I know Red Crab especially the one in Greenbelt, but I have never been there; and probably never will. Too many people are giving compliments to the restaurant for serving great food, but from the time that I was in Makati working, it never occurred to me to have a meal there. It was a little over my budget and I’d rather spend my money elsewhere.
Relevant
Facts
·
From an “inspiration” from his mom,
Raymond Magdaluyo was able to establish restaurants with different concepts
under the Red Crab Group.
·
There was a paradigm shift for the
group in terms of the concepts of their restaurants as it initially started
“without a personality”.
·
When the restaurant’s operation went
bad, the owner decided to reposition themselves by focusing on what defined the
restaurant and its local followers. Wherein Raymond became confused as to what
and how they should go about rebranding.
·
After the market research, Raymond
knew the age bracket they cater to and adjust it accordingly.
·
Repositioning of the restaurant has
led to the change in menu and understanding that more than becoming a Filipino
restaurant, he wanted to be identified as a seafood restaurant. An
international flavor.
·
It was a seafood restaurant, selling
the experience with a festive atmosphere.
·
The Red Crab Group took a risk and
was able to identify the market it wanted to tap. And created an opportunity
for them to venture in. It segmented the market in three categories:
micro-market; food type; and, motivational group or the influences it received.
Along with the segmentation, it categorized the pricing strategy for each
restaurant concept.
·
Just like other restaurants or
companies it diversified the product line, which is big breakfast, something
beyond the usual seafood restaurant conceptualized.
The
story of Red Crab Group can be regarded as a success story, with a trend of an
initial boom, then slowly decrease in the market share, and eventually reinvent
itself and gain back what they have lost. This pattern has allowed owners to
look for other means to increase profitability and gain advantage in market
share.
Few
of the strengths that were seen in the case were: the restaurant knew the
direction it is heading and use that to its advantage. Second, the different
concepts of the restaurants caters to different market or segments in the
market.
The
weakness of the company is that it placed itself too much of the high end side
that some of the age bracket it targets would not normally spend money on food
such as these. The price and location also intimidates new young professionals.
I myself am intimidated going in.
Meanwhile,
there are many possibilities of the concept they have with the restaurants. One
concept they can create is to make a fast food shack of seafood that will cater
to the busy life of the young professionals near them; I am considering the
locations Alabang, Greenbelt and Tomas Morato. This can invite more seafood enthusiasts
who were intimidated by the price and location of their restaurants.
On
the other hand, because of the perception of “high-end” restaurant, it can
drive away potential customers because there are a variety of choices left for
the customer. On a lower price range but still satisfying. This is either a
substitute of restaurant or product or a threat of new restaurants with almost
the same concept.
Alternatives
Entering into a totally new business
is a risk. And in any business you really need to take a bold step and not just
test the waters but to really explore it more and more. Heaven ‘n Eggs can help
other new customers enjoy the typical type of foods eaten during breakfast.
·
Red Crab Group can open a new
concept of a restaurant, in line with the seafood restaurant concept, but
priced lower and will serve like the typical fast food.
·
Offer a different concept of
restaurant but will also cater to foods offered at a lower price.
·
Attract young professionals,
especially in the Makati area to boost the brand name. And make the brand
really strong to increase profit.
Decision
and Action
The
decision of the top management will vary depending on the availability of
resources and the potential market. There will always be a need for restaurants
because food is a necessity more than a want. However, eating on a pricey
restaurant is reserve on a special occasion. Although, Red Crab Group has
already segmented their market in three categories, it needs to do it more
specific. For example, one category can be the specific age brackets, they can
also estimate the financial bracket of customers to identify the pricing
strategy of the group, or do more promotional campaigns that could help other
people understand what the brand is and what is expected from the brand.
Sincerely,
Athens S. Cruz
+63 916-7056719
