PRICING AND PROMOTION STRATEGIES OF

JALAN JALAN RESTOBAR

BY
SANDESH KARKI
Symbol Number 12137/13
TU Registration Number 7-2-0364-0054-2013

A Summer Project Report Submitted to

Faculty of Management, Tribhuvan University
in partial fulfillment of the requirements for the degree of

Bachelor of Business Administration

at the
K and K International College
Tribhuvan University

New Baneshwor, Kathmandu

April 2017
 STUDENT DECLARATION

This is to certify that I have completed the Summer Project entitled Pricing and
Promotion Strategies of Jalan Jalan Restobar under the guidance of Dr. Gopal Thapa in
partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at Faculty of Management, Tribhuvan University. This is my original
work and I have not submitted it earlier elsewhere.

19 April 2017 _________________

Sandesh Karki

1
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled Pricing and Promotion Strategies of
Jalan Jalan Restobar is an academic work done by Sandesh Karki submitted in the
partial fulfillment of the requirements for the degree of Bachelor of Business
Administration at Faculty of Management, Tribhuvan University under my guidance and
supervision. To the best of my knowledge, the information presented by him/her in the
summer project report has not been submitted earlier.

_______________________________
Dr. Gopal Thapa
Designation
19 April 2017

2
 ACKNOWLEDGEMENT

This report Pricing and Promotion Strategies of Jalan Jalan Restobar has been prepared
in the partial fulfillment for the degree of Bachelor of Business Administration under the
course designed by the faculty of management of Tribhuvan University.

First of all I would like to express my deep sense of indebtedness to my respected

supervisor Dr. Gopal Thapa for his valuable guidelines, implication and suggestion
thoroughly during the time of this study. Without his valuable insight, I would not have
been able to complete this project work. With a profound privilege I would like to thank to
the Director of K and K international college Mr. Sindhu Dhakal for his valuable guideline
and support to complete my report. I would also like to thank Proprietor of Jalan Jalan
Restobar Miss Purnima Pathak and Mr. Shailesh Karki for their co-operation and
providing information for the report. I am indebted to all those writers and researchers
whose materials and methods have been used wherever necessary during the study period
as a reference.

I wish to acknowledge my gratitude to my teachers and friends of K and K International

College who directly and indirectly help me with their valuable suggestions for
completion of this work.

Finally, I would like to offer my profound gratitude to my family for their co-operation,
support and encouragement during the entire period my study.

Sandesh Karki
Symbol Number 12137/13
TU Registration Number 7-2-0364-0054-2013

3
 TABLE OF CONTENTS

Student Declaration........i
Certificate from the Supervisor..... ....ii
.

Acknowledgements....iii
Table of Contents......iv
List of Figures...........vi
List of Tables....vii
Executive Summary.........viii

CHAPTER I INTRODUCTION......1-8
1.1 Context Information.....1
1.2 Purpose of the Study....3
1.3 Significance of the Study.....4
1.4 Literature Survey.... .5 .

1.5 Research Methods Used for Data Collection and Analysis.....7

1.5.1 Nature and Source of Data....7
1.5.2 Methods of Data Collection......7
1.5.3 Techniques of Data Analysis....8

CHAPTER II DATA PRESENTATION AND ANALYSIS.10-36

2.1 Organization Profile.......10
2.2 Respondents Profile........ ...10 .

2.3 Data Presentation and Analysis..........11

2.3.1 Frequency of Customer Visit......11
2.3.2 Discovery........13
2.3.3 Motive Behind Visiting Jalan......15
2.3.4 Most Preferable Product.........17
2.3.5 Level of Satisfaction... ....19 .

2.3.6 Adequacy of Product.......21

2.3.7 Value for Money.........23

4
 2.3.8 Promotion Awareness.........24
2.3.9 Food Quality.......26
2.3.10 Ambience..27
2.3.11 Variety of Item..29
2.3.12 Timely Service..31
2.3.13 Personal Relation.. 33 .

2.4 Findings and Discussion....35

CHAPTER III CONCLUSION AND ACTION IMPLICATION. ...38-39

.

3.1 Conclusion.38
3.2 Action Implication.39

REFERENCES
APPENDICES

5
 LIST OF FIGURES

2.1 Frequency of Customer Visit.....13

2.2 Discovery...15
2.3 Motive....17
2.4 Most Preferable Product....19
2.5 Level of Satisfaction.. 21
.

2.6 Adequacy of Product.....22

2.7 Value for Money...24
2.8 Promotions Awareness..25
2.9 Food Quality......27
2.10 Ambience.....29
2.11 Variety of Item.....31
2.12 Timely Service.....33
2.13 Personal Relationship...35

6
 LIST OF TABLES

2.1 Respondents Profile...11

.

2.2 Frequency of Customer Visit.....12

2.3 Discovery...14
2.4 Motive....16
2.5 Most Preferable Product.. ..18
.

2.6 Level of Satisfaction.. 20 .

2.7 Adequacy of Product......22

2.8 Value for Money....23
2.9 Promotion Awareness....25
2.10 Food Quality.. ..26 .

2.11 Ambience.....28
2.12 Variety of Item.....30
2.13 Timely Service.....32
2.14 Personal Relationship...34

7
 EXECUTIVE SUMMARY

Jalan Jalan is a continental Restobar, founded in 2002. It is a top end restaurant that targets
customers living around Kupondole, Pulchowk and Sanepa area. Its main customers are
residents, foreigners and professionals working around the area. Jalan Jalan prides itself in
providing the best foods and beverages to its customers with excellent customer service.

There are different types of restaurants with different specializations. Restaurant industry
has become extremely competitive with the number of restaurant increasing every day. As
a result, it is important to have effective price and promotion strategy in place to remain
competitive. This study attempts to establish the price and promotion strategies used by
Jalan Jalan Restobar through questionnaire survey, interview with owners and observation.

Jalan Jalan does not have effective strategy to attract professionals working in surrounding
area as most reported to not visiting the restaurant frequently. Most of the respondents
reported to have learnt about the restaurant through friends which can be attributed to
excellent food and services provided by the restaurant. Jalan should also pride itself in
having a large base of highly satisfied customers. Jalans pursuit of high quality
ingredients with excellent customer service with reasonable asking price is also reflected
in a large number of respondents rating Jalan as providing high value for money. Based on
their responses, it is clear that Jalans aim of providing high quality food at a reasonable
cost is appreciated by customers. However, there seems to be a gap in the way the
restaurant promotes its products, services and offers as most of the customers seemed to be
in the dark about them. Also, the restaurant is lacking in personal relation marketing due to
lack of effective communication between restaurant management and employees about the
same.

Jalan employs a number of strategies for promotion including offering discounts,

distributing flyers and menus, hoarding boards, sending texts and emails with offers etc.
Jalan also has strong Facebook presence. However, they have not been able to leverage its
tools to increase profit. Interactions with social media over social networks can be an
effective means of brand and relationship building with customers.
8
9
 CHAPTER I

INTRODUCTION

1.1 Context Information

Business activities are conducted to satisfy human needs by producing goods or rendering
services. These activities are usually undertaken with the motive of making profit. All
business activities are classified on the basis of functions into two broad categories. They
are:
Industry and
Commerce

Industry is concerned with the production and processing of consumer goods, machinery
and equipment. On the other hand, commerce includes all activities that are necessary for
storage and distribution of goods which include trading, transportation, banking, insurance
and warehousing.

Industries can be further divided into two groups. They are

Manufacturing industry and
Services industry

Manufacturing industry refers to those industries which are engaged in production of

goods and services. Factories are set up for production of consumer as well as capital
goods. The examples of these industries are Biratnagar jute mill, Gandaki noodles industry
etc. On the other hand services industries are those types of industries which are
established to satisfy the needs of consumers by providing different services. The services
provided by them are intangible in nature. The examples of these industries are hospitals,
hotels, travel and tourism, restaurants etc.

Restaurants are that type of service industry where foods and drinks are prepared and
delivered to customers for profit. Restaurants are of different types. Following are some
well-known types of restaurants and their special characteristics:
1
Fine Dining Restaurant
This kind of restaurant primarily caters to the requirement of the affluent market segment
which wants to experience fine dining. The restaurant may either offer dishes of one
particular region or country or exotic dishes from various cuisines. The wait staffs
employed are skilled and have a sound knowledge of the dishes served. Fine dining
restaurants around Jalan Jalan Restobar include restaurants like Wicked Spoon Fork and
Rock, Tamarind etc.

Dhaba
It is a roadside food stall found on either side of roads, mainly catering to the requirements
of vehicle crews and travellers. It specializes in local cuisines, serving very limited dishes,
which are freshly prepared. The service is very informal with untrained wait staffs and
cooks. The dishes served here are inexpensive. Dhabas are very common in and around
streets of Kathmandu.

Fast Food Joint

The fast food concept was first introduced in the west and now it has become popular
around the world. It is characterized by the speed of service and the affordable price of the
menu items. Changes in eating habits, non-availability of time to wait at the table and eat,
advancement in food processing technology, growth of teenage market, and so on, have
contributed to the success of fast food industry. Fast food joints are usually located in very
busy area. Some popular fast food joints include KFC, Pizza Hut etc.

Night Club and Discotheque

It operates during the night & offers dinner, dance, & live entertainment. Dance floors
with exotic lighting, heart thumping music and specially prepared mixed drinks and beers
are the main attraction of night clubs. Youngsters are the main target of night clubs and
discotheques. Some of the most happening night clubs and discotheques in Kathmandu are
Dj Vu, Karma Lounge and Bar, Tunnel etc.

Cafe

2
This is a restaurant of western origin, mainly serving coffee and snacks. They are usually
small sized restaurants serving customers at the table. They have limited items in menu
with focus on simple food items and drinks.

Food Court
It refers to a number of independent food stalls, each serving items of food of differing
varieties. Customers order the food items they want to have and consume them at a
common dining area. The types of dishes offered represent local cuisine & dishes that are
popular globally. Food courts are found in big shopping malls, theatres, airports, and so on
where there is a heavy traffic of customers. Examples of food court are Civil Mall food
court, City Centre mall, and movie theatres of Kathmandu.

Pubs and Bars

They offer all kinds of spirits such as whiskey, rum, gin, vodka, brandy, tequila, wines, &
beers. Hotels & restaurants usually have an additional bar in the food service
area/restaurant to service wines, beers, and spirits.

Restaurants attract a wide demographic of consumers, creating a highly competitive

marketplace. Setting a restaurant apart through promotion requires creativity and a
willingness to try new approaches to attract customers and maintain a strong repeat
business. Effective marketing strategy must be done to keep current customers coming
back and bringing their friends by offering loyalty reward programs. Offering diners free
appetizers on their next visit or a discounted drink menu attract a large group.

1.2 Purpose of the Study

Restaurants are of different types with each specializing in different aspects of restaurant
business. Each type of restaurant has different marketing and pricing strategy based on
their target, specialization and services on offer. While night clubs and discotheques might
offer promotions on spirits, a fine dining restaurant might offer promotion on fine wines
and a fast food joint might offer promotions on burgers and combos.

Jalan Jalan Restobar is a restaurant and bar located in Kupondole Height and specializes in
continental dishes along with a few indigenous dishes and mixed drinks. They have three
3
tiers of space for dining and events indoor, outdoor and open air. It is located away from
hustle bustle of Kathmandu amidst lush greenery, beautiful flowers and serene landscape.
The study aims to find the pricing and promotional strategies used by based on its
strengths, products and services on offer.

The general objectives of this study are as follows:

i. To determine features, products and services offered by Jalan Jalan Restobar.
ii. To determine the promotion and price strategies used by the Restobar.
iii. To establish the effectiveness of price and promotion strategies used by the
Restobar based on interviews with its customers.

1.3 Significance of the Study

Restaurants develop marketing strategies to learn how to meet the needs of their target
customers in such a way that they return and spread the word. When finances are tight, a
family may choose to reduce or eliminate its budget for dining out, so restaurants need to
be thorough and deliberate in their marketing strategy. Food and beverage price is also one
of the most important strategical decisions to be made by restaurants. It is even more true
for price sensitive society like ours. Pricing decisions also help restaurants filter
prospective customers. For instance, not all people might be able to afford upscale
restaurants of Jhamsikhel because of their higher than average food price. Food price also
determines the quality of service that customers can expect from restaurants and are taken
into account by restaurants. Menu price is also directly related to peoples prestige as
people from higher echelon of society might prefer to visit expensive and upscale
restaurants.

Customers have become increasingly sophisticated in their choice of restaurants and food.
Also, restaurant industry has become utterly competitive with the number of new
restaurants increasing day-after-day. As a result restaurants need to compete for same
customer base with same resources. The only difference being the way restaurants market
and target their products and services. As a result, satisfying and retaining customers has
become more difficult for Jalan Jalan Restobar as well. Whereas Jalan Jalan used to enjoy
monopoly in the area a few years back, there are more than fifteen competing restaurants
within Jalan Jalans 200m radius now. Customers have become more quality conscious, so

4
they compare service offering of competing restaurants and opt for the one they deem to
be superior.

This study outlines the price and promotion strategies of Jalan Jalan Restobar. This
includes the way restaurant is presenting itself to its current and prospective customers,
strategies used by restaurant for its food and service promotion through traditional media
and modern day social media, personal relation, online, print and television
advertisements, collaboration with companies etc.

1.4 Literature Survey

Pricing is one of the important decisions that need to be made by a restaurant which would
affect its revenue and profitability. In determining the price of an item, a restaurant needs
to consider not only the costs it takes to produce the item, but also the customers
perception on the value of the product (Hanna and Dodge, 1995). Moreover, restaurants
strive to get the maximum margin by looking at a whole range of possibilities to set the
right price to certain types of customer.

In economics, Adam Smith gives the notion of price as value in exchange. Moreover,
price is determined by the intersection of supply and demand in the market, or the so
called market mechanism (Stiglitz & Walsh, 2006). From a marketing perspective, price is
defined as The amount of money charged for a product or service, or the sum of the
values that consumers exchange for the benefits of having or using the product or service
(Kotler and Armstrong, 2004).
With respect to the types of market, restaurants face different conditions in order to set the
price for its products. Restaurants, like any other businesses, have to follow the market
price. If it is more than market price, the consumers would not visit the restaurant and visit
other restaurants offering reasonable value for price they are willing to pay. Meanwhile, if
it is less than market price, customers would question the quality of restaurants products
and services.

According to Kotler and Armstrong (2004), price is one important element of marketing
mix. In determining price, restaurants should consider other marketing mix elements, due
to any decision made pertaining to those elements would affect the price too. Thus,
5
restaurants have to think comprehensively with regards to the marketing mix strategy,
especially when considering the price. In menu development stage, instead of analyzing
the product features first, restaurants can set the ideal selling price first for particular
customers, and then develop the menu to suit that price.

A Review of The Effect of Pricing Strategies on The Purchase of Consumer Goods states
that pricing strategy of any restaurant is determined by following three factors:
i. Industry strategy: This is the highest level of price management; the basic laws of
economics come into play. Changes in supply demand and costs have very real
effects on price levels.

ii. Product/Market Strategy: This is concerned with how customers perceive the
value of a restaurant and other similar restaurants. It is focused on getting the right
position for price in relations to competitors price.

iii. Transactional Strategy: It is the most complicated factor effecting price strategy.
It deals with the critical issue on how to manage the exact price charged for each
transaction i.e., what base price to use, and what terms, discounts, allowances,
rebates, incentives, and bonuses to apply etc.

Owners of independent restaurants are affected considerably and face many challenges,
such as decreased consumer demand and decreased sales which may threaten their level of
profitability (Lee & Ha, 2012). Creating marketing plans that contribute to effective
expenditure of resources and promote profitability is a task for restaurants. The challenge
for restaurants is relationship building with customers via marketing (Fiore, Niehm, Hurst,
Jihyeong, & Sadachar, 2013). Strategic execution of market and competitor analysis, and
how to adjust marketing strategies to meet target revenue and profitability goals are tasks
for restaurants (Desai, 2013).

Restaurants cannot afford to become content with the current customer base, but should
continue to be innovative in establishing and building relationships with customers (Fiore
et al., 2013). They should use social networks to convey their products and services and

6
retain customers (Koutroumanis, 2011). Restaurants at all times should explore new
strategies to continue building new customer base and remain profitable.

1.5 Research Methods Used for Data Collection and Analysis

This study is mainly focused on pricing and promotion strategies used by Jalan Jalan
Restobar. The qualitative data are used for analysis. The research is exploratory and
descriptive in design.

In this chapter the methodology and design of this study have been described. For
analysis, primary data sources are used that are collected during field visits.

1.5.1 Nature and Source of Data

The data used in this study are both quantitative and qualitative in nature. Both primary
and secondary sources have been used. The primary data are collected through field visits,
scheduled interviews and questionnaires and secondary data are collected from scholarly
reports produced by experts from colleges in Nepal and abroad and are easily available
online and from BBAs textbooks and international textbooks.

1.5.2 Methods of Data Collection

Semi-structured interviews with owner are conducted for collection of data related to price
and promotion strategy. Some of the data is also collected from first hand observation and
experience at the restaurant and its premises. Also, data obtained from questionnaire
response from fifty respondents are analyzed to reach a logical conclusion about pricing
and promotional strategies being used.

1.5.2.1 Interview
In this method of data collection interviews are conduct with owner and manager of the
restaurant. One-on-one interviews are conducted to understand the pricing and
promotional strategy used by the Restobar. The questions used for the interview are
attached in Appendix.

7
1.5.2.2 Questionnaire
Questionnaire has been posed in multiple choice format where Likert Scale, Dichotomous
(Yes/No) questions and Semantic Differential Scale have been used primarily. The
questionnaire used for this report are attached in Appendix.

1.5.3 Techniques of Data Analysis

The collected data are presented and analyzed in different statistical tools like pie chart,
bar diagram and radar chart. These tools along with their features in statistical analysis are
outlined as follows.

1.5.3.1 Pie-Chart
It is a statistical tool which is used for presentation of qualitative data in a circular
diagram. The area occupied by each pie in the diagram is proportional to the value of each
statistical data. The pie-chart is, thus, extremely useful for quick visual inspection of data
like comparing a slice of pie to whole dataset. For the purpose of this project pie charts are
made using Microsoft excel 2010.

1.5.3.2 Bar Diagram

It is a statistical tool which is used for presentation of qualitative data in vertical rectangles
with the length of each rectangle being proportional to the value of corresponding
statistical data. Bar diagrams are used for quick visual comparison of data like comparing
two different values within the dataset. Unlike pie-charts bar diagrams are not very useful
to compare individual data to whole dataset. For the purpose of this project bar diagrams
are made using Microsoft excel 2010.

1.5.3.3 Radar Chart

A radar chart is a graphical method of displaying data in the form of a two

dimensional chart of three or more variables represented on axes starting from the same
point. A radar chart consists of a plot along the axes of diagram with the length of each
variable along the axis representing the magnitude of variable. Radar charts are most
8
 suited for showing outliers and commonality in datasets. For the radar chart, the following
statistics are calculated:

Mean The average of all the values in the series.

Standard Deviation Indicates how widely data is spread around the mean

For the purpose of this project radar chart are made and mean and standard deviation
calculated using Microsoft excel 2010.

CHAPTER II

DATA PRESENTATION AND ANALYSIS

This chapter provides systematic presentation and analysis of primary data. Different
statistical methods described in chapter one have been used. This section is divided into
two sections. The first section deals with the presentation of primary data and presents the
result of questionnaire survey. The second section covers the analysis of statistical results
of collected data.
9
2.1 Organization Profile
Jalan Jalan (JJ) is a continental Restobar, founded in 2002. It is located in Kupondole
Height. JJ is a top end Restobar that targets customers living around Kupondole, Pulchowk
and Sanepa area. Its main customers are residents, foreigners and professionals working
around the area.

The view from JJ Restobar is very lively. Customers can see beautiful hills surrounding
Kathmandu along with Himalayan range when the sky is clear. Restobar also features a
stage where live bands perform on Friday evenings as well as various events are
conducted time to time. The aforementioned area used for live music is also suitable for
holding private/corporate events, conducting workshops and buffet lunch/dinner. Apart
from in-Restobar services, the Restobar also provides food delivery service to
offices/homes in surrounding area at affordable rate.

2.2 Respondents Profile

Table 2.1 shows the personal profile of the respondents. Regarding the gender of the
respondents, 60% of respondents are males and 40% are females. The age of the
respondents is divided into three groups. 50% of respondents are in age group 15-30 years,
36% are in age group 31-45 and only 14% are in age group >40. Also, 70% of respondents
were Nepalese and 30% were foreigners.
Table 2.1 Respondents Profile

Respondents Character No. of Responses Percentage

Gender

Male 30 60

Female 20 40

Age (in years)

15-30 25 50

30-45 18 36

>45 7 14

10
 Nationality

Nepali 35 70

Foreigner 15 30

(Source: Field Survey, 2017)

2.3 Data Presentation and Analysis

This section is concerned with the results of questionnaire survey conducted with the
customers of Jalan Jalan. It is designed to understand the view of the respondents in
relation to the different aspects of restaurant business, more particularly at Jalan Jalan.

2.3.1 Frequency of Customer Visit

It provides valuable information on loyal customers of the Restobar. Following table and
diagram shows frequency of customers visiting the Restobar:

Table 2.2
Frequency of Customer Visit
Frequency of Customer Visit Number of Customers Percentage

Daily 4 8

Weekly 18 36

Monthly 14 28

Occasionally 14 28

Total 50 100

(Source: Field Survey, 2017)

11
Table 2.2 shows the frequency of customers visiting Jalan Jalan Restobar. Of the total
customers who were interviewed, 4 said they visit the Restobar on a daily basis, 18 said
that they visit the Restobar every week, 14 said that they visit the Restobar every month
and 14 customers said they visit the Restobar only occasionally. This information is
graphically presented in following bar diagram:

Figure 2.1
Frequency of Customer Visit
20
18
16
14
12
10
Number of Customers
8
6
4
2
0
Daily Weekly M onthly Occasionally

Frequency of Visit

(Source: Field Survey, 2017)

12
Glancing at the above bar diagram shows that most of the customers visit Jalan on a
weekly basis. Based on our interview with owner of Jalan Jalan, the restaurant holds live
musical event every Friday and ladies night promotion on Wednesdays. This result is the
outcome of such events when customers prefer to visit the restaurant to maximize the
value for money with offers and live entertainment.

2.3.2 Discovery
Restaurant visibility is easily the most important aspect of promotion. A restaurant that
doesnt look like a restaurant from outside is unlikely to be visited by many customers. To
increase visibility restaurants can employ hoarding boards and light boards at the entrance.
Also a restaurant needs to promote itself in social, print and television media so that
prospective customers in geographically segregated areas come to know about the
restaurant as well. Social media like Facebook, Twitter, Instagram etc. have proven to be
extremely powerful and effective in targeting prospective customers because of granularity
in target audience selection provided by them. Social media collect data on people
interests over time from their surfing habits, likes/dislikes, friend circle, geographic
location etc., which in turn can be used for promotion. Similarly, word of mouth can also
be extremely important to spread the information on food and services provided by
restaurants.
Table 2.3
Discovery
Factors Consumer Percentages

Friends 23 46

Social Media 13 26

Light Board at Entrance 7 14

Other Media 7 14

Total 50 100

(Source: Field Survey, 2017)

13
Table number 2.3 shows data on how respondents of our survey discovered Jalan Jalan. 23
customers said they came to know about the restaurant from friends or family, 13 said they
learnt about Jalan through social media, 7 said they learnt about Jalan from its attractive
light boards outside the restaurant premise and 7 said they learnt about the Restobar from
some other media. This information is graphically shown in bar diagram:

Figure 2.2
Discovery
25
20
15
10
5
Frequency
0

Factors

(Source: Field Survey, 2017)

Most of the respondents said they discovered Jalan Jalan through referral by friends.
While social media and television ads have become ever more powerful marketing and
promotion tools, word of mouth from near and dear ones (friends, family, colleagues) still
trumps all other forms of promotion in Nepals context.
14
2.3.3 Motive Behind Visiting Jalan
Customers are the pillar of every restaurant and it is important to understand the factors
motivating customers to visit a restaurant. Understanding of customers visiting a
restaurant can be indispensable in developing effective marketing strategies to target
customers with similar taste and requirements and also ensure that existing customers
requirements are acknowledged. Following table shows the motivational factors to visit
Jalan Restobar:

Table 2.4
Motive
Factors Consumer Percentages

Quality food 18 36

Reasonable price 10 20

Hospitality 13 26

Ambience 9 18

Total 50 100

(Source: Field Survey, 2017)

Table number 2.4 shows the motivation factor to visit Jalan Jalan Restobar. Customers
were asked to select from a number of mutually exclusive reasons. 14 customers said they
visit for quality food, 13 customers each said they come for reasonable price and
hospitality and 10 customers said that they come for surrounding and restaurant ambience.
This information is graphically shown in bar diagram:
15
 Figure 2.3
Motive
20
18
16
14
12
10
Frequency
8
6
4
2
0
Quality food Reasonable price Hospitality Ambience
Motive

(Source: Field Survey, 2017)

Jalan Jalan Restobar is renowned for using extremely high quality ingredients in their food
and their lip smacking taste. This is easily reflected from the response as displayed above.

16
2.3.4 Most Preferable Product
Understanding of food most preferred by regular customers helps in developing extremely
effective menu for other prospective customers. Developing a menu targeting a particular
demographic group in turn helps in effective marketing of the restaurant. This information
helps to decide the product mix for Restobar. Following table shows the most preferable
product by consumers who visit Jalan Jalan Restobar:

Table 2.5
Most Preferable Product
Product Customer Percentage

Mixed drinks 13 26

Continental 15 30

Nepali Thali 13 26

Mediterranean dishes 8 16

Other 1 2

Total 50 100

(Source: Field Survey, 2017)

The table shows that 13 customers prefer alcoholic drinks, 15 customers prefer continental
food, 13 customers prefer Nepali thali, 8 customers prefer Mediterranean dishes and
1customer prefers others. This information is shown graphically in following bar diagram:

17
 Figure 2.4
Most Preferable Product
16
14
12
10
8
6
Frequency 4
2
0

Products

(Source: Field Survey, 2017)

Majority of denizens of Kathmandu are still alien to the concept of foreign cuisine, more
particularly European cuisines. This is reflected in the number of Continental restaurants
in the valley which can be counted in fingers. Jalan Jalan is one of the few restaurants

18
serving continental dishes and as per the survey continental dishes is the reason most of
the customers visit Jalan.

2.3.5 Level of Satisfaction

It is important for every business and not just restaurants to understand how satisfied their
customers with their products. Satisfied customers are the ones who might eventually turn
into repeat customers and repeat customers are integral to the success of every restaurant.
Thus, understanding customers satisfaction to products and services offered by Jalan is
extremely important to develop a large base of repeat customers. It is an important data
that every Restaurant needs to learn about and improve from.

Table 2.6
Level of Satisfaction
Level Customer Percentage

Highly satisfied 22 44

Satisfied 23 46

Neutral 5 10

Dis-satisfied - 0

Highly dis-satisfied - 0

Total 50 100

(Source: Field Survey, 2017)

Table number 2.6 shows the satisfaction level of visiting customers at Jalan Jalan
Restobar. It shows a high percentage of Jalans patrons are satisfied with products and
services offered by Jalan. 22 customers or 44% of total interviewed said they are highly
satisfied with services provided by Jalan. 23 customers or 46% of total interviewed said
they are satisfied with service provided by Jalan, 5 customers are neutrally satisfied with

19
service provided by Jalan and no customer said they are dis-satisfied with services
provided by Jalan. All this information is graphically shown in following bar-diagram:

Figure 2.5
Level of Satisfaction
25

20

15

10
Number of Customers
5

Level of Satisfaction

(Source: Field Survey, 2017)

Jalan Jalan prides itself in hiring the experts as a part of their staff members. This is
reflected in Jalan Jalans highly satisfied customers.

20
2.3.6 Adequacy of Product
Every restaurant should strive to offer a catalog of products without compromising other
aspects like quality of food, food turnover time, hygiene et cetera. Also, products and
services on offer should be adequate without being overwhelming. Moreover, restaurants
should rather offer limited products and services that are exceptional and uncompromising
on different aspects of restaurant and hospitality business rather than a gauntlet of products
and services none of which are particularly exceptional. Following table shows what
Jalans customers feel about adequacy of products offered by Jalan Jalan Restobar

Table 2.7
Adequacy of Product
Product Adequacy Customer Percentages

Yes 37 74

No 13 26

Total 50 100

(Source: Field Survey 2017)

The table shows that 37 customers think products and services offered by Jalan Restobar
are adequate and 13 customers feel otherwise. This information is also shown in following
Pie-Chart:
Figure 2.6
Adequacy of Product

21
 no
26%

yes
74%

(Source: Field Survey, 2017)

Jalan Jalan has 52 items in its food menu and 102 items in its drinks menu. While the
volume of menu pales in comparison to competing restaurants, Jalans customers believe
that its menu is best the way it is as reflected in response of respondents.

2.3.7 Value for Money

Correct pricing strategy based on target customers is the key to long term success and
sustenance of every restaurant. A restaurant risks losing invaluable customers if its food
pricing is not right for its target customers. For instance, a restaurant targeting students
should price their products low and aim to sell their products in volume. If done right,
proper pricing guarantees that a restaurant is prepared for long term success. Food and
service pricing can also determine the marketing mix to be used by a restaurant. Moreover,
the price of products must be justified by the quality of food and services provided by
Restaurant.

Following table shows how Jalans patrons feel about Jalans menu price:

22
 Table 2.8
Value for Money
Value for Money Customer Percentages

Yes 39 78

No 11 22

Total 50 100

(Source: Field Survey 2017)

Table 2.8 shows that 39 customers feel that Jalans menu price is reasonable and 11
customers feel otherwise. All these information are shown with the help of Pie-Chart as
follows:

Figure 2.7
Value for Money

no; 11

yes; 39

(Source: Field Survey, 2017)

23
Jhamsikhel and surrounding area is home to high profile personalities, NGOs, INGOs,
schools and colleges. It stands to reason that the area has developed into a hub for high
end restaurants looking to serve this crowd. As a result most of the restaurants around
Jalan Jalan are expensive. Jalan Jalan is one of the few treasures that offer high quality
food and services at a reasonable price as reflected in response of survey.

2.3.8 Promotions Awareness

Getting customers to come in and try a restaurants food is the first step in creating a
successful restaurant. By using promotional strategies (giving discount coupons, vouchers
encouraging customers to visit again, collaboration with companies like buy 2 get 1 free,
conducting fun games through social media etc.) that highlight the taste, creativity and
perhaps affordability of a restaurant items, restaurants can make customers interested in a
restaurant. Effective promotion strategies can also help transform new customers into
regular customers.
Table 2.9
Promotions Awareness
Promotions Awareness Customer Percentage

Yes 11 22

No 39 78

Total 50 100

(Source: Field Survey, 2017)

Table 2.9 shows that most of the customers of Jalan Restobar are not aware of promotions
it runs. The information is graphically displayed in pie-chart as follows:

Figure 2.8
Promotions Awareness

24
 Yes; 22%

No; 78%

(Source: Field Survey, 2017)

There seems to be a gap in the way promotions are run by Jalan Jalan as most of the
respondents seem to be in the dark about them. More effective personal communication by
managers and owners and better promotion through social media are required based on our
observation.

2.3.9 Food Quality

Quality of food product is directly related to the quality of ingredients used in its
preparation which in turn is directly related to cost. Generally speaking higher the quality
of ingredients, higher the cost of food. However, there can sometimes be prohibitive
difference in cost of ingredients that people deem to be acceptable and the ingredients that
are exceptional. There should be a balance between the quality of ingredients used and that
in turn should reflect in final price of food items. The customers were asked if they think
food quality effects the price of item in Likert scale as follows.
Strongly Agree 1 2 3 4 5 Strongly Dis-agree.

The responses to this by customer are presented in following table:

25
 Table 2.10
Food Quality
Level Customer Percentages

Strongly Agree 25 50

Agree 4 8

Neutral 5 10

Disagree 1 2

Strongly Disagree 15 30

Total 50 100

(Source: Field Survey,2017)

25 customers strongly agree, 4 customers, 5 customers are neutral, 1 customer disagrees
and 15 customers strongly disagree that food quality effects the price of food. This
information can be presented in Radar chart as follows:

Figure 2.9
Food Quality

26
 1

40

20
5 2

4 3

(Source: Field Survey, 2017)

Using excel to analyze the data, the mean of above statement is 2.54 while the standard
deviation is 1.775. This data reflects customers belief that quality of food at Jalan Jalan is
definitely above average with minor discrepancy between respondents.

2.3.10 Ambience
Restaurants need to provide ambience that is unique to their surroundings, type of food
and service and target customers. Different ambience caters to different target group. For
instance, fine dining restaurants might have an air of sophistication to them with beautiful
paintings, neat and tidy table arrangement, impeccable cleanliness, air conditioning etc.
while restaurants targeting foreigners might be filled with lush greenery, artifacts
representing local culture and tradition as showpieces and other unique selling points of
local culture to attract tourists but youngsters might be more into restaurants with modern
theme with loud music and exotic lighting.

The customers were asked about the ambience of Jalan Jalan in Likert scale as follows.
Strongly Agree 1 2 3 4 5 Strongly Dis-agree.

27
The responses to this by customer are presented in following table:

Table 2.11
Ambience
Level Customer Percentages

Strongly Agree 25 50

Agree 5 10

Neutral 8 16

Disagree 5 10

Strongly Disagree 7 14

Total 50 100

(Source: Field Survey,2017)

25 customers strongly agree, 5 only agree, 8 are neutral, 5 disagree and 7 strongly disagree
that Jalan Jalans ambience is great.

This information can be presented in Radar chart as follows:

Figure 2.10
Ambience

28
 1

40

20
5 2

4 3

(Source: Field Survey, 2017)

Using excel to analyze this data shows that mean of above data is 3.72 and standard
deviation is 0.251. Mean of 3.72 shows that ambience at Jalan Jalan is impeccable while
standard deviation of 0.251 shows little to no discrepancy between respondents.

2.3.11 Variety of Item

Restaurants offerings should be as diverse as possible without compromising on quality
of food and time to service to cater to largest population possible while at the same time it
should not be too diverse to confuse customers. While being able to cater to people with
varying preferences is important, it is also extremely important to have a few extra special
dishes. A menu without variety only caters to people with preference in the limited
selection of items on offer. It is also extremely important to be able to promote the
available selection to its intended target group.
The customers were asked about the variety of items available on menu at Jalan Jalan in
Likert scale as follows.
Strongly Agree 1 2 3 4 5 Strongly Dis-agree.
29
The responses to this by customer are presented in following table:

Table 2.12
Variety of Item
Level Customer Percentages

Strongly Agree 27 54

Agree 12 24

Neutral 5 10

Disagree 5 10

Strongly Disagree 1 2

Total 50 100

(Source: Field Survey,2017)

25 customers strongly agree, 5 only agree, 8 are neutral, 5 disagree and 7 strongly disagree
that selection of food items at Jalan Jalan is great.

This information can be presented in Radar chart as follows:

Figure 2.11
Variety of Item

30
 1

40

20
5 2

4 3

(Source: Field Survey, 2017)

Using excel to analyze this data shows that mean of above data is 3.72 and standard
deviation is 0.339. Mean of 3.72 shows that variety of products and services available at
Jalan Jalan is good while standard deviation of 0.339 shows discrepancy between
respondents.

2.3.12 Timely Service

Service time is an important aspect of restaurant business. Making hungry customers wait
for their order is a definite way to prepare restaurant for long term failure and in no way,
does it help build a catalog of repeat customers the reason behind every successful
restaurant business. No delicious food in the world can substitute for timely service.
Jalans customers were asked about timeliness of service as Likert scale as follows:
Excellent 5 4 3 2 1 Poor
Following table shows the result of respondents:

Table 2.13
31
 Timely Service
Timely Service Customer Percentages

Excellent 1 2

Very good 5 10

Good 14 28

Satisfactory 20 40

Poor 10 20

Total 50 100
(Source: Field Survey,2017)

The table above shows that 5 customers rated excellent, 14 customers rated good, 20
customers rated satisfactory and 10 customers rated Poor on timeliness of service at Jalan.

This information can be presented in Radar chart as follows:

Figure 2.12
Timely Service

32
 1.0

20

10

5.0 2.0

10
1 5

14

20

4.0 3.0

(Source: Field Survey,2017)

Using excel to analyze the data, the mean of above data is 3.66 with the standard deviation
being 0.982. Mean of 3.66 shows that service time at Jalan Jalan is good while standard
deviation of 0.982 shows that there is also a fair share of customers not happy with their
service.

2.3.13 Personal Relation

Customer loyalty and repeat business are the cornerstones of any restaurant. Losing a
customer is the absolute worst thing that could happen to any restaurant. While it is easy to
lose customer to a bad service or food experience, a polite apology or maintaining a
personal relation with customers is an extremely easy of building loyal repeat customers.
Asking for customers feedback, their experience at the restaurant, offering discounts or
complimentary dishes etc. are the gestures of maintaining personal relation with
33
customers. If a restaurant doesnt have any kind of relationship with a customer, they're
simply not going to be a customer. It is extremely important that they build a relationship
with customers.

The customers were asked about their personal relation with Jalan Jalan in Likert scale as
follows.
Strongly Agree 1 2 3 4 5 Strongly Dis-agree.

The responses to this by customer are presented in following table:

Table 2.14
Personal Relationship
Level Customer Percentages

Strongly Agree 5 10

Agree 10 20

Neutral 10 20

Disagree 15 30

Strongly Disagree 10 20

Total 50 100

(Source: Field Survey,2017)

5 customers strongly agree, 10 only agree, 10 are neutral, 15 disagree and 10 strongly
disagree that they have great customer relationship with Jalan Jalan.

This information can be presented in Radar chart as follows:

Figure 2.13
Personal Relationship

34
 1

20

10
5 2

4 3

(Source: Field Survey,2017)

Using excel to analyze this data shows that mean of above data is 2.7 and standard
deviation is 0.209. Mean of 2.7 shows that the restaurant has maintained good personal
relation with most respondents and standard deviation of 0.209 shows that there is little
discrepancy between response of respondents.

2.4 Findings and Discussion

Based on interviews with owners of restaurant, it was made abundantly clear that they
intended to target employees of NGOs, INGOs, schools and colleges in surrounding areas
for lunch and dinner. They extended the area of restaurant to create space for events
(corporate or otherwise). However, not many of the respondents said they visit the
restaurant on a daily basis. It is important to promote the restaurant in surrounding offices
by offering them discounts, by inviting them for special events, distributing brochures,
preparing separate office menu for office delivery, door-to-door marketing etc. It is
important to get them to try the restaurant in the first place after which relationship
marketing techniques along with impeccable services can help increase the frequency of
customer visit. This, in turn, will also help promote the restaurant through word of mouth.
35
It was found that Jalan Jalan already has strong social (Facebook) presence with 12,500
strong followers. However, skimming through their page reveals that the page is not
managed effectively. Social media can be an extremely powerful promotion tool and
despite having a strong presence, lack of effective management has created a void in
effective promotion. The restaurant heavily promotes its events on Facebook through paid
promotions. While the immediate effect of such promotions seems to be minimal
currently, they will definitely bear fruits in future when people become more sophisticated.

Jalan Jalan is a name synonymous with quality food. Although they were out of reach for
most people, they have policy to revise their price every two months. Based on customer
feedback, they reduced the price significantly. While this does have an immediate effect
on their bottom line, providing quality food at a reasonable rate will definitely serve them
best in the long run through word-of-mouth marketing.

People visiting the restaurant seem to be in the dark about promotions run by the
restaurant (independently or in collaboration with supplier companies). This shows the
lack of direct communication from the restaurant staff and lack of marketing of such
promotions. Although there are promotions on liquors and combo food items, not many
people seemed to know about them, nor did the service team bother to communicate the
same to the customers. This requires counseling on effective communication from the
executive team.

Personal relation is a strategic communication process that builds mutually

beneficial relationships between restaurant and their customers. Jalan Jalan seems to be
lacking in personal relation promotion. A customer may be convinced to select a restaurant
one time, but without a strong relationship marketing strategy, the customer may not come
back to that restaurant in the future. While restaurants combine elements of both
relationship and transactional marketing, customer relationship marketing is starting to
play a more important role for many restaurants. So, Jalan Jalan needs to beef up its
relationship marketing efforts.

36
 CHAPTER III

CONCLUSION AND ACTION IMPLICATION

3.1 Conclusion
In this qualitative and quantitative case study, I explored what pricing and promotion
strategies are used by Jalan Jalan Restobar based on survey with Jalan Jalans customers,
interview with owner and manager of Restaurant and observation.

37
Pricing and promotion strategies are pivotal decision for any restaurant. Pricing is a task
that needs to be periodically revisited to respond to changes in the industry, fluctuating
market prices and the mood of customers. Setting prices involves considering many
factors, including the cost of food, cost of labor, what the competition is doing and what a
restaurants target customers are willing to pay. Also, effective promotions implemented
by restaurants will optimize pricing strategies.

Food costs are one of the first considerations that go into restaurant pricing. This is simply
what it costs to procure the ingredients used in a dish. Interview with owner of Jalan Jalan
Restobar made it clear that they use extremely high quality ingredients for preparing their
food, for instance Mo.Mo.s are prepared using ground chicken meat from Thailand, pork
chops are imported from Australia and so forth.

While food and service aspects and ambience of Jalan Jalan are impeccable, they need to
improve customer interactions to foster better brand loyalty. While these interactions can
still occur in person or over the phone, much of relationship marketing has taken to the
Web. Despite having strong social media presence, Jalan has not been able to effectively
leverage their power. They need to be more active in conducting online events and
promotions that help bring in more customers to the restaurant. With the abundance of
information on the Web and flourishing use of social media, most consumers expect to
have easy, tailored access to details about a restaurant and even expect the opportunity to
influence products and services via social media posts and online reviews.

Based on my observation, other promotion strategies used by Jalan Jalan are as follows:
i. Ladies night discounts
ii. Discounts on combos
iii. Buy 2 get 1 free deals in collaboration with beer companies
iv. Incentive to service staff to increase sales and restaurant promotion
v. Sending texts and emails with special offers to customers based on available data
vi. Distributing flyers through newspaper vendors
vii. Distributing menus to surrounding offices
viii. Promoting events photographs on Facebook as a special attraction to ladies
ix. Paying reporters and publishers to write about Jalan and promote its special food
items
x. Hoarding boards outside the restaurant premise
38
3.2 Action Implication
On the basis of findings and conclusion of the research following are the
recommendations given to the Restobar:
i. Improve management-employee communication through effective counseling
and meetings to improve communication with customers and consequently
brand loyalty
ii. It would be advantageous to research the impact of gender, income, age,
nationality and purchasing behavior of customers visiting Jalan Jalan
iii. Leverage the tools provided by social media to improve customer flow and
promote products and services more effectively and frequently
iv. Restaurants marketing strategy's major goal is to increase profits, whether that
entails reducing prices or increasing customer visits or first-time customers.
Solid customer service needs to be top priority of Jalan Jalan.
v. Jalan Jalan needs to develop its brand and identity in the community.
vi. Interview with owners seem to indicate lack of knowledge of competition in
the area. Jalan Jalan needs to be aware of its competitions and strive to offer
similar or better products at competitive price. By determining where the
competition is excelling and where it is failing, Jalan can follow suit.
vii. Working population has hectic lifestyle. Proliferation of mobile devices and
ease of access of internet means people are more open to experiment ordering
online. Jalan needs to explore this option to gain access to untapped potential
customers from all over Kathmandu.

39
 REFERENCES

Ghimire, A. (2016). Fundamentals of Service Marketing, Kathmandu: Asmita Books

Publishers & Distributors (P) Ltd.

Adhikari, D. R. (2016). Essentials of Business Research Methods, Kathmandu: Asmita Books

and Publishers & Distributors (P) Ltd.

Shrestha, K. N. (2017). Fundamentals of Selling, Kathmandu: Nawin Prakashan

Hanna, N. and Dodge, H. R. (1995) Pricing Policies and Procedures, New York: New York
University Press

Stiglitz, J. E. and Walsh, C. E. (2006). Economics: California: W. W. Norton & Company

Kotler, P. and Armstrong, G. (2004). Principles of Marketing, New Jersey: Prentice Hall

Lee, K., and Ha, I. S. (2012). Exploring the impacts of key economic indicators and economic
recessions in the restaurant industry, Journal of Hospitality Marketing & Management

Fiore, A. M., Niehm, L. S., Hurst, J. L., Son, J., and Sadachar, A. (2013). Entrepreneurial

marketing: Scale validation with small, independently-owned businesses: Journal of

Marketing Development & Competitiveness
Desai, S. S. (2013). An analysis of the competitive marketing strategies of
the hospitality

industry in UAE: IUP Journal of Management Research

Koutroumanis, D. A. (2011). Technologys effect on hotels and restaurants:

Building a strategic competitive advantage: The Journal of Applied
Business and Economics

Faith, D. O. and Edwin A. M. (2014). A review of the effect of pricing

strategies on the purchase of consumer goods: International Journal of
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Jenkins, W. Y. (2015). Marketing strategies for profitability in small

independent restaurants: Walden Dissertations and Doctoral Studies
 APPENDIX I

Dear Respondent,
This questionnaire is developed as a part of partial fulfillment of degree requirements for
BBA conducted by K and K College. I would be obliged if you could take a few minutes to
complete this questionnaire. Your response will be used at aggregate level and will be kept
confidential.
___________________________________________________________________________
Age:
Sex: Male Female
Country:
___________________________________________________________________________

1. How often do you visit this Restobar?

i. Daily ii. Weekly
iii. Monthly iv. Occasionally

2. How did you learn about this Restobar?

i. Friends ii. Social Media
iii. Light board at entrance iv. Other Media
3. Why do you visit this Restobar?
i. Quality food ii. Reasonable price
iii. Hospitality iv. Ambience

4. Which of the following is your most preferable product at Jalan Jalan Restobar?
i. Mixed drinks ii. Continental food iii. Nepali thali
iv. Mediterranean dishes v .Others
5. Are you satisfied with service provided by this Restobar?
i. Highly satisfied ii. Satisfied iii. Neutral
iv. Not satisfied v. Highly unsatisfied

6. Are the products offered by this Restobar adequate?

i. Yes ii. No

7. Do you think the offering price is reasonable?

i. Yes ii. No

8. Are you aware of promotions offered by this Restobar?

i. Yes but never used them ii. I always use them iii. No

9. Please rate the following

Excellent Poor
Description 5 4 3 2 1

Quality of food

Ambience

Variety of item
Service time

Personal relation

Thank you for your invaluable time in filling up this survey.

APPENDIX II

Following questions were asked as a part of interview conducted with owner of Jalan Jalan.
1. When was Jalan Jalan founded?
2. Who are the target customers of your restaurant?
3. What are the main features of your restaurant?
4. What are the major promotional activities conducted by the restaurant?
5. How often is your restaurant frequented by employees from surrounding offices?
6. In what ways can customers order food from your restaurant?
7. Do you think products and services offered by your restaurant are adequate?
8. Do you have frequent collaborative promotions with supplier companies?
9. How would you compare the quality of your food items to that of other restaurants?
10. How is your social media presence?