Julius Meinl Romanian HoReCa Market Study

HoReCa Market Study

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Agenda

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!  What is HoReCa ? !  Consumer Behaviour !  HoReCa Classification !  Key Touch Points !  Traffic Assessment

What is HoReCa ?

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HoReCa is a place of social interaction where is possible to sell, consume or promote tea and coffee products.

HoReCa Channel characteristic: "  a longer time is spent on the premises; "  a high concentration of age consumers under 30; "  greater tendency to switch brands; "  favorable to new experiences;

What is HoReCa?

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HoReCa is not an Optional “ Nice to Have”. It is the Heart of the Marketing Strategy as a Strategic Channel itself and as a mean to do well in the Key Channel

What is HoReCa ?

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Outlets Types COFFEE/TEA COFFEE SHOP

RESTAURANT

CLUB/DISCO BAR/PUB

HoReCa = A Place Where People Spend Money on Drinks, Food,

Accommodation &/or Entertainment with the Intention

of Consuming on the Premises

Casino

Social Club

Restaurant

Sports Stadium Golf Club

Beach

Tennis Club

Health Club

Bowling Alley

Bingo Hall

Hotel

Motor Racing Circuit

Bar

Theatre

Concert

Cinema

Mountain Bike Track

Water Sports Park Music

Festival Swimming

Pool Tea/Coffee

Shop Cruise Liners

Ferries

Pub

Internet Café

Extreme Park

Betting Shop

Snooker Hall

What is HoReCa ?

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What HoReca Means ?

By focusing in HoReCa We Can:

Build Awareness With Target Consumers

Promote Trial, Conversion and

Loyalty

Build Brand Image in Line With Brand Objectives

Introduce and Grow Brands

Consumers Behaviour

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Consumers give many reasons for visiting HoReCa which are very distinct from the rational purchase behaviours found in traditional retail outlets.

They can be summarised by three core consumer drivers of:

"  Socialization = seeking or enjoying the companionship of others "  Fulfilling a lifestyle = a way of life or style of living that reflects certain attitudes and values( habits, attitudes, moral standards, economic level e.g.)

"  Enjoying a experience = participation in an activity or with people that leads to a physical or emotional reaction

Consumers Behaviour

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Reason for Visiting HoReCa KA/Retail

To Buy

Consumers have a Predefined Idea of Purchase, either Items or Brands

Sometimes Additional Items will be Purchased due to Impulse Reaction

The Process of Visiting into KA/Retail is Usually Conducted As An Individual

HoReCa

To Enjoy The Experience

They Wanna Dance, To Get Drunk, To be in the Crowd, To Pick Up Somebody

The Purchase of Specific Items is on 2nd Plan. People Don’t Like Interrupting Their Experience

The Process of Visiting into HoReCa is Usually Conducted With Others

Consumers Behaviour

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KA/Retail

Brands Are Important

Consumers Expect To be Provided With A Range of Products

Consumers Will Leave The Outlet of Purchasing if Specific Brands Are Not Available

HoReCa

Brands Are Not Important

People Do Not Go To for Brand Specific Reasons

Consumers Expect A Limited Choice Of Brands And Are Prepared To Try Something Different

Brand Choice

Consumers Behaviour

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Key Findings

"  Consumers Are in Outlet To Enjoy The Experience

"  Consumers Do Not Want To Receive Commercial Interruptions

"  Availability Of Specific Brands Is Not Important "  Consumers Are Prepared To Try New Things in HoReCa

HoReCa Classification

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We distinguish 4 types of establishments in HoReCa, classification based on Reasons for Visiting and Consumer Behaviour:

" Coffee/Tea Coffee Shop " Restaurant

"  Bar/Pub " Club/Disco


"   People are Going for Meeting Friends, To Drink A Coffee, To Relax, To Chat With Friends, To Warm Up

"   Openness For Trial

"   Bar Environment Enables Consumer Contact( relatively Silent, Enlightened, low Music Level)

"   Medium Percentage of Loyal Consumers

"   100 % Age Consumer Under 30, High Traffic All Day Long

"   If is Asked, Bar Staff Recommends Outlet Drive Brand

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Coffee/Tea Coffee Shop


"   The Consumers Are Going for Food And Calm Atmosphere, for Business Discussions, Meeting Friends, To Relax and because The Services Are Good

"   Consumers often Buy products based on Coffee

"   Table Service Only (except Self Service Canteens/ Fast Food)

"   Generally, (Super) Premium Age Consumers Over 35

"   7 Days Peak Time

"   Several Generations of Consumers per Day

"   High Percentage Of Loyal Consumers

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Restaurant


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Bar/Pub

"   People are Going for Meeting Friends, To Drink, To Eat, To Relax, To Have Fun, To Cherry-Merry, To Chat With Friends, To Warm Up

"   Openness For Trial

"   Bar Environment Enables Consumer Contact

"   Medium Percentage of Loyal Consumers

"   100 % Age Consumer Under 30, High Traffic All Day Long

"   If is Asked, Bar Staff Recommends Outlet Drive Brand


"   People are Going For Dancing, Drinking, Being In the Crowd, Socialising, Listening Music . Entertainment. Experience The Atmosphere

"   High Percentage of Loyal Consumers. High Capacity, High Turnover per Night.

"   Premium Trendy Clubs have Only Weekend Peak Time

"   The Others (Age Consumers under 35, Medium) have 7 Days Peak Time

"   Limited Range Of Brands-Exclusive Sales Agreement

"   Main Part Of Consumers Are Standing and Dancing

"   Difficult Communication Environment – Dark, Noise, Crowd

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Club/ Disco

Key Touch Points

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Coffee/Tea Coffee Shop

#  Menus

#  Table

#  Staff

#  Bar Area

Bar/Pub

#  Menus

#  Table

#  Bar Staff

#  Back Of the Bar

Restaurant

#  Menus

#  Table

#  Staff

#  Bar Area

Club/ Disco

#  Bar Staff

#  DJ Area

#  Entrance

#  Toilette Area

Traffic Assessment

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Each location can be classified according to the number of people walking during one day, week or year

Traffic = total number of people that are passing through a location during a day, a week or an year

Traffic/Year = Capacity of Location X Occupancy Rate X no. of Generations X Number of Active Weeks

Traffic Assessment

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Capacity of Location =total number of seats from the tables and from the bar area

Occupancy Rate =percentage share of total number of seats occupied

No. of Generations =number of people who pass on several occasions during a day at the peak time

No. of Active Weeks =number of weeks of the year in which the location is open

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Thank you