STICKS KEBOB SHOP

1. How do people choose what fast-food restaurant to visit?

People choose what fast-food restaurant to visit based on factors1 like:
 Variety of menu options. • Filling but nutritious food • Well-priced selections
 Fast deliveries • Friendly staff • Food taste and satisfaction • Pleasant
ambiance • Part of the community • Consistency and reliability • Convenient
place to eat.
Of the above factors, healthier/nutritious food, products made locally and fast delivery
appears to be the lead contender.
2. Based on the survey, how are customers and non-customers different?
Customers tend to appreciate Sticks because it offers filling yet nutritious/healthy food
and the Profession
 Income
 Personal activities or hobbies
 Importance of factors (listed as solution for question 1) when visiting a
restaurant.
 Whether respondents have eaten at Sticks in the past three months: This will
help differentiate between frequent customers, sporadic customers (potential
chances of converting them to frequent customers through promotions and other
marketing initiatives) and non-customers.
 In the last month, how often has the customer visited Sticks for the following
occasion (weekday lunch, weekday dinner, weekend lunch, etc.).
 Survey question 16 that focuses on customer rating on purchase products that
are made locally; plan things very carefully; trouble controlling one’s spending
and health benefits of food consumption.
3. Which segments should Sticks target?
Based on the cluster analysis of customer/non-customer survey, Sticks should target
customer segments 1 and 4 because the customers in those segments assign higher
importance to factors such as health food options, products made locally and they tend
to plan things carefully. Notably, segment 1 customers seem to assign lower importance
1
Customer/Non-Customer survey (cluster) analysis and Customer appreciation of what Sticks offer:
Segmentation at Sticks’ Kebob Shop, Page 3.
 to trouble controlling their spending behavior as compared to Segment 4 customers.
Since the Sticks menu is well priced, it should appeal to the spending behavior
preferences in each segment. Stick should also target the segment 3 non-customer
group because their ratings mirror the segment 1 of customer group. This could be an
opportunity for Sticks to convert the non-customers to customers through relevant yet
customized promotions and marketing initiatives.
4. Which location would you recommend that Sticks select?
Customers in locations A and D tend to match the Sticks’ preferred demographic and
psychographic/lifestyle---soccer moms in their 30s’, white collars who lunch, smart
phone users and those with affluent suburban household lifestyle. In order to select
from between the two locations that I would recommend Sticks to do the following
analysis:
Start out small by testing the waters by establishing a pop-up food joint or a food
trailer in both the locations A and D for a considerable period of time. Based on
performance metrics such as customer traffic and sales, I would then cross-compare the
locations and identify the location that responds best to the Sticks’ menu and service.