ABM910 11. Food service marketing (1).pptx

Food Service Marketing

1. ABM-910 Food Retail Management Dr. Muhilan Mahendhiran , Ph.D., PDF Associate Professor Faculty of Agriculture Vivekananda Global University, Jaipur Food servic e marketing

2. Food service marketing What is Marketing ?   It is an organizational function and a set of processes for creating , communication and delivering value to customers. It is managing customer relationships in ways that benefit the organization and its stockholders. A product is a good, service or idea.

3. Food service marketing Important factors of food marketing Food marketing and consumption patterns International comparisons Food outlets Government food programs Food marketing issues

4. Food service marketing Marketing Foodservice Products Service customer is part of the product Intangible goods difficult to evaluate Perishable immediacy of the sale Competition difficult to distinguish due to duplication These are the barriers or challenges to marketing hospitality products. Unlike Nike tennis shoes, hospitability products are often intangible, cannot be inventoried, and is easily copied.

5. Food service marketing Analyzing the Market Place Market Place = location, people, atmosphere of a particular geographic area Research these factors to see if a business can be successful How busy is the location at mealtime ? Is the location convenient and accessible to a large number of people? What products will I offer ? Is there a need for my product ? How much will the space cost ? Is the area growing?

6. Food service marketing Marketing Strategies Plan of action Must be well planned Consider: Location Customer base Competition Trends

7. Food service marketing Location What can I afford? Should I build or renovate? Why did the last owner leave? What are the traffic patterns? Is it easy to access my business?

8. Food service marketing Customer Base Clientele - the people who will be the business’s main customers What type of people do you want to attract? (young, old, business people, health conscious) Market segment – a specific type of clientele Mass marketing – market to all possible segments Target market – market segment that you want to attract Focus on customer base when advertising

9. Food service marketing Competition Will my business have competition? How many competitors will I have? How close in proximity is my competition? How will I be different from the competition?

10. Food service marketing Competitive Environment The competitive environment consists of all the organizations that attempt to serve similar customers. Two types of competitors are of major concern: brand competitors and product competitors. Brand competitors provide the most direct competition, offering the same types of products as competing firms. Product competitors offer different types of products to satisfy the same general need. Domino’s Pizza, McDonald’s and Kentucky Fried Chicken are product competitors.

11. Food service marketing Competitive Marketers will have to pay more attention competitor pricing, new-product development, and changes in corporate strategy. Legal forces have a great part to play in preserving competition and it is important for marketers to interpret these laws when analyzing their marketing mix.

12. Food service marketing Trends Is the location in an established area with other thriving businesses? Will customers have easy access to my business? Is there adequate parking? Are there business nearby that could attract customers to my business? What is the future plan for my location ?

13. Food service marketing Political forces Influence the country’s economic & political stability and decision making. It affects domestic matters, negotiations of trade agreements. Political trends or rather - the government of the day can have a tremendous impact on the hospitality and healthcare industries.

14. Food service marketing Legal forces There are numerous laws designed to protect the consumers and preserve competition. Business executives must watch these developments when planning their product and marketing programs.

15. Food service marketing Marketing Mix Place the location that the product is delivered Product Is it food? Or Service? Or Convenience? Price What is the price in relation to the competition? Promotion signage, mass media, corporate sponsorship, décor, menu design frequent diner, partnering with complementary products

16. Food service marketing Marketing Mix The marketing mix is also known as the four P’s. Each of these P’s play an important role in thinking about how a product can be successfully marketed. The placement on this list is not to imply that one is more important than another on the list. So lets begin with Place. Place is the consideration of where the product wthill come in contact with the customer. It could be a community, a retail shop, a restaurant or on the Internet. The marketing efforts will be shaped by these strengths and weaknesses. Product – in this example the product is more than just the individual menu offerings but it could easitly by more such as a food court. When you think of a food court you think of variety, ease of movement from one station to another, quick, easy service etc.

17. Food service marketing Marketing Mix Price –The challenge is to market and price this product that will either compete directly with or differentiate it from the competition. Promotion – A strategy had to be developed to get the product into the minds of the potential customers. This is done through the promotion. The term promotion is not limited to offering something at a discount. Promotion is all things that are directly or indirectly related to bringing an awareness of your product to the customer. This is done through signage, radio sponsorship of community events or sporting venues, having frequent diner cards and other forms of utilizing the power of mass media.

18. Food service marketing Environmental Analysis S trengths What do they do well? How do they differentiate from competition? W eaknesses Where are the limitations? – location, hours, history, limit exposure O pportunities What can they do to be successful? T hreats Generally these are external; the economy/competition

19. Food service marketing Branding in Food Service Popular Brands on menus - marketing support National Brands franchising fees or agreement to buy product Manufacturers’ Brands product support technical assistance marketing materials

20. Food service marketing Branding A big trend in food service marketing is Branding. More operators are aligning themselves with popular, national brands. These well known brands can provide resources in development and executions of professional looking marketing programs as well as provide customers with sense as to their commitment to quality products that they are familiar with.

21. Thank you