Marketing Strategy

Every business is subject to factors that affect the firm’s function as a whole. These factors are the ones attributed for the success or even the failure of a business. In the light of this, there are certain ways or techniques that can be considered in order to emerge and continue to be competitive within the market place. The marketing concept has been defined as ‘the key to achieving organizational goals’ and the marketing concept rests on ‘market focus, customer orientation, coordinated marketing and profitability’. In a profit making business the firm obviously has to try and achieve this level of customer satisfaction as a way of staying ahead of the competition and making a profit.

Analyzing the status, strategies and resources of businesses and their products or services is very essential as it allows operators to determine how they will progress in the years to come. This also enables them to identify their strengths and how they will optimize them. On the other hand, business analysis also makes operators realize their weak points, allowing them to address them immediately with effective strategic actions. Conducting a business analysis also helps organizations to prepare for their future development and growth. Considering that competition in the business field is continuously growing, implementing efficient strategies through business analysis is indeed significant for all operators in any industry.

Traditionally, marketing has been utilized by the private sector in decisively increasing the capabilities of an organization. Marketing can be considered as one of the most important element underpinning successful business creation (Hills, 1994). Perhaps because of its complex applications, marketing have been defined in a variety of ways (Sheth, Gardner and Garrett, 1988). The marketing concept was first promulgated in the late 1950’s (Elliot, 1990). The importance of marketing concept incorporates oft-repeated elements such as: customer orientation; integrated marketing efforts; and resultant profitability.

Today, more and more people and organization are trying to be recognized in the business arena. With this objective, these organizations had been able to competently and effectively adapt to the situation in the market place by using different strategies that enhanced their competitiveness. In lieu with this, the main purpose of this paper is to provide a comprehensive discussion of marketing and management strategies of Dai Kai’s Salads and Burgers*. This will present a summarizing discussion on the four Ps of the company. The critical evaluation of the marketing strategy also includes significant aspect such as market condition, competitors, and customers’ expectations. In particular, it will answer the following questions:

1. Why does your company need a marketing strategy for this product or service?

2. What market information is needed to formulate the strategy?

3. What is the relative importance of the 4P's?

4. What is the most important future trend which will affect the strategy?

5. Is international marketing important for these products on service?

Company and Product Profile

Dai Kai’s Salads and Burgers* is a fast food restaurant offering specialty do-it-yourself salads and burgers. It includes a wide array of various vegetable and meat selection. This is a solution to the diet-conscious career people who have no time to prepare or cook their meals.

Salads

- garden fresh vegetables (lettuce, cabbage, watercress, chicory, and endive or escarole), fruits (pineapple, turnips, tomatoes), with chicken or fish slices, nuts, and dressings

Burgers

- meat (chicken or beef) and fish patties, fresh vegetable inclusions, sesame-filled buns, and dressings

The unique do-it-yourself procedure in making salads and burgers established by the management created an alluring effect to the prospected target market. Further, the company’s commitment to serve foods that are healthy and easy to prepare is continuous in attracting potential buyers. The company’s management wants to be treated as a local business because it emphasizes its cares for the community where it does business with local suppliers.

1. Why does your company need a marketing strategy for this product or service?

Reasons for Marketing Strategy

Primarily, the main reason for the need of the company to have a marketing strategy to the products/services is COMPETITION. Today’s market is characterized by highly competitive organizations which are all vying for consumer’s loyalty. Firms are faced with the challenge to maintain their own competitive edge to be able to survive and be successful. Strategies are carefully planned and executed to gain the ultimate goal of all: company growth. However, external factors are not the only elements which influence growth.

The possibility to bestow a competitive advantage is not intrinsic in all resources (Wernerfelt, 1989). Nevertheless, to a certain extent, in simply those that satisfy a thorough collection of situations (Barney, 1991; Peteraf, 1993). The first condition is that the resource has to be important. That is, it has got to supply the chance to make use of a number of environmental opportunities or counterbalance a few hazards. Resources are believed to be important when they allow an organization to conjure up of or put into practice strategies that perk up the organization's competence or efficiency (Barney, 1991). A number of authors interpret importance in the context of satisfying a key consumer requirement (Aaker, 1989; Coyne, 1985).

Additionally, resources have to have the features of exceptionality. If important resources are owned by a great number of competitors or possible competitors, they no longer correspond to a source of competitive advantage. This is the key subject of heterogeneity fundamental to the resource-based view. In this context, organizations owning exceptional and inimitable collections of capacities and resources can accomplish a sustainable competitive advantage. Third, there have got to be the condition of imperfect mobility of resources. Where resources are effortlessly traded among competitors, no competitive advantage can be preserved. Imperfectly mobile resources take account of those that are characteristic to the organization (Williamson, 1979), those for which property rights are not well characterized (Dierickx & Cool, 1989), or those that are co-specialized assets (Teece et al., 1990). The imperfect mobility of assets is a decisive feature in businesses as the consumers are the key assets in a lot of circumstances, and their high mobility recurrently results in the shortfall of accounts and the materialization of new competitive threats as in the condition and eventually shifting to other companies that directly compete for the similar market.

For an advantage to be maintained, resources have got to be imperfectly imitable (Barney, 1991) or offer a few ex-post restrictions to competition. That is to say that following to an organization acquiring a superior position and receiving rents, forces have to be made that could limit competition for those rents (Peteraf, 1993). It was taken into account above that innovation such as the improvement of a new kind of account by a retail bank or a new promotion approach by a creative department recurrently triggers a multitude of replications from competitors. For an organization to be in a situation to make use of an important and rare resource, there have got to be a resource position obstruction averting replication by other companies (Wernerfelt, 1989). Preserving a competitive advantage over a period of time necessitates the attendance of separating instruments that thwarts replication. Quite a few such obstructions that have been taken down in the literature consist of causal ambiguity (Reed & DeFillippi, 1990) and uncertain imitability (Lippman & Rumelt, 1982), where the motivations of success are not easy to recognize. Replication may similarly be thwarted by the process of asset stock accumulation within the organization. Where these stocks have power over the features of time compression diseconomies, asset mass efficiencies, and interconnectedness, then replication is not easy (Dierickx & Cool, 1989). Without a doubt, the implication of asset stock accumulation in the business sector has been established elsewhere, when the reservoir of organizational and managerial knowledge that has been developed over the years can make available branch offices with information at a price very much inferior than a de novo indigenous organization would have to bring upon itself (Boddewyn, Halbrich, & Perry, 1986, p. 50) that is to say, an ownership advantage in global competition.

Along with the changing business world, customers change as well, becoming more demanding and knowledgeable than before. In turn, company management had shifted their focus on their clients or customers so as to stay successful in business. This transition meant that organizations have to completely reformulate their conventional business aims and purposes from being process-focused to customer-centered. Moreover, employing proactive customer commitment involves the consideration on culture and infrastructure (Lowenstein, 1997). Organizations that capitalize on customers' active participation in organizational activities can gain competitive advantage through greater sales volume, enhanced operating efficiencies, positive word-of-mouth publicity, reduced marketing expenses, and enhanced customer loyalty (Lovelock & Young, 1979; Reichheld & Sasser, 1990). Rather than going after every potential source of revenue, companies eliminate useless assets that do not add value for customers’ satisfaction. Business organizations implement bureaucratic policies and procedures for the benefit of the staff, customers and the company in general. According to Bowers, Martin and Luker (1990), if consumers somehow become better customers – that is, more knowledgeable, participative, or productive – the quality of the service experience will likely be enhanced for the customer and the organization.

The researcher considers COMPETITION as the strongest force to be considered in making the product/service marketing strategy. However, there are also some management perspectives to be taken at hand but it is no longer covered by the purposes of this report. Because competition is prevalent in the chosen target market and line of enterprise, it is essential to study its coverage including its limits and potential opportunities for the benefit of the business.

2. What market information is needed to formulate the strategy?

To formulate such marketing strategy for the product/service of Dai Kai’s Salads and Burgers*, the management must take into consideration some significant aspects such as market condition, competitor analysis, and consumer expectations as foundational considerations.

Market Conditions

With its five-year pioneering stage, Dai Kai’s Salads and Burgers* established its name in the fast food industry in Mainland China. Generally, its sales accounted to a significant increase of revenue. With its two branches in Beijing and Dongguan, Guangdong, the company maintains its commitment to serve healthy products to people who are always on the go. Today, with the constant internationalization of various fast food restaurants, Dai Kai’s Salads and Burgers* faces the inevitable challenges of global competition and market dominance. Hence, the company is struggling for its competitive advantage by using its implemented marketing strategy.

Competitors

The top competitors of Dai Kai’s Salads and Burgers* are the multinational corporations (MNCs) that are venturing in the same market and offering similar line of products to the chosen clientele. The effects of the global business economy, globalization, and the changing consumer behaviour and needs are perceived reasons on why MNCs are predominant in their situated venue. Among these global (including country-based) competing companies are enumerated below:

SUMMARY – FAST FOOD OUTLETS IN CHINA

1,100+ Yum Brands (Taco Bell, Pizza Hut, KFC)

1,000+ KFC

580+ McDonalds

400 Malan Noodles

142 Pizza Hut

100 Xiao Shaoxing

100+ California Beef Noodle King

83 Yonghe King

49 Yoshinoya

38 Starbucks

20+ (unk) Café de Coral

20+ (unk) New Asia Dabao

17 (in 1999) Mos Burger

Source: http://answers.google.com/answers/threadview?id=401749

Customers’ Expectations

Dai Kai’s Salads and Burgers* offers a personalized line of service for its product. The consumers possess the freedom to choose from the salads and burgers being offered.

The varying tastes of consumers widely affect the position of every product in the market. Every consumer is expecting for continuous and excellent service. They also anticipate for new product innovation that will suit their varying taste whenever new threats (such as other fast food restaurants) are present in the market. In general, consumer always expect for better products and services that will satisfy their needs.

Further, consumer behaviours and satisfaction are vital segments that the management of Dai Kai’s Salads and Burgers must take into account. The optimal satisfaction of the needs of consumers is the best manifestation of the effectiveness of its marketing and management strategies.

3. What is the relative importance of the 4P's?

Marketing mix is one of two interrelated components of a strategy wherein the other component is the target market (Dinglasan, 2001). It is more popularly referred to as the 4Ps of marketing which is a set of controllable and interrelated variables. The 4Ps are composed of product, place, price and promotions which a company must assemble to satisfy a target group better than its competition. It is a strategy in itself because it chooses and implements the best possible course of action to be able to achieve the organization’s long term objectives and eventually gain competitive advantage (Dinglasan, 2001).

The function of each component is defined and discussed in the succeeding paragraphs in relation to Dai Kai’s Salads and Burgers*. Product is the element which satisfies the needs and wants of the target market. Placement or distribution aims to make the product conveniently available to the target market consistent with their purchasing patterns. Price strives to make the product affordable to the target market and reflect the value of the benefits the company provided. Promotions deal about the building and improvement consumer demand. Promotions have four components called the “Promotions Mix”. It includes the following: advertising, public relations, selling and sales promotions. Advertising effectively informs and persuades the target market while public relations or PR offers a positive image of the company and the brand. Selling refers to the process of getting the customers to buy while sales promotions convince customers to buy immediately.

The Marketing Mix (4Ps)

Product – Product-service offering, on the hand involves the offerings that can be manipulated. These include the features or attributes (actual or perceived), images, warranties, after-sales service, training for the customers, delivery, installation of the product, and responsibility for the product at the end of its productive life.

Dai Kai’s Salads and Burgers* products were limited when it started: burgers for eight (8) Chinese Yuan (or 99 cents in U.S. Dollar) and salads 12 Chinese Yuan (or one and 50 cents U.S. Dollars). Beverages like soft drinks, coffee, and shakes are relative of sizes. This simple menu made Dai Kai’s Salads and Burgers* was a successful venture. However, while the restaurant’s basic menu has been a big draw to consumers because wherever Dai Kai’s Salads and Burgers* may be the same menu is offered, there is also a steady stream of new products which have been part of innovative menu.

The latest offerings are the bun-less burgers for low-carbohydrates dieters; chicken specialty breast meat strips and Go Veggie! Healthy Meal for adults which consisted of a premium salad, step-o-meter, bottled water and exercise booklet were offered to the general public.

This means that Dai Kai’s Salads and Burgers* take into account the current changes in their consumer preferences by adding these products. They know that they will be able to keep their present consumer base by keeping up with the pace of lifestyle. Another strategy of the restaurant concerning products is localizing the menu. Dai Kai’s Salads and Burgers* try to incorporate the country’s favorite foods into their basic menu because in doing so, more locals will patronize their products.

Placement – Decisions involving the place/distribution are also crucial in meeting the needs of the target market. There are many factors to consider such as the choice of location where the product will be sold to the consumers, and the various channel distribution required to bring the product in the target market. Elements of distribution channel include the packaging, storage facilities, transportation, and the members of the channel itself (e.g. producers, brokers, retailers and households). It is always relevant to choose a channel pattern that is suitable for the target market needs.

As of today, Dai Kai’s Salads and Burgers* operates and franchises two stable locations – Beijing and Dongguan, Guangdong. Now, the management is planning to expand its marketing operations. This expansion clearly indicates that the restaurant has a wide consumer base and appeals to many people. It prides itself as a neighborhood restaurant; therefore, it chooses locations that are easily accessible. All of its locations can be associated with the same uniform sense of organization from its recognizable trademark of bowl’s and buns to its décors embedded or printed in the polymer tile flooring, plastic chairs and tables and soft finish that absorbs the noise. This adds to the feeling of routine that customers experience in Dai Kai’s Salads and Burgers*. It is also considered as one of the most interesting and well-documented franchise expansions. Lastly, Dai Kai’s Salads and Burgers* is planning to place their products in strategic places, such as allied merging inside the popular supermarkets and 24/7 convenient stores.

Price – Being the most powerful tool in marketing, price is identified following the company’s established goals and objectives. These goals range from enhancing the market share of the products, improving the demands in the target markets, to extending the sales at an even rate for one whole day, week, month, or year. Pricing is utilized in several ways namely (1) to increase unit sales so that resources of the firm; (2) to restrict sales, or limit the quantities demanded per unit time;(3) to make the market less attractive to actual or potential competitors; and (4) to attract buyers so that they will buy other items once the transaction has begun.

As a fast-food restaurant, Dai Kai’s Salads and Burgers* prices are inexpensive. However, there are still some instances when the company announces price adjustments in their restaurants. The pricing strategy is often a result of feedback from surveys which showed that their products were not moving off the counter because the consumers do not like the taste. Thus, based on this, Dai Kai’s Salads and Burgers* improved the recipes and passed on the cost reduction that mounted up from this process to customers. Among other factors considered in pricing are the needs of the market, the costs involved, the effect on margins and the value offered at a minimum for the consumer without the price cut hitting the company image. It is not surprising therefore, that Dai Kai’s Salads and Burgers* entry price strategy became a model in starting business in the area. Finally, it is interesting to note that some other countries have consistently agreed with the fast-food chain’s pricing strategy for many years. This shows that consumers give their loyalty as long as the price is right and fair.

Promotions – Today, personal selling, sales promotions, in the forms of souvenirs, and point-of-purchase displays (POP), publicity through non-paid presentation of the product to the target market (feature articles and special news coverage), and public relations (established link with the stakeholders) were utilized by Dai Kai’s Salads and Burgers*. Similarly, TV and radio advertising are important channels to promote Dai Kai’s Salads and Burgers*. Usually, effective television and radio advertising involves a good opening punch line, presentation of the competitor’s product (brand must not be mentioned) and its weakness, testimony of experts or renowned personalities/authorities, and in some cases, use of famous movie actors and actress also helps.

Further, the existence of Internet and the continued revolution in the world of Information Technology are certainly positive signs for the blossoming of many new advertising opportunities. For instance, pop-up ads and email ads have started to invade the Internet. Most advertising firms have also started to exert efforts to make their advertisements appealing to the public (McAndrews & Roberds, 2001).

Drawing the attention of the Internet users obviously would not readily move them in to action. It is very important, then to make some ways or employ some effective techniques to further engage them in the site. Thus, a thorough consideration must be given to the content of the site. Content’s breadth, depth, manner of presentation, and timeliness are what primarily holds the attention of visitors. The more engaging is the site, the greater the possibility that the consumers will act positively to the ads. Lastly, it is very vital indeed to retain the site in order to engage site’s visitors. To do this, the site must always be monitored and updated. It must also provide venue where visitors could give their comments, recommendations, and other feedbacks to the site or the product so that improvements may be incorporated accordingly. Effective promotion of the product through advertising in various media maintains the superior standing of the product in the wide fast food restaurants marketplace.

4. What is the most important future trend which will affect the strategy?

Future Trends on Emergence

As a natural process of reaction in the product marketing, the dynamic and diverse consumer preferences and behaviour is the most predicted trend that will affect the marketing strategy of Dai Kai’s Salads and Burgers*. Due to different geographical location, cultural beliefs and practices, lifestyle, health status, and personal indifferences, various segments of the current marketing strategy are subject to possible changes.

Additionally, environmental factors are also trends to be considered. The increasing awareness and promotion of health among consumers is a serious matter Dai Kai’s Salads and Burgers* management must tackle. Pro-health advocates maintain their standing on protecting the welfare of consumers’ health against the unwanted effects (e.g. obesity and/or other lifestyle and diet related diseases).

Economically, the consistent evaluation of economic situation and stability of the market is a powerful trend that will greatly affect the services/products offered especially to other countries covered by its patronization. A close contact commitment and official watchdog is very necessary.

Further, the company management is also considered as contributor for future trends in the product. The human resource function of the company must maintain its esprit de corps to all the people involve in the achievement of its corporate mission and vision. Unified workforce and harmonious relationship to the market guarantees continued growth and success.

5. Is international marketing important for these products on service?

International Marketing

The international marketing of Dai Kai’s Salads and Burgers* and its products/services is highly significant. With the growing numbers competitors’ branches worldwide, Dai Kai’s Salads and Burgers* possess a potential for expanding its international market operations. Basing it from the facts gathered in this research, it could be concluded that the international marketing of Dai Kai’s Salads and Burgers* is promising. The unique variety and do-it-yourself procedure is a strong selling point for the company and its products/services. Its continuous commitment in achieving its goals defines its success and further utilization. Every business, like Dai Kai’s Salads and Burgers* must know how to stay in competition in order to survive in the market. In terms of competition, one great and possible strategy to do is a possible merger, joint ventures or strategic alliances because by doing this kind of strategy, it will lessen the competition in the market. But the again, Dai Kai’s Salads and Burgers* maintained its dominance in the fast food restaurants business with a sole governing management in China. In general, it is better to understand that the driver of firm profitability in a competitive market is a key marketing challenge and strategy.

In conclusion, this marketing strategy analysis was able to identify the different resources of Dai Kai’s Salads and Burgers*. This report clearly stresses that despite the success of any company, constant strategic change and development is essential. This in turn, can help ensure the businesses’ future progress.

Note:

*Dai Kai’s Salads and Burgers – a make-believe fast food restaurant offering a wide selection of mixtures of raw vegetable (salads) and burgers as products.

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