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Advice You - How To Avoid Restaurant Sales Stagnation
Restaurant Marketing experts contend that there are four ways in which hospitality businesses can improve their financial performance. None of these ways are mutually exclusive, so you can try any combination of these four variables at any given time a
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
nd in any order of importance:
Increasing sales volume (getting more customers to your venue)
Increasing price (put up your prices on your menus)
Cutting costs (decrease your food, beverage and wage costs)
Increasing the average spend (
Increasing sales volume (getting more customers to your venue)
Increasing price (put up your prices on your menus)
Cutting costs (decrease your food, beverage and wage costs)
Increasing the average spend (
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
get your customers to buy more every time they buy of you)
Combining price and sales volume will no doubt post increased revenue. Cutting costs will also result in savings.
Restaurant marketers (ie you the business owner or manager) mistakenly as
Combining price and sales volume will no doubt post increased revenue. Cutting costs will also result in savings.
Restaurant marketers (ie you the business owner or manager) mistakenly as
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
sume that the only means of increasing sales is to net more customers. While its true that selling to more people will definitely make your sales go up, there can also be several other, more innovative ways of increasing turnover, such as increasing fr
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
equency of sales to the same customer or making higher value sales to him/her.
It does follows that turnover also increases when customers spend more each time they buy from you (increasing spend) and when they do it more often (increasing frequency).
It does follows that turnover also increases when customers spend more each time they buy from you (increasing spend) and when they do it more often (increasing frequency).
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
McDonalds used this technique to great aplomb when it taught its sales force to prod customers with the seemingly innocuous poser: “Would you like fries with your burgers, please?” A simple question like that, marketers testify enabled the snack food
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
giant to increase its turnover worldwide by $19 million a day!
Hence the four variables that impact sales in any business are:
1. The Prospects -, i.e. the number of people who express an interest in doing business with you (people that call you or l
Hence the four variables that impact sales in any business are:
1. The Prospects -, i.e. the number of people who express an interest in doing business with you (people that call you or l
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
ook at your website etc...)
2. The Conversion Rate, i.e., how many actually buy from you and become your customers
3. Their Average Spend, i.e. the average amount that each customer spends when they buy from you.
4. Number of Transaction
2. The Conversion Rate, i.e., how many actually buy from you and become your customers
3. Their Average Spend, i.e. the average amount that each customer spends when they buy from you.
4. Number of Transaction
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
s or Frequency of Sales - The number of times, on average, that customers buy from you in a year
If we were to express these four variables as a mathematical equation, it would look somewhat like this:
Sales = Prospects X Conversion Rate X Averag
If we were to express these four variables as a mathematical equation, it would look somewhat like this:
Sales = Prospects X Conversion Rate X Averag
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
e Spend X Number of transactions
Clearly, sales can be increased by improving any combination of these four variables. Now let us examine each of these sales drivers more closely.
Increasing Sales, i.e. Increasing Conversion Rates
Buying decisi
Clearly, sales can be increased by improving any combination of these four variables. Now let us examine each of these sales drivers more closely.
Increasing Sales, i.e. Increasing Conversion Rates
Buying decisi
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
ons are seldom made on the first contact. In fact, according to the National Sales Executive Association, US, you can increase your sales by up to 80% simply by following up on the same, old customer!
Here are some statistics from their survey:
2% of
Here are some statistics from their survey:
2% of
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
sales are made on the 1st contact
3% of sales are made on the 2nd contact
5% of sales are made on the 3rd contact
10% of sales are made on the 4th contact
This implies that 80% sales are made on the 5th-12th contact! In other words,
3% of sales are made on the 2nd contact
5% of sales are made on the 3rd contact
10% of sales are made on the 4th contact
This implies that 80% sales are made on the 5th-12th contact! In other words,
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
that’s the amount of time, energy and resources that you have to spend on ensuring full conversion rate from every prospect!
Increasing your conversion rate can increase sales substantially, especially if you are starting from a low base. So how many
Increasing your conversion rate can increase sales substantially, especially if you are starting from a low base. So how many
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
pieces of marketing do you need to send from your restaurant?
Increasing Frequency
This is by far the most powerful sales driver. You have already attracted and converted a prospect. A more formidable challenge is selling to the same customer ov
Increasing Frequency
This is by far the most powerful sales driver. You have already attracted and converted a prospect. A more formidable challenge is selling to the same customer ov
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
er and over again. This is well worth your time and effort as research indicates that it costs six times more to attract a new customer than it costs to re-sell to someone who has bought from you before. So, even if you are unable to sell to the same c
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ustomer, do lot of and cross selling. Turn him/her into your brand ambassadors and through him/her sell to his/her friends, family and colleagues.
Increasing Spend
In marketing parlance, this would imply up-selling. The Average spend from a cust
Increasing Spend
In marketing parlance, this would imply up-selling. The Average spend from a cust
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
omer can be increased both by cross-selling and up-selling. Cross selling simply means selling customers a different but related product, in addition to what they asked for.
This is as simple as up selling to a more profitable and higher prices menu i
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
tem.
Increasing Price
Realizing that the increasingly affluent and demanding consumer now comprises a very large spending force at the top end in all developed economies, clever restaurateurs have subtly began to increase price on the same value
Increasing Price
Realizing that the increasingly affluent and demanding consumer now comprises a very large spending force at the top end in all developed economies, clever restaurateurs have subtly began to increase price on the same value
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
of product. This strategy is being effectively deployed across sectors in the food and beverage industry.
Price increase however is a risky strategy and should be resorted to only when there is a perceived (if not real) enhancement in the value of th
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
e product in the consumer’s mind. This can very effectively be done through a media blitz, before and after announcing a price hike that presents you as a very exclusive, well differentiated brand from the low-priced, run-of-the-mill competing products
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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