National Chiao Tung University Department of Management Science De Term: Spring Year: 2009 Student Name (Chinese Characters): Final Examination Student ID Number: Course Abbreviation and Number DMS4577 Course Title 行銷學, Principles of Marketing Instructor 張力元老師, Professor Trappey Homework Theme 6 Due Date Number of Homework Pages Homework Type Additional Materials Allowed Marketing Project June 25, 2009 open draft typed, class hand-in, e3 log Textbook, Magazines, Survey Marking Scheme: Additional Writing: 50% Application of Concepts: 50% Grade: Introduction While in Los Angeles, Mr. Sakurada frequented a local hamburger chain called Tommy’s. Inspired by the “cook to order” concept, he decided to introduce it back to Japan. Mr. Sakura set up the first MOS Burger shop in Tokyo in 1972. Rice Burger was created in 1987. 35 years later, MOS Burger offers a wide variety of unique and original burgers, and it now has presence in countries like Taiwan, Hong Kong, Singapore and Thailand. In MOS Burger’s name, “M” stands for mountain--dignified and noble; “O” stands for ocean--- wide and vast; “S” stands for sun--vibrant and life-giving. Source: www.mos.com.tw The hamburger’s price of MOS Burger’s basic meal is between NT$65 and NT$75. If you want to eat more, you can choose to have a combo. The combo includes a hamburger, one side treat and a drink. The sum is the hamburger’s price plus side food’s price. The average expense per person who orders a combo is between NT$120 to NT$150 (students of NCTU have a 10 % discount). The food price is shown in Table 01. <Table01> Mos’ combo price Set A Price: Hamburger price pluses $55 Contents: One hamburger, large French fries and a drink. Set B Price: Hamburger price pluses $60 Contents: One hamburger, salad and a drink Set C Price: Hamburger price pluses $75 Contents: One hamburger, a fried chicken and a drink Set D Price: Hamburger price pluses $75 Contents: One hamburger, five chicken nuggets and a drink Source: www.mos.com.tw As observing, we discover that MOS seldom do promotions to sale their meals. The high quality of their food approved by consumers is the guarantee of their stable sales. However, recently we notice that MOS launches a “Double Sharing Meal” as their promotion. The introduction of the meal is at below. Mos’ Double Sharing Meal Mos offers special discount for their “sharing meal with double servings”. You can share a rich meal at a relatively low-price with your friend or lover. The meal includes two burgers. You can pick one pepper-flavored crispy chicken leg burger (or one south-eastern style chicken leg burger) and one kakiage Rice Burger. It pairs with side treats including chicken nuggets, French fries and fried onion rings. Besides, the meal accompanies with two cups of drink priced at $30 NT dollars. That is, consumers can choose any two drinks from large coke, large sprite, matcha milk, Mos milk, hot black tea to cocoa. The meal totally costs 335 NT dollars if you order them separately. However, with the super discount offered by Mos, it is now priced 299 NT dollars. That is, it is 10%off of the meal. <Table02> Mos’ Double Sharing Meal and each side treat price The Poster Contents Each Price if buying separately Two Hamburger $145 Two Drinks $60 One Fried nuggets $55 Fried onion rings $40 French Fries $35 Source: www.mos.com.tw Consequently, a question of whether or not this promotion MOS launches increases their sale comes to our mind. By comparing the two sets of meal promotion, we study the consumers’ responses to the different marketing stimuli (4P). We still apply other marketing concepts including segmentation, targeting, and consumer behavior according to their characteristics such as psychological factors and personal factors. With the study result, we may help Mos Burger to find the better promotion method to increase its sale. Literature Review We got inspiration from《Why combo is always a good idea for fast food store?》 composed by Mawatari Akira. The book focuses on the promotion of combo in the fast food stores. The following is the text quoted from the book. 速食店為何老推套餐?答案是「因為以套餐方式銷售,可以降低變動成本」。為 什麼呢?把飲料、薯條和漢堡相比,前者的成本相對較低。因此,若要達到相同 金額的營收,只要控管薯條及飲料支出的變動成本,比漢堡來得更低,邊際利益 自然增加許多,便可輕鬆的達成目標。食 The following is the translation of the paragraph. Hamburger is the main product of fast food restaurant, but its cost is much higher than the fries and drinks. It’s difficult to make profit by primarily selling hamburgers. Therefore, the fast food restaurant brings in money by increasing the price of fries and drinks. Selling combo can stimulate sale numbers and promote the affiliated products because combo effectively lowers the variable cost. That’s the reason why combo is always a good idea for fast food store. We want to testify whether MOS Burger increases sales from promoting double-sharing meal. Hypothesis According to the literature review, we derived three hypothesizes about the two-people sharing meal. First, although the total price of two-people sharing meal is higher than one-person meal, the former offers various kinds of food including two burgers, two orders of fries, chicken nuggets, and two cups of drink. However, the average price of each side food is much lower than ordering them separately. We suppose that customers will choose the combo set for two people in spite of the higher price. Second, the two-people sharing meal will better attract specific group of people; for example, couples or a group of friends having meals together. With the segmentation feature, the new promotion will definitely increase total sales. Third, due to the higher price, the meal set will attract people with higher income level. As a result, total sales will increase as well. H1: Customers will choose the combo set for two people due to its food variety in spite of the higher price. H2: Customers will choose the combo set for two people because they can eat more food with less money. H3: Customers will choose the combo set for two people because the advertisement is attractive. H4: The double sharing meal will better attract specific group of people who eat with friends. H5: People who have higher allowance for food will order the double-sharing meal. Methodology First, we focus the correspondents on the campus of NCTU. Our target customer will be the students, the faculty of school, and some visitors in the campus. Second, we apply the method both in person questionnaires and online surveys to interview people’s opinion on the Moss Burger’s promotion projects. We give out the questionnaires in front of that store during lunch time and we collect about 30 samples from the customers. The main questions will be focused on the three different type meals with different discounts. (see the questionnaire in the appendix) . In person questionnaires are designed in both close and open questions. Besides, there are online questionnaires is be post on the NCTU BBS board to collect opinions. After collecting all the data, we analyze the result to testify our hypothesis. Result In our fifty surveys we did on NCTU students, the result shows that the populations of average spending on diet per month is 7 people for NT $0~3000, 32 for NT $3000~6000, 10 for NT $6000~9000, and 1 for more than NT $9000. The habit of diet is that 34 people often have meals alone, 8 people usually eat with one friend, and 8 people usually have meal with more than 2 friends. In the experience of ordering the new “double-sharing meal”, there are 15 people answering “no”, while 35 for “yes”. For those who are unwilling to order this combo, 11 people choose the reason of “the meal is not worthy of the price”, 7 for “the contents are too much to eat”, 4 for “dislike specific food in that combo”, 16 for “there is no recommendation from friends “, 2 for “never heard of this combo”, and 2 people claim that the food is not delicious, and he/she does not know about this new promotion activity as other reasons. The types of companion interviewees may dine with if order the double-sharing meal, 0 person choose “family”, 23 for “friends”, 18 for “boy/girl friend”, 2 for “co-worker”, 7 choose “none of above”. Based on the information we offer, 12 people are satisfied with this promotion project, while 31 are not, and 7 does not show preference. At last, in the advices interviewees provide for the double-sharing meal, 10 people suggest that the price could be lower, 26 votes for the increase of the quantity of food, 11 votes for free choice of side treats, 2 votes for wanting coupons or presents, and 1 vote for other suggestion as to increase the publicity of the advertisement of the promotion. To see the detailed survey result, please look at Table03 below. <Table03> The result of the survey. 1. Gender 2. 3. female 27 23 Personal status : Average spending undergraduate graduate in-service program students 37 9 2 Who Do you often NT NT $3000~6000 $6000~9000 NT $0~3000 on diet per month 4. male 7 32 alone 1 friend 34 8 more than 3 times a week once or twice a week 8 17 have meals with? 5. The frequency of visiting Moss Burger in NCTU 6. Have you ever ordered the new “Double-sharing 2 more than NT $9000 10 1 more than 2 friends 8 once a month two months or more for once 9 16 yes(go to question7) no ( go to question 8) 15 35 meal” 7. Why are you willing to order this combo? others The meal is worthy of the price There are various kinds of food The ad is appealing Friends’ recommendation others 7 7 8 3 0 8. Why are you unwilling to order this combo? 9. You may order the double-sharing meal if you dine with? The meal is not worthy of the price The contents are too much to eat dislike specific food in that combo 11 7 4 16 family friends boy/girl friend co-worker none of above 0 23 18 2 7 10. Are you satisfied with this promotion project? yes 11. Do you have any advice toward the double-sharing meal? The price should be lower never heard of this combo 2 no 12 10 no recommend from friends increased 26 note 7 Customers could have the choice of side treats Coupons or presents others 11 2 1 NOTE: 8. Others: The food is not delicious, and I don’t know about this new promotion activity 11. The work on advertisement is not good enough Conclusion See no opinion 31 The food quantity should be others s With the result of the questionnaire, we get the conclusion. Food variety and attractive advertisements are the main factors which motivate people to order the double-sharing meal. Moreover, in NCTU, most people have meal alone; therefore, people seldom order the meal. However, if they go to MOS with friends, their motivation to order the meal will enhance. People who spend more money on their daily meals will not order the double-sharing meal because the food quantity is too little, and they cannot choose the side treats they actually want. Most of the people surveyed are not satisfied with the promotion MOS offers for the double-sharing meal. The promotion cannot effectively increase the total sales of MOS Burger, and it is not a good promotion in NCTU. The result reveals that if MOS Burger lowers the price of the double-sharing meal or increase the quantity of food, there will be more people willing to order the combo. Reference Amstrong,G. and Kotler,p. (2009) , Marketing: an introduction, 9ed, Taiwan, Pearson, Prentice Hall, Pages 83,164 Mawatari Akira (2006) , Why combo is always a good idea for fast food store?,, China Times, Page 74.75 Anonymous (2004), About Mos, Mos’s Website, 2009/6/17 From http://www.mos.com.tw/about1.htm Appendix 01: The research questionnaire (Chinese Edition) 摩斯促銷方案調查問卷 此問卷欲調查學生及教職員光顧交大摩斯的頻率及摩斯新促銷方案顧客的接受 程度(請您放心作答,作答內容將予以保密) 1. 您的性別: □男 □女 2. 你的身分: □大學部學生 □碩博士、在職專班學生 □ 教職員 □ 校外人士 3. 平均一個月的伙食費: □$0~3000 □$3000~6000 □$6000~9000 □9000 以上 4. 請問您平時的飲食習慣: □單獨用餐 □雙人用餐 □ 三人以上一起用餐 5. 請問您光顧交大摩斯的頻率: □一個禮拜三次以上 □一個禮拜 0~2 次 □一 個月一次 □兩個月或兩個月以上一次 6. 您是否點過摩斯漢堡推出的”雙人分享套餐”(海洋珍珠堡、南洋雞腿堡、一 份大薯、一份洋蔥圈、一份炸雞塊、兩杯飲料) □是(請回答第七題) □否(請回答第八題) 7. 您點摩斯漢堡的”雙人分享套餐”的原因是: □價錢很划算 □餐點多樣性 □廣告吸引人 □朋友推薦 □其他________________ 8. 您不點摩斯漢堡的”雙人分享套餐”的原因是: □價錢不划算 □東西太多吃不 完 □不喜歡某特定餐點 □朋友不推薦 □沒注意過此套餐 □其他________ 9. 跟哪些人一起到摩斯漢堡會想點”雙人分享套餐”: □家人 □朋友 □情人 □同事 □師生 □都不想 10. 您對摩斯漢堡的”雙人分享餐”促銷活動滿不滿意: □滿意 □不滿意 11. 您對摩斯漢堡的”雙人分享套餐”有何建議: □價格可再低一些 □分量多 一些 □可自行搭配副餐 □有集點、贈品 □其他___________ 問卷製作者 行銷學修課五人研究小組 指導老師: Professor Trappey Appendix02: The research questionnaire(English Edition) The questionnaire of MOS Burger Promotion Project This questionnaire is only for academic use, be free to answer these questions which we promise to keep them confidential. 1. Gender □male □ female 2. Personal status : □ undergraduate □ graduate □ in-service program students □ others 3. Average spending on diet per month □NT $0~3000 □NT $3000~6000 □NT $6000~9000 □ more than NT 9000 4. You often have meals with? □ alone □ 1 friend □ more than 2 friends 5. The frequency of visiting Moss Burger in NCTU: □ more than 3 times a week □ once or twice a week □ once a month □ two months or more for once 6. Have you ever ordered the new “Double-sharing meal” □yes(go to question7) □ no ( go to question 8) 7. 8. Why do you want to order this combo? □ the meal is worthy of the price □ the kinds of food is various □ the ads is appealing □ friends recommendation □ others Why do you not want to order this combo? □the meal is not worthy of the price □ the contents is too much to consume □ dislike specific food in that combo□ there is no recommendation from friends □ never heard of this combo □others 9. You may order the double-sharing meal if you dine with? □family □ friends □boy/girl friend □ co-worker □ none of above 10. Are you satisfied with this promotion project? □yes □no □ no opinion 11. Do you have any advice toward the double-sharing meal? □ the price could be lower □ the quantity of food could be increased □ customers could have the choice of side treats □ coupons or presents □ others______