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The Polar land

The Polar land is full service restaurant offering variety Taiwanese style tea, food, and also do delivery service. The location of restaurant is 16025 Gale Ave, Industry, California and the business start from March 2011, so pretty much new now; they opened 6 days a week, Monday to Saturday and 11am-10pm. Because the place of restaurant is not good spot, so the profits have a down turn in the business. The beef noodles are highly recommended by every customer that part takes in the meal. Polar Land offers a full service variety of tea and food which separates it from your average tea shop that does not serve entrees. The main reason for the bad placement of the restaurant is due to a strip club within close proximities to the location. Many people who have a choice to eat dinner and go to a strip club usually choose the strip club due to selfish reasons. Entertainment is a huge part of disposable income and many people use that to his or her benefit. This place is an amazing eating experience and I would know from experience considering I have visited and eaten at this wonderful location. I truly believe that if this location was in a better spot it would be extremely more successful. As a marketing minor I understand that the most important part of a business is location, location, location. Now that this place is in the worst location possible with a thriving similar store right next to the competition many things could have been considered before buying such a big deal in a bad location. The food is amazing the tea is amazing and I would not recommend any place around it over Polar Land because the service is amazing and the food is incredible. I would truly recommend this location to any of my friends and family due to the fact that the tangible product is one of a kind and should prosper one day.EXTERNAL ENVIRONMENT ANALYSIS The political and legal environment is very dynamic when it pertains to the restaurant industry. There are new bills being considered and new laws pass that can severely break a food and beverage operation. Examples of new legislation Polar Land should consider are the new food handler card law in California, and the current debate whether or not restaurants should be required to give workers paid sick days. Being a mom and pop restaurant, all of Polar Land’s employees may not have food handler cards, and Polar Land must do a cost/benefit analysis of whether to fund current workers to obtain a food handler card, or to simply hire new workers that have them. Polar Land should also take into consideration of the possible passing of a law that requires employers to give their workers paid sick days. As a restaurant which is doing poorly, Polar Land should evaluate its labor force, and only keep employees that will strengthen the position of the restaurant. The economic environment of the United States is also changing, as the country is trying to get out of its recession. According the Bureau of Labor Statistics, as of December 2011 the national unemployment rate dropped to 8.5%; California’s unemployment rate is still at a staggering 11.3% as of November 2011. Another grim fact is even though cyclical unemployment remains high, the consumer price index indicates the U.S economy is in a state of stagflation. Using the years 1982-1984 as base years, the CPI of the years 2009, 2010, and November of 2011 are as followed: 214.537, 218.056, 226.230. The U.S housing market is still suffering from the economic downturn, however, the U.S housing number has increased during the last quarter of 2011. For example, the housing numbers are 217.057 in 2009, 216.256 in 2010, and an upswing back to 220.631. This indicates a positive impact upon consumer spending because the increase of home equity will help build consumer confidence. Nevertheless, the real price of gas has been increasing rapidly over the past few years. The national gas price as of January 16, 2012 was at $3.34 with the index numbers of 201.978, 239.178, 300.146 for 2009-2011 respectively. The median household income for the City of Industry, CA, the city where Polar Land resides in, is $66,090 as of 2009 according to city-data.com. Polar Land has to keep all of these details in mind during menu engineering, and the marketing of its restaurant. The restaurant needs to keep or create new entries in the menu that will be unaffected by rising gas prices and inflation while creating a good value for their customers. The technological aspect of the restaurant industry has changed rapidly over the years. Many restaurants have adopted point of sales systems (POS) to improve the efficiency of calculating revenue, and facilitate cost control. Polar Land, being a mom and pop restaurant does not have a POS system. It might not be needed in its current situation, but as customers increase adopting one may be viable. Most restaurants, even mom and pop operations accept credit cards in order to increase sales. Another technological change restaurants have adopted, especially cafe theme operations similar to Polar Land, is Wi-Fi internet. Polar Land accepts credit cards, and offers free Wi-Fi, however it should consider having a computer in the restaurant for advertising purposes. Many restaurants today reap the benefits of advertising in terms of cost efficiency and publicity. Polar Land can follow suit by advertising its special items online to attract customers. The social environment which Polar Land is surrounded by presents an interesting opportunity. Its cliental is approximately 80 percent Chinese. The customers vary by age, from young teens to middle age adults. Located across from Polar Land are office buildings with a potential target market of business workers. The customer‘s general attitude towards the restaurant and its products are quite adequate, with an average of 4 stars on yelp.com. However, Polar Lands products are highly price elastic, your average customer cares deeply about price changes. This is understandable due to the low price range of the items that Polar Land markets. Its average entree price is about $6-7, while snacks range from $3-5. Therefore, the restaurant must increase prices with caution or include some added value when making the price change.INTERNAL OPERATIONS ANALYSIS Polar Land utilizes roughly $20,000 in decoration for the restaurant and $ 1,000 per month in advertising. Daily sales are about $800, Polar Land does not have any financial loans with banks because they use cash only for this restaurant. Polar Land is putting the pressure on competitors with the same type of restaurants, such as Ten Ren restaurants and Tea Time restaurants. Polar Land is having plenty of budgets for invest the new products, decorations, repairs, and new advertisement in television.Organizational Chart– CEO (Gina Huang) –– President (Jack Huang) –– Main Chief (Jack Huang) –– Helping Chief (Chief Liu) –– Main Staff (Gina Huang) –– Staff Waitress (Pattie Chen) –– Staff Waitress (Cece Zhang) –– Staff Waitress (Lulu Liu) – The Organization Chart analysis shows that staff means all waitresses that are services in the front part and bar. The main chief is also known as the culinary manager who is also the president. Polar Land is the CEO’s first restaurant so they do not have much operation people like a chain restaurants. CEO will like to open the chain restaurant later in this year of 2012. By the time, they will have more people to operation in this restaurant.COMPETITIVE ANALYSISPolar Land is a smaller scale Chinese cuisine in the homely area of Hacienda Heights, California. The competitive market for Polar Land could be a restaurant of any style in the area of Hacienda Heights, all being potential choices for consumers who are looking to have a meal. On this scale, the larger corporate food chains of the area such as Black Angus and Red Robin tend to dominate consumer choice for reason of familiarity and value (boorah.com). Thankfully for Polar Land, there is no large scale Chinese restaurant such as a PF Chang’s in the area for those consumers who are looking to eat specifically Chinese cuisine. Unfortunately for Polar Land there are three other Chinese style Cuisines in the area called Garden Fresh Vegetarian, Dumpling Master, and Yunnan Garden. Polar Land is not competitively strong and is a struggling business at this point in time. A lot of the negative feedback about Polar Land comes not from the food but the geographical location of the restaurant and concerns with its neighbors in the shopping center. Polar Land is located between a strip club and a tobacco shop. These surrounding businesses bring a negative connotation to the plaza and take a certain type of person to hang around. Parents do not feel comfortable taking their children to the restaurant next to the strip bar when they can conveniently go to another one in a nicer location. Garden Fresh Vegetarian and Dumpling Master have better ratings in service and location online (yelp). Consumers specifically posted that Garden Fresh had an extremely home-like feel but obviously only catered to certain types of people. People also say they feel that they are getting a healthier Chinese experience from Garden Fresh. Dumpling Master seems to dominate in food quality and flavor, as well as fast service. People like the extra spice added to lots of the dishes and say that the extra flavor keeps the consumer coming back. All of these restaurants are reasonably priced so that category does not need comparison. Without a healthy marketing scheme catered to the specific consumers that Polar Land has the potential to attract, the restaurant will continue to struggle within the community.INDUSTRY ANALYSISAn analysis of the restaurant industry is an important method that is used to determine the conditions of several areas that may affect the operations of Polar Land. The following factors are responsible for influencing the external and internal environment of the industry and the company itself.TrendsThere are several trends or unique changes that have occurred especially throughout Taiwanese restaurants. Surprisingly, rabbits have become a popular item. They are known to be very resourceful and also contain a delicious taste. However, some restaurants offer options that include “Asian Fusion” cuisine which is a mixture of both Asian and American food. The ingredients and cooking techniques are used differently to create new and exciting dishesGrowth PotentialThe Polar Land restaurant has a great opportunity to increase its revenue and sales. According to Agriculture and Agri-Food of Canada, Canada has been the largest importer of Taiwanese pork for the United States. Fortunately, the amount of pork imported has increased sixty-eight percent over the past year. As a result, the Taiwanese restaurant industry has created an advantage by being a primary supplier and consumer of pork products throughout the country.ObstaclesAlthough the Polar Land restaurant has been successful at providing exciting dishes, there are other factors that have caused concerns as well. Unfortunately, the prices for grains that are used to feed livestock have increased. The higher prices for supplies have caused consumers to rely on imports even more. Yet, many restaurants also have trouble seeking out new customers as well as informing communities that they are present and are open for business.SWOT ANALYSISStrengths· Polar Land offers a wide variety of menu choices that are marketed at a good value.· Polar Land’s customer satisfaction is high based on the restaurant‘s high ratings and positive feedback.· Again, based on customer feedback, Polar Land serves food that is both great tasty and eye appealing. In terms of product evaluation, Polar Land is heading towards the right direction.· Polar Land’s provides its customers with modern decor and clean facilities.· Polar Land owns a competitive advantage by offering lower prices than its leading competitors, such as Ten Ren’s.· Polar Land’s employee turnover rate is quite low because most of the employees are either the owner‘s family or friends of the owner.· Polar Land is already planning a flexible budget for the investment towards new products, restaurant decor, repairs, and new marketing campaigns.Weaknesses· The restaurant is located in a remote plaza, and is not easily noticeable to potential customers.· Although Polar Land’s feedback is generally positive, Polar Land does receive negative feedback solely because of the restaurant‘s bad location.· Polar Land’s customers are very price sensitive. This situation puts Polar Land in a tough spot when menu prices have to be increased.· Again with the CPI constantly increasing, it is very hard for Polar Land to keep costs under control when its customers are price sensitive.· Polar Land is not part of a chain restaurant, or has a sister restaurant; therefore, increasing customer awareness, and getting new customers to try Polar Land’s product will be difficult.· The restaurant is not up to date with technology like the rest of the industry. This will have a massive effect on efficiency and productivity when Polar Land’s cliental increases.· Currently, Polar Land does not have a solid marketing plan, or any consistent way to measure the restaurant‘s desired results to its actual results.Opportunitiesl Although Polar Land’s sales are mostly from Asian customers, the restaurant‘s menu is flexible enough to attract homegrown American consumers.l Polar Land can develop new services to cater the many office workers that are located around the restaurant. This can be a new market segment that Polar Land can attract without the threat of cannibalization.l Signature food like stew pork rice, or chicken leg with rice are Polar Land’s signature dishes and can be used to penetrate the market.l First time visitors to Polar land are often amazed at their lower price and really competitive Taiwanese foods, so make more entertainments to increase the revenues and customers.l Polar land always has promotions for holiday season event or Chinese lunar year festival.l The younger generation particularly in Rowland Heights area is increasingly seeking eastern foods styles and habits.l Polar Land’s threat with in product class competition is still quite low in the surrounding area.Threatl This ongoing recession forces many potential customers to save money, and eat home cooked meals.l Large Chinese chain restaurants such as Ten Ren’s forces small restaurants to shut down, or have an adverse effect on their profit margins.l Because of the bad state the economy is in, many restaurants in the industry are in or threaten by a price war with its competitors.l Some of Polar Land’s competitors provide a menu with a larger variety of dishes.Section 3: Target Market Analysis Due to the location of Polar Land targeting is challenging. The restaurant is located in the City of Industry, which is more of a suburban area with lots of family life and office warehouses. It is inconveniently located in a mini-mall with a tobacco shop and a strip club; automatically pushing the majority its consumers to one of the three Asian themed restaurants in the area. Parents would rather not have their children smelling like tobacco smoke and seeing men walking in and out of the strip club. Instead of sitting back and accepting the struggle, Polar Land must come up with a marketing scheme that will gain the interest of the consumers whom are already willing to dine at the restaurant. Thus, they should target the customers of the strip club and tobacco shop which have both proven to be profitable businesses (yelp).The restaurant currently provides services for an audience that consist of corporate businessmen along with working-class women and men. These individuals also fall between the ages of 21 and 49. They all contain a different household status including single, single-parent, married without children and married with children. Those people who have become regular customers are also employees who work within the local areas. Polar Land has been able to maintain a feasible amount of profit with the customers they currently provide services for. However, they have not been successful in attracting potential customers. Therefore, it is important for them to broaden their targeted audience to include individuals such as office assistants working at nearby warehouses who can eat conveniently during their lunches. Students can also be a possible group who can eat out during afternoons with their friends from school. If Polar Land seeks out a vast array of consumers; then it would be possible to have constant traffic of consumers throughout the week as well as receiving usual business from people who purchase meals during evenings and on the weekends.One way they could target consumers is by placing discount cards inside of the strip club and tobacco shops or even make a deal with the owners. For example, the restaurant could talk to the strip club about doing a one night free admission with purchase of meal over 20 dollars. The owner of Polar Land would give the owner of the strip club a cut of the profit. The only problem with this marketing scheme is that one establishment exclusively caters to a certain type of person which then excludes a majority of consumers available at the other. Both parties must be sure to go over all details of the agreement to ensure a successful outcome. But, in order to attract more customers and teens, they can place discounted coupons in several local stores. Providing guests with incentives successfully allows Polar Land to target consumers that are appropriate for their establishment. Yet, customers can also be targeted by offering a lunch special that includes a large green or black tea which would help draw in the nearby assistants and workers. For example, they can create deals that offer discounts and priority delivery to local companies that put in orders on a regular basis. Polar Land can also have a buy one get one free drink in the afternoon that would help catch the attention of more students in the nearby school area. As mention the coupon, will also help attract customers to go to Polar Land during the day. There are lots of ways to make their market widely, and make their restaurants more successfully.Broadening their target market to serve young adults as well as business people is a great way to increase the amount of traffic on their website. However, the restaurant must consider making additional changes. First, the owners should supply all of their customers with free WIFI which would also help attract more teens. Another adjustment can be made by reserving a separate page on the website that would allow customers to post and examine reviews about their service. In addition, the method can become very helpful since the information is supported by an accredited recommendation website such as Yelp. Yelp is an online business search engine that many customers use to determine which establishment provides the best service, quality and customer service. Besides providing reviews, Polar Land can continue to focus on rearranging their entire menu. Along with providing appetizing photos, there should be clear descriptions of how the meals are prepared, cooked and served. Offering customers useful information will make it easier for them to become familiar with the establishment as well as drawing in more potential clients. Yet, the restaurant should also consider making their website consumer friendly. Meaning, it would be helpful to add an attractive color scheme and images of the restaurant that would appeal to their targeted audience. The goal is to create an alluring vision that would enable customers to make the restaurant their main priority for great food and service. Being able to reach consumers through a positive promotional method also allows Polar Land to improve their corporate image. If the company looks and performs better, then customers would be more willing to refer clients through the use of word-to-mouth. These particular promotion techniques can create an advantage because the company is building up their reputation along with increasing their clientele.

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