BSB Inc.
- Nationally operated food-services company catering to organizations
- Target markets:
1. Corporate
2. Airlines
3. University/College
- Operating organizational food-services for the past 10 years
- Contracted to cater to 6,000 students and 3,000 faculty at the university
The University
- The university is a “walking” university; dorms, classes, bookstore, sundry shop, barber shop, branch bank, and food-service facilities are all within close proximity
The Cafeteria
Large cafeteria on the ground floor of the main administrative building. The cafeteria is open for breakfast, lunch and dinner.
The Dogwood Room
Located on the 2nd Floor of the Administration Building. Serves upscale lunch buffet on weekdays only.
The Grill
Located at the corner of the recreational building near the dorms. Open from 11 A.M. to 10 P.M. weekdays, and until 12 A.M. on Fridays and Saturdays.
- Renee Kershaw joined as the manager of food-services at the university 18 months ago
- Undertook survey to determine customer needs and market trends
- Survey revealed the following :
Percent of food prepared in dorm rooms 20, Percent of food delivered from off campus 36, Percent of food consumed off campus 44
Major reasons to consume food off-campus
1.Lack of variety
2.Inconvenient timings
Other findings from the survey:
1.Large percentage of students with cars
2.Large percentage of students with refrigerators and microwave ovens in the rooms
3.Substantial amount of food was consumed from outlets others than BSB Inc.
In response to the survey, Kershaw made the following changes:
Decided to expand the menu at the grill to include pizzas
- Installed a pizza oven
- Allocated space to store pizza ingredients and make pizzas
- Pizzas offered had limited topping options, so as to minimize lead time
Started delivery service that covered the entire campus
-Hired existing personnel to deliver pizzas by bicycle
Aftermath
The Good,
Sales 10 months after the introduction of pizzas, sales and profits increased steadily.
Customers indicated satisfaction with the reasonable pricing and speedy delivery service.
The Bad,
Increased demand put strain on The Grill’s facilities, existing equipment and space allocated were now insufficient to meet demand.
Led to delay in delivery.
Sales began leveling off.
Request for off menu orders increased.
Large orders could not be serviced easily
Increasing in delivery times
Lack of product variety
And the Ugly!
The University recently announced the construction of a new student center which would house three private food-service providers, Taco Bell, Dunkin Donuts and Pizza Hut.
Kershaw is especially concerned with the entry of direct competitor Pizza Hut
Pizza Hut is expected to offer a limited selection of pizzas
Will not accept phone orders
Will not offer delivery service
Competitive Advantage
Close proximity to customers
Food consumed at facilities other than BSB 43%
Food consumed at BSB facilities 57%
Market knowledge
This means……
- Quick delivery times
- Lower costs
- More in tune with customer needs
Kershaw chose to compete on two fronts
Price and Convenience
Pizza’s were reasonably priced
Allowed BSB Inc. to compete with off-campus operators
Price was the “order qualifier”
Quick delivery times were ensured by:
-Preparing pizza’s before hand
-Delivering through bicycles
Delivery was the “order winner”
New competition will slice the food-service market (get it, “pizza”, “slice”…..)
The new food court will bring BSB in competition with the new food operators. In effect, BSB will lose its monopoly over the university campus market
BSB Inc.
- Nationally operated food-services company catering to organizations
- Target markets:
1. Corporate
2. Airlines
3. University/College
- Operating organizational food-services for the past 10 years
- Contracted to cater to 6,000 students and 3,000 faculty at the university
The University
- The university is a “walking” university; dorms, classes, bookstore, sundry shop, barber shop, branch bank, and food-service facilities are all within close proximity
The Cafeteria
Large cafeteria on the ground floor of the main administrative building. The cafeteria is open for breakfast, lunch and dinner.
The Dogwood Room
Located on the 2nd Floor of the Administration Building. Serves upscale lunch buffet on weekdays only.
The Grill
Located at the corner of the recreational building near the dorms. Open from 11 A.M. to 10 P.M. weekdays, and until 12 A.M. on Fridays and Saturdays.
- Renee Kershaw joined as the manager of food-services at the university 18 months ago
- Undertook survey to determine customer needs and market trends
- Survey revealed the following :
Percent of food prepared in dorm rooms 20, Percent of food delivered from off campus 36, Percent of food consumed off campus 44
Major reasons to consume food off-campus
1.Lack of variety
2.Inconvenient timings
Other findings from the survey:
1.Large percentage of students with cars
2.Large percentage of students with refrigerators and microwave ovens in the rooms
3.Substantial amount of food was consumed from outlets others than BSB Inc.
In response to the survey, Kershaw made the following changes:
Decided to expand the menu at the grill to include pizzas
- Installed a pizza oven
- Allocated space to store pizza ingredients and make pizzas
- Pizzas offered had limited topping options, so as to minimize lead time
Started delivery service that covered the entire campus
-Hired existing personnel to deliver pizzas by bicycle
Aftermath
The Good,
Sales 10 months after the introduction of pizzas, sales and profits increased steadily.
Customers indicated satisfaction with the reasonable pricing and speedy delivery service.
The Bad,
Increased demand put strain on The Grill’s facilities, existing equipment and space allocated were now insufficient to meet demand.
Led to delay in delivery.
Sales began leveling off.
Request for off menu orders increased.
Large orders could not be serviced easily
Increasing in delivery times
Lack of product variety
And the Ugly!
The University recently announced the construction of a new student center which would house three private food-service providers, Taco Bell, Dunkin Donuts and Pizza Hut.
Kershaw is especially concerned with the entry of direct competitor Pizza Hut
Pizza Hut is expected to offer a limited selection of pizzas
Will not accept phone orders
Will not offer delivery service
Competitive Advantage
Close proximity to customers
Food consumed at facilities other than BSB 43%
Food consumed at BSB facilities 57%
Market knowledge
This means……
- Quick delivery times
- Lower costs
- More in tune with customer needs
Kershaw chose to compete on two fronts
Price and Convenience
Pizza’s were reasonably priced
Allowed BSB Inc. to compete with off-campus operators
Price was the “order qualifier”
Quick delivery times were ensured by:
-Preparing pizza’s before hand
-Delivering through bicycles
Delivery was the “order winner”
New competition will slice the food-service market (get it, “pizza”, “slice”…..)
The new food court will bring BSB in competition with the new food operators. In effect, BSB will lose its monopoly over the university campus market
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