Mellow Mushroom

Marketing Strategy
by Team McMBAs
Isabelle Ding
Steven Goyne
Elise Moore
Bre: Riley
Forum Shah

Demographics
Approximately 95% of surveyed
LSU customers are between 18
and 29 years of age
74% percent of the surveyed
students live within 0-5 miles of
Mellow Mushroom

Proximity plays a large role in
determining Mellow
Mushrooms customer base

Demographics
Average household income of
students is less than $20,000

So what does that mean?

People who earn less, desire to
spend less!

Who are NOT the customers?

Customers who feel that
LocaWon is not in close proximity
Menu items priced too high
There is a lack of incenWve
They have had unpleasant past experiences

Why is Mellow Mushroom Attractive?

Mellow Mushrooms
current incen5ves that
increase customer
base:

1. Social scene,
atmosphere, music
2. Events
3. Quality of food
4. LocaWon
convenience

Value Proposition
Hand-cra<ed pizza, custom-made with only the
freshest ingredients, served in an entertaining,
social, and laid back environment.

Recommendation #1
1. Rene business-consumer communicaWon by
conveying its unique values

Why?
LSU students have low brand associaWon
LSU alumni focus group: lack incen)ve to
drive across town just for MM pizza
No customer reten)on without loyalty = no
customer life)me value!

Leveraging the Value Prop

What do students want?
Healthier lifestyle
To socialize

But wait! Thats what Mellow oers!

Fresh, organic ingredients
Variety of opWons for those w/dietary restricWons
Unique atmosphere and fun entertainment

So whats the problem?

Leveraging the Value Prop

SuggesWons
Develop a menu with small plate secWons
Caloric lisWngs for each menu item
Social events incorporated in markeWng
communicaWons

Recommendation #2
2. Engaging customers through social media

Why?
100% of surveyed LSU students use social
media to stay informed

SuggesWons to improve dining experience but

no channel to communicate issues

Digital Engagement
Current Issues
~9,000 likes on FB, yet minimal to no user
interacWon
~2,000 follows on Twi:er, yet only 530 tweets
since 2011
~400 followers on Instagram, yet only 80 posts
since Jan 2013

Action Plan
Engage each customer on an individual basis
to measure saWsfacWon of experience
Develop creaWve promoWons to increase
social media following (like and share for 15%
o!)

Recap
Use value proposiWon to establish brand
awareness
Leverage social media!

Thank you! Questions?

Appendix
Qualitative Research
Interviews
One-on-one interviews with each of 3 Mellow Mushroom
waitresses
Each interview lasted approximately 5-10 minutes
Waitresses spoke of laid back work atmosphere due to
predominant college student customer base
Normally observe more family groups during dayWme hours
and young generaWon crowds aged 18-29 years aoer 7 pm
Busiest nights are during events like Trivia Night
Lower spending, smaller Wps typical with college students

Appendix
Qualitative Research
Observa5onal/Ethnographic Data
McMBAs observed MM atmosphere during an average
aoernoon (1 pm) on a weekday and compared atmosphere
during the evening (7 pm)
Scarce students seen during aoernoon hours (class)
Smaller, quieter customer groups during day compared to larger,
more social groups at night
Restaurant has aestheWcally pleasing layout, however minimal
MM branding witnessed (aside from mascot at entrance
outside) no dierenWators marketed
Demographics: mostly young Caucasians between 18-22
Average wait Wme on busy event nights: 30 min-1 hr

Appendix
Qualitative Research
Focus Groups
Two focus groups, all who have dined at Mellow
Mushroom in the past (chosen demographically)
10-15 minute group discussion with one moderator asking
9 focus quesWons and one record keeper
Group 1: Six current LSU students (ranging from Freshman
to Graduate student)
Group 2: Five LSU alumni

Appendix
Qualitative Research

Focus
Group Ques5ons (broad to narrow; posi5ve to nega5ve)

1. How did you hear about Mellow Mushroom?
2. When was the last Wme you have seen or heard an adverWsement about
Mellow Mushroom?
3. What type of people/demographics do you usually see when you dine at
Mellow Mushroom?
4. List 3 posiWve words that come to mind or best describe Mellow Mushroom.
5. What other restaurants do you think compare to or compete with Mellow
Mushroom? Of those, which would you choose to go to and why?
6. What are unique aspects of Mellow Mushroom that disWnguishes them from
other restaurants?
7. List 3 negaWve words that come to mind or what you dislike about Mellow
Mushroom.
8. What are some suggesWons you have to improve Mellow Mushroom's food,
service, atmosphere or customer base?
9. Do you think MM does a good job markeWng its restaurant? If so, how?

Appendix
Qualitative Research: Focus Group Analysis Main Takeaways

Group 1: Current LSU Students

Common theme discussed was high
menu prices; too expensive for
unemployed college students
Themed and social events were
enjoyable, although 2 students were
unaware of weekly events such as
Trivia Night wish for be:er
adverWsing and more events
3 posiWve describing words: quality,
service, freshness
3 negaWve describing words:
expensive, loud, long wait 5mes
No dissenWng opinions

Group 2: LSU Alumni

Common theme discussed was how
most alum no longer live close to
campus, so restaurant considerable
distance away
Belief that MM has many compeWtors
throughout Baton Rouge, so MMs
branding is not strong enough
moWvaWon to drive across town
3 posiWve describing words: fresh
ingredients, unique atmosphere, tasty
3 negaWve describing words: distance
of loca5on, not many adver5sements,
rare promo5onal incen5ves
No dissenWng opinions

Appendix
Quantitative Research
Online Survey
58 random people in the Baton Rouge area were given a
link to take a short 16 quesWon, Qualtrics developed survey
Type of Ques5ons
Dichotomous
MulWple choice
Ranking by preference
Likert scale
MulWple response from given choices
Unstructured: Open ended short response

Appendix
Quantitative Research
Online Survey Ques5ons (please see aTachments for further
informa5on regarding survey responses and graphical analysis)

1.
2.
3.
4.
5.
6.
7.
8.

What is your gender?

How old are you?
What is your ethnicity
Are you an LSU student?
What is your current classicaWon at LSU?
What is your current employment status?
What is your average household income?
Please rank your preference of the following local pizza
restaurants from 1-6 (1 = most favorite; 6 = least favorite)
9. Approximately, how many miles away do you live from Mellow
Mushroom?

Appendix
Quantitative Research
Online
Survey Ques5ons (con5nued)

10.
11.
12.
13.
14.
15.
16.

On average, how ooen do you dine at Mellow Mushroom?

On average, how much do you spend when you dine at
Mellow Mushroom?
Why do you dine at Mellow Mushroom?
Have you ever had any trouble during your dining experience
at Mellow Mushroom?
How likely are you to recommend Mellow Mushroom to a
friend or relaWve in the future?
Which of the social media sites have you used to post or
learn about Mellow Mushroom?
What is one thing you would change at Mellow Mushroom to
make you more likely to visit in the future?

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
U.S. Census Bureau 2010. ESRI. Demographic and Income Comparison
Prole.
U.S. Bureau of Labor Sta5s5cs 2010-2011. ESRI. Household Budget
Expenditures.
GfK MRI forecasts for 2013 and 2018. ESRI. Restaurant Market Poten5al.
<hTp://www.city-data.com/city/Baton-Rouge-Louisiana.html>
Summary: These 4 sites provided informaWon regarding Baton Rouge
local area (zipcode 70808 and 70803) demographical and market
informaWon ie. PopulaWon, age, esWmated home value, gross rent,
ethnicity, household expenditure, restaurant market potenWal

Appendix
Secondary Research
Online Marke5ng Research
Sharma, C. (2011). College Students Focus on Socializing Over Studying.
The Chronicle. <hTp://www.dukechronicle.com>
Summary: Research was published from a study interviewing 3,000
full-Wme college students from 29 campuses naWonwide. PublicaWon
reported that recent generaWon of students spend majority of their
Wme (75%) socializing or sleeping and only 16% studying or in class.
Use for Mellow Mushroom: It is clear that students enjoy partaking in
acWviWes that allow them to be more social. They may frequent places
like Mellow Mushroom more ooen if it is known for its themaWc social
events.

Appendix
Secondary Research
Online Marke5ng Research
Technomic nds college students calling for healthier choices and greater
say in shaping campus dining programs. (11, August 11). News Release.
Retrieved September 15, 2014. <hTp://technomic.tm00.com>
Summary: College students are unhappy with dining programs at their
school. 44% of students polled stated that campus dining is an
important factor in determining which university to a:end. Only 32%
are saWsed with their dining program. Further, only 28% are pleased
with healthy food items oered at school.
Use for Mellow Mushroom: CustomizaWon of food is important to
consumers today. Many students are advocaWng for a more variety of
healthy opWons. Mellow Mushroom can improve customer base by
markeWng and oering fresh, wholesome ingredients in their food.

Appendix
Secondary Research
Online Marke5ng Research
Barrow, O. (2011). What college kids want: Healthy food, aordable style.
Triangle Business Journal. Retrieved September 15, 2014. <hTp://
www.bizjournals.com>
Summary: Students are more conscienWous of what food they are
purchasing. They are interested in what the ingredients are, where it
came from, and how it was prepared. They appreciate choosing from
more opWons instead of being restricted. The arWcle states, We think
a considerable part of the college market is wanWng and going to
conWnue to want that type of cuisine local, sustainable, organic.
Use for Mellow Mushroom: Develop a menu that incorporates a
variety of diets and a variety of healthy opWons. This needs to be
marketed well through branding and adverWsements to increase
student awareness.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
GhiglioTy, D. (2013, February 8). Healthy meal op5ons boos5ng chain
restaurant sales in reversal of previous trend. Mail Online. Retrieved
September 15, 2014. <hTp://www.dailymail.co.uk>
Summary: Sales of healthy food items are skyrockeWng, while sales of
unhealthy items are conWnually decreasing. Fast food chains that have
noWced this decline are beginning to market healthier opWons. Pizza
chain, Sbarro, introduced a skinny slice of pizza at just 270 calories.
Use for Mellow Mushroom: Mellow Mushroom has incorporated a
few healthy opWons on its menu, but needs to market more and push
these items forward. They can list calorie values next to each menu
item to do so.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
Industry Sta5s5cs and Projected Growth. (2011, June 1). Retrieved
September 15, 2014 <hTp://www.ota.com>
Summary: U.S. sales of organic food and beverages have grown from
$1 billion to $26.7 billion in the last 20 years. Mass market retailers,
farmers markets, specialty stores, and even the internet have
increased prots from selling organic products.
Use for Mellow Mushroom: This is yet another arWcle reporWng an
increase of consumer drive towards healthier lifestyle changes.
Mellow Mushroom should use this informaWon to target these specic
market segments.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
Brakus J, ScmiT BH, Zarantonello L. Brand Experience: What is it? How dod
we measure it? And does it aect loyalty? 1-51.
Summary: Brand experience is conceptualized as sensaWons, feelings,
cogniWons and behavioral responses evoked by brand-related sWmuli
that are part of a brands design and idenWty, packaging,
communicaWons and environments.
Use for Mellow Mushroom: There is a need to appeal to consumers
brand experience, which aects the way people shop. MM can
increase their branding directly as well as indirectly by exposing
customers to adverWsing and markeWng communicaWons.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
CompeWWve Landscape IBISWorld - Industry, Company and Business
Research Reports and InformaWon. (Retrieved 12 Sept 2014) <h:p://
clients1.ibisworld.com.libezp.lib.lsu.edu/reports/us/industry/
compeWWvelandscape>
Summary: This arWcle provides an overview of the compeWWve
landscape with the U.S. chain restaurant industry. The arWcle shows
the current market share concentraWon, key success factors, typical
benchmarks, the basis for compeWWon, barriers to entry, and the
emergence of globalizaWon within the industry.
Use for Mellow Mushroom: Since it is dicult to hold market share,
MM needs to leverage its core values to increase brand awareness.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
Spool, JM. Determining How Design Aects Branding. (2002). <h:p://
www.uie.com/arWcles/design_and_branding/>
Summary: This arWcle provides informaWon on the eects of design on
a companys brand. The arWcle illustrates dierent ways that
companies can design their brand in order to have a posiWve impact
on their customers.
Use for Mellow Mushroom: Because design plays a large role in brand
idenWcaWon, this study suggests companies use this to its advantage
to have a posiWve impact of customers.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
Brenan, Andy. (2014 May). Well done: Restaurants conform to new trends
to survive in a compe55ve market. 2-38. <www.IBISworld.com>
Summary: This is a comprehensive business report that provides an in-
depth analysis of the chain restaurant industry within the U.S. The
report shows industry performance, the products & markets, and the
compeWWve landscape within the industry.
Use for Mellow Mushroom: Digital markeWng and healthier food
opWons are trending in the chain restaurant industry. MM needs to
capitalize on this to maximize return on investment.

Appendix
Secondary Research
Online Marke5ng Research (con5nued)
Fallon, N. (2013, September 13). 3 Social Media Tips for Marke5ng to
College Students. Retrieved September 18, 2014. <hTp://
www.businessnewsdaily.com>
Summary: Social media sites have become important markeWng tools
for almost all small businesses, but for those going aoer the college
demographic, having a presence on Facebook, Twi:er and other social
networks is criWcal for engaging customers.
Use for Mellow Mushroom: Engage customers on social media to
develop closer business-consumer relaWonships.