There is a tremendous increase in the sales of fast food bars as compared to restaurants revealed by recent surveys. People are still very much interested in fast food.
Barry’s Burger Bar (BBB) is a business in a busy university town in England. BBB operates in a very competitive environment. The market structure within which BBB operates dictates the pricing policies, advertising strategy, and profitability potential. Barry has been considering changing his prices in order to increase his sales (total revenue). In this assignment, we would determine the Business Strategy for BBB as consultants.
The BBB is situated in a busy area and most of the customers are from low earning groups like university students and staff. The main character of the market are:
– There are many other such small bars and restaurants in the area so there is tough competition.
– Although he can increase the price at his will but then he may consider various factors.
He can formulate his own advertising campaign on a limited scale because of his limited resources.
– Profitability can be increased by adopting the self-suited market strategy.
Although Barry is quite free to make his own policies regarding marketing and pricing he should have to consider the main factors that are influencing the market. For this purpose, he needs to conduct a brief survey on his own or with the help of his associates to collect the data about his competitors and market forces. By collecting reliable data correct business strategy can be formulated. For this purpose analysis and scenarios, the Model can be employed.