CHARACTERIZATION OF PRODUCT INNOVATION AND PROMOTION

STRATEGIES IN GASTRONOMIC TOURISM COMPANIES IN VALDIVIA

Sponsoring Professor. Cecilia Gutierrez Vega

Seminar work to opt for the Degree of

Bachelor of Tourism

Barbara Angulo Nilián

Natalia Patino Carpezat
Viviana Quidiante Andrade
Carla Risco Soto
Javier Sandoval Cardenas
 VALDIVIA, MARCH 2022
INDEX

INTRODUCTION 4
1.1. Objectives 5
II. THEORETICAL FRAMEWORK 6
2.1. Innovation applied to service companies. 6
2.2. Innovation in tourism service companies 6
23. product innovation 7
2.4. Innovation in tourism service promotion strategies 7
2.5. Evaluation or measurement of innovation 7
2.6. Innovation in the gastronomic world 8
2.6. Innovation in Chile 9
III. METHODOLOGY 10
3.1. Characteristics of the research design 10
3.2. Characteristics of the study population 10
3.3. Variables under study 10
3.3.1. Innovation indicators eleven
3.4. instrument application eleven
IV. RESULTS fifteen
4.1. Characterization of the gastronomic establishments surveyed fifteen
4.1.1. Types of establishments fifteen
4.1.2. Operating time fifteen
4.2. product innovation 16
4.2.1. Number of dishes and drinks offered 16
4.2.2. Dishes added to the menu by company 17
4.2.3. Inclusion and elimination of dishes 17
4.2.4. Modification of dishes 17
4.2.5. Letter modification frequency 19
4.2.6. food options 19
4.3. Product distribution twenty
4.3.1. Ways to access the letter twenty
4.3.2. Meal delivery methods twenty

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4.3.3. Type of delivery service twenty-one
4.3.4. Delivery service implemented 22
4.3.5. Percentage of profit for delivery 22
4.4. promotion strategies 23
4.4.1. Media where it is advertised 23
4.4.2. Time using Social Networks 24
4.4.3. Most used Social Networks and their reason 25
4.4.4. Frequency of publication in the most used social network 26
4.5. sales promotions 26
4.5.1. Sales promotion carried out during the last 18 months 26
4.5.2. Target market sales promotion 27
4.5.3. Desired goal sales promotion 27
CONCLUSIONS 31
References 33
ANNEXES 35

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4
INTRODUCTION

Innovative strategies can be applied in all functional areas of a company, ranging from management, the
human resources area, the production area, the finance or accounting area, and the marketing and sales
area. This is how there are different types of innovation, which will be addressed later in this document.
This study focuses on the current diagnosis of innovation in products and promotion strategies of these
companies.

Innovation is essential and necessary for the development of companies, thus allowing them to be valid in
the market, which year after year becomes more competitive. For this reason, they must try to reinvent
themselves, seek new ways of carrying out their actions and processes, paying attention and adapting to
the intrinsic and circumstantial needs of the market; allowing you to bring your products closer to your
customers, investigating, detecting, calculating, and experimenting with new and innovative ways of
approaching them, (being consistent with your company identity, and with what you want/want to
achieve).

For a gastronomic company it is of great importance to have innovation strategies, which not only have to
do with modifying its menu or setting of the place, but also contemplate that these strategies and actions
will have direct or indirect repercussions on its brand, and that could see it enhanced through the different
marketing channels. Therefore, it is necessary to have trained professionals for the correct planning
and/or development of improvement actions, which can create, add, apply and manage new ideas.

Since April 2020, as a result of the COVID-19 pandemic and even months before with the social outbreak
that occurred in Chile, tourism in the country and in the world has been significantly affected, even
reaching zero for some periods. The extreme conditions of the pandemic have forced food and beverage
establishments to carry out different actions in order to adapt to the new market, facing an opportunity to
innovate and stand out within the available offer. The problem present in this research corresponds
precisely to how these conditions have affected the industry and how gastronomic establishments in the
city of Valdivia have decided not to innovate, specifically in products and promotion strategies and how
they have survived these two years of pandemic.

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1.1. Objectives
General objective

Carry out a diagnosis of the innovation of products and promotion tools of gastronomic companies
attached to SERNATUR in the period 2001-2021.

Specific objectives

● Review the literature on service innovation applied to tourism companies.

● Identify relevant elements in terms of product innovation and promotion tools.

● Define indicators on essential aspects for the diagnosis of innovation.
● Characterize innovation in products and promotion in the companies under study.

Research questions

Some of the questions when analyzing the innovation of gastronomic companies in the Valdivia sector
are:

● What changes have these companies made to overcome the adverse conditions after the social
outbreak and the latent COVID-19 pandemic?
● Which of these changes are in your products and/or your promotional strategies?
● What criteria should a matrix include in order to measure innovation?

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II. THEORETICAL FRAMEWORK
Next, the concept of innovation applied to companies as a whole is addressed; from services in general,
to the most particular, such as tourist services.

2.1. Innovation applied to service companies.

According to the RAE, Innovation is the act and effect of innovating. When a product is created and/or
modified and it is introduced to a market.

According to Schumpeter, he had already identified different forms of innovation, highlighting those
directly related to production processes, as well as actions or strategies such as the conquest of a new
market and the establishment of a new organization.(Schumpeter, Business cycles: a theoretical,
historical, and statistical analysis of the capitalist process, 1939)In addition, the same author defined
innovation as a new combination of existing knowledge "to produce other things or the same things by
means of different methods to combine those materials and forces in a different way.(Schumpeter, The
circular flow of economic life as conditioned by given circumstances, 1949)Development, therefore,
seems to be defined by the realization of new combinations”.

For the Oslo Manual, innovation is defined as "the incorporation of reformed ideas applicable in areas of a
company such as merchandise, consumer items and/or services offered to customers, the development
of the creation of products or services, the procedures for introducing products to the distribution system,
the internal structuring system, the structure of the work field or the extrinsic environment” (OECD and
Statistical Office of the European Communities, 2005, p.56)

2.2. Innovation in tourism service companies

Innovation thrives in the tourism industry due to its multifaceted nature that requires the use of different
stakeholders, entities and systems.(Rattan, 2017). Innovation involves a degree of creation destruction in
terms of providing a better approach to how things are currently done.

There is empirical evidence in the literature on the relationship between some types of innovation and its
effects on the possible growth of the tourism sector in the context of developing countries and
destinations, where it is empirically demonstrated that innovation can be a key factor for adequate
development. tourism of an emerging destination. But it also suggests a need to continue researching the
possible impacts that different types of innovation can have on the tourism sector, especially interest from
an academic perspective. (Zuñiga Collazos et al, 2018), (Zuñiga Collazos et al, 2013)

Some specialists have measured innovation in companies in the tourism sector based on Rogers'
diffusion model, where innovation is defined as a practical idea or object that is perceived as new by the
individual units of the organization, or as a type of implementation at an internal system of the
organization, for example, the implementation of new software to improve production processes.(Kah,
Lee, & Chung, 2010) (Baglieri & Consoli, 2009) (Korres, 2008) (Rogers, 2003)

When the concept of innovation applied to tourism companies in Chile is analyzed, there is an
interesting contribution from the National Tourism Service "Innovate in tourism is to generate and
implement new ideas that add a differentiating value at the level of companies, destinations,
organizations and policies, expressed in the form of processes, products, services, experiences,

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channels and/or business models”.(Strategic Program Transforms Tourism of the Corporation for the
Promotion of Production, 2019)

23. product innovation

The Oslo Manual identifies four types of innovation at the business level, product innovation, process
innovation, commercial innovation and organizational innovation, this section of this research focuses on
the definition of one of these, which will help to understand In a better way the concept of product
innovation is described as follows: “A product innovation is the introduction of a good or service that is
new or significantly improved in its characteristics or in its possible uses. This type of innovation includes
significant improvements in technical specifications, components or materials, embedded software,
ergonomics or other functional characteristics” (OECD and Statistical Office of the European
Communities, 2005, p.51)

According to McCarthy and Perreault, "promotion consists of transmitting information between the seller
and potential buyers or other members of the channel to influence their attitudes and
behaviors"(McCarthy & Perreault, 1997). Kotler and Keller call it "Marketing Communications" and define
it as "the means by which a company tries to inform, convince and remind, directly or indirectly, its
products and brands to the general public.(Kotler & Keller, 2006)In a way, you could say that marketing
communications represent the voice of the brand, enabling dialogue and relationship building with
consumers.”

2.4. Innovation in tourism service promotion strategies

According to Navarro, “in the field of the tourism sector, communication is an essential element in the
interaction of its different components in order to generate communicative actions, which lead to relating
consumer needs with their satisfaction; These actions, represented by communication strategies, have
accompanied the sector throughout its journey, responding to the various transformations that have
occurred in tourism. This is how conventional strategies are applied, such as advertising, promotion,
public relations, among others, and strategies that are not conventional, modern or innovative through the
use of the Internet and its applications”. (Navarro Celis et al, 2019, p.86)

2.5. Evaluation or measurement of innovation

According to the Oslo Manual of 2005, innovation has a constant development, the actions that are
implemented range from small changes that can grow over time, especially in companies that have a
small niche. The manual also indicates that being a dynamic process makes it more complex to measure
than if it were a static activity, and how there are methods that help collect information on innovation in
companies, such as surveys, with which they seek to obtain Relevant and varied data on the internal
functioning of companies and how they seek innovation through their processes, being able to identify the
steps they follow, the small implementations of innovation in operations and what are the specific
activities or actions that they carry out. . Nevertheless, it is said that the results tend to be reduced
because they do not show all the information that is necessary, given these circumstances it is necessary
to integrate information from other sources that are appropriate. Surveys can also be prepared to collect
quantitative information, the problem is that companies cannot provide this data since it is complex for
them to calculate in detail how much they invest when launching innovation actions, their financial
statements do not reflect such implementations.

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2.6. Innovation in the gastronomic world

It is not surprising that, in these instances, in complex situations, complex scenarios have to be created in
order to detect emerging problems and anticipate possible impacts and implications. This is what the
gastronomic world will have to face today.

When formulating the scenarios that are proposed at this moment, they took as a reference the
uncertainties that are listed in the list of adjacent questions. The development of these variables and their
interaction will have a direct effect on the gastro-food sector, from production to consumer.(Basque
Culinary Center, 2020).

The four scenarios they would face are as follows:

a) Continuation Scenario: “Nothing has happened here”

b) Command and Control Scenario: “Keep Calm, Carry On”
c) Collapse Scenario: “Systemic Failures”
d) Transformation Scenario: “Lessons learned for the s. XXI”

In the first, it is based on the rapid recovery of the sector and a return to normality. It is characterized at
the company level by the consolidation of the large players in the gastronomic sector, an increase in open
innovation processes and an acceleration of the digitization of the sector to promote new sales, safety
and hygiene channels.(Basque Culinary Center, 2020)

For the second scenario called "Keep calm, carry on", there is speculation of a more prolonged period of
"economic and social disruption" with "control measures and movement restrictions", characterized by the
Government's protectionism of large actors and industries, the extension of aid and a digitization focused
on ensuring traceability and promoting new experiences of online shopping and consumption at home.
(Basque Culinary Center, 2020)

For the worst case scenario, called "Systemic failures", it describes a context in which the problems
worsen and feedback, with growing tensions and paralyzed or overwhelmed systems in which companies
should face a restructuring of the agricultural sector due to lack of hand of foreign labor, widespread
disappearance of SMEs, unemployment, disruption of the local market due to low prices of imported food
and a reduction in the range of items offered.(Basque Culinary Center, 2020)

In this context, the consumer would find himself "in a state of enormous general mistrust" and his
purchase would be limited to "essential" products with price as the "only relevant factor".

On the contrary, the "most attractive" scenario, called "Lessons learned for the 21st century", would imply
"a shift towards sustainability and a change of model" in which the crisis generated by the pandemic
"would be used to reorganize" giving place to "new, more resilient, fair and sustainable systems, taking
the best practices of the previous ones".(Basque Culinary Center, 2020)

In this context, it is characterized by incentives for companies to reactivate the activity in a sustainable
way, in accordance with the European green pact, and would result "in new jobs and formats", while
among consumers the trends towards a "healthy consumption" with the rise of "do it yourself".

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2.6. Innovation in Chile

According to a study carried out by the National Innovation Council for Competitiveness in Chile (National
Innovation Council for Competitiveness, 2007, p. 51), “there is no shared discourse that unequivocally
indicates what innovation is. This means that in some cases the concept is open to multiple possible
meanings, so its conceptual delimitation is diffuse”, however, it is observed that innovation is associated
with the new, the “latest” and the modern. Despite the various definitions, it indicates that "innovation is
usually defined as value creation, either through the design and commercialization of a new or improved
product, process or business model that enhances the value chain" and also that “innovation appears as
a process of adaptation to a changing and competitive environment”.

The study also provides information on how, depending on the socioeconomic group to which they
belong, people have a different vision of what innovation is and how it works. Showing, for example, how
for the less affluent classes “innovation also represents a pain for them: to name the desire is also to
know of its improbability. Innovation as change and desire to emerge is also what is not achieved; it is –
for the popular sectors- the future that does not come”. (National Innovation Council for Competitiveness,
2007, p. 21)

Regarding the dissemination of successful cases, the study indicates that the national media mostly
publish cases related to product innovation, and to a lesser extent, process innovation; Showing mainly
small companies that introduce or improve a good or service to the market.

There is currently in Chile the National Council for Science, Technology, Knowledge and Innovation
(formerly the already mentioned National Council for Innovation for Competitiveness and Development).
This “is an autonomous body that advises the Presidency of the Republic, whose main task is the
elaboration and review, with a systemic and long-term perspective, of the National Strategy for Science,
Technology, Knowledge and Innovation for Development, which it provides a framework for the policies
that the State promotes in these matters.

His main concern is to anticipate the great challenges of the country, providing guidelines that allow
strengthening the CTCI ecosystem so that it contributes substantively to the development of Chile”.

The transformation of the Council currently allows the different regions of the country to have
representation, as well as women, since it has gender parity. Also very important is that the Council
currently has a diversity of approaches, disciplines and competencies.

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III. METHODOLOGY

3.1. Characteristics of the research design

This research is of a non-experimental type, since it was desired to obtain information on the behavior of
innovation in gastronomic companies in the city of Valdivia. For this, the variables were not manipulated,
but the objective population was studied within its natural environment. In addition, the research has a
cross-sectional design because the variables were studied and the information was collected at a given
time and not over time.

Field design, derived from the use of data collected from primary sources. Thanks to this, it was possible
to see what were the true conditions in which the data were collected, which facilitated its revision or
modification in case of doubts. The data was collected from the first source, mainly via the web and
telephone, and to a lesser extent in person, due to the Covid-19 pandemic.

It was exploratory research, since it worked on a poorly defined problem and therefore little studied, so it
sought to establish a global vision on the subject and thus create greater familiarity with it.

3.2. Characteristics of the study population

The target population of this research are those gastronomic companies in the commune of Valdivia that
are attached to SERNATUR. From this universe, the following selection criteria were applied:

- Product homogeneity: This variable is understood as those products that are

delivered by the different selected companies and that are similar and/or common
among them.

- Location of the company: The companies were grouped by sectors of the city, such as
Isla Teja, Barrios Bajo, Centro, and Regional sector, identifying those areas where it
is possible to find conglomerates of establishments, thus excluding those that did not
are part of the commercial estates.

- Company trajectory: Only companies that have been operating since before the social
outbreak and the COVID-19 pandemic and that continue to operate were selected.

- Surveyed worker: The person who answered the survey must have been a collaborator,
owner, manager, administrator, etc. that you have been working for at least the last
18 months, since it is a requirement to understand how it works and have the
experience of this last time.

3.3. Variables under study

Information was collected on two fundamental areas for the study:

- Innovation in products offered by gastronomic companies in the city of Valdivia: This

is understood as the way in which the companies mentioned have weathered the last
years of crisis through the creation of new products, or even the exclusion of old
products. “A product innovation corresponds to the introduction of a new or

11
 significantly improved good or service, in terms of its characteristics or in terms of the
use to which it is intended” (Oslo Manual, 1997).

- Innovation in promotion strategies implemented by gastronomic companies in the city

of Valdivia: Like the previous variable, it is related to the way in which, as a result of
the crises, promotion strategies have been developed, different or not, from the one
they already had, in order to overcome them. It is recalled that promotion is “the
means by which a company tries to inform, convince and remind, directly or
indirectly, its products and brands to the general public. In a way, it could be said that
marketing communications represent the voice of the brand, and enable dialogue and
relationship building with consumers” (Kotler and Keller, 2006).

3.3.1. Innovation indicators

The following decisions and measures taken by the establishments studied, regarding their business
model, were considered the main indicators of innovation, providing information on how they have
collaborated with the process of overcoming the crisis unleashed by the COVID virus -19.

In product strategies:

1. New forms of product delivery: Special letters for delivery.

2. Use of new technologies: Use of QR code to access the menu.
3. Modification of the letter: Elimination and inclusion of dishes.
4. Adaptation to new trends: Include other types of food preferences.
5. Innovation in your company: Do something different compared to the competition.

In promotion strategies:

1. Use of new promotion platforms: Subscription to delivery applications such as Uber Eats, Rappi
and Orders Now.
2. Use of social networks in trend.
3. Marketing trainings.

3.4. instrument application

Information was collected through primary sources through the use of a questionnaire (see Annex 3
Applied Survey), addressed to administrators, managers, owners or collaborators of each of the selected
premises of the sample, who had the capacity and experience to answer the different questions relevant
to the measurement of what is considered innovation in this work, responding in the context of these last
18 months of work.

Selected sample: It began with a universe of 100 gastronomic establishments attached to SERNATUR,
then it was decided to group them into sectors of the city, which were the Isla Teja, Centro and Barrios
Bajo sectors due to the fact that conglomerates can be seen, so the sample was reduced to 47
establishments in total as shown in the following table (see Table 1).

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 Table 1. Distribution by sectors

sectors Quantity Relative frequency sample selection

Tile Island Sector 9 0.1 8

Center Sector 3. 4 0.7 30

Slums Sector 4 0.08 4

Total 47 1 42

Sample calculation: Then, in order to survey a more limited sample and also achieve representativeness
in the number of establishments by sector, it was calculated as follows (see Table 2).

Table 2. Calculation for representative sample amount

Sample 42

population size 47

Confidence level 95%

Error range 5%

Since it was not feasible to survey or contact some of the different establishments selected (due to factors
that will be specified later), a replacement list was applied that was specifically designed for this purpose.

actual sample: The month of December of the year 2021 was the one contemplated for the application of
the surveys, which finally were 22, these results were collected through face-to-face visits to the
companies, emails and telephone calls.

Finally, the actual sample is distributed as follows (see Table 3)

Table 3. actual sample

sectors Quantity %
Tile Island Sector 3 13.6
Center Sector 15 68.2
Slums Sector 4 18.2
Total 22 100

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During the process of collecting information, several limitations were presented, among them; and on the
part of the companies, the little availability of time on the part of the personnel, this due to the fact that the
month chosen to carry out the study is quite hectic for them, for which several had to refuse to answer the
survey. In other cases, no one could be found who could answer, since one of the requirements for
whoever responded to the survey was that they had to be a worker who had been with the company for at
least eighteen months, since it was necessary for them to live and know the changes they had to make to
adapt and survive crises.

On the other hand, due to the pandemic, most of the members were in their respective cities of domestic
residence, so the option to survey in person, which was the most likely to obtain responses, was limited.
Well in advance, those who did not have their vaccines for Covid-19 had to get vaccinated so that they
could travel to Valdivia and be able to apply the instrument in person. Those who could not travel were
able to carry out the surveys by telephone and by email.

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IV. RESULTS
The following results are framed in the application of the research instrument (see Annex 3) to 22
gastronomic service companies (see Annex 2).

4.1. Characterization of the gastronomic establishments surveyed

4.1.1. Types of establishments

Most of the respondents correspond to restaurants and in second place to restaurants and bars at the
same time, this is due to the fact that they take advantage of the nightlife of the city of Valdivia where
many people look for fun after leaving work (see Graph 1).

Figure 1. Types of establishments surveyed

4.1.2. Operating time

Through the data shown in Table 4, a large part of the gastronomic establishments surveyed have been
in operation for between 1 and 13 years. Being 5 years the amount that is repeated the most.

Only 18% have between 4 and 26 years of operation, the remaining 14% is distributed between 33, 46
and 59 years.

It was found that most of the participants in this study work in relatively new establishments and that few
have more than 27 years of experience.

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 Table 4. Operating time companies under study

years of operation
Intervals (years) Frequency %
1 - 13 15 68.1
14 - 26 4 18.1
27 - 39 1 4.5
40 - 52 1 4.5
53 1 4.5
22 100

4.2. product innovation

In the following section, information will be provided regarding the innovation in products that the
gastronomic companies carried out in the study period. Among the variables considered, the number of
dishes and drinks offered, the number of dishes added to the menu at this time, the frequency of its
modification, the food options offered, among others, can be highlighted.

4.2.1. Number of dishes and drinks offered

It is possible to identify in Graph 2, that the number of dishes and drinks offered varies considerably. The
companies as a whole highlight that 5 of them are over 40 dishes (23%); 9 of the companies surveyed
have less than 20 dishes on their menu (41%), which may indicate fewer resources for their production.

On average, the number of dishes offered by gastronomic companies is 28.6.

Graph 2. Number of dishes offered by company

4.2.2.
Dishes added
to the menu
by

company
Most of the companies (59%) added dishes in an interval between 1 and 3 dishes, then 18% added
between 4 and 6 dishes, in less quantity with 14% there are those who added between 13 and 15 dishes
and finally a 9% added between 10 and 12 dishes (see Table A, in Annex 4).
16
Of the 22 companies under study, 36.4% of them did not incorporate dishes to their menu and 63.6%
decided to add them, which means that most of them made a change in the variety of products to offer
(see Table B, in Annex 4).

4.2.3. Inclusion and elimination of dishes

Of the total number of gastronomic establishments surveyed (22), 14 decided to add new dishes to offer
and the most frequent reason was to provide more variety to their public, followed by interest in new
trends, which reveals their interest in innovating. in its offer (see Table C, in Annex 4).

It is observed that of the 22 companies surveyed, 45.5% of them eliminated dishes and the other 54.5%
did not. Being between 1 and 3 targets the highest frequency of targets eliminated (see Table D, in Annex
4).

According to the data in Table 5, it is observed that the main reason why the companies eliminated dishes
is due to "lack of personnel", this indicates that the companies surveyed have an important problem that
affects their business, since by leaving to produce dishes and eliminate them may be missing the
opportunity to innovate and attract potential customers. Secondly, there is the reason for “low profitability”,
which indicates that within these companies an inadequate cost analysis could have been carried out for
their production, before including them in their letter. It can even be inferred that some of the reasons that
came to light may be a consequence or cause of the other. It is seen in the following way, the crises in
these establishments are received first with the loss of clients,

Table 5. Reason of companies surveyed to eliminate dishes

Deletion Reason Frequency

Lack of staff 3
Low customers 1
Delay in realization 1
little profitability 2
limited editions 1
Lack of customer interest 1
Hard-to-find ingredients 1
Total 10

4.2.4. Modification of dishes

In Graph 3, there are 5 groups that go from A to E from lowest to highest according to the number of
dishes they offer, these are separated by intervals. It was done in this way to be able to graph the
behavior of the average number of those who add and eliminate dishes and thus also be able to compare
them.

In interval A (1 and 12 dishes), the number of dishes removed and added is similar and it can be said that
they have taken fewer risks by modifying their menu, since they have fewer dishes. With respect to group
B, it equals its number of average plates added and eliminated, but compared to the previous one, it
almost doubles it in the number of modifications. Group C is the one that added the most dishes of all the
groups. In the case of group D and E, a peculiarity occurs. Group D has few plates added, and on the
contrary, group E has almost the same number of plates removed.
17
The average number of dishes eliminated for the set of companies is 3 and the average number of dishes
added is 4.

Graph 3. Average Plates Modified Per Interval

Relationship between chainring modifications: At this point, we wanted to know the behavior of those who
had added and eliminated dishes or those who had not, at the same time, as shown in Table 6.

27.3% of the gastronomic establishments surveyed added and at the same time eliminated dishes from
their offer, which shows a balance in decision-making.

22.7% of those surveyed did not make any changes to their menu, so it can be understood as a lack of
interest in innovating and updating to the new needs of customers.

Table 6. Ratio between dishes added and removed

Situation Frequency % frequency

added and removed 6 27.3
Added and did not remove 6 27.3
Did not add and did not remove 5 22.7
Did not add and if deleted 4 18.2
did not delete 1 4.5
Total 22 100

4.2.5. Letter modification frequency

Table 7 shows that most of the establishments responded that they modified their letter every six months
in the last 18 months, which surely originated from the uncertainty of the scenario they faced, the
temporary closure of their businesses, which causes choosing more profitable options to produce.

Table 7. Chart Modification Frequency

Answers Frequency %

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 semi-annually 8 36.4
Quarterly basis 3 13.6
Annually 6 27.3
We have not changed it 5 22.7
Total 22 100

4.2.6. food options

Of the total number of companies surveyed, 82% have various food options in their respective menus, the
majority being vegetarian options.

Within the total of companies (82%) that have food options, only 33% of these added them during the
pandemic. Being the vegetarian option the most frequent, then the vegan and lastly food for diabetics.

The reason why the entrepreneurs added the most frequent option (vegetarian) arose from the need to
complement the dishes that already existed on the menu, with different types of salads and in other cases
this new food option was added to cover a public different from the one that the company already had,
due to the increase in people with this type of food in view of the global awareness of animal abuse by
industries of this type.

In light of the previous results on food options, a clear trend can be identified in the companies surveyed
to include mostly vegetarian dishes, in addition to vegan dishes and dishes suitable for diabetics, it is
inferred that this is due to the increase in awareness about nutritional health by customers, who are now
looking for food that is cruelty-free, healthy and nutritious. Companies that have these options are
prepared for a type of public that can be quite demanding. In this case, these companies must be in a
constant process of change and learning, where innovation is essential.

On the other hand, also within the studied universe there are companies that do not see the need to
include food options different from those they already have, it is inferred that this is because they have a
target audience that they satisfy with the products they offer in their menu.

4.3. Product distribution

This point shows information related to innovation in distribution that companies have carried out during
the time in which the study was defined. Among the variables that were considered are the ways of
accessing the menu, the way of delivering the dishes, types of delivery services that companies have,
among other related variables.

4.3.1. Ways to access the letter

To access the letter of 50% of the companies surveyed (see Table E, in Annex 4) there are between 2-3
options which, as seen in Table 8 below, are more frequent to find the QR code as a very innovative
innovation. characteristic due to the pandemic and thus avoiding contact with the physical menu.
Secondly, the physical menu, which is still widely used as it is the oldest medium.

Only one company has 6 out of 7 options to access the menu, so it can be deduced that they have
invested time and money in innovating and looking for different ways to achieve greater compatibility and
comfort with the client.

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None of them have an interactive totem (see Image 10, in Annex 1), although this tool would be
innovative, due to the need to avoid constant contact with the screen, it is not highly recommended to
implement this technology yet.

Table 8. Ways to access the letter

Answers Frequency %

QR code 16 27.6

physical menu 11 19

Company website 10 17.2

Catalog by WhatsApp 5 8.6

Catalog by delivery application 7 12.1

interactive totem 0 0

Link to the catalog 5 8.6

Total 54 100

4.3.2. Meal delivery methods

45.5% of the gastronomic establishments in this study have 3 options at the same time to deliver the dish,
which are face-to-face, pick-up and delivery. The other percentage with 31.8% distinguishes that they
have two delivery services at the same time in person and withdrawal. 18.2% only attend in person and
the remaining 4.5% only deliver by withdrawal. (see Table F, in Annex 4).

With regard to delivery, there is no one that works by delivering only for this service.

Therefore, it follows that those who have more forms of delivery have been able to adapt to new
consumer trends, since it is uncommon today not to have a delivery service or not be connected to a
delivery application.

4.3.3. Type of delivery service

Regarding the type of delivery service, as can be seen in Table 9, 40.9% of the responses indicate that
they do not currently have this, but there were two companies in this group that at the time of the greatest
crisis of the pandemic had the need to use delivery so that the business could continue operating.

Otherwise, those who have delivery are mostly with internal and external couriers, the latter associated
with online delivery applications such as in the first place with 47.4% Orders Now, Uber Eats in second
place with 15, 8% and Rappi in the same proportion (see Graph J, Annex 4).

Table 9. Type of delivery service

Type of delivery service

Answers Frequency %
Own self 2 9.1
20
 External 5 22.7
Own-External 6 27.3
None 9 40.9
Total 22 100

Letter for delivery

Of the establishments surveyed, 27.3% have or had a special menu for the delivery service, while 72.7%
do not have one. (see Table 10)

Table 10. Special delivery letter

Response Frequency %
Companies with a special menu for delivery 6 27.3
Companies without a special letter for
delivery 16 72.7
Total 22 100

Of the 6 companies surveyed that answered that they did have a special letter for delivery, the following
can be deduced; 50% of them are still working with this letter, being available to their clients and the
remaining 50% of them do not continue using this special letter.

The reasons described by the respondents to create or maintain a special delivery menu is because the
dishes included in them are quick to cook, they are easily transportable and they are the ones most
requested by customers. Due to this, they can have a service according to the demands of customers
who expect fast service and good quality food (see Table G, in Annex 4).

4.3.4. Delivery service implemented

Regarding the delivery service implemented by the companies surveyed, it can be said that, of the total of
22 companies surveyed, 6 of them implemented the delivery service due to the pandemic and 9 already
had delivery before it.

So, it is seen that 40% innovated in the incorporation of a new way of delivering their dishes,
demonstrating the company's ability to add a new form of delivery.

In this way, it is understood that the need for the delivery service began before the spread of Covid-19
and that, as a result, the number of gastronomic establishments that were surveyed in this study
increased.

These results are reflected in Table 11 as follows:

Table 11. Delivery service implemented

Delivery service implemented (pandemic)

Answers Frequency %
Before the pandemic 9 60
Because of the pandemic 6 40
Total 15 100

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4.3.5. Percentage of profit for delivery
Regarding the percentage of earnings received from delivery, 73.3% of establishments state that they
earn between 15% and 25% approximately from delivery sales. Which shows that it is not the method
with the highest profit, but it is still an important figure.

The remaining 26.7% say they earn between 30% and 60% approximately, so in the case of this group,
delivery is even vital, since it corresponds to a large percentage of the profits of their business.

Graph 4. Percentage of delivery profits against frequencies

4.4. promotion
strategies
This section presents material on the innovation of promotion strategies applied by the companies
surveyed in the last 18 months. The variables that were considered are the means by which they are
advertised, time using social networks, which are the most used social networks, the frequency with
which they publish information on their social networks, among others.

4.4.1. Media where it is advertised

55% of the responses refer to advertising only through social networks, from here on RRSS. Then 23% of
companies use RRSS and delivery applications at the same time, 18% of companies use traditional
media and RRSS and only 5% use e-mail in addition to RRSS.

As can be seen in Graph 5, all the answers include the RRSS, so it is understood that it is inevitable not
to have them and their proper updating should be imperative. In this case we can see that companies
have been able to adapt to trends, looking for ways to inform, attract and connect with their audience.

22
 Graph 5. Frequency of use of advertising media

4.4.2. Time using Social Networks

Of the companies that indicated using RRSS (22), they were asked how many years ago they used it and
the results indicate that the highest percentage of frequency corresponds to the interval of years between
5 and 7 that they have been using their RRSS. On the other hand, the least frequent with 9% is the
interval between 11 and 13 years.

It can be concluded that the RRSS have an important impact on the promotion of their products since all
companies use them in their processes. It is a way they have to be able to transmit the qualities of their
products in a playful and creative way.

In the case of the interval of use of RRSS between 11 and 13 years, it can be inferred that these first
started with Facebook, it is thought that this is due to the age of the application compared to the others.

23
 Table 12. Operating time of the companies surveyed

Limit (years) Frequency % frequency

1 4 5 23
5 7 7 32
8 10 5 23
11 13 2 9
14 16 3 14
Total 22 100

4.4.3. Most used Social Networks and their reason

A ranking was made for the question about the most used RRSS, with 1 being the most used and 5 the
least used, based on the above, the results can be seen below. (see Figure 6 below)

Most agreed that the most used was Instagram, mainly because it is the social network with the greatest
reach to its target and potential audience according to those surveyed. Also, for being a dynamic and
creative application. (see Table H, in Annex 4)

In second place, Facebook was chosen by the majority, WhatsApp third and finally Twitter.

Graph 6. Most used Social Networks

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4.4.4. Frequency of publication in the most used social network
Of the 16 companies that declared using RRSS, 43.8% publish every day, demonstrating the interest of
these companies in creating content on a daily basis, which is new and attractive to their audience, with
which they demonstrate a clear willingness to always be in contact. In table 13 you can see the result of
this.

Table 13. Frequency of publication in the most used social network

Frequency of publication in the most used social network

Answers Frequency %
Every day 7 43.8
2-3 times a week 3 18.8
1 time per week 4 25
2 times a month 2 12.5
Total 16 100

4.5. sales promotions

In the following section, information about the sales promotions carried out by the companies under study
during the observation period will be presented. The variables that stand out are the sales promotion
carried out, the target market for the sales promotions and what was the desired objective for the sales
promotion.

4.5.1. Sales promotion carried out during the last 18 months

Graph 7 shows the distribution in carrying out sales promotions of the interviewed companies, which
indicates that 45.5% did carry out sales promotions and 54.5% did not.

Graph 7. Realization of sales promotions

25
4.5.2. Target market sales promotion
Through the following graph (8), a strong tendency to focus the content of sales promotions towards the
young adult audience can be seen, because it is related to the use of digital platforms to reach them. Who
can also be found, but to a lesser extent, are adults on these platforms?

Chart 8: Target market for sales promotion

4.5.3. Desired goal sales promotion

Graph 9 shows that the general motivations for carrying out sales promotions are to achieve brand
recognition, even more important than increasing sales, although it may be a consequence to sell more
because it is more recognized there is the ability to understand that it is not only offering a good product,
it is not only selling more than the competition, it is having a brand, a unique style and that it is recognized
by potential clients.

Chart 9: Desired goal of sales promotions

26
4.6. Training carried out by workers
In the following section, information related to the scope of training for workers carried out by companies
during the period studied was developed. The variables that were treated are the areas to which the
training was applied, the training entities, the topic that was discussed in the training, among others.

Of the companies that did train their employees, and as can be seen below (see Table 14), a trend of
73% to training related to health and hygiene due to COVID, which shows the interest of companies to
continue operating despite the pandemic; 13% for beverages and 13% for others, and 0% for marketing.
This last figure is striking because marketing is a fundamental element to reach customers, showing that
the companies surveyed have no interest in this area.

Table 14: Training area

Answers Frequency %
Digital marketing 0 0
Kitchen 2 13.3
Pandemic Health and Safety 11 73
Other 2 13.3
Total 15 100

It is then broken down as 53% to COVID and hygiene, 27% to safety, and 20% to beverage information.
This majority trend responds to the need to make substantial changes in hygiene to avoid contagion and
spread of the virus (see Table I, in Annex 4).

Training carried out by Risk Prevention Specialist (40%), Mutual (10%), private (20%), public entities
(20%), beverage brands (10%), with a greater inclination to face-to-face training (73.3%), and less than
online (26.7%), despite the pandemic.

Table 15. Training entities

Answers Frequency %

27
Mutual 1 10
private 2 20
Risk preventionist 4 40
Public body 2 20
beverage brands 1 10
Total 10 100

28
Graph 10 shows a greater tendency to carry out training in person (73.3%), and less than online (26.7%),
despite the pandemic.

Graph 10. Training modality

4.7. General observations by respondents

Within the survey, open questions were asked, which resulted in a high number and variety of responses,
so what should have been summarized in clouds of concepts, which are presented below.

Way of reinventing oneself due to the crisis:

You can see in general the assertions that predominated, which were; add delivery (7), add new dishes
(5), face-to-face service (4), maintain quality dishes (4), add products (2), personal reduction (2), build
customer loyalty (2); the rest of the terms were mentioned only 1 time.

Tendencies can be seen to add new things to the menu to satisfy new consumption habits by customers,
and to preserve the quality of the products they have for sale, as a way to maintain and retain their most
frequent customers (see Image 1).

Figure 1. Cloud of observations respondents’ concepts

29
Action other than competition:

Since the concept of innovating can be, to a certain extent, summarized as doing something “different”. In
this section, they were asked what they did differently compared to other gastronomic establishments.
According to Figure 2, it can be seen that the predominant statements were; nothing different (4) and it is
striking that this is the most frequent concept, since somehow they had to do something different to
remain in force, since in Valdivia as in the whole country there were gastronomic establishments that
unfortunately and for different reasons, they had to close their doors permanently. The second most
mentioned phrase was the "focus on the plating" which means that they paid attention to the presentation
of the dish, that although it was a delivery by delivery it should also have a harmonious presentation, that
this should not be lost. Then there is "Good customer service", that is, providing a service where
customers are comfortable. "Delivery without losing quality" is also mentioned, which is also related to the
second concept. Maintain essence and tradition (2), innovate in preparations (2), and delivery drinks, the
latter represents a new way of delivering what at some point was the work of the barwoman or barman;
the rest of the sections only had 1 statement. which is also related to the second concept. Maintain
essence and tradition (2), innovate in preparations (2), and delivery drinks, the latter represents a new
way of delivering what at some point was the work of the barwoman or barman; the rest of the sections
only had 1 statement. which is also related to the second concept. Maintain essence and tradition (2),
innovate in preparations (2), and delivery drinks, the latter represents a new way of delivering what at
some point was the work of the barwoman or barman; the rest of the sections only had 1 statement.

Figure 1. Cloud of differentiating attributes concepts

30
CONCLUSIONS
It is important to mention that this qualitative research, a diagnosis of the current state of innovation of
these companies in products and promotion strategies was made. Therefore, in no way was it intended to
measure the amount of innovation, after obtaining data, they were grouped, analyzed and finally
presented.

The conclusions drawn from the results are, in the first part, that the majority of the companies surveyed
offer more than 20 dishes and/or drinks in their menu, it was also shown that in the last 18 months they
have modified their menu every six months, appreciating that They worry about renewing themselves.
Companies seek to improve the service for their customers, expanding the range of possibilities when
choosing one of their products or forms of delivery, and thus satisfy the needs of more people.

In general, they are new companies, with less than 10 years of experience, however, this does not mean
that they have not demonstrated the ability to face the adversities of the food and beverage industry, in
the months of study.

On the other hand, the companies within 18 months also had to remove dishes and/or drinks from their
menu, by collecting this data, it can be asserted that they go through change processes looking for which
dishes suit them, sell more, which go with their identity, which makes them come again or more people
come. The elimination of dishes can be a response to an interpretation (objective or subjective) of the
operation or success of the dishes and/or drinks; it is part of the knowledge, experience and resilience of
operation. The most frequent reason for eliminating dishes was the lack of personnel for the product
preparation process, due to mobility restrictions. Another reason that is mentioned is the low profitability
generated by the eliminated dishes,

The companies studied use social networks in order to maintain fluid communication with the client,
having to update themselves to the new trends in promoting their products, adapt to the new advertising
media that their target audience uses today, at the time of requiring the gastronomic services that the
surveyed companies offer. Regarding the target audience to which it was directed, in most companies it
was young adults, where in order to generate greater reach to them, it was through the use of digital
media, which are very dynamic (with high and wide scope, with ease of use and at hand to the (detected)
needs of its customers).

It can be evidenced that the strategies and actions carried out by the companies surveyed were not
planned but, due to the current scenario, they were guided by intuition, reading and experimental analysis
of the decisions made, being a "chance" of whether it works, or it doesn't work, and they were acting
based on this.

So, can it be said that Valdivia's gastronomic companies are innovative in terms of products and
promotion strategies? Before answering this, it is necessary to assert that the points of innovation studied
were categorized by the research team, through reading, interpretation, and the need to shape concepts
or preconceptions that could point to innovation in times of pandemic.

Regarding dishes, it was possible to observe that there were many reforms and concern to look for new
products and withdraw those that were no longer convenient, so, at this point, it is considered that at least
the companies were in constant search of innovating in their plates. In food options, it can be seen that a
large number have at least vegetarian options, but very few vegans and celiacs. If the results obtained
are considered as a measure, it can be asserted that having only vegetarian options is not enough to be
innovative, since everyone offers it, times change, and they demand new and more food options,
therefore, can it be considered innovative? Only if it is compared with the past situation of the company
itself and the companies that have not yet added these food preferences.

31
In the forms of delivery of dishes, it is evident that a large number of companies decided to opt for digital
options of access to the letter, implementing above all QR code, being an important and contingent
element to the present, for which it is estimated that they were innovative at this point and managed to
adapt to new trends.

In delivery, there is resistance to opting for this distribution option, despite the inability to function due to
the pandemic. Several indicated that as soon as they returned to face-to-face, they almost completely
abandoned deliveries, focusing on face-to-face; in this way it is considered that they have not been
innovative enough on this point.

Regarding promotion strategies, there is evidence of a growing focus on RRSS, more than on traditional
media, and that they are used constantly, so in this section it is asserted that they have innovated.

With reference to sales promotions, it is certain that less than half of those surveyed decided to offer
promotions in all this time, so it is concluded that they have not been innovative enough in this area.

Regarding training, it can be seen that most of the companies decided to train at some point, however,
much of it was focused on health and hygiene, responding to health obligations and restrictions, rather
than a search for innovation or learning something new., so at this point they haven't been particularly
innovative.

So, have the gastronomic companies of Valdivia been innovative? It is concluded that; It is not easy to
say with certainty whether they have been or not, since the case of each one would have to be specified,
but in general it can be said that they have not been innovative enough to influence or create new trends
in the market. However, a constant change is observed in the search for new forms and operating
strategies, which could gradually lead to the generation of truly innovative changes. For now, the
innovation achieved by the companies under study allowed them to overcome the crisis.

32
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