Lombardi's Italian Grill Restaurant Marketing Strategy - Case Study Example

Marketing Strategy#1 One can say that Monica is doing less than average in terms of her sales and profits. Considering the size of her restaurant, it should be making better than just earning $4,200 per week. Since Lombardi is the only restaurant in the shopping center, it should be capturing a large market of the center, but presently its revenues do not show evidence of such. This may also be an indication that its location is not exactly where its target market is.#2 The current marketing strategy of Monica is just so-so.

She probably did not have a comprehensive marketing plan when she opened Lombardi. A marketing plan is essential because the plan will set her objectives for the restaurant and the strategies that she will implement to meet those objectives. One can observe this in the way she decided where to locate her restaurant. Monica’s major decision point was the location is “at the crossroads of three major interstate highways”[Lom]; thus, there was heavy traffic. Monica failed to consider her target market.

The location may have heavy traffic but if her target market is not there, the strategy will still not work. The strategy that she adapted is that of mass marketing which is not appropriate considering that her restaurant is a specialty restaurant. With regards to her promotions strategy, advertising through the internet may not be a good idea. Internet advertising is inappropriate with the profile of her target market. Monica should consider giving out flyers instead, among the visitors of the shopping center where the restaurant is located.

Monica’s marketing strategy should have been more specific. She should have made the necessary plans with regards to her product offerings and pricing. Her low sales may be due to an ineffective marketing strategy. #3 One thinks that she should seriously consider joining a franchise chain at this point in time. Right now, her gross revenue is at $4,200 per week or a projected annual revenue of $201,600 only (Cannon, et al 451). On the other hand, if she will join a franchise chain, her expected annual revenue will be approximately $500,000 to $1 million; which is more than double what she is earning now (Cannon, et al 451).. Furthermore since the start of her business in 2005, the surplus amount which she built up for herself is only $9,000, in a span of almost two years (Cannon, et al 451).. However, if she decides to join a franchising chain, her expected salary will be approximately $150,000 per year; which is more than what she is getting now.

Moreover, a pending pizzeria scheduled to open near her restaurant will definitely affect her sales since they both offer Italian food. If Monica’s main concern is that she will lose her independence, one suggests that she builds up her funds first through the franchise restaurant and then later open a smaller restaurant (not 3,000 square meters) with the same concept as the Lombardi’s grill. In this way, she will be hitting two birds with one stone. She will have the available financial resources to open a new restaurant from the earnings of her franchise restaurant and at the same time she still has independence from the new restaurant she will put up.

Works CitedLom: , (Cannon, McCarthy and Perreault 451),