Due Date: 30th OCT 2010 Submission Date: 30 th OCT 2010
MARKETING MANAGEMENT-II Case 5 The Popeyes Chicken Submitted by: Group 4
Name
Roll No
Batch
Phone No
Foreian id
Arpansen Gupta
43013
IMG 4
727196515
[email protected]
Chetan Sharma
43017
IMG 4 9811868332
[email protected]
Irshad Ali
43027
IMG 4 9560035670
[email protected]
Puneet Jain
43039
IMG 4 9582408730
[email protected]
Sudhir Mishra
43055
IMG 4 9868070988
[email protected]
Fore School of Management B-18, Qutab Institutional Area, New Delhi, India
The Popeyes Chicken- Summary Jay Mary initially started with his family owned chain of supermarket and later switched to restaurant business. Change in the life style of the people and increased competition made Marys supermarket chain less profitable. The people are so much involved in their professional life that they find very little time for themselves, so they prefer eating out usually was what he inferred. Mary had also read in an industrial publication that fast food business is now in mature stage. It is normally believed that, if a business is in matured stage then it will be difficult for the newbie to enter the market. National Restaurant Association estimated that in 1983 fast-food restaurant sales will exceed $37 billion. Sales in the chicken segment were approximately $4 billion and were predicted to increase by 20 percent in one year. As the demand is very high in the market, existing players were rapidly growing. Mary then decided that if the market research says that Popeyes hot-and-spicy Cajun-style chicken is liked and appreciated by the people in the Minneapolis St. Paul area, then he will own a franchise. At that time, Kentucky Fried Chicken was the market leader which controlled half of the market, having ten times more units than Popey es. Popeyes stand third in rank with twice the sale of Kentuckys chicken.In 1983 Popeyes had about 400 fast food outlets in 30 states,across the several countries. The typical Propeyes customers weretypically upbeat, young boys and girls. As hot and spicy chicken was USP of Popeyes, so to give them competition Kentuckyintroduced its own hot-and-spicy chicken in 400 of its restaurants. Another hot-and-spicy chicken franchisor, Bojangles, had also entered the market since Popeyes came on the scene. Bojangles had been successful in this business, but again in the South. After having a look on the market research, Mary had determined that the most likely customers were those with children, of whatever age. He also learned that families with working mothers also tend to eat out more frequently. According to the survey done: 35 30 25
20 Male 15
Female
10
5 0 $4.00 +
$3.01 to 4.00
$2.50 to 3.00
Less than 2.50
Frequency of Eating Out:
Per Month
18 24 25 34 35 49 50 64 65 +
Q uestionsfor discussion Q1.Do you believe Mary has adequate inputs to decision-making or is it that he reall y
needs an real and good research ?
Mary does not have sufficient inputs to decision making. It needs more research that is directed towards gauging whether or not people in the St. Paul Minneapolis area would react favourably to the hot-and-spicy chicken. All the researches provided to Mary do not confirm that how the people in Minneapolis will react to it. One more fact supporting this would be that all the successful joints have performed far better in south than in Minneapolis. Although the basic aim of any research is to decrease uncertainty and provide an directional input, the secondary researches at Marys disposal does not confirm and answer to any of the concerns that Mary has regarding how people will accept the hot-and-spicy-chicken. The other positive outcomes of the secondary research like growing income and eating out trends must be complemented by a primary research wherein a proper questionnaire is drafted to people at Minneapolis about their likings and views about the growing the fast food industry.
Q2.What is your groups understanding of market research? What might be in your groups
opinion characteristics of good market research?
Market research is an organized effort to gather information about markets or customer. An research could be stated as an Objective, Systematic Process using statistical and analytical
methods of doing various things. It has two functions:1) Line Function 2) Support Function An research can only give the directional input as it can never give the results with 100 percent surety. Any research will become market research if they end up in accruing two types of data: 1) Primary Data Done by the company itself by surveying or hiring an agency. 2) Secondary Data Mostly the research data available through mediums like magazine, websites, blogs etc. Market research is done to understand the target market and the segment which it hopes to cater to. A good market research is about analysing the competition, consumer behaviour and market environment and coming up with strategies that stand to gain the best. Characteristics of good market research: 1) The market research generally arrives at a conclusion either in percentages or the averages. 2) It provides the directional input to the strategy. 3) It can never give 100% certain results or the results with 100% probability. 4) A research should be : a. Timely b. Relevant c. Efficient d. Accurate 5) It has a good mix of primary andsecondary qualitative and quantitative analysis. 6) Market research should aid the marketer in determining the speed of change of the market.
Q3. What kind of information and what type of research does J Mary need?
The information that J Mary is looking for is how people in Minneapolis area wouldreact to the hot-and-spicy chicken. Along with this, he needs to know what age group of people will come in, what will be their taste like, how much will they be willing to spend, in groups of how many they are likely to come, what time of the day they are likely to come, so that he can even further segment his target customers. Although J Mary has some secondary research available to him that establishes the facts that the customers of Popeyes, in general, are upbeat, young, employed, and equally male and female and black and white , along with the age and amount spent demographics, he needs to do a proper secondary research to develop an idea about consumer preferences in Minneapolis area that will help him in analysing with correctness whether or not to go ahead with executing the plan to set up the franchise.
Q 4. If Mary conducts a survey, what contact techniques and sample plan should he use? Can you
draw up a research plan for him?
Mary can make a questionnaire on the food habit of the people of theMinneapolis St. Paul area. This will help him in segmenting and targeting the right kind of people. It will help in knowing the change in consumers lifestyle in last few years, so that a proper decision can be taken at the beginning. Mary can ask the regular customers of Kentucky about their taste and preferences. He can ask people about Kentucky, what people dont like about Kentucky or what the areas of improvement are, So that those questions can be taken into consideration, before opening his franchise fast food outlet. Research plan would include identification of information like the number of consumers for fast food especially fried chicken and also analyzing the competition from market leaders. Preparing a questionnaire which contains these relevant questions & circulation of the questionnaire in the target market will help identify the right facts.
Q5. Should open-end or closed-end questions be used? Does Mary have a need for a marketing
information system at this time?
Typical questions asked in market research are closed ended i.e. one in which a customer is given a range, out of which he/she has to make a choice. Sometimes need arises for asking an open ended question, then that person can include that in his/her questionnaire. Best examplerelated to this situation is B2B marketing, where a market researcher needs to get the insight of the companyi.e. exact details about companys growth rate, to make a proper detailed report. Usually market researchers try to keep the closed ended question, so that it will be easier and less time consuming for the customers to answer the questionnaire. Market researcher needs to devise the questionnaire in such a manner that it easy for him/her in future to interpret the answers, to do proper decision making. Yes, Mary needs to have market research before entering into business,it will help in taking the best
of decisions. In fact market research is required at every phase of business, whether it is initial phase, development or matured phase. The examples of Closed Ended Q uestions Include
Manager Asking his team mates if the project has been completed? The Examples of Open Ended Q uestions include
Manager Asking Team mate about his experience with new project, what he learned and if he wanted to share something?
Q6. Can you identify any businesses in Indian context that may be in similar situation as projected
in this case and may benefit from research? lease discuss.
I would think of Indian Airlines as one such business which has accumulated losses year on year basis despite having the best of aircrafts (newly procured ones), infrastructure and Government support. It still has very low productivity and performance both in terms of revenues as well as customer satisfaction as compared to other privately managed airlines like spicejet which are profitable. And this is where Indian Airlines can probably take the help of a comprehensive research from an independent agency to revamp its operations and turn black.
Relationship to Concept Various concepts used in the case are as below :
Marketing concept - It determines that the organization should strive to satisfy its customers'
wants and needs while meeting the organization's goals. In simple terms, "the customer is king". It is adopted by whole organization from top management to the lowest levels and across all departments of the organization; it is a philosophy or way of doing business. The customers' needs, wants, and satisfaction should always be foremost in every manager and employees' mind. Marketing mix ±It is the 4 P¶s of marketing which include price, promotion, place, product. Marketing orientation -Market orientation is the implementation of the marketing concept.
Being marketing orientated is more than just being customer-led. It requires the full support of the organization to be fully implemented in the long term and, indeed, may need a complete change in an organization¶s culture. Segmentation ± A marketsegment is a sub-set of a market made up of people with one or
more characteristics that cause them to demand similar product and/or services ba sed on qualities of those products such as price or taste.
Market Research ± Market research is any organized effort to gather information about
markets or customers. It is a very important component of business strategy.
Market Forecast ± A market forecast is a core component of a market analysis. It projects
the future numbers, characteristics, and tr ends in your target market. A standard analysis shows the projected number of potential customers divided into segments. Market research & market forecast are very crucial to decision making in marketing. They are related to each other as a good market forecast cannot be done without performing a good market research. Market research provides relevant data which helps in taking various decisions in marketing.
