Product managers and brand managers from FMCG businesses will sigh wistfully when they read of the response rates to ads and promotions in the Foods and Hospitality business!
Unlike FMCG categories, where conversion rates for promotional events, ads in newspapers with discount coupons, etc. are typically in the single digits, and PR also has low conversions in the short term, for restaurants the conversion rate is much higher and the results show almost immediately.
Consider the example of Café Terra, a small eatery in Koramangala in Bangalore that specializes in continental breakfasts, especially waffles. Soon after they had opened, they were visited by a reviewer from TOI, both the food and the ambience made a positive impression on him. The review was due to run on a Sunday morning and expecting an increased number of customers, they decided to order extra provisions. Their optimistic best-case forecast was to expect 50% more customers than usual on Sunday morning, and they ordered provisions to cater for the same.
Come Sunday morning, there was a crowd at the door, business more than doubled and they ran out of food by lunch-time; their estimate is that they could have done more than triple the regular Sunday business had they had sufficient stock.
That’s how quickly and how strongly PR impacts sales in the Foods sector.
Don’t you wish there were separate detergent and skincare review sections in the newspaper that you could avail of! And that detergents and skincare products were as much of an impulse purchase as foods are.
- Zenobia Driver
(Disclaimer : The author is a friend of the owners of Café Terra and likes to eat there whenever she visits Bangalore)