MARKETING PLAN

Laura Hession Edward McNeil
Maria Bogan Kathryn Neely

GM600 Keller Graduate School of Management
COMPANY DESCRIPTION|
We are Digital Computation, LLC. We’ve created an innovative way to assist restaurant owners in the Indianapolis area. This marketing plan is designed for Digital Computation, LLC with the main purpose of creating local awareness of its handheld, mobile Point-of-Sale (POS) digital products to be used in the restaurant industry.
We assist owners by providing them with the solution to enhance their customer service, while at the same time increasing their bottom-line. Digital Computation, LLC exists to provide clients with the necessary tools and information to be successful in a constantly growing market of electronics and technological advances for the restaurant industry. Our logo represents working together with technology. The two “I’s” in Digital represent “I” the customer and “I” the waiter/waitress. We want to help build an excellent customer experience.
Our focus is to create strong partnerships with our clients in the restaurant/food industry in a never ending attempt to increase awareness and a POS-itive image. Our initial city of focus will be the Indianapolis Metro area.
As of 2010, Indianapolis Metro Area's population was 1,728,146 people. Since 2000, it has had a population growth of 13.40 percent. The median home cost in Indianapolis Metro Area is $119,000. Home appreciation the last year has been -1.36 percent. Compared to the rest of the country, Indianapolis Metro Area's cost of living is 16.60% Lower than the U.S. average.1
PRODUCT /SERVICE CONCEPT
Digital Computation, LLC has developed an innovative product platform which will expand and benefit both restaurant owners and their customers. Our product-line consists of the DigiComp 1000 which is a high quality hardware POS handheld device and the DigiSMART POS software system. Both of them working together will provide integrated online ordering, inventory management and control, wireless table side ordering, bill generation (e-mail receipts) and payment processing (credit card reader), real-time alerts, mobile management capabilities and back office management which will increase restaurant revenue, cut cost and increase bottom line. We will also offer service agreements

TARGET MARKET|
The target market is restaurants (managers, owners) who offer full service casual seated dining for customers who dine in. During the first two years we will target independent establishments, small franchises and dine-in/casual establishments such as, Scotty’s, Logan’s Roadhouse and Bonefish Bar & Grill in the Indianapolis area. In years 3-5, we will venture out to larger franchises and fine dining establishment (ex. Olive Garden) located in other parts of the United States.
We want to create customer demand for restaurants. Once customers experience the luxury of having entertainment and functionality at their fingertips while waiting for a table or the speed and independence of paying and leaving when they are ready, the DigiComp line will become a requested necessity where they dine.
The restaurant industry is growing rapidly across the United States. It has been projected that sales will increase by 3.6% in 2011. With almost 12,000 food service establishments, Indiana makes up 2% of the sales in U.S. Restaurant industry sales are expected to reach a record $604 billion and post positive growth in 2011 after a three-year period of negative real sales growth, according to the National Restaurant Association 2011 Restaurant Industry Forecast.2
MARKET NEED|
At Digital Computation, LLC we use a developed approach that involves goals, research and implementation. By setting achievable goals we are able to create measurable and obtainable marketing plan with a vision that is in sync with our client’s goals and needs. By conducting extensive primary and secondary research that is highly focused on a reachable target market we are able to gain a greater understanding for the markets buying habits and behaviors. We also focused on their customers’ needs when it came to service, satisfaction and experience. Our products will move restaurant owners into the digital world giving them the ability to compute their business transactions in a positive way and create an environment for which their customer will enjoy going.
The DigiComp 1000 will offer full service treatment from the time of arrival all the way until checkout time. It will also offer less stress with easy to use menus and fun activities to keep the whole family happy and entertained while waiting. By decreasing the table turn-time, restaurants could seat more customers and generate more daily income. Customers will enjoy the shorter table waits as well. The current product portfolio being developed includes:
DigiComp 1000 Handheld POS device (Hardware) * Allows customers flexibility and security in paying * Shortens table turnover time and subsequently increases potential income and customer quality * Helps track order and volume patterns * Also allows customers to control: * drink and/or appetizer orders delivered to the customer through RFID technology * games to entertain the family * digital menu to decide what's for dinner * credit card processing * Digital receipts sent to an e-mail address of the customers choosing
DigiSMART
* Software platform * With the use of a smart phone, customers will be able to: * make reservations * order drinks and/or appetizer orders delivered to the customer through GPS technology (on enabled devices) * view the menu * credit card processing

Many of the restaurants in the Indianapolis area are still using the pad and pen or pencil approach to taking orders. While the traditional system of pen and paper may be satisfactory for certain restaurants, for others there is a need for a system that can appreciably decrease wait-time thereby increasing customer satisfaction.

We conducted two separate surveys; one survey was given to restaurant managers/owners and one for their customers. The charts below come from a customer survey results focusing on the wait time the customer has while waiting for a table and while waiting on their payment to process. None of the restaurant owners asked thought their payment processing time was longer than 4 minutes. Their customers felt differently with an average wait time of 10 to 14 minutes. This information discrepancy will be pivotal to Digital Computations, LLC market niche.

In this survey, we found out the following information about how restaurant customers feel about our products. * 50% of customers felt a table top POS would enhance their customer experience * 73% of customers felt a table top POS would decrease their wait time to pay * Showed that the DigiComp 1000 was a desired product

The store managers were also surveyed and gave us the following results:
Of those surveyed (n=8): * 60% claim a table turn time of 20-30 minutes * 63% felt the DigiComp100 would be at least a minor improvement over what their current process is * 50% are likely to add a mobile handheld device * Word-of-mouth and sales representatives are most likely to influence the buy decision
Based on the results of our surveys and evaluation, we feel that the DigiComp 1000 has the potential to offer many benefits above the obvious ones of waiting on more tables.
COMPETITIVE ANALYSIS|
Competition
Our research for this sample marketing plan has revealed several handheld POS systems that could potentially be competitors in our market niche. These include the Micros MobileMICROS, and the Aldelo Fuzion Wireless Handheld wireless POS systems. Micros and Aldelo are two main competitors we will face. * MICROS MICROS Systems, Inc. (NASDAQ: MCRS), headquartered in Columbia, Maryland, is the world's leading developer of enterprise applications serving the hospitality and specialty retail industries. MICROS is also the global leader in the restaurant industry with more than 330,000 installations worldwide.3 MobileMICROS does offer servers a portable option, however, it is only available with MICROS POS systems and is not available in a customer use format. * ALDELO Aldelo is a privately held organization with offices in California and a vast channel partner network around the world. Aldelo offers two core products to its customer base. The first core product is similar to our advanced point of sale and management software for table service and quick service hospitality operations but is only available to the service staff. This offering is quite expensive. The second core product is similar to our next generation secured payment processing software certified for retail, restaurant and MOTO industry merchants and requires the customer to have an iPad.4

ALDELO: Fuzion and Micros: MobileMICROS

These two competitors have not expanded heavily into the Indianapolis area with portable POS systems. This will allow us to move in as a first offering to our target market. We are also the only offering where the restaurant customer interacts with the device. Both Aldelo and Micros may try to mimic our offering, but we will likely be able to continue beating their best price, availability and service since we are located locally.
SWOT Analysis
DIGITAL COMPUTATION: DigiComp The DigiComp product line and management staff brings many solid strengths to the business arena. The product line is innovative and will create appeal to our direct customers and our customer’s customers. The diverse management group has experience in several different fields and specialties. The groups weaknesses are their lack of management experience running independent companies, experience in the actual restaurant industry and the product line’s dependence on technology.
Indirect competitors for the DigiComp platform would include two different categories: other food sources for restaurant customers and other business ventures for restaurants. Restaurant margins are being monitored closely as the recession begins waning and small franchise or independent owners may not have the funds available to purchase a large system. Consumer spending is expected to continue increasing in the restaurant arena but other food sources, such as the grocery and fast food establishments, will continue to compete for revenues.
PRICING STRATEGY|
We will enter the market priced under our competition. We will offer up to a 5% discount when 5 to 9 devices are purchased and up to 10% discount on 10 or more devices are purchased together. In year 3, our prices will increase, but we will remain competitively low to continue to strengthen our client base.
MARKETING COMMUNICATIONS|
Digital Computation, LLC will be known for assisting restaurants in the Indianapolis area by providing them with the solution to enhance their customer service, while at the same time increasing their bottom-line. Our slogan, “Your Solution for POS-itive Results” says it all. We want to position ourselves as: * POS-itively Reliable * POS-itively Efficient * POS-itively Enhance customer service * POS-itively Increase bottom-line
To position the new DigiComp product we are going to take a very different marketing approach in order to differentiate our product from existing POS systems. We will be taking a reverse approach at marketing the new DigiComp by positioning the product around its ease of use and simplicity rather than innovation and advanced technology, mainly because everyone else has already pursued that avenue.
What’s unique about the DigiComp is that it will be able to integrate with other systems, while others do not.
In order to build awareness and our brand, * we will develop an online ad campaign with landing pages containing lead generation forms * We will use the following advertising/promotions sources: * Direct Mail (Purchase lists for email/direct mail/direct marketing) * Restaurant trade associations/magazines * We will develop marketing communications tools such as: brochures, flyers, data/detailer sheets and a website

MARKETING BUDGET|

SALES AND MARKETING CHANNEL|
We will focus on two ways to reach restaurant general managers, purchasing agents, owners and buyers: * Advertising-direct mail * Networking-tradeshows
The advertising will primarily be online via search engine ads and banner ads * We will advertise DigiComp products monthly online thru: * BuyerZone (low cost lead generation) http://www.buyerzone.com/pages/leads/index.html * Anything4restaurants.com (Technology) * NationsRestaurantNews.com * SpecPage.com
*Anything4Restaurants is a joint venture between Nation’s Restaurant News and SpecPage, leaders in their respective industries that are committed to the Food Service Industry. * Network at 2 major trade shows and conferences a year * FSTEC 2011 (September 25-28, Grapevine, TX) * NRA Show 2012 * Press Releases * Hospitality World Network * Local (IBJ, Indiana Business Weekly)

SOURCES CITED| 1. http://www.restaurant.org/pressroom/social-media releases/release/?page=social_media_2011_forecast.cfm 2. http://www.bestplaces.net/city/profile.aspx?city=Indianapolis_IN 3. http://www.micros.com/AboutUs/Company+Profile/ 4. http://www.aldelo.com/AboutUs.aspx 5.

APPENDIX|