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    How to Increase Sales of Newly-OpenedPizzeria/Restaurants in Prague

    Research Project for International Business

    Written by Vlad Medvedev

    Prepared for David Gannon (Lecturer, Programme Leader)

    14,519 words80 pages

    (+420 608484788)

    [email protected]

    www.vladmedvedev.com

    mailto:[email protected]://www.vladmedvedev.com/http://www.vladmedvedev.com/mailto:[email protected]
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    Abstract

    This project describes the success key points of newly-opened

    pizzeria/restaurants in Prague. Additionally, it involves the primary research of

    one specific restaurant named Marinara, which is located in Sdliti Kokand

    has a great potential due to lack of competition. Mainly, this research was

    dedicated to analyse the current situation of the restaurant and produce a

    report which will be helpful to identify the unsuccessful strategies that were

    implemented before and possible improvements for the future. This restaurant

    was called Pizza di Pepe and since there were new owners from the 1nd of

    April 2010, the restaurant was renamed to Marinara which is named after

    the first pizza ever made. These new owners, Sergey Medvedev and his wife

    Narine Medvedeva have changed the restaurant in many different

    directions, as they have a great life-time experience. However, the

    experience that they have gathered throughout these years is not enough.

    They are lacking in professional management and marketing that is

    nowadays taught in many business universities. Therefore, it was a great

    opportunity for me to help their business and get a very useful knowledge for

    my further studying in the college.

    The information for this research was gathered through questionnaires that

    were given to many students/lecturers of Prague College and clients of the

    Marinara restaurant. Observations were also made to make an adequate

    summary.

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    Subsequent to the end of my investigation, I have analysed all data collected

    and put everything in the right format. All the information was converted onto

    diagrams and charts to make it easier to view and compare data. When I

    have finished observing my data, I have written an appropriate content in my

    findings section which was focusing on my main objective Possible ways of

    increasing sales in newly-opened restaurants.

    By the end of this project I have discovered many tricks and strategies that

    may possibly or crucially increase sales of the restaurant. This involves the

    restaurant appearance, customer service, advertising techniques,

    competition and etcetera.

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    Acknowledgments

    The process of this research was very long and the progress was very

    dependent on people that participated in it and guided me through.

    Therefore, I would like to thank all the people who participated in my primary

    research by filling in all the questionnaires and sharing their opinions, the

    priority of information that they have provided was very high as it was the

    base of my research. Since I would not reach such professionalism and

    success in the entire progress of my research without any guidance, I cannot

    forget my lecturer Dave Gannon who guided me through the project and

    carefully checked my work for any errors and grammatical mistakes.

    Additionally I would like to thank all the members of staff and especially

    bartenders who have helped me by giving out most of the questionnaires in

    the restaurant with professional manners in regards to all the clients. I would

    also like to thank my parents who own the actual restaurant and who

    participated in this project by negotiating with all members of staff from the

    face of mine. I cannot leave out my classmates as they have helped me by

    sharing their advice and constantly checked my work. In addition to all that I

    have to mention that nothing in this research would be achieved by me

    without the help of these people.

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    Table of Contents

    PRAGUE COLLEGE COVER SHEET .........................................................................................................0

    COVER PAGE ........................................................................................................................................1

    ABSTRACT .............................................................................................................................................2

    ACKNOWLEDGMENTS ..........................................................................................................................4

    TABLE OF CONTENTS ............................................................................................................................5

    TABLE OF GRAPHS ................................................................................................................................8

    BACKGROUND .....................................................................................................................................9

    INTRODUCTION ............................................................................................................................. 9

    RESTAURANT OVERVIEW.............................................................................................................. 10

    RESTAURANT SUCCESS IN THE PAST............................................................................................... 10

    RESTAURANT TODAY.................................................................................................................... 11

    AIMS AND OBJECTIVES ......................................................................................................................13

    MY OBJECTIVES FOR THE RESEARCH............................................................................................. 13

    METHODOLOGY .................................................................................................................................14

    PRIMARY RESEARCH.................................................................................................................... 14

    Questionnaires .............................................................................................................. 18

    Interviews ....................................................................................................................... 27

    SECONDARY RESEARCH .............................................................................................................. 30

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    FINDINGS ............................................................................................................................................31

    INTRODUCTION ........................................................................................................................... 31

    LIST OF GRAPHS .......................................................................................................................... 32

    Questionnaire 1 (From Prague College) .................................................................... 32

    Questionnaire 2 (From Marinara) ................................................................................ 38

    EXTERNAL ANALYSIS .................................................................................................................... 49

    PEST Analysis .................................................................................................................. 49

    Porters Five Forces ....................................................................................................... 51

    INTERNAL ANALYSIS..................................................................................................................... 54

    Capability ...................................................................................................................... 54

    Competitive Advantages ............................................................................................ 54

    Position Audit ................................................................................................................. 55

    Organisational Structure .............................................................................................. 56

    VALUE CHAIN ANALYSIS -PRIMARY ............................................................................................. 57

    Description ..................................................................................................................... 57

    Inbound Logistics .......................................................................................................... 58

    Operations ..................................................................................................................... 58

    Outbound Logistics ....................................................................................................... 58

    Marketing and Sales While Serving the Clients .......................................................... 58

    After Service .................................................................................................................. 59

    SECONDARY VALUE CHAIN ANALYSIS.......................................................................................... 59

    Human Resources ......................................................................................................... 59

    Procurement ................................................................................................................. 60

    Technology Development ........................................................................................... 60

    SWOT Analysis ................................................................................................................ 61

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    CONCLUSIONS ...................................................................................................................................63

    INTRODUCTION ........................................................................................................................... 63

    CUSTOMER SERVICE PERSONNEL OF MARINARA........................................................................... 64

    Introduction ................................................................................................................... 64

    Strength of Customer Service ...................................................................................... 65

    Weaknesses of Customer Service ............................................................................... 66

    Possible Improvement .................................................................................................. 68

    VISUAL ASPECT OF THE RESTAURANT ............................................................................................ 69

    POSSIBLE ADVERTISING STRATEGIES.............................................................................................. 70

    DELIVERY SERVICES ..................................................................................................................... 71

    SUMMARISED INFORMATIONSTRATEGIES OF INCREASING SALES .................................................. 71

    RECOMMENDATIONS .........................................................................................................................74

    INTRODUCTION ........................................................................................................................... 74

    RECOMMENDATIONS FOR MYSELF ............................................................................................... 75

    RECOMMENDATIONS FOR LECTURER/STUDENTS ON THE SAME SUBJECT.......................................... 76

    RECOMMENDATIONS FOR THE RESTAURANT.................................................................................. 77

    REFERENCES ........................................................................................................................................79

    WEB PAGES................................................................................................................................ 79

    BOOKS/MAGAZINES/NEWSPAPERS.............................................................................................. 79

    CITATIONS/QUOTES .................................................................................................................... 80

    LECTURE NOTES .......................................................................................................................... 80

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    Table of Graphs

    FIGURE 1WERE YOU ALWAYS WELCOMED .....................................................................................32

    FIGURE 2STAFF WAS KNOWLEDGEABLE AND HELPFUL ..................................................................33

    FIGURE 3WERE YOU DISCRIMINATED DUE TO LANGUAGE ISSUES ................................................34

    FIGURE 4STAFF IS ALWAYS FRIENDLY AND CHEERFUL ...................................................................36

    FIGURE 5IN OVERALL, DO YOU LIKE CUSTOMER SERVICE IN PRAGUE? .......................................37

    FIGURE 6SERVICE RECEIVED IN TAMELY MANNERS ......................................................................38

    FIGURE 7KNOWLEDGE AND HELPFULNESS OF STAFF (MARINARA) ..............................................39

    FIGURE 8FRIENDLINESS AND CHERFULNESS OF STAFF ....................................................................40

    FIGURE 9STAFF ANSWERED YOUR QUESTIONS ...............................................................................41

    FIGURE 10MARINARA SERVICE IN OVERALL..................................................................................42

    FIGURE 11WILL YOU COME AGAIN AND CALL YOUR FAMILY/FRIENDS? ....................................44

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    Background

    Introduction

    Since the 12th of April a new semester has started in Prague College, and so

    there was a new class called Research Project for International Business. The

    purpose of that class was to choose a business related story which was going

    to be investigated during the next few months. Since then, each member of

    our class has faced an interesting situation that they had to investigate.

    However, it was a very tense experience for us, as we have all faced

    obstacles in our way which were sometimes hard to dodge, and as it was

    stated by Catherine PulsiferOur ability to achieve success depends on the

    strength of our wings gained through knowledge and experience. The greater

    our knowledge and experience, the higher we can fly. Therefore, the

    experience that we have gathered throughout this project will be very useful

    for our future. Additionally, the success of this project will give us a further step

    into our HND studies.

    After gathering all the information which as I said was very stressful, we were

    all prepared to summarise it and start writing our final report. And as I have

    mentioned before, we all have chosen a business related situation that we

    had to investigate. Therefore, I have chosen a restaurant that is owned by my

    parents. This is because the use of this project will be doubled, or even tripled.

    The exact topic that I have chosen is How to increase sales of newly-opened

    pizzeria/restaurants in Prague

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    Restaurant Overview

    For the past years Pizza di Pepe was the only known Pizzeria/Restaurant

    located in Sdliti Kok. Surrounded by 10,000 people living in that area, Pizza

    di Pepe was in a huge advantage of others. Although there was no

    competition in that area, Pizza di Pepe was lacking in professional

    management, which lead the restaurant to low income and popularity. From

    the First of April 2010, the owner of that restaurant has changed, following

    with its name and look. Since that day, the restaurant was called Marianara,

    named after the first pizza ever made. New owners, Sergey Medvedev and

    his wife Narine Medvedeva have changed the restaurant in many directions,

    from the members of staff to its look.

    Restaurant Success in the Past

    As it was mentioned before, lacking in professional management caused the

    restaurant to lose its customers. However, it did not always have a bad

    popularity. Three years ago the restaurant was owned by a completely

    different person. Back then, it was bringing much higher profits. Not only

    clients increased the income with their daily visits, but also deliveries provided

    to people living within the 10,000 people range. However, there were some

    global issues that have severely decreased its success. The past owner was

    smart, and so he predicted the global crisis, therefore he sold the place to

    another man named Peter Novak. New owner had a different idea about the

    business. Suddenly, he started making a low quality but cheaper meals and

    deliveries. Therefore, they were losing their clients. According to Novak P.

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    (2009) within two month since he was the owner, 70 % of sales have dropped.

    The main reason for business failure was an incorrect strategy chosen The

    lower price, the more you sell. After a while, there was another person who

    bought that restaurant. His name was Tom Kral. As the past owner, he was

    following the same strategy, trying to drop the prices to attract more

    customers. Unfortunately he was not able to run the business properly. The

    restaurant was lacking in a well organised and professional customer service.

    Many customers were not satisfied with the service and did not come back

    again. Similar with food provided to customers, chef was not good enough to

    cook well. Therefore they have changed their menu which could only suite a

    certain number of people with much lower standards. Tom Kral has been

    running the restaurant for a year and due to family problems and

    unsuccessfully managed business, he had to leave. The present owners, who

    started working from the first of April 2010, knew all the mistakes that were

    done by previous owners. And so they have changed the strategy.

    Restaurant Today

    Since the last owner left and new arrived, many things in the restaurant have

    changed. The main reason why clients did not want to come to the

    restaurant was food. Therefore, firing the past chef was the first step to gain

    success. Since there was a new chef, food served to clients was not only

    tasteful, but decorated professionally. Bartenders and waitresses were also

    changed. Additionally, on the twentieth of April the menu was changed. As

    it was said by Medvedev S. (2010) many people around the area were used

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    to the old menu, and this is why we cannot serve a completely different food.

    Therefore we will change the menu again in 3 month, adding a better quality

    food and taking off the old ones.

    The atmosphere in the restaurant is very warm and in average, clients stay

    over 30 minutes after they have eaten their meal. Nowadays, the restaurant is

    getting its popularity back. It was also noticed by the staff, when they started

    receiving good comments from clients that were happily enjoying their meal.

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    Aims and Objectives

    My objectives of the research:

    My objectives for this research were to gather as much information as

    possible, about what customers want, why they visit some specific restaurants

    in Prague and what do they do or don not like about the Marinara restaurant.

    Therefore, after gathering this information, new possibilities were available to

    me. Moreover, I was able to summarise all the information and make further

    step towards my objectives. To be specific, my final objectives for this

    research were as follows:

    1) Possible ways of Attracting Customers2) What are the Advertising Strategies3) Compare Business with Competitors

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    Methodology

    Many businesses in Prague and particularly restaurants fail in the first year, due

    to high competition in the city. This is why I took it as a challenge to find the

    possibilities of increasing sales, and mistakes that could be avoided in the

    future. At the current stage, methodology was a very helpful step that guided

    me through the entire research project. In order to follow the whole research

    process without making any mistakes, I had to look through the objectives

    that I have to accomplish by the end of this research. To have successful

    results, I had to make an accurate primary research where I was using a

    certain type of techniques. Furthermore, I was aiming to gather the

    information from a certain type of people, depending on their age, marital

    status, financial status and social class. In my case, the target audience that I

    have chosen was male and female aged 20 to 60 years old with an average

    income. The reason for such wide target audience was people that usually

    visit the restaurant and live nearby it. Since there are about 10,000 people

    living within the place with a large variety of age.

    In addition, secondary research will be done in order to support my

    investigation and give me an opportunity to add up more value onto my

    work.

    Primary Research

    The following results were investigated by the end of the research:

    1) What do Czechs like/dislike about customer service in Prague;

    2) Why competitors do better;

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    3) What do Czechs expect from customer service in Prague;

    4) What techniques should be used to increase sales through delivery

    services in Prague

    5) What is the current visual aspect of the restaurant and how could it beimproved to attract customers

    Use of questionnaires for outcomes 1,3 and 5 was the most effective method

    of gathering directly aimed information from a large number of people,

    without spending much resources and doing it faster. Different types of

    questionnaires were prepared depending on each outcome. Therefore,

    different type and number of people were questioned, depending on priority

    of each outcome. To get more accurate and reliable results, I asked as many

    people as possible. However, I limited myself to the maximum of 30-45 people

    per questionnaire. Outcome 1 had the highest priority, since success of the

    business directly depends on the customers opinions and wants. Therefore, I

    have asked an approximate number of 30-45 people in 2 different places

    around Prague. These are; the restaurant and Prague College (with potential

    clients of 20-30 years old). Similar strategy was implemented onto the

    outcome 3, but less number of people were questioned due to its priority,

    about 15-25 people. For the fifth outcome, I did not limit myself on

    questionnaires as this question requires more observations and verbal

    communication. However, my target audience for this questionnaire was

    people aged 30-40 years old who regularly visit the restaurant. I have asked

    an approximate number of 15-25 people, as there were other types of

    research that were implemented onto this outcome.

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    There are several reasons why I have chosen specific number of people who I

    have questioned or interviewed. First of all, I had to focus on the priority of my

    questionnaires, which ones contained the most needed for me information

    and which did not. Therefore I have divided my questionnaires into categories

    by priority and given each category/questionnaire an appropriate number of

    people that I had to question. Then I had to be more specific about the

    number of people that I had to question. Starting with questionnaires I have

    given to the customers of Marinara. I have asked an approximate number of

    30-40 people. This is because at the moment, the number of people visiting

    Marinara daily is very similar to the number I have questioned. Moreover, it

    was enough for me to question the number of people that visit Marinara daily

    because it makes a high spectrum of audience. Furthermore, I have received

    enough information since 80% of people that I have interviewed are the usual

    clients of Marinara. Therefore, their opinion was in high priority for me, and I

    have questioned about 90% of such clients. This was mentioned by the

    barmen Jelinek, H. (2010) Since I work here, I have learned peoples faces

    and I can tell you that about 80% of people you have questioned visit our

    restaurant all the time, and from all people that visit our restaurant all the time

    you have questioned about 90%. Now to mention the questionnaires that I

    have given out in Prague College, I have given about 15-25 questionnaires.

    This is because 5 of these people were teachers who have gained

    experience throughout their lives and could tell an answer in a proper and

    effective format. Other 10-20 people were students and I have stopped on

    that specific number of people because these people visit restaurants and

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    pizzerias daily. From my calculations, these people visit restaurants at least,

    once a day. Moreover, they cannot spend their time traveling far. Therefore,

    since Prague College is in the center, these students also visit restaurants in

    the center. Furthermore, I have received comments of people that have

    visited about 5 out of 8 restaurants that I wanted to receive comments on,

    and I have stopped on 15 students because the other 3 restaurants I wanted

    to check were out of the radius that students of Prague College can travel to.

    I have also interviewed 3 people. The reason why I did not want to progress is

    because I needed this interviews to gain more knowledge of restaurants in

    Prague through verbal communications. I did not need to interview people to

    compare any data since my objective questions were answered in

    questionnaires. However, I have received a very useful knowledge since I

    have interviewed a lecturer who had a wide experience of customer service

    in Prague and internationally. Additionally I have interviewed the owners of

    the actual restaurants to receive and overall understanding of the restaurant

    itself and additional information of strategies that they might want to

    implement on the restaurant.

    As I was writing about the possibilities of increasing sales, I had to make an

    adequate content of my own, where I included the ideas of people that

    were questioned or interviewed. Therefore, outcomes 2 and 4 provided me

    with appropriate information that increased my overall knowledge of

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    restaurant business in Prague. For the second outcome, I have interviewed a

    person who usually visits an expensive and high quality type of restaurants in

    Prague, and also has a good experience with cheaper restaurants. Therefore

    I was able to summarise all the data and put appropriate information onto

    my findings section. Below I have divided my primary research onto two

    sections, questionnaires and interviews. The questionnaires that I have

    created will be placed below and briefly described with further justification.

    Questionnaires:

    Questionnaire number one was dedicated for the Prague College students to

    collect information about the Customer Service and average restaurant

    quality in Prague.

    Questionnaire 1:

    Every question in this questionnaire had to be rated within 5 different options

    between Strongly Agree and Strongly Disagree.

    Question 1: You Were Always Welcomed?

    This question was made to understand whether the customer service in

    Prague is welcoming or not. Many people in Prague and especially foreigners

    say that customer service in Prague is terrible and in many restaurants waitress

    do not welcome people or even smile.

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    Therefore, I have placed this question in the questionnaire in order to

    understand the level of customer service in Prague. Also, I will be comparing

    the answers between foreigners and Czechs to see whether Czechs got used

    to this level of customer service and even like it, or not. Since the restaurant is

    not located in a tourist zone and surrounded by many locals which are

    Czech, it would be useful for me to know whether Czechs really want a better

    quality of service or not.

    Question 2: Staff is Knowledgeable and Helpful?

    Once again, the purpose of this question was to understand the level of

    customer service in Prague. Looking at many comments that people

    provided me, the majority of people suggest that staff in Prague is lacking in

    knowledge, therefore they are not able to help.

    This question would be very helpful for me to understand the overall level of

    knowledge of staff in Prague. Therefore, I will be able to provide further

    comments on the knowledge of staff working in the Marinara restaurant and

    make possible solutions.

    Question 3: Where you discriminated due to language issues?

    This question was in a very high priority for me, since when I have done my

    questionnaires 11 out of 14 people living in Prague were discriminated at least

    once. This was also a personal experience for me. Moreover, by saying

    discrimination I mean that the customer service personnel was very rude and

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    was not willing to communicate or help in any way, sometimes even ignore

    you. Looking at my personal experience, customer service in Prague and

    especially Czechs are very discriminative, not only the color of your skin

    matters but the actual language you have spoken to them. In many cases

    when I tried to speak Czech the customer service personnel was not willing to

    help me and sometimes they even said on purpose that they did not

    understand me.

    Therefore, I have placed this question to understand the present level of

    discrimination in Prague, since many people say that it gets better. Especially

    with a younger generation, Czechs get more used to foreigners and they do

    not show such nationalism as the older generations.

    Question 4: Staff is always friendly and cheerful

    Many people say that staff in the pubs is friendlier however in the restaurants

    staff is not friendly at all. CS personnel in many restaurants looks very unhappy

    with their job and even disappointed, therefore they try to fist their anger on

    customers. Most of the time, you may not even see a smile on their faces.

    Therefore I have made this question to match it with a similar question that I

    have given to the customers of Marinara.

    Question 5: In overall do you like Customer Service in Prague?

    This question gives an opportunity for people to give an overall opinion of

    customer service in Prague. Additionally, on the other hand if I have not

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    included some important questions in my questionnaire, people could still

    give an overall answer including all of their personal opinions which I have not

    covered on my questionnaire.

    Question 6: What do you like best about customer service in Prague?

    This is an open-answer question, therefore I will be able to gather as much

    information as possible from it. This particular question is very important for me

    as it will give me many ideas of other people of what are the best things in

    customer service. Therefore, I will be able to implement this information into

    my findings section, and this information directly affects my whole project as I

    gather ideas of improving the business.

    Question 7: What could be improved?

    This question is very similar to question 6 but on the other hand it is completely

    opposite. The question itself, will give me ideas of possible improvements for

    an average restaurant in Prague. Moreover, I will be able to add more value

    onto my findings section as I will be talking about the possible improvements

    for the restaurant and this will help me to find more possible ways of improving

    the service and as following the profits of the restaurant.

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    Question 8: Additional comments

    This question does not give me a direct answer but on the other hand it is one

    of the most important sections of my questionnaire. Additional comments

    allow a person to openly share their ideas and opinions, in connected with

    my topic. Therefore I will be able to gather the information very widely and

    get as many ideas as possible to improve my research.

    Questionnaire 2:

    This questionnaire was prepared for the clients of Marinara. This questionnaire

    was the most important part of my research as I asked all the clients directly.

    Therefore I got the answers which are directly connected with the restaurant,

    so the accuracy of this research was a lot higher. Same as the first one, this

    questionnaire is rated in the scale of 5, from Strongly Agree to Strongly

    Disagree.

    Question 1: Service received in timely manner

    This question was made to see whether the staff in Marinara is working quickly

    or not. Since people are very sensitive to the speed of service they receive,

    the restaurant may lose a lot of clients if the staff will not work fast enough.

    Therefore this question will help me to identify this situation and make possible

    solutions for the future.

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    Question 2: Helpfulness and knowledge of staff

    Clients will have to rate this question and so I will see how effectively the staff

    of Marinara is working. Since many people living in Prague or who visits the

    city as a tourist, say that the customer service personnel in Prague is very

    unknowledgeable therefore they cannot provide any help. With the help of

    this question I will be able to provide further comments to the owner of

    Marinara and add a possible solution to my findings section.

    Question 3: Staff was friendly and cheerful throughout

    Many locals and tourists are very dissatisfied with the friendliness of customer

    service personnel in Prague. Furthermore, people even make jokes that

    Czech customer service personnel look like zombies since they never smile,

    however I would call it a very strict opinion but on the other hand it is rightful.

    Therefore, it is compulsory for me to check how people would rate this

    question about Marinara in order to see the quality of customer service.

    Question 4: Staff answered your questions

    Staff must always answer the questions of their customers as many clients feel

    disappointed if their questions were not answered. Many people might feel as

    they were ignored if the staff does not answer questions of their clients.

    Therefore, it is crucial for me to see how the staff of Marinara is doing in that

    area.

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    Question 5: What did you like best about our service

    Since this is an open question where people will be able to write an answer in

    their own words, I will be able to receive more information on it. Additionally,

    this question will show me the areas in the restaurant that are currently in

    advantage of other things. Therefore, I will be able to focus more on the

    things that might need an improvement.

    Question 6: What could be improved

    Same as question 5, this is an open question and on one hand it has a similar

    meaning as well, but on the other it is completely opposite to question 5. This

    question will tell me the exact things that should be improved in the

    restaurant. And from what I think, the ideas of possible improvements will be

    given from the customers point of view, which is very important since I and

    the owner of the restaurant have a very different view at the restaurant. Most

    of the time owners do not want to see anything bad in their business, they try

    to find good things and cover all cracks with these good things. However,

    from the customers point of view, I will be able to see these cracks in the

    restaurant and write a list of improvements.

    Question 7: What is your opinion about visual aspects of the restaurant

    This is a very unique question and it is the only one in my questionnaire that

    asks from the visual point of view. The service provided in the restaurant might

    be highly rated but on the other hand not many people would know that,

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    many people would be afraid to enter the place if it is not attractive. It is true

    that there are many restaurants that are not attractive and sometimes even

    ugly and dirty, but they are always full. However, these places gained their

    reputation for the quality of food and services, but this took them a very long

    time. This is why a restaurant must be attractive from the outside to make

    people want to come inside and then enjoy the food and everything else.

    Question 8: Overall how would you rate our service

    This question tells me the quality of service in overall. I find it very useful since

    the chances that I have included all important questions is very low. Some

    people might not find questions in the questionnaire that they need, others

    will. This is why it is very helpful to have an overall rate. Additionally, people

    might give the highest rate for many questions as knowledge and

    cheerfulness of staff but on the other hand they could give the lowest rate for

    the overall service question. Since they might find something very

    disappointing in the part of the restaurant that was not included in my

    questionnaire.

    Question 9: Will you come again and call your family/friends

    The purpose of this question was to see whether people are willing to come

    back and maybe call their family and friends with them. After receiving the

    results, I will see if people liked the restaurant in overall or not, if not they will

    provide comments below of the questionnaire telling what was wrong.

    Additionally, I will see if people would want to tell about Marinara to their

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    friends/family or not, because sometimes people visit the type of restaurant

    they like or could, but they would not like to tell about that place to others.

    Additionally, I will be able to see whether people will be telling others about

    Marinara or not. Because in many cases, people might like the place or it

    could only be the place they could afford but they would not like to tell

    others about it. Since owners of Marinara are willing to make a friendly

    atmosphere in the restaurant and not try to be a place where people would

    visit just because they can afford it financially, I will be able to provide them

    with such information and they will see whether their goals are met or not.

    Question 10: Additional Comments

    Additional Comments is one of the most parts of the questionnaire as it asks

    for peoples personal opinions. This gives me an opportunity to receive

    comments that cover things that I have not added onto my questionnaire.

    Moreover, I might find some ideas that were provided by people which are

    useful for the restaurant. Such as, people might write contacts of a brewery

    that makes cheaper but better quality beer, or anything else that might be

    helpful.

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    Interviews:

    There was only one type of Interview, but it had two formats. First was a verbal

    communicative interview and another was written on paper and signed. This

    is because some people were not able to speak English and there was no

    possibility of direct translation. Therefore, the interview itself was written on

    paper and signed. However, all questions were same in both of the interviews,

    the one that was recorded and the other that was written on paper.

    The questions can be found below:

    Question 1: Were you always welcomed?

    I have started my interview with a few simple questions to warm up the

    interviewee. However, these questions may be found on my questionnaire but

    on the other hand I received more comments from it since it was in a verbal

    form.

    Question 2: Was staff ever willing to help?

    Similar to question one, this is a very simple question to warm up the

    interviewee. However, as I have mentioned before even though it is in my

    questionnaire I have received a lot of valuable comments.

    Question 3: Were you discriminated due to language issues?

    With this question I have received many comments about discrimination in

    Prague overall. The interviewee told me about some particular places in

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    Prague where the person was discriminated and also provided useful

    comments about the age group of customer service personnel was is more or

    less discriminative.

    Question 4: In overall do you like Customer Service in Prague?

    Again, this question was in my questionnaire. However, it was very helpful in

    an interview as well. The person who I interviewed was able to provide many

    comments about Customer Service in overall, and add a lot of personal

    experience as well.

    Question 5: Do you eat Czech national food? (e.g. Czech Knedliky or Roast

    Pork Knee)

    This question was only mentioned in my interview but not questionnaires.

    Moreover, I have asked this question in my interview to see whether people

    really prefer Czech food or not, especially foreigners. Therefore I will be able

    to focus on food that is served in Marinara.

    Question 6: In average, do you like the quality of food served in Prague,

    whether it is a French or Italian restaurant.

    With this question I was able to receive comments about food quality in

    Prague, no matter from where it is from. Therefore I would be able to

    compare an average quality of food served in Prague with the Marinara

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    restaurant. Additionally, this would be twice as useful since food served in

    Marinara is a mix of Italian and Czech cuisine.

    Question 7: Do you like pizza served in Prague? Many people say that it is

    very thin how could it be improved?

    Majority of people who eat pizza in Prague say that Czech cooks always

    make the pizza too thin, as especially foreigners. Last time it was mentioned

    by Enchavarria, R. (2010) who said that Pizza in Czech Republic is always too

    thin that you cant really feel the taste. Therefore, I wanted to include this

    question in my interview to hear the opinion of others about this issue in

    Prague.

    Question 8: Which restaurant do you visit the most, and why?

    This was my last question in the interview and it turned out to be very useful for

    me. The point of this question is to ask people what restaurant do they like the

    most and why. Therefore I was able to find the most visited restaurants of

    Prague and see the reason of such popularity, maybe there are some

    techniques that could be used in Marinara as well.

    After collecting this information I was able to summarise it and put everything

    in different categories and compare my results. Since my report is about

    possibilities of increasing sales of newly-opened restaurants in Prague, my

    research was done correctly without any mistakes or difficulties.

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    Secondary Research:

    To receive more accurate results and finish the project successfully, I

    supported my investigation with a secondary research which involved such

    sources as:

    - Electronic Articles

    - Newspapers

    - Forums

    - Search Engines

    - Books

    - Magazines

    And other sources that provided me with appropriate information in regards

    to Marinara.

    Forums gave me an understanding of successful restaurants in Prague and

    main keys to their success. Some information was gathered from personal

    opinions of people online. Many articles that were posted online share a

    good experience in regards to many successful and unsuccessful businesses.

    With a good explanation of any mistakes and how could it be avoided. The

    secondary research also decreased the time I spent on finding section. Such

    as, food costs in other restaurants or any comments provided in regards to

    their service. Moreover, I was able to find statistics about Prague restaurants

    and results of previous questionnaires that were done by other companies in-

    connected with customer service.

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    Findings

    Introduction

    The purpose of my report was to gather as much information as possible

    about restaurants in Prague, and make a possible solution of increasing sales

    of newly-opened restaurants in Prague. Therefore, all data was collected by

    giving out questionnaires in Prague College and the restaurant that I am

    focused on which is Marinara. Additionally, interviews were done to gather

    some extra information and receive more ideas from people.

    The information that was called from questionnaires was put into excel and

    afterwards, converted onto pie charts, graphs and other appropriate

    diagrams. Below, you can find the list of graphs with introduction and

    description of each diagram.

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    0

    1

    2

    3

    4

    5

    6

    Strongly

    Agree

    Agree Average Disagree Strongly

    Disagree

    NumberofPe

    ople

    Rating Scale

    You were always welcomed

    List of Graphs

    Questionnaire 1Customer Service in Prague (Data gathered in Prague

    College)

    Question 1:

    With this question I wanted to receive more information about customer

    service personnel in Prague. Since many people and especially foreigners say

    that they do not get welcomed by customer service personnel. Therefore I

    needed to see the data on chart to compare the average of Prague with the

    Marinara restaurant.

    As you can see on the graph, there is a number of people who gave their

    opinion on this question on the left and the rating scale below. The rating

    varies from Strongly Agree to Strongly Disagree and in average, there were

    about 3.5 people giving an opinion in a specific scale. For example, 5 people

    Figure 1: You were always welcomed

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    0

    1

    23

    4

    5

    6

    7

    Strongly

    Agree

    Agree Average Disagree Strongly

    Disagree

    Nubero

    fPeople

    Rating Scale

    Staff was knowledgeable and

    helpful

    Agreed that they were always welcomed in Prague by customer service

    personnel, and 2 people strongly disagreed with this.

    Question 2:

    Due to many negative comments provided by people on the knowledge and

    helpfulness of staff. I had to add this question onto my questionnaire. This

    graph will help me to see the comparison between the Marinara restaurant

    and an average level of knowledge and helpfulness of customer service

    personnel in Prague.

    This graph displays the knowledge and helpfulness of staff. To be more

    specific, the graph was made to convert text onto illustration and make it

    easier to view and compare data. On the left side of the graph, you can find

    the number of people who did this question and at the bottom, you can see

    the rating scale from strongly agree to strongly disagree. As you can see on

    Figure 2: Staff was knowledgeable and helpful

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    0

    12

    3

    4

    5

    6

    7

    8

    Strongly Agree Agree Average Disagree Strongly

    Disagree

    Nu

    mberofPeople

    Rating Scale

    Were you discriminated due to

    language issues

    the graph, zero number of people strongly agreed that customer service

    personnel in Prague are knowledgeable and helpful. Moreover, majority of

    people thought that the knowledge and helpfulness of staff is in average

    level. Furthermore, 2 people strongly disagreed that staff is knowledgeable

    and helpful.

    Question 3: Were you discriminated due to language issues?

    In Czech Republic, majority of foreigners say that they were discriminated at

    least once, and you can see that on my chart below. Therefore, this type of

    question was very important for me to add, to view the present situation and

    compare it with Marinara.

    Figure 3: Were you discriminated due to language issues

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    On the graph itself, you can find two sections, the number of people who did

    the question on the left and the rating scale on the bottom. As you can see,

    the majority of people chose an average rate for the discrimination in Prague,

    meaning that they were discriminated at least once. The other 3 people

    strongly disagreed with this, therefore they have never been discriminated.

    However, since I have questioned many Czech people as well, I can clearly

    see that they were the only people who were never discriminated.

    Question 4:

    One of the most important ability for any customer service personnel is to be

    friendly and cheerful. This is because these abilities help to build a strong

    relationship between staff and their clients. Since this plays such a large role in

    the customer service, this question would show me an overall level of

    customer service in Prague. Moreover, knowing the level of customer service

    in Prague would help me to identify what level of service people would like to

    receive more.

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    0

    1

    2

    3

    4

    56

    7

    Strongly Agree Agree Average Disagree Strongly

    Disagree

    NumberofPeople

    Rating Scale

    Staff is always friendly and cheerful

    People who answered this question had to choose between the rate scale of

    strongly agree to strongly disagree and you can find it at the bottom of the

    graph. On the left you can find the number of people who answered this

    question. The majority of people disagreed that customer service in Prague is

    always friendly and cheerful. Therefore, I had to view the current situation in

    Marinara, in regards to this question, and make a possible solution.

    Question 5: In overall, do you like customer service in Prague?

    The purpose of this question was to understand the overall situation with

    customer service in Prague and to cover the parts that I have not included in

    my questionnaire. This graph below displays the information that I have

    Figure 4: Staff is always friendly and cheerful

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    gathered from people.

    This graph was constructed to display data as clearly as possible. Therefore,

    there are only two sections in this graph, the number of people on the left

    and the rating scale at the bottom. As you can see on the graph, the majority

    of people think that the level of customer service in Prague is at average.

    However, this also shows that there is a huge potential to improve and it will

    be much easier for a new restaurant to work more effectively as the

    expectations of a good customer service is not that high.

    0

    1

    2

    3

    4

    5

    6

    7

    Strongly Agree Agree Average Disagree Strongly

    Disagree

    NumberofPeople

    Rating Scale

    In overall, do you like customer

    service in Prague?

    Figure 5: In overall, do you like customer service in Prague?

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    0

    24

    6

    8

    10

    12

    14

    16

    18

    Strongly Agree Agree Average Disagree Strongly

    Disagree

    Service received in timely manners

    Questionnaire 2Customer Service in Marinara (Data gathered in Marinara)

    Question 1: Service Received in Timely Manners

    This question has helped me to identify the speed of staff working in Marinara.

    Furthermore, all the data from this question that was collected through the

    questionnaire is displayed on the graph below. Therefore, you can visually see

    how fast the staff of Marinara is working.

    As it is visible on the graph, the majority of people strongly agreed that all the

    services were received in timely manners. At the meantime, zero number of

    people disagreed that the services they received were in timely manners.

    From this graph it is possible for me to see that the staff of Marinara is working

    fast enough and at the moment there is no need to change anything in this

    direction.

    Figure 6: Service Received in Timely Manners

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    Question 2: Knowledge and Helpfulness of Staff

    This question is crucial for me as these two abilities are very important. The

    graph below shows all the information that is required to know whether the

    staff is knowledgeable or not.

    The idea and structure of graph is similar to the previous ones. It is divided

    onto two sections, number of people on the left and rating scale at the

    bottom. As you can see on the graph, the majority of people strongly agreed

    that the knowledge and helpfulness of staff is at a high level. Therefore, I can

    clearly see that the staff is not required to learn more about their services.

    However, it is always better to improve and staff might need some techniques

    to learn, about customer service in the restaurants. Additionally, all clients

    who did this questionnaire ranked most of these questions at a high level

    0

    2

    4

    6

    8

    10

    1214

    16

    18

    20

    Strongly Agree Agree Average Disagree Strongly

    Disagree

    NumberofPeo

    ple

    Rating Scale

    Knowledge and Helpfulness of Staff

    Figure 7: Knowledge and Helpfulness of Staff

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    because this restaurant fits them. On the other hand, no one ranked any of

    these questions low because people who do not like this place do not visit it.

    Therefore, it is better to improve in order to attract more customers.

    Question 3: Staff was friendly and cheerful throughout

    The graph below was built to display the data in regards to friendliness and

    cheerfulness of staff. On the graph you will be able to find the highest and

    lowest rates that people gave for this question. Furthermore, I must mention

    that many people find friendliness and cheerfulness very attractive. Therefore,

    I had to add this question onto my questionnaire in order to see what people

    think about the staff of Marinara. Moreover, you will be able to find all

    statistics in regards to this question on an illustrated graph below.

    02

    4

    6

    8

    10

    12

    14

    16

    18

    20

    Strongly Agree Agree Average Disagree Strongly

    Disagree

    NumberofPeople

    Rating Scale

    Friendliness and Cheerfulness of Staff

    Figure 8: Friendliness and Cheerfulness of Staff

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    On the left side of the graph you will find the number of people who

    answered this question. At the bottom, you will see the rating scale which is

    from Strongly Agree to Strongly Disagree. As you can see on the graph, the

    majority of people who answered this question think that the staff of Marinara

    is very friendly and cheerful. Therefore, I did not focus on it a lot.

    Question 4: Staff answered your questions

    In order not to make clients of Marinara feel disappointed or ignored, I had to

    check whether the staff of Marinara answers questions or not. On the graph

    below you will be able to find the number of people who thought that the

    customer service in Marinara is either good or bad.

    The structure of this graph is very similar to the one above it. This graph has the

    same layout and rates that people gave as the previous chart. However, it

    0

    2

    4

    6

    8

    10

    12

    14

    16

    18

    20

    Strongly Agree Agree Average Disagree StronglyDisagree

    NumberofPeople

    Rating Scale

    Staff answered your questions

    Figure 9: Staff answered your questions

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    10

    11

    1

    Marinara service in overall

    Excelent

    GoodAverage

    differs from any other graphs as it is dedicated to display the data that was

    gathered from the question in regards to staff answering questions of their

    clients. Furthermore, the graph has two sections, number of people on the

    right side and rating scale at the bottom. Additionally, you can see that the

    majority of people strongly agreed that the staff of Marinara answers

    questions of their clients at all times. The graph tells that there were over 18

    people and to be exact 19 people who strongly agreed on this question.

    Question 5: Overall, how would you rate our service?

    This question is very important for this report as it asks for an overall rate of

    Marinara. Therefore, it was compulsory for me to add it. Furthermore, the data

    for this question was displayed on a pie chart which you can find below, in

    order to create the best possible view.

    Figure 10: Marinara Service in Overall

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    On the pie chart above, you can find a legend on the right. However, it only

    contains three different varieties of rating, excellent, good and average. This

    is because in this question, there was no rate that was lower than average.

    Moreover, I only included three colours in the chart in order to make it easier

    for the viewer and not to get confused. As you can see on the graph, the

    majority of people thought that the service was good and on the other hand

    it was excellent. Because the chart clearly shows that 10 people thought that

    the service in overall was good and other 11 think that it was excellent.

    Moreover, only 1 person thought that the service was average.

    Question 6: Will you come again and call your family/friends?

    This question was created with the purpose of asking people whether they

    would like to come again and bring their friends or family. Therefore, after

    collecting this information I was able to summarise it and think whether

    people liked the service and would want to come back again or not. The

    information that was gathered from this question is displayed on the pie chart

    below.

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    15

    6

    2

    Will you come again and call your

    family/friends?

    For Sure

    Most Likely

    Maybe

    As the previous pie chart, this one only has a rate scale of three varieties.

    Moreover, you can find these varieties and colours on the legend that is

    placed on the right. The pie chart has three different rating options, therefore

    it also has three different colours that divide the chart. These colours are blue,

    red and green. The majority of people thought that they would come again

    and bring their family/friends for sure. You can see that coloured blue on the

    chart and about 15 people attempted this option. Following with most likely

    option that is coloured green and about 6 people attempted this option.

    Afterwards, the least number of people thought that they maybe will come

    again with their family/friends. This option is coloured green on the pie chart

    and about 2 picked this option.

    InterviewCustomer Service in Prague/Food made in Prague

    Restaurants/Best quality restaurants in Prague

    Figure 11: Will you come again and call your family/friends?

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    The answers from the audio interview was converted onto the text and

    placed below. This was placed as my findings from a verbal communication

    with a person who visits restaurants in Prague and has some valuable

    experience.

    Section 1: Customer Service in Prague

    Question 1: Were you always welcomed?

    - Answer: No, no really. I mean there are some restaurants I know wherethey were really really rude. And you say, you know, excuse me can I

    have some food please. And they would just go thfu, like that.

    Not always, sometimes yes but not always, no.

    Question 2: Was staff always knowledgeable of their goods and services?

    -

    Answer: Was staff always knowledgeable? No, not really. In fact I think,

    some of them were very very unknowledgeable. And if there is a

    problem, they refuse to sub take ownership of the problem. And they

    would rather no be bothered and I wished they would go away.

    Question 3: Was staff every willing to help?

    - Answer: Not really, no. Some of them of course yes were. But I thinkcompare to lets say Britain where I come from or America. The

    customer service, the sophism of been willing to help was much much

    less; they see it as a problem more.

    Question 4: Were you discriminated due to language issues?

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    - Answer: I should think I probably was discriminated against. I rememberonce in a post office when they just wouldnt even send the letter that I

    had. Because I couldnt it was very obvious that I was trying to do. I

    was asking what the price for stamp was to send it to London. But they

    just couldnt be bothered with me, so at the end they just said no no

    no, no no. Possibly other times I have been discriminated against but

    my knowledge of Czech is so bad I wouldnt really realize that I was

    discriminated against.

    Question 5: In overall do you like Customer Service in Prague?

    - Answer: I think its very very behind the times. I think because ofcommunism and because people were forced to do a job. The way

    that Czechs rebelled, and in fact the way they rebelled generally. Is not

    by being, not by sort of getting on the streets like they do in Kirgizstan or

    whatever. But its by, what you call passive resistance. They just make

    things very very difficult for you. They always do absolute minimum, they

    never understand you properly, and they do understand you but they

    just dont want to do anything. And its probably because they have

    been invaded by so many people and then they had jobs forced on

    them by the communists. And their idea was just going to work and to

    do to live, what I can. And you know, its a thing to be endured rather

    than being to do to achieve anything. I think the attitude of the

    younger Czech people, is the service is generally better. Because I think

    they got the idea, that it is something that could be a career and it is

    worthwhile. But you know that, it is people really from your generation.

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    Section 2: Food and Pizza in Prague

    Question 1: Do you eat Czech national food? (e.g. Czech knedliky, pork knee)

    - Answer: Ahh, sometimes it has swechcoba and things like these. Ihave to say it doesnt do my stomach a lot of goods. Czechs, I mean

    some does. But its not because something is wrong with the food. There

    is no bacterium in the food. Its just there something about Czech food

    that makes me want to vomit in the toilet. I dont know what it is,

    whether its oil or some.. I dont know what it is. But it is Czech food,

    because I have tried Greed food, am happy with that. I have tried

    Italian food, and am happy with that. I dont know what it is, but there is

    something about Czech food.

    Question 2: In average, do you like the quality of food served in Prague, whether it is

    French restaurant or Italian?

    - Answer: Ehm, I know some czech restaurants that are very good, but Ialso know a lot that are very average. I mean, there is a really good

    indian restaurant not far from here, and thats excelent. But there is a

    couple of restaurants that are very very average, they got smageny syr,

    swechcoba. There is one particular restaurant where they go

    highlighters on the menu , and you say I ll have this one and they say

    neny, off, or I ll have this one, off. Or can I have that one, neny, off. So

    what can I have? Is that one, and its like a smageny syr or something.

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    Question 3: Do you like pizza served in Prague? Many people say that it is very thin.

    How could it be improved?

    -

    Answer: I think it depends where you go, they dont really do deep

    ones. But no I found them alright, the ones I had I found alright. Yeah.

    Section 3: Most favourite restaurantwhy?

    - Answer: I visit the restaurant in the hotel Embassidor quite a lot. Becauseits on my way between work and I have never had a bad stomach,

    there at all. Its quite expensive but they do quite a cheap bar menu,

    and they have cnn on tv. And its just between, because I work in

    Calobanian Mesidan in the morning, just between them and here.

    Great place, to get a lunch or read-up on my economist, thinkabout

    ecconomic issues and have some food. And its quite nice there, I

    actually met my wife there a few years ago.Be very careful when you

    eat hot dogs from the hot dog vending. Because I ate one 10 years

    ago and I ended up with an awful food poisoning. And I through up

    everywhere in my house. I through up in my storage heater, I through

    up everywhere. So be very careful.

    - Ok I hope you find that useful, ok then. Alright.

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    External Analysis

    PEST Analysis

    PoliticalRestaurants in the Czech Republic experienced a crucial change in

    2004, since Czech Republic has joined the EU. There were many legal factors

    and hygiene rules implemented for the restaurants. The standards of hygiene

    became stricter, and presently restaurants are not allowed to go under the

    permitted limit.

    As being a relatively new country in the EU, restaurants have still not got used

    to the concept and strict laws of the EU. Many restaurants have not updated

    their equipment for a very long time. Therefore, they do not meet the

    standards of the EU. Furthermore, these restaurants received many fines

    because of these hygiene legal factors. Moreover, many of these restaurants

    had to close.

    EconomicalPrague, in comparison to any other capitals in the world, is

    relatively a cheap city in regards to food and drinks. The taxes and tariffs set

    by the Czech government are relatively lower than in other countries, and

    favourable for attracting foreign investors to open restaurants.

    On the other hand, the Czech Republic with its climate and inaccessibility to

    the sea, causes lack of many kinds of food. Many restaurant owners will have

    to face troubles with pricing on sea food, exotic vegetables or fruits if they

    have opened and exotic restaurant.

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    Inflation is a very important factor that influences profits of the restaurants. It

    produces higher wages and higher prices on food. The cost of materials,

    storage or services used in production of the final product or service, may

    make it more expensive.

    SocialIn the Czech Republic there is evidence that customers are incredibly

    price sensitive. This is the reason why owners of Marinara should think carefully

    when they determine the prices of food.

    With growing competition between the restaurants, Marinara should focus on

    the customer wants and needs.

    Every day, the standards of living in the Czech Republic approach the

    standards of Western Europe. This fact changes the eating habits of Czech

    people a lot. People expect better services, tastier food, and cleaner venues

    since they are willing to pay for this comfort. Due to modern tendency

    towards healthy food and rejection to fast food, Czech tend to eat healthy

    food as well.

    With increasing number of working women, home cooking is decreasing. This

    is because people do not have time to cook at home, so they prefer to go to

    restaurants instead.

    TechnologicalThe rapid increase of internet usage allows people to buy

    food online without putting an effort to go to the restaurant, this also reduces

    the time they have to spend. Customers can order food through the internet

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    or their mobile phone, without needing to go to the restaurants. It is crucial for

    the restaurant to improve their website and make it more user friendly and

    attractive for customers.

    Porters Five Forces

    The threat of substitute products or services

    Buyer propensity yo substitutethey can cook something at homerather than going to the restaurants.

    Relative price performance of substituteThe food cooked at home isrelatively cheaper than in restaurants as people will only have to pay

    for the products, and on the other hand the quality of food will be

    similar.

    Number of substitute products available in the marketAs Marinara isthe only restaurant in the area, there is no threat of substitute products

    provided by other possible competitors. Except the fact that people

    can eat something cheaper at home, or they can phone a pizza

    delivery firm that will deliver them a hot pizza or food.

    There is also a small fast-food shop nearby Marinara, that providessandwiches at a lower price.

    The main reasons for substitute products are possible, because of thequality of products/customer service or the price in Marinara.

    The threat of the entry of new competitors

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    This market is very profitable due to the population of 10,000 inhabitants and

    with only on restaurant in that area; the threat of new competitors is very high.

    New competitors with new or better products at a lower price may enter this

    market.

    The intensity of competitive rivalry

    There is only one competitor in the area, which is not providing the same

    product as Marinara. This competitor is similar to a fast-food shop, selling low

    quality goods (junk food). This can be a threat in the sense of substitute

    product, cheaper and the restaurant has a very pleasant environment.

    Another threat could be a pizza-taxi that is nearby the restaurant, which

    can deliver pizzas home.

    The bargaining power of customers

    Presently, the bargaining power of customers is low, because Marinara is a

    unique restaurant in that area. There is not much of available products.

    Therefore people have to buy the existing ones. However, as the threat of

    new competitors is very high, the bargaining power of customers might

    change rapidly.

    The bargaining power of suppliers

    There are many suppliers that are available in that area. Therefore, the

    bargaining power of suppliers is at a very low level.

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    Barriers to entry

    AdvertisingPutting large posters that could make it obvious for the clients to

    recognize the restaurant so that it can give priority compared to others.

    Network EffectBy establishing delivery and the offering of extra pizzas when

    you purchase more, will enable to produce a significant user base.

    Additionally, effective usage of the companies nearby will built better

    relations and loyalty.

    Variety in the menu, quality according to the customer preferences and

    hospitality offered to the customer makes it difficult for other competitors to

    get into the market and will increase the loyalty of Marinara customers.

    Knowing the area will help the restaurant to make the difference for the

    cultures living in there. For example, avoiding language barriers by using the

    menu in different languages according to nationality of the customer

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    Internal Analysis

    Similar to the external analysis, which helps us understand the surroundings of

    Marinara, and to determine which problems or advantages we might

    encounter in that particular area. It is necessary to analyse the business to

    identify weaknesses that can be turned into strengths.

    Capability

    Marinara is the only restaurant located in an area of 10,000 inhabitants in ,

    Prague 10, Doupovska, in the area of Hostivar. The nearest restaurants are in

    Park Hostivar, a shopping mall that is located 15 minutes aways by bus and

    about five minute drive by car. The restaurant has capability of delivering

    food to its customers faster than any other restaurants due to its strategic

    location. The restaurant is not just a pizza restaurant but it offers Italian food in

    a comfortable environment within its elegant interiors.

    Marinara is not only a nice place to go for a dinner or lunch, it also has a small

    playground for children offering a family environment for locals. Customers

    have the privilege to choose between the smoking and non-smoking areas

    which are located apart. At the pizzeria there are also alcoholic drinks that

    may be served at the bar for clients who wish to be on their own.

    Competitive Advantages:

    The only restaurant located in an area of ten thousand inhabitants, Smoking and non-smoking sections,

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    Elegant interiors, Childrens playground, Bar for individuals who want to be on their own Delivery service for the locals.

    Position Audit

    Resources

    Material inputs: Ingredients for all the different dishes, plus drinks. Suppliers

    should be analysed. The new owners do not have much knowledge of the

    acquisition process. Therefore, they have decided to keep the old staff

    members to learn from them. After this learning stage, the owners should

    investigate further on the topic.

    Human Resources: Marinara has three employees who receive a salary of

    10,000 kc each but they do not have anything to motivate them to do a

    better job. The staff did not receive a customer service training as well.

    Therefore, the service they provide may be lacking of professionalism and

    knowledge. Employees could be motivated by being offered better working

    benefits such as meal vouchers.

    Management: The restaurant is lacking a well organised and professional

    management. Since owner is in charge of the restaurant and has three

    different businesses to administrate. Therefore, the owner has the duties of a

    manager in the restaurant. In the future, owners plan to be in the business at

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    fulltime. Therefore, there may be a huge change that might affect the

    working environment and may add a value to the customers.

    Fixed Assets: This is everything that involves furniture, chairs and table, that are

    important for the customers, plus kitchen tools. At the moment, equipment of

    the restaurant is in good conditions. However, the exterior does not match it.

    Painting the entrance would give the restaurant a better presentation.

    Finance: The restaurant should think about increasing the prices so that the

    sales would help recover the invested capital in the restaurant, as the new

    card that was purchased by owner for deliveries.

    Intangible Assets: The restaurant should train its staff in customer service.

    Customer service personnel of Marinara are not prepared to serve the

    customer the way they deserve it.

    Organisational Structure

    The new owners of the restaurant have already started to ask for an advice

    from their employees. This gives them more advantage and helps to motivate

    their employees. Communication between staff is not working well. Since

    owners of Marinara do not speak Czech well, and this brings a disadvantage

    to the restaurant.

    Operation Systems: The new owners operate at the same level as staff, give

    Marinara additional advantages.

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    Product: A well-cooked Italian food is offered at the restaurant. Presently Pizza

    in Marinara has reached a very high level. However, a month ago there was

    a complaint that the pizza was raw.

    Solution: The owners should educate their staff in customer service, one raw

    pizza can mean one less customer, who can transmit the information to the

    locals who live around the restaurant.

    Brand Name: Marinara is a very strong named because the name is

    associated with Italy. On the other hand, this was also the fist pizza ever made

    and there is a unique recipe of pizza in the restaurant named Marinara.

    Market: The restaurant is all focused on the area where it is located. The idea

    is to attract people who do not want to cook and people who want to eat

    out. Families are also a part of the target audience and employees of local

    companies.

    Value Chain Analysis - primary

    Description:

    Inbound logistics: All those activities concerned with receiving and storing

    externally sourced materials. For Marinara all external sourced materials such

    as beverage food and boxes for home delivery are stored in their own

    storage which is on the ground floor, below the restaurant. This means that

    there is no need for a warehouse.

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    Operations: There is only one cook at a time, who prepares meals for clients.

    The barmen is responsible for serving drinks and also food before asking the

    clients for any orders or collecting money.

    There is also one person responsible for delivering the food outside the

    restaurant.

    Furthermore, there is one cleaner that does not appear in the area where

    clients are allowed during the day time. That cleaner is responsible for

    cleaning dishes and the working area.

    Outbound logistics: All those activities associated with getting finished goods

    and services by buyers. For Marinara, the barmen takes the role of waiter and

    is responsible for bringing the orders to the right clients by communicating

    with the kitchen. He/she is the middleman between the clients and the cook

    as well as the bar.

    The home deliverer is responsible for answering phone calls and providing

    customer service, and even taking orders before delivering and informing

    clients about the processing time.

    Marketing and sales while serving the clients: the barman/waiter is also

    responsible for informing clients about products and any other services. For

    example, he or she can let the clients know that the restaurant is delivering

    their products home or any nearest companies. He/she can also let the

    clients know about special offers or anything else that the clients do not

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    necessary see or know. The barman is basically responsible for providing

    customer service and public relations.

    After Service: After clients are finished with their