Marketing Strategies for Profitability in Small Independent Restaurants

Section 1: Foundation of the Study

Owners of independent restaurants are affected considerably and face

many challenges, such as decreased consumer demand, decreased sales, and

reduced disposable income, when the economy is unstable, which may

threaten their level of profitability and competitive advantage (Lee & Ha,

2012). The restaurant business is the second largest employer in the United

States, yet 67% of restaurants fail within the first 3 years of operation

(Frazer, 2012). Businesses leaders of small, independent restaurants may

need to use new marketing tools to attract and retain customers, increase

revenue, optimize products, and develop a comprehensive understanding of

customer needs in order to grow and sustain their business. Small,

independent restaurant owners should strengthen their competitive position

to seek effective marketing strategies to improve profitability and exceed

competitors’ strategies and performance (Desai, 2013).

Background of the Problem

Creating marketing plans that contribute to effective expenditure of

resources and promote profitability is a task for small business leaders such

as small, independent restaurant owners. The challenge for small business

executives is relationship building with customers via marketing, especially

because of resource constraints (Fiore, Niehm, Hurst, Jihyeong, & Sadachar,

2013). Marketing strategies for small-medium enterprises are different from

large enterprises because of these limited resources (Harrigan, Ramsey, &

Ibbotson, 2011). Strategic execution of market and competitor analysis, and

how to adjust marketing strategies to meet target revenue and profitability

goals are tasks for executives of small businesses (Desai, 2013). The ability

to react to changes in market conditions is an internal factor that influences

business performance (Ciemleja & Lace, 2011).

Small, independent restaurant owners 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).

Small business leaders should use social networks such as LinkedIn,

Facebook, and Twitter to filter marketing strategies and retain customers

(Koutroumanis, 2011). To remain competitive, small, independent

restaurant owners should explore new strategies to survive and remain

profitable.

Problem Statement

More than 99% of the businesses in the United States are small

businesses (Fox, 2013). Parrott, Muhammad, and Holliman (2010) stated

that the sustainability for small and medium-sized enterprises relies on the

understanding of competitive pressures and volatile market conditions.

According to the U.S. Small Business Administration (SBA), 50% of all

small businesses close within the first 5 years because of insufficient and

poorly executed marketing plans (Cronin-Gilmore, 2012). The general

business problem is that small business executives face profitability

challenges based on execution of marketing strategies. The specific

business problem is some small, independent restaurant owners lack

marketing strategies to generate profit.

Purpose Statement

The purpose of this qualitative, exploratory, multiple case study was

to determine what marketing strategies small, independent restaurant owners

need for profitability. Market requirements and conditions are pertinent to

establishing future sales, market share, and profitability (Ngo & O’Cass,

2012). The population was managers and employees from three small,

independent restaurants in Philadelphia, PA. Twelve managers and

employees participated in an interview.

This study may contribute to positive social change by enhancing

marketing intelligence and providing innovative strategies for domestic

deployment to small businesses in the United States. The results from this

study may influence small, independent restaurant owners by showcasing to

business leaders the importance of strategic marketing for sustainability,

long-term profitable growth, brand equity, and competitive advantage.

Small business restaurant owners should apply innovative market strategies

for growth and profitability (Smith, 2013).

Nature of the Study

This study was a qualitative, exploratory, multiple case study.

Qualitative, exploratory research allows a researcher to explore and use

personal stories to understand lived phenomena (Barratt, Choi, & Mel,

2011). In contrast, quantitative research methods help researchers to explain

relationships with the goal of confirming associations or correlations

between variables (Horsewood, 2011). Comparatively, qualitative research

involves the collection of data that may be easier to interpret versus numbers

and statistics presented in quantitative data (Sallee & Flood, 2012). Mixed

methods research encompasses the use of qualitative methods for

interpretation, description, and validation of quantitative findings (Harrigan

et al., 2012).

Qualitative ethnography research design is associated with

anthropology with a study focus on an entire culture group (Cibangu, 2013;

Hays & Wood, 2011). In qualitative discourse analysis research design,

textual units are examined, analyzed, and used to scope linguistic

expressions (Khoo & Jaidka, 2011). Qualitative grounded theory research

design involves saturated data, while phenomenological studies are focused

on the lived experiences of participants (Hays & Wood). Researchers use

the qualitative case study research design to explore and interpret multiple

facets of the phenomenon through an array of data sources (Baxter & Jack,

2008; Yin, 2003). The qualitative case study design aligned with this study

because other qualitative designs such as ethnography, discourse analysis,

grounded theory, and phenomenology were unsuitable for this study. The

qualitative, exploratory, multiple case study research design was selected

over quantitative and mixed methods research designs because the

qualitative, exploratory, multiple case study research design involves

analyses of systems and strategies (Baxter & Jack, 2008; Yin, 2003).

Implementing the qualitative, exploratory, multiple case study research

design was the best research method and appropriate in exploring marketing

strategy practices for three small, independent restaurants.

Research Question

The objective of this study was to explore profitability based on the

marketing strategies used by three small, independent restaurants. The

central research question was: What marketing strategies does the executive

of three small, independent restaurants need to generate profit?

Interview Questions

Participants answered the following questions:

1. What are the marketing strategies used to retain current customers and

gain new customers?

2. As a small business, what are the barriers to your business and

marketing strategies?

3. What are the unique characteristics of your company’s brand that

guide marketing strategies?

4. How does your company position its brand for competitive advantage

and profitability?

5. How do you measure the success or failure of your marketing

strategies?

6. How do you conduct your marketing profitability analysis?

7. What marketing performance tools have you implemented to track

trends and calibrate profitability?

8. What are your strategies to help maximize profitability?

Conceptual Framework

The fundamental concept of marketing strategies was the basis of

this study. Theories of marketing include brand equity theory, relationship-

marketing theory, and resource-advantage theory. The brand equity model,

developed by Aaker (1991), was the conceptual framework that I used to

complement this doctoral study. Brand loyalty, name awareness, perceived

quality, brand associations, and other proprietary brand assets are

dimensions of the brand equity model that provide value to the customer and

the business (Aaker, 1991).

Aaker (1991) theorized that effective marketing strategies and high

business performance are attributes of high brand equity. According to

Stahl, Heitmann, Lehmann, and Neslin, (2012), brand equity theory includes

knowledge, relevance, esteem, and differentiation as four pillars of value

that connect customers to the brand because of its quality, reliability, and

uniqueness. The likelihood of customers switching to a brand they are

familiar with is favorable because the risk of the product not suiting their

needs is less, rendering positive outcomes on acquisition and profit margin

(Stahl et al., 2012). In relationship marketing theory, organizational goals

involve creating a consumer champion or advocate that will recommend the

company (Bhattacharya & Sen, 2003). Hunt (2011) identified resource-

advantage theory as a constant investment of resources through an

evolutionary process for competitive advantages.

Highlighted in this review are various marketing theories. The

marketing theories included brand equity theory, relationship-marketing

theory, and resource-advantage theory. The brand equity theory of

marketing was adopted for this doctoral study as the conceptual framework

because brand equity was appropriate and relevant to exploring the

profitability of the marketing strategies used by three small, independent

restaurants.

Operational Definitions

Branding. Branding is the selection and blending of attributes

specifically and uniquely used attractive to consumers (Cheng, 2014).

Competition-based pricing. Competition-based pricing is when a

company sets and bases prices in accordance with the competition (Khan,

2014b).

Customer relationship management (CRM). Customer relationship

management is a strategic approach that is concerned with creating

improved shareholder value through the development of appropriate

relationships with primary customers and customer segments (Chiang,

2013).

Market analysis. Market analysis means to analyze the market

profitability and attractiveness (Cheng, 2014).

Marketing mix. A fundamental concept of marketing, which is a set

of controllable marketing tools executives use to create a desired response in

the targeted market, is a marketing mix (Khan, 2014b).

Marketing-mix adaptation. The process executives use to implement

its export strategy in response to internal and external forces is marketing-

mix adaptation

(Magnusson, Westjohn, Semenov, Randrianasolo, & Zdravkovic, 2013).

Market segment. Market segment is a group of consumers who

respond similarly to a given set of marketing stimuli (Cheng, 2014).

Assumptions, Limitations, and Delimitations

Assumptions

Assumptions, in qualitative research, are a supposition about what is

analyzed, what counts as evidence, and what counts as knowledge

(Chandler, 2013). Assumptions carry risks because prejudgments and

conjectures may taint knowledge obtained from the qualitative study data

results. In this qualitative study, I made assumptions regarding the

application of marketing strategies for small, independent restaurants. One

assumption that I made was that a lack of efficient implementation of tools

and systems for marketing strategies contributes to a deficiency in business

practices. The executive for the restaurants applied tools and systems for

marketing strategies efficiently and did not have a deficiency in business

practices. Another assumption that I made was that a flaw in the execution

of marketing strategies negatively influences profitability, as evidenced by

revenue targets and organizational growth. The executive implemented

sufficient marketing tools and systems for efficient business practices,

growth, and profitability (Andrew, 2011; Shin, 2013).

An additional assumption that I made was that participants would

understand the interview questions and would provide truthful and unbiased

responses. Participants understood the interview questions with

clarification, at times, for nonmanagerial employees. Participants’ responses

seemed truthful and unbiased.

Limitations

Limitations are constraints that challenge researchers conducting

qualitative, quantitative, or mixed methods research (Lakshman, 2012). The

first limitation was that, according to Goffin, Raja, Claes, Szwejczewski,

and Martinez (2012), an exploratory multiple case study of three small,

independent restaurants may be insufficient to provide adequate data to

answer the central research question, and may limit the ability to make

transferable business recommendations. Another limitation of this

qualitative study was the challenge of obtaining approval from the executive

to allow the inclusion of proprietary information, prior to submitting to the

IRB application to Walden

University’s Institutional Review Board (IRB). I obtained approval from the

executive to include proprietary information. I made presentations about the

purpose of the doctoral study prospectus to the executive, to address

feedback and concerns before initiating the study. I took feedback in the

form of one-on-one consulting with the executive for three small,

independent restaurants, which made the approval process easier to include

proprietary information.

Delimitations

Delimitations are controlled boundary conditions for theory (Ody-

Brasier & Vermeulen, 2014). The delimitation was the focus on marketing

strategies for three small, independent restaurants in Philadelphia, PA. The

participants of the qualitative study were 12 managers and employees. The

delimitation of the area and population were characteristics that did not

make the transferability of results from this qualitative study difficult to

apply other small businesses (Gau & James, 2013; Ody-Brasier &

Vermeulen, 2014).

Significance of the Study

Contribution to Business Practice

This qualitative study may contribute to information on how

executives can implement effective practice of business by exploring

marketing strategies for profitability for small businesses. The knowledge

obtained from study results may help small business leaders improve

business practices, as well as identify and determine factors that support

innovative approaches to improve revenue, profitability, and market share.

The implementation and effective execution of marketing strategies for

profitability are significant from a business perspective because they may

help small business executives accelerate growth, expand current market

position, solidify brand position, and achieve marketing targets. The

responses obtained from the data instrument may allow executives to use the

data to identify customer needs, analyze market trends, and forecast

marketing and brand strategies for business.

Implications for Social Change

The implications for positive social change include business

development for small businesses, such as small, independent restaurants, to

help elevate economic growth. A direct contribution to positive social

change may be to open up resource centers in the community that offer

information on marketing techniques, factor analysis, advertising

effectiveness, and marketing research for entrepreneurs and those seeking

business investments. Resource centers are institutions with a source of new

external knowledge for the community (Shaijumon, 2014). Business

development and implementing resource centers are implications for

positive social change because they help drive business success through

financial resources, technological resources, marketing strategies, and create

employment opportunities (Jasra, Khan, Hunjra,

Redman, & Azam, 2011).

A Review of the Professional and Academic Literature

The purpose of this qualitative, exploratory, multiple case study was

to determine what marketing strategies small, independent restaurant owners

need for profitability. In this literature review, I examined the various

strategies of marketing for profitability in small, independent restaurants

through marketing concepts and theories. Ninety-eight percent of the 105

sources in this literature review were peer reviewed, and 92% were

published within 5 years of expected Chief Academic Officer (CAO) final

approval.

The organization of this literature review starts with the fundamental

issues of marketing strategies, followed by theories of marketing: branding,

relationship marketing, resource advantage, and last a review on

profitability. I used the following EBSCO databases in my search for

professional and academic literature Business Source Complete,

ABI/INFORM Complete, SAGE Premier, Science Direct, Health Science

and Information and Technology databases. Books and journal articles were

the main publications used in the review. I retrieved these with the

following keywords: advertising, branding, competition-based pricing,

competitive advantage, customer engagement, customer relationship

marketing, customer relationship management, customer segmentation,

marketing–mix adaptation, market analysis, marketing mix, market

orientation, market segmentation, marketing strategies, marketing theories,

product development, profitability, pricing strategies, relationship

marketing, resource advantage, small business, small restaurants, social

marketing, and viral marketing.

Fundamental Issues of Marketing Strategies

The main goals of marketing strategies for business leaders are to fill

market needs, grow market share, and increase shareholder value (Jemaiyo,

2013). Small, independent restaurant owners must develop stakeholder

strategies to support annual strategic initiatives and assist in accomplishing

opportunities for growth. Small business leaders should gather all insights

regarding marketing activities to forecast growth and sustainability patterns

(Fiore et al., 2013). Identifying consumer insights and trends through

marketing assists with the evaluation of cost savings and other ongoing

initiatives, and may contribute to organizational growth.

Marketing new products keeps customers aware of new offerings; for

long-term growth organizations must involve innovation and insights from

customers (Barwise & Meehan, 2011). Executives use promotion,

advertising, fundraising, and public relations as principles of marketing

operations and strategy (Tabaku & Mersini, 2014). Small, independent

restaurant owners can attract new customers to apply marketing strategies

such as viral marketing, advertising, flyers, brochures, and outreach

(Tawanda, Future, & Angela, 2013). Creating and executing a coordinated

marketing plan for new and existing products and services may also help

small, independent restaurant owners make enhancements or modifications

based on adjustments in the competitive landscape. Small and medium

sized businesses with high levels of performance are descriptive when

documenting strategic marketing planning activities such as business

mission, marketing objectives in the area of market share, products and

services, and distribution (Ogunmokun & Tang, 2012). Using the concept

of marketing as an adaptive strategy is necessary to ensure resources are

available when implementing marketing activities (Tabaku & Mersini,

2014).

Leaders of small and medium sized firms should use more cross-

functional involvement with focus on inter-organizational partnerships,

intraorganizational partnerships, and training as a marketing strategy

(Gillian, Weerawardena, & Liesch, 2012). Training all staff on marketing

principles and the importance of market research is fundamental (Tabaku &

Mersini, 2014). Training executives from stakeholder organizations in areas

such as sales, services, and leadership are critical when implementing a

marketing plan (Janicic & Jankovic, 2014). Integrated marketing strategy,

external integration of resources, market research, steady marketing

management activity, and market orientation are basic principles of an

innovationmarketing model (Li & Ju, 2014). Organization commitment,

market orientation, business performance, and data sources (top

management, employees, annual reports) are the main factors in the

theoretical model when implementing internal marketing programs in

organizations (Zaman, Javaid, Arshad, & Bibi, 2012). Employees who are

loyalty and committed to an organization provide excellent service to their

customers and are concerned with organization growth when business

executives provide strategic rewards, effective training, and internal

marketing programs (Zaman et al., 2012). Market orientation and internal

marketing programs correlate with high business performance and

profitability (Zaman et al., 2012). An organization’s degree of market

orientation can be positive for business performance and profitability

(Jakada & Gambo,

2014).

A strategic marketing system entails a needs analysis, research and

analysis, creative infusion, strategic positioning, marketing plan

development and training, implementation, evaluation, and adjustment

(Janicic & Jankovic, 2014). A strategic marketing system is comprised of

approaches that can help leaders cultivate and enhance marketing plans and

marketing efforts. Marketing contributes to customer and shareholder value

through the development of customer-oriented solutions (Abernathy,

Kubick, & Masli, 2013). The analysis of customer data is extracted through

marketing strategies (Chiang, 2013). With the use of marketing strategies,

business owners are able to share concepts with consumers and stakeholders

to precipitate profit (Bettiol, Di Maria, & Finotto, 2012).

The implementation of aggressive advertising strategies is used as a

way to combat competitors’ attacks (Cheng, 2014). Aggressive marketing

can be implemented as a way for business leaders to provide differentiation

capabilities compared to competitors, act as a liaison between supply and

demand, and meet consumer expectations by dispersing better quality

products (Cheng, 2014; Sarathy & Banalieva, 2014). According to Cheng,

post-testing, recall tests, and recognition tests, are ways to assess, compare

and contrast-advertising strategies of competitors, and examine various

market segments. Business executives assess customers’ product awareness

and the effectiveness of advertising in the target markets by post-testing

(Cheng, 2014). Leaders implement recall tests to check the retention and

awareness level of customers about advertising (Cheng, 2014). Through

recognition tests, customers read advertising and note what they have seen

previously to help managers assess the advertising influence in different

market segments (Cheng, 2014).

Marketing managers should implement offensive and defensive

strategies to adopt a relationship marketing orientation approach centered on

three concepts: attracting, retaining, and regaining lost customers (Vivek,

Beatty, & Morgan, 2012). Offensive marketing strategies are marketing

planning goals of acquiring more customers, suggesting brand

modifications, and increasing purchase frequency (Vivek et al., 2012).

Small business executives should use offensive marketing strategies to

assess the value of engaging prospective customers and the value of

evaluating brand potential (Vivek et al., 2012). Executives should monitor

the activities and interactions of customers to determine what drives

customers to the product or brand (Vivek et al., 2012). Some prominent

classifications of marketing strategies for organizational growth and

profitability are the implementation of offense strategies for challenger

firms, intense growth, market penetration, product development, market

development and diversification strategies to growth (Bozkurt & Ergen,

2014). Using offensive marketing strategies may help small business

leaders such as small, independent restaurant owners determine if brand

modifications are needed to increase purchases. Defensive marketing

strategies are marketing planning goals to increase customer retention and

brand switching; small, independent restaurant owners may use defensive

strategies to maximize the effectiveness of marketing activities (Vivek et al.,

2012).

Strategy formulation and technology development can help aid the

decisionmaking capabilities and build a competitive advantage for small

restaurants (Koutroumanis, 2011). According to Sanchez, Popescy, Chivu,

Ciocârlan-Chitucea, and Popescu (2011), small and medium sized

enterprises contribute to 55%-95% of U.S.

Gross Domestic Product (GDP) and generate technical innovation

for the economy. Small business executives should use the Internet as a

marketing tool to avoid competitive disadvantages (Omar, Ramayah, Lim,

Mohamad, & Marimuthu, 2011). Using the latest technology to engage and

communicate with customers is important, because implementing

technology as a marketing strategy may help small business leaders forecast

customer expectations and values (Rowley, 2012). Measuring the outcomes

from web-based marketing may determine if it helps increase profit,

increase return on investment (ROI), enhance company brand, increase

customer loyalty, and improve business processes (Omar et al., 2011).

Word of mouth communication is a powerful marketing tool

(Vázquez-Casielles, Suárez-Álvarez, & del Río-Lanza, 2013). Viral

marketing, through word of mouth communication, is fundamental to

innovative marketing strategies; and is a good way for executives to promote

and strengthen brand, and to encourage loyal customers to spread the word

to other people (Lekhanya, 2014; Nejad, Sherrell, & Babakus, 2014). Word

of mouth consumer conversations about brand occurs 75% face-to-face,

15% via phone and 10% online with an estimate of 15 billion brand

impressions every week in the United States (Keller & Fay, 2012). Small,

independent restaurant executives can implement online marketing as a

communication platform to build relationships and customer loyalty

(Tabaku & Mersini, 2014). Small business executives need customers to

spread the message about the company and products because the ultimate

credibility source is customer to customer or customer to a new prospect

(Swenson et al., 2012). Marketing campaigns that incorporate incentives to

encourage viral diffusion may allow dissemination of the message to spread

beyond the anticipated pool of customers, and continue after the incentive

has completed (Ewing, Stewart, Mather, & Newton, 2014).

Social marketing is a way to add an implicit consumer endorsement of a

brand (Keller & Fay, 2012). Applying social media for brand equity as a

marketing focal point increases revenue and profits (Zailskaite-Jakste &

Kuvykaite, 2013).

Thirty-four percent of small business executives do not examine the

effects of marketing activity (Katona, 2014). Following up with existing

customers to confirm their satisfaction may help marketing managers who

work in small businesses establish, maximize, and maintain positive

relationships with existing and potential customers. Small business

executives should realize the importance of efficient marketing, because the

elements of marketing help operate and manage a small business (Katona,

2014). Marketing strategies and activities for small businesses are

distinctively different from those observed in large organizations (Bettiol et

al., 2012).

Through the analysis of a strategic marketing plan, small business

owners can obtain information on strengths, weaknesses, opportunities and

threats (SWOT; Janicic & Jankovic, 2014). Small, independent restaurant

owners should conduct research and a SWOT analysis of competitor's

strengths and weaknesses, and internal elements such as past sales,

consumers, and profitability per consumer (Janicic & Jankovic, 2014).

Small restaurant owners should use the data from research and SWOT

analysis, maintain industry statistical information and market research

resources, and implement a strategic marketing plan for profitability (Janicic

& Jankovic, 2014).

Marketing activities such as marketing communications, personal

selling, competition-based pricing, product development, and distribution

may help small, independent restaurant owners emphasize differentiation-

based product market strategies to meet market goals (Khan, 2014b;

Mohammed, Rashid, & Tahir, 2014). Executives can use marketing

communications to obtain information and advice, offer information about

products, and persuade target customers on the merits of a particular product

(Khan, 2014b). Information used to determine consumer preferences and to

segment consumers, benefit effective promotional programs and marketing

expenditures (Barber, 2014). Personal selling is a form of promotion that

small business restaurant owners should apply to market a product

successfully (Khan, 2014b). Small business restaurant owners can use

marketing activities to create a competitive advantage in the market and

provide a product that satisfy individual needs of customers (Khan, 2014b;

Mohammed et al., 2014). Maintaining customer retention favors cross

selling and an increase in purchasing frequency (Khan, 2014a). According

to Khan (2014b) the product is the core of the marketing mix strategy and

small business owners can differentiate their product from competitors and

offer broad product lines to enhance profitability and market share positions

in the market. Focusing on differentiation-based product market strategies

and resource deployments may help small business owners meet product-

market goals (Mohammed et al., 2014).

Small business restaurant owners should consider competition and

company objectives when implementing competition-based pricing as a

marketing activity (Khan, 2014b). With marketing innovation, small

business executives can use new methods for promotion or change the price

of the product to increase sales through new product introductions and

positioning strategies (Çetinkaya & Kalkan, 2014). Marketing is applied

through a unique marketing model structure, to gain better customer

satisfaction, higher market premiums, or higher sales efficiency (Li & Ju,

2014). Marketing managers should design products with a focus on

customers’ consumption behavior and customer satisfaction to measure

market premiums and sales efficiency (Li & Ju, 2014).

According to Li and Ju (2014) small businesses executives can use a

corporate marketing model structure as a tool to help improve customer

value, communicate efficiently and interactively, and reduce customer total

cost. Khan (2014b) advanced small business executives should use pricing

to reinforce other marketing activities because although higher prices will

lead to higher profitability initially, higher prices may result in lower sales

and profits in the long term. Creating short-term and long-term marketing

and advertising strategies that align to strategic plans may help small

business executives achieve profitability.

Branding

Strategically building a valuable brand increases customer value

perception, gives the product a higher quality level, and increases

profitability (Dogramatzis, 2012). Proactively innovating a business model,

product differentiation, and trend creation increases brand image (Yang &

Chiu, 2014). Small, independent restaurant owners should continue to

generate innovative product concepts to elevate brand growth.

Brand image can be an influential factor that causes customer complaints in

a restaurant (Kim & Boo, 2011). Brand strategists are tasked with using

various communication levels to determine which consumer populations are

most likely to talk about a company brand to help influence quantifiable

ways to sales and profitability (Keller & Fay, 2012). Companies that have a

strong brand name achieve better performance and marketing capabilities

(Jannesari, Ghorbani, & Haery, 2014). Hsu, Hung, and Tang (2012)

conducted in-depth interviews with restaurant managers to identify

marketing strategies and activities for building brand equity about

managerial strategies such as: production development, customer service,

restaurant ambience, and integrated marketing communication. Hsu et al.

(2012) analyzed data from the interviews and found customers age 21-30

years old place value on perceptions of looking, hearing, smelling, and

testing, and physical evidences such as meals, uniform design of staffs,

tableware design, and decorations of a restaurant. Customers age 31-40

value symbolic benefits and service attitudes because they want to feel

relaxed while dining and want to experience a friendly, enthusiastic, and

cheerful attitude from restaurant staff (Hsu et al., 2012).

The results of the study may help marketing executives develop,

evaluate, and enhance hospitality brand equity. Small business restaurant

owners can use the results to create marketing strategies and improve

customer value of brand equity. Brand creation, marketing internationally,

and searching for new marketing opportunities are ways small, independent

restaurant owners should strategize for profitability (Yang & Chiu, 2014).

Brand equity building is an important component for the competitive

advantage formation of a business (Zailskaite-Jaste & Kuvykaite, 2013).

When brand extensions are successful, companies gain additional customers

and organizational performance is superb (Singh, Scriven, Clemente,

Lomax, & Wright, 2012).

Brand and target identities should be transparent because the most

effective approach is to connect brand to consumer identity (Bhattacharjee,

Berger, & Menon, 2014). Enhancing brand image along with implementing

effective and interactive communication improves customer value (Li & Ju,

2014). According to Zailskaite-Jaste and Kuvykaite (2013), business leaders

should use social media as a marketing focus to allow consumers to

contribute to brand equity building and brand representation.

Zailskaite-Jaste and Kuvykaite advanced that through social media,

consumers can

decide how to interpret a brand and business executives can expand brand

awareness. Using social media will guarantee high consumer involvement

in communications that may increase brand equity, determine brand loyalty,

and increase revenue and profits (Zailskaite-Jaste & Kuvykaite, 2013).

Small, independent restaurant owners must be abreast of the

trademark distribution of competitors before promoting their own brand and

design a patent map to create an enterprise brand (Chen & Liang, 2013).

Building a patent map helps restaurant owners create a trademark map from

the company brand and find its position in the market (Chen & Liang, 2013).

Brand extension and brand equity is a way small, independent restaurant

owners can fill market gaps and hinder the expansion of its competitors’

market shares (Cheng, 2014). Brand equity and marketing activities are

pertinent to customer relationship retention and components of business

success (Hajipour, Bavarsad, & Zarei, 2013). Brand elements selection and

marketing strategies affect brand equity building (Hsu et al., 2012).

Business managers should design viral marketing and email message

execution regarding brand promotion, in an attractive manner in which the

recipients relate and contextualize the marketing strategies (San José-

Cabezudo & Camarero-Izquierdo, 2012). Implementing viral marketing in

collaboration with internal and external counterparts may drive brand

initiatives. The likelihood of customers purchasing products and services is

better when brand value and brand equity are superior (Chun-Chen, Szu-

Wei, Cheng-Yi, & Chang, 2014). A brand name is just as important as

product quality and product profitability (Hinterhuber & Hinterhuber,

2012). Companies such as Coca-Cola and Sony have established reputations

globally through branding (Kay, 2011). Small, independent restaurant

owners should involve customers in brand development because branding is

a blending of attributes used attractive to consumers (Cheng, 2014).

Companies with a brand image that include distinctive characteristics from

its competitors and attributes that are better than normal transparency of

product marketing, sustain long-term competitive advantage (Metaxas,

2010). Developing a valuable brand increases the product’s profitability and

sustainability levels and boost customer value, perception, and loyalty

(Dogramatzis, 2012). Business executives should review metrics regarding

profitability and market awareness when seeking cobranding strategies

(Kalafatis, Remizova, Riley, & Singh, 2012). Small, independent restaurant

owners can examine economic attractiveness, competitive intensity, and

differential product advantages through market characteristics, product

characteristics related to branding and pricing components, and business

portfolio priorities (Dogramatzis, 2012).

Budget comparisons, marketing objectives and goals, marketing

activities, sales channels, and positioning are areas within marketing

dynamics that small business executives can use as they conduct a marketing

audit (Janicic & Jankovic, 2014). Marketing strategies and marketing

capabilities that include an in-depth market and brand analysis may help to

support brand growth. Sixty percent of product decisions and 32% of

distribution decisions influence long-term brand sales (Ataman, Berk, Van

Heerde, & Mela, 2010).

Small business managers can promote brand and products to identify

market trends, propose customized marketing strategies, and execute market

campaigns through online interaction successfully (Pantano & Corvello,

2013). Small, independent restaurant owners can track and optimize brand

performance by using data analytics to help identify opportunities for

business growth and innovate brand initiatives. Using a virtual environment

for marketing may allow consumers to influence brand expression and

contribute the building, dissemination, and promotion of the brand

(Zailskaite-Jakste & Kuvykaite, 2013). Small, independent restaurant

executives should collaborate with consumers about website updates and

various multimedia sources to increase brand awareness and recognition.

Small, independent restaurant owners should use a logo, a website,

and a brand development model as elements of a marketing plan to execute

the brand (Holland & Weather, 2013). Holland and Weather (2013) opined

brand strategy coupled with an organization’s business strategy is a

marketing plan that promotes growth and strategic brand development

initiatives. The development and execution of marketing brand strategies

are key initiatives that drive brand awareness. Comprehending customers’

value and using marketing activities for positive investment may improve

brand performance (Herrmann, Henneberg, & Landwehr, 2010). Human

resources managers should create brand ambassadors because employees

should play an integral part in an organization’s brand strategy to deliver

brand messages properly (Holland & Weather, 2013).

Product development, promotion, advertising, and innovation are

marketing activities that help promote brands. Filtering on the knowledge

that consumers prefer brands positioned on their identity, Jif peanut butter

targets mothers with marketing messages by noting, Choosy moms choose

Jif (Bhattacharjee et al., 2014). A marketing strategy should include image

development and brand characteristics that allow organizations to have an

efficient marketing mix that reflects a trustworthy image (Torre,

Fenger, VanTwist, & Bressers, 2014).

Relationship Marketing

Relationship marketing, which encompasses relationship building

and market analysis of competitors and consumers, emerged as a marketing

theory in the early 1990s (Khan, 2014a). Relationships with customers and

competitors are forefront for a company when issues are addressed

regarding business strategy (Kay, 2011). The purpose of employing

relationship marketing is to allow small, independent restaurant owners to

use a strategic process to develop and maintain a profitable relationship

portfolio (Catoiu & Tichindelean, 2012). The application of relationship

marketing is significant to the profitability of a business (Borisavljevic,

2013). Small, independent restaurant executives should implement effective

marketing strategies that align with the business strategy, which includes

defining successful engagement of customers, prospects, and competitors in

the market arena (Jemaiyo, 2013).

Micro marketing, database marketing, one-to-one marketing, loyalty

marketing, wraparound marketing, customer partnering, and interactive

marketing are customer relationship concepts under the pillar of relationship

marketing (Khan, 2014a). Small, independent restaurant owners should

implement micro marketing as a proponent of the relationship marketing

process and strategic approach to customer engagement (Khan,

2014a). Small business executives apply relationship marketing to different

marketing activities ranging from consumer frequency marketing programs,

customer partnering, and interactive marketing, directed toward building

partnerships with important business customers (Khan, 2014a). Executives

implement loyalty marketing to show commitment and maintain a

relationship with the buyer; leaders use commitment as a variable to

measure the strength of a marketing relationship and predict future purchase

frequency (Khan, 2014a). Relationship marketing helps to foster the

competitive advantage through networks communications and interactions

during implementation marketing strategies (Gharehbashloni & Seify,

2014). Small business leaders should identify, develop, and execute new

business opportunities to build relationships with primary customers within

targeted market segments.

Customer relationship marketing (CRM) is a new paradigm and is

important to the service industry for leverage of customer and business value

(Chiang, 2013). The CRM strategy is an integration of marketing, sales, and

customer service with the objective of delivering customer value to enhance

marketing productivity (Soliman, 2011). Soliman (2011) advanced the

aspects of CRM, which include a primary focus on customers,

organizational efficiency, and customer knowledge management, help

businesses achieve a high marketing performance. Small, independent

restaurant owners should execute a CRM strategy to evolve marketing

communications, drive brand engagement, and generate profit. Small,

independent restaurant owners should invest in CRM technology and

systems, to improve electronic and direct marketing programs, enhance

prediction models, upgrade planning systems, improve organizational

structures, and increase profitability margins (Soliman, 2011). Small,

independent restaurant

owners should implement CRM and lead maturation to attain new customers

for targeted growth. Small business executives should apply relationship

marketing to maintain and improve competitive position in the market

(Borisavljevic, 2013). Soliman (2011) conducted a study of sales

administration and reported 50% of companies, which had a profit of more

than one million dollars in sales, had executives who practiced CRM.

Product, price, promotion, and place are the traditional 4P concepts in

relationship marketing for small business owners to improve its competitive

position in the market (Borisavljevic, 2013). Driven marketing approaches

involve the initiation of product strategies that foster the development of

product positioning, formulation, advertising, and pricing. Changing the

product might be necessary to maintain or grow market share because

product characteristics are also factors of brand loyalty (Schmidt & Ralph,

2014; Zailskaite-Jaste & Kuvykaite, 2013). Customers’ positive perception

of a brand cultivates relationship-marketing strategies (Radu, 2013). As

small, independent restaurant executives work to maintain current client

base, they should aggressively grow sales through prospecting and

relationship development with external stakeholders within designated

market territories. Managers can use brands and products to revitalize and

innovate customer relationships (Bettiol et al., 2012).

Effective marketing strategies should include leveraging products

and services to meet customer needs. Consumer identification, customer

acquisition, customer retention, customer development, and tracking

consumer information are steps in the process of relationship marketing

small business leaders implement to maintain lifelong relationships (Khan,

2014a). Marketing executives who implement relationship marketing may

improve marketing productivity, increase profits from 25-85%, and decrease

customer attrition by 5% (Khan, 2014a). According to Khan (2014a) small

business owners should use customer retention to obtain advantages from a

turnover perspective, and a costs perspective. Khan (2014a) conveyed

executives should track the fragmentation of consumer markets and

customer buying patterns in the development and growth of relationship

marketing.

The close relationship small and medium-sized enterprise leaders

have with customers along with market orientation affords them the

competitive advantage over larger businesses (Reijonen, Laukkanen,

Komppula, & Tuominen, 2012). The process of relationship marketing

requires the knowledge base of customers’ economic, emotional, and moral

needs, and mechanisms to serve and satisfy customers efficiently (Radu,

2013). Small, independent restaurant executives should use relationship

marketing to identify existing and potential customer segments and to invest

in new market segments (Micheaux, 2013). Employing relationship-

marketing strategies that encompass longterm communication processes to

capture customers’ point of view makes customers loyal to the organization

(Omidinia, Matin, Jandaghi, & Sepahyar, 2014). From a broader

perspective, positive relationships and customer satisfaction helps attract

new customers generate referrals, expedite the roll out of new products and

services, and improves brand equity (Agarwal, Chaurasia, & Negi, 2012).

Positive customer relationships are formed from the process of CRM,

because CRM creates customer awareness and customer engagement and

allow business owners to establish long-term, resource-manageable, and

profitable customer relationships (Chiang, 2013).

Proper implementation of relationship marketing helps business

managers successfully attract and maintain profitable clients, and establish

relationships with manufacturers and distributors for an optimization of

organizational, financial performances (Radu, 2013). Relationship

marketing is a way to establish a unique longterm relationship with

customers to drive business equities (Abeysekera, & Jayakody, 2011).

Small business executives should pay attention to customer needs as they

design, implement, and coordinate product strategies and other marketing

initiatives; the maintenance of customer interaction is important (Bouguerra

& Mzoughi, 2011; & Sanzo & Vazquez, 2011). Small, independent

restaurant owners should align the philosophy of relationship marketing with

a business and marketing plan to cut costs, increase incomes, and generate

intangible benefits (Radu, 2013).

Small, independent restaurant owners should develop relationship

marketing based on market situation and organizational characteristics

(Juscius & Grigaite, 2011). Intellectual assets regarding environment

cultivation such as customer, channel, and partner relationships are all

fundamental aspects of marketing strategies (Sarathy &

Banalieva, 2014). Marketing strategies are executed based on customer

segmentation. Small, independent restaurant owners need to establish a

process to help determine customer segmentation strategies based on

analysis of existing customer database and competitive and market

intelligence.

Retaining current partners and customers poses high economic

options (Kang, & Sivadas, 2013). Specializing in the acquisition of new

customers and retention of existing customers can help small business

executives leverage relationships to maximize revenue opportunities.

Customer loyalty is linked to financial success and profitability (Bowden &

Dagger, 2011). Fundamental components of strategic relationship

marketing are an increase in profitability and sustainable competitive

advantage for service organizations (Hashem, 2012). Relationship

marketing involves market success and profitability; small, independent

restaurant owners must be positioned to influence existing customer

relationships and adjust services, products or strategies as needed (Essawy,

2012). Creating a systematic follow-up process for all networking activities,

maximizing referrals, and focusing on a target market are strategies small,

independent restaurant owners should implement to improve marketing

activities. Evaluating existing products, services, market segments and

customer targets, as well as profitability can ascertain the need for new

products and services.

Relationship marketing presents a strategic response to businesses in

attaining competitive advantages and commitment with customers (Pereira,

Ferreira, & Alves, 2012). Understanding and responding to consumer

needs, operating in a competitive environment, and consumers’ preferences

are centralities of marketing (Sarathy & Banalieva, 2014). Small,

independent restaurant owners should make efforts to measure the value of

each customer (Radu, 2013). Business managers should take advantage of

complaints from customers and use it as a marketing tool to build long-term

customer relationships (Kim & Boo, 2011).

In relationship marketing, strategic competitive advantage involves

satisfying existing customers through buyer-seller relationships and

increasing corporate profitability (Khan, 2014a). Bilateral relationships,

seller-maintained relationships, and buyer-maintained relationships are

categories of buyer-seller relationships business executives can use to

incorporate relationship-marketing tool and build partnerships with

important business–to–business customers (Khan, 2014a). From a sales

management perspective, managers apply relationship marketing to various

marketing activities directed toward developing long-term relationships,

trust, and communication with customers (Khan, 2014a). Client orientation,

trust, commitment, teamwork, innovation, flexibility, and results orientation,

which are shared values related to the development of relationship

marketing orientation, should align with marketing strategies (Iglesias,

Sauquet & Montaña, 2011). Developing relationship-marketing programs

and valuing customers across cultures are important (Hui, Ho, & Wan,

2011). Relationship marketing will help businesses thrive in the market and

guard competition (Alvarez, Casielles, & Martin, 2011).

Small, independent restaurant owners should have their sales

management team review marketing campaigns, consumer frequency

marketing programs, and sales activities relating to data about business

partnerships when applying relationship marketing (Khan, 2014a). The

sales management team should conduct a review to seek information on the

competitiveness of the firm, transaction cost, financial performance, and

marketing productivity (Khan, 2014a). Influencing customers through

relationship marketing to achieve sales volume and margin targets may

provide small businesses the competitive advantage in the marketplace.

Relationship marketing represents a win–win situation for buyers and sellers

and helps guide the needs and interests of current customers with a focus on

building positive relationships (Agariya & Singh, 2011; Choo

& Petrick, 2012).

Relationship marketing focuses on enhancing, retaining, and

maintaining relationships with existing customers (Vivek et al., 2012); when

small, independent restaurant owners implement relationship marketing as a

strategic business plan, they should ensure that they are also developing

relationships with distributors, suppliers, and public institutions (Khan,

2014a). The high level of customer engagement that encompasses a

relationship-marketing strategy is pertinent to business executives because it

leads to customer retention (Hashem, 2012). Commitment and trust are

essential for promoting long-term relationships via the relationship

marketing approach (Johns, 2012).

Resource Advantage

The aspect of resource-advantage theory supports the notion that

valuable resources influence marketing strategy and export performance

(Magnusson et al., 2013). The objective of resource-advantage theory is

superior financial performance (Foss, 2012). Sustainable marketing and

economic growth are cross-functional disciplines in resource advantage

theory (Hunt, 2011). Operational practices of an organization around the

actions of competitors and suppliers and consumers’ behavior are concepts

of resource advantage theory (Griffith & Yalcinkaya, 2010).

Marketing is a solution for small businesses to distribute scarce

resources equitably (Baker, 2013). Scarce resources and lack of specialized

structures and competences may hinder the implementation of marketing

strategies and marketing planning for small businesses (Bettiol et al., 2012).

Marketing strategies that encompass sustainability align with resource-

advantage theory (Crittenden et al., 2011). Resources and high

financial performance are concepts of resource-advantage theory (Arnett &

Madhavaram, 2012). Resource-advantage theory is a theory centered on

competition, theoretical practices of business, and marketing strategy (Hunt

& Madhavaram, 2012). Resource diversity and market segments for

competitive advantage and disadvantage are important in resource-

advantage marketing strategy (Hunt, 2012).

Profitability

To accelerate profitability levels and be successful, executives have

to engage customers in product deployment, which will help drive the

market (Swenson, Rhoads, & Whitlark, 2012). Examination and analysis of

best market opportunities and creation of profitable strategies are elements

of strategic marketing planning (Ogunmokun & Tang, 2012). Small,

independent restaurant owners should create marketing strategies from the

analysis of customer segmentation to augment sales and profits (Hwang,

Lee, & Park, 2012).

Marketing strategies have an effect on financial outcomes for small

businesses (Solomon & Perry, 2011). An effective marketing strategy can

lead to increased sales and dominance in a targeted market (Jemaiyo, 2013).

Small business leaders can gauge market attractiveness based on growth rate

and profitability (Dogramatzis, 2012). Creating opportunity, multiplying the

effect, leveraging relationships, and making profits are elements of a

systematic framework used to measure and execute entrepreneurial

marketing (Swenson et al., 2012). Evaluating a business idea and the

dimensions of a product are ways leaders create growth opportunities and

develop responsive marketing strategies (Swenson et al., 2012). According

to Swenson et al. (2012) entrepreneurs implement the multiplying effect to

identify and partner with business stakeholders who have a significant

influence over the target market. Leveraging relationships with advisors,

suppliers, and customers may increase business success (Swenson et al.,

2012). Small, independent restaurant owners should use marketing

strategies to help identify specific buying and use trends of customers and

modify product specifications for profitability (Swenson et al., 2012).

Understanding use patterns may allow executives to understand customers’

needs and how to deliver value and recognize marketing opportunities

(Swenson et al., 2012). Small, independent restaurant owners should apply

market information management to grow market value and enhance

organizational performance (Shin, 2013).

Marketing activities should involve the analysis of data for

efficiency, marketing program pricing, and cost savings recommendations.

Implementing an analytical system that includes a reporting mechanism for

ROI, revenue projections, and industry and market developments is

important. Using marketing metrics to forecast profitability and evaluate

organizational performance are important for marketing managers, because

forecasting allows managers to analyze marketing effectiveness and return

on investment outcomes (Mitchell & Olsen, 2013).

Business executives should continuously use marketing to increase

profitability and growth through the assessment of market research and

customer dynamics

(Groenewald, Prinsloo, & Pelser, 2014). Business leaders must conduct a

profitability analyses to determine if marketing strategies permit allocation

of resources and innovative ways to foster and retain customer relationships

(Kumar & Rajan, 2012). Allocating higher expenditures for an effective

marketing innovation strategy and technology development is recommended

for small businesses, based on study results

(Çetinkaya & Kalkan, 2014).

Small, independent restaurant owners’ innovative-oriented strategies

and marketing activities help increase organizational sustainability

(Çetinkaya & Kalkan, 2014). Marketing strategies should include quick

product launches, and the identification of new market dimensions needed to

pursue and drive customers, and successfully drive profits (Swenson et al.,

2012). Small, independent restaurant owners should design marketing

practices on cross-functional and cross-buy opportunities to develop strong

customer relationships and drive sales (Shah, Kumar, Qu, & Chen, 2012).

Development and execution of marketing strategies and promotional activity

through the marketing mix may help achieve revenue targets for small

businesses.

For profit and growth, business executives must implement a

marketing strategy such as designing and redesigning companies’ products

and services to sustain competitive advantage (Civic, 2013). Small business

leaders should create information gatekeepers for product marketing to drive

profits (Chen & Liu, 2013). Andrew (2011) opined significant gaps between

marketing expectations and performance satisfaction are barriers called

tactical soup and failure to launch. Tactical soup is when business leaders do

not adequately prioritize strategies on how to generate revenue and

profitability through marketing activities, whereas failure to launch is when

business executives do not effectively implement marketing resources for

growth and profitability (Andrew, 2011). Small, independent restaurant

owners should review current marketing strategies to avoid tactical soup

(Andrew, 2011). Leaders should (a) put every marketing tactic under the

microscope, (b) calculate the value received from the marketing activity, and

Reviewing current strategies will allow leaders to explore the correlation of

between a marketing activity and business outcome (Andrew, 2011).

Andrew advanced email and direct mail campaigns must in a reliable and

accessible database and maintained continuously. Small, independent

restaurant owners should use marketing resources and convert business ideas

into revenue to avoid failure to launch (Andrew, 2011). Facilitating an

engagement with prospective clients and maintaining brand awareness are

marketing tools business executives can implement for growth and

profitability (Andrew, 2011). The marketing channels small business

executives use should incorporate customer feedback, as a way to increase

customer profitability and influence corporate profitability

(Karamehmedovic & Bredmar, 2013). Marketing executives should use

customer base and relationship with customers to create marketing programs

and initiate profitability (Pepe, 2012).

The effectiveness of marketing strategies is measured by analysis of

profits and sales (Jemaiyo, 2013). Eighty percent of the senior managers

ranked branding, marketing, and sales as important success factors for

business (Andrew, 2011). Sales promotions foster short run or long run

profitability (Zebra, Syeda, Malik, Batul, &

Syeda, 2012). Profitability levels relating to advertising are measured by

past sales figures with past advertising expenditures (Cheng, 2014).

Developing a marketing plan that creates new product concepts based on

customer insights and customer innovative recommendations may help

small business owners improve the performance of products and become

more profitable (Markides, 2012). Brand execution is essential to long-term

growth, whereas customer insights are valuable in guiding innovation and

resource allocation (Barwise & Meehan, 2011).

Profitable customer loyalty, business performance metrics, and

marketing-mix adaptation correlate to the following marketing-mix

variables: product, promotion and advertising, price, distribution, sales, and

sales force (Kumar, Sharma, Shah, & Rajan, 2013; Magnusson et al., 2013).

Profitable customer loyalty is fundamental to business success and involves

customers who exhibit attitudinal loyalty and provide profits for a firm

(Kumar et al., 2013; Magnusson et al., 2013). Increased customer loyalty

contributes to business profitability (Agarwal et al., 2012). Marketers

should implement a combination of promotional and advertising strategies to

reach profitability goals (Kumar et al., 2013; Magnusson et al., 2013).

Small, independent restaurant owners should develop pricing strategies

around business objectives, market conditions, and customer portfolios, as

they align marketing strategies (Kumar et al., 2013; Magnusson et al., 2013).

Effective marketing strategies can help small business owners enhance the

understanding of its position in the marketplace (Tawanda et al., 2013).

Effective sales promotions implemented by executives will optimize pricing

strategies; sales performance is an important indicator of customer loyalty

(Kumar et al., 2013; Magnusson et al., 2013).

Small, independent restaurant executives should develop marketing

plans around customer loyalty programs across multiple platforms.

Examining various distribution networks will help leaders build a loyal

customer base and more customer segments, which are primary marketing

strategies (Kumar et al., 2013; Magnusson et al., 2013). As small,

independent restaurant owners assess market needs, marketing specifications

and measure organizational growth, product innovation should represent the

voice of the customer through a strategic and operational marketing process

(Cherchem, 2012). For small businesses, major components of marketing

innovation are increased profits and market shares, and sustainable

competitive advantage (Çetinkaya & Kalkan, 2014). Small

business owners use corporate profitability and product characteristics as a

dimension of relationship marketing to connect to existing satisfied

customers (Khan, 2014a). Customer insights can help foster the process of

building a valuable long-term asset, brand equity, and a platform for

business growth (Barwise & Meehan, 2011). Financial and operational

accountability should align with marketing initiatives and strategies. Small,

independent restaurant owners must measure the effectiveness of marketing

program and strategies quantitatively and qualitatively. Small, independent

restaurant owners can use business and marketing strategies to shape,

achieve, and sustain the competitive advantage of their portfolio (Jemaiyo,

2013). Zaman et al. (2012) proposed business executives who apply internal

marketing programs have an influence on market orientation, business

performance, and profitability. High brand image, high company image,

and a well-maintained profit margin are success factors that may help small,

independent restaurant owners maintain its market shares and profit (Cheng,

2014). Small, independent restaurant owners may have a competitive

advantage on sales and marketing opportunities when brand image is high

because of customers’ brand loyalty and awareness (Cheng, 2014).

Customers’ positive perception of products and services attributes to high

company image and the quality of products and services delivery (Cheng,

2014). Executives should continue to analyze and evaluate brand equity

strategies and marketing approaches for profit margin (Cheng, 2014).

The focus of a marketing plan for small, independent restaurant

owners should be to create customer equity development and brand

valuation to facilitate the innovation of new products (Sarathy & Banalieva,

2014). Implementing creative project plans and strategic marketing plans

tailored to build products and brand equity may help small, independent

restaurant owners achieve annual profit and volume. Conducting a market

analysis when implementing a strategic marketing plan, is important for

small, independent restaurant owners, because using marketing analysis will

help position image and brand awareness (Janicic & Jankovic, 2014). As

marketing opportunities change, executives should stay current on trends

and consumers attributes for organizational growth and profitability

(Schmidt & Ralph, 2014). Small business executives should create strategic

marketing plans to target and grow revenue in each channel effectively.

Leaders should continuously assess the effectiveness of strategic marketing

initiatives and market channel. Small, independent restaurant owners should

become familiar with the attributes of competitive products and design new

products and programs in current and evolving markets to support

organizational sales and profitability.

Strategic marketing, marketing communication, and sales process are

integral parts of effective operational execution and profitability

(Bierbooms, Van Oers, & Bongers, 2014). Bierboom et al. (2014) advanced

executives should target markets, position products, and develop a

marketing communications plan for strategic marketing. Successful

marketing strategies may help leaders strengthen the market orientation and

increase profitability (Bierboom et al., 2014). Small, independent restaurant

managers must drive a customer retention strategy along with a marketing

strategy to help achieve brand goals and focus on growing revenue and

profits. Small business leaders should seek opportunities and threats

through the examination of how economic development of emerging

markets over time affects marketing strategies (Sarathy & Banalieva, 2014).

The chief marketing officer’s role is important to evaluate business

performances such as a low asset turnover and high profitability (Abernathy

et al., 2013).

Transition and Summary

In the beginning of Section 1 of this study, I provided the problem

statement and purpose statement. I aligned and justified both the problem

statement and purpose statement with peer-reviewed sources. The method

and design I chose were the qualitative research method and exploratory

multiple case study research design. I used the central research question to

determine the content for the interview questions.

After the discussion of the conceptual framework, I presented a

review of the academic and professional literature about various marketing

theories and strategies, and profitability for small businesses, to articulate

past research and contribute resourceful information to the study. In Section

2, a synopsis of the study is discussed, followed by the segments: purpose

statement, role of the researcher, participants, research method and design,

population and sampling, ethical research, data collection, data analysis

technique, reliability and validity, and transition and summary. In Section 3,

an introduction to the study, presentation of the findings related to the

conceptual framework, literature review, and data analysis of the results with

the themes identified are discussed. The segments application to

professional practice, implications for social change, recommendation for

action and further research, reflections, and study conclusions are presented.

Section 2: The Project

The objective of the doctoral study was to explore how executives can

implement marketing strategies for profitability in three small, independent

restaurants in Philadelphia, PA. I begin Section 2 with the purpose

statement, role of the researcher, and participants, followed by the

presentation of research method and design, population and sampling,

ethical research, data collection, and data analysis technique. The section

also includes the reliability and validity segments through a plan designed to

address the credibility, transferability, and dependability of research data and

results.

Purpose Statement

The purpose of this qualitative, exploratory, multiple case study was

to determine what marketing strategies small, independent restaurant owners

needed for profitability. Innovative approaches to marketing such as sales

promotions, product strategies, and advertising are marketing activities that

may bolster market share growth and profitability (Shin, 2012). This study

may contribute to positive social change by enhancing market intelligence

and providing innovative strategies for domestic deployment of marketing.

Business executives may use the results of this study to develop strategic

marketing strategies and initiatives for growth, business sustainability, brand

equity success, and competitive intelligence. For growth and profitability,

small, independent restaurant owners should implement innovative

marketing strategies (Smith, 2013).

Role of the Researcher

The role of a researcher in the data collection process is to use

reliable and valid data collection instruments for accurate representation

(Parker, 2012). In the data collection process, I collected and analyzed

qualitative data to evaluate outcomes that support marketing strategies for

profitability in small businesses. I interpreted the data and minimized

personal bias to avoid ethical issues that may relate to validity, reliability,

and authenticity (Street & Ward, 2012). The process included providing a

clear and concise explanation of the goals and objectives of the research to

each participant, and furnishing clarity of language and content to eliminate

incorrect analysis. According to Wikman (2006), problems associated with

word ambiguity, and the limitations of everyday language are from lack of

clarity. I reviewed the Belmont Protocol Report

(U.S. Department of Health and Human Services, 1979), and completed the

National Institutes of Health (NIH) web-based training course (see

Appendix A), to ensure compliance with ethical standards and the protection

of human research participants. As a native and resident of Philadelphia, this

study focus related to my professional and academic interests. The study

involved data collection that may provide performance trends and marketing

strategies regarding the success or failure of small businesses in

Philadelphia. A qualitative approach to the study helped me explore the

interdependence between marketing strategies and profitability for small,

independent restaurants in Philadelphia (e.g., Starke, 2013).

Participants

The owner of three small, independent restaurants in Philadelphia,

PA, participated in this study. To gain access to participants, I used personal

and business networking strategies with the owner. I conducted a

purposeful criterion sampling process of 12 managers and employees who

met specific criterion for the study (Patton, 1990).

The small sample size of 12 is appropriate for an exploratory case

study (Guo, Porschitz, & Alves, 2013). I selected two managers and two

employees from each of three small, independent restaurants, for a total of

12 individuals. When using qualitative research, small samples and validity

are incorporated (Bleijenbergh, Korzilius, & Vershuren, 2011). The number

of participants chosen, as well as the target population of managers and

employees, was sufficient because the participants had a general knowledge

base of marketing and experience in the restaurant industry, which was the

eligibility criteria for study participants.

Purposive sampling involves participants who can provide data

sources and insights into the research questions because of their knowledge

of marketing (Wan & Ng, 2013). I implemented criterion sampling for this

research, which is a type of purposeful sampling that entails inclusion

criteria (Patton, 1990). The goal of a researcher, when implementing a case

study research method, is to report data from participants in a truthful and

unbiased manner rather than manipulate conclusions (Amerson, 2011).

Research Method and Design

When conducting research, the researcher has three types of research

methods to consider; quantitative, qualitative, and mixed methods (Ostlund,

Kidd, Wengstrom, & Rowa-Dewar, 2011). Researchers implement the

quantitative method for deductive research when testing relationships

between variables and hypotheses (Klassen, Creswell, Clark, Smith, &

Meissner, 2012). The qualitative research method entails inductive and

deductive research with a focus on contexts and human experiences

(Klassen et al., 2012). Qualitative research involves credibility,

transferability, and dependability, while quantitative studies depend on

quality criteria such as external validity, generalizability, and reliability

(Wisdom, Cavaleri, Onwuegbuzie, & Green, 2012).

The mixed methods research encompasses three basics types of

designs; convergent (or parallel or concurrent), sequential (or explanatory

sequential or exploratory sequential) and embedded (or nested; Klassen et

al., 2012). Researchers employ the mixed methods research to make

philosophical positions through collection of quantitative and qualitative

data (Klassen et al., 2012). Quantitative and mixed methods research was

considered; the qualitative research method was chosen for this study. The

qualitative research method was appropriate because I sought answers on

why and how with the goal of getting an in-depth analysis of marketing

methods for small businesses through semistructured interviews (Uluyol &

Akci, 2014). Prowse and Camfield (2013) explained that life history

interviews and semistructured interviews are suitable and focused qualitative

research methods. Qualitative research is important to help discover,

comprehend, and interpret processes and experiences in individuals, teams,

and organizations (Bluhm, Harman, Lee, & Mitchell, 2011). Data obtained

from applying the qualitative research method may clarify strategies and

techniques needed to improve profitability through the execution of

marketing strategies for small, independent restaurants.

Research Method

I used the qualitative research method to analyze marketing strategies

for profitability in small, independent restaurants. Qualitative research

methods help build theory and support conceptualization (Doz, 2011).

Qualitative approaches help researchers to understand possible changes

needed in processes around organizational culture (Garcia & Gluesing,

2013). Qualitative data are beneficial to understand the nuances of customer

behavior (Zenobia & Weber, 2012).

I used semistructured interviews and archival records from three

small, independent restaurants as sources of information for the qualitative,

exploratory, multiple case study (Yin, 2009). Using additional sources to

collect information added rigor and guided me throughout the study (e.g.,

Yin, 2009). I used archival records to obtain information about previous

data in areas such as business strategies, marketing trends, and profitability

for three small, independent restaurants (Liu et al., 2012). This study

had a consumer focus and qualitative research strategy (e.g., Chikweche &

Fletcher, 2012). Personal categorizations and perceived association with

qualitative methods involve responses from participants (Cieza, 2012).

Small, independent restaurants may use data acquisition from participant

interviews and data results as an apparatus to measure marketing strategies,

perform periodic market analysis, and assess market share for profitability.

Research Design

A researcher can implement case study research, when examining

organizational phenomena (Hoon, 2013). Case studies involve an analysis

of projects, policies, and systems, and capture characteristics of real life

events (Lalor et al., 2013; Thomas, 2011). Case studies consist of

descriptive, explanatory, exploratory, intrinsic, instrumental, multiple case,

holistic single case, and single case with embedded units, which are the

preferred options for qualitative research (Stake, 1995; Yin, 2003, 2009).

According to Yin (2003), a researcher should use an exploratory case study

research design to analyze situations, when the interventions evaluated have

no clear set of outcomes. Bengtsson and Johansson (2012) applied the

exploratory case study design to examine sustainability opportunities for

small-medium enterprises through cross-functional business relationships

with large firms. Heijes (2011) used the exploratory case study design to

gain knowledge and obtain an in-depth analysis of diversity policy

development through organizational context. Researchers can apply the

exploratory case study research design to analyze data from interview

questions and obtain information from multifaceted context (Conboy,

Fitzgerald, & Mathiassen, 2012).

A multiple case study design enables the researcher to explore

differences between cases and conduct a cross-analysis of cases with the

goal to replicate findings across cases (Yin, 2003). Terziovski and Hermel

(2011) used a multiple case study approach to explore the role of quality

management practice in the performance of integrated supply chains (ISCs)

and examine major implementation decisions of strategic quality in the

supply chain. Booth (2012) used a multiple case study approach to examine

three online learning communities for K-12 educators and explore how to

support users through trust and knowledge sharing practices. Researchers

can implement cross-analysis and replication of findings to explore multiple

facets and variations of cases through the multiple case study research sign

(Baxter & Jack, 2008; Yin, 2003). Other types of case studies

reviewed and considered were descriptive, explanatory, intrinsic,

instrumental, holistic single case, and single case with embedded units

(Stake, 1995; Yin, 2003). Researchers use the descriptive case study design

to describe an intervention or phenomenon and the real-life context (Yin,

2003). A researcher uses the explanatory case study design when attempting

to answer a question regarding real-life interventions too complicated for

survey or experimental strategies (Yin, 2003). When a researcher has an

interest in the case but does not have a purpose to understand abstract,

construct, or generic phenomenon, the intrinsic case study design is used

(Stake, 1995). Researchers apply the instrumental case study design when

seeking to pursue an external interest, gain an in-depth insight into an issue,

or help refine a theory (Stake, 1995). A holistic single case study design

requires a unique single group in one environment (Yin, 2003). Single case

study design with embedded units involves the analysis of sub-units for a

unique single group within a larger case (Yin, 2003). Case studies with

descriptive, explanatory, intrinsic, instrumental, holistic single case, and

single case with embedded units did not align with the purpose of this study.

I reviewed and considered other qualitative research designs such as

ethnography, discourse analysis, grounded theory, and phenomenology

(Cibangu, 2013; Hays & Wood, 2011). In ethnography, the researcher seeks

to understand the cultural practices of participants and is not appropriate for

this study (Herrmann, Barnhill, & Poole, 2013). A researcher using

discourse analysis explores the understanding of textual units and discourse

relations; discourse analysis was not a suitable research design for exploring

marketing strategies (Khoo & Jaidka, 2011). Grounded theory research

involves developing a theory to generate data grounded in participant

experiences and perspectives; in contrast, the goal of phenomenology

research is to obtain participants’ lived experiences (Hays & Wood, 2011).

Neither research design aligned with the purpose of this study.

I selected the exploratory multiple case study design for this study.

Implementing the exploratory multiple case study design enabled me to use

data outcomes as a provision for strategic and business analytics on

marketing strategies for tangible growth and profit in three small,

independent restaurants. Applying the exploratory multiple case study

approach enabled multifaceted explorations of marketing strategy practices

for three small, independent restaurants (Crowe et al., 2011). I chose the

qualitative, exploratory, research design over ethnography, discourse

analysis, grounded theory, and phenomenology because the other designs

did not align with process to explore and conduct an in-depth analysis of

marketing strategies (Amerson, 2011; Heijes, 2011).

I used methodical triangulation in this study to enhance the

trustworthiness of the research (Denzin, 2012; Yu, Abdullah, & Saat, 2014).

Methodical triangulation and multiple data gathering techniques are

pertinent strengths of case study research (Denzin, 2012; Yu, et al., 2014).

Data saturation is when data obtained from continuous interviewing have

been examined and indicate no new themes or information (Guest,

Bunce, & Johnson 2006; Poghosyan, et al. 2013).

Population and Sampling

The population for the study consisted of 12 managers and

employees from three small, independent restaurants in Philadelphia, PA.

Two restaurants were full-service and one was a café, specializing in soul

food and southern cuisine. I embedded the qualitative, exploratory, multiple

case study in the business setting for each restaurant through the purposeful

sampling technique (Lasch et al., 2010). I had a 6-year business relationship

with the restaurant owner, which helped with the consent process to

interview employees. Using my business relationship with the restaurant

owner, I obtained a list of all managers and employees of the independent

restaurants from the human resources department, which included contact

information.

Guest et al. (2006) deduced that a sufficient sample size for a case

study is around 12. Criterion sampling is a type of purposeful sampling,

which involves selecting cases that meet a predetermined criterion (Patton,

1990). Using a purposeful criterion sampling technique, I interviewed 12

managers and employees from three small, independent restaurants in

Philadelphia, PA. Guo et al. (2013) used a small sample size when they

conducted an exploratory, qualitative, case study on the career experiences

of Chinese self-initiated repatriates after their return to China. Using a

sample size that is larger than needed poses the ethical issue of uselessly

employing research funds and wasting participant time (Francis et al., 2010).

Data saturation was ensured when no new information or themes

presented after continuous interviewing (Guest et al., 2006). The eligibility

criterion for participant selection was that study participants were employed

at the restaurant for a minimum of 6 months and had 1-year prior experience

in the restaurant industry. Managers had a minimum of 1-year of experience

providing direct supervision. All participants were a least 18 years of age.

The race and gender of managers and employees were not a part of the

criteria in the selection process. These eligibility criteria that I applied in

this study provided the chance of obtaining a sample of study participants

who have a solid knowledge base of marketing (Wan & Ng, 2013).

Ethical Research

Approval from Walden University’s Institutional Review Board

(IRB) via the IRB application process is important before data are collected

to address compliance. I received approval from Walden University’s IRB,

IRB approval # 05-22-15-0169162, before collecting and analyzing data.

The areas of compliance included: proposed research, community research

stakeholders and partners potential risks and benefits, data integrity and

confidentiality, potential conflicts of interest, data collection tools,

description of the research participants, and informed consent (Walden

University, 2015). The goal of the IRB process is to invigorate research

ethics and avoid exploitation of study participants to access three ethical

principles: respect for persons, beneficence, and justice (Shore, 2009). I

followed the consenting process once IRB approval was given, by inviting

12 managers and employees from three small, independent restaurants to

participate in the study and presented the design and purpose of the study.

Appendix B is an email invitation, sent before submitting the IRB

application, containing a synopsis of the study and requesting the executive

to participate in the study. Appendix D is the Letter of Cooperation the

executive signed and submitted to me when agreement was made to

participate in the study. Participants had the right to refuse to answer

particular questions or withdraw from the study at any time by verbal

notification or submitting me a signed letter. All participants decided to

participate in the study. Participants did not receive incentives to participate

in the study. I protected the names of each participant and restaurant by

implementing an alphabet and numeric coding system to maintain

confidentiality. I will secure and store the data for 5 years under a file

requiring a password to meet the requirements of the IRB, before deleting

electronic files.

Data Collection Instruments

The purpose of this qualitative, exploratory, multiple case study was

to determine what marketing strategies small, independent restaurant owners

needed for profitability. In qualitative research, the researcher commonly

uses interviews as a data collection instrument (Tessier, 2012). Sánchez-

Rodríguez and Spraakman (2012) used semistructured interviews with open-

ended questions to interview controllers from 13 Canadian firms, to explore

modifications that enterprise resource planning (ERP) implementations have

had on performance measures and management accounting techniques.

Sakulkijkarn (2012) applied semistructured interviews as a data collection

instrument, to conduct a case study on the effectiveness of team building

techniques with small and medium business executives. I used open-ended

interview questions (see Appendix C) and archival records as instruments

for data collection.

With the goal to determine what marketing strategies the

management of three small, independent restaurants needs to remain

profitable, data collected from in-depth interviews were explored. I used the

data to help small, independent restaurant owners ascertain how to execute

marketing strategies to develop and deliver innovative products, and support

the strategic direction of the restaurant and the brand. In addition, to explore

what additional barriers of marketing strategies impede profitability, I used

the data collected to determine how to measure outcomes and change

marketing strategies, according to market and competitive environments for

small, independent restaurants. The interview questions involved themes

about marketing and profitability in a consistent and systematic manner to

elicit more elaborate responses from participants (Qu & Dumay, 2011). I

relied on qualitative methods to supply rich context, in lieu of calculating

and analyzing the meaning of scores (Maltseva, 2014). Assessment of

reliability and validity of the data collection instrument is pertinent because

measurement helps to establish credibility, trustworthiness, and

transferability of the study (Klassen et al., 2012).

I contacted the executive of three small, independent restaurants via

telephone to explain the purpose of the study, request permission to use the

restaurants in the study, and request a list by email of employee names, job

position, and contact information: email addresses and phone numbers for

all managers and employees. I sent the executive via email, a formal

introductory letter (see Appendix B) indicating the scope and synopsis of the

doctoral study and a Letter of Cooperation (see Appendix D). The requested

timeframe for the executive to electronically sign and return documents was

one to two days. After I received both signed documents from the executive

and employee information, I sent an Informed Consent Form (see Appendix

E) to managers and employees. The requested timeframe for managers and

employees to electronically sign and return documents was two days.

All documents were in Microsoft Word. Managers and employees

replying via email with the words, “I consent, I understand that I am

agreeing to the terms described above” was the way I obtained signatures

electronically. The Introductory Letter, Letter of Cooperation, and Informed

Consent Form served as documents to consent and secure the confidentiality

and ethical rights of all participants.

I contacted each participant via telephone and scheduled an interview

date and time after I received the signed consent form. I documented the

interview schedule on a research log and tracked interview appointments in

Zimbra Collaboration software. Through Zimbra Collaboration software,

participants received the interview start time and finish time, conference line

information, and reminder notification. Once the participant accepted the

interview appointment, the acceptance was tracked via Zimbra Collaboration

software; participants could propose a new time if the original time was not

convenient.

Participants received an email confirmation with the interview

logistics. Two days before the interview I called the participant as a

reminder; from Zimbra Collaboration software the participant and I received

a reminder three hours before the interview. The telephone interviews

occurred for employees and managers of three small, independent

restaurants outside of work hours.

All telephone interviews were audio-recorded through

FreeConferenceCall.com, a conference call service. Participants needed a

phone to participate in the interview via FreeConferenceCall.com;

participants did not need access to a computer. I downloaded and saved all

interviews as a file requiring a password, on my computer. Access to all

files is exclusive to me. Only the identifier code assigned to each participant

was included in the study to maintain confidentiality. I audiotaped

interviews through

FreeConferenceCall.com, downloaded interviews, and transcribed

interviews verbatim. I applied the member checking process and engaged

participants for accuracy the day after transcription (Parker, 2012). Member

checking allowed participants to review content to ensure data was precise

and afforded me the opportunity to make modifications to language if

necessary, to increase data credibility, and support data confirmability

(Faseleh-Jahromi et al. 2013). I deleted interviews from the conference

account after data were transcribed and verified by participants.

I loaded the transcripts into NVivo 10. NVivo 10 is computer

assisted qualitative data analysis software to organize responses, identify

themes, and advance the robustness of the qualitative research (Bergin,

2011). HyperRESEARCH and PASW 18 (SPSS) were other qualitative data

analysis software reviewed and considered. Researchers use

HyperRESEARCH software to analyze qualitative data from formats such as

audio, video, graphs, or text. PASW 18 (SPSS) is software used by

researchers to describe quantitative data, test hypotheses, and analyze

qualitative survey results. NVivo 10 was the best choice for this study

because I was able to enter each interview via transcript into the software

and categorized themes about marketing and profitability (Qu & Dumay,

2011).

Other types of recording devices reviewed and considered were the

Verba

Recording System and Uptivity Call Recording. A researcher can use the

Verba Recording System to record phone interviews from any device.

Uptivity Call Recording is a device researchers can use to record and

analyze calls such as phone interviews. FreeConferenceCall.com is a free

conferencing service and was the best choice for this study because I used

the device to interview participants and record responses at no charge.

Through FreeConferenceCall.com, I received a reference number and a call

detail report (CDR) for all calls to help me identify each recorded call. The

file on the researcher’s computer will be stored for five years and deleted

thereafter.

Data Collection Technique

Semistructured interviews were the primary data collection technique

through telephonic conversations (Sakulkijkarn, 2012). Employing

semistructured interviews allowed the collection of rich data and a precise

way of retrieving insights from participants. With approval from the

restaurant owner, I obtained a list of all managers and employees of the

independent restaurants, who met the criteria for the study, from the human

resources department. The list included employee names, job position, and

contact information such as email addresses and phone numbers.

First, I sent out via email 50 invitations to participate in the study.

Second, I selected managers and employees from the first 18 signed consent

forms received. My plan was to select managers and employees from the

first 20 signed consent forms received, but only 18 participants responded.

Last, I chose 12 out of 18 participants; the remaining six were placed on an

alternate list. Initially, there were six participants designated as a backup if

a participant from the first selection withdrew from the study, but one

participant decided not to participate in the study and notified me via email.

I deleted the participant information from my electronic files and my

computer. The alternate list was changed to reflect five backup participants.

On the list, I included names of every person who decided to participate and

complete interviews and those who chose not to participate, as a way for me

to keep thorough statistics. There were no demographic factors considered

when selecting participants. The race and gender of managers and

employees were not a part of the criteria in the selection process. I selected

participants who were eligible and willing to participate in the study.

Twelve individuals, two managers, and two employees, each from three

restaurants participated in semistructured interviews, through a purposeful

criterion sampling technique. I confirmed eligibility with the participant

before conducting the interview. Interviews lasted for the duration of 30-45

minutes. Participants did not receive incentives to participate in the study.

I assigned each participant a code as a form of measurement to

assure ethical protection is adequate, for example, GSEP1, GSMP2, REP1,

RMP2, and WEP1, WMP2. I coded participant number one, employee of

GS restaurant, as GSEP1 and participant number one, manager of GS

restaurant, as GSMP1. The code identifier is the initial of each restaurant,

position level, and participant number. I electronically tracked and

documented responses from the interview on a data sheet with the use of a

research log through categorization of participant code and each independent

restaurant. I did not use a pilot study; coding of data and engaging

participants through member checking was the way I enhanced the

reliability and validity of the data collection instrument and data collection

process (Goffin, et al., 2012; Mangioni & McKerchar, 2013; Parker, 2012).

Member checking afforded participants the opportunity to review content to

ensure data was accurate, allowed me to make corrections if needed, and

strengthened data credibility

(Faseleh-Jahromi et al., 2013).

The Letter of Cooperation is included in Appendix D for the

executive as a consent form to participate in the study. The Informed

Consent Form is included in Appendix E for managers and employees to

agree to participate in the study and secure the confidentiality and ethical

rights of all participants. I will secure and store data for 5 years on a

desktop under a file requiring a password.

Data Organization Technique

The data organization techniques I used were NVivo 10, Microsoft

Excel, and research logs. I organized and stored data from this qualitative

research by each interview question, the assigned participant code, and

responses by columns in a Microsoft Excel workbook file (Qu & Dumay,

2011). The Microsoft Excel workbook file includes a separate spreadsheet

for each question.

Implementing NVivo 10 helped me organize responses and identify

themes (Bergin, 2011). I used research logs to track and categorize data

(Goffin et al., 2012). I scanned and saved each signed consent form in an

electronic folder (Sin, 2010). I am the only one with access to the Microsoft

Excel workbook file and the password. All data collected and organized in

the file will be stored in a safe cabinet for five years and destroyed after the

study has concluded (Sin, 2010).

Data Analysis Technique

The purpose of the qualitative, exploratory, multiple case study was

to address the main research question: what marketing strategies does the

executive of three small, independent restaurants need to generate profit?

The interview questions for participants were:

1. What are the marketing strategies used to retain current customers

and gain new customers?

2. As a small business, what are the barriers to your business and

marketing strategies?

3. What are the unique characteristics of your company’s brand that

guide marketing strategies?

4. How does your company position its brand for competitive

advantage and profitability?

5. How do you measure the success or failure of your marketing

strategies?

6. How do you conduct your marketing profitability analysis?

7. What marketing performance tools have you implemented to track

trends and calibrate profitability?

8. What are your strategies to help maximize profitability?

First in the data analysis process, I used a coding system for all

participants (Mangioni & McKerchar, 2013). Data analysis involves an

inductive process such as codes and patterns to theory (Castellan, 2010).

The codes for managers ranged from GSMP1-WEP2 and codes for

employees ranged from GSEP1-WEP2. The code identifier for each

participant is the initial of the restaurant where he or she works, position

level, and participant number. Second, I analyzed data collected through

application of interview transcripts, NVivo 10, and Microsoft Excel software

tool to code and identify themes (Qu & Dumay, 2011). I compared and

contrasted Atlas.ti to NVivo 10 and Microsoft Excel. Atlas.ti is a qualitative

analysis tool, which researchers implement to import tables and code and

organize data. NVivo 10 is computer assisted qualitative data analysis

software researchers use to load transcripts, organize data, and identify

themes. Microsoft Excel is an electronic tool researchers apply to store and

organize data through spreadsheets. Implementing Microsoft Excel and

NVivo10 as tools for this study was the best choice for coding and

identifying themes.

Third, I focused on the fundamental themes of marketing and

profitability to document themes from data collected during interviews and

used archival records to demonstrate methodical triangulation (Denzin 2012;

Guest et al., 2006; Poghosyan et al., 2013). Last, I correlated the themes

about the fundamental issues of marketing strategies, branding, relationship

marketing, resource advantage, and profitability to the central research

question, to literature (including new studies published since writing the

proposal) and the conceptual framework. Data analysis helped address

logically and sequentially the brand equity theory of marketing for

profitability, which is the conceptual framework of this study. The data

helped explore if marketing a high brand image will give small, independent

restaurant owners the competitive advantage, elevate customers’ brand

loyalty and awareness, and foster a sound financial position (Cheng,

2014).

Reliability and Validity

Reliability

Reliability and validity constitute evaluative measures that enhance

research rigor and add to the credibility of statistical data (Rao, 2013; Sin,

2010; Srivastava & Misra, 2014). Reliability and validity include quality

case analysis and procedures to guarantee research findings reflect the

purpose of the study (Rao 2013; Sin 2010; Srivastava & Misra, 2014).

Measurements established to assure conclusions are valid science and not

biased observations are results of reliability in research (Street & Ward,

2012). In qualitative research, reliability comprises data collection and data

analysis techniques, starting with the coding of data (Mangioni &

McKerchar, 2013). A qualitative coding

(categorization) process ensures reliability and increases validity in case

study research (Goffin, et al., 2012). Implementing the same techniques for

data collection and data analysis will lead to equivalent methodological

results by other researchers (Ali & Yusof,

2011).

Providing a full description of the study was a necessity for data

quality and reliability. I applied strategies to ensure rigor and reliability of

this qualitative study and provided a thorough and detailed description of

data collection/instruments, data collection/technique, data organization

techniques (coding, reflective journals, data analysis), to guarantee

credibility, transferability, dependability, and confirmability of the findings

and conclusions (Klassen et al., 2012; Wisdom et al., 2012).

Validity

Validity refers to the accuracy and legitimacy of research findings

(Venkatesh, Brown, & Bala, 2013). Validity is critical in qualitative

research based on the logic that data is plausible, credible, and trustworthy,

and can be defended when challenged (Venkatesh et al., 2013). Credibility,

transferability, dependability, and confirmability are important principles

for validity in qualitative research (Marais, 2012). Prolonged

engagement, member checks, quality record, and triangulation are elements

of validity (Marais, 2012). Methodical triangulation involves the use of

multiple methods as way to secure an in-depth understanding of the

phenomenon in question (Denzin, 2012). The validity and credibility of a

study is threatened if participants withhold relevant information during the

interview process (Zhou & Miguel, 2013). Rao (2013) tape-recorded

interviews and transcribed them to understand the interview material clearly

and as a mechanism to increase validity for a qualitative multiple-case

design study. I audio-recorded each participant during the interview and

transcribed responses to provide reliability and validity.

Data saturation was concluded when no new information or themes

emerged (Guest et al., 2006). Data saturation occurred after the analysis of

12 interviews (Guest et al., 2006). I collected data using in-depth interviews

from 12 managers and employees and continued interviewing until data

saturation; data examination occurred by documenting themes and analyzing

repetition to confirm and validate data saturation (Guest et al., 2006;

Poghosyan et al., 2013). Member checking is an important quality control

process in which participants have the opportunity to review statements for

accuracy (Harper & Cole, 2012). I confirmed data saturation through

member checking when all participants reviewed the findings and had no

additional contributions (Merwe, 2014). Results developed from data

saturation presented strong credibility (Ashworth, 2012). I implemented the

member checking process and methodical triangulation at the end of the data

collection and data analysis process to track emerging themes, ensure

validity, ensure creditability, and engage participants from the study

(Denzin, 2012;

Parker, 2012).

Transferability refers to extrapolation and relies on the reasoning that

findings can be transferred to other environments or groups (Elo et al.,

2014). In the viewpoint of trustworthiness and credibility, the main question

is; “How can the reader evaluate the transferability of the results?” (Elo et

al., 2014). I incorporated transferability in my study to provide a precise

and detailed description of the research context on marketing strategies for

profitability for small, independent restaurants and clarification of any

assumptions (Watkins, 2012). Transferability added an element of rigor to

this qualitative study and helped assess how the conclusions apply to other

small businesses seeking revenue growth through marketing strategies (Gau

& James, 2013). I used Walden University’s doctoral study committee to

examine and critically assess the qualitative research findings, which helped

ensure the credibility/believability of content analysis (Marshall & Rossman,

2011).

Transition and Summary

In Section 2, I presented an analysis of the participant selection

process, the process for population and sampling, data collection methods

and techniques, data instruments, reliability and validity of the study and a

review of the interview questions. The study involved interviews of 12

participants, two managers and two employees, each from three small,

independent restaurants in Philadelphia, PA. The decision to use the

qualitative research method over quantitative and mixed method was

justified through peer-reviewed sources.

I discussed and justified through peer-reviewed sources the choice to

use the qualitative, exploratory, multiple case study research design over

ethnography, discourse analysis, grounded theory, and phenomenology. I

presented the advantages of implementing an exploratory multiple case

study research design to analyze marketing strategies and profitability in

small, independent restaurants. In Section 3, I discuss the introduction to the

study, presentation of the findings and how to apply the results of the study

in professional practices, and implications for social change. I present

recommendations for action and further research, along with reflections and

study conclusions.

Section 3: Application to Professional Practice and Implications for

Change Section 3 includes an introduction to the study, presentation of the

findings related to the conceptual framework and literature review. I also

present the data analysis of the results with the themes identified.

Application to professional practice, implications for social change,

recommendation for action and further research, along with reflections and

study conclusions are presented.

Introduction

The purpose of this qualitative, exploratory, multiple case study was

to determine what marketing strategies small, independent restaurant owners

needed for profitability. The findings of the study revealed five themes

regarding marketing strategies for profitability: (a) word of mouth and social

media marketing, (b) limited financial resources, (c) product differentiation

and atmosphere, (d) blogging and using the point of sale point of sale (POS)

system, and (e) employee engagement and upselling. Participants identified

cost-effective marketing strategies for small, independent restaurant owners

to implement for profitability through word of mouth and social media

marketing and blogging and using the (POS) system. Collectively, 100% of

participants acknowledged unique brand characteristics guide marketing

strategies, brand equity, and profitability.

Presentation of the Findings

The central research question was: What marketing strategies does

the executive of three small, independent restaurants need to generate profit?

Using a purposive sample, the participants for this study were 12

individuals: two managers and two employees, each from three restaurants,

in Philadelphia, PA. I assigned each participant an alphabet and numerical

code, which is the initial of each restaurant, position level, and participant

number. I replaced the names of participants with codes GSEP1, GSEP2,

GSMP1, GSMP2, REP1, REP2, RMP1, RMP2, WEP1, WEP2, WMP1, and

WMP2.

Participants’ interview responses provided insight on the marketing

strategies small, independent restaurant owners use for profitability. Five

themes that emerged from the study included:

1. Word of Mouth and Social Media Marketing (IQ1)

2. Limited Financial Resources (IQ2)

3. Product Differentiation and Atmosphere (IQ3 and IQ4)

4. Blogging and Using the Point of Sale (POS) System (IQ5, IQ6,

and IQ7)

5. Employee Engagement and Upselling (IQ8)

Interview Question 1

The interview question was: What are the marketing strategies used

to retain current customers and gain new customers? My intent with this

question was to explore the marketing strategies used for customer retention

and customer acquisition. Theme 1, word of mouth and social media

marketing, emerged from Interview Question 1. Small business leaders

should implement social media marketing to develop and maintain customer

relationships (Khan, 2014a; Omar et al., 2011). Applying customized

marketing strategies may help small, independent restaurant owners attract

new customers (Agarwal et al., 2012; Pantano & Corvello, 2013). Using the

Internet and relationship marketing are attributes of marketing for

competitive advantage (Agarwal et al., 2012; Khan, 2014a; Omar et al.,

2011).

Theme 1: Word of Mouth and Social Media Marketing

The first theme that emerged from participants’ responses was word

of mouth and social media marketing. Results revealed that 11 participants

(92%) linked the importance of using word of mouth and social media

marketing as tools to retain current customers and gain new customers.

Participants were of the opinion that executives should use word of mouth

and social media marketing campaigns to obtain new customers and

promote brand awareness (Ewing et al., 2014; Keller & Fay, 2012). I found

that implementing social networks such as LinkedIn, Facebook, and Twitter

as a platform for marketing strategies may help small restaurant owners

retain customers

(Koutroumanis, 2011). Participant RMP2 stated:

We focus on the customer because great customer service leads to

word of mouth. Other marketing strategies are weekly emails and

sharing email lists with our other restaurants with the same

demographic base. We tie marketing into our weekly events such as

Wednesday happy hours, Election Day, Thursday comedy night, and

Friday Karaoke. We work with radio personalities and use our strong

social media. We have a loyal following and our food is top notch.

Participant GSMP1 posited that social media, word of mouth,

positive customer experiences, and ensuring each guest has an excellent

experience are marketing strategies used to retain current customers and

gain new customers. Participant GSMP1 was in the opinion that “word of

mouth is so powerful.” Participant WEP1 shared a similar view; “Providing

good service is key to retaining customers and that can turn into word of

mouth and help us get new customers.”

Business executives should implement social media as a marketing

tool to expand brand equity, foster customer loyalty, and increase profits

(Zailskaite-Jaste & Kuvykaite, 2013). Engaging customers and prospects

successfully through social media is an effective marketing strategy small,

independent restaurant owners should explore (Jemaiyo, 2013; Zailskaite-

Jaste & Kuvykaite, 2013). Participant WMP2 expressed the following

opinion: “word of mouth and information blast on Facebook, Twitter, and

Instagram are strategies. We have a social media person who is primarily in

charge of marketing.” In addition, Participant REP2 stated:

Weekly email blasts inform them of current events, specials events,

special offers, and social media to keep them interactive. Radio

advertisement, word of mouth, having happy loyal guests who introduce

others to the restaurant helps gain new customers. Group affiliations and

large parties also help to introduce the restaurant to new customers. Both

participants RMP1 and REP2 believed promoting business through word of

mouth at birthday parties, wedding rehearsal dinners, and other large events

create the opportunity to gain new customers. Word of mouth

communication is a good way for small, independent restaurant owners to

strengthen brand image, increase customers’ loyalty, and acquire new

customers

(Lekhanya, 2014; Nejad et al., 2014).

Interview Question 2

As a small business, what are the barriers to your business and

marketing strategies? The goal of this question was to examine the

obstacles to business and marketing planning. Theme 2, limited financial

resources, emerged from Interview Question 2. Executing brand strategies

could help small, independent restaurant owners allocate and integrate

resources to optimize business initiatives (Cheng, 2014). Profitability,

financial performance, and business performance are elements of

resourceadvantage theory that support brand awareness and strategic

business development efforts

(Arnett & Madhavaram, 2012; Foss, 2012; Magnusson et al., 2013).

Theme 2: Limited Financial Resources

The second theme that emerged from participants’ responses was

limited financial resources. Findings showed that 42% of participants

perceived limited financial resources as challenges to business and

marketing strategies. Applying various resources is a pertinent resource-

advantage marketing strategy for competitive advantage (Hunt, 2012).

Participants were of the opinion that small, independent restaurant owners

should allocate more funds for marketing innovation strategies as advanced

by Cetinkaya and Kalkan (2014). Participant RMP2 indicated:

A barrier to our business and marketing strategies is the cost of

mainstream advertising. We would like to implement mainstream

advertising but it is expensive. You could blow your whole month

budget on advertising in Philadelphia magazine. Traditional media

outlets are expensive and it is unrealistic to spend $6,000 a month on

advertising, so email is 100% the way to

go.

Participant WEP2 expressed, “A barrier for business is that we are

not able to offer the higher wages as corporate and restaurant chains. The

good thing is that we do not struggle with staff retention.” Participant

GSMP2 asserted, “It is difficult to market because of the limited money we

have to use toward marketing.” Participant WMP1 stated, “Two challenges

are trying to make marketing work within the revenue you are able to

generate and reviewing the price points for demographics. Customers look

for a deal and value.”

Participants suggested that having access to valuable resources

would help small, independent restaurant owners implement mainstream

advertising and enhance the visibility and awareness of the brand (Bettiol et

al., 2012; Magnusson et al., 2013). Participant REP2 added that as a small,

independent restaurant, the concepts of business and marketing strategies are

different from those of a chain restaurant. The budget does not permit

constant recognition, large capital to do more radio spots, print media, and

television advertisement. Participant WMP2 expressed:

A barrier is that we don’t have the corporate backing because we are

not a large business. Money can get tight, and we don’t have millions of

dollars to use on marketing. We can’t do big commercials like Olive Garden

or Red Lobster.” The opinion of Participant WMP2 directly aligned

with the theory that small business owners have to develop new approaches

to marketing, different from big business owners, for effective customer

engagement and sales (Harrigan et al., 2011).

Interview Question 3

What are the unique characteristics of your company’s brand that guide

marketing strategies?

Interview Question 4

How does your company position its brand for competitive advantage and

profitability? Through Interview Questions 3 and 4, I attempted to

examine unique characteristics of the restaurant’s brand that guide

marketing strategies and how brand positioning influences competitive

advantage and profitability. The third theme emerged from Interview

Questions 3 and 4, product differentiation and atmosphere. Business

executives can use brand attributes and CRM to enhance marketing

productivity and maximize customer retention (Hajipour et al., 2013;

Soliman, 2011). Small, independent restaurant owners can implement

competitive intelligence, forecasting, and customers’ perspective to develop

product plans and product launch strategies (Barwise & Meehan,

2011).

Theme 3: Product Differentiation and Atmosphere

The third theme that emerged from participants’ responses was

product differentiation and atmosphere. Participants (100%) indicated

excellent cuisine and the design and mood of the restaurant atmosphere are

attributes, which guide marketing strategies, brand equity, and profitability.

Hsu et al., (2012) identified customer service and restaurant ambience as

marketing tools to build brand equity.

Cuisine and live entertainment. Operating in a competitive

environment and meeting customer needs are pertinent aspects of

competitive advantage and marketing

(Sarathy & Banalieva, 2014). Participant WEP2 stated:

Our restaurant is one of the fewest places in Philly and the country

that offers great entertainment and great cuisine. Now days its one or

the other. We offer the best of both. It is not a lot of competition in

that niche.

Participant REP1 posited:

We are a Soul Food Restaurant and one of a very few fine dining

restaurants that showcases a soul food cuisine, on-site and off-site catering,

private parties, and wedding rehearsal dinners; anything a guess wants, we

cater to that. Additionally, we offer a fantastic buffet Brunch on Saturdays

and Sundays and that sets us apart as one of the best in the city with the

options we provide. We provide excellent service and a quality buffet

brunch with an entire dining experience as a whole. Participant

GSMP2 expressed, “We have good healthy fast food; everything is

made fresh, nothing frozen is made.”

Participant GSMP1 added:

We are very progressive. We offer fast-casual dining experiences.

We bridge healthy eating and encourage better eating habits. Our food tastes

great. We cater to each customer and because we are not a chain restaurant,

we personalize our menu and services; this is what sets us apart from Qdoba

and Chipotle. Business executives should include marketing

initiatives on lead generation, brand awareness, and brand consistency, to

enhance sales and revenue growth

(Ogunmokun & Tang, 2012; Torre et al., 2014).

Participant WMP2 stated, “The ambience, the live entertainment, and

our food are unique characteristics. We are the only restaurant that has live

entertainment in Philadelphia, 7 days a week. You can’t get that

combination anywhere else.” Participant REP2 posited, “Our brand position

itself by staying on the cutting edge. It is important to continually keep

looking for the next best thing. There are always new ideas to borrow, add,

or use for quarterly marketing mix.” The response from participant REP2

validated, marketing strategies should include unique brand image

characteristics and product differentiation as the center of the marketing

mix, to enhance profitability (Torre et al., 2014). Participant WMP2

expressed:

Not a lot of people have live music and entertainment 7 days and

week. We are unique because we have headliners coming in

nationally and locally. We have people who come from South

Carolina and Georgia to see musicians and eat our great food. Our

corn bread is well known; people come from all over for our corn

bread. We don’t serve crappy food; we serve great southern cuisines

with 3 courses for a great price and a reasonable cover charge.

Participant WEP1 indicated, “We are unique because we have live

music and entertainment 7 days a week. We have fun working here and even

interact with musicians some times during performances. Managers talk to

employees as human beings.”

Participant RMP1 expressed the following opinion:

The unique characteristics of our company’s brand that guide

marketing strategies are (1) our atmosphere, (2) live music, (3) great

food, (4) great service, and (5) our décor. We are located in the West

Oak Lane section of Philadelphia, which is a small neighborhood but

when you come inside our restaurant it has the feel of a jazz club in

center city Philadelphia. We give our guest a different experience

with its own unique experience.

Atmosphere. Small restaurant owners should use brand equity

building as a component for the competitive advantage and to increase brand

awareness (Zailskaite-

Jaste & Kuvykaite, 2013). Participant WMP2 stated:

We try to create a southern home-style hospitality atmosphere. We

take a personal approach and are very hands on. Our performance

stage is a foot away from the dining room. People are often smiling,

having fun, and enjoying themselves. Guests are allowed to interact

with artists and feel included in the music experience.

Participant RMP2 stated:

The things that make our brand better than our competitors is our

hands on approach. The owners come to our place everyday. There

is a family feel from the servers, managers, and hostess. Knowing

that the owners are here makes us want to take care of our customers

and offer a warm hospitality experience; there is no red tape.

Small, independent restaurant owners should use relationship marketing to

retain customers and solicit ideas for new products (Catoiu & Tichindelean,

2012).

Participant RMP2 posited:

The owners offer an atmosphere and environment, which is warm and

inviting; this environment lends to a family base of customers. We

offer an upscale modern environment and the finest in southern

cuisine; the soul food and services we offer are the best in city.

Participant GSEP2 asserted, “We are encouraged to provide exceptional

service to our guest. If I provide the customer with a great experience this

will make him or her want to return to our restaurant.” Participant GSEP1

added, “Making sure each guest feels warm and welcomed is important.

Giving the customer a good experience impacts my own profit. The goal is

to increase guest retention.”

Participant GSMP1 stated:

We position our brand for competitive advantage and profitability by

working toward being better and gauging perceived guest frustrations.

We are so guestoriented. We want people to have an experience that

is positive and resonates with them. A guest is going to enjoy

everything when he or she has a positive experience. Word–of-mouth

communication is so powerful. We come from a company of

successful restaurants. Two keys to profitability are (1) ensuring food

is high quality and cost-effective and (2) consistency. Consistency is

important with positioning our product for profit.

Participants indicated product differentiation increases brand image and

brand awareness (Yang & Chiu, 2014). Participant WMP1 stated, “The

ambience, the live entertainment, and our food are unique characteristics.

We are the only restaurant that has live entertainment in Philadelphia, 7 days

a week. You can’t get that combination anywhere

else.”

Participant WMP2 added:

We take the time to make sure everything comes out consistently

good and that the experience as a whole is not just about eating food,

but it is about the exterior, interior, how we serve, and how we create

that atmosphere.

Participant GSMP2 noted a differential advantage is that the food they serve

is organic, hormone free, and chicken is farm raised. We have a clean

atmosphere and it feels clean when you walk in our restaurant. Participant

WEP1 added, “We create a comfortable and warm atmosphere for guest.

We develop relationships with guests and this is why they come back to our

restaurant over and over again.” All participants affirmed the need to

integrate relationship marketing and brand positioning for business success

and profitability (Borisavljevic, 2013; Hajipour et al., 2013).

Interview Question 5

How do you measure the success or failure of your marketing strategies?

Interview Question 6

How do you conduct your marketing profitability analysis?

Interview Question 7

What marketing performance tools have you implemented to track trends

and calibrate profitability?

My intent of interview questions 5-7 was to explore performance

tools used to measure marketing strategies, marketing profitability

techniques, and tools to track trends. Theme 4 emerged, blogging and using

the point of sale (POS) system. Using data analytics will help business

executives measure the effectiveness marketing initiatives, social media

engagement, and sales activities (Mitchell & Olsen, 2013).

Theme 4: Blogging and Using the Point of Sale (POS) System

The fourth theme that emerged from participants’ responses was

blogging and using the point of sale (POS) system. From the results, I found

42% of participants connected blogging and using the POS system as

methods to measure marketing outcomes, profitability analysis, and trends.

Responses from participants confirmed executives should use statistical

information to track marketing development strategies, market strategy

insights, and profit levels from sales trends (Janicic & Jankovic, 2014).

Small business executives should compile data and prepare reports of

marketing material expenditures and POS promotional expenses to identify

product and market trends for profitability (Kalafatis et al., 2012).

Participant WEP2 asserted, “We position our brand through careful analysis

of each promotion through the POS system. Every manager is required to

blog every night via Google. Staff are encouraged to use social media.”

Participant REP2 stated, “Our POS system helps us to see increase and

decrease of business. There are also consistent business cycles and trends

we can manipulate to increase profitability”. Participant RMP2 asserted,

“We use spreadsheets, weekly Google blogs, look at seasonality and

holidays, and review blogs from previous years to analyze and track trends.”

Small, independent restaurants owners can use sales history to execute sales

strategies and target prospective customers (Cheng, 2014).

Participant REP1 advanced:

Guest turn out is a way we measure the success or failure of our

marketing strategies. An example would be if guest turnout is lower

than projected. If we receive a lot of reservations but not the guest

turnout to match those reservation numbers, this is not considered a

failure but rather us not hitting our target. When guest don’t show up

we have to evaluate why.

Participant WMP1 had a similar perspective:

We use blogs, and track the number of covers, and our owner track

trends on a macro level to calibrate profitability. We have had one of

our best years ever this past year. If our guests are happy, the buzz

out there is good.

Participant REP1, however, was not aware of how to conduct marketing

profitability analysis for the restaurant. Participant GSMP2 stated:

We retrieve information from our employees and blogs to track

trends. If we change the recipe for turkey chili and customers don’t like the

change, it will show on our sales report; that prompts us to go back to our

original recipe. The response from participant GSMP2 coincides with the

opinion that modifying product characteristics when necessary is an

important element of brand loyalty (Schmidt & Ralph, 2014; Zailskaite-Jaste

& Kuvykaite, 2013).

Participant WEP2 advanced, “We measure through blog recording;

an example would be if 65 out of 100 people go for a promotion, the

marketing strategy was obviously successful.” Participant WEP2 added,

“We use blogging and POS as tools. We can look to see how many people

actually went to a promotion. We track trends and even go back 10 years to

review feedback and trends.” Five participants (GSMP1, REP1, RMP1,

RMP2, and WEP2), 67% of managers and 17% of employees, discussed

other marketing methods, such as bounce back cards, open table, Yelp,

comment card, feedback box, and the restaurant website for measuring

marketing strategies for profitability. Small, independent restaurant owners

can implement forecasting tools to monitor sales volume and buying trends

of customers for profitability (Swenson et al.,

2012).

Bounce back cards. Participant WEP2, asserted:

The biggest is the bounce back cards we give out to our staff to create

a personal relationship with guests. Staff put their own name on the

card so guests come back and ask for them. We give out

complimentary desserts, drinks, and for loyal customers we take care

of their bill from time to time. Promotions and outside promoters

help us gain new customers. We wow new customers when they are

here to keep them.

Open table. Participant RMP2 posited, “We also use open table and

grubhub to retain current customers and gain new customers. Participant

RMP1 stated, “We use open table services, which allow us to see and gain

access on how to expand our reservation count and is another avenue to

bring in new guests.”

Yelp. Participant GSMP1 expressed, “Reviews on yelp are very

helpful. We read the reviews on yelp and take in consideration what

customers say and respond when necessary. I would like to implement a

system to respond directly to positive and negative reviews.”

Comment card, feedback box, and restaurant website.

Participant REP1 stated:

We use a comment card, a feedback box, our website, and open table

services as marketing performance tools to track and calibrate

profitability. The comment card has options to rate areas such as:

atmosphere, price value, service, and food with a rating scale of 1-5, 5

being the highest rating. There is a box in our restaurant where guest

can write how they feel; there is also promotional material on our

website and social media information.

Interview Question 8

What are your strategies to help maximize profitability? My intent

of this question was to examine strategies used to maximize profitability.

Theme 5 emerged, employee engagement and upselling. Promoting

innovative initiatives with customers and staff may improve profitability

(Markides, 2012). Small, independent restaurant owners should apply

employee engagement as a strategic approach to understand customers’

preferences and exceed sales quotas (Barwise & Meehan, 2011).

Theme 5: Employee Engagement and Upselling

The fifth theme that emerged from participants’ responses was

employee engagement and upselling. Findings indicated 33% of

participants thought employee engagement and upselling were strategies

used in the restaurant, which help maximize profitability. I found,

increasing sales through new product launches and positioning strategies

may help managers meet sales target (Cetinkaya & Kalkan, 2014).

Managers and employees validated small, independent restaurant owners

should implement offensive marketing strategies to raise purchase frequency

(Vivek et al., 2012).

Participant WEP2 indicated that:

Staff are empowered through the bounce back card. Employees are

provided with their own personal business cards. Managers promote

staff initiatives such as mini contest and prizes, i.e.. whoever sells the

most gets a free meal or wine.

Participant WEP1 stated:

When we come up with new event ideas we are able to work those

events. Once I did a West African Extravaganza; the bosses and

managers are always open to hear new ideas. We are looked at as

more than servers or bussers.

Participant WMP2 expressed the following opinion:

I am a coach for my staff. Staff can kill business or they may help

business thrive. When thinking about strategies to help maximize

profitability, you can’t forget the importance of having motivated

staff. Our young staff between the ages of 18-25 have a lot of insight

of what’s new, help bring in more clients, upsell guests, and build

relationships with guests; this makes guests want to come back. An

example is when guests come in and say I want to be seated in Mark’s

section or a bartender lets me know about an innovative idea. The

owner has a good relationship with managers and managers have a

good relationship with staff. It starts from the top. The owners are

always here.

Participant RMP2 asserted, “We try to upsell our customers, give a bounce

back card for free dessert, and suggest customers tell a friend. We also try

to promote our business and improve our marketing strategies.”

Connecting Findings to Conceptual Framework

The brand equity model, developed by Aaker (1991), was the

conceptual framework used to complement this doctoral study. The five

brand equity components of the model include: 1. Brand loyalty:

a. Retaining and attracting new customers

b. Decreased marketing costs

2. Brand awareness:

a. Associations

b. Familiarity

c. Customer purchasing process

3. Perceived quality:

a. Product differentiation

b. Various sales channels

4. Brand associations:

a. Retrieve associations via a form of advertising

b. Contribute to brand differentiation

5. Other proprietary brand assets:

a. Patents

b. Proprietary rights

Analysis of participants’ data confirmed the brand equity theory of

marketing developed by Aaker (1991) was appropriate and relevant to

exploring the profitability of the marketing strategies used by three small,

independent restaurants. Participant responses and themes aligned with the

five components outlined in Aaker’s brand equity model.

Components 1-3: Brand loyalty, brand awareness, and perceived

quality. Responses from managers and employees linked to brand

loyalty, brand awareness, and perceived quality, which coincide with the

components of Aaker’s brand equity model. Participants (96%)

acknowledged Theme 1 and Theme 3, restaurant environment and product

differentiation as unique brand characteristics of marketing strategies that

foster profitability. Participants stated that customers are loyal and continue

to come to the restaurant because of brand loyalty, which helps with

marketing via word of mouth (Aaker, 1991). Study findings confirmed

marketing strategies, which include designing and redesigning products, as

necessary, and could help small business executives sustain competitive

advantage and increase profits (Civic, 2013). Positive customer

relationships promote successful product launches and improve brand equity

(Agarwal et al., 2012).

Components 1 and 2: Brand loyalty and brand associations.

Derived from Theme 1 and Theme 2, an average of 67% of participants for

both themes, advanced the importance of using innovative ways to advertise

a business and expand a customer base. Small business executives should

distribute resources proportionately because of limited financial resources

(Baker, 2013). The study results confirmed small business executives

should implement different marketing strategies because they do not have

the resources of large business executives (Harrigan et al., 2011). Findings

of the study validated the need for small business executives, such a small,

independent restaurant owners with limited financial resources, to decrease

marketing costs through word of mouth and social media marketing (Aaker

1991; Harrigan et al., 2011). Perspectives from participants linked to brand

loyalty and brand associations, which are elements of Aaker’s brand equity

model.

Component 3: Perceived quality. Developed from Theme 5,

participants (33%) believed offering additional products to customers and

promoting employee involvement are different sales channels small,

independent restaurant owners can use as marketing profitability strategies.

Implementing various sales channels are elements of perceived quality

(Aaker, 1991). Results from the study confirmed managers should involve

employees in strategic brand development initiatives to maximize

profitability (Holland & Weather, 2013). Small, independent restaurant

owners should apply personal selling to convince customers to purchase

additional products and meet revenue goals (Mohammed, Rashid, & Tahir,

2014; Khan, 2014b).

Relating Findings to Literature on Effective Business Practice

I used the results from the study to validate word of mouth as a

powerful marketing strategy small business executives should use because

positive word of mouth marketing has a stronger influence on brand

purchase probability (Aaker, 1991; VázquezCasielles et al., 2013).

Executives can use valuable resources and customer relationship marketing

to influence marketing planning and develop marketing programs

(Magnusson et al., 2013; Pepe, 2012). The findings of the study confirmed

limited financial resources could constitute barriers when developing and

executing marketing plans to meet profit targets (Bettiol et al., 2012).

Results confirmed executives should create a portfolio strategy that includes

product development and brand equity to improve profitability levels (Khan,

2014b; Mohammed et al., 2014; Stahl et al., 2012).

Theme 3 on product differentiation and atmosphere aligned with

literature on effective brand strategies. Small business managers can drive

brand development and create new platforms for market campaigns (Pantano

& Corvello, 2013). Small, independent restaurant owners should

incorporate marketing practices to promote the brand image, drive sales, and

interface with customers for a high level of level of customer satisfaction

(Shah et al., 2012).

Applications to Professional Practice

The findings of this study apply to small business executives such

as small, independent restaurant owners. Most participants advanced the

importance of implementing brand equity as a fundamental marketing

strategy for profitability. Small, independent restaurant owners should

ensure that brand initiatives are consistent with priorities, strategies, and

brand equities, and should align with business processes and initiatives

across brands (Zailskaite-Jaste & Kuvykaite, 2013). As opined by

Dogramatzis (2012), to maximize profitability, small business executives

should deliver a financial strategy for brands including:

•Identify financial and performance gaps

•Review forecasting tools

•Differentiate product advantages

•Provide pricing strategy recommendations

•Examine marketing and trade plans

Small, independent restaurant executives can improve business

practice through marketing profitability analysis (Sarathy & Banalieva,

2014). Executives should evaluate the research market environment,

competitive environment, and competitive pricing in the market to focus on

brand valuation (Sarathy & Banalieva). Aligning brand equity strategies

with product-market goals and profit goals can help business executives

assess competitive initiatives (Mohammed et al., 2014; Swenson et al.,

2012). Small business executives should provide appropriate competitive

responses including POS reports, advertising, marketing programs, and

adjust brand equity strategies accordingly (Janicic & Jankovic, 2014).

Executives, managers, and employees can use the applicability of the

findings with respect to the professional practice of business to gain

competitive advantage, through a SWOT analysis of competitor's strengths

and weaknesses and marketing a high brand image for profitability (Cheng,

2014; Janicic & Jankovic, 2014). Managers can examine marketing

strategies and provide feedback to executives on effective collateral

materials to ensure promotional materials costs align with the revenue

allotted and decrease marketing costs (Aaker, 1991). Small business

executives can establish and implement strategic and tactical

communications plans to capitalize on market opportunities, generate

demand, and create brand awareness (Andrew, 2011). Small,

independent restaurant owners can use blogging and POS as tools to

measure the return on marketing program investments (Shin, 2013).

Executives should use word of mouth and social media marketing as

costeffective marketing strategies to foster brand loyalty, organizational

growth, and profitability (Aaker, 1991; Koutroumanis, 2011; Vázquez-

Casielles et al., 2013). Small business owners can implement customer

loyalty and relationship marketing to sustain competitive advantage for

profitability (Alvarez et al., 2011; Hashem, 2012). Business executives

should use brands to cultivate customer relationships (Bettiol et al., 2012).

When exploring marketing strategies for profitability, small, independent

restaurant owners should manage brand equity activities to increase

customer base and revenues, optimize the marketing mix, and analyze the

effectiveness of sales channels to improve business practice. Using brand

equity can help managers quantify marketing strategies for sales and

profitability (Keller & Fay, 2012). Small, independent restaurant owners

should focus on unique brand characteristics, quality, and reliability of their

brand to build and maintain relationships customers (Stahl et al., 2012).

Implications for Social Change

The implications for positive social change of this study include the

following integrated approaches to business sustainability: (a) business

development for small businesses and strategies for financial resources, (b)

training programs to support new entrepreneurs and the public and, (c) free

webinars on marketing strategies for communities and organizations. Small

business owners should develop and foster relationships with communities

and other organizations to help grow business development opportunities

and identify marketplace opportunities (Tawanda et al., 2013). Small

business executives can act as a liaison to gain an understanding of

important trends and issues affecting the community (Fiore et al., 2013).

Analysts for small businesses can use marketing strategies to manage

business sustainability, increase opportunities for community growth, create

jobs, and develop social resources through the investment of capital (Jasra et

al., 2011).

Opening up resources centers in the communities and offering bi-

weekly training programs promotes positive social change through

community engagement (Shaijumon, 2014; Tabaku & Mersini, 2014).

Topics for training should include cost-effective marketing strategies,

project management and policy development to gain and retain customers,

and targeting investments to enhance profitability, to support new

entrepreneurs and the public (Radu, 2013; Tabaku & Mersini, 2014). A

network of small businesses should host community meetings and webinars

monthly to present effective marketing strategies for profitability. Small

business professionals should work closely with the communities and

organizations to evaluate the effectiveness of training programs and apply

metrics such as observational feedback and surveys (Mitchell & Olsen,

2013).

Recommendations for Action

Based on the five themes identified from semistructured interviews,

analyzing participants’ responses, and methodical triangulation of archival

business records, I have made three recommendations for small business

executives, such as small, independent restaurant owners.

I recommend small, independent restaurant owners develop

marketing strategies that include employee engagement. Managers should

promote learning resources for employees on effective marketing strategies

(Ogunmokun & Tang, 2012). Owners should ensure employees are engaged

and made fully aware of tracking mechanisms such as blogging, comment

cards, and the POS to enhance business performance (Shin, 2013). Creating

a scorecard of metrics and using archival employee engagement data may

help executives identify areas of success and failure of marketing strategies.

Executives should offer incentives to motivate employees to develop and

share best practices for efficient marketing from indirect and direct

interactions with customers (Vivek et al., 2012). Implementing important

metrics to determine overall effectiveness based on employee engagement

activities can help increase profitability levels (Swenson et al.,

2012).

I recommend small, independent restaurant owners create a cross-

functional team of managers and employees to act as brand liaisons. The

cross-functional team can manage new product launches and promotional

programs. Owners should align the brand portfolio with product roadmaps,

sales and marketing strategies, and industry trends (Markides, 2012).

Managers can use brand associations and customer relationship marketing as

performance tools to track trends, calibrate profitability, and retain and gain

new customers (Aaker 1991; Abernathy et al., 2013; Chiang, 2013; Mitchell

& Olsen, 2013). Executives should collaborate with managers to explore

innovative ways to maximize profits through relationship marketing,

customer acquisition, and customer retention (Khan, 2014a; Vivek et al.,

2012).

I recommend small, independent restaurant executives allocate more

resources toward social media marketing to increase brand loyalty, profits,

and ROI (Aaker 1991; Omar et al., 2011). Executives should ensure social

media marketing activities align with business goals and profit strategies

(Radu, 2013). Small, independent restaurant owners need to create ways to

implement marketing strategies that promote business across social media

channels such as Blogs, Facebook, Instagram, Linkedin, Twitter, YouTube,

and local radio and television stations (Koutroumanis, 2011; Zailskaite-Jaste

& Kuvykaite, 2013). Managers should use social media to engage current

and new customers, which may lead to word of mouth referrals and

communications. I recommend executives apply customers’ reviews to

improve brand strategies and monitor social media networks for brand

consistency (Keller & Fay, 2012). Administrators should encourage

managers and employees to collaborate to support social media daily

interaction, such as blogging and tweeting.

The knowledge base and feedback from nonmanagerial employees

can help small, independent restaurant owners explore effective marketing

strategies. Responses to the interview questions may help managers tailor

their overarching marketing strategies to deliver brand equity and marketing

initiatives from management to nonmanagerial employees, from employees

directly to customers in a way that promotes profitability. Executives can

see if equitable knowledge of marketing strategies between nonmanagerial

employees and managers and conduct professional development as needed.

Small business owners, marketing managers, brand managers, and

entrepreneurs need to pay attention to the findings from this study. I will

send an email to the restaurant owner to inform the study results are

completed. The email will request the owner to contact me via phone if he

would like a summary of the research findings. I will provide a debriefing

session of the study results via phone after completion of the research.

Research results will not be disseminated via email or in person. Also, I will

disseminate the results of this study at small business expos, business-

networking events, call for paper conferences, the Philadelphia Small

Business Association, and through the

ProQuest/UMI dissertation database.

Recommendations for Further Research

The study was designed to explore marketing strategies management

can implement for profitability in small, independent restaurants.

Limitations of this study were a multiple case study of three small,

independent restaurants, a sample size of 12 participants, and a target group

of managers and employees. I included and interviewed nonmanagerial

employees, as participants because I believed data are pertinent to

employees just as much as managers. Often employees are the primary

implementers of marketing strategies and have substantial input about

marketing strategies in the restaurants where they work. Employees directly

and indirectly apply marketing strategies when they serve customers and

provide anecdotal insight into areas such as marketing strategies for

competitive advantage and profitability. I obtained sufficient data to answer

the central research question and identified pertinent themes from managers

and employees. I recommend further studies to expand the multiple case

study to six small, independent restaurants and include more employee

related interview questions, to provide additional approaches to effective

marketing and improve business practice.

Another limitation of this qualitative study was obtaining approval

from the executive to use the restaurants and review archival business

records, prior to submitting the IRB application to Walden University’s

Institutional Review Board (IRB). The limitation was because of time

constraints; the executive is the owner of the three independent restaurants

used in the study. Independent restaurants can have the same owner because

they are not a chain or part of a national chain. I presented the purpose of

the doctoral study and potential benefits to the executive and addressed

concerns before initiating the study. A quantitative correlation study to

examine the relationship between resource allocation and the two variables,

marketing strategies and profitability levels may provide additional

information on effective marketing techniques and innovative practices to

improve business performance (Sallee & Flood, 2012).

Reflections

My passion for developing and implementing business processes and

creating new approaches for business sustainability was the reason I chose to

explore marketing strategies for profitability. In my community, four small,

independent restaurants closed within a year of operation, which prompted

me to use three small, independent restaurants in my study. I had a

preconceived idea that once receiving approval from the IRB, collecting and

analyzing data would be easy. I underestimated the amount of time and

level of tediousness it took to transcribe the data personally. Interviews with

each participant were rewarding. The business culture of all three

restaurants was exceptional; Participant responses showed how the culture

replicated in each restaurant. I was amazed at the level of buy-in staff

showed. Policies and customer retention strategies were similar at the

restaurants. The results of this study confirmed my proposition that

innovative business approaches to services and brands should include input

from nonmanagerial employees. I believe that employees can support

managers and executives with business development efforts and marketing

initiatives to maintain best practices for profitability.

Summary and Study Conclusions

In this qualitative, exploratory, multiple case study, I explored what

marketing strategies the executive of three small, independent restaurants

needed to generate profit. Five themes emerged from the study: (a) word of

mouth and social media marketing, (b) limited financial resources, (c)

product differentiation and atmosphere, (d) blogging and using the point of

sale (POS) system, and (e) employee engagement and upselling. Ninety-two

percent of participants indicated the importance of using word of mouth and

social media as marketing strategies for customer retention and customer

acquisition. One hundred percent of participants believed the southern

cuisine, custom menus, design, and the ambiance of the restaurants are

elements, which guide marketing strategies, brand equity, competitive

advantage, and profitability. Participants noted limited financial resources

are barriers to business and marketing strategies, but expressed using

costeffective strategies such as word of mouth and social media marketing

may increase profits while operating within budgetary constraints.

The study population of managers and employees from three small,

independent restaurants helped me explore diverse business practices and

innovative marketing strategies for profitability. I found small business

owners, such as small, independent restaurant owners, can implement

effective marketing strategies and align profit and business development

objectives to their brand with limited financial resources. I concluded from

the findings that brand awareness, brand equity, product characteristics and

positioning, and marketing communications activities could help executives

maximize profitability and create a competitive advantage.

Marketing Strategies for Profitability in Small Independent Restaurants

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