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Smith & Wollensky case study exercise

Market Research

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Smith & Wollensky case study exercise

  1. 1. Ursule Biongolo, Carlos Labarga & Kundai Nangati
  2. 2. Agenda • Summary • Market research approach • Conduction of study • Interpretation of results
  3. 3. Case Study 5 synopsis • Summary • Restaurant business • Risk and reward
  4. 4. Market research approach • Problem • Objective • Research approach
  5. 5. Appropriateness of study • Exploratory research • Qualitative research • Phenomenological research
  6. 6. • Casual, elegant American restaurant that serves barbecue and steakhouse cuisine • The average price ranges between $50 and $80 • One of the most celebrated steakhouses in the world, specializing in fresh seafood and steak in an authentic American-style ambience • It has an average of 4 out of 5 stars in food, 4 stars in service, 3.5 stars in value and 4 stars in atmosphere Smith & Wollensky
  7. 7. •Average price of $50 to $80. •American steakhouse, seafood and barbecue cuisine. •Morton´s serves prime-age beef, succulent seafood, good wines and cocktails among other items. •The averages are 4 stars for food, 4.5 stars for service, 3.5 stars for value and 4 stars for atmosphere •Morton´s steakhouse has better scores in Morton´s Steakhouse
  8. 8. •Average price of $50 (less expensive) •Is a legendary Steakhouse that serves the finest, US prime-steaks, fresh seafood and classic desserts with Caribbean elegance and charm. It is also considered to be a casual, elegant, American cuisine steakhouse •Ruth’s rated, 4.5 stars in food, 4.5 stars in service, 4 stars in value and 4.5 stars in atmosphere. •Ruth’s is the same as Morton´s but atmosphere Ruth´s Chris Steakhouse
  9. 9. •This restaurant has the same style of food, American steakhouse, but with a price that is around $30 (half of Smith and Wollensky) costs. •It is included in casual dining instead of casual elegant cuisine, and has different competitors than the original restaurant. •It offers platters that can be shared, steaks, and burgers in a casual atmosphere. •Average ratings of 4.5 stars in food, 4.5 Wollensky's Grill
  10. 10. •Average price: $15 to $50. •American steakhouse cuisine, •The rating of their food is 5 stars, the service is 4.5 stars, the value is 4.5 stars and the atmosphere is 4.5 stars •It has better rates than Wollensky´s Grill by 0.5 stars more in atmosphere and food and the same for all the rest K Rico South American Steakhouse
  11. 11. •Average price between $30 and $40 •The style is casual dining and has an American cuisine similar to Wollensky´s •The ratings are 4.5 stars in food, 4.5 stars in service, 4 stars in value and 4.5 stars in atmosphere. •It has the same ratings as Wollensky´s Grill The Little Own
  12. 12. • Rating are more similar, 3 of them have 4.5/5 in food, 4.5/5 in service, 4/5 in value and 4.5/5 in atmosphere Compariso n
  13. 13. Perks of phenomenological research • It is a qualitative research approach with qualitative input. • This type of research leads to more work to analyze raw data but gives more valuable information. • A qualitative research can be as reliable than a quantitative one when the answers are coded. • Survey coding is the process of linking open-end questions together and categorize them into themes.
  14. 14. Raw data from the ITW • ‘‘Wine doesn’t have to expensive to be good’’... ‘‘But I don’t mind paying for something that is unique’’. • ‘‘We pay too much for stuff, I want things to be genuine’’. • ‘‘I love old neighborhood Italian restaurants. They’re aren’t always expensive. But they have character’’. • ‘‘You know you can buy cheap things and get cheated too’’ ‘‘Bought a bottle of Louisiana from Tenesse! What a scam’’.
  15. 15. Raw data from the ITW cntd • ‘‘When I buy something nice, I want it to be real’’... ‘‘Champagne should be from Champagne not California. A good glass of Champagne is worth what you pay’’. • ‘‘Look at this hotel... when you look at the price you think this is crazy. But, look at the attentuon of the details. You have to be willing to pay more for people that care so much about what they do’’. • ‘‘It’s okay for something to be cheap... even fake. As long as I know it’s cheap’’, ‘‘when you spend $100 for a bottle you want the real stuff. But if you spend $10 for a bottle at a restaurant who cares?’’
  16. 16. • Places should only be expensive if there is a reason to it. It is alright to pay a premium if it is qualitative. • Each product/service should be authentic, the price is not relevant to that. • Nevertheless, a place or wine does not have to be expensive to be good. Cheap is welcome as long as there a quality/price correlation. Possible themes coded from the ITW
  17. 17. Conclusions of the answers’ analysis • The sample does not necessarly wants any changes. • They like simple service & quality which means the less pricey Grill would be a good idea. • If David Ortega wants raise prices he has to offer an upstanding service. • The most important is that the service offered is authentic. It has to be true to what David Ortega is selling.
  18. 18. •There are many answers but most of them with the same message •People who pay high prices want a quality product •High price -> good quality, genuine or unique to the product •People do not like to get cheated •if they pay a premium price, they expect a premium product, •Most of them also agree that it worth to pay Result of the research
  19. 19. •Customers of high-end restaurants are interested in quality product that make them feel special or unique •Even they want to reduce costs to charge less, they still have to offer good quality •If they charge high prices for premium products people will pay happily for their meals if they get an accordingly quality service. •Keep a nice atmosphere •people are willing to spend extra money to eat in a restaurant where they can have a good time with What should David report back? Credit to TripAdvisor