open day chapter 4 food and beverage marketing & a feasibility study fmb 3196

OPEN DAY

www.lrjj.cn

Chapter 4Food and Beverage Marketing

&A Feasibility Study

FMB 3196

OPEN DAY

www.lrjj.cn

Competencies forFundamentals 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.

OPEN DAY

www.lrjj.cn

Competencies forFundamentals 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.

OPEN DAY

www.lrjj.cn

The Business Case

The objective of a Feasibility StudyWhyHow

Where & What

OPEN DAY

www.lrjj.cn

The Business Case

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.

OPEN DAY

www.lrjj.cn

Functions of a Feasibility Study

• Identify market area characteristics.

• Evaluate the proposed site.

• Analyze competitors.

• Estimate demand.

• Project operating results.

OPEN DAY

www.lrjj.cn

Market Area Characteristics

• Demographic information

• Retail sales volume

• Number and types of businesses

• Impact of tourism

• Available transportation

• Economic stability

OPEN DAY

www.lrjj.cn

Evaluating the Proposed Site

• Availability and convenience of parking

• Traffic flow

• Presence of other attractions that may bring in guests

• Site accessibility

OPEN DAY

www.lrjj.cn

Changing concepts..

OPEN DAY

www.lrjj.cn

Changing concept due to study

One Harbour Road at Grand Hyatt Hong Kong

•Was planned as a French dining room

•Then went to Italian

•Ended up Chinese…

OPEN DAY

www.lrjj.cn

Analyzing the Competition

• Location

• Type of establishment

• Times of operation

• Menu prices

• Check average

• Type of service

OPEN DAY

www.lrjj.cn

Analyzing the Market

Guest Profile Research

•Age

•Gender

•Frequency of visits to the property

•Employment

OPEN DAY

www.lrjj.cn

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

OPEN DAY

www.lrjj.cn

Steps in a TypicalMarketing Plan

• Select target markets.

• Determine objectives.

• Create action plans.

• Evaluate and revise plans

as necessary.

OPEN DAY

www.lrjj.cn

Special Promotions

• Couponing• Product sampling• Contests• Packages• Premiums• Gift certificates• Discounting• Bonus offers• Frequent diner programs

OPEN DAY

www.lrjj.cn

Billboard - Outdoors

OPEN DAY

www.lrjj.cn

Outdoor Sign Advertising

Pros

•Low cost

•Long life span

•Broad reach

Cons

•Limited message length

•Wasted coverage

•Zoning/posting restrictions

OPEN DAY

www.lrjj.cn

Newspaper Advertising

• Pros• Low cost• Broad reach• Effective

coverage• Immediacy• Flexibility

OPEN DAY

www.lrjj.cn

Newspaper Advertising

Cons

•Read or skimmed quickly

•Usually seen by only one reader per issue

•Poor reproduction quality

•Wasted coverage

OPEN DAY

www.lrjj.cn

Magazine Advertising

Pros

•Long life span

•Several readers per issue

•Can target specific audiences

•Excellent reproduction quality

OPEN DAY

www.lrjj.cn

Magazine Advertising

A focused add….

Cons

High cost

Long preparation time needed

Inflexibility

Some wasted coverage

OPEN DAY

www.lrjj.cn

Radio Advertising

Pros•Saturate local area•Low cost•Can target specific markets•High message repetition possible

Cons•Short life span•Audio only

OPEN DAY

www.lrjj.cn

Television Advertising

Pros•Appealing presentation of sight and sound•Viewers retain message•Extensive coverage•Target markets

Cons•High cost•Long preparation time•Wasted coverage

OPEN DAY

www.lrjj.cn

Direct 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….

OPEN DAY

www.lrjj.cn

Internet Advertising One-on-one guest relationships

E-newsletters

Online reservations

Banner ads

OPEN DAY

www.lrjj.cn

Thank You!