University Market There is a problem because Kathy Kelleher, manager of Bentleys wanted to keep the market open to everyone. But everything seemed to be targeted toward the student and faculty at the University of Arizona. What is the critical question? The critical question is if she wanted to provide a facility that would appeal to all why is Kathy Kelleher putting so much effort into exposing the University market to Bentleys. This is the basis for the problem because Kelleher had neglected to offer specials or other promotional items to attract people other than the university crowd. What are the critical factors? 1) Pleased to see many students seated throughout the restaurant due to a current advertisement in the local newspaper.
2) Promoted a University of Arizona student/faculty dinner for $5.95 from 4:00 to 6:00 daily. 3) Students dismissed Bentleys in the past because it was out of their price range. 4) Kelleher wanted everyone to feel comfortable in her establishment, and thought it was time to expose the university market to the restaurant. 5) The overall sales mix was 80 percent food and 20 percent alcoholic beverages. 6) Kelleher made her mission statement very clear. “We offer a little bit of everything for everyone.
The last thing I want to do is limit the market to one particular group.” 7) Kelleher decided to offer two separate menus beginning in August of 1988. 8) The dinner check average was $17.00 including beverages. 9) Front-of the house employees were unhappy because they had to serve more customers to make the same amount of money. 10) The chef and cooks were less enthusiastic since they considered the lower price additions to the dinner menu to be incompatible with the overall concept and not worthy of their attention. 11) Lunch service was discontinued on weekdays in early 1989 after covers plummeted by 75%.
12) Management blamed the decrease on the construction on a former parking lot, which had previously been used by the restaurant guests. 13) Lunch customers were unable to park and went elsewhere. 14) Kelleher eliminated significant overhead by closing during the day. 15) Averaged 100 covers Monday to Wednesday. Averaged 125 covers Thursday and Friday Averaged 200 covers Saturday and Sunday.
Averaged 300 covers for Sunday brunch. 16) Management attempted to fill the slow periods by offering dinner for two for $11.95 on Monday. 17) Advertising was directed toward different markets during different seasons. 18) Tucson television channel 13 has awarded the establishment with 4 stars. 19) Kelleher spent a lot of time visiting competitors in order to identify new ideas and trends to implement at her restaurant. 20) Comment cards were distributed as a means of monitoring the Bentleys experience and comparing it to the competition.
21) As an incentive to complete the comment card a random drawing awarded a complimentary Sunday brunch for two. 22) Results from the comment cards rated the menu and service very high. 23) Customers requested less expensive menu items. 24) Spends a considerable amount of money on a large arrangement of flowers for the entranceway and fresh flowers for each table. The flowers confused customers since they assumed that the restaurant was out of their price range.
25) Originally initiated the cut-rate specials as a means of reaching the price sensitive market. 26) First time customers were surprised they could afford Bentleys if they timed it correctly. The conditions for solution 1) If they invest in a parking lot then they would attract more lunch customers. 2) If they advertised their outside bar to the surrounding businesses then they could attract people after work for a drink at the end of the day. 3) If Kelleher offered $5.95 specials to all customers during off peak times then they would attract more people outside the university. 4) If they invested in artificial flowers they would have money to put somewhere else.
She could increase wages for the angry workers that have to work twice as hard. 5) If she is really trying to attract tourists then she could offer a discount for persons who show an out of state ID card. 6) If she chose a particular market to target then there would more likely be a higher rate of success. 7) If they continue to offer specials then they will more likely develop an ongoing relationship with customers. 8) If they continue to have good food and service then people will refer their friends and family.
9) If Bentleys had a new concept with light meals, relatively low prices, good service and informal atmosphere then students would be more likely to go there. Situation analysis Strengths a) received a four star rating b) Corporation opened several establishments in the southwest region and offered high quality at a good value. c) Offered on and off premise catering. d) Bentleys was located in the historic part of town. This is how they can attract tourist. e) Committed to aggressive promotion to keep the public talking (offering a $5.95 special to students/faculty).
f) Comment cards rated the menu and service very high. g) Gave the customer a choice of customizing their own menu for parties of twenty or more. h) The only 70 seat outdoor patio in the area where you could just order drinks. Weaknesses a) Lowering prices to get the student and faculty to come in and dine during off peak time. b) Not having enough parking for lunch customers and discontinuing lunch service on weekdays.
c) Specials were limited to certain entres. Opportunities a) As an incentive for customers to fill out comment cards they selected one from a random drawing for a free brunch. b) By opening the only outdoor patio with a bar in town she is allowing the people to stop by just for a drink without the obligation of ordering food. Lots of people would like to stop in for a drink this would attract a whole new crowd. c) By lowering the prices they could attract more people who eat at McDonalds by giving more affordable prices. Threats a) Not having enough parking will force people to go somewhere else. b) Having a formal dcor like this restaurant has may make some informal customers feel uncomfortable.
Even though they say this is a casual place. c) Competition, if they can not provide what the customer wants they will go elsewhere. d) Offering too low prices could attract more customers but it might give a negative result. Assumptions a) I assume fresh flower arrangements cost a lot and if Kelleher got rid of them she would be able to lower prices for everyone. She would more likely attract more customers from the university because the touches of flowers give a formal atmosphere rather than an informal one.
b) I assume investing in a parking lot will attract more customers because they wouldnt have to search for a parking space. I assume this will also allow them to reopen for lunch. c) I assume that if they dont invest in a parking lot they will lose more customers during the hours between 4:00 to 6:00pm when people are still at work and parking spaces are not available. d) I assume that if Kelleher keeps her customers happy they will return and also refer friends and family. Conclusion In conclusion I see that Kelleher need to focus on one particular market.
You can please most of the people most of the time but you cant please all of the people all of the time. If she cut out the flower arrangements which makes people think this is a formal environment more students would come in and dine because they are looking for something casual. Basically Kelleher needs to give the students what they want for a price that they can afford or they will take their business elsewhere. By offering lower prices she will be able to bring in more of the university population which will result in compensation for lower check averages.