Question

Problem #1 —Sam Jones operates a small hot-dog stand that offers hot dogs, French fries, soft drinks, coffee, tea, and chips. He feels that his business and customers have treated him well. Over the last few years, several fast-food businesses have opened near Sam’s hot-dog stand. His competition is McDonald’s, Taco Bell, and a small deli. Due to the competition, Sam’s sales have dropped. Sam wants your assistance in regaining his customers. Which strategy would you suggest?

Answer 1

Answer:

Among the strategies Sam could use are:

loyalty programs, advertising in different ways and change of location.

Explanation:

Loyalty programs are widely used today, through them the merchant makes sure to obtain customer loyalty to the company.

This program works by rewarding its customers for their purchases, this produces in the customer a sense of loyalty to the trade, thus ensuring a permanent buyer and maintaining the sales margins in the company. In Sam's case, he should reward his regular customers with an incentive, for example, a free drink or a coupon.

Advertising is a tool that has been used since the beginning of companies with the difference that now there are various ways of advertising, for example, Sam could use social media to promote his business and his promotions, he could also use "word of mouth" advertising with their clients to advertise themselves, you can also distribute flyers.

And lastly, Sam may consider that if the other strategies don't work, what he could do is move their business and find a place where he doesn't have competitors.

I hope this information can help you.