Italiano Restaurant

Italiano Restaurant

Introduction

The objective of this study is to determine a pricing and distribution strategy that would enable the restaurant to maintain its corporate strategy by attracting customers and offering them services that would compel them to return. The problem with starting a restaurant business is that every aspect of its strategy should be properly planned as its success depends on the perfect implementation of its marketing plan. Once the domestic plan gets underway, expanding internationally would be a major breakthrough because of the efforts and expertise needed to cater to the needs of diverse regions (Londre, 2012).

Domestic and Global Product Branding Strategy

The restaurant has plans to expand locally as well as internationally. Restaurant operations require the food to be prepared based on the culture and taste of the population. Therefore, food in one region would have to taste differently in another country so that people would prefer them. For instance, some countries would prefer spicy food while others would prefer less spicy.

The problems with expanding domestic operations internationally are that the strategy used domestically may not apply internationally. Therefore, the strategy would have to be changed depending on the culture and consumer preferences. This included the prices, ambiance, tastes, menu etc. although a restaurant targeted to the upper class, when expanding internationally the restaurant may have to reduce its quality in order to remain competitive in the market.

Optimum Pricing Strategy

Italiano aims to provide some of the most delicious Italian food that tastes just as it would at home. Due to the quality and taste of the food, the pricing strategy would aim to target the upper class thus high prices would be offered but the quality would also match up to its mark. The optimum pricing strategy is the price which the consumer is willing to pay based on the quality of the service being provided.

The optimum pricing strategy is one where the prices of the services match the quality and hence help the restaurant to achieve a competitive position in the market. If there is no match between various aspects of the strategy, the business will fail due to customer dissatisfaction. This alone shows the importance of an optimum pricing strategy (Finley and Galloway, 2001).

Pricing Strategy

Since the restaurant will be operating in a tough market, a market oriented strategy would be used. This strategy would help to price the service according to the prevailing market prices. Keeping in mind that the restaurant targets the upper class, the low prices services of restaurant would not be a challenge for the restaurant since the market in which Italiano is operating is of a higher standard.

Competing in the upper market segment is tough since customers expect a lot more and hence easily get dissatisfied even due to the slightest of issues. In order to sort this issue, initially the services would be priced slightly lower so that people may feel that they are being charged more than the quality of services being offered.

Distribution Channel

Each branch of the restaurant will have its own ...