Marketing Report Essay Kebab hut is a local Kebab shop in Fitzroy street St Kilda near the beach. It has many advantages over the local competitors which include the presentation, delivery and liquor. The main purpose of this essay is to find new marketing strategies to increase the sales of the restaurant which brings us to the opportunities that kebab hut has that are, starting liquor with kebabs. Beer and kebab is a very good combination when it comes to liquor. Another opportunity the tourists and backpackers in that area. There is special discount for them but most people don’t know about it. The taxi and uber drivers also get discount on their meals but they don’t know about it. To get all this information about the discounts and deals that the competitors do not have I will be researching three marketing strategies which are Billboard Advertisement, Broacher Advertisement and Email marketing. Billboard advertisement is considered as one of the best advertising strategy, According to Arbitron National In-car study, 58% people who saw a roadside advertisement about a restaurant later visited that restaurant. The Billboard statistics indicate that 38% drivers visit a place that they saw on billboard on their way home but the most fascinating part about this is that 24% people stop at that place immediately. If the bill board is interesting or funny 56% people talk about it with others (Forbes 2017). The most cost effective bill boards in Melbourne are 6m x 3m Landscape Billboards which cost approximately $2000- $2800. Their installation cost is $300- $325 and finally the print production is about $500. 20,000-30,000 cars drive past Landscape Billboards each day (Melbourne Billboards. 2017). If we use the research done in forbes then 24% of the 20,000 will come to the restaurant on the same day which is approximately 5,760 new customers every day. According to Zomato, one person usually spends $18 in kebab hut which means that the sales will increase by $103,680 for every day (Zomato 2017). The target market for this marketing strategy is the people aged between 20-40 because they’re usually the people who drive in this area. The focus will be on the locals around St Kilda and the tourists. An advertisement on Nepean highway can attract both including the people who live in surrounding suburbs and the tourists. Flyer Advertisement is one of the oldest marketing strategies, it is also the most cost effective strategy. 2000 A5 flyers cost only $134.99 (Vistaprint 2017). According to a recent study done by Australian Direct Marketing Association (ADMA), 31% consumers considered unaddressed mails like flyers to be the most preferable method for receiving marketing information (ABC Online 2017). 79% of customers react to direct mail immediately and 84% of them respond to flyers that have money off coupon (DMA 2017). 93% of the customers like getting flyers with vouchers or offers (Effectiveness 2017). Keeping these stats in mind, this strategy can bring 620 customers. Among the 620 customers 489 of them will visit or order delivery immediately. To increase the number of customers an offer or voucher will be needed. If someone orders anything above $50 they get 10% discount in kebab hut. If we put that on the flyer then it will increase the response from this strategy. People usually spend $18 in kebab hut so the increase in revenue would be approximately $11,160. The Target market for this strategy is the delivery customers in surrounding suburbs. Since the target market is the delivery customers, instead of hiring someone to hand out those flyers give them to the delivery drivers of kebab hut. When they go to deliver food, drop those flyers in the surrounding houses or apartments. This will save cost and increase revenue at the same time. Fitzroy street where kebab hut is located, there is a lot of foot traffic there, especially on events like St Kilda fest and Pride Parade. At those events, whenever there are no or less customers in the restaurant just send one employee to hand the flyers out. This way the cost on this strategy will only be $134.99. Social Media Advertisement is the most effective marketing strategies of the twentieth century. One third of restaurant sales are determined by online research. 75% of consumers of restaurant industry use social media on daily basis (Nanni & Nanni 2017). According to social media stats Australia, the biggest platform for social media advertisement is Facebook which has 16 million users, that’s approximately 65.8% of Australia’s population (Cowling 2017). 75% of consumers use social media to find a place to eat and 80% of them visit or order at the same time (Nanni & Nanni 2017). The target market for this strategy are the people who live in St Kilda and its surrounding suburbs along with the people who visit St Kilda. These people include backpackers, tourists, locals and short term residents. St Kilda and its surrounding suburbs currently have approximately 230,000 population (2011 Census QuickStats 2017). If we look at the stats then among 230,000 people, 149,000 people use Facebook on daily basis. The cost for Facebook ads is $3.99 for 1000 views (Marsan 2017). By spending $594, an advertisement for kebab hut will appear on the home page of those users. There is approximately 0.1325% response rate on these ads (Facebook Advertising Statistics and Trends 2017). This strategy can give kebab hut 200 customers every day. People usually spend $18 in kebab hut. which means kebab hut can make $3,600 more revenue by the cost of $594 every day. To maintain the fan page on Facebook, there is no need for hiring someone new. One of the team members can do it in less than one hour so they only must pay $18 for the fan page maintenance. In conclusion, the billboard strategy is a bit expensive for a small business even though the payout is good. The flyer advertisement is too old school. The new generation doesn’t like to have flyers in their mail boxes so this can be a major problem for this strategy which brings us to the strategy that I will be choosing is the social media advertisement because it is efficient and the profit margin is high. This is something that kebab hut can afford in its current state and this strategy can turn into a free marketing base when there are enough fans on the page. 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