Table of Contents
Evaluation of the current market environment
Alternative strategies proposition.
Implementation and contingency plan.
The trend of opening restaurants in Dubai has drawn criticism from the market due to the potential risk of oversupply. The problem is that employees are usually home standard. The culture of expatriates in Dubai has eased the pressure on activists but has done little to minimize the training and selection annoyance. There are so many cultures and civic functions in Dubai's economy as well as several complex factors that contribute to the formation of industry (Grünig and Kühn 2015).
Dubai is one of the major tourist destinations in the world, attracting 14 million tourists by 2015. It aims to attract 200 million tourists by 2020. Dubai has become an integral part of the tourism and services market. Dubai’s seaside restaurants share the same style - more than 7,500 restaurants are listed on the website, like Zomato. However, these numbers are not just due to the increase in the number of tourists. Food is also a form of socialization for the local people. For this reason, many international restaurant chains are opening stores across the Middle East (Jogaratnam 2017).
Considered as a gateway to the West, the UAE has become a hub of trade and commerce and the presence of almost all world-class organizations is increasingly earning expatriates. The UAE includes seven well-established emirates, such as Dubai, Abu Dhabi, and Ajman, Sharjah, Ras al-Khaimah, Fujairah, and Umm al-Quwain. Those who live in the emirate often travel for other purposes. More than 80 per cent of the total UAE population are expatriate population and more than 50 per cent of its population are from South Asia (Terhorst and Erkuş-Öztürk, 2015).
With the “Diversification Pan” in place, Dubai Expo 2020 is approaching and the hospitality and restaurant industry will be at the centre of future economic planning and change, two things are happening:
The effects of these two effects are simple; this is problematic for restaurants to survive in the market because of cannibalization. The diversity here is different from the competition. Until the competition intensifies until the whole industry begins to suffer significant losses among its customers, this is called nationalization. The restaurants in the UAE attract many investors and entrepreneurs because of their unique position in the changing face of the economy. Problems and challenges in the Moshi restaurant are increasing due to increasing competition (He et al. 2019).
How to handle the competition in the UAE
To deal with this challenge and issue in Moshi restaurant, let’s make simpler it a slight fast. In its most basic terms, many problems mean many restaurants are affected by this increase while increasing their customer base because the hosts of the restaurants reduce personal profits. Now, this restaurant must shift its focus to customers. No customer is spending, just using it in different places. So, the solution to the problem is not just to get new customers, but to retain old customers.
Moshi provides a combination of products and services. The food served is part of the overall experience that intends to provide them to the customers. There is a tough competition when some steps need to be taken which means food should be taken. Here are a few:
Customers need to be able to identify and differentiate between them appropriately. The following strategies will be adopted according to the overall product strategy:
The food items being offered will be in varying quantities that will suit the determination of the consumers. Also, a certain meal in the culture of Emirate must be served to several people. This restaurant will offer different amounts to make sure the form is acceptable.
The product or feature of the food item will present some indications of great success. All features will be remembered to enhance customer value. Here are some important features of all food items:
The food served will include the following qualities. This is the standard of performance and the standard of conference
The goal of Moshi is to create a position that represents superiority and excellence. This means that special emphasis should be placed on how they present dishes. It will help to create an aesthetic concept. The theme of the restaurant is culture. Therefore, the design must fit into the local culture (Lasek et al. 2016).
Packaging will not be required for dining customers. Emphasis on the packaging would be ensured for takeaway customers. The design, quality, and form are not affected. It may require additional costs because packaging materials can be expensive. However, this does not mean that the packaging will not be used as a brand strategy.
The nature of the business requires no more labels than the presence of Arabic spices for sale. Because there are special food boxes here, they will have small labels regarding the ingredients as well as a small advertisement for the restaurant. Therefore, the label will be used to assist the marketing process (Jalilvand et al. 2017).
The owner of Moshi will link the effect of ingredient branding to its product strategy. The awareness of the ingredients used in food is growing. The use of organic materials can have a significant impact on the development of proposed food products.
This restaurant is also planning to take the co-branding. Besides, this will help Moshi develop a strong brand image. There are plans to use organic products at the Dubai Mall to promote the business. This will benefit both brands in the future.
Price is often cited as an important goal of buyer choice. At the same time price can be used to develop strong brand equity but if it is not applied properly it can affect other customers. So, it is important that they not only reach their goal but also help in achieving the financial goal of Moshi. With the advancement in the age of technology and the internet, consumers are looking for new ways to compare prices.
The steps the business need to take to develop a pricing strategy are as follows:
Step 1: Select a pricing objective: Maximum current profit
The branding of Moshi is to make a solid growing food trend. Business does not expect difficulties in life. The company expects to make a profit even in the most adverse circumstances. So, the goal is to make the most profit.
Step 2: Set the demand
The demands will be counted using price experiments, customer surveys, and other statistical methods. Besides, the price sensitivity is low because the product will lead to high quality, exclusivity, and status. So, the determination of the demand gives Moshi a real perception of the level of marketing objectives that this restaurant can reach (Jogaratnam 2018).
Step 3: Estimating cost
The cost will be forecast. There is a strong understanding of the cost process, such as variables, fixed costs, etc.
Step 4: Analyse competitors’ prices, costs, and offers
Most competitors compared to Moshi when the market is lower than profiles. High competition can be expected. The goal is to make the product or service more price-oriented, but the price of the competitors is also very important. It is an internet where customers can easily compare prices.
Step 5: Selecting the pricing method and Perceived Value pricing
The purpose of business is to produce positive quality-based services and products. Therefore, for the price method, the perceived value in each direction will be evaluated. Marketing communication will help Moshi realize the values they feel and ultimately help them generate revenue. The markets where it is trading are not as price-sensitive to other areas because the offering of Moshi falls under the special products that are less vulnerable to price factor (Al Qaydi 2016).
social media and other internet media are becoming increasingly popular, particularly in the Arab states because this region is adapting the technology quickly. Some strategies may not be enough to succeed. But promotional designs combine with social media and other factors to provide more efficient and positive results.
As new products were developed in the case of Moshi, it became a necessary task to meet the constant needs of customers who knew the style and fashion of the world market. Here are some different strategies:
The suggestions would be followed:
The terms strategy and tactics are varied, and they are frequently confused as same.
There are various strategies such as mobile and media strategies as well as customer-related tactics and strategies must be such to support the strategies.
Small effort is laid on positioning and differentiation of the service or product
The product must be positioned well adequate in the thoughts of the customer and differentiated.
No proper coordination
There would be appropriate coordination among the staff of the restaurants and proper consideration should be paid.
Confusion among the buyers and finally gets to lose the customers
Consumers ought to be given proper information about the product. It would be made clear about their misunderstanding.
The most important part of a marketing plan is to reach and understand the goals. The presentations and offerings of services that reflect the life experience will attract customers to visit the restaurant. It will provide a way for cultural insight. Moreover, the tourist and people who know very little about culture can also very attentive to understand the culture of the UAE. This approach will help to navigate and change the business strategy so that the plan can be tracked and organizational resources are not wasted. This is what Moshi needs to reach out to them and they will succeed if they can execute their plan efficiently.
Al Qaydi, S., 2016. The status and prospects for agriculture in the United Arab Emirates (UAE) and their potential to contribute to food security. Journal of Basic and Applied Sciences, 12, pp.155-163.
Fathelrahman, E., and Basarir, A., 2018. Use of Social Media to Enhance Consumers' Options for Food Quality in the United Arab Emirates (UAE). Urban Science, 2(3), p.70.
Grünig, R., and Kühn, R., 2015. Strategy Planning Process. In The Strategy Planning Process (pp. 41-52). Springer, Berlin, Heidelberg.
He, Z., Han, G., Cheng, T.C.E., Fan, B. and Dong, J., 2019. Evolutionary food quality and location strategies for restaurants in competitive online-to-offline food ordering and delivery markets: An agent-based approach. International Journal of Production Economics, 215, pp.61-72.
Jalilvand, M.R., Salimipour, S., Elyasi, M., and Mohammadi, M., 2017. Factors influencing word of mouth behaviour in the restaurant industry. Marketing Intelligence & Planning.
Jogaratnam, G., 2017. How organizational culture influences market orientation and business performance in the restaurant industry. Journal of Hospitality and Tourism Management, 31, pp.211-219.
Jogaratnam, G., 2017. The effect of market orientation, entrepreneurial orientation, and human capital on positional advantage: Evidence from the restaurant industry. International Journal of Hospitality Management, 60, pp.104-113.
Jogaratnam, G., 2018. Human capital, organizational orientations, and performance: Evidence from the restaurant industry. International Journal of Hospitality & Tourism Administration, 19(4), pp.416-439.
Lasek, A., Cercone, N., and Saunders, J., 2016. Restaurant sales and customer demand forecasting: Literature survey and categorization of methods. In Smart City 360° (pp. 479-491). Springer, Cham.
Terhorst, P., and Erkuş-Öztürk, H., 2015. Urban tourism and spatial segmentation in the field of restaurants: the case of Amsterdam. International Journal of Culture, Tourism, and Hospitality Research.
Vij, M., and Verma, A., 2016. The Rise of Fujairah: An Emerging Destination of the United Arab Emirates (UAE). International Journal of Excellence in Tourism, Hospitality, and Catering, 364(3856), pp.1-10.
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