Depending on what sector of the hospitality industry a company is involved in, like food and beverage or hotels and motels, will affect its competitive landscape. In order to successfully market a product, a company must understand its competitors, what advantages and disadvantages they have compared to them, and how they can utilize this information to project the most appealing and effective image of their product. In addition, companies must understand critical social issues that might be related to their product, such as “going green” initiatives. Acting on these social concerns and making consumers aware of it, could give a company and advantage over competitors.
Consider the food and beverage sector of the hospitality industry; one of the major concerns, especially in the United States, is obesity and unhealthy eating habits. This is probably why, “McDonald’s will use its coming sponsorship of the 2012 Summer Olympics to bolster efforts to present itself as a nutritionally responsible marketer, particularly when it comes to children.” Any restaurant, in order to effectively market their product, it going to hone in on where there food comes from, how it is cooked, and the overall nutritional value of the meals they provide. Also probably why, “McDonald’s has been aggressive in fighting back against efforts by activists to limit or ban Happy Meals on the grounds that they provide children with too many calories and too much fat, salt and sugar.” McDonald’s and other fast food chains and restaurants can use a variety of marketing strategies to make consumers aware of the “health conscious” options offered to them. One of the main ways is through endorsements by celebrities. “Dara Torres, the United States Olympic swimming champion, is being hired to serve as a “global ambassador” for the McDonald’s efforts for the 2012 Games.” Think about the Subway commercials that feature Michael Phelps, these big name celebrities help companies market the big changes being made in response to health concerns. Furthermore, think of the calorie count many restaurants now offer.
http://mediadecoder.blogs.nytimes.com/2011/07/20/mcdonalds-uses-olympics-for-its-own-balancing-act/?ref=mcdonaldscorporation
Acting on social concerns is not just something restaurants in the hospitality industry use for marketing purposes, hotel and motel companies also focus on these aspects. The recent recession coupled with high gasoline prices has caused a decrease in traveling among households. Companies, like Hilton Worldwide and Marriot International, understand this. “The consumer mindset is very value-focused,” said Carla Raynor, vice president for global marketing for two chains owned by Hilton Worldwide. As a result, companies will have to focus on maximizing how much consumers get compared to how much they pay; this will likely prompt a focus on accommodations. For example, a new program launched by Renaissance Hotels, part of Marriot International, “is intended to help guests get more from their stays by providing more useful information about distinctive local attractions like sights, restaurants, bars and stores.” Companies will probably flood television will commercials promoting these new initiatives, offer coupons and special offers, drown customers with e-mails, and snag advertisements in areas with high traffic- if your not traveling often when you do, you want to get the most for your money and companies want you to know they are the answer.
http://www.nytimes.com/2011/03/11/business/media/11adco.html?ref=marriottinternationalinc
Regardless of whether they are Marriot International or Subway, companies must also compare their product to competitors to market it effectively . Continuing with the example of McDonald’s, many fast food chains would absolutely consider McDonald’s to be a competitor. Wendy’s certainly did, and that is why they recently “[announced] the details of a national marketing plan for its new recipe for French fries.” Chief marketing director at Wendy’s, Ken Calwell, said fries “is something we hadn’t been a leader in, in the past” and something they hope will become a satisfying alternative to McDonald’s fries. Here is a clear example of how a company identified an area of improvement when it analyzed the market and acted upon it; however, the next step is making consumers aware of this effort. Therefore, Wendy’s launched a campaign, which “includes two television spots that will run on cable and network stations like TBS, VH1 and Bravo and during shows like “Conan” and “Lopez Tonight.”
I found you post to be very interesting and insightful.
ReplyDeleteWell done, Laura!
You said " Acting on these social concerns and making consumers aware of it, could give a company and advantage over competitors. " I think this is what gives companies their advantage over competitors. The same way prefer to buy from a local store even if it is slightly more expensive, I think people and starting to favor companies that do more in terms of giving back.
ReplyDelete~Nia McCarthy
I think you did a great job describing the impact celebrities have on the competitiveness of each company. When you think of certain companies, it isn't the product you think of first, but the celebrity that has endorsed it. This can be fantastic if you choose the right celebrities but if you choose the wrong ones, in the case of Mike Tyson or OJ Simpson, it can backfire greatly!
ReplyDelete-Domenick Cocchiara