Innovative Food and Beverage Marketing Ideas: Hard Rock Cafe - Essay Example

Hard Rock Caf: A Case Study of Innovative Marketing Marketing a product or service always begins with a passion. The market strategist starts by identifying a product or service he passionately believes in, and then formulates a cognitive model of antecedents and consequences of satisfaction decisions for his target customers, in direct connection with the specific product or service he wants to sell. Hard Rock Caf began with a passion for rock music by two entrepreneurs in London. Rock is a form of popular music with a prominent vocal melody accompanied by guitar, drums, and often bass. Many styles of rock music also use keyboard instruments such as organ, piano, or synthesisers. Rock music usually has a strong back beat. (Wikipedia) In the late 1960s, rock music was blended with folk music to create folk rock, and with jazz, to create jazz-rock fusion. In the 1970s, rock incorporated influences from soul, funk, and Latin music. In the 1970s, rock developed a number of subgenres, such as soft rock, blues rock, heavy metal-style rock, progressive rock, art rock, techno-rock, syth-rock and punk rock. Rock subgenres from the 1980s included hard rock, indie-rock and alternative rock. In the 1990s, rock subgenres included grunge-style rock, Britpop, and Indie rock. (Wikipedia) The influence of rock and roll is far-reaching, and has had significant impact worldwide on fashion, film styles, and even the hospitality industry.. This impact is broad enough that rock and roll may also be considered a lifestyle in addition to a form of music. Rock music was the inspiration of Tigrett and Morton's Hard Rock Caf (HRC) that originated in London. (Wikipedia) HRC is a unique genre in the hospitality industry, being a chain of restaurants, hotels, and casinos that is known for its music and memorabilia rather than its food. Customers come to HRC mainly for the experience of the live music event, which is a highly strategic marketing innovation of the caf. It was founded in 1971 by music-loving entrepreneurs Isaac Tigrett and Peter Morton. The first HRC opened near Hyde Park Corner in London, in a former Rolls Royce car dealership show room. In 1979 Tigrett and Morton began to cover the walls with rock and roll ephemera. Hard Rock was most popular in the 1980s when some people engaged in the hobby of visiting as many locations as possible and collecting a Hard Rock t-shirt bearing the Cafe logo and the location name. The Hard Rock Cafe's motto "Love All, Serve All" was adopted from Tigrett's guru Sathya Sai Baba. (Wikipedia) The HRC Marketing Mix There are about eight million restaurants in the world and some 300,000 restaurant companies. The restaurant industry is a classic mature market. Companies face stiff competition and low profit margins. (Yahoo Finance) Thus, innovative marketing ideas are necessary for any restaurant business to remain competitive and sustainable. Like many other restaurants and cafes, Hard Rock adapts the descriptive labeling for its menu and more. It has reinvented the menu to become an art cum history book. But more than the artistic menu, what makes HRC sustainable is its marketing mix that combines music, food, museum and merchandising. According to Proctor (2000), positioning products in people's minds and making them attractive to market segments requires careful formulation of the marketing mix. Getting the right blend of the product, promotion price and distribution is essential to put the carefully carried out analysis into operation. The aim is to portray an image for the product or service that will match with how one wants the product to be visualised in people's minds, i.e. its positioning. Image is not only reflected in the promotional messages which are directed towards the target market but also in the pricing strategy, the mode of distribution and in the appearance of the product or service itself. Live Rock Music HRC has position itself for dominance in a market that caters to customers who love not only food and beverage but also music. Before HRC has arrived at an appropriate marketing mix, it has already done a good job of market segmentation. What is the profile of this particular HRC market segment of food-beverage and music lovers Lieberfeld (1995) expressed it well. They are thirty-something white folks who had their first musical crush on rock and roll. Brooding yet soothing, the music shook with the raw pains and joys they could not articulate on their own. Visiting Hard Rock enables them to feel their umbilical link to rock and roll. It is amazing that such satisfaction of a basic need that can hardly find articulation would give birth to a million dollar caf business in almost every part of the globe. Since its 1971 opening in London, Hard Rock Cafe has become a global phenomenon. Currently there are 121 Hard Rock Cafes in over 40 countries, combining the spirit of rock music, memorabilia (more than 60,000 pieces) from the hottest musical artists of the last 50 years, classic American food, and a commitment to widespread humanitarian causes, such as feeding New York workers in the September 11 rescue effort. At Hard Rock, music is truly the universal language. In recent years, Hard Rock has expanded its cafe boundaries by reinforcing its "music connection" through music-related products and programs such as collectible and fashionable HRC merchandise, the Hard Rock Records music label, its Web site at www.hardrock.com, Hard Rock Hotels and Casinos, and Hard Rock Live music venues. Artists who have appeared at Hard Rock Live include Godsmack, Sugar Ray, the Moody Blues, Pantera, EryKah Badu, and the Go-Go's. "Not only can we rock hard, we know how to throw a party" says the HRC Web site. Opening celebrations for each new Hard Rock Cafe all around the world are headlined by live musical performances. In its Web site, HRC advises its customers to " keep your eye out as HRC continues to take music into the next millennium." As the world changes and tastes shift and twist, Hard Rock has always been at the top of the hottest trends. Still, Hard Rock Cafe remains conscious to its founding objectives: delicious food, awesome music, a high-energy atmosphere and creating a rock 'n' roll experience their guests will never forget. As of this writing, the following are just some of the more exciting live shows at HRC in different countries: * Jazz Evening in Moscow 3/27/2007 - 8:00PM * HRC Berlin's Legendary Karaoke in Berlin 3/27/2007 - 10:00PM * An Evening with AARON LEWIS of STAIND in Orlando Live 3/29/2007 - 8:00PM * Thursdays Live @ Hard Rock Caf featuring Karma in Mumbai 3/29/2007-9:30 PM * Live @ Five Rockin' Hour with Good Brother Earl in Pittsburgh 3/30/2007 - 5:00PM * City Rewind in Gothenburg 3/30/2007 - 5:00PM * Space Monkey Mafia in Melbourne 3/30/2007 - 6:45PM * An Evening with TOM JONES in Orlando Live 3/30/2007 - 8:00PM * Club Devolution in Stockholm 3/30/2007 - 10:00PM * LIVE, LOUD AND LOCAL! Presents HELL CITY GLAMOURS (SYDNEY) , Surfers Paradise 3/30/2007 - 10:00PM Aside from the high-value musical experience, the customers are further won over by the descriptive menu with artistic photographs of caf memorabilia, and souvenir items for sale that allow them to take home pieces of the significant HRC moments, that enable them to re-live the positive eating and listening experience. Having mapped out its strategic positioning and identified its target clientele, HRC has planned well its main products and variants- (1) Music, definitely live rock with various exciting performers; music memorabilia; cyber hello (getting to know the music artists); Web interviews (getting to know the music artists on a deeper level); music downloads; and online events calendar; and (2) Food including appetisers or starters, entrees, smokehouse or bar-b-ques, burgers, side dishes, sandwiches, salads, and desserts listed descriptively in the HRC menu titled "Eats;" and (3) Rock Shop that offers souvenir items for ladies, men, and children. Merchandising The Rock Shop sells a variety of goods such as t-shirts, jackets, wristwatches, scarves, wallets, sunglasses, key chains, charms, glass wares, picture frames, hats, and sauces. Some 30 percent of HRC's annual income comes from merchandise sales. Even in merchandising, HRC brings in art and strategy, which is best described by Bowen (1996). Makens and Bowen (1996) said, "Although many restaurants have merchandised products related to their operation for a long time, the current breed of entertainment-theme restaurants has brought product merchandising to a high art. In fact, nearly all restaurants could benefit from selling appropriate merchandise, which typically returns gross profits of 50 percent of sales. "One of the most common products, for instance, is a t-shirt bearing the restaurant's logo. Not only are such items in demand as collector's items, but they promote the restaurant. To be effective, however, product merchandising must be handled professionally, and in accordance with basic display principles. Choose items that fit the restaurant's concept and price them appropriately. Locate the merchandise in the most appropriate place, often near the cash register or at the restaurant's entrance. "The merchandise must be arranged in a pleasing fashion, properly balanced, and color coordinated. The display must have a focal point, which is best set at the intended customer's eye level. The display should be illuminated by spotlights or other secondary lighting to attract customers' attention. The other senses in addition to vision such as touch, smell, and taste, should be engaged where possible." According to Makens and Bowen, "A simple retailing truth is that customers buy it because they see it." Thus, goods for sale must be easily seen by target buyers the very moment they enter the restaurant. The area must be very well illuminated. It is best if customers can touch the items, because a texture that is pleasurable to the sense of touch encourages customers to buy. Children must be allowed to touch and try the toys. Customers must be encouraged to try on the merchandise such as shirts or jewelry; and taste them if the merchandise are food items. Memorabilia The cafes of Hard rock not only solicit donations of music memorabilia, but also purchase a number of items at auctions around the world. Hard Rock has the world's largest collection of such items. Memorabilia like autographed guitars, outfits from world tours and rare photographs are found mounted on cafe walls. The collection began in 1979 with the gift of an un-signed guitar (a Red Fender Lead II) from Eric Clapton, who was a regular at the first restaurant in London. Pete Townshend of "The Who" learned about this and sent in one of his guitars, also un-signed. Attached was a note: "Mine's as good as his! Love, Pete." Hard Rock has so many materials in its archive that it opened a Hard Rock museum named "The Vault" in Orlando, Florida. The museum closed in 2005. The Memorabilia is displayed on location for seven years before it is returned to Hard Rock headquarters in Orlando for archival storage. On occasion, Hard Rock has given an item back to its original owner, such as when Peter Frampton asked for his displayed guitar back . (Wikipedia) "Eats" : a descriptive menu by HRC According to Wansink et al (2001), "Customers associate the descriptive labels with their expectations of how the quality of the food will taste and make them feel. Vivid adjectives that portray geographic, nostalgic, or sensory themes can help trigger these anticipated feelings and expectations." Modern restaurant managers use strategic labeling in writing their menus. There are at least four basic kinds of labeling cited in the study of Wansink et al (2001) and these are geographic, affective, sensory, and brand. Hard Rock Caf has adapted the geographic labeling in its creative menu entitled "Eats." Examples are- Starters: Santa Fe Spring Rolls, Texas Chili; Entre: New York Strip Steak; Sandwich: Grilled Buffalo Chicken Sandwich; and Side Dish: French Fries. According to Wansink et al (2001), labels that claim to reproduce the same flavors that are specifically found in geographic areas have proven successful. The key is in deciding the region into which the food fits and then decoding which adjectives create that image. Sensory labeling is also found in HRC Entrees- Grilled Sirloin Steak, Herb Grilled Chicken Breast, Grilled Salmon, Blackened Chicken Pasta, Twisted Mac Chicken and Cheese. Sensory labels describe precisely the taste, smell, and "mouth feel" of the food. Customers imagine themselves buying the food and enjoying it. Ice cream shops are experts in this kind of labeling, with such menu item as "Chocolate Velvet." Other examples of sensory labeling in creative menu are-Hearty Wholesome Steak, Snappy Seasoned Carrots, Buttery Plump Pasta. (Wansink et al 2001) Affective labels are found in HRC desserts menu-Homestyle Cheesecake. The burgers menu features branded labeling such as HRC Burger, HRC Cheeseburger, HRC Bacon Cheeseburger, and HRC Veggie Burger. Affective labels are those alluding to emotions that can trigger happy memories of family, tradition, and nationalism. Customers sometimes like the feeling of tasting something wholesome and traditional. (Wansink et al 2001) The brand labels involves a cross-promotion with a related brand that has important associations that can make the menu item seems more attractive. The use of brands tells the customers, "If you love the brand, you will love this food." (Wansink et al 2001) Effects of the Descriptive Menu on Sales In the same study by Wansink et al (2001), it was stated that sales of food with descriptive labels increased by more than one-fourth. Also, customers who ate the descriptively labeled food consistently rated those meals as being of higher quality and better value. Further, customers who ate descriptively labeled foods formed more positive attitudes toward the restaurant, and believed that the restaurant was keeping up to date with the latest food trends. Aside from increasing sales by 27 percent, descriptively labeled foods also increased the possibility that the customers will order the same food items again on their return visits. The Wansink study also stated that descriptive menu labels can help stimulate first time consumption and can help encourage repeat sales. After enjoying their meal, the customers are likely to give the meal a positive evaluation for quality and value. However, the study also cited that customers' positive attitude did not seem to extend to a willingness to pay more for that meal. Aside from creative menu writing, HRC also features live music events as part of its marketing strategy as mentioned earlier Thus images from its music artist's memorabilia collection are attractive features also of its creative menu, "Eats." Among the featured images in "Eats" are Madonna's "Material Girl" cone bra and buster, Chris Novoselle's busted Render Bass, John Lennon's "Remember love" drawn sign from his and Yoko Ono's bed-in, Bo Diddley's cigar box axe, and a childhood rocking chair of a Seattle boy named James Marshall. Franchising Another HRC branch has opened recently in Warsaw, Poland. HRC is particularly interested now to franchise in the following countries: Spain, Italy, South Africa, Canada, Caribbean, and China. Conclusion Hard Rock's total revenues for the year 2006, which consisted of 53 weeks in company-owned cafe results, were $501.9 million, an increase of 10.9 percent compared to $452.6 million in 2005 (52 weeks). Operating profit increased 18.7 percent at $74.8 million in 2006 compared to $63.0 million in 2005. Hard Rock saw continued growth and improvement in all four business divisions comprising company-owned cafes, franchise cafes, hotels and casinos. Indeed, the passion for rock music combined with innovative marketing ideas spelled sustainability and growth for HRC. Hard Rock has elevated its cafes to the level of contemporary art, not only in the aspects of live music performances, recipe formulation and execution, but also in the realm of packaging and marketing, marked by a descriptive menu summoning all the senses, as well as the intellect. The aesthetic approach to marketing has proven productive as shown in the increased sales and patronage of satisfied customers. Likewise, it has also developed a set of value-added features as a result of the art and marketing synergy, such as having a live music concert in the caf. Aside from being nourished physically, the customers value the psychological-spiritual experience that music provides. The Hard Rock Caf can be considered a 21st century paradigm for innovative restaurant business where nourishment is a totally fulfilling experience. The customer goes to the caf knowing his evening will be worth the sumptuous food and the "brooding yet soothing music that shook with the raw pains and joys" Before going home, he can buy a "piece of the hard rock moment" (perhaps a t-shirt or a wristwatch for himself or a loved one whom he wished was with him at that particular night) from the Rock Shop, knowing that part of the money will go to a worthy cause because HRC has a corporate social responsibility program. This is having a good time with a social conscience and fulfills every human being's deepest desire to be happy for himself and at the same time do good for another human being. Indeed, this is innovative marketing at its best. References Bowen, John T. & Makens, James C. 1996. "Increasing Restaurant Profits with Product Merchandising," Cornell Hotel and Restaurant Administration Quarterly, pp. 72-79, Cornell University, USA. Eats. Retrieved March 26, 2007 from http://www.hardrock.com. Hard Rock Caf. Retrieved March 26, 2007, from http://en.wikipedia.org/wiki/Hard_Rock_Cafe. Lieberfeld, Daniel 1995. "Million-Dollar Juke Joint: Commodifying Blues Culture," African American Review, Vol. 29 Issue 2, p.1. Retrieved from Questia Media America, Inc. online library at http://www.questia.com. Proctor, Tony 2000. "Marketing Mix," Strategic marketing: An Introduction, Routledge, London, p. 212. Retrieved from Questia Media America, Inc. online library at http://www.questia.com Restaurants & Cafes Industry Profile. Retrieved March 26, 2007, from http://biz.yahoo.com/ic/profile/eating_1442.html. Rock Music. Retrieved March 26, 2007, from http://en.wikipedia.org/wiki/rock_and_roll. Wansink, Brian; Pinter, James and Van Ittersum, December 2001, "Descriptive Menu:Labels' Effect on Sales," Cornell Hotel and Restaurant Administration Quarterly, pp. 68-72, Cornell University, USA. Read More