Performance Trade- Offs and Customer Value
This blog post is addressed to the Hot Table team that I worked with in campaign planning and management, my classmates that also worked on the campaign, and my professor, Dr. Spotts, who was always excited when we incorporated marketing theory into our campaigns. I also believe this information will be helpful as a real world example for my marketing management classmates.
While reading through the book and completing the week 4 simulations, the performance trade-offs and customer value really stood out to me. I think it directly reminded me of the Hot Table campaign because of the Hamburger example. The attributes in this simulation (4.4) were similar to those that we found most important to Hot Table customers. Especially, taste quality. During the campaign, we looked at eateries in general to get a better idea of who our target market was and how to best reach them. The industry is split into three main categories; sit down restaurants (ex. Outback Steakhouse, Olive Garden), fast casual restaurants (ex. Hot Table, Panera, Chipotle), and Quick Service Restaurants (ex. McDonalds, Taco Bell). There are different benefits that make each type of restaurant appealing to potential customers. For example, sit down restaurants are known for the highest quality food, but take the most significant time, while QSR have low cost and are extremely quick, but lack high food quality. Fast casuals fall somewhere in between with mid-range prices, speedy service, and mid-high quality food (doesn't have the same range of options as sit down).
Our team did a lot of customer research and we were able to determine the following about our target market (fast casual customers):
"They are looking for more natural and healthier food options, which may include organic and GMO free foods and ingredients. They are willing to pay more money for better quality food. The target market customers are within a 1-2 mile radius of Hot Table. These customers are looking for the “make your own” meal." Based on this and other research, there are specific attributes that could be used to compare competing fast casuals. This in turn could have helped us pick out areas that Hot Table could have improved to increase customer value. In addition, it would have allowed us to see which attributes were truly the most important to our target market and create a message strategy based on that information.
I believe the attributes that would be measures, would have been the following:
taste quality
ingredient quality/ healthfulness of ingredients
convenience (time spent to get food, ability to take on go, etc.)
customization/ ability to customize meal
price of food
quality of service
I am unsure if the atmosphere of the fast casual could be taken into consideration as well. We found that some fast casuals benefitted from the "feel" of the actual restaurant. An example is Panera, which used store design (ex. fireplaces) to create a homey feel that encouraged get togethers and comfort. I am not sure how this could be quantified into numbers.
While reading through the book and completing the week 4 simulations, the performance trade-offs and customer value really stood out to me. I think it directly reminded me of the Hot Table campaign because of the Hamburger example. The attributes in this simulation (4.4) were similar to those that we found most important to Hot Table customers. Especially, taste quality. During the campaign, we looked at eateries in general to get a better idea of who our target market was and how to best reach them. The industry is split into three main categories; sit down restaurants (ex. Outback Steakhouse, Olive Garden), fast casual restaurants (ex. Hot Table, Panera, Chipotle), and Quick Service Restaurants (ex. McDonalds, Taco Bell). There are different benefits that make each type of restaurant appealing to potential customers. For example, sit down restaurants are known for the highest quality food, but take the most significant time, while QSR have low cost and are extremely quick, but lack high food quality. Fast casuals fall somewhere in between with mid-range prices, speedy service, and mid-high quality food (doesn't have the same range of options as sit down).
Our team did a lot of customer research and we were able to determine the following about our target market (fast casual customers):
"They are looking for more natural and healthier food options, which may include organic and GMO free foods and ingredients. They are willing to pay more money for better quality food. The target market customers are within a 1-2 mile radius of Hot Table. These customers are looking for the “make your own” meal." Based on this and other research, there are specific attributes that could be used to compare competing fast casuals. This in turn could have helped us pick out areas that Hot Table could have improved to increase customer value. In addition, it would have allowed us to see which attributes were truly the most important to our target market and create a message strategy based on that information.
I believe the attributes that would be measures, would have been the following:
taste quality
ingredient quality/ healthfulness of ingredients
convenience (time spent to get food, ability to take on go, etc.)
customization/ ability to customize meal
price of food
quality of service
I am unsure if the atmosphere of the fast casual could be taken into consideration as well. We found that some fast casuals benefitted from the "feel" of the actual restaurant. An example is Panera, which used store design (ex. fireplaces) to create a homey feel that encouraged get togethers and comfort. I am not sure how this could be quantified into numbers.
Hi Emelia
ReplyDeleteFirst of all, your blog design is great !!! I love how you have given an actual "real world" example of what you and your teammates looked at before starting the Hot Table. In retrospect - you were essentially applying the concepts we are learning in the class - how great is that!!!!
I believe the attributes of what the customers are looking for that you have listed i.e. taste quality, ingredient quality - i.e. more healthier options, customization, price of food and quality of service - were key components to establishing the hot table chain. In addition - the locations picked speaks to screening the demographics of the areas i.e. college campus (chapters 5 and 6) to fit the needs and get the job done of what the faculty and students are looking for.
Great work
thank you
p.s. now i will work on making my blog nicer looking :) thanks for motivating me !
Hi Emelia,
ReplyDeleteI'd like to let you know that I think you did a great job on your first post. You incorporated the specific class material that you made the connection with to your own life experiences. By doing this you helped me better understand your thought process and reason for choosing this topic. Your experience reflects a lot on what we are learning in class and it is cool to see that you conducted this campaign prior to entering this course. Your idea of quantifying atmosphere is a great concept as comfort and "togetherness" are factors that we all look for in certain restaurants, regardless of its food style. Great job.
Thank you,
Jarred
Hi Emelia,
ReplyDeleteI too agree it was great that you included in an experience of your own to this topic. As customers we have seen that businesses can create customer value in several different ways but what is challenging for the business is nailing down exactly which characteristics of customer value are the key drivers. I think atmosphere could be taken into consideration for fast casual customers as well as knowledgeable staff members. I know when I’ve gone into many fast casual restaurants and I’ve asked a question about a particular item on the menu to the cashier I would receive a “I don’t know” response and then they would go find a manager or someone nearby to answer my question on the menu but the other person or manager doesn’t know the answer either. All members of the restaurant need to be knowledgeable in the menu and the establishment of the business. Having a knowledgeable staff is one of the key elements to a great customer experience. Restaurants that are not able to answer majority of the questions asked about the restaurant and menu will most likely leave a poor impression to the customer.
Thanks,
Melissa
Hi Emelia,
ReplyDeleteGreat job with your post and using your real experiences to supplement the class material.
I want to start by saying- I love Hot Table! The categories: taste quality, ingredient quality/ healthfulness of ingredients, convenience (time spent to get food, ability to take on go, etc.), customization/ ability to customize meal, price of food, and quality of service are all reasons that Hot Table attracts a target customer base. The health and convenience (location to WNEU) are definitely two of the main reasons my friends and I choose to go there for lunch during out school days. I love their loyalty program as well- for downloading their app we get a free sandwich and also for every ten purchases, we get a free sandwich as well. Its well worth it for us law students!
Hot Table, because of its customization options, also caters to many dietary restrictions. My sister, who has a very severe nut allergy, is able to eat there because they bring out the ingredients from the back (instead of those already on the line that every employee's gloves touch) to avoid any possibility of contamination. Also, my 2 friends are vegetarian and the establishment also caters to their particular preferences.
Last year was my first year studying outside of NJ/NY and some of the employees at Hot Table are from WNEU Undergrad. The restaurant became a good way to get an introduction to the area (because the employees were so helpful with my questions and concerns) and a great way to get to know people as well.
Hot table is definitely part of a close knit community (law enforcement, judges, fire fighters all frequent the establishment) and they do a great job of attracting and keeping their target customers.
Thanks,
Shriya
Hi Emelia!
ReplyDeleteThe presentation of your blog is fantastic, I love the color and design! I think you did great on your first blog post for this class, although I see you have other blogs that you've done for other classes which I think is cool since you already have some blogging experience. I really enjoyed your real life example from your previous courses and I think you bring a lot of valuable points and ideas to the class.
I think all of the measures you have listed out are correct and it really ties in with everything we've learned this far. When it comes to Hot Table I think a lot about the different types of customer and who they attract. I personally am a heart-loyal customer to hot table, I go there all of the time and eat everything on the menu.
Looking forward to your future posts!
Mo