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Mr . Radhashyam Arora had lived in Delhi ever since he could remember. His parents had arrived at the Old Delhi railway station after a
Mr Radhashyam Arora had lived in Delhi ever since he could remember. His parents had arrived at the Old Delhi railway station after a nervewracking journey through the plains of Punjab during the unbearably hot summer of Like most families displaced by the Partition, they had left behind a successful life in Sargodha. This small West Punjab town had become a part of Pakistan and the Aroras had to start their lives from scratch. The small tea stall started by his father was now an empire of sorts. Kwality Restaurant had become a much soughtatter brand name during the seventies and remained one of the city's leading restaurants. The restaurant, which operated out of the inner circle of the iconic Connaught Place, was situated midway between the two famous cinema houses of the town, the Regal and the Odeon. It was not unknown for leading political families of the period to head to the eatery after catching up with a movie at these theatres. The restaurant's wall was filled with pictures of wellknown politicians, authors, film personalities, and sportspeople dining inside its premises. On this particular day, Radhashyam Arora had an animated conversation with his daughter. Janhavi was his only child who had completed her MBA from a wellknown American university and was employed in a multinational bank in Delhi. In her spare time, she pursued her passion, which, as per her admission, lay in the restaurant business. RS: I have been thinking about your ideas about redoing the restaurant. As you know, I am now on the wrong side of seventy and, as you may understand, am conservative by default. It is not easy on my part to think of anything that would change the way this restaurant functions. Certain things have worked all these years, and I don't know why we should unnecessarily tamper with them. Janhavi: Firstly. Papa, you do not understand that the customer profile of this restaurant is not evolving, and that is such a bad thing. We are making money. But this place is no longer attracting the swish crowd. Most people here are oldstyle businessmen from Karolbagh or Geetacolony whose only attraction is our name. That name is becoming a liability. The younger crowd prefers eating pastry and drinking cotfee at Cat Coffee Day or Star Bucks, where they charge Rs for a cup. We are seen as a fuddyduddy outfit that sold chholebature and kulcha. Frankly, while studying at St Stephen's College, I used to feel ashamed of telling my friends that my family owned this dull, oldfashioned restaurant. Radhashyam Arora doted on his daughter. But this unabashed attack on the restaurant he had bulit over the years with his sweat greatly agitated him. RS: I think you should think twice before making such hurtful statements. This restaurant has sustained the family, paid for your college fees, and you have the gall to make such a statement. It is I who probably should be ashamed of you. Janhavi: I am sorry, Dad. Radhashyam took a tew moments to compose himself. RS: OK I must admit that I am getting old, and as my only child, you would inherit this place. I have no option but to hear you out on this. Please tell me what do you want to do with this place? J: Firstly, Papa, the demography of Delhi has changed over the years. Gone are the days when Connaught Place CP used to be the city's hub, and everyone came here for their shopping. The town has spread its wings to farflung places like Gurgaon, Noida, Faridabad, and Dwarka. Frankly, there is more action in Gurgoan these days than in CP We need to spread out. We have cash sitting idle in our banks.J: Our approach would be to reach out to the city and understand its needs across its spread. In Gurgaon, we shall focus on the young office goer. The guy or the gal heads to the bar after a grueling day at the office. Yes, our restaurant in Gurgaon would have a happening theme bar where an orchestra would play, and young men and women would have some space for dancing. The menu would be multicuisine and also include healthy foods. For Noida, we would have a different approach. Here the crowd is more familyoriented. Unfortunately, there are many multicuisine restaurants in that suburb. We shall differentiate with a restaurant that specializes in Goanese cuisine. The restaurant would have a Goan theme and similar architecture. Goa is a big draw as a holiday destination here in Delhi, and I think people would relate to it For north Deilhi, we shall zero on the student crowd. Some of the more renowned colleges in the country are located there, and students from all over India come here to study. They stay in local hostels or PGs The restaurant would be multicuisine, catering to the variety of tastes the students bring here. It should also be accessible on the pocket so as not to challenge their limited budgets unreasonably. RS: OK I am impressed. Isn't this segmenting; what you were telling me yesterday? By the way, what would you like to do with the CP restaurant? What would you do with our existing customer base? J: That would be a testament to your extraordinary devotion and hard work. It is a marquee restaurant. People have been coming here for generations. Why the other day, a Muslim couple had come from Pakistan and taken pictures they wanted to show their parents, whose marriage had been finalized in this very place. This would stay as it is We shall slightly tone down the spicy Punjabi fare. Most people these days are health conscious and prefer bland food.A What are the different ways of segmenting the market? B Which of them has been used by Ms Janhavi in the above case? Illustrate with specific examples from the case. C Critically examine how Ms Janhavi has sought to use the concept of segmentation in the above case. What would be your suggestions to her?
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