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Raju Omlet Expanding in the United Arab Emirates Case Solution

Solution Id Length Case Author Case Publisher
2869 1620 Words (6 Pages) Kirti Khanzode, Sandeep Puri Ivey Publishing : W15515
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This case study, “Raju Omlet: Expanding in the United Arab Emirates”, is based on a businessman, Rajiv Meherish, in Dubai who launched a restaurant, Raju Omlet, as a joint venture with his son in 2013. The restaurant specialized in egg preparations, mostly many kinds of omelets, and quickly became very popular due to its unique selling proposition. Rajiv was a strong believer in delivering good value for money; therefore, always selected the ingredients from trusted sources, even if they were more expensive than the alternatives present in the market. Rajiv and his son Nakul managed the venture jointly and were proud of the AED2.04 million turnover for the year 2014. Rajiv saw the necessity for expansion; however, he was unclear on how to translate this objective into reality. His plans are based on two key concerns: would it be possible to sustain the expansion with a single product offering, or otherwise, would diversification contaminate the USP of the restaurant? This case study explores the challenges the restaurant faced as a young enterprise, the scope of the market and analyses the feasible growth and expansion options.

Following questions are answered in this case study solution

  1. Describe Raju Omlet's unique value proposition? Cite examples from the case description of Raju Omlet's value proposition.

  2. Discuss whether Raju Omlet practices ethical marketing? Give examples from the case to build your argument.

  3. Identify the customer segment that Raju Omlet targets? Why do you think are the reasons for targeting the selected segment?

  4. Explain why Raju Omlet avoided adding a home delivery alternative? Can you provide a distribution solution that will make home delivery an attractive delivery strategy for Raju Omlet?

  5. As Raju Omlet contemplates expanding the restaurant business, what are the three main alternatives they are considering to increase their sales revenue? Which of these three alternatives would you recommend? why? Explain your reasons.

Case Analysis for Raju Omlet Expanding in the United Arab Emirates Case Solution

1. Describe Raju Omlet's unique value proposition? Cite examples from the case description of Raju Omlet's value proposition.

Famous for its unique selling proposition (USP), Raju Omelet is a restaurant in Dubai that specializes in egg preparations, mainly omelets. The USP is centered on the emphasis on premium ingredients and fresh eggs, together with the dedication to providing clients with value for their money. This philosophy of businesses comes from the values held by the owner, a philanthropist who believes that providing good value for money to his clients is his expression of philanthropy. Omelets were the focal point of the entire marketing campaign, which included radio spots debunking popular misconceptions about egg consumption and stressing the health advantages of eating eggs. Businesses’ dedication to providing good value for money can be seen in the payment of higher prices for better quality eggs as compared to other competitors in the market (3). 

Moreover, it provided eggs for a specific demographic present in Dubai, the melting pots of the cultures: It targeted expatriate customers, mostly Pakistanis and Indians, who shared a mutual appreciation of such breakfast delicacies. Raju Omelet’s USP of providing the best quality omelets for a reasonable price is also reflected in their prices – they offer a simple and affordable menu with an average cost of the meal for two being AED 45. This also ensured that the target set of customers found the offerings of this restaurant accessible, and to more customers as well as the price set was rather attractive. Furthermore, the staff were trained with hard and soft skills to ensure a remarkable customer service. Raju Omelet also created a cozy and ethnic ambiance reminiscent of a roadside eatery in India, which appealed to the restaurant's target audience of expatriate Indians & Pakistanis. 

2. Discuss whether Raju Omlet practices ethical marketing? Give examples from the case to build your argument.

Raju Omlet appears to practice ethnic marketing, targeting expatriate Indians and Pakistanis who share similar eating habits, that is, those who appreciate Indian-style eggs. The restaurant's marketing strategy involved radio advertisements that focused on the health benefits of eating eggs and dispelled common myths about egg consumption rather than directly promoting the restaurant. Moreover, radio was selected as the means of communication and to conduct most marketing communication as most expatriate customers used radio in Dubai, for instance, since many were drivers and used radio a lot. These were mostly male working professionals who would eat their breakfast out a lot due to the busy nature of their days.

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