Consumer Behavior and Marketing

Boroti Food Inc.Loraine Toorie MG460 10/28/2010

1

Introduction:

Thesis statement: As innovator/manager of a new food product to research

potential markets within diverse areas by mirroring selected industry analysis (data).

The restaurant industry has altered the Greater Boston area due in great part to

changes in consumer behavior and the elements of consumer purchasing decisions.

Consumer behavior research attempts to model and understand how individuals or groups

acquire, use, and dispose of products or services, activities and ideas, in order to satisfy

needs and desires over time. For innovators interested in introducing a new food product

into a market, it is sensible to know that market and, if that market would support the

product. Following the marketing and sales principle “know thy customer” is the core of

any research in the field of consumer behavior. But keeping up with new culinary trends

is vital in developing a food product. Not paying attention to trends in the food industry

can potentially be a “spook-in-the-wheel” for innovators. To arrive at a perspective on a

specific market, in this case the “dine-out” market, requires research into who, what,

why and where dimensions. Attempting to map these dimensions of consumer behavior,

would be to observe the community effects, or the contagious factors (lifestyle) of the

community members, as an important driver of change and getting to know your

customers.

This research starts with some basic background demographics of the restaurant

industry in the Greater Boston area. This will provide insights into the following.

The competitive forces in the food industry (trends).

Growth opportunities (within a new industry).


2

Strategies to raise profitability and competitive position in an industry.

What this study will do is examine how marketing should best be geared to

demographics and affluence in an area in order to support a quality product for the lowest

cost that meets customers’ expectations. The goal of the project is to keep marketing cost

low, to monitor the trend of ethnic restaurants in the Greater Boston area, to look for

other measures that can track consumers’ tastes and behavior that account for the wave of

change that has altered the area.


3

Background:

The National Restaurant Association, 2011, predicts sales turn positive after a

three year slump. The number of national restaurants recorded by the industry is in the

vicinity of 960,000, over 14,100 restaurants reside in Massachusetts. The revenue from

food is rising with the National Restaurant Association figures showing “the U.S

restaurant industry sales in 2010 will exceed a half trillion dollars.”(Figure 1)

(Figure 1) * Projected Source: National Restaurant Association

An important measure of food businesses in the area is the number, and the types of

restaurants, that have increased market share. The types of restaurants and the factors

that produced such change in the Greater Boston area is the main focus of this research.

Datamonitor’s Products scan online indicates consumption of international herbs and

spices within a 20 year range from (1983 to 2003) has doubled in the United States.

(Stagnito, 2005) This statistic is one indicator, in our view of the alteration in consumer

tastes, from “meat and potatoes”, to a more diversified mélange of foods, and the degree

to which this is accounted for by new immigration. “The U.S. Census bureau 2009


4

American Community survey indicates that there are more than 38.5 million foreign born

persons living in the United States – roughly 13% of the population.” (mintel.com)

Boston has seen the effects of different ethnic groups and their varying culinary skills on

the community at large. The National Restaurant Association predicts the top 20 trends in

the food and beverage industry for 2010, with “Ethnic fusion” and “Latin

American/Nuevo Latino” included in the picks. Included in the line-up of trends in the

food business, is “organic” and “natural” foods that may be a competitive force against

ethnic food trends.


5

Section One

II. Validating the product concept:

The new product to be launched combines a Mexican concept with a West-Indian flavor.

The mission statement of Boroti Food Inc is to provide high quality food, fresh

ingredients for an affordable price. Boroti is a niche concept, which utilize the “shell” or

skin of the “dhalpuri”, a West-Indian roti, stuffed with ground seasoned split peas and

vegetables as condiments. Various spices used are: curried powder, (“shadon beni or

bandhania”) a relative of cilantro. The burroti will be prepared and packaged in five

styles, curried (chicken, beef, pork, lamb, goat and shrimp). The condiments or filling for

the “borroti” include; “channa” chick peas, potatoes, sautéed “dasheen bush” a green

leafy vegetable derived from a root tuber, (spinach can be substituted), sautéed squash,

sautéed “bhodi” (long green beans) and fried “carali” (bitter melon). These highly

flavored ingredients would be incorporated with the customary burrito filings such as;

black beans, red beans, pulled pork, blackened or BBQ beef. The blending of the two

flavors would be in cooking the beans with West-Indian spices, adding rice as a filling to

the “dhalpuri” in combining the Mexican burrito and the West-Indian dhalpuri. The

“Burrito” will be changed into the “borroti” with these highly flavored West-Indian

“staples” to create the new food product, the “borroti”. Research based on spice imports,

suggests taste has migrated to more ethnic flavors which supports the base for this

business venture. The area has already shown that restaurants with a Spanish/Mexican

flavor have staying power. The National Restaurant Association shows that Tapas (small

plates) restaurants from Spain, has seen an increase in the amount of dine-out customers

that opt for this type of food (Restaurants USA, 2010).


6

The Boroti list of food items on the Menu.

Menu

DHALPURI

Dhalpuri: A flat bread that is filled with ground split peas, geera (cumin), cilantro,

garlic and saffron. It is toasted on a platen (tawa) to bring out the

aroma and spices in this delicious, fresh roti.

Chicken dhalpuri: filled with cubes of slow cooked chicken breast, seasoned to

perfection and flavorful West-indian spices.

Beef dhalpuri- filled with tender morsels of beef that is seasoned to perfection that

compliments any condiments.

Shrimp dhalpuri – filled with local market shrimp, cooked just right and served hot and

fresh to maximize the delicious added West-indian spices.

Goat dhalpuri- filled with curried goat (seasoned overnight) in Trinidadian rum, curry

powder, shadon-beni, garlic and other local spices that makes this

dish truly unique to the West-Indies.

Vegetable dhalpuri- filled with a choice of many fresh vegetables from the menu.

Vegetable condiments:

Curried chick-peas and potatoes.

Sauted green, long beans

Sauted pumpkin

Sauted eggplant

Sauted ochres

Sauted spinach or (dasheen bush)


7

Quacamole (crushed, seasoned avocado)

Tomato Salsa

Mango Salsa

Kuchila spicy (preserved sun-dried mangoes, cured in mustard oil)

Rice- (white, brown, basmati)

Beans and peas – chick peas (channa), lentils, red beans and black beans.

Two such restaurants within the proposed location that have shown this staying

power is Orinoco and Toro will be analyzed.

A. Customer interviews

i. Analyzing data capture

ii. Defining a target market

ii. Emerging restaurant concepts for 2010 indicates which age group and income

level is returning to restaurants first. Market drivers in the food market shows that

colleges and schools provide the greatest revenue on its own, to the food industry. And

the main reason for customers to dine out is ease and convenience. “Young adults, many

of whom may not be home cooks anyway, dine out less to avoid tasks than to find

personal or group enjoyment. (Mintel). The target market is geared towards young

A secondary audience of “foodies” is also targeted for this product.

B. Bubble diagram (describes and prioritizes elements of the product)


8

Section Two

II. Demographics and Access

The demographic profile of the Greater Boston area and the dine-out industry has

changed greatly in the last twenty years. The population of the area has seen changes

from a low-income, predominantly black area to a hugely diverse population with a high

percentage of young, educated students and business people. The proximity of major

colleges and Universities some (Ivy League), have contributed to the present population’s

diversity. What people eat depends upon who they are (ethnic, profession, heritage),

where they live (urban, rural) areas, and how much money they earn (professionals have

more money than students).

A. Demographics

B. Affluence of the area

C. Comparison of menus from (1970-2010)

C. Number and type of new restaurants/cafes per year

D. Analysis of industry standards


9

Section three

III. Marketing tools/instruments

A. Market strategy

Product differentiation is a typical marketing strategy. When consumers are faced with

choices research has shown marketing strategies can affect the formation of choices and

thus create competitive advantage. (Carpenter, Glazer, & Nakamoto, Aug 1994. p. 340)

The use of meaningless differentiation is one medium of creating a meaningful brand.

One of the first steps to differentiate a product is coming up with a good idea that makes

everything else in the market irrelevant. There are three core elements of successful

differentiation.

1. significance

2. provability

3. sustainability

i. Market selection (target market) – ethnographic strategy

i. Product differentiation

ii. Meaningful differentiation

iii. Meaningless differentiation

B. Surveys

Survey:

(Based on food demonstrations). Carded for Saturday April 16th 2011.

i. Survey questions (sample of designated area of product launch)

ii. Survey respondents (sample of designated area of product launch)

iii. Survey respondents (sample outside designated area)


10

V. C. Interviews

i. Personal interviews on food preferences

ii. Questionnaires

Sample questions:

1. What did you think of this new food product?

2. Would you incorporate it into your regular choice of “dine-out” options?

3. After trying this new food product, would you try it again?

4. Is the price affordable?

5. What recommendations would you consider to improve this new food product?

iii. Data Analysis

iv. Frequency distribution (mean, median, mode)

D. Positioning of product


11

Section Four

VI. Market analysis of main competitor (Orinoco restaurant)

Orinoco, a mere 830 square feet restaurant, located in the South-end, is owned by

Andres Branger, a Venezuelan import who moved to Boston in 1979. Branger and

Rodriguez (business partner and chef) at Orinoco entered the Boston market with the

niche concept “taguaritas.” Taguaritas are rustic, warm eateries that serve arepas: grilled

corn-pocket sandwiches stuffed with all sorts of fresh ingredients. Branger admits that

"arepas are the great equalizer back home-absolutely everyone eats these there, whether

they're rich or poor." (Improper Bostonian, February 2006) The restaurant serves eight

choices of arepas, the “reina Pepiada”($4.75) is filled with succulent chicken, cilantro

and avocado is the runaway favorite. The menu includes other favorites such as

empanadas, soups, and “pabellon criollo”: shredded beef and sauce with rice and sweet

plantains, for ($13.25). The Latin restaurant is a mere 830 square feet. The chef pays

attention to other trends in the Boston area and offers a “Boston-friendly” approach by

cutting down on heavier ingredients and making the dishes lighter and healthier. The

Improper Bostonian reported in 2006 that Orinoco, a labor of love “ran out of food the

day it was opened.” In 2009, the restaurant was featured in WCVB-TV, Chronicle “Al

Fresco” showcasing its homely, warm dining atmosphere and ethnic cuisine, a hit with

Bostonians that the owners opened another branch in Brookline Village, Brookline.


12

Toro Restaurant Analysis:


13

Section Five

VII. Monitoring the trend of diversification/gentrification in the restaurant industry in Boston

VIII. Risk management

In a fast-paced, evolving sector such as the food industry, risk management is a

central aspect in the strategic design process. Part of this process can be incorporated by

developing and laying down the framework.

Laying down the Framework (Case Study)

Case: Risk Management for the launch of a New Food product

Project Name: Boroti Food Inc.

Domain: Consumer Behavior and Marketing

Deliverable: Brand launch of a new food product

Vehicle: Promotional campaigns via food demonstrations and

surveys

Taste: “Quality, ethnic flavored street food”

Campaign: Promotional campaign to match the trend of the new trend

in ethnic foods

Product Quality: An ethnic food blended with West-Indian spices and fresh

vegetables. A combination of a Boritto and a Dhalpuri.

Project Cost: Launch cost USD 60,000

Project Time: 12 months

Risk: Insignificant market response


14

IX. Conclusion

X. Abstract

References


15

Carpenter, Gregory S., Glazer, R., Nakamoto, K. (August 1994). Meaningful brands from

meaningless differentiation: the dependence on irrelevant attributes. Journal of

Marketing Research. Retrieved from

http://business.highbeam.com/138014/article-IGI-1 5702863/meaningful-brands-

meaningless -differentiation-dependence

Lassiter, J.B., & Gardner, D. (2006). Marketsoft: Case analysis. In B.Unger (Ed).

MG*541EX: (Required Cases) The Innovation Process – Developing New

Products and Services (pp. 61-87). Boston University. (Reprinted from Harvard

Business School publishing 9-800-069)

Opening a restaurant or other food business starter kit: How to prepare a restaurant

business plan & feasibility study: With companion CD-ROM / author(s): Fullen,

Sharon L.

Washington, K., & Miller, R. K. (2010). Chapter 17: Buying influences. In (pp. 82-87)

Richard K. Miller & Associates. Retrieved from

Hyperlinks

http://search.ebscohost.com.ezproxy.bu.edu/login.aspx?

direct=true&db=bth&AN=45440622&site=bsi-live

http://books.google.com/books?

hl=en&lr=&id=eRmNJQfjF3kC&oi=fnd&pg=PR13&dq=consumer+behavior+in+the

+food+industry

http://books.google.com/books?hl=en&lr=&id=eRmNJQfjF3kC&oi=fnd&pg=PR13&dq=consumer+behavior+in+the+food+industry



http://search.ebscohost.com.ezproxy.bu.edu/login.aspx?direct=true&db=bth&AN=45440622&site=bsi-live

http://search.ebscohost.com.ezproxy.bu.edu/login.aspx?direct=true&db=bth&AN=45440622&site=bsi-live


16

http://www.foodtimeline.org/fooddecades.html#1900smake

http://business.highbeam.com/138014/article-1G1-15702863/meaningful-brands-meaningless-differentiation-dependence

http://www.innovationxbook.com/pdf/Innovation%20X%20-%20Chapter%201.pdf

Additional References

http://www.restaurant.org/tools/magazines/rusa/magArchive/year/issue/article/?ArticleID=408

http://www.innovationxbook.com/pdf/Innovation%20X%20-%20Chapter%201.pdf



http://www.foodtimeline.org/fooddecades.html#1900smake