Q.3. What would it take at this restaurant to ensure that customers are highly satisfied?

How valuable is highly satisfied customers in the restaurant business and why?

Ans. Customers views and suggestions are very valuable not only to restaurant business but
also to all other business ventures. In a progressively more competitive environment, all the
restaurants must be customer leaning. Customer satisfaction represents a contemporary
approach for excellence in business lives (Philip, 1997). As far as Raju Omlet is concerned,
customers are their first priority. Mr. Rajiv, founder of Raju Omlet has quoted, “We offer fresh
eggs cooked with high quality cooking ingredients and provide value for money”. And true to
his words, he is totally against providing low-quality products to their customers. He
constantly began searching for high-quality products for his customers. He started sourcing
fresh eggs and signed an agreement with the local poultry farm, Al-Jazeera Poultry, even
though he had to face more expenses almost up to 30% more than other suppliers. By
doing so, he

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has been able to provide high-quality products at reasonable rates. An average price for a
meal for two at Raju Omlet is Dh 45. Customer satisfaction is defined as a customer’s overall
evaluation of the performance of an offering. This overall satisfaction has a strong effect on
customer loyalty intensions (Anders, Michael, & Inger, 2005). Every organization must work
towards achieving a competitive advantage. To thrive in building competitive benefit, an
organization or business ventures like Raju Omlet or any other restaurants must provide what
buyers identify as “superior value”, that is either a good product at low value or enhanced
product that is worth paying more (Porter, 1985). The key issues in developing competitive
advantage are; creating customer value, building long-term relationships and maintain
customer satisfaction throughout. Up to an extent, Raju Omlet has been successful in
preserving the interests of their customers.

In order to ensure whether Raju Omlet’s customers are satisfied with their services,
they have to undertake certain public relations and advertising campaigns, so that they can
understand what the customers feel about Raju Omlet and also what more they have to do in
order to remain the customers first choice in the list of restaurants. A PR campaign strategy
normally includes statement of objectives, situation analysis, specification of target
audiences, messages to be communicated, specific program elements to be used, timetable
and budget and finally details of the program evaluation. Every PR campaign must have a
clear message, concise and understandable. This is essential because it is the attitude forming
process and they demonstrate the effectiveness of communication. One can use media
relations, events, interviews, blogger relations, presentations, consultations, newsletters,
competitions, podcasts, stunts, websites, conferences etc. to put across the messages to the
targeted audience. In case of Raju Omlet, the advertisements provided at two different radio
channels have played an important role in creating awareness about their special offerings.
Raju Omlet, by the medium of radio told the customers various health benefits of eating eggs.
For this

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campaign to be successful, Rajiv and Nakul (father & son duo of Raju Omlet), chose the
correct radio channels and prime times for their advertisements. Hence, a very positive
response was got from the public. They reached in large numbers for the high-quality food,
good services and cozy atmosphere.

Q.1. Critically analyze what points should Raju consider before introducing the home
delivery service? Do you think they should go ahead and introduce it, why or why not?

Ans. Raju Omlet currently follows “No home delivery option” as the founders, Rajiv and
Nakul are against the idea of letting the customers consume it’s offering by paying the same
price for a diminished quality. While packing away the food stuffs, there is a drop in the fresh
quality assured. Even when other restaurants have home-delivery options, Raju Omlet chose
not to indulge in this practice, as for them quality is of main concern. This restaurant needs to
streamline their offerings. That is they should just stick to a few food which is in consumer
demand, and most importantly, they need to work on improving the quality of these
foodstuffs. It is important to advertise in a style that accurately replicates what you are going
to provide. It needs to consider the global impression that your posters or labeling create.
Consumers look for protection, which is based on the sensitivity that the brand is reliable and
looks to their best interests. Restaurants should be observing the quality of the foodstuffs they
are selling. A specialty restaurant is an eatery where the atmosphere and décor are geared to a
particular type of food or theme (Webb, 2010). Thus restaurants such as Raju Omlet can be
coined as a specialty restaurant. The service of food which is provided is based more or less
on the same manner of the country from which the particular cookery originates.

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 In Raju Omlet’s case, it keeps in mind to mix the roadside handcart eatery of
Rajubhai’s omelet experience into the modern life of Dubai. If Raju Omlet considers
introducing home-delivery service, there are many points to be kept in mind. Home-delivery
means providing the customers the eatery ordered at their footsteps. There are both
advantages and disadvantages while taking into consideration home delivery service. Few
advantages being; by using the food delivery service, one can save time. In this fast phased
world, most of them don’t have time to cook or drive all the way to their favorite restaurants.
Another benefit of home delivery is that, once quality of food and speed of delivery is
assured, one can regularly chose home delivery options and also get special discounts.
However, there are a few disadvantages of home delivery too. One of them being, providing
the food with supreme quality. For this, they will have to take on a vehicle, so that food can be
transported to the customers. Since, egg preparations comes under the head of potentially
hazardous products (products that consist in whole or in part of mil or milk products, which
are capable of rapid growth of infectious microorganisms), the vehicle used for transporting
must maintain temperatures at 140 degree Fahrenheit for hot foods and 41 degree Fahrenheit
for cold foods during transportation. The vehicles used must be clean to protect food from
contamination (Anonymous, 2000). Another disadvantage is that, sometimes the delivery
man may bring in the wrong order which in turn will lead to a lot of time and energy being
wasted. Instilling the home delivery service, may also prove to be expensive. Thus, a few
customers are bound to find these prices not reasonable. One major disadvantage of home
delivery is that restaurants will have to add artificial flavoring to their products so that they
still look fresh. This can prove to be awful for health. Furthermore, if Raju Omlet tries its
hand in home delivery, they will also have to keep in mind the hot climate of Dubai. Hence,
delivery will be possible only in few destinations.

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Q.2. Rationalize whether Raju Omlet should purse a product development, market
development, diversification, or market penetration strategy when considering their
potential expansion into other parts of the UAE.

Ans. United Arab Emirates is considered as one of the safest place to live in and is known for
its trade and business. As mentioned in the case study, “Dubai is called the “Melting Pots of
Cultures’ and is home to people over 200 nationalities.” Nearly 1.75 million Indian
nationalities reside in UAE, which makes it the largest expatriate community. UAE is also a
tax-free country, which makes it even more attractive. United Arab Emirates comprises of
seven emirates: Abu-Dhabi, Dubai, Sharjah, Ajman, Umm-Al-Quwain, Ras-Al-Khaimah and
Fujairah. UAE is a mixture of advanced infrastructure, tax-free income, job opportunities,
security etc. Hence, it is important to expand to other parts of UAE. All the Emirates are well
connected through roads, and people staying in one emirate travels to other for work and
sight-seeing. Currently, Raju Omlet has only one branch, which is in Dubai. Therefore,
opening eateries in other emirates can prove to be beneficial to the restaurant. Product
development is defined as adding new products into the current line so that its business can
prosper. When the firm’s offerings enter the maturity stage, they have to bring in changes so
as to continue in the market. As far as Raju Omlet is concerned, if they try to bring in
diversity by preparing dishes of chicken, vegetable etc. they might lose their uniqueness.
Hence, product development is not a suitable strategy to be considered while preparing to get
larger. Market development involves introducing the current product into a new market. If the
facts given the Raju Omlet case study are to be believed, currently, the restaurant has only
one branch at Al-Karama, Dubai. Hence, to get bigger, Raju Omlet can use the market
development strategy to spread out their business venture. They can open up new branches in
different parts of Dubai alone or also other Emirates. Diversification happens when firms
look for new products in new markets. As mentioned earlier, since Raju Omlet’s USP is
egg preparations only,

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diversifying into a new product is not a valid choice as then they will lose their distinctiveness.
At the same time diversifying into new market is a pertinent alternative. Keeping in mind the
popularity of Raju Omlet, market diversification will enhance their current profits if they are
opening new branches at various locations. Market penetration strategy means increasing the
sales of the existing products in existing markets. There are mainly four ways to increase the
sales of a current brand; Increase frequency of purchase, increase amount per purchase
occasion, sell to non-customers and see to non-buyers (Frain, 1996) .

For instance, Raju Omlet could increase the regularity of purchase through excessive
advertising promotions that will give consumers an explanation to go there more often. They
can also boost amount per purchase occasion through “value meals”. By following these
marketing actions they can gain customers from their competitors. Raju Omlet can adopt price
reductions, expanded delivery in the existing marketplace, sales force endeavor or promotions
could be the additional ways to implement market penetration strategy. Consequently,
potential growth is only the way forward for Raju Omlet. Rajiv & Nakul might find the
expansion process hard but as the risks are more, the payoffs and profits are greater too.