Marketing of Services Mark 3004
Individual Coursework Assessment Brief.
Liao Yan Steak Restaurant, New Campus Liaoning University Shenyang China.
At Liaoning University all students live on campus in multi bedded single sex dormitories with no cooking facilities. There are 8,000 full time students with up to 3,000 short term students on a variety of exchange programmes. A vast “student cafeteria” on 2 floors offers a choice of different Chinese cuisines in an open plan space, with fixed tables and chairs. Payment is by rechargeable swipe card, no cash accepted.
In addition to the cafeteria there are a range of smaller, more intimate restaurants on 2 floors of walkways joining the “student cafeteria”. These restaurants typically seat around 30 diners and accept payment by cash or swipe card. Customer choices include a coffee shop; Japanese restaurant; pizza restaurant and Liao Yan Steak Restaurant.
The following is an extract from an analysis of market research conducted on campus by students at the university.
“Variable 1: Influential factor—Environment & Service
We find that not too many students focus on environment and service, which only account for about 10% in total. Generally speaking, steakhouses can provide favourable atmosphere for their guests, and they always have high quality service, which can satisfy that group of students properly. Moreover, Liao-Yan is the only restaurant which offers steaks, pasta and other western food on campus. Thus, for those students who pursue good environment and service, there is no doubt that Liao-Yan is their best choice.
Variable 2: Per capita consumption level every day—¥30-40
From our research, the students who have consumption level of more than ¥40 on meal every day account for about 19%, the percentage is not the greatest one. However, the group of students have higher living standards and can afford upscale food like steaks.
Variable 3: Particular meal occasion—Dating
The students who go to restaurant to have meal for dating take up only 13.04%, but according to the result of focus group interview, we find that most students pursue favourable environment which can create emotional atmosphere when they want to find a restaurant for dating. Thus, it is undoubtedly that the only steakhouse on campus can satisfy these students’ needs and wants.
In conclusion, our target market is a group of students who most value environment and service, spend more than 40 yuan on daily meal and go to campus restaurants for dating.
From our research, we also realize that Liao-Yan has many strong competitors on campus. That means, although Liao-Yan is the only steak-provider among all the restaurants, not all students would go to Liao-Yan when they want to choose a restaurant to have meals. “
More student research is posted on the module website.
Liao Yan is a small business that has been running for 4 years on campus. It is perceived by students to be more expensive than the main “Student cafeteria”, despite having a range of very inexpensive noodle dishes (less than 10rnb for a meal) alongside its western menu. A steak dinner for 2 is around 60rnb including drinks.
It offers a quiet space, where conversation is possible – unlike the “Student Cafeteria” which is very noisy at meal times, and fast, personal service, again unlike the Student Cafeteria where long queues form at meal times.
The restaurant is very nicely decorated inside; however it does not have menus, photographs or tables and chairs outside – just a small sign with the restaurant name. It is quite easy to miss. It has the only projector TV on campus, as well as a small stage and Karaoke system. Wi Fi is not offered to customers.
Liao Yan is busy on Friday and Saturday evenings (traditional date nights), but struggles to fill its tables on other evenings. The restaurant currently opens at 8.00 am and closes at 10pm (on campus there is a requirement for students to be in their dormitory, and lights are switched out at 11pm). It does some trade at lunch time but very little in the morning or afternoon. Another concern for the owner is that trade during the 3 months students are on holiday from university is very limited.
Currently the restaurant does not have any promotions planned. There is no “minimum spend” even on Friday and Saturday nights. They do not offer a delivery service to dormitories, just table service in the restaurant, which is very efficient. Tables can be booked in person, by phone or online. They accept cash and university swipe cards. Staff comprise the owner and his wife plus a full time chef. Students are employed as waiting staff on Friday and Saturday nights. There is no distinctive brand, and no merchandise is available for purchase.
Students and staff need quiet space to work between classes, meet with friends and colleagues or discuss group projects. Student accommodation does not provide relaxing spaces, internet access or snack making facilities. Even hot water for tea has to be brought to the dormitory in a vacuum flask. Despite this, many students like to order food online to be delivered to their dormitory if they are studying there.
Most students access the internet using smart phones or tablet computers. Wei chat and Weibo social media have approaching 100% presence with students. The service is free to users, and businesses can use the system to send targeted offers in a geographical area.
Identify how the Liao Yan restaurant should develop the extended marketing mix for services to overcome their current problems, ensuring that your recommendations fully take into account the context given in this brief and the characteristics of services.
Report format, aerial 12 point type, double spaced. 3000 words (+/- 10%)
Submission Date: Monday 12th January 2015 before 9am GMT.
Submission method: Online to turnitin ONLY – please ensure you obtain and retain a receipt.
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