Marketing Plan For U.S. Expansion
COMPANY AND BRAND
Ocean Basket is South Africa's favorite chain of seafood restaurants. The philosophy of the brand is to remove all the frills typically associated with seafood and offer a fantastic product at a great value, backed by exceptional service in a fun and inviting environment.
The brand has been extraordinarily successful with South African consumers during the past 15 years, opening 133 Outlets throughout sub-Saharan Africa. The company has also branched into other markets, including Cyprus, Mauritius, Nigeria and the UAE. The brand has received numerous consumer accolades, including Johannesburg's Best Seafood Restaurant award for 9 consecutive years.
The success of the Ocean Basket brand is primarily based on the following three pillars: * Operational simplicity of brand
* Comprehensive support structures from product supply to operational support * The brand’s value positioning
Ocean Basket was started in 1995 when two brothers, Fats and George Lazarides, partnered with George Nichas, in Pretoria, South Africa. The Lazarides brothers, who grew up near the coast in Cyprus, were living away from the sea and desired a taste of home. Joining with Nichas, who was a purveyor of fresh seafood, the three developed the plan for Ocean Basket. “We wanted to create a simple place where people could enjoy a great meal and great value. A homey place where they'd get together with friends and feel like they're part of our family,” Fatz Lazarides said.
Ocean Basket’s goal is to open 30 locations in the United States over the next ten years, with the initial three stores opening in New York City. Although the company hasn’t opened stores in the United States, it has empirical experience operating abroad. According to Fats Lazarides: “You have to be aware of your markets and adapt the menu without losing your core values. For example, Cyprus loves octopus on the menu, South Africans won’t touch it, and Europe hates calamari steak.” Although there are substantial cost savings through standardization, being able to adapt to an environment ensures success. Therefore Ocean Basket will adopt the concept of “think global, act local.” Marketing Segmentation
Shifting demographics and population growth will dramatically increase the demand for seafood in the United States, according to a comprehensive 2007 study conducted by the Economic Research Service of the Unites States Department of Agriculture. Seafood is expected to outpace poultry and beef as the fastest growing segment of the U.S protein market. It is estimated that an additional 1.81 billion kg of product will be needed to meet demand by 2020. As a result of this growth, Ocean Basket is confident that it will be able to target a wide-ranging demographic.1
Based on the diversity of our initial target demographic in New York City, Ocean Basket will serve a wide-range of customers. Ocean Basket is especially excited about the growth of Hispanic and Asian populations, who will play a dynamic role in the marketplace. Studies show that Hispanics consume seafood at a higher rate than the U.S. population as a whole. According to a research report by Opinion Dynamic Corp, Hispanics consume 24% more seafood than non-Hispanics. Currently, the Hispanic population is the largest ethnic group in the U.S. and will continue to grow at a rate faster than the population in general.1
The change in the U.S. population will also add to the growth of the seafood industry. Consumer research has shown that older adults in the U.S. eat more seafood than any other age group. Studies have shown that adults between the ages of 50 and 64 eat 35% more seafood than the national average, and adults over 65 eat 53% more seafood than the national average. This trend will help the industry grow as baby boomers mature,...