Chapter 2: Strategic Planning for Competitive Advantage

To some people Hard Rock Cafe is a rock 'n' roll themed restaurant, but each cafe offers 'one stop shopping' for the rock 'n' roll enthusiast. HRC is an entertainment and retail store that sells food and alcohol. Being able to have dinner listen to a live band, look at price less rock memorabilia and buy a souvenir glass, pin or tee shirt from the ROCK SHOP is a part of an authentic experience HRC provides each guest.

The HRC menu is moderately priced with classic American food. Someone can find the similar food in the same price range one of HRC competitors; Planet Hollywood. HRC provides a something unique by providing a museum of rock history in every cafe and retail merchandise designed by top musicians called Signature Series. They have two loyalty programs, The Pin Club; for their large following of pin collectors and The All Access Card that frequent merchandise and diners can use at every hotel, casino and café.

Chapter 3: Ethics and Social Responsibility

Hard Rock International is one of the most recognized trademarks globally. It has cafes, casinos and hotels in 47 countries worldwide. The integrity of the company has been around since its beginning 40 years ago. Its mission has been “do well by doing good” since 1971. Since then it has been a leader of social responsibility. One of its many philanthropic causes is breast cancer awareness.

            October is national breast cancer awareness month. PINKTOBER is Hard Rock’s breast cancer awareness campaign which has been around for 12 years. 10% of all sales of Pinktober merchandise (pins, apparel and bedding) go to The Breast Cancer Research Foundation and The Caron Keating Foundation. The Pinktober merchandise can be found in all cafes and at the Hard Rock website. Cafes also host parties and live music events to raise money for research.

            The Hard Rock also has a humanitarian, environmental and entertainment industry philanthropic causes they support. Their mottos are TAKE TIME TO BE KIND (Humanitarian), SAVE THE PLANET (Environmental) and ALL IS ONE (Entertainment Industry). Each of the cafes has one of these mottos posted. The Hard Rock is an example of a business that has gone above and beyond by ‘doing good’ in the global and local community since the day it began. They know and understand that corporate philanthropy is a business strategy that is necessary for success.

Chapter 5 Developing a Global Vision

Since its first cafe in London in 1971, The Hard Rock Cafe has opened its doors in 51 countries worldwide and has been an international company since 1982. Some of the first restaurants outside London were Paris, Berlin, Los Angeles, Chicago, Houston and New York. A rock 'n' roll music themed restaurant that served classic American food was easy to digest in developed countries in the Western Hemisphere. But could it do the same in international markets of developing countries?

Hard Rock recognized the success of its first international restaurants and reacted by adding restaurants in developing countries in the Caribbean, Central and South America, India and China. The risks of culture resistance from these countries were low.  Rock 'n' roll music may have started in the U.S. but is listened to all over the world. HRC was less of an outsider and more of an entertainment attraction in most countries.

The brand continues to grow, seeing an increase in of its cafes. According to the year-end report earnings for 2006, revenue for company owned cafes were $501.9 up 10.9% from 2005. With such promising numbers, the highest profits are coming from overseas. Sales in Europe were up 8.8% sales in North America were up 5.8%. The company elvaluated under performing cafes and closed two American cafes in Austin and Los Angeles. HRC opened five international cafes in Ocho Rios, Mumbai, Narita, Santo Domingo and Margarita.

Hard Rock International includes cafes, hotels and casinos. Its hotels and casinos have a a higher profit margin than its cafes. Its American cafes are seeing a decrease in sales and a smaller market share. Is the American cafe the 'dog' of the Hard Rock International brand? 

Chapter 4 The Marketing Environment: Target Market

         
     For forty years, The Hard Rock Brand has been the prototype for theme restaurants. It had little competition until Planet Hollywood which is a movie themed restaurant with authentic movie memorabilia directly from the sets of Hollywood's biggest blockbusters. The competition for tourist dollars is obvious here in New York's own time Square where the Hard Rock Cafe (HRC) and Planet Hollywood sit directly across the street from each other.
      After going to Times Square, just based on curb appeal, The Hard Rock is a sstrong brand name and a target market of Generation X and Yers. From my observations, the majority of people going into Planet Hollywood were families with tween children or younger. Adults without children and large groups of adults opted for the Hard Rock.This could be a strategy from Planet Hollywood to direct their marketing to families with young children since they understand Hard Rock is courting the Gen X and Y market.
       Another observation based on curb appeal, was the design of the restaurants. The HRC has a darker theme, almost Gothic, with dark steel signs and minimal neon lighting. Planet Hollywood has big bright neon letterings that fit in well with the rest of the lights in Times Square. Along with the lighting, one can determine if the restaurant is the right fit by the drink menu. HRC had much larger alcohol menu with interesting signature cocktails including the 'Hurricane' which has its own glass named after it.
    The Hard Rock's understands who their target market is and why they are in Times Square. HRC understands the traveler's disire for a mature crowd thats wants to let loose with some rock and roll and alcohol.