Marketing Strategies of Hungry Jack's: A Case Study
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This report discusses the marketing strategies of Hungry Jack's, a fast food franchise of Burger King in Australia. It covers the company background, target market, market strategy, and recommendations for improvement.
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Marketing Table of Contents Introduction.................................................................................................................................................3 Company background and product description............................................................................................3 Target market..............................................................................................................................................4 Market strategy............................................................................................................................................5 Conclusion and recommendation.................................................................................................................7 References...................................................................................................................................................8 2
Marketing Introduction The main purpose of this report is to discuss about the marketing strategies of Hungry Jack’s. Hungry Jack’s Company has been taken in the task which is a private company situated in Australia. The firm specializes in fast food and is the franchise of the Burger King. One of the significant products that chosen in the task is burger. Hungry Jack’s provides delicious and highest quality of burger to the guests across the world. In order to expand and explore the business, the firm uses ample of marketing strategies in the competitive market. A brief information about target market has been discussed in the task. The paper explains that how company divides its market into the group of people and further how the firm positions its products globally. The marketing mix strategy also briefly is explained in the task. At the end, some recommendations have been given to improve and enhance strong and dynamic position in the marketplace. More detail of the task has been detailed below. Company background and product description Hungry Jack’s pty Ltd is an Australian fast food franchise of burger king company. The company was incorporated in 1971with its headquartered is situated in Sydney, New South Wales Australia. The company has more than 420 restaurants and employs approx 19,000 employees who are serving more than 1.7M Aussies each and every week (Hungryjacks, 2018).It further serves more than 125M Australian beef patties every year. It is noted that Hungry Jack’s is called as the master Australian franchise of the burger king company (Hungryjacks, 2018). The main mission of the company is to ensure great customer returns by rendering excellent food through the highest standards of service, quality and cleanliness. The core values of Hungry Jack’s include safety, guest matter, integrity and consistency (Hungryjackshakeandwin, 2018). The company offers various products such as burger, chips, salads, onion rings, desserts and cold beverages. Burger is one of the significant products which sold by the company across the world. The company provides burgers in both the options such as meat and vegetarian. The burger of Hungry Jack’s is delicious and tasty. The flame grilled burgers have an effective and unique smoky and BBQ flavor. In today’s era, the company starts to sell patties that are 100% hormone free Aussie beef. 3
Marketing Target market Target market determines the growth and success of the firm. As the same way, Hungry Jack’s also identifies and analyzes the choices, needs and requirements of the Australians attain desired targets and objectives (Solomon, Russell-Bennett and Previte, 2012). The segmentation, targeting and positioning strategy for Hungry Jack’s are detailed below. Segmentation:It is a process of dividing the entire market into different units to analyze and evaluate the choices of the guests in the global market. Market entails buyers and buyers differ in various attributes. The market can be divided by geographic factors, behavioral factors, demographic factors and psychographic factors (Virgillito, 2018). All of these variables could be used to divide a market. Seller can create a separate product or marketing program for potential and effective customers. Hungry Jack’s has divided its market into demographic factors, psychographic factors, behavioral factors and geographic factors. As geographic elements, Hungry Jack’s are categorizing the customers by region, they situated in Australia since 1971 (Hungryjacks, 2018). Hungry Jack’s has more than 420 restaurants in the country. In demographic factors, the firm is dividing the guests by kids, young male and family. The company uses logo and slogan to attract maximum number of customers in the competitive market. Apart from this, it also analyzes the choices, interests and eating habits of guests to stay in the rivalries market. In order to take the children as effective and potential customers, Hungry Jack’s has to include the parents and family which pay for the kids meal at the similar time. It uses ample of promotional and advertisements strategies to defeat the competitors in the market. As behavioral factors, the company is dividing the guests on the basis of benefits, speed and economy, regular user and occasion. In psychographic factors, Hungry Jack’s is dividing the market on the basis of life style, personality, values and attitudes of people (Hassan and Craft, 2012). Targeting:The market segmentation portrays ample of market segment opportunities managing and facing the company. Hungry Jack’s has to analyze and identify the various segments and decide how many and what kind of customers to targets. Marketing mix can be used to identify and analyze the potential target market segment (Arredondo et al, 2009). Hungry Jack’s uses concentrated targeting strategy; it means the company concentrates on serving many requirements, needs and wants of a specific customer group. It has been analyzed from the 4
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Marketing various studies that the firm is targeting the demographic group with young adult and kids market to compete with rivalries internationally (Miller and Harkins, 2010). Hungry Jack’s also targeting the middle and urban class families to boost profitability and earn more revenue. The most significant thing is the firm share the fun news with their customers through various social channels and advertisement. It indicates that Hungry Jack’s is just target on segment within the total market of the country (Montgomery and Chester, 2009). Positioning:One of the significant strategies to attract maximum target audience is positioning. Positioning is a process of communication and collaboration the brand to the target customers in such a way that could easily identify and analyze where it suitable with rivalries products. Hungry Jack’s is targeting young adults’ especially young males. They position their market as serving tasty and high quality of products like burger at reasonable prices (Wheelen and Hunger, 2011). Compare with their rivalries such as burger king and McDonalds are targeting families and kids, thus they have different and unique target audience. Hungry Jack’s also provides onion rings and some other beverages to the customers. In this way, the company has been able to provide variety of choices for their potential customers (Solomon et al, 2014). Market strategy Marketing strategy is a long term and effective approach to planning with dynamic and fundamental goals and objectives attaining a sustainable competitive benefit. Marketing strategy renders a company an edge over its rivalries (Ataman, Van Heerde and Mela, 2010). This strategy further helps in developing products and services with excellent profit making potential. It can help Hungry Jack’s to make optimum utilization of resources so as to maximize the sale volume in the competitive market. It is stated that Hungry Jack’s uses marketing mix strategy to stand out over the competitors. The marketing mix strategy for Hungry Jack’s has been discussed below. Product:It is seen that Hungry Jack’s is a fast food restaurant chain well known for its burgers and other beverages and snacks. The main products of the company include burger, snacks, onion rings, salads, chicken and chips apart from this, the firm also offers hot and cold beverages to its customers. Hungry Jack’s provides complete breakfast menu to its customers in the morning. The sale mode mainly focuses on the economies of scale where in various large scale 5
Marketing activities and operations lines helps in maximizing revenue and outcomes. The company operates and manages its outlets on the 1950s music themes (Mbaskool, 2018). Aside this, the music which played in the restaurant is a significant and vital part of the décor that renders an old style ambience. Tables and seats are unique in the restaurants and these seats also laid out in a model 50s diner style. Hungry Jack’s needs to focus on the product strategy to increase and enhance the sale of burger in the country (Mbaskool, 2018). Price:It is stated that Hungry Jack’s use innovative and unique pricing strategy to uplift profitability. The pricing of the company’s product like burger is done in a hassle free manner. On an individual basis, the company competes with major rivalries such as Wendy’s and McDonald’s. The company sets the prices of burgers in such a way that it reduces prices and costs. Market based pricing approach is followed by the company along with this, it also uses competitive pricing strategy to compete over the rivalries. The bundle pricing strategy also provides support the firm to maximize revenue and returns in the international market. Currently, Hungry Jack’s renders two types of meal options like kids meal and the value meal. The meals and burger products are designed in such a way that they attract and retain maximum customers and offer a reasonable incentive in purchasing more and more products as an effective part of the bundle than the individual product alone. Place:Being one of the largest and growing franchises of Burger King around the world, Hungry Jack’s has various stores in more than 390 locations in Australia. Different and unique mode of provision of the burgers and some other products are followed by the company to the customers. Ample of orders are taken and served quickly at the stores. Hungry Jack’s also provides websites and mobile application services to increase the sale of the burger in Australia. Freebies and vouchers are rendered on online delivery burger and other snacks to encourage and promote sales in the competitive market (Mbaskool, 2018). Promotion:It is analyzed that Hungry Jack’s relies on promotional and advertisement strategies to encourage and promote itself amongst the ample of customers. Cross selling is done by the company wherein the firm provides multiple meal options to target audience. “Shake and Win” campaign is conducted by Hungry Jack’s whereas free food items are given to the consumers within 1km of any company’s outlet. The firm has special popularity in the Australia therefore, it could able to retain wide range of youngsters in the country. The organization is further 6
Marketing conscious or aware about sustainability and has a excellent association with effective causes (Slater, Hult and Olson, 2010). Hungry Jack’s has two partnerships currently: one with the Taronga Zoo and second with not for profit organization (Kapferer, 2012). People:Hungry Jack’s pays ample of significance to their customers. The employees of the firm support the customers while serving the burger and other products to the customers across the world. Effective and sustainable HRM is maintained by Hungry Jack’s to hire and retain the employees. Necessary training and development sessions and programs are also held by the firm to run business functions and activities smoothly (Avraham and Ketter, 2012). Physical evidence:The Company itself supplies burger in the Australian market. Mainly, Hungry Jack’s focuses on the healthy and delicious food. One of the effective and well known campaigns “Nothing naughty about it” is done by the firm to encourage female customers around the country. By using this campaign, the firm is able to attract health conscious customers across Australia (Baker, 2014). Process:It is seen that dynamic process to produce health food include burger and other snacks is used by Hungry Jack’s in Australia. Along with this, meals are designed in such a way that it promotes and improves cross selling of products across the country (Mbaskool, 2018). Conclusion and recommendation On the above mentioned event, it concludes that Hungry Jack’s is one of the leading fast food companies in Australia who provides fast food products such as burger, chicken, chips, snacks, desserts and beverages to the customers. The above study indicates that how company uses innovative and effective strategies to compete with competitors in the market. The paper outlines that how Hungry Jacks serves its customers by providing ample of fast food products. In today’s era, the firm is expanding and flourishing the business activities around the world. Along with this, the report also discusses marketing mix strategy that helps in gaining rivalries benefits across the globe. It is recommended that Hungry jack’s should focus on the advertisement and promotional strategies to build a dynamic image in the minds of the guests in Australia. It further must focus on the social media channels such as TV, newspaper and internet to increase awareness among the customers. Business level strategy is one of the significant tools to hit the rivalries thus; Hungry Jack’s should focus on the business level strategies and corporate level 7
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Marketing strategies in the competitive market. Pestle analysis and porter five forces analysis shall be done to identify and analyze the risks, threats and challenges of the market. In this way, Hungry Jack’s can develop a dynamic brand image among the customers. 8
Marketing References Arredondo, E., Castaneda, D., Elder, J.P., Slymen, D. and Dozier, D., 2009. Brand name logo recognition of fast food and healthy food among children.Journal of Community Health,34(1), pp.73-78. Ataman, M.B., Van Heerde, H.J. and Mela, C.F., 2010. The long-term effect of marketing strategy on brand sales.Journal of Marketing Research,47(5), pp.866-882. Avraham, E. and Ketter, E., 2012.Media strategies for marketing places in crisis. Routledge. Baker,M.J.,2014.Marketingstrategyandmanagement.MacmillanInternationalHigher Education. Hassan, S.S. and Craft, S., 2012. Examining world market segmentation and brand positioning strategies.Journal of Consumer marketing,29(5), pp.344-356. Hungryjacks.2018. About Hungry Jack’s[Online]. Available from https://www.hungryjacks.com.au/about-hj-s[Accessed as on 23rd September 2018]. Hungryjackshakeandwin.2018. About us[Online]. Available from http://www.hungryjacksshakeandwin.com/about-us[Accessed as on 23rd September 2018]. Kapferer, J.N., 2012.The new strategic brand management: Advanced insights and strategic thinking. Kogan page publishers. Mbaskool.2018.HungryJack’sMarketingmixstrategy[Online].Availablefrom https://www.mbaskool.com/marketing-mix/services/17456-hungry-jacks.html[Accessedason 23rd September 2018]. Miller, D. and Harkins, C., 2010. Corporate strategy, corporate capture: food and alcohol industry lobbying and public health.Critical social policy,30(4), pp.564-589. Montgomery, K.C. and Chester, J., 2009. Interactive food and beverage marketing: targeting adolescents in the digital age.Journal of Adolescent Health,45(3), pp.S18-S29. 9
Marketing Slater, S.F., Hult, G.T.M. and Olson, E.M., 2010. Factors influencing the relative importance of marketing strategy creativity and marketing strategy implementation effectiveness.Industrial Marketing Management,39(4), pp.551-559. Solomon, M., Russell-Bennett, R. and Previte, J., 2012.Consumer behaviour. Pearson Higher Education AU. Solomon, M.R., Dahl, D.W., White, K., Zaichkowsky, J.L. and Polegato, R., 2014.Consumer behavior: Buying, having, and being(Vol. 10). London: Pearson. Virgillito.D.2018. What is market segmentation? Learn how to segment your customers [Online]. Available fromhttps://www.oberlo.in/blog/market-segmentation[Accessed as on 23rd September 2018]. Wheelen, T.L. and Hunger, J.D., 2011.Concepts in strategic management and business policy. Pearson Education India. 10