Question

Topic: Strategy

From Non-necessity To Necessity

Posted by Anonymous on 250 Points
Hi we are a company that provides table-lighting solutions in the F&B industry. Our products are candle holders with many different styles and inside we use a real flame. Some restaurant owners think they do not need to create a good atmosphere to have good business. Candle lights on dining tables are generally perceived as non-necessity products. our company is planning to launch a marketing programme to 'brainwash' the market so that they will create a feeling that good atmosphere does help increasing their revenue. its like those health food supplement using intensive advertising campaign to make consumers feel that without those , their bodies will deteriate. so we do not have a big budget, what would be your advice?

many thanks in advance!
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RESPONSES

  • Posted by CarolBlaha on Accepted
    First I'd change the core belief that you are brainwashing the market. It implies you yourself don't believe in the product and its merits. Few people can sell anything they don't believe in.

    Restaurant owners telling you candles don't sell food aren't telling you the real issue-- its only a stall. I bet when your salespeople walk back in there-- some already have bought similar products- from someone else. Its a good objection to send the seller packing-- obviously one that works. Your people probably gave them the idea-- they just weren't there when they were ready to buy.

    Today customers do pay more for the entire dining experience. A recent Harvard Business Review mag that I like to reference says they'll pay about 30% more for an entree for it. (I just moved and can't put my hands on the copy). But its not the only reference out there. Its why restaurants invest in location, pricey decor, china and silver. If it didn't we'd all be eating our lobster on paper plates on folding chairs.

    There are those restaurant owners who will never "get it" and their customer base may be those who don't care about the experience-- or the quality of food-- they just want "filler" as I call it. Just sit in the parking lot of some cheapo "all you can eat" place and watch them file in.

    If you don't have a budget, you need sales and need to be in front of those buying your candles. You need to be lazar sharp in your marketing. Cause people are buying them every day.

    Sell Well and Prosper tm




  • Posted by Jay Hamilton-Roth on Accepted
    First, the market might already understand that table-lighting does improve the ambiance, but maybe they don't feel that it applies to their restaurant. If you've got the data from studies showing increased spending, by all means shout it out. If not, commission the study.

    Another possibility might be to show the decreased electric bill they'd have would pay for the lights in no time. Then it's a simple ROI investment.
  • Posted by Levon on Accepted
    I would conduct a few case studies with a few restaruants under a pilot program to test your theory that it does increase restaurant revenue by increasing percieved value and prestige and premiumness because the association of candle-light will maybe trigger purchases of bigger ticket items on the menu. Then if the results come back in your favor from the study boast about it.

  • Posted by saul.dobney on Accepted
    I'd worry that you'd be throwing good money away. I'm sure that many restaurants have good practical reasons for not using live flame candles (eg cost, smoke, difficulty cleaning, fire risk etc). I'd also be sure that most restaurants are aware of the need for ambience appropriate to the food they sell.

    But if you want to look at the impact, I'd try to find a chain or small chain of restaurants and see if they would run a split trial for you. Half with your product, half without and look at sales uplift over a month (compared to the previous non-trial month).

    Secondly, I wonder if there are niches - it's very common to see restaurants with candles outside for instance. Also there may be 'special occasion' niches. For instance don't all restaurants need a romantic table setting for Valentines. I'd also be looking at restaurant and interior designers to see if you could get product placement in the restaurant and home features.
  • Posted by CarolBlaha on Accepted
    High end candles, etc are part of the branding of the restaurant. I'd focus on the front end- being part of the tabletop being purchased, working with branding firms on being included.

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