  of  Mount  Pleasant  is  26,016  people  (“Economy  in  Mount  Pleasant,”  2014).  This  number  doubles  when  Central  Michigan  University  students  are  on  campus  during  the  fall  and  spring  semester.  College  students  occupying  Mount  Pleasant  bring  about  new  social  and  cultural  trends.  Dog  Central  is  considered  a  “different”  alternative  for  a  fast  and  unique  dining  experience.  Mass  customization  falls  under  this  “different”  experience.  People  love  the  idea  of  having  their  products  tailored  specifically  for  them,  but  for  the  company  to  offer  this  incentive  to  all  its  consumers.  Metropolitan  cities  such  as  Grand  Rapids  and  Detroit  are  currently  following  the  trend  of  eclectic  hot  dog  restaurants.  Dog  Central  is  bringing  an  Urban  feel  to  a  rural  town.      Technology  and  Infrastructure            The  use  of  smartphones  and  apps  has  gained  much  attention  and  use  among  today’s  consumers.  People  desire  instant  gratification  and  use  the  mobile  Internet  frequently  to  acquire  their  wants  and  needs  faster  than  ever  before.    This  technology  has  instilled  itself  into  the  lives  of  consumers  and  they  are  heavily  dependent  on  it.  Consumers  rely  on  smartphones  to  make  their  purchase  decisions.  People  are  using  their  smart  phones  and  mobile  devices  more  than  they  are  utilizing  PC  and  live  television.      

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Industry  Analysis    Characteristics  of  the  Industry              Key  characteristics  of  this  industry  are  full-­‐time  and  university  residents  of  a  rural  college  town.  The  city  of  Mount  Pleasant  grows  potential  customers  each  year  with  the  enrollment  of  new  students  and  the  development  of  new  businesses.  These  students  who  have  the  money  to  spend  on  food  that  is  unique  and  different  will  do  so  for  the  experience.  This  also  applies  to  the  economic  status  of  those  full-­‐time  residents  in  Mount  Pleasant  who  will  be  able  to  spend  extra  money  on  a  hot  dog  with  a  twist.  Competitors  in  this  industry  compete  to  produce  products  and  the  lowest  cost  to  generate  customer  satisfaction,  therefore  resulting  in  sustained  customer  retention.    Overall,  the  barriers  to  entry  in  the  restaurant  and  food  service  industry  are  medium.  This  is  due  to  the  overall  competition  from  competitors,  the  initial  pricey  start-­‐up  investment  to  get  a  restaurant  off  the  ground,  and  the  substitutes  that  other  food  services  offer  at  a  competing  price.      Key  Industry  Drivers            Consumers  dabbling  in  the  food  industry  want  something  that  is  high  quality  but  still  affordable.  How  quick  restaurants  can  get  consumers  what  they  want  is  a  key  industry  driver.  Flexibility  is  another  driver  in  this  industry.  Not  all  consumers  have  the  time  to  visit  restaurants  during  certain  hours  of  the  day  because  of  conflicting  job  schedules.  Flexible  hours  are  crucial.  They  want  to  know  that  they  can  grab  something  quick  before,  during,  or  after  work.  Consumer’s  income  is  a  key  driver  in  this  industry.  If  they  have  the  money  to  spend,  they  will  spend  it.  This  industry  responds  to  economic  change  by  providing  promotional  deals  that  are  affordable  in  economic  downturn,  which  enhances  the  customer  loyalty.    Marketing  in  the  Industry            The  consumer  segments  in  the  restaurant  and  food  service  industry  are  people  who  have  a  disposable  income  and  are  able  to  comfortably  spend  money  on  food  without  breaking  their  bank.  This  can  range  from  ages  young  to  old  and  consists  of  people  who  posses  a  full/part  time  job  that  would  be  able  to  sustain  the  costs  of  going  out  to  eat.  The  needs  of  these  people  consist  of  a  place  that  can  provide  a  legitimate  food  service  at  an  affordable  price,  as  well  as  providing  these  goods  and  services  in  a  timely  manner.  Today’s  consumers  are  primarily  concerned  with  how  fast  they  can  acquire  their  food.  Marketing  in  this  industry  needs  to  reflect  that.  Commercials  and  other  outlets  of  media  are  the  primary  marketing  strategy  for  this  industry.  Social  media  also  plays  a  significant  role  in  marketing  for  the  industry.  Twitter,  Facebook,  and  Instagram  accounts  for  restaurants  have  become  the  norm  and  are  an  effective  way  to  reach  the  masses  and  send  out  promotional  deals  and  coupons.  These  social  media  outlets  are  also  a  great  way  for  consumers  to  learn  more  about  the  products  being  distributed.      Competitor  Analysis    Taco  Bell  Characteristics              Taco  Bell  is  a  fast  food  service  that  provides  affordable  Mexican-­‐themed  menu  items  to  people  on  the  go.  The  franchise  currently  operates  5,800  restaurants  in  the  United  States.  Mount  Pleasant  Taco  Bell  had  the  highest  grossing  sales  of  any  Taco  Bell  in  the  nation  for  

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the  “Cheesy  Gordita  Crunch”  menu  item  in  2013.  This  exemplifies  how  many  people  in  the  city  of  Mount  Pleasant  are  frequenting  Taco  Bell  over  its  competitors.  Consumers  like  the  chain’s  products  enough  to  consistently  buy  from  them.  The  chain  has  been  an  American  staple  since  1962.  They  are  an  industry  leader  in  fast,  late-­‐night  food  service.  Taco  Bell  is  owned  by  Yum!  Foods  (“Taco  Bell  Franchise,”  2014).    Resources              Since  Taco  Bell  is  a  franchise,  it  has  many  financial  opportunities  and  leeway.  Supplies  and  raw  materials  are  easily  acquired  through  the  franchisors  centralized  supply  chain.  The  start-­‐up  for  a  Taco  Bell  franchise  is  between  $1,3000,000  and  $2,500,000  (“Taco  Bell  Franchise,”  2014).  This  ensures  that  the  owners  who  operate  these  restaurants  have  the  financial  stability  to  stay  afloat  and  remain  profitable.    Strategy            Taco  Bells  primary  strategy  lies  in  their  ability  to  have  consistent  brand  awareness  throughout  the  nation.  They  are  an  established  chain  that  has  delivered  quality  service  for  many  years  and  consumers  are  comfortable  with  the  brand  and  trust  it.  A  core  competency  is  Taco  Bell’s  promotion  of  “Fourth  Meal,”  the  meal  between  dinner  and  breakfast  (“Taco  Bell  Franchise,”  2014).  They  have  strategically  placed  this  in  the  consumer’s  minds  that  when  they  are  hungry  late  at  night,  Taco  Bell  is  the  place  to  satisfy  their  cravings.  The  company  just  recently  incorporated  a  breakfast  menu  into  their  offerings,  which  is  unorthodox  at  a  Mexican  restaurant  and  gives  them  a  competitive  advantage.      Marketing              Taco  Bell’s  target  market  is  adolescents  and  young  adults  ranging  from  ages  15-­‐24.  They  segmented  themselves  as  an  organization  that  serves  affordable  Mexican  food  at  normal  business  operating  hours  and  well  into  the  late  night/early  morning.  The  company  can  be  seen  on  highway  billboards,  television,  and  even  has  it’s  own  radio  jingle,  reinforcing  their  slogan  to  “Live  Mas”.  They  also  operate  accounts  on  social  media  sites,  which  appeals  to  the  young  target  market  they  serve.  They  are  successful  in  their  attempts  to  position  their  brand  and  this  appeals  to  people  who  are  looking  for  fast  food  outside  the  box  of  a  typical  burgers  and  fries.      Menna’s  Joint  Characteristics              Menna’s  Joint  is  chain  of  restaurants  based  in  major  college  towns.  The  small  Michigan  based  franchise  costs  $150,000  to  start.  Menna’s  has  stores  in  Mount  Pleasant,  East  Lansing,  Kalamazoo,  Allendale,  and  Grand  Rapids.  The  popular  menu  item  that  the  company  prides  themselves  on  is,  “The  Dub”,  which  consists  of  a  grilled  tortilla  filled  with  meats,  cheeses,  and  other  condiments  of  a  customer’s  choice.  This  menu  item  can  also  be  served  as  breakfast  and  includes,  eggs,  sausage,  bacon,  and  other  breakfast  favorites.  The  Dub  comes  in  all  varieties  and  two  different  sizes  and  can  be  eaten  on  the  go  (“Franchise  DUBvelopment”  2014).        

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Resources              One  of  the  resources  that  Menna’s  possesses  is  the  young  and  friendly  environment  and  atmosphere  customers  experience  when  stepping  into  their  store.  This  is  a  very  important  factor  because  all  of  the  Menna’s  locations  are  in  college  towns  in  which  young  people  consistently  frequent.  Since  the  start-­‐up  fee  to  open  a  Menna’s  franchise  is  substantial,  it  ensures  the  quality  of  work  that  the  owners  will  contribute  to  their  employees  as  well  as  their  customers.      Strategies              Menna’s  is  the  leader  in  late-­‐night  food  for  students  attending  major  universities.  They  offer  a  delivery  service,  which  will  deliver  food  to  customers  into  the  early  hours  of  the  morning.  This  is  a  core  competency  for  them  because  when  young  students  are  out  late  at  night  and  become  hungry,  they  immediately  think  of  a  Dub  to  satisfy  their  late  night  needs.  The  fact  that  this  late-­‐night  food  can  be  delivered  to  their  doorstep  also  puts  Menna’s  at  an  advantage.  Menna’s  also  offers  ordering  delivery  items  online,  which  puts  them  ahead  of  the  game  with  the  continuous  technological  trends.      Marketing            Menna’s  target  market  is  college  students  who  are  looking  for  a  convenient  way  to  get  quick  food  delivery.  They  do  an  excellent  job  of  targeting  this  by  offering  a  customer  email  rewards  program,  which  gives  frequent  customers  combo  deals  and  promotions  on  their  birthdays    (“Franchise  DUBvelopment”  2014).  Menna’s  also  runs  a  Twitter  and  Facebook  account  which  customers  have  access  to  and  are  able  to  voice  comments  and  concerns.  The  On-­‐Campus  Coupon  booklets  contain  half-­‐off  deals  for  Menna’s  to  bring  customers  in  and  gain  loyalty.    Company  Analysis    Company  Strategic  Decision              Dog  Central’s  corporate  mission  is  to  serve  customers  quality  hot  dogs  that  are  personally  customized  to  their  specifications  and  to  create  a  modern  and  unconventional  atmosphere  where  in  which  people  can  come  and  enjoy  the  experience  as  well  as  the  product  they’re  being  served.  The  owner  of  Dog  Central,  Paul  McFall,  originated  from  Grand  Rapids,  Michigan  and  attended  Central  Michigan  University  for  his  undergraduate  studies.  He  grew  up  with  Yesterdog  and  The  Dog  Pit  and  wanted  to  bring  that  same  concept  to  Mount  Pleasant.  McFall  felt  that  the  Mount  Pleasant  community  could  benefit  from  this  urban  trend  and  what  Dog  Central  has  to  offer  (Shaffer,  2012).    Company  Performance              Dog  Central’s  competitive  strengths  are  that  they  have  an  ideal  location  that  consumers  are  able  easily  access  when  they  are  in  Downtown  Mount  Pleasant.  Along  with  this  location  are  the  extended  hours  of  operations  to  meet  the  demand  of  the  young  target  market.  Another  strength  is  the  company’s  ability  to  customize  their  product  to  the  specifications  of  their  consumer.  They  offer  a  wide  variety  of  toppings  and  condiments  to  fit  any  needs  or  wants  of  a  hot  dog  lover.  Their  lack  of  brand  awareness  is  seen  as  a  weakness.  This  is  primarily  due  to  the  fact  that  they  are  fairly  new  company  and  need  to  make  themselves  better  known  in  the  community.  Dog  Central’s  sales  in  the  past  year  have  been  steadily  

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increasing.  They  have  lines  out  the  door  on  the  weekends  and  loyal  customers  have  made  Dog  Central  a  staple.  Dog  Central  hopes  to  continue  this  trend  into  Year  2,  and  expand  their  horizons  by  reaching  even  further  in  their  sales  goals.      Resources  and  Competencies              Dog  Central’s  major  core  competency  is  customization.  Customers  are  able  to  choose  from  their  wide  range  of  various  menu  items  and  make  their  hot  dog  specially  tailored  to  their  wants.  A  competitive  advantage  that  Dog  Central  has  over  its  competitors  is  their  location.  They  are  located  in  Downtown  Mount  Pleasant  a  block  away  from  all  of  the  popular  bars  and  restaurants  that  Central  Michigan  University  students  spend  their  weekends  at.  Much  foot  traffic  circulates  this  area  on  weekend  nights.  Consumers  can  walk  there  after  leaving  the  bars  and  not  risk  the  danger  of  drinking  and  driving.      Marketing            Dog  Centrals  marketing  strategy  consists  of  a  mix  of  different  things.  The  company  has  a  Facebook  and  Twitter  account  which  can  be  accessed  by  consumers  and  the  timeline  feed  appears  on  the  company’s  website  (“Dog  Central,”  2014).  The  owner  Paul  McFall  personally  hands  out  “Free  Dog  Cards”  to  people  he  comes  across  who  haven’t  heard  of  the  establishment.  This  helps  increase  the  brand  awareness.  Radio  ads  are  also  in  place  for  Dog  Central  and  can  be  heard  by  consumers  in  the  Mid-­‐Michigan  area.  Dog  Central  also  holds  a  hot  dog  eating  contest  for  customers  and  gives  them  the  meal  free  of  charge  if  they  are  victorious.  This  contest  is  not  meant  to  make  profit,  but  to  get  customers  to  enjoy  a  fun,  alternative  dining  experience  and  to  keep  coming  back  to  Dog  Central.  Dog  Central  also  offers  lunchtime  “baskets”  which  consist  of  your  dog  of  choice,  fries,  and  a  soft  drink  all  for  $5  (“Dog  Central,”  2014).  This  strategy  helps  reel  in  customers  during  the  daytime  hours,  which  can  tend  to  be  a  bit  slow.      Distribution  and  Supplier  Analysis    The  current  method  of  distribution  for  Dog  Central  is  their  store.  In  order  for  a  consumer  to  order  and  purchase  a  hot  dog  is  for  them  to  physically  come  into  the  store.  Other  methods  of  distribution  are  to  be  greatly  considered,  such  as  expanding  on  mobile  hot  dog  carts.      Customer/Segmentation  Analysis    Segment  Characteristics              The  3  customer  segments  that  Dog  Central  targets  are  young  college  students,  professionals  who  work  in  Downtown  Mount  Pleasant,  and  families  of  the  Mount  Pleasant  area.  The  carving  up  these  market  segments  was  based  on  which  demographic  groups  were  utilizing  this  service  the  most.  The  aspect  of  income  also  came  into  play.  The  question,  “Who  can  afford  these  products  on  a  regular  basis?”  was  generated.  Young  college  students  typically  utilize  Dog  Central’s  services  late  at  night  after  being  at  the  bar.  This  appeals  to  them  because  of  the  late  hours  and  affordable  prices.  Lines  are  typically  out  the  door  from  Thursday-­‐Saturday.  Professionals  who  work  in  Downtown  Mount  Pleasant  go  to  Dog  Central  during  their  lunch  hour  to  grab  a  quick  bite  before  they  have  to  get  back  to  work.  Dog  Central  offers  $5  hot  dog  baskets  on  Tuesdays,  which  is  appealing  to  this  segment  as  well.    The  families  of  Mount  Pleasant  fill  the  void  of  consumers  when  the  students  are  at  home  during  the  summer  months.  .  

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Demand  Potential            The  number  of  undergraduate  students  who  attend  Central  Michigan  University  is  21,698.  This  is  primary  demand  for  Dog  Central.  The  population  of  Mount  Pleasant  is  26,016  residents,  which  makes  up  the  other  half  of  Dog  Central’s  demand  (“Economy  in  Mount  Pleasant,”  2014).  With  the  start  of  each  new  school  year,  new  students  arriving  bring  forth  more  demand  potential  for  the  weekends  and  late-­‐night  meals.  This  causes  an  increase  in  profits  and  trends.  The  age  of  the  target  group  can  also  restrict  the  population  of  customers  because  these  students  are  only  on  campus  from  August  to  May.      Behavioral  Characteristics              Typically  consumers  who  purchase  Dog  Central  are  those  who  are  loyal  to  the  brand  and  purchase  the  items  on  a  frequent  basis.  When  it  comes  to  college  students,  if  they  like  something  enough,  they  will  continue  to  purchase  it  on  a  regular  basis.  Since  the  weekends  at  Dog  Central  are  it’s  busiest  time,  the  college  student  segment  purchases  hot  dogs  and  other  menu  items  from  Dog  Central  religiously  during  Thursday-­‐Saturday.  The  customers  seek  the  benefit  of  being  able  to  customize  a  regular  hot  dog  into  something  completely  exceptional.    They  make  their  buying  decisions  based  on  if  they  have  enough  disposable  finances  to  contribute  towards  their  late  night  cravings.    SWOT  Analysis    Strengths            Dog  Central’s  first  strength  is  their  late  hours  of  operation.  Dog  Central  is  open  as  late  as  3  A.M.  Thursday-­‐Saturday.  This  is  strength  for  them  because  most  restaurants  downtown  close  much  earlier  in  the  night  and  those  who  are  out  at  this  hour  will  gather  at  Dog  Central  to  indulge  in  late-­‐night  food.  The  second  strength  that  Dog  Central  possesses  is  customization.  Dog  Central  offers  a  wide  variety  of  toppings  and  allows  the  consumer  to  choose  one  of  their  liking  to  make  their  hot  dog  as  unique  as  they  desire  it  to  be.  Dog  Central  offers  mass  customization  across  all  consumers.  Location  is  also  a  key  strength  for  Dog  Central.  The  restaurant  is  located  in  the  heart  of  Downtown  Mount  Pleasant  and  can  be  easily  found  and  accessed  by  consumers.  Many  local  businesses  and  bars  and  grilles  surround  this  area,  and  the  people  who  frequent  these  locations  are  able  to  make  the  stop  in  Dog  Central  to  pick  up  a  personally  customized  hot  dog  that  serves  their  wants.    Weaknesses              One  of  Dog  Central’s  biggest  weaknesses  is  its  lack  of  brand  awareness.  Since  the  company  is  fairly  new  to  the  area,  people  are  not  entirely  aware  of  who  they  are  and  what  they  offer.  Another  major  weakness  is  low  demand  during  the  weekday  hours.  For  how  busy  Dog  Central  is  during  the  nighttime  and  weekend  hours,  it  is  just  as  slow  during  the  weekday  hours.      Opportunities            A  very  lucrative  opportunity  for  Dog  Central  is  the  emerging  new  technologies  that  are  available  in  today’s  world.  With  the  popularity  of  smart  phone  and  mobile  apps,  Dog  Central  can  take  advantage  of  these  opportunities  to  further  differentiate  itself  by  installing  a  mobile  app  into  its  culture.  Another  opportunity  is  the  ability  to  expand  to  new  locations.  Since  the  hot  dog  business  is  typically  perceived  as  a  mobile  business,  Dog  Central  could  

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take  advantage  of  this  and  bring  their  product  to  new  areas.  Finally,  the  opportunity  to  transfer  skills  and  competencies  to  other  business  units  would  prove  to  be  beneficial.  They  can  take  what  they  already  know  and  what  they  are  currently  doing  in  the  store,  and  expand  these  competencies  to  other  strategic  business  units.      Threats            A  major  threat  for  Dog  Central’s  business  is  the  lack  of  college  students  on  campus  during  the  summer  months.  Students  head  back  to  their  hometowns  from  May  to  the  middle  of  August,  and  this  has  a  negative  effect  on  the  business  because  college  students  are  largest  target  market.  Another  threat  to  Dog  Central  is  the  risk  of  entry  of  new  competitors  to  the  market.  Since  Mount  Pleasant  is  a  developing  town,  more  new  businesses  with  the  same  urban  trend  could  pose  a  threat  to  Dog  Central  and  take  away  their  market  share.            

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OVERALL MARKETING STRATEGY Marketing Objectives Our goal for Dog Central is for the restaurant to become a “household name” in the city of Mount Pleasant. We want Dog Central to be a place remembered by CMU alumni as where they spent nights talking, laughing, and eating with friends. We see Dog Central as being a “go-to” spot for families who are looking for something high-quality and out of the ordinary. We see Dog Central as a place of indulgence and comfort, and we want every guest to feel the same way. Our first marketing objective is to increase brand awareness by 10% among Mount Pleasant locals within the next 6 months. Brand awareness can be defined as the extent to which consumers are familiar with the distinctive qualities or image of a particular brand of goods or services. In this case, brand awareness is how familiar consumers in the Mount Pleasant area are of Dog Central and its offerings. Having higher brand awareness will allow Dog Central to become more likely to be apart of a consumer’s evoked set of considerations. This means that when a consumer is making a decision about where they should go out to eat, Dog Central is among the restaurants that they are considering. If brand awareness for this particular consumer is low, they will not even think of Dog Central as an option, resulting in them choosing somewhere else to eat. Our second marketing objective is to increase foot traffic by 20% within the store during weekdays (Monday-Friday) within the next 6 months. This objective’s goal is simply to increase the amount of people coming into the store during the week. Dog Central has no problem getting people to come in during the weekends, based on its convenient downtown location and late night hours. However, the demand for their services is very low during the weekdays when consumers have so many other options to choose from for lunch or dinner. Increasing foot traffic in the store during these times will increase sales, which in turn will increase Dog Central’s profit margin during the week, allowing them to better balance their demand. Our final objective for Dog Central is to further differentiate them from the competition, while keeping up with the trends among other restaurants and eateries, within the next 3 months. Dog Central is already differentiated from the competition because of its eccentric and customizable hot dog menu. Unfortunately, this is not enough. We would like to create even more reason for consumers to want to stop in and see for themselves the new things happening at Dog Central. In addition to having Dog Central in their evoked set, we want consumers to actually choose the restaurant over the others that are in their set. It will also be beneficial for the all-American eatery to keep up with the trends of the restaurant industry, as this is something that consumers have come to expect. Financial Objectives Dog Central is currently experiencing an overall increase in sales. They are now in the middle of their second year of operations and they maintain a gross sales revenue of an estimated $400,000. Their goal is to reach $1,000,000 in sales by the end of next year. The owner of Dog Central believes this a realistic goal, as he has plans of expansion in the near future. We were not given a specific marketing budget, so we will be using an objective and task method of budgeting, which will be discussed further later in the marketing plan.

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Target Markets Dog Central focuses its efforts on serving two target markets: college students and Mount Pleasant locals. The reason for this is that they serve different markets at different times of the week. The college students frequent Dog Central on the weekends, particularly during the late night hours when they are looking for a meal after the bars close. During the week, Dog Central’s target market is very different. They want to draw more families and locals into the store during weekday lunch and dinner hours. That being said, Dog Central’s primary target market is local Mount Pleasant families with a disposable income who are looking for a classic, yet new and extraordinary dining experience. These families are those that have in their budget the option to eat out once per week on average. They are tired of the same old restaurants that they have always experienced in Mount Pleasant, and are dying to try something new. Dog Central’s secondary target market is college students over the age of 21 who are looking for fast food in a convenient location to combat the late-night, post-bar munchies. These students are looking for a quick and non-expensive meal that they can obtain on while on foot, not wanting to drive once they have left their bar of choice for the night. Positioning For local Mount Pleasant families and Central Michigan students, Dog Central is the restaurant that offers a classic meal with a new twist. Unlike other American food restaurants, Dog Central allows its guests to pile their hot dog high with toppings that have been unimaginable until now. Dog Central brings an urban trend to a traditionally rural town. See Figure 1 in the appendix for more detail on positioning.

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MARKETING MIX Dog Central is in the business of creating unique hotdogs for consumers who value creativity and an inviting atmosphere. DC customers are able to order custom hotdogs often accompanied with beer battered fries at a value-based price with customized drink options, and served in a timely manner. DC is composed of a friendly staff, a cozy cafeteria-like dining room surrounded by flat screen televisions, and great tasting food. DC is differs from its surrounding competitors by sticking to their core competency of creating a simple American entry; hotdogs. Service Objectives Further differentiate Dog Central from competition, while keeping up with trends among other restaurants and eateries within next 3 months. DC is a unique restaurant and in Mount Pleasant DC is the only one of its kind. Their success among surrounding competitors in the downtown area and even those competitors that are a few miles out such as Taco Bell, is an example that there are still opportunities in their particular industry. These facts set the stage for new competition and reason for current competitors to make an effort to regain lost market share. DC must stay on the offensive in order to sustain their growth and further their penetration into their market. DC can stay ahead of both current and future competition by exhibiting features that keep the perceived lines of difference apparent to their current and potential customers. DC has the abilities and the capabilities to achieve the goal of differentiating itself from competitors within 3 months. These strategies and action programs will create new strengths within the company and provide obvious transparencies between DC and their competitors. These new factors will entice potential customers, create buzz throughout the local Mount Pleasant community, and create intrigue among current customers while simultaneously adding a wider range of brand loyalty. Strategy Keep menu fresh enough to create a buzz and sustain interest among customers. DC menu boards are captivating and are very customer friendly. There menu board backgrounds have bright modern colors, conspicuous lettering, and integrate perfectly with the customer waiting area; where customers decide their orders. The menu options are also creative, which in turn captures consumer imagination and evokes a reference between menu items and their titles. For example DC offers an item called “The Cowboy Dog,” which generates a relation to the specific tastes of a Cowboy lifestyle or old day western eating habits; with the consumer developing a relationship between the titles origin and the item’s tastes. The “Cowboy Dog” features onion rings and barbeque sauce. The menu item titles also involve comedy, such as the “Mad Dog” or “Goober Dog” and empathy, such as the “Detroit Dog” and “Chicago Dog.” DC has a rare strength among many of Mount Pleasant’s outdated restaurants; their modern touch. DC menu boards keep their customers interested and engaged. As the trend keeps up of continuous improvement with DC competitors to sustain consumer interests, DC must strategize to stay on the forefront in the minds of their consumers. Today’s consumer will like you today and forget you tomorrow especially if you cannot keep their interest, “a new study of “novelty-related decision making” in adults shows that our brains are actually hard-wired to prefer novelty and adventure,” (Diana Wolf, 2008) people simply like new things. Even though DC is still new to the community they still have many regulars, “how quickly novelty can disappear as we

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become familiar with the things around us, and yet how completely stimulated we become when we find yet another brand new experience,” (Belle Beth Cooper, 2013) there are opportunities to spice things up and keep existing customers enjoying their dining experience. At the same time while making changes being cognizant to stay below the lines of “Just Noticeable Difference.” The action programs provided below will make sure to accomplish the strategy of keeping the DC menu fresh and instill an innovative atmosphere that current and opportunistic consumers will value. Action Programs Implementing the pretzel bun as a choice on the menu Pretzel buns have become a trend lately among fast food restaurants. At big-time fast food chains like Sonic and Wendy’s, introducing pretzel buns have shown to be big winners. For Wendy’s “the company said diners ate more than 50 million pretzel sandwiches at the chain since they were introduced last summer… at a $4.69 minimum price point, that’s approaching $250 million between July and November,” (Dan Eaton, 2014) showing pretzel buns are well liked by consumers and provide differentiation in the menu. Pretzel buns are modern and bring a new look to the menu “a pretzel bun screams gourmet, so the value score is very high with customers” (Venessa Wong, n.d.) and that value to customers is exactly what this menu strategy is aiming to provide for DC. The value score that was created for Wendy’s can also be an extra value created for DC customers and this can be done by simply adding pretzel bun to the menu; even if just for a limited time. The addition of a pretzel bun to the menu is also a great example of an action that can be implemented in the goal timeframe of 3 months mentioned in the objective. Adding pretzel buns can be accomplished through the current hotdog supplying vendor or a plethora of wholesalers, one of them being through Aunt Millie’s Bread Bakery in Michigan. The pretzel bun menu option can be displayed in the restaurant in a variety of ways. A display option could be at the point of sale through a customized DC sign. DC could have the display option placed in an easily seen area where after the customers have seen their menu choices and arrive at the register, a clerk would then suggest to them the new option of the pretzel bun. This particular placement option would be suggested if there is an end goal of keeping the pretzel bun sales to a minimum also with a goal to keep the sale of regular sold buns at usual turnover rate. If the goal is to maximize the sale of the pretzel buns we suggest placing customized DC pretzel bun flyers throughout the entire restaurant even at the front windows. Differentiating some flyers from others with the possible use of quips, which we believe would interest waiting consumers even more to try the buns, and would fit to the DC image. The pretzel bun menu option should also be featured on the social networking sites that DC uses. If DC chooses to keep the pretzel bun as a full-time fixture to the menu after a couple of the months the signs should be taken down in order to not saturate the promotion make room for the next. The full-time adoption of the pretzel bun should then be fully integrated into the menus on and offline. Feature seasonal hot dog creations DC can also further differentiate itself from competitors by periodically adding menu options for certain times of the year, seasons of the year, and during certain events and holidays. This action is also something that can be accomplished within the next 3 months, especially with Halloween and Christmas being around the corner. Adding seasonal menu options sustain menu variety which mentioned earlier, is a customer favorite. Providing seasonal menu options also

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creates possible season demand for customers and brand loyalty. For example, McDonalds features the McRib sandwich as a seasonal option and for some customers; the only time they will even go to McDonalds might be for this particular sandwich. This would be a benefit for DC during possible slow seasons like the summer, shifting demand to capacity when demand is low. A benefit of implementing seasonal menu options would also create intrigue and anticipation among current and potential consumers adding a buzz for the DC menu. DC’s core competency is creating uniquely constructed hotdog variations bolstered with exquisite tastes. So the ideas expressed below are in no way to be taken as actual menu suggestion, but simply ideas that incorporate the seasonal concepts that we are trying to convey. An example of a seasonal hotdog for Halloween could something that encompasses the colors orange and black, like a hotdog with orange mustard, and black beans (possibly in the chili). For Christmas an example could be a hotdog presented with red and green colors such as, a mustard and ketchup mixture for green and maybe topped with diced tomatoes for red. Also ideas like hotdogs for the fourth of July and sports oriented hot dogs, rather it is with colors for teams or an origin style like a “Wrigley Stadium” hotdog made exactly like the stadium does it. To find out what seasonal creations are the best, DC can either track high sales of certain seasonal items or create a voting system to gain feedback from customers. Pricing Objective Further differentiate Dog Central from competition, while keeping up with trends among other restaurants and eateries within next 3 months. “Price is the most common differential tool used in commodity markets to disassociate a company from its competitors” (Spralls, 2014), the hot dog restaurant market is saturated with companies offering similar products and services. As much as these companies share in common, such as similar pricing strategies, they differ with quality and human resources. DC’s pricing is consistent with a value-based pricing strategy. Where their products are not seen as cheap, but are seen as a value to the customer. This vary characteristic is one of the main reason DC is so popular with price sensitive college students. College students are often burdened with a high debt to income ratio and are constantly looking for value; “incomes have been shrinking, student loan debt has risen at an average rate of 6% per year” (Blake Ellis, 2013). Selling hot dogs makes for a good opportunity to receive a high profit margin or at least for a single person operating a hot dog cart according to learnhotdogs.com, “some websites proclaim that vendors can make $200 a day but then they multiply this by 30 days a month and total it up to show over $6,000 in monthly income” (benscarts.com, 2014). When you add about 8 employees, startup costs, and overhead the numbers dwindle pretty quickly. For DC and their current success and being located in the business sector of Mount Pleasant, we see a market for opportunity. This opportunity that we have discovered has the potential to further differentiate DC from its competitors, provide more value for current customers, and gain potential customer who will provide DC with a higher profit margin. Strategy Create a menu with high priced hot dog choices that differentiates itself from the rest of the menu with a target-return pricing strategy. DC as discussed earlier is already appealing to the price sensitive consumer. An opportunity our group believes DC can convert into a strength of their business would be creating a menu that appeals to consumers with more disposable income. These consumers mainly being the one’s

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that work downtown and at the nearby university. DC competitors offer promotions in the mail to price sensitive consumers and engage in price wars. DC also has a lot franchise competitors that have the power to mass advertise and offer many items at cost, but these competitors lack originality. DC is one of the most original of their kind and strives for unique excellence. They can capitalize on their uniqueness by using their core competence of creating one of kind products; develop a menu that incorporates prestige, and awe-inspiring tastes with a premium pricing strategy. Downtown Mount Pleasant is filled with business owners, lawyers, and doctors. These are innovators, early adopters, and reference leaders. These are the segments that DC can target and make more money. Creating a menu that appeals to these consumers will increase the profit margin for the choice hotdog options put on the new menu and add new component to DC. The owner also explained to our group how certain days of the week are slow. If DC could get these certain demographics coming in around the same hours of the day and consistently, they will have created a prestigious lunch atmosphere composed of some of the most motivated consumers the area has to offer, creating “the place to be” for lunch interaction. This might seem like a long-stretch, but they actually already have something very similar. At night during the school year DC is the most packed restaurant in the city besides their competitor Taco Bell. On these busy nights DC is in fact “the place to be” and during these times students get to be a part of an experience that is DC. Some people want to pay more “when you have high prices, something magical happens. People assume you’re the bees-knees. You start to become known as the place to go for top-end, elite and awesome” (Peter Shallard, 2011). Having a menu exclusively dedicated to premium priced items will create a brand new perception of higher quality adding to the quality that DC is already known for. Just as DC’s witty hot dog menu titles create and relevance with consumers; premium priced items will create an affiliation with consumers willing to pay the prices for them. Action programs Create a hot dog menu that ranges in price from 3.99 to 6.99 Stadiums sell hot dogs on a Market based pricing strategy. It can be presumed that somewhere in the price of a stadium hot dog lies the convenience cost of getting that hot dog to the consumer; who would not dare leave the event for a bite to eat, but consumers simply expect to pay high costs at the ball park. The stadium hot dog is a story, it is an experience, it is a treat; it is not just a hot dog. This is what we want for DC, an opportunity to create more value for this untapped consumer; in this case the value to the consumer is getting to pay the high price for an experience. DC can take on this challenge by first checking out the market prices charged for premium hotdog at other restaurants. After looking at gourmet hot dog restaurants in New York, Chicago, and stadiums all around the country; we came up with the price range of $3.99 to 6.99. The starting price of $3.99 is a great Idea because in the mind of consumers, $4.00 for a common hot dog is reaches their threshold. “We’ve found that, even at $4, people are like, “Wow, that’s an expensive hot dog” (Richard Blais, 2011), but once again the hot dogs on this menu are not classified as “common”. Also with the price point of $3.99 we are capturing the perception goal of expensive, while in reality the price is only a 10% increase from the current highest priced hot dog on the normal menu. The cap price of $6.99 is an even more amazing perception price. It is below seven dollars creating a perception that DC is not trying to gouge the consumers willing to pay for items on the premium, also making it look like DC is doing everything they can to keep

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prices low; sticking with the odd price strategy. These prices are also perfect for price-lining, which in the minds of consumers is creating levels of quality among items on this menu; with the goal of getting them to purchase the items in the middle of these price points. The action of creating a premium priced menu will increase overall profit margin, add customer value, and create a buzz about the DC menu. On the premium price menu incorporate themes for instance the “New York Mets Dog” and other stadiums, this at Citi Field retails for $6.50. In order to keep with the objective of further differentiating DC from their competitors within the next 3 months, after implementing the premium price menu their needs to be an ongoing effort continuous improvement. A way for ensuring this continuity, we are suggesting the stadium themed items because these items can be directly associated price. The quality of the items is captured in the name; there is no such thing as a bad hot dog at a ball park. The quality of the hot is also captured by being on the premium menu and as mentioned earlier, all of DC’s food is has a high perception of quality. The goal of creating these stadium themed items is to differentiate the premium menu, sustain the valued perceptions of the items prices, stimulating consumer interest, and offering customers items that DC competitors do not have. The best part about stadium themes is that there are so many choices to choose from that is impossible to run out. If DC runs all these themes for a limited amount of time they will still never run out of items to choose from. If an item chosen to display is not selling or well liked than replace it quickly, if an item is a customer favorite than keep it on the menu. This action can create brand loyalty and is a unique offering that customers will value. Strategy Create a perception of luxury, conceptually surrounding the high priced menu. Some consumers that pay high prices want to be noticed; not necessarily in way the causes a ruckus, just a slight social validation of being different. “Being noticed is about what people see, our external self. It is about dressing up, putting on our make –up, and the latest fashion” (Courtney E. Martin, 2007), this does not mean that people are pretentious; its human nature. For DC this characteristic is an opportunity to take an advantage of. DC can create a new modern menu board to display premium price menu that catches the eyes of consumers. The premium menu once implemented needs to become a favorite for its target market. These innovators and reference leaders are appeal to their peers as people to follow and if following them means paying higher products for DC menu options then we are all for it. These actions below will create perceptual value for consumers purchasing off the premium menu, influencing and developing even more to adopt purchasing from the premium items. Action Programs Keep with odd pricing for the entire premium priced item line, preferably .49, .59, .69, .79, .89, and .99. These types of prices have been proven to increase consumer buying behavior ”odd Pricing can miraculously raise orders up to a shocking 9-34%” (Business and Employment), “Subjects who were asked to make selections for a five-course meal from a menu were found to have a greater likelihood of choosing a particular item when that item was odd-priced” (Robert M. Schindler and Lori S. Warren , 1998). The odd prices chosen for this action program will provide a variation to choose from for prices set in between the $3.99 and $6.99 ranges and is intended to

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discourage putting too many options on the premium menu. They also compliment the pricing that is already set in place at DC. Serve all premium menu items in a serving tray exaggeratedly different from the ones that the other items are served in. As mentioned under the strategy for creating a perception of prestige for the premium price menu, some people like to be positively noticed socially. The action of physically differentiating premium price menu items is an action that would accomplish this positive attention. In this action DC should create a tray (what hot dogs are served in) that are exactly like the one’s currently served, but instead of being generic looking have some added art or design. The goal is to noticeably differentiate the order so that it is seen by other consumers in the store and create intrigue. This slight differentiation accomplishes many things. First off it is a subtle subconscious reward to the consumer who purchased the item. Secondly the tray acts as an in store advertisement. Friends of the purchaser might inquire about what it is they ordered and that is exactly what we want to happen. In return of this action the person who inquired about the product will hopefully order it during their next visit and the person already consuming the item will generate even more buzz after they leave the restaurant. Strategy Implement bundles that will appeal to families. DC needs to shift demand to match capacity when demand is low during certain daytime hours. This can be accomplished by offering discounts or price reductions. Families would be a perfect segment for this strategy. Families are price sensitive and are prime targets that purchase in bulk. Bundling products for families with economic prices would be an effective pull strategy for these specific consumers. One down side of an a la carte style purchasing services is that every price is seen individually creating a perception of added expense to the consumer. What bundling does, is creates a unit price leaving feeling of only buy one unit and the price associated with that unit is going to be seen as cheaper; “bundling can serve to reduce the “pain of paying” because it makes it harder for consumers to know what the “right” price is for the product” (Neuromarketing, 2012). Action Programs 2 Classic hotdogs, 2 Signature hotdogs, 1 large Beer Battered fries, and 4 drinks for $15.99, offered only before 8:00 pm M-F The action of creating this bundle promotion creates a great deal for families. It also keeps DC from creating value menus or forcing them away from the a la cart style because we believe that is a strength of theirs. The bundle we have suggested also encompasses two important points. The first point is that this promotion is only about a 24% reduction on menu price, which will not eat into costs for DC because there are soft drinks attached, “fountain drinks cost a restaurant between .05 and .20 cents” (David Bakke, 2010). The second point is that this this promotion is based off the average rate of an in store coupon, and if are announced or promoted somewhere in the restaurant there is extra value added. Promotion Objective Increase brand awareness by 10% among Mount Pleasant locals within the next 6 months. DC is still a new restaurant to Mount Pleasant and is not yet in the position to mass advertise like many of their competitors. DC is currently doing very well promoting through conduits such as,

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Facebook, Twitter, and their hot dog eating competitions. In this objective we are suggesting some hands on techniques that DC can engage in and ways improve some ongoing techniques currently underway. For example after meeting the CEO, we were informed that their hot dog cart operation is currently being implemented. We are providing strategies that will further help enhance the DC hot dog cart in an effort to create among the next six months; which is very attainable especially with the new group of students coming to the university and the upcoming local events taking place in August. Strategy Gain customer awareness of products and services outside the downtown area and appeal to the Mount Pleasant community as a restaurant devoted to Mount Pleasant consumers. Implement a strategic business unit or system, which operates (ex: Dog Central to go) away from the restaurant which utilizes mobility in order to sell products to consumers. DC is currently developing the use of hot dog carts to operate outside of the business. We our suggesting that cart operations should be developed as a strategic business unit of DC. The cart should its own individual business operations, sales forecasts and strategic goals for conducting day to day transactions. Developing the carts in these manners will allow for the parent company DC to easily track the success of operations and to easily diagnose any problems that may arise. The hot dog cart market in Mount Pleasant is still fairly untapped and with DC’s core competencies, is an ideal market that are prepared to flourish. Action Programs Invest in hot dog carts that have the capability of heating and cooling that resemble characteristics of the restaurant. This action is already in the process of implementation at DC. Our suggestion is that the cart when put into operation resembles the restaurant as much as physically possible. The DC colors should be prominently displayed where ever the consumer can see. The carts DC colors to a consumer should create a permanent picture in the consumers’ minds. This prominence can be equated to music an ice cream truck plays; when kids hear the music they immediately think ice cream. When consumers see the colors on the cart we want them to immediately think DC. The eventual goal is that, anytime a consumer sees a hot dog cart period they think of DC, whether it be on the television or on the street. Set up the hot dog cart or carts at the park, Central IM games, fundraisers, and other events that occur in the city. The action of having carts at the park is also currently being developed through DC. There are also many other opportunities that can be advantages for DC carts. One of the opportunities being the CMU IM fields where there is organized sports being played during certain times for the season. During these events there are many students and their friends, there are also professors and many times families. Another place where carts can be operated are at the many fundraisers that are put on by college students and collegiate groups on and around on campus. If DC realizes that these events are very successful; they can alert students and or families that they can be in the area if tipped off in advance. DC carts can also use the check in features on social networks to alert potential customers and geofencing to lure customers to the carts. Advertise the strategic business unit in a movie trailer through celebration cinema.

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This is the most beneficial action for accomplishing the 10% awareness objective and within the time frame. At Celebration Cinema DC would receive the greatest exposure of their brand. The best part about this kind exposure is also that it effectiveness of the ad can be easily measured. By creating a survey and asking patrons if they saw your ad or remembered seeing will provide productive feedback. If the survey would have the best results if conducted at the movie theatre, but if done in at the restaurant and carts your can measure the efficiency of the theatre advertisement. Strategy Provide benefits for customers who frequently purchase from the high priced menu. Brand loyalty is also a factor that will help generate brand awareness. “It is 5 times more expensive took acquire new customers than to, than to retain the consumers you already have” (Spralls, 2014), meaning creating brand loyal customers actually saves the company money. DC current loyal customers are big fans of the creative food and the atmosphere. Customers like that DC interactive outside the restaurant and the community, and that the owner has origins in Mount Pleasant. The customer service at DC is impeccable, with a very nice outgoing staff and fast paced operation style with an attention to detail. “An unhappy customer will tell on average 9 consumers about bad service, where a happy customer will tell 9. (Spralls, 2014), that is the reason why having the customer service that DC provides is so important and keeping customers happy must be on the top of an operation strategy. Building brand loyalty will ensure that these customers will be creating buzz and awareness about how great the service they experienced was and not the other way around. Action Program Institute a punch card for high priced menu encouraging frequent purchasers. The CEO of DC mentioned to us how they have not had much success with punch cards. We believe the number one reason for the lack of the cards success (and he agrees) was the personnel that was issuing to consumer. The cards were even outsourced at times. In this particular action program we are focus does not pertain to those cards, but these characteristics can be incorporated with that strategy. These frequent purchaser cards are intended for the premium menu mentioned throughout this marketing plan. The concept of these cards is that they can only be punched for premium menu purchases. This way the cards will pay for themselves because due to the margins that are being incurred through the sales of these items the cost of a free premium it has already been absorbed by the consumer. The concept of the card is also to encourage purchases from the premium menu and experience the fun and tasty variations premium menu offers. Frequent purchasing off the premium menu also furthers the in store advertising that will be seen with the differentiated trays leading more purchases and so forth. Lastly another reason these cards are only for the premium menu, is that it creates a process that has no costs incurred to the company. The cards should be issued in store only and by the owner to whom he pleases. The suggested distribution process adds the value of quality, positive image and exclusivity. Promotion Objective Increase foot traffic during weekdays by 20% within 6 months. This is another objective where demand needs to be shifted to match capacity when demand is low. DC is packed during the weekdays with lines out the door, but during weekdays business is

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intermittent. We are suggesting a pull strategy to increase demand for DC. With the strategy provided and the action programs to carry them out, it will be feasible to increase foot traffic by the expected 20% and within 6 months. Strategy Create daily specials that would appeal to customers during lunch and dinner hours. Our goal is to stay very far away from the value meal set up that is a large part of major fast food chains. The a la carte menu set up allows for more customization by DC consumers, which they highly value and is a good way to make money with extras. We are suggesting periods throughout the day to offer specials and create demand. This allows DC to keep that added perception of value for menu quality and not devaluing the brand with long term price reductions. Action Programs Develop a happy hour were Signature Dogs are half off the purchase of a drink and or fries. A pull strategy for DC customers is an ideal way to get people in the restaurant during slow hours of the day. Simply calling the promotion a happy hour creates interest among consumers and especially college students. We are suggesting half off on drinks to keep with the theme of happy hour and simultaneously making an effort to keep margins as high as we see possible, while providing a value-based pricing strategy for customers. The half off fries is an option for enticing customers to purchase a hot dog. There is also a perception to the consumer that they are getting a great deal because they are getting a promotion for two items; if DC wants they can even bundle the two items if they see fit. Happy hour will get people in the doors and at the same time create “regulars”. Create kids special with a free Raw Dog with any purchase of a Signature or Classic Dog. A special specifically created for children is a definite for not only bringing in families, but also a great gesture toward the local community. Offering the Raw Dog with a Signature or Classic dog also creates that perception of a bundle; we keep mentioning. This promotion is also getting consumers that would usually purchase a Raw Dog, to try new items on the menu. When consumers branch out and enjoy more than one item on the menu they perceive that everything is good and they will tell their friends. It is similar too leader pricing techniques. If a consumer keeps seeing lower prices than otherwise seen at the store’s competitors, then they will perceive all the prices as being low. Distribution Objectives Further differentiate Dog Central from competition, while keeping up with trends among other restaurants and eateries within next 3 months. DC is currently only operating out of their brick and mortar headquarters. To set them aside from their competitors they should capture point of sale and order placement opportunities that have become gems for small businesses. There are tools that would increase transaction efficiency that are available. There are outlets available that customers can use to make orders and not have to be at the restaurant. There are also tools available that customers and use to pay DC before they arrive at the store and simply pick up their orders and go. Some of these tools are not being used by DC’s competitors and by turning the opportunities to strengths, they can then leverage these strengths against their competition and gain more market share.

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Strategy Provide customers with alternative platforms to purchase to purchase dog central products. DC is packed at night during bar night, sometimes too much so. The great part for DC is that they are packed, but the discrepancy is that not all customers are willing to wait. This is an efficiency problem and in this case there is a need to flex capacity to demand when demand is high. The last thing DC wants is for customers to decide not to use their establishment because they are too busy; then they are losing money, potential customers, and potential word of mouth. The answer is technology. Action Programs Create an app that allows customers to easily make online carryout orders. “There are many software companies that will create an app for small businesses for a reasonable price” (Spralls, 2014), there are also many websites that aid you in doing it yourself. A DC app could enable people to order online allowing an efficient carry out service. The app would also make it easier for people to find out information about the company. There could also be DC alerts that inform customer of where hot dog carts are going to be operating during the week. Also the app can let consumers know about where and when the next DC event is going to be held, such as a hot dog eating contest. Apps really do have endless capabilities and not only will it differentiate DC from competitor it will help them gain market share. Institute Square technology in order to manage sales transactions pertaining to online carryout orders, phone carryout orders and call ahead dine-ins. Implementing square technology into operations will be an immense help to DC’s processes. If implemented with the app and at the in store point of sale order and transaction efficiency would improve exponentially. There would still be a line, but after adding square to the app when some customers get up to the point of sale they might not have to order or pay because everything has already been taken care of online; the clerk could simply hand them there drinks and send them on their way. People Objectives Increase brand awareness by 10% among Mount Pleasant locals within next 6 months One of DC’s current strengths is their upbeat and outgoing staff. They are very knowledgeable about the products DC offers, which are a lot and they are brilliantly forthcoming with their menu suggestions. These services are highly valued among Mount Pleasant consumers. A lack of caring for customers is a great way to run a business into the ground rather quickly, but great customer service is one of the number one ways to get noticed in this town. Strategy Ensure that hotdog carts are ran in a manner that encompasses the values the restaurant provides while simultaneously maximizing the customer experience with a wait time of 3 minutes or less. It is well known by management at certain moments, when there is no supervision and a lack of authority, there are occasions where firm’s human resources can become lackadaisical or distracted; that cannot happen at a DC hot dog cart. A DC cart is more than just a selling point; it is the restaurant on wheels. The items sold from the cart must be composed of quality and with the same kind of vigor and customer service carried out in the store. In order for the cart to be effective, sustain continuity of quality, and provide customer value there needs to be parity with the restaurant.

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Action Programs There should be specific guidelines for hotdog cart operations for employees. Management should create a set of guidelines for hot dog cart operations. In a relaxed environment like the park for instance it is very easy for a person to forget that they are still working, especially if they are surrounded by friends. Guidelines should include appropriate dress, for example some days it is going to be hot for employees but that does not make it okay for them to strip down to their Led Zeppelin t-shirt. The guidelines should encompass in work behaviors and tips for situations that might be encountered at the cart. Hire and train employees on how to handle a variety of situations that might be encountered during outside sales transactions. Different people have different strengths and different weaknesses. Just because an employee is an amazing clerk in store does not mean that they are necessarily prepared for a bunch of people screaming orders at them in the hot sun, counting money, and simultaneously creating a tasty work of art. Employees that are hired to run the cart should be outgoing, not easily rattled, exceptional with counting money, and have any other skills valued by the CEO. Process Objectives Further differentiate Dog Central from competition, while keeping up with trends among other restaurants and eateries within next 3 months. DC is unique in many ways, their core competency of creating customizable extraordinary hot dogs, outgoing customer service, and fun atmosphere. One of the many fun aspects DC adds to customer value is being able to see the food being prepared. The hot dogs are being grilled in front of customers; chili is being piled high on fries out in the open. The DC food preparations help create an interactive atmosphere, at the same time the preparations are an efficient process and is different from many of their competitors. Strategy Develop process that decreases wait time and still allows for customers to see all the unique variations the menu has to offer. With DC growing at a constant rate they will see increased demand throughout specific periods of the day. As mentioned by the CEO they are currently experience some slow lunch hours during the weekdays, which will pick up especially after the implementation of promotions such as “Happy Hour”. They also experience explosive high volume during specific periods of the day and we suggested technology. The strategy of decreasing wait times focuses on steps that can be implemented with the actual processes being performed to help carry out the exceptional services that DC already provides Action Programs Implement an app that encompasses the ability to order online for carry outs. The app that was mentioned to be created in the earlier section will bring immense support with flexing capacity to match demand when demand is high, by adding different platforms for customers to make orders, increase customer touch points, and create further awareness. The app must also be implemented in to the in store processes and managed in order to ensure its effectiveness and develop efficiencies. There must be capabilities instituted for the app to operate with in store operations. There needs to be a monitor or monitors installed into the store or an extra IPad or two. These devices

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will receive orders taken online and allow workers to relay and correlate information to each other to make the orders effectively. There also needs certain employees in charge of certain duties and an end line process to check for accuracy. During busy app carryout hours designate certain employees to be in charge of making the orders received through the app. After the app and monitors/ IPads are created there should be a process developed for the new point of operations that have been implemented. We have mentioned earlier that there should be a possible hiring of new employees to ensure the smooth operations of both the new services provided and the hot dog cart. In order to have efficiency of the new services being offered to customer and flex capacity to match demand when demand is high, DC should cross train employees. All management is assumed to be well versed at all points of operations. For the new systems employees should have designated responsibilities. There needs to be someone in charge of noticing the carry out alerts received on the monitors and either making the order or informing another employee to make them; if monitors are in plain sight then this process would be much quicker. There also need to be an employee designated to compare the finished food to the customer order to check for accuracy and then put under a heating lamp. The clerk should be responsible for seeing if the order was paid for online or if there is a transaction needed at the counter. For busy hours, we are suggesting that food orders be made in the order that they are received and that the names of the customers finished carry out items be displayed in plain view if already paid. This way after showing some sort of validation that the order is in fact theirs they do not have to wait in line. These processes can be customized these are simply suggestions. Incorporate online pay on the app with Square technology For online orders and DC should institute the capability of Square technology. With this software and hardware customers will be able to pay for orders from their smart phones and tablets. After an order is purchased online the customer can simply walk in and receive their order without waiting in line. This technology should also be implemented at hot dog carts. This will lessen transaction times and create a safer atmosphere for cart operators reducing the amounts of cash they will have to carry on them at one time. Square technology will also allow for customers to even get a carryout from a hotdog cart; now that is innovation and differentiation. Physical Evidence Objective Further differentiate Dog Central from competition, while keeping up with trends among other restaurants and eateries within next 3 months. Credibility is created by physical evidence that the company is doing well and has a large following. DC has a lot of physical evidence in there store, but we are suggesting having more. Using more physical evidence to show their success will only improve their position in the market and also add the atmosphere. Strategy Increase the perception of sustained success and devotion to the local community throughout storefront, menus, and uniforms

  25  

DC already participates in many local events, but many Mount Pleasant locals are not aware. Using the action programs below will ensure that they will. We believe the hot dog eating contests are DC’s greatest strength for providing credibility for their brand; we are reminded of Nathan’s hot dog eating contest, but we want consumers to be reminded of DC. Action Programs Take pictures whenever company is operating or participating outside of the restaurant and place in store and post on social networks. When conducting events take as many pictures as possible and if you want hire someone to take pictures or pay an employee to do it. The more pictures the better, then saturate your affiliated social networks and take the best photos, blow them up and put them in the store; they can even be rotated in and out the store to keep the perceptions fresh. Rotating pictures from oldest to newest will also create intrigue in consumer, keeping them updated on new events DC has been participating in. Use store colors to emphasize company brand throughout operations. Make the DC colors a staple of the brand. Display the colors on hot dog carts and throughout hot dog cart uniforms. At DC events display DC colors loud and proud event make a flag that emphasizes color, “these types of acts create memory hooks for customers” (Spralls, 2014)  

  26  

IMPLEMENTATION AND CONTROL The implementation of the marketing plan will require the owner and all of his employees to be on the same page with regards to the extra workload. Dog Central’s marketing intern will be responsible for solidifying appropriate locations to station the various hotdog carts. The owner will be responsible for hiring and training the new employees, for both in-store work and the independent manning of the hotdog cart. It will also be the responsibility of the owner to meet with the app developer to ensure everything is included in the app that he finds necessary. The owner can delegate the task of ordering the large format signs and the loyalty cards to the marketing intern or another employee if he so pleases. The owner will be responsible for ordering the hotdog pretzel buns unless he chooses to delegate the task to another employee. Budget Because we were not given a specific marketing budget from the owner of Dog Central, we have developed an objective and task method of budgeting. This method will list the cost of each marketing item we have suggested in the plan and allow the owner to choose what he would like to pursue. If it is not in Dog Central’s budget to tackle all of these things at once, they have the option of pursuing these endeavors at a later time when the funds are available. See Table 1 below for our objective and task method of budgeting.

Table  1  

Item Unit Price Quantity Total

Price Hot Dog Cart $4,000.00 5 $20,000.00 New Employee (hire and train) $4,000.00 3 $12,000.00 Pretzel Buns $0.52 500 $260.00 Mobile App $5,000.00 1 $5,000.00 Large Format Signs $39.99 3 $119.97 Punch Cards $0.04 1,000 $35.00 Total Price $37,414.97

(“All American,” n.d.) (“Hiring Your,” n.d.) (“How much does,” n.d.) (“Large Format,” n.d.) (“Loyalty Cards,” n.d.) (“Pretzilla Wholesale,” n.d.) Timeline See Figure 2 in Appendix for PERT Timeline Monitoring Before implementing the plan, we will be conducting a survey to measure the brand awareness of Mount Pleasant locals. We plan to capture 25-50 responses using a convenience sample in a public place in town (i.e. movie theater, grocery store, etc.). Doing so will provide us with the quantitative data necessary to address the following research objectives:

• How aware are consumers of Dog Central as a brand? • Which of Dog Central’s attributes do consumers find most important?

  27  

• How many times has the average Mount Pleasant local visited Dog Central during the week?

• How satisfied are consumers with each of Dog Central’s attributes and with Dog Central overall?

• How likely are consumers to recommend Dog Central to a friend? • How does Dog Central compare to their competitors in terms of their various attributes?

This same survey should be conducted once more at the end of the campaign to measure how much consumers’ attitudes toward Dog Central have shifted as a result of the many changes made during this time. It is suggested that the same survey questions be used and that the responses be collected in the same format for the follow-up survey, as was the original survey. A copy of the survey and our results from conducting the pre-implementation survey can be found in the Appendix. In order to measure the objective such as foot traffic, an observation form of data collection must be conducted at the beginning and end of the campaign. In order to accomplish the objective, a Dog Central employee will be responsible for counting the number of people entering the store during a specific time frame during a certain weekday. The same time frame and weekday should be used at the end of the campaign as well. This will allow Dog Central the opportunity to see if there has been an increase in foot traffic that meets the standards of the objective. The owner of Dog Central can measure the objective of brand awareness by conducting the survey we have provided. Objective number one of this survey is to measure brand awareness. The owner will be able to quickly determine if brand awareness has increased in the time from conducting the first survey, to conducting the follow up survey. The objective of further differentiation can be measured by seeing if all the action plans from the accompanying strategies have been accomplished. Dog Central will be differentiating themselves from the competition with the implementation of each of these specific tactics. Measuring the success of this objective is as simple as crossing off the tasks as they have been accomplished.

  28  

APPENDIX Figure 1 Perceptual Map based on price and quality of food for Dog Central, Menna’s Joint, and Taco Bell. “Price” is the dollar value that the customer is paying for the product. “Quality of food” is the degree of excellence pertaining to the product that is delivered.

High%Quality%%Low%Quality%%

High%Price%%

Low%Price%%

Menna’s Joint

  29  

Figure 2

Begin&to&develop&App&&

Create&“happy&hour”&special&&

Add&family&deals&to&menu&&

Purchase&large&format&signs&&

Purchase&pretzel&buns&&

Implement&loyalty&program&&

Purchase&punch&cards&&

Create&premium&menu&&

Hire&new&employees&&

Train&new&employees&&

Implement&Square&

technology&&

Acquire&hotdog&carts&&

Customize&to&Dog&Central&“fit”&&

MONTH&1&& MONTH&3&&

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Figure 3 Dog Central Survey Have you ever heard of Dog Central? Yes/No Have you ever visited Dog Central? Yes/No Estimate how many times you have visited during a weekend 0 1-2 3-5 6-9 10+ Now estimate how many times you have visited Dog Central on a weekday 0 1-2 3-5 6-9 10+ In the next few questions, please rate Dog Central on their performance of each attribute. Taste Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Quality of Ingredients Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Overall value (Is the product worth what you paid for it?) Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Price (Actual price of the product) Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Speed of Service Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Courtesy of Employees Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Location (Main St. and E. Michigan St., Downtown Mount Pleasant) Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Restaurant Atmosphere Very dissatisfied 1 2 3 4 5 6 7 Very satisfied Overall satisfaction (Looking at Dog Central as a whole, how do you feel about it?) Very dissatisfied 1 2 3 4 5 6 7 Very satisfied

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Of these 8 attributes, which is the most important to you? Taste Quality of ingredients Overall value (get what you pay for) Price Speed of service Courtesy of employees Location Restaurant Atmosphere Of these 8 attributes, which is the least important to you? Taste Quality of ingredients Overall value (get what you pay for) Price Speed of service Courtesy of employees Location Restaurant Atmosphere How likely are you to recommend Dog Central to a friend, family member, or coworker? Definitely would 1 2 3 4 5 6 7 Definitely not recommend would recommend Have you been to Menna’s Joint? Yes/No Have you been to Taco Bell? Yes/No Given the choice between the 3 restaurants (Dog Central, Menna’s Joint, and Taco Bell), which would you be most likely to visit the next time you eat out? Dog Central Menna’s Joint Taco Bell What is your gender? Male Female Are you a CMU student or a Mount Pleasant resident? Student Resident

  32  

Survey Results We surveyed a total of 42 people outside of Celebration Cinema in Mount Pleasant, MI. The nature of our survey was set up to first capture brand awareness with the first question. If the person being surveyed then answered “no” to the second question (have you ever visited Dog Central?), we would stop the survey there. Unfortunately they could only full participate in our survey if they have ever actually been to the restaurant. Because of this, although we surveyed 42 people, only 25 of them were able to complete the survey. Therefore, every question besides the first one has a sample size of 25. The results can be found in the tables and charts below. The scores of each attribute are based on a mean score of the total respondents. Please be aware that this survey is not an accurate representation of the total Mount Pleasant market, as our sample size is relatively small. This data simply gives us a starting point and an idea of what our customers are thinking. In other words, the analysis must be taken with a grain of salt.

Brand&Awareness&&

40%$have&NOT&heard&of&Dog&Central&&

60%&HAVE&heard&of&

Dog&Central&&

3"

13"

6"

3"

0"0"

2"

4"

6"

8"

10"

12"

14"

0")mes"" 1-2")mes" 3-5")mes"" 6-9")mes"" 10+")mes""

Num

ber"o

f"Respo

nden

ts"

Visited"DC"During"a"Weekend"

5"

10"

7"

2"1"

0"

2"

4"

6"

8"

10"

12"

14"

0"*mes"" 1.2"*mes" 3.5"*mes"" 6.9"*mes"" 10+"*mes""

Num

ber"o

f"Respo

nden

ts"

Visited"DC"on"a"Weekday"

  33  

6.3$ 6.1$ 6.0$ 5.9$ 5.8$5.3$

4.4$ 4.2$ 4.1$

0.0$1.0$2.0$3.0$4.0$5.0$6.0$7.0$

Overall$Value$$

Speed$of$Service$$

Loca=on$$

Taste$

Overall$Sa=sfac=on$$

Courtesy$of$Em

ployees$$

Price$$

Quality$of$Ingredients$$

Atmosphere$$

Performance$of$DC$AMributes$$

11"9"

3"1" 1" 0" 0" 0"

0"2"4"6"8"

10"12"14"16"

Taste"

Price""

Quality"of"Ingredients""

Overall"Value""

LocaAon""

Speed"of"Service""

Courtesy"of"Em

ployees""

Atmosphere""

Num

ber"o

f"Respo

nden

ts"

MOST"Important"AMribute"14#

4# 3# 2# 1# 1# 0# 0#0#2#4#6#8#

10#12#14#16#

Atmosphere##

Speed#of#Service##

Loca:on##

Courtesy#of#Em

ployees##

Overall#Value##

Price##

Taste#

Quality#of#Ingredients##

Num

ber#o

f#Respo

nden

ts#

LEAST&Important&A/ribute&

  34  

14#

11#

0# 5# 10# 15# 20# 25#

Male##

Female##

Number#of#Respondents#

Gender##

13#

9#

3#

0# 5# 10# 15# 20# 25#

Taco#Bell##

Dog#Central##

Menna's#Joint##

Number#of#Respondents#

Restaurant#Most#Likely#to#Visit#

How$Likely$Are$You$to$Recommend$Dog$Central?$

Mean$Response:$$4.8$

$

8"

17"

0" 5" 10" 15" 20" 25"

Yes""

No""

Number"of"Respondents"

Have"you"been"to"Menna’s"Joint?"

23#

2#

0# 5# 10# 15# 20# 25#

Yes##

No##

Number#of#Respondents#

Have#you#been#to#Taco#Bell?#

6"

19"

0" 5" 10" 15" 20" 25"

Student""

Resident""

Number"of"Respondents"

Student"or"Resident?"

  35  

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PAPER  COMPOSITION  CHECK  LIST    

(To  avoid  losing  3  points,  please  make  this  the  last  page  of  all  submitted  assignments)      

 Completed     Did  Not  Complete      __________     ___________     I  have  checked  to  see  that  the  paper  clearly  presents  my  ideas.    __________     ___________     I  proofread  my  paper  thoroughly  before  the  submission  date.                  __________   ___________     I  have  read  my  paper  for  the  express  purpose  of  editing               spelling,  grammatical  and  typographical  errors,  choppy             transitions,  colloquial  phrases,  and  awkward  uses  of  terms.  

       __________     ___________     I  have  provided  sound  evidence  in  the  body  of  my  paper  to                 support  my  ideas.    __________     ___________     I  have  used  inclusive  and/or  gender  neutral  language  where    

appropriate  in  my  paper.      __________     ___________     I  read  my  paper  aloud  to  myself  as  another  editing  strategy.      __________     ___________     I  read  my  paper  to  an  objective  listener  for  feedback.      __________     ___________     I  have  included  page  numbers  on  my  paper.      __________     ___________     I  have  included  proper  academic  citation  of  referenced  sources.    __________     ___________     I  have  used  vocabulary  that  most  precisely  conveys  my  ideas.      __________   ___________     I  have  properly  organized  the  formatting  of  the  document  for             paragraph  settings,  proper  spacing  of  quotations  and  proper    

        placing  of  subheadings  where  applicable.    

__________   ___________     I  completed  my  final  draft  of  the  paper  at  least  24  hours  before           its  submission  date.    __________   ___________     My  paper  is  stapled/spiral  bound  with  this  sheet  as  its  last  page.            Signature:    _______________________________________________________