Tutti Matti: Sales Increase Essay

1243 Words Jan 20th, 2012 5 Pages
Tutti Matti – Practice Case

This case meets the conditions of my signed Academic Integrity Statement on file with the Instructor.

Critical Issues
Alida Solomon is currently facing these critical issues is her restaurant, Tutti Matti. 1. How to continue to expand her business and avoid problems during the SARS outbreak. 2. How to build awareness and obtain new customers. 3. How to make better use of her time and resources.
Analysis
Tutti Matti has been open for 6 months and has already become a profitable business earning sales of $210,000. Her plan is to finish the year with sales of $500,000. The SARS outbreak, decrease in tourism, seasonality and family and friends have decreased attendance at the restaurant and
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This is extra revenue without having to use any resources. This however can be a problem if the majority of customers stop purchasing alcohol from the restaurant and instead always bring their own. The Dining out magazine will cost $2000 advertisement will be available during the SARS problem. Therefore Tutti Matti will have advertisements during the time where they feel there could be a decrease in customers.
Recommendation
In Solomon’s marketing plan, she should accept the invitation to the Summerlicious event. It will allow her to attract new customers who can increase traffic and maintain her return rate of customers. Currently 90 percent of her customers were returning diners; therefore it comes to the conclusion that her customers enjoy the service and quality of cuisine. This will increase her customer base and allow her to satisfy the goal of increasing sales during the summer. This is also a way for her to decide to participate in future Summerlicious events and eventually become a first-tier restaurant charging higher prices for the food. This event will only cost her a registration fee of $350. Regularly her average dinner bill per customer is $50; the Summerlicious event will only charge $20 without alcohol sales. There is not enough evidence to determine that wine sales will reduce by 50 percent. She should also consider advertising in the Dining Out Magazine. The cost of advertising is $2000, however she

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