Marketing Strategies for New Fast Food Brand: Hankering Corner Report

This report examines the marketing management strategies for launching a new fast-food brand, Hankering Corner, under the Yum! Brands umbrella, specifically targeting the Thai market. The report begins with an executive summary and table of contents, followed by an introduction outlining the growing fast-food industry and the rationale for selecting Thailand as the launch country, emphasizing its tourism advantage. It defines marketing management and outlines the responsibilities of a marketing manager, including planning, market analysis, and strategy implementation. The report details the value proposition of Hankering Corner, which will offer a fusion of Western, Indian, and local Thai spices to differentiate itself from competitors. It then explores key marketing concepts, including the marketing concept, market orientation, and the holistic marketing concept, emphasizing customer satisfaction and market responsiveness. A PESTLE analysis of Thailand is provided, considering political, economic, social, technological, legal, and environmental factors. The report also covers segmentation, targeting, and positioning strategies. Finally, it offers recommendations for launching the new brand and concludes with a summary of the key findings. The report highlights the importance of understanding market trends and customer preferences for the success of the new fast-food outlet.

Running Head: Marketing Management of new Fast Food Brand
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Hankering corner- Fast food brand
Report on Marketing Management
6/1/2018

Marketing Management of new Fast Food Brand 2
Executive Summary
With the change in taste and preference of the customers fast food industry has emerged as the
new leading segment in the business and economy. Fast food refers to the food that can be
prepared and consumed in the short period of time. It is mainly known as snacks and available at
take away. One of the leading brands in fast food industry is Yum Brands, Inc. This popular
brand is an American based organisation which was founded in 1997 with Pizza Hut, KFC, Taco
Bell being some of the organisation’s famous subsidiaries. The customers served by the brand
are worldwide.
In this report, the role of marketing management in starting up a complete new brand of fast food
is being analysed. Thailand is the country which has been selected to start the business. Reasons
for selected country have been highlighted. The report further describes the steps and important
aspects to be studied before establishing any fast food brand. Also the concepts and the
philosophies which are required in establishing the business are highlighted. With the view to
expand and distinguish from the competitors, uniqueness of the organisation has been mentioned.
For better working, attaining and retaining the targeted and potential audience, the report follows
up with some recommendations at the end.

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Table of Contents
INTRODUCTION...........................................................................................................................4
VALUE PROPOSITION.............................................................................................................5
MARKETING CONCEPTS AND PHILOSOPHY........................................................................6
Marketing Concept:......................................................................................................................6
Marketing Philosophy..................................................................................................................7
Market Orientation...................................................................................................................7
Holistic marketing concept.......................................................................................................7
Targeting Country............................................................................................................................8
PESTLE ANALYSIS...................................................................................................................8
SEGMENTATION, TARGETING AND POSITIONING.........................................................8
NEW LAUNCH...............................................................................................................................9
RECOMMENDATION.................................................................................................................10
CONCLUSION..............................................................................................................................11
REFERENCING............................................................................................................................13

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INTRODUCTION
The lifestyle of the metro cities has taken over a large number of human habits. The busy
schedule in this competitive world emerged the need of fulfilling the necessity at a faster pace.
Just as, internet helps getting banking transactions, shopping, and communication done with just
one click at any point of time. Similarly, the hike in fast food industry was seen and felt. From
few decades, increase in Fast food outlets has come to notice. This industry consists of food
which is processed and easy to prepare and available in the form of snacks or at take away.

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Turning up as one of the trending business, food industry has come up as a positive marketing
segment of the economy. A rapid expansion in the segment has created more competitiveness,
resulting in high maintenance of quality in rendering the customers. Customers are the key of
success for any business and their satisfaction is the major area of consideration. Rendering
services and product according to the demand, provides the business an advantage for longer
sustainability in the market.
Under this report, Yum Brands, Inc., or Yum! Is an American fast food company, which is also
referred as Tricon Global Restaurants with their headquarters, located in Louisville, Kentucky,
United States. It was founded on 30 May, 1997 as East Dawning, KFC, Pizza Hut, Taco Bell and
many more as some of the organisation’s subsidiaries serving their customers worldwide (Yum!
Brands, 2018). With the motive for expansion the Chief Marketing Manager choose to expand
the business by opening one more outlet in Thailand. The country provides the advantage of
mass tourism which will eventually help the brand stay in the market for a longer time (Johnston,
and Bate, 2013).
A profound knowledge of the market and customer rendered is necessary to start up with the
venture. Hence in the following report, focus on the strategies, concepts, environmental analysis
of the chosen country and theories are highlighted with reference to the necessity and demand
which are to be implemented before starting of the new outlet.
BACKGROUND
MARKETING MANAGEMENT: Referred as proper managing and distribution of the resources
held by the organisation in order to attain the desired objectives and aims by implementing the

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best possible strategy which maximize the sale and reach the targeted customers (Armstrong et
al., 2015).
The major role in formulating and implementing the wished-up strategies are played by the
marketing manager. Being a marketing manager comes up with a large pool of responsibilities.
The organisation always aims for a long- term stay and sustainability in the market with serving
the best to the customer. Foresightedness is an expected trait from the manager for launching the
new product, formulating the strategies, and making the plan come to an action (Wilson, and
Gilligan, 2012). With relevance to launch Hankering Corner, following are few responsibilities
that come at the part of the manager to be performed:
 Planning a product
 Analysing the market segment
 Framing of objectives
 Forecasting of procedures, strategies, methods, and policies
 Framing promotional activities
 Framing budget for activities
 Arrangements of the human resources
 Co-ordinating the strategies
 Execution of the plan
With the view to expand the business and great a brand image of the new outlet the primary
responsibility of the manager will be to keep a check of the trends in the market so that the
competition does not hinder the smooth working and the new outlet is able to create a brand
image in the market (BMI Research, 2018).

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Yum Brands decides to serve in the markets of Thailand as it provides the outlet with the
advantage of rendering customers globally. Tourism is one of the major advantages for the
outlet. And also because Yum Brands already have their subsidiaries in the existing market, this
influential factor aids in enhancing the market share in the customers for Hankering Corner.
VALUE PROPOSITION
Value proposition refers to the concept of adding an innovative and unique feature to the current
product or the service rendered by the organisation in the market. This is an essential step and
characteristic to be added or offered with the launch of launch of new products or services so as
to attract more of the targeted customers (Baker, 2014).
Although, Hankering Corner is open under the brand name of a well known brand yet to survive
and meet the preference of the targeted segments there has to be a feature that distinguish from
the other already existing products and services offered. The new brand decided to prepare fast
food which will be a blend of western spices along with the Indian spices and the local spices.
The focused offering will be the local spices dish with preferred continental food. Tourist usually
search for their own preferred country or native taste of food hence making this the uniqueness
of the new outlet offered in retaining and attracting the customers (Dinnie, 2016). As the parent
brand have roots in Indian market as well as in western market, it helps them to deal with the
above mentioned country in export and import of products. With change in taste and preference
of the customer the diversified element combined as the value proposition will assist the brand
create a unique brand image in the market. The increase in competitiveness makes the market

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work through and the view of demand fulfilling, satisfying and delivering the best than others
with the view to stay in the long run along with earning profits.
MARKETING CONCEPTS AND PHILOSOPHY
Marketing Concept:
In the words of Philip Kotler, marketing management refers to the science and art of picking the
best suitable target market and audience by rendering the most in creating customer value and
satisfaction. Further, it can be defined as determining the strategies and policies to be
implemented in respect to sales, creating customer satisfaction and growth of the organisation.
Following are the core concept of marketing discussed by Philips Kotler (Google, 2018):
This is the basic concept that needs to be followed by the organisation whenever starts with a
business. The first and foremost step is to study and analyse the market to know the actual

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demand and the viability of the product that will be offered in while. The process of studying,
research and analysing the surroundings and society is known as marketing. Similarly, to start a
new fast food outlet in a complete new country the parent organisation must keep stick to the
basic concept mentioned above. Before establishing Hankering Corner it is important to know
the needs, wants and demands of the customer they target to render and accordance with the
demand create a product and service. If the product or service is not according to the demand of
the market then the desired outcomes might not come. When the organisation comes up with the
idea to start a business customer satisfaction should be the focus so that the customer can be
retained and growth prevails. In order to fulfil the demand the organisation should have
commodities or experience (services) that can be consumed in exchange monetary transaction.
To continue with smooth working and a proper regular growth and income of the organisation
good relations with the customers, suppliers, distributors, and employees with delivering fair
quality products, charging fair prices, making payments on time, and providing good services by
keeping the ambience clean.
Marketing Philosophy
Market Orientation
This is a marketing philosophy which concentrates on the needs and demands of the targeted
clients through product mix. As any organisation never rely on just one product, it always offer a
variation in the products offered. With regards to this concept, Hankering Corner can completely
focus on the customers and attain the desired brand image in Thailand market. In long term
concern as well the concept will aid in retaining and attracting the potential and targeted
customers by fulfilling the needs and wants. Customer dominates the market and as being in the
fast food industry the taste and preference needs to be taken care of at priority. Making the

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organisation market orientated and implementing strategies accordingly will eventually help
them enlarging the desired goals and objectives and improve the goodwill in the fast food
segment while establishing a brand new outlet (Hult, 2011).
Holistic marketing concept
The holistic marketing concept is among the newly introduced and adopted concepts by the
organisations. This includes both traditional and modern approaches which focus on the ongoing
market environment and business practices like globalisation, demographic changes,
competitiveness, and social responsibility showing interdependence (Murray, Gao, and Kotabe,
2011). This approach is further bifurcated into four segments:
 Internal marketing, it details the functioning between all the departments of the
organisation in order to keep check about the stock, profit or loss.
 Relationship marketing is important aspect to maintain and build better relationship
with customers either internal or external for growth.
 Integrated marketing aims at working of all aspects hand in hand like marketing,
product and services for growth of the organisation.
 Performance marketing is adopted in order reduce the cost and increase the output of
the organisation.
By adapting to this concept, help bringing out the growth and proper functioning of the
Hankering Corner.
Targeting Country

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As discussed above, the country selected to open a new fast food brand under the name of Yum
Brands, Inc is Thailand. The choice was made whilst keeping in mind the tourism advantage for
the outlet will have serving various customers at one place. Establishing a new brand in a
complete new country comes with many responsibilities; one of the most essential steps is
environment analysis to study the market scenario. The external analysis was held by conducting
PESTLE.
PESTLE ANALYSIS
 POLITICAL Factor: Country like Thailand still follows monarchy system. Though the
political environment is unstable still Thailand is the one the major exporter and
expanding the roots in industrialisation which provides business existing and new to
grow.
 ECONOMIC Factor: According to Association of Southeast Asian Nations Thailand is
the 2nd largest economy and 27th largest economy in the world. Due to more in Foreign
Direct Investments there is positive increase in the GDP of the country. The availability
of labour is at ease which does not hinder the employing of human resource.
 SOCIAL Factor: Buddhism is the main culture practised in Thailand with majority of
the population being a follower of Buddhism there is a unity in belief system and no
different culture are being followed which acts as an hindrance.
 TECHNOLOGICAL Factor: Being the 2nd leading economy of Asia and 27th of world
Thailand has depicted a rapid raise in infrastructure of the economy. In terms of future
prosperity the economy aims to show a hike in the GDP and growth.

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 LEGAL Factor: The international business and trading enjoys the feature of
liberalisation in entering and establishing business relations by reducing the legal duties
and tariff barriers. Thailand’s legal structure comprises of traditional Thai laws and
western laws.
 ENVIRONMENT Factor: By starting up a venture in any economy comes up with the
responsibilities towards the environment and the society (Pickles, Barrientos, and
Knorringa, 2016). The business is dealing in fast food industry, thus providing quality
food and hygiene in preparing the food are some of the issues that needs to be fulfil and
maintained throughout.
SEGMENTATION, TARGETING AND POSITIONING
STP marketing strategy is an important aspect to be ascertained in the present scenario. This
strategy helps the organisation to focus on the essential parts of the business. By segmentation
and target it refers to identification and analysing the area and desired customers to render their
service and product. Whereas positioning is the location the organisation wants to starts
(Marketing- Insider, 2015).
The segmentation and targeting strategy consists of the following 5 elements:
 Age Group: 10-50 years
 Demographics: The targeted customers to be children, males and females.
 Geographic: With setting up and launching the fast food brand in the big cities to create
brand image in the initial stage then spread to further major cities of the country.