Thomas Ardron

MSPC

Sante Fe Case Study 1

Before developing the survey and before conducting any research into themselves, the
restauranteurs must first pay attention to the market that they are in. This can often be
understood using the marketing mix and the ‘Four P’s’: Product, Place, Price and Promotion.
According to their own plan for the restaurant, Sante Fe Grill would fall into the upper left of
the perceptual map; that is, high price and high quality. Whilst this is where they would like
to be, the perceptual map is created by consumers and not business-owners. The map for the
Mexican-restaurant market would look like this:
High Quality

Sante Fe
Jose’s Chipotle

High Price Low Price

Taco Bell
Low Quality

The marketing mix, to some extent, can show the restaurant the type of product they need to
be trying to achieve (in terms of quality), and the price that they should be charging. From the
above mix, we can see that both Chipotle and Taco Bell fall into the low-price half of the mix
but differ in terms of their perceived quality. This can be valuable information to Sante Fe,
considering one of their primary goals is fresh food and fresh ingredients. This is the major
difference in the perception of Taco Bell compared to Chipotle. Chipotle show customers
how fresh their food is by having it displayed in front of them, whilst the Taco Bell processes
fall somewhat behind closed doors. Whilst the prices of Chipotle and Sante Fe aren’t aligned
(generally accepted when considering wait-staff, cleaning costs etc. associated with a dining
room as opposed to “fast food.”), the freshness of ingredients and thus the perceived quality
are exactly what Sante Fe is trying to achieve.
The questions that need to be answered with respect to price are very important for
Sante Fe. They must understand if their product is worth the price they are charging. Using
Jose’s menu as a guide to reasonable pricing is an option. Whilst they should be careful not to
exactly imitate the prices of their competitor (variety is valuable), they should use Jose’s
menu as a rough guide. When it comes to the product, Sante Fe, must understand whether
customers are recognizing the freshness of their food. Awareness of their fresh product can
be improved through advertising, as well as improved cooking. After all, fresh product is
only a selling point if it served in a competent manner.
Therefore, we know where Sante Fe falls in terms of product and price. The other two
P’s, place and promotion, aren’t as easy to quantify. Place refers to the physical location, as
well as the look of the restaurant, the layout and overall image associated with business. For
this, Santa Fe may want to consider how they appear as a storefront. Questions that should be
asked include, but are not limited to:
Does the restaurant appear authentic? Will people see it and know that it is fresh, Mexican
food?
Is the restaurant clean? Will customers, current and potential, believe the restaurant is
hygienic?
Does the exterior look tacky, or messy? Will clientele be put off by over-the-top gimmicks,
undermining the fresh, clean authentic feel the two owners are going for?
Why is Jose’s, on the west-side of the mall attracting more consumers than Sante Fe, on the
east side of the mall? Can this be changed?

Each of these questions can bring up answers that may explain the struggle in competing with
Jose’s for customers. If the restaurant does not appear as it is advertised, i.e., tidy, fresh,
clean, new, this will have an adverse effect on community relations, betraying the trust of
customers can be detrimental to a business. The restaurant is attempting to be a proverbial
“breath of fresh air,” in the area and as such must ensure they are appearing, aesthetically, in
line with their mission and business plan. A cluttered, colorful layout and exterior, may be
enough to undermine their desire to be seen as they wish to be.
Considering the physical location of the restaurant is also important. If the east side of the
mall is genuinely much less visited that the west, they must consider a plan to pull customers
towards their end of the mall. This is something that should have been considered before
purchasing their plot, but it is not too late. The restauranteurs can use marketing and
promotion to attract customers towards their end of the mall; signs, promoters and other
advertisements are all proven ways to increase awareness.
Promotion refers to marketing tactics used by the business. In the case of Santa Fe,
the business concept includes “cutting-edge advertising and marketing strategies.” They must
be careful to not be wasteful. Whilst “cutting-edge advertising” sounds like a great idea, it
can be expensive, and in marketing, expenditure isn’t always proportional to results. It is easy
to throw lots of money at advertising, but if it not reaching the right people, or is sending the
wrong message, it has the potential to cripple a startup or any business.
Sante Fe Grill is still considered to be a new business. Whilst, physically, they have
been present in the mall for eighteen months, the owners are relatively inexperienced and
have yet to fully understand the industry that they have entered. There are several ways to go
about collecting data to help them to improve their business. Surveying their potential and
current clientele is a method that is often used and is often useful. Taking this route though,
does mean that they survey must be comprehensive and detailed in order to gain the
information that can be valuable to the restaurant owners. The survey must also be conducted
in a manner that pays attention to the restaurant’s ethical framework. To elaborate, if they
want to be perceived as a family-friendly, fun business; demanding clients to fill in surveys
will not help this image, it will in fact hinder it. The survey must be presented as optional and
should be highlighted as an opportunity for customers to improve their own experiences at the
restaurant. Whilst the restaurant must be careful not to overstep the boundary between
business and client, they also must be sure to receive a large amount of completed surveys so
that they can be sure the information is accurate.
Whilst conducting their surveys they must be careful to remain ethical and consider
not only how they are using the data they are collecting, but also, the way in which it is being
collected. Surveying employees can be a good way of learning about the working
environment, but they should ensure that the information is confidential, so as to get truthful
responses.
According to the owners “the new restaurant concept was based upon the freshest
ingredients, complemented by a festive atmosphere, friendly service, and cutting-edge
advertising and marketing strategies.” These are the aspects of the business that the owners of
Sante Fe should be focussing on in the main part, anything else would be considered a bonus.
Providing that they can maintain and hit these initial targets they should be okay, time will
tell as to whether or not their concept was a good idea or a bad one.