indled because of Sylvia’s long-standing strategies of offering products and services at high cost, playing outdated music and also due to the advent of more modern bars in the neighbourhood. This report will focus on the Sylvia’s Bar and will discuss its current situation or problems, coming up with recommendations for it to manage those problems.
High cost in the sense, Sylvia’s was established as a high class wine and cocktail bar, aimed at the customers, who constitute the top end of the market. Because of this focus on a particular target segment, the price of the drinks and the food was on the higher side. Although Sylvia’s Bar wanted to focus more on these high segment, who are able to pay the high prices. In the fact, with this pricing restrict its customer base. Due to these high pricing, other segments of the wide prospective customer base look for other options that the bar has to throw ingredients by the reduction of the customers, and this was validated by Sylvia’s waitress, Kate. “We throw too much food away, I’m not sure that the customers in town are looking for this kind of fancy stuff”. In addition, when a firm particularly in the service or hospitality sector, showcases itself as a high-class, then the targeted high-end customers would expect high class service, without any mediocrity. If those customer segments find anything below-average, they look for other options, which offer the same quality service at a far more competitive price. (Dale 2003). The strategy of keeping it ‘exclusive’ may not work all the time, because when the targeted particular segment of the customer base find other options, the firm may not have other customer segments to fall on. (Piron 2000). (Vickers and Renand 2003). So, by setting price on the basis of industry standards, and equal or less than its competitors, Sylvia’s Bar can expand its customer segment. Even while bringing in more customers, care should be taken not to compromise on the