Case Questions Solution of Raju Omelet for students help..

1. {
Case Solution
Raju Omlet
Presented by: Sana Baloch

2.  Q.1. Critically analyze what the customers’ service expectations are
from restaurants such as Raju Omlet? How did these expectations
develop?
At the moment, customers have a broad choice of eatery services to choose from and
service quality conditions certainly persuade a restaurant competitive advantage.
Service quality is a significant aspect for restaurants. Raju Omlet targeted the college
students, males who live away from their families and women who come along with
their families to discover the variety of foods available here, thereby creating
awareness of this place to others and this helps in knowing more of the local cultural
foods. The prices of their foods were quite reasonable when comparing to their
competitors. Raju Omlet faced competition on the basis of serving and not product
offering. The sense of serving of Bombay Chowpatty, Chappan Bhog, Bikanervala,
Kulcha King and Mumbai Restaurant were all similar to Raju Omlet, except that all
these eateries had outdoor catering, dine-in, take-away and home delivery options.
However, the prices at these restaurants for an average meal for two were quite
expensive when comparing to Raju Omlet.
Mostly customers of all classes, the high-class, middle class or lower income people
were able to enjoy the high quality of food provided here. The Customers usually
expect a good service from any restaurant they go to. Similarly, if the staff of Raju
Omlet creates a good rapport with their customers, people will want to come more
often to Raju Omlet. Three components that contribute to overall customer
satisfaction with any restaurant are good food, good service and a pleasant setting.
All of these factors have influenced the customers and because of the Restaurant’s
innovative ideas and its uniqueness, Raju Omlet has become popular in a short span
of time.

3.  Q.2. Formulate the Unique Selling Points of Raju Omlet. What brand image
did Raju Omlet develop during its start-up period and how was this image
established?
Raju Omlet’s Unique Selling Proposition or Unique Selling Point (USP) was its specialization in egg
preparations. The menu was exclusively made up of eggs in diverse forms – scrambled, boiled, shredded
and half-boiled. The founders of Raju Omlet made it a point to retain the ambience of humble roadside
eatery through furniture and utensils such as petro-max lamps and kitschy kettles and cups, so that this
restaurant matched the magnificent beauty of a city like Dubai. Many egg-inspired quotes and brightly
colored walls added to the exceptional style of Raju Omlet.
During the start-up period, like any other business ventures, Raju Omlet too faced many problems. Many
internal and external factors affect the business. Raju Omlet Restaurant faced the problems in the starting
mainly due to the political factors alone. Mr. Rajiv wanted a gas cylinder connection as the prices are fixed
and will be much easier and feasible to handle. However, the Dubai Municipality insisted that he should
opt for a pipeline connection itself. It also includes inflation. Raju Omlet has been very economical in terms
of the prices of each dish. The main target audience was Indians and Pakistanis as they have similar eating
habits. This proved to be a advantage for Raju Omlet, as they are many Indian expatriates in residing in
Dubai. Raju Omlet provides their customers with local indigenous touch by serving them with variety of
both local and Indian flavors. They also create a very comfortable ambience by having a countryside
settingat the prime location of Al-Karama. In case of technological aspects, research and development areas
are explored thoroughly. The best way to know what consumers think about the organization is to create an
online page and put in a suggestion column. Raju Omlet was able to create an excellent brand image from
the very beginning itself due to the positive word-of-mouth publicity. Mr. Rajiv like most of the
entrepreneurs believed in few religious beliefs, one being; inaugurating the cash box on an auspicious day.
As the new restaurant came into being, customers started to flock in and since Rajiv did not want to
disappoint his customers, he ensured that every customer that came ate to his or her heart’s content. The
customers found this concept interesting, as for now they could eat as much they want without paying
anything. Many customers came in just to see if this was actually being carried out. All the customers were
pleasantly when they were served free food. For ten days, this practiced had continued and hence, Raju
Omlet was able to establish its name.

4.  Q.3. What would it take at this restaurant to ensure that customers are highly
satisfied? How valuable is highly satisfied customers in the restaurant
business and why?
Ans .Customers views and suggestions are very valuable not only to restaurant business but also to
all other business ventures. As far as Raju Omlet is concerned, customers are their first priority. Mr.
Rajiv, founder of Raju Omlet has quoted, “We offer fresh eggs cooked with high quality cooking
ingredients and provide value for money”. And true to his words, he is totally against providing
low-quality products to their customers. He constantly began searching for high-quality products
for his customers. He started sourcing fresh eggs and signed an agreement with the local poultry
farm, Al-Jazeera Poultry, even though he had to face more expenses almost up to 30% more than
other suppliers. By doing so, he has been able to provide high-quality products at reasonable rates.
An average price for a meal for two at Raju Omlet is Dh 45 Raju Omlet has been successful in
preserving the interests of their customers.
In order to ensure whether Raju Omlet’s customers are satisfied with their services, they have to
undertake certain public relations and advertising campaigns, so that they can understand what the
customers feel about Raju Omlet and also what more they have to do in order to remain the
customers first choice in the list of restaurants. A PR campaign strategy normally includes
statement of objectives, situation analysis, specification of target audiences, messages to be
communicated, specific program elements to be used, timetable and budget and finally details of
the program evaluation. Raju Omlet, provided advertisements at two different radio channels have
played an important role in creating awareness about their special offerings. Raju Omlet, by the
medium of radio told the customers various health benefits of eating eggs. For this campaign to be
successful, Rajiv and Nakul (father & son duo of Raju Omlet), chose the correct radio channels and
prime times for their advertisements. Hence, a very positive response was got from the public. They
reached in large numbers for the high-quality food, good services and cosy atmosphere.

5.  Q.4. Critically analyze what points should Raju consider before introducing
the home delivery service? Do you think they should go ahead and introduce
it, why or why not?
Ans .Raju Omlet currently follows“No home delivery option” as the founders, Rajiv and Nakul are against the
idea of letting the customers consume it’s offering by paying the same price for a diminished quality. While
packing away the food stuffs, there is a drop in the fresh quality assured. Even when other restaurants have
home-delivery options, Raju Omlet chose not to indulge in this practice, as for them quality is of main concern.
This restaurant needs to streamline their offerings. That is they should just stick to a few food which is in
consumer demand, and most importantly, they need to work on improving the quality of these foodstuffs
In Raju Omlet’s case, it keeps in mind to mix the roadside handcart eatery of Rajubhai’s omelet experience into the
modern life of Dubai. If Raju Omlet considers introducing home-delivery service, there are many points to be
kept in mind.Home-delivery means providing the customers the eatery ordered at their footsteps. There are both
advantages and disadvantages while taking into consideration home delivery service. Few advantages being; by
using the food delivery service, one can save time. In this fast phased world, most of them don’t have time to cook
or drive all the way to their favorite restaurants. Another benefit of home delivery is that, once quality of food
and speed of delivery is assured, one can regularly chose home delivery options and also get special discounts.
However, there are a few disadvantages of home delivery too. One of them being, providing the food with
supreme quality. For this, they will have to take on a vehicle, so that food can be transported to the
customers.Since, egg preparations comes under the head of potentially hazardous products (products that consist
in whole or in part of mil or milk products, which are capable of rapid growth of infectious microorganisms), the
vehicle used for transporting must maintain temperatures at 140 degree Fahrenheit for hot foods and 41 degree
Fahrenheit for cold foods during transportation. Another disadvantage is that, sometimes the delivery man may
bring in the wrong order which in turn will lead to a lot of time and energy being wasted. Instilling the home
delivery service, may also prove to be expensive. Thus, a few customers are bound to find these prices not
reasonable. One major disadvantage of home delivery is that restaurants will have to add artificial flavoring to
their products so that they still look fresh. This can prove to be awful for health. Furthermore, if Raju Omlet tries
its hand in home delivery, they will also have to keep in mind the hot climate of Dubai. Hence, delivery will be
possible only in few destinations.

6.  Q.5. Rationalize whether Raju Omlet should purse a product development,
market development, diversification, or market penetration strategy when
considering their potential expansion into other parts of the UAE.
 Ans.United Arab Emirates is considered as one of the safest place to live in and is known for its trade
and business. As mentioned in the case study, “Dubai is called the “Melting Pots of Cultures’ and is
home to people over 200 nationalities.”Nearly 1.75 million Indian nationalities reside in UAE, which
makes it the largest expatriate community.UAE is also a tax-free country, which makes it even more
attractive. United Arab Emirates comprises of seven emirates: Abu-Dhabi, Dubai, Sharjah, Ajman,
Umm-Al-Quwain, Ras-Al-Khaimah and Fujairah. UAE is a mixture of advanced infrastructure, tax-free
income, job opportunities, security etc. Hence, it is important to expand to other parts of UAE. All the
Emirates are well connected through roads, and people staying in one emirate travels to other for work
and sight-seeing. Currently, Raju Omlet has only one branch, which is in Dubai. Therefore, opening
eateries in other emirates can prove to be beneficial to the restaurant. Raju Omlet , if they try to bring
in diversity by preparing dishes of chicken, vegetable etc. they might lose their uniqueness. Hence,
product development is not a suitable strategy to be considered while preparing to get larger. Market
development the Raju Omlet case study are to be believed, currently, the restaurant has only one
branch at Al-Karama, Dubai. Hence, to get bigger, Raju Omlet can use the market development
strategy to spread out their business venture. They can open up new branches in different parts of
Dubai alone or also other Emirates. Diversification since Raju Omlet’s USP is egg preparations only,
diversifying into a new product is not a valid choice as then they will lose their distinctiveness. At the
same time diversifying into new market is a pertinent alternative. Keeping in mind the popularity of
Raju Omlet, market diversification will enhance their current profits if they are opening new branches
at various locations. Market penetration strategy for instance, Raju Omlet could increase the regularity
of purchase through excessive advertising promotions that will give consumers an explanation to go
there more often. They can also boost amount per purchase occasion through “value meals”. By
following these marketing actions they can gain customers from their competitors. Raju Omlet can
adopt price reductions, expanded delivery in the existing marketplace, sales force endeavour or
promotions could be the additional ways to implement market penetration strategy. Consequently,
potential growth is only the way forward for Raju Omlet. Rajiv & Nakul might find the expansion
process hard but as the risks are more, the payoffs and profits are greater too.