Table of contents 1. Introduction2 2. Brief discussion of each company2-3 3. The product or service of each company3-4 4. The pricing strategy of each company5 5. The promotional strategy of each company5-7 6. The distribution strategy of each company7-8 7. The service of each compan8-9 8. The more successful or effective company9-10 9. Conclusions 10 Reference11 Marketing Promotions Apendix 1 Chicken Licken1. 2 Apendix 2 Chicken Licken1. 3 Apendix 3 : Roman’s Pizza………………………………………………………………. 1. 4 Apendix 4 : Roman’s Pizza:15. Introduction As part of marketing in business, strategy is king.
Strategy is the road map followed by business to become successful. Here we look at two fast foods outlets and compare and contrast their strategies. I have after a long consideration and research decided to compare Chicken Licken and Romans Pizzas. This was not easy since the task at hand is to compare two companies offering the same product or service. Thus for this comparison and this report the product/service refers to fast foods. Hence Chicken Licken and Romans Pizzas are offering the same product/service which is fast foods. Brief discussion of each company
It all started in 1993 when the current owner, Mr. A. Nicolakakis, a restauranteur by trade decided to purchase a flagging pizza restaurant with the intention of turning it around with his extensive knowledge and expertise. That is when Little Caesar’s came into being. As public knowledge of this fantastic, very competitively priced product grew, consumer demand lead to the opening of Little Caesar’s in other locations in Pretoria as well as surrounding areas. Unfortunately legalities arose with the registration of the company name, which then favourably lead to the “birth” of Roman’s Pizza in 2002.
Since then the company has gone from strength to strength due to the franchisor’s “hands-on” approach. Roman’s Pizza goal today remains the same, and that is to offer the best value for money in the industry. Roman’s Pizza has some of the busiest pizzerias in the country with some of our stores selling up to and even at times in excess of 2,000 pizzas per night. We aim to offer consumers throughout the country a more affordable meal and at the same time provide the franchisee with a substantial return on his capital. The Business facts speak for themselves with the opening of the first Chicken Licken in Ridgeway in 1981.
Chicken Liken has set a high standard of quality and have maintained it successfully in every one of their outlet to date because of their tightly controlled internal cost structures, Chicken Licken have proved that its franchise can be successful anywhere in Africa. According to Sunday Times Markinor 2007 brands survey; Chicken Licken is the second biggest fast food brand in South Africa. Chicken Licken is the biggest non-American owned fried chicken franchise in the fried chicken industry worldwide, also chicken liken is an extremely innovative company with unique menu items.
The product or service of each company Romans Pizza strive to provide the best quality pizzas at the best value for money. As founders of the ‘buy one get one free’, Romans Pizza has set an industry benchmark in terms of value for money. Romans Pizza offer the consumer a choice of either deep pan (thick base), or traditional base (thin base) pizza. Pizza is Roman’s major line at the moment and constitutes up to 80% of total sales at some stores. Romans Pizza has a combination of restaurants/take-aways as well as take-aways only, in the group.
Romans Pizza’s current focus is on setting up take-aways only. At Romans Pizza they specialise in fast food service and their focus is on Pizza. They have identified their product and they put all the energies behind that product to make it better. This means the business is focused on one narrow market segment. Romans Pizza has variety of menu items on Pizza. This is an indication of a well focused team on one product. As a result Romans Pizza has a pizza for everyone. At Romans Pizza service is for individuals with their single piece pizza and the family with their large double Pizza of your flavour.
Chicken Licken boldly claim the title of being “Soul Food”, Chicken Licken is the tastiest, and also coolest in town. Chicken Licken offers special recipe that creates its special taste. Chicken Licken pride itself in its business, and every aspect of Chicken Licken is geared to provide its customers with the most satisfying and value for money Chicken in Town. Thus we can say at Chicken Licken they offer good chicken meals for your convenience. This is since Chicken Licken focus on Take-aways and not restaurants.
Chicken Licken is convenience for the individual and the family and this is due to their diverse meal options from the kids to the adults. Chicken Licken has some sitting arrangements for customers who might like to eat on the go. Chicken Licken serve their meals as regular, Hot or Halaal. The pricing strategy of each company “After Mr Nicolakakis operated the store for a year he realised the product the store was selling was ridiculously over priced and therefore the store would continue to suffer financially, unless some changes were made.
Instead of changing the prices he decided to rather keep the same prices and give two pizzas for the price of one. This strategy talks to your value chain and processes. For Roman’s Pizza to give two Pizzas for the price of one the company has to streamline its processes. Thus Roman’s Pizza strives to provide the best quality pizzas at the best value for money. As founders of the ‘buy one get one free’ we have set an industry benchmark in terms of value for money. Because of tightly controlled internal cost structures, Chicken Licken position their product as a basically good food that makes up a fair-sized eal at a cheap price. They normally have only take-aways facilities. Chicken Licken will not tolerate anything that would increase cost. This is the reason why chicken Licken mostly is a take-aways outlet. This is to avoid focusing on the sitting arrangement and pushing the cost to the customer. Chicken Liken focus is on the lower income group. The promotional strategy of each company Michael Porter has proposed three generic strategies that provide a good starting point for strategic thinking: Overall cost leadership, differentiation, and focus (kotler and Keller 2009).
Roman’s Pizza as franchise is subject to the terms and conditions within the franchise business. These include the fact that as a company they will undertook group advertising. This implies that every Roman’s Pizza outlet would pay a fee of 4% of monthly turnover calculated excluding VAT towards advertising. The company warrants the non exclusive right of the franchisee to use the trademark. Trademark includes Trade Name, slogan, and logo. Roman’s Pizza’s promotional strategy includes high level of visibility. This is seen in their packaging.
Since at roman’s pizza you get two pizzas for the price of one, then you would need a big container to keep the pizza. Roman’s pizza has created a distinctively visible large flat box with all the colours associated with roman’s Pizza. You would not miss this box for anything else. Roman’s Pizza has developed an over all cost leadership strategy by being the pioneer of buy two pizzas for the price of one. Again Roman’s Pizza has managed to follow the Focus strategy by solely focusing on producing Pizza for just every customer.
Hence Roman’s Pizza is using market oriented strategy to know and deliver to the customer exactly what the customer wants. Chicken Licken has a care line. Research has shown that if people like a food outlet, they will tell 3 people. If they don’t like it, they will tell 7 people. That is why at chicken Licken they have a poster inviting customers to call in with suggestion on how to improve product and customer service. Chicken Licken has a much focused message. Its logo, the famous rooster is the hero and ambassador for Chicken Licken brand. Chicken Licken boldly claim the title of being “soul food”.
Chicken Licken uses a strong marketing mix of media, Radio, and TV. Our hip and happening campaign features personality promoting Chicken Licken – soul food. Popular music as background, showing we are in touch with our customers. The ‘Lil Lichen character attracts youngsters. Chicken Licken as franchise is subject to the terms and conditions within the franchise business. These include the fact that as a company they will undertook group advertising. This implies that every Chicken Licken outlet would pay a fee of 5% of monthly turnover calculated excluding VAT towards advertising.
Appetizing food shots featuring soul food, soul food and more soul food creates point of sale that makes our menu unique. According to Kotler, Ansoff’s Product-Market Expansion Grid identifies three intensive growth strategies as Market-penetration, Product-development and Market development. Chicken Licken has adopted the three intensive strategies. i. e Market-penetration they have been and still thrives to be anywhere in the country because their target is low income groups who are actually found every where.
Product-development, their product has evolved with time from regular pieces of chicken to now chicken burgers, folders, hot wings, and kiddies meals. Market-development, the introduction of regular, hot, or Halaal meals. The distribution strategy of each company Roman’s Pizza’s pizzerias (on average) record the highest sales per square metre in the industry. Admittedly Roman’s Pizza costs are higher than most in the fast food industry, but they get their competitive edge through their warehouse/central distribution. Almost all of the products needed in operating a store are purchased through Roman’s Pizza’s warehouse.
Due to the ever expanding franchise with new stores opening all the time, as well as the large quantities of pizzas that the stores sell, the franchise has an ever increasing purchasing power with its suppliers. As a collection of franchisees, Chicken Licken has grown from strength to strength since 1981. Beyond the service of providing franchise with utensils, and arranging for the timely delivery of licensed Chicken Licken products and ingredients, The also provide extensive training, store design, seating for all stores, advertising, point of sale material and countless ther important extras. All the goods and services provided by Chicken Licken are incorporated in the franchiser’s fees. In short, Chicken Licken is a totally integrated investment package that offers you constant high returns by supplying a top quality product to the steadily growing quick-service restaurant market. The service strategy of each company Roman’s Pizza is about take-aways. The layout of the outlet says to it all buy your meal and enjoy it away. There are few Roman’s Pizza restaurants with stylish sit inn arrangement.
At Roman’s Pizza you also get to order your meal by phone and drop in to collect. This is meant to reduce the time spent waiting for the pizza. It also won the Orange Index award for best service in the fast food sector in 2008 and 2009. Roman’s Pizza strives to provide the quality pizzas whilst focusing on value for money. Traditionally a leader in the black market, Chicken Licken now continues to open doors to new markets by simply offering a unique value-for-money product that is thoroughly enjoyed.
Communication is also evolving to meet the aspirations of a larger market which means, while a disproportional amount of fast-food franchises dissect small Euro-centric niche markets, Chicken Licken will embrace the nation with its soul food. Because as they say:”You aint tasted success until you’ve tasted Chicken Licken – soul food”. The service strategy at Chicken Licken is based on the convenience of the customer. Chicken Licken respond to the need of a customer who does not have time to sit and enjoy a meal at a restaurant.
Chicken Licken is in the market of servicing a customer on the move who has little time to spare in preparing a meal and thus at Chicken Licken that need is served. The more successful or effective company When we look at the two companies, they have very close strategies. What make them different is that Roman’s is focused on pizza while Chicken Licken has a focus on chicken and allows differentiation within the chicken industry. Chicken Licken strategy for success is its market-penetration approach. Chicken Licken has always wanted to be in every corner of South Africa. The uality of meals from Chicken Licken makes it to stand tall when it is compared with Romans Pizza. Thus Chicken Licken is a more effective and successful company between the two in comparison. This might be mostly because of Chicken Licken market positioning of serving the low income group and that group is 80% of the population according to the gini coefficient in South Africa. Conclusions Evidence shows that marketing strategy is important to any business success. Any business without a marketing strategy is like a car rolling without a drive, which its ending is a definite crash.
We have porter outlining good starting points for strategic thing and also Ansoff’s product-market expansion grid. The two offers different approach of developing a marketing strategy. It is clear that in very rare cases you might find one strategy working if any. A balanced mix is always necessary to have an effective and efficient business. Thus a holistic marketing is instrumental to any business success. Holistic marketing encompasses four marketing areas, that is internal, performance, relationship, and integrated marketing.
Integrated marketing evolve around the 3p’s. Though two companies might apply holistic marketing, key to their success might be the aggression at which each is implementing the strategy. References Kotler, P. & Keller, K. 2009 Marketing Management, 13th Nieman, G. & Pretorious, M. Managing Growth: a duide for entrepreneurs. www. romanspizza. co. za/ www. chickenlicken. co. za/ http://www. busi. mun. ca/tclift/1201/9fms_pp14. ppt#284,17,Questionable Pricing Practices http://books. google. com/books? id=d8pHEo5htvMC&pg=PA52&lpg=PA52&dq=