Levendarary Cafe Case Study

Submitted By blubot
Words: 2227
Pages: 9

Brand: t the beginning of the café, the founder emphasi5ed the culture A delighting the customerB that impressed the customers deeply" 7he company was also committed to evolving menu choice to %eep the brand fresh in the eyes of the customers" Quality service:
7he company gave up the standardi5ation service model that means speed of service and order accuracy, and emphasi5e personali5ation in service" 7his approach brought Levendary Café many A heavy userB customers that consist of white'collar professionals and upper'middle'class women" Local menu adaptions:
Levendary had a fle/ible menu in different 80 states" #t allowed one or two regional specialties to be added to its core menu and listed its menu items on order of local popularity" Food quality:
7he concept team in the company would roll out a suite of new products five times in a year and always used healthy ingredients li%e pomegranates or uinoa" )oreover, these new products would have minor variants to adapt to different flavor in different areas" *$ otential institutional voids in China:
Culture difference:
7he difference of culture between two countries is the biggest barrier in this case" *ating habit is the first reason" 7here is a wide variation in regional food taste in China, so that its very hard to satisfy every customers demand in flavor" (urthermore, western food is not Chinese peoples favorite food" #ts very hard to attract and maintain customers" 7here were many challenges for ma%ing menu, food and mar%eting teams" Lack of information: there were so many companies had entered into Chinese foodservice industry, its very ris% for Levendary as new entrant" 7he company also needed to %now about the policy and financial statement format for the new mar%et" (inding good suppliers in low costs is also a challenge for the company" Location: where to put the store is very important" Levendary needs to do mar%et research to find the right location to open the store" ccording to the */hibit , the average traffic of the store in ei@ing *mbassy is definitely lower than others" Location is also associated with distributions"  good location can reduce the costs of distributions"
+. Why did Levendary decide to enter China ar2et& 'o( did its /0 foundation match a)ainst China mar2et needs& #compare /0 3s China mar2et in terms of customers and operations$ 1$ Why decide to enter China ar2et: Ripe for investment:
Chinas 2D3 grew 1:"8< over the past decade with a population of 1": billion people" #ts Aurban population rose from >"!< of the total in !000 to :>">< in !00?, and a strong middle class emerged whose per capita income surged from 6) >,!;! to 6) 1,18B" 7hat is to say, Chinese had more potential power to consume products and services"

)oreover, more and more women appeared in the wor%forces and a lifestyle trended to eat out is growing fast" ll these drive the fast improvement of Chinese foodservice industry" Internal reason:
#n !00;, Levendarys domestic growth was slowing" nd its concept Adelighting the customerB didnt translate well into small towns" #t had to implement its overseas e/pansion" Success of other brands:
.ome companies had already succeeded in China, li%e (C, )cDonalds and 3i55a Huts" 7hese brands can give Levendary some e/perience when entering China mar%et" *$ 'o( did its /0 foundation match a)ainst China mar2et needs&
#n the =".", Levendarys foundation was based on the principle that Adelighting customerB" 7hey tried their best to meet the customers needs and serve them in a comfortable and friendly environment" 7hey would add regional taste to their core menu to adapt to local flavor" #n China, Louis Chen changed the core menu, too" #n the forth store at the north entrance to ei@ings (orbidden City, no salad was on the menu" t the !rd location in a orean suburb of .hanghai, sandwiches were replaced by a variety of local dumplings" 7hese changes meet the