Casual dining chain being squeezed by national and local competitors

Challenge

A casual dining restaurant chain with a limited menu and no national advertising budget was losing share to local specialty restaurants perceived as more authentic and casual dining chain competitors with larger, diversified menus and higher ad spend. The brand wanted to understand the demographics, use occasions, and preferences of loyal customers in order to target new customers with similar characteristics through direct mail and social media marketing.

Action

Perceptual mapping was used to plot a two-dimensional map of the brand and its competitors aligned by perceived advantages articulated by casual dining consumers. Results revealed that the brand was positioned more closely to full menu national chains than to local specialty restaurants. Segmentation analysis revealed two core segments of casual dining customers (young families and older couples and groups) that would be most receptive to marketing and retention efforts by the brand. 

Result

Rather than try to compete with full menu national brands, the focal brand focused on the authenticity and quality of their menu items. They added a small number of additional items to placate brand rejectors in families and groups. The brand increased sales by developing marketing collateral targeted to the key segments identified in the research that focused on brand authenticity, delivered in a unpretentious atmosphere, and at a good price.