Daffy786
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Hi, wanted some ideas on what to write about this set question:
Which is the most appropriate method to increase revenue for the business youhave chosen?
You could:
• choose a small business
• investigate what is meant by revenue
• conduct primary research to identify at least 2-3 different methods the business usesto increase revenue and how effective these methods are
• present useful information/data to support the points you are making• analyse the different methods the business uses
• using your analysis, arrive at a supported judgement that states the most appropriatemethod the business uses to increase revenue.
I was going to talk about the Marketing Mix, so how my business- a restaurant- makes revenue from the areas of Price, Product, Promotion, Place. I also was going to add how they have the competitive advantage over other businesses in the surrounding area within each factor. I was also thinking of talking about customer satisfaction- to ensure repeat purchases, and also the idea of diversification. However, could I please have any more ideas?
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Jon Hutchison
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Marketing mix is a great place to start, but think about it carefully...

What I mean is:

Price - what will be the effect of raising/lowering prices? If the food is good enough, raising prices may increase revenue with little or no loss of customers. Alternatively, if the restaurant has spare capacity, lowering the prices may fill the restaurant.

Promotion - restaurants normally just advertise in papers and radio, is it time to up the game and engage in some online activity?

Product - does the food provided, truly cater to it's audience? Establishing target market and segmentation may prompt the decision to change the menu to achieve a better market fit.

Place - Is the restaurant nice enough? Nobody will pay top dollar for a meal in a shabby restaurant even if the food is amazing. Maybe its time for a makeover?
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Daffy786
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(Original post by Jon Hutchison)
Marketing mix is a great place to start, but think about it carefully...

What I mean is:

Price - what will be the effect of raising/lowering prices? If the food is good enough, raising prices may increase revenue with little or no loss of customers. Alternatively, if the restaurant has spare capacity, lowering the prices may fill the restaurant.

Promotion - restaurants normally just advertise in papers and radio, is it time to up the game and engage in some online activity?

Product - does the food provided, truly cater to it's audience? Establishing target market and segmentation may prompt the decision to change the menu to achieve a better market fit.

Place - Is the restaurant nice enough? Nobody will pay top dollar for a meal in a shabby restaurant even if the food is amazing. Maybe its time for a makeover?
Jon thank you for some ideas, these points were what I was going to talk about! But will the MM, customer satisfaction and diversification be enough do you think
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Jon Hutchison
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(Original post by Daffy786)
Jon thank you for some ideas, these points were what I was going to talk about! But will the MM, customer satisfaction and diversification be enough do you think
How many words do you need? I think you could give a pretty comprehensive answer using the MM, and then just embed a bit of extra theory under each heading. For example, on promotion you can put in some consumer behaviour theory etc.
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Daffy786
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(Original post by Jon Hutchison)
How many words do you need? I think you could give a pretty comprehensive answer using the MM, and then just embed a bit of extra theory under each heading. For example, on promotion you can put in some consumer behaviour theory etc.
The word limit is roughly 3000 words, so do you believe that with the MM and customer satisfaction an diversification, I would have plenty to talk about?
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Jon Hutchison
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I think so. I would definitely use the MM as the overall structure, and then stuff each section with as much theory as possible. make sure you use examples and critical analysis and include your own opinion. You're going to get pretty close to the 3k.
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Daffy786
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(Original post by Jon Hutchison)
I think so. I would definitely use the MM as the overall structure, and then stuff each section with as much theory as possible. make sure you use examples and critical analysis and include your own opinion. You're going to get pretty close to the 3k.
Hi What sort of theory could I have? My structure was to go with what the business does (its a restaurant) then evaluate it, then suggest my own idea (and the Evaluate it)

I was thinking of going on the basis of:

Price:
[What the restaurant does to increase revenue]: Cheaper Price of Similar products of competitors+ Raising prices slightly of popular dishes.
[My suggestion]: Lowering Price - use of supply demand graph supported with a graph to show inflation (lower businesses costs can be transferred over)

Product:
[What the restaurant does to increase revenue]: Idea of Up-selling and Cross-selling, USP of it being an authentic Asian restaurant (none in surrounding area)+ The ability to book the restaurant for a conference hall (which is fully catered- another USP/Competitive advantage).
[My suggestion]: What Can I suggest??

Place:
[What the restaurant does to increase revenue]: Dedicated takeaway service (separate component of the website itself as well as being on Justeat) that delivers to door. Literally talking about the area and accessibility (being in the town center and thus many potential customers)
[My suggestion]: Revamp restaurant design (rejuvenate the place)

Promotion:
[What the restaurant does to increase revenue]: 3 course Lunch/dinner promotion on certain days, FB page, 15% discount on all collection orders (then link this back to the idea that they can cross-sell products to increase revenue when the customer collects order.
[My suggestion]: Promote the Business more actively through leaflet dropping and having a greater social media outreach.

I would be really grateful if you could provide me with alot of theory help on Product, promotion and place, as I believe I have quite alot with Price. Thanks for all the help!
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Jon Hutchison
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Product Theory - Segmentation, VALS Framework, Adaptation, Standardisation, Destructive/non-destructive innovation, *reference Drucker*

Promotion - I wouldn't go too heavy on theory - instead use lots of internet marketing data and models, this will show you're bang up to date and your research is current and relevant

Place - go for servqual model, gaps model and RATER model, dig into consequences of service failure and how the restaurant has to be perfect.

Then maybe I'd bring it all together with a customer retention and acquisition diagram and

Then conclude with a recommendation from each section

Hey - can you do my survey? It would be a big help?
https://www.surveymonkey.co.uk/r/UKConsumerSurvey

Cheers

Jon
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