Ruth’s Chris Steak House
International Marketing Assignment
How should Ruth’s Chris Steak House meet its revenue growth targets? Be sure to support your recommendation with specific details of how you would carry out your recommendation.
Ruth’s Chris is an American chain of restaurants implanted in five countries: 3 in the Americas (USA, Canada and Mexico) and 2 in Asia (Taiwan and Hong Kong). This restaurant proposes prime quality meats from the USA. The average price of meal is around $70 so the target is high income customers.
Ruth’s Chris Company wants to increase its revenues. For that, the company can implement one of the four strategies of Ansoff matrix.
The penetration strategy consists in implementing more of the same restaurants in the same market i.e. in the current countries where are restaurants actually. This strategy could be a good opportunity especially on the North America market where there is high income customers and high meat consumption. However, the problem is there is a limited expansion in the current market.
If we implement a product development strategy, we open new kind of restaurants in our current market. For example, we can open cheaper restaurants or propose different sort of sets. But there is a risk of dilution and decreasing of brand image. Furthermore, it will entail additional costs for advertising.
We can also choose a diversification strategy, i.e. opening new kinds of restaurants in new markets but there is also a risk of brand dilution and brand confusion.
Finally the company can choose the market development strategy. This strategy is probably the best way to improve the turnover. It consists to open same restaurants in new markets.
Market development strategy
In this case we have to be careful to the mode of entry in foreign market and also to the six expansion criteria to choose which countries we can implement a restaurant.
Concerning the mode of entry, we can choose between in franchising, subsidiary or joint
How should Ruth’s Chris Steak House meet its revenue growth targets? Be sure to support your recommendation with specific details of how you would carry out your recommendation.
Ruth’s Chris is an American chain of restaurants implanted in five countries: 3 in the Americas (USA, Canada and Mexico) and 2 in Asia (Taiwan and Hong Kong). This restaurant proposes prime quality meats from the USA. The average price of meal is around $70 so the target is high income customers.
Ruth’s Chris Company wants to increase its revenues. For that, the company can implement one of the four strategies of Ansoff matrix.
The penetration strategy consists in implementing more of the same restaurants in the same market i.e. in the current countries where are restaurants actually. This strategy could be a good opportunity especially on the North America market where there is high income customers and high meat consumption. However, the problem is there is a limited expansion in the current market.
If we implement a product development strategy, we open new kind of restaurants in our current market. For example, we can open cheaper restaurants or propose different sort of sets. But there is a risk of dilution and decreasing of brand image. Furthermore, it will entail additional costs for advertising.
We can also choose a diversification strategy, i.e. opening new kinds of restaurants in new markets but there is also a risk of brand dilution and brand confusion.
Finally the company can choose the market development strategy. This strategy is probably the best way to improve the turnover. It consists to open same restaurants in new markets.
Market development strategy
In this case we have to be careful to the mode of entry in foreign market and also to the six expansion criteria to choose which countries we can implement a restaurant.
Concerning the mode of entry, we can choose between in franchising, subsidiary or joint