Question

Always is a local restaurant that’s really famous in the Bekaa. It offers pizzas, burgers, salads, platters and sandwiches. Customers are offered a choice between dine-in experiences or take away services. Staff is really friendly, food preparation is highly systematic and the kitchen is well arranged and super clean. The business has been operating for almost 15 years and it has been really successful, even when it got surrounded by local and global competitors (Mcdo, KFC, and others). Customers rarely find an empty seat at peak lunch and dinner times. Mr. Moutran, Always’ owner, hired your team as business analysts. During the first meeting, he informed you that he was wishing to expand overseas, preferably in other Arab regions, but that he was open to any other suggestions. He made it clear that he had no experience abroad and that it was your duty to devise a plan covering every single detail of the expansion.

what is the best pricing strategy to go abroad (Egypt) and objectives

Answer 1

The best pricing strategy for Always company to go abroad for business is the economy pricing strategy.

The economy pricing strategy can be an effective pricing strategy for Always to start a business abroad, especially in the Arabian countries. Advertising and promotional investment remain low in advertising pricing strategy, and focus is mostly emphasized on product quality, product variety, cleanness of food products, and service delivery. Moreover, product prices remain average, which is lower than most of the competitors. Advantages of the strategy for Always company are as follows:

• Low overhead costs help to improve the product and service quality.

• Average product price helps to grab a large market share.

• Performs exceptionally well even in economically backward countries

Objectives should be as follows:

• To grab the maximum number of market share.

• To grab the attention of the maximum number of customers

• To provide food products that adequately justify the product price.

• To maintain a healthy relationship with target customers.

• To ensure health-friendly and cleanness in the shops.