Marketing and Promotions of Food and Beverage

1. marketing of
food and
beverage
Cris Edren dela Peña

2. marketing and sales
“Marketing is the management process responsible for
identifying, anticipating and satisfying customer
requirements”.
Marketing is the process that facilitates an exchange of
goods for money to the mutual satisfaction of both the
producer and the consumer.
The management process that defines anticipates and
supplies customer’s requirements efficiently and
profitably.
British Institute of Marketing
American Marketing Association
Chartered Institute of UK

3. marketing and sales
A SALE is an exchange of goods for money. It is the end
point of the marketing effort.
What is a sale?

4. marketing environment
Marketing Environments are the actors and forces
internal and external to the marketing effort that
impinge on the establishment’s efforts to develop and
maintain successful transaction with its customers.

5. market research
A systematic collection, storage and analysis of
information about the market.
Market Segmentation – is the
identification of subsets of buyers
within a market who share similar
needs and who have similar
buying processes.
Market segments:
• Geographic
• Demographics
• Psychographics

6. marketing plans
“The managerial process of developing a viable fit
between an organization’s objectives, skill and
resources and its changing opportunities, to shape and
re-shape the company’s business and products so that
they yield target profits and growth”.
Philip Kotler
Types of marketing plans:
• Strategic plans
• Long-term plans
• Short-term plans
• Annual plans
• Tactical plans

7. marketing mix
Marketing mix constantly engages in fashioning
creatively a mix of marketing procedures and policies in
an effort to generate a profitable enterprise.
The Five ‘Ps’
• Product
• Price
• Promotion
• Place
• Packaging
Another 3 ‘Ps’ that improves
the marketing effort:
• Process
• Physical Evidence
• People

8. marketing mix
A product has several facets that a customer
consciously and unconsciously evaluates.
product
Core Benefit – is the basic need
of a customer that a product
satisfies.
Physical Features – type of
cuisine, taste, presentation of the
meal.
Intangible Features –the courtesy,
atmosphere, hygiene and food
safety of the restaurant.

9. marketing mix
Product Life Cycle – any product, whether it is a
restaurant, menu or service style has a definite end.
product
Introduction – sales are low
and therefore, profits are low.
Growth – sees improvement in
sales and profitability.
Maturity – stays longer when
sales plateau.
Decline – sales dip and costs
of operations become high

10. marketing mix
Product Positioning - is used by a company to distinguish
its products from those of its competitors in order to give
it a competitive advantage within a market.
product
Criteria for positioning:
• Benefits or needs of the
customer is satisfied
• Specific features of the
products and services
• Customer usage occasions
• Customer categories to
include demographic factors
• Positioning in relation to other
competitors.

11. marketing mix
Product Positioning - is achieved through product
differentiation.
product
Strategies for differentiation:
• Branding
• Quality
• Pricing
• Defining customer needs
• Identity

12. marketing mix
Is a crucial component of marketing as it directly relates
to profits and profitability. It should cover direct costs,
contribute to overheads and leave a reasonable profit
margin to the investor.
pricing
Strategy:
An owner may set his pricing
strategy according to the type
of restaurant, its location and
market segment he wishes to
serve.

13. marketing mix
Is a mix of communication concerned with informing the
market about the establishment’s products, services
and persuading to buy them.
promotion
Types of Promotion:
• Advertising
• Merchandising
• Personal Selling
• Sales promotion
• Publicity
• Public Relations

14. marketing mix
The belief was that if the establishment was positioned
close to the segment it served, business was
automatically going to take place.
place

15. marketing mix
Packaging as a marketing tool has played a great role
in traditional consumer goods and industrial products.
packaging
• Wines and spirits are packaged
in attractive cartons ensuring in
the internal packaging that they
are safe from breakage in transit.

16. marketing mix
packaging
• In a broader sense, the
décor of a hotel or
restaurant, the uniforms the
staff wear and the food
presented on a plate or dish
are extension of the
packaging concept.

17. food
promotions

18. food promotions
Are activities that revolve around a central food theme.
Objectives of promotions:
1. To increase sales in low periods
2. To give regular guests
something different
3. To attract new customers
4. To establish that the property is
exciting always.
5. To break the routine of existing
staff.

19. food promotions
Objectives of promotions:
6. To do a public relations exercise
7. To create publicity for the
property.
8. To introduce new menu.
9. To re-introduce the property after
renovation.
10. To celebrate special occasions
like the national day, festivals, etc.
11. To clear slow moving stock of
lobsters that are not moving, by
offering “Specials of the Day”.

20. food promotions
Three types of promotions:
1. Internally controlled promotions
2. Promotions tied with another
hospitality partner
3. Full destination promotions
A food promotion has no special rules. When profit is
always the motive, some food promotions may be
public relations exercises.

21. Internally controlled promotions
1. Daily Specials – a chef’s signature
preparation for the day to create
variety and to move slow moving
stocks.
2. Happy Hour – to boost sales at low
periods of the day used especially by
bars during 3pm to 6pm when there
are usually no sales.
Are planned and executed solely by the hotel. The
promotion is done with existing resources.

22. Internally controlled promotions
3. Weekly Ladies Night – a night for
ladies only. The would have special
presentations of interest to women.
4. Singles Night Out – is another special
night for the unattached. In western
societies they are very popular for
the unmarried to meet future mates.
5. Dance Competitions – restaurants
can make good sales with a niche
market interested in dancing.

23. Internally controlled promotions
6. Fancy dress party – restaurants are
able to boost their sales especially if
they are targeting a children’s
market.
7. Halloween Night – restaurants that
want to promote their property for
the children’s market may find this a
useful occasion to market their
wares.

24. Internally controlled promotions
8. Special Occasions – like Valentine’s
Day for the romantic or religious
holidays like Diwali, or Easter
weekend.
9. Sports Matches – popular to sports
lovers. Bars specially set-up huge
screens to televise a big game while
making brisk sales in liquor.

25. Promotions with other travel partners
These promotions are done on a larger scale, involving
products, services and investment by partners.
Examples of such promotions:
• Oktoberfest
• Greek Food Festival
• Indian Food Festival
• Madrid Fusion

26. Full destination promotions
A whole city or state gets involved to promote a
destination.

27. Benefits of Promotions
1. It generates word-of-mouth
publicity.
2. It increases customer awareness
in other market segments.
3. It helps the property in being
seen in a more positive light.
4. It improves the morale of staff,
which gets bored with daily
routine.
5. It is conducted at a relatively low
cost if other partners are co-
opted into the promotion.
6. It solves many problems at once.