cha4 marketing
DESCRIPTION
F & B MarketingTRANSCRIPT
Food & Beverage Marketing
Food and Beverage Operations
Food and Beverage Operations
1Tuesday, May 19, 2009
Chapter Objectives• Explain marketing in terms of delivering guest-
pleasing service• Describe the steps involved in developing a
feasibility study and list the three types of ongoing marketing research
• Describe the elements of a complete marketing plan, focusing on the roles of sales, advertising, PR, and publicity
• Identify marketing tactics for noncommercial food service operation
2Tuesday, May 19, 2009Why do we do the things we do? The most valuable asset of any company is repetition and growth: Guest Service
Market Research what drives data? People, popularity, trends, Starbucks is one example of a coffee shop gone global
Tactics of business
Managers Concerned about Guests
• “Moments of truth”• Recognize that service is as important as the
product• Develop guest-friendly procedures that meet
the operation’s standards and goals• Assess and respond to guests’ ever-changing
preferences and needs
3Tuesday, May 19, 2009Moments of Truth: Some can be tired sayings Ritz-Carleton: Our motto states that “We are Ladies and Gentlemen serving Ladies and Gentlemen,”
Moments of Truth: How are you going to “Wow” me today?
Includes employees as well as the guests
Functions of a Feasibility Study• Identify market area characteristics• Evaluate the proposed site• Analyze competitors• Estimate demand• Project operating results
4Tuesday, May 19, 2009Gambling 101Not considering a feasibility study 95% FAIL RATE
Who is your customer/guest?Demographics
Area and amenities, flow of traffic: Restaurant is on side street or on a busy corner. In a high rise penthouse or in the basement without windows?
Who is the competition with your concept? Do you have superior products or service? Nordstomʼs vs Macyʼs
Demand shapes hours of operation, labor and product usage
Honeymoon- Estimate how your F&B operation will consistently be able to preform after the popularity wears off.
Consideration of a feasibility study 50% SUCCESS RATE
Market Area Characteristics• Demographic
information• Retail sales volume• Number and types of
business• Impact of tourism• Available
transportation• Economic stability
5Tuesday, May 19, 2009
Evaluating the Proposed Site• Availability and
convenience of parking
• Traffic flow• Presence of other
attractions that may bring in guests
• Site accessibility
6Tuesday, May 19, 2009
Analyzing the Competition• Location• Type of establishment• Times of operation• Menu prices• Average Guest Check• Type of Service• Number of Seats
• Availability of Liquor Service
• Entertainment• Promotional efforts• Chain affiliation• Other service
distinctions
7Tuesday, May 19, 2009
• Surveying potential guests by – Personal interview– Direct mail questionnaires– Computer-assisted survey
• What to ask:– Food preferences– How often…– How far…– How much time…– How much money…
Estimating Demands
8Tuesday, May 19, 2009
Projecting Operating Results• Financial results
– Forecasts of food & beverage revenue– Overhead Expenses:
• Administration• Labor• Facility maintenance• Energy• Rent• Insurance• Taxes
Stay Current!
9Tuesday, May 19, 2009
Ongoing Marketing Research • Property Analysis
– Appraisal for production, service areas, products, and services
– Outsiders’ viewpoint• Competition Analysis
– cover the same categories listed in the feasibility study
– Visit competitor’s operations at a variety of times
• Market Analysis• Government Statistics and Data
10Tuesday, May 19, 2009
Market Analysis• Guest Profile Research
– Age– Gender– Frequency of visits to the
property– Employment
• Data Gathering Tools– Guest surveys – Guest comment cards
NRA website http://www.restaurant.org/research/
11Tuesday, May 19, 2009
Market Analysis• Marketplace Factors/Trends • Changes in demographics• Positive and negative events in the
community, region, state, and nation• Cost of energy and other utilities• Government regulations• Cost of travel
12Tuesday, May 19, 2009
Steps in a Typical Marketing Plan
Select target market
Determine Objective
Create action plans
Evaluate and revise
13Tuesday, May 19, 2009Also related to a Business Plan
Implementing the Marketing Plan
• Sales efforts• Advertising• Public
relations• Publicity
14Tuesday, May 19, 2009
Special Promotions• Cut-out Coupons• Product Sampling• Contests• Package• Premiums• Gift Certificates• Discounting• Bonus Offers• Frequent Diner program
15Tuesday, May 19, 2009Depends on your demographicFast food chains do this alot
Incentive needs to be built with a message to return
Concerns not to cheapen your business with frequency
What are you trying to accomplish? One time diner or repeat?If repeat you have one moment to have them consider you again and return
Outdoor Sign Advertising•Pros
– Low cost– Long life span– Broad reach
•Cons– Limited message
length– Wasted coverage– Zoning/posting
Outdoor Sign Advertising
16Tuesday, May 19, 2009Needs to be read from a distance with contrasting colors and shade-Night AND Day
Newspaper Advertising• Pros
– Low cost– Broad reach– Effective coverage– Immediacy– Flexibility
• Cons– Read or skimmed quickly– Usually seen by only reader per
issue– Poor reproduction quality– Wasted coverage
17Tuesday, May 19, 2009
Most Popular restaurant News Ad Holidays;
New Years Eve, Valentineʼs Day, Easter, Motherʼs Day, Fourth of July, Thanksgiving, Christmas
Magazine Advertising★Pros– life span– Several readers per issue– Can target specific audiences– Excellent reproduction quality ★Cons– High cost– Long preparation time needed– Inflexibility– Some wasted coverage
18Tuesday, May 19, 2009Wow! Maui as travel destination has over 6 different menu publications.
Lots of advertising dollars being spent. You SHOULD get a 10% return on your investment!!
One full page ad cost an average of $4000 for a full year, not including set up and photos.
The cover and back costs a premium of $8,000-$10,000 per year
Radio Advertising• Pros
– Potentially saturate an entire area– Low cost– Produced quickly and used
immediately– Sponsorship– Drive time
• Cons– Short life span– Audio only
19Tuesday, May 19, 2009Radio is repetitive, lively but disappears quickly after itʼs heardDJ can flub up your message
Need to determine your station and demographic.
Television Advertising• Pros
– Appealing presentation of sight and sound
– Viewers retain message– Extensive coverage– Target market
• Cons– Highest cost!– Long preparation time– Wasted coverage
20Tuesday, May 19, 2009If you can afford it this is the way to go
Direct Mail Advertising• Pros
– Audience selectivity– Flexibility– Personalized message– Easily stopped or started– Easily evaluated for effectiveness
• Cons– High cost– “Junk mail” image
21Tuesday, May 19, 2009Targets Shut Inʼs and Senior CitizensUse this for marketing lunch; many offices and businesses are locked in to an hour and are on a budget
Internet Advertising
• One-on-one guest relationships
• E-newsletters• Online reservations• Banner ads
22Tuesday, May 19, 2009Fastest growing area in the world but yet to be exploited
World wide 1.5 billion have access to internet
China 23% Growing 1000% from 2000-2008 250 million
US 73% 250 million
http://www.internetworldstats.com/stats2.htm
PR and Publicity• Public Relation:
– communicating favorable info about the operation to the public to create a positive impression
– Word of mouth– Charity work
• Publicity: – Free media coverage of an operation, its staff, or
special property events by the media– Editorial page– Medium controls the message
23Tuesday, May 19, 2009Promotional, Concierge, Participation in Events, Charity, Associations, Face time and Demonstrations, Teaching
Marketing Review
24
• Explain marketing in terms of delivering guest-pleasing service
• Describe the steps involved in developing a feasibility study and list the three types of ongoing marketing research
• Describe the elements of a complete marketing plan, focusing on the roles of sales, advertising, PR, and publicity
• Identify marketing tactics for noncommercial food service operation
24Tuesday, May 19, 2009
F & B Marketing focuses on one main thing: repeat guest experiences.
In order to do that...Identify market area characteristics, Evaluate the proposed site, Analyze competitors, Estimate demand, Project operating results
Property Analysis, Competition Analysis, Market Analysis, Government Statistics and Data
MediaCoupons, Magazines, Radio, Newspaper, TV, Outdoor Signage, Internet, Direct Mail, Media Events/PR