La Guinguette

La Guinguette

Case II   La Guinguette

Step 1: Problem Formulation
How to make the Restaurant successful?

Step 2: Critical Facts
He is a experienced chef who can provide superb European cuisine.
The restaurant located in an excellent geographic location which between many of the major hotels and village.
The restaurant is constructed into archetypical Tahitian structure.
The restaurant can offer at moderate price because of the local Tahitian material suppliers.
The restaurant consists with 8 tables and a bar, providing 41 seats.
Marcel is not making his marginal costs/ His saving are depleting. The restaurant is faced the prospect of closing.
Marcel and his family cannot speak English although the majority of the tourists are from U.S.
The cost of running the restaurant is high due to the high cost of transportation and French administer chain.
Market is the tourists/ not locals
The restaurant is unable to compete with the most notably restaurant “Bloody Mary’s”
Marcel paid more attention to lunch instead of more profitable dinner.
He has tried some advertising and promotion, such as fliers and happy hour, but they are ineffective.
He did not do his market research


Step 3: Assumptions
There are demand of French food in Bora Bora’s market
The reason of this restaurant’s developing dilemma is not the food or cuisine itself.
The market is strong enough to sustain all restaurant competition
To be successful, the restaurant will pay more attention on the profitable dinner trade.
He assumed that he will have just a French market.

Step 4: Generate Alternate solutions
Stipulation: Can not serve alcohol

Advertising—What he can do to communicate
Because his restaurant is less expensive, his target market is budget-middle travelers
Advertising through Web
Face book
Travel Website
Visitor info centers
Newspaper
Professional restaurant websites
Magazines (tourists)
Advertise at airport

Pricing
Setting too low prices reflects lower quality....

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