THE VISION OF THE ROMANIAN MARKETING MANAGERS FROM

FOODSERVICES INDUSTRY CONCERNING THE APLLICATION OF

THE RELATIONSHIP MARKETING TECHNIQUES

PhD. Adriana OLARU

University „DUNAREA DE JOS” Galati, ROMANIA

str. N. Balcescu, 59-61, Galati

+40721569995

adrianaolaru2003@yahoo.com

PhD. Olga UNGUREANU

str. N. Balcescu, 59-61, Galati

+40236460467

PhD. Student Alexandru CAPATINA

str. N. Balcescu, 59-61, Galati

+40723636396

acapatana@ugal.ro
 Abstract

The fast development of the foodservices industry, the globalization and the aggressive

competition requires the mobilization of the marketing budgets of the organizations involved in

this domain on relationship marketing campaigns which are focused both on the acquisition of

new customers and on the loyalty programs.

The main goal of our research is to determine the most efficient techniques of relationship

marketing that can be applied to the organizations involved in foodservices industry. The tool

used within the survey is represented by a questionnaire sent to a sample of 50 marketing

managers of notorious organizations from Romania's foodservices industry.

The research objectives are focused on the analysis of relationship marketing strategies

applied by the organizations from this activity domain and the determination of strategic options

applied for each type of menu items (star, plowhorse, puzzle and dog) by the marketing managers

of these organizations.

The research results emphasize the fact the marketing managers of the foodservices

industry organizations are oriented towards the business development centered on profitable

customers and the adaptation to the market requirements. The acquisition of new customers

represents the main concern of the marketing managers which participate to our survey, even if

the defensive strategy focused on loyal customers involves less marketing budgets then an

offensive strategy based on new customers. The strategies adopted by these marketing managers

concerning the four types of menu's items based on the model of Kasavana&Smith put in

evidence the knowledge of relationship marketing principles applied in this industry.

1. Considerations concerning the methodology used in the research

 In the recent conditions of the global market more and more competitive, the companies

can’t survive than by the efficient marketing activities. The modern company acts in a dynamic

environment which imposes frequently problems of adaptation. Therefore, the marketing

managers of the organizations must have a prospective vision, imposed both by its internal

conditions (technical, organizational, etc) and by those external (the instability of the supply

sources, the modification of the technologies etc).

The main task of a marketing specialist is to influence by his methods and techniques the

level, the period of the manifestation and the demand structure for a certain product or service.

In this context, our research has followed five major objectives, each of them being then

specified by secondary objectives associated concerning:

• the pursuit of the application level of the marketing planning as part of the foodservices

industry analysed;

• the components of the marketing strategies analysed by the investigated organizations;

• the analysis of the manner in which are led the resources as part of the marketing budgets

of the foodservices industry;

• the analysis of the strategic options applied for each type of menu item (star, plowhorse,

puzzle and dog);

• the indicators’ system used as a part of the performance control management.

As a research tool, it was used a questionnaire which reveals both aspects concerning the

type of the marketing strategic orientation adopted by the Romanian foodservices industry and

different aspects concerning the implications of the strategic analysis of the menu items portfolio

for the profitability of these organizations.

 For the research sample there were selected 40 units from the foodservices industry with a

high level of notoriety, and the marketing managers accepted to answer the questions from the

questionnaire, confirming by their answers the business strategy orientation adopted by the

organizations they manage to a total satisfaction of the customers’ needs and preferences.

2. The analysis and the interpretation of the results

The first major objective was to establish the fundamental principles which could assure

the performance achievement in the marketing management field in the foodservices industry.

These principles allow to the companies to define exactly the target of the planning application of

the marketing activities and to create adequate offers depending on the customers’ demands.

The highest weight of the answers in this case is held by the exigency towards the quality

of the services and of the culinary dishes which leads to the customers’ acquisition and loyalty

(37%), then the innovating activities in the field of culinary dishes and of the customers’ service

(20%) and the concentration of the employees’ efforts from the Front-Office and Back-Office in

order to deliver irreproachable services to the customers (17%). A more reduced weight is held

by the aspects connected to the adaptability to the changes of the customers’ culinary preferences

(14%) and the competent cooks and waiters’ attraction (12%). (figure no. 1)

The organizations performances from the foodservices industry are conditioned by the

way in which their marketing managers succeed to transpose the marketing planning objectives in

the results appreciated by the customers, the only stakeholders able to generate a high

profitability on long term.

 12%
14% 37%

17%
20%

the exigency towards the quality of the services and of the culinary dishes
which leads to the customers’ acquisition and loyalty
the innovating activities in the field of culinary dishes and of the customers’
service
the concentration of the employees’ efforts from the Front-Office and Back-
Office in order to deliver irreproachable services to the customers
the adaptability to the changes of the customers’ culinary preferences

the competent cooks and waiters’ attraction

Figure no. 1 – The principles considered fundamental by the marketing managers of the

foodservices industry in order to achieve the performance goals

Concerning the strengths of the foodservices industry in the field of relationship

marketing, we appreciate the fact that the marketing managers are setting in priority the

orientation towards a business expansion centred upon the profitable customers (31%), followed

by the application of certain training programmes meant for the employees implied in the

customer care processes who wish to form a proactive attitude towards the customers (29%) and

a constant participation of the cooks at the international exhibitions in order to get used to the

newest trends in this field (21%) (figure no. 2)

These answers show both a professional approach of the external marketing (the efficient

management of the customer relationships) and of the internal marketing, which refers to the

acquisition and the loyalty of the employees.

 7%
12% 31%

21%

29%
the orientation towards a business expansion centred upon the profitable customers

the application of certain training programmes meant for the employees implied in the
customer care processes who wish to form a proactive attitude towards the customers
the constant participation of the cooks at the international exhibitions in order to get
used to the newest trends in this field
the existence of a marketing information system intended to manage the relationship
marketing activities
the use of original recipes in order to realize culinary dishes

Figure no. 2 – Determination of the strengths weight of the foodservices industry in the

relationship marketing field

The use on a limited scale of the information systems meant to the marketing

management activities in the foodservices industry (only 12%), could be considered a weakness,

in the conditions in which the number the software available for this sector is in a continuous

increase.

The classification of the strengths that assures the competitive advantage in this sector in

which acts the companies from foodservices industry, emphasizes the arrangement on the first

position of the report quality-price appreciated by the customers (32%), followed by the high

level of customers’ loyalty (24%), the high motivation level of the employees (22%) and the

innovative capacity (22%) (figure no. 3) The fact that the percentage differences are very reduced

shows that the marketing managers of the companies included in the research sample allocate

these distributions approximately equal to the financial resources in order to implement

successfully these strengths which in our opinion are mutually conditioning.

 22%
32%

22%
24%

quality-price report appreciated by the customers

the high level of customers’ loyalty
the high motivation level of the employees
innovative capacity

Figure no. 3 – The classification of the strengths which assure competitive advantages to the

companies acting in the foodservices industry

By analysing the marketing managers’ opinion of these units concerning the major

advantage of the marketing planning, we noticed that the general vision of the market and the

efficient resources allocation is situated on the first position (36%). It is followed by the vision on

the long term of the marketing policies (24%), by the response capacity at the needs and desires

of some market targets well defined (21%) and by the application of some obvious criteria in

order to evaluate the market targets and the offers positioning. (figure no. 4)

The minimization of the risks associated to some modifications in the menus structure,

determined by the changes of the customers’ preferences wasn’t considered as a main advantage

of the marketing planning by any manager interviewed; though, in our opinion, the adaptation

capacity at the customers’ demands in a continuous change involves to revise the way of the

menu organisation, which represents in this context the interface between the company and the

customer.
 19%
36%

21%

24%

market ensemble vision and the efficient resources allocation in order to

achieve the marketing objectives
the vision on the long term of the marketing policies

the response capacity at the needs and desires of some market targets well
defined, presenting a potential development and a high profit on long term
obvious criteria application in order to evaluate the market targets and the
offers positioning

Figure no. 4 – Identification of the main advantages of the marketing planning in the vision

of the foodservices industry managers

In order to realize and to implement the marketing planning in the foodservices industry

intervene some barriers, as for example: confusions between the marketing strategies and the

marketing tactics, between the marketing function and the marketing concept, between the

marketing planning process and its result, impediments generated by the lack of implementation

of some organisational cultures oriented towards the customer.

The orientation of the marketing managers is based first of all on the receptivity towards

the market demands (31%), followed by the competitive advantage which these companies own

by a good placing of the customers service locations (25%), the adaptation capacity of the

marketing activities at the market dynamic (24%) and the unitary vision to the marketing mix

policies that assures the fair positioning of the offers in the customers’ mind (20%). (figure no. 5)
 20%
31%

24%
25%

the receptivity towards the markets demands

the competitive advantage which these companies own by a good placing of the
customers service locations
the adaptation capacity of the marketing activities at the market dynamic

the unitary vision to the marketing mix policies that assures the fair positioning
of the offers in the customers’ mind

Figure no. 5 – Marketing managers orientation in the foodservices industry

These answers prove that the marketing managers’ preoccupation is to monitor

permanently the business environment in order to react promptly at the changes which appear in

the needs of target consumers that could become loyal customers.

The answers received concerning the identification of the prior objectives in the frame of

the marketing strategies of the foodservices industry reveal that the acquisition of the new

customers represents the main preoccupation of the marketing mangers (30%), even if the costs

in this case are significantly bigger than in the case of the customers’ loyalty programs by some

special menus and price offers (26%). The decision of financial resources concentration on the

profitable customers’ targets (24%) is wholly justified from the financial point of view, but it

appears the risk to lose some customers’ targets that could become profitable, using personalized

relationship marketing strategies. The anticipation of the customers’ needs by permanently

changing the menu offers and by the launch of some original recipes has a percentage of only

20%; in our opinion, it represents the success key in the offer’ differentiation strategy towards the

competition (figure no. 6)

 20%
30%

24%
26%

acquisition of a great number of custemers by promotional offers

implementation of customers' loyalty programs by the means of special menus

and price offers
allocation of the biggest weight from the marketing budget to the most profitable
customers' targets
anticipation of the customers’ needs by permanently changing the menu offers
and by the launch of some original recipes

Figure no. 6 – Prior objectives followed in the marketing strategies implemented

in the foodservices industry

The biggest weight in the customers’ portfolio owned by the foodservices companies is

held by the loyal customers (52%), followed by the relationship searchers (24%) which

discovering the services and the culinary dishes of these units become loyal customers if their

expectations are satisfied; another category is represented by the occasional customers (14%); the

relationship profiteers impose a special attention, because they are predisposed to migrate easily

towards the competitors when the first opportunity appears on the market. (figure no. 7)

10%
14% loyal customers
relationship searchers
52% occasional customers
relationship profiteers
24%

Figure no. 7 – Customers’ portfolio structure of the foodservices industry

 The “customer centric” approach is a new business model adapted in the foodservices

industry. After a long transition period, on the background of an economical straightening

beginning and under the external competitive pressure, which become much more merciless

together with the adhesion at the European Union, the Romanian foodservices industry is obliged

to focus on the customer and not on the product.

Concerning the typology of the launched offers in a frequent way by the foodservices

industry, we notice a high weight associated with the offers that can generate new customers

needs categories (34%), followed by the special offers for the loyal customers’ reward (30%),

offers which aim at the prevention of the customers churn (21%) and the offers intended to

sustain the additional sales (15%). (figure no. 8)

15%
34%

21%

30%

offers generating new customers needs categories

special offers for the loyal customers’ reward
offers which aim at the prevention of the customers churn
offers aiming at the additional sales support

Figure no. 8 – Offers typology launched frequently by the foodservices industry

The strategic analysis of the existent products portfolio in the menus of these units, by the

popularity index and profitability point of view shows the following distribution: STAR (37%),

PUZZLE (29%), PLOWHORSE (21%) and DOGS (13%). (figure no. 9)

 13%
37% STAR
21%
PUZZLE
PLOWHORSE
DOGS
29%

Figure no. 9 - Strategic analysis of the existent products portfolio in the analysed

foodservices industry units’ menus

From the strategic options specific to the menu items type STAR, the marketing managers

from the Romanian foodservices industry prefer to emphasize these products by their inclusion in

the promotional campaigns (45%), by the maintenance of the actual standards (22%), by the

investments in mass media in order to promote these products (19%) and by the test of the price

increase strategy towards the customers’ behaviour (14%).

The strategic options applied for the PUZZLE items reveal the setting on the first position

the low prices test in the purpose to relaunch them (39%). It was given a special attention to the

setting strategy of these products in the menu top page in order to increase their notoriety level

(36%). The promotion of these products by aggressive marketing campaigns and the limitation of

their number in the menu represent 17% and respectively 8% thinking that their contribution is

more reduced for the success of these products.

The analysis of PLOWHORSE items showed the following classification of the strategic

options which are applied by the marketing managers for these products: the cost cut by the

diminution of the portions served to the customers (33%), the allocation of a promotion budget

more reduced for this product category (30%), the limitation of the product number from this
menu category (19%) and the test of the customers’ reaction at the sensible reduction at the

employed prices (18%). We think that the price diminution by the portions reduction is a

dangerous strategy, because the customers could notice this thing, fact that can determine them to

go to the competitors’ offers.

From the price strategies implemented in creating the menus, the principle of the scale

opening is situated on the first position according to the managers’ opinions of the foodservices

industry investigated (34%), followed by the principle of the price dispersion, which supposes to

determine the item prices from an inner scale in comparison with the external prices from the

menu (29%), the demand and offer principle measures the correlation between the average price

asked by the customers and the average price offered by the firm (20%) and the principle of the

special price offers is chosen by 17% of the marketing managers. (figure no. 10)

17%
34%

20%

29%

the principle of the scale opening

the principle of the prices dispersion
the principle of demand-offer report
the principle of the special price offers

Figure no. 10 – The typology of the price strategies applied to the menu engineering

DOGS menu items represent a true challenge for the marketing managers, who could

relaunch the sales and their profitability by the following strategic options: the creation of a

partnership with a catering firm which could impulse their consumption (22%), the diminution of
the sales prices (17%), the increase of the profit margin by the price reduction (14%). The most

part of the received answers (47%) emphasizes the elimination strategy of these products from

the menus, fact which we consider to be convenient from the profitability principles point of

view, which deserve a chance by testing a resetting strategy.

Our opinion is that the price, as a marketing tool, could represent a decisive factor of a

company competitivity from the field of foodservices industry in the conditions in which it is

associated to a qualitative level perceived as being adequate at the target customers’ group.

The acquisition rate of the new customers has occupied the first position in the

classification associated to the indicators used for the performance control management applied

to the relationship marketing strategies of the foodservices industry (37%), while the loyalty rate

of the customers was placed on the second position (31%).

The transforming index of the PUZZLE or PLOWHORSE menu items in STAR products

represents 18%, while the number of the customers’ claims towards the service staff is 14%.

(figure no. 11)

14%
37%
18%

31%

new customers acquistion rate

customers loyalty rate

the transforming index of the PUZZLE or PLOWHORSE menu items in STAR

products
the number of the customers’ claims towards the service staff

Figure no. 11 – Indicators system used in the performance control management

in the foodservices industry

 Conclusions

General conclusions that result from our research show that the Romanian final transition

period coincided with the passing from the production maximization orientation to a business

philosophy centred on the customer, the application on the foodservices industry of some

relationship marketing strategies focused more on the acquisition of new customers and less on

loyalty programs, the concentration of the marketing managers efforts to anticipate the

customers’ preferences and to create new needs categories and to elaborate periodically new

reward strategies for the loyal customers which aim at the diminution of the churn rate to the

competitors.

References:

1. Arduser L. (2001) – „Restaurant Site Location: Finding, Negotiating & Securing the

Best Food Service Site for Maximum Profit”, Mc Graw Hill, New York

2. Lundberg D. (1995) – „The Restaurant: From Concept to Operation”, John Willey and

Sons Inc., New York

3. Mc Vety P., Bradley W. (2001) – „Fundamentals of Menu Planning”, Restaurant

Engineering Collection, Chicago

4. Reid R., Bojanic D. (2004) – „Hospitality Marketing Management”, John Wiley &Sons,

New York

5. Seaberg A. (2001) – „Menu Design: Merchandising and Marketing”, Amacom Edition ,

New York
6. Zollinger M. (2003) – „Marketing et stratégie du restaurant”, Editions Dunod, Paris