Diana BergerArthur CatlinLarry CenottoDan Eriksen

Matt Gauthier

Background/Introduction

• Opened in River Park Square in 2000– Offering a small menu which focused

on “legendary burgers,” and operating within the casual dining industry, Sawtooth has been fighting an uphill battle to gain market share against existing competitors

• “Preferred Guest Program” – Over 200 members

• Expanded in recent years– More menu options and a fully stocked

bar

• Sawtooth lost money the first 4 years– Turned a $5,000 profit in 5th year

• The slow time is during the summer and when school starts in the fall

Situation Analysis

• Macro-Environment– Weather conditions

• In Spokane and where food originates

– Product delivery• Just-in-time inventory system

– Rate of savings– Gas Prices

• Less disposable income

• Restaurant Industry– Food and Beverage service– Make meal an experience

• Initial introduction to Sawtooth• Friendliness of crew• Atmosphere

– Music, layout, food, decoration

• Market Segments– South Hill

• Anyone who eats out• Lunch market is downtown

business crowd– Look for quick, high-quality,

fairly priced food• Women shoppers during the

day• Families that combine

events• City visitors

• Competitive Analysis– Primary

• Rock City Grill• Red Robin

– Secondary• Olive Garden• Cyrus O’Leary’s • Clinkerdagger’s• Anthony’s• P.F. Chang’s

– Under construction

• The Firm– Employees

• 2 salaried & 63 hourly • FOH/BOH

– Structure consists of bartenders, servers, expediters, hostesses and bussers, which flow down from the organizational chart in level of authority

– Team-based structure• All members work together to provide enjoyable experience for all guests

• Current Marketing Strategy– Fairly weak– Sawtooth has never allocated a

marketing or promotional budget • Oxford Suites

– Suites offer free appetizer vouchers for staying• “Bounce backs” from holiday months• Celebration cards• River Park Square promotions

Strengths-Food quality-Service-Restaurant cleanliness-Consistency

Weaknesses-Staff turnover-Inventory depletion -Limited restaurant space

Opportunities-Advertising -Vertical integration -Increasing population-Downtown renovation

Threats-Local competition -Rate of savings rising -Addition of P.F. Chang’s -Rising gas prices-Adverse weather trends

Marketing Objectives, Target Market, and

Positioning

• Marketing Objectives– Increase sales to $2 million for 2006

• $1.845 million in 2005• 8.4% increase

– Increase number of customers– Control business lunch downtown– Penetrate new markets

• Gonzaga• Vegetarian & health conscious eaters

• Target Market– Lunch

• Business professionals• Lots of downtown businesses• Fast, quality food• Must beat out competitors like Rock City and Red

Robin

• Target Market– Dinner

• Families• Visitors to River Park Square

– People will not travel long distances for a casual dining restaurant

• Target Market– Secondary Market

• Visitors to Spokane• Business travelers• Always need to acquire new customers

– New Market• GU Students

– Student specials and iMye affiliation• Riverpoint Campus in Spokane• New residents of Spokane

• Market Positioning– Business Clientele

• Quick, friendly service

– Families• Comfortable atmosphere, family environment

– Visitors• Quality at a great value

Marketing Plan

• Product Strategies– Focus on healthy side dishes

• Currently offered, but do not adequately promoted

– Offer vegetarian options• Expand on salad offerings

– Provide low-fat options– Expand the drink menu

• Only 7 drinks on the menu

• Promotion Plans– iMye affiliation– Inlander advertisement– Website design– Neon sign placement– Personal selling– Wireless internet

access

• iMye– Comparable to flex

• Available at a wide variety of locations

– Would increase awareness among students• Close to campus• Many students visit River Park Square to see movies

– Students do not consider iMye real money• Accounts more than likely funded by parents• Much more willing to spend this than their own money

– Currently used by Sawtooth’s competition• Cyrus O’Leary’s

• Inlander Advertisement– Increase brand awareness

• Circulates 45,000 papers to Spokane/Coeur D’Alene area

• Reach readers who use the paper to search for upcoming events downtown

– Increase trial• Obtain new customers

– Rates vary depending on size and color– Sizes: 1-20 units, 20 being a full page

• Can be arranged horizontally, vertically, or in a square

• Inlander Advertisement– Recommendation

• Two unit, black and white ad• Would contain Sawtooth logo, phone number, and

address

– Discounts offered– Sawtooth should run a trial campaign

• Maximize frequency• Cost-effective• Run during summer months

– Total cost: $2,184

• Website Design– Potential to improve reach– Relatively low cost – Effective for those familiar with

Sawtooth• Check out promotions, print coupons, view

menu

– Increase Competitive Abilities• Keep up with competitors who operate

websites• Increase awareness

• Website Design– Include features such as:

• Mapquest directions• Online menu & prices• Nutritional information• Business information

– Cost• Ranging between $1,600 and $3,100

– Price dependent upon optional features

• Neon Sign Placement– Current “Sawtooth Grill” neon sign

faces a competitor, Rock City Grill.• Cost of $12,000 to move this sign

– New location faces Main Street• Seen by visitors coming in to River Park Square• Creates awareness of an additional dining

option

• Personal Selling– Guests asked how they heard of Sawtooth

• Word of mouth/Neon sign/Inlander Advertisement

– Provides evaluation of promotional avenues

– Potential Problem• Bothering repeat customers with the same

questions– May deter repeat visits

• Alternative is to offer a discount to customers who mention they saw an Inlander ad

– Virtually no cost

• Wireless Internet Access– Currently does not offer wireless internet

• Spokane “Hot Zone” not reached in Sawtooth

– Effective method of reaching target market:

• Business professionals • Provides competitive advantage

– Cost• Installation: $99.99• Monthly Payment: $44.99

– Must be advertised• Sign near entrance• Free-standing cards on tables

Conclusion

• We believe that these strategies can prove very beneficial for Sawtooth if implemented. By…– Tapping into new markets– Catering to repeat customers– Making small changes such as sign

placement and increased menu options

• Sawtooth can become especially profitable in the very near future

Any Questions?

• Quiz– Name 1 market that Sawtooth needs

to control or penetrate.– What is the sales goal for Sawtooth

during the 2006 year?– Name one type of media for Sawtooth

that our group has suggested.– What is 1 strength of Sawtooth Grill?– In your opinion, what is the best

marketing tactic for Sawtooth Grill and why?