Larry Delvecchio opened Lovoy’s Italian Restaurant in the 1960s in a small, nond
ID: 397670 • Letter: L
Question
Larry Delvecchio opened Lovoy’s Italian Restaurant in the 1960s in a small, nondescript location on the edge of a working-class suburb. Over half a century later, Lovoy’s still thrives as an affordable, tasty weeknight destination for families and, on the weekends, a romantic (but basic) date spot. Larry’s son Tommy, who ran the restaurant after Larry’s retirement, is about to retire. Alfie, Larry’s grandson, will be taking his place as the third generation Delvecchio to run Lovoy’s. Having worked in a fine restaurant in the city’s downtown area, Alfie has big plans for taking Lovoy’s in different a direction. He wants the food that customers have loved for decades to remain the same, but he wants to rebrand every other aspect of the restaurant, starting with its location.
1.) How will Alfie Delvecchio develop a new brand for Lovoy’s?
2.)In addition to answering the above question, answer one of the following:
a.) How can Lovoy’s reposition itself effectively in the market?
b.) Lovoy’s is moving downtown, where there are many fine restaurants with which it must compete.
c.) How can it differentiate itself?
d.)How can Lovoy’s increase its already strong brand loyalty through segmentation?
Explanation / Answer
1. As given in the case, Larry Delvecchio has an Italian restaurant which was opened in 1960`s, Lovoy`s. The restaurant still gather good set of customers and has been handed down the generations. Larry`s grandson Alfie has plans to move this restaurant, rebrand and make it more appealing to the customers. To ensure a new brand is developed, Alfie needs to stick to roots and plan new cuisine and dishes which reflect the original dishes and add a twist of modern age cooking to it. He can modernize the menu, interiors, culture and kitchen equipment’s to match the fine restaurant quality in terms of service and food. Once the ground work has been done, Alfie can focus on improving the dishes by adding flavors across the borders and modernize the same. To ensure the brand gets developed well, he might have to tie up with marketing agencies and teams to ensure good promotions and placements are done to keep Lovoy`s a preferred choice for customer`s. Alfie can also introduce a technology based architecture to capture and store information about frequent customers. They can reach out to customers on phone/messages during special days and provide great discounts to regular customers.
2. Since only one has to be answered in this section, answering the section (d).
Lovoy` s already have a strong brand loyalty. This loyalty is generated though interactions and moments of truth across decades. The moment of truth in this case will be when the customer taste`s the food. The customers have been appreciating the food for a long time and would prefer the food here over other Italian restaurants. But to take this experience further, Lovoy`s can use the advancement of technology and provide differentiated customer experience. Based on customers historical data, interactions and feedback, they can be segmented into different groups to ensure the best service is given to each segments. Few segments to which customer can be divided are: loyalists, special customers and new customers. The loyalist would have parameters like being associated with Lovoy`s for more than a decade, preferring this outlet over other Italian diners, provides good suggestions on improving the food and menu etc. Special customers will be the ones who are associated with Lovoy`s for some time but are not extreme loyalist. This group can prefer the food taken from other outlets when required and provides good feedback on improvement in service and food. The new customer group will be ones who have visited the restaurant and want to be in relation for a long term. In this case, Lovoy`s would have to identify ways to engage and keep the customers away from other food joints. All three segments would have data attached to their past ordering and transactions. Based on this, the waiters can suggest food options to try and recommend new dishes based on their ordering patterns. The customers can also be given loyalty points which can redeemed to get discussions of free desserts. There can also be table reservations which can be made available the loyalist customers and fine dine experience based on their loyalty and transactions with the restaurant.
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