food and beverage management 3

F&B MANAGEMENT

CHAPTER 3MARKETING F&B

LEARNING OBJECTIVE

• Conduct a Marketing Audit

• Select Target Markets

• Position the Property

• Determine Marketing Objectives

• Develop and Implement Action Plans

• Monitor and Evaluate the Marketing Plan

MARKETING DEFINED

• "Process of – planning and executing

• the conception, • pricing, • promotion, and • distribution

– of ideas-goods-and services – to create exchanges that satisfy individual

and organizational objectives".

BASICS 1

Generate profits by producing satisfied customers

BASICS

"If you satisfy the customers but fail to get the profit, you'll soon be out of business; if you get the profit but fail to satisfy the customers, you'll soon be out of customers."

J C Penny

BASICS

Businesses cannot be all things to all people-they cannot satisfy all the needs and wants of all the people.

Choose which segments of the market are to be targeted

BASICS

So now we need to do research to determine customer needs and wants.

Develop products and services to satisfy customer needs and wants.

Also important is to look at it as Who’s need can we satisfy?

MARKETING PLAN

Conduct a Marketing Audit

Select Target Markets

Position the Property

Determine Marketing Objectives

Develop and Implement Action Plans

•Monitor and Evaluate the Marketing Plan

Conduct a Marketing Audit

• Analysis of – Customers: – Property: – Competition:

Information about the customer

• Who are they?• Where do they come

from?• When do they visit?• When is the

decision made? • How do they reach

us?• Why do they come?

Customer for the Event.

• Who are they?– Are they all Students?– Are the all Staff?– Are they mix of Staff

and Students?– If So what ratio?

Customer for the Event.

• Why do they come?

– Are they coming for Food?– Are they coming because it is

the first time?– Are they coming because

they think it will be fun?–

Where can you get information from?

• Existing:– Micros Info– Sales/Day of the Week– How many

BF/Lunch/Dinner– Popular dishes– Number of Beer Sold

etc..– Reservation Diary.

• For New Business?– Primary

Data/Information– Secondary Data

Where can you get information from?

• For the event– Primary

Data/Information

– Talking to the Students directly.

– From the Office

Property:

• Evaluate the property from customers viewpoint.

• Location• Menu• Cleanliness• Image• Atmosphere:

– Interior, Exterior.

Location

Location

Property: • Evaluate the event from customers

viewpoint.• Location: Having here it college, Good or

Bad?

• Menu: Having a Exotic Menu

• Cleanliness• Image: What image are we trying to cast in Students

mind

• Atmosphere: Can you create an atmosphere without costing much.

– Interior, Exterior.

Competition:

• Find out– Who is competition? – Who are they serving?– Who are they not able to serve?– What weakness do they have?

Select Target Markets

• The total population is a complex mix

• Needs and behaviors are different• Segment them

– Understand them– Their Needs– To Serve them better

Segment the market

• Geographic: – How many miles radius is the

catchments area.

• Demographic; – Are we looking for Young people/old

people?– Is the restaurant for Chinese, Indian,

Malays, Caucasian?

Segmenting• Psycho-graphic : Attitudes, Interests, and

Opinions. (AIO) (Lifestyle)– “Too tired to cook"

• who want convenience and eating pleasure

– "Busy parents" • who want to please the children

– "Care Seekers" • who want familiar, home-cooked dishes, friendly service,

and discounts

– "Urban sophisticates" • who are trendy

– "Flavor savorers" • who are driven by cravings

Segmenting• Based on Usage or Behavior

• Non-prospects: – those who are never likely to become users

• Prospects: – those who might become users

• Light users: – 1 to 5 times per month, 14.8% of revenue

• Medium users: – 6 to 13 times per month, 40.8% of revenue

• Heavy users: – over 14 times per month, 44.8% of revenue

Segmenting

• Based on Benefits they are seeking.– Fun time–  Nice meal out–  Craving– Making sure that everyone is getting

something to eat –  Easiest thing available

Revenue Grid for existing Restaurant

• How much revenue (sales) is from each segment?

• Attract segments similar to the the existing customers.

Position the Property

• Tell the customer who you are.• Create the image :

• People are perception driven, emotion driven.

• Reality matters not just the image.

• Tell the customer why they must come to you. – WIIFM rule? Sell Benefits not Features.

• Differentiate YOU from competition.– What is your USP? Unique Selling Point

Perceptual Map:

• A visual representation of two elements:

–the relative importance of various benefits to guests and

–their perception of how well a facility does in providing these benefits

Perceptual Map:

Creating a Perceptual Map

• From the above list create questions with various items.

• Rate 1 for No Significance and 5 for High Significance.

• Place them on the grid accordingly.– Q1 Not important for Guest/Not Provided by

the restaurant– Q2 Not important for Guest but provided by

restaurant– Q3 Important for Guest Not provided by the

Restaurant– Q4 Important for Guest and Provided by

Restaurant

Perceptual Map:

Where do we Stand?

• What is important for Customers?• Don’t just count on your strengths.• Do Reality Checks….

– Fill in the Blanks.– _______________(which segment)– _______________(what benefits are they seeking)– ________________(what can be provided to satisfy)

Determine Marketing Objectives• Objectives gives everyone

direction and motivation.• Criteria

– Make Quantitative objectives.– Ex: “Improve service” (Qualitative)– Reduce complaints by 50%

(Quantitative)– Put a Timeline

Determine Marketing Objectives• In line with Product Life Cycle

– Introduction– Growth– Maturity– Stagnation/Decline

Determine Marketing Objectives• In Line with Customer Buying

Process– AT what stage of buying process

is the customer• Awareness• Knowledge Stage• Attitude Stage• Conviction• Adoption

Develop and Implement Action Plans

• Developing, executing a specific

marketing mix for each segment

Marketing Mix

• “4 P's" • product,• price, • promotion,and • place

• Product-Service Mix: – A Steak is just meat but we add value to it.

Price:

• Price-Value Connection– Product-Driven Pricing – Cost Based Pricing– Customer Driven Pricing

• At the end Customer decides if they want to buy at that price

Promotion Mix

• Advertise• PR• Sales Promotion• Personal Selling• Word of Mouth

Advertise

Place/Distribution

• Most cases people come directly

• If agents are involved in bringing customer manage them well.

• Restaurant Guides and Discount Dining Programs

Budget

• How much to spend?

• % of Sales• 4-6% initially• Increase or Cut

down depending on sales growth.

Budget for Event

• How much to spend for Marketing?

• % of Sales• Increase or Cut

down depending on sales growth.

• Too Much Marketing?

Monitor and Evaluate the Marketing Plan

• In Marketing:– Success means

More Businesses– Failure means no

Impact.

• Why Failed?– Timing, Frequency,

Medium, Wrong target?

• What can we learn?