If management wants to improve the service and surroundings, and continue to operate much as before or it could reposition the Cove, taking it slightly down market by making it more informal it needs to know the following: the location of the restaurant, the type of clients/customers it attracts, the cost of making changes compared to the profits its going to make, training costs of staff for better service, the needs of customers( what they like at the restaurant i. . if they want it more casual or they demand service), Competition (it’s important to see the surrounding neighborhood and make sure they are the only full service or casual restaurant, average guest check ( each person or group that comes to the restaurant spends money and how much will determine whether to make it a formal or informal restaurant.
Management could also conduct a survey and ask its customers and the neighborhood of what they feel about the situation, see how much money they have and if they have to borrow money from a bank and at what rate do they have to pay it back if they are making changes to the surroundings, management could conduct a focus group which would essentially tell them what customers really need and expect at their restaurant, need to know the local economy and how strong or week it currently is.
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If it is strong people are willing to spend more and save less hence making it a formal restaurant would be good as more people are willing to spend, the type of menu they currently have and if they have to change it because they change the type of restaurant, the effect of the change of menu on food cost verses food sales Where should management find this information. Management can find this information by looking at their last year’s budget, finding out their current business status and by looking at current market trends.
Management could also conduct research and a survey to find out what the local people like and dislike. They could look at local newspapers and radio to find out the current economic situation of the local economy. Also management could look at their bottom line to determine whether making changes (which would cost money) to the amount of money they get in return (return on investment). Management could use secondary research methods such as the internet to find out the competition around them and what prices they charge for the quality of service.
What research tools and techniques should management use. Management can use tools and techniques such as primary and secondary research to assess other restaurants that are in competition and to figure out the market share and the economic growth rate which defines spending power. Customer visits would identify what the customer’s needs are and what they would like to change with the existing place. Survey research would also track customer likes and dislikes for a vast majority by a small sample.
It is important that management conduct the survey with the key representation of there customer base. Conducting a conjoint analysis would identify among several design alternatives which customers gave in the secondary and customer visits. Focus groups would give the emotional differences among the customers. Creating choice models would help understand how brand is perceived and the various preferences that exist between different customers. And finally conduct experimentations to compare the success of all the above strategies used to get information from customers to better the restaurant.
What kind of research would enable management to develop a feasible marketing plan. A properly conducted market research would enable management to develop a feasible marketing plan. The research conducted would help management understand their customer needs so that they can offer better service. When conducting their research management should define their target market, the size of the market, their competitors, the menu price and their location. This would enable the management team to create a marketing plan to a targeted customer base rather than just broad marketing.
It is vital for the restaurant to find its identity (type of restaurant it wants to be) through research and financial benefits and then put their money into marketing and selling their restaurant. Market research would enable them to find out their main customer base, their demographics, the amount of customers they have and the new ones they can attract. It will also help them to find out through research who their competition is and how they can be better than them and attract more customers to make and meet their profits.