Sailmaker is a restaurant known for providing fresh and best local sea food products in Sydney. Recently, it has launched First Table promotional technique which had failed to accomplish its marketing goal of increasing the visits of guests. The primary data was gathered to identify the reason for the failure. The qualitative analysis was used to interpret the results.
From the findings, it was identified that the promotional techniques was used to increase the visits of guests and to influence their purchase intention. For this purpose, the organization had made use of varied techniques such as fresh food products, First table technique or promo codes and official website as well. The first table technique was a failure since most of the customers were not aware of the technique and moreover the options of food products were limited in the hotel.
To overcome these issues, the organization could have promoted the first table technique launch in social media website such as Facebook and official webite as well. New products such as continental food could be catered in the firm. The new product release and first table technique could be promoted in local television channels.
Background of the study
Hyatt Regency Sydney caters unique and personalized dining experience to the guests in Sydney. Sailmaker restaurant in Hyatt Regency is known for its outstanding fresh seafood menu. Local dining experience is catered at Sailmaker which can accommodate nearly 270 guests at a time. The ingredients and raw materials required for the preparation of the sea food products are procured from New South Wales. The farmers and fisherman in New South Wales are always in touch and have partnered with Joseph Cain who is a chef of this restaurant. All the famous and best types of sea food products of Sydney are available at this restaurant. The restaurant is mainly known for catering fresh food products as the fresh table concept is the strategy that is applied in this restaurant to draw the attention of the customers (Hyatt, 2019). It was identified that the organizations in the hospitality industry tends to adopt effective promotional strategies to remain competitive (Peters, 2012). For this purpose, first table promotional technique is used by most of the organizations in the hospitality industry. Based on promotional codes of first table, a flat 50% offer is being offered for all the food products (Dang, 2019). The first table promotional technique is being used by Sailmaker as well. The customers’ are satisfied with this promotional technique. However, the limited food products had not motivated the customers to re-visit the restaurant. Furthermore, the workers were not efficient in clearing up the tables quickly. This had created a negative impact on the purchase intention of the customers (Fawcett et al., 2019). Due to the inefficient customer service and the limited food products, the first table promotional code was not successful. Furthermore, most of the customers were not aware that Sailmaker had started providing first table promotions as it was launched last month. Low awareness of the promotional technique was yet another reason for the failure of first table promotions.
It was identified that the main financial performance such as profit and sales are influenced based on the marketing strategies adopted by the organizations. The sales could drop if the efficiency of the market drops (Smith, 2003). Lack of awareness of the customers could be the main reason for the failure of promotional and marketing techniques (Piratheepan & Pushpanathan, 2013). It can be concluded that inefficient promotional techniques that fails due to the poor reach amidst target customers could affect the financial performance of the organizations. The sales, profit and revenue of Salesmaker could drop due to the failure of first table promotions and hence, the need to increase its efficiency is higher for the firm to reboot its performance and maintain its competitiveness.
Research aim and objectives
The main aim of the study is to identify the reasons for the failure of first table promotions at Sailmaker.
-To identify the importance of promotional strategies adopted by the hospitality organizations
- To examine the types of the promotional strategies followed by the hospitality organizations to draw the attention of the guests
- To find out the reasons for the failure of the promotional strategies adopted by the firms in hospitality industry
- What is the main cause for the failure of first promotional technique at Sailmaker?
Rationale of the study
The primary data will be used in this research to gather the data. The main reason for using the primary data is that the accurate information related to the failure of the first table promotions will be identified directly from the people who are involved in it. This could enable to identify the issues with respect to the first table promotions in Sailmaker. Based on the issues, the accurate recommendations could be provided in the research. The solutions will be provided in real time. This could be considered by the organization to resolve the current issues with respect to the first table. On the other hand, the study could be considered for the future research and comparative study as well.
Scope of the study
In this study, the background of the study will be clearly mentioned and the problem statemetent will be clearly detailed. Based on the above two aspects, the research aim and research objectives would be devised. The literature review chapter will be included in the report. The information related to the research topic which was discussed in other studies will be critically examined in this chapter. The main gap amidst the previous study and the current study will be identified. The methodology of how the research will be conducted will be discussed in the below sections. The sampling techniques and the ethical considerations used and done by the researcher respectively will be discussed below. Furthermore, the findings and discussion chapter will detail the responses gathered from the participants of the research. Conclusion chapter will have the answers for all the research questions and research objectives. Recommendations for the issues identified in the previous sections along with the implementation plan will be detailed as well.
2.0 Literature Review
In this chapter the journal articles related to the promotional strategies adopted by the hospitality industry in Australia will be identified. The reason for the failure of these techniques in the hotels will be assessed as well. The main gap amidst the current research and the previous study will be identified and discussed as well.
Significance of the promotional codes at Hospitality organizations
In this research, it was identified that a direct relationship prevails amidst the purchase behaviour, attitude and belief of the customers with the online sales promotions used by the hotels. The online promotional deals had influenced the purchase intention of the customers on a higher level in the hotels. The main reason for the promotional deals is due to the price judgements made by the customers before the purchase. These deals and offers could increase the purchase intention of the customers (Christou, 2011). In the present business world, the organizations make use of the marketing strategies to gain the competitive advantage. The organizations ensure that the participation levels of the guests are higher in order to pose severe threat to the competitors. For this purpose, the new and unique marketing strategies are adopted during the internationalization process. The foreign customer base in the global market increases with the effective decisions made in the marketing strategies (Rendón, Martínez & Flores, 2014). The above statements have revealed that the organizations tend to adopt the right marketing strategies so as to gain the competitive advantage in the global market, increase customer base, influence the purchase intention of the customers and impact the attitude and beliefs of the customers.
The organizations make use of the marketing strategies to increase the brand awareness. The advertising techniques such as event marketing, sports marketing, positioning of the brand other integrated marketing techniques have increased the knowledge of the customers with respect to the varied products and services catered by the firm. Apart from the competitive advantage, the brand reputation and overall performance of the firms increases with the right marketing strategy (Latif, Islam & Mdnoor, 2014). It was found that the growth of the firms have increased due to the low pricing strategies adopted by the firms. The potential growth of the organizations has increased with the right pricing and other branding strategies. Furthermore, new opportunities and revenue of the firm in the hospitality and tourism industry has increased with the branding strategies (Gustavo, 2013). The above authors have clearly indicated that the varied types of marketing and branding strategies have increased the brand awareness, knowledge of the customers, revenue of the firm, gained new opportunities, and has improved the overall performance of the firm.
Types of promotional strategies adopted by the hospitality organizations
In this study, it was identified that to retain the competitiveness and the customers, the hotels were using effective advertising strategies. To identify the types of the advertising strategies adopted by the hotels, the interviews were conducted on the managers of the hotels. From the results, it was evident that the hotels initially make use of the service or product attributes. For instance, the hotels could promote itself by stating that it is present in the heart of the city. Furthermore, the hotels could also state that the requirements of the business customers will also be met in that particular place. On the other hand, the competitive pricing strategy is one of the effective tools used to reach the low end of the market. Cultural symbol is also being used by the firms to promote the brand (Petzer, Steyn & Mostert, 2008). The hotels usually recruit more female workers in order to promote the brand. The workers are usually trained to greet the customers and assist them in order to provide them with pleasant experience. Apart from the friendly behaviour of the workers, the special discounts are also provided. Clean environment is also one of the techniques used to promote the organization. It has increased the satisfaction levels of the customers in the hospitality industry (Mujtaba, 2017). The above authors have clearly indicated that the location of the hotel, cultural orientation, price discounts, competitive pricing strategy and friendly behaviour of the workers with the customers are some of the techniques used by the organizations in the hospitality sector to promote the brand and increase the customer satisfaction levels.
In the recent years, the hospitality industry has been using the e-marketing strategies to promot their products and services. The organizations tend to provide the innovative products so as to increase the profit and market opportunities as well. Social media is one of the main tools used by the organizations in the hospitality and tourism sector. The varied types of social media networks such as Facebook and Twitter are used to transfer the target customers into potential customers. The other digital advertisements such as televisions advertisements, online special offers and online competitions are used to promote the products (Siakalli, Masouras & Papademetriou, 2017). On the other hand, the organizations tend to make use of the traditional advertisements such as radio, television and print media so as to promote the brand. Furthermore, the organizations also tend to make use of the moving billboards and regular billboards for promotions. The organizations in the tourism sector seek for publicity and hence make use of publicity campaigns and huge banners as well. Mobile applications and social media are other tools used to reach the target customers (Scriven & Hanekom, 2002). It can be said that the organizations in the hospitality sector made use of both the online advertisements such as social media, online offers and coupons and traditional advertisements such as television advertisements, publicity campaigns and print media to reach the target customers and retain the competitiveness
Reasons for the failure of the promotional techniques adopted by the firms
The main aim of the study is to identify the recognition and recall of the brand that were affected due to the poor broadcasting of the mega events that took place to promote the brands. In this study, the three types of advertisements such as TV billboards, on-air promotions and other advertisements and their impacts on the brand memory was evaluated. From the results, it was foumd that the length and number of on-air promotions and other advertisements had created a negative impact on the brand recognition and brand recall. On the other hand, the television advertisements had not created a negative impact on the brand memory. This had increased the brand recognition and brand recall due to the high number of types the advertisements were broadcasted in television and long duration of the advertisements that were aired as well (Jeong, Kim & Zhao, 2011). One of the important promotional techniques that were adopted by the organizations in the hospitality industry are price discounts. This technique is expensive for the organizations. However, it could reduce the switching rate of the customers that happens due to the brand equity, quality and prices. On the other hand, the effectiveness of the promotional code differs as well. From the results, it was found that the organizations adopting premium prices have high benefit for the price discounts. However, the organizations having low prices have low benefits with the price discounts. It can be concluded that the decisions that are made by the managers with respect to the price discounts must consider the pricing strategy that is being currently adopted by the firm (Palazon & Delgado-Ballester, 2009). From the above information, it is clear that the various advertising strategies such as on-air promotions, television commercials and price discounts becomes efficient only in the method they are being adopted in the organizations. If the on-air promotions are too lengthy and repetitive their efficiency drops. Furthermore, the discounts applied on the products which are sold at low prices are not effective as well.
One of the main reasons for the organizations adopting the price reductions is to boost the sales. On the other hand, if the organizations aim to increase the price and plans it to keep it as standard price, the price discounts could be provided. However, the efficiency or the impact of the advertisements could be influenced due to the fulfilment of the needs of the customers with respect to the products, creativity of the promotional techniques and alignment of the promotions with the specific needs of the customers. This could be fruitful in increasing the awareness of the new products and remove the duplications as well (Pond, 2018). In this study the direct relationship amidst the customers’ purchase intention and the retailer-customized coupons were identified. It was found that if the efficiency of these coupons were higher it had the capacity to increase the revenue. In order to evaluate the efficiency of the coupons catered by the organizations, an assessment based on the coupon fit with respect to the preferences of the customers were made. From the results, it was found that the customers returned to the firms based on the effectiveness of redemption of the coupons. Customized coupons were preferred more by the customers. Extent of the rates of redemption (price cuts based on coupons) had influenced the sales of the firms on a higher level. However, the campaigns for the customized coupons were promoted using a direct marketing strategy or online medium to ensure that the exposure to these were higher (Venkatesan & Farris, 2012). Critically examining the above statements, it can be said that the efficiency of the price coupons and customized coupons that led to price cuts on the products were influenced due to varied reasons such as extent of price cuts on the products, exposure to the customers with respect to the price coupons, efficiency of the products with respect to the needs of the customers and creativity of the coupons that are catered to the customers.
No research related to the first table concept was discussed in the previous studies. Furthermore, the failure that could occur due to the first table concept in restaurants in Australia was not discussed as well. In the current research the efficiency of the first table promotions used by the restaurants will be identified. Furthermore, the reason for the failure of first table promotion will also be discussed. Not much of primary data was used to identify the reasons for the failure of the promotional techniques. In this research the primary data will be used so as to gather the right information that led to the failure of first table promotions at the restaurant in Sydney.
It can be concluded that the organizations in the hospitality industry tend to make use of the promotional techniques to gain competitive advantage, influence the purchase intention of the customers, increase the financial performance and customer base and improve the overall business performance. Furthermore, the price discounts, online coupons, online offers, social media advertisements and television ads are some of the techniques used to promote the products and services catered by the hospitality organizations. Furthermore, the main reason for the failure of the price coupons are due to lack of creativity, lack of awareness of the customers regarding its usage, applied when the prices are already low and number of times it could be used on an average.
The different types of research methods used by the researchers are are qualitative, quantitative and mixed methods. Based on the goals and objectives, the type of the methods is chosen. Qualitative research focuses on the observation based on the data which is non numerical unlike the quantitative research which measures the numerical data. Qualitative research focuses on examining the characteristics, symbols and concepts are examined (Yaqub, 2016). In this research the main aim was to identify the reasons for the failure of the first table promotional technique adopted by Sailmaker. The characterstics of the customers with respect to this promotional technique was to be examined and hence, the qualitative research method was applied by the researcher. The need to measure or make use of any numerical data was not required. Thereby, the usage for the quantitative or mixed methods was not required for this research and hence it was not used by the researcher.
Sampling technique is used by the researcher in order to choose the right respondents to gather the data regarding the research topic. Purposive sampling is mainly used to choose the right respondents based on their eligibility with respect to the research topic (Byrnes 2009). In this research, the purposive sampling technique was applied by the researcher. The main goal of using this sampling technique was that the manager of Sailmaker were interviewed since they had made the decisions recently to make use of the first table promotions to increase the guests visits to the restaurant. The reason for the failure could be identified by the managers and hence, the managers were chosen as the sample for the research for the purpose of answering the research questions and objectives. Thereby, the purposive sampling technique was used. The other sampling technique was not suitable for the research since it was not useful in answering the research questions. 1 assistant manager of the dinner team was chosen for the purpose of the interview. Semi-structured questionnaire with open ended questions were used during the telephonic interview to gather the data from the assistant manager.
The two types of the data collection used for the research are the primary data and secondary data collection methods. The primary data is gathered using the tools such as human resource surveys, consumer surveys, salary surveys and economic surveys. On the other hand, the secondary data is gathered from the company websites and sales reports (Wegner 2010). The researcher had made use of the primary data collection methods. The need to gather the information related to the importance and types of the promotional techniques used in Sailmaker was required. Furthermore, the main reason for the failure of the first table technique was to be identified and hence the data was required to be gathered directly from the managers who made decisions and hence the interview was conducted on them. Apparently, the first table promotional technique was launched very recently and data regarding it will not be available in the secondary sources. Thus, the need to make use of the secondary resources was not required for the research.
The two types of data analysis used for interpreting the data are qualitative data analysis and quantitative data analysis. Quantitative analysis is used to measure the quantities while the qualitative analysis is used to examine the attributes, characteristics or physical properties related to the research topic (Yaqub, 2016). As stated above the reason for identifying why the customers were not satisfied with the first table technique was to be examined and hence, the qualitative data analysis was used. The data from the interviews were to be interpreted and thus, the need to make use of the quantitative data analysis was not required.
The researcher had faced challenges in gathering the data during the interview from the manager since, the respondent had not provided accurate answers to all the questions raised during the interview. However, no pressure or force was applied by the researcher to gather the data. Furthermore, the data gathered during the interview was not leaked to any third party for any purpose. Clearly, the data security and legal issues were avoided during the conduct of the research. Additionally, the research did not face any cultural issues as well.
4.0 Findings and discussion
Reason for adopting new promotional strategies
This question was included in the survey so as to examine the importance of promotional technique in Sailmaker.
During the survey, the manager with 3 years of experience had indicated that
‘Yes, it is required for Sailmaker to adopt creative promotional strategies on regular basis so as to improve the brand recognition and recall. It is always essential to stay in the memory of the customers compared to our competitors and hence, the frequency of providing new promotional techniques could be higher. I also felt that First table promotional technique was very essential for Sailmaker since most of the seafood products are expensive and so this could draw more guests towards the restaurent’
From the response provided during the interview, it was found that the organization had to adopt unique and frequent promotional strategies so as to increase the competitive advantage, brand recognition, brand recall, influence the judgements made by the customers with respect to the pricess of restaurant, and increase the customer base of the firm as well.
- Types of promotional strategies
From the above data, it is clear that the organization has adopted varied types of promotional techniques. In order to identify the types of techniques adopted by Sailmaker this question was raised to the respondent during the interview.
The manager with 3 years experience had stated that
‘Fresh table concept was initially adopted. Any food products is being served hot and fresh which has impressed the customers. The guests can book the tables via the website of Hyatt Regency. Last month we launched the First table promotional technique wherein, we started offering 50% discount for the guests who make use of that particular promo codes’
The information revealed by the respondent had revealed that the organization has adopted sales promotions, online marketing and product based marketing strategies. The promo codes, official website and fresh products which could impress the guests.
- Efficiency of First Table promotional technique adopted by Sailmaker
The manager had clearly stated that First Table promotional technique has been recently launched. In order to assess its efficiency this question was raised to the participant during the interview.
The participant with 3 years experience had revealed that
‘Not much of difference was recorded in sales as of now. Increase in the visits of the guests post the launch of the promotional technique has not occurred as well. I felt that most of the customers were not aware of this promotional technique. Certain customers had given a poor feedback for our limited range of products which we should work on in future’
It can be said that the First Table technique was not successful in Sailmaker as it failed to increase the vistis of guests and increase the sales as well. The manager had revealed that limited range of food products that are available and lack of awareness of the First Table technique adopted by Sailmaker could have made it unsuccessful.
Importance of the promotional technique
From the findings, it is clear that the creative promotional technique has been used in Sailmaker so as to increase the brand awareness, brand recognition, brand recall, increase the visits of guests, gain competitiveness, increase customer base and influence purchase decision of the customers. The literature review has revealed that the creative promotional techniques influences the brand recall and brand reputation. Furthermore, the promotional technique had enabled to gain the competitive advantage in the hospitality industry. The promotional techniques are used to influence the purchase decisions of the customers as well (Christou, 2011). The literature review and findings do not have gap amidst one another. The promotional techniques are used to increase the customer base by influencing their purchase intention in Sailmaker.
Types of promotional strategies adopted by the hospitality organizations
The findings have revealed that Sailmaker has made use of official website, promotional codes and product based marketing techniques so as to draw the attention of the customers (Siakalli, Masouras & Papademetriou, 2017). The literature review had stated that hospitality organizations make use of both the online advertising strategies such as social media network tools and online offers along with the traditional marketing such as price discounts and television advertisements to promote the products and services. The literature review and findings are similar to one another. Sailmaker has made use of both the online and offline promotional techniques to promote its products and services.
Reason for the failure of the First Table technique at Sailmaker
The results of the interview have indicated that the lack of awareness of the customers and the limited range of food products that are already available in the organization were the main reasons for the failure of First Table technique in Sailmaker. The literature review has stated that the exposure to the customers with respect to new deals, creativity of the price discount deals and implemented with the right pricing strategy could increase the efficiency of the price discounts (Venkatesan & Farris, 2012). No gap prevails amidst the literature review and findings. The main reason for the failure of First Table technique is that the customers are not aware that Sailmaker has launched this technique recently and limited range of products have reduced the visiting levels of the guests as well.
5.0 Conclusion and Recommendations
It can be summarized that creative promotional techniques were required for Sailmaker to influence the purchase decisions of the customers and increase the customer base as well. The restuarent had promoted the services using official website, First table technique and fresh products. However, the customers were not aware of the first table technique. Furthermore, the promo codes of First table were not used since the products that were available were of limited range.
Suggestion to promote the First Table in social media and official website
The organization could create a separate official webpage in Facebook and could promote the launch of First table technique in it to increase the awareness. The official website of Hyatt Regency could have a separate webpage related to First table promotional technique as it could increase the knowledge of the customers with respect to it.
Recommendations to increase the product range
The product ranges could be increased. Apart from the sea food, the continental food products can also be catered in the firm.
Suggestion to promote the First Table and new product release in television channels
The television commercials in local channels with respect to the new product release and first table technique could be provided by the firm so as to increase the knowledge of the customers.
Recommendation: Promotion in social media and official website:
Time Frame: 6 months
Budget: $ 50,000
Personnel: Online advertising team, advertising manager and technical team
Other Resources: Internet and other software technologies
Recommendation: New product Release
Time Frame: 18 months
Budget: $ 1 million
Personnel: Chef and CEO
Other Resources: Cutting edge technology for production
Recommendation: Promotion through television channels
Time Frame: 12 months
Budget: $ 1.5 million
Personnel: Brand manager, CEO and advertising manager and team
Other Resources: Graphic tools
Limitations of the study
In this research only one manager was chosen as the sample and interview was conducted on him. In future, the sample size could be increased so as to gather more data required for the research. The survey on the customers could also be conducted related to the research topic to provide more accurate analaysis.
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Appendix 1: Questionnaire Disclaimer
I am conducting this research for the academic purpose. Your response will be gathered for the research purpose only and I assure you that it will not be leaked to any third party.
- Do you think that Sailmaker should adopt new promotional techniques such as First Table promotional technique? If So why?
- What other types of promotional strategies do you use to promote your services?
3. Do you think First table technique has been successful? If so why?
This problem has been solved.
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