Art & Pasta CASE STUDY
As Marketing Manager, you have now been in the role for twelve (12) months and a new restaurant has just opened in the Adelaide CBD with another Melbourne restaurant scheduled to open in six months. During this time, your objectives have been implemented and your new team are in place. There has been a flu epidemic in SE Asia and international travel for Australians is on the decline whilst domestic travel gains momentum and hotels around the country are reporting increased occupancies. A new restaurant chain (a competitor) has opened in Sydney (in Bondi) and Melbourne called the Pasta Bowl which has a family theme with an indoor play centre for kids. Their prices are very similar to Art & Pasta and they are running an ‘opening’ promotion where ‘kids eat free’ when accompanied by two paying adults.
The financial results have been released and are as follows (please note, your objectives defined in Part A may or may not have been implemented and therefore an assessment will need to be made despite your recommendations. For example, a strategic objective might have been to increase prices yet results show a decline in average spends. This could mean that a) the increase was not implemented, b) other strategies were implemented such as discounts or c) other factors influenced the result:
Trading results 2016
| Yearly trading days | Capacity | Lunch | Avg Occ. 2016 | Avg spend | Revenue | Dinner | Avge Occ. 2016 | Avg spend | Revenue | |
| Sydney (CBD) | 300 | 120 seats | Yes | 135%* | $15.50 | $753,300 | No | |||
| Sydney (Bondi junction) | 300 | 60 seats | Yes | 80% | $13.50 | $194,400 | Yes | 50% | $19.50 | $175,500 |
| Melbourne (CBD) | 300 | 150 seats** | Yes | 150%* | $16.50 | $1,113,750 | No | |||
| Brisbane (CBD) | 300 | 80 seats | Yes | 120% | $15.50 | $446,400 | No | |||
| Gold Coast (Surfers) | 300 | 65 seats | Yes | 110% | $15.00 | $321,750 | Yes | 80% | $19.50 | $304,200 |
| Adelaide CBD | 60 | 70 Seats | Yes | 45% | $14.00 | $26,460 | Yes | 40% | $17.00 | $28,560 |
* An occupancy of greater than 100% means that the restaurant served more customers than actual number of seats.
** An additional 20 seats were created by removing two walls within the restaurant.
Total income including art sales and other income (souvenirs)
| Art Sales | Other income | Food & Bev | Total | 2015 | % Growth | |
| Sydney (CBD) | $27,500 | $13,122 | $753,300 | $793,922 | $733,750 | 8% |
| Sydney (Bondi junction) | $10,000 | $3,978 | $369,900 | $383,878 | $499,740 | -23% |
| Melbourne (CBD) | $36,575 | $20,250 | $1,113,750 | $1,170,575 | $947,800 | 24% |
| Brisbane (CBD) | $12,760 | $3,168 | $446,400 | $462,328 | $350,000 | 32% |
| Gold Coast (Surfers) | 1,700 | $3,705 | $625,950 | $631,355 | $427,624 | 48% |
| Adelaide CBD | $750 | $178.50 | $55,020 | $55,949 | n/a | n/a |
Question 1 In your above case study, a significant change has occurred in your competitor set. Identify this change and discuss the possible implications it will have on your overall marketing strategy and organisational objectives. Make recommendations as to how your marketing mix (price, product, place & promotion) will be monitored over the coming twelve months and an action plan as to what will happen if the change in your competitor set results in a decrease to customers and revenues.
Question 2. As the Marketing Manager, one of your key responsibilities is to monitor the overall marketing effort. Identify and explain three marketing metrics that could be implemented to monitor the overall marketing efforts. You need to consider the existing case study and identify information sources that you have or will require for these three marketing metrics to be relevant. In your discussion, be sure address ‘when’ and ‘how often’ you should review these metrics.
Question 3. after results for 2016 are in, as Marketing Manager you are to write a report to the owners about the strategic and operational outcomes for the past year.
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