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Business Management Case Study (with materials and questions)
I am studying business management. The following case was discussed in one of our classes, and we were asked to complete it at home. The following is only the material of the case. It's very long, so I'm sending it to you in two parts. ::::

The innovative marketing potential of Qumei Furniture

2005.09.28 09:58 Successful marketing

--"Zhenkongfu" global Chinese restaurant chain full case planning documentary

From the From the sound of it, McDonald's and KFC seem to "endorse" the fast food market in China, yet Chinese fast food occupies more than four times the market share of Western fast food. It's just that there's no real "leader" in the Chinese fast food "pot".

When KFC has announced that it wants to be "Chinese fast food", how should it choose to break out of the Chinese fast food market?

Written by Paul Yip Marketing Planning Agency

August, 2003, Beijing was as hot as hell. The "sizzling" cold air in the large conference room of Ye Maozhong Planning Organization could not dispel the anxiety of several core members of "Double Seed" Catering Group (the predecessor of "Zhenkongfu" Catering Co., Ltd.). The company's main goal is to provide the best possible service to its customers.

In 1997, the first "double seed" was born in Dongguan, 1999 "double seed" rapid growth, so they decided to go out of Dongguan, has opened up the market in Guangzhou, Shenzhen, however, the problem also appeared at this time. The same products, the same management, more expensive rent, greater traffic, double seed how to Guangzhou and Shenzhen will not work? The new store "slow heat", low profitability of a single store, the passing crowd of people into the store, the number of people, a single turnover has been hovering, the most puzzling is the introduction of the same quality with the McKeown or even better Western-style meals and lower price sales instead of being accepted.

The pressure also came from a growing number of competitors who were growing as fast as they were, as well as from a steady stream of imitators. So they came up with the Maurice Yeh Marketing Planning Agency.

Who should the "real kung fu" fist hit?

This is a typical issue of breaking out from a regional brand to a national brand.

Solved well, from now on can participate in the deer in the Central Plains; solution is not good, can only be trapped in a small area, waiting for either be recruited, or the fate of the demise.

Tracking down the root cause, first of all, to figure out the essence of the competition in China's fast food industry. Let's start with a few sets of data on the development of China's fast-food industry in 2002:

Data 1: The main business of China's fast-food market is still Chinese fast-food. 78.9% of fast-food restaurants are Chinese fast-food stores, while 21.1% of fast-food restaurants are Western fast-food stores.

Data 2: China Cuisine Association, the authority of China's catering industry, solemnly launched the top ten domestic fast-food chain brands to the society: Shanghai Xinya Dabao, Malan Ramen, Shenzhen Noodle King, Lihua Fast Food, Chixihe, Jiangsu Damiang Dumpling, Oriental Dumpling King, Guangxi Guilin People, Wuhan Steel Group Fast Food Company, Guangzhou Daxihao.

Data 3: Among the top 20 fast-food restaurants in China in 2002, McDonald's and KFC's local companies occupied 19 seats, and Shanghai Xinya Dabao became the only remaining Chinese fast-food restaurant in the top 20, ranking 17th.

What does all this mean?

We know that the 20/80 principle is fully realized in mature category markets, just as McDonald's and KFC are to Western fast food. But from these three groups of information, it is not difficult to see that the market foundation is strong and stable, controlling more than 4 times the western fast food market share of the Chinese fast food category, brand concentration is very low, there is no real "leader". It is only in recent years that the market share has begun to appear to some regional brands to concentrate the characteristics of the category market growth in the start-up period. There are huge opportunities within the Chinese fast food category.

This brings us to the fact that the two main conflicts in China's fast food industry (Western fast food and Chinese fast food category competition) mask another potential conflict (Chinese fast food competition with each other). Just as McDonald's has never taken Yonghe as its main rival, the main rival that "Double Seed" has to face is not "foreign fast food" but other Chinese fast food brands.

Which set of punches should "Zhenkongfu" play?

Occupying the favorable terrain of Chinese fast food is not enough, but it also requires the right strategy - which set of punches should "Double Seed" play?

Summarizing all the fast-growing Chinese fast-food brands in recent years, from Yonghe and Malan to some local fast-food brands such as Ma Hua, Nine Hundred Bowls and Blue & White, we found the same **** feature, that is, they all learnt the most important point of the big international chain brands: QSC - standardized quality, service and cleanliness.

They have been able to gain a foothold because they have broken through the bottleneck that previously constrained the development of Chinese fast food quality - the lack of standardized QSC, which shows that the Chinese fast food category is undergoing a major transformation of the industry.

But does having a standardized QSC mean success?

We think of the short-lived McKim and Happy Tom's of a few years ago. Their QSCs were also standardized, so why did they go into decline so quickly?

We found another point of convergence between them: they are also selling fast food with western flavors, and in the 21.1% of the "small pond", there are already two big fish, and the small ones are doomed to survive.

This reconfirms what we said earlier, that if you give up the path of Chinese fast food, you are leaving the 78.9% of free competition in the Chinese fast food category and squeezing into the monopoly competition in the Western fast food category, which accounts for only 21.1% of the market.

From this, we can easily see that "standardized QSC" is the main line of the transformation of the Chinese fast food category, and the essence of the transformation of the Chinese fast food category is:

Middle school is for the body, and the West is for the use.

This is the "double seed" should be practiced boxing, is the "double seed" to the road to success, is the "double seed" leading to the " The way to success is the way of the "two seeds" to the "real kung fu".

Where are the core values of "true kung fu"?

In our interviews with companies, we found a question that worried us. That is, when we asked what you think is the core value of the "double seed", including middle and senior management, the answers were varied, saying "delicious", "happy", "steamed", "happy", "happy", "happy", "happy", "happy", "happy", "happy" and "happy". It will cause the brand resources can not be accumulated, brand building can not be molded.

The core value of the "Double Seed" brand must be determined before it can be integrated and transformed.

We compared and analyzed the three sets of data from the market survey - reasons for liking Chinese fast food, reasons for liking Western fast food and reasons for liking Double Seed - and found that "nutrition" is the core value of Double Seed. The comparison of the three data sets - reasons for liking Chinese fast food, reasons for liking Western fast food and reasons for liking "Double Seed" - revealed that "Nutrition" is the only factor that differentiates "Double Seed" in the Chinese fast food category*** and creates a market pull in the development of the category.

This reminds us of what we hear in corporate interviews, "Our strong resource lies in our unique, steamy culture". This sentence is half right, "steam" in the Lingnan food culture is equivalent to the "original flavor original shape, not fire". The word "steam" is a big idea, for consumers, only "steam" is equal to "nutrition", "double seeds" can be landed in their minds.

So the real core value of Double Seed emerged - "more nutritious and tasty Chinese fast food", which we distilled into one sentence - "Steamed Nutrition Expert". "Nutritional experts in steaming".

The "Zhenkongfu" product line is a breakthrough

Since the 1990s, the fast-food industry has seen the eastward shift of the western winds, making chicken wings, burgers, fries, and Coke an instant fad in the food and beverage industry. "Double Seed also introduced fried food in the foreign fast food varieties to keep up with the times. When we did the marketing diagnosis and brand planning for Double Seed, we cut out all these products that do not meet the attributes of "Chinese" fast food, which was unanimously opposed by the entire Double Seed team.

We believe that the positioning attribute of "Zhenkongfu" is "steamed nutrition expert", which is mutually exclusive with the attribute of western food, which is mainly fried food. Any approach that is not in line with the category's attributes will severely harm the long-term development of the "ZKF" brand and confuse the brand's positioning.

Zhenkongfu's goal is to become the No. 1 Chinese fast-food brand, which is based on its strategic positioning as a "nutritional expert in steaming". Steam as the attribute of Chinese fast food, can not tolerate half a point of non-nutritional Western elements, otherwise it will greatly undermine the nutritional sense of the steam, in vain, the efforts spent on brand building.

The big give and take is the big get. We cut out the "Zenkungfu" fried food and strengthened the Chinese, steamed, nutritious "Zenkungfu" brand positioning, making the brand attributes more simple.

The "Double Seed" problem still hasn't been fully solved, and we still have to fill in the leisure-time product gaps left by the elimination of fried chicken legs, wings and colas. Is it true that Chinese fast food does not have the attribute of leisure?

We have found that since people are mostly in a state of leisure, relaxation and boredom during leisure time, most of the leisure

We have found that people are mostly in a state of leisure, relaxation and boredom during leisure time.