MarketingPlan: Market Definition and Opportunity
The hospitalityindustry especially the hotel industry in the Manhattan area hasnumerous competitors and customers thus, most firms develop highlydifferentiated but close products to attract customers. The CordonBlue has targeted various consumers, but it faces great competitionespecially from conventional restaurants. In addition, a performanceanalysis of market share, customer value, new customers, and new goodadoption reveal that the market is closely interlinked, although mostrestaurants serve a niche market as most consumers identify withtheir specific differentiated products. On the other hand, themarketing situation has been amenable to the restaurant’s highlyvalued products thus, the restaurant has the potential to enhanceits chains and products to new clients.
Cordon Bluefaces stiff competition from several restaurants such as Daniel,Eleven Madison Park, Lounge Seating, Bouley, Kafana, and JeanGeorges. The aforementioned restaurants act as the main competitorsof Cordon Blue, which means that the restaurant faces competitionfrom other competitors. In this regards, the restaurant market in theManhattan area is a Monopolistic competition with many sellers andbuyers where sellers sell highly differentiated products. On theother hand, none of the mentioned restaurants controls a significantmarket share thus, each restaurant has the capacity to developgreatly and reach a high number of clients. In addition, market size,overall profitability, quality of service, and marketing act as theforces that drive the restaurant sector in Manhattan. The Manhattanarea has a huge market of French Food, but each restaurant createsits niche market or pool a significant number of clients due to thehighly differentiation of products that occur.
Most restaurantsin the Manhattan area offer significant options for people when itcomes to French Food, but most of the restaurants have failed tooffer high level of service and several flavors of French Food. Inthis regards, the Cordon Blue was established to offer a differentlevel of service, quality, and flavor at appropriate prices. Otherthan facing competition from Restaurants offering French Food, CordonBlue also encounters competition from restaurants dealing with bakeryand desserts especially Italian, French, and Spanish restaurants.However, Cordon Blue provides macaroons of the highest quality ataffordable prices thus, the restaurant has managed to competefavorably. In addition, by providing high quality macaroons in thearea, Cordon Blue has managed to tap new clients thus, people havecome to identify the restaurant with macaroons and French Food. Assuch, this form of identification has given the restaurant acompetitive edge in comparison to its competitors.
On the otherhand, although Cordon Blue has not been in the market for a longperiod it has managed to create its ‘niche’ market by identifyingloyal customers especially those of French Food and macaroons byproviding quality service and highly flavored products. In thisregards, it has managed to develop its customer base greatly incomparison to its competitors, which has allowed the company improveits profitability and market share. In addition, the market does nothave a market leader hence, each restaurant cultivates its ownstrategies of attracting clients by looking at its close competitors.In this regards, Cordon Blue has identified several market gaps suchas use of the same marketing approaches to attract clients andfailure by most restaurants to give incentives to clients. In thisregards, Cordon Blue has customized most of its products includingthe materials it use to serve clients. In addition, the quality ofservice created by Cordon Blue means that the restaurant has thepotential of opening other units in other areas of New York.