red rooster.doc - Bored of Studies
Prepared for: Mr. Paul Vorbach
University of Technology Sydney
Graduate School of Business
Subject Name: Marketing: Concepts and Applications (24746)
Prepared for: Paul Vorbach
Semester: Autumn 2004
MARKETING PLAN
Launch of a new health range within
Red Rooster Restaurants and increase market share in
Australia
Group Members:
Susan Andonovski 10131338
Montri Ployjirachai 10197984
Amanda F. Ribeiro 10144830
Poon Han Wong 10010748
28.05.04
UTS: i
Prepared for: Mr. Paul Vorbach
Table of Contents
’ ............................................................................................... 5
” ......................................................................... 19
UTS: 1
Prepared for: Mr. Paul Vorbach
UTS: 2
Prepared for: Mr. Paul Vorbach
EXECUTIVE SUMMARY
Consumer foodservice transactions grew 18.7% reaching 2,733 million in 2001. These figures are forecast to grow 24.3% to 3,395 million in 2006, accounting for a sales value of AU$34,375 million. As such, the fast food retail industry currently accounts for almost one third of the overall transactions. Thus, indicating the potential growth in this particular industry.
( www.euromonitor.com/consumer_foodservice_in _Australia )
Red Rooster has been in the industry for 30 years. It began its business humbly in 1972, with its first store in Perth, suburb of Kelmscott. In May 2002, Red Rooster was purchased by Australian
Fast Foods. With currently over 290 stores nation wide Red rooster is preparing to propel towards the future, serving better food for Australians. Red Rooster continually strives to develop innovative products, adopt competitive prices and offer maximum satisfaction and convenience to customers. Recent development in Red Rooster enables it to launch a healthy range of fast food to the growing demand in the Australian population.
A generalised introduction of the conceptual idea of the market information and market position, together with the production scope and objectives is provided in section 1.0. Subsequently, in section 2, details of the market research, primary and secondary will be provided, in addition, competitive analysis and internal and external analysis is carried out. Section 3 describes the market condition in which the product will be penetrating. Section 4 accounts for the overall strategic decisions in which the organisation adopted in penetrating the required market. Section
5 will outline the marketing mix in terms of products, promotions, pricing and distribution strategy used in gaining the desired out come for the product launch. All information in regards to the project budgeting will be account for in section 6. The plan then will be concluded with a strategic implementation and control documentation for the products.
As such, the research which was carried out, indicated that the current Red Rooster chain of stand alone restaurants possess a relatively weak market position (refer to Appendix 13 and
Section 2.1.2) and its traditional ideology has restricted its development. The company suffers from lack of market oriented strategy and promotion despite the company’s strong position in providing quality chicken products. With confidence, the results have prompted the need to launch a healthy product range of meals for the market.
The overall marketing strategy presented will highlight the critical issues in product quality, pricing, promotion and distribution to firstly draw new customers in to the products, maintain and reward loyal customers and capturing the competitor’s customers. The approach will only be possible with a systematic budgeting and proper layout of implementation plan.
The introduction of the Red rooster new health food into the Australian market is expected to help grow Red Rooster market share, provide customer value and offer customer satisfaction, 100% of the time.
UTS: 3
Prepared for: Mr. Paul Vorbach
1. INTRODUCTION
1.1 Overview: Red Rooster
The Kailis family opened the first Red Rooster store in the Perth suburb of Kelmscott in 1972.
Myer purchased the business in July 1981. In 1992, Red Rooster bought the Big Rooster chain to expand into the eastern states. These stores were re-branded as Red Rooster. In May 2002, Red
Rooster was purchased by Australian Fast Foods (AFF). Currently there are over 290 Red
Rooster stores in Australia represented in New South Wales, Victoria, ACT, Queensland,
Western Australia and the Northern Territory. Franchise owners, trading under the Red Rooster brand operate some stores in Queensland and the Northern Territory. These franchises undertake the same policies and procedures as company stores so that a highly consistent standard of quality products and customer service is maintained. As Red Rooster’s mission states that
“Red Rooster will be a leading Australian owned fast food company that is committed to providing innovative products that are consumer and lifestyle focused.”
This mission statement will be achieved by:
Value The ingredients and nutrition information are provide to customers for their health and balanced diet (see Appendices 19 -22 )
Quality and hygiene Red Rooster Quality Assurance Officers often visit the suppliers to make sure that the ingredients are in the highest standard. In addition, there is no added
MSG in any Red Rooster product.
Efficient service Franchisees undertake the same policies and procedures as company chains so that a highly consistent standard of quality products and customer service is maintained.
1.2 Marketing Plan Scope: New Product Launch
Australians are leading busier lives with less time to cook, as the lifestyles are changing for everyone. Growth in the number of younger, single occupant and non-family households has contributed to the decline in home cooking. This has led to the increase of fast food operators in
Australia. In addition, the numbers of people who are more concerned with their health have increased significantly. To attract this market segment and provide more alternatives to the customer a new health range of products will be launched in May. Red Rooster is going to launch as follow;
Grilled Chicken
Fresh Salad variety
Wholemeal Buns
Fruit Juice variety
Consequently, we will focus on creating new-products’ awareness and increase outlets owned by the company and franchisees. Our aim is to accurately analyse the Australian fast food market, find relevant target segments and introduce the health range to dominated acceptance. Red
Rooster intends to increase its market share up to 16% and become the market leader in health food in the Australian market.
UTS: 4
Prepared for: Mr. Paul Vorbach
Cold Food
2. EXTERNAL & INTERNAL ANALYSIS
As this part of our marketing plan constitutes the critical backbone of all our recommendations for the marketing strategy and subsequent marketing mix tactics, a comprehensive and rigorous analysis of the relevant market environment was critical. Therefore, we defined a broad definition of the market and conducted extensive secondary and primary research to ensure future success of our marketing strategy and recommended marketing tactics.
2.1 Market Definition & ‘Broad Segmentation’
2.1.1 Broad Strategic Market Definition: Shift towards Healthier Variety
Although the Australian eating out culture developed relatively late compared to the US and UK, it is today one of the most dynamic in the world in terms of growth and competition. To avoid a narrow market definition and, hence, its potential to restrict discovery of new market opportunities, Red Rooster has realised that it needs a broader strategic market definition.
According to the 2003 BIS Shrapnel Report, the foodservice market is defined as comprising all eating out establishments including restaurants, cafes, fast food outlets, hotels/pubs, clubs, institutional eating establishments, independent sandwich and hamburger shops, fish and chip shops, Asian food outlets, pizza stores, pubs, supermarkets, convenience stalls and catering. This entire market may be considered indirect competitors for Red Rooster, mainly if we take into account the changing eating habits of the Australians.
The Quick Service Restaurant sub-sector (QSR) represents about 30% of the Australian
Foodservice market and comprises the direct competition market for Red Rooster. Roy Morgan
(see Appendix no. 1 ) defines the main fast food chains which make part of the QSR market:
KFC, Pizza Hut, Red Rooster, Pizza Haven, Nandos, Dominos, McDonald's, Eagle Boys Pizza,
Hungry Jack's and Subway. Given the 11 different fast food product categories in the QSR industry, we can classify them according to temperature and perceived healthiness, as seen in
Graph 1 .
Graph no. 1: Strategic market definition of the fast food industry
Hot Food
Fries
Perceived as unhealthy
Beef Burgers
Desserts
Chicken products
Pizza Pasta
Fish products
Submarine
Sandwiches
Wraps
Deli-style
Sandwiches
Salads
Perceived as healthy
Source : Adapted from Best, 2000 in Gudergan, S. P. (2001)
UTS: 5
Prepared for: Mr. Paul Vorbach
For purposes of comparison, the main direct competitors of Red Rooster are McDonald’s,
Subway, KFC and Hungry Jacks. Each of them will be analysed in detail in the following section. Australians spend about 30% of their food budget on eating out. In 1999, Australian households spent an average of $127 each week on food and non-alcoholic beverages, of which
$34 are spent on meals out, $19 on fast food and takeaway (ABS, 2000). For more details on household expenditure on food, see Appendix No. 2 .
2.1.2 Market Potential, Market Penetration and Market Demand
The foodservice consumer market is worth approximately AU$ 24 billion, and is still recovering from two years of weak growth, in 2000 and 2001, due to the economic slowdown and the introduction of the Goods and Services Tax. The fast food market is worth about AU$ 7.3 billion and is estimated to keep growing in the following years.
Between 1998 and 2002, retail sales of fast foods increased at an annual rate of 3 per cent. In
2002, there was a slight recovery with an increase rate of 5 per cent, achieving AU$ 7 billion.
Growth in fast food and takeaways is expected to average only 1.5 per cent per annum in the period to 2005 (at constant prices). However, the major chains are expected to grow at a rate of
5.7 per cent per annum with the introduction of new marketing strategies - such as more comprehensive menus and a proliferation of smaller stores in shopping centres, hospitals and convenience stores. Higher economic growth is expected to drive continued strong demand in
2005.
The food service industry served nearly 4.2 billion meals in 1998 or 222 meals per head compared with 216 in 1996, according to the Hotel, Restaurant and Institutional Food Service
Sector Report (2000). There is a potential for substantial growth particularly if we look at the
US, where consumers eat out twice as often as Australians. The report forecasts the number of meals served will increase by 4% annually over the next 2 years, benefiting restaurants, cafes and fast-food chains.
The most recent social trends that affect the foodservice market are:
Australians are spending more time outdoors (Appendix No. 3 );
Eating out has been more and more associated with entertainment (HRI Food Service
Report 2000);
Customers are eating out more frequently - 2.25 times per week (Roy Morgan)
Consumers are more conscious about a healthy diet, what has been translated in an increasing demand for healthier meals. (Bis Shrapnel Foodservice Report May/June
2003.)
Based on forecasts of secondary sources, we have estimated the following figures for total market potential (assuming that the maximum number of potential customers would increase their fast food consuming from 2.24 to 7 times a week), market penetration of Red Rooster and market demand for the entire fast food market, as summarised in Graph No.2 and No.3
.
UTS: 6
Prepared for: Mr. Paul Vorbach
Graph no. 2: Market Potential, Penetration and Demand: 1999-2009 (estimates for 2004-
2009)
AU$ (b)
30
25
20
15
10
5
0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Year
Total Demand Penetration - Red Rooster Market Potential
Source : Bis Shrapnel Foodservice Report May/June 2003.
Graph no. 3 – Demand of meals per year in the Australian Food Service Market (Estimates
2004-2008)
No. of meals served per year in Australia (Estimates 2004-2008)
6.00
5.00
4.00
3.00
2.00
1.00
0.00
1996 1998 2000 2002 2004 2006 2008
Source : Australia Hotel, Restaurant, Institutional Food Service Sector Report, 2000.
UTS: 7
Prepared for: Mr. Paul Vorbach
2.2 Market Research
Our market research process consisted of four recommended steps (Gudergan, 2001, p.183): defining the problem and the research objectives, designing the research, implementing the research plan and interpreting and reporting the findings. Our research can be considered as a descriptive one as we wanted to define the market potential for a product, the demographics and attitudes of potential customers especially in terms of expected benefits of the new products. Our goal was to define a profile of an “innovator/early adopter” buyer of Red Rooster’s new healthy range. Based on our information needs we decided to gather both kinds of data, secondary and primary as well.
2.2.1 Secondary Market Research
We gathered secondary data, mainly from well-known and reliable independent sources such as
ABS, Euromonitor International, Roy Morgan, Bis Shrapnel etc. (for the complete list refer to
References). This phase was quick and the data was obtained at a lower cost. For more details on the geographic and demographic factors refer to Appendix No. 4 - 5.
2.2.2 Primary Market Research
We decided to conduct primary research, because there was some critical information that could not be extracted from secondary research. Insights about the customers’ acceptability of a new healthy range that has not been launched yet, as well as customer perceptions of Red Roster relative to the main competitors and details about customer behaviour could only be found through direct contact with the customers.
We opted for a mix of quantitative and qualitative research, because it would enable us not only to measure relative satisfaction but also to obtain valuable in-depth insights that could help us identify problems and design a more complete solution. For details concerning our research objective, target group, methodology, location, questionnaire’ sample and a summary list of our findings and their implementation within our marketing mix refer to Appendix No. 6 - 7.
After conducting 100 questionnaire interviews to complete our survey, we found that 46% of the respondents have never eaten at Red Rooster before, either because of lack of awareness or lack of availability. In addition, 60% of those who have already eaten at Red Rooster before have visited in the last year or more than a year ago, which means a large number of occasional nonloyal customers. The survey also revealed that 63% of the respondents eat fast food because of convenience and 38% would like to consume Red Rooster at shopping centres.
Demographic info. Lifestyle info and new product concept, usage behaviour
We also found that 88% of the survey’s respondents were in the age group between 15-34 years,
84% were single people and 87% had no children. They tend to eat at Red Rooster with friends
(43%) or alone (32%), and mostly on the weekends (63%). The most cited hobbies were reading, eating out, watching movies and shopping. This opens an opportunity for Red Rooster to target young people during leisure, and as a form of entertainment with friends.
According to the survey, taste is considered by 31% of the respondents as the motivating factor for visiting Red Rooster; however, convenience is cited by only 8%. The most popular meals at
Red Rooster are Quarter Chicken (23%) and Half Chicken (19%), and the most popular individual items at Red Rooster menu are Quarter Chicken (26.5%) and Crispy Fillet Burger
(20%). The launch of a new healthy range by Red Rooster was approved by the respondents,
UTS: 8
Prepared for: Mr. Paul Vorbach with 32.5% affirming they would definitely buy and 36.5% would probably buy it. This result supports the trend of a healthier diet habit conscience among Australians. From the new healthy items to be launched, Grilled Chicken and fresh salad variety were the more likely to be purchased. This is an opportunity for Red Rooster to invest in product differentiation and develop benefits that create value for the customers.
Regarding the customer perceptions of Red Rooster relative to the competitors, 43% of the respondents perceived the quality of Red Rooster as good and 34% as very good. Most respondents consider the price of Red Rooster as moderate relative to the competitors (78%) and
14% consider it cheap. The most concerning aspect revealed by the survey is that Red Rooster is considered as unpopular by the interviewees. The perceived rank of popularity of the fast food chains in Australia is: McDonald’s (45%), KFC (27%), Hungry Jack’s (10%), Pizza Hut (8%),
Domino’s (4%), Red Rooster (3%), Subway (2%) and Oporto (1%).
In summary, what can be extracted from these results is that Red Rooster has serious problems of lack of awareness, wrong positioning leading to no identification with the brand, low retention rate (occasional non-loyal customers) and lack of availability, which restricts the demand and penetration of Red Rooster in the market.
2.3 External Analysis
Based on our secondary and primary research results we were then able to summarise the following data relevant for our marketing strategy and marketing mix tactics.
2.3.1 Macro-environmental Situation - PEST Analysis
2.3.1.1 Political Factor
Australia has been recognised as one of the most stable political and social environments in the
Asia-Pacific region. Australia is considered more stable than the US, UK and most of the OECD globally (see Appendices. No.8-9)
Introduction of GST
Since the new millennium has begun, the Goods and Services Tax (GST) has been introduced at the rate of 10% to replace several existing indirect tax including Whole Sales Tax (WST). As a result of this, some prices will fall and some will rise. The Australian government wants consumers to receive the benefits from indirect tax reductions. It also wants to avoid exposing them to unreasonably high price rises.
Free Trade Agreement
Furthermore, Australia and the US exercise a Free Trade Agreement (FTA). This agreement has the potential to open Australian markets for US goods and services. Its trade policies being unwrapped and a market-oriented regulatory establishment provide a positive environment for growth and investment for its economy.
2.3.1.2 Economic Environment
In spite of the effects of the severe acute respiratory syndrome (SARS) epidemic, war in Iraq and security concerns on tourism including economic downturn in Asia and the United State, the
Australian economy continues to grow ( Appendix 10 ). This has led to a significant amount of foreign investment in Australia. There are many indicators identifying the performance of the
Australian economy, as follows;
UTS: 9
Prepared for: Mr. Paul Vorbach
Moody (2003) has recently reported that Australia’s credit rating has been raised from
‘Aa2’ in October 2002 to ‘Aaa’ in January 2003 due to stability in its economy and maintaining the Government’s low debt levels. Credit strengths for the country are:
(1) Strong growth performance over the past few years; and
(2) The healthy budget and public debt situation maintained over the medium term.
The unemployment rate dropped to 5.6% in October 2003 compared with 6.3% in June
2002. Similarly, employment rate rose significantly by 2.5% in 2002-03 after a small growth in 2001-02.
By the end of last year, the Reserve Bank of Australia (RBA) raised interest rates for the first time in 17 months, indicating a stronger international economy and concerns over domestic credit growth.
The Wage Cost Index slightly increased to 3.6%. This also refers to a higher amount of payment, on average, in every industry.
2.3.1.3 Socio-cultural Factor
Educational change
Australian Bureau Statistics (ABS) states that Australia's population at June 2003 was 19.9 million people, an increase of 240,500 people over June 2002. This represents an annual growth rate of 1.2%, the same as the average annual growth rate for the five years to June 2003. 42% of the working age population has a university degree, diploma or trade qualification. Australia’s higher education enrolment rate, at around 80% of the population, is one of the highest in the world - only Canada and the US have higher rates ( Global Competitiveness Report, 2001-02 ). An example of this figure is new students enrolled in a postgraduate degree was about 110,000 in
2002 compared with 96,691 in the previous year and 74,651 in 2000 (Dodd, 2004). Therefore,
Australia is ranked second in the region for the availability of skilled labour.
Health consciousness
Many new diseases have currently taken place around the world, for example, bird flu and mad cow disease, which are the critical health issues that consumers have been concerned with. In addition, consumer behaviour has changed to be more careful in selecting foods for their wellbeing. In order to satisfy the consumers, a large number of fat-free food products have been launched, more so than ever before. Furthermore, surveys conducted by the Australian
Supermarket Institute indicate that consumers in 1996 were more concerned about food hygiene compared to a survey in 1992 when consumers pointed out that pesticides and chemicals posed the greatest threat to the safety of food. The incidences of food borne illnesses are increasing globally and are a severe public health issue for Australia. This has resulted in a decrease in the number of Australians which ate out less frequently. In 2002 the number had dropped to 83 times compared with 94 times annually in 2000. Convenience was the major feature of eating fast food in 2000, whereas special occasions, break in routine and meeting friends were the main reasons in 2002 (http://www.c-store.com.au/articles/bis-eatingoutrends.html).
UTS: 10
Prepared for: Mr. Paul Vorbach
2.3.1.4 Technological Factor
2.3.2 Porter’s Five Forces Analysis
According to Porter (1995), it is possible to divide competitive forces into five areas:
Threats of New Entrants:
The market of food service is very competitive with only a growth rate of
1.5% per annum. In addition the cost of entry is relatively high (marketing budget, distribution channels and research and development expenses.)
Therefore the power of this force is weak.
S U P P L I I E R S
E N
N E W
T
C O M P E T I I T O R S
R A N
WEAK
T S
Rivalry Among Existing
Competitors:
In the Australian fast food market, there are many strong international competitors with superior resources in terms of finance, marketing budget, innovative products, and distribution channels. Therefore, we consider this force as the most threatening for us and strong.
B U Y E R S
WEAK STRONG
MEDIUM /
STRONG
Bargaining Power of Suppliers :
Even though there are a limited number of suppliers in chicken for our core products, we have a few large suppliers providing chicken for us. Thus, changing suppliers is not a critical problem. Therefore, we assess the power of this force as weak.
Bargaining Power of
Customers : Customers are able to switch to other alternative products easily. Therefore, we assess the power of this force as medium/strong.
S U B S T I I T U T E S Substitute Products :
Restaurants, cafés, clubs and hotels are currently the substitute products of fast
STRONG food. Furthermore, consumer perceptions for these are healthier and provide better services. Therefore, we assess the power of this force as strong.
UTS: 11
Porter, M.E., 1995
Prepared for: Mr. Paul Vorbach
2.3.3 Competitor Analysis
Combined with the concerning levels of obesity in Australia and the changing habits in terms of food intake and exercising, fast-food outlets have been under enormous pressure to adapt. This section analyses the main features of Red Rooster competitors, their recent strategies aiming the healthy food segment and their market positioning. For details about market share and sales forecast per competitor, refer to Appendices No. 14-15 .
Healthier living
Worldwide there is a move by consumers to healthier lifestyles. One of the manifestations of this is the shift to healthier fast foods. Expanded menu choice is already underway in many McDonald’s around the world. For example, McDonald’s UK offers sliced fruit;
McDonald’s France provides low fat yogurt and the US offer beverage choices that include low fat milk, bottled water, juices and non-carbonated drinks. McDonald’s Australia serves a Happy Meal with toasted cheese and tomato sandwich, raisins and orange juice.
Source: www.mcdonalds.com
accessed March 2005.
Subway has recently changed its positioning to take maximum advantage of the desire to slim.
Previously, their marketing had been focused around flavour and customization - the fact that consumers could choose exactly what wanted on their sandwiches – basically a product focus.
Now, they are strongly positioned as the healthy option in fast-food – a focus on the customer’s benefit. This shift has proved profitable and has resulted in a rapid expansion of the chain in the
USA and Australia. Currently, Subway is on the crest of overtaking McDonald's as the fast-food outlet with the most number of stores throughout Australia. Subway has over 625 stores trading throughout Australia and is opening about four new outlets a week. It expects to overtake
McDonald's, which has 726 stores, by year's end.
But McDonald's has also moved forward. Since it introduced the Salads Plus range into its stores, McDonald's Australia has experienced an extraordinary explosion in profit, achieving a record level of sales of $1.8 billion – one of the highest in its 32-year history. McDonald’s
Australia was the best performing country in the Asia Pacific, Middle Eastern and African region. Its bumper profits are almost totally due to the new healthy range, which includes a veggie burger, chicken folder, yoghurt and a range of salads. They are about to introduce nutritional labelling on some of its products, outlining fat content, sugar content, total energy content and percentage of saturated fat. The company also has plans to begin using canola oil instead of the current combination of beef tallow combined other oil, and has announced that it will reduce the sugar content of its patties.
McDonald’s positioning has been focused on greater variety, choice and diversity in the tastes offered to customers . One of the ways they have tackled this is through the 36 different items offered since September 2001 on their New Tastes menu. The new healthy range menu does not represent a change in their core focus, but a line extension which allows them to penetrate a new market and expand the demand, which is a really competitive strategy considering the level of competitiveness and saturation of the food market.
McDonald’s Australia has 726 stores with more than 55,000 employees, 1million customers daily and is one of the largest purchasers of Australian products. In an average year McDonald’s
UTS: 12
Prepared for: Mr. Paul Vorbach
Australia purchases 307 million hamburger buns, 88 million kgs of potatoes, 60 million eggs, 24 million litres of milk, 18 million kgs of beef, 5.5 million kgs of cheese, 11 million kgs of chicken, 5 million kgs of lettuce and 1 million kgs of beetroot.
Fast-food pizza chains have been criticized by anti-obesity advocates for launching crusts full of cheese, which substantially increases the fat content. At the same time large pizzas are being offered at discount prices, attracting more price-sensitive customers. KFC and Pizza Hut, both owned by the multinational Yum! Restaurants International, have not announced any plans to make their menus healthier. KFC is showing no signs of changing the high fat, sugar and salt contents of its deep-fried chicken.
Hungry Jack’s has introduced a salad range as well as a "Good 'n' Fresh" sandwich range as an alternative to burgers, using soy and linseed bread and containing no more than 9 grams of fat.
The company is also offering consumers the option of low-fat mayonnaise, and has launched an initiative called "Have it Your Way", enabling customers to design their own burger according to their dietary needs. Hungry Jack’s is positioned as value for money (“bigger burger at a better price”), appeal of “have it your way” – customized food delivery, fresh salad ingredients and the exclusive flame grilling . It claims to have an Australian image and better variety of food than the competition.
The following graph is a perceptual map of fast-food chains according to the customers’ perceived positioning collected on our primary research survey.
Graph No. 4 - Competitor Analysis – Perceptual map of fast-food positioning
Healthy
Subway
McDonald’s
Red Rooster
Value for money
High-Price
Hungry Jack’s
Pizza Hut
KFC
Fatty
For a detailed comparison of products from these different competitors refer, to
Appendices No. 14 -15.
UTS: 13
Prepared for: Mr. Paul Vorbach
UTS: 14
Prepared for: Mr. Paul Vorbach
2.4 Internal Analysis – Company’s Competencies
The first Red Rooster store was opened by the Kailis family in Perth in 1972. In 1992, Red
Rooster bought the Big Rooster chain to expand into the eastern states. These stores were rebranded as Red Rooster. It progressively grew interstate and was sold to the large national retailer Coles-Myer in July 1981. In May 2002, Red Rooster was purchased by the Australian
Fast Foods group. Australian Fast Foods, which also owns the Western Australian chain Chicken
Treat, is aiming for total sales of about AU$ 700 million next financial year, through an aggressive strategy to penetrate the Eastern markets, where Red Rooster has a large growth potential.
Currently Red Rooster employs over 5,500 staff in 335 outlets in Australia. From this total, 277 are company-owned stores - represented in New South Wales, Victoria, ACT, Queensland,
Western Australia and the Northern Territory. There are also 58 franchisee-owned outlets trading under the Red Rooster brand in Queensland and the Northern Territory. The aim is for 302 company stores and 76 franchise stores by the end of next financial year and for the next two years there is a target of 132 store openings, including entry into New Zealand.
Product differentiation is the fundamental key to the competitive strategy of Red Rooster. Red
Rooster recognizes the importance of employing the right people to provide good service and quality, at the best affordable price. Red Rooster requires a strict one-on-one quality control monitoring, ordering and preparation by a competent and active store manager and team members. It’s positioning stresses on “fresh” as being a concept and promise of the core product.
Red Rooster’s chicken, which has lower fat content because of the cooking method, has always provided the competitive edge. The barbequed chicken range was traditionally the only available healthy choice.
The competitive nature of the fast food sector demands confidentiality and flexibility. At
Australian Fast Foods the focus is totally on the day-to-day running of the business, complemented with on-line, real time systems that keep people informed and up-to-date to respond quickly to the changing demands. This has enabled Red Rooster to move towards the market needs for innovative alternatives. Recent technological investments such as the installation of new Combi ovens have ensured consistency of products and the development of innovations such as freshly baked rolls. Fresh subs were launched in December 2002 and a new salad selection and a new healthier chicken will be released later in the year. These initiatives will complement the store décor refurbishments as well as a fresh positioning, marketing and advertising strategy.
Red Rooster is very proud of its supply chain management. There are a limited number of suppliers in frozen food, chicken, beverage and packaging and, in 25 years, there has not been any change in the major suppliers. This is justified by the open book policy adopted in Red
Rooster, where direct, one-to-one negotiations have been reflected in a transparent and respectful long-term relationship between Red Rooster and its major suppliers.
The initial Franchise fee for a single site is $38,500 AUD. There is a service fee of 5% of the franchisee’s gross weekly sales and there is also an Advertising Contribution of 5% of the franchisee’s gross weekly sales. The minimum working capital requirement (or facility) is
$30,000AUD. The required level of start up capital to become a Red Rooster franchisee will depend on such things as store size and facilities, but generally ranges between $450-$550,000
AUD.
UTS: 15
Prepared for: Mr. Paul Vorbach
2.4.1 Franchising
With a commitment to expansion and profitability Red Rooster is seeking to spread its franchise network to regional New South Wales, Victoria and South Australia plus the new markets of
Tasmania and New Zealand. The length of the franchise agreement is 10 years with an option of a further 10 years subject to the conditions of the Franchise Agreement. The length of a
Franchise Agreement may be lesser in circumstances such as shopping centre food courts if the terms of occupancy are less than 10 years
Red Rooster approves all sites, undertakes lease negotiations and in most cases takes the Head
Lease on the store. Red Rooster contracts with the builder and manages the project from construction to fit out completion thus providing a turnkey project. There is a Lease / License
Fee of $500AUD per annum which is charged in equal instalments.
Red Rooster has developed an extensive training program of up to 16 weeks which covers all aspects of the business. Training is carried out in a certified training store and there is a training fee for up to 3 people of $6600AUD.
Under the new management of Australian Fast Foods, Red Rooster is on the way of profitable results. Attention will be given to correct the poor distribution strategy, mainly in New South
Wales and Queensland, where the company is least represented (e.g., no new Red Rooster was opened in Queensland for two years), adjustments to the positioning will be made to reinforce freshness and health, promotional activities will project the brand nationally and these actions together are intended to drive a projected market share growth to around 16% of the fast food marketplace by the end of 2005.
2.4.2 Mission Statement
Red Rooster will be a leading Australian owned fast food company that is committed to providing innovative products that are consumer and lifestyle focused.
They will achieve this by exceeding customer expectations for:
- Value
- Quality
- Efficient Service
- Hygiene
2.4.3 Products
Red Rooster offers a wide and varied menu to customers specializing in quality chicken products. Their core product is barbequed chicken, which was developed as a unique recipe when Red Rooster first began thirty years ago. They now offer products that have appeal to all ages and tastes including the Little Red Rooster Meal, Chicken and Chips, Strip Sub and the
Crispy Fillet Burger to name a few. Red Rooster continually strives to develop products that are innovative, price competitive and offer maximum enjoyment and convenience to customers.
Their most popular products include the following:
UTS: 16
Prepared for: Mr. Paul Vorbach
Table 1 – Red Rooster’s list of products:
Chicken Meals
BBQ Chicken The highest quality chicken is delivered to stores fresh daily and hand seasoned using Red Rooster's famous recipe. Each and every chicken is marinated then cooked to perfection.
Quarter Chicken and
Chips
Satisfy your appetite with a quarter BBQ Chicken and our famous chips.
Half Chicken and Chips Half BBQ Chicken and Chips.
Tropical Pack Quarter BBQ Chicken and Chips and Two Pineapple Fritters.
Quarter BBQ Chicken and Chips, Mashed Potato and Gravy and Peas. Chicken Dinner
Burgers, Rolls and Subs
Crispy Fillet Burger
Strip Sub
Crispy coated chicken fillet breast topped with lettuce, tomato, cheese and mayonnaise in a soft sesame seed bun.
Spicy coated tender strips of chicken with creamy garden herb sauce in a freshly baked bread roll.
Flayva
Fresh Sub 97
Chicken Roll
Two chicken breast strips coated with our unique spicy crunch coating, served with a creamy herb sauce, lettuce and tomato all wrapped in a fresh tortilla.
Tastes great and won't weigh you down. Succulent pieces of tender chicken, fresh lettuce, tomato and cucumber topped with Kraft Free Mayonnaise, in a freshly baked bread roll. 97 percent fat free, 100 percent flavour.
A soft warm sesame seed roll filled with fresh BBQ Chicken pieces, herb stuffing and creamy mayonnaise.
UTS: 17
Prepared for: Mr. Paul Vorbach
2.5 SWOT Analysis
The following SWOT analysis is based on our main findings about external and internal situation analysis. It summarizes Red Rooster‘s key strengths and weaknesses and also describes the market opportunities and threats that we will have to take into consideration in our planning.
STRENGTHS
100% Australian-owned;
Knowledge of local market;
Investment in market research – always updated on customer needs;
Competitive advantage in product differentiation – investment in R&D for innovations and quality;
Search for excellence in service – investment in recruitment, training and control monitoring;
Long-term sound and transparent relationship with suppliers;
New owner provided expertise on core business of fast food;
Specialized management is giving new breadth towards market orientation and growth strategies.
Potential for growth in sales and profitability.
WEAKNESSES S
Lack of perceived value;
Poor distribution – limited market access, small number of franchisees;
Lack of awareness – low investment in
Promotion;
Problem of positioning - no customer identification with the brand;
Perceived as unpopular by the customers;
Low retention rates – customers are not loyal, many occasional customers (not profitable);
Previous management was not specialized in fast food market – poor management, business was unprofitable.
Small market share.
OPPORTUNITIES S
Fast food market is still growing.
Australians spend more money on food.
Consumers are more concerned about healthy food which matches with our new target market.
The survey shows there is a great opportunity to grow in Sydney, especially in the city.
A strong trend for healthy and nutritious products is emerging.
The market is moving towards healthy fast food, becoming increasingly aware of health
& nutrition.
THREATS
Many new diseases have been discovered and have caused concerns such as SARS, mad cow disease and bird flu.
The substantial number of substitute products
(Asian foods, hotels and cafes)
Competitors are frequently launching innovative products.
Other fast food chains are markedly growing.
Asian foods are booming.
Australian economic health (strongly dependant on global economy and the political situation)
UTS: 18
Prepared for: Mr. Paul Vorbach
3. STRATEGIC OBJECTIVES & ISSUES
3.1 Target Markets: “Young Professional” and “Student”
3.1.1 Market Geographic Factors
Based on information described in Appendix No.4 we were able to define the following areas and cities where we will focus our sales promotion marketing activities by priorities: NSW,
Victoria, Queensland, Western Australia, South Australia, and Northern Territory. In terms of the official launch, we plan to go with it in Sydney and in Melbourne. Advertising campaign is planned on the nation-wide level.
3.1.2 Market Demographic and Lifestyle Factors
The information described in Appendix No.5 , together with our primary market research outcome (for detailed list of findings refer back to Appendices 6-7 ), helped us clearly and accurately define two profiles (segments) of our target group in terms of the following three groups of criteria:
Demographic factors: sex, age, marital status, qualification, and occupation.
Market lifestyle factors: attitudes, values, activities, interests of our potential customers
Usage behaviour factors: time of use, occasion of usage, repetition of usage etc.
3.1.3 Passion Based Market Segments
Based on the previous market analysis and on our primary and secondary research, we have identified the following two profiles of potential buyers of the new health range at Red Rooster.
UTS: 19
Prepared for: Mr. Paul Vorbach
Table No.2: Needs/Passion – Based Market Segments
SEGMENT PROFILE
Demographics:
Age
Income
Marital Status
Children
Qualification
Occupation
Lifestyle:
Free time activities
Health conscious
Values
Roy Morgan Values Segments
Eating Habits:
Convenience
Form of leisure
Enjoy the taste
Usage Behaviour:
Time of buying health food
Occasions
Frequency of buying health products
Buying Decision Forces:
“YOUNG PROFESSIONAL”
25-35 mid/high single/engaged/married no secondary/university information-intensive industries
Mainly with friends/club members
- sport and outdoor activities middle/high level friendship
Socially Aware/Something better/Young Optimism
High
Low
Medium
Lunch breaks
Weekdays or weekends
4 times/week
“STUDENT”
15-25 low single no secondary/university student mainly with family and friends
-sport and outdoor activities middle level friendship
Look at me
Low
High
High
Lunch/dinner
Weekdays or weekends
2 times/week
Reference group Friends Family members, friends
For factors and reference groups influencing buying decisions of the identified “Student” and
“Young Professional” refer to
Appendices No.16-17 . Those influences will be also taken into consideration within the process of integrated marketing communication mix preparation.
3.2 Market Positioning
The marketing strategy will be based on our portfolio analysis (for details refer to Appendix No.
18) . The following factors have been taken into consideration:
3.2.1 Business Performance
Share Position – Red Rooster occupies 9% of the Australian consumer retail food industry
Profitability
– Red Rooster’s profitability under Coles Myer was floundering, but with the ownership of Australia Fast Foods, profits are forecast at AUS$700 million
Sales Growth
– Red Rooster’s growth is set to rise with a forecast for the next two years, with a target of 132 store openings, including entry into New Zealand
3.2.2 Market Attractiveness
Market Forces:
Market Size: Red Rooster has an average sized market share in the area of retail fast food. There is a great potential to grow, thus enhancing market attractiveness.
UTS: 20
Prepared for: Mr. Paul Vorbach
Growth Rate: While launching the new health range, the growth rate will be considered to be of paramount importance, but eventually there would be some stability stage.
Buyer Power: As the health range is new and heavily advertised, the consumers will be receiving ultimate exposure, as well as the extra stores, thus generating a greater amount of interest for the consumer. The buying power is therefore low.
Customer Loyalty: Once a customer is satisfied with the product, he/she will stick to it.
Hence, winning the customer loyalty is of utmost importance. Loyalty is very low at the moment, with 60% of patrons visiting Red Rooster on a yearly basis. The lack of loyalty can also be attributed to the fast food market, as the consumer’s tastes are fickle and variety is a feature which fast food retailers can offer easily. Thus lowering the attractiveness of the market.
Competitive Intensity:
Number of Competitors: according to the Porter’s 5 forces, competitors are the strongest force, as there are established international brands, as well as the local and national competitors Red Rooster must take into consideration.
Price Rivalry: In the retail food industry, prices can vary, but are relatively similar.
Competitive pricing structures are utilised to enhance wealth.
Easy of Entry: As already mentioned in the Porter’s Five Forces analysis, entry to the market is difficult, as the growth rate is low and the cost of entry is relatively high. R&D costs are high when using an offensive strategy, in order to enter a market. The main players are Macdonald’s, KFC, Hungry Jack’s and Subway. Establishing a name and creating the necessary image is extremely difficult
Substitutes: This factor is most important, as efforts would be made to have a competitive edge over the substitutes.
Market Access:
Customer Familiarity: Customers are not as familiar with Red Rooster, as opposed to their competitors. It is therefore necessary to familiarise customers with Red Rooster as soon as possible, in order to gain acceptance as the market leader of health food. The earlier customers become familiar with the new range, the more profitable the launch will be.
Channel Access: This factor is also very significant. The product range must be distributed properly. As Red Rooster has maintained relations with the same suppliers for the past 25 years, this ensures the reliability of their channels.
Sales Requirement: A high customer service skilled sales force is needed. They will be trained in terms of the food available as well as how to treat the most valuable asset to
Red Rooster, its customers.
Company Fit: Red Rooster’s experience with healthy and nutritious products makes a perfect match with their even healthier chicken, salads, wholemeal bread and fruit juices.
This launch is extending their image of a health conscious food retailer, concerned for the well being of the customers.
UTS: 21
Prepared for: Mr. Paul Vorbach
4. COMPETITIVE MARKETING STRATEGY
4.1 Competitive Advantage
4.1.1 Cost Advantage:
Unit Cost: Red Rooster’s unit costs are low, as they usually are in the food industry.
Margin prices are marked up to more than 50%.
Transaction Cost: The best mode of transaction should be chosen to minimize the cost.
This factor is important up to a certain level.
Marketing Expenses: Red Rooster’s marketing expenses are high, due to the new health range being new it will undergo heavy advertising and promotion in the initial product launch. Some of the advertising will be for the new health range alone and cost more money. Each time Red Rooster is advertised its brand reaches a higher level of awareness and hence reinforcing the image of Red Rooster as a health food provider for the health conscious consumers.
Overhead Expenses: Overhead expenses are shared among the whole Red Rooster product range and will be a portion of the total costs.
4.1.2 Differentiation Factors:
Product and Service Quality: Product and service quality offered by Red Rooster are excellent, however this excellence remains unrecognised due to poor management by
Coles Myer previously, and lack of strategic direction, which has damaged distribution and channelling, which has led to lack of awareness of the great quality offered by Red
Rooster, because of the lack of availability of Red Rooster outlets.
Brand Image: Red Rooster is suffering from a non existent brand image, this is one of the weaknesses we aim to target in our strategy to grow market share.
Relative Price: Red Rooster’s price is slightly higher than that of competitors due to superior quality and nutritious value of the food.
4.1.3 Marketing Advantage:
Market Share and Brand Awareness: Red Rooster has a decent share of the market, at
9%, however the brand awareness remains low, due to reasons explained above. This has shown that Red Rooster has a great opportunity to bring its great products to a broader awareness, thus once this is achieved, market share shall naturally go up.
Distribution and Sales Coverage: Red Rooster’s distribution and sales coverage is also a weak point, thus presenting another great opportunity. Once Red Rooster invests in greater distribution and sales coverage, which will in itself increase brand awareness, and included with all the special promotions on offer with the product launch, will improve profits and market share.
4.2 Offensive Competitive Strategy: Market Share Growth
Red Rooster has a certain amount of market share, however it is not (in comparison to its competitors) reached its full potential. Therefore, Red Rooster - in a position of share offender
UTS: 22
Prepared for: Mr. Paul Vorbach
– is engaged in a battle to grow its market share in the retail food Industry, specifically food retailers which offer health food products (see Appendix No. 18 ).
QUESTION-MARK:
As can be visually seen in the Boston Consulting Graph Matrix below, the Health Range will initially be in the Question Mark section, as the product requires significant spending -
It does not produce positive cash flow at the beginning (mainly because of marketing expenses) but it is expected to shift to the Stars segment. The Cash Cow segment will be the main product offered by Red Rooster, which is its core product - Chicken.
Red Rooster Health Food Range - BOSTON CONSULTING GROUP MATRIX
Market
Growth
10%
Stars
Cash Cows
Question-marks
Red
Rooster
- Health
Dogs
Red
Rooster –
Chicken
10X 1x 0.1x Competitive Position
A key part of Red Rooster’s long-run performance thus relies on its ability to successfully implement a grow share strategy in the fast-growing consumer and food retailing markets. This strategy requires a much greater marketing effort and investment in new products to grow their share of the market, and to become the leaders in producing tasty and nutritious health meals.
The company remains thus committed to:
Research and Development;
Efforts to improve its products and service quality at a rate faster than competition, and
Fully supporting the marketing budgets needed to gain a high-share position.
The introduction of Red Rooster’s Health Range can be thus considered as an additional step of
Red Rooster growing its market share in the Australian market.
UTS: 23
Prepared for: Mr. Paul Vorbach
4.3 Marketing and Financial Objectives
Based on the overall marketing strategy of Red Rooster to enter and grow its market share as a leader in the health products range offered within the Australian retail food industry, the marketing objectives for the new Red Rooster health range are as follows:
4.3.1 Short-term Marketing Objectives
1st PHASE: Product Launch and Awareness Building
Timing: Launch: May 2004, Awareness Building: May 2004 – August 2004
Target Group:
Where:
Innovators and Early Adopters
Launch events in Sydney, Melbourne and Brisbane
Nation-wide, some sales promotion activities in capital cities of Australia
How: For marketing mix tactics see following Section 5.
Market Metrics: Build awareness
Initial Market Penetration: 1% of the total market of fast health food.
Financial Metrics: Total contribution margin: AU$ 17.56 million
For details concerning market and financial metrics refer to Section 6.
2nd PHASE: Further Market Development and Red Rooster Health Range Market
Penetration
Timing: January 2005 - June 2005
Target Group:
Where:
How:
Early Adopters/Early Majority
Nation-wide, some sales promotion activities in capital cities of Australia
For marketing mix tactics see following Section 5.
Market Metrics: Market Penetration: 8% of the total market of fast food health range.
Financial Metrics: Total contribution margin: AU$ 26.23 million. For details concerning market and financial metrics refer to Section 6.
4.3.2 Long-term Marketing Objectives
3rd PHASE: Lead and Keep the Market (Fast Food Health Range)
Timing: After the Red Rooster Health Range market penetration the long term
Target Group:
Where: objective will be to keep the control of the market.
Late Majority/Laggards
Nation-wide, some sales promotion activities in capital cities of Australia
How: For marketing mix tactics see following Section 5.
Market Metrics: Market Penetration: 20% of the total market of fast food health range in
2009.
Financial Metrics: Total contribution margin’s peak in 2009: AU$ 55. 66million.
For additional details concerning market and financial metrics refer to
Section 6.
UTS: 24
Prepared for: Mr. Paul Vorbach
5. MARKETING MIX TACTICS
The marketing mix determines the ultimate success of the product. This includes the unique blend of pricing, promotion, products offering and distribution system designed to reach our target customers, which are, students and young professionals.
5.1 PRODUCT AND SERVICES
5.1.1 Product Quality
Red Rooster offers a wide and varied menu to customers specialising in quality chicken products. In building the company’s continuous commitment to meet its customer satisfaction, the new health products will emphasise, in several dimensions, in achieving its standard for quality; Taste; Hygiene; Health; Safe
The new grilled chicken was derived from the original recipe made 30 years ago by the Kailis family. Using only natural ingredients freshly obtained from the market, the new grilled chicken is bound to give Red Rooster customers a sense of indulgence, minus the guilt. (Ingredients of new grilled chicken recipe see: Appendix No.19
)
The hygiene involved in storage, preparation, serving the new grilled chicken is consistent to the current code of practice set up in the Red Rooster restaurants. These set of practices have been a factor in Red Rooster’s success in promoting overall quality services and goods.
Healthy doesn’t mean low fat. Healthy in Red Rooster products is built on the ideology of a balanced diet. The new grilled chicken meals complete with a wide range of salads, whole meal buns and fresh juices will provide a nutritional food balance suitable for every patron to carry out their regular physical activities without worrying about excessive fats or high sugar contents.
(Nutritional facts on the Red Rooster chicken: Appendix No.20)
Customers who feel safe in consuming the new health products will be built upon several facts; nutrition facts which have been discussed and the method of preparation. The new grilled chicken will be prepared under a 250
0
C oven for 5 hours. And according to the Agriculture Food
Safety and Inspection Service, a whole chicken should reach an internal temperature of 180 F.
Such procurement will ensure safe consumption of the new grilled chicken. (Complete method of preparation: Appendix No.19)
5.1.2 Meals and Sizes
Red Rooster offers a wide range of meals and sizes suited for the various demands of customers.
Nominally, there are 3 different health meals with 3 different sizes available for individuals. In addition there will be a Coupe Meal suited for couples, a Party Pack which is capable of serving
4-6 people and the Family Pack suited for family dining, serving around 6-8 people. (Complete menu: Appendix No. 21 ).
5.1.3 Packaging
All chicken will be packaged using different sizes of recyclable milk board packaging in accordance to the meal. This is to ensure heat insulation as well as keeping the aroma within the
UTS: 25
Prepared for: Mr. Paul Vorbach packaging. Whole meal buns on the other hand will be packed using a glassine paper. Salads will be packed inside a recyclable paper bowl covered with standard plastic cover and all fruit juice will be supplied to customers in a sealed recyclable bottle specially design by Berri for Red
Rooster. All in all the packaging is to build awareness and support the usage of environmental friendly resources.
5.1.4 Labelling
In every package there will be a concise display of the nutritional facts of the food which is served at Red Rooster. This will be done in order to provide as much information to the customer of the balanced diet offered by Red Rooster as well as to build awareness to have a balanced diet.
5.1.5 Product Line Extensions
In extension towards the current offers, the healthy menu would include meals to cater for young children as well as health meals for senior citizens. In addition, more variety of flavour and recipe for chicken will be introduced in order to capture more market demand. A Side Dish
Menu will be diversified to include yoghurt as dessert, as well some sandwiches.
5.2 Pricing
5.2.1 Market Based Pricing
The new Red Rooster health food menu will offer a wide range of individual purchases as well as meal packages for individuals, couples, groups and families. Most of the products offered here will come in 3 different sizes, which will provide a variety for customers to choose from.
The product will be schedule to launch in the May 28 th
.Looking at the price affordability for the given customer’s needs and the competitive offering by the competitors; the market based performance approach is adopted. The initial pricing strategy will be perceived value pricing .
This was so, given the price for the products benefits in terms of its large portions of chicken, nutrition’s, superiority value as compared with its competitors and the amount of promotions due to be launch to strengthen the companies image. As the time progress, different strategies will be practice in accordance to the market demand and customers perceptions.
For details concerning the recommended price related to purchase of the new health menu refer to Appendix No.21
. For details concerning the competitors´ prices of “substitute products” refer back to Appendices No. 15.
5.3 Place/Distribution
5.3.1 Channel of Distribution/ Sales Territories
Historically, the Kailis family opened the first Red Rooster store in the Perth suburb of
Kelmscott in 1972. From this store, Red Rooster expanded its chain towards the east, and currently there are over 290 Red Rooster stores, with an extra 50 franchises across Australia.
Under the new management, Australian Fast Foods, Red Rooster has intended to expand its stores further by 150. Such expansion in strategic locations provides a good foundation for Red
Rooster to position its self in the health fast food market, thus distributing its products to health conscious consumers.
UTS: 26
Prepared for: Mr. Paul Vorbach
As our target customers are working young professionals and students, the suitable store location will be targeted in the city area, shopping malls and university areas. As such, Red Rooster will have to re-position what use to be the country style image with stand alone restaurants to modern and catching fast food restaurants in shopping malls.
The expansion programme will occur through 2 channels. Primary channels, Australian Fast
Foods will have to locate most of its new stores in populated areas. Ideally, the new stores should target primary within Westfield shopping malls and properties (Information for Westfield shopping location: http://www.westfield.com/au ). As such agreement of tenancy shall be drawn between the two parties.
The secondary channel is concerned with franchising ( Appendix No. 23 ). Capital requirement should be lowered by approximately AU$100,000- $200,000 as the new target area will be a leasing of shop space in Westfield shopping malls, instead of purchase of land for a whole stand alone restaurant. In an attempt to attract more franchisees, initial loyalty fees and advertisement levy will be positioned at 4 % of the gross sales.
5.4 Promotion: Integrated Marketing Communication Mix
5.4.1 Advertising: Awareness Building
Our advertisement campaign is catered towards building brand and product awareness. Thus this forms Red Rooster’s three important advertising objectives; to inform customers of the new products development and sales promotions; to continuously persuade new buyers, as well as to encourage switching of brands from competitors customers; and to gain top- of mind product awareness.
The key message in the advertising campaign includes:
Have a balanced diet with Red Rooster
We offers the best value for meals
A pleasant place for spending time with friends and family.
Three main medium will be utilize in the advertising campaign; television commercials at
Channel 10 and at Hoyts cinema advertisements, radio commercials and advertisements in magazines and newspapers such Good Weekend and Sunday Life, SMH, Sydney Magazine and the Sun Herald.
Nevertheless, a new restructured webpage will provide another medium for advertising as well.
Further to this, occasional advertisement will be placed in city area signboards.
5.4.2 Sales Promotions
The sales promotion strategy used serve several purposes. Primarily the promotion was meant to entice consumers to purchase the health meals as a strategy to accelerate market penetration.
Secondarily it was to hold loyal consumers and finally the overall intention was to lure consumers away from competitors’ products.
UTS: 27
Prepared for: Mr. Paul Vorbach
The initial promotion tactics adopted in satisfying the primary objectives were targeted at our main customers namely, students and health conscious professionals. As such, a discount of 10% will be given to any individuals who buy individual meals with either a health club membership card or a valid student card.
In the customer retention promotion a Red Rooster free meal card will be launched. The usage of this card is similar to what we understand as a coffee card. Every customer who purchases any individual meals will be given a stamp. In collection of 5 stamps, a free small quarter meal will be given free.
All these promotions will be strongly backed by the advertising strategy and medium adopted in this marketing plan.
5.4.3 Public Relations: Reference Group Experience
The product will also be pushed through the specialist reviews of magazines and life styles sections of Sydney’s major newspapers. These include Good Weekend and Sunday Life.
Successful individuals who find Red Rooster products being advantageous in maintaining their healthy lifestyle will be interviewed and published in the news papers, magazines and foremost in the restaurant newsletter.
5.4.4 Direct and Online Marketing: Loyal Customers Contacting
The current webpage designed for Red Rooster was rather simplified, providing only the basic information in regards to the restaurant products.
( http://www.redrooster.com.au/DefaultMain.htm
). A design restructure will be carried out, bringing new ideas and an online marketing strategy to:
Build awareness of all the current available products as well as future promotions
Provides information in regards to the products nutrition and facts for healthy lifestyles in consuming Red Rooster products
Build up the company image and culture
To secure and reward loyal customers
A medium to seek new ideas and constructive feedback
Thus, Red Rooster Discount Club members will be established through the webpage for many innovators and early adopters who seek to enjoy and try our products. Periodically, emails will be sent out to them to keep them informed of our recent developments in any form. In addition a feedback form concerning their recent experience in Red Rooster restaurant will be attached with the emails.
A discussion forum for members and non- members will be set up to enhance discussions between individuals, bringing together ideas and opinions of the health products. A discount card of 10% will also be issued to any new members. In addition a discount card of 20% will be issued to loyal members who have actively participated in the forum as well as given constructive feedback to Red Rooster.
The Web page will be updated to include all recent developments in products as well as news regarding new restaurant openings in the neighbourhood, restaurants of the month, new promotions and so on. Facts on nutrition of all products as well as information regarding healthy lifestyle practices will be provided
UTS: 28
Prepared for: Mr. Paul Vorbach
6. MARKETING BUDGET
6.1 Forecast Sales
As identified in PEST analysis, consumers are more concerned with their health. The forecast market share of Red Rooster after launching new health-range products is expected to increase from 9% in 2004 to reach $1079 millions with 16% of market share in 2009 and remain stable thereafter, despite the fact that overall growth rate of fast food industry will grow constantly at
1.5% over the forecast period.
Sales forecast for Red Rooster 2004 - 2009
Actual/Forecast Sales
Market potential (millions)
Market demand - fast food industry
(millions)
Year on year growth rate
Market share - Red Rooster
Total revenue - Red Rooster
2004 2005 2006 2007 2008 2009 Notes
$24,349 $24,853 $25,367 $25,891 $26,427 $26,974 1
$7,619 $7,877 $8,143 $8,417 $8,702 $8,995
53.30% 3.37% 3.37% 3.37% 3.37% 3.37%
9.00% 10.00% 10.50% 11.00% 11.50% 12.00%
$724 $788 $855 $926 $1,001 $1,079
2
1. www.euromonitor.com
2. Adapted from wwweuromonitor.com and www.theage.com.au/articles/2003/06/12/1055220711406.html
Business Performance
Revenue for new health range products will doubly increases over the forecast period, from
A$57.92 million reaching A$102.6 million within 2 years and then gradually rise to A$161.85 million in 2009.
Because of the fact that consumers perceive that fast food is a non-healthy food, marketing expenses will be spent, in particular, for advertisements in the first two years, calculated by 35% of the previous year’s advertising budget ( see Appendix No. 24 ).
Consequently, net marketing contribution grows markedly to AU$79.32 million in 2009.
Business performance 2004-2009
Business Performance 2004 2005 2006 2007 2008 2009 Notes
$724 $788 $855 $926 $1,001 $1,079 Total revenue - Red Rooster
Market share - health-range products
Total customers (millions)
Revenue per customer
Revenue -health-range products(millions)
Variable cost per customer
8% 10.50% 12.00% 13.50% 15.00%
10.95 11 11.06 11.12 11.17
15%
11.22
$5.29 $7.52 $9.28 $11.24 $13.44 $14.43
$57.92 $82.74 $102.60 $125.01 $150.15 $161.85
$3.44 $4.89 $6.03 $7.31 $8.74 $9.38
1
2
Total variable cost (millions)
Margin per customer
Total contribution (millions)
Marketing expenses (millions)
Net marketing contribution
(millions)
$37.66 $53.81 $66.65 $81.31 $97.65 $105.19
$1.85 $2.63 $3.25 $3.93 $4.70 $5.05
$20.26 $28.93 $35.95 $43.70 $52.50 $56.66
$2.70 $2.70 $2.00 $1.20 $1.20 $1.00 3
$17.56 $26.23 $33.95 $42.50 $51.30 $55.66
UTS: 29
Prepared for: Mr. Paul Vorbach
1. Assumed these figures based on the number of outlets of Red Rooster and market share
2. Assumed cost based on pricing of Red Rooster's overall products
3. Adapted from overall advertisement expenses in 2003
6.2 Sensitivity Analysis
The major risk associated with the financial estimates are due to sales forecast risks. A sensitivity analysis for sales volume shows that a 20% variance in forecasted sales volumes would still result in a positive net contribution margin. The results of the sensitivity analysis are demonstrated below.
Sensitivity analysis and net marketing contribution
Millions
$70
$60
$50
$40
$18
$16
$14
$12
$10
$8
$6
$4
$2
$0
$30
$20 Base case -20%
$10
Base case sales volume
Base case +20%
$0
2004 2005 2006 2007 2008 2009
6.3 Break-Even Analysis
Break-even analysis based on 2004 costs and pricing per customer shows a break-even as demonstrated below. This corresponds to a payback period of about 6 months.
Break-even analysis
Total cost
Revenue -health products
June
July
Augus t
Se ptembe r
Oc tober
Nove mber
De ce mber
Ja n-
05
Fe bua ry
2005
Apr
-05
M ay-
05
UTS: 30
Prepared for: Mr. Paul Vorbach
7. IMPLEMENTATION & CONTROL GUIDELINES
7.1 Implementation Plan
The overall marketing project involves a systematic cycle which adopts the PDCA, cycle (Gray and Larson, 2003) or simply known as Plan, Do Check and Act. In meeting all crucial requirements, a proper implementation plan has to be carried out. This serves several important purposes in this project:
To ensure all critical activities are being carried out
Provide an overview of the project
Provide a basis for scheduling activities to ensure activities datelines are met.
Understanding the relationships of activities.
Ensure responsibility of management
Thus, the work breakdown structure and the scheduling plan for the Red Rooster marketing project is clearly shown in Appendix No. 25.
7.1.1 Implementation Milestones and Activities
7.1.2 Development of Goods and Sevices
As such this task involves several collaborations with several departments within the organisation in regards to the product bundling, additions to the menu, product packaging and so on. Setting up a specification for control of quality such as determining sizes and portion of each meals, method of preparation, determining the equipment needed and determinig approximate service time and code of practice and so on.
7.1.3 Employees Development and Reward s
Employees and Franchisees will receive training in all aspects of the new product begining from the order process to receival, storage, preparation methods and servicing to customers at the head office training centers. In addition practical training and assessment will be carried out in selected restaurants in assurance of quality services. A premium rewarding system shall also be developed to reward not only loyal but contributing employees.
7.1.4 Development of Sales Distribution Channels
Future developments of restaurants location will emphasise mostly in Westfield shopping malls, city areas, and locations close to schools and universities. Thus, the Development and Franchise
Departments bear the responsibility in negotiations and spotting these strategic locations.
7.1.5 Development of Systematic Supply Process
Reviewing the order process provides the basis of improving the current system in providing supplies for the restaurants. Negotiation by the Head office with Berri has to carry out in provision of the new health drinks. Such then, a supply appropriate system is crucial that raw material is sufficiently provided to all restaurants.
7.1.6 Development of Price Strategy
Departments involved bear the responsibility to establish and continuously review the pricing strategy for the new products and subsequent new products introduced. This involves cost analysis and break even analysis for the new products.
UTS: 31
Prepared for: Mr. Paul Vorbach
7.1.7 Development of Promotional Campaign
Task involves redesign and updates on web pages, design of relevant membership card, establishing advertising activities with television, radio and associated printing media. Such then, the Department involved needs to deal with public relationships in order to create a good company image.
7.2 Performance Monitoring
7.2.1 Process Market Metrics
The management tasks of planing and organisation cannot be effective without precise measurements and controls. Red Rooster utilizes its performance matrix as a standard in
Tracking the market-based performance;
Measuring the marketing profit by products; and
Organise its products around market demands.
Therefore, the company will use the following metrics to calculate and analyse the performance of the market as to provide indicators to ensure our marketing program is carried out efficiently and effectively and the level of customer satisfaction is assured;
Customer awareness,
Product preference;
Customer interest and intent;
Customer satisfaction;
Perceptions of product and service quality;
Perceptions of customer value;
Market share
Financial performance
This information will be acquired through market surveys, post-sales surveys of customers, feed back information from the web and complaints. Variances against these targets will be monitored, analysed and provided back to the Marketing Department as part of the ongoing product management process.
7.2.2 End-Result Market and Financial Metrics
In addition to the process metrics above, the following end-result metrics will be regularly monitored against planned targets,
Market share
Demand;
Product price;
Variable cost;
Volume;
Marketing expenses;
Margin and,
Net marketing contribution.
Variances against these targets will be monitored and provided to the Marketing Department as part of the ongoing product management process.
UTS: 32
Prepared for: Mr. Paul Vorbach
8. REFERENCES
ABS – Australian Bureau of Statistics (2004),
Australian Social Trends, Health Related Actions: Food and energy intake, 1998.
Census, 2001.
Household Expenditure Survey, Australia, 2000.
How Australians Use Their Time , 1998.
National Health Survey, 2001.
National Nutrition Survey: Nutrient Intakes and Physical Measurements Australia , 1998.
Population by Age and Sex, Australian States and Territories , 2003.
Communications and Information Technology, 2003
Household use of information technology, 2003
ACNielsen (2003), All Media Competitive Expenditure Estimates , Sep. 3, 2003.
Asian Food Information Centre (AFIC), (2003) “ What should you know about food borne illness
” http://www.afic.org/What%20you%20should%20know%20about%20Foodborne%20Illness.htm accessed
4 May 2004
Axis Australia, (2004) “ Australian’s attractions” http://www.axiss.com.au/content/attractions/ accessed
6 May 2004
Bis Shrapnel (2003), Bis Shrapnel Foodservice Report – Trends in Foodservice and Eating Out ,
May/June 2003, http://www.c-store.com.au/articles/bis-eatingoutrends.html, accessed: 25/03/2004.
Dodd, T., (2004), “ On course for the master’s ”, The Australian Financial Review, 19 Apr., p.32-34
Elliot, G., 2003, The couch economy, The Australian, 02 Jan 2003, p. 27-30.
Euromonitor (2003), Consumer Foodservice in Australia , 2003, http://www.euromonitor.com/Consumer_Foodservice_in_Australia, accessed: 25/03/2004.
“Fast Foods plucks Red Rooster” , Sydney Morning Herald , June 1, 2002 www.news.com.au/common/story_page accessed 20 April 2004
Foreign Agricultural Service/USDA (2000), Australia Hotel, Restaurant, Institutional Food Service
Sector Report 2000 , Global Agricultural Information Network Report #AS0012, Mar 12, 2000.
Gudergan, S. P. (2001), Contemporary Marketing Management , Pearson Custom Publishing, Sydney,
2001.
Hungry Jack’s (2004),
Hungry Jack’s Website , http://www.hungryjacks.com.au/AboutSchool.aspx, accessed: 25/03/2004.
“Hungry Jack in talks to buy Burger King”, Sydney
Morning Herald , April 11, 2002, http://www.smh.com.au/articles/2002/04/10/1018333373150.html, accessed: 25/03/2004.
McDonald’s (2004),
McDonald’s Website
, http://www.mcdonalds.com.au, accessed: 01/04/2004.
Porter, M.E. (1995). Competitive Strategy: Techniques For Analyzing Industries And Competitors, New
York: Free Press; London: Collier Macmillan.
UTS: 33
Prepared for: Mr. Paul Vorbach
Red Rooster (2004), Red Rooster Website , http://www.redrooster.com.au, accessed: 05/05/2004.
Reid, M. (2001), Food marketing in the 21st Century: building the consumer–marketer connection,
Nature & Society Forum, www.natsoc.org.au/html/papers/reid.pdf, accessed: 05/05/2004.
Robinson, N. (2004), “Can junk food be healthy?”, The Australian , April 24, 2004 http://www.theaustralian.news.com.au/common/story_page/0,5744,9366932%255E23289,00.html, accessed: 14/05/2004.
Roy Morgan (2003), QSR Marketing and Advertising Planning (MAP) : April 2002 – March 2003.
Subway (2003), Subway Website , http://www.subway.com.au, accessed: 13/05/2004.
Urquhart, B. (2004) Red Rooster/Chicken Treat – “Hot Stuff”, April 2004, Marketing Focus , Perth, ww.marketingfocus.net.au/Red%2520RoosterChicken%2520Treat%2520Hot%2520Stuff.html+c hicken+suppliers&hl=en, accessed: 10/05/2004.
Williams, R. (2003), “Red Rooster ready to fly east and ruffle some feathers” – The Age , June 13 2003, http://www.theage.com.au/articles/2003/06/12/1055220711406.html
, accessed: 20/03/2004.
World competitiveness yearbook,
Economic performance, 2004
Government efficiency, 2004
Business efficiency, 2004 http://www01.imd.ch/wcy/factors/ accessed 15 May 2004
UTS: 34
Prepared for: Mr. Paul Vorbach
9. APPENDICES
Appendix No. 1: Roy Morgan QSR Marketing and Advertising Planning : April
2002 – March 2003
The research summarized below is secondary research obtained from Roy Morgan Research , one of
Australia’s best known and longest established market research companies.
Roy Morgan Research interviews over 1,000 people (aged 14+) throughout Australia (both metro and country areas) every weekend. Research is obtained by both face-to-face interviewing and a self-completion survey.
Fast Food Outlets:
KFC, Red Rooster, Nandos, McDonald's, Hungry Jack's, Burger King, Pizza Hut, Pizza Haven, Dominos,
Eagle Boys Pizza, Subway
The sample size for this survey is 12,715 people.
Profile / Segment
REGION
Capital Cities 63.70% (Read as "63.7% of all people who have visited or purchased from the above fast food outlets in the last
4 weeks live in capital cities”).
Country Areas
STATES
N.S.W.
Victoria
Queensland
South Australia
Western Australia
Tasmania
Darwin - Alice Springs
SEX
Men
Women
AGE - summary
14-17
18-24
TOTAL 14-24
25-34
35-49
TOTAL 50 and Over
50-64
65 and Over
TOTAL 18 and Over
15.80%
23.10%
22.80%
30.80%
23.30%
17.80%
5.40%
92.70%
EDUCATION LEVEL - summary
Primary School
Some Secondary/Tech.
Intermediate/Form 4/Year 10
1.10%
16.50%
14.40%
5th form/Leaving/Year 11
Finished Tech./HSC/Year 12
Some/ Now at University
Have Diploma or Degree
WORK STATUS OF RESPONDENT
7.00%
19.80%
12.70%
28.50%
36.30%
35.00%
24.50%
19.50%
7.90%
10.30%
2.20%
0.70%
48.90%
51.10%
7.30%
UTS: 35
Prepared for: Mr. Paul Vorbach
Full Time
Part Time
TOTAL Now Employed
Home Duties
Don't Work
Looking for Full Time work
Looking for Part Time Work
43.80%
20.40%
64.20%
10.30%
2.60%
2.80%
2.10%
Retired
Students
TOTAL Not Employed
8.70%
9.30%
35.80%
OCCUPATION OF RESPONDENT
(All Workers) - summary
Professional/Manager 16.30%
White Collar Workers
Skilled Workers
Farm Owner
Others (incl. Semi/Unskilled)
Full Time Workers
Part Time Workers
TOTAL Not Employed
TOTAL
24.60%
8.50%
0.50%
14.40%
LIVING
43.80%
20.40%
35.80%
100.00%
CURRENT
ARRANGEMENTS
Live Alone
Partner And No Children
Partner And Children
Single Parent
With Parents
Boarder
5.20%
20.30%
41.90%
5.10%
17.10%
1.00%
Shared Household
Other
9.10%
0.50%
ROY MORGAN
SEGMENTS
VALUES
(Developed in conjunction with Colin Benjamin of
The Horizons Network)
Basic Needs 1.20%
Fairer Deal
Traditional Family Life
Conventional Family Life
'Look At Me'
Something Better
Real Conservatism
Young Optimism
Visible Achievement
Socially Aware
SOCIO-ECONOMIC SCALE
AB Quintile
C Quintile
D Quintile
E Quintile
FG Quintile
5.00%
12.10%
10.10%
12.90%
9.00%
4.30%
10.80%
20.20%
14.30%
21.70%
21.60%
21.40%
19.30%
16.10%
UTS: 36
Prepared for: Mr. Paul Vorbach
HOUSEHOLD LIFE-CYCLE
Young Singles
Young Couples
Young Parents
Mid-Life Families
Mid-Life Households
Older Households
12.40%
8.30%
31.40%
14.50%
27.10%
6.40%
BODY MASS INDEX (respondents
18+)
Respondents 18+
Underweight
92.70%
2.60%
Acceptable weight
Overweight
Obese
Not classified
37.60%
33.80%
23.00%
3.00%
Source: Roy Morgan Research Pty. Ltd., Melbourne, Australia
FAST FOOD PLACES EATEN AT/TAKEN AWAY FROM IN LAST 4 WEEKS (using the same sample as above).
Outlet
K.F.C.
Red Rooster
Number who have visited outlet in the last 4 weeks
Number who have visited outlet in the last 4 weeks
(%)
5,759 45.30%
2,466 19.40%
Total percentage
(Read as "Of all the people who have been to the 20% above fast food outlets, 45.3% have eaten at/taken away from KFC in the last 4 weeks”).
9%
Nandos 317 2.50% 1%
McDonald's 7,870
Hungry Jack's 3,293
Burger King 966
Pizza Hut 2,263
Pizza Haven 686
Dominos
Eagle Boys
Pizza
1,830
699
Subway
TOTAL
2,390
28,539
61.90%
25.90%
7.60%
17.80%
5.40%
14.40%
5.50%
18.80%
28%
12%
3%
8%
2%
6%
3%
8%
100%
Source: Roy Morgan Research Pty. Ltd., Melbourne, Australia
Note: Out of a sample of 12,715 people, there were 28,539 visits made to the outlets listed above. This is an average of 2.24 visits per person.
UTS: 37
Prepared for: Mr. Paul Vorbach
Appendix No. 2: Average Weekly Household Expenditure on Food and Nonalcoholic Beverage
meals out and fast foods meat (excluding fish and seafood) bakery products, flours and cereals confectionery, condiments, prepared meals non-alcoholic beverages dairy producs
Vegetables
Fruit
Fish and seafood
Edible oils and fat
Egg and egg products
0 5 10 15 20
($)
25 30 35
Source : ABS, 2000, Household Expenditure Survey, Australia.
Evolution in Average Weekly Household Expenditure in Fast Food and Take Away 1994 – 2009:
(Forecast 2004-2009):
($)
180
160
140
120
100
80
60
40
20
0
1994 1999 2004 2009
Expenditure on Fast Food Total Expenditure on Food
Source : ABS, 2000, Household Expenditure Survey, Australia.
The growth on Fast Food expenditure (14% in 5 years, in average) is a business opportunity for Red
Rooster .
UTS: 38
40
Prepared for: Mr. Paul Vorbach
Appendix No. 3: Australian - Market Lifestyle Factors
When researching on Psychographic aspects, we focus on attitudes, values, activities and interests of our potential customers. In this section, we analyse secondary data on how
Australians spend their time, the average time expenditure on free time activities and their attitudes towards a healthier lifestyle.
How Australians spend their time
Men and women spend their day in different ways. On an average day in 1997, men spent 20% of their day on recreation and leisure, 18% in employment related activities and 7% on domestic work, while women spent 18% of their day on recreation and leisure, 13% on domestic work, 9% on employment related and 3% on child care.
Necessary time
In 1997, Australians spent an average of 46% of their time on necessary time activities (ABS,
1998). Necessary time is the time devoted to personal care activities such as sleeping, eating and personal hygiene. There was an increase of 28 minutes per day in the amount of time spent eating and drinking between 1992 and 1997 . Those who spent time eating and drinking in commercial venues spent an average 66 minutes per day in these locations and couples with dependent children were most likely to spend time eating in these locations (see table below).
Household Purchasing Meals and Time spent in commercial venues:
Life Stage
Couples with dependent children
(a)
Couples with non-dependent children
Lone parents
Restauran t (%)
Takeawa y (%)
Total (‘000)
Time spent eating and drinking in commercial venues
(min/d)
No. of people eating and drinking in commercial venues (‘000)
53.7 75.8 1612.2 67 2,406.9
62.6
46.8
65.5
63.9
751.2
631.6
76
55
447.2
387.2
Couples without children
Lone people
Other
Total
50.8
48.4
62.3
52.9
43.4
39.9
70.8
56.9
1650.2
1652.2
636.3
6933.7
73
71
64
66
1,959.1
942.3
1487.1
7629.7
(a) Couples with dependent children include households containing both children aged 0-14 and unmarried children aged 15 and over.
Source: ABS, 1998, How Australians Use Their Time.
UTS: 39
Prepared for: Mr. Paul Vorbach
Free Time
According to ABS (1998), in 1997, Australians aged 15 and over spent an average 22% of their time (about 5 hours per day) on free time activities (ABS, 1998). The most common free-time leisure activities and the average number of minutes spent on each per day are:
Audio/visual media: 130 minutes
Talking (including phone): 35 minutes
Sport and outdoor activities: 27 minutes
Reading: 25 minutes
Games, hobbies, arts: 17 minutes
Other free time activities: 38 minutes
Average weekly household expenditure on Recreation:
Holidays - Australia
Holidays - Overseas
Other recreational and educational equipment
Books, newspapers, magazines
Audiovisual equipment
Gambling
Animal expenses
Cultural fees and charges
Sports fees and charges
Blank and pre-recorded media
Home computer equipment
0 2 4 6 8
($)
10 12 14 16
Source : ABS, 2000, Household Expenditure Survey, Australia.
Household spending on recreation averaged $89 per week. Expenditure on holidays accounted for 31% of spending on recreation. Compared to the period of 1993-94, the there was a significant increase in expenditure on sports lessons (up 107%) and culture and recreation lessons (up 55%). This reflects the trend towards a healthier lifestyle and represents a business opportunity for Red Rooster to position itself within the entertainment / healthy market.
Exercise for recreation, sport or fitness
18
The 2001 National Health Survey collected information on a number of lifestyle behaviours and related characteristics which have been established as risks to health. Among the risk factors are exercise, being overweight and some dietary habits. Compared to previous years, Australian adults are improving against the risk factors, but the proportion of adults who are overweight continues to increase.
UTS: 40
Prepared for: Mr. Paul Vorbach
Exercise
In 2001, 70% of adults used to exercise for recreation, sport or fitness (walking, moderate and vigorous exercise). Females were more likely to walk for exercise than males, while males were more likely to undertake moderate and vigorous exercise than females.
Types of exercises practiced by Australian adults in 2001:
50%
58%
40%
33%
20%
11%
Walking Moderate Exercise Vigorous exercise
Men Women
Source : ABS, 2001, National Health Survey.
In terms of exercise level and the frequency and duration of exercise, the majority of both males and females were classified to sedentary (including no exercise) and low exercise levels. Males aged 18-24 years being most likely to be classified to this high exercise level (21%).
Level and frequency of exercises practiced by Australian adults in 2001:
74%
65%
Men
Women
9%
4%
Sedentary/low level High level
Source : ABS, 2001, National Health Survey.
UTS: 41
Prepared for: Mr. Paul Vorbach
More people are exercising in 2001 than in 1995 and 1990, although differences are small. For example, the proportion of people exercising at low levels increased from 33% in 1990 to 38% in
2001 while those recording a sedentary exercise level fell from 37% in 1990 to 32% in 2001.
Proportions exercising at moderate to high levels showed little change (at around 30%).
Increase of exercise practice by Australian adults 1990-2001:
37%
32%
33%
38%
30% 30%
Sedentary Low level
1990 2001
Moderate/high level
Source : ABS, 2001, National Health Survey.
Dietary Habits of Australians
Over the last 20 years there have been improvements in Australians' diets.
Even so, the diet of many Australians is far from ideal, as indicated by the high proportion of people overweight or obese and the high incidence of related diseases. Despite an abundant supply of information on what constitutes a healthy diet, in 1995, 57% of all adults were overweight or obese (ABS,
1998). The over consumption of food, coupled with an inactive lifestyle, causes overweight or obesity. This in turn increases a person's chance of developing diseases such as cardiovascular disease, some cancers and diabetes.
There have been changes in the quantities and types of foods consumed by Australians. The consumption of meat products (a main source of saturated fat) has reduced while the consumption of chicken and seafood, which are generally lower in saturated fats, has increased.
The consumption of fruit and fruit products, vegetables, and grain products has increased. In addition, the amount of alcohol consumed has declined.
UTS: 42
Prepared for: Mr. Paul Vorbach
Daily food intake as a percentage of total food intake for Australians over 18 – 1995:
Cereals and cereal products
Milk products
Vegetables and legumes
Meat, poultry and game
Fruit
Snack foods and sugar products
Others*
0% 5% 10% 15% 20% 25% 30%
Men Women
*Others include seafood and fish, egg products, fats and oils, sauces and condiments, and miscellaneous foods.
Source : ABS, 1998, Australian Social Trends, Health Related Actions:
Food and energy intake.
Fat intake and weight
Fat provides the most concentrated source of energy in the human diet, which also contributes to the palatability of foods. High intakes of fat, particularly saturated fat, are associated with elevated levels of cholesterol, obesity and increased mortality from cardiovascular disease in populations where the level of physical activity is low. According to ABS (1998), adults consume more energy, fat, cholesterol and alcohol on the weekend than on weekdays. Besides, on weekdays, intake of vitamins and minerals was generally higher than or similar to that on the weekend.
In 1995 food and beverages purchased and consumed away from home had a higher fat content than those consumed at home. Women were less likely than men to purchase and consume food and beverages away from home (57% compared to 64%). However, when they did, this food on average had a higher fat content than food purchased by men (36% compared to 34%). This difference may be partly explained by men's more frequent and higher consumption of alcoholic beverages which contribute to energy intake but not fat to the diet. Consequently, food purchased and consumed away from home contributed a smaller proportion of total energy for women
(22%) than men (26%).
Women were generally more concerned about their body weight and diet. Women were more likely than men to be on a weight-reduction or fat-modified diet (24% compared to 16%). Also,
UTS: 43
Prepared for: Mr. Paul Vorbach of those who consider themselves to be within an acceptable weight range, women were seven times more likely than men to be underweight (21% compared to 3%) and men were nearly three times more likely than women to be overweight or obese (38% compared to 14%).
Overweight and Obesity
On average, males‘weight is higher for males than females in all other age groups. Average weight is greatest in men and women aged 45-64 years, in contrast with the peak in height for
16-24 year olds. This ongoing weight gain, after maximum height is reached, is possibly due to factors such as exercise and diet.
Source: ABS, 1998, National Nutrition Survey: Nutrient Intakes
and Physical Measurements Australia.
The ABS National Nutrition Survey (1998) concluded that over 85% of children aged 2-8 years had a normal weight for height. A very small proportion of children of this age had low weight for height (thinness), and approximately 5% had a high weight for height (overweight).
The majority of people aged 9-18 years had a normal weight for age (approximately 75%). A small proportion of 9-18 year olds were underweight, and about 23% were overweight or at risk of overweight.
The ABS National Health Survey (2001) concluded that the proportions of adults classified as overweight or obese has increased significantly. For both males and females, increases were recorded in both the overweight and obese groups, and were recorded across all age groups.
UTS: 44
Prepared for: Mr. Paul Vorbach
Proportion of adults classified as overweight or obese in Australia (1990-
58%
52%
46%
42%
37%
32%
1990 1995 2001
2001):
Women Men
Source : ABS, 2001, National Health Survey.
For both males and females the proportion classified as overweight or obese was highest in the age groups from 45-74 years. At every age, men were more likely than women to be overweight or obese. Overall, 45% of men and 29% of women were considered to be overweight with a further 18% of both men and women being classified as obese . For people aged 45 years and over, only about 25% of men and 35% of women were within an acceptable weight range for their height. Among females aged 18-24 years 13% were classified as being underweight.
Source: ABS, 1998, National Nutrition Survey: Nutrient Intakes
and Physical Measurements Australia.
UTS: 45
Prepared for: Mr. Paul Vorbach
Appendix No. 4: Australian - Geographic Factors
In area, Australia is the sixth largest nation after Russia, Canada, China, the USA and Brazil. Its population, however, is relatively small (now estimated at just over 19.5 million). The profile for
Red Rooster’s potential customers consists of the following geographic factors:
Land Area and Population by States and Territories
State/Territory
New South Wales
Victoria
Queensland
Western Australia
South Australia
Tasmania
Northern Territory
Area in km 2
800 642
227 416
1 730 648
2 529 875
983 482
68 401
1 349 129
Population (in m)
6.7 m
4.9 m
3.8 m
1.9 m
1.5 m
0.5 m
0.2 m
Population (in
%)
34
25
19
10
7.5
2.5
1
Capital
Sydney (4.2 m)
Melbourne (3.5 m)
Brisbane (1.7 m)
Perth (1.4 m)
Adelaide (1.1 m)
Hobart (0.2 m)
Darwin (0.1 m)
Australian Capital
Territory
Australia - TOTAL
2 431
7 692 024
0.3 m
19.8 m
1
100
Canberra (0.3 m)
Source: ABS, September, 2003
Australia’s Population Density
90% of Australia’s total population are contained within just 2.2% of the continent.
in average
Sydney
Waverley
: 2,5 people per km
: 8.400 people per km
2
2
: 6.900 people per km
2
North Sydney : 5.700 people per km
2
St.Kilda/Melbourne : 5.500 people per km
2
The immediate geographic areas for our marketing focus are the capital cities of the following states:
NSW (Sydney)
VIC (Melbourne)
QLD (Brisbane)
WA (Perth) and
SA (Adelaide)
with a population of 11.9 million people (approximately 61% of total population).
UTS: 46
Prepared for: Mr. Paul Vorbach
Appendix No. 5: Australian - Demographic Factors
The following information will help us – together with the outputs from our primary market research – clearly and accurately define a profile of our target group in terms of the following criteria: sex, age, income, marital status, qualification, and occupation .
Australia’s Adult Population Age Structure
(Source: ABS, 2003)
800 000
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0
20-24 25-29 30-34 35-39 40-44
Age Group
45-49 50-54 55-59
Men Women
Total Number of Men:
5.489.250 (28.1%)
Total Number of Women:
5.508.750 (28.3%)
55-59
50-54
526 500
663 000
682 500
750 750
760 500
741 000
702 000
663 000
526 500
643 500
702 000
760 500
760 500
750 750
721 500
643 500
45-49
40-44
35-39
30-34
25-29
20-24
Men
UTS: 47
Women
Prepared for: Mr. Paul Vorbach
Households and Families:
As the new RED ROOSTER’S healthy range is a “lone person household type” of product, the following information is critical in determining our market potential and the target group.
(Source: ABS, Census 2001)
Of the 7,072,202 households counted in 2001, with average size of 2.6 people,
68.8% = family households, (1.8% decrease from 1996);
22.9% = lone person households (0.8% increase from 1996);
3.7% = group households (0.4% decrease from 1996).
Of all the 4,936,828 families counted in 2001 in Australia:
47.0% = couples with children (0.4% decrease from 1996);
35.7% = couples without children (1.6% increase from 1996);
15.4% = lone parent families (0.9% increase from 1996).
According to the report, there has been an increase in the number of people living alone, decline in fertility rate and delay of marriage.
Living alone
In 2001, men under the age of 50 years were more likely to live alone (6.0%) than women
(3.9%), but after the age of 50, women were more likely to live alone (23.3%) than men (13.7%);
While the number of younger people (aged 20-29 years) living alone has almost doubled in the past 30 years -from 4.7% in 1971 to 7.1 in 2001, the majority still live in family households
(71.2% in 2001, compared to 88.2% in 1971). This is part of a wider trend, with the proportion of people living alone increasing in each of the five year age groups, from 20-25 years to 60-64 years, since 1971.
UTS: 48
Prepared for: Mr. Paul Vorbach
Appendix No. 6: Primary Research – Research Brief and Sample Questionnaire
Market Research Brief – Red Rooster
Primary Qualitative Marketing Research
Aim of the research is to find out:
Who are our potential customers (buyers/influencers, etc.)
what are their characteristics (demographic, psychographic)
If our potential customers do seek the benefits we offer and WHY?
If not, can we force/educate/motivate them to aspire after them?
What would be the reaction of the customers to the launch of a healthier alternative?
what are the motivators of our potential customers to choose Red Rooster as a fast food option;
What is the customer’s perceived value of Red Rooster as opposed to competitors in terms of price and product.
Target groups
Australian general public – primarily focused on age group between 16-55
Methodology - Survey
face to face interview (open and closed-end questions in questionnaires)
Scope of the research
100 questionnaires
Location – Sydney
Red Rooster outlets
Westfield Shopping Centres
University of Technology, Sydney Campus
1 phase
To address the general public (questionnaires)
UTS: 49
Prepared for: Mr. Paul Vorbach
QUESTIONNAIRE :
Hello, we welcome you to join us in our primary collection of data regarding fast food in Australia, with a focus on Red Rooster. Our aim is to discover your reaction to the possible implementation of a health food menu within Red Rooster and your perceived value of Red Rooster. All information received is highly confidential. This survey will take up to a maximum of 10 minutes.
Section A
male
female Sex identification
How old are you?
What is your occupation?
<19
55<
20-55
..........................................................................
What is your marital status?
single
married
engaged
widowed
Do you have children?
Could you name three of your favourite hobbies/pastimes? yes
no
..........................................................................
..........................................................................
..........................................................................
Section B
What word would you use to describe fast food?
convenient
fattening
tasty
indulgement
Have you eaten Red Rooster in the past?
YES
NO
UTS: 50
Prepared for: Mr. Paul Vorbach
If not, why? (Skip to Section C) ..........................................................................
If your answer is YES, have you eaten Red Rooster in the last:
day
week
month
year
never
How frequent have your visits been to Red Rooster?
never or less than
Irregular, but less
once a month than 1-2 times a
week
Between 1-2 times
per week
Between 3-5 times
per week
Over 5 times per week
What time of day did you visit Red Rooster?
morning
mid morning
afternoon
Did you visit Red Rooster during the?
weekday
weekend
evening
late evening
With whom did you visit Red Rooster?
No one
Spouse
Spouse and children
How do you classify the quality of Red Rooster:
Excellent
Very Good
Good
Fair
children only
Poor
friends/relatives
The pricing of Red Rooster products is?
Very expensive
Expensive
Moderate
Cheap
Very cheap
Which item do you regularly buy? (Chips and Drink are included in Meal)
Meal Alone
BBQ Chicken
Quarter Chicken
Half Chicken
Tropical
Crispy Fillet Burger
Strip Sub
Flayva
UTS: 51
Prepared for: Mr. Paul Vorbach
Fresh Sub 97
Chicken Roll
Why do you choose Red Rooster and rate each alternative (1-5).
Nutrition
Price
Taste
Convenience
Location
Other
Excellent Very Good
1
1
1
1
1
2
2
2
2
2
3
3
3
3
3
Fair
4
4
4
4
4
Poor
5
5
5
5
5
..........................................................................
Do you prefer to eat Red Rooster in?
Shopping Centre
Stand alone restaurant
Would you be interested in health food range offered by Red Rooster?
Definitely buy
Probably buy
Not certain
Take home
In car
Probably not buy
Definitely not buy
Which health food product would you be interested in, rate 1-5 ?
Fresh Salad Variety
Wholemeal Buns
Def. Buy Prob. Buy Not Certain Prob. Not buy Def. Not buy
1
1
2
2
3
3
4
4
5
5
Grilled Chicken
Fruit Juice Variety
Other...................................
1
1
1
2
2
2
3
3
3
4
4
4
5
5
5
Do you have any suggestions to improve Red Rooster?
.......................................................................................................................................................................................
.......................................................................................................................................................................................
.......................................................................................................................................................................................
........................
Section C
For purpose of the survey we will restrict Red Rooster competition to McDonalds, KFC, Hungry Jack’s, Subway,
Pizza Hut, Dominos and Oporto.
Please rank these in order of popularity from 1 to 8 (1 being the most popular)
KFC _____
Red Rooster
Hungry Jacks
Subway
Pizza Hut
Domino’s
McDonald’s
Oporto
_____
_____
_____
_____
_____
_____
_____
UTS: 52
Prepared for: Mr. Paul Vorbach
What do you believe is the most popular fast-food chain in Australia?
..............................................................................
What are the last 3 fast food stores/outlets have you visited?
1.............................................................................
2. ...........................................................................
3. ...........................................................................
How often do you buy the following fast-food, rate scale 1-5?
1 never or less than 2 Irregular, but less
once a month than 1-2 times a
3 Between 1-2 times
per week
4 Between 3-5 times
per week
5 Over 5 times per week
week
Red Rooster
KFC
Hungry Jacks
Subway
Pizza Hut
Domino’s
McDonalds
Oporto
1
1
1
1
1
1
1
2
2
2
2
2
2
2
3
3
3
3
3
3
3
4
4
4
4
4
4
4
5
5
5
5
5
5
5
1 2 3 4 5
What word would you use to describe the following fast food restaurants? (For example, expensive, tasty)
KFC .............................................................................
Red Rooster .............................................................................
Hungry Jacks .............................................................................
Subway .............................................................................
Pizza Hut
Domino’s
.............................................................................
.............................................................................
McDonalds .............................................................................
Oporto .............................................................................
UTS: 53
Prepared for: Mr. Paul Vorbach
Appendix No. 7: Primary Research – Summary of results
PRIMARY RESEARCH FINDINGS
MARKETING MIX USAGE
Demographic Characteristics :
54% of the surveys respondents were men and
46% were women
PRODUCT PROMOTION
Targeted both
Men and
Women
PRICE
55% of our interviewees were Australian residents and 45% were non-residents
88% of all interviewees are in the age group between 18-34 years old
50% of the respondents were students followed by
35% of professionals.
84% of the surveys respondents were single people and 87% have no children
Target between age group 18-
34
Target middle
Income groups.
Used rapid skimming price strategy followed by
High-value strategy
Psychographic Characteristics:
The most cited hobbies of the respondents were reading, movies and shopping.
32.5% of the interviewees would definitely buy and 36.5% would probably buy a new healthy range launched by Red Rooster
Grilled Chicken and fresh salad variety were the items more likely to be purchased in a new
Red Rooster healthy range
63% of the respondents eat fast food because of the convenience
Product Usage
Product
Features /
Benefits
Target single people/ no parental young family
Target entertaining occasions.
Healthier diet habit mindset
X
Healthier diet habit mindset
Usage behaviour:
54% of the interviewees have already eaten at
Red Rooster and 46% have never tried Red
Rooster before
60% of those who have eaten at Red Roster before have gone in the last year or more than one year ago.
Improve awareness/ market penetration
Improve retention– nonloyal customers
PLACE
X
Improve availability/ market access
UTS: 54
Prepared for: Mr. Paul Vorbach
43% of the surveys respondents used to eat at
Red Rooster with friends/relatives and 32% alone
58% of the interviewees used to eat at Red
Rooster during the afternoons and 63% on weekends
The most popular meals at Red Rooster are
Quarter Chicken (23%) and Half Chicken
(19%)
The most popular individual items at Red Rooster menu are Quarter Chicken (26.5%) and Crispy
Fillet Burger (20%)
78% of the respondents perceived the price of
Red Rooster as moderate and 14% as cheap
Product features
Product features
31% of the respondents visited Red Rooster because of taste and only 8% because of convenience
38% would like to consume Red Rooster at shopping centres and 27% would like to take home
PRIMARY RESEARCH FINDINGS (cont.)
Product
Differentiation
MKTG MIX USAGE
43% of the respondents perceived the quality of
Red Rooster as good and 34% as very good .
PRODUCT
Customer Perceptions of Red Rooster relative to the competitors:
PROMOTION
Product differentiatio n: taste and
PRICE quality
Red Rooster was perceived as relatively unpopular by the interviewees. The level of popularity of the fast food chains in Australia was perceived as: McDonald’s (45%), KFC (27%),
Hungry Jack’s (10%), Pizza Hut (8%), Domino’s
(4%), Red Rooster (3%) , Subway (2%) and
Oporto (1%).
McDonald‘s was perceived as convenient by most respondents (45%). Red Rooster was perceived as the least convenient (0.8%).
Product Usage
Lack of perceived benefits and intensify brand exposure
Target Friends/ individuals.
Target entertainment - lunch among friends/relatives on spare time
Lack of awareness, improve exposure; problem of positioning, no identification with the brand image.
Value for money strategy; economic and productperformance relative value
No perceived value
Improve availability/ market access
Improve availability/ market access
PLACE
Lack of availability, inconvenienc e
Poor distribution / improve market access..
McDonald’s was the leader in awareness among the interviewees (30%), followed by KFC (23%),
Hungry Jack’s (14%) and Red Rooster (10%) .
The customers‘ perceptions about the fast-food chains were:
Red Rooster - tasty (23%)
KFC - greasy (30%)
Subway - fresh (40%)
McDonald’s – convenient (45%)
Product differentiatio n: taste and quality
Red Rooster needs more brand exposure.
UTS: 55
Pizza Hut – cheap (6%)
Oporto – dry (10%)
100
90
80
70
60
50
40
30
20
10
0
Male
Gender
Prepared for: Mr. Paul Vorbach
Surveyed Genders
Female
Surveyed Genders
Male
Female
UTS: 56
Prepared for: Mr. Paul Vorbach
Residency in Australia
60
50
40
30
20
10
0
Permanent residency
Residency
Non- permanent residency
Residency in Australia
Permanent residency
Non- permanent residency
Age Spread
100
90
80
70
60
50
40
30
20
10
0
<19
20-24
25-29
30-34
35-39
Age spread
40-44
45-49
50-54
55>
Age Spread
Age Spread
UTS: 57
100
90
80
70
60
50
40
30
20
10
0
Prepared for: Mr. Paul Vorbach
Marital staus
100
90
80
70
60
50
40
30
20
10
0
Single
Married
Marital status engaged widowed
Marital staus
Marital staus
Children with children without children
Children with children
Children without children
UTS: 58
Prepared for: Mr. Paul Vorbach
Occupation
100
90
80
70
60
50
40
30
20
10
0
Students
Professionals
Occupations
Non-profesionals
Retired
Occupation
Students
Professionals
Non-profesionals
Retired
Perception of fast food
100
90
80
70
60
50
40
30
20
10
0
Convenient
Fattening
Reasons
Tasty
Indulgement
Reason for eating fast food
Convenient
Fattening
Tasty
Indulgement
UTS: 59
Prepared for: Mr. Paul Vorbach
Eatan Red rooster in past year
100
90
80
70
60
50
40
30
20
10
0
Yes
No
Frequencies visit to Red rooster
100
90
80
70
60
50
40
30
20
10
0
Daily
Weekly
Frequency
Monthly
Yearly
Eatan Red rooster Before
Frequencies visit to Red rooster
Yes
No
Daily
Weekly
Monthly
Yearly
UTS: 60
Prepared for: Mr. Paul Vorbach
Time of visit to Red rooste r
100
90
80
70
60
50
40
30
20
10
0
Morning
Mid morning
Time
Afternoon
Evening
Late evenings
Time of visit to Red rooster
Morning
Mid morning
Afternoon
Evening
Late evenings
Prefered time of visit in the week
100
90
80
70
60
50
40
30
20
10
0
Weekdays
Time of visit
Weekend
Prefered time of visit in the week
Weekdays
Weekend
UTS: 61
Prepared for: Mr. Paul Vorbach
Companies during visits
100
90
80
70
60
50
40
30
20
10
0
Alone
Spouse
Companies
Spouse and childred Children only
Friends and
Relatives
Companies during visits
Alone
Spouse
Spouse and childred
Children only
Friends and Relatives
Quality Perceive of Red rooster
100
90
80
70
60
50
40
30
20
10
0
Excellence
Very Good
Good
Quality Perceived
Fair
Poor
Quality Perceive of Red rooster
Excellence
Very Good
Good
Fair
Poor
UTS: 62
Prepared for: Mr. Paul Vorbach
Perceive Price at Red Rooster
100
90
80
70
60
50
40
30
20
10
0
Very expensive
Expensive
Moderate
Price perceive
Cheap
Very cheap
Perceive Price at Red Rooster
Very expensive
Expensive
Moderate
Cheap
Very cheap
Most Popular food in Red rooster (Meal)
25
20
15
10
5
0
Most Popular food in Red rooster (Meal)
Most Popular food in Red rooster
(Meal)
Meals
UTS: 63
Prepared for: Mr. Paul Vorbach
Appendix No. 8: Australian Political Environment: Democratic & Stable
10
9
8
Risk of
Political
Instability
7
6
5
4
A u st r a l i a U S I r e l a n d U K S i n g a p o r e Ge r m a n y H o n g
K o n g
Source: World Competitiveness Yearbook 2002
F r a n c e M a l a y si a J a p a n K o r e a
UTS: 64
Prepared for: Mr. Paul Vorbach
Appendix No. 9: Government Efficiency
Extent to which government policies are conductive to effectiveness
Brazil
Russia
Japan
Korea
UK
Netherlands
China
New Zealand
USA
Australia
Singapore
0 10 20 30 40 50 60 70 80 90
2004(b) 2003
Source: http://www02.imd.ch/documents/wcy/content/ge.pdf
(a) Government efficiency based on public finance, fiscal policy, institutional framework, business legislation and societal framework
(b) Until May 2004
Appendix No. 10: Economic Efficiency
Macro-economic evaluation of domestic economy
Brazil
Korea
Sweden
Australia
New Zealand
UK
Singapore
Germany
China
USA
0 10 20 30 40 50 60 70 80
2004(b)
90 100
2003
UTS: 65
Prepared for: Mr. Paul Vorbach
(a) Economic efficiency based on domestic economy, international trade, international investment, employment and prices
(b) Until May 2004
Source: http://www01.imd.ch/documents/wcy/content/ep.pdf
Appendix No. 11: Household Computer and Internet Access
HOUSEHOLD COMPUTER AND INTERNET ACCESS
Computer access(a)
Households
With children under 18
Without children under 18
Household income
Under $25,000
$25,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000 or more
All households
1998
%
64
33
20
44
61
71
80
45
1999
%
66
37
21
45
64
73
81
48
2000
%
72
43
24
52
66
78
85
53
Internet access(a)
1998
%
1999
%
22
13
5
12
21
32
44
16
31
17
6
17
31
39
52
22
(a) Proportions are of all households in each category.
Source: Household Use of Information Technology, Australia, 2000 (8146.0).
80
70
60
50
40
30
20
10
Internet access
Computer access
0
1998 1999 2000 2001
Projected data for 2001
Source: Household use of information technology, Australia, 2000
Appendix No. 12: Adults Accessing the Internet
ADULTS ACCESSING THE INTERNET(a)(b)
Site of Internet access(c)
Home (%) Work (%) Other sites(%) Any site(%)
2000
%
45
26
10
28
40
55
69
33
UTS: 66
Age group (years)
18-24
25-34
35-44
45-54
55-64
65 or over
Sex
Males
Females
Region
Capital cities
Rest of Australia
All adults
32
25
32
22
29
39
34
35
33
18
7
Prepared for: Mr. Paul Vorbach
26
20
25
19
23
24
33
28
29
13
2
24
21
24
20
22
59
33
19
14
8
2
50
43
50
40
47
75
62
52
47
26
9
(a) Proportions are of all persons in each category.
(b) Internet access occurred during the preceding 12 months.
(c) Persons may have accessed the Internet at only one or any number of sites.
Source: Household Use of Information Technology, Australia, 2000 (8146.0).
Appendix No. 13: Current market share per competitor and Sales Forecast for 2004
Sources:
1.
Roy Morgan Research “QSR Marketing and Advertising Planning” (2003). We have assumed that the number of people who visit each outlet equates to the market share of that outlet.
2.
Euromonitor “Consumer Foodservice in Australia”;
3.
ACNielsen (2003) Individual sales figures have been calculated using the average market share and total projected sales.
Market share per Competitor (2003) and Sales Forecast for 2004 (AU$ bi)
Euromonitor
Market Share
McDonalds
KFC
Hungry Jacks
Red Rooster
Subway
Pizza Hut
Dominos
Roy Morgan
Market
Share
28%
20%
15%
9%
8%
8%
6%
ACNielsen
Market
Share
26%
18%
11%
8%
5%
4%
7%
27%
18%
13%
9%
6%
6%
4%
Calculated
Average Market
Share
27%
18%
13%
9%
6%
6%
5%
Estimated
Sales 2004
($bi)
2.1
1.4
1.0
0.7
0.5
0.5
0.4
UTS: 67
Others
Total
6%
100%
21%
100%
Prepared for: Mr. Paul Vorbach
18%
100%
14%
100%
Market Share Fast Food Chains (2003)
1.2
7.6
16% Others
5% Dominos
6% Pizza Hut
6% Subway
9% Red
Rooster
13% Hungry
Jack's
27%
McDonald's
18% KFC
Appendix No. 14: Competitive Analysis
Competitor Products
McDonald's
Chicken
Chicken McNuggets (20 pieces)
Chicken McNuggets (9 pieces)
Chicken McNuggets (6 pieces)
Chicken McNuggets (3 pieces)
Crispy Chicken Sandwich
McChicken
Chicken Foldover
Salads
Crispy Chicken Caesar Salad
Garden Mixed Salad
Roast Chicken Salad
KFC
Chicken
Popcorn Chicken Lge
Popcorn Chicken Individual
Popcorn Chicken Kids
320 840 440 49 11 125 2240 51 0 1.7 50
160 420 220 24 5 60 1120 26 0 0.8 25
96 250 130 15 3 35 670 15 0 0.5 15
64 170 90 10 2 25 450 10 0 0.3 10
219 510 230 26 5 50 1090 47 3 7 22
147 430 200 22 6 45 803 41 3 4.5 18 n/a 439 n/a 8.9 3.4 n/a n/a n/a n/a n/a n/a
249 310 140 16 5 50 890 20 3 3 23
200 73.4 n/a 3.9 2.3 n/a n/a n/a n/a n/a n/a
249 208 n/a 6.5 2.9 n/a n/a n/a n/a n/a n/a
170 660 400 44 10 75 1530 37 0 0 29
114 450 270 30 7 50 1030 25 0
71 270 160 18 4 30 640 16 0
0 19
0 12
UTS: 68
Prepared for: Mr. Paul Vorbach
HBBQ Wings Sauced (6)
HBBQ Sauce Boneless Wings (7)
Hot Wings (6)
Extra Crispy Chicken-Breast
Extra Crispy Chicken-Thigh
Extra Crispy Chicken-Whole Wing
Extra Crispy Chicken-Drumstick
157 540 300 33 7 150 1130 36 1 15 25
250 600 260 29 5 75 1950 49 2 7 35
134 450 260 29 6 145 1120 23 1
162 460 250 28 8 135 1230 19 0
1
0
24
34
114 370 230 26 7 120 710 12 0
52 190 110 12 4 55 390 10 0
60 160 90 10 2.5 70 420 5 0
0 21
0 10
0 12
Hot and Spicy Chicken - Thigh
Hot and Spicy Chicken - Breast
128 400 250 28 8 125 1240 14 0
179 460 240 27 8 130 1450 20 0
Hot and Spicy Chicken - Whole Wing 55 180 100 11 3 60 420
Hot and Spicy Chicken - Drumstick 60 150 80 9 2.5 65 380
9
4
0
0
0 22
0 33
0 11
0 13
Original Recipe Chicken - Thigh
Original Recipe Chicken - Breast
Original Recipe Chicken - Whole
Wing
Original Recipe Chicken - Drumstick 59 140 70
Original Recipe Chicken - Breast w/o skin or breading
Crispy Strips (3)
126 360 230 25 7 165 1060 12 0
161
47
108
380 170
150
140
80
25
19
8
6 145 1150
9 2.5 60 370
2 75 440
3 1 95 410
11
5
4
0
0
0
0 0
151 400 220 24 5 75 1250 17 0
Hungry Jacks
Chicken
Chicken Tenders (8 pieces)
Chicken Tenders (5 pieces)
Chicken Tenders (4 pieces)
Salads
Caesar Salad with Chicken &
Dressing
Caesar Salad with Dressing
Garden Salad with Chicken & French
Dressing
Garden Salad with Chicken &
Thousand Island Dressing
123 340 170 19 5 50 840 20 <1
77 210 110 12 3.5 30 530 13 <1
62 170 90 9 2.5 25 420 10 0
249
183
279
264
445
327
180
287
60 27.9 n/a
8 n/a 21.3 5.9
7.3 2.2 n/a 17.4 3.7 n/a 1820 22.9 n/a 1260 20.8 n/a 1020 13.2 n/a 833 17
2 n/a n/a n/a
0
0
0
0
0
0
0
29
29
22
0 14
0 11
22
40
11
14
8.1 25.2
7.3 12.8
8.7 14.6
4.3 15.4
Red Rooster
Chicken
Chicken - BBQ (Whole)
Chicken - BBQ (Half) n/a 1271 n/a 650 n/a 65.5 n/a n/a 33.5 n/a n/a 3578 41.2 n/a 1829 21 n/a 18.2 n/a
130
9.3 66.2
Chicken - BBQ (Quarter)
Nugget Chicken (one)
Chicken Roll
Chicken Strip (one) n/a 339 n/a 17.5 n/a n/a 954 11 n/a 4.9 34.6 n/a 48 n/a 2.9 n/a n/a 88 2.9 n/a 0.2 2.6 n/a 677 n/a 34.1 n/a n/a 1397 58.6 n/a 15.7 33.8 n/a 163 n/a 9.6 n/a n/a 422 10.7 n/a 1.9 8.5
Rooster Burger
Crispy Fillet Burger
Flayva
Fresh Sub 97
Strip Sub n/a 513 n/a 29 n/a n/a 1445 41.4 n/a 8.3 23.5 n/a 583 n/a 29.8 n/a n/a 1456 49.6 n/a 7.4 27.3 n/a 688 n/a 42.3 n/a n/a 1348 53.6 n/a 8.5 22.6 n/a 434 n/a 5.6 n/a n/a 1291 65.1 n/a 7.5 26.4 n/a 785 n/a 40.3 n/a n/a 1584 87.6 n/a 14.7 29.1
Subway
Chicken
Roasted Chicken Breast
Sweet Onion Chicken Teriyaki
Double Meat Chicken
Buffalo Chicken
Chicken Pizziola
Mediterranean Chicken
236 320 50
269 380 45
5 2
5 1.5
45 1000
50 1100
47
59
5
4
322 410 70 8 3 90 1500 50 5
279 400 130 15 3.5 50 1420 45 4
320 460 190 17 7 75 1700 51 5
306 470 170 19 7 70 1550 48 5
8 23
18
9
26
37
8 25
9 29
6 29
UTS: 69
Prepared for: Mr. Paul Vorbach
Salads
Roasted Chicken Breast Salad
Veggie Delite Salad
Tuna Salad
303 140 30 3 1 45 300 12 3
233 50 10 1 0 0 310 9 3
314 240 140 16 4 40 380 11 3
Turkey Breast Salad 289 110 20 2 0 20 320 11 3
Appendix No. 15: Price Comparison – Fast food Competitors
Primary research was conducted at restaurant locations to determine the following prices. In each category below, the price reflects the average of the different products within that category.
KFC
Mega Feast
Family Feast
Variety Bucket
Dinner for Two
Dinner for one
Whole Fillet Burger
Original Fillet Burger
Club Burger
Bacon & Cheese Burger
Works Burger
Twister:
Pop Corn Chicken
Chips:
Average
Lowest Price
Highest Price
Table of Prices
Hungry Jacks
22.00 Aussie Burger
16.00 Bacon Deluxe meal
9.00 Grilled chicken
8.70 Whopper Meal
5.75 Whopper Junior
4.50 Chicken Fillet Burger
4.50 Fish Burger
4.50 Side salads
4.00 Chips
4.00 Average
3.75 Lowest Price
2.00 Highest Price
1.50
6.94 Pizza Hut
1.50 Family Pizzas
22.00 Large Pizzas
Regular Pizzas
Red Rooster
Crowd Pleaser
Chicken Double up
Dinner Double
Chicken Meal
¼ chicken meal
Chicken Wings
22.95 Garlic Bread
10.95 Average
8.00 Lowest Price
5.95 Highest Price
5.95
Mega Chicken meal
Strip Sub Combo
¼ chicken & chips combo
Fillet Burger Combo
Chicken Dinner Combo
Chicken Roll
Average
Lowest Price
Highest Price
5.95 McDonalds
4.95 Garden Mix Salad
4.95 Big Mac Meal
4.95 Chicken Salad
4.95 Big Mac
3.95 Quarter Pounder
7.59 Vege Burger
3.95 Average
22.95 Lowest Price
Highest Price
The summary of average prices follows below:
Prices (A$)
Red Rooster
Lowest Price
3.95
Average Price
7.59
Highest Price
22.95
6.63
1.75
11.95
5.95
5.45
4.95
3.95
3.25
3.25
4.47
3.25
5.95
4.64
1.50
6.95
11.95
9.95
6.75
2.75
1.75
6.95
6.35
6.35
6.25
4.95
3.75
3.75
1.95
1.50
UTS: 70
2 16
0 2
0 13
1 11
Prepared for: Mr. Paul Vorbach
KFC
Pizza Hut
Hungry Jack's
McDonald's
1.50
1.75
1.5
3.25
6.94
6.63
4.64
4.47
22.00
11.95
6.95
5.95
Price Comparison – Lowest, Average and Highest Price for each fast-food competitor:
Price (A$)
25
20
15
10
5
0
R ed
R oo st er
K
FC
P iz za
H ut
H un gr y
Ja ck
's
M cD on al d' s
Appendix No. 16: Buying Decision Forces - “Young Professional”
Decision
Lowest Price
Average Price
Highest Price
UTS: 71
Prepared for: Mr. Paul Vorbach
Initiator
Self
User
Self
Influencer
Self or
Friends
Buying
Decision
Young
Professional
Buyer
Self
Decider
Self or
Friends
Source: Adapted from Kotler, Brown, Adam, Armstrong, 2004, in Gudergan (2001) p257
Appendix No. 17: Buying Decision Forces - “Student”
Initiator
Self,
Family or
Friends
User
Self
Influencer
Self,
Family or
Friends
Buying
Decision
Student
Buyer
Self or
Family
Decider
Self,
Family or
Friends
Source: Adapted from Kotler, Brown, Adam, Armstrong, 2004, in Gudergan (2001) p257
UTS: 72
Prepared for: Mr. Paul Vorbach
Appendix No.18: Red Rooster - PORTFOLIO ANALYSIS
Market
Attractivenes
Red
Rooster
66.7
33.3
33.3 66.7
3
Source: Adapted from Best, 2004, p. 279, in Gudergan (2001)
UTS: 73
OFFENSIVE
STRATEGY
(Entry): As we are entering a new market in health food products we aim for market share growth.
We need to invest heavily to establish a competitive advantage
Competitive
Advantage
Prepared for: Mr. Paul Vorbach
Appendix No. 19: Recipe for Grilled Chicken
Grilled Chicken Recipe:
Whole Chicken
Whole marinated chicken, wood fire roasted to enhance flavour, melt away unwanted fat and provide a healthy alternative to fried food and other "fast food". Chicken is quartered or left whole.
Ingredients include: salt paprika cayenne pepper onion powder thyme white pepper garlic powder black pepper roasting chicken onions, peeled and quartered
Methods of Preparation:
1.
Blend all spices together and set aside.
2.
Remove neck and giblets from chicken cavity, rinse well inside and out, and pat dry with paper towels.
3.
Rub with spice mixture, both inside and out, then stuff cavity with onions.
4.
Wrap in a resealable "food grade" plastic bag and tie closed.
5.
Remove from plastic bag and place in a shallow baking pan.
6.
Roast uncovered in a 250 F oven 5 hours.
7.
According to Agriculture Food Safety and Inspection Service, a whole chicken should reach an internal temperature of 80°C.
8.
Baste with drippings every 30 minutes after the first hour.
9.
Let rest for 10 minutes before carving.
Nutrition Facts:
Calories 360
Calories from Fat 160
Amount per Serving (165g)
Total Fat 15g
Saturated Fat 3g
Polyunsaturated Fat 0.4g
Monounsaturated Fat 0.1g
Cholesterol 115mg
Sodium 440mg
Potassium 331mg
Total Carbohydrate 1g
Dietary Fibre 0g
Protein 22g
UTS: 74
Prepared for: Mr. Paul Vorbach
Sugar 1g
Vitamin A 1657mcg
Vitamin B6 0.3mg
Vitamin B12 0.0mcg
Vitamin C 12mg
Vitamin E 0mcg
Calcium 49mg
Magnesium 24mg
Iron 1mg
Appendix No. 20: Nutrition for whole chicken
salt paprika cayenn e powde pepper onion r thym e white peppe r garlic powde r black peppe r
Protein 0 0.62 0.22 0.24 0.04 roasting chicken onions Total
0 0.24 0.11 228.99 3.48 233.94
Total lipid (fat)
Carbohydrate, by difference
Ash
Energy
0 0.54 0.31 0.03 0.01
0 2.34 1.02 1.94 0.2
23.95 0.29 0.11 0.08 0.03
0 12.14 5.72 8.33 0.81
0 0.01 0.03 211.76 0.48 213.17
0 1.02 0.68 0 25.89 33.08
Water
Caffeine
Theobromine
Energy
0.05 0.4 0.14 0.12 0.52
0
0
0
0
0
0
0 50.78 23.96 34.82 3.38
0 0.05 0.05 11.62 1.11 37.28
0 4.65 2.68 2885.76 114 3034.08
0 0.09 0.11 875.08
269.0
4
1145.56
0
0
0 19.46 11.2
12077.4
4
0
0
0
0
477
12698.0
5
Fibre, total dietary
Calcium, Ca
0 0.88 0.49 0.14 0.11
5.76 7.43 2.66 8.71 3.24
Iron, Fe 0.08 0.99 0.14 0.06 0.14
Magnesium, Mg 0.24 7.77 2.74 2.93 1.28
Phosphorus, P
Potassium, K
0 14.49
1.92 98.45
5.27 8.16 0.85
36.25 22.63 4.87
Sodium, Na
9301.9
2
1.43 0.54 1.3 0.07
Zinc, Zn
Copper, Cu
0.02
0.01
0.17
0.03
0.04
0.01
0.06 0.01
0 0
Manganese, Mn 0.02 0.04 0.04 0.01 0.01
Selenium, Se
Vitamin A, IU
Retinol
Vitamin A, RAE
Tocopherol, alpha
Vitamin E
Vitamin C, total
0.02 0.17 0.16 0.05
0
2545.3
7
748.98 0 38.02
0 0 0
0 127.26 37.46
0 0
0 1.9
0
0
0.03
2.99
0.09
1.38
0
0.35 1.28
0 0.14 0.28
0 1.12 4.59 133.6 60 227.12
0 0.04 0.3 13.49 0.66 15.91
0 0.81 2.04 253.84 30 301.64
0 5.84 1.82 2217.76 99 2353.19
0 15.41 13.22 2618.56 471 3282.32
0 0.36 0.46 908.48 9
10223.5
6
0 0.04 0.01 14.3 0.57 15.23
0 0 0.01 0.61 0.18 0.86
0 0.01 0.06 0.24 0.41 0.84
0 0.53 0.03 204.41 1.8 207.17
0
0
0
0 5.4 7.43
0 1.99 1750.16
0 0 521.04
0 0.1 521.04
0 5084.52
0 521.04
0 687.77
0.93 0.93
0 0 0.01 0.93 1.06
0 0.25 0.22 20.04 19.2 45.71
UTS: 75
ascorbic acid
Thiamine
Riboflavin
Niacin
Pantothenic acid
Vitamin B-6
Folate, total
Vitamin B-12
Folic acid
Folate, food
Folate, DFE
Tryptophan
Threonine
Isoleucine
Leucine
Lysine
Methionine
Cystine
Phenylalanine
Tyrosine
Valine
Arginine
Histidine
Alanine
Aspartic acid
Glutamic acid
Glycine
Proline
Serine
Cholesterol
Fatty acids, total saturated
4:0
6:0
8:0
10:0
12:0
14:0
16:0
18:0
18:1 undifferentiated
18:2 undifferentiated
18:3 undifferentiated
20:4 undifferentiated
22:6 n-3
Prepared for: Mr. Paul Vorbach
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 0.03 0.01 0.01 0
0 0.07 0.02 0 0
0 0.64 0.16 0.02 0.01
0.07 0
0 0.17 0.04 0.03 0
0 4.45 1.91 3.98 0.36
0 0 0 0 0
0
0
0
0
0 0 0 0 0
0 4.45 1.91 3.98 0.36
0 4.45 1.91 3.98 0.36
0 0 0
0 0 0
0.01
0.01
0.01
0
0
0
0
0
0
0.01
0.01
0.01 0
0.03
0
0.01
0.01
0.05
0.01
0.01
0.01
0 0
0 0.09 0.06
0
0
0
0
0
0
0 0
0 0.01
0
0
0 0.02 0
0 0.04 0.04
0 0.01 0.01
0
0
0
0 0.05 0.05
0
0
0
0
0
0
0 0
0
0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0.31 0.14 0.01 0
0 0.04 0.01 0
0
0
UTS: 76
0
0 0.01
0 0
0
0
0.77 0.13
1.54 0.06
0.95
1.7
0 0.01 0.01 87.8 0.44 89.1
0 0.04
11.82 0.32 12.22
0 4.28 0.35 4.91
0 0.03 0.1 80.16 57
0 0 0 4.14 0
148
4.14
0 0 0 0 0
0 0.03 0.1 80.16 57
0 0.03 0.1 80.16 57
0 2.54 0.05
0.01
0
148
148
2.6
9.43 0.08 9.53
0.01
0.01
0.01
0
11.37 0.12
16.62 0.12
18.57 0.16
6.07 0.03
11.51
16.77
18.76
6.1
0
0
0.01
0
0.01
0.02
0
0
0.02
0.03
0.01
0
0.01
0
3.07 0.06 3.14
8.88 0.09 8.99
7.35 0.09 7.44
11.1 0.08 11.2
14.4 0.47
15.11 0.14
11.25 0.11
8.1
0 975.28
0.1
0
14.93
6.69 0.06 6.76
13.43 0.1 13.53
20.43 0.19 20.65
33.4 0.56 34.04
15.27
11.37
8.21
975.28
0 0 0.01 60.52 0.08 60.77
0
0
0
0
0
0
0
0
0
0
0
0 0
0 0.27
0 0
0 0.28
0 0 1.74 0 1.76
0 0.01 44.36 0.07 44.53
0 0 12.02 0.01 12.05
0
0
0
0 0.01 73.35 0.07 73.52
0 0.01 40.61 0.18 41.27
0 0 2 0.01 2.07
0
0
0 1.07
0 0.4
0 1.07
0 0.4
Prepared for: Mr. Paul Vorbach
16:1 undifferentiated
18:4
20:1
20:5 n-3
0 0.01
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0 11.89
0
0 2.27
0 0.13
0 11.9
0 0
0 2.27
0 0.13
22:1 undifferentiated
22:5 n-3
Phytosterols
Fatty acids, total monounsaturate d
0 0 0
0 0.05 0.05
0
0 0 0 0
0 7.35 1.49 2.09
0 0
0 0 0
0 0 0.13
0 0.11 0.97
0
0 0
0 0.13
45 57.01
0 0.01 88.71 0.07 88.9
Fatty acids, total polyunsaturated
0 0.35 0.15 0.01 0
Sources: http://www.redrooster.com.au/DefaultMain.htm
.
0 0.01 0.01 45.42 0.19 46.14
Appendix No. 21: Menu for Red Rooster
Menu for Red Rooster
Chicken
Quarter Chicken
Half Chicken
Whole chicken
$4.45
$6.45
$10.45
Salads
Garden green salad
Caesar salad
Pasta salad
Greek salad
Small
$3.95
$3.95
$3.95
$3.95
Medium
$4.95
$4.95
$4.95
$4.95
Large
$5.45
$5.45
$5.45
$5.45
Mega
$7.45
$7.45
$7.45
$7.45
Buns
Whole meal Buns
Small
$0.95
Medium
$1.45
Large
$1.95
Fresh fruit juice Small
$1.45
Medium
$2.45
Large
$2.95
Individual meals
Quarter meals
Half meals
Whole meals
Small
$5.95
$7.95
$12.45
Medium
$6.95
$8.95
$13.95
Large
$7.45
$9.45
$14.45
All small/medium/large individuals meals comes with a standard size chicken comes with a small/medium/large salad of choice, a small/medium/large whole meal bun and a
UTS: 77
Prepared for: Mr. Paul Vorbach small/medium/large fresh juice. Go Super with addition piece of quarter chicken with only
$4.00 with all meals.
Coupe meals (serve 1-2 individuals) $18.95
All coupe meals come with two pieces of quarter chicken with 2 medium choices of salads, 2 medium whole meal buns and 2 small fresh fruit juices.
Party Pack (serve 3-4 individuals) $29.95
All Party pack comes with a whole chicken and a half chicken with 2 choices of Mega salads, 4 large whole meal buns and 4 large Fresh fruit juice.
Family Pack (serve 4-6 individuals) $39.95
All Party pack comes with 2 whole chickens with 3 choices of Mega salads, 4 large whole meal buns and 6 large Fresh fruit juice.
Appendix No. 22: Salad Recipes
Garden Green Salad
Our salads are perfectly suitable for healthy diets. It consists of fresh ingredients. It is a mixture of a variety of vegetables.
Ingredients include
Onions
:
Green bell peppers
Mixed greens
Tomato
Onion powder
Garlic powder
Ground black pepper
Salt
Balsamic vinaigrette salad dressing
Method of Preparation:
1.
Sauté onion and bell pepper until soft; set aside to cool.
2.
Combine the onion, pepper, salad greens, deli meat and tomato.
3.
Sprinkle with the onion powder, garlic powder, black pepper and salt.
4.
Toss to mix.
5.
Pour on enough salad dressing or vinegar to coat, toss again and serve.
Nutrition Facts:
Calories 436
Calories from Fat 218
Amount Per Serving 1
Total Fat 24.3g
Saturated Fat 6.8g
Polyunsat. Fat 5.3g
Monounsat. Fat 9.5g
Cholesterol 156mg
Sodium 177mg
UTS: 78
Prepared for: Mr. Paul Vorbach
Potassium 466mg
Total Carbohydrate 2.4g
Dietary Fibre 0.6g
Protein 49g
Caesar Salad
A fresh mix of fresh lettuce, olive oil, parmesan cheese, and Caesar dressing.
Ingredients include
Olive oil
:
Lemon juice
Prepared mustard
Garlic
Romaine lettuce
Parmesan cheese
Ground black pepper
Caesar dressing
Methods of Preparation:
1.
Mix oil, lemon juice, mustard and garlic well.
2.
Combine romaine, croutons, parmesan, and pepper.
3.
Drizzle with dressing.
4.
Toss to coat.
Nutrition Facts:
Calories 192
Calories from Fat 130
Amount Per Serving 1
Total Fat 14.6g
Saturated Fat 3.9g
Polyunsat. Fat 1.1g
Monounsat. Fat 8.8g
Cholesterol 9mg
Sodium 292mg
Potassium 278mg
Vitamin A 441mcg
Vitamin B6 0.8mg
Vitamin B12 0.5mcg
Vitamin C 11mg
Vitamin E 0mcg
Calcium 30mg
Magnesium 44mg
Iron 2mg
Total Carbohydrate 8.9g
Dietary Fibre 1.9g
Protein 7.6g
Vitamin A 2272mcg
Vitamin B6 0.1mg
UTS: 79
Prepared for: Mr. Paul Vorbach
Vitamin B12 0.2mcg
Vitamin C 22mg
Vitamin E 1mcg
Calcium 211mg
Magnesium 14mg
Iron 1mg
Pasta Salad
A colourful pasta salad full of flavour.
Ingredients include:
Penne pasta
Italian salad dressing
Green pepper
White onions
Tomato
Cucumber
Black olives
Parmesan cheese
Salt
Pepper
Garlic powder
Methods of Preparation:
1.
Boil pasta, drain well.
2.
Chop all vegetables and place them together.
3.
Mix pasta in with vegetables.
4.
Add both cheeses, mix well.
5.
Add salad dressing.
Nutrition Facts:
Calories 159
Calories from Fat 92
Amount Per Serving 1
Total Fat 10.3g
Saturated Fat 5.7g
Polyunsat. Fat 0.4g
Monounsat. Fat 3.7g
Cholesterol 22mg
Sodium 665mg
Potassium 108mg
Total Carbohydrate 4.6g
Dietary Fibre 1.1g
Protein 12.5g
Vitamin A 420mcg
Vitamin B6 0.1mg
Vitamin B12 0.4mcg
Vitamin C 18mg
UTS: 80
Prepared for: Mr. Paul Vorbach
Vitamin E 0mcg
Calcium 415mg
Magnesium 20mg
Iron 0mg
Greek Salad
A delicious salad that is absolutely healthy.
Ingredients include :
Boiling potatoes
Green bell pepper
Parsley
Green onions
Salad dressing
Head of lettuce
Watercress
Tomatoes
Cucumber
Avocado
Feta cheese
Beets
Greek olives
Methods of Preparation:
1.
Boil potatoes in skins for 30 minutes.
2.
Drain, cool and cut into slices.
3.
Add peppers, onions and parsley.
4.
Fold in salad dressing and lightly salt if wanted.
5.
1 head of lettuce shredded, saving the good outer leaves 12 sprigs of watercress, 2 tomatoes cut into 12 wedges, 1 cucumber cut into 8 fingers, 1 avocado cut into 8 wedges, 4 portions of Feta cheese, 1 green pepper cut into 8 rings, 4 slices of cooked 4 anchovy fillets, 12 Greek olives, 12
Salonika peppers, 4 radishes cut into rosettes, 4 whole green onions.
6.
Place the 3 cups of potato salad in a mound in the centre of the lettuce. Cover with the remaining shredded lettuce, mounding it up high.
7.
Arrange the watercress on top.
8.
Place the tomato wedges around the bottom outer edge of the lettuce. Place the cucumber fingers in-between the tomatoes standing upright on the lettuce. Put avocado around the same way so you have tomato, cucumber, avocado repeating all round.
9.
Place the 4 fetas around the top in a circle. Add the beets on the feta on the beet. Place the anchovy on top of the beet/feta.
10.
Place the olives, peppers, green onions.
11.
Dressing 1/4 cup white vinegar 1/4 cup olive oil 1/4 cup vegetable oil oregano Blend the two oils.
12.
Sprinkle the entire salad with the vinegar then with the blended oils.
13.
Sprinkle oregano all over.
14.
Ready to be served.
Nutrition Facts:
Calories 809
Calories from Fat 537
Amount Per Serving 1
Total Fat 59.8g
Saturated Fat 36.2g
UTS: 81
Prepared for: Mr. Paul Vorbach
Polyunsat. Fat 3.3g
Monounsat. Fat 16.6g
Cholesterol 229mg
Sodium 2797mg
Potassium 1110mg
Total Carbohydrate 34.6g
Dietary Fibre 7.3g
Protein 38.9g
Vitamin A 3331mcg
Vitamin B6 1.6mg
Vitamin B12 4.0mcg
Vitamin C 162mg
Vitamin E 2mcg
Calcium 1210mg
Magnesium 104mg
Iron 3mg
Appendix No. 23 Franchise Information
FRANCHISE ACTIVITY
Red Rooster first opened in Western Australia in 1972. From its humble beginnings it has grown to become Australia's largest BBQ Chicken operator providing their customers with Australia's favourite BBQ chicken, great chicken burgers, subs, wraps and Kids meals and the best chips in the land.
Red Rooster is spreading its franchise network to regional New South Wales, Victoria and South
Australia plus the new markets of Tasmania and New Zealand with an aim to add a further 150 outlets in Australia. This expansion presents fantastic opportunities for single and Multi-Site
Franchise operators who have the energy, commitment and skill to share in the potential rewards on offer.
FINANCIAL DETAILS
CAPITAL REQUIRED: Approximately $500,000-550,000.
ROYALTY: 5% gross sales.
ADVERTISING LEVY: 5% of gross sales.
FRANCHISOR SUPPORT
Includes assistance finding suitable store location, assistance in negotiating contracts and lease arrangements, turnkey approach to store construction, design and fit out, extensive twelve week training program and access to all Operation Manuals, Videos and associated material with ongoing updates, assistance with planning the opening and successful running of your store,
UTS: 82
Prepared for: Mr. Paul Vorbach ongoing support including performance and operational evaluation, management of advertising funds to maximize outcomes and assist you with planning local marketing ideas and activities.
CONTACT
Alan Tulloch, National Franchise Manager
15 Dalmore Drive, Scoresby
Victoria Australia 3179
PHONE: (03) 9237 8779, 0409 333 303 FAX: (03) 9763 0430
EMAIL: ALAN.TULLOCH@RED-ROOSTER.COM.AU
WEBSITE: WWW.RED-ROOSTER.COM.AU
Appendix No. 24: Total Media Spend in Australia by QSRs
AUD$ 000’s
Franchise TV
Spend
Press Magazines Radio Cinema Outdoor Total % of total spend
Pizza Hut
Pizza Haven
Dominos
Eagle Boys Pizza
Subway
KFC
Red Rooster/Chicken
Treat
Nandos
McDonalds
Hungry Jacks/Burger
King
Taco Bell
Other
(ACNielson 2003)
3794 10
389 2
5310 21
1192 6
3938 153 43
15861 26 0
0
0
0
0
7091 5 21
20 0 0
18481 474 187
10014 49 91
730 0 0
66820 746 342
7
1
13
0
340 42
334 14
0
0
0
0
258 0
115 0
2947 481
37 0
58 0
4110 537
6
0
0
3
398
259
78
0
993
134
0 788
1871
Total
16709
91134
3818
392
5344
1201
4913
16493
7453
135
23563
10325
18%
4%
0%
6%
1%
5%
18%
8%
0%
26%
11%
1%
UTS: 83
Prepared for: Mr. Paul Vorbach
Appendix No. 25: Work Breakdown Structure and Gantt Chart
WBS Activity Owner
Success
Criteria
1
1.1.1
1.1.1
Create project Charter
Obtain management commitment
Management
Management
1.2.1
1.2.2
1.2 Defining the Project
Understand objectives and plan defining activities
Develop project scope, deliverables and criteria for success
Project Manager
Project Manager
1.2.3
Charter created
Management commitment obtained.
Conduct pre-study of project plan effectiveness Project Manager
1.2.5
Implementation project plan
1.1 Sponsoring the Project
Assess project plan effectiveness Project Manager
1.3.1
1.3.2
1.3 Project Management Plan
Define and develop project organisational work units
Develop project working units and scheduling tasks.
Project Manager
Project Manager
1.3.3
1.3.4
1.3.5
Conduct of risk assessment
Integrate project organisation unit budgets
Finalise Project Plan
Project Manager
Project Manager
Project Manager
All risk aspect covered
Project budget approved
Project plan approved
2 Development of goods and services criteria
Finish
Date
4-Mar-
04
18-Feb-
04
16-Feb-
04
18-Feb-
04
25-Feb-
04
19-Feb-
04
20-Feb-
04
22-Feb-
04
25-Feb-
04
4-Mar-
04
26-Feb-
04
28-Feb-
04
1-Mar-
04
2-Mar-
04
4-Mar-
04
22-Mar-
04
UTS: 84
Prepared for: Mr. Paul Vorbach
2.1.2
2.1.3
2.1.4
2.1.5
2.1.4
2.1.5
2.1.6
3.1
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
3.2
3.2.1
3.2.2
3.2.3
4.1.1
4.1.2
4.1.3
4.1.4
5.1.1
5.1.2
5.1.3
5.1.4
Set up Menu criteria
Setting quality specifications for meals
Determination of production process
Determination of production equipments
Setting quality specifications for meals
Create Franchise operation system
Setting code of practice and service specification
3 Employees and Reward developments
Employees developments
Recruitments of new employees and
Franchisers
Determine employees job analysis and job design
Conduct Training on current employees and
Franchisers
Conduct Training on new employees and
Franchisers
Practical assessments on all employees and
Franchisers
Develop Reward System
Develop employees performance criteria
Develop employees reward system
Integration with overall organisation units
Marketing
Manager
R&D/ Marketing
R&D/ Marketing
R&D/ Marketing
R&D/ Marketing
R&D/ Marketing
R&D/ Marketing
HR / Franchise
HR
HR / Franchise
HR / Franchise
HR / Franchise
HR. Dept
HR. Dept
HR. Dept
4 Development of Sales Distribution Channels
Activate negotiation with possible property channel
Secure contractual strategic shop units
Secure contractual potential Franchiser
Prepare shop units for business
Development
Dept
Development
Dept
Development
Dept
Development
Dept
5 Development of Systematic Supply Process
Develop contractual agreement with suppliers
Purchase/ supply
Dept
Develop systematic supply and logistic line
Create proper restaurant order process
Assess and validate supply line effectiveness
Purchase/ supply
Dept
Purchase/ supply
Dept
Purchase/ supply
Dept
Job analysis and design finalise
All staff meet required criteria
Agreement secured
Agreement secured
Meeting required date
Agreement secured
Having a systematic process in line
Includes all relevant procedure
28-May-
04
30-Mar-
04
31-Mar-
04
21-Apr-
04
30-Apr-
04
28-May-
04
14-May-
04
20-Mar-
04
6-Mar-
04
9-Mar-
04
13-Mar-
04
14-Mar-
04
18-Mar-
04
20-Mar-
04
22-Mar-
04
28-May-
04
12-Apr-
04
14-May-
04
14-May-
04
31-Mar-
04
23-Apr-
04
23-Apr-
04
14-May-
04
17-May-
04
31-Mar-
04
24-Mar-
04
23-Apr-
04
17-May-
04
UTS: 85
Prepared for: Mr. Paul Vorbach
6.1.1
6.1.2
6.1.3
6.1.4
7.1
7.1.1
7.1.2
7.1.3
7.1.4
7.2
7.2.1
7.2.2
7.2.3
3.8.1
3.8.4
9.1
9.1.1
9.1.2
9.2
9.2.1
6 Development of Price Strategy
Assess profitable margin
Work out cost of marketing campaign
Determination of Pay back years and ROI
Determination of price
7 Development of Promotion Campaign
Webpage Restructure
Web page updates
Develop forum, memberships and feedback channels
Design initiation
Assess and validation
Advertising campaign
Negotiation advertising concepts with media
Secure and implement advertising campaign
Design of memberships and Free meal card
8 Product Launch
Commence sales
Commence market performance assessment
9 Engagement Close
Confirm Engagement (PSI)
Perform project completion process
Reconcile project financials
Closing the Project
Release staff
Finance Dept
Finance Dept
Finance Dept
Finance Dept
MIS Dept
MIS Dept
MIS Dept
MIS Dept
MIS Dept
Marketing
Manager
Marketing
Manager
Marketing
Manager
Project Manager
Project Manager
Project Manager
Project Manager
Project Manager
Budget approved
Work out required return
Design approved
All relevant work is carried out
All advertising work in place
22-May-
04
31-Mar-
04
14-Mar-
04
8-May-
04
22-May-
04
31-May-
04
24-May-
04
4-Apr-
04
30-Apr-
04
15-May-
04
24-May-
04
To confirm
To confirm
To confirm
To confirm
To confirm
To confirm
31-May-
04
30-Mar-
04
31-May-
04
17-Mar-
04
31-May-
04
31-May-
04
31-May-
04
To confirm
9.2.2 Manage end of project
UTS: 86
Project Manager
Prepared for: Mr. Paul Vorbach
UTS: 87
