Analysis Of The Boiling Crab

1058 Words3 Pages

The location is one of the most critical factors to analyze thoroughly because it helps predict whether the sales of the choosing location will be good or not? Although the Boiling Crab is in the growth stage, it still has to focus on new locations that the owner plan to extend to these areas. As I mentioned in the introduction, the owner plans to open the Boiling Crab in four new locations soon.
Referring to the assignment2, the benchmarking of successful location may guide the owner of the Boiling Crab to select the location with the same group of customers. This is a very logical way to use without the primary research of people in each area directly. There are two locations, Rosemead and Duarte, that I choose in the assignment 2. However, …show more content…

However, the Boiling Crab has already penetrated the market in California with the proper level of price. The restaurant business cannot charge the price far more different than the others because in the same level of restaurant, the clients will focus on the range of price before choosing it. Moreover, the Boiling Crab is the seafood, so the market price of seafood, such as shrimp, lobster, crab is very fluctuate depended on how difficult to find each item at that time. As you can see from the Boiling Crab menu, these items will be charged according to the market price at that time. Referring to the appendix 1, I compare price of food from many restaurants with the same kind of food, but it turns out that the level of price is pretty much the same between the Boiling Crab and the Kickin’crab.
Therefore, I think the Boiling Crab applies the cost based pricing strategy with the comparing of market price of the same kind of business as well. The Boiling Crab passes through the penetration process; therefore, it has to maintain the same level of price by reducing the cost of food and others or increases a few percentage of price in menu every year. A few increasing does not draw the attention from the customer, but the huge increasing will draw more attention from …show more content…

It still has to launch some sales promotion to keep the existing customers and attract the new customers to try this kind of food. Therefore, the Boiling Crab should stimulate more sales by launching the periodic promotion. For example, every $50 gets five percent discount or free Cajun fired. This promotion may stimulate customers to eat up to $50 because we have to pay more than $50-60 with the number of people more than 3. The promotion can be modified based on each location. In the U.S. market for the restaurant, Yelp is the mandatory choice to draw attention of local people or people living in U.S. more than 1-3 months because whenever people travel to each location in U.S., they have a tendency to look for restaurants from Yelp. Therefore, the Boiling Crab may launch some promotion to encourage customers to check-in and review in each location, so the highest review will push the name of restaurant in the top rank in that location. The owner may offer free soda for each review. Moreover, Twitter, Facebook, and Instagram are the next choices to use to advertise the Boiling Crab because these options are quite popular for U.S. and other countries, like Thailand, Brazil, and Germany. These options help increase the customers both from local and foreigner. The advertising in the social networks is very

More about Analysis Of The Boiling Crab

Open Document