Moviante Restaurant Case Study
October 11, 2004
Introduction This proposal is intended to pinpoint the problems and introduce actions or solutions for the active restaurant operator-owner and manager who are involved in the Moviante Restaurant. The analysis is divided into four parts: (1) problem identification, (2) causes of the problems, (3) solutions to the problems, and (4) recommendations. Additionally, there will be a complete discussion on problem solving designed to avoid future, foreseeable undesired outcomes.
Statement of the Problem
Mark Jaslow, the manager of Moviante, described that the business level in the spring and summer of 1998 was booming. However, from November on, business began to
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Marketing – one of the problems stated earlier is target customers are not the people who mainly patronize the restaurant. Moviante did not have clear marketing objectives, a detailed action plan of marketing strategies, as well as an effective marketing research and information system. Each of these factors deprives the restaurant of achieving its target market and business’s goals. According to survey, most Ithaca residents still did not know “Moviante” in spite of the restaurant’s marketing effort. Indeed, the restaurant’s target market was not clearly defined. Each group of the target market should be clarified regarding age, income, education, geographical area, and preference. As a result, the restaurant would not be able to develop an effective marketing strategy if the target customers were not defined clearly and correctly at the first place (Kerin & Peterson, 2001). 3. Advertising and Promotion – all of the restaurant advertisements were eventually cancelled in November 1998 due to the operating loss. Ineffective use of promotional mix such as public relations, personal selling, and sales promotion can be a major cause keeping Moviante away from reaching sales volume. Obviously, Moviante failed to increase customer awareness of the restaurant and entice first-time buyers to try the restaurant. Hence, there would be difficult for the restaurant to create new customers, gaining a higher percentage of repeat customers. Advertising message is another