Advertising of high end restaurants

Restaurant Industry: - The restaurant industry has been facing extremely tough challenges due to the ongoing economic
turmoil. With a weak labour market, lower discretionary spending and continued credit-market access issues, it may be too early to predict any
improvement in the restaurant industry, which is grappling with sluggish consumer demand.

Although current economic indicators show some signs of improvement, we believe that the weak labour market will continue to adversely impact
the restaurant industry, even several months after the recovery is on track. The downturn has shattered consumer confidence, and it will take time
before most people resume their former dining-out habits.

Restaurants are trying all means to lure cash-conscious guests. With consumers reluctant to shell out more -- preferring to dine at home or
spending less per meal -- eateries are tweaking entrees, revamping promotions and focusing on value-for-meal menus.

The U.S. restaurant industry, which constitutes the fast food, casual dining and upscale chains, is facing its toughest stretch in three decades. A
report by market research firm NPD Group asserted that recovery in the restaurant industry will not take place before the second half of 2010,
although the firm believes that the rate of decline in traffic and sales will start to decelerate in the first half of 2010, and some improvement may
be registered by the third quarter. U.S. restaurant guest traffic dropped 4% for the quarter ended Sept. 30, 2009.

A recent survey by the National Restaurant Association revealed that the Restaurant Performance Index, measuring the health and outlook for
the U.S. restaurant industry, showed some improvement in October (up 0.5% from September to 98.0), after posting a decline in the month of
September (down 0.4% from August to 97.5), sending mixed signals to the restaurant industry. The index has remained below 100 for 24
consecutive months, indicating that the restaurant industry is scaling back its development plans.

The Current Situation Index, which measures comparable store sales, traffic counts, labour costs and capital expenditures in the restaurant
industry, climbed 0.4% to 96.5. Approximately 61% of restaurant industry operators reported same-store sales decline in October, down from 65%
reported in September. Moreover, 60% of the operators reported a traffic decline in October compared to 62% reported in September.

Although softness prevailed in sales and traffic in the restaurant industry, a slight uptick was noticed in capital spending activity in October.

The Expectations Index, which measures restaurant operators’ outlook on comparable sales, employees, capital expenditures and business
environment, rose 0.6% to 99.6. Approximately 29% of the restaurant operators (up from 25% in September) now expect to have higher sales in 6
months compared to the same period in the last year, matching the percentage of restaurant operators who expect lower sales in 6 months.

In the midst of what is expected to be a tepid recovery, there are three potential drivers of net income growth for the restaurant industry: unit
expansion, improved same-store sales and cost cuts.

There seems little chance that any upside will come from more aggressive unit expansion, as most of the companies have either scaled back or
postponed further unit development. BJ’s Restaurants Inc. (BJRI - Analyst Report) plans to grow the unit base by 12% in fiscal year 2009, much
lower than 21% achieved in fiscal year 2008. Darden Restaurants Inc. (DRI - Analyst Report) expects to open 50 to 55 net new restaurants in
fiscal year 2010, drastically down from 71 restaurants opened in the last fiscal year.

The second driver, same-store sales, consists of menu price increases and traffic counts. Any price increases other than minimal ones would
drive away value-conscious customers in this fiercely competitive environment. Moreover, to enhance the perception of value and to drive traffic,
companies are remodeling restaurants to give them an up-market feel, and are rolling out new, smaller prototype restaurants that reduce
construction and occupancy costs to boost returns on capital.

Finally, some of the cost cuts have been achieved through integrated information systems including point-of-sale, automated kitchen display,
labour-scheduling and theoretical food cost systems. Restaurant companies try to optimize their operations and achieve decent operating cash
flow margins. Since the last five years, Darden has kept its restaurant operating cash flow margins stable at 22%−23% despite the current
economic headwinds.
Restaurant Industry in India: - The main reason why processed food is luring the urban Indians is the convenience that it offers to
cooking, as they don't need to spend hours in kitchen to get that appetizing food. Growth in working women's population and prevalence of
nuclear families with double income are other trends causing this change in the lifestyle of Indians. 

Also, increase in overseas travel and the presence of foreign media in the country has resulted in more Indians opting for processed food. For
instance, in 2005, above 5Million Indians had traveled abroad and the number is likely to rise by 15% to 20% every year.

These trends have largely impacted the Indian Restaurant Industry , as there's been a jump in the demand for food. Amount of money spent by
Indian on foods outside home has been assessed to have more than doubled over the last ten years to nearly $10Billion a year. Also, it's likely to
double in the five years to come. These trends entail significant growth potential for the restaurant industry in future and, as a result, add to the
attractiveness of investment in this sector.

The diverse culinary habits, wide range of cuisines and the diverse cooking techniques are some of the main factors behind the growth of
restaurants in India. With the market liberalization policies undertaken by the government, India has also become a consumer market with a huge
customer base. This has provided a fillip to the restaurant industry in the country. With the high standard of living and the change in the lifestyle of
the people, more and more consumers are also flocking various restaurants. Recent surveys have shown that there has been a growing trend
among the Indians to taste various types of gastronomical delights. This has also led to the growth of restaurants which serve regional and
international delicacies. 

The growth of the tourism industry has also been a positive factor behind the growth of restaurants in India. With more and more domestic and
foreign tourists going to the popular tourist destination, it has been a boon for the restaurants. According to recent surveys, India has become one
the top five destinations among the 167 popular tourist destinations. With more and more foreign tourists coming in, the restaurant industry is
expected to grow at a rapid pace and more categories of eating outlets will come up. 

According to recent surveys, the rate of growth of the restaurant industry in India is expected to be around 4.5 % on an average. A significant
number of the workforce in the country is also engaged in the restaurant industry. According to recent surveys, by the end of the year 2012, the
overall restaurant industry in the world will employ around 13.3 million people, of which India will have a significant share. However, the main
challenge is to enhance the market growth of the industry. Today, the Indian restaurant industry is mainly based in the urban areas the tourist
destinations. Efforts need to be made to increase the market in the rural areas as well. There are restaurants in the rural areas but most of them
fall under the unorganized sector. A systematic approach is required to increase the target audience in the rural sector. 

With the open market and liberalization policies, more and more international restaurant chains are also opening their branches in various cities of
the country. This has increased the rate of foreign investments in the country having a favorable effect on the overall economy of the country. The
foreign restaurants are setting up bases to cater to the vast consumer market in the country. 

The growth of the restaurants in India has directly led to the growth of fast food eating outlets in the country. The Indian youth of today is very
much inclined towards fast food and this has become a major factor towards the growth of these types of restaurants. 

The future of the restaurant industry looks bright. With the increase in demand, the consumer patterns, the profit of this industry will also
significantly rise. In fact, the restaurant industry has become a popular career option for the youngsters of India. More and more people are opting
to work in different segments of this industry to start a highly successful career. New courses and study programs based on various sectors of the
restaurant and food processing industries are also coming up to cater to students.
 The Dome
Fall in love with the exotic Indian cuisine – all over again

Introduction:-The Dome welcomes guests with its contemporary décor abounding a pleasant and relaxed
ambience. Dine on our sumptuous buffet or exquisite a la carte menu in the evening. The choice is extensive,
well-balanced, and international and includes Bulgarian cuisine, vegetarian food and fine delicacies. During the
summer the Barbeque Terrace offers a pleasant outdoor setting with a stunning view of the Arabian Sea and the
Queen’s necklace

Our USP: - Our Best Indian Cuisine 

Service- Well-trained staff which will give you an unforgettable dining experience

Our chef- India’s one of the top Indian Cuisine Chef- Hari Nayak
The Advertisement model used:-

In developing the different modes appropriate for advertising our restaurants we took into consideration the 5m’s of advertising as we wanted to cover the following criteria
while advertising our restaurant

 Mission: what are the advertising objectives?

 Money: how much can be spent?
 Message: what message can be sent?
 Media: what media should be used
 Measurement: how should the results is evaluated?

Mission:-
To inform: This aim of Advertising is generally true during the pioneering stage of a product
category, where the objective is building a primary demand.
This may include:
 Telling the market about a new product
 Suggesting new uses for a product
 Informing the market of a price change
 Informing how the product works
 Describing available services
 Correcting false impressions
 Reducing buyers fears
 Building a company image

As our restaurant is new we are using this model to make our target customers aware of our restaurant

We would make them aware of our specialities in Indian Cuisines

We would like them to taste our chef HARI NAYAK’S special dishes like The Murg masala deluxe, Murg biryani delicacy to name a few

To make sure that our customer count goes to the level expected and there is good revenue generation

MONEY
 This M deals with deciding on the Advertising Budget
The advertising budget can be allocated based on:
 Departments or product groups
 The calendar
 Media used
 Specific geographic market areas

There are five specific factors to be considered when setting the Advertising budget.

 Stage in PLC: New products typically receive large advertising budgets to build awareness and to gain
consumer trial. An Established brands is usually supported with lower advertising budgets as a ratio to sales.

 Market Share and Consumer base: high-market-share brands usually require less advertising
expenditure as a percentage of sales to maintain their share. To build share by increasing market size
requires larger advertising expenditures.  Additionally, on a cost-per-impressions basis, it is less expensive
to reach consumers of a widely used brand them to reach consumers of low-share brands.

 Competition and clutter: In a market with a large number of competitors and high advertising
spending, a brand must advertise more heavily to be heard above the noise in the market. Even simple clutter
from advertisements not directly competitive to the brand creates the need for heavier advertising.

 Advertising frequency: the number of repetitions needed to put across the brands message to
consumers has an important impact on the advertising budget.

 Product substitutability: brands in the commodity class (example cigarettes, beer, soft drinks) require
heavy advertising to establish a different image. Advertising is also important when a brand can offer unique
physical benefits or features.

MESSAGE GENERATION
 Message generation can be done in the following ways:

Inductive: By talking to consumers, dealers, experts and competitors. Consumers are the major source of good ideas. Their feeling about the product, its
strengths, and weaknesses gives enough information that could aid the Message generation process.

Deductive: John C. Meloney proposed a framework for generating Advertising Messages.

According to him, a buyer expects four types of rewards from a product:

  Rational

Sensory

Social

  Ego Satisfaction.

Buyers might visualize these rewards from:

  Results-of-use Experience

Product-in-use Experience

Incidental-to-use Experience

The Matrix formed by the intersection of these four types of rewards and the three types of experiences is given below.

Potential Type of Reward (Sample Messages)

Rational Sensory Social Ego Satisfaction
Result-of-Use 1. Gets Clothes 2. Settles Stomach 3. When you care 4. For the skin you
Experience Cleaner upset completely enough to serve deserve to have
the best
Product-in-Use 5. The flour that 6. Real gusto in a 7. A deodorant to 8. The store for
Experience needs no sifting great light beer guarantee social young executive
acceptance
Incidental-to- 9. The plastic 10. The portable 11. The furniture 12. Stereo for the
Use pack keeps the television that’s that identifies the man with
Experience cigarette fres h lighter in weight, home of modern discriminating taste
easier to lift people

Message evaluation and selection

The advertiser needs to evaluate the alternative messages. A good ad normally focuses on one core selling proposition.
Messages can be rated on desirability, exclusiveness and believability. The message must first say something desirable or interesting about the product.
The message must also say something exclusive or distinct that does not apply to every brand in the product category. Above all, the message must be
believable or provable.

Message execution.
The messages impact depends not only upon what is said but also on how it is said. Some ads aim for  rational positioning and others for emotional
positioning.
While executing a message the style, tone, words, and format for executing the message should be kept in mind.

Style. Any message can be presented in any of the following different execution styles, or a combination of them:
 Slice of life: Shows one or more persons using the product in a normal setting.
Example: Coke 1litre ad, showed a family enjoying Coke, with a game of antakshari when there is a power failure.
 Lifestyle: Emphasizes how a product fits in with a lifestyle.
Example: Collection, Asmi and Platinum ads, that focus on lifestyle of persons using their products.

 Fantasy: Creates a fantasy around the product or its use.

Example: VIP Frenchie ads, showing a woman thinking of the Frenchie man saving her from a villain.

 Mood or image: Evokes a mood or image around the product, such as beauty, love, or serenity. No claim is made about the product except
through suggestion.
Example: Kingfisher Beer ads, saying the King of Good Times.

 Musical: Uses background music or shows one or more persons or cartoon characterssinging a song involving the product.
Example: Ads of Old Spice After Shave Lotion
 Personality symbol: Creates a character that personifies the product. The character might be animated
Example: Ronald McDonald for McDonald’s

 Technical expertise: Shows the company’s expertise, experience, and pride in making the product.
Example: GE and Skoda ads

 Scientific evidence: Presents survey or scientific evidence that the brand is preferred over or outperforms other brands. This style is common
in the over-the-counter drug category.
Example: DuraCell Ads, claiming the battery lasts 6 times longer than ordinary batteries

 Testimonial evidence: This features a highly credible, likable, or expert source endorsing the product. It could be a celebrity or ordinary
people saying how much they like the product.
Example: In ads for Sunsilk, they had hair expert Coleen, endorsing the product.

Tone:
The communicator must also choose an appropriate tone for the ad.
Example: Procter & Gamble is consistently positive in its tone—its ads say something superlatively positive about the product, and humor is almost always
avoided so as not to take mention away from the message. Other companies use emotions to set the tone—particularly film, telephone,
and insurance companies, which stress human connections and milestones.

Words:
 Memorable and attention-getting words must be found. The following themes listed on the left would have had much less impact without the creative
phrasing on the right:

Theme Creative Copy

You won’t have to stay at home because of Get Out, Get Going
bad hair

FORMAT:
Format elements such as ad size, color, and illustration will make a difference in an ad’s impact as well as its cost. A minor rearrangement of
mechanical elements within the ad can improve its attention-getting power. Larger-size ads gain more attention, though not necessarily by as much as their
difference in cost. Four-colour illustrations instead of black and white increase ad effectiveness and ad cost. By planning the relative dominance of different
elements of the ad, optimal delivery can be achieved.
MEDIA
The next step to be considered while making an Advertisement Program is the Media through which to communicate the Message generated during the
previous stage. The steps to be considered are:
MEASUREMENT

Evaluating the effectiveness of the Advertisement Program is very important as it helps

prevent further wastage of money and helps make corrections that are important for further
advertisement campaigns. Researching the effectiveness of the advertisement is the most
used method of evaluating the effectiveness of the Advertisement Program. Research can be
in the form of:
 Communication-Effect Research
 Sales-Effect Research
There are two ways of measuring advertising effectives. They are:

Pre-testing
It is the assessment of an advertisement for its effectiveness before it is actually used. It is
done through
 Concept testing how well the concept of the advertisement is. This is be done by
taking expert opinion on the concept of the ad.
 Test commercials – test trial of the advertisement to the sample of people
 Finished testing

Post-testing
It is the assessment of an advertisements effectiveness after it has been used. It is done in
two ways
 Unaided recall – a research technique that asks how much of an ad a person
remembers during a specific period of time
 Aided recall – a research technique that uses clues to prompt answers from people
about ads they might have seen
 Case Study :
Sundrop
Mission:
Sales goals: Leadership in the edible refined oil segment

Advertising Goals:
Communication task
1. Position Sundrop as the healthy oil for healthy people
2. Ensure that this did not erode the delivery of the taste benefit.
 Positioning had to be perceptually as far away from Saffola.
 Young, modern and premium feel
 Execution had to be distinct and original to stand out from the clutter
Money:
 Stage in PLC: Introductory, therefore relatively large expenditure
 Market share: new product
 Competitors:
Saffola (Safflower oil) also used the health platform but was associated with heart patients and less taste
Flora and Sunola (Sunflower oils)
Message:
Health was chosen as the platform, along with a supporting claim for taste. People who were healthy and energetic were concerned about the long-term
prospects of their health. Thus ‘Health’

 Was related to maintenance of good health

 Was applicable to all members of the family
 Was characterized by lively energetic people
 Thus the message and (positioning): â€˜The Healthy Oil for Healthy People’
Media:
Primary media: Television ad 30 seconds.

Print ad

Measurement:
 Within 6 months, Sundrop became the largest selling refined sunflower oil.
 Redefined the category and expanded the Sunflower oil segment from 2.71% to 23% in 6 months, and 42% in 1997
 Still the largest selling sunflower oil brand holds 15% of branded oil market.
 The ad was shown for over 10 years as the main theme film.