Kingfisher School of Business and Finance

Dagupan City

Mktg 12: Marketing Research

Santa Fe Grill
Case Study No. 1
by

MOBI CARE

Submitted by:
Abarabar, Arje Van S.

Abarcar, Ivan B.

Dela Cruz, John Nathaniel F.

Estacio, Zairo Q.

Gutierez, Jerome D.

Villados, Lanz Bradley T.

De Vera, Theresa Danielle B.

Formaran, Daryl Mae A.

Submitted to:
Sheen Alliah May S. Felix
Mktg 12 Instructor
 I. Problem
The owners of the Santa Fe Grill Restaurant did not achieved the output as they
expected. They insist on conducting surveys to find out where they falling short in serving
their customers and gain an understanding on what aspects of their restaurant drives
customer satisfaction and loyalty. The owners are discontented with growth and wanted to
prioritize the three areas:

1.) What drives customer satisfaction?

2.) How to build an adequate brand image?

3.) How to earn customer loyalty?

II. SWOT Analysis

Strengths
1. Owners of Santa Fe Grill
Santa Fe Grill Mexican Restaurant has a fun and festive ambiance supported by
competent work. The Restaurant owners are former business students. It gives them
practical knowledge of outlining a business plan and knows what to do under
circumstances like doing a market research when a business is not meeting their
expectations. Also, it is stated that one of the owners of the restaurant has a managerial
experience because of his past experience.

2. Business Concept

The business offers fresh ingredients, fun and festive environment, and friendly
customer service. This is a strength because Santa Fe created a brand that will
differentiate them from other competitors.
Weaknesses
1. Too much Reliance on Demographics
The business provided a detailed demographics of its total population, age of
target, household income, status, etc. These datas are not enough for the company to
lean on, because those people who were between the ages of 25 and 60 does not mean
they have the same attitudes, behaviors, or beliefs about their product. The use of survey or
product testing would be a good start-up idea to address customers taste or preferences
and adjust their market offering.

2. High Expectations

The business is expecting that by introducing their freshness concept, excellent

customer service and fun atmosphere would attract most of their chosen target market.
 Having a deep belief on your business' success is not bad, but by focusing too much on
these ideas neglects their opportunity to understand the real needs of their customers
and track its progress.

Opportunities
1. Mall near the Location
Santa Fe Grill is located near a mall which has 75 or more stores and is
considered a big opportunity for the company. People who are coming to the mall or after they
go to the mall, consumers and employees would surely be attracted by the restaurants
neighboring the mall.

2. Survey

The use of survey would be an opportunity because it gives a key information to

the current status of the company. It can understand what potential customers prefer and
minimize risk of failing especially for new businesses.

Threats
1. Stiff Competitions against Neighboring restaurants

Being established for 18 months the company has the opportunity to learn more
and excel in the future. But making a stiff competition against those who are early
established business will be the true challenge for Santa Fe Grill Restaurant. Neighboring
restaurant like Jose's Southwest cafe probably has much experience than the Santa Fe
Grill. Therefore, these competitors would dominate in terms of their knowledge to
customer behavior and preferences.

2. Potential of Employees

Santa Fe Grill Restaurant is quite the unusual type of restaurant for having a
concept likely to be a festive theme, serving their customer with upmost accommodation
and care. With a festive atmosphere concept, their customers are apparently composed
of whole family and at least a group of people. Santa Fe Grill Restaurant is also known as
they are cutting edge, in means of advertising and marketing strategy. Because of that,
they serve at a high volume of customers and eventually they will be running short with
employees. To be specific, they merely focus in kitchen management but not the floor
management to just focus only on serving and hosting the customers.

III. Alternative Courses of Actions (ACA’s)

ACA No. 1: Provide extra perks for the most loyal customers
 One of the best and perhaps one of the cheapest ways to reward customer loyalty
is to give extra perks to the most dependable customers. The considered loyal customers
will be given the privilege to skip the line, special meet-and-greets, or immediate seating,
because customers love getting a little something extra. By setting up a reward system
for the most loyal, not just only encourage them to stick around, but also give an incentive for
other customers to strive to reach that status.

A dvantages

 Loyalty programs will make customers feel valued, which will lead them to
continue doing business with Santa Fe Grills' product or services.

 With this reward system, new customers will easily join the "loyal customer list" to
take advantage of the offers.
Disdvantages

 Introducing a reward system to loyal customer in businesses is very common.

Thus, taking the risk of offering better reward system against competitors can deal
a great loss, in the end.

 Frequent buyer is not certainly a loyal customer, they may be making repeat
purchases to just get the benefits of the program’s rewards. So we may imply
that customers do not always guarantee future profitability.

ACA No. 2: The owners should solidify their brand image

Santa Fe Grill must consider advertising in public such as distributing flyers and
coupons, setting up promotional stands or billboards, used of social media and even
consider doing commercial in order to increase their public presence.

A dvantages

 Advertising your brand would increase your customer engagement and product
awareness which can possibly attract more customers in the area.

 Having a credible public engagement would help the business in building its
reputation and increase volume of sales.

Disdvantages

 The used of advertisement is costly given that it would expand your customer
reach. The cost of paying other parties for preparing and executing the ads would
force the company to disburse its financial resources.
  There is no guarantee that after doing an ‘ad’ it would increase the company’s
sales.

ACA No. 3: Research its existing customers and create customer profile

Santa Fe should try observing their customers for a week or month. Try to
understand what type of age group usually goes to their restaurant, the type of dishes
that is often ordered, how long do they stay or anything that influences their buying
behavior. Then formulate a profile that can specify their primary customers and those
customers who do not spend often.

A dvantages

 This will provide a brief understanding of what their customer needs or prefer
rather than only knowing their physical qualities. This will also help Santa Fe to
refine its approach to serving their customers.
 More accurate and useful information in developing the company’s strategy
towards its customers

Disdvantages

 Time-consuming

 There is a possibility that the company would miss their opportunity on attracting
new customers.

IV. Recommendation
(Specifically mention first the chosen ACA number/s together with their title/s before
discussing why you chose this/these. Make sure to elaborate why you chose this/these out of all
the stated ACA’s even it has disadvantages. How is this the best ACA/s that answer/s the
problem? Why did you not choose the other ACA’s?)