Marketing strategies

Marketing Strategies
Q 1
The market development criterion is ideal for revenue generation. The management introduces Franchisees in four international markets-Canada, Hong Kong, Mexico, and Taiwan, which are the leading profitable business communities. The marketing team resolves on a market development model based on success factors for expansion.
Ruth’s in a steak house (though offers some fish items in the menu) and thus, the primary consumption of Ruth Chris is Beefeaters. The world resource conducted a research in the year 2002 and ascertained that 17 countries with a relatively higher per capita annual income enjoyed beef (93. 5 Kgs) (Kupetz & Apont, 2006).
Next success opportunity is the legality of meat importation to U. S. Apparently, Ruth Chris restaurant model only use USDA Prime beef and export them to target markets in different countries. The marketing group is currently finding favor in Australia market. Customers from Australia market share a high standard of the US thus becoming a potential market for Ruth’s restaurant.
The highly populated urban area serves a better place for business prosperity. High population creates a pool of potential buyers of beef. Disposable income of an extremely populated area facilitates growth and expansion of the market. The marketing team has to ascertain the rate of responsiveness of people towards beef eating.
Other criteria Ruth should have considered in conquering new markets include pricing strategies. Affordable and attractive prices may help in hedging out competitors. Embracing product differentiation by improving features, implementing innovations during the manufacturing process will assist in penetrating new markets.
Q 2
The riskiest option is Diversification model. Diversification model involves new kind of restaurants in new markets (Kupetz & Apont, 2006). A new market has various challenges as the products may fail to diffuse. Customers who express utmost loyalty to specific brands may not quickly adapt to new products introduced in new markets. There are series of a cost associated with the development of new products such as promotion and other overhead fees. Initiating a new product in the green market is likely to fail because of competition and more costs.
The most risk averse is penetration model where existing products sell in the same market. Products have loyal buyers thus a reduction of costs such as promotional fees and other marketing related costs. Suppliers have better knowledge of the market, and a probability of success is paramount in this model.
Q 3
Penetration is ideal for attracting more customers in the same market. More restaurants bring services closer to clients who are already consumers of the product. An expansion would attract more customers to the same locality. Market development model (new market, same product) offers the best opportunity to expand the total number of company customers. New markets would increase the number of clients to the Ruth’s Chris restaurant. When the new market accepts the product, it will raise the general consumers of the products.
Q 4
Other countries or some new form of restaurant Modifications such as price adjustment and branding would help to capture new markets. The product differentiation would work both in both new markets and in existing ones.
Q 5
Marketing mix helps the management to allocate resources across the portfolio brands. Firms need to analyses competitors performance and strategies on how to compete with to compete them. A new firm in the market has to set most attractive prices to ‘ poach’ customers from other brands. Conducting marketing intelligence has a positive effect on understanding the new environment that in turn reduces a risk associated with an introduction of a new product in the competitive market.
References
Kupetz, A. H., & Apont, I. (2006). Ruth’s Chris: The High Stakes of International Expansion. University of Western Ontario, Richard Ivey School of Business.