Breakfast Club Harvard Case Solution & Analysis

Problem identification 

One of the major marketing challenges faced by Breakfast Club is to what specific marketing strategy to use, to sustain a differential advantage while maintaining sales growth and above all profitability. Restaurants, café, desserts and confectioners in Qatar are highly competitive in nature and operate in a dynamic market. Qanat Quartier is the set location (the company has no choice), I am not entirely sure if it is the best location in the Pearl.

The Breakfast Club will be close to a high-end outlet mall plus other restaurants and therefore, this location will help the restaurant to gain customer’s advantage, and increase its sales. However, the Restaurant Eggs pectation Qatar will give fierce competition to Break fast Club TM in Qanat Quartier because the Eggs pectation is also opening the restaurant with the same concept and idea i.e. Breakfast. Therefore, it is highly important for Breakfast Club TM to develop an effective marketing strategy that would help to gain a competitive advantage in the long run.

The timing would be the major disadvantage for the Breakfast Club because they decided to open a restaurant from 5 am-12 pm. However, the majority of the sales come from weekend nights as compared to weekdays. The majority of the people do not prefer to wake up early in the morning and have breakfast, especially youngsters. The Pearl is close to Dafna towers where employees can come during their lunch break to the restaurant. Therefore, Breakfast Club TM should increase their operating timing, to increase the sales and maximize the revenue.

The restaurant should introduce dinner menu with a variety of creative and innovative dishes as well as operating 24 hours, in order to generate more sales and customers’ advantage. There is no delivery service offered by the restaurant yet.

The Breakfast Club TM should develop a market penetration strategy because it is less risky, and it helps to leverage various opportunities to maximize market share. Due to globalization, the changing customers’ needs and perspectives leads restaurants to face multiple issues and challenges such as high quality food with value-added services, effective menu, ambiance, and dining innovation and environment.

Ineffective use of promotional mixes such as personal selling, public relations, and sales promotion can be a major cause that keeps away from reaching sales. Most importantly, in order to attract the new and existing customers of Qanat Quartier, it is essential to use a right promotional strategy that helps to increase competition edge over competitors.

Objectives   

The financial objective of Breakfast Club TM is to gain 5% market share within two years of operating or break even at 6 months of operations. Moreover, the objective include to maximize the net profits and net cash surpluses of the operations.On the other hand, the non-financial objective of Break fast Club TM is to stay as a small restaurant with excellent food and service, to ensure customer satisfaction. Moreover, the non-financial objective of the restaurant is to actively engage with the community and build a strong customer base in the long run.

 Marketing objectives

The marketing objective of Breakfast Club TM is to maintain positive and strong growth each quarter and to achieve a steady increase in market penetration. However, Breakfast Club TM should possess effective information about Doha’s market and should know a great deal about the basic attributes of the most prized customers. This information will be leveraged to understand who is served, what their specific needs are, and how to communicate better with them through effective marketing strategy. Most importantly, it will be used to enhance customer awareness of The Pearl that helps to maximize the sales of the restaurant.

The marketing objectives include customer acquisition through public relations, flyer distribution, strategic partners, word-of-mouth, referral, and social websites such as Twitter, Facebook, and Instagram. Customer retention includes customers’ loyalty programs, appreciation days, coupons, special deals, email acquisition and Birthday invitations. The objective is an operational strategy that includes identifying most profitable products and programs, in order to gain more customers and competitive advantage in the long run.Breakfast Club Case Solution

Product objectives

The Breakfast Club’s objective is to deliver quality and fresh products with value-added services to its customers. The restaurant develops both new product development and variant product strategy because the customers’ taste is changing on a daily basis, and therefore, it is important to initiate a differentiation advantage, in order to gain competitive advantage in the existing market..............................

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