1. OPEN DAY www.lrjj.cn Chapter 4 Food and Beverage Marketing & A Feasibility Study FMB 3196

2. OPEN DAY www.lrjj.cn 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.

3. OPEN DAY www.lrjj.cn 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.

4. OPEN DAY www.lrjj.cn The Business Case The objective of a Feasibility Study Why How Where & What

5. OPEN DAY www.lrjj.cn 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.

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

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

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

9. OPEN DAY www.lrjj.cn Changing concepts..

10. OPEN DAY www.lrjj.cn 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…

11. OPEN DAY www.lrjj.cn Analyzing the Competition Location Type of establishment Times of operation Menu prices Check average Type of service

12. OPEN DAY www.lrjj.cn Analyzing the Market Guest Profile Research Age Gender Frequency of visits to the property Employment

13. OPEN DAY www.lrjj.cn 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

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

15. OPEN DAY www.lrjj.cn Special Promotions Couponing Product sampling Contests Packages Premiums Gift certificates Discounting Bonus offers Frequent diner programs

16. OPEN DAY www.lrjj.cn Billboard - Outdoors

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

18. OPEN DAY www.lrjj.cn Newspaper Advertising Pros Low cost Broad reach Effective coverage Immediacy Flexibility

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

20. OPEN DAY www.lrjj.cn Magazine Advertising Pros Long life span Several readers per issue Can target specific audiences Excellent reproduction quality

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

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

23. OPEN DAY www.lrjj.cn Television Advertising Pros Appealing presentation of sight and sound Viewers retain message Extensive coverage Target markets Cons High cost Long preparation time Wasted coverage

24. OPEN DAY www.lrjj.cn 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….

25. OPEN DAY www.lrjj.cn Internet Advertising One-on-one guest relationships E-newsletters Online reservations Banner ads

26. OPEN DAY www.lrjj.cn Thank You!