Case Study: Marketing Strategies for Lagom Kitchen + Brewery

This case study examines the marketing management of Lagom Kitchen + Brewery, founded in 2016 by Debjeet Banerjee in India. The report analyzes the company's background, including its Swedish-inspired name and microbrewery. It presents a SWOT analysis, highlighting strengths such as product uniqueness and location, and weaknesses like employee turnover. A PEST analysis assesses political, economic, social, and technological factors influencing the business. Porter's Five Forces analysis evaluates competitive threats. The findings reveal the need to address employee attrition and navigate the political and social environment. Recommendations include knowledge sharing, employee training, operational strategy implementation, employee motivation, nationwide growth, and R&D improvements. The conclusion emphasizes the importance of implementing these measures to increase revenue and competitive advantage. The report uses the case study provided to analyze the company's challenges and provide recommendations to improve its position in the market.

Running head: MARKETING MANAGEMENT IN LAGOM KITCHEN + BREWERY
MARKETING MANAGEMENT IN LAGOM KITCHEN + BREWERY
Name of the Student
Name of the University
Author Note

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EXECUTIVE SUMMARY
The following report attempted an analysis of the issues that were faced by the company, Lagom
Kitchrn + Brewery (Lagom), since its foundation. The report opened with a discussion on the
background of the restaurant and brewery. The report thereafter proceeded to present a SWOT
analysis of the restaurant followed by the PEST analysis. The report further proceeded to present
an analysis of the company on the basis of the Porter’s Five Forces model. The report finally
neared a conclusion with the discussion on the recommendations that might have helped in the
improvement of the conditions that were faced by the company.

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Table of Contents
Introduction..........................................................................................................................3
Company Background.....................................................................................................3
Micro Analysis.................................................................................................................4
SWOT Analysis...........................................................................................................4
Macro Analysis................................................................................................................5
PEST Analysis.............................................................................................................5
Porter's Five Forces Analysis.......................................................................................6
Findings...........................................................................................................................7
Micro Analysis.............................................................................................................7
Macro Analysis............................................................................................................7
Recommendations................................................................................................................7
Conclusion...........................................................................................................................8
References..........................................................................................................................10

3MARKETING MANAGEMENT IN LAGOM KITCHEN + BREWERY
Introduction
Lagom Kitchrn + Brewery (Lagom), one of the finest active restaurants of the Indian
markets, was founded in the year 2016 by Debjeet Banerjee. The restaurant had derived its name
from a Swedish word “Lagom” which stands for “just right” (Pathak & Pillania, 2017). The
following report attempts an analysis of the issues that have been faced by the company since its
foundation. The report opens with a discussion on the background of the restaurant and brewery.
The report thereafter proceeds to present a SWOT analysis of the restaurant followed by the
PEST analysis. The report further proceeds to present an analysis of the company on the basis of
the Porter’s Five Forces model. The report finally nears a conclusion with the discussion on the
recommendations that might help in the improvement of the conditions that were faced by the
company thereby leading to an increase in the competitive advantage of the company.
Company Background
Lagom Kitchrn +Brewery (Lagom) is one of the finest restaurants that were active in the
Indian markets. The restaurant was founded in the year 2016 by Debjeet Banerjee in India. The
restaurant had derived its name from a Swedish word “Lagom” which stands for “just right”. The
team of employees at Lagom consisted of 20 staff for service, 3 managers for the front desks, 10
chefs for the specialty dishes and a general manager who was highly experienced (Pathak &
Pillania, 2017). The dishes and the drinks that were served at Lagom were known to have
maintained a high standard in accordance to the name of the restaurant services. The restaurant
owned a microbrewery unit that was manufactured in Germany and was capable of brewing three
different kinds of beer. The restaurant was capable of accommodating 140 clients and was
situated in an area that was surrounded by many mall and business parks. The founder had
estimated an excellent growth of the company but the situations that were faced by the restaurant

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obstructed the growth of the company according to the expectations of the founder (Pathak &
Pillania, 2017). The restaurant is observed to have faced a greater number of losses due to the
internal as well as the external environmental factors.
Micro Analysis
SWOT Analysis
The major strengths of the restaurant refer to the uniqueness of the products and the
services that provided by the restaurant. The other strengths of the restaurant lie in the
attractiveness of the location wherein the restaurant is situated (Ingaldi & Škůrková, 2016). The
strengths of the restaurant also lie in the fact that the microbrewery industry has been growing
within the Indian market.
The major weaknesses of the restaurant lie in the fact that the employee turnover rate
within the organization. The lower level employees of the organization are observed to have a
high rate of attrition (Baruah, 2016). The restaurant also faces a huge threat due to the low levels
of loyalty among the suppliers of the organization.
The opportunities of the organization might lie in the lowering of the costs of the various
services and the products that are introduced by the company in the Indian market. The company
might face an increase in the consumption due to the lower rate of the inflation within the market
thereby enabling the crediting of the lower interest towards the clientele of the company (Mason,
Cole & Goza, 2017).
The restaurant however faces a huge number of threats within the Indian market wherein
the company has been featuring. The major threat that is faced by the company is due to the
changes in the political environment within the country (Stetic et al., 2015). The company is

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further threatened due to the shortage of the skilled laborers. The high rate of employee turnover
has led to the skilled labor shortage in the organizational workforce.
Macro Analysis
PEST Analysis
The major political factors that have been affecting the company in discussion refer
mainly to the changes in the political stability the needs to be maintained within the given market
of India (Kozák, Bartók & Honzková, 2017). The company further needs to adhere by the
international rules that are implemented in order to develop a proper operation in the
international markets.
The major economic factors that have been affecting the organization refers to the issues
in the economic performance of the market wherein the company has been featuring. The other
economic factors that have been affecting the company refers to the increase in the inflation rates
within the given market (Kielesińska, 2018).
The major social factors that affect the organization refer to the issues in the maintenance
of the gender roles within the given market. The other factor that has been affecting the
organizational operations tend to deal with the low level of education among the employees of
the organization (Kim, Rim & Lee, 2019). This has also led to the high level of attrition among
the employees of the organization.
The technological factors that have been affecting the organization refer to those that
deal with the supply chain model that is being followed within the organization. The innovative
factors that are present within the organization tend to advanced. This has led the suppliers to
present newer products with passage of the short time intervals (Gammelgaard, 2015). This has

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further impacted the cost of operations within the company due to the introduction of advanced
technology in order to retain the suppliers of the organization.
Porter's Five Forces Analysis
The company faces a threat from the new entrants in the given market. The major
entrants within the given market is increased and thus the existing players in the given markets
tend to avoid the high revenue in order to minimize the threats to the company (Ulubeyli, 2017).
The restaurant further faces a threat due to the substitution of the company by the other
competitors in the given market. The company might be advised to invest a greater amount in the
research and development departments in order to have a hold on the given market wherein the
company has been operating.
The suppliers of Lagom Kitchen + Brewery are observed to hold a greater power on the
operations of the company due to the high amount of the innovative products that they supply to
the concerned company (Bergmann & Strecker, 2018). Thus, the company is observed to face a
high bargaining power from the suppliers of the organization.
The bargaining power of the buyers is also high due to the higher number of the
competitors that have been operating in the given market as well. The majority of the clients of
Lagom Kitchen + Brewery tend to have a number of options in the given industry thereby
leading to the company facing an extremely high competition within the given market.
The company also faces a high rivalry from the other companies in the hospitality
industry as is present in the Indian markets (Carol, Federico & Thomas, 2015). This might lead
to the loss of the competitive advantage of the company in the Indian market.

7MARKETING MANAGEMENT IN LAGOM KITCHEN + BREWERY
Findings
Micro Analysis
The major findings from the micro analysis refer to the fact that the company is capable
of having a proper expansion in the country due to the low rates of inflation within the country
but needs to arrest the high rates of employee attrition.
Macro Analysis
The macro analysis states that the concerned company should need to deal with the
tumultuous political scenarios within the country as well as maintain a proper maintenance of the
social factors in order to arrest the high employee attrition rates as well as enable the nation-wide
expansion of the restaurant and brewery.
Recommendations
The company in discussion, Lagom Kitchen + Brewery, might be advised to follow
certain measures in order to deal with the issues that they have been facing in their operations in
the Indian markets. The recommended measures are enlisted below.
 Proper maintenance of the knowledge base within the company
The company might be advised to encourage knowledge sharing. This in turn helps in the
resolution of the issues that are faced by the company in relation to the proper and
innovative service to the clientele.
 Training the employees
The employees of the organization should be trained in a proper manner in order to help
them to serve the clients in a better manner and thus help in the increment of the revenue
that is earned by the company.

8MARKETING MANAGEMENT IN LAGOM KITCHEN + BREWERY
 Implementing the proper operational strategy within the company
This would help in the development of the overall operations of the company thereby
leading to the increase in the competitive advantage of the company in the given market.
 Motivating the employees.
The company in discussion, Lagom Kitchen + Brewery, might be advised to incorporate
the motivational strategies that would help in the arresting the high employee turnover in
the company.
 Attempting a nation-wide growth
The company, Lagom Kitchen + Brewery, might also be advised to attempt a growth in
the various local markets of the Indian states. This might help in the increase of the client
base of the company thereby leading to the increase in the overall revenue of the
company. this might also reflect in the growth of the competitive advantage of the
company.
 Improving the department of research and development within the company.
The company might further be advised to put forth an improvement in the research and
the development of the company thereby leading to the increase in the revenue generation
of the company.
Conclusion
In lieu of the above discussion, it might be stated that the organization in discussion,
Lagom Kitchen + Brewery have been facing major operational issues. The major issue that has
been faced by the company is the lack of the proper client base of the company. The company
might overcome the issue that it has been facing in the Indian market through the implementation
of the recommended measures. The implementations of the recommended measures would assist

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the company through the increase in the overall revenue of the company. this might also reflect
in the growth of the competitive advantage of the company. (1393)

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References
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India. International Journal of Interdisciplinary Research in Science Society and
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Bergmann, A., & Strecker, S. (2018, July). Toward Modeling Strategic Plans: Requirements &
Language Design Considerations. In 2018 IEEE 20th Conference on Business
Informatics (CBI) (Vol. 2, pp. 11-20). IEEE.
Carol, Y. Z., Federico, G., & Thomas, M. B. (2015). Competitiveness in a saturated market. A
case study of the Scottish craft beer industry. International Journal of Business and
Social Science, 6(8).
Gammelgaard, J. (2015). Case study I Internationalization of brewery companies. International
Business Strategy: Theory and Practice, 109-113.
Ingaldi, M., & Škůrková, K. L. (2016). Evaluation of Service Quality in Brewery Using
Importance-Performance Analysis. Acta technologica agriculturae, 19(1), 24-28.
Kielesińska, A. (2018). Food quality and safety in the brewing industry. Production Engineering
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Kozák, V., Bartók, O., & Honzková, I. (2017). Application of Destination Management for
Rožnov Brewery and Rožnov Beer Spa Productivity Increase. ICFE 2017, 376.

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Mason, A., Cole, T., & Goza, N. (2017). Starbucks: a case study of effective management in the
coffee industry. Journal of International Management Studies, 17(1).
Pathak, S., & Pillania, R. (2017). Lagom Kitchen + Brewery: A Quest for Survival. Retrieved
from https://hbr.org/product/lagom-kitchen-brewery-a-quest-for-survival/W17531-PDF-
ENG
Stetic, S., Pavlovic, S., Mihajlovic, B., & Stanic, S. (2015). Wine tourism as a factor in the
revitalization of rural settlements Rajac and Rogljevo. Quaestus, (6), 9.
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Management, 18(1), 35-53.