Click to edit Master title style

Identifying Your Value

Proposition with This
Mathematical Concept
By Graham Kenny

1
Click to edit Master title style
Overview

• “Athens” a Greek family owned restaurant was getting out of business

• The restaurant had been running for years on same menu, average
price point, similar location and ambience
• The author was asked to help the restaurant to revive and establish
its position again
• Considering customer’s point of view was one of the solution to
explore further options of restaurant growth

2 2
Click to edit Master
Combinatorics title
on the style
Menu

Combinatorics - A branch of Mathematics involved in Combining Things

• Consider the manufacturing of small toy, consisting of

different body parts – 3 types of head, 4 types of bodies
and 3 types of leg
• Hear we manufacture only 10 products (3+4+3)
• But by interchanging different parts 36 different small
toys can be produced (3*4*3)
• Adding different colors will simplify and the combinations
can be demonstrated better
3 3
Click to
Many editto
Paths Master title style
Success

• The hotel industry has many successful restaurant in spite of huge competition
• Competitive advantage is achieved by enumeration of different strategic options
• The parameters that customers keep in mind while choosing a restaurant are based on
food type, menu range, quality of the food, presentation of the restaurant, price,
customer service, operation, location, etc.
• The decision to choose a restaurant depends on different combinations of these
parameters that customers find most valuable
• The strategic options clubbed together creates a lot of combination for a restaurateur to
focus on and position it
• Considering the 7 strategic parameters (excluding food type) and three positions each,
we get 2,187 unique positions
• If a restaurant introduces 10 different food types/styles we get 21870 unique positions

4 4
Click to edit
Positions Master title
Restaurants arestyle
Placed based on Parameters:

Customer Service Rating Price Ratings Restaurant Ambience and Presentation

 Poor  Cheap  Unappealing
 Average  Average  Average
 Good  Expensive  Unique

5 5
Click toCustomer
Target edit Master title style

• Identifying the target customer to provide them customer value is important for a
successful business
• The restaurant owner was unclear about the target segment and was using a
non-strategic approach which deteriorated the business
• The restaurant Athens needed to focus its shift on new target segment and
demographics, and form combinations accordingly, taking help of Combinatorics
• Business can be successful by combining different forms and relevant to target
segment
• Remain focused on identified target customers and study about strategic
factors, and build strategy around it
• Post Covid use the combinatorics to keep your business stable and increase

6 6
Click to edit Master title style

Thank You