Tourism and Hospitality Marketing: Baby Boomers and Consumer Behavior

This text is about tourism and hospitality marketing. It discusses the purpose, tools, and outcome of the assignment. Part A covers the introduction to baby boomers, their key features and trends, and an analysis of the baby boomer generation. It also discusses the application of segmentation, targeting, and positioning, selecting an effective market segment, and the impact on the hospitality and travel industry. Part A Question 2 covers the buyers’ decision process, including a model of consumer behavior and factors influencing buying behavior. Part B introduces research on tourism and hospitality marketing, including problem definition, research objectives, data collection methods, and research questions. 

Tourism and hospitality marketing
Student Name
2/9/2019

Tourism and Hospitality marketing 1
Contents
Introduction....................................................................................................................3
Purpose of the assignment..........................................................................................3
Tools use in the assignment.......................................................................................3
Outcome of the assignment........................................................................................3
Part A.............................................................................................................................3
2.1 Introduction..........................................................................................................3
Introduction to baby boomers................................................................................3
Key features...............................................................................................................4
Key trends..................................................................................................................4
2.2 Analysis of baby boomer generation....................................................................4
Application of segmentation, targeting, and positioning.......................................4
Selecting an effective market segment...................................................................7
Impact towards hospitality and travel industry......................................................7
Part- A Question 2..........................................................................................................8
3.1 Buyers Decisions Process....................................................................................8
(Source: Poulston, J., & Yiu, 2011).......................................................................8
What is customers’ behavior..................................................................................8
A Model of Consumer Behavior............................................................................9
Consumer buying behavior model...........................................................................10
Factors influencing buying behavior........................................................................11
..................................................................................................................................11
..................................................................................................................................11
3.2. Selection of a destination for your next vacation..............................................12
Application of model with example.........................................................................12
4. Part B........................................................................................................................13
4.1. Introduction to the research...............................................................................13

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Why observational?..................................................................................................13
4.2. Problem definition and research objectives......................................................13
Problem Definition:..............................................................................................13
Research Objectives:............................................................................................14
SMART Principle:...............................................................................................14
4.3. Data collection methods....................................................................................15
Research Questions..............................................................................................15
Data collection intervals.......................................................................................16
4.4. Findings and analysis of data collection...........................................................17
4.5. Conclusions.......................................................................................................17
Recommendations....................................................................................................17
Part B............................................................................................................................18
5.1. Introduction, location and business...................................................................18
5.2. Internal and external analysis............................................................................18
PESTEL Analysis.................................................................................................18
SWOT Analysis...................................................................................................20
5.3. Segmentation, targeting, and positioning of the business.................................21
5.4. Marketing mix strategies 4P’s or 7P’s..............................................................22
5.5. Conclusions.......................................................................................................22
Recommendations....................................................................................................23
6. References............................................................................................................23

Tourism and Hospitality marketing 3
Introduction
Purpose of the assignment
The main drive of this task is to create learning about the travel, holiday business, and
hospitality-marketing sector. In this assignment, we got to know about the baby boomers
generation. There key trends, features and the global impact over the hospitality sector. How
baby boomers segmentation and positioning strategies are broadly explained in concern with
tourism and hospitality sector (Evans, Stonehouse, & Campbell, 2012).
Tools use in the assignment
Then the further explanation goes on to the opportunities and threats and the entire
impact on hospitality and travel industry. Moreover, another part highlights about our self-
owned restaurant objectives, how efficient the staff is? For that, different method analysis is
done in order to gather data and lastly, the suggestion for the same are suggested (Alén,
Losada, & Domínguez, 2016).
The outcome of the assignment
Another part of the project highlights about the self-owned organic restaurant for
which what all opportunities, threat, strength, and weaknesses are listed below other than this
the border aspect in concern with the target market and how the current business deals with it.
In this, the company introduction, with the proper analysis in the shopping areas are also
included with know more about the market (Eckhardt, 2013).
Part A
2.1 Introduction
Introduction to baby boomers
Baby boomers are categorized into a generation in between 1946 to 1964, as they
having a significant impact over the economy. These people were born right after World War
2. They all were born when the United States that was both financially prosperous and
socially turned on its head. Moreover, this growth was all because of their parents the greatest
generation. The characteristics, which the baby boomers possess, are individualist, selfish,
cynical, pessimistic, and socially responsible (Gardiner, Grace, & King, 2014). Moreover,

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this generation is very much hard working and along with this, they also having a strong
desire to enjoy a higher quality of life Brown, et al, 2017).
Key features
The key features of the baby boomers in the context of the travel and hospitality
industry are that they are not too old and actually, they see themselves as being forever
young. Along with this, they are also tech savvy as millennials, who know how to access
technology and value face-to-face interactions more than the other generations (Monhollon,
2013). For them traveling is a necessity not for luxury purpose. Another unique attribute in
the context of baby boomer is that their major focus is on their family (Glover, 2010).
Key trends
Leaving a legacy:
The most common factor, which baby boomers generation and the earlier shares, is
the desire to leave a legacy. This generation is in better economic position than the children
are which lies in the x generation hence by doing this they want to share their experiences
that will enrich their entire family (Huang, & Petrick, 2010).
Challenging the old assumptions:
The main motive of baby boomers is that they never consider themselves old, with the
age of 40-60 which are already retired or approaching to be retired feels that they have much
time, energy and funds to explore and adopts the do new things (Hilt, & Lipschultz, 2016).
2.2 Analysis of baby boomer generation
The baby boomer generation highlights about their community involvement, they
work hard to earn prosperity, they were confident to do any tasks, also work harder to reduce
conflicts and sought a more pleasant way to communicate. Along with this, they also
maintain a positive attitude and are goal oriented which understands the pressure of failure
and work even harder to achieve the goals, which are set out (Smith, 2014).
Application of segmentation, targeting, and positioning

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(Source: Optimove, 2019)
The STP model is popular for highly effective and measurable which is used for
retaining guests. Advantage related to the STP model is to know more about your guests’
behavior, and the ability to prioritize the efforts towards the revenue goals.
Different segmentation strategies
Market segmentation is the procedure to classify the most commercial strategy. As it
is crucial for every guesthouse since segmentation, policy notifies entirety from forecasting to
the valuing strategy. As segmentation of the baby boomers, generation is done into five
subgroups, which are based on their attitude, behavior.
First, one is the status seekers, which are categorized as materialistic, and feels
currency is the finest measures of the achievement. They are more willing to pay for the
brand names because they want to enjoy the finer things in life. For this, the hotel and the
hospitality industry generates more luxury facilities for their guests so that they feel more
relaxed and can fulfill their demands and status requirements.
Secondly, the traditionalist those are conservative governmental, economic and
social views. They having traditional outlooks and beliefs system and are recognized for
Segmentation
Status Seeker Traditionalists Activists Achievers

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following the rubrics. In this particular aspect the hotel and hospitality, industry should focus
on their traditional requirements such as televisions, radio, and direct mail as they completely
neglect online and social options (Law, et al, 2015).
Activists are the general liberal and denote an important sum of time and money to
assist. Activists are worried about the situation, are brand trustworthy, and are monetarily
keen. For such type of baby boomers, the hotel and hospitality industry for maintaining their
similar satisfaction level provides the same level of services so that they remain loyal to their
hotel and hospitality industry (Maier, 2011).
Lastly, Achievers, this cluster accepts technology on an initial basis, and are heavily
involved in the social activities. These types of baby boomers are the first one among their
associates to have new tools and devices. In addition, the hotel and the hospitality industry
should provide last minute booking services to the business clients and must offer
personalized services to attract more of such customers (Law, et al, 2015).
Identify the target market and positioning
After completion of the segmentation of the baby boomers and their strategies now,
the hotel and the hospitality industry need to emphasis on the target marketplace in which
there could be the customers who may not be served by the competitors. In this, the
Differentiated marketing strategy usually involves targeting large numbers of segments. In
the hotel industry, baby boomers who are the status seekers and the achievers are technically
proficient and are well educated, for them the hotel industry should form well-designed
facilities and though want to be connected, as they do not want to waste time to figure out
things. In this response, hotel and hospitality industries, which are installing the user-friendly,
hassle-free in technologies, their major focus is on the accommodation facilities, grabbing
bars that are more aesthetically appealing, outlets that are accessible levels.
Positioning Aspect
The final stage of the target market is product positioning. In this concern, a customer
always compares the products and services the relative competitors. Therefore, the marketers
must build their positioning strategies to improve the customers’ perception of the services,
which a hotel and hospitality industry provides.
In the hotel industry, the positioning strategy, which the company can adopt such as
fulfilling the new travelers, demand by focusing on their personalized demands. The

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company should also be concern about sustainability, health, and globalization. Moreover,
nowadays everything is done on the basis of technology so they should focus on the latest
technologies so that the customers as well the company can feel connected. Hence, all such
aspects generate a higher expectation from the ultimate customers for which they majorly
look for uniqueness and innovation.
Selecting an effective market segment
Opportunities
 Internet facilities which highlight the
techno-world
 Increased revenue for the non-
resident
 There is much scope for further
growth
 Heightened awareness and interest in
green tourism
 Growing demands in some emerging
economies (Vanhove, 2017)
Threats
 Alternative accommodations
 Competitive prices on overseas travel
 Other growing location
 Recession( Economic slowdown)
 Increased rivalry for existing
opponents and new entrances
 Political disturbance in some key
marketplaces
Impact towards hospitality and travel industry
In today’s world, from all the individuals that are exploring, the most who compose
the biggest demographic is the baby boomers generation. By this, the facet of the travel
industry gets to tempt seniors in order to get business. Likewise, by the usage of technology
and cheaper tickets any individuals of baby boomers category compare the best flights and
travel in them (Losada, Alén, Domínguez, & Nicolau, 2016).
As the baby boomers, generation gets withdraw and hunt travel or the other
superfluities, which have majorly affected the travel industry as well as hospitality industry
by generating the steady stream of income for the upcoming years. Within the space of time,
it was noticed that one in all four American has convert the biggest buying demographics for
the guesthouses, conveyance, and entertainment. In the hospitality sector, the demand for
cruise destination visits has increased for the boomer's generation customers. Retirees of this
generation have proven to be more interested than the other age group because the pace is
slow, all free from the worldly affairs no work no stress (Di Pietro, Di Virgilio, & Pantano,
2012).
In an airline context, in recent past, there is a down in size, affordable prices for the
baby boomers generation made them travel more Likewise, airlines of southwest and spirit
have lodged the requirements of the offering zero-frills air travels. Moreover, the tourism

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agency market specialist travels by their occurrence of the native guide make the risk-averse
boomers more agreeable to tourism (Quintal, Lee, & Soutar, 2010). Lastly, this is all because
of more disposable income, fewer children raising responsibility and the substantially
reduced workload and due to all this travel industry is catering to the golden-agers. Through
this, the market trends indicate that the boomers can formulate the profits of the hospitality
and travel industry until the next decade (Zaei, & Zaei, 2013).
Part- A Question 2
3.1 Buyers Decisions Process
(Source: Poulston, J., & Yiu, 2011)
What is customers’ behavior
Customer’s behavior highlights the actions, which a customer take in relation to the
before purchasing of the products or the services for his or her end use. In basic terms, it
highlights the training of how individual clienteles, groups or the organization choice,
purchase, apply or dispose of the ideas, goods, and facilities in order to satisfy their wants
and needs. Along with this, it also reflects the activities of the customers in the market place
and underlines the reasons related to the activities (Biswas, & Roy, 2015).
The study about customer behavior assumes that the customers are the performers in
the market as customers play a dynamic character in the market. Right from starting as an
info supplier from the user to the financier, they play a main character in the conclusion

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process (Shrivastva, 2012). Then by all this, the marketers properly understands the cause of
the customers for buying the particular goods and services, what all products are needed in
the market place, which products are not in demand or become obsolete and what will be the
best way to present goods to the ultimate customers (Nielsen, 2014).
A Model of Consumer Behavior
(Source: Jisana, 2014)
Psychological model highlights about the purchases made and decisions required to it.
The A.H Maslow in his hierarchy of needs gave this entire model. The behavior of the
individual at a particular time is determined by his or her strongest need at that particular
time. This model also displays about the needs, which have the most priority (Jisana, 2014).
Firstly, they satisfy or fulfill their basic needs and then go on to another need or the second
slab of the needs. By this, the purchasing process and the behavior are governed by the
motivational forces (Heitmann, 2011). Motivation starts with the basic needs of the
individuals, which stimulates those needs into actions. Hence, it is that driving force or the
mental phenomena in which one needs arises when one is deprived of something. Lastly, this
process goes on the continuation, which generates tension in the minds of the individuals,
which directs him or her towards the goals, which satisfy the needs of them (Dima, Man, &
Kot, 2010).

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Selecting where to go
The selection of the place by the baby boomers are according to their needs, wants,
demands, according to their suitability, this also considers the financial status of the baby
boomers and take decisions accordingly for the chosen location. Moreover, in the end, the
major priority is given to individuals physiological needs of the customers for the set
location. Similarly, the baby boomer needs highlights about their basic physiological needs,
social status, security, and lastly the self-fulfillment needs (Leask, Fyall, & Barron, 2013).
Why to go
Baby boomers, in this particular age, were retired from the work from which they
earned to live the desired life. The reasons for traveling or using the hospitality services were
to Full-filling all them desires, needs, aspirations, and demands at this age. As in this age,
they chose to go anywhere where they planned or wish for is due to more disposable income,
fewer children raising responsibility and the substantially reduced workload.
What are the stimuli?
Stimuli, which generate the new pathways in the brain, while improving the
connections that already exists within individuals. Travelling is one of the benefits of baby
boomers life. They think that travel exercises cognitive flexibility and is an important part of
creativity. By traveling, they can easily fulfill all the requirements such as marinating social
status, security, and the self-fulfillment though traveling at the selected places. Hence,
boomer traveling is an exercise in receptivity and resourcefulness (Mazilu, & Mitroi, 2010).
Consumer buying behavior model
(Source: Horner & Swarbrooke, 2016)
In the above model, marketing stimuli highlight the 4 P’s product, price, place, and
promotion. Moreover, the other stimuli, which highlight the environment likewise, political,
legal, economic, technological, and cultural also, have a major impact. These all stimuli act

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as inputs and it turns into the observable buyers’ response such as products choice, brand
choice, purchase timings, and the amount related to it (Horner, & Swarbrooke, 2016). This all
depends on the buyers’ characteristics and the buyers’ decision process. Hence, the marketer
has to understand how the stimuli changes or variations do. First, buyer characteristics
influence how buyers react to stimuli. Secondly, how the decision process affects buyers’
behavior (Chand, 2017).
Factors influencing buying behavior
Customers’ behavior denotes to the assortment, acquisition, and feasting of goods and
amenities to fulfill their needs and the requirements. However, there are certain issues, which
affect the buying behavior of the clienteles such as cultural factor, which affects the
purchasing behavior from country to country. In this, the bifurcation is done on the basis of
religions, nationalities or geographical basis (Lin, & Huang, 2012).
Other is the social factors, which includes the references group, family, role, and
status. In this, the different roles and the status in society in terms of group and families
affects the buying behavior. Moreover, the private factors, which comprises variables such as
age, lifespan, stage, employment, economic conditions, lifestyle, personality, and self-
concept. This is all done on the basis of suitability of the product at each stage. Lastly, the
Psychological factors which also majorly affects the purchases and the purchase decisions,
which include motivation, perception, learning, beliefs, and attitude. And hence, marketers, in
this case, need to know about the needs of people and what are their buying decisions, what
role each person’s plays and accordingly set strategies in order to win over the customers
buying decisions (Cohen, Prayag, & Moital,2014).
Factors
Cultural
PersonalSocial
Psychological

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3.2. Selection of a destination for your next vacation
The next vacation destination for the visit is London, United Kingdom. As London is
a place, where there is all kind of people and people with all the ages. London attractions are
the major landmarks of the city. A person represents their culture and ethics. Millions of
travelers visit London every year so that the capital must be done something right. This place
has a range of fantastic monuments and landmarks, which are worth seeing.
Application of model with an example
Need recognition: In this first phase of the decision-making course, I will recognize a
problem or the need. In this context, the need recognition occurs when the consumers identify
a need and think of traveling that might fulfill the needs of the buyer. The selection of the
destination cannot be made without the acknowledgment of the essential. The need must have
activated by the inner stimuli (Xiang, et al, 2015).
Information research: After the recognition of the need related to traveling, the next
step related to the decision-making process is the information regarding the selected place.
For this, we need to make an effort to search for the internal and the external environment. As
these efforts, helps in identifying and evaluating the information related to the central buyer's
decision. (Pesonen, Komppula, & Riihinen, 2015). The sources from which the information
will be gained about the selected destination can be visual, online media, word of mouth for
obtaining the information. For this process, lots of time and efforts are invested while
conforming decisions (Gardiner, King, & Grace, 2013).
Evaluation of alternatives: The third and the most important step of this process is
the evaluation of the various alternatives. In this, while the selection of the destination,
evaluation of different products or the brands are done. The factors that influence this stage
are the customer’s attitude and perceptions. Likewise, if the motive is high and positive the
involvement is high, and then more of research is done in the context of companies and
brands. In addition, by the time, the brands at initials come and are considered at an early
stage.
Purchase decisions: Utmost stage of the purchase decision may be disturbed by two
factors one is a negative response from the customer and the level of inspiration to accept the
feedback. The variation in the decisions may be disrupted due to an unforeseen situation such
as relocation or sudden information that is not appropriate or according to the needs. During

Tourism and Hospitality marketing 13
this purchase decision stage, the customers may form an intention to buy the most preferred
brand or the products.
Post-purchase behavior: In this, the main task is to compare the various destinations
with the previous expectation that will either satisfied the needs to dissatisfied. This process
greatly affects the judgment process for comparable buying from the same business in the
forthcoming. If the customer is satisfied, this results in brand loyalty. In common, the
clienteles will generate their optimistic and negative response about the creation. This is all
done completely the social websites or word of mouth. Lastly describes the end feeling of the
individual experiences after the purchase done according to the needs.
4. Part B
4.1. Introduction to the research
By the application of the observation research, it was seen that the hotel and a
restaurant in our area are elegant and high priced. However, the main aspect on which we
have to focus on is improving the level of services offered by the thirty person’s staff for our
restaurant and hotel. Every organization consists of workers, but each of them is different
from one another this is all because of the behavior, which they possess. According to the
research, it is seen that the workers with different mindsets and skills affect the organization
at large (Sekaran, & Bougie, 2016).
Why observational?
The observational research method applied in hotels to know about the staff meeting
criteria up to standards or not. Whether, they are confused or less experienced. If they are
rude to the customers, were they creating chaos, where they are confused while attending the
call or attending guest simultaneously? All these issues are taken into consideration and are
being observed by the hotel managers in order to know more about their employees and staff
members and the constant responses by the customers through feedbacks (Roblek, 2016).
4.2. Problem definition and research objectives
Problem Definition:
The problem in this context highlights about the staff or the worker's performances
within the industry. An elegant and the high priced restaurant with the lower efficient staff in

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working quality and performances majorly affect the organization at large. Moreover, the
problem cannot be only from the worker's side but the problems can be aroused from the
organization side. Such as the lower training facilities, not equipped technology applied in
order to gratify the customers’ needs. Moreover, the issues can also rise in between the staff
members such as conflicts, which also majorly affects the quality of work done by them
(Lloyd, 2009)
Research Objectives:
The motive behind the research was to identify the working style and the working
behavior of the staff members within the hotel industry. In order to recover the worth of the
working style in the newly setup organization, it is really just for the organization to better
know about the workers earlier performances, their current behavior and acts towards the
assigned work. Moreover, to keep a check over the capabilities, which they possess, and what
all kind of appraisals and motivation techniques needs to be adopted to improve their
performances as well as the overall performances and the quality of the work (Roseno, Enkel,
& Mezger, 2013).
SMART Principle:
This principle highlights the by being specific, measurable, achievable, results-
oriented, and lastly, the time specified. All this principle is the basic need for all type of
organization in order to attain the set goals. Nevertheless, in the context of my hotel industry,
in order to recover the level of services offered by the thirty staff persons. By these principles
likewise, by being specific, the workers should be appointed with only those tasks in which
they are more specific. Their specialization will make the work better than the one who
knows nothing about that particular work (Day, & Tosey, 2011).
By being measurable, highlights the quality and the effort made by the staff within
the organization. For measuring the performances by a particular system, method or the
procedure helps in determining to what extent the target moment has been achieved. By this,
the organization is advisable to have a benchmark and determine the baseline.
Achievable aspect highlights the goals which are set are about to be achieved. In this,
the support base increases when id employees are involved in the decision-making process.
This applies to short term goals. In this by being achievable and acceptable, both go hand in
hand, in which ambition is great when it is a motivator. Hence, the aspects of SMART

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principle highlights the goals, which are set earlier, need to be achieved in direction to
accomplish the set objectives of the association (Foray, & Goenaga, 2013).
Result Oriented or relevant: In this, it ensures the set goals. Every employee needs
assistance or support in order to attain the set aims along with this, it is also important to
retain control over them. In our hotel context, the key goal of the employee is to progress the
superiority of the services in mandate to attain the set objectives of society. Hence, the
revenant efforts made by the employees should be the result oriented.
Time specific: Every set goal has a specific target date, for that the employees having
a deadline on which they have to focus on something to work towards that. This part of the
SMART principle helps in preventing the everyday tasks from taking on the priority note for
the longer-term goals. In this hotel aspect, the workers need not to ignore the time aspect as it
helps them to know more prioritize work and in how much time it will be completed
(Zahorsky, 2018).
4.3. Data collection methods
In order to review the performance of the employees, certain data collection methods
are considered in order to assess the overall performances and the general effect on the
organization. Such as by the graphic rating scales, by 360-degree feedback, self-evaluation,
management by objectives, checklists, team meeting, suggestion box and lastly, the regular
employee surveys (Survey methods, 2017).
360-degree feedback: This method of collection of data in respect of employee
performances highlights through the opinions and the assessments from the circle of the
people in the company. All these feedbacks can be generated through the people within the
organization such as co-workers, supervisors, and other heads of the organization. By this
method, it is helpful in evaluating the positive and the negative aspect and trends. Through
this, employees have to know about the areas that may need additional support (Farooq, &
Khan, 2011).
Regular employee surveys: This method of collecting data about the employees or
the staff working within the organization helps in knowing the overall performances. Hence
through this method, the organization got to know about the employee deficiencies and where
their need for the additional training and knowledge in order to make them more effective
and efficient towards the work (Thompson, 2015).

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Research Questions
Q1. Whether the employee withstands with the quality of his or works?
 Unsatisfactory
 Improvement needed
 Meet expectation
 Exceed expectation
Q2. How well the employees treat their customers before serving?
 Unsatisfactory
 Improvement needed
 Meet expectation
 Exceed expectation
Q3. How quickly do employees follow up on requests?
 Unsatisfactory
 Improvement needed
 Meet expectation
 Exceed expectation
Q4. How well the employees treat their customers after serving?
 Unsatisfactory
 Improvement needed
 Meet expectation
 Exceed expectation
Q5. How quickly do staffs adjust to the changing priorities?
 Unsatisfactory
 Improvement needed
 Meet expectation
 Exceed expectation

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Data collection intervals
The conduct of the research can be done in every three or six months so that the
organization got to know more about their employee's members or staff members and the
services they provide.
4.4. Findings and analysis of data collection
The analysis of the above-collected data highlights how each customer reacts over the
performances given to them. This is all done by the regular employee survey in which the
required questions are given and by the customers’ feedback, employee performances are
evaluated. Further helps the organization in improving the performances of their employment
by providing training and use various other techniques in order to improve the overall
presentation of the worker as well as the overall fulfillment of the organization goals. Post-
project performance review highlights that the management who collected the post reviews
helps in keeping the employees motivated while ensuring better representation of their
contributions.
4.5. Conclusions
From the above evaluation of the performance of the employees highlights that for the
organization reputation it is important to improvise the performance as well the level of
services within the organization for generating the overall success. Moreover, every
organization consists of workers, but each of them is different from one another this is all
because of the behavior, which they possess. According to the research, it is seen that the
workers with different mindsets and skills affect the organization at large.
Recommendations
 Every time evaluation of the employee performance can make them depressed and
can force them to leave the organization. Hence, this will degrade the value of the
organization and the overall reputation as a frequent change in the employees set a
negative impression in the minds of the customers.
 If the regular evaluation of the employees is done, the positive responses of
employees should be promoted for further appreciations. Moreover, the one who is
not further promoted for appreciation should be trained properly so that they can

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perform well, along with this; they should also be motivated by the application of
monetary benefits as this source improves the overall performance very well.
Part B
5.1. Introduction, location, and business
The organic restaurant, located in the Centro malls that will majorly emphasis on
being organic with creative and ethics food culture. The main motive behind being organic is,
making use of organic ingredients, dedication towards sustainable development. Additionally,
the reduction of dependence on fossil fuels applied in transportation as it is located in the
center part of the shopping area. This restaurant emphasis is on traditional ingredients and
procedures. These ethnic guidelines will be used to deliver the clienteles with the most
assorted and unusual menu. Their major focus will be on healthy dishes. This is all done by
identifying the trends within the restaurant production for the demand for healthy cooking
(Godsey, 2010).
5.2. Internal and external analysis
PESTEL Analysis
(Source: (Ali, 2017).

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In the context of a restaurant setup, the understanding of the environment and their
functioning by conducting the PESTLE analysis is must. It is pivotal for both the successful
formulation and implementation of the set strategies to the analysis of the external
environment of the organic restaurant. The six particular areas which are defined as political,
economic, social, technological, legal and environmental help to recognize the recent trends
of the market as well as helpful in anticipating the changes.
Political environment: The political aspect includes components such as universal
and countrywide political levels. Certain guidelines on organic food, free trade contracts, and
low labor morals in developing nations are also highlighted in this analysis. Organic food has
a chance to further improving its values to ensure proper labeling. The firm also having an
opportunity to expand its business, which is based on free trade agreements through new
places in a foreign country. The repercussion of administration agencies highlight the need
for healthy food dieting as well as suggesting the tremendous positive effects (Ali, 2017).
Economic Environment: In this, the analysis states that there is higher economic
stability but along with this, the rise in the labor cost in developing countries. Economic
growth in a country is vital for financial activities in the organic food business. High level of
economic growth, low level of joblessness, low level of price rises and external balance
between the trades and importations are the crucial fundamentals in this analysis.
Social environment: In this analysis, the social condition that influences the
customers, employees an investors and involves the elements such as demographic, customer
behavior, lifestyle, the perception that affects the organic food industry. The essentials of a
communal attribute such as community class and social financial groupings have affected the
industry of organic food. As, the demand for organic food is towards the incremental drift. It
is driven by the customers’ insight into the superiority and security of these foods. The
anxiety about food safety has triggered people to consume more of health and organic food
but it is more costly than the other food contents. Hence this increments the market value for
the organic food industry (Ali, 2017).
Technological environment: Technology plays important role in developing the
business. From the above, we have seen that social and environmental having a positive
impact, especially on organic farming growing. As organic food are claimed to be full of
vitamins and minerals, and do not contain antibiotics and contains genetically modified
ingredients, which results in the existence of technology developments and researches. The

Tourism and Hospitality marketing 20
development of technology also contributes to the great deal Sinfield, et al, 2012).
Alternatively, the influence of technological alteration is also evident in the pest regulator
activity in organic farming. Technological improvement also enables growers to choose
sowing times and prevent pest and infection outbreaks. Moreover, it also provides the farmers
with the healthier farming administration system to increase the populace of the natural
predator that has the regular competence to control insects, illnesses, and weeds (Whole food
market, 2012).
Legal environment: Legal aspect related to organic food production, government
strategies, regulations, and internal food standards requirements are some of the major
concern fundamentals that are considered in this aspect. Likewise, the government policies
help in encouraging the organic farming, customers’ awareness about the safety and security
of organic food and global exposure both locally and parameter on upholding the superiority
of the organic food needs. Moreover, the elements of legislation also have a greater impact,
which comprises of customers legislation, customers protection, sales of goods and trade
description (Ali,2017).
Environmental environment: Environmental analysis also having a major
implication over the organic produced. The glance at environmental impact on the commerce
can also assist the agriculturalists and organization to prioritize the needs of the
environmentally approachable. The weight scale is a good indicator in the outline to analyze
the influence of the environment deviations on the crop, production process, regulation as
well as the customers’ expectation (Frue, 2017).
SWOT Analysis
Strength
 Organic high-quality food
 Decent customer service
 Positive employee environment
 Preservationist reputation
 Fair labor incomes for the farmers
 Economies of scale
 Resilient cash flow and stock
positions
 Many locations to tape
Weaknesses
 Weak global operations
 Observed as a luxury shopping
destination
 Target a small number of shoppers
 Higher priced food
 Do not gather information about the
competitors
 no online presence
 Sometimes average customer services

Tourism and Hospitality marketing 21
 Customers loyalty
 Initial affordable prices
 A strong relationship with the
suppliers
 Environment sustainability
 High quality and improvement in
health due to an intake of nutrients
when their low labor
 Productivity gap
 Lack of awareness among farmers
Opportunities
 Market management in a high
demand segment
 Enlarge private label brands
 A wide amount of areas where the
store is situated
 Increased demand for organic food
 Introduction of the new products in
the market
 Diversification
 Expansion
 Increased patronage
 Direct relationship with the suppliers
 Earn high export earning
 Increasing awareness of healthy
lifestyles
 Increasing cultural diversity
Threats
 Increased competition
 Change in economic conditions
 Change in government regulations
 Foreign exchange rates-
 Economic downturn
 Increase in operational costs
 Raising the cost of labor in
developing countries
 Increasing the wealth gap
 Threat of substitutes
 Lack of infrastructure and
certification bodies
5.3. Segmentation, targeting, and positioning of the business
Segmentation: Segmentation involves finding out what all kind of customers is what
their different needs are. In a market, some customers request speed and performance while
others are anxious about safety and security. Segmentation includes a huge number of
variables that can be used to distinguish customers of the product given classification.
Likewise, in the organic food formed restaurant, the differentiation can be done on the basis
of choices, preferences for the taste, healthy diet, price sensitivity, willingness to pay for the
brand names. On the demographic variables, such as income, age, location all these factors
majorly affects the segmentation aspect. Another segment is behavior some customers are
brand loyal and some do not affect the business (Edmunds, 2014).
Targeting: In the targeting aspect, the marketing of the organic restaurants help in
identifying, reaching and creating advertising in order to keep a connection to the target
audiences. According to the survey, it is claimed that people are extremely healthy, and they
are more towards the healthy restaurant, brainstorming a further goal of audience which are
based on the restaurant's locations and the type of cuisine. By being the organic owned
restaurant the factors for the targeting the customers are the health conscious people, weight

Tourism and Hospitality marketing 22
conscious people, people on the superior nutrition, some of the persons who are more concern
about them and considered as the active people are more inclined towards their health
(Durant, 2019).
Positioning: All the marketing strategies of the business are grounded on the
segmentation and the positioning. Usually, the segmentation is based on certain kind of
sorting surrounded by the marketplace, which is based on certain persons, situation
requirements or the product. The present positioning of carbon-based merchandises is based
on the segmentation method that identifies the organic marketplace with the motive of the
enlarging niche. In direction to make the organic segment produce beyond its usual limits, the
business should be sternly defined as specially labeled and controlled product; a lateral
presentation value-based strategic methodology. Lateral publicizing reorganizes a product by
totaling need, usages, and circumstances (Vellas, 2016). Demanding and constructing on a
wellbeing positioning, the organic sector could develop new products, uses, and situations
that would add to the current volumes of sales without cannibalizing the current targets
(Kokemuller, 2019)
5.4. Marketing mix strategies 4P’s or 7P’s
Product
 Healthy organic food needs
scientifically recognized well-being
benefits
 Innovative merchandise growth
targeting the different customer's
segment
 Pure trademark differentiation
 Reasonable standardization
Price
 Prices are set according to the
purpose of value that the product
offer
 It is also depended on the differential
trademark features and benefits
 It is also based on the product life
cycle stages
Promotion
 Promotion of the organic-based
restaurant can be done on the basis of
advertisement through mass media
such as the use of radios and
televisions
 Point of purchase promotion is also
one of the ways to advertise about the
organic servings
 Through sampling, large customers
can be known about the organic
servings
Place
 The place at which the most if the
customers will be attracted are the
supermarkets
 Another place at which the restaurant
can increase its sales in the malls,
food court outlets
 As it is equally important is the
availability of the product as many as
customers will perceive the product
more they will be known about the
product (Pilman, 2010).

Tourism and Hospitality marketing 23
5.5. Conclusions
The above report helps in concluding that the organic-based restaurant is the trending
because when we talk about the segmentation, targeting of the product many people were
segmented who are more health conscious, more fitness freak, weight conscious, more
towards the fine, organic and natural diet. In addition, it’s time to innovate with some new
niche kind of positioning through the adoption of lateral marketing approaches through
developing new merchandises, usages, and circumstances that would add to the present
volumes of trades and also attracts the larger number of audience.
Recommendations
 As organic restaurants are not in many trends in the recent times in many of the
countries, for that more of promotion should be done in order to make the customers
aware about these natural facilities all around the world so that the health issues can
be reduced and increase the better health of the individuals.
 Moreover, Other than this, the organic restaurants should also start with the breakfast
meals with different salads and drinks, which are formed with, full of organic
materials, which help the individuals in weight loss, better health conditions.
 In promotion concern, they should also start with the marketing campaign should
that the audience get more aware about the products, material usage, benefits from
having all such organic and natural foods will surely impact the sales of the offerings
as well as the individual's health.
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