Strategic Management Case Study of Four Worlds Restaurant
WHO? How would you describe the target segment? Which segments does Four Worlds not target? Make assumptions where needed in order to build on the information provided in the text and discuss the type of segmentation that would have revealed the need for such a restaurant as Four Worlds.
Chef Nadero Ravioli and his team of culinary experts have clearly positioned the ambitious and innovative business model of Four Worlds restaurant to target particular segments of the dining market. By devising a prix fixe menu consisting of highly specialized cultural cuisine concepts, the management structure at Four Worlds is hoping to attract high-end consumers accustomed to the luxurious meals Chef Ravioli has created. The purchasing system implemented by Four Worlds also confirms this demographic focus, because an online-only booking system and variable pricing structures depending on time of booking are both provisos which appeal to young, technologically connected professionals with an interest in maintaining exclusivity through their dinner reservations. However, Chef Ravioli and his team are savvy enough to know that middle-class consumers aspiring to enter the realm of fine dining are a particularly lucrative market segment to target, especially as the economy continues to rebound from the recent recession. Therefore, the prix fixe menu at Four Worlds has been priced at a relatively affordable ?35 to ?70, with wine and beverage pairings beginning at ?15, and this range is inviting to diners who desire a taste of the good life on an occasional basis.
2. WHAT? What does Four Worlds offer its patrons? Who is the restaurant in competition with? What is its value proposition vis-a-vis the competitors?
Four Worlds has been positioned to offer middle-income level patrons with an opportunity to experience the world-class culinary creations of Chef Ravioli and his proteges for an affordable price. The restaurant is also cleverly marketed using a combination of innovative methods designed to capture the young urban professional demographic, and this choice to diversify in terms of market segmentation was a prudent move by Four Worlds managerial team. The restaurant is competing primarily with fine dining establishments offering similarly diverse menus, which is why the marketing wrinkles provided by Four Worlds’ thematic menus and pricing structure are so crucial to its future success. The Four Worlds value proposition in relation to its competitors is premised on the notion of economical luxury, which differentiates the restaurant from others charging exorbitant simply as a matter of course.
3. HOW? Analyze how the “marketing mix” (the 4Ps of price, product, promotion, place that are introduced in the case study) impact the activities of the restaurant, such as the processes, operations and profit model (revenue model and cost structure)?
The so-called marketing mix embraced by the management of Four Worlds is comprised of a specialized Product (prix fixe fine dining menus-based designed on cultural themes), which is Priced at a level intended to capture…