Lisa D. Spiller, Ph.D. Christopher Newport University Carol Scovotti, D.P.S. University of Wisconsin – Whitewater - PowerPoint PPT Presentation

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Lisa D. Spiller, Ph.D. Christopher Newport University Carol Scovotti, D.P.S. University of Wisconsin – Whitewater DMEF/CADMEF Case Writers Workshop – October 17, 2009 San Diego, California. Background: Restaurant Industry. Economic Crisis by the numbers U.S. sales: $181 billion in 2008

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Lisa D. Spiller, Ph.D. Christopher Newport University Carol Scovotti, D.P.S. University of Wisconsin – Whitewater

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Lisa D. Spiller, Ph.D.

Christopher Newport University

Carol Scovotti, D.P.S.

University of Wisconsin – Whitewater

DMEF/CADMEF Case Writers Workshop – October 17, 2009

San Diego, California


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Background: Restaurant Industry

  • Economic Crisis by the numbers

    • U.S. sales: $181 billion in 2008

    • Projected decline in 2009 by 2.5 percent

    • 52% of Americans dining out less often

    • 66% no longer enjoying fine dining

    • Few families (with children) dining out

    • Smaller average check amounts

    • Numerous competitors…offering discounts

    • Harsh times for restaurants…


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Nonna’s History

  • Family Owned Italian Restaurant

  • Owned & Operated by Anna and Cris

  • Small staff

  • Opened: June 2007

  • New location: 2009


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Situation: New Location…New Opportunities

  • Old location: Not visible, limited capacity

  • New location:

    • Excellent visibility

    • Spacious, patio and private dining room

    • Convenient location


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Decision Problem: The Case Challenge

With a new location…

an expanded menu…

a new private dining room…

a new outside patio…

new specialty products…

many loyal customers…

Where should it begin?


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Case Organization

  • Case perspective

    • Anna Russo Coggeshall

    • Grew up in family restaurant business

    • Passion for Italian food

    • CNU graduate

    • Understands D/I Marketing


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Overarching Problem

How should Nonna’s allocate its marketing budget to:

  • Increase its guest traffic

  • Promote its catering business

  • Launch its specialty product marketing


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Decision #1 – Increase Guest Traffic to Nonna’s

  • Spent more than $30,000 on direct response promotions

    • Cooperative mailings

    • Discount mailers

    • Special invitation dinner events

    • Yellow pages advertising

    • In-house bounce back coupons


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Nonna’s Discount Postcard Mailer - Front


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Nonna’s Discount Postcard Mailer - Back


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Direct Mail Special Event Postcard - Front


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Direct Mail Special Event Postcard - Back


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Nonna’s Promotional Offers - Metrics


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What works best?

Bounce-back coupons

CRM…

Database-driven marketing!

Case Question: How might Nonna’s use its customer database to increase guest traffic?


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Decision #2: Increase Nonna’s Catering Business


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Nonna’s Catering Services

  • Dine-In Parties

    • Restaurant - 250 seat capacity

    • Private banquet room – 35 seat capacity

    • Private patio – 60 seat capacity

  • Casual Catering

    • Off-site catering services

    • Business meetings, lunches, parties, etc.

  • Formal Catering

    • Off-site catering services for up to 500 people

    • Weddings, showers, formal events, etc.


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Case Question: What lists might Nonna’s rent to increase its catering business?


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Decision #3: Generate Sales for Nonna’s Specialty Products

  • Based on consumer demand

  • Marketed within the restaurant


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Nonna’s Specialty Product Costs and Prices


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Case Question: What might Nonna’s do to launch its specialty products & generate sales?


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Case Summary This case demonstrates how…

  • D/I marketing methods are used by a family-owned restaurant business

  • The multitude of objectives D/I marketing can address

  • The need for:

    “Shark marketing

    On a

    Minnow’s budget”


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Teaching Suggestions

Suitable for lectures & team projects associated with:

  • Market planning & coordinating

  • Entrepreneurship & small business

  • Relationship building/loyalty, offer strategy, creative strategy, or lists/database portion of direct marketing courses

  • Segmentation or promotional strategy portion of upper-level marketing courses

  • Integrated marketing communications

  • Brand building & sales promotions

  • Quantitative analysis & direct marketing math


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Thank you for your attention.Any questions?

Lisa D. Spiller, Ph.D.

Christopher Newport University

Carol Scovotti, D.P.S.

University of Wisconsin - Whitewater


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