The Theory of Hospitality and Catering Dynamic Learning published by Hodder Education © 2011 D Foskett and P Paskins Marketing

The Theory of Hospitality and Catering Dynamic Learning published by Hodder Education © 2011 D Foskett and P Paskins Introduction Operating a successful business in today’s competitive environment means that an establishment has to gain an advantage over its competitors. Any hospitality establishment has to carefully predict customers’ wants, needs and desires, and translate these into a product that people will want to purchase.

The Theory of Hospitality and Catering Dynamic Learning published by Hodder Education © 2011 D Foskett and P Paskins SWOT analysis Market research relies on a systematic approaches. A SWOT analysis is a well known method. SWOT stands for Strengths Weaknesses Opportunities Threats When a SWOT analysis is carried out the 7 ‘Ps’ need to be considered:

The Theory of Hospitality and Catering Dynamic Learning published by Hodder Education © 2011 D Foskett and P Paskins 7 ‘Ps’ Product Process Place Physical environment Price Promotion People

The Theory of Hospitality and Catering Dynamic Learning published by Hodder Education © 2011 D Foskett and P Paskins Strengths and weaknesses Examples of Strengths Good reputation Good location Attractive environment Comfortable restaurant Examples of Weaknesses Declining market Lack of staff training Lack of investment Transport difficulties – lack of parking spaces

The Theory of Hospitality and Catering Dynamic Learning published by Hodder Education © 2011 D Foskett and P Paskins Opportunities and threats Examples of Opportunities People with high disposable incomes Attractive area Good transport links Little competition in area Examples of Threats Out of date equipment Competition Legislation Decline in demand for product