Food and Beverage Management
Menu Design
Introduction
Hong Kong market is considered to be a substantial market for all food products that comes in various forms such as hypermarkets, theme restaurants, wet market and convenience stores among others. Nonetheless, there is a limited option for Hong Kong residents in a setting wherein they will have diverse food choices. Based on my research, there are at least 8 food courts or food centers in entire Hong Kong namely Argyle Center (Phase 1 basement), Hong Kong City Plaza (food republic), Langham Place (Level 4), City Olympian Express canteen, Tai Yuen, Wanchai Hawker and Sheung Wan food centre. It is proposed herein to have a food court that offers deep assortment of traditional and modern food from different regions of Hong Kong and China under one roof.
Market research
A way to increase the likelihood of the success of a food court business is through measurable, scheduled, realistic and written business objectives. Market research, as part of the overall business strategy, provides basic information about markets or customers. Conducting a comprehensive market research is critical in order to describe the competition and the market place as well as the future necessary marketing strategies. According to Norman (2004), market research answers questions such as what is currently happening in the market, who are the competitors, what are the most recent consumerism trends and what is the need of the market. Aside from identifying the business risks, market research directly benefits the business of the operational and business-level strategies to pursue in order to build and maintain a competitive advantage hence increasing chances of profitability (Caplan, 2003). Davis (2008, p. 60) noted that in the food and beverage industry it is important to know what information are needed, where will the information be collected and how.
Market segmentation
Further, market segmentation is the division of the market into various homogenous groups. Variables used for segmentation include geographic, demographic, psychographic and behavioral. Region, county, density of area and climate are the geographic elements. Factors affecting demographic are age, gender, family size, income, occupation, socioeconomic status, religion and nationality/race. For psychographic, elements include personality, lifestyle, value and attitude. Moreover, behavioral segmentation deals with benefit sought, product usage rate, income status and customer loyalty. A market segment should be measurable, accessible through communication and distribution channels and should be substantial enough to be profitable (Schiffman and Kanuk, 2004, p. 53).
Further, there are two ways in which effective market segmentation is could be achieved: business market and consumer market. The focus is consumer market segmentation that is further subdivided into geographic, demographic, psychographic and behavioral (Weitz and Wensley, 2002, p. 76). Geographical segmentation, specifically, may be at international, national or local level. Regional differences could be therefore considered especially when consumers are willing to travel a distance to experience specialized quality foods in specific areas. Age group is primarily considered in demographical segmentation on the other hand. Age groups largely determine the behavior of the market or simply the lifecycle of eating out. For instance, the younger age groups are more willing to experience new ideas, they like to dine and be seen in fashionable restaurants and bars. Compared to their counterpart, older age groups are less experimental but could form a large part of a food retailer’s repeat business (Davis, 2008, p. 55; Michman and Mazze, 1998, p. 227).
For the food court, the chosen market segment is the age groups of 20 to 24 (courting/married) who eat out with partner alone but also with group of friends without partner; 25 to 34 (married with young family) who eat out with partner alone but also with partner, family and other friends; 35 to 44 (family with children growing up) who eat out with partner alone but increasingly also with other family members including partner; and 45 to 54 (children grown up) who eat out with combination of partner, family and friends. It is planned that the food court will be in urban Kowloon to cater to socioeconomic segments of A (upper middle class), B (middle class), C1 (lower middle class) and C2 (skilled working class). This is important to tap the diversity in the target segments to associate with the diversity of food offerings in the food court.
Consumer’s behavior
Aside from food products that must have broad appeal for the segments identified, these food products in the food court should also possess distinguishing features that will set it apart from other competing food courts, foods centres or canteens while also implicating for consumer behavior. Consumer behavior refers to the decision processes and acts involved in purchasing using a product. In order that firms could understand the consumer behavior, there is the requirement to create the marketing mix which will give optimum utility to customers, therefore analyzing the what, where, when and how consumers buy (Haugtvedt, Machleit and Yalch 2005; Parcon 2007, pp. 89-90).
Furthermore, it would be plausible to take note of the factors that affect the consumer buying process: personal, psychological and social. Personal are unique to an individual consumer including the demographic factors like gender, race and age. Personal factors greatly affect the decision-making especially because risks and utility are also very individualistic (Parcon 2007, pp. 91-93). Consequently, the psychological factors include motives, perception, ability and knowledge, attitudes, personality and lifestyles. Social factors, finally, affect the consumer cognition via opinion leaders, roles and family influences, reference groups, social class and culture and sub-culture.
As already mentioned, four distinct age groups are determined as well as their social classes. Income and occupation are also targeted since they have the capacity to spend based on their preferences of either traditional or modern cuisine. These are personal and corporate customers. Considerably, these are the consumers who are looking for convenience of location and shopping times especially after a tiring day of work. Also, they would not be able to prepare home cooked meals and so food court is the next best alternative for them. These are also the people who require all day menus such as breakfast, lunch, dinner and snacks.
The demand for food is never ending, and becoming a premier food provider of both traditional and modern in urban Kowloon has its basic palatability appeal to nationals and visitors. Focusing on Kowloon, the location of the food court is accessible to many people and with hotels and shopping malls surrounding it. Several food products will be combined and offer bundle price particularly for special meals. Combined with the place, the feeling of being in a native place which brings out the flavor of the region and Mainland would be exquisite for nationals and an extraordinary experience for visitors. Hong Kong residents who are accustomed with Chinese cuisine would be also able to try modern cuisines that are also of Hong Kong and Chinese origins.
Menu design
Flavor of Hong Kong and China, further, would be a perfect cuisine mix which will be kept at an affordable price. Noteworthy, the Chinese cuisine is an evolving cuisine with the eight great traditions as the underpinnings. Hong Kong cuisines are not lagging behind as well, as it becomes more innovative with extensive influences from Cantonese cuisine. It is in this sense that the requirement of a truly Hong Kong experience that the food court menu is designed as eclectic – combination of traditional and modern Hong Kong and Chinese cuisines. Striking a balance would be appropriate since nationals favor hot and cold foods, fresh and pickled, vegetables and meats, nuts and grains and dairy and sweets.
Careful menu planning is necessary especially because we are positioning the food court as a place where deep assortment of traditional and modern Hong Kong and Chinese foods are available. There should be a multitude of delicious and daily hot entrees for breakfast, lunch and dinner items that are made to order; freshly prepared salad options as well as selection of sandwiches; soup stations; desserts stations; beverages stations; dairy product selections; complete pastry lines or bread selections; noodles selections; and coffee selections among others. Grilled foods and freshly cooked foods will be also available and also food-to-go and home replacement meals.
The goal of the food court is not necessarily quick-served since there could be waiting time to enjoy freshly cooked foods. These are in response to the requirements of the market segments of foods available for everyone in the group, at an affordable price, any time of the day. Since we cannot expect diners to stay in the food court especially when families wait at home or when there is the need to go back to the workplace, options of to-go foods should be also available. Likewise, some age group especially the younger generation would require easily-prepared food for snacks, there should be an option for breads, ice creams and finger foods. There should be also menus that are both light and heavy because of the preferred time of shopping wherein some eat before and after shopping.
Conclusions
In sum, the identified age groups as market segments of the food court are: 20 to 24, 25 to 34, 35 to 44 and 45 to 54 and socioeconomic status of A, B, C1 and C1. All of these segments dine out variedly as alone, with partners, with entire family and with friends. Nevertheless, they are included in the working group which means high dispensable income for foods. Also, they belong to age groups that are experimental in what food they eat. Based on market segments and customer behaviours identified above when it comes to eating patterns and requirements, it is concluded that eating in food court could be an enriching experience. Eclectic menu design is appropriate since cuisine mix of both traditional and modern Hong Kong and Chinese cuisines are proposed. Menu design is unbounded of time, meaning foods will be available in any time of the day. Menu will also cater to different dining options such as site-dining, foods-to-go and home replacement meals. Quick-served foods and customized cooking will be also a feature. Innovative menus, nonetheless, will be the key.
Recommendations
My recommendations would focus on food court marketing in two-folds. First is through the combination of food quality, ambiance, taste, location and price. The main focus is to draw traffic into the food court by running promotional campaigns. These campaigns should have the five elements identified at its core. Spending on special menus at a competitive price will be relayed to the public. The objective is to develop liking, preference and conviction of both nationals and visitors.
Second is through food marketing that aims to bring together people and food. In this way, people are provided with an incentive to be dignified through the rich cuisine culture of both Hong Kong and China. Visitors could also take pride in partaking in the food court experience that is truly Hong Kong.
References
Davis, B. (2008). Food and beverage management. Butterworth-Heinemann.
Haugtvedt, C. P., Machleit, K. A. & Yalch, R. (2005). Online Consumer Psychology: Understanding and Influencing Consumer in the Virtual World. London: Routledge.
Lancaster, G. & Whitney, F. (2006). Marketing Fundamentals: 2006-2007. Butterworth-Heinemann.
McGrath, M. E. (2007). Product Strategy for High Technology Companies.
Michman, R. D. & Mazze, E. M. (1998). The food industry: marketing triumphs and blunders. Greenwood Publishing Group.
Parcon, P. (2007). Develop Your Decision Making Skills. Lotus Press.
Schiffman, L. G. & Kanuk, L. L. (2004). Consumer behavior.
Weitz, B. A. & Wensley, R. (2002). Handbook of Marketing. UK: Sage Publications Inc.
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