Marketing Essay For Fast Food Restaurant Business.

Discuss about the Marketing For Fast Food Restaurant Business.

Target Market Analysis

The market segment for a fast food restaurant business considers the features and services which is offered by the business and on the basis of which the target market of the business is decided. The table which is shown in the table below depicts a class of people who are the target markets of the business:

Figure 1: (Table showing Market Segmentation)

Source: (Created by the Author)

The table which is shown above depicts the three market segments which is targeted by the fast food chain. The market segments “I like it” depicts the group of customers who are attracted to the products which are offered by the chain. This segment depicts the loyal customers of the business and such customers are normally attracted towards the quality and aroma of food which is offered by the business. The second segment reveals a group of customers who like the easiness of getting outside food instead of cooking and wants to adopt a hassle-free approach. This segment of the market are basically local customers who like to adopt an easy option instead of cooking the product. The third segment which is shown in the table reveals the customers who are pressed for time and such customers are pressed for time and are not regular in nature but are frequent. The focus of such customers is to save time and grab a quite bite in the process.

On the basis of the target market analysis, the business should go with the first segmentation as they are loyal in nature and can become regular customers for the business. The main advantage of such customers is that they are loyal and with a little effort from the management of the fast food chain and can also help in developing a brand image of the business. The loyalty of the customers can help the business in generating more and more revenue for the business. This market segment also likes variety in their food products and therefore they are success in business. The first target market would help the fast food chain in developing and enhancing the revenue of the business.

The question identifies one of the online retailing sites and the business is regarding as one of the leading online businesses sites and a large variety of products are available to the business. The quality of services which is provided by the business is of the highest quality. The table which is shown below reflects the quality of services of eBay:

Figure 2: (Table showing Analysis of Quality of eBay)

Source: (Created by the Author)

The table which is shown above reflects the site quality and retailer quality of the business of eBay. The site quality aspect which is shown in the table above reflect the ease of use, processing speed and entertainment. The ease of use is shown to be 68% which is appropriate in nature and the same suggest that website is appropriate to use. The process speed of the website is of the highest standard and the same suggest that the quality of the website is appropriate in nature. The entertainment aspect of the website. The website has lots of advantages and also the overall quality of the website is also shown to be appropriate in nature and the overall quality of the website is shown to be 68% in average considering all the aspects.

Quality of Services

The reputation of the retailer is also high which is shown to be 84% and the same reveals that the customers has ample trust over the products which is offered by the business and the business also has an efficient delivery system which allows the management to effectively distribute the products in the area. In an overall estimation, the quality of the retailer of the business is shown to be 72% which is significantly high and the same suggest that the business is performing well. 

The article which is given in the question is related to a fake meat product which is recently being developed for future consumption and also considering the health status of the consumers. The new product would be effectively replacing the real meat products and burgers which are quite popular in the market. The article shows a new form of meat burger has been developed which is impossible burgers and the same is also distributed by some of the leading grocery chains in the market. The new meat product which is being introduced in the market is produced with the help of plant components and another recipe for the same is with the help of animal cell which are then further developed in lab. The article also mentions some of the products which are already developed or are at its developing stage such as impossible burger, beyond meat burger and similar other products.

The pricing strategy which should be applied in this case by businesses should be market penetration. As per this strategy, the new products are offered by businesses at a lower price and the same is adopted so that the business is able to attract customers and also ensure that the products which are offered are of highest quality. The pricing strategy allows businesses to acquire maximum portion of market share of a country (Jacques, Manaugh & El-Geneidy, 2013). In addition to this, the product which is being offered is durable in nature and therefore cannot be preserved for long and hence penetration strategy is the most effective strategy available to businesses. The penetration pricing strategy also allows businesses to recognize and collect market information as to how the market is reacting to the new product and further allows businesses to make plans for the future as to how to proceed with the new product in the market.

In order to decide the price of a combo meal of the fast food chain restaurant, statistical analysis is considered for estimating the range of price which can be charged for the combo meal. The table which is shown below depicts the price estimating process for the combo meal of the business:

Figure 3: (Table showing Statistical analysis for Computing Price Range)

Source: (Created by the Author)

The above table effectively shows the computation of the price range which can be considered for the combo meal of the business. The mean is computed which reveals the average price which can be charged by the business and the same is shown to be $ 8.90. The number of observation which is being considered for this assessment is 21 and the standard deviation which is computed is shown to be $ 3.56. The lower limit of price which is computed is shown to be $ 7.38 and the upper limit which is computed is shown to be $ 10.43.

Pricing Strategy

The above image shows a positioning map for the products which are offered by the business. Dimension 1 reflects the brand which is being considered and Dimension 2 portrays the attributes of the brand which are considered. The product which is being introduced should be placed in the positive quadrant as the brand and also the attributes of the brand should be positive. This will allow the business to attract more and more customers to the business and thereby also increase the overall revenue which can be generated by the business. The positioning should also be done with a view point of target market of the business and also to build a strong brand image of the product which is to be offered by the business.

The revenue which is generated by the brand iphones which is a product of apple brand. The trend line which depicts the fluctuation in revenue of the business shows that the market is dynamic in nature and a small change in any factor related to the product or company can adversely affect the business. The trend line shows that there is a slight rise in the revenue of the business which can be considered to be a positive factor. The above chart effectively shows estimates on the basis of quarter and the most recent analysis is shown for the fourth quarter of 2018. The revenue of the business is shown to be on the rise in the figure which is depicted above which signifies that there has been a sales growth in the product and this also means that the company is able to generate more revenues from the market. 

Brand building is the process to effectively build a reputation of the business and also its products by following certain promotional strategies. The brand building process applies various types of tools such a price, advertisement and other promotional tools as well for the purpose of promoting the product of the business.

In case to build a brand image for the product of the business, the management can use social services as a tool for building a reputation of the business in the market. The business can contribute to the needs of the social by protecting the society from any wastes and establish policies such as ban of plastics in the business can be major steps in building a reputation in the market (Spann, Fischer & Tellis, 2014). The society takes notices of any businesses which are dedicated to CSR practices and thus this built a strong image of the business in the eyes of the public. The activities of the business can help the business to gain popularity in the market and this can lead to increase in revenue generation of the business.

The product which is considered for this question is a tobacco product for which reduction in advertisement and promotion only leads to increase in sales of the business. The sales revenue of a tobacco business does not depend on advertisement as the demand for the same depends on addiction of the users of such an product. 

Figure 6: (Graph Showing Scatter Diagram)

Source: (Created by the Author)

The above figure which is shown a scatter plot which is shown for the company of Acer Inc. The above graph shows that the trend line is slightly shifting downwards. The above graph shows a comparison between American Customer Satisfaction Index and Gross profit margin of the business. The downward sloping of the trend line shows a negative relationship with the ACSI and Gross Profit Margin. The R² is shown to be 0.0184 which is unfavorable and must be improved by the business. There is a inverse relationship between ACIS and Gross Profit Margin. 

Figure 7: (Table Showing computation of Return on Investment and Sales)

Source: (Created by the Author)

The computation of return on investment shows the gross profit margin and sales of the business. The new marketing contribution is also computed considering the gross profit margin and sales and also expenses of the business.

Reference

Jacques, C., Manaugh, K., & El-Geneidy, A. M. (2013). Rescuing the captive [mode] user: an alternative approach to transport market segmentation. Transportation, 40(3), 625-645.

Spann, M., Fischer, M., & Tellis, G. J. (2014). Skimming or penetration? Strategic dynamic pricing for new products. Marketing Science, 34(2), 235-249.