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INTRODUCTION

Marketing in food and beverage operations can be extremely


challenging as managers have to consider how to market both the
tangible elements of the meal experience as well as the intangible ones.
In order for a transaction to take place the consumer must be present
and that makes the consumer part of the product which adds to the
challenge of how to market the product effectively. As different
customers have different experiences, expectations and perceptions, it
can be hard to maintain absolute consistency of the product and
service. Furthermore, the Perish ability of both the actual products sold
and the seats available in a food and beverage operation make
marketing an extremely important function for the successful
management of any food and beverage business We look at each stage
of the product life cycle, and marketing components such as marketing
research, advertising, the brand, internet marketing, public relations
and merchandising. All of these components need to be given careful
consideration in order to run a successful food and beverage operation.

WHY TO STUDY MARKETING STRATEGIES OF FOOD AND BEVERAGES


MARKETING

1. To understand the essentials of marketing for services.


2. To understand the basics of marketing for food and beverage
operations.
3. To understand the basics of advertising for food and beverage
operations.
4. To understand the basics of public relations, merchandising and
promotions for food and beverage operations.
5. To understand personal selling and up selling.

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STATEMENT OF THE PROBLEM
Marketing and advertising food products may seem unnecessary. Why
would a business need to market something that everyone needs to
survive? Like with any other product or service, food is marketed to
attract certain customers and to increase the awareness of the
company and its brand. There are some problems with marketing
food, however, that need to be taken into consideration.

 Choosing a Demographic
While everyone needs food and water to survive, there are often
many supermarkets, convenience stores and luxury food shops for
consumers to choose from. Choosing a demographic for a particular
food product, like frozen vegetables, is one of the challenges
businesses face. Selling low-cost or budget brand frozen vegetables
may make sense in a lower-income or cost-conscious neighborhood.
On the flip side, selling higher-priced frozen vegetables would make
more sense in an affluent community. The real problem is to make
sure the advertising matches consumer demand. If the majority of
consumers are looking for moderately-priced products, it won't make
sense to advertise the most expensive foods.

 Perils of Being 'Trendy'


Many businesses selling food products have begun to incorporate
terms such as "organic" and "fair trade" onto packaging and
advertising. Organic means the food is grown without pesticides and
fertilizers. Fair trade indicates that the product was produced and
traded for an equitable price. While there is nothing wrong with using
these terms if the products truly are organic or fair trade, there is a
danger in professing to be one or both of these things if in fact it isn't
true. Not only could this potentially be illegal, but it also may raise

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suspicions about your company's marketing and branding techniques.
In fact, the makers of 26 personal care products were sued in 2011 for
falsely representing the products as organic. The biggest risk in food
marketing is probably in advertising fair trade or organic when only a
portion of the food product meets those categories.

 Claims about Contents


The FDA and other consumer watchdog groups, such as the Institute
of Medicine, warn food companies against making scientifically
unfounded claims about and ingredients and health benefits. While
products such as drugs and medical devices are regularly tested for
health and safety, the same isn't always true of food. It is possible for
a business to claim that its product "boosts immunity" or is low in
cholesterol, for instance, when in fact there may be little or no
scientific evidence behind this. Businesses using this technique may
see the benefits of marketing to specific demographics interested in
health foods, but doing so without proper scientific evidence may
mean potential lawsuits if a consumer challenges the product.

 Leveraging the Brand


The value of the brand of food products being marketed cannot be
overstated. People buy names, not products. This is true even with
perishable and necessary goods, such as food. Some companies use
the popularity of their brand names and logos to up-sell their items.
For example, terms such as "Kool-Aid" have now come to mean all
kinds of flavored drink mix, even though it's actually the brand name
of a particular product. The problem with this approach is that it
makes it difficult for lesser-known brands and companies to enter the
food marketing industry. Finding a balance between selling enough
products to capture consumer attention and still harnessing the power
of the brand is crucial.

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OBJECTIVE OF THE STUDY

The purpose of this dissertation is to understand and to contribute to a


better knowledge of marketing strategies used by companies under
food and beverage industry .

The aim of the thesis is to find out the various methodology and factors
considered by the food and beverage companies to sustain in this high
competitive industry.

The purpose of the study could be expressed by the following research


factors:

 To understand marketing strategies used by various companies in


this industry
 To understand the public relation , merchandising and promotional
activities of various food and beverages operators .
 To understand advertising strategies for food and beverage
industries.
 SWOT analysis of the industry
 SWOT analysis of the various market leaders in this industry.

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