Skip to main content

Applebee Strategies to revive their reputation


a. Visit the Applebee's Web site www.applebees.com. Then, using the Applebee's strategies as a model, discuss how other, perhaps local or traditional, restaurants could use new strategies to revive their reputation.

b. What are Applebee's strategies that it is pursuing? Do you think these strategies could be used successfully at other local or traditional restaurants to compete?
1.

Applebee has a lively atmosphere for the happy hour people. I has a smaller restaurants and entrée prices are below casual dining and fine dining competitors. Applebee is places at small towns and cities with huge numbers of satisfied customers. Applebee offers many different kinds of food including the following: Asian, Italian, Mexican, American and others.
Applebee  provide excellent services through innovation and connecting with their customers, such impact is seen in the growth of the customers and has derived them the best results. Applebee has started with the same philosophy we follow today- focused on serving good food to good people. It is almost in 2000 locations and still counting. The major strategies that Applebee has implemented are
Improve Restaurant Operations and Profitability
The improvement in operational activities with profitability at Applebee’s restaurants were systematically introduced. So as to increase the profitability labor scheduling and labor rate control measures. Improvement in food and its costs, incentives and management of meals and discounts.
Refranchise Company-Operated Restaurants and Sell Owned Real Estate
       They intend to implement a strategy that is based on our experience of transitioning the business from a more capital-intensive development model to a less capital-intensive development model.
        They expect to apply the net after-tax cash proceeds from these two initiatives to repay certain principal of the debt issued in conjunction with the Applebee's acquisition.
Re-energize the Applebee’s Brand
This strategy will emphasize brand positioning of Applebee restaurant based on the customer feedback and marketing research and seek to deliver a clear, focused and consistent message relating to the dining experience.
Improvement in Restaurant Operations
Improvement in Restaurant Operation relates to the improvement in quality, efficiency, consistency of food and guest experience through enhanced training. The improvement in quality relates to the quality control, its costs and menu initiatives. The most improvement in restaurant operation is to improve the performance of the Applebee System.

Strengthen Company Restaurant Profitability
The most important company objective is to increase profitability. By strengthening the company performance, quality, margins and  regular menu item, offers by making promotional activities strengthen the profitability of the restaurants.


2
Applebee has pursued the strategy which is better that provides benefits to the restaurant which ultimately helps in operation, branding,  return on investment, improved financial sector, franchisees. This are the some of the factors which helps in determining successful business.
The Applebee strategy certainly helps to the local or traditional restaurant to use it since, Applebee is successful by implementing those strategies and its operating in more than 2000 locations and still counting. The costs factors, quality and performance  factors helps demographically as well as location wise successful to run business. This strategy helps locals as well as traditionally operated restaurant  to use it through price, service, location, personnel, and quality of foods. The loyal customer they seek betterment in service and quality Applebee’s major moto is to provide better service and better quality.




Reference:

Pearce II, J., & Robinson, R. (2011). Strategic Management: Formulation, Implentation and Control. McGraw-Hill Irwin

Comments

Popular posts from this blog

What mental accounts do you have in your mind about purchasing products and services? Do you have any rules you employ in spending money? Are they different from what other people do? Do you follow Thaler's four principles in reacting to gains and losses?

Mental accounting is the set of cognitive operations used by consumer to code, categorize and evaluate financial outcomes of choices. Researchers have found the consumer handling their money by using mental accounting. While purchasing product and services I have following mental accounts in my mind: ·Product importance and its need: Before buying the product, the very first thing I see is the need of that product and its importance in my life and accordingly I'll make the decision of buying. ·Quality:  I will also see at the product quality. If it meet the standard quality of what I am looking in that product and make the decision of buying it. ·Price: I'll also look at the price, see it reasonable or not so that I could afford, or is the price is set as per its quality and is it worth to buy in that amount, and make the decision accordingly. ·Availability: While purchasing I'll also see whether that product is easily available or not and what kinds of products of which b...

What are the five stages of the consumer buying process? Through market research a consumer gathers information about the competing brands of a product and their features. The consumer then advances through four sets with respect to brands before a decision is reached. What are those four sets?

According to Kotler & Lee (2005), consumer buying process is a psychological process that plays an important role in understanding how consumers actually make their buying decisions. Consumer buying process helps individual decide what the specifications is that is wanted in the product. The five stages of consumer buying process are:  Problem or Need Recognition: Consumer buying process's first step is problem or need recognition. For consumer to buy goods or service they should have clear idea as to what is needed from the product. This step helps to identify the specific need that consumer wants in the product which they want to buy.  Information Search: After recognizing the need, information about the need is searched about the product. Informations like features, added benefits, and advantages of the product are searched. Through various sources like internal search and external search required information is gathered.  Evaluation of Alternatives: After se...

Identify the four market segment groups based on brand loyalty status and list what a company can learn from analyzing the degrees of brand loyalty.brand loyalty

Brand loyalty is the degree to which consumers prefers to purchase product from the same brand from the same manufacturer repeatedly than from other suppliers. It enables the marketing during the crisis period enabling the business to run in long term. The four market group segments based on brand loyalty status are: Hardcore Loyal: These are those buyers who buy only one brand all the time. Customers show their strong desire and use the same brand always. Since they feel comfortable and sense pride by using the product, people become hardcore loyal towards the product. The more the customers are hardcore loyal, the more it represents the products strengths. For example, there are large numbers of customers who only prefer to wear and buy Nike shoes not the other brand shoes available in the market, which shows that these customers are hardcore loyal only towards the brand Nike. Split Loyal: These are those customers who are loyal to two or three brands. After making the comparison fro...