University Market Essay Research Paper There is

University Market Essay, Research Paper

There is a problem because Kathy Kelleher, manager of Bentley?s 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 Bentley?s. 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 Bentley?s 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

Bentley?s 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

Bentley?s 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 Bentley?s 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) Bentley?s 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 entr?es.

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 McDonald?s by giving more

affordable prices. Threats a) Not having enough parking will force people to go

somewhere else. b) Having a formal d?cor 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 wouldn?t have to search for a parking space. I assume this will also

allow them to reopen for lunch. c) I assume that if they don?t 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 can?t 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.