Transcript FBM 3196_chapter_04

OPEN DAY
Chapter 4
Food and Beverage Marketing
&
A Feasibility Study
FMB 3196
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Competencies for
Fundamentals of Marketing
1. Explain marketing in terms of delivering
guest-pleasing service.
2. Describe the steps involved in developing
a feasibility study and list the three types
of marketing research that should follow
such a study.
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Competencies
for
Fundamentals of Marketing
3. Describe the elements of a complete
marketing plan, focusing on the roles of
sales, advertising, public relations, and
publicity. Compare public relations and
publicity for hospitality operations.
4. Describe marketing tactics that might be
used by a noncommercial food service
operation.
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The Business Case
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The objective of a Feasibility Study
Why
How
Where & What
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The Business Case
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The feasibility study is an
evaluation and analysis of the
potential of a proposed project
which is based on extensive
investigation and research to
support the process of decision
making.
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Functions of a Feasibility Study
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Identify market area characteristics.
Evaluate the proposed site.
Analyze competitors.
Estimate demand.
Project operating results.
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Market Area Characteristics
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Demographic information
Retail sales volume
Number and types of businesses
Impact of tourism
Available transportation
Economic stability
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Evaluating the Proposed Site
• Availability and convenience of
parking
• Traffic flow
• Presence of other attractions
that may bring in guests
• Site accessibility
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Changing concepts..
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Changing
concept due to study
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One Harbour Road at
Grand Hyatt Hong
Kong
•Was planned as a
French dining room
•Then went to Italian
•Ended up
Chinese…
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Analyzing the Competition
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Location
Type of establishment
Times of operation
Menu prices
Check average
Type of service
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Analyzing the Market
Guest Profile Research
•Age
•Gender
•Frequency of visits to the property
•Employment
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Analyzing the Market
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
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Steps in a Typical
Marketing Plan
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Select target markets.
Determine objectives.
Create action plans.
Evaluate and revise plans
as necessary.
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Special
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Promotions
Couponing
Product sampling
Contests
Packages
Premiums
Gift certificates
Discounting
Bonus offers
Frequent diner programs
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Billboard - Outdoors
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Outdoor
Sign Advertising
Pros
• Low cost
• Long life span
• Broad reach
Cons
• Limited message length
• Wasted coverage
• Zoning/posting restrictions
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Newspaper
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Advertising
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Pros
Low cost
Broad reach
Effective
coverage
• Immediacy
• Flexibility
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Newspaper
Advertising
Cons
• Read or skimmed quickly
• Usually seen by only one
reader per issue
• Poor reproduction quality
• Wasted coverage
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OPEN DAYMagazine
Advertising
Pros
• Long life span
• Several readers
per issue
• Can target specific
audiences
• Excellent
reproduction
quality
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A focused add….
Magazine
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Advertising
Cons
High cost
Long
preparation time
needed
Inflexibility
Some wasted
coverage
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Radio Advertising
Pros
• Saturate local area
• Low cost
• Can target specific markets
• High message repetition possible
Cons
• Short life span
• Audio only
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Television
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Advertising
Pros
• Appealing presentation of sight and sound
• Viewers retain message
• Extensive coverage
• Target markets
Cons
• High cost
• Long preparation time
• Wasted coverage
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Direct
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Mail Advertising
Pros
•Audience selectivity
•Flexibility
•Personalized message
•Easily stopped or
started
•Easily evaluated for
effectiveness
Con / Negative:
•High Cost and often
seen as Junk Mail
•Less than 2% ROI….
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Internet
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Advertising
One-on-one
guest
relationships
E-newsletters
Online
reservations
Banner ads
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Thank You!
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