Big Bottom Up Market
This paper reviews the merits and the disadvantages of the ideas proposed by proprietors and employees of Big Bottom Market restaurant to survive the slow offseason. These suggestions include reducing the number of staff, introducing new products, focusing on core business, and enhancing local marketing initiatives. The second part of the paper explores two additional options that the owners of the restaurant can adopt to boost sales during off-peak season. The last part of the paper outlines how the restaurant can use social media tools to perform business functions.
Advantages and Disadvantages of the Proposed Ideas
The proprietors of Big Bottom Market commenced cutting costs after realizing that the sales had dropped by 80%. Cost reduction is one of the most widely used strategies by firms to counter the adverse effects of declining sales. Downsizing enables businesses to reduce their cost (Baumol, Blinder & Wolff, 2015) and by extension improves their profitability. It also helps firms to improve efficiency by eliminating operations or staff that do not contribute to firm’s profitability (Dwyer & Hopwood, 2013). However, if not done properly, the strategy can lead to the sacking of productive and reliable staff. Moreover, cost reduction measures such as closing business during some days, lowers dependability and customer service delivery.
Some of the employees of the firm proposed diversification of products and services. They recommended the introduction of outside catering and dinner. Diversification helps companies to spread their risks by increasing revenue streams (Sagner, 2010). It also enables firms to explore other profitable areas. Besides, it ensures effective use of firm’s resources (Graham, 2014). For example, same chefs can be used for outside catering services. However, it can lead to slow growth or neglect of core business. In addition, it increases the management cost (Iverson, 2013).
Other employees proposed local marketing and branding. Neighborhood marketing is associated with benefits such as increased local market presence and recognition. Again, a firm can increase sales by concentrating on meeting the needs, preference, and interest of local people (Shelton et al., 2013). However, the strategy limits a firm from attracting global customers because it focuses on local needs.
Another measure proposed by employees was focusing on core business. This approach helps businesses to concentrate their resources on areas that they have competitive advantages (Taylor, 2013). However, it exposes a business more risks should the core business fails. The last proposal was selling through other commercial agents or strategic partnership. It enables businesses to expand their market reach with little investment on distribution channels (Gibbs, R. & Humphries, 2009). Again, it is associated with better marketing. However, a firm pays a commission to the vendor, which increases expenditure. Again, once the products are delivered to the seller, the firm has little control over the products.
The Big Bottom Market should introduce new product and services, increase local marketing and branding activities and continue selling through other commercial agents. All these options would increase the firm’s cost in the short term. However, they would help the business to expand its market by attracting new customers and reaching out to local and other far located customers. They should not trim their staff because they would come handy in the high season. Besides, they should not focus core business alone. Reducing the size of employees does not guarantee more customers.
Additional Options That the Proprietors of the Restaurant Can Consider
The appropriate strategy for Big Bottom Market, in the view of this paper, is to increase the reach for its product and services beyond the traditional market. Online commerce is one way of expanding the market. The owners of Big Bottom Market should establish an online store to open up new market segments (Muneesh & Sareen, 2012). The online store would enable customers from neighboring urban centers to order for products and service, pay for them and let the restaurant deliver. Implementation of this option would require investment in the establishment of a web-based application. The restaurant can use open source e-commerce system to establish an online store. Besides, they can also partner with logistics firms to deliver the products to customers.
The other option is for Big Bottom Market to revamp its marketing activities and strategies. The company should use effective but less costly media channels to market and promotes its products and services. The recommended marketing strategy is location-based marketing. Yun, Han & Lee (2013) defines location based marketing as the use mobile technology to send personalized marketing messages to consumers using their geographical information. This form of marketing uses global positioning system (GPS) to identify the location of a consumer and sends adverts related to products and services offered within the area. For example, Big Bottom Market can use this marketing technique to alert customers about its menu especially during meal times. The marketing technique can also be used to inform customers about the location of the restaurant and opening hours.
Social Media Tools That the Owners of the Restaurant Can Use
The proprietors of Big Bottom Market should use the Facebook and Twitter advertising feature to promote their products and service. Facebook, for example, has advertising feature based on Pay per Click model. The business would be required to open a fan page and place an advert order. Facebook allows businesses to specify their daily budget which allows business to control their advertisement cost. Vieira (2008) argues that Pay per Click is cost-effective and appropriate for small businesses.
Big Bottom Market can also use social media to gather feedback from customers. Many customers turn to social media to express their satisfaction and dissatisfaction with services and products provided by a firm. They also comment on content posted by a company on its social media pages. The restaurant should analyze the comments and use the information gathered to improve its products and service. Twitter has a survey system, Twitter Polls, which the owners of the hotel can use to collect opinions of customers on many issues including quality improvements.
The restaurant should also use social media to provide customer service. The platforms should be used to address customers’ complaints or questions. The complaints should be addressed in such a manner that it does not hurt the image of the restaurant. Consequently, effective communication on this platform is important. Again, the hotel should use social media to conduct consumer education. For example, it can post links to articles that talk about healthy living.
This paper proposes that Big Bottom Market should pursue options that expand the market for their products and services. They include revamping local market activities, introducing new products, selling through other commercial agents, establishing an online store and adopting location-based marketing. The restaurant should also use social media to advertise its products, get feedback, educate and provide customer services.
References
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Dwyer, J., & Hopwood, N. (2013). Management Strategies and Skills. Sydney: McGraw-Hill Education.
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Iverson, D. (2013). Strategic risk management : a practical guide to portfolio risk management. Singapore: Wiley.
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Taylor, D. (2013). Grow the core : how to focus on your core business for brand success. Chichester, West Sussex, United Kingdom: John Wiley & Sons Ltd.
Vieira, K. (2008). Online marketing techniques for real estate agents & brokers : insider secrets you need to know to take your business to the next level. Ocala, Fla: Atlantic Pub. Group.
Yun, H., Han, D., & Lee, C. C. (2013). Understanding the use of location-based service applications: do privacy concerns matter?. Journal of Electronic Commerce Research, 14(3), 215.