Part a 1. General Analysis of Fast-Food Customers in The
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PART A 1. GENERAL ANALYSIS OF FAST-FOOD CUSTOMERS IN THE DUTCH MARKET Fast-food industry in European countries has keep growing over years as the result of impact by global trend as North American. More and more consumers across Europe admit that their time becomes too constrained to have home-made food or spend time sitting for a meal at a well-serviced restaurant. Therefore, many fast-food chains have target this customer segments with fast casual styles to provide meals along with quick services. Customer segmentation of fast-food market can be put under analysis as follows: Geographic customer segmentation Fast-food restaurants divide their customers by region and its stores are usually located in urban and semi-urban areas. In Netherlands, most of fast-food chains can be found in the province of Zuid-Holland with about 115 stores while there are over 145 fast-food restaurants in Noord-Holland and Noord-Brabant. Demographic customer segmentation Fast-food consumers are mainly young adults choose these meals as a convenient option. These are most potential customers with high purchasing power due to increasing in disposable income along with increasing trend of dining out among young people. Other than that, kids and family also come to fast-food restaurant as snacks or alternative choice for home-cooked food. Fast-food restaurants are common destination for lower to middle income class as their products are often packed in cheap combos and come along with frequent attractive promotions. Behavioral customer segmentation As per behavioral factors, people who consume fast-food can be segmented into 4 main types: Weekenders: Consumers choose fast-food restaurants on weekly basis in order to meet their friends, treat their family or indulge themselves with burger tastes instead of normal meals in weekend. Loyalist: This type of consumers just make up a small percentage but they do visit fast- food stores frequently to have their full meal as they truly love the tastes of this food. Convenience seekers: These consumers are important customer segmentation so that fast- food chains maximize sales of their products. They purchase these food as they are people who may not have a lot of time to eat or people who do not need proper meal such as working professionals, students and travelers. Partiers: Group of people gather together in enjoy their holiday, birthday parties or special events. Psychographic customer segmentation. Customers buy their meal at fast-food stores as they find it convenient to be quickly served and can easily have take-aways. Another reason for fast-food consumption is that consumers like fast-food because it is tasty and greasy. Cheap price is also motivation for consumers while they can buy a big meal with a lot of available promotions and discounts. 2. ANALYZE THE CUSTOMER MARKET SEGMENTATION OF BOTH COMPANIES In Netherlands market, Burger King Netherland targets customer segment who are teenagers, young adults and family. The fast-food chain establishes its location around Amsterdam where it is popular city with high density of population and visitors. In term of location, Burger King Netherland has 59% of its store numbers located at cities in order to serve customers in busy cities such as Rotterdam, Utrecht and Amsterdam while 34% of Burger King’s restaurants establishes near highway. In particular, Burger King Amsterdam can easily target young customers and family who visit here as the area benefits with a lot of activities such as eating and shopping with its proximity to Amsterdam Bijlmer Arena, Royal Palace of Amsterdam, Amsterdam Central station, Amsterdam Amstel and Bloemenmarkt. In Amsterdam Arena, while Burger King Amsterdam’s customer segment is targeted in broader scale, they put their stores at cluster area nearby Amsterdam Central station and other shopping and outdoor activities in order to serve who seeks for quick services and convenient transportation. To target this segment, Burger King Amsterdam maintains their activeness on social media such as Facebook, Instagram and Youtube in order to interact more with this customer group. Otherwise, Burger Bitch Amsterdam has a smaller customer segmentation when they mainly target at young adults who would like to find an ambience to dine and hang out. Burger Bitch’s decoration concept, in similarity with its brand name, leans on restaurant bar business where alcohol drinks are also included in the menu with other options such as burgers and salad. Moreover, Burger Bitch takes advantage of its location to target consumers who enjoy activities from Afas Live, Ziggo Dome and Johan Cruijff Arena due to its closer distance to these areas compared to Burger King Amsterdam. Therefore, they target these customers by linking their food with fun experience and reaching to customers Facebook, Instagram and TripAdvior. 3. COMPARE THE MARKETING MIXES AND THE UVP’S OF BOTH COMPANIES Burger King Amsterdam’s marketing mix Product Burger King serves its customers as a quick service restaurant chain with burgers as their key products. Moreover, they also provides a wide range of products such as chickens and fishes, snacks, sides, salads, desserts and beverages. Moreover, to serve a market with growing customer’s consciousness for healthy food, sustainable products and vegan food trend, Burger King Amsterdam introduces plant based burgers along with nutrition measurement for each product. Burger made from non-artificial ingredients is also communicated in their marketing strategy to increase customer’s trust in Burger King’s commitment in freshness. Plant-based burger Nutritional facts found on Burger King Netherlands’s website Burger King campaign shows a burger gets moldy over time to demonstrate no artificial preservative Price Burger King Amsterdam follows its market-oriented pricing strategy which sets price lists considering prevailing market conditions, supply and demand as well as pricing strategy of rival companies. They will match their pricing strategy with other competitors to offer customer at most attractive prices. Besides, Burger King also applies bundle pricing strategy that allow consumers to purchase value meals and kid meals at bundle prices that is cheaper than individual order. Place Burger King Amsterdam uses 3 places to distribute its products to customers: restaurants, mobile app and websites for delivery. Burger King uses its physical stores as it main distribution channel as it matches with their strategy to provide quickly-serviced restaurants for consumers. Additionally, customers can assess to Burger King’s coupons on Burger King app to redeem special offers and freebies. Promotion Burger King uses mainly advertising on online platform, TV and print media to promote their products. They have maintain their presence on Facebook, Instagram and Youtube with frequent posts to socialize with their young customers. Moreover, Burger King applies sales promotion with coupons and offers on its mobile app and websites. Their staff are also trained to work as personal selling to motivate customers to buy more with add-on options such as desserts and drinks. Besides, Burger King uses public relations by granting scholarship for educational program by Burger King McLamore Foundation to increase their brand with corporate social responsibility activities. Burger Bitch Amsterdam’s marketing mix Product Burger Bitch provides a lot of options for dinning with main focus on burgers. Other than that, they offers sides, salads, desserts and alcohol drinks. To link customer’s dining time with fun experience, they label their product with quirky names to emphasize their slogan “burger with attitude”. Burger Bitch’s product names Price Burger Bitch also uses the market-oriented pricing strategy in their menu while their set their product prices similar to other fast-food restaurant in Amsterdam. In comparison with Burger King, Burger Bitch’s burger price is slightly higher than Burger King’s. Place Burger Bitch provides option for dinning in physical restaurant and deliveries on their own website. Promotion As smaller business, Burger Bitch does promote their fast-food restaurant by advertising on their social account (Facebook, Instagram, Tweeter and Pinterest) and TripAdvior that allows them it reach to customers would like to attend events in the area they do business. Promotions with freebies are used by interactive activities with social media users. Burger Bitch’s post to give free burger for winner’s comment Point of parity: Both Burger King and Burger Bitch Amsterdam uses online advertising to target group of young adults as these customers are highly active on social media. Physical distribution channel are important for both two companies to provide their quick services and take advantage of location strategy. Storytelling: Burger Bitch aims at young adult customers to link their story with people who will spend their youth time with boisterous events and concerts at Johan Cruijff Area and nothing better is to enjoy a tasty burger with drinks at its restaurant just nearby. Burger Bitch also name their burgers with many different names inspired by a party ambience like “The bombshell, Smoking chick, Philadelphia’s queen”. In other hand, Burger King Amsterdam delivers their story as high quality burger brand with the freshest ingredients and various options that will let its customers enjoy their indulgent time and “Be your way” as Burger King’s slogan. Burger King motivates customers to customize their meals according to their own preferences with their transparency in nutritional information in order to satisfy its customers. 4. Burger King Amsterdam’s value proposition is to offer customers reasonably priced quality foods with quick services in its attractive and clean surrounding. The fast-food chain has applied market- oriented pricing in order to entice customers with affordable prices. However, Burger King maintains its main selling points is the high quality of food and timely services. Burger King restaurants give customers good ambiance with modern and clean facility design to keep its customers coming back to their stores.