Case Study #1: Besitti’s Restaurant
To begin with, Rosa already had another restaurant that was, and it is, probably still doing well under the control of her brother, so she has a profound understanding of how restaurants work as well as years of experience. Franchise chains are a good option for people who are completely new in the field, because the franchise company gives them all the training they need, a ready strategy that they only need to follow, and an established clientele of the brand who are familiar with the products and quality of the company.
It looks like Rosa really knows what she is doing and understands the restaurant business in its foundations, because she is going step by step through the three main Marketing Management Processes. First, she made her planning in details and made a really good choice with the location (place), which is one of so called “Four Ps” of Variables in the Marketing Mix. After that, Rosa went to the second marketing management process—the implementation of her strategy, which she did successfully, because even at the beginning when she opened her restaurant, it wasn’t working on loss. The restaurant was always at least covering its costs for maintainance, which for a newly open place is a big achievement.
Rosa shouldn’t be so scared from the franchise chains around her and neither from the pizza that it may come in the same shopping center, because she has a unique competitive advantage in comparison with them. She is offering “home-cooked” Italian style dinners. None of the franchisers nearby have the same or even similar marketing mix. Another advantage that Rosa has is that she grew up in this town, went to school there, and already had a successful restaurant with her brother there. The population of the town knows and trusts her, which only works in her...