How can Clifton Restaurant improve its competitive positioning in the current market - Literature review Example

How Clifton Restaurant can improve its competitive positioning in the current market Introduction Understanding competition can be important when planning to rent or dine at Clifton restaurant. One of the key issues affecting Clifton restaurant is the issue of overcrowding of similar restaurants offering similar products and services within its locality; there are many chain and independent businesses which are already in operation. As a result, competition analysis may prove to be the main secret of the success in Clifton restaurant market (KWA, 2014).

Clifton restaurant must invest in understanding the knowledge of promoting, marketing strategy, advertising and managing strategy; so as to improve the quality of their dishes and service and have a competitive advantage in the restaurant industry. The current paper presents a literature review of critical aspects that can enhance the competitiveness of Clifton restaurant, namely, marketing plan, provide and competitive strategy, look for competitors’ marketing strategy and also provide a suitable promotion mix for the Clifton restaurant.

Literature Review The external environment of an organization is usually analyzed using PESTLE analysis technique (Henry, 2008, p.52); (Boone & Kurtz, 2011, p. 25); (Dlabay & Scott, 2010, p. 79). The technique involves analysis of the political, social, economic, technological, legal and environmental factors that influence organizational practices and performance. The same technique can be applied in the analysis of Clifton Restaurant. As explained by Henry (2008, p. 69), one can understand the competitive forces by examining their basic causes, which can improve the business profitability while developing a plan to enable it to remain in competition overtime.

As well, analysis of environmental factors can focus on analyzing macro-factors. One way of achieving this is through analyzing the competitive forces in the target market through examining threat posed by new entrants. Prospective new entrants to the industry can bring desire to gain the market share, often-substantial resources and new capacity (Richter, 2012, p. 156); (Ghauri & Cateora, 2014, p. 45). As such, there are two ways new entrants pose a threat to Clifton restaurant. First, the presence of Indian restaurants which require a low start-up cost is a threat to Clifton restaurant (Clifton Restaurant, 2015).

Secondly, big restaurants such as Amber restaurant have a well-established possessing capacity, in which it offers both the traditional foods and the fast-food Indian dishes. Another way is through exploring the power that is held by suppliers. Suppliers have a great influence on the in a competitive industry since they have the power to reduce or increase the prices of the purchases offered to the restaurants (Brinkman, Navarro & Harper, 2014, p. 358). For Clifton restaurant, it maintains some degree of control over its suppliers of food products, switching suppliers can be costly in terms of bargain power of the purchases (KWA, 2014).

Buyers’ bargaining power is also essential. Buyer can influence the restaurant industry by forcing down prices, turning to alternative cheap products and services and playing the competitors against each other (Dalton, 2012, p. 69). However, Clifton restaurant faces a major threat by its customers choosing the Indian dishes over its products. The restaurant has recently been trying to offset these threats by offering by offering variety of foods and at lower prices. Further, an organization’s macro-environmental analysis can include exploration of threat posed by substitutes.

Competitors often try to outsmart its rivals by offering substitute goods that the same industry is producing (Henry, 2011, p. 88). Presence of substitute goods is a major threat to Clifton restaurant, especially due to the presence of Indian’s curry industry which has substituted the traditional curry products that Clifton restaurant has been using. Rivalry occurs when one competitor sees an opportunity to improve its position (Botterill, MacRury & Richards, 2013, p. 633). The rivalry existing in restaurant industry is very high.

There are other restaurants which have maintained a strong position in the industry such as Kamil’s restaurant, Modern Casual Dining Restaurant and Amol India. However, Clifton restaurant maintains a competitive advantage through reasonable performance achievement goals such as market reach and business mix from trade area residents. As part of Clifton Restaurant’s marketing plan, there are various goals that it has set in an effort to sell its products to wide range of customers. These goals include is marketing in a global presence, producing budget friendly items, collaboration with licensed stores and emerging markets and targeting low income customers such as the college students at the southeast corner of Cincinnati’s Corryville neighborhood.

In addition, Clifton Restaurant focuses on marketing strategy so as to create customer value by ensuring it meets the different types of customers with diverse needs through segmentation, targeting and positioning (Parhizgar, 2013, p. 54). Segmentation refers to reaching out distinct group of customers with different needs. Clifton Restaurant is using the psychographic segmentation which target customers based on their lifestyles, values, opinions and other personal characteristics (Ellis, 2010, p. 32). Targeting refers to making decisions to prioritize market segments so as to increase future market share.

Clifton Restaurant continues to identify its customers’ characteristics so as to give more values to them in the products its offers. Lastly, position concerns how the business is viewed by the customers in the market. With the emerging Indian ingredients dishes, there is the need for Clifton Restaurant to expand their product line by introducing new dishes that will have a consistent taste to that being offered by its competitors (Gilligan & Wilson, 2012). Clifton Restaurant also focuses on promotion mix so as to communicate the merits of its products and to persuade its customers to buy them.

As a result, Clifton Restaurant continues to engage in public relations in order to increase its goodwill and to develop a positive public perception. As such, the restaurant focuses on involving people at every marketing stage, physical evidence which involves tangible aspect of taking its products to the customers and the process by which it delivers its products and services to its customers (Ferrell & Hartline, 2012). Conclusion It is important to note that the market’s competitive field has narrowed due to the overcrowding of other restaurants offering the same products and services in respect to Clifton Restaurant.

As a result, this could be indicative that the restaurant might be expected to open new points of market assessment, market awareness and promotion strategies as the next logical opening that suits its marketing activity. References Boone, L. & Kurtz, D. (2011). Contemporary Marketing. Cengage Learning, New York Botterill, J., MacRury, I., & Richards, B. (2013). The dynamics of advertising. New York, NY: Routledge. Brinkman, J., Navarro, I., & Harper, D. (2014). Unlocking the business environment.

New York, NY: Routledge. Clifton Restaurant. (2015). Home Page. Clifton Restaurant. Accessed on March, 6th, 2015. Retrieved from: http://www.cliftondocklands.com/ Dalton, N. (2012). Frommers England and the Best of Wales. New Jersey: John Wiley & Sons Dlabay, L. & Scott, J. (2010). International Business. New York, NY: Cengage Learning Ellis, N. (2010). Business to Business Marketing: Relationships, Networks and Strategies. New York, NY: Oxford University Press Ferrell, O.C., & Hartline, M. (2012). Marketing Strategy.

Belmont: Cengage Learning Gilligan, C., & Wilson, R.M.S. (2012). Strategic Marketing Planning. Oxford: Routledge Ghauri, P. N. & Cateora, P. R. (2014). International Marketing. McGraw-Hill Education, Green Verlag Henry, A. (2008). Understanding Strategic Management. New York, NY: Oxford University Press Henry, A. (2011). Understanding Strategic Management. Oxford: Oxford University Press KWA. (2014). Retail Food Market Survey of Clifton Market. Clifton, Ohio Retail Food Market Survey. Retrieved from: https://cliftonmarket.

com/resources/kwareport.pdf Parhizgar, K. D. (2013). Multicultural behavior and global business environments. New York, NY: Routledge. Richter, T. (2012). International Marketing Mix Management: Theoretical Framework, Contingency Factors and Empirical Findings from World-Markets. Logos Verlag Berlin GmbH, Berlin