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Food & Beverage Marketing

The Marketing Plan & Restaurant Survival

Marketing Plan
Any marketing effort should have a plan This plan will act as a road-map for the direction of the business It gives direction to management and staff The contents of the plan may vary depending on the type of operation

Marketing Plan
The 3 stages in development of the plan can be divided as:
1. Formulation 2. Implementation 3. Evaluation

Marketing Plan
1.Formulation (Planning) Decide on product, price, place and promotion Conduct a SWOP and PESTE analysis (environmental scanning)

Marketing Plan
Decide on the budget (leverage/contra deals
(inexpensive = 7,457; mid-priced = 8,250; expensive = 28,609)

Decide on the target market (customer segmentation) Marketing objectives, e.g. - Product awareness
- Increase revenues - Gain market share

Marketing Plan
2. Implementation
The actual allocation of the budget to the different promotional activities youve chosen Promotional activities include: - Advertising - Sales Promotion - Merchandising - Direct Selling - Personal Selling

Marketing Plan
Marketing activities in food & beverage include:
Advertising; Direct Mail; PR/Press Releases; Word-of-mouth marketing; Relationship marketing; Merchandising; Community Sponsorship;

Marketing Plan
Customer Service; Keeping Visitor Records; An Awareness of Local Initiatives; Networking (conferences; memberships of professional associations); Producing a Business Card.

Marketing Plan
3. Evaluation
Evaluation of your marketing effort informs you if you have been successful or not. The results should be compared with the objectives set out in the formulation stage.

Marketing Plan
Evaluation can be divided into 2 categories: 1. Quantitative measurement;

1. Qualitative measurement.

Marketing Plan
Quantitatively: Average occupancy levels; Average spend; RevPas; Turnover/sales (food & wine); Gross/net profit. Qualitatively: Customer comment cards; Employee satisfaction levels; Inspection of plates returning from restaurant; Interaction on restaurant floor.

External Issues
Obesity; Binge Drinking; Shortage of skilled labour; Legislation (minimum wage???); Health & Safety Issues; Consumption Trends; Strength of Foreign Currencies; Inflation/deflation; Growth in awareness of healthy foods (farmers market); Competition Branding; Taxing of service tips????? Recession.

Restaurant Survival???
30% of restaurants go out of business within the first year. 60% have gone out of business by end of year three. Smaller restaurants seem to go out of business quicker???

Why do restaurants fail? - External Factors. - Internal Factors.

Restaurant Failure
Poor Location cluster effect and identifying differentiation within that cluster. No Prior Restaurant Experience understanding the 4 main functional areas is essential to survival: - Marketing; - Financial control; - Operations; - Human Resources (standards).

Restaurant Failure (cont.d)

Lack of Employee Training experiences skilled professional staff can ensure repeat business; Too Much Capital Investment too much borrowed for the size of the business; Inconsistency food; service & cleanliness. Customer erosion is usually as a result of this. Rent is too High rent should not exceed 6-8% of expected gross sales. Lack of Controls controls of all resources. Proper systems regards cash handling, portion control, accounting systems etc.

Restaurant Failure (cont.d)

Poor Price Value the customer perceives lack of value. Under Capitalisation cash flow. Out-dated Concept periodically the dcor needs to be up-dated as well as new menu items to stimulate repeat and new business (business life cycle); No clear business strategy planning, planning, planning!

Survival in Challenging Times

1. Emphasise the Details

- recognise customers when they enter;

- give prompt and courteous service; - use suggestive sells (foot-in-the-door theory); - thank the customer and ask them to return.

Survival in Challenging Times (Cont.d)

2. Be Creative in Reaching Customers
- Offer newspapers/radio stations certificates for your restaurant in exchange for advertising. This will result in paying around 33 cents per Euro of advertising; - Implement menu specials for different seasons and special occasions; - Have sales contests between servers for whoever has the highest check average over a period of time; - Have employees of the month.

Survival in Challenging Times (Cont.d)

3. Maintain High Standards - In difficult times consumers tend to trade down in standard of restaurant so the customer coming may be used to much higher standards, we must endeavor to match what they have become accustomed to!!! By practicing the above points you will have a good chance of maintaining and increasing market share in challenging times.