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Bill and Jane have owned and operated a café in a busy restaurant area for many years - HSC - SSCE Business Studies - Question 22 - 2014 - Paper 1
Question 22
Bill and Jane have owned and operated a café in a busy restaurant area for many years. They specialise in fast healthy food that is popular with 18–30 year-olds. Rec... show full transcript
Worked Solution & Example Answer:Bill and Jane have owned and operated a café in a busy restaurant area for many years - HSC - SSCE Business Studies - Question 22 - 2014 - Paper 1
Step 1
Outline TWO strengths of the café.
Answer
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Experienced Operators: Bill and Jane have many years of experience in the café industry, which equips them with the knowledge and skills necessary to run a successful business. Their expertise allows them to optimize operations, manage staff efficiently, and respond to customer needs effectively.
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Unique Product Offering: The café specializes in fast healthy food that appeals to a specific demographic, particularly health-conscious 18-30 year-olds. This unique selling proposition differentiates them from competitors and attracts a loyal customer base.
Step 2
Outline TWO opportunities for the café.
Answer
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Trend Towards Healthier Eating: As consumers increasingly seek healthier dining options, Bill and Jane's focus on fast healthy food positions them well to capitalize on this trend. They could expand their menu or market their offerings more aggressively to attract health-conscious patrons.
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Growing Population: The recent opening of a multinational franchise suggests a population increase in the area. This influx can lead to a higher demand for food services, presenting an opportunity for Bill and Jane to increase sales and market their café to a broader audience.
Step 3
Discuss ONE marketing strategy that Bill and Jane could use to respond to the threat posed by the opening of the multinational franchise in the area.
Answer
One effective marketing strategy is to develop a strong brand identity that emphasizes the café’s commitment to quality and personalized service. By highlighting their unique menu offerings and the personal touch they provide compared to the multinational franchise, they can differentiate themselves in the market.
Additionally, utilizing social media platforms to engage directly with their target audience and promote their healthy food options can enhance brand visibility. Hosting community events or loyalty programs can also foster customer loyalty and encourage repeat visits.
This approach not only helps in countering the competition but also builds a strong community relationship, making the café a preferred choice over the franchise.