Principles of Marketing
April 22, 2015
Case Paper #8: Besitti’s Restaurant
Rosa Besitti is an accomplished and driven woman who is trying to find her way in the very daunting restaurant industry, while facing many hardships that have caused her to question her business altogether. Her deep wanting for future success in the restaurant industry has inevitably brought her to face a difficult decision in her career. She has to choose between keeping her restaurant under her name and leadership, while continuing to try and make it grow so that she can start bringing in profit to her family, or make Besitti’s a fast-food or family restaurant franchise and give up her own brand ...view middle of the document...
However, her weaknesses are that she isn’t getting the amount of business that she should like or need, and she is unable to retain profits to take in order to make a decent living to support herself and her family. Rosa has been unable, definitely not unwilling, to figure out how to effectively market her business so that constant and increased flow of potential customers can walk through her door. Her opportunity is to grow her business even more and create a recognizable and remembered name for herself in the food service industry. Rosa’s threats are the other similarly priced restaurants in the area. And lastly, another major threat to Rosa’s restaurant is potentially the pizzeria that might open up in the same shopping center that her restaurant is located in.
On the other hand, if Rosa decided to franchise her business to a fast-food or family restaurant, she would have the strength of her business already being well-known and successful to get started. The weakness to this would be that she would have to give up her original, preferred restaurant name and work under someone else’s guidelines. This way of business would be giving her no room for personal creativity, due to the severity and importance of a franchises policies. Rosa Besitti’s opportunity in this case is that she will be able to bring in a great deal more money, including a salary of over $150,000 per year. This is significantly more money than she is currently making now by owning Besitti’s. Rosa’s main threats in franchising her business would be that she would have to keep up with and religiously follow all the guidelines of the franchisor, which may be difficult. Secondly, if she doesn’t follow their regulations she can be shut down. In the case, it had mentioned that Rosa would preferably not like to lose her independence with her business and submit to a higher authority when she was the one who started and nursed her business. Also, there are so many different fast-food and family restaurant chains that she will be competing with to get business. In her case, there is no differentiation in having a fast-food franchise company, because there are so many of them in every city around the world.
Currently, Rosa is trying her best to market her restaurant well by putting her extra profits toward effective advertising in the local newspaper, metro newspaper and a radio station. She was eagerly hoping that this would help bring in more customers, which it did at first. Her sales were increasing slowly but surely. These increased sales amounted to about one thousand dollars in the past year. It was said in the book that the radio station she advertised on was aimed at middle-income America, but she never really discussed who her target customers were. This is crucial to the success of her business because if she does not definitively say or take any action to letting the public know that her restaurant is for middle income America, then that could severely influence other...