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A typical product at restaurant
point of sale passes through distinct stages during the course of
its life. During the market pioneering stage, the product is in its
introductory stage in the market. Here there may not yet be a ready
market for the product. Sales are low; the product undergoes teething
troubles; profits seem a remote possibility; demand has to be created
and developed; and customers have to be prompted to try out the product.
One of the crucial decisions to be
taken at this stage is the pricing strategy to be adopted for the
product.
The ease and speed with which
competitors can bring out similar products is perhaps the most important
factor in deciding the pricing strategy at this stage. Another crucial
area demanding attention is market development and promotion. That's
where demand has to be created and developed. The firm has to invest
heavily in promotion before it sees any returns.
During the market growth stage, the
demand for the product increases and the size of the market grows.
That's when one has to stay ahead of his competitors and persuade the
customer to prefer his brand. He cannot dictate the price to the
customer; he cannot dictate the terms to the channel.
Tip!
Offer "Happy Hour" Specials At the end of a hard day, many workers
want to relax and unwind before heading home, so invite them to your
restaurant for some “happy hour” specials. Drink specials and
low-price finger food buffets are both good ideas.
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