A regional chain recently bought several established restaurants in your city, each serving a different type of cuisine. You want to increase market share.
Which two strategies would be best? Select two answers.
A Use a collective email list to cross-promote
B Host a food festival and highlight the different menus of each restaurant
C Create one website for the entire chain with little brand differentiation
D Rebrand all the restaurants under the same name for unity
E Purchase ads for every restaurant on the same radio station
The correct answer and explanation is :
The two best strategies to increase market share in this scenario would be:
A. Use a collective email list to cross-promote
B. Host a food festival and highlight the different menus of each restaurant
Explanation:
A. Use a collective email list to cross-promote:
Using a collective email list allows for cost-effective and targeted marketing. Since the regional chain owns several established restaurants, leveraging the existing customer base of each restaurant by creating a unified email list is an excellent way to cross-promote. Through email campaigns, you can inform customers of the other restaurant options within the chain, highlight special promotions, and encourage cross-visits. This not only keeps customers engaged but also builds brand loyalty by reminding them of the variety within the chain. Moreover, it helps reach a broader audience by promoting different types of cuisines that each restaurant offers, increasing the likelihood of repeat visits from current customers and attracting new ones.
The key to success here lies in personalization, ensuring the emails are tailored to customer preferences (e.g., someone who frequents an Italian restaurant might be interested in the Mediterranean or pizza offerings from other restaurants in the chain). This method provides a direct line to existing customers while promoting the brand as a whole.
B. Host a food festival and highlight the different menus of each restaurant:
Hosting a food festival is a fantastic way to increase market share by showcasing the diverse offerings across the different restaurants in the chain. This strategy offers customers an opportunity to experience all the various cuisines in one location, which can significantly boost brand visibility and draw in new customers. A well-organized food festival can create excitement and a sense of exclusivity, encouraging word-of-mouth marketing, which is one of the most effective ways to increase customer traffic.
By highlighting the different menus, you create an event that appeals to a wide range of tastes, allowing customers to try new dishes they might not have previously considered. Additionally, such an event offers opportunities for media coverage and social media buzz, which can further increase the chain’s visibility and customer base.
Why other options are less effective:
C. Create one website for the entire chain with little brand differentiation
A lack of brand differentiation may confuse customers and diminish the distinctiveness of each restaurant. Each restaurant likely has a unique identity and target audience, so a generic website would fail to highlight these important distinctions.
D. Rebrand all the restaurants under the same name for unity
This strategy might create brand confusion and alienate loyal customers of each original restaurant. Rebranding would erase the history and recognition of the individual restaurants, which could lead to the loss of brand equity.
E. Purchase ads for every restaurant on the same radio station
While radio ads can be effective, buying ads for all restaurants on the same station may be a less targeted strategy. It could also be expensive and not deliver the same level of impact as using a collective email list or hosting an event that directly engages customers with the product.
Therefore, options A and B are the most effective for increasing market share.