Activity-The Italian Restaurant Renaissance
15 years ago, Roberto and his wife Christina opened an Italian restaurant. This had been a childhood dream of Roberto’s. Initially, Roberto was going to enter into a lease agreement, however, this annoyed his father who was a very conservative Australian-Italian. He is thankful now and remembers his father emphasing ‘Remember Roberto – we don’t pay rent to no one’. Fortunately, his parents had the financial resources to help Roberto and Christine to purchase the building – and when they offered to pay back the loan his parents refused: ORDER YOUR PAPER NOW
The restaurant is situated in what is commonly referred to as a ‘strip mall’. A strip mall is a common type of shopping centre in Australia: there are a number of shops in a row, each shop has a glass front, a covered [veranda] pavement that connects the different shops, and convenient parking out the front – generally on a busy road. The arrangements between the shops is less formal than in a shopping mall and the easy access at night time is convenient for restaurant customers. Until recently there was a café – two shops away and next to the Woolworths supermarket, however, in the last twelve months the café was sold to new owners and soon after closed. The new owners stated that it was due to high rents and dwindling sales – they blamed the previous owners for overstating the income – the previous owners blamed the new owners – who were inexperienced, would not listen, and ran it into the ground – the staff blamed poor management – the shop is now vacant. Christina thinks this is an opportunity to increase revenue, reduce costs as a % of sales, and build the value of their business.
To acknowledge the parent’s assistance; Roberto invited, around 7 years ago, his 2 younger brothers Michaele and Philippe to join the business, and then 5 years ago, once they had proven themselves, gave them each a 25% share. Roberto and Christina are glad they made that arrangement because they are committed to the business. Michaele runs the kitchen, he worked as a cook in a mining camp after gaining a TAFE qualification. Philippe, who is two years younger than Michaele, manages the front of house, he studied hospitality management at university. Although this is a partnership and the relationships are generally good– it is clear that Roberto is the boss.
Roberto and his wife, Christina [who also has 25% share – is considered by customers as Roberto’s boss], have recently returned from a 4-week European holiday – the first ‘real holiday’ they have had since they were married. Roberto has come back full of ideas on how they should refresh the restaurant. Michaele laughs and teases Roberto ‘1,000s of pictures of food and restaurants and I have yet to see a photo of you and Christina?’. Christina just laughs – she knows that in many ways – when she married Robert she married a restaurant – but acknowledges the restaurant has given them a good life. With their children in high school she has toyed with the idea of opening the restaurant for coffee and cakes prior to the restaurant opening in the evening.
The magazine article
This activity is full of great ideas and intentions, however, it does feel a little chaotic. This is reinforced by Neil, a marketing consultant, who is suggesting a more formal business-marketing planning process is needed. He believes that without the rigor of a business plan marketing plan, marketing action plans, and a proper budget – the strategic intentions may not be realised in either Roberto’s refresh of the restaurant or Christina’s cafe project.
Consider the activity and discuss how the CADDIE process could be employed by this business to ensure a more professional business approach. Compare the approach to planning by Roberto and Christina to that outlined in the marketing concept [e-book].
Within your answer demonstrate your understanding of the marketing concept, a marketing philosophy, the 3 mega-marketing concepts, the 9 objectives of a marketing practitioners. In addition, discuss the business-marketing planning process and in particular the design and development of a marketing plan and marketing action plans.
This assessment does not lend itself to a formal academic essay style [the only required source is the e-book]; therefore a magazine style is recommended. You may include images and it is acceptable to employ images from the e-book or slides. You should end-text the e-book and the activity but there is no need to in-text.
Areas to consider when writing this magazine article [note these are not questions]:
- There are three business concepts: ORDER YOUR PAPER NOW
- When answering this activity ensure you discuss how this family business has adopted the marketing concept and has a marketing philosophy.
- Some managers have a scotoma [unable to see] that their products is the totality of what is offered and received
- When answering this activity ensure you discuss the total product and the advantage of this mega-marketing concepts to marketing practitioners.
- The product layers concept suggests that products have layers.
- When answering this activity ensure you identify and discuss the core, expected, augmented, and potential product layers outlined in this activity.
- The potential product relates to the designing and development of a new or existing product.
- When answering this activity ensure you address Christina’s cafe project.
- This activity draws attention to the importance of place to create an experience – an authentic experience. The product components are inferred within this activity. When answering this activity ensure you:
- identify and discuss the goods, services, ideas, experiences, people, and place components.
- discuss the product component that [you consider] is the dominant product component.
- address the product qualities needed to make this product an authentic ‘Italian’ experience.
- discuss the place qualities that need to be addressed.
- discuss the social media platforms that could be employed to communicate and amplify the product experience.
- The circle of satisfaction outlines how a competitive advantage is achieved
- When answering this activity ensure you include the importance of this to loyal customer behaviour.