Analysis of Macro and Micro Environment Marketing Strategies of Red Rooster

This research plan analyzes the external and internal environment strategies of Red Rooster, a fast food chain in Australia, and provides recommendations for improvement.

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

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Table of Contents
Introduction................................................................................................................................2
Company Background................................................................................................................2
New Product Development........................................................................................................3
Problems Statement....................................................................................................................4
External market environment analysis.......................................................................................4
Cultural Factors......................................................................................................................4
Economic Factors...................................................................................................................5
Natural Factors.......................................................................................................................6
Technological forces..............................................................................................................6
Political factors.......................................................................................................................7
Other impacting factors..........................................................................................................8
Internal market environment analysis........................................................................................9
SWOT....................................................................................................................................9
Internal Factors...................................................................................................................9
External Factors...............................................................................................................10
Recommendation......................................................................................................................11
Implementation plan.................................................................................................................11

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Topic -Analysis of macro and micro environment marketing strategies of Red Rooster-
A fast food chain company Australia
Introduction
This research plan is based on the analysis of existing external and internal environment
strategies of a fast food chain organization called Red Rooster located in Australia. The
purpose of the plan is to analyse the issues appeared in the applied strategies and develop a
suitable solution to address the issue properly alongside considering organization’s
productivity. This research report gives an overview of the current situation marketing of the
company and relate the issues associated with it. On the basis of the identified issues, analysis
of strategies have been performed, which further helps to develop the plan accordingly.
Company Background
Red Rooster started its journey in 1972 pioneering the roast chicken takeaway and the
tradition persistently took new forms and continues to take its much loved roast chicken to
even more generations of Aussies as a leader in a roast chicken delivery. Wellard-Cole et al.
(2018) mentioned that in 2009, Red Rooster started a marketing campaign widely known as
“They don’t get it in America” featuring comedian Tom Gleeson in United State.
Consequently, this campaign earned a great public attention and further reflected on its
revenue reaching $230 at the end of 2009. However, undecidedly, the fast food giants KFC
and Domino’s were not supposed to lag behind as their burgeoning list of chicken items
never cease to impress Aussies. Sticking to roast chicken items increases the risks of
saturation, invention is the only way to beat the rivals in the market.
Nonetheless, Red Rooster chose to go with the option of expansion in the domestic
markets with the existing chicken items. Red Rooster developed 360 stores across Australia
even with the unprecedented idea of targeting Airports in Australia. Presently, Red Rooster is

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turning over $480 million in revenue and it is on its way to hit $500 million in the coming
financial year. However, the lack of focus on product and service invent gives ways to rivals
to dominate the market. KFC and Domino’s have influenced customers’ tastes and
preferences leveraging technology advances; thereby, the loophole in the market seems to be
blur
New Product Development
The new product that is going to be developed for the Australian market are Crispy Butter
Fried Chicken Livers with cheesy and spicy chicken Portuguese rolls. There are several
opportunities of customising the dish. The customers on personal taste might add jalapenos,
roasted shrimp shreds or grilled onion and caramel salad also in order to suit their appetite.
One of the significant benefits of this food is that the dish is highly rich in protein and
because of that it is suitable as a square meal or as snacks also. Factors like the options of
customising or the opportunity to prepare the food in a short while ensures its
competitiveness with the other established fast food brands in Australia like KFC, Burger
King or Hungry Jack’s. Most of the signature fast food products of then these brands do not
allow the customer. Red Rooster is going to make the price of the dish competitive so that the
product generates added value for the customers (Dunford et al. 2017). Again, since most of
the restaurants are having signature dishes with a chicken base only, Red Rooster is going to
have an added advantage as they are using chicken liver as the basic item for the food
product. This will give the customers an innovative taste. In future, the company is planning
to reduce their prices by 10 to 12% and as an outcome the prices of the signature dishes of
Red Rooster would be the lowest among the food products of all the major fast food chains of
the country. With this projected target the company is going to introduce their product in the
market. This will help the company to make the product favourable among the selected
audience.

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Problems Statement
The major problem that organization faces today is, the expansion and appearance in the
market is gradually slowing down its usual pace, which is partially because of inappropriate
use of technology and partially because of shrinking list of product items. For example, when
the fast food giants like KFC has fully adopted the digital marketing trends with its latest
adoption of services like online delivery, Red Rooster is showing its traditional comfort of
following the conventional offline marketing. This has affected both its sales and the growth
of expansion in the domestic market.
External market environment analysis
Cultural Factors
The first cultural factor that is going to impact the market of Crispy Butter Fried
Chicken Livers with cheesy and spicy chicken Portuguese rolls by Red Rooster is the
demographic market segmentation. The factors like density of population that might favour
fast foods typically, location of the outlets of the restaurants, gender, race, occupancy
proportion as well as other related statistics are responsible for determining the sales parity of
the Crispy Butter Fried Chicken Livers with cheesy and spicy chicken Portuguese rolls in the
Australian market. These factors, as Powell, Ryan and Lamb (2017)), states are important to
be studied as they give the people immense idea about the people who make up the market
that the company is basically trying to acquire. The first aspect regarding demographics that
is going to affect the market of Red Rooster is the alternative age structure of the local target
population. The first important factor is that recently, the number of people working in the
organised sector is increasing and as an outcome, the company is able to reap a lot of
advantages. Firstly, there are large number of food joints in the corporate offices where Red

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Rooster can open their stalls. Other advantage is that the average age of the Australian
population is reducing with every year. As such more people are having higher purchasing
parity. Another important aspect of this changing nature of the average age of the population
in Australia is that in the fast food industry, the company needs to market their products to a
larger target market that is constantly becoming larger. On one hand, the company will have
to incur a large cost for promotion of their products. On the contrary, they will be on the
gaining side, when there would an acute market segmentation as an outcome of the expansion
of the base of the ‘target customers. As an outcome, the company will naturally gain a certain
percentage of the customers. Again, the kind of advertising campaign that the company
conducts over the traditional media helps them positively in terms of attracting the base of
target customers. Their advertising campaigns are generally meant to address the young
people and specifically the target population that is emphasised at the college going students.
The on road campaign of the company for giving sample of this new item to the college
students against AUD $2 only, had been a great hit and the company had been able to reap
the benefit of the strategy against the amplitude of word of mouth publicity that they gained.
Another essential demographic aspect that the company should consider is the shift of
a majority of population in to the bigger cities. As an outcome of this shift, the fast food chain
would need to develop new outlets that would be necessary in order to keep up with the
growing market demand of the country.
Economic Factors
The market factors include purchasing power and people. The availability of the
purchasing power depends on the level of marketing income, spending patterns and the
buying power of the customers. The consumer spending patterns of the people are changing
gradually. They are relying more on the chamge in customer behaviours. There are projected

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economic depressions apprehended for the Australian market as an outcome of that, the
company might expect that the consumers will stop spending more on the comparative higher
priced products of leading fast food chains of the company.
Natural Factors
The natural environment for the business is mainly needed to be assessed by the
company in order to analyse the ways in which they will be able to gain the advantage of the
global environment. The shortage of raw materials at a comprehensive cost is one of the
factors that would be able to influence the business. Since the level of market competition is
high, the suppliers’ strength in the industry would not be able to meet the demand that is
growing with time. The increased level of pollution is also another factor. As this is a dish
that is grilled over oven, the carbon output would be higher. The anti-pollution act might be
imposed over the company as an impact. As this fast food chain is in to the emerging foods
sector, the company needs to abide by the governmental interventions.
Technological forces
Technological change as well as innovation have been the basis of Change management in
the first food sector in Australia. There are several factors that are highly driving the industry
of fast food in the country and the first among them is the fast pace of change. The first factor
regarding Technologies is the information regarding competitors that is present with any
other big fast food chain of the country. The online delivery applications as well as the food
rating applications that have developed recently are allowing not only the customers high end
information about the existing top notch fast food chains in the country but also providing the
same information to the existing market players. Search the fast food chains can remain
aware of the competition that they are about to face since they are able to give information
regarding the innovative food products that are developed by the other restaurants change as

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well as the pricing strategy that they are following. The digital feedback collection process is
another important technological innovations that is helping red roosters in order to gain
perception about the customers review about the latest develop product. Every customer that
visits the outlets of the fast food chain raid roasters, gets a digital message in their phone and
if they give reply to the message by typing a feedback about how they liked the food product
that is described above or some other few signature dishes, they might get digital cash which
they can use while they visit the restaurant for the next time. This can turn out to be a
customer retention strategy for the company as well as they might be able to gain market
information regarding the popularity of their product among the customers.
Political factors
Among the important political factors separate food laws as well as the reinforcement is an
important aspect to consider. At present there are strict laws against the usage of plastic bags
in the food sector and Shoppers in fact using a lot of paper bags nowadays. it is also visible
that competitive organisations like KFC or McDonalds or Nando’s are also providing plastic
bags to the company that are recyclable or either there not providing packaging to the
customers. These are indeed strategies that suffice the government regulations. On the
contrary, he had mention might be made of the innovative colourful paper bags that are
provided to the company to its customers for carrying the food. The government is also
providing a great extent of concentration on hygiene factors and the staffing as well as
customer service related factors. In this regard it firstly requires mention that the workplace
hygiene of the outlets of red roosters is dignified and the dish that is mentioned here are
prepared absolutely in the life kitchens so that the customers can have no complain about any
content that is put into manufacturing the dish. Secondly, stuffing is an important factor
where buy it can be mentioned that almost the interest of line of the company is above 21
years. They receive significant and competitive wages. Lastly some basic values are

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associated with the customer preferences and behaviours. Red roosters has not been so far
able to establish the brand name in a way like other competitors like KFC or Burger King or
Nando’s or other inherent food chains of Australia has been able to do. Nevertheless the latest
innovations in food design and innovative product development like the one that is described
here might help them to gain Rapid entry into the target market. There are large number of
competitive factors like the lesser amount of time needed to manufacture this dish, more
diverse seasoning and flavours that going to this dish which makes it tasty and different along
with the option that allows the customers to customise the taste of the dish according to the
liking might help to make this item popular among the users.
Other impacting factors
One of the other important factors that might influence the development of the product in the
country is the education standards here. the ratio of educated and education is increasing in
the country and more and more people are showing Trends of having better information
regarding day to day use products including foods and their nutritive values and this proposal
is actually better in Australia then the other surrounding countries. The nutritive awareness is
observed in a class of people who are having actually the highest purchasing power and who
formed the major group of the target customers who buys food from the fast food chains of
the country. Also there is a lot of education conducted on the food safety standards in the
country because of which the fast food chains are also and reliability to deliver healthy food
to some extent. In this context 1 important factor that is invention is that the food products
that is developed air contains low carbohydrate as well as low level of Trans-fat. This is an
interesting factor that is not in alignment with the other popular fast foods like fried chicken
or Peri Peri chicken. The rolls that come with this food products are also hand tossed and
bake and filled with cheese stuffing that contains the least level of fat. Compared to other
fried items this food product contains 400 calories lesser. Another name packing factor that

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might impact the business of the company by means of this new food product is the square
meal plan that has been introduced by the outlets of red roosters. Firstly, it has been observed
in the annual reports of the pairing fast food companies of the country in the year 2017 that
the outlets that has been running based on fast food products in the menu only has not been
able to do comprehensive business. This factor has been productivity used by red roosters
who has then innovated this as an alternative product. This is a food products that can be
consumed by the customers both as a meal and for the purpose of snacks also. The protein
and energy requirements of the body are made parallely by means of consuming this and the
essential feature of being cooked with alternative olive oil gives both taste and lightness to
the food.
The last factor that deserves a discussion is the enlarging ethnic diversity in the country. The
market includes the various categories of people like Europeans, Asians, natives Africans as
well as Australians also. Hence, this is allowing the outlets of red rooster to use various
diverse products and create various versions of this dish for the ethnic diversity. As such
people of one ethnic origins are liking the customisation made by the others and in this way a
new craze of this food might develop in the people of the Australian society.
Internal market environment analysis
SWOT
Internal Factors
Strength- the Company, has a main proportion of market share in Australia. Most of the
clients rely on this brand other than the alternative brand for a trustworthy and reliable
solution that the firm provides. One of the largest sponsorship in a food chain company.
Apart from that, there are personal desire towards this company. The company has a vast
food chain market, the positive fact stand in respect that the number of consumers seems to

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be increasing which makes the company very remarkable in terms of Brand Equity in the eye
of customers. The company should head for product modification with time to time. Since,
the food chain has already presence of Brand Equity in the perception of consumers. There is
a huge chances of success towards the launch of a new product.
Weakness- the Company relies upon the income, taste preference and the need of the
consumers being it existing or new. Hence, it is very difficult for the company to maintain the
business if the quality detoriate or the food chain promotional fails to promote the product.
The frequent change in the environment directly cause the entire market pattern. Sometimes
the environmental factors are not favourable as much of the competitors already exists in the
rivalry market.
External Factors
Opportunities- The geographical region is to be given much of focus to increase the business
activity instead of focusing on a single region. More sub-franchise can be introduced to bring
in new business. Nnumber of visitors and tourist can be captured to expand the business
process. Moreover, brand awareness can make use of today’s modern IT service to reach
customers. Free trails are to be given to customers to capture the interest of the customers.
Push and Pull marketing strategy to be implemented to make the product penetrate into the
consumer market.
Threats- There exists a risk of promotional campaign and the type of promotional activity
being undertaken, if the consumer does not get attracted towards a certain product then the
market fails to accept the product. The change in the local government tax structure will
directly cause the business structure of the firm. Moreover, the frequent change in the
consumer taste in the region can bring about a disaster in business activity. Hence, the proper
implementation of the safety measure is to be undertaken. Lack of poor customer service

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should be taken care of, a customer always desires to be respected in terms of buyer seller
behaviour. The intense competition of the firm should be thoroughly analysed and
accordingly a proper implementation of plan should be initiated. Reduction in profit margin
of the firm should be given first most importance.
Recommendation
The launching of a new product is a step towards business modification. A new
product can be a successful idea or not. According to the supply chain analysis, it is observed
that the huge proportion of consumers depend upon such brand for their end products.
Moreover, the brand can head for market survey, distribution of free samples, trails, coupons
strategy to push the product in the market. Moreover, the situation of buyer seller dyad shall
be avoided as the consumer gets distracted and develops a negative view about the company
irrespective of the positive aspect and objective of the business firm. The company can also
head for product line extension as the goodwill and brand equity of previous product in that
particular segment category will bring about a trust in the mind of present customers as well
as that of new customers. However, a voting session can be conducted to have a pretty idea
about the need of this particular product. The digital marketing platform is to be implemented
to reach the consumers as it is the most suitable and reliable form of marketing and that to in
a educated and technology dependent country like Australia.
Implementation plan
The company should head for exploring from a small segment of the market and should
mostly focus on referral marketing and words of mouth.
The company use the IT application field such as digital marketing platform, to reach the
potential consumers, it is a platform which avails both organic as well as paid advertisement.

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Moreover, different campaigns can be setup in accordance to different timings to target
different segment of consumers.
The business should concentrate on the supply chain and focus on the franchise network or
local vendors, to place the product in the shelf as a sample, which brings in the concept of
push strategy.
The company sponsorship plays a greater role, a company should seek for a sponsorship
programme.
The supply chain should be involve in communication with the existing consumers, to win
the interest of the existing consumers.
Start building community and audience by conduction seminars or events in the name of that
particular product. This strategy plays a great influencing role in the market. However, there
exists a different manner of marketing strategy for different segment of consumer and hence
is to be given special focus.

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References
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