6.3: Competitive Methods

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When entering a marketplace knowledge of the existing competition, and those other entities that might enter the marketplace are essential. What is the current restaurant environment? How will you gain a foothold? ‘Competitive methods’ is nothing more than a clear picture in your own mind regarding ‘what’ and ‘how’ you intend to compete. Matching the correct competitive method to the market is critical to both success and survival. Once success and growth begins to occur the appropriate adjustments can ensue to sustain and continue to increase profitability.

Restaurant Environment / Competitive Methods Match

Environmental Events	Competitive Methods
Entering and Expanding within a Segment and Marketplace	Multiple concepts Brand recognition Real estate holdings New concept development Unit facelift improved atmosphere
Address Consumer Expectations	Changes in pricing strategy More upbeat, energetic music In-store execution of production Friendly and helpful employees Community involvement ‘Guest first’ philosophy
Technology	Efficient cooking systems Website Management information system Simplify operational procedures

Competitive Methods Relating to Executing the Marketing Plan

Physical	Human	Organizational
Convenience Packaging Technology Augmenting menus Variety of product offerings Downsizing units Limited menus Upgrade building, equipment Décor / ambiance Cleanliness Location MIS systems Landscaping Signage Maintenance systems Asset security systems Real estate holdings	Management talent Team spirit – employees Cultivating diversity A motivated workforce Innovative personnel Employee loyalty Performance measurements Recruiting Appropriate attitudes Appearance Training programs Turnover ratio Development programs	Product innovation Market research capability Brand identity Reputation Dual branding locations Synergy from several concepts Marketing frequency Control procedures Good planning Quality perception Simple operations Ability to adjust to change ‘Services’ marketing orientation Internal marketing orientation Effectiveness of functional units Appropriate standards Production methods Entertainment experience

Remember, the competition is generally unaware of your presence in the beginning. As your operations grows and becomes profitable. Your competitors will muster a response to your actions. This is why taking a deep look at your competitors is vital to your success. Understanding the possibilities of a competitive response allows you initiate a ‘counter’ from the beginning.