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| Restaurant & Food Service Service Case Study |
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| "Our category is filled with competition, and we're looking for a way to differentiate ourselves that won't diminish our current operations, yet will allow us to stand apart from the competition. We're hoping this differentiation will make us stand out, give us 'new news,' and allow us to use it as a hook for advertising. Oh yes, one more thing. We don't have a lot of money." |
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| Situation |
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An MR&C restaurant client was faced with stiff competition that had significantly more marketing muscle. Being a "me-too" player in a category where you have less marketing dollars to spend is a hard way to build market share and loyalty. So the client decided to branch out into new products, provocative products that the competition did not have the nimbleness to introduce. |
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| Action |
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MR&C conducted a series of at-store taste tests in addition to informal one-on-one interviews with customers. Though this method is typically fraught with pitfalls, it allowed for various customer group types to participate and shed light on new products that might be offered - and more importantly, which products would either build loyalty among the current audience or build trial among the light and infrequent audience.
A series of new products was tested at varying price points. |
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| Result |
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The Client learned that his originally anticipated price points were actually too low for the kind of product they were offering the consumer, and they were able to introduce the new products at significantly higher margin levels than originally anticipated.
Sales enjoyed a positive incremental of 8% within 90 days.
Several new products were launched with provocative advertising. All are still in the menu line. |
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