Download NORTH SOUTH UNIVERSITY Case Analysis on `Treats`

NORTH SOUTH UNIVERSITY
Case Analysis on ‘Treats’
Prepared for
Prepared by
MKT202.17
Ms. Zarjina Tarana Khalil (ZTK)
Lecturer, School of Business
North South University
Hasnain Hossain
132 0307 030
Zahid Hasan Dipu 132 0381 030
Imtiaj Selim Nahid 132 1817 630
Ahsan Habib
133 0447 630
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Table of Context
1. Executive Summary……………………………………………..03
2. Current Marketing Situation……………………………….…..03
3. SWOT Analysis…………………...……………………………..05
4. New Objectives & Issues…………..……………………………07
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1. Executive Summary
‘Treats’ sandwich shop started its journey with founder, Maria Porto in their
native neighborhood after they migrated from Cuba 30 years back. Since that was
cheapest food and the taste of the sandwiches became popular. And Maria s sandwiches
were an instant hit, and it flourished into a very successful business. For that Maria’s son
Miguel wanted to open the third branch in the neighboring Burbank Mall in order to
attract the mainstream customers from the local population. Sandwiches are homely style
cooked but it produces 3 at a time. So that traffic is high; the queue gets too long as they
are unable to make many sandwiches at a time. For that it needs some strategic objectives
to get rid of the problem. And with the correct policies, ‘Treats’ in Burbank Mall can also
be a successful business and has the power to transform Miguel’s dream into reality.
2. Current Marketing Situation
A. Company Background:
1. Market Description: ‘Treats’ sandwich shop started its journey with
founder, Maria Porto in their native neighborhood after they migrated from Cuba 30 years
back. Since that was cheapest food and the taste of the sandwiches became popular. And
Marias sandwiches were an instant hit, and it flourished into a very successful business, in
the Cuban dominated neighborhood of San Bernardino. The second branch was opened
by Maria’s sister in Camarillo, a very sparsely populated part of California. Again, Cuban
migrants form a significant part of the customer base and the business is doing well. But
in that time Maria’s son Miguel wanted to open the third branch in the neighboring
Burbank Mall in order to attract the mainstream customers from the local population. But
it is not easy because the market is new and there are another competitor named Mexican
cuisine is already popular.
2. Product Description: ‘Treats’ sandwich shop produces sandwich a small
space at the food court in Burbank Mall with the capacity to produce 3 sandwiches at a
time. As the sandwiches are home-style cooked, people come to eat healthy one. To meet
the interest of the customers treats sandwich shop introduces 5 types of sandwiches at a
reasonable price like- Roast Beef, Roast Chicken, Stuffed Chicken, Cajun Steak and
Pepperoni and Cheese. Considering its handmade and homemade product meat is cooked
as per the customer’s choice, and prepared into a delicious sandwich.
3. Competitive Review: Competitively treats sandwich shop in Burbank Mall
is a very sick shop. Its capacity to produce 3 sandwiches at a time. As traffic is high; the
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queue gets too long as they are unable to make many sandwiches at a time. They only sell
limited beverages with the sandwiches.
B. Current Issue:
They have taken a small space at the food court in Burbank Mall with the capacity to
produce 3 sandwiches at a time. Burbank Mall Food Court is particularly popular amongst
office goers of the neighborhood, who come for a quick bite during lunch. Also, students
from the local colleges also come for coffee and snacks, which is sometimes a problem since
‘Treats’ does not sell coffee. with the trend of healthy eating, people do come to the shop for
the home-style cooked sandwiches, but when traffic is high; the queue gets too long as they
are unable to make many sandwiches at a time. In addition to that, since they only sell limited
beverages with the sandwiches, many customers prefer to go to other counters where they can
grab both lunch and coffee without having to wait for in two counters.
C. Possible Future Directions:
1. The space of the food court need to be developed to get many customer at a time.
2. The capacity of producing sandwiches need to be higher amount to produces many
sandwiches at a time.
3. Coffee need to be sold to get students from local college.
4. Selling of the beverages with the sandwiches need to be developed because people are
not willing to go and wait two counter to grab both lunch and coffee.
5. The number of sandwiches being offered need to be higher because people wants other
types also.
6. Customers don’t want so much meat at lunch and snack time so another flavor
excluding meat need to be added to attract customers.
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3. SWOT Analysis
Strengths
Weaknesses
1. Handmade tasty sandwiches which
are prepared in home cooked style with
Cuban ingredients and recipes.
1. A small space at the food court in
Burbank Mall.
2. The capacity to produce 3
sandwiches at a time.
2. Ingredients from Cuba and bakes
the breads fresh, every morning to
upkeep its taste.
3. Students from the local colleges also
come for coffee and snacks, which is
sometimes a problem since ‘Treats’
does not sell coffee.
3. First one to start making sandwiches
for on a regular basis, since that was
the cheapest food.
4. When traffic is high; the queue gets
too long as they are unable to make
many sandwiches at a time.
4. At the moment they are offering 5
types of sandwiches, Roast Beef, Roast
Chicken, Stuffed Chicken, Cajun Steak
and Pepperoni and Cheese.
5. Limited number of sandwiches being
offered.
5. The meat is cooked as per the
customer’s choice, and prepared into a
delicious sandwich.
6. Reasonable prices of the sandwich.
7. ‘Treats’ positions itself as a
sandwich seller, not a Cuban store.
8. Angela has been in the food and
beverage industry for the past 12 years.
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Opportunities
Threats
1. Burbank Mall Food Court is
particularly popular amongst office
goers of the neighborhood.
1. When traffic is high, they only sell
limited beverages with the sandwiches;
many customers prefer to go to other
counters.
2. The other branches of the store are
doing well.
2. From other counters customer can
grab both lunch and coffee without
having to wait for in two counters.
3. The taste of the sandwiches became
so popular, that Maria’s sandwiches
were an instant hit.
3. Many customers do not want so
much meat in their lunch or snack
time.
4. The second branch was opened by
Maria’s sister in Camarillo, a very
sparsely populated part of California.
4. Treats’ positions itself as a sandwich
seller, not a Cuban store, they get
disappointed at the limited number of
sandwiches being offered.
5. Maria’s son Miguel came up with
the idea of opening the third branch in
the neighboring Burbank Mall in order
to attract mainstream customers from
the local population.
6. The mall attracts mainstream
customers, not just Cubans, many
customers do not want so much meat in
their lunch or snack time.
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4. New Objectives & Issues
A. Positioning Strategy:
A product’s position is the way the position is defined by consumers on important
attributes- the place the product occupies in consumers mind relative to competing products.
‘Products are created in the factory, but brands are created in mind’ says a positioning expert.
So ‘Treats’ sandwich shop can create a powerful brand name in customer mind. ‘Treats’
sandwich shop find it easy to choose a differentiation and positioning. For example, ‘treats’
sandwich shop well known for its quality of that product like healthy eating, people do come
to the shop for the home-style cooked sandwiches, quantity of that product like price of the
sandwich is very reasonable, service of the shop is well decorated. Consumers will be
overloaded with information about the products and service. In that way ‘treats’ sandwich
shop can take a position in customer’s mind. Tagline ‘ Homely Taste, Quality Best’
B. Product Strategy:
Product is a key element in the overall market offering. Anything that can be offered
to a market for attention, acquisition, use or consumption that might satisfy a want or need
that is product. With developing product ‘treats’ sandwich shop can attract customer.
Product quality: Product quality is one of the marketer’s major positioning tools.
Quality has a direct impact on product or service performance; thus it is closely linked to
customer value and satisfaction. With developing quality of the product in acceptable
standard ‘treats’ sandwich shop can gather customer.
Product feature: ‘Treats’ sandwiches can be offered with varying features. The
company can create higher level of models by adding features. Features are competitive tools
for differentiating the shop’s product from competitors.
Product style and design: Another way to add customer is through distinctive
product style and design. Design is a larger concept than style. Style is appearance of a
product. Styles can be eye-catching or yawn producing. A sensational style may grab
attention to the customer.
Packaging: Packaging involves designing and producing the container for a
product. In recent times numerous factors have made packaging important marketing tools as
well. With this product need to be protected. There should be information about the product
and its workability need to be
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C. Pricing Strategy:
Price is the amount of money charged for a product or service. Pricing decisions,
like other marketing mix decisions, must start with customer value. Effective customeroriented pricing involves understanding how much value consumers place on the benefits
they receive from the product and setting a price that captures this value.
Value-based pricing : Good pricing begins with a complete understanding of the
value that a product or service creates for customer. Value-based pricing uses buyers
perceptions of value not the seller’s cost, as the key to pricing. ‘Treats’ sandwich shop can
price value based.
Price-Adjustment Strategies: ‘Treats’ can usually adjust their basic prices to
account for various customer difference and changing situation.
Discount + Promotional Pricing: ‘Treats’ sandwich shop can temporarily
reducing prices to reward customer responses such as paying early or promotional sales.
Segmented Pricing: ‘Treats’ sandwich shop can allow prices for differences in
customers, products, or locations. Suppose it can pricing for student in discount rate, office
worker for another special rate.
Psychological Pricing: It can adjust prices for psychological effect. Suppose price
of sandwich is $3.99 or 20% of (condition apply).
Geographical Pricing: It can adjusting prices to account for the geographic
location of customers.
D. Distribution Strategy:
Distribution channel means a set of interdependent organizations that help make a
product or service available for use or consumption by the consumer or business user. To
making sandwiches available ‘Treats’ can add some value.
Information: Gathering and distributing marketing research and intelligence
information about actors and forces in the marketing environment needed for planning and
aiding exchange.
Promotion: Developing and spreading persuasive communications about an offer.
Negotiation: Reaching an agreement on price and other terms of the offer so that
ownership or possession can be transferred.
Contacts: Finding and communicating with prospective buyers.
Financing: Acquiring and using funds to cover the costs of the channel work.
Matching: Shaping and fitting the offer to the buyers need.
Risk Taking: Assuming the risks of carry out the channel work.
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Physical Distribution: Transporting and storing goods. Then we can distribute
the product 2 ways :
1. Direct marketing channel
2. Indirect marketing channel
Direct marketing channel: A marketing channel that has no intermediary levels.
‘Treats’ can directly sell to consumers.
Indirect marketing channel: Channels containing one or more intermediary
levels. ‘Treats’ can indirectly sell to consumers.
E. Communication Strategy:
A company’s total promotion mix also called its marketing communications mix
consists of specific blend of advertising, public relation, personal selling, sales promotion,
and direct marketing tools. Definitions of major promotion tools follow:
Advertising: Any paid from nonperson presentation and promotion of ideas,
goods, or services by an identified sponsor. It can be both Broadcast and Printing.
Suppose Television, road, newspaper, magazine etc.
Online Market: Communications can be in the online. Many company doing these
now-a-days.
Outdoor: ‘Treats’ sandwich shop can show their product in the billboards, buses,
bus stops etc.
Personal Selling: Personal presentation by the firm’s sales force for the purpose of
the making sales and building customer relationship.
Public relations: Building good relations with the company’s various publics by
obtaining favorable publicity, building up a good image.
Sales promotions: Short-term incentives to encourage the purchase of sale of
sandwiches.
The End
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