Examining Marketing Strategies for the Mauritius Fast Food Market

Examining Marketing Strategies for the Mauritius Fast Food MarketINTRODUCTIONIt is the beginning of a new era that the unwavering viands industry has piecemeal breakthrough the Mauritius lifestyle. Due to the globalisation process, many fast nutriment franchises atomic number 18 now easy in Mauritius.Whether these fast foods have revolutionised Mauritius, today these products form breach of our lifestyle and culture. People rely on their convenience to enhance their lives and productivity.But in the fast and increasing emulous business surround of today, the right merchandise approach is necessary to compete with adversarys. The ability to develop effective commercializeing strategy which enable the firm to become more responsive and adaptable to the trade will perhaps more than ever before, nock the winners from the losersThe rational of developing marketing strategies is to respond to the increasing high demand in fast food and to eventually increase the market sh be of chicken make merry Ltd. The answer lies in the fact that crybaby Delight Ltd franchise is in the fast food industry, selling fried chicken, chips and burgers, and its main and direct competitor is Kentucky Fried yellowed. sensationalistic Delight Ltd is relatively new on the Mauritian market and Kentucky Fried crybaby has already position itself in the mind of clients since it (KFC) was launched in Mauritius in the year 1983.Chapter 1 wimp Delight LtdCompany and Product Profile yellow Delight Ltd was incorporated on the 22nd March 2001. The caller-out is a franchise, offering five product lines it sells fried chicken, chips, burgers, salads and soft drinks.In the early 2000s, with the globalisation and the branch of fast foods in Mauritius, the troupe has introduced the brand name of Chicken Delight in Mauritius. To cater for customer needs, Chicken Delight Ltd has set up unrivalled retail shop situated at Royal Road, Port-Louis (under the trade name of Chicken Delight .Chicken Delight Ltd is withal an extremely innovative company with alone(p) menu items, and to adapt the products more to the local Mauritian market, Chicken Delight has introduced 30 products in Mauritius.Chicken Delight MissionAs stated by the manager, Chicken Delights mission is To provide fast foods that exceed customer expectations in terms of service, price and qualityChicken Delight VisionTo be pay 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 are manufactured within international norms and quality to provide the maximum satisfaction to its customers. The products sold are Halal guaranteed. Thus whatever someones belief and culture, he or she can eat Chicken Delights products.Thorough study of the product line has been conducted to meet up the different tastes and habits of different people 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 advantage2.0 IntroductionThis chapter will aim at assessing Chicken Delights strengths and weaknesses, its opportunities and threats through an analysis of its outside(a) general environment also called macro environment, its particularised external, also called micro environment and conducting an organisational audit. It will conclude with a SWOT analysis modelThe critical accusatory of Chicken Delight is to achieve competitive advantage. Competitive advantage is an advantage that a firm has all over its competitors, allowing it to generate greater sales or margins and retains more customers than its competitors. It is all just about profitability, and this can be achieved by either lowering cost (comparative advantage) or differentiate its product/service (differential advantage) or by doing both simultaneously, so that it creates more value and can charge a higher pric e (Hill Jones, 2008, p104).There are 4 competitive advantagesEfficiencyQualityInnovationCustomer responsivenessAll these factors are key success to competitive advantage. Focusing on efficacy 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, thereby gaining competitive advantage.2.1 Chicken Delight internal and external analysisChicken Delight to generate future alternative strategies and decide which strategic alternative to pursue to regain competitive advantage and improve profitability, it is vital to assess Chicken Delights strengths and weaknesses, opportunities and threats.Strengths and weaknesses are internal to a company. They determine strategic capabilities of an organization, which rely on its resources and competences. The objective of Chicken Delights internal analysis is to identify its tangible and intangible thre shold resources, unique resources, threshold and core competences, which allow them to compete effectively and stay ahead.On the other hand opportunities and threats are 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 best to take a crap on opportunities and avoid 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 analytic thinkingThe swot analysis summarizes key issues from the business environment and the strategic capabilities of an organization that are most probably to impact on strategy development. The aim is to identify the extent to which the strengt hs and weaknesses of an organization are capable of dealing with changes taking place in the environment.SWOT provides a guide to management action and provides an slender 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 align 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 seating 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 w ell known around the placeWeaknessesWeak residuum sheet showing lossesNo customers after 17.00 as all the shops are already closed at that timeNo variety of vegetarian foods easyNo 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 fish dishesOpportunitiesBeing a franchise, it can expand easily to other location as Chicken Delight has a good reputationCan introduce other products available at the Chicken Delights Head Office and thus increases the range of productsCan introduce new products for vegetarians and for kids and introduce fish and beef productsSelling company shares to the alert staffs to increase staff belongings to the companyCan try to increase market share rapidly due to strong brand name and excellent location of fast foodThreatsIncrease in price of raw materialsDecrease in purchasing powe r of customers, customers will prefer cheaper foods despite little qualityPossible ledger entry of competitors selling same kind of products at cheaper price and at a give out 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 go another focus 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 model are used for analyzing the general external environment (macro environment) of organization such 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 politics policies on the regulations of fast food operation. Government is controlling the marketing of fast food restaurant because of health issue such as cholesterol issue, cardiovascular and obesity among the young children.Government control the license given for opening the fast foodGood relationship with government in giving benefits such as employment 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 hit 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 credit card payment radiocommunication net income, cosy and relaxing ambient place and other attraction for their hangout and eating. The Mauritian populat ion 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 integrating technology in managing its operation.Chicken Delight is looking in inventory system, supply chain management system to manage its supply.Easy payment and ordering systems for its customers and wir eless Internet technology.Legal factorsAs a certified fast food operator, Chicken Delight should follow many regulations and procedures. Chicken Delight has to take into consideration level-headed concepts like tax obligations, employment standards and quality requirement.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.EnvironmentVegetarian 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 and this was having a high impact on the environment by throwing aside those hard to recycle packaging.Mauritius is getting concerned for environment issues and business operating should emphasise on business concernful usage of world resources for sustainable development and should care for environme nt 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 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 admit 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 humbled 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 required to see up a fast food outlet and it is not unenviable 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 Chicken 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 pain fourre among others.SuppliersLarge suppliers prod uce an impact on small firms by the management 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 rival among existing firms can remain high if there are high exit 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. early(a) 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 exist 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 really 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, rather than spending their money on fast foods, they may turn towards more healthy foods.