Introduction
“FOOD CT” is a new fast food restaurant that has been opened to fill out the fresh, fast food needs of customers. Like other restaurants, the priority of the restaurant is customer satisfaction. Customer satisfaction is an important factor amongst the fast food chains as their pleasure and needs fulfillment are the factors that drive the profitability of food chain through repeat purchase (Mauboussin). However, it is not a hidden fact that the competition is very tough in the fast food industry that will pose a significant threat to the future growth the bistro. As a result, the FOOD CT for its long-term sustainability will have to come up with some new offerings. Therefore, it is decided that to overcome the competition the restaurant will offer new product after having substantial research. Following the research, the FOOD CT will be in better position to decide on that what product and at what price should be offered to the existing market. The research will help the restaurant in identifying that at what extent the customers are willing to have the new product in the menu and what price they are willing to pay for purchasing the product.
Placing the problem in the context of company operation
Target audience is an important aspect of any business that allows the organization to satisfy the needs in better ways. The restaurant will target the customers from the age of 12 to 60, as it will offer a good range of items. The product mix plays a crucial role in driving the sales of the restaurants. Therefore, at the beginning without taking any risk, the FOOD CT will offer traditional items such as sandwiches, burgers, ice cream, french fries, coffee, shakes, pasta, and diverse range of noodles. However, almost all restaurants are offering the same product such as McDonald, KFC, Burger King, Subway, and Dairy Queen (Forbes). Due to this reason, the competition for the bistro is very stiff. Therefore, the FOOD CT for differentiating itself from its competitors will introduce a new product. The decision of new product, its price, and quantity will be based on survey results. It essential to mention that the aim of companies’ operations is to assure the high quality and consistency of good service. Therefore, companies design their operations in particular manners (Nielson 10). The new product offerings will enhance the operational needs of more employees, inventory, efficient technology for speedy and accurate order taking and lower level staff will be required for maintaining the excellent service level (Nielson 18).
Data collection techniques
Specific information that will be required for making a new product related decision includes customers preferences for a new product (for making extension in salty items or having new items in dessert, or any deals as a new product) and prices they are willing to pay. The new product plays a diverse role in restaurants; it helps in enhancing customer based, maintaining growth, keeping competitive, and improving profitability. Product development has a direct effect on the competitiveness of the organization. Studies have provided evidence for the failure of the introduction of several new food products that were far short of the hopes, vision, and expectations of the organizations (Brody and Lord 55). Therefore, for minimizing the disappointments, it is indispensable that the process of introducing a new product is a disciplined exercise. For identifying the opportunity for the new product, and clearly identifying the needs and desires of the customers, both qualitative, and quantitative data will be required. Marketing research is an important tool for collecting the data and should be deployed by researched for having up to date information that can reduce the chances of decision failure. Therefore, it has been decided that for gathering data, survey questionnaire will be prepared. The questionnaire will be based on both open-ended and close-ended questions, as this will offer the wider range of information that would help in making an effective decision. The questionnaire will be distributed to the customers of different restaurants for having meaningful answers and avoid irrelevant data.
Data assessment techniques
Data interpretation or analysis is an important aspect of the worth of the whole study is dependent upon the conclusion. Therefore, it is pivotal that at the time of making conclusion appropriate tools and techniques are utilized. It has been defined that both sorts of qualitative and quantitative data will be gathered. For analyzing qualitative data, the descriptive technique will be used as it will summarize the outcomes and enable to interpret the results in meaningful manners. However, for the assessment of quantitative data, logistic regression technique will be deployed.
The regression equation that will be used in the research is presented as follow:
Y= a+ b1x1+ b2x2+ e
Y= is dependent variable, which is customer satisfaction
a= is a coefficient that is on constant term
b = is a coefficient of the independent variable
x1 = represents the new product
x2 = represents the price
e= represents error term
Coefficients of independent variables are important and help researchers in answering the research questions or problems. The coefficient of independent variable explains that how much change in an independent variable will affect the dependent variable (App State). For example, the coefficient of x1 equal to 2 will represent that the change in new product will affect the customer satisfaction twice. The negative coefficient of an independent variable represents the negative relation of independent variable with dependent. This means if the X2, the price is equal to – 2; then the customer satisfaction will decrease twice. The product is a success when it is able to satisfy customers and considered a failure when does not make any impact on customer satisfaction or make a negative impact. The coefficient will help the restaurant in determining that either the product will be a success, or it will be a failure in driving customer satisfaction and therefore, profitability.
Conclusion
FOOD CT is a new restaurant, and it is visible that due to high competition, the restaurant will have to face a decline in sales. Therefore, for remaining competitive, the restaurant will have to introduce a new product. It is evident that new products fail rapidly; therefore, the research will be conducted to determine that how much impact the new product will make on customer satisfaction. In other words, if any opportunity exists for new product and if yes then how much people will agree to pay for it. The objective of the research project is to determine the factors that can have a considerable impact on the satisfaction level of customers. In this research project, it has been decided that two variables are taken as independent such as new product introduction and price (that will show the willingness of customers to pay for the product). The research through elaborating the effects of new product and price on customer satisfaction will help the company in deciding that either the new product should be launched or any other strategy ought to be considered to drive the growth.
Works Cited
App State. An Introduction to Logistic Regression: Nuts and Bolts. Online. 15 Feb. 2016 http://www.appstate.edu/~whiteheadjc/service/logit/intro.htm
Brody, Aaron L., and John B. Lord. Developing New Food Products for a Changing Marketplace.USA: CRC Press, 1999.
Forbes. Top 10 Global Fast-Food Chains. 2016. Online. 15 Feb. 2016 http://www.forbes.com/pictures/eede45ilmk/15-best-income-and-growt/
Mauboussin, Michael, J. The True Measures of Success. Harvard Business Review. Oct. 2012. Online. 15 Feb. 2016 https://hbr.org/2012/10/the-true-measures-of-success
Nielson, Samantha. McDonald’s global business model, the “three-legged stool”. Dec 2013. Online. 15 Feb. 2016 http://marketrealist.com/2013/12/mcdonalds-global-business-model-three-legged-stool/
