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Background of

Panda Express is a restaurant that deals with fast food serving . It is a child company of the famous that was founded by Andrew Cheng, his father, chef Ming Tsai Cherng and Peggy Cherng launched in the in 1973. It was Glendale Galleria who birthed the idea of fast food restaurant in Cherng’s mind thereby causing him to launch the Panda Express in October 1983. The second branch of Panda

Express was launched in the second year at Westside Pavilion in 1985. From then, Panda has gradually expanded across the United States of America. The first Chinese – American dish was the orange chicken, which was developed in 1987 by chef Andy in Hawaii. Initially, this restaurant was located only in food courts within shopping malls. The first stand-alone branch of Panda was launched in 1997 in Hesperia, (Liu 10). The major branches are found in Mexico City, Guatemala City, Dubai (2014) and South Korea 92014).

Products/ service of a blend of both

Panda Express deals in gourmet Chinese foods made out of fresh ingredients only. They offer full package meals, from cheap food to larger portions as well as good services rendered to the customers. The orange chicken is the most famous of all its food. Their foods are calorie standard for each serving. They contain less than 245 calories. These foods are like the Kung

Pao Chicken, Broccoli Beef, the Shanghai Agnus Steak, Beijing Beef, Chicken Breast, and

Honey Walnut Shrimp (Liu and Lianlian 34). They are served in bowls alongside freshly chopped vegetables such as red bell peppers, yellow onions, and sugar snap peas to meet dinner and lunch perfections. New dishes introduced recently are the Wok-Seared Steak and

Shrimp. Panda Express experienced chef crafts a remarkably complete and quality American dishes. Its dishes are made from premium ingredients linked to Steak House Entrees as well as juicy Angus Top Sirloin Steak (Panda Express). 2

Table 1 The table below shows Panda Express Nutrition Facts ) g m ( M ) ) l g E g ) o ( g T r t ) m ( I ( e s a g t f ( e n s m i U i s r e r u e l N n i a t o o l a g t d o E a h r a r o u M C F T C S S P SIDE

Chow main 510 20 0 0 860 9 13

Chow Fun 410 9 0 0 1110 6 9

Fried rice 520 16 0 120 850 4 11

Supper Greens 90 25 0 260 0 4 6

VEGETABLES

Eggplant tofu 340 24 0 0 520 17 7

CHICKEN

Black pepper 280 19 0 55 1130 7 13 chicken

Asian chicken 340 13 0 195 630 10 41

Orange chicken 490 23 0 80 820 19 25

Potato chicken 190 10 0 30 680 4 8

Product Assortment

The product assortment is the collection of both goods and services provided to the consumers by a given company or business entity. Panda Express has established a more perfect combination of dishes to suite their customer’s needs. “Choosing the right combination of dishes to serve the customer was never an easy task.” Chef Jimmy Wang said.

The many food varieties served at Panda made it even harder to come up with a combination that electrified their customer. A combination like orange chicken served with fried rice was the best combinations made. Quite a number of customers went for Grilled Teriyaki Chicken 3 combined with Steamed rice with super greens. As customers flowed in and out of the restaurant, new combinations such as Broccoli Beef with brown steamed rice and string bean chicken breast among others attracted a good number of customers (Liu & Jang 22). Panda

Express serves complimentary dishes such as mixed vegetables, white steamed rice, black pepper among others, and appetizers such as egg roll, cream cheese Rangoon and crispy shrimps to satisfy their customer's appetites. The restaurant is also pocket-friendly since the dishes are highly affordable.

Line Extensions

Line extension occurs when a company introduces extra commodities in a similar product category within similar brand name. With the changing customer demand and appetites,

Figure 1 Panda Express Major Combinations Panda express had to ensure the durability of its heritage. Chef Wang came up with the wok

Fired shrimp, which entailed more better ingredients mixed together to bring out magic no customer could reset (Liu & Jang 338). According to Panda Express, Chef Jimmy recommended these entrees combined with steamed rice and supper greens. The kung Pao

Chicken, Beijing Beef, Grilled Teiyaki Chicken were introduced in the line of chicken dishes served in the restaurant.

Brand Extensions

The famous orange chicken was the main chicken dish served in Panda Express restaurant for a long period of time. However, the kitchen felt the need to introduce other chicken variety initially under the orange chicken. The string bean chicken and the sweet fire chicken were served for some time as the original orange chicken until they gained popularity. 4

Product Mix Decision

Product mix entails the full range of the restaurant products offered to the customers. This decision enables the restaurant to compete well in the open market. Even though Panda

Express has no deep product variety, the consistency, and length of their dishes balance their market position. Being a dinner and lunch restaurant, Panda Express is limited to serving strictly fast dishes. However, these dishes have a lengthy complimentary dish that the restaurant uses to attract its customers(Liu et al. 382). The ideas of side dishes and appetizers made the dishes worth taking.

Branding Strategies

In order to obtain a strong market value and brand equity, Panda Express pushed market borders through a series of innovations in 2014. Dave Wallinga said the innovations were aimed at maintaining the relevance of the restaurant and its brands across the globe. Panda

Express come up with a brand-new logo with a different face from the old one. It was brighter and had wider letters. Panda also came up with a test kitchen concept in Pasadena in

2014 aimed at trying out new menus (Liu et al. 77). The Panda Anda You initiative tells the story of Panda Express in connection to family, and food style served in the restaurant.

Brand Quality of Product

Given the different brand of dishes served within the restaurant, Panda Express chef Jimmy influence the quality of dishes for the better. The orange chicken brand won a five-star rating by the customer. According to a blog by trip advisor Malaysia, Shanghai Angus steak,

Beijing beef, and black pepper chicken are a few brands of dishes that received quality assurance from the customers. 5

Product Life Cycle (PLC)

In the past years of growth, Panda Express had challenges in establishing its products.

However, with its global growth, the dishes served have made it to the maturity stage.

Despite this, a rating by Jeff Miller left placed the black pepper chicken at the growth stage.

Nature of services

Panda Express offers a variety of customer friendly services. The online ordering service and the delivery group who charge varying prices with regard to customer location. Food services are non-heterogenous in the restaurant. The website and mobile application ensure delivery of orders to the customers. Customer services are fixed regardless of the status of an individual hence indiscriminative services (foodpnada.com).

Price

Pricing objectives and policy

In order to face the challenge of competition, Panda Express lowered the prices of its dishes to fit the customers. Original orange chicken goes for as little as $6.0. This objective equally aimed at increasing sale volumes for the restaurant hence increasing the returns and profits.

This pricing policy has helped the restaurant to maintain its customers. Below is a sample of panda pricing.

Figure 2 Panda pricing 6

Internal/ external factors affecting prices

Since Panda Express kitchen uses fresh ingredients and vegetables that demand continuous supply, the prices of dishes tend to fluctuate with regard to the availability of the products.

Black pepper is a seasonal ingredient that keeps altering the price of black pepper chicken and other meals (Susanto and Patricia 48). The yellow onion might absent the market for some time, and since it served as a complimentary dish with Beijing beef, it might change the price of the dish to meet its purchase cost.

Cost-Based Pricing

Panda Express constantly reduce cost of its products. Since most of its products are produced and sold within the restaurant, prices tend to be lower except for the distribution in cases where a customer is located far.

Value-Based Pricing

Panda Express does not engage mostly in value-based pricing since its dishes are solid foods that take on stable prices that must be prices based on production and distributions. However, the soft drinks sold here have no value – based prices. The fountain drink goes for as little as

$1.5 while the juice is at $1.9.

Market – skimming pricing

Panda Express dishes do not need market skimming pricing since the dishes are aimed at serving the customers of all status throughout the seasons. The pricing of new products is entirely done using cost-based pricing.

Market – penetration pricing

The low prices in Panda Express are not for market penetration. Panda does not set low prices to eliminate competition but rather to dispose of their dishes to all customers affordably. 7

Discounts, promotions, and coupons

Panda allows discounts of up to $4 for family feast ordered online. The promotion codes however expire after a single night(Susanto and Patricia 342). Restaurant.com offers coupon codes for online buyers only.

Exclusive offers

Customer service practice by panda express is when employees offer customer free trial sample of any dish. This mostly happens when there is a new dish in the restaurant.

Seasonal pricing

Seasonal pricing is not affected much by the restaurant since the dishes are served and paid for upon completion of service.

Comparable to competitive

Panda Express products are international. They can be compared only with others of their equal such as those served in a global five-star hotel. These dishes compete well in the market.

Incentives to retailers

Pandas’ retail shops are the branches themselves. The incentive advisor Ariz (2011), helps the restaurant improve profit. After identification, the advisor administers and secures incentives from the government. On the 27th of September 2011, Ariz announced the purchase of incentive tax credit solution.

Promotion

Panda Express employs a number of methods such as integrated marketing communication advertisements, promotion mix, social media platforms, public relations and sale promotion in promoting its products and services 8

Integrated marketing communication (IMC) program

Products and services following this promotion method employ diverse communication tools working together to increase the impact on the targeted consumers. According to

Fitzerpatrick (2005), this method utilizes the union of unmistakable work correspondence in ways that give strength to relationship to converse in one way. Panda restaurant executes a variety of correspondences display it needs to meet a common goal and support brand advancement. Fundamentally, Panda Express has ideally showcased changes in mechanical advisement on how it relates to its customers (Panda).

Promotion mixes

Panda uses a combined range of marketing communication ways in order to execute its activities in marketing. Here, panda uses advertisements for brand promotion. The winning of the City of Los Angeles Award n 2008 took Panda’s’ public relation to another level. Its annual events like Panda Cares Charity Golf Imitational and Panda Express MESA Day

Preliminaries held at USC in 2019 lead to a reputable relationship with the public.

Further, its role in aiding the communities grants it a good reputation. In 2017, Panda leaders raised a total of $10 million for children’s hospital in Los Angeles. Panda Founder Andrew

Cherng was quoted saying, “Our passion for giving means that we contribute to the communities in which our restaurant operates in any way we can.” Personally, the restaurant has managed to ship its products across the globe using online marketing strategies with good and reliable delivery programs (Panda restaurant group.inc)

The tone and feel of the ads

Wok-seared steak and shrimp advert on television referred to the two dishes as “the finer things.” In this advert, personal experience was is shared by the advertising man through childhood memories of shrimp. The man’s son is excitedly seen holding up chopsticks he speared through the steak shrimp bits. The two are seen enjoying the dish available at all time 9 in the restaurant. Panda Express not only engage in word ads but provoke equal emotions regarding every dish posted on an advertising platform (iSpot.tv, Inc.). From the pictures of the meals available in the panda web, one would definitely feel the urge of having a dish in the restaurant.

The target audience

The major target group of Panda Express are the Chinese, Japanese, and Americans college and mall goers and professional workers aged 18 – 40. However, the dishes in its restaurants are undeniably delicious to meet the needs of any visitor. Its Chinese dishes crafted in

America for the American audience by its co-founders makes the restaurant a complete of to a whole new cuisine.

Direct mail and direct marketing

The head office in Walnut Grove Ave, Rosemead in California USA has verified information regarding the restaurant for direct contact with the administrators in case of complains or guidance and queries. The Panda Express website and twitter handles are also available online for marketing. Customers who send query mails become targeted groups for marketing

Panda Express products. Through the emails, Panda notifies the customers of any discount that they have both long term and short term. Social media platform users are also made aware of the brands in the restaurant. Through this, the restaurant has been able to set realistic goals and improve its sales.

Internet/ banners

Panda Express has employed these tactics in promoting its dishes globally. The internet is a major promotional platform for its dishes. Over a thousand Panda Express banners can be found in the express media. The banners are sized to 44 * 30 measurements. The welcome home banner speaks so much to the visitor and offers a welcoming tone to them. Their banners are made to withstand adverse weather conditions. On the internet, these banners 10 come with a variety of themes ranging from military homecoming to golf signs. However,

Panda Express offers freedom for their customers to upload their own desired themes or photo.

Digital marketing and use of celebrities

Panda Express digital marketing director in Los Angeles estimated the salaries to range from

$123,220 - $134,000. These estimations are based on statistical reports, and information’s provided by Panda Express employees. Panda Express uses digital platforms like Facebook,

Instagram, Twitter, Zomato, dine out, burp, swiggy, and foodpanda to market its dishes online. The restaurants have more than 140k likes on its Facebook page, 2.1k followers on

Instagram, and more than 1.5k followers on Twitter. Panda Express uses Facebook as its main social media marketing platform.

Panda Express has incorporated the use of harsh tag campaigns and festivals as well as contest post. For example, the #IndiaKaPyaar, which is basically the Rakhi and Diwali festivals. A 1:48 duration advert on YouTube by Panda Express featured one of the top

Chinese artist Jing Wei (PandaExpress Tv). This collaboration furthers the restaurants marketing strategies in reaching a wider target.

Word of mouth

According to a report by Sarah Deen, a group of boys’ bands called BTS in an interview with

Phoenix’s The morning Mess, stated that Panda Express is their best restaurant to grab grub.

They offered to roam the American streets just to make known to the people the dishes in the restaurant. Panda Employees also promote their products inside the restaurants. In August, member V informed the people that Panda Express gave the best food of Los Angeles. 11

Socially Responsible marketing

Panda express not only aims at profit making but also in establishing a good environment for society. It has put in place efforts to save the panda from extinction. It has put in place a wildlife conservation measure amounting to $7billions.

Social media sites, Apps, Media sharing sites and level of mobile advertising

Social media platforms help Panda Express to distinguished itself from other restaurants. The restaurant is amongst the topmost casual restaurants in social media. It heavily utilizes

Facebook and has more than2.1k page likes. Twitter is also an important media site for the restaurant with its handle @PandaExpress. These platforms help the restaurant to promote its products and services online.

The panda express app is available on google play store. With a 3.5-star rating, this app brings the restaurant closer to the customers. In it are all types of products and services provided by the restaurant. The APPsolutely free orange chicken sweepstakes were launched on 2018 October. One the app has been downloaded; the customer creates an account to log into the restaurant’s diverse menu. Offers and promotions are also targeted by this app.

Panda Express uses foodpanda app to service online buyers. Here, they can create their own account and upload their themes and pictures. The app also has a live chat feature that gives users instant assistance when needed. The users can access a wider variety of cuisines and select their premium restaurant

Place

Product distribution

Panda express distributes its products globally. It has flags in Australia, India, Singapore,

Ireland, UK, US, New Zealand, and many other states. By the aid of its global branches, the restaurant has been able to reach so many countries at large. 12

Type of distribution

Panda Express uses intensive distribution only when it comes to coke and other drinks. Coca- cola manufacturers supply the restaurant with the product, thereby making it an outlet(Liu

101). However, the restaurant depicts an intensive distribution type in that the soft drinks can equally be found in other outlets across the globe if absent in one Panda Express branch.

Number of channel levels

Panda Express being a fast food restaurant dealing in consumable goods is limited to a zero- channel level of the producer to consumer with no intermediary in between.

Distribution channels

Panda express distribution channels provide a link between the production of food and its consumption. Its major distribution channel is the producer-consumer channel. Panda Express produces its products and directly sell to the consumers without any intermediary in between since the products are highly perishable and hence cannot be stored further or transported via a long distance. The relationship is one way only as shown below.

PRODUCER CONSUMER

Figure 3 distribution channels However, international distribution channels are achieved by the branches in various countries. They narrow the order delivery distance between the producer and the consumer.

Disintermediation

Panda Express has no intermediary in its supply chain. This channel is strictly a zero- distribution channel since its end channel is the consumer. 13

Work cited

Libby, G. W., (2006). Historical notes on Chinese restaurants in Portland, Maine. Chinese

America: History and Perspectives, 47-57.

Liu, Haiming, and Lianlian Lin. "Food, culinary identity, and transnational culture: Chinese

restaurant business in Southern California." Journal of Asian American Studies 12.2

(2009): 135-162.

Liu, Haiming. From Canton Restaurant to Panda Express: A History of Chinese Food in the

United States. Rutgers University Press, 2015.

Liu, Ting, Xiaochun Wang, and Len Marquart. "Factors influencing the use and consumption

of brown rice in Chinese restaurants." Journal of Foodservice Business Research 19.1

(2016): 77-88.

Liu, Y., & Jang, S. S., (2009). Perceptions of Chinese restaurants in the US: what affects

customer satisfaction and behavioral intentions?. International Journal of Hospitality

Management, 28(3), 338-348.

Susanto, A. B., and Patricia Susanto. The dragon network: Inside stories of the most

successful Chinese family businesses. John Wiley & Sons, 2013.