Roberts Cafe A SWOT analysis by Micah Blair, Emma Braum, Julia Ruddock, Nicole Sayre, and Ed Stafford Strengths The Roberts Cafe is a unique place to get a meal that is both affordable and quality food own recipes signature bread The Roberts Cafe has great service with a friendly staff The decor within the cafe is very different from others western style paint scheme coffee cups that display fun facts about the history of the world Little competition within the city limits
Inside and outside seating Weaknesses The Roberts Cafe has limited seating Tables designed for groups of 2 or 6 The tables were covered with a plastic cover making it feel cheap The Cafs entrance was confusing and not well marked Method of payment Do not accept debit or credit Only local checks The layout of tables felt awkward Small Facebook presence, no website Opportunities 34% of Americans visit casual dining restaurants once a week (Statista)
Lunch most expensive - Americans out for lunch 2x a week, $10 each time, per person (Forbes) Carbon county population 10408 (Census) This includes customers from Red Lodge and Joliet as well as the other surrounding areas. 34% of 10408 = 3538.72 Destination vs. drive-by People who drive by on HWY 212 Approx. 540/day (montana.gov) This also includes tourists. Which was a 3.2 billion dollar industry in Montana (Tourismmattersmt) Threats The Roberts Cafe has competition in more attractive locations such as Red Lodge
This probably will not include restaurants in Billings, even though billings may be an opportunity Roberts the town is not the final destination for most travelers. During the winter months the traffic through the town most likely dwindles limiting the exposure to potential customers. Competition 16 other restaurants within the county Math Market share - Carbon County Customers 34% of the population eats out once a week (Forbes) 34% * 10408 = 3538 people 3538 * (1/16) = 221 people 221 * $10.00 = $2210.00 per week
Segmentation Strategy Segmented using Customer Type Submarket 2 Submarket 1 Tourists Destination Drove out specifically to eat at the Roberts Cafe Highway 212 Commuters
Impulse Did not plan on eating there, saw the sign and stopped Submarket 3 Locals Routine Comes to Roberts Caf often Customer Profile
Demographics based on Survey Results Reason for Visit 30 25 20 15 10 5 0
Roberts Carbon County (excluding Roberts) Still Water county Out of State Routine Destination Yellowstone County Sweet Grass County Impulse
Missoula County Unknown Customer Profile Demographics based on Survey Results How did You hear about the Roberts Cafe? 40 35 30 25 20 15 10
5 0 Category 1 Location Other Word of Mouth/Recommendation unanswered Known for years Customer Profile Demographics based on Survey Results # of surveys completed by age range
80 70 60 50 40 30 20 10 0 1 to 18 18 to 25 25 to 40 40 +
# of surveys completed by Mix of ranges unsure Decision Making Process Submarket 1: Tourists Problem: Wants to eat specifically at the destination of choice Information: Possible word of mouth, recommendations, been there before, or location Alternatives: Other restaurants in the nearby area Criteria (deciding factors): They chose this destination to eat at because of the information they have about the Roberts Caf
Evaluate: Drives specifically to the Roberts Caf to eat Decision Making Process Submarket 2: Highway 212 Commuters Problem: Commuter becomes hungry and wants to stop and eat Information: Roadside restaurant signs, online restaurant reviews and maps, or recommendations from others. Alternatives: Other restaurants along highway 212 Criteria (deciding factors): Wants to stop somewhere reasonably priced Evaluate: Decides to stop at the Roberts caf because it meets all their criteria Decision Making Process Submarket 3: Locals
Problem: Consumers become hungry Information: Consumer already knows the quality and service they receive at the Roberts Caf Alternatives: Other restaurants in Roberts Criteria (deciding factors): Past experience and trust in the restaurant Evaluate: Routinized response behavior is used to make the choice to eat at the Roberts Caf Marketing Mix - 4Ps Product, Promotion, Price, Place Product Means End Chain Attributes Fresh Food One-on-One
Customer Service Warm and Welcoming atmosphere Consequences Family Eating Healthier Value Benevolence Hedonism Social Interactions and friendships created Customers become
regulars and visit on a daily or weekly basis Tradition Product Perceptual Map Locals, Tourists, and Commuters Locals and Tourists Lost Village Saloon Good Food at a Reasonable
Price Commuters Local Flavor Roberts Caf Edgar Bar Melindas Melindas Bar Family Friendly
Edgar Bar Good Food at an Expensive Price Roberts Caf Family Friendly Bar Lost Village Saloon
Carbon County Steakhouse Quick Stop Drive-In Stop and Go Product Brand Positioning Statement The Roberts Caf provides a family friendly atmosphere with fresh local flavors at a reasonable price Restaurant Slogan Roberts Caf, where dining out never felt more like
Online menu or specials Update menu, without taking away the homey charm Post the menu on facebook, or restaurant website Promotion Tourist Persuading Informing AIDA - attention, interest, desire, action Google+ and other social medias > you can host photo contests this way too Foodies Figure out how to fix google Roberts Cafe Add information to yelp, or yellow pages, and other sites Signage
Stickers Price OBJECT: Sales oriented Mature market, privately owned, limited resources Competitive Pricing competitive pricing for larger market share STRATEGY: Roberts cafe will compete based on the value it provides it's customer and experience rather than price. Roberts Cafe will present "Daily Deals" and "Seasonal Specials" aimed to reach every consumer target market. Price Routine Customer Purchase card Daily Deal
Impulse Customer Daily Deal Tourist Customer Daily Deal Seasonal Specials Price Competitors: Must match or beat the competitors price scheduling Analysis: Overall the Restaurant Industry is a mature market with an elastic demand curve. To establish a competitive niche within the market Roberts Cafe must distinguish it's self from the others through an assortment of price promotions and creation of value to the customer. Place Objectives :
Low Cost Strategy : Direct Not interested in developing indirect channels Focused on local, unique experience Examples : Current Location Central to town On main road, advertising for passerbys Unique location for owners artwork and lawn displays High Quality Sources
Census Carbon County http://www.census.gov/quickfacts/table/AGE765210/30009 City data http://www.city-data.com/county/Carbon_County-MT.html#ixzz4MstNHMPA Statista https://www.statista.com/topics/1957/eating-out-behavior-in-the-us/ Forbes magazine http://www.forbes.com/sites/halahtouryalai/2013/09/25/lunchtimeamericans-spend-nearly-1k-annually-eating-out-for-lunch/#291a23d43b19 Montana Driving data http://mdt.mt.gov/publications/datastats/traffic_maps.shtml
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