We wish to outscore our competitors on customer satisfaction with all of these key demand drivers.
The second reason to adopt a premium position is because we believe our target market is willing to pay extra for a premium experience. We have established that our target market loves the casual dining concept. Indeed, our market may be hesitant to move beyond this into the fine dining segment. We feel that this creates a gap in the market we can exploit. By offering something akin to fine dining food and drink in an atmosphere that is a younger, more contemporary take on fine dining, we believe we can create and exploit a niche to which our target market is attracted.
This premium market position we feel will enable us to charger higher prices and to differentiate us from the competition. Much of the struggles in the industry have derived from a perception of “sameness” among competitors in the industry (Horovitz, 2008). As a result, we believe that the key to success to be unlike any other company in the segment and yet still be clearly identifiable to the market as casual dining.
The premium market position will also help us to defend against responses from our competition. A low cost strategy could be met immediately, but a premium strategy is more difficult for the competition to respond to.
We expect to test our hypothesis about the premium position through direct market research. We will draw a sample size from our target market and conduct a survey. This will help us gain valuable information about the direction of the menu, price points, decor and other attributes that will help us to bring our concept to life.
Mintel Internatioanl. (2009). Casual dining — U.S.. Mintel International. Retrieved April 24, 2010 from http://www.marketresearch.com/map/prod/2510855.html
Horovitz, B. (2008). Casual dining chains hunger for change. USA Today. Retrieved April 24, 2010 from http://www.usatoday.com/money/industries/food/2008-10-13-casual-dining-restaurants_N.htm
Roach, R. (2008). The baby boom echo quiets down: college demographics shift will test readiness for diversity, institutional savvy. Diverse Issues in Higher Education. Retrieved April 24, 2010 from http://findarticles.com/p/articles/mi_m0WMX/is_6_25/ai_n25490926/.