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Lecture 6

BU111 Lecture Notes - Lecture 6: Customer Satisfaction


Department
Business
Course Code
BU111
Professor
Sofy Carayannopoulos
Lecture
6

Page:
of 2
To: Jonathan
Subject: High Technology Bar Top – Commercializing Decision
Date: Wednesday October 23, 2013
Recommendation: Start your own club and then sell your product to other clubs
Immediate Problem:
How to commercialize High Technology Bar Top, a glass cover for the counter
top with touch screen order forms for customers wishing to purchase a drink
Underlying Problems:
Long line ups at popular clubs meant purchasing any drink was frustrating
Extremely difficult and frustrating for bartenders to catch every order
Customers avoided purchasing drinks due to long wait times
As a result, revenues and profitability of popular clubs declined
Recommendation:
Jonathan should start his own club/bar to promote his High Technology Bar Top
with financing from his parents
When his own business is running smoothly and profits are earned, market and
sell the bar top to other established clubs first in Waterloo, then eventually expand
the business
Expect to earn initial investment (the money his parents gave him) back within
seven months, as well as revenue and high profits
Decision Criteria and Alternatives
The decision criteria that an ideal solution would meet are:
Increase revenue and improve profitability at existing bars
Improve efficiency and mood of bartenders serving and making drinks
Customers must be satisfied with shorter waiting times for drinks and quality
bartending services
Within financial budget given from parents
The alternatives to this solution are:
Just opening his own club
oCannot increase revenue and improve profitability at existing bars
oImproves efficiency and mood of bartenders at his club
oCustomers at his club will be satisfied
oUncertain if opening a new club, including all the expenses, fixtures, and
production of the bar tops, will be within the budget giving by parents
Simply selling the bar tops to established clubs
oCustomers will be satisfied
oBartenders’ moods and efficiency will improve
oClubs may have brand loyalty and may not buy this product
They will not purchase it, thus their revenue and profitability will
not increase
Analysis
Improves efficiency of bartending and moods of bartenders
Bartenders will receive orders quickly, thus improving efficiency
Bartenders will not be overwhelmed with verbal orders, thus being more
organized
Customer satisfaction
Quick ordering reduces wait time
Order will be received correctly through the online order form
Increases revenue and profitability of existing clubs
Improves bartending services at existing clubs
Improves customer satisfaction at existing clubs
Customers will purchase more drinks, thus increasing revenue and profitability
Implementation Plan
Short-Term Actions
Receive the money from parents
Find location for the club
Work out renting contracts
Design the club
Medium-Term Actions
Find DJs/entertainment for the club
Find customer base
oMarket the club to popular crowds/students in Waterloo
Long-Term Actions
Find factory/location to produce bar tops
Promote High Technology Bar Tops to existing bars and sell to them
Patent the product to avoid imitation
Contingency Plan
Imitation: Other clubs might copy the idea of the bar top
oWhen business is running smoothly, consider applying for a patent
Promotion: Marketing might not reach desired customer base, producing less
profit due to low customer flow
oTry different types of advertising approaches
Feasibility of mass producing bar tops to sell to established bars