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Lecture

Williams Coffee Pub CaseStudy ADM3322

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Department
Administration
Course
ADM3322
Professor
Dennis Saukalakas
Semester
Winter

Description
Identification of critical issues: - Confusion of the name pub vs café that can mislead new customers. - Only have in-store promotions - Only have stores in the Western Ontario areas - Developed a cash bind and loaned a lot of money from friends - Faces various competitions with big brands (Tim Horton’s, McDonald’s, etc...) - Assumption that the other brands are currently more recognized - Not as much focused on dinner and afterhours products Analysis of key issues: First, George and William Giannakopoulos face various competitions with bigger and more recognized brands. The quick-casual type of market that the brothers chose to expert in was growing fast. Their competitors from the fast-food side, such as McDonald’s, aren’t as tuned in to the healthy eating aspect which makes them have the need to catch up, while Wendy’s are more ahead because of their reputation of the freshness of their products. Tim Horton’s in another competitor since they are doing well with their coffee and introducing sandwiches and soups to alter their mix away from unhealthy doughnuts. The brothers had been told by experienced franchisors that the usual progression in marketing communications for a new franchise chain would be to focus first on in-store promotions. Their first Williams Coffee Pub was created in 1992, and to date the brothers have used only in-store promotions and local media and haven’t expended their marketing plans and strategies any further than that. More ways to communicate about their restaurant must be done since there is the assumption that the other companies, such as McDonald’s, Tim Horton’s and Wendy’s are much more recognised. The Giannakopoulos brothers wanted to be more creative with their new quick casual restaurant and decided to name it a “pub” instead of a bistro, coffee-shop, or café. However, there is the assumption that the word “pub” might be misunderstood by new customers. This can mislead people into thinking that the Williams Coffee Pub mainly offers alcoholic drinks and wouldn’t be considered as a family friendly environment. Another issue that Williams Coffee Pub comes across is that they have stores only in certain regions of Ontario. They have limited development due to the limited stores in the current serving cities and due to the fact that they don’t have any stores in the eastern Ontario areas or any other provinces. Williams Coffee Pub has restaurant critics thinking that their food tastes and prices are great, but the only problem is that they don’t have enough stores. Williams began to develop a cash bind in 1998. This resulted from the rapid growth in the number of franchisees and the brothers’ use of Williams Coffee Pub money to bridge new franchises between the approval of the site and the bank’s financing for the site. Some of the franchisees were also very slow at paying their accounts payable. Williams Coffee Pub then had negative cash flows and had lots of dept which resulted into loaning money from friends, such as Peter Schwartz. Marketing alternatives: 1) Opening new stores to expand towards the eastern areas of Ontario and/or other provinces could be one of the alternatives. The brothers can maybe decide to open stores inside business offices to target large corporations and their employees. Williams Coffee Pub would show great success if it were to be in an office building due to its fast and affordable service, its healthy menu, and convenient location. Employees would go on their breaks and socialize with each other escaping from the reality of their jobs, or even have meetings there. Williams would also gain customer loyalty within a more sophisticated crowd. The brothers can also decide to have further expansion into university and college locations because most students drink coffee and buy food at school to keep them going throughout their day. Unlike Tim Horton’s, Williams Coffee Pub has healthier food choices and better service procedures. Williams can also offer direct delivery to classrooms and staff meetings, and can also offer late night hours during exam periods. They would benefit because of the long-term relationship with the educational institutions. 2) Since Williams Coffee Pub has 44 stores and has primarily focused on in-store promotions, they should now begin to use broadcast advertizing and additional promotions to build more sales and to be more recognised comparing to their competitors. They should now start using billboard advertising, radio and television advertising. Williams can also have flyers and postings online, in newspapers and in magazines. Another way to promote is by offering promotional discounts seasonally, daily special items from the menu, and bundled products like combo meals. The costumers will evaluate the competition of brands by comparing their perceptions
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