Marketing Communication: Global Chain Essay

Question:

Discuss about the Marketing Communication for Global Chain.

Answer:

Introduction

Burger Hut is an American global chain of fast food restaurants, which is primarily headquartered in New York; United States and was launched by Mr. Peter Carney. Mr. Carney is one of the relative of Dan Carney who is the founder of Pizza Hut. Burger Hut came to in force in June 1965 that is 51 years ago. Mr. Peter Carney with the help of Mr. Dan Carney and Frank Carney started the chain of Burger Hut restaurants. Although, Burger Hut has faced many ups and downs in its business but has evolved to be one of the known restaurants eventually.

The oil prices in 1980 had risen due to the energy crisis but due to Mr. Peter Carney’s research, the restaurants had in business for sometime but later it devised a strategy to maintain its business, which made national headlines. However, the strategy was to offer an executive lunch for the day’s price of oil. Although, this strategy was very effective but it did not last for long. In 1986, after the death of Mr. Peter Carney, his son Mr. Andrew Carney took over the business. It did take time for Mr. Carney to continue with the business with the huge debts but sooner he executed the policy “CLUBS” strategy that could be carried out. This strategy covers the variety of burgers served according to the variation experienced in price. Burger Hut strategy is developed with the mascot being “Joker” who signature would be the playing card “club.”

Company Profile

The company came into force again after the son took over the business with a new branding strategy that could attract most of the children as it highlighted with the theme of “Batman and Joker” presently depicting the Superhero concept. Although, the restaurant has been spread more in Asian side. Today, Burger Hut possesses approximately 42 outlets in Asia and 12 outlets in Northern America with 16 outlets in Europe. Although, Burger Hut comprises of only 1555 employees across the country but the number is still growing. However, the country has increased its operational size after 2007.

Background of the Product

The product first came into force with “CLUBS” strategy but the not the “joker” only with the playing card “club” in New York, United States in 1965. The product was not only driven by perfection but also possessed fresh ingredients as well as vegetables that made a fine combination of healthier taste. The product developed did hit the market well with undertaking of strategy of offer an executive lunch for the day’s price of oil during oil crisis (Sampler, 2013). Today, Mr. Peter Craney’s son Mr. Andrew Carney has expanded the variety as well as added more ingredients to the product.

Environmental Scaling

Micro Environment – SWOT

According to the SWOT analysis, the country Singapore even possesses some challenges like competition and price wars in the external environment followed by the saturated image of fast food with changing customers (children) needs as well that has been reducing day-by-day. The internal environment is in the hands of the company such that the organization needs to develop a strategy uplifts the network conditions as well as lower the price a little according to discounting strategy. However, with poor network of geographical area, the people living far off will not able to eat especially the older as well as young generation which has been working. Burger Hut should follow a proper combating strategy for the same.

Competitor Analysis

SWOT analysis gives a brief review of competitor analysis as well (Grant, 2015). Fast food restaurants have excessively much competition in surviving in the market whether it is new or existing fast food global chains. The primary competitor’s of Burger Hut are Omakase Burger, Roadhouse, Panda Express and Mc Donalds. The basic competition lies in the promotional strategy as well as price. The basic promotional strategy that distinguishes Burger Hut from other is sales promotion, product giveaways, advertisements and repositioning (Coleman, Cooke & Kochunny, 2015).

Sales Promotion

Omakase Burger has exaggerated its technique through burger patty product sales where a burger and a patty both are there. However, it reveals a two in one product taste and the package offering reveals satisfaction in every bite (Time Out Singapore, 2016).

Product Giveaways

Mc Donald’s offer giveaways in the kid’s combo and the maximum number of customers in Mc Donald’s are kids who come to take the toy that adds to the combo. However, the toy keeps on changing with cartoons and superheroes (Powell & Nguyen, 2013).

Repositioning

Mc Donald’s and Panda Express are the two competitors that have brought in focus many healthier snacks and beverages like different coffees, chocolate milks, berry blast and others in Mc Donald’s and different types of tea and coffees in Panda Express. Theses all changes have been repositioned from the teenagers target positioning to families that are health conscious (Bublitz & Peracchio, 2015).


Advertisements

The advertisement of Roadhouse burger is eye catching and traditional in a way a modern fast food product can also be a part of conventional set up. Moreover, it is famous for giving burger meals that has altogether 15 options with a different taste that does not matches any other burgers in town (Time Out Singapore, 2016).

Potential Problems in of Market Communication

The main potential problems that highlight the issue related with market communication are the high prices and the lack of sales promotion concepts.

High Price – In Singapore, there is wide varieties of players that not only upholds the major market position but are also growing because of the reasonable price they offer (De Mooij, 2013). Fast food products are available for every one’s mind and price is the second thing that the customer views while asking the different variety one can eat. However, burgers are supposed to come under reasonable dishes. Nevertheless, with high price, the organization might lose its customers and may lose the market as well (Fieldhouse, 2013).

Lack of Sales Promotion – Burger Hut lacks the promotional tools like contests and games on the burgers like MC Donald’s who act as a communication medium as well as promote sales. However, Burger Hut aims to attract kids with the “Batman and Joker” idea but it needs to keep on changing as the consumer wants and needs keeps on changing depending on the scenario (Kapferer, 2012). Although, “Joker” in Batman Series is tactful but is evil too which might create a bad impression on kids and may affect the Burger Hut sales immensely but Singaporeans are spendthrift but they would always want to spend on good quality with reasonable price.

Objectives of Marketing Communication

After analysing the environmental scaling, the basic objectives that need to be taken are based on two problems highlighted. However, the two problems with their two solutions are given in the table below.

Problem

Ultimate Solution

Increasing Competition

“Batman and Joker” (Superhero) advertisement strategy

Lack of Sales Promotion

“Night Glory” Sales Promotion

The objectives of marketing communication are to analyse the problems and to understand the mixture of elements whether the objectives undertaken are heard or understood or not. The only way one can build its marketing communication objective is by opting for print and broadcast media (Shimp & Andrews, 2013). As the structure for problems is established, the strategy adopted should be able to differentiate between two distinct products. However, keeping in mind to give a competitive hand to competitors; the strategy relating to superhero has been adopted. Although, according to the product, “CLUBS” is a “Joker’s Card” but the strategy will come to play when the joker’s card will be cut by the Batman’s card. The strategy adopted will be accordingly to the person who gets the joker card who would have to eat according to Chef’s Special' menu whereas the one who gets a Batman’s Card, can eat according to their wish on the menu irrespective of the price. On the other hand, as the theme is of a “Superhero,” the “Night Glory” promotional strategy is for the nocturnal people who get back home late from office or the ones who wish to eat anything at night, which will not only increase sales but will also help in build popularity. However, as depicted to the studies, Singapore is said to be the sleep deprived country, this strategy can help the customers by getting a discount on the night orders so that they are happier and are no more sleep deprived (Whitton, et al., 2014).

Strategies of Marketing Communications and Implementation of Tactics


Singaporeans Fast Food Intake

The trends of fast food intake highlights that 65% of the population prefer eating at fast food outlets when they are out of the home. The work life at Singapore is hectic and it will not slow down in the coming year. This depicts a strong market for fast foods, takeaways, and ready meals. According to the Alex Linton, Founder of City Nomads said that the consumers are concerned about quality rather the price of the fast food today (Cunico, 2014).

Product of Burger Hut

Figure: Poster of the Product

Source: (Created by Author)

The poster above depicts the types of burgers that are there in Burger Hut. In addition to the burger, a top up of $5 will be added if the customers wish to heat up with chilli sauces.

Figure: Deal of Burger Hut

Source: (Created by Author)

Price

According to the Price mix, there are 5 kinds of burgers, with extra toppings and beverages, the price for each burger would be as:

  • Country Burger (Normal Burger) - $7
  • Spicy Burger (Non-Vegan – Chicken/ Fish; Vegan – Cheese) - $8/$9; $7
  • Lumberjack Burger (One Layer After The Other) - $13
  • Bandit burger (Sauces Filled With Chicken; Batman Special) - $15.5
  • Ultra pound burger (Hamburger) - $17

The special features are a discount of 10% on Night Glory Hour that is 11 pm to 4 am in the morning. The meal will be followed by extra top up of $5 with extra chilli sauces. In addition, beverages listed on the menu will be ranging from $6-$12 depending what kind of beverage the customer would order (holt/cold).

Positioning Strategy

The main goal of the Burger Hut includes three qualities that are

  • Burgers of premium quality (Tastier and Healthier)
  • Beverages according to your preference
  • Different sauces as per the customer taste
  • Special Batman Burger

These qualities give a chance to the customers to acknowledge the new strategy of Burger Hut. However, with best sauces as well as fresh vegetables with premium ingredients gets a chance for the customers to add the extra spiciness while enjoying it with “Batman and Joker.”

Conceptual Map

Figure: Conceptual Map

Source: (Created by Author)

As far as the competition is concerned, the main competition lies with Mc Donald’s and Roadhouse, as these are the fast food joints that provide extreme quality but fluctuates between a low as well as high price strategy. Moreover, Burger Hut is set with the same pricing strategy to give competition to the Omakese well as Roadhouse, the local giants. The “Clubs” Strategy is to bring extravaganza taste to the customers such that with a pinch of pepper and salt with sauces according to taste can change the taste for a lifetime. In addition, it will considered to be a treat with “Batman.”

Marketing Communication Strategy and Recommendations

Advertising

Advertising uses formal forms of communication such that it deals to offer a responsibility of control to the audiences that suffer from credibility but are hard to measure. The flexibility of the tools is good as it helps in a specialized segment as it is related to media and broadcast (Mayo & Hausler, 2016).

“Burger with Batman and Joker” is a theme that has been working on the background of superheroes that can communicate their bravery to large masses. Additionally, when it comes to portraying the fast food joint, it mainly revolves on the quality ingredients, sauces, and fresh vegetables. The packaging of the good is the one material itself that attracts the view of the consumers.

Public Relations Strategy

Public Relation strategy is the overall strategy used by the firm to evaluate the trends as well as predict the consequences the planned programmes used in the organization followed by implementing planned strategies that will not only serve both the public interest and the business as well (Watson & Noble, 2014).


“Burger with Batman – Superhero” Strategy

The superhero strategy somewhere is to encourage kids to be clean as well put the garbage in dustbins through the packaging. However, coloured boxes used for packing burgers can be recycled and reused as they are of paper. Moreover, to promote public relation strategy, Burger Hut can opt for sustainable environment events in which it can even promote its burgers

Burger with Batman

Sales promotion

The sales promotion is appropriate when there is some value added to the product whereas this is an aim which can help in accelerating the growth and sales of the targeted audiences (Bax & Woodhouse, 2013).

“Night Glory” is one the important deal promotional strategy as it encloses the people after

working hours who are unable to make food after going home. However, devising this strategy has given 10% discount to those audiences who couch that in the time of night glory, they can by any goods at anytime.

Direct Marketing

Direct Marketing is used when the product needs to be sold through direct selling or face-to-face marketing whether it is in the form of phone calls or emails (Jefferson & Tanton, 2013).

Burger Hut the Fast Food Restaurant

The direct marketing strategy used by the organization is be based on the number of social media marketing tools like using the Facebook and Twitter and carrying out the recycling codes or facts that can be used for packaging (Fletcher & Crawford, 2013).

Evaluation and Control

The evaluation and control stage depicts the stage after promotional tools that help in evaluating any detection and errors that could be the indicators of failure or success in the business (Gould, 2013).

Customer Feedback

Customer feedback is the after sales service that is necessary to be recorded as the fast food restaurant like Burger Hut on any other restaurant will be able to evaluate the strategy used in the business has been beneficial or not. However, after using the service, it’s the customer who can provide a valuable feedback towards the service or the product offered was of high quality or not (Chow, et al., 2013).

Level of Brand Awareness

Brand awareness is the other factor that helps to consider whether the campaign undertaken has been beneficial or not. However, Burger Hut has been well known and has a scalable amount of brand awareness in the market (Parente & Strausbaugh-Hutchinson, 2014).

Sales revenue (Post – sales)

The post sales analysis is significant to evaluate the competitive position in the industry (Penc-Pietrzak, 2014). However, in this case, Burger Hut is suppose to be highly competitive that needs to make sure that it improves its sales and keep making profits in the fast food chain (Verbeke, 2013).

Media Publicity Generated

The advertising and sales promotion strategy undertaken will enable the media publicity to know the market ranking and positioning of the company as well (Proctor, 2014).

Conclusion

To conclude, Burger Hut has faced many vicissitudes in its venture. Marketing communication plan of Burger Hut has evolved in time. The “CLUBS” strategy adopted by the company has been competitive in nature rather it has been challenging for the organization itself to maintain it. Moreover, the adoption of superhero theme and the ongoing “Batman and Joker” had many challenges like high price, lack of sales promotion and changing needs of the consumers. Although, the marketing communication of Burger Hut in Singapore has incorporated the recommendations that could further make the company competitive but with the changing technological needs, the organization has to keep changing its nature of promotion. However, changing customer needs will allow Burger Hut to use different integrated marketing communication tools to remain spirited as well as flourishing in the name of fast food restaurants.

References

Bax, S. & Woodhouse, P. (2013). Cambridge marketing handbook: communications. Kogan Page Publishers.

Bublitz, M.G. & Peracchio, L.A. (2015). Applying industry practices to promote healthy foods: An exploration of positive marketing outcomes.Journal of Business Research, 68(12), pp.2484-2493.

Chow, K.Y., Dickson Ong, C.S., Tham, W.L. & Wong, Y.K. (2013). Factors influencing dining experience on customer satisfaction and revisit intention among undergraduates towards fast food restaurants (Doctoral dissertation, UTAR).

Coleman, L.J., Cooke, E.F. & Kochunny, C.M. (2015). What is meant by Global Marketing?. In Proceedings of the 1987 Academy of Marketing Science (AMS) Annual Conference (pp. 176-180). Springer International Publishing.

Cunico, M. (2014). Food Forward Trends report Singapore 2014.webershandwick.asia. Retrieved 1 June 2016, from

De Mooij, M. (2013). Global Marketing and Advertising: Understanding Cultural Paradoxes: Understanding Cultural Paradoxes. Sage Publications.

Fieldhouse, P. (2013). Food and nutrition: customs and culture. Springer.

Fletcher, R. & Crawford, H. (2013). International marketing: an Asia-Pacific perspective. Pearson Higher Education AU.

Gould, W.A. (2013). Total quality management for the food industries. Elsevier.

Grant, R.M. (2015). Contemporary Strategy Analysis 9e Text Only. John Wiley & Sons.

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Kapferer, J.N. (2012). The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers.

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Parente, D. & Strausbaugh-Hutchinson, K. (2014). Advertising campaign strategy: a guide to marketing communication plans. Cengage Learning.

Penc-Pietrzak, I. (2014). Competitive Strategy in Turbulent Environment. Lodz University of Technology Press.

Powell, L.M. & Nguyen, B.T. (2013). Fast-food and full-service restaurant consumption among children and adolescents: effect on energy, beverage, and nutrient intake. JAMA pediatrics, 167(1), pp.14-20.

Proctor, T. (2014). Strategic marketing: an introduction. Routledge.

Sampler, J.L. (2014). Bringing Strategy Back: How Strategic Shock Absorbers Make Planning Relevant in a World of Constant Change. John Wiley & Sons.

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Verbeke, A. (2013). International business strategy. Cambridge University Press.

Watson, T. & Noble, P. (2014). Evaluating Public Relations: A Guide to Planning, Research and Measurement. Kogan Page Publishers.

Whitton, C., Ma, Y., Bastian, A.C., Chan, M.F. & Chew, L. (2014). Fast-food consumers in Singapore: demographic profile, diet quality and weight status. Public health nutrition, 17(08), pp.1805-1813.

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