Best Practices In Food And Beverage Marketing Essay

Best Practices In Food And Beverage Marketing EssayThe Food Beverage segment at hotels has evolved signifi crouptly over the past decades. Various studies and marketing techniques were employed to the department in clubhouse to improve the operations such as developing menu items or creating unique offers (Miller). A PKF consulting compendium of 214 hotels during the time-frame of 1994 to 2004, displayed an percentage growth in FB profit which increased almost twice as fast as the total net operating income growth (Miller). It has been proven that while hotels had improved their FB outlets and increased their emphasis to the timberland of dining, they quickly became unprofitable considering the time and expertise needed for their management (Shoemaker, Lewis and Yesawich).In beau monde to cut-down costs and run into significant revenue, companies in the hospitality effort prioritized look-establish pock strategies, to their specific target group in order to acquire corpora te identity and quality table service (Morgan, Pritchard and Pride). Distinguishing their strike off image and differentiation of their harvest became of native importance for all hospitality tights (hotels, restaurants etc). In the recent years, many international hotel firms have turned to a major branding strategy called co-branding. In this pattern an existing restaurant is incorporated within a hotel, a practice considered to have been started by Victor Bergen during the 1930s, establishing fast food outlets in hotels on the road which had a guest base of American families travelling away from home.The incorporation of this model to the modern hotel industry has been observed to change dramatically two consumer attitude and hotel management (Rutherford). This review plans to analyze the current plant of strategic co-branding in the hospitality sector and how the tourism industry could be benefited. Further much, possible problems ar discussed and recommendations to p otence managers wanting to employ strategic co-branding techniques are given.2. Co-branding definitionWhile co-branding doesnt have a single definition, it generally involves the strategic attachment of at least ii firms (Knowles, Diamantis and El-Mourhabi). It has also been described as a system of cooperation between two or more brands with significant customer recognition, in which all the participants brand names are retained (Blackett, Boad and Interbrand). Furthermore, Hilyer (Hillyer and Tikoo) explains the definition of co-brading when a product features more than one brand name.Among all these definitions, whatsoever common characteristics can be identified. The fundamental part in co-branding is the requirement of two or more brands that are widely prize while the brand name is kept intact and the duration of the square project varies between medium to yearn (Kippenberger). Therefore, co-branding can be interpreted into reality in two manners either joining two br and names together in forming a spick-and-span or unique product or having two recognised brands under the same space, such as T.G.I Fridays within Holiday society hotel (Hahm and Khan).3. Notable examples of Co-brandingBased on the model used in the ahead of time 1930s, with Bergens restaurants and hotels, the hotel industry began to employ co-branding strategies when it was faced with unprofitable sales. Today a large variety of hotels and restaurants use co-branding as a means of enhancing distribution of products or services together with increasing the range of their customer base, component part them to reach maximum profitability (Boone). Marriot Hotels is considered on of the pioneers of the chain hotels to be the first to implement an internationally recognised brand such as pizza pie Hut in 1989 (Boone Kippenberger). Following their example, the co-branding of TGI Fridays within Holiday hostel hotels turned out to be a financial success. After the conversion of the Pennsylvania Holiday Inn restaurant to TGI Fridays, the increase from $450,000 to $4 million within the first year only marked a rapid improvement in revenue which persisted for consecutive years (Hahm and Khan). After reviewing the benefits, the company expanded its co operations with other franchise such as Red Lobster, Pizzeria Uno, Good Eats wirework and many more (Boone). Other examples include the co-branding of Sheraton hotels with Starbucks coffee and Vie de France baked goods, Hilton with Benihana, Calrson Country Inn with Pizza Hut, The Garden Place and Nestle Toll House Caf among others.4. The Co-branding mechanismThe concepts of branding and co-branding involve basic principles associated with stimuli and responses, called unstained conditioning. Combining the signal from a stimulus with a neutral effect (such as the word lemon) with a stimulus that elicits a natural response from a person (such as the image and taste of the lemon), the person gives a similar response when the neutral stimulus is presented without the need of the natural one.The same principle applies to branding and co-branding the product is associated with a brand name and after successive associations either from personal experience or advertising, a favourable reaction towards the brand name or image is created. Specifically in co-branding, the conclave of a neutral stimulus (like a brand image of one company) is coupled to another brand image which people have developed a liking towards it, the new product or service created by the combination of the previous ones is made equally amiable to the consumer. This manages to enhance the psychological impact of a newly formed product without the need of further branding.5. Impact of Co-brandingThe implementation of co-branding techniques has been acknowledged to have controlling and negative impacts on the companys process.Studies have shown that several advantages that can be categorized in financial, managerial, marketing an d customer royalty. Creating a powerful head image for customers is critical in enhancing the competitive advantage of a firm and distinguishes its quality from others in the marketplace, making it easier to recognise through co-branding strategies (Panda and Kumar). Also, the costs of operations, production and investment can be shared and the risk of competition in the market can be diminished, creating an short term financial advantage to other firms (Boone). Also, when two well-established brands co-brand, a sense of security and loyalty is created to the customer, such as in the example of a hotel co-branded with Pizza Hut will expect that loyal customers will stay in hotels with known brands when travelling. Lastly, the co-branding of restaurants to hotels provides a constant flow of loyal customers from the hotel setting, which can also work vice-versa (Boone).Despite the advantages, co-branding strategies are not the solution to all problems and cannot guarantee market succe ss (Panda and Kumar Joseph Arthur Hillyer and Tikoo). Incorrect use and lack of semiconducting research is able to affect business negatively. For example, if a clear image is not created by the alliance of brands, it can create confusion to the consumers (Joseph Arthur) while a loss of control of a brands identity can reduce their affinity to the original brand (Keller). Possible problems for restaurant managers can be either expressage investment by their hotels or lack of expertise and experience on the hotel restaurant concept.6. Strategic Applications of Co-branding in International hotels and restaurantsThe main four applications of co-branding are called reaching in, reaching out, reaching up and reaching beyond. The weft of the strategy is based on the nature of the target market (if its newly formed or existing) and if both brands are absolutely necessary for product functioning. Reaching out is more commonly used if the co-brand has benefits for the product itself by en tering a new market while if the co-brand can also contribute to the companys brand image then reaching beyond is implemented. Lastly, reaching in is implemented if the company wants to enhance the products message benefits.However, the brand image of a product in the long term can become very similar to others (panda) therefore maintenance of the brand is necessary. Strategic brand management is able to aim long term value and brand image maintenance in three different waysDifferentiating the brands nature from others in the marketplaceEvaluating continuously the brands strategic position in the marketplaceBranding based on the emphasis in the distinct qualities of the product/serviceImplementing information technology as well as network marketing can also be helpful in managing co-branding. Via searching in internet databases, the target groups of each product or service can be directly targeted and informed intimately novel opportunities or offers, without the need of time-co nsuming and expensive research. Additionally, targeted promotions can monitor the needs of customers and adjust the products promoted whence (Oliva).7. SuggestionsIn order to efficiently use co-branding, the respected hotels and restaurants must(prenominal) employ several different strategies to pull off the emerging challenges. Hotel managers should firstly invest on the brand image and identity, while joining restaurant co-branding partners in strategic decision making processes about important issues and training programs. On the other hand, restaurant managers (Boone) must synchronize their operations and branding with the hotels standards, carefully choose a hotel that could potentially match the brand concept of the restaurant and offer various benefits and discounts to hotel residents in order to support customer loyalty to the brand (Lee and Decker).8. refinementIn retrospect, co-branding is a practise that can be successfully implemented for effective marketing in FB es tablishments of the hotel and result in elevated profit and diminished costs. However, due to the competitiveness in the current market and the continuous emergence of new strategies, the effectiveness of co-branding has greatly been challenged. Implementing novel technologies and adjusting the products or services on offers based on consumer needs, may be deemed sufficient to bypass any emerging challenges. Additionally, more empirical research in the hotel restaurant management is required. Future studies could analyse the attitude of international customers to co-branding as well as measuring brand equity between hotels and restaurants in need of co-branding.