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MARKETING MANAGEMENT SUBMITTED BY: KASHIF ALI FAIZA MEHMOOD

SUBMITTED To: MS.NAHEED SHAIKH

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Letter of Acknowledgment The work on this Marketing Plan was really exciting, inspiring and had always been interesting. Our respected teacher Ms.Naheed Shaikh helped us in many ways to bring this project up to the mark. She had supported us morally throughout the completion of the plan and we all are very grateful to her, she had always been very kind and patient while suggesting us the ideas and outlines of the Marketing Plan. With this, all of us experienced the practical side of doing and handling business emphasizing on the marketing aspects and significance apart from just concentrating and studying the theoretical part. It seems that by carrying out this project we have realized what is the meaning of business and definition of marketing in the real world. It is not just selling something or providing a service but it stands stable on the pillars of customer relation building, persuading them and trying to analyze the problems of designing and launching a product and then eventually selling it. This project personally has given all of us an experience and has given a touch of how different it is to conduct business and it’s marketing from the books we study to the actual business carried out. We thank you for giving all your students this opportunity to learn something that wouldn’t have been possible if we hadn’t stepped into the fields for this report.

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Table of Contents INTRODUCTION: .......................................................................................................................... 5 HISTORY: .................................................................................................................................... 5 MISSION ..................................................................................................................................... 6 Hardee’s Logo ................................................................................................................................. 6 MARKETING OBJECTIVE: ........................................................................................................... 7 Sale objective: .............................................................................................................................. 7 Profit objective: ........................................................................................................................... 7 Product Objective: ...................................................................................................................... 7 MARKET ANALYSIS..................................................................................................................... 8 ENVIRONMENTAL ANALYSIS - PEST ...................................................................................... 9 Hardee’s Political: ....................................................................................................................... 9 Hardee’s Technological: ............................................................................................................. 9 Hardee’s Cultural / Social: ......................................................................................................... 9 Hardee’s Economical: ................................................................................................................. 9 SEGMENTATION: ....................................................................................................................... 10 CONSUMER ANALYSIS ............................................................................................................. 12 TARGETING ................................................................................................................................. 13 POSITIONING .............................................................................................................................. 15 The Suppliers: ............................................................................................................................... 16 Cultural Environment: ................................................................................................................. 16 The Competitors: .......................................................................................................................... 16 MARKETING MIX: ...................................................................................................................... 18 Product: ..................................................................................................................................... 18 Place: .......................................................................................................................................... 18 BCG Matrix: .............................................................................................................................. 20 Price: .......................................................................................................................................... 21 PROMOTION: .......................................................................................................................... 23

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FINANCIAL ANALYSIS: ............................................................................................................ 26 Television Media....................................................................................................................... 26 Print Media................................................................................................................................ 26 Bill Boards ................................................................................................................................. 26 Income Statement ..................................................................................................................... 27 Break Even Analysis ................................................................................................................. 29 Conclusions: .................................................................................................................................. 30

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INTRODUCTION: Hardee’s, known for its thick juicy charbroiled burgers, is the fourth largest fast food chain in the world. Its signature products include;  ANGUS Thickburger  Super Star  Famous Star  the Jalapeno Chicken  Santa Fe  Wraps

HISTORY: Hardee's is an American restaurant chain, which predominantly operates in the South and Midwest states. It has evolved through several corporate ownerships since its establishment in 1960. It is currently owned and operated by CKE Restaurants. Along with its sibling restaurant chain, Carl's Jr., Hardee's is the fifth largest fast-food restaurant chain in the United States after Subway, McDonald's, Burger King and Wendy's. It is headquartered in downtown St. Louis, Missouri. Although most folks knew Hardee's® for its biscuits, all that changed during the Revolution of 2003: Hardee's® decided to pare down its menu and focus on the hearty 1/3-, 1/2- and 2/3-pound Thickburger® line. Made with 100% Angus beef, Thickburger® established Hardee's® as a leader in the quick-service industry in both quality and taste. Today, Hardee's ® forges ahead with a taste for edgy, memorable ads and delicious foodcreating a fast-food experience that can't be topped this side of the Mississippi. Wilber Hardee opened his first namesake restaurant in Greenville, North Carolina in 1960. Five months later he had his first franchisee and over the years his burger chain has spread to become a favorite throughout the Midwestern and Southeastern United States. Mr. Sohail (CEO of Hardees Pakistan) has formally invite Hardees in Pakistan. During this, he met with one of his friends working in KFC. He made a team with his help and it was 2009 when he was able to launch Hardees. It was the result of his endless efforts that an out let on MM Alam road was started and made an achievement by doing record sales in 2010. After that second out let was open in Lahore (Thoker Niaz Baig) and then an out let was started in Islamabad. There are many out lets in pipe line.

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MISSION Hardee’s mission is to make the selection and purchase of quick service breakfast, lunch, and dinner products an easy, time-saving, and enjoyable experience. In doing so, the company is committed to creating an organization which puts the needs of its customers as its first priority. Hardee’s always offer the best

food, best value, best service, and cleanest environment. Taglines: “Eat like you meant it” and “Pleasure beyond measure”

Hardee’s Logo

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MARKETING OBJECTIVE: Sale objective: In the beginning, the concept was only welcomed by the higher-income segments as prices made the food unaffordable for middle or lower income classes. However, the industry has evolved since then as the restaurants now offer promotions at various hours of the day and on different products to open doors for the middle-class and low-income class The premium quality of Hardees’s Thick Burger is cannot be sold at a too lower price because then it will compromise both, its positioning as most consumers relate high price to good quality product.

Sales objective for the next two years is 50% increment in the sales of year 2013.Currently market share of Thick burger – Hardees’s 60 % ,Burger King 20% and others 20% .

Profit objective: The International brands of which these consumers are very loyal because that they would get perfect quality from our side that has not been provided by low priced local Thickburger. The reason we wish to aim at Both High and Low income group levels is that

they are a big chunk in the market, they provide us with volume and in the end it all comes to sales to gain profits. Secondly the profit objective can be achieved by reducing the operation cost. Pricing objective: Costs set the floor for the price that the company can charge. The company wants to charge a price that both covers all its costs for Manufacturing, others expenses and delivers a fair rate of return for its efforts and risks. In this case, Hardees’s charges a high price and comfortably earns a high rate of return on each product sold. However, the limited target market demands that a high price be charged so as to cover all fixed and variable costs. As there are a lesser number of units sold fixed costs are spread over a lesser unit and hence constitute a larger portion of the cost of each unit. It too demands that a high price be charged.

Product Objective: Hardee’s provide satisfaction of beef lovers by Thickburger, as in Pakistan most of the people are intended to buy upsize big burger. Hardee’s genuine burger beef patties cooked to perfection served fresh all of the burger are great but hats off to original thick burger

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Hardee’s Thickburger provide high quality in halal food and want to create attentiveness of consumer in term of Angus Thickburger.

MARKET ANALYSIS Fast food is generally food or a meal which is pre-prepared, or which can be quickly cooked when you order it. You can buy fast food almost anywhere. Although fast food trend is quite new in Pakistan yet it is growing very fast, this indicate that such type of fast food restaurant have a very bright future in Pakistan. Today, the trend is spreading fast and the industry experts believe this to be just the beginning for the flourishing industry Some reasons for the spectacular rise of the industry are that Pakistani middleclass has welcomed the cuisine due to variety of bargain deals, products, atmosphere, attitude and strict hygiene standards, not to mention more disposable income Entrepreneurs are seeing their businesses grow and profits surge as fast food gets increasingly popular in Karachi because of a variety of deals and products as well as a pleasant environment

Fast Food Industry

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ENVIRONMENTAL ANALYSIS - PEST Hardee’s Political:  Environment Regulation And Protection: Fast food industry is globally protected and no harm of declining in Pakistan  Consider Consumer And Employment Laws:it follow international rules of consumer and employment law  Controlled Trade Inflation And Tax Affected: If inflation rate fluctuate it will not affect Trade

Hardee’s Technological:  Wifi system : Facilitate consumer with Wifi technology  Charbroiled burgers: prepared burger 3, mins 30 secs  Machinery Up-to-date: all machinery is updated with accordance to latest fast food technology

Hardee’s Cultural / Social:  Charbroiled trend : society swiftly change to go with charbroiled * ,  Comfort for Families and kids : provide better ambiance for family and kids.  Beef lovers spot: Provide halal Beef to the taste seeker of beef burger.

Hardee’s Economical:  Prices dropped: Offered different deals in major occasions of any religion  Employment: Provide better salary package, appreciation and other family benefit  Global Crisis: Recession or slumps don’t affect much

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SEGMENTATION:

Market segmentation is dividing a market in to smaller groups of buyers distinct needs, characters tics, or behavior that might require separate products or marketing mixes. There are some major variables that might be used in segmenting consumer markets. These include geographic, demographic, psychographic, and behavioral variables. Marketers use either one or a combination of these variables to segment a particular market. The first variable used for Hardee’s is demographic segmentation. There is no specific age bracket for Hardee’s as everyone from kids to teenagers to adults, all those who like beef burger and taste seeker will buy it. Frequent users of Thickburger would be people who must be having an income

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of 30,000 or more per month. These may be people who are professionals, managers, official’s etc. students and unemployed who are independent on these people will also buy it. Moving on with the psychographic segmentation which includes factors like social class, lifestyle and personality. Since Hardee’s thick burger includes 100% of real halal beef patty and it is relatively classy than the other competitor available in the market. Therefore it is targeted towards upper middle class, lower upper class and upper class. People who are ambitious, gregarious and who want to strive something in life will like to eat it. Lastly we come to behavioral segmentation for Hardee’s which is mostly based on the attitudes of the user towards Beef buger. Hardee’s thickburger can be consumed for all occasions whether regular or special. The consumers of Hardee’s can attain the benefits of quality, convenience and speed. This is because it’s hygienic as competitor’s burger. Target consumers can be either potential/first time users or regular users. Through advertisement potential users can try the Angus Thickburger and if they like it, they will turn in to regular consumer. The next most important factor is attitude towards the product which is largely dependent on Hardee’s Thickburger taste. People may try Hardee’s for the first time through advertisements and other promotional strategies but a potential user will only turn in to a regular user if he/she likes the taste. And since each and every person has different taste preferences, some may have a positive attitude towards it, some may be indifferent and some even may have a negative attitude towards it.

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CONSUMER ANALYSIS Karachi has large population, in which according to our survey people who tried and Hardee’s and willing to continue thckburger taste are given below .

Hardees proves that people of Karachi specially beef lover come across the corner of city . Although the distance is quit much from Defence and Clifton but people go there for premium taste

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TARGETING Presently along with the high-end deals, Although Hardee’s is have high-class contribution but focusing on medium- and low-end deals which target the middle- and lower- income classes as they constitute a much larger portion of the population Burger enthusiast ices are regular buyers they can be students professional and belongs to upper, upper lower. Experiencers are less frequent buyers as they may belongs to upper upper, upper lower and middle upper . Striver are more frequent then experiencers. they can be students professional and belongs to upper upper , upper lower and middle upper they are fun loving and trying t build better image in their social circle

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SWOT ANALYSIS: STRENGTHS

Weakness

OPPORTUNITIES

Threats

Different Product Charbroiled Burger

No Breakfast Or Midnight Deals In Pakistan

Nutrition Description within Menus

Economic Slumps

Technology For Quality Products

No Nutrition Chart

Expansion in the City

Burger Kings Arrival And Other Burger Restaurants

Youthful Attractive Brand Image

No Website For Hardees Pakistan

Diversification

New Entrants With Even Facilities Yet Cost Effective

Premium Attractive Service and variety

Big Cause Of Street Traffic

Minimizing Production Costs

Heavy Advertiseme nt Strategies By Competitors

Unlimited Refill

No Gift Cards

More Premiums For Kids

No Home Delivery.

-breakfast

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POSITIONING

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The Suppliers: Main Supplier of Hardee’s in Pakistan MDS foods Pvt ltd. & global quick foods pvt ltd. Machinery supplied by Saudian Company .Coca Cola is the main supplier of soft drink .

Cultural Environment: Pakistanis have a very strong reflection of their culture in their buying patterns. There are some distinct features required when we shop for edible items. Firstly it has to be halal and secondly it has to have a striking flavor that is it shouldn’t be bland, and it should leave a craving for more.

The Competitors:

Angus Thick Burger is Hardee’s answer to all Bugers brands in the market. In Pakistan its main competitors include Burger King, Fat burger, Subway and McDonald burgers .KFC is not considered a competition on the basis of core concept of providing chicken .On the other hand industry competition is fierce between Burger King and Hardee’s with Angus Thickburger being the market leader in Pakistan.

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MARKETING MIX: Product: Hardees specialty is its Thickburger which is now offered in Three Flavor; Original Thick Burger, Swiss Mushroom Thick Burger & Jalapeno Thick Burger Thickburger is consisting of a beef Pattie, souses, cheese and vegetables. The size of this burger is quite big as compare to normal burger Below mention is the life cycle of Thickburger in Pakistan

Thickburger : Beef

Place: Head office of Hardees’s situated in Lahore while in Karachi a restaurants in BlockD, Hyderi, North Nazimabad, is working in operative manner. The main limitation for sale growth in is its only franchise in Karachi ,but in order to increase Sales proposed three more Hardee’s restaurant are in Karachi . Targeted locations in Karachi are Gulshan-e-Iqbal, Tariq road and Clifton.

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BCG Matrix:

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Price: Because the company has created a high value perception in the minds of the consumers about their product, Hardee’s can now utilize this image to charge a higher price using the psychological pricing concept. Hardee’s consider following factor before setting prices     

Marketing objective of Hardee’s Manufacturing expenses Demand of their Hardee’s burger Price elasticity of thick burger Competitors cost, prices and offers

Historically prices have been set by negotiation between buyers and sellers. Fixed price policies are a relatively modern idea that arose with the development of large-scale retailing at the end of the nineteenth century. While costs set the lower limit of prices, the market and demand set the upper limit, consumers balance the price of a product or service against the benefits of owning it. Under this Competition, pricing decisions are highly sensitive of the competitor’s decision. If the

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prices of Burger King & Fatburger, which it considers its main rival, go down The Hardee’s will have to respond promptly to restrict burger king and fatburger from taking away its market share. As both brands are similar and promise the same high quality the consumer will not hesitate in switching over to the other product if price rise. However, the target market of Hardee’s thickburger is generally indifferent to the price change and would continue to buy even if the prices rise. Consumer perception also plays an important role in determining the prices. A perception that envisions the product as high quality will compel the consumer to pay the high price. If this perception is somehow distorted or fails to develop, the consumer will refuse to pay the excessively high price that is charged. Competitors’ Costs, Prices, and Prices In setting its price, the company must also consider competitors’ costs and prices and possible competitor reactions to the company’s own pricing moves. A consumer purchasing Hardee’s Thickburger will also consider the price and value of the burger King and Fatburger Burgers.

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PROMOTION:

Advertising is any paid form of non-personal presentation and promotion of ideas,

goods, or services by an identified sponsor. Advertising is the most effective way of communicating a message to the masses of geographically dispersed buyers at a low cost per exposure, plus helps the seller repeat the message several times. 

For this purpose , co branding of Hardee’s and national food is proposed

To grab attention plan special occasions promotion by offering discount deals(Christmas , New Year ,Valentine day , Mother’s day ,Ester ,Ramadan ,Eid-ul-fitar , Eid-ul-azha )

Develop Hardee’s website for Pakistan.

Develop a TVC for Hardee’s of 20 second

Print ad:print adin newspaper ,Banners hanging in Malls, Universities near Hardee’s Billborad on Hasan Square,NIPA, JoharMor, Shahra –e- faisal , Shaun Circle and Sea view .Ambient Marketing on Tariq Road and Boat Basin.

Launching Hardee’s Thickburger Mobile apps.

Hurling Social media page to

Promotional Van to show the presence

Distribute Gift Card by Lucky draw

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FINANCIAL ANALYSIS: Television Media

Print Media

Bill Boards

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Income Statement We Estimated Below Income Statement of The First month. The Statement Showing that we are in loses.

Hardee’s Angus Thickburger Monthly Income Statement (First Month) Revenue

10,00,000

Net Sale [60*650(31days)]

12,09,000

Raw Material Cost

(100,000)

Labor & Salaries

(150,000)

Utilities

(40,000)

Cost of sales

(290,000)

Gross Profit

919000

General Administrative & Selling Expenses Office Furniture &equipment (Machines)

300,000

Miscellaneous Expense

20,000

Research and Promotion Expanses

10,00,000

Total Expense

(13,20,000)

Income Before Tax

-401000

Financial Charges (18%)

-72,180

Income After Tax

-473,180

Monthly Profit After Tax

-473,180

We Estimated Below Income Statement after 2 months. The Statement Showing that our daily Sale of Thickburger is Increasing, It means that we earn some amount from it.

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Hardee’s Angus Thickburger Monthly Income Statement (Second Month) Revenue

10,00,000

Net Sale [80*650(31days)]

16,12,000

Raw Material Cost

(100,000)

Labor & Salaries

(150,000)

Utilities

(40,000)

Cost of sales

(290,000)

Gross Profit

13,22,000

General Administrative & Selling Expenses Office Furniture &equipment (Machines)

150,000

Miscellaneous Expense

20,000

Research and Promotion Expanses

700,000

Total Expense

(870,000)

Income Before Tax

452,000

Financial Charges (18%)

81,360

Income After Tax

533,360

Last Month Ending

(473,180)

Monthly Profit After Tax

60,180

We Estimated Below Income Statement after 3 months. The Statement Showing that our daily Sale of Thickburger is more increasing as compare with last month, After Three month we gain more profit as compare with last months and our expanses also decrease And in the 3rd month we also increase salaries and labor wages and the raw material also increases but we balance it with the increasing number of sales.

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Hardee’s Angus Thickburger Monthly Income Statement(Third Month) Revenue

10,00,000

Net Sale [100*650(31days)]

20,15,000

Raw Material Cost

(120,000)

Labor & Salaries

(200,000)

Utilities Cost of sales

(40,000) (360,000)

Gross Profit

16,55,000

General Administrative & Selling Expenses Office Furniture &equipment (Machines)

100000

Miscellaneous Expense

20,000

Research and Promotion Expanses

600,000

Total Expense Income Before Tax

(720,000) 935,000

Financial Charges (18%) Income After Tax

16,830 1103,300

Last Month Ending

60,180

Monthly Profit After Tax

10,43,120

Break Even Analysis The all Above Income Statement Showing that the 3rd month is our break even periods because in the 3rd month we achieve our revenue which was we estimate to recover our all operating capitals.

Note: All the above financial calculation is made upon Estimation and forecasting by assuming and predicting. Errors and omissions are accepted.

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Conclusions: It is highly important that a company takes in to account all the possible issues that can arise related to the product especially limited location issues. Coordination in all is a key factor to a company’s success. Coordination with its customers, with its suppliers, marketers, and with its environment is extremely important. And for effective coordination a company needs effective communication process. Thus it is important that a company strengthens its various communication channels. In an increasingly globalize world it is important for the companies to have their channels well webbed, integrated and coordinated.

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Hardee's angus thickburger