With emerging challenge from the opening of a new restaurant in Lancaster University, it is clear that there is need to have a good understanding of the market for the Chinese restaurant to remain the market dominant restaurant in the region. For this to become a possibility, the manager will need to have proper strategies that will work. To begin with, there will be required to have market segmentation. By definition, the terms market segmentation are used together to mean the division that is carried out on a market in such a way that the whole target population fits within one or more of these groups such that their needs are met through the services that are offered by the given organization (Market segmentation and Positioning 2009, p. 218). According to a report on Marketing-Segmentation/ Target Marketing/ Positioning (2010), it is argued that there is need to understand that even though market segmentation is a probable choice, this does not quite mean that the kind of choices that are reported will be likely to create value.
In this new challenge that is posed by the new entrant to the market, the manager will devise a way in which segmentation will be effected. To begin with, there will be the introduction of better price offers for the products which is more likely to retain the current customers while attracting new customers to the business. Being in the campus, it is more likely that the students can be quickly lured to remain with their old and trusted organization than move to the new entrant. Secondly, there will be improved advertisement techniques for which introduction of marketing mix will be a viable option too. Thirdly, calculated increase in the number of products offered by the restaurant will also help boost the morale of the students. Giving promotions is an added advantage that will be implemented from time to time to attract and retain customers. Chen and Hu (2010) argue that when the customer is given value for their money, they are likely to have satisfaction hence remain in the same organization.
As far as targeting is concerned, increasing the awareness that the management and the stuff of the only Chinese restaurant on students’ needs and desires as well as integrating it with the rich Chinese cultural heritage will be considered and introduced in moderation so that the students can keep up. In addition to this, there will be the introduction of weekend challenges where there will be a vast number of challenges that the students can engage in apart from their studies in an effort to provide students with an avenue where they can both socialize as well as relax from their busy schedules. This is a more customer-centric approach that is supported by Kaur and Sharma (2009, p. 575).
Market positioning is the process by which advertisers make use of the available platforms to convey information about their products to their current and potential customers in an effort to lure them to making purchase of their products (Marketing-Segmentation/ Target Marketing/ Positioning 2010). This will call for redesigning the restaurant arrangement in such a way that the combination of color, furniture, utensils and the directive billboards will be appealing people.
In doing all this, the main driving force is that the customers will experience reliability of the services, a shift of facility appearance to greatness, increased response to customer service giving the customers the much needed assurance to continue trusting the Restaurant due to an individualized attention to every customer that comes into the restaurant (Chen and Hu 2010, p. 537).