The position of the customer as the center of a company is central to the marketing concept. There is no time delay between the production of the meal and the service to the customer. In service industries, customer involvement is a requirement for creating the service, for example in hairdressers, a bank or a self-service restaurant.
According to Walter Landor, some of the Landon associates brand consulting brand can be defined. Figure 10.5. For example, Gordon Ramsay has created a strong brand around his name due to the effective use of the media.
ADVERTISING
In general, advertising spend in this sector of the industry ranges from 0.5% to 4.5% of revenue. Regardless of the size of the food service facility, however, advertising has relevance and importance. To be effective, there must be a clear understanding of the purpose and objective of advertising.
Direct mail involves communication by post to specific customers; it can be aimed at new and potential customers or at past or established customers. Here too, it is important to specify exactly which part of the market you are targeting. Newspapers: Advertising in national and local newspapers and magazines is probably one of the most popular forms of media used by catering companies.
The advantages of advertising in specific magazines are that response can be measured, they have a longer 'shelf life' than newspapers and can be re-read many times. This means that when a customer searches for an Italian restaurant in a search engine, if your restaurant is an Italian one, but with no website or with a website that has no links to other websites, your web pages will never be found by those client will not be read. simply because your competitors pages will be the first of a list of hundreds or more restaurants of the same type. However, a high-end restaurant located outside a town would not need to use such clear external signs because a higher percentage of the trade would have already made a reservation and such a restaurant would therefore be something smaller and more display discreetly.
This includes other forms of advertising media that can be used in addition to the major channels discussed above, for example door-to-door brochures, leisure center admission tickets, theater programs, shop windows etc.
PUBLIC RELATIONS
It has a forward-looking function in creating positive publicity for the organization and can be used at various stages of the facility's life cycle. For example, if a fast food restaurant is opening in a busy city center, a public relations exercise will typically focus on creating a favorable environment and attitude within the local community before its opening. If this facility is specifically aimed at a market for younger families, the PR function would include informing the identified market segments of the benefits the facility has to offer them.
In institutional catering, the role of public relations may be to explain to a staff committee the need for certain price increases to be passed on to the staff cafeteria, or why different products have been purchased to replace existing ones, etc. The initiation of a public relations exercise must begin with the identification of that sector of the organization's environment with which it wishes to communicate; for example, it could be a specific segment of its market, the press, local schools, etc. An evaluation of the organisation's existing corporate image Figure 10.10 Bank Restaurants credit card (UK) (Source: Bank restaurants, UK).
The choice of public relations tools used largely depends on the target audience, the suitability of one medium over another and the available budget. Depending on the size of the organization, the public relations function may be the responsibility of the owner or manager, it may be the task of an individual in a medium-sized company, a separate department within the organization consisting of several employees, or an outside public relations firm may be used. Public relations in the hotel and hospitality industry has a real application, regardless of whether the hospitality establishment is a small or large establishment, is independent or part of a large group, exists on the free market or is owned.
The public image, good or bad, of a catering facility is something that develops as a result of the business activity; however, whether it is beneficial or detrimental to the organization can be greatly influenced by public relations.
MERCHANDISING
The organization can then choose the most appropriate channels for communicating its messages to help create the type of environmental climate it feels would be conducive to its company's objectives. Hats, t-shirts, coffee mugs, and other promotional materials can help drive additional revenue into the business while also strengthening the operations brand. There are a variety of other inside sales tools that can be used by a food service.
These include placemats which, in coffee shops, may include the breakfast menu with a reminder that the business is open all day for snacks; napkins; placemats; and pre-portioned condiments, all of which add to the operation's selling message. In the bars, handing out cocktail sticks, matches and drinking mats also allows a small part of the operation to be carried out from the establishment and can act as a reminder to customers of their dining experience several days or months later. Throughout all aspects of an organization's merchandising approach, there is a very real need for it to complement its advertising campaign.
SALES PROMOTION
To increase average spending by customers and thereby increase sales revenue (see Figure 10.6. To promote a new product or range of products introduced by the operation, for example offering a new flavored milk shake at a pick-up facility at a reduced price To influence impulse buyers towards a particular product or range of products, for example by featuring Australian wine at a special discount price.
As a reminder during a long-term advertising campaign, for example with long-standing main menu items. To help 'smooth out' peak business activity, for example by offering a free glass of wine to customers who order their meal before 6:30 p.m. Such 'packages' are seasonal in nature, but help focus much of customer choice on items with low preparation labor content (Figure 10.12.
To clear slow moving stock, e.g. pricing specific cocktails for two for the price of one. Distribution Channels: Promotional techniques aimed at inducing third-party agents include free restaurant meals, free gifts, contests, and the use of hotel leisure facilities. Sales Associates: Sales promotion incentives are similar to those listed above and include commission-based sales, contests, token and point systems that take place over an extended period of time to encourage ongoing sales commitment from the sales force.
It can be initiated by the company itself or by an external organization and, like all other aspects of the marketing mix, must be aligned with the organization's marketing objectives (Figure 10.13.
PERSONAL SELLING AND UPSELLING
At the other end of the catering spectrum, where there is much longer contact time between service staff and customers, such as in haute cuisine or specialty restaurants, the 'personal touch' plays a more important role in the total service product. For example, a waiter may receive a sales bonus for every additional £5.00 spent by a customer over and above a predetermined average spend; upsell indicating that the waiter has sold more food and drinks than the average for that restaurant. However, incentives given to service staff in this way must be introduced with sensitivity so that the wrong kind of competition between staff does not develop to the detriment of the restaurant.
Regardless of the level of catering operations and the amount of sales training provided, there is a need for service staff to become more aware of customer needs by listening and observing and identifying what their needs are for that particular meal; this information can then be quantified by management for possible future action. The marketing of a catering business must be planned, organized and monitored effectively through all its phases. The successes and failures of their promotional campaigns and those of their competitors should be studied and reviewed whenever possible.
These are areas of food and beverage management that often require significant financial outlay, but have no guarantee of success. It is there to stimulate interest and influence the customer to buy the company's product over the products of its competitors. The customer's action is converted into a purchase at the point of sale, which is further stimulated by effective trade products and possibly sales promotion techniques, all of which work in a favorable environment created by good public relations.
Due to the nature of services, food and beverage operations marketing can differ greatly from that of products, and although the basic concepts of segmentation mix and life cycle.
Case study: Centenary Hotels
The board of directors has decided to hire a marketing firm to re-market their "new" restaurants. Question 1: Your company is bidding on this contract and you are expected to prepare a power point presentation that illustrates how your company will approach the marketing campaign and what tools you will use to ensure the restaurants succeed. Consider internal as well as external marketing techniques when pitching your ideas to the board.
Further reading
