Go Noodle House, a once-prominent dining concept in Malaysia has over the years been rendered generic by the influx of copycats. Their Cost-Based pricing strategy, while a good method, in the beginning, led to them being unable to scale sustainably.
In 2019 and 2020, Virtual Peddlers Marketing started working with the company’s marketing team with a plan to move forward.
To move the company from a cost-based strategy to a value-based strategy, where it can command higher margins while also increasing its customer base. This approach would also break the company away from its endless competition with copycats.
To gradually increase the profit per customer per visit, while providing additional value to them.
The client’s core values were overhauled. We kept the tried and true ones and introduced new ones that are fit to bring the brand forward into the international market. A set of strategies are built to expand and promote the new values of the company, which included:
- Pricing changes
- Experiential dining
- Quality control of ingredients
- Improved Supply Chain Management
We ran campaigns that focused on brand recognition to increase its value among the general public. They included the following:
- Adopting a value-oriented messaging approach to social media messages instead of a promotion-oriented one.
- Highlighting where the ingredients for each dish came from. This strategy aimed to showcase high-quality ingredients that justified higher pricing.
The branding activities were also able to attract more high-value franchisees into the business.
This approach increased profit per customer per visit while being a good way to cycle harder to move items in the inventory. The price for each side dish was increased by less than its retail equivalent, but higher than the company’s cost.
We proposed a reward system that would track and give back to their customers on a regular basis. This came in the form of an app that would also be able to collect usage data.
increase in Brand Recall Lift
increase in Profit per Visitor
decrease in Slow Moving Inventory volume