EMSE 6035 Case Study 1
1. Describe how the value proposition that Middleby offers to a casual dining chain, like Outback steakhouse, might differ from one that is offered to a fast-food customer, like Papa John’s International.
In order to answer the first question we must understand the following “value equation”.
The value proposition of Middleby Corporation will have a significant difference in term of products offered to fast-food companies oppose to ones offered to casual dining chains where Middleby has made a strong name and market for itself supplying clients like Papa John’s International. That is related to Middleby’s lengthy and solid experience in supplying fast-food companies compared to its test-run of supplying three undisclosed casual dining chains. In addition to that, Middleby’s Energy Star-approved products give its value propositioning offers a strong weight for both fast-food and casual dining chains.
Unlike fast-food chains where price is the most important factor in selecting kitchen products as fast-food chains charge low costs for their food and cannot charge customers more for a low quality product; Casual dining restaurants emphasize on quality rather than price therefore quality is a priority in their case.
What Middleby must offer in this case in order to attract casual dining restaurant and provide them with a positive perceived value is a variety of high quality range of product and high efficiency products that consume less energy, all of which must be provided at a lower cost with the option to customize. This way the perceived value and benefits outweigh the price paid thus creating a strong value proposition. Middleby’s proposition is to provide them with a complete suite of products that will cut labor and energy costs, increase productivity and efficiency and finally represent them with cost saving and extra revenue possibilities each of their restaurants.
2. In planning marketing strategy. What adjustments might be needed in serving
In order to answer the first question we must understand the following “value equation”.
The value proposition of Middleby Corporation will have a significant difference in term of products offered to fast-food companies oppose to ones offered to casual dining chains where Middleby has made a strong name and market for itself supplying clients like Papa John’s International. That is related to Middleby’s lengthy and solid experience in supplying fast-food companies compared to its test-run of supplying three undisclosed casual dining chains. In addition to that, Middleby’s Energy Star-approved products give its value propositioning offers a strong weight for both fast-food and casual dining chains.
Unlike fast-food chains where price is the most important factor in selecting kitchen products as fast-food chains charge low costs for their food and cannot charge customers more for a low quality product; Casual dining restaurants emphasize on quality rather than price therefore quality is a priority in their case.
What Middleby must offer in this case in order to attract casual dining restaurant and provide them with a positive perceived value is a variety of high quality range of product and high efficiency products that consume less energy, all of which must be provided at a lower cost with the option to customize. This way the perceived value and benefits outweigh the price paid thus creating a strong value proposition. Middleby’s proposition is to provide them with a complete suite of products that will cut labor and energy costs, increase productivity and efficiency and finally represent them with cost saving and extra revenue possibilities each of their restaurants.
2. In planning marketing strategy. What adjustments might be needed in serving