njc slideshow

8/7/2019 njc slideshow

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Background of the case:

Poona Coffee House- Opp. Deccan Gymkhana

Bus Stand-since last fifteen years.

Location- one of the busiest places of the town.

Very dull outlook with hardly 15-20 customers atany given time.

More no. of unshaven and unclean waiters in

waiting.

Customers-college students, family groups and

people from all walks of life.


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Mr. Bhave:

Owner of PCH- with considerable experience inrunning restaurants.

Has 2 more restaurants running in the townwhich are doing good business.

One of the two offers lodging facilities also.

Surprisingly, PCH never could do well.

No systematic efforts were put in to improve theworking.

Mr. Nandkumar Shetty, made an attractive offerto Mr. Bhave, who sold PCH to Mr. Shettyimmediately.


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Mr. Nandkumar Shetty

Retired Major from Indian Army.

No previous experience in the catering

line, though the community is famous forthe same.

Neither did anyone from his family had any

experience in this line..

Mr. Shetty renovated the entire place.


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Renovations made:

Attractive interior decoration.

Menu increased three times than the

earlier one giving wide choice to thecustomers.

Vegetarian as well as South Indian,

Gujarati and Punjabi dishes were offered.

Some other entertainment items like

stereophonic music were also added.


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Effects of Renovation

Now its a bustling place with at least 100-

115 customers at any time of the day.

Within only six months,Mr. Shetty evenstopped borrowing from the banks for his

working capital requirements.

Poona Coffee House is the talk of the town


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Analysis

Though the location for this line of business wasexcellent & the customers were from all walks of life, itdid not succeed.

The main problem seems to be the lack ofinterest/enthusiasm shown by the Management.

Since, though Mr. Bhave had experience of thebusiness, no efforts were put in to improve the situation.

This is evident from the dull and lethargic environment,

unclean and unshaven waiters & limited menu. Also, Mr. Bhave had 2 more hotels in town, one of which

had lodging facilities as well and these hotels did well.


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Analysis(contd..)

This shows that though he had good experience inrunning hotel business successfully, he was not keen onPCH.

This lack of interest also explains why he immediately

accepted Mr. Shettys offer. Though Mr.Shetty had no experience of the business, he

had a systematic approach, probably because of hismilitary background.

As a result of this, he studied and analyzed the whole

situation & concluded what was required to rejuvenatethe business.

He accordingly decorated the interior attractively,provided a variety of menu and added entertainment-thus serving all segments of customers


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Theory

Interactive marketing delivering the promise


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