By the end of this chapter, you will be able to:
These skills will help you create smart marketing plans that attract the right customers and boost success in the hospitality industry.
Developing a robust marketing strategy is essential for hospitality professionals aiming to attract and retain customers in Kenya's vibrant food and beverage industry. This chapter explores the critical decisions involved in marketing and the strategic approaches that food and beverage managers can adopt to position their services effectively in a competitive market. Understanding how to make informed marketing decisions and implement appropriate strategies helps businesses respond to changing customer preferences, economic conditions, and technological advancements.
In the dynamic field of food and beverage management, understanding key marketing terms is essential for developing effective strategies that respond to consumer needs and market conditions. Kenyan hospitality businesses, from boutique hotels in Kisumu to large restaurants in Nairobi, rely on accurate market information and awareness of emerging trends to maintain competitiveness and enhance customer satisfaction. Example: before opening a second branch, the owner of a chicken and chips restaurant in Kitui collected data on rival outlets, rent levels and student numbers at the nearby university.
The marketing environment is the set of forces and actors outside the marketing function that affect management's ability to build and keep good relationships with customers. It has two parts. The micro environment consists of forces close to the outlet that it can influence to some extent: customers, suppliers, competitors, intermediaries, employees and the public. The macro environment consists of wider forces that affect the whole industry and that the outlet cannot control: political, economic, sociocultural, technological, environmental and legal factors. A change in the environment, such as an increase in fuel prices or a new competitor, can turn a successful menu or price into a failing one, so managers must scan the environment continuously.
Marketing information is the data, facts and opinions collected, sorted and analysed to help managers make marketing decisions. It comes from internal records (sales, bookings, guest complaints), marketing intelligence (everyday observation of competitors and trends) and marketing research (formal studies such as guest surveys). A marketing information system brings these together so that the right information reaches the right manager in time to act.
Competitors are other businesses that seek to satisfy the same customers' needs and therefore compete for the same spending. They include direct competitors offering similar food and drinks to the same guests, indirect competitors offering a different product for the same need, and substitutes such as home cooking or supermarket ready meals. Knowing competitors' prices, menus, service and promotions allows an outlet to position itself clearly and respond to their moves.
Market strategies are the long-term plans an organisation uses to reach its marketing objectives. They state which target markets to serve, how the outlet will position itself against competitors and how the marketing mix (product, price, place and promotion) will be used. Examples include entering a new market segment, competing on low price, offering a distinctive experience, or concentrating on one niche such as conference catering. The main types are covered in topic 2.4.
Market information refers to the collection, analysis, and interpretation of data related to customers, competitors, and the overall market environment. It plays a critical role in guiding decision-making processes for food and beverage managers who need to understand consumer preferences, pricing strategies, and competitor activities in Kenya's hospitality industry. For example, a hotel in Mombasa may use market information to adjust its menu offerings according to local tastes and seasonal demand.
Customer information describes who the guests are and how they behave: their age, income, occupation and location, what they order, how often they visit, how much they spend, how they pay, how they found the outlet and what they think of it. It is collected through reservation and point-of-sale records, loyalty programmes, comment cards, online reviews and conversations with guests.
Competitor information covers who the competitors are, their menus, prices, portion sizes, service standards, opening hours, promotions, strengths, weaknesses and plans. It is gathered by visiting competitors as a guest, reading their menus and social media pages, following their reviews, and listening to suppliers and staff who have worked there.
Industry trends are the general directions of change across the hospitality and food service sector, such as growth in online ordering, demand for healthy and local food, cashless payment and sustainable practices. Information on trends comes from trade magazines, industry associations, trade fairs, government statistics and international hospitality reports. It helps managers adapt before competitors do.
Market size is the total number of customers, or total sales value, in the market an outlet serves at present; market potential is the maximum sales that could be reached if all possible customers bought. Estimates use population figures, numbers of offices, schools and hotels in the area, tourist arrivals and average spending per person. Example: a caterer considering school contracts in a sub-county multiplies the number of boarding pupils by the expected meals per day and the price per meal to estimate potential annual sales.
This is information on how products reach the outlet and how the outlet's food and services reach guests. On the supply side it covers available suppliers, their prices, reliability, delivery times and quality. On the distribution side it covers delivery platforms, travel agents, event planners and the costs and reach of each channel. Disruptions such as seasonal shortages of vegetables or poor roads in the rainy season affect menus and prices.
Customer information is the foundation of every marketing decision, because an outlet can only satisfy guests whose needs, habits and opinions it understands. Without it, menus, prices and promotions are based on guesswork, and money is spent attracting the wrong guests or offering what nobody wants. Well-kept customer information also lets the outlet treat each guest as an individual, which is a strong source of loyalty. Example: a lodge near Lake Baringo records each returning bird-watching guest's room preference, early breakfast time and favourite dishes, and has them ready on the next visit.
Emerging trends in food and beverage marketing refer to new developments or shifts in consumer preferences, technology, and market conditions that influence how hospitality businesses operate. Kenyan food and beverage managers must stay abreast of these trends to innovate and meet evolving customer expectations, such as the growing demand for plant-based dishes or digital ordering platforms.
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Create a free accountThis chapter began by clarifying key concepts related to hospitality service marketing, including the definition of market information and the identification of emerging trends that influence customer preferences and industry dynamics. It then explored the importance of market segmentation as a strategic tool, explaining how dividing the market into distinct groups allows hospitality businesses to tailor their services effectively to meet diverse customer needs. The discussion progressed to marketing decisions, emphasizing the critical choices managers make regarding product offerings, pricing, promotion, and distribution channels to achieve competitive advantage. Finally, the chapter examined various marketing strategies that guide how hospitality enterprises position themselves in the market, attract target segments, and sustain customer loyalty. Together, these elements form a comprehensive framework for developing an effective hospitality service marketing strategy that responds to changing market conditions and customer expectations.
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