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FOOD AND BIVERAGE - Essay Example

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Best Practices in Food & Beverage: Co-branding 1. Introduction The Food & Beverage department (F&B) at hotels has evolved significantly over the past decades. Various studies and marketing techniques were employed to the department in order to improve the operations such as developing menu items or creating unique offers (Miller)…
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FOOD AND BIVERAGE
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Download file to see previous pages In order to cut-down costs and gain significant revenue, companies in the hospitality industry prioritized research-based branding strategies, to their specific target group in order to acquire corporate identity and quality service (Morgan, Pritchard and Pride). Distinguishing their brand image and differentiation of their product became of primary importance for all hospitality firms (hotels, restaurants etc). In the recent years, many international hotel firms have turned to a major branding strategy called co-branding. In this concept an existing restaurant is incorporated within a hotel, a practice considered to have been started by Victor Bergen during the 1930’s, establishing fast food outlets in hotels on the highway which had a customer base of American families travelling away from home. The incorporation of this model to the modern hotel industry has been observed to change dramatically both consumer attitude and hotel management (Rutherford). This review plans to analyze the current position of strategic co-branding in the hospitality sector and how the tourism industry could be benefited. Furthermore, possible problems are discussed and recommendations to potential managers wanting to employ strategic co-branding techniques are given. 2. Co-branding definition While co-branding doesn’t have a single definition, it generally involves the strategic alliance of at least two firms (Knowles, Diamantis and El-Mourhabi). It has also been described as “a form of cooperation between two or more brands with significant customer recognition, in which all the participants’ brand names are retained” (Blackett, Boad and Interbrand). Furthermore, Hilyer (Hillyer and Tikoo) explains the definition of co-brading when a product features more than one brand name. Among all these definitions, some common characteristics can be identified. The fundamental part in co-branding is the requirement of two or more brands that are widely recognised while the brand name is kept intact and the duration of the whole project varies between medium to long (Kippenberger). Therefore, co-branding can be interpreted into reality in two manners: either joining two brand names together in forming a new or unique product or having two recognised brands under the same space, such as T.G.I Fridays within Holiday Inn hotel (Hahm and Khan). 3. Notable examples of Co-branding Based on the model used in the early 1930’s, with Bergen’s restaurants and hotels, the hotel industry began to employ co-branding strategies when it was faced with unprofitable sales. Today a large variety of hotels and restaurants use co-branding as a means of enhancing distribution of products or services together with increasing the range of their customer base, helping them to reach maximum profitability (Boone). Marriot Hotels is considered on of the pioneers of the chain hotels to be the first to implement an internationally recognised brand such as Pizza Hut in 1989 (Boone; Kippenberger). Following their example, the co-branding of TGI Fridays within Holiday Inn hotels turned out to be a financial success. After the conversion of the Pennsylvania Holiday Inn restaurant to TGI Friday’s, the increase from $450,000 to $4 million within the first year only ...Download file to see next pagesRead More
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