The Facts
From the case, we learn the following. Sharon Coombs, the Restaurant and Food Services Manager for the Marigold Inn in Augusta, Georgia has noticed a decline in room service business. This decline coincided with an increase in the national sales of pizza delivery and carryout firms as well as an increase in the number of empty pizza boxes from these firms being left in guest rooms in the Inn. Her response was to start serving hotel made pizza to the guests. Questionnaires completed by departing guests revealed a problem of product quality. Using blind taste tests however, the quality of the pizza was determined to be equal in quality to the major competitors. Sharon proposes to her boss, George, a new marketing strategy. …show more content…
It lets the guests and buyers know that the Pizza is made by or is a subsidiary of the Inn. It attempts to attach a personality and reputation to the pizza using the Marigold Inn’s brand (Business Ethics, 2002). The success of the the product adds to the brand equity of the Inn. This can increase the customer base, employee and shareholder income and the customer is not deceived into believing anything. Everyone is satisfied and no one is harmed under this option. Most companies have other businesses under their corporate umbrella. Napoli Pizza can be registered as a part of the Marigold Inn and be its trademark …show more content…
That way the Inn has the option of either using the Marigold Inn’s name or setting up Napoli Pizza as a totally separate entity. Whether or not the Inn’s name is used, guests will have the choice to either try the pizza out or get from the competitor. The pizza restaurant can be located in the Inn or away from the Inn. Several Inns that have restaurants that do not belong to the them located either nearby or in the Inn itself. Using this option no one is intentionally deceived. This restaurant should have a different staff than the hotel for transparency sake. All responsibility for the purchase in consumer’s control because the customer has the option of choosing another pizza place.
Practical Constraints Neither solutions A or B can in any way be construed as false marketing. George, as the manager, has a responsibility to serve his employers interest or in this case the best interest of all stakeholders. As stated in the case, “two years ago, Sharon noticed a decline in room service business, the highest margin portion of her operation”. This translates to a significant portion of lost income. Unless George can come up with another way to recoup the lost income, he must give serious consideration to one of the options.
George’s
From the case, we learn the following. Sharon Coombs, the Restaurant and Food Services Manager for the Marigold Inn in Augusta, Georgia has noticed a decline in room service business. This decline coincided with an increase in the national sales of pizza delivery and carryout firms as well as an increase in the number of empty pizza boxes from these firms being left in guest rooms in the Inn. Her response was to start serving hotel made pizza to the guests. Questionnaires completed by departing guests revealed a problem of product quality. Using blind taste tests however, the quality of the pizza was determined to be equal in quality to the major competitors. Sharon proposes to her boss, George, a new marketing strategy. …show more content…
It lets the guests and buyers know that the Pizza is made by or is a subsidiary of the Inn. It attempts to attach a personality and reputation to the pizza using the Marigold Inn’s brand (Business Ethics, 2002). The success of the the product adds to the brand equity of the Inn. This can increase the customer base, employee and shareholder income and the customer is not deceived into believing anything. Everyone is satisfied and no one is harmed under this option. Most companies have other businesses under their corporate umbrella. Napoli Pizza can be registered as a part of the Marigold Inn and be its trademark …show more content…
That way the Inn has the option of either using the Marigold Inn’s name or setting up Napoli Pizza as a totally separate entity. Whether or not the Inn’s name is used, guests will have the choice to either try the pizza out or get from the competitor. The pizza restaurant can be located in the Inn or away from the Inn. Several Inns that have restaurants that do not belong to the them located either nearby or in the Inn itself. Using this option no one is intentionally deceived. This restaurant should have a different staff than the hotel for transparency sake. All responsibility for the purchase in consumer’s control because the customer has the option of choosing another pizza place.
Practical Constraints Neither solutions A or B can in any way be construed as false marketing. George, as the manager, has a responsibility to serve his employers interest or in this case the best interest of all stakeholders. As stated in the case, “two years ago, Sharon noticed a decline in room service business, the highest margin portion of her operation”. This translates to a significant portion of lost income. Unless George can come up with another way to recoup the lost income, he must give serious consideration to one of the options.
George’s