CASE STUDY

Case Study:

Q.1. Critically analyze what the customers service expectations

are from restaurants such as Raju Omlet? How did these
expectations develop?

Ans. At the moment, customers have a broad choice of eatery services to

choose from

and

service

quality

conditions

certainly

persuade

restaurant competitive advantage. Service quality is a significant aspect

for restaurants, hence; research associated with service quality, customer
satisfaction and behavioral intentions in the restaurant industry has been
growing (Bojanic & Rosen, 1994, pp. 4-14). Raju Omlet targeted the
college students, males who live away from their families and women who
come along with their families to discover the variety of foods available
here, thereby creating awareness of this place to others and this helps in
knowing more of the local cultural foods. The prices of their foods were
quite reasonable when comparing to their competitors. Raju Omlet faced
competition on the basis of serving and not product offering. The sense of
serving of Bombay Chowpatty, Chappan Bhog, Bikanervala, Kulcha King
and Mumbai Restaurant were all similar to Raju Omlet, except that all
these eateries had outdoor catering, dine-in, take-away and home delivery
options. However, the prices at these restaurants for an average meal for
two were quite expensive when comparing to Raju Omlet.

Mostly customers of all classes, the high-class, middle class or lower

income people were able to enjoy the high quality of food provided here.
The people came know about Raju Omlet Restaurant because of its
magnificent advertising and recreating the traditional dishes of Vadodara.
Motivation is necessary for the success of any company. Likewise, Rajiv,
the owner of Raju Omlet restaurant was motivated to work hard for the
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whole community Dubai. With a lot of effort and time put in, Rajiv was
able to make the Restaurant a big success. All his staff members were
equally motivated. They were provided training on how to treat their
customers, they were told to remember their regular customers names,
and they were also instructed to change the dish immediately if anyone
lodged a complaint. Customers usually expect a good service from any
restaurant they go to. Similarly, if the staff of Raju Omlet creates a good
rapport with their customers, people will want to come more often to Raju
Omlet. Learning helps gain experience and is also important as it helps
one to develop the company. There are two theories coupled with learning
which is the behavior learning theory and the cognitive learning theory.
The behavior learning theory is based on how the customers respond to
the environmental stimuli and is assumed to be passive. Cognitive
learning theory focuses on the inner mental activities. This is to open the
minds of the customers and put in ones products into their minds. For
example, in this restaurant, the owner tries to convey to the people of
United Arab Emirates that his restaurant brings out the local flavors and
has good food and artwork. To make customers come, they made
innovative radio advertisements, by instilling in them the various benefits
of egg preparations and that egg could be eaten as a meal and not snack
alone. Three components that contribute to overall customer satisfaction
with any restaurant are good food, good service and a pleasant setting
(Susskind & Chan, 2000, pp. 56-63). All of these factors have influenced
the customers and because of the Restaurants innovative ideas and its
uniqueness, Raju Omlet has become popular in a short span of time.

Q.2. Formulate the Unique Selling Points of Raju Omlet. What

brand image did Raju Omlet develop during its start-up period
and how was this image established?

Ans. Raju Omlets Unique Selling Proposition or Unique Selling Point (USP)
was its specialization in egg preparations. The menu was exclusively
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made up of eggs in diverse forms scrambled, boiled, shredded and halfboiled (Bootwala, 2013). The founders of Raju Omlet made it a point to
retain the ambience of humble roadside eatery through furniture and
utensils such as petro-max lamps and kitschy kettles and cups, so that
this restaurant matched the magnificent beauty of a city like Dubai. Many
egg-inspired quotes and brightly colored walls added to the exceptional
style of Raju Omlet.
During the start-up period, like any other business ventures, Raju
Omlet too faced many problems. Many internal and external factors affect
the business. Internal environment features the elements within the
company, such as current staff and management.

These factors are

generally controllable because they remain within the boundary of the

company. External environment refers to the environment in which there
is indirect influence on the organization. These are usually not within the
control of the business. External factors mainly include: political,
economical, social and technological factors. Political factors refer to the
degree of the government getting involved with the matters of the
organization. Raju Omlet Restaurant faced the problems in the starting
mainly due to the political factors alone. Mr. Rajiv wanted a gas cylinder
connection as the prices are fixed and will be much easier and feasible to
handle. However, the Dubai Municipality insisted that he should opt for a
pipeline connection itself.

Economic factors include economic growth,

interest rates, taxation, and exchange rates. It also includes inflation. In

case of being economical, Raju Omlet has been very economical in terms
of the prices of each dish. The main target audience was Indians and
Pakistanis as they have similar eating habits. This proved to be a
advantage for Raju Omlet, as they are many Indian expatriates in residing
in Dubai. Social factors include cultural aspects, population growth and
also the changes in the trends of the society. Raju Omlet provides their
customers with local indigenous touch by serving them with variety of
both local and Indian flavors. They also create a very comfortable
ambience by having a countryside setting at the prime location of Al3 | Page

Karama. In case of technological aspects, research and development

areas are explored thoroughly. The best way to know what consumers
think about the organization is to create an online page and put in a
suggestion column. Raju Omlet was able to create an excellent brand
image from the very beginning itself due to the positive word-of-mouth
publicity. Mr. Rajiv like most of the entrepreneurs believed in few religious
beliefs, one being; inaugurating the cash box on an auspicious day. As the
new restaurant came into being, customers started to flock in and since
Rajiv did not want to disappoint his customers, he ensured that every
customer that came ate to his or her hearts content. The customers
found this concept interesting, as for now they could eat as much they
want without paying anything. Many customers came in just to see if this
was actually being carried out. All the customers were pleasantly when
they were served free food. For ten days, this practiced had continued and
hence, Raju Omlet was able to establish its name.
Q.3. What would it take at this restaurant to ensure that
customers are highly satisfied? How valuable is highly satisfied
customers in the restaurant business and why?
Ans. Customers views and suggestions are very valuable not only to
restaurant business but also to all other business ventures. In a
progressively more competitive environment, all the restaurants must be
customer leaning. Customer satisfaction represents a contemporary
approach for excellence in business lives (Philip, 1997). As far as Raju
Omlet is concerned, customers are their first priority. Mr. Rajiv, founder of
Raju Omlet has quoted, We offer fresh eggs cooked with high quality
cooking ingredients and provide value for money. And true to his words,
he is totally against providing low-quality products to their customers. He
constantly began searching for high-quality products for his customers. He
started sourcing fresh eggs and signed an agreement with the local
poultry farm, Al-Jazeera Poultry, even though he had to face more
expenses almost up to 30% more than other suppliers. By doing so, he
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has been able to provide high-quality products at reasonable rates. An

average price for a meal for two at Raju Omlet is Dh 45. Customer
satisfaction is defined as a customers overall evaluation of the
performance of an offering. This overall satisfaction has a strong effect on
customer loyalty intensions (Anders, Michael, & Inger, 2005). Every
organization must work towards achieving a competitive advantage. To
thrive in building competitive benefit, an organization or business
ventures like Raju Omlet or any other restaurants must provide what
buyers identify as superior value, that is either a good product at low
value or enhanced product that is worth paying more (Porter, 1985). The
key issues in developing competitive advantage are; creating customer
value, building long-term relationships and maintain customer satisfaction
throughout. Up to an extent, Raju Omlet has been successful in preserving
the interests of their customers.
In order to ensure whether Raju Omlets customers are satisfied with
their services, they have to undertake certain public relations and
advertising campaigns, so that they can understand what the customers
feel about Raju Omlet and also what more they have to do in order to
remain the customers first choice in the list of restaurants. A PR campaign
strategy normally includes statement of objectives, situation analysis,
specification of target audiences, messages to be communicated, specific
program elements to be used, timetable and budget and finally details of
the program evaluation. Every PR campaign must have a clear message,
concise and understandable. This is essential because it is the attitude
forming

process

and

they

demonstrate

the

effectiveness

of

communication. One can use media relations, events, interviews, blogger

relations,

presentations,

consultations,

newsletters,

competitions,

podcasts, stunts, websites, conferences etc. to put across the messages to

the targeted audience. In case of Raju Omlet, the advertisements provided
at two different radio channels have played an important role in creating
awareness about their special offerings. Raju Omlet, by the medium of
radio told the customers various health benefits of eating eggs. For this
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campaign to be successful, Rajiv and Nakul (father & son duo of Raju
Omlet), chose the correct radio channels and prime times for their
advertisements. Hence, a very positive response was got from the public.
They reached in large numbers for the high-quality food, good services
and cozy atmosphere.

Q.4. Critically analyze what points should Raju consider before

introducing the home delivery service? Do you think they should
go ahead and introduce it, why or why not?
Ans. Raju Omlet currently follows No home delivery option as the
founders, Rajiv and Nakul are against the idea of letting the customers
consume its offering by paying the same price for a diminished quality.
While packing away the food stuffs, there is a drop in the fresh quality
assured. Even when other restaurants have home-delivery options, Raju
Omlet chose not to indulge in this practice, as for them quality is of main
concern. This restaurant needs to streamline their offerings. That is they
should just stick to a few food which is in consumer demand, and most
importantly, they need to work on improving the quality of these
foodstuffs. It is important to advertise in a style that accurately replicates
what you are going to provide. It needs to consider the global impression
that your posters or labeling create. Consumers look for protection, which
is based on the sensitivity that the brand is reliable and looks to their best
interests. Restaurants should be observing the quality of the foodstuffs
they are selling. A specialty restaurant is an eatery where the atmosphere
and dcor are geared to a particular type of food or theme (Webb, 2010).
Thus restaurants such as Raju Omlet can be coined as a specialty
restaurant. The service of food which is provided is based more or less on
the same manner of the country from which the particular cookery
originates.

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In Raju Omlets case, it keeps in mind to mix the roadside handcart

eatery of Rajubhais omelet experience into the modern life of Dubai. If
Raju Omlet considers introducing home-delivery service, there are many
points to be kept in mind. Home-delivery means providing the customers
the eatery ordered at their footsteps. There are both advantages and
disadvantages while taking into consideration home delivery service. Few
advantages being; by using the food delivery service, one can save time.
In this fast phased world, most of them dont have time to cook or drive all
the way to their favorite restaurants. Another benefit of home delivery is
that, once quality of food and speed of delivery is assured, one can
regularly chose home delivery options and also get special discounts.
However, there are a few disadvantages of home delivery too. One of
them being, providing the food with supreme quality. For this, they will
have to take on a vehicle, so that food can be transported to the
customers. Since, egg preparations comes under the head of potentially
hazardous products (products that consist in whole or in part of mil or milk
products, which are capable of rapid growth of infectious microorganisms),
the vehicle used for transporting must maintain temperatures at 140
degree Fahrenheit for hot foods and 41 degree Fahrenheit for cold foods
during transportation. The vehicles used must be clean to protect food
from contamination (Anonymous, 2000). Another disadvantage is that,
sometimes the delivery man may bring in the wrong order which in turn
will lead to a lot of time and energy being wasted. Instilling the home
delivery service, may also prove to be expensive. Thus, a few customers
are bound to find these prices not reasonable. One major disadvantage of
home delivery is that restaurants will have to add artificial flavoring to
their products so that they still look fresh. This can prove to be awful for
health. Furthermore, if Raju Omlet tries its hand in home delivery, they will
also have to keep in mind the hot climate of Dubai. Hence, delivery will be
possible only in few destinations.

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Q.5. Rationalize whether Raju Omlet should purse a product

development, market development, diversification, or market
penetration strategy when considering their potential expansion
into other parts of the UAE.

Ans. United Arab Emirates is considered as one of the safest place to live
in and is known for its trade and business. As mentioned in the case
study, Dubai is called the Melting Pots of Cultures and is home to
people over 200 nationalities. Nearly 1.75 million Indian nationalities
reside in UAE, which makes it the largest expatriate community. UAE is
also a tax-free country, which makes it even more attractive. United Arab
Emirates comprises of seven emirates: Abu-Dhabi, Dubai, Sharjah, Ajman,
Umm-Al-Quwain, Ras-Al-Khaimah and Fujairah. UAE is a mixture of
advanced infrastructure, tax-free income, job opportunities, security etc.
Hence, it is important to expand to other parts of UAE. All the Emirates are
well connected through roads, and people staying in one emirate travels
to other for work and sight-seeing. Currently, Raju Omlet has only one
branch, which is in Dubai. Therefore, opening eateries in other emirates
can prove to be beneficial to the restaurant.

Product development is

defined as adding new products into the current line so that its business
can prosper. When the firms offerings enter the maturity stage, they have
to bring in changes so as to continue in the market. As far as Raju Omlet is
concerned, if they try to bring in diversity by preparing dishes of chicken,
vegetable etc. they might lose their uniqueness. Hence, product
development is not a suitable strategy to be considered while preparing to
get larger. Market development involves introducing the current product
into a new market. If the facts given the Raju Omlet case study are to be
believed, currently, the restaurant has only one branch at Al-Karama,
Dubai. Hence, to get bigger, Raju Omlet can use the market development
strategy to spread out their business venture. They can open up new
branches in different parts of Dubai alone or also other Emirates.
Diversification happens when firms look for new products in new markets.
As mentioned earlier, since Raju Omlets USP is egg preparations only,
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diversifying into a new product is not a valid choice as then they will lose
their distinctiveness. At the same time diversifying into new market is a
pertinent alternative. Keeping in mind the popularity of Raju Omlet,
market diversification will enhance their current profits if they are opening
new branches at various locations. Market penetration strategy means
increasing the sales of the existing products in existing markets. There are
mainly four ways to increase the sales of a current brand; Increase
frequency of purchase, increase amount per purchase occasion, sell to
non-customers and see to non-buyers (Frain, 1996) .
For instance, Raju Omlet could increase the regularity of purchase
through excessive advertising promotions that will give consumers an
explanation to go there more often. They can also boost amount per
purchase occasion through value meals. By following these marketing
actions they can gain customers from their competitors. Raju Omlet can
adopt price reductions, expanded delivery in the existing marketplace,
sales force endeavor or promotions could be the additional ways to
implement market penetration strategy. Consequently, potential growth is
only the way forward for Raju Omlet. Rajiv & Nakul might find the
expansion process hard but as the risks are more, the payoffs and profits
are greater too.

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References

Anders, G., Michael, J., & Inger, R. (2005, January 1). The Effects Of
Customer Satisfaction, Relationship Commitment Dimensions, and
Triggers on Customer Retention. New York.
Anonymous. (2000, January 1). Food Safety Guidelines for Onsite Feeding
Locations, Food Shelves and Food Banks. Washington: University of
Minnesota Book Store.
Bojanic, D., & Rosen, L. (1994). Measuring serive quality in restaurants.
Hospitality Research Jorunal, 4-14.
Bootwala, F. (2013, September 10). Restaurant Review: Raju Omlet, Al
Karama. Retrieved February 29, 2016, from
http://www.masala.com/restaurant-review-raju-omlet-al-karama40121.html
Frain, J. (1996). Principles and Practice of Marketing. London: Pitman
Publishing.
Philip, K. (1997). Marketing Management : Analysis, Planning,
implementation and Control. New Jersey: Prentice Hall.
Porter, M. E. (1985). Competitive Advantage. New York: New York Free
Press.
Susskind, A., & Chan, E. (2000). How restaurant features affect check
averages. Cornell Hotel and Restaurant Administration Quartely, 5663.
Webb, T. (2010). An Overview : Most of what you need to know about
Serving Food and Beverages. Serving Food and Beverages, 11.

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