Research by: Maria Luisa C. Delayco, Sandeep Puri, & Babak Hayati
In November 2018, a co-owner of House of Lasagna, a chain of casual dining restaurants in the Philippines, was considering different marketing strategies to increase customer awareness of the chain’s brand and unique menu. The company had seven restaurants in November 2018 and a target of 25 restaurants by 2020. She was concerned about the customer satisfaction survey that the company conducted every year. The survey reported high customer satisfaction but comparatively low brand awareness. The co-owner knew that high brand awareness was critical for growth. What marketing strategies could House of Lasagna use to increase its brand awareness? Future growth and expansion strategies were most important. Would a loyalty program help increase customer retention?
This case is suitable for use in an MBA-level marketing course in a segment on family business, entrepreneurship, analysis of business opportunities, marketing strategy, or customer relationship management and loyalty programs. It can also facilitate evaluation of the business model and growth options in the restaurant business and presents an ideal platform for discussing different marketing strategies, including market penetration, product development, market development, and diversification. After completion of the case, students will be able to
- assess the strategic choices available to an entrepreneurial firm, evaluating the alternatives and devising strategies for successful conduct of the business;
- explain the importance of customer relationship management, customer service, and satisfaction in the services sector;
- understand how loyalty programs work in the restaurant business; and
- understand the franchising option in the food service industry.
Issues: Customer relationship management, Customer service, Incentive programs, Franchising, Marketing strategy, Customer satisfaction, Philippines
Disciplines: Marketing, Entrepreneurship, International
Industries: Accommodation & Food Services
Setting: Philippines, Small, 2018
Intended Audience: MBA/Postgraduate
To cite this case: Delayco, M. L. C., Puri, S., & Hayati, B. (2019). House of Lasagna: Growth and expansion fix. Ivey ID: 9B19A034. London, Canada: Ivey Publishing.
To access this case: https://www.iveycases.com/ProductView.aspx?id=104449