Key Reasons for the Depressing Sales and Profit - Case Study Example

?Case Study, Marketing Case Study, Marketing Case Questions What are the key reasons for the depressing sales and profit? There are diverse reasons that attribute to the depressing sales and profit in the Cafe Bijoux under the management of both Julie Sanders and Mary Carter. One of the chief reasons that try to explain the depressing sales and profits of the Cafe Bijoux is the poor advertising and promotion of the restaurant. In accordance to the introduction of the case, study of the Cafe Bijoux, Jennifer the professor of marketing and a marketing consultant drove back and forth the B street in search for the Cafe Bijoux. Jennifer also denotes that she drove along the B Street making several turns without seeing any visible sign of the restaurant1. This implies that the management of the restaurant has failed in making Cafe Bijoux known to the people. Only after making several circling around the street is when Jennifer was capable of seeing a small sign giving direction to the Cafe Bijoux restaurant. In accordance to the description of Jennifer, it is evident that poor promotion and advertisement of the Cafe Bijoux has contributed to the depressing sales and profits. The number of customers visiting a restaurant is determined by the advertisement and promotions made concerning the services offered. Since the management of the Cafe Bijoux lacks appropriate advertising techniques, it is almost impossible of the customers interested in obtaining food services from the cafe to identify the direction of the cafe2. Since the cafe is poorly advertised to the customers, it explains the reason why the sales and profits are depressing. Fewer customers visiting the Cafe Bijoux contribute little to the management and maintenance of the cafe. An additional reason that explains to the depressing profits and sales of the Cafe Bijoux is fact that the restaurant offers only one meal. The Cafe Bijoux only offers lunch meals to the target customers. Most of the restaurants in the region that aim at increasing the profitable margins aim at serving the customers with breakfast, lunch and dinner. However, serving the customers with only one meal gives a reason why the Cafe Bijoux receives depressing profits and sales. Not all the target customers will eat lunch from the restaurant. Some of the customers will prefer eating breakfast and maybe carry take away dinner to eat with the rest of the family members. However, since the Cafe Bijoux only offers launch meals alone, it discourages the number of the customers willing to eat breakfast and dinner at the same time3. The restaurant ought to increase the number of meals served to attract more customers and increase the sales and profitable returns. 2. Jennifer conducted a quick phone survey to understand the primary customers’ perceptions about Cafe Bijoux. Describe how Jennifer might have conducted the phone survey (based on your knowledge from marketing research). Phone surveys are one of the modern methods of data collection especially in the field of marketing to gather more information concerning the behavior of the customers. In accordance to the case study of the Cafe Bijoux restaurant, Jennifer conducted a quick phone survey to identify the customer’s behavior in relationship to the attitude and perception towards the Cafe Bijoux4. In conducting the phone survey, Jenner also gained additional information concerning the perception of the surrounding resident towards the services offered by the Cafe Bijoux. The phone survey concerning the Cafe Bijoux would also aid in undertaking customers analysis hence discovering the problems affecting the customers willing to acquire services from the restaurant. In Jennifer’s case, the Cafe Bijoux quick phone survey purposefully conducted the quick phone survey to find out the behavior of the City Hall employees who were the key target for the meals served. The phone survey conducted by Jennifer concerning Cafe Bijoux might have been undertaken in diverse ways to get a proper feedback of the customers and attain enough information. One of the most appropriate techniques that Jennifer might have undertaken during the phone survey is the use of questionnaires that needed direct response from the customers. Jennifer only needed to have a questionnaire that encompassed of the services provided by the Cafe Bijoux restaurant, the changes that need to be made concerning the Cafe Bijoux restaurants and the perception concerning aspects such as the environment and the prices of the meals5. Jennifer would then call each employee in the City Hall and have him/her answer the questions with short responses such as yes and no responses. In such phone survey, it is easier to extract information from the customers using simple and cheap mechanism. Such quick phone survey also makes it easier for the customers to give specific responses to the definite questions. However, Jennifer would also apply the random questions questionnaires in which she would just ask the customers to give an overall perception concerning the meals and services offered by the Cafe Bijoux restaurant6. From such a phone survey, only general information is obtained hence not recommended for customer analysis in the business environment. 3. Critically evaluate (pros and cons) the current segmentation and targeting strategy of the owners of the Cafe Bijoux. The current segmentation and target strategy of the Cafe Bijoux restaurant undertaken by both Mary Carter and Julie Sanders has both advantages and disadvantages in relationship to the existence of the restaurant. The pro of the current segmentation, which is the target of the employees of the City Hall, is that the customers can afford the prices of the soup and sandwiches offered in the Cafe Bijoux restaurant. In comparison with the other surrounding restaurant in the B Street, it is vivid that the Cafe Bijoux restaurant offered the soup and sandwiches at a more expensive price in relationship to the food served7. The other restaurants offer meals and soups at much-reduced prices. However, the difference in the restaurants and the meals served also contributes to the increased margin. Since some of the restaurants in the environments also target the residents in the area who earn less than the employees of the City Hall do earn, it explains the reduced prices in the other cafes to meet the references of the customers. However, the target market for the Cafe Bijoux is mainly the employees of City Hall hence have the capital, willingness and ability to purchase the higher prices of the soup and sandwiches8. Another pro of the employees of the City Hall, which is the current segmentation and target strategy of the management of Cafe Bijoux restaurant, is the availability. Since the City Hall operates during the weekdays, Monday to Friday, the Cafe Bijoux restaurant is assured of the customers who are willing and capable of purchasing products and services offered by Cafe Bijoux. Unlike the other restaurants that offer services even during the weekends, the Cafe Bijoux only offers until Friday when its target market is present. The disadvantage of the current target and segmentation of the strategy of the Cafe Bijoux restaurant is the fact that it is limited only to distinct customers. The target customers of the Cafe Bijoux are the employers of the City Hall only unlike the other restaurants that also focus on the other residents within the region9. The concentration of the Cafe Bijoux restaurant towards the employees of the City hall alone minimizes the opportunity of the cafe in purchasing its services to the other members of the community. The restaurant needs to expand its customers to the other members of the community to increase it risk and profitable returns. 4. What is the current positioning strategy? Is it working? Why or why not? The current positioning strategy of the Cafe Bijoux restaurant in relationship to the target customers in the surrounding environment is appropriate. Since most of the customers of the Cafe Bijoux restaurants work in the City Hall, the position of the Cafe Bijoux, which is, only a block away is efficient. The position of the Cafe Bijoux in relationship to the other neighboring restaurants close to the customers is also efficient. In accordance to the number of the customers visiting the Cafe Bijoux for receiving the services, the positioning strategy is not working10. This is because the number of target customers visiting the restaurant is fewer unlike the number of the customers visiting the other cafes in the same region. Since the number of the customers visiting the Cafe Bijoux is not more than the other cafes in the same region and its current positioning strategy is appropriate, then other factors are contributing to the failure of the restaurant. For instance, promotion and advertisement of the Cafe Bijoux is poor hence not attracting enough customers. Bibliography Lee, Chong. Cafe Bijoux: A Small Business Marketing Challenge. California State University Read More