People Innovation Excellence
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D’COST SEAFOOD RESTAURANT’S LOW-COST STRATEGY: THE LESS-TRAVELED ROAD TO SUCCESS

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Description
D’Cost Seafood Restaurant established a unique position in Indonesia’s restaurant industry; it successfully implemented its vision and mission to provide good quality seafood delicacies at a very affordable prices. Its tag-line, “Mutu Bintang Lima Harga Kaki Lima” (five-star quality at street hawker prices), was no marketing gimmick; it actually delivered that promise. Four years after the first branch opened, the business had 38 branches all over Indonesia.

The strong point of the D’Cost strategy was the huge faith on their customers and suppliers. Faith was the primary driver of their success, the underlying factor of their business strategy. Their supply chain strategy depended on good relationship with suppliers. Their promotion strategy was unheard in the industry – offering extras to customers. The Up To You Price, Age Discount, and Wedding Reception basically subsidized customers who, in turn became voluntary brand ambassadors.

Additional Information
Case number: 110-1119-003
Course Major: Product and Brand Management, Consumer Behavior
Related Topics: Marketing Mix, Product Offerings, Value Chain, Consumer Decision-Making Process
Teaching Note Availability: D’COST SEAFOOD RESTAURANT’S LOW-COST STRATEGY: THE LESS-TRAVELED ROAD TO SUCCESS [Teaching Note]
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