Hard Rock Cafe -Marketing analysis

Hard Rock Cafe- PUNE

With over 175 venues in more than 53 countries around the world, including 139 cafes and 16 Hotels/Casinos, Hard Rock has become a truly global phenomenon.                                                                               Found in 1971 by two Americans Isaac Tigrett  and Peter Morton intended to fill the need not met by London dining since its inception, Hard Rock has remained extraordinarily faithful to its original intentions. Its rock 'n roll sensibility - an HRC birthright - remains at the very center of all Hard Rock restaurants and all expansion efforts

undertaken by Hard Rock International. Classic American food, served up by a capable, caring and attentive wait staff, is still the "order" of the day at HRC. 

In India it is located in the major cities of Mumbai, Delhi, Chennai , Bangalore, Hyderabad  .

In Pune introduced in 2009 it is located at

 Address: Hard Rock Cafe Pune

Plot No. 81/82 East Main Road

Koregaon Park Extension .Pune  411036

http://www.hardrock.com/locations/cafes3/cafe.aspx?LocationID=512&MIBenumID=3

                                                        CUSTOMER VALUE

HRC defines ‘quality’ good food quality, good music and good service.

• Hard Rock café is a classic American pub, popular for its live band performances (esp. rock music lovers), great food and drinks along with courteous service and lively and fun ambience. Hence customers who visit the café expect the above criteria’s to be met and much more                                                                                                                  
•      Hard Rock sell full rock and roll experience                                                                                                                      
•      The display of valuable antique rock and roll personal belongings of singer and bands is unique and add value to the customer  Its unparalleled memorabilia collection, which consists of more than 70,000 pieces that are rotated from restaurant to restaurant, provides the world's most comprehensive "visual history" of rock 'n' roll. These treasures include an awe-inspiring collection of classic guitars 
•  Instruments, posters, costumes, music and lyric sheets, album art, platinum and gold LPs, photos and much more, from Jimi Hendrix's Flying V guitar to John Lennon's handwritten lyrics to "Help" (his favorite Beatles' tune) to one of Madonna's now-classic bustiers. And, like the true "living museum" that it is, Hard Rock's memorabilia collection remains very much a work in progress, constantly expanding and deepening as new music - and new music history - is made every day.

	C reate value	C ommunicate value	Delivers value
Place	Located at  koregoan Park      one of the area in Pune              Main are where upper middle class people hang out and shop       located near the airport	Hub of the city      Business centre close by      Tourist           area Close to offices, colleges and schools	Attracts after work and college people      Welcoming ,friendly and lively place to be in       Perfect ambiance
Promotion	Commercials on TV       Billboards       Life concert       Auction     Special nights for paying tribute to world best  rock band.       Getting international artist              Its unparalleled memorabilia collection  displayed	D iscounts       Re deemable price      Vouchers      Membership program     Hard Rock Gift cards     Benefit like beer drinking competition and burger eating       Hard Rock Gift cards        opinion from members in Facebook of the poduct	M aintains membership with customers.      Bonding with the brand and regular visitors
Product	Service      A rock and roll experience      A merican dining centred	Have a unique experience  different from the regular experience	Customersatisfaction and permanent members
Price	happy hours      Breakfast buffet      Tokens         vouchers	upgrading menu           Innovative presentation	satisfaction dine with rock and roll experience.

                                       

The marketing mix

  consists in total of 4 elements (Product,Price, Place, Promotion) which are oftereferred to as ‘the four Ps’. One of those four Ps is “Place”:
Place represents the location where a product can be purchased. It is often referred to as the distribution channel through which goods and/or services are moved from the manufacturer/service provider to the user or consumer. It can include any physical store as well as virtual stores on the Internet.
In our case the Hard Rock Café operates in 38 countries throughout the globe and all practice alike

Promotion

The Hard Rock Café uses different types of media to promote them self. They use billboards in crowded areas, short commercials on television, promotional events, organize meetings and auctions, a website for every store and a general one with extra information about the history and upcoming events, live concerts in the Café’s, Hotels or Casinos, actions with famous people (examples will follow later) and the most important one of all; they use the people who like to visit the Hard Rock Café, to create a worldwide known brand. They even organize weddings and parties in a Hard Rock theme.

These people are the fans of the Hard Rock Café; they like the lifestyle and were the merchandise with the brands on it. They want to see all the Hard Rock Cafés all around the world. Some people even go on a Hard Rock Café tour. These fans are very important and the Hard Rock Café offers them an All Access system. This system uses member cards. When a member spends money at the Hard Rock Café he/she gets points, with these points he/she can get free merchandise, drinks or food or a discount. When people spend more than $25 they always get a free gift. Sometimes this is a pin of a glass.

Examples
Some upcoming events of the Hard Rock Café are the pre party for U2, a live concert of Paolo Nutini and Bruce Springsteen and different CD releases. At this moment the Hard Rock Café has a collection of clothes created by Bon Jovi.
As you can see the promotion marketing of the Hard Rock Café is very important. They stay updated and through this strategy they keep the concept working.

Product
The product of the brand Hard Rock exists of 4 different things; the Casino’s, the Hotels, the Café’s and the merchandise stores.
There are 5 Hard Rock Hotels, 6 Hotels/Casino’s and there working on 7 new Casino’s worldwide. The hotels are of a high standard and they offer more than regular hotels. For example they offer a special package for people who want to celebrate an anniversary or a birthday.
The Hotels/Casino’s offers the same high standard rooms but you can also find stores and a spa.
There are 150 Hard Rock Café’s at the moment and they are working on 13 new café’s. The Café’s offer typical American food and drinks. In every Hard Rock Café you can find a store with merchandise. The collection that they offer is made of high standard material.

Pricing
The Hard Rock Café sells expensive clothes. When you buy a T-shirt or trousers, they are expensive, but what you get back is priceless. Merchandise that you buy there, you can use it for years and years and after years the merchandise that you have bought is still good.
The prices for events and concerts start average from $50 up to $150. This is normal for concerts. So The Hard Rock Café isn’t that expensive regarding the concerts and events prices from other places where they find place.
Regarding the prices in the café, it is expensive. For a glass Coca-Cola you pay like $3 or $4 dollar. But for food you pay a lot but you get in return a lot of food. So that is in proportion with the price.

People (personnel)

For a company, the personnel are of main importance, to be able to sell their concept, their products. Very often the company chooses to train their people to sell products and treat the customers the way, they think that fits to their concept. This is also with the Hard Rock Café.

New personnel of the Hard Rock Café are selected on several points as friendliness, then being open to compliments as well to complaints and how they react on certain situations. Every single person who works for Hard Rock Café is trained to stand for the concept (examples will follow later) and to give the customer a once in a lifetime experience, which they will remember. Every visit to each Hard Rock Café is different and exciting. Whether you visit is for the first time or if you visit it on a monthly basis.
When thinking of Hard Rock Café personnel, this list describes then a whole:
· Friendly
· Patient
· Open minded
· Sustainable
· Profit
· Service

  
Cafe Pricing 

 

•   \ Skimming is what they do at HRC
•     The café evolves and updates their menu and special offers for the day depending on popular demand and customer liking.
•      Happy Hours at Hard Rock Cafe Pune                                                                       What happens when one of the city’s best beef burgers becomes cheaper by a 100 rupees? You get the Happy Hours at Hard Rock Café.Targeting young professionals, for end of the day meetings or even just to come and relax with this wee-bit pocket friendly offer, Hard Rock Café brings a selection of premium food and beverages to you from 4pm to 7pm every week from Monday to Friday.

With beers starting at 210 INR for three bottles, you can choose from various other alcohols based drinks, including a few imported drinks.

Although the chicken wings are missing from the selection for the Happy Hours, the Legendary 10 oz. Burger available at just 260 INR makes up for everything

                      Services and Services Marketing

•   service providers being the bartenders, waiters and sales person at HRC are highly trained
•   The café targets youth, upper and upper-middle working class.
•      The café values customer feedback and expects all customers to complete a feedback register before they leave the café to understand customer’s preferences.
•  HRC have high value preposition everywhere a customer goes in the world he/she is treated with the same way the company is able to manage its value delivery system   
•      The dance performance of all the waiters every night on YMCA song to create energy.          Special nights for paying tribute to world best rock band.   
•      Getting international   acceptance

  Competitors

Globally after 20  years of its inception it has a competitor when Robert Earl a former general manager of HRC international started with Planet Hollywood.

The entry of a major competitor in this arena ignited the period of intense competition Morrison Hotel, Planet Hollywood, Fashion, Rainforest Cafe are the International competitors came into being in 1991

Most lounges,bar and restaurants with gigs  in the cities where had rock cafe are located are their Upscale restaurants  .
                                                                                                                                                 

       Indirect competitors would be

•     expensive restaurants 
•      bars 
•      lounges                                                                                                                                                            In Pune -Barbeque nation, Prems, Malaka spice, High-spirits, Terttulia                                 

  

    

    

    Customer buying decision

    customer

•      The HRC became a reflection not only for the founders passion for burgers,beers and rock and roll music but it grew a generation of rock and roll fans and eventually an entire culture of fad , fashion and music lovers.
•       Has always been and continue's to be music centric.                                                                                    At HRC a customer's buying decision differs from one individual  to another a customer who would feel the need for an evening to enjoy good rock music with  a doze of good continental food which contain a variates of items and drinks  with distinct US style of Burgers,beer representing a Unique and Growing popular culture.
•     Indians are famous to adapting and following western culture trends and lifestyle 40% of the youth are rock music lovers and have acquired the lifestyle and taste of food with alcohol.  chill and enjoy  with friends after work, during the weekends was their need it can vary from middle age men and women to youth who have just started working and earning . These customers contributed to 70% of HRC revenues. 
•      HRC  as a brand  advertise in billboards and does a lot in social media such as Facebook, twitterof  if any service information is needed it is given in their websites. But even more successfully through word of mouth from family,friends and neighbour as well as reviews and blogs.
•      Those who would prefer soothing music in the atmosphere and price which is reasonable would evaluate tan alternative.
•     At HRC what makes a customer loyal and or attached is the post purchase behaviour.Their experiences if expectations are met or not.Those who would come back are the  People who are well aware of the brand and the quality they offer. 

   Industry life cycle and Brand life cycle

   Hard Rock cafe is at Its Maturity level globally. 

•     Having a strong point-of -differences . HRC was the first unique brand that have a combination of food, theme and mechanised in a unified settings creates a strong favourable, unique associations is a good challenge but essential.

Globally after 20  years of its inception it has a competitor when Robert Earl a former general manager of HRC international started with Planet Hollywood.

The entry of a major competitor in this arena ignited the period of intense competition Morrison Hotel, Planet Hollywood, Fashion, Rainforest Cafe are the International competitors came into being in 1991

•     Since its inception in London from June 1971 till date 2011 taking into account only the Cafe not the other type of venue like Hotels, Casino and Retail (clothing/accessories)
•     Out of the 217 Cafes that opened globally all over the world 139 are still opened and more yet to open shows   the successful  global penetration of the Industry. 
•     Considering the every Industry has new entrance but other venues like casino,hotels,retail take the industry back up and pushes the company through promotions and expansion. 
•       Lets cite a situation when competition is fueled by outside investors interested in capturing portion of the wealth created by hyper themed restaurant segment Principal amongst them was wall street ,provided much of a huge segment to invest. 
•       In a few short years however the novelty of these restaurants wore off. This shake-out lefta few players. 

  The Cafes in PUNE is doing tremendously well with increasing sales it is at its growth stage 
     Penetration of HRC across the major cities in is highly appreciated and needed. The segmented and target groups are met. 
     Through musical & apparel collectibles and gifts, live music bars, and its award-winning web sites.

•     The menu is constantly modified and reinvented to conform to product availability, satisfy customer's demands and follow regulatory requirements world over.     
•      The Hard Rock Memorabilia collection has to be kept updated at all times as new music trends, which form the basis for the collection, are always changing everyday
•       The collection has to be constantly maintained to keep it from undergoing a decline. 
•      The establishment also builds new hotels and casinos as it expands world over.
•       The new businesses undergo the product life cycle but the company incorporates life cycle extension strategies so as to keep their business from a decline and keep on performing 

Customer Behaviour

  cultural_ the target audience being the upper-middle class,working class  with similar taste in music practice some sets of values and preference.  

     People from this class and groups behave alike more westernise and come for a different taste for food apart from the regular daily Indian                                                         

  

  Social_They come to HRC after a hard day of work and college to hang out with friends and family

  

  Personal_After questioning 50 regular HRC customers 30 of them go for their love of music to relax and enjoy good music and bands 10says they  go for food and lively ambiance to distressed themselves .The other 10  says they go there because their friends go there (pressure groups).

      

When  ask if they did revisit the place 99% said yes.

   

STP Analysis

   Segmentation_ International (HRI) is developing its global image as a luxury brand aimed at tourist seeking a nontraditional yet luxurious experience

        Produces different products for different population segments and as the HRI product line grows so does the variety of segmenting markets. 

       In Pune the food which are different to Indian taste buds give and drinks a collection of whole new drinks to taste.

       Souvenirs such as pins and glassware have been marketed to repeat buyers with a collecting habit.

      Collectors are frequent buyers and they are willing to pay higher than market value for products. 

       Their personality for collection is a sought after trait for marketers. 

       Pin and glassware enthusiast often obtain valuable merchandise particularly city branded items though trading and selling. 

     Collectors are emotionally attached to the product and brand. They are heavy users or consumers because of the high volume and frequency of their purchases.

     HRI tries to create heavy users by offering loyalty programs.

       Pin enthusiasts have their own rewards program (The Pin Club), separate from HRI other frequent buyer program (The All Access Program).  With the Pin Club Card, customers get 10% off every purchase and can preview and purchase specialty pins before they arrive in stores.   

      Hard Rock LIVE! is another new product from HRI. Hard Rock LIVE are music venues which have arena style concerts. This product’s target market changes depending on the artist or group playing at the venue. A very established artist like B.B. King will attract an older crowd and an underground rock band would attract young unmarried people without dependents.  They are highly involved in music, they frequent music blogs and use social media to follow their favorite bands.

    Target_

     The target market for cafes are vacationing young to middle aged married people with and without dependent children.

    This particular group has a large disposable income.

     College students would come often to enjoy  and evening and night with their friends.

PPositioning_Exclusive continental restaurant and food chains . 

     HRC was the first unique brand that have a combination of food, theme and mechanised in a unified settings. 

    http://www.hardrock.com/locations/cafes3/menu.aspx?LocationID=512&MIBenumID=3

    provides exlusive on the  

    Entertainment

    Ambassador of Rock music 
                                                 
                             

                                           Sustainable and holistic Marketing

  Purpose - This paper is a literature review of new marketing paradigms and its possible 

   Design/methodology/approach –  analyzes the literature  about new marketing 

   paradigms, sustainable marketing. The analysis shows the shortcomings 

   of traditional methods and points out the key elements of a new approach. 

   Findings - The new marketing paradigms focus on customer and stakeholder interaction through 

   networks and the co-creation of value and experiences. Sustainability is inherent in developing 

   competitive destinations and products that have a value for all stakeholders can be regarded as 

   sustainable. The ideas and approaches of the new marketing paradigms can therefore be regarded 

   as a great opportunity to develop long term sustainable destinations and products based on more     

   holistic marketing strategies and plans.

   Research limitations – The paper is exploratory. It presents and discusses current work and new 

   perspectives.

   Practical implications – Analyzing  experiences and focusing on creating value before, 

   during and after the experiencecan increase the value and therefore customer satisfaction. If all 

    stakeholders in the destination focus on creating value more sustainability will be achieved. 

   Originality / value – Theories and practices of sustainable marketing are not adapted to 

   changing demand and supply patterns. New ideas and concepts are fragmented and not evolved 

   into new approaches. By exploring these ideas the paper suggests further directions for 

   theoretical and empirical research. 

    Key Words: Sustainability, Destination Marketing, Value, Co-creation, Experiences

Product levels

  

   core benefit_ food, beverages and music

   Basic product_ restaurant , Music bands, Bar, Services

    Expected product_ good food, good brands to drink, great bands                                  

                                    and an excellent service

   

   Augmented product_happy hours, complimentary snacks with                                                            

                                      drinks, hardrock badges and wrist bands when 

                                      bands come and perform at cheaper price.

   

   Potential Product_home delivery, International bands coming in, 

                                  keepin in autction the displayed memorabilia        

                                   collections,bringing in the best of imported 

                                     alcahol.

                                                       

                                          

                                       Product hierarchy

   need family_     Americanised and unique way of dining

                

  product family_   good bands, good chef,good d'js, friendly bartend,

                              waiters and sales person

  product class_  exclusive rock and roll experience

  
  product line_ all Hard Rock Cafe globally

  product type_expensive restaurants

  poduct item_ hard rock cafe
                    

                                Product Mix  

     product mix : consist of also be corporate night , ladies night, the many band who come to perform etc.

                              Sales Management

    HRC continues to grow Since its inception in London from June 1971 till date 2011. Internationally wherever it set its foot in it grows int chains of  Hotels, Casino and Retail (clothing/accessories)

   In India apart from Cafes hard rock is linked with retail clothing and accessories pushing its sales even more.

   This individual will direct Cafe sales and marketing efforts ensuring that the business is financially successful and that it represents the brand identity in its entirety, therefore positively impacting  global operation.

   Essential functions

•     People - To provide a positive “employee life cycle” for all staff members during their tenure with Hard Rock
•     Guest Experience - To provide an authentic experience that “rocks” for Hard Rock guests by planning and executing irreverent events that represent Hard Rock’s ability to meet a wide range of guest needs and expectations
•     Profit - To source, book, and execute events that are profitable to Hard Rock and experiential to the guest ensuring their repeat business
•     Sales - To grow the business by using innovative sales and marketing concepts

                                      Role of Marketing Management

•      Marketing Mix relating with the 4P's have great influence on customer value and co relating to achieving the brand much stronger and outstanding world wide
•      concept of perceived value is delivered greatly
•       The company has distinct departments which have clearly outlined duties and responsibilities. These include: Cafe Operations; Franchise Operations; Finance; HR; Business Affairs and General Counsel; Design and Development; Merchandise; and Hotel and Casinos. These segmentation in responsibilities ensures that the products are developed in segmented components, adding flexibility in production and marketing. As an example, the menus that the company has are segmented according to regions. The overall result is the close adaptation of the menu to regional preferences and the customers get more satisfied (Hard Rock, 2011).

      

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