Marketing Management Assignment Answers
Shelly Perera accompanied her husband to Bangalore when her husband secured a contracted job in Bangalore. During the one year they were in Bangalore, Shelly learned the art of preparing Bangalorian, Rajasthan, and Punjabi vegetarian dishes. She had a vision of opening a fast food, take-away outlet in Sri Lanka one day. The place they selected was a few kilometers South of Colombo city limits. The dream Shelly had was a highly differentiated, up market take away food center, differentiated on features and servicing rather than on food taste and quality alone. Shelly believed that she could differentiate Shelly Foods through her strategic capability, customer-oriented features, and training and motivating staff to serve the customers. Her target segment was the rich who value different experiences. Her husband opposed the idea initially on the ground that there were already too many food outlets in the vicinity and her planned investment of five million (with a four million bank loan) faces a very high risk.
The outlet shelly opened had a spacious reception area, lavishly and pleasantly furnished and air conditioned. On entering this area, a stewardess will come straight to the customer, offer a seat and discuss customer’s requirements. She will also describe the menu and introduce new additions or day’s specials. Shelly avoided conventional order taking at a counter(No queues). The stewardess herself will collect money/credits card and deliver the pack. The premises allowed parking for twelve vehicles. The road side could accommodate another twelve vehicles. Customers could order food over the phone or online and collect while in the car. Once the food is prepared, the pack which is very lavish and easy to carry, is delivered to the customer by traditionally dressed young stewardesses.
Food at Shelly foods was all vegetarian, and this was a major reason for disagreement between Shelly and her husband. Her husband was of the opinion that by confining to vegetarian foods, Shelly was confining herself to a smaller market segment.
The outlet is designed to serve 300 customers for lunch and 500 at dinner time. Delivery system was arranged in such a way that a customer is served within ten minutes. While waiting the customer can read a variety of magazines, or watch the TV. Order time and serving times are indicated in the bills and Shelly would be very concerned if a customer is not served within ten minutes.
The kitchen is located in the front area, covered by very large clear and tempered glasses so that customers could see the cleanliness of chefs, utensils, and material. In fact, all such were amazingly clean. Shelly was a real chef and she trained two males and a young female as chefs but under her close supervision. Her training included not only the technical aspects of cooking but also the servicing and commitment components of the job. The training, attitudes of stewardesses, and the service system take the customer to a different world. Many customers experience a courtesy and concern which they have never experienced elsewhere in Sri Lanka. Staff was convinced that Shelly was not a simple business woman but she valued sharing. Salaries and benefits, which were connected to sales and customer satisfaction survey results, were well above what any of the staff members would expect from a similar profession. The excellent working environment and the way Shelly cared for the staff were very well valued by the staff.
Shelly did not advertise the food outlet and for this reason sales were low at the beginning. This was a planned strategy where Shelly did not want to grow too fast. Her outlet was running at a loss for four months. From the sixth month business began to increase and at the end of the first year Shelly was earning an amazing 200,000 rupees a day. Children who accompany customers were given free ice-chocks. Shelly often talks to customers personally.
The issue at hand is further expansion of the business in view of the growing demand for Shelly’s food. Shelly and her husband discussed a few options but could not arrive at a firm conclusion.
Questions to answer
- Do you identify Shelly as an entrepreneur and not as an ordinary business woman? Provide reasons for your identification.
- Customers buy one thing: Solutions to their Describe the problems of the segments and how Shelly solved those problems.
- What is her market segment(s)? How did Shelly designed he marketing mix for the chosen segment?
- Suggest a Vision and Mission Give a strategic promotional plan for Shelly foods for the next two years.