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Zaatar W Zeit, one of Lebanon's largest restaurant chains, was founded in 1999 as a popular eatery that serves mainly manakeesh. Since then the business has developed to offer a in 1999 as a popular eatery that sed menu than just manakeesh products, and the business has become a popular casual urban eatery. Zaatar W Zeit now has 14 branches in Lebanon and more than 20 franchises in the Middle East. After 15 years of success, Zaatar W Zeit are now considering ways to further grow their business. a) Deseribe in detail the product market expansion grid and discuss how Zaatar W Zeit can pursue cach of the four growth strategies, Give specific examples. ( 16 points) b) Discuss how Zaatar W Zeit could use market research to identify which one of these alternative grow strategies they should pursue. Give specific examples. ( 9 points)

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Final answer:

The product market expansion grid provides four growth strategies: Market Penetration, Market Development, Product Development, and Diversification. Zaatar W Zeit can utilize these strategies to expand their business by employing market research such as surveys and focus groups to inform their strategic decisions.

Step-by-step explanation:

Product Market Expansion Grid

The product market expansion grid, also known as the Ansoff Matrix, provides a framework for companies to identify growth strategies through existing or new products in existing or new markets. The four strategies included are Market Penetration, Market Development, Product Development, and Diversification.

Market Penetration

Zaatar W Zeit can increase market share within Lebanon through promotional campaigns, loyalty programs, and competitive pricing. Encouraging increased usage among existing customers and attracting competitors’ customers can also be effective.

Market Development

Expansion into new geographic areas, such as Europe or North America, is another growth strategy. Zaatar W Zeit could target diaspora populations familiar with Lebanese cuisine and others interested in ethnic foods.

Product Development

The introduction of new menu items or a healthy eating line catering to current trends can attract new customers and offer more choices to existing clientele.

Diversification

Zaatar W Zeit could dive into entirely new product lines or services, such as packaged goods sold in supermarkets or a new line of restaurants under a different brand and concept.

Using Market Research

Market research can help Zaatar W Zeit assess customer needs, market trends, and competitive landscape. Surveys, focus groups, and analysis of sales data can reveal preferences that guide the choice of growth strategy. For example, they could conduct taste tests for new products, or use demographic analysis to find new market segments.

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