OPEN DAY Chapter 4 Food and Beverage Marketing & A Feasibility Study FMB 3196

OPEN DAY 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.

OPEN DAY 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.

OPEN DAY The Business Case The objective of a Feasibility Study Why How Where & What

OPEN DAY 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 Functions of a Feasibility Study Identify market area characteristics. Evaluate the proposed site. Analyze competitors. Estimate demand. Project operating results.

OPEN DAY Market Area Characteristics Demographic information Retail sales volume Number and types of businesses Impact of tourism Available transportation Economic stability

OPEN DAY Evaluating the Proposed Site Availability and convenience of parking Traffic flow Presence of other attractions that may bring in guests Site accessibility

OPEN DAY Changing concepts..

OPEN DAY 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 Analyzing the Competition Location Type of establishment Times of operation Menu prices Check average Type of service

OPEN DAY Analyzing the Market Guest Profile Research Age Gender Frequency of visits to the property Employment

OPEN DAY 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 Steps in a Typical Marketing Plan Select target markets. Determine objectives. Create action plans. Evaluate and revise plans as necessary.

OPEN DAY Special Promotions Couponing Product sampling Contests Packages Premiums Gift certificates Discounting Bonus offers Frequent diner programs

OPEN DAY Billboard - Outdoors

OPEN DAY Outdoor Sign Advertising Pros Low cost Long life span Broad reach Cons Limited message length Wasted coverage Zoning/posting restrictions

OPEN DAY Newspaper Advertising Pros Low cost Broad reach Effective coverage Immediacy Flexibility

OPEN DAY Newspaper Advertising Cons Read or skimmed quickly Usually seen by only one reader per issue Poor reproduction quality Wasted coverage

OPEN DAY Magazine Advertising Pros Long life span Several readers per issue Can target specific audiences Excellent reproduction quality

OPEN DAY Magazine Advertising A focused add…. Cons High cost Long preparation time needed Inflexibility Some wasted coverage

OPEN DAY Radio Advertising Pros Saturate local area Low cost Can target specific markets High message repetition possible Cons Short life span Audio only

OPEN DAY 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 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 Internet Advertising One-on-one guest relationships E-newsletters Online reservations Banner ads

OPEN DAY Thank You!