Case study : The 7 Ps in Marketing for a New Restaurant

XYZ Restaurant is a brand-new dining establishment aiming to make its mark in the highly
competitive food industry. The management team understands the importance of a
comprehensive marketing strategy and decides to implement the 7 Ps framework to effectively
position and promote their restaurant.
1. Product:
XYZ Restaurant offers a diverse menu of international cuisine, including both vegetarian
and non-vegetarian options. The management team ensures that the ingredients used are
of high quality and sourced locally whenever possible. The menu is designed to cater to
various dietary preferences and includes gluten-free and vegan choices.
Question: How does the quality and diversity of the menu contribute to XYZ Restaurant's
competitive advantage?
Answer: The quality and diversity of the menu help XYZ Restaurant differentiate itself from
competitors by offering a unique culinary experience and catering to a wider range of customer
preferences. This enhances customer satisfaction and attracts a broader customer base.
2. Price:
XYZ Restaurant adopts a pricing strategy that positions it as an affordable yet upscale
dining option. They set competitive prices based on market research, considering factors
such as ingredient costs, overhead expenses, and desired profit margins. They also offer
value-added meal deals and loyalty programs to incentivize repeat visits.
Question: How does XYZ Restaurant's pricing strategy align with its target market and
positioning objectives?
Answer: XYZ Restaurant's pricing strategy aims to strike a balance between affordability and
perceived value. By positioning itself as an upscale yet accessible restaurant, it appeals to
customers who seek quality dining experiences without exorbitant prices, thereby attracting both
value-conscious and discerning customers.
3. Place:
XYZ Restaurant selects a prime location in a bustling commercial area with high foot
traffic. The restaurant is easily accessible, with ample parking facilities and proximity to
public transportation. The interior design is carefully crafted to create a welcoming and
comfortable ambiance for diners.
Question: How does the choice of location and restaurant ambiance contribute to XYZ
Restaurant's customer convenience and overall dining experience?
Answer: The strategic choice of location and attention to restaurant ambiance enhance customer
convenience and satisfaction. Easy accessibility and a pleasant dining environment attract
customers and encourage them to visit repeatedly, ensuring a positive overall dining experience.
4. Promotion:
XYZ Restaurant employs various promotional tactics to create awareness and generate
buzz. They leverage digital marketing channels, such as social media platforms and
online food portals, to reach a wider audience. They also collaborate with local
influencers and food bloggers to showcase their unique offerings and organize special
events to engage the community.
Question: How does XYZ Restaurant's promotional strategy leverage digital platforms and
community engagement to build brand awareness and attract customers?
Answer: By leveraging digital platforms, XYZ Restaurant reaches a large online audience and
engages potential customers through visually appealing content and targeted advertising.
Collaborations with influencers and community events help build brand awareness and create a
positive buzz around the restaurant, encouraging word-of-mouth referrals.
5. People:
XYZ Restaurant emphasizes hiring skilled and friendly staff members who are passionate
about providing exceptional customer service. They invest in training programs to ensure
that employees possess in-depth knowledge about the menu offerings, deliver
personalized dining experiences, and handle customer inquiries effectively.
Question: How does XYZ Restaurant's focus on hiring and training knowledgeable and
customer-oriented staff contribute to customer satisfaction and loyalty?
Answer: By prioritizing staff selection and training, XYZ Restaurant ensures that customers
receive attentive and knowledgeable service. Friendly and well-informed staff members enhance
the overall dining experience, increase customer satisfaction, and foster customer loyalty.

6. Process:
XYZ Restaurant streamlines its operational processes to ensure efficient service delivery.
They implement reservation systems, online ordering platforms, and efficient kitchen
workflows to minimize wait times and maximize customer convenience. Regular
feedback mechanisms are also in place to continuously improve operational processes.
Question: How do XYZ Restaurant's streamlined operational processes, including reservation
systems and feedback mechanisms, enhance the overall customer experience?
Answer: By implementing reservation systems and efficient operational processes, XYZ
Restaurant minimizes waiting times and provides a smoother dining experience for customers.
Feedback mechanisms allow the restaurant to gather valuable insights, address any issues
promptly, and continuously improve its service quality.

7. Physical Evidence:
XYZ Restaurant pays close attention to the physical evidence of its brand. They create an
aesthetically pleasing logo, use high-quality menus, and design visually appealing
signage for both the interior and exterior of the restaurant. The presentation of food and
beverages is carefully curated to enhance the overall dining experience.
Question: How does the attention to physical evidence, including branding elements and food
presentation, contribute to XYZ Restaurant's brand image and customer perception?
Answer: The focus on physical evidence helps XYZ Restaurant create a strong brand identity
and enhance the overall customer perception. Attention to branding elements and food
presentation creates a visually appealing and memorable experience, reinforcing the restaurant's
commitment to quality and enticing customers to return.

By effectively implementing the 7 Ps framework, XYZ Restaurant can strategically position

itself in the market, attract customers, and build a strong brand presence.
True false:
1. A feasibility study helps assess the practicality and viability of a proposed project.
(True)
2. Feasibility studies primarily focus on financial analysis and projections. (True)
3. A feasibility study is conducted after project completion. (False)
4. Technical feasibility is concerned with evaluating the project's technical requirements
and capabilities. (True)
5. A pre-feasibility study is a preliminary assessment conducted to determine whether to
proceed with a full feasibility study. (True)
6. Feasibility studies evaluate market demand, competition, and potential customers.
(True)
7. Legal considerations are not relevant in a feasibility study. (False)
8. A feasibility study helps identify potential risks and constraints associated with a
project. (True)
9. Feasibility studies are primarily used for internal decision-making purposes. (True)
10. A feasibility study guarantees the success of a project. (False)
11. Financial feasibility involves analyzing the project's financial viability and potential
return on investment. (True)
12. Feasibility studies assess the availability of resources such as capital, labor, and time
required for the project. (True)
13. Market analysis is not a component of a feasibility study report. (False)
14. Feasibility studies help in decision-making by providing comprehensive information
and insights. (True)
15. Conducting a feasibility study eliminates the need for a business plan. (False)
16. Feasibility studies only evaluate economic factors and ignore social and environmental
aspects. (False)
17. Feasibility studies are primarily concerned with operational efficiency and employee
satisfaction. (False)
18. A feasibility study involves analyzing the project's technical specifications and
requirements. (True)
19. The primary purpose of a feasibility study is to secure funding for the project. (False)
20. Feasibility studies are typically conducted to evaluate the potential success of a project
before committing significant resources. (True)
MCQ:
1. What is the purpose of a feasibility study?
a) To develop marketing strategies
b) To assess the viability of a project
c) To conduct competitor analysis
d) To secure funding for the project

2. Which of the following is a component of a feasibility study report?

a) Employee training plan
b) Sales projections for the next five years
c) Monthly expense breakdown
d) Social media marketing campaign

3. What does a feasibility study evaluate?

a) Technical feasibility only
b) Financial feasibility only
c) Economic, technical, and social viability
d) Market demand and competition analysis

4. What are the key areas examined in a feasibility study?

a) Market analysis, organizational structure, and legal considerations
b) Marketing budget, employee salaries, and project timeline
c) Technical specifications, customer feedback, and supplier contracts
d) Cost estimates, revenue projections, and risk assessment

5. Which type of planning involves the government playing a dominant role in making
economic decisions?
a) Centralized planning
b) Decentralized planning
c) Indicative planning
d) Collaborative planning

6. What is the primary purpose of a pre-feasibility study?

a) To determine if a project is technically feasible
b) To assess the market demand for a proposed project
c) To evaluate the financial viability of a project
d) To identify potential risks and constraints

7. What is the main difference between a feasibility study and a business plan?
a) A feasibility study focuses on financial projections, while a business plan focuses on
market analysis.
b) A feasibility study is conducted before project implementation, while a business plan
is developed after project completion.
c) A feasibility study is used for internal decision-making, while a business plan is shared
with external stakeholders.
 d) A feasibility study evaluates project viability, while a business plan outlines detailed
strategies for project execution.

8. Which of the following is an example of an economic indicator?

a) Market share
b) Customer satisfaction rating
c) Unemployment rate
d) Employee turnover rate

9. What is the purpose of demand forecasting in a feasibility study?

a) To analyze competitors' pricing strategies
b) To estimate the project's return on investment
c) To assess the potential market demand for the product or service
d) To determine the project's technical requirements

10. What is the primary benefit of conducting a feasibility study?

a) Guaranteeing project success
b) Minimizing financial risks
c) Generating immediate revenue
d) Attracting potential investors

11. In a feasibility study, what does the term "viability" refer to?
a) The likelihood of achieving project objectives
b) The availability of financial resources
c) The market demand for the project's output
d) The project's compliance with legal regulations

12. What are the three major areas examined in a feasibility study?
a) Market issues, employee satisfaction, and technological advancements
b) Financial projections, customer testimonials, and operational efficiency
c) Market issues, organizational/technical issues, and financial issues
d) Cost estimates, project timeline, and stakeholder analysis

13. Which type of economic planning involves decision-making being decentralized to

regional or local authorities?
a) Centralized planning
b) Decentralized planning
c) Indicative planning
d) Collaborative planning

14. What is the purpose of risk assessment in a feasibility study?

a) To identify potential barriers to project implementation
b) To evaluate the project's marketing strategy
c) To determine the project's profitability
d) To estimate the project's return on investment
15. Which of the following is NOT a type of feasibility study?
a) Technical feasibility study
b) Economic feasibility study
c) Social media feasibility study
d) Operational feasibility study

16. What is the primary purpose of a feasibility study?

a) To develop a comprehensive business plan
b) To assess the practicality and viability of a proposed project
c) To conduct market research and gather customer feedback
d) To allocate resources and set project goals

17. Which of the following is NOT a component typically included in a feasibility study
report?
a) Market analysis
b) Technical analysis
c) Risk assessment
d) Employee training plan

18. What is the difference between a feasibility study and a business plan?
a) A feasibility study focuses on financial analysis, while a business plan focuses on
market research.
b) A feasibility study assesses project viability, while a business plan outlines detailed
strategies for project implementation.
c) A feasibility study is conducted before a project, while a business plan is developed
after project completion.
d) A feasibility study is primarily used for internal purposes, while a business plan is
shared with external stakeholders.

19. Which of the following is a key benefit of conducting a feasibility study?

a) Identifying potential risks and uncertainties
b) Providing a detailed marketing strategy
c) Guaranteeing project success
d) Eliminating the need for financial analysis

20. What are the three major areas examined in a feasibility study?
a) Legal issues, market demand, and financial projections
b) Organizational structure, operational processes, and resource allocation
c) Market issues, organizational/technical issues, and financial issues
d) Technical feasibility, economic growth, and environmental impact
General Questions:

Q1. What Is the Main Objective of a Feasibility Study?

Feasibility study helps decision makers to determine the success or failure of a proposed project
or investment. It evaluates the predicted cost and benefits of the proposed project.
Q2. What Are the Steps in a Feasibility Study?
The first step in a feasibility study is to conduct the primary analysis and create the projected
income statement. Followed by doing a market survey and accordingly planning business
operations. The last step is to create a balance sheet to review and analyze data. Based on your
analysis, you can decide whether to go or not go ahead with the proposed statement.
Q3. Who Conducts a Feasibility Study?
Feasibility study is done by the senior management of the organization. Sometimes, they take
help from mid-senior employees to complete the analysis in short span of time.
Q4. What Are the 5 Types of Feasibility?
The 5 types of feasibility study are Scheduling Feasibility, Operational Feasibility, Legal
Feasibility, Economic Feasibility, and Technical Feasibility.
Q5. Why is a Feasibility Study Important?
A feasibility study helps in identifying the financial, market and logistical challenges of a
proposed project. It is done by evaluating the estimated funds for the project and return of
investment.
Q6. When is the Feasibility Study Done?
The feasibility study is done before the business plan is created.
Q7. What is the Primary Purpose of Conducting a Feasibility Analysis?
The objective of feasibility study is to assess the financial viability of developed plan and
whether it will be successful or not.

Solved problems:
Powell Corporation, a large diversified manufacturer of aircraft components, is trying to
determine the initial investment required to replace an old machine with a new, more
sophisticated model. The machine’s purchase price is $380000 and an additional $20000 will be
necessary to install it. Both will be depreciated under MACRS using a 5-year recovery period.
The firm has found a buyer willing to pay $280000 for the present machine purchased for
$240000, 3 years ago . The firm expects that a $35000 increase in current assets and an $18000
increase in current liabilities will accompany the replacement. Both ordinary income and capital
gains are taxed at 40%.
Solution :
Book Value of Old Machine = $240,000 – (240,000* (20%+32%+19%)) = $69,600
Gain = $280,000-$69,600 = $210,400
Tax on Sale of Old asset = 40% x $210,400= 84,160