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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. 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

DMEF/CADMEF Case Writers Workshop – October 17, 2009

San Diego, California

background restaurant industry
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…
nonna s history
Nonna’s History
  • Family Owned Italian Restaurant
  • Owned & Operated by Anna and Cris
  • Small staff
  • Opened: June 2007
  • New location: 2009
situation new location new opportunities
Situation: New Location…New Opportunities
  • Old location: Not visible, limited capacity
  • New location:
    • Excellent visibility
    • Spacious, patio and private dining room
    • Convenient location
decision problem the case challenge
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?

case organization
Case Organization
  • Case perspective
    • Anna Russo Coggeshall
    • Grew up in family restaurant business
    • Passion for Italian food
    • CNU graduate
    • Understands D/I Marketing
overarching problem
Overarching Problem

How should Nonna’s allocate its marketing budget to:

  • Increase its guest traffic
  • Promote its catering business
  • Launch its specialty product marketing
decision 1 increase guest traffic to nonna s
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
what works best
What works best?

Bounce-back coupons

CRM…

Database-driven marketing!

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

nonna s catering services
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.
decision 3 generate sales for nonna s specialty products
Decision #3: Generate Sales for Nonna’s Specialty Products
  • Based on consumer demand
  • Marketed within the restaurant
case question what might nonna s do to launch its specialty products generate sales
Case Question: What might Nonna’s do to launch its specialty products & generate sales?
case summary this case demonstrates how
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”

teaching suggestions
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
thank you for your attention any questions

Thank you for your attention.Any questions?

Lisa D. Spiller, Ph.D.

Christopher Newport University

Carol Scovotti, D.P.S.

University of Wisconsin - Whitewater