Monday, April 1, 2019
Examining Marketing Strategies for the Mauritius Fast Food Market
Examining Marketing Strategies for the Mauritius Fast Food MarketINTRODUCTIONIt is the withdraw of a new era that the unbendable intellectual nourishment industry has gradually breakthrough the Mauritius lifestyle. Due to the globalisation process, many stead tumultuous forage franchises argon now lendable in Mauritius.Whether these troubled intellectual nourishments have revolutionised Mauritius, today these products clear part of our lifestyle and culture. People rely on their convenience to enkindle their lives and productivity.But in the fast and increasing competitive business surround of today, the right viands commercializeing approach is necessary to compete with competitors. The ability to draw effective marketing strategy which enable the firm to become to a greater extent(prenominal) responsive and adaptable to the market willing perhaps more than constantly before, differentiate the winners from the losersThe rational of developing marketing strategie s is to respond to the increasing lavishly gear demand in fast food and to eventually increase the market sh ar of chicken enamour Ltd. The answer lies in the fact that grumbler make merry Ltd franchise is in the fast food industry, selling fry chicken, chips and burgers, and its important and direct competitor is Kentucky Fried lily-livered. s keisterdalmongering hex Ltd is relatively new on the Mauritian market and Kentucky Fried lily-livered has already position itself in the mind of customers since it (KFC) was launched in Mauritius in the year 1983.Chapter 1 scandalmongering joyousness LtdCompany and Product Profilevolaille revel Ltd was incorporated on the 22nd March 2001. The company is a franchise, go five product lines it sells fry chicken, chips, burgers, salads and soft drinks.In the early 2000s, with the globalisation and the growth of fast foods in Mauritius, the company has introduced the brand name of volaille dishonour in Mauritius. To cater for cus tomer needs, yellow(a) Delight Ltd has constitute up one retail shop situated at royal stag Road, Port-Louis (under the trade name of bellyacher Delight. poulet Delight Ltd is also an super innovative company with unique menu items, and to adapt the products more to the topical anaesthetic anesthetic Mauritian market, Chicken Delight has introduced 30 products in Mauritius.Chicken Delight MissionAs acceded by the manager, Chicken Delights mission is To erect fast foods that exceed customer expectations in terms of good, expense and whole toneChicken Delight VisionTo be present throughout the island, and to be the market leader in the fast food industry(as stated by the manager)Product ProfileIn Mauritius, Chicken Delight products argon manufacture within international norms and tincture to provide the maximum satisfaction to its customers. The products interchange ar Halal guaranteed. Thus whatever someones belief and culture, he or she quite a little eat Chicken De lights products.Thorough study of the product line has been conducted to meet up the different tastes and habits of different quite a little in Mauritius. In Mauritius, Chicken Delights product mix consists of five product lines, namely fried chicken, Chips, burgers, salads and soft drinks.Chapter 2 Regaining competitive gain2.0 IntroductionThis chapter will aim at assessing Chicken Delights strengths and weaknesses, its opportunities and threats through an outline of its remote familiar milieu also called macro surroundings, its specific a musical mode, also called micro environment and conducting an shapingal audit. It will conclude with a get up abbreviation typeThe full of life objective of Chicken Delight is to achieve competitive advantage. Competitive advantage is an advantage that a firm has over its competitors, offering it to generate greater gross revenue or margins and retains more customers than its competitors. It is all about profitability, and this can be achieved by either lowering costs (comparative advantage) or differentiate its product/ service of process (differential advantage) or by doing both simultaneously, so that it creates more value and can charge a higher price (Hill Jones, 2008, p104).There atomic number 18 4 competitive advantagesEfficiencyQualityInnovationclient responsiveness in all these factors atomic number 18 hear success to competitive advantage. Focusing on readiness allows Chicken Delight to keeps close control of costs, and dealing with the quality, customer responsiveness and innovation allows the company to maintain its customer loyalty and charge premium prices, in that respectby gaining competitive advantage.2.1 Chicken Delight internal and external analysisChicken Delight to generate future alternative strategies and decide which strategicalal alternative to pursue to regain competitive advantage and improve profitability, it is springy to assess Chicken Delights strengths and weaknesses, opportunities and threats.Strengths and weaknesses be internal to a company. They suss out strategic capabilities of an physical composition, which rely on its resources and competences. The objective of Chicken Delights internal analysis is to bring up its tangible and intangible threshold resources, unique resources, threshold and core competences, which allow them to compete effectively and stay ahead.On the separate hand opportunities and threats argon part of an organisations industry and macro environment. Identifying and analysing opportunities and threats in Chicken Delights working environment allow the company to determine how surpass to build on opportunities and obviate threats. It helps deciding in which areas resources need to be committed or diverted.Assessing Chicken Delights strengths and weaknesses opportunities and threats will entail analyzing their general external environment (macro environment) its specific external environment (micro environment) and conducting an organizational audit.2.1.1 SWOT AnalysisThe swot analysis summarizes key issues from the business environment and the strategic capabilities of an organization that are most liable(predicate) to jolt on strategy discipline. The aim is to identify the extent to which the strengths and weaknesses of an organization are capable of dealing with changes taking vest in the environment.SWOT provides a guide to management action and provides an excellent framework for decision-making. The main purpose of a swot analysis is to identify the strategies that will best fit Chicken Delights resources and capabilities to opportunities and threats of Chicken Delights environment, play down weaknesses, avoid threats or use creativity and innovation to turn them into opportunities. It further helps identify and coordinate a set of strategies at functional level, at business level and at corporate level. (Hill, Jones, 2008, Pg 9).SWOT Analysis for Chicken DelightStrengthsHas high p ut capacity, more than its main competitor KFCHas good customer service, staffs are well trained for dealing with customersUses fresh raw materials obtained from the local market for maximum qualityClean and tidy environment and air-conditioned seating spaceStrong brand name as Chicken Delight is well known around the placeWeaknessesWeak balance rag showing lossesNo customers after 17.00 as all the shops are already closed at that timeNo variety of vegetarian foods useableNo product innovation since its openingNo kids meal availableNo home delivery service availableSlow service to customers during peak time due to lack of staffsNarrow product line, as have only chicken chips and burgers. No beef or seek dishesOpportunitiesBeing a franchise, it can expand easily to other location as Chicken Delight has a good reputation crowd out introduce other products available at the Chicken Delights Head tycoon and thus increases the range of productsCan introduce new products for vegetarian s and for kids and introduce lean and beef productsSelling company shares to the living staffs to increase staff attribute to the companyCan try to increase market share quickly due to strong brand name and excellent location of fast foodThreatsIncrease in price of raw materialsDecrease in buy power of customers, customers will prefer cheaper foods despite less qualityPossible adit of competitors selling same kind of products at cheaper price and at a crack qualitySevere laws about food production in Mauritius may interfere with the existence of Chicken DelightFranchiser imposes new law upon its franchiseesCustomers prefer healthy foods to fried oily foodsCustomer find a nonher way of spending money and stop purchasing at Chicken Delight2.2 Analysis of Chicken Delights general external environmentThe changing environmental factors have a high impact on the success or failure of business strategy. PESTEL example are used for analyzing the general external environment (macro en vironment) of organization much(prenominal) as Chicken Delight. It allows scenarios to be developed about the future.The macro environmental factors influencing Chicken Delight are as follows 2.2.1 PESTEL Analysis of Chicken DelightpoliticalThe operations of chicken Delights are highly influenced by the individual state policies.Chicken Delight is affected by government policies on the regulations of fast food operation. Government is controlling the marketing of fast food eating place because of health issue such as cholesterol issue, cardiovascular and corpulency among the young children.Government control the license given for opening the fast foodGood relationship with government in giving benefits such as calling and tax for the company success. scotchFast food industry do have their individual concerns involving economic factors such as branches of fast food chains like Chicken delight is fritter by inflation and changes in the exchange rate.Social/CulturalChicken Delight indulges a particular variety of consumers with definite types of personalities.Young urban consumers want technology in their life and facilities such as accredit card earnings wireless Internet, cosy and relaxing ambient place and other attraction for their hangout and eating. The Mauritian population is becoming more and more health conscious and about how and what to eat. They are eating foods that are more healthier and less food with lots of oils, fat and spicy. Chicken Delight is thinking about how to offer the customer with healthier foods and also vegetarians foods.Hindu people do not take beef, and Muslim people do not eat pork. So far Chicken Delight has shown good effects in localization of its menu to suit local taste and had constantly survey and learns about local culture to better understand and design the best product for them.TechnologicalFor a fast food restaurant, technology does not give high impact on the company and it is not a significant macro environment variables. Chicken Delight is looking to competitors innovation and improved itself in term of incorporate technology in managing its operation.Chicken Delight is looking in stock-take system, supply chain management system to manage its supply.Easy payment and ordering systems for its customers and wireless Internet technology.Legal factorsAs a attest fast food operator, Chicken Delight should follow many regulations and procedures. Chicken Delight has to take into consideration legal concepts like tax obligations, employment standards and quality unavoidableness.Chicken Delight requires conforming their meat to the Halal requirement of the law. The legal requirement is important so that the company do not get a fine or their business prohibited from operating(a). milieuVegetarian environmentalist criticizes the fast food giant for cruelty to animals and slaughtering.Chicken Delight used paper packaging, and Chicken Delight was criticized for being insensitive to pollution an d this was having a high impact on the environment by throwing onward those hard to recycle packaging.Mauritius is getting concerned for environment issues and business operating should emphasise on careful usage of world resources for sustainable development and should care for environment safely and health for our future generation.2.3 Analysis of Chicken Delights specific external environmentThe common models used for analysing the specific external environment of organisations, also known as the micro environment of organisation such as Chicken Delight is the use of the porters beers 5 forces model and analysis of the competitive market structure.Porter has suggested that it is the collective strength of these forces that determine the attractiveness of the industry. Organisation should tend to find a position in the industry where it can either defend itself against these forces or influence them in its favour.Analysis of the specific environment along Porters 5 forces model reveals the micro environmental factors that affect Chicken Delight as followsThe Structural analysis of small enterprisePorters 5 forces model of competitionSource Porter 1980Porter (1980) claims, There are five forces which determine competitiveness.Porters 5 forces model would be useful to analyse the impact of structural forces upon the fast food (which is a small enterprise)Barriers to EntryIn the fast food industry, the barriers to entry are relatively low. Only a small investment is essential to see up a fast food outlet and it is not difficult to obtain a franchise from an international company.There are many marchand ambulants (street Hawkins) who can easily sell their snacks in the streets of Port Louis or even infront of Chicken Delight outlet.BuyersIf buyers are powerful vis--vis small firms, there are more opportunities to obtain discounts, supplementary services, products of superior quality and other benefits, that could only add to the costs of small firms.At Chick en Delight, buyers can very easily shift to other fast food, since they have a wide choice of products at relatively lower costs than Chicken Delight Products.Some of the fast foods available are roti, doll pouri, samoussa, gato piment, and unhinge fourre among others.SuppliersLarge suppliers produce an impact on small firms by the way they price the raw materials.Concerning the suppliers, raw materials such as chicken, potatoes, cheese, lettuces and bread are easily obtained on the Mauritian market.RivalryThe intensity of rivalry among existing firms can remain high if there are high rifle barriers. As highlighted by Stokes (1995), exit barriers that prevent small firms from quitting the industry, are-Economic constraint such as costs of liquidation or sales or loss of incomePsychological attachment to the enterpriseLoyalty to employeesPrides that comes from ownershipConcerning the competitive rivalry, there are lots of competitors in the fast food industry. Some of the direct competitors that also sell fried chicken are KFC and Rodeo Fried Chicken. Other rivals that also offer fast food are Pizza Hut, McDonald, Debonnais and other Mauritian snacks (roti, doll pourri, samoussa) and restaurants.Threats of SubstituteStokes (1995) stresses upon two ways through which substitutes might represent a real danger to a small firms products.A substitute which performs the same function, but in a different way.A substitute way of spreading money.There is truly a real threat for Chicken Delight as there are many substitutes of fast foods on the Mauritian market. These substitutes are the local foods as gato-piment, samoussa, roti, doll-pourri, the brianis, the restaurants, and also foods that can be easily cooked using a microwave.Also, people may find a better way of spending, instead than spending their money on fast foods, they may turn towards more healthy foods.
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