Kevin’s Noodle House Restaurant
Kevin’s Noodle house restaurant
To realize better profits, businesses have taken the direction ofidentifying a certain group, which they hope to serve and keep astheir mainstream customers, without generalizing the potentialclients. This group is what is known as a target market in business.The business decides to aim all their marketing efforts and theirmerchandize, with the intention of serving customer’s interests.Therefore, a well-defined target market is the foremost component toa business’ marketing strategy. In the restaurant industry,restaurant operators have identified target customers whom theyconcentrate all their efforts to serve and satisfy. In doing this,restaurants begin competing to keep the customers. In the long run,whoever who delivers the best services to the customer’ssatisfaction carries the day. This paper looks at target marketingand competition between Kevin’s Noodle House and San Tung ChineseRestaurant. The paper defines and identifies the target market, itimportance to the restaurant, their specific needs, and their valuesand facts. These help to explain how the restaurants serve theirtarget markets.
Kevin’s Noodle House (KNH) embarked on identifying its targetmarket before opening. Ferell & Hartline (2010) describe a targetmarket as not the preference of the population that one desires tovend to, but rather the portion of the market that is most likely tobuy from an entity. (KNH) target market is the Asian population inSan Francisco. Prior to its opening back in 1994, the owner had anambition of inaugurating a restaurant that would serve Vietnamesecuisine. Given this, the founder, alongside his wife and children,opened the restaurant in the principle of giving the customers ataste of “delicious authentic Vietnamese food with the efficientservice in a home-style environment” (Kevin Noodle House, 2015).The owners, therefore, set on serving the Asian population in SanFrancisco with Asian meals dominated by meals such as egg noodles,rice, seafood and Asian drinks.
Whileselecting the target market, the restaurant realistically defined thetype of people that would most likely buy the prepared meals. SanFrancisco has an Asian population of approximately one million people(US Census, 2015). Additionally, KNH had to gauge whether or not theAsian demographic in San Francisco worked and lived within a certainlength from the places they set up the restaurant’s branches. Theneed for this was to avoid losing them to other competitors in theAsian Food business in San Francisco. This was also imperative as itallowed the clienteles to support the Asian food concept. At the sametime, while selecting the Asian populace as the target market, therestaurant’s operations department made sure that they communicatedthe marketing strategy in a modus that attracted predominantly theAsian people, by using conduits or approaches that they couldunderstand. For instance, all their meals are advertised inVietnamese names. The company’s label itself is designed in Asianlanguages, with the main tagline “Pho Huyn Hiep,” whichdemonstrates the restaurant’s alignment to its target market.
Importanceof the Asian population to KNH’s business
The restaurant chose this specific target market for the main purposeof growing its business venture and creating a dynamic market niche.Defining the target market as they embarked on starting theirbusiness helped the owners to be in a position to deliverefficiently. In addition, by pursuing the Asian population in SanFrancisco, the owners managed to determine their business target andfurther pinpoint their needs and wants. The Asians who frequent therestaurant often leave behind suggestions for improvement. This helpsthe owners to improve on their concept and service delivery. By doingthis, the regular customers recommend other Asians to the restaurant,increasing the business’ customer base.
Thesize of the target market matters a lot. San Francisco Inlet expanseis among the urbanite areas with the highest Asian Population in theUnited States. With a populace of roughly a million individuals ofAsians origin, targeting them would help any business to increase itsprofits. Ferell & Hartline (2010) say that defining a targetmarket puts a business in a position of growing and even expandinginto new markets. This is because some small business owners confinethemselves to maintaining small operations for a decent but limitedincome. Given this, KNH’s target marketing was driven by thechallenge of reaching out to the Asian population and growing theirbusiness into a high-profit venture. The Asians in the city have apassion for taking meals that are prepared with their traditionalcultural concepts. This gives the restaurant an opportunity to growtheir business while attracting even the non-Asians to theirrestaurant.
Accordingto Kelso (2012), the restaurant business in America is shaped bydemographics and nutrition. Kelso says that the growing influence ofAsian and Hispanic population is among the leading demographics thatshape the industry’s direction. As such, by targeting the Asianpopulation, KNH places itself in a comfortable position of being inthe business’ right position. Finding loyal customers from theAsian population will help the restaurant to market its namenaturally within the city, a factor that is positive for theirbusiness growth.
Targetmarket’s specific needs
Each target market has its own needs, which have to be met. Thongyim,Mahasuweerachai & Leong (n.d) contend that the tremendous growthin ethnic restaurants in the United States imposes the need tounderstand the customers’ needs and preferences better. Despite thefact that the knowledge in this area is limited, there are a numberof studies that have been conducted to provide information regardingthe needs of the customers. These studies have also been conducted tohelp categorize the important attributes towards a particularrestaurant. According to Thonyim et al. (n.d.), food taste andfood quality are the most important factors that Asian customersconsider while selecting a restaurant. This, therefore, led to theconclusion that the fundamental successes for Asian restaurants werefood taste and service quality.
The Asian Population has a unique taste. They prefer the southeastdietetic culture of Asia, and which is unerringly what the restaurantuses for its meals. This cuisine traces its roots back to Thailand,Cambodia, Vietnam and Malaysia (asian-natio.org, 2015). The traditionputs prominence on aromatic and lightly prepared foods, which featurea tantalizing balance of nippy stir-frying and boiling, laterappended by discrete spices and seasonings. Citrus juices and herbssuch as mint and basil often back these meals. While cuisines fromother parts of Asia insist in soy sauce in a number of their meals,the Vietnamese cuisine, and a number of others in the neighboringcountries, uses fish sauce. Moreover, other substitutes such as lemongrass and galangal add the flavor to the food.
The following is a statement for the core values of the Asianpopulation:
Tradition: The target population values their tradition. In the food sector, they tend to prefer restaurants that prepare their food with strict adherence to the procedures and ingredients that are used back at their home country. According to Marcus (2013), despite the fact that the Asians have experienced a shift to Western diets, they still value their traditional styles of cooking. This is the reason why Asian-foods restaurants strive not to lose the Asian taste in their menu and delicacies.
Hospitality – The Asian people are known for their friendliness and hospitality in the hotel industry (Inglis & Kawana, 2012). They therefore expect the same whenever they are guests at any place. Given this, the leading restaurants always give priority to treating the guests in the friendliest manner. By consistently demonstrating that an establishment can welcome the guests and interact with them politely, the number of guests will continue increasing. This gives a business an upper competitive edge.
Figure 1: Facts and values
Competitor profiling is important in target market competition. KNH’smain rival as per its target market is the San Tung ChineseRestaurant. The restaurant is located on the same street as KNH, andoffer Asian cuisine, almost analogous to the one that KNH offers. Therestaurant opens every day, save for Wednesday, when it remainsclosed for general cleaning and other logistics. On “Mondays,Tuesdays, Thursdays, and Fridays,” the diner opens at 11 in themorning and closes at 9:30 in the evening while on weekends, it opensat 11:30 in the morning and closes at 9:30 in the evening (yelp.com,2015). The restaurant has delivery services and requests clientelesto begin making deliveries on Sundays at 11 in the morning. It offersgroup services and sells alcoholic drinks, primarily cocktails, andwine. The restaurant does not have a terrace but has parking space atthe street. It has no reservations and accepts credit cards as modeof payment. The restaurant’s price tag starts from $7. San TungChinese restaurant’s customers are mainly casually dressed whileits setting has a casual ambiance, and the noise level is lurid.
The restaurant’s main menu has noodles, Asian soups, seafood, riceand other Asian foods that are almost the same to the ones offered byKNH. According to their official website, their name is legendary fortheir dry chicken wings (santungchineserestaurant.com, 2015). Despitethe fact that they deny their dish does not sound like a typicalChinese fare, they state that it matches beautifully with theirdelicious chow mein and fried rice. This is the reason that itattracts a number of Asian customers in San Francisco. Additionally,the restaurant’s owners say that their professional chefs mix theAmerican comfort with Chinese cooking expertise to attract the Asianpopulation. The restaurant’s price range is around $10 and hasreceived a score of 71 out of 100 on customer’s health score. Theplace receives customers mainly over the weekends.
According to TM Capital (2010), the competitive landscape of therestaurant industry is broken down into different landscapes. Allthese major landscapes are based on the type of food services thatthe restaurants involved in the competition offer, as well as price.Given this, there are three main competitive landscapes in therestaurant business. The first one is fine dining, which is the mostexpensive. Upscale-casual restaurants follow this while the third iscasual services restaurant business. The other two landscapes arefamily dining and quick services landscape. KNH and its competitorfall under the quick services landscape. This landscape ischaracterized by fast foods and lack of specific pricing for thevalue of the meals.
This paper ascertains San Tung Chinese Restaurant as KNH’s maincompetitor. The main reason is that they share the same target marketand they are located on the same street in San Francisco. Given thatKNH deals primarily with Asian cuisine, it does not have to competewith most of the other fast casual restaurants located in the samearea. KNH’s operators strive to maintain their customers byimproving on their services. San Tung also does the same by ensuringthat the food quality and ambience is kept to standards. In order toattract more new customers, KNH invests in using original Vietnameseingredients, so as not to lose the taste that keeps its customerscoming back. The restaurant also values feedback in terms ofsuggestions and compliments from the customers. On the other hand,San Tung Chinese Restaurant endeavors to maintain the Asian theme interms of settings and operations. This helps the restaurant toidentify with their tradition.
The identification of a target market is an imperative aspect of anorganization as it embarks on realizing its business success factors.As suggested in the essay, Kevin Noodle and its main competitor, SanTung has identified the Asian population as their main target market.In this regards, the businesses have to design appropriate strategiesthat align to the target market’s preference and taste. Inaddition, Kevin Noodle must stay focused on the needs of its targetmarket to avoid losing the market to its competitor. In fact, theAsian population expects a certain level of service provision orvalue from the restaurant thus, it is the duty of Kevin Noodle todevelop a strategic approach that highlights the needs of its targetpopulation. As discussed throughout the paper, it is imperative forany business to carry out a comprehensive study on the needs of itstarget market to ensure provision of excellent experience as well asthe continuity of business.
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Ferrell, O.C. & Hartline, M. (2010). Marketing strategy.Mason, OH: Cengage Learning.
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Inglis, K., & Kawana, M.(2012). AsianBar and Restaurant Design.New York: Tuttle Publishing.Bottomof Form
Kelso, A. (16 January 2012). Restaurant industry’s 2012 trendsshaped by demographics, nutrition. Retrieved on 6 March 2015from:http://www.fastcasual.com/articles/restaurant-industrys-2012-trends-shaped-by-demographics-nutrition/
Marcus, J. B.(2013). CulinaryNutrition: The Science and Practice of Healthy Cooking.San Diego: Elsevier Science.
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Thongyim, P., Mahassuweerachai, P. & Leong, J. (n.d). Segmentingthe ethnic restaurant market: A test of the moderating effect ofrestaurant type on attributes/Satisfaction relationship. Retrievedon 6 March 2015 from:http://scholarworks.umass.edu/cgi/viewcontent.cgi?article=1118&context=gradconf_hospitality
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US Census. (2015). San Francisco County, California. Retrievedon 6 March 2015 from:http://quickfacts.census.gov/qfd/states/06/06075.html
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