MARKETING

RESEARCH
PROJECT

MARKET RESEARCH
EXECUTIVE MBA PROGRAM - COHORT 9
DR. ALAA ELGHARABAWY

CASE PRESENTED BY:

WAEL BARAKAT / AHMED BAHER / HANY
RAMADAN

CONTENTS

INDUSTRY OVERVIEW
DELA VEGA PROFILE
METHODOLOGY OF RESEARCH
LITERATURE REVIEW
FIELD WORK & INTERPRETATION
CONCLUSION

INDUSTRY OVERVIEW
Restaurant companies are
essentially retailers of prepared
foods, and their operating
performance is influenced
by many of the same factors that
affect traditional retail stores.
For the most part, restaurants
have business models that are
relatively easy to understand,
and is the same as that of a
standard industrial company.
Nonetheless, there are a number
of unique factors to consider
when making investment

INDUSTRY OVERVIEW
Competition between restaurants is
intense, since dining options
abound. And, while there are
certainly dominant players in this
industry, no one company has the
market cornered.
Indeed, virtually every restaurant
location must compete not only
against other publicly traded
chains, but also a wide array of
small, local establishments.
Competitors include everything
from delis and pizzerias to finedining restaurants. Thus, restaurant

INDUSTRY OVERVIEW
As the restaurant industry has an
important role as a job creator.
The latest report said (2012) total
number of restaurant/coffee shops
around 50,603, with for each 10,000
person /6.0 comparing to Kuwait is
10,000 /12.0
It represent about 3-4% from total
Egyptian GDP(2014)

INDUSTRY OVERVIEW
Labor is another major cost for serviceoriented restaurants. Typically, workers
earn modest salaries, often at or just
slightly above government-mandated
minimum wages.
Employees that fall into this category are
usually fast-food workers, dishwashers
and bus boys. Servers, who make the
lion's share of their money through tips,
are usually paid even less.
Consequently, changes to federal or
state minimum-wage laws can have a

INDUSTRY OVERVIEW
Restaurant Image is very important
The image of a restaurant affects the
customer choice.
It serves as a guide for customers and
helps them to determine whether or not a
restaurant fulfills their needs.
Fine dining restaurant must meet
continuously the varying demands of
prospective target customers.
The image of a restaurant, as perceived by
its potential customers, plays an important
role in affecting the customer loyalty
behavior as well as in determining its
market position within its competitive

INDUSTRY OVERVIEW
The image of a restaurant consists of
both tangible and intangible attributes.
Tangible attributes are physical properties
such as restaurant location, restaurant
layout, price ranges, attractiveness of dcor,
and other qualities that the consumer can
objectively compare it to competitors.
Intangible attributes include such
qualities as friendliness of restaurant
personnel, and atmosphere.
The image of a restaurant consists of both
positive and negative perceptions.

INDUSTRY OVERVIEW
Favorable customers evaluations of the
restaurant's image attributes will lead them
to become repeat customers; unfavorable
evaluations would likely yield a no repeat
response.
Thus, as an indicator, the restaurant image
directly relates to consumer behaviors such
as customer loyalty.
Therefore, image considerations remain
important in the development of an
integrated marketing strategy and
restaurant management must understand
and control it as much as possible.

DE LA VEGA PROFILE
DELA VEGA Caf started with the opening
of its first caf in san Stefano, Alexandria,
Egypt in
DELA VEGA came to
the year 2003.
the scene and helped
develop the market of
the Spanish food &
caf, thus paving the
way for many
international chains to
join in.
However, DELA VEGA
continued to pioneer,
educate & serve the

DE LA VEGA PROFILE
DELA VEGA Caf started with the opening
of its first caf in san Stefano, Alexandria,
Egypt in
the year 2003.

DE LA VEGA PROFILE
It takes great skill and care to create the
perfect caf & restaurant. Here at , DELA
VEGA , our baristas are wholly committed
to the craft and the blend and are fastidious
about the foam and the finishing. They've
been trained to be able to serve you our
range of magnificent coffees.

DELA VEGA slogan is

We care about details
which describes what , DELA VEGA is

DE LA VEGA PROFILE
The small Company that started off in 2003
with one store and a few hundred
customers remains a market operating
over 3 stores in Egypt and proudly serving
more than 1000 customers daily
DELA VEGA store types:
Flagship: This is the largest of
DELA VEGA stores, in a prime
location where traffic and
competition are already there,
adequate space, highly visible and
easy accessibility.

DE LA VEGA PROFILE
Medium:
This is the
medium size, De
la Vega store,
around 330
square meters, in
Small:
The smallest in
De la Vega stores
but still popular,
can be a Kiosk, an
espresso counter in
a Company HQ,
schools and

a location with a
medium traffic

DE LA VEGA PROFILE
Starting from the location to the industry
smallest detail, and with its two identities,
De La Vega Cafes continues to offer comfort
and convenience to their customers

De la Vega stores are located in prime locations in

Alexandria to cater to the located consumers needs.
Also De la Vega has decided schools and universities
with its new and convenient trendy brand De la Vega
Canteen.

Methodology
This research is classified as ''Problem
Identification research' and exploratory
research.
Why we used Exploratory Research?
It enables research problem to be closely defined,
it tends to use more of published data, it provides
a speedy and economic way of acquiring overview
of the problem and its relevant factors and it is
useful in developing hypothesis about specific
markets like which restaurant is the favorite one in
the market and what are the reasons.

Methodology
We used Survey method in order to measure customer's
satisfaction & Loyalty
That most reasons of the restaurants customers' retention
can be associated with restaurants service elements adapted
from the 8Ps of Service Marketing Model.
It has to highlight reasons why customers not come back to
the restaurants.
To find out these reasons we use qualitative & quantitative
approach of research.
The results will be discussed with the restaurant manager
during the deep interview (qualitative approach) in order get
professional comments on our findings and to increase the
quality of results interpretation.
Quantitative method is used to explain, predict measurable
phenomena with measurable variables.

Methodology
the 8Ps of Service Marketing Model.

WHY WE HAVE USED QUESTIONNAIRES?

The questionnaire plays a number of important roles. Its

primary purpose is to facilitate the extraction of data from a
respondent. It serves as an aide memoire to the interviewer
so that there is no necessity to learn the questions off by heart.
It provides consistency in the way the interview is conducted,
especially as frequently a number of interviewers are working
on project at the same time.
Questionnaires are also an important part in the data collection
methodology. They allow responses to be recorded in a
consistent way to facilitate data analysis.
We have used questionnaires because they are cheaper and
you can get a lot of responses in a short time.
It offers efficiencies to researchers, they are easier to analyze
and are usually quicker to administer and ask.
It is important to complement questionnaires with other types
of surveys, like focus groups and face-to-face because they are
more personal, and you can see the expressions and attitudes

Methodology
Types of questionnaire
We have chosen structured questionnaires because they consist of
closed or prompted questions
TYPES OF QUESTIONS:
In our market research, we have used different types of questions:
1. Classification questions: these questions are used to classify the
information once it has been collected. we have used them only for
gender and age, because we consider that they are enough for the
objectives of our research.
2. Multiple choice: In this type of questions respondents are told what
response codes they can choose. we have used it because it offers
efficiencies to researchers, they are easier to analyze and are usually
quicker to administer and ask.
3. Scaled questions: the respondents are asked to give a numerical
score that is often out of a number (usually researchers use 5-point
scale) where the large number is the best and 1 is the worst.

Methodology

The process of research has next

structure:
a) Questionnaires of the restaurants
customers
b) Reporting of collected data.
c) Organization of results.
d) Analysis and interpretation of the
results
e) Deep interview with the professional
manager of the restaurant

LIMITATIONS AND CRITICS

Sampling: A non-probability convenient sampling was used to

distribute questionnaires to the target population. A total of
50 questionnaires were distributed to 50 customers in this
study over three weeks. There were only 33 customers who
completed questionnaire which represented a response rate
of 66%.
Another limitation of the closed questions part is that
researchers cannot guarantee that respondents interpreted
all questions in the same way
Another limitation is time constrain from 05th December 2016
30th December 2016
The interview will take place outside and we can't ask
respondents to go through long interviews on the street.
To find out the loyalty level of the customer we use our
questionnaire, we can't expect that only with this questions
we can measure the loyalty of the customer, but it will give us

REVIEW OF LITERATURE
IN OUR RESEARCH WE WILL UNDERGO WITH
PROBLEM IDENTIFICATION RESEARCH:
Identify Underlying Problems
As example
Image Research:Conduct research to find out
the place image as one of our problem research.
As one of important reason.
Business Trends Research: Finding out the
business trend as a place trend and comparing
also with the same business trend generally as
indication for researcher.

REVIEW OF LITERATURE
Marketing research process
Task involved:
Discussions with Decision Makers
Interviews with Experts
After discussion and interview:
Defining the problem:
Management discussion problem
Which lead to Marketing research problem

REVIEW OF LITERATURE
Main question for research is :

Why customers are not come back?

The art of asking why marketing research :
Discuss underlying principles which we believe should be
taken into consideration in formulating questionnaires for
use in marketing research.
We stress psychological factors and develop three
principles which terms, the principle of specification, the
principle of division, and the principle of tacit assumption.
That the ordinary WHY question is a source of potential
misinformation unless carefully interpreted and preferably
should be supplemented with appropriate follow-up
questions based on current psychological knowledge.

REVIEW OF LITERATURE
Main question for research is :

Why customers are not come back?

Seven possible hypothesis to answer main
research question as follow:
H1: Bad Customer Service
H2: Poor Food Quality
H3: Incomplete Menu
H4: Dirty Restaurant
H5: Inconsistency
H6: Negative Word of Mouth
H7: No Incentive

Section 1: Customer Questionna

Customer Questionnaire
We at Open-Up care about what you think of the products and services we provide. We value your
feedback and would appreciate you taking a few moments and filling out this comment card.
Date:

Type of (product/service) Received:

Poor

Fair

Good

Excellent

Very
Good

Food Quality
Menu Variety
Service
Atmosphere
Cleanliness
Overall Experience
Would you recommend us to a friend?

Is there something that you would like to

recommend in order to improve our service or
products?
Join our mailing list to receive information about special promotions.
Name:
Email:
Phone Number:

Contact preference: phone email

FOOD QUALITY:
Sample size is 50 and total respondents is 33 about 66 %
40
35
30
25
Axis Title

20
15
10
5
0
Excellent

Very good

Good

Fair

Poor

Interpretation:
As is evident from the chart, majority of the respondents (39%) & (36%) not like
the food quality which reflect how is the taste and quality of food will effect on
customer perception and their word of mouth.

MENU VARIETY:
Sample size is 50 and total respondents is 33 about 66 %
30
25
20
Axis Title

15
10
5
0
Strongly agree

Agree

Cannot say

Disagree Strongly disagree

Interpretation:
As is evident from the chart, majority of the respondents (54.5%) not like the
Variety of Menu which reflect how will effect on customer perception and their
word of mouth, cause there is no something special to differentiate and let them to
come back.

SERVICE:
Sample size is 50 and total respondents is 33 about 66 %
50
45
40
35
30
Axis Title

25
20
15
10
5
0
Strongly agree

Agree

Cannot say

Disagree

Strongly disagree

Interpretation:
As is evident from the chart, majority of the respondents (82%) they are not happy
with the services and its quality and time which reflect how will effect on
customer perception and their word of mouth, and they keep thinking about why
we are here.

ATMOSPHERE:
Sample size is 50 and total respondents is 33 about 66 %

Axis Title

40
35
30
25
20
15
10
5
0
Excellent

Very Good

Good

Fair

Poor

Interpretation:
As is evident from the chart, majority of the respondents (81.8%) they are happy
with overall restaurant atmosphere but not only atmosphere will may change
customer perception and their word of mouth.

CLEANLINESS:
Sample size is 50 and total respondents is 33 about 66 %
40
35
30
25
Axis Title 20
15
10
5
0
Excellent Very Good

Good

Fair

Poor

Interpretation:
As is evident from the chart, almost majority of the respondents (39%) & (30)
they consider this restaurant is not clean and this will effect on their desire to
come back or their word of mouth about it.

OVERALL EXPERIENCE:
Sample size is 50 and total respondents is 33 about 66 %
40
35
30
25
Axis Title

20
15
10
5
0
Exce llent

Ve ry Good

Good

Fair

Poor

Interpretation:
As is evident from the chart, almost majority of the respondents (60%) they
consider their experiences inside the restaurant is very bad and of course they will
perceive this restaurant in their mind and this will effect on their desire to come
back or their word of mouth about it.

RECOMMEND TO A FRIEND:
Sample size is 50 and total respondents is 33 about 66 %

Axis Title

50
45
40
35
30
25
20
15
10
5
0
Strongly agree

Agree

Cannot say

Disagree

Strongly disagree

Interpretation:
As is evident from the chart, almost majority of the respondents (94%) they will
not recommend to the friend as they previously consider their experiences inside
the restaurant is very bad and this will effect on their desire to come back or their
word of mouth about it.

Section 2: Loyalty Survey Questio

Customer Loyalty Survey Questions

On a scale of 1 to 5 where 1 represents Extremely Satisfied and 5

represents
Extremely Dissatisfied, how would you rate your level of overall satisfactio
with our store?

1
2
3
4
5

Why do you say that? What specifically are you satisfied or dissatisfied with
our store? Enter response below

How likely are you to recommend this restaurant to a friend or relative?

Would you say the chances are

Excellent
Very Good
Good
Fair
Poor

How likely are you to repurchase products and services from our restaurant?
Would you say the chances are

Excellent
Very Good
Good
Fair
Poor

In total, how long have you been a customer of our restaurant?

Less than one year

One to under three years
Three to under five years
Five to under ten years
Ten years or more

Please list the top three reasons you initially became a member of our store
in order
of importance?

Please rate your level of agreement with the following statements

(10-1 scale with 10 being completely agree, 5 being neutral, and 1
being completely disagree):

I believe DELA VEGA deserves my loyalty

Over the past year, my loyalty to DELA VEGA has grown stronger
DELA VEGA values people and relationships ahead of short-term goals

OVERALL SATISFACTION:
Sample size is 50 and total respondents is 33 about 66 %
35
30
25
Axis Title

20
15
10
5
0
Totally agree

Agree

Neutral

Disagree

Totally Disagree

Interpretation:
As is evident from the chart, respondents vary from neutral to totally dis agree in
satisfaction which represent a majority of the respondents, as they never will be loyal to this
place as same perception still exist.

RECOMMEND TO A FRIEND:
Sample size is 50 and total respondents is 33 about 66 %

Axis Title

50
45
40
35
30
25
20
15
10
5
0
Strongly agree

Agree

Cannot say

Disagree

Strongly disagree

Interpretation:
As is evident from the chart, almost majority of the respondents (94%) they will
recommend to the friend as they previously consider their experiences inside the
restaurant is very bad and this will effect on their desire to come back or their
word of mouth about it.

REPURCHASE CHANCES:
Sample size is 50 and total respondents is 33 about 66 %
35
30
25
20
Axis Title

15
10
5
0
Strongly agree

Agree

Cannot say

Disagree Strongly disagree

Interpretation:
As is evident from the chart, respondents almost will not come back to repurchase any
service or products even they are on walk inside Oruba Mall, so they never will be loyal to
this place as same perception still exist.

HOW LONG HAVE YOU BEEN A CUSTOMER:

Sample size is 50 and total respondents is 33 about 66 %

Axis Title

100
90
80
70
60
50
40
30
20
10
0
<1

1-3 YEARS

3-5 YEARS

5-10 YEARS
TEN YEARS OR MORE

Interpretation:
As is evident from the chart, majority of the respondents (94%) are newly customers this
will effect on lot numbers of groups overall the city and then its obvious that there very few
loyal customers which may image will be total destroyed.

Answer of last three questions in loyalty questionnaire

1 (COMPLETELY
DISAGREE)

DESERVING LOYALTY

13

39.39%

LOYALTY GROWN
STRONGER

10

30.30%

12.12%

VALUING PEOPLE &

RELATIONSHIPS

21.21%

27.27%

4
5
12.12
18.18%
15.15%
%
7

21.21
15.15%
%
4

12.12
6.06%
%

5 (NEUTRAL)
5
15.15%
5
15.15%
8
24.24%

10
9 (COMPLETE
LY AGREE)
0
0
0
0
0
0.0 0.0 0.0 0.0
0.00%
0% 0% 0% 0%
6

6.0 0.0 0.0 0.0

6% 0% 0% 0%
2

6.0 3.0 0.0 0.0

6% 3% 0% 0%

0
0.00%
0
0.00%

Interpretation:
As is evident from the tablet, majority of the respondents totally disagree
with being loyal customers which directly affect decline of business and
may lead to close.

CONCLUSIONS
Restaurant loyalty is one of the most important
competitive survival tools for fine dining restaurants
because loyal customers provide repeat business,
higher market shares, referrals, and competitive
advantages.
Therefore, it is strategically important to understand
customers desires to attract, maintain, and satisfy
those customers in order to maintain this continuous
source of income.
The restaurant operators should understand the impact of
both the customers level of satisfaction and the
restaurant image on the customers loyalty.
The operators should also investigate the driving force for
each component of the customer loyalty.
The results of the present research regarding the
customers satisfaction level and the image attributes

CONCLUSIONS
The following strategies could be beneficial to the fine
dining restaurant managers to increase their number of
loyal customers:
An ideal service timely manner
Advertising
Creates new ideas and attractive menu choices
(innovation)
Build successful, long-term relationships with your
customers
Facilitate the restaurant implementation
Consistently providing high quality service
Offering frequent guest programs
Selecting and training service-oriented employees

REFERENCES

http
://www.businesswire.com/news/home
/20110331005863/en/Research-Marke
ts-Cafsbars-Egypt
https://en.wikipedia.org/wiki/Market
ing_research
www.aaronallen.com Global
restaurant consulting
https://thinkmarketingmagazine.com/
elmenus-com-releases-top-restaurant
-insights-trends-egypt-2015/

THANK YOU