Hero, Treasure, Dragon & Quest

Frame Component SBDC Client
Hero (The quality of the cuisine supplied at
the restaurant is held to a very high
standard, ensuring that each customer is
given the same level of service and
satisfaction regardless of whatever dish they
order).

Customer

Treasure (The goal is to deliver a high-
quality, outstanding food service to satisfy
the client’s requirements completely. It is
anticipated that the restaurant’s revenue will
rise by fifty percent, increasing the amount
of capital available to the company).

Company in charge of supply chains

Dragon (Nevertheless, some problems will
ensure that the target has not been fulfilled.
One of these problems is the reduction in
the inventory, which harms the business and
ultimately results in losses).

The quality Assurance Department

Quest (As a result, the overall question that
needs to be asked is, How can the inventory
be preserved or stored in such a way that it
would still match the quality criteria of the
clients, and is this a viable alternative?

Storage Manager

3

Why Map

Why are
the Chilean
company’s
profits
declining?

They are not
exploring
new markets

They have
not
diversified
their menu

There exits
high cost of
raw
materials.
Fixed
operational
Units

High cost in
the existing
menu
Less marketing
in terms of
promotion and
advertisements

Low customer
base

High cost of
expansion

Because raw
materials cost to
transport
Because the
retailers must
fix the prices as
per the cost of
production

4

How map

Hypothesis

1. There should be a budget-friendly menu that meets customer needs.
2. Take-away counters are required for returning customers.
3. Sub-branding of the available products is crucial.
   Criteria Matrix

Long-Term
Operating

Capital
needed

Ability to
fully solve

Time
required

Total

How to increase
Chilean revenue

Explore new
markets

Diversify their
menu with new
products

Explore new sources of
raw materials
Intensify
marketing
Open new
stores/new
modes of
operations

Subbrand
products to suit
diverse
customers’
needs

New stores and
operational modes
will increase the
customer base

Using online
marketing tools
that are cheaper
and more
effective

Adjusting prices
proportional to the
new menu

Reducing
transportation
costs in line
with new
sources of raw
materials

5

Cost the problem

Hypothesis Weight (for
instance, 50)

Weight (for
example, 40)

Weight (for
example, 30)

Hypothesis
one (There
should be a
budget-
friendly
menu that
meets
customer
needs).

40 percent 80 percent 96 percent

85 percent

65 percent
(Rank
number one)

Hypothesis
Two (Take-
away
counters are
required for
returning
customers).

45 percent 55 percent 30 percent

45 percent

45 percent (
rank number
two)

Hypothesis
three (Sub-
branding of
the available
products is
crucial).

75 percent

15 percent 35 percent 25 percent Forty-two
percent
(Rank
number
three).

Reflection

According to the evaluation made using the criteria matrix, the best course of action
for the Chilean food company would be to replace its current menu with a more affordable
one. This includes offering its customers a wide range of alternatives at a reasonable price,
including traditional products and customer services (Liu et al., 2019). A pricing strategy is
critical to a successful small business marketing plan. A company’s reputation and the
development of a particular clientele are greatly influenced by the pricing structure of goods
and services and how it compares to the pricing strategies of rivals and consumer
expectations. Companies have a variety of alternatives in their price toolkit that they can use
to support their marketing goals.

6
The quality of the company’s products and services and its pricing strategy will
ultimately determine whether the firm can convert new customers into devoted repeat buyers.
This is true even though advertising and promotions can successfully bring in new customers
and spread the word about the company’s products (Campos. Et al., 2020). Pricing may aid in
establishing and upholding the perception of excellence in the goods and services a business
produces and sales. Premium quality is typically connected with higher price points, whereas
budget quality is frequently associated with lower prices in the same category.
Studying and putting into action a newly presented menu is required to put the
proposed solutions for the company’s financial crisis into action. This new menu will include
the same products and items as the original but will focus more on their fundamental
qualities. It is possible that providing coffee beans purchased from the new distributors at
affordable prices would help make the product less expensive. Alternatively, it can be that the
product reduces the number of flavors and other cup accessories it offers.
Additionally, purchasing coffee beans from new distributors at affordable will also
determine the pricing strategies that are fundamental in solving the company’s financial
crisis. Pricing policies are developed to achieve particular goals. Profit and revenue
maximization come first and second (Feng et al., 2019). Setting prices as high as possible to
boost short-term profits at the expense of long-term volume is known as profit maximization.
Setting prices as low as possible to increase sales volume at the sacrifice of immediate profits
is known as revenue and volume maximization. Prices can also be chosen to promote a
reputation for quality leadership in the industry (Borsellino et al., 2020). The specialty-
product profit model employs partial cost recovery, a pricing technique in which inferior
products are sold at a minor loss. In contrast, superior specialist models are offered at a
premium. A company’s priority may be survival in some circumstances, and a reasonable
price plan might help it.

7
Similarly, the menu may initially undergo test runs, originally referred to as a beta
menu, before being launched and refined throughout the entire chain in the region. If the facts
cannot support the first hypothesis, it is crucial to consider the second hypothesis. Installing
take-away rounds or stands is an innovative strategy to increase one’s financial holdings. In
contrast to food services, the rent is lower, and the services often do not exist. It would be
handy for clients with busy lives and would save them time when they are awaiting
incomplete items. Although such an approach would not yield significant price reductions, it
would be beneficial in reducing the costs incurred during a global economic recession.

8

References

Borsellino, V., Schimmenti, E., & El Bilali, H. (2020). Agri-food markets towards
sustainable patterns. Sustainability, 12(6), 2193.
Campos, D. A., Gómez-García, R., Vilas-Boas, A. A., Madureira, A. R., & Pintado, M. M.
(2020). Management of industrial fruit by-products—a case study on circular
economy approach. Molecules, 25(2), 320.
Feng, S., Hu, X., Yang, A., & Liu, J. (2019). Pricing strategy for new products with
presales. Mathematical Problems in Engineering.
https://doi.org/10.1155/2019/1287968
Liu, J., Zhai, X., & Chen, L. (2019). Optimal pricing strategy under trade-in program in the
presence of strategic consumers. Omega, 84, 1-17.