Four Worlds Restaurant Case Study
Marketing strategy is an integral tool used by companies and organizations across the world to recognize and satisfy the requirements of all the customers of the product. The broad target market is broken down into smaller homogeneous groups that the company can effectively market its products. Four world market strategy is more inclined to the global cultural, historical inclinations of its customers. With the inclusion of the dishes of the major cities and the historical events in their menus ("Paris 1968", "Hong Kong 2036", "Cairo 30BC", and "Madras 1538"), they attract a wide customer base. The differentiated foods bring out the diverse cultures as portrayed and they, therefore, appeal to the varied customer base thereby increasing their profit margins(Kleindl 2010). The need of such a restaurant stems from the analysis of the different customers it has and does not target the London locals with an interest in the local foods of London. Their diversity in the menu is a true manifestation of this.
The restaurant offers the patrons profits generated from the sales of the foods as well as the much-needed knowledge of the diverse cuisines existing in our world. Having a cultural segmentation strategy which tends to cater for the needs of most customers, the restaurant faces competition from other restaurants who are culture specific(Rao and Krishna 2011). This means that if the customers find other restaurants that are offering only foods from one cuisine, they will be more inclined to those restaurants. Also, the restaurants that offer better packages in terms of price where the prices are a bit lower and includes both food and drinks may provide significant competition. Their restaurants proposition is high value on the meals they offer and the five to six-course meals that are also added to the extensive list of wine that they offer.
The amount (£35 to £70) charged by Four World's restaurant on the meals that includes all the five to six courses meals is fair. Their non-inclusion of the price of drinks together with the cost of the food is a good strategy as the customers can choose the drinks they will have according to their financial endowment. The customers can choose to have the drinks costing £15 or more according to their specifications. Their online-only booking system also ensures that checks and balances are placed in terms of handling money and ensures they do not risk losing any of the money(Rao and Krishna 2011). However, their total inability to make monetary transactions at the restaurant can hurt their business in times when there are technical hitches and purchases cannot be done online as usual(Rao and Krishna 2011). Their costs also differ during different days, and different times and this enables them to capture a broad market. This assessment of the market in that knowledge of when people are bound to visit the restaurant is very vital(Kleindl 2010). They can estimate the total sales and also adjust in accordance to the needs of the customers in time before they arrive for the meals. The discounted rates attract more customers To a great extent the strategy employed by the restaurant boosts their revenue and consequently their profit margins as they can reduce extra costs due to the knowledge of the needs of the target market.
Like any other business entity, there are a myriad of challenges faced by the restaurant. Competition from other restaurants offering the same foods as they the restaurant does at cheaper rates is a major challenge as they need to remain relevant and retain their customers with all means possible. Also, the misunderstandings in the restaurant might arise due to the language barrier between the attendants and the customers. This is because of their customer base that cuts across many cultures.
References
Kleindl, Brad Alan, 2010. International Marketing. 2nd ed. Australia: Thomson Southwestern.
Rao, V. S. P, and V. Hari Krishna, 2011. Strategic Management. 3rd ed. New Delhi, India: Excel Books.
