Assignment 1 Pricing Strategy
Strategic Market Pricing and Smalls’ Premium Steakhouse
By: Andrew Smalls
Professor: Irene Zoppi
MKT 402, Pricing Strategies
February 1, 2015
Strategic Market Pricing and Smalls’ Premium Steakhouse
A Premium Dining Experience
If given the opportunity to open a restaurant, it would be an upscale restaurant catering people who the desire to have excellent food and a premium dining experience. I would name this establishment Smalls’ Premium Steakhouse. My name inspires the name of the restaurant and, of course; we would specialize in all sorts of steak from filet mignon to steak burgers. My focus would be on serving premium foods at premium prices. Our differentiation factor would be the quality of our unique service. We would redesign the layout, so it is conducive to an upscale dining environment. It will have plenty of space between tables for the privacy of our guests and lots of walking room in the aisles and between tables. Our menu would consist of a ‘design-your-own’ section for the diet-conscious guest. This section will challenge the customers to customize their meals based on what they like. For instance, guest could order a meal focused on their diet specifications such as protein and simple carb. They would not pay the price of a full meal, but we would rate the value received for the market differentiation of this practice. In order to prevent lags in service time and loss of value, this section would be limited to foods in the restaurant.
We are adding an eighteen percent gratuity to the bill for convenience of processing.The gratuity ensures our employees are consistent with their customer’s service and does not attempt to preempt services based on a perception customer who may not tip well. In addition, the guest do not have to worry about spending additional money on their meal and the staff can rest at night knowing they will be able to provide better for their families.
Value Statement and Creating Value
A value proposition clearly and
By: Andrew Smalls
Professor: Irene Zoppi
MKT 402, Pricing Strategies
February 1, 2015
Strategic Market Pricing and Smalls’ Premium Steakhouse
A Premium Dining Experience
If given the opportunity to open a restaurant, it would be an upscale restaurant catering people who the desire to have excellent food and a premium dining experience. I would name this establishment Smalls’ Premium Steakhouse. My name inspires the name of the restaurant and, of course; we would specialize in all sorts of steak from filet mignon to steak burgers. My focus would be on serving premium foods at premium prices. Our differentiation factor would be the quality of our unique service. We would redesign the layout, so it is conducive to an upscale dining environment. It will have plenty of space between tables for the privacy of our guests and lots of walking room in the aisles and between tables. Our menu would consist of a ‘design-your-own’ section for the diet-conscious guest. This section will challenge the customers to customize their meals based on what they like. For instance, guest could order a meal focused on their diet specifications such as protein and simple carb. They would not pay the price of a full meal, but we would rate the value received for the market differentiation of this practice. In order to prevent lags in service time and loss of value, this section would be limited to foods in the restaurant.
We are adding an eighteen percent gratuity to the bill for convenience of processing.The gratuity ensures our employees are consistent with their customer’s service and does not attempt to preempt services based on a perception customer who may not tip well. In addition, the guest do not have to worry about spending additional money on their meal and the staff can rest at night knowing they will be able to provide better for their families.
Value Statement and Creating Value
A value proposition clearly and
References: Basu, C. (2014). Examples of a Value Proposition Statement . Retrieved from Small Business: http://smallbusiness.chron.com/examples-value-proposition-statement-13052.html Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2013). Strategic Management: Concepts and Cases, Competitiveness and Globalization. Mason: Cengage Learning. Kooser, A. C. (2014). Restaurant Pricing Strategy. Retrieved from Small Business: http://smallbusiness.chron.com/restaurant-pricing-strategy-5118.html Nagle, T. T., Hogan, J. E., & Zale, J. (2011). The Strategy and Tactics of Pricing (5th ed.). Upper Saddle River: Pearson Education. Smith, G. E., Hogan, J. E., & Nagle, T. T. (n.d.). A Value-based Pricing Perspective on Value Communication. Retrieved from Boston College: https://www2.bc.edu/