Analysis of Dicos Management Strategy

The development and competition of catering industry in China in the 21th century have been launched at a higher level, and brand management has become the core competitiveness of catering enterprises. Therefore, when implementing brand strategy, expanding chain operation and expanding market share, catering industry should not only innovate constantly to grasp quality and characteristics, enrich brand connotation, improve brand social image and trust among consumers, but also pay attention to innovation of business concepts such as industrialization and modernization. Consolidate the brand, expand the influence, develop franchise stores through franchise chain, and embark on the road of revitalizing the regional economy by "creating a famous brand, bringing an industry, prospering the local economy and enriching the people".

China western-style fast food enterprise "Dicos" has made a successful step in brand expansion, business innovation, industrialized operation and modern management in recent years. When "Dicos" expands its business and develops its franchise stores, considering the actual situation in China, the investment in joining is far lower than the investment required to join other brands of western-style fast food. Today, "Dicos" has established a good brand image in the minds of investors in various regions of China.

I. Overview of Dicos

According to the news released by China Chain Store & Franchise Association (CCFA) on April 7, 2116, Dicos was re-elected as an excellent franchise brand in China in 2115 after 2112. By the end of 2115, Dicos had more than 511 head stores in China, ranking third in China's western-style fast food brand, and pressing McDonald's, which ranked second in China's western-style fast food.

Dicos opened its first store in Chengdu only in 1994, and was acquired by Taiwan Province Dingxin Group in 1996. As a rising fast food brand, how did Dicos become the top three western-style fast food in China in just ten years? Through in-depth research on the development of Dicos, the author believes that the key to Dicos' "crazy" growth in the gap between international fast food chain giants McDonald's and KFC lies in its management strategy analysis.

1. Chain operation mode:

Compared with KFC and McDonald's, Dicos has adopted the same chain operation mode, allowing all investors to join in and operate together. At present, 99 of the top 111 domestic catering enterprises have adopted the chain operation mode, 38 more than in 2111. This development trend has fundamentally changed the ownership structure of the catering industry, and the advantages of brand and standardization of chain operation have emerged, which has injected vitality into the sustained and rapid development of China's catering industry.

2. Franchise mode

The brand generation and cultivation of catering industry should focus on the basic work of supporting brand growth, and make continuous efforts in product quality, management and cultural atmosphere, so as to make its own brand the foundation of the industry and lay the foundation for chain operation in the future. In view of this, relevant experts pointed out that there is a principle in the business model of franchising: "One brand, two standards, three characteristics and cultures, four innovations and five management; One lock value, two lock secrets. " This principle can be adhered to, inherited and maintained, and the unique brand is the soul of chain operation. Only by grasping the lifeline of continuous and effective expansion can chain operation make a difference.

2. Analysis of brand management strategy

1. Location strategy: The choice of rural areas surrounding cities

is a strategic choice for chain enterprises, which means what kind of regional market the chain enterprises enter and what kind of competitors they compete in.

In fact, during 1996-1998, Dicos fought head-on with McDonald's and KFC in first-tier cities, and established 54 direct stores in 13 big cities in just two years. However, due to the small brand influence and high operating costs, Dicos continued to lose money. In this case, Dicos had to bite the bullet and close its branches in Beijing, Shanghai and Guangzhou.

Later, Dicos learned a lesson and adopted the strategy of "encircling the city from the countryside", and marched into domestic second-and third-tier cities that McDonald's and KFC had no time to take care of, focusing on the northwest market. In the choice of entering cities, Dicos only chooses prefecture-level cities with a non-agricultural population of more than 1.51 million and an average annual income of more than 4,511 yuan, and county-level cities with a non-agricultural population of more than 1.11 million and an annual per capita income of more than 6,111 yuan. In the choice of business circle, in addition to adhering to the basic site selection requirement of "the most prosperous area in the city or the largest supermarket or shopping mall with the largest flow of people", Dicos mainly chooses the main business circle, the community and the business circle around the school to choose the location of its stores with different specifications.

Dicos' location strategy avoids the reality and avoids the direct confrontation with KFC and McDonald's, which makes Dicos develop rapidly in the market where western-style fast food is almost blank. In many cities, Dicos became the first brand of western-style fast food in the city because of its first entry. Even KFC or McDonald's later entered the market, Dicos was in the leading position in terms of brand influence and single store turnover.

2. Chain strategy: franchise-oriented

Compared with the cautious franchise practices of McDonald's and KFC, Dicos adopted the strategy of "franchise-oriented, supplemented by direct chain". Among them, in the way of joining the chain, Dicos mainly franchise, supplemented by cooperative joining. Franchising is a cooperative mode for franchisees who are willing to invest fully and operate wholeheartedly; The cooperative franchise is aimed at investment franchisees, in which franchisees and Dicos invest together, Dicos invests in equipment capital, franchisees invest in venues, decoration and other capital, Dicos is responsible for restaurant operation and bears operational risks, and franchisees extract fixed profits.

It is precisely because these two joining methods fully take into account the different situations and business concepts of domestic small and medium-sized investors, coupled with the different store types launched by Dicos according to different locations and different areas and the reasonable joining fees, that Dicos quickly attracted a large number of franchisees.

In addition, compared with the investment of KFC and McDonald's, the general investment of Dicos is only 12 million yuan, and the operating cost is strictly limited in an appropriate range, so that the cost of each Dicos restaurant is much lower than that of KFC and McDonald's, which greatly enhances its survival and competitiveness. Dicos, ranked third in Germany, has opened 161 new stores, with more than 511 main stores. As far as the number of stores is concerned, the gap between Dicos and McDonald's in the second place is gradually narrowing.

3. Marketing strategy: Differentiated marketing

"Surrounding cities from rural areas" and "Franchising strategy" are important strategies for Dicos to compete with McDonald's and KFC in differentiation. In addition, Dicos has more personalized characteristics in product development and promotion methods than McDonald's, KFC and other foreign fast food strictly implemented "one thousand stores".

In terms of product development, although Dicos' main product is fried chicken like KFC, Dicos pays great attention to the difference between them in taste selection. Dicos fried chicken is fried in an open pot, so the chicken nuggets are golden, crisp, delicious and juicy, which is in sharp contrast with KFC fried chicken. In addition, among the products developed by Dicos, there are many delicious foods with oriental tastes, such as corn soup, rice burger, fresh meat hibiscus fort, curry chicken rice and so on. In recent years, Dicos has also launched rice products such as roasted chicken rice and braised beef rice.

In terms of promotion, Dicos is different from McDonald's and KFC's top-down national or regional promotion system, and adopts a combination of bottom-up and top-down promotion strategy. Each franchise store of Dicos can put forward new promotion measures at any time according to its own situation. After discussion and approval with Dicos, it can be implemented the next day. If McDonald's wants to promote sales, it may take half a year for a presentation to be made internally. It is precisely because of this flexible and fast promotion method that is close to the market and consumer demand that Dicos can attract more and more repeat customers with lower cost and more effective solutions.

Dicos' differentiated marketing makes Dicos have strong competitiveness, and the investment and operating costs of Dicos are lower than those of McDonald's and KFC, so franchisees have more profit space. Therefore, after opening the first franchise store, many Dicos franchisees often open the second and third franchise stores within a few years.

Third, the SWOT analysis of Dicos

Advantages: 1. Many products of Dicos contain a lot of collagen, and contain many kinds of amino acids and vitamins necessary for human body

2. Dicos crispy fried chicken has secret idiosyncratic methods, which make its food entrance tender and delicious

3. The decoration in Dicos is warm and there is no entertainment place for children, which attracts them to patronize. Therefore, it brings great benefits to Dicos' products

Disadvantages: 1. Other similar food industries are actively expanding their market share, and the competition will be more intense

2. There is less export, and the region lacks understanding of Dicos

3. Dicos' current operation mode is slow to adapt to and reflect the market

Opportunities: 1. The western-style fast food market in China is growing. And the western brands in China still need to be strengthened

2. Dicos has a superior geographical position, which is located between Century Lianhua Supermarket and Western Department Store

3. Dicos has medicinal value, which is mild and tonic. Efficacy of dispelling cold

Threat: 1. KFC and McDonald's have seriously hindered the development of Dicos

2. Similar products in other regions will also kill the market of Dicos

3. Local eating habits have also hindered the development of Dicos

4. Some suggestions for Dicos

I remember going to Dicos to eat once. We just bought some jelly and melon seeds from the outside, which are

snacks anyway. After the meal we ordered, several girls casually took some snacks to eat

. As soon as we opened it and ate a little, a waiter came up and told us that we couldn't eat takeout food here.

We were really angry at that time, so we just sat for a while and left.

We have just analyzed Dicos, and I think I have some suggestions for the management

layer of Dicos, so you can have a look.

1. This hygiene must be guaranteed, and gloves must be worn when taking things for customers. As a catering industry, this hygiene is necessary.

2. Maybe some of Dicos' staple foods are not quite the same as the local eating habits. I think even in the catering industry, we should follow the principle of adapting to local conditions, and we can slightly change the taste and types of products according to local habits.

3. The publicity is not in place. We should make publicity through various media channels to achieve the following effects:

1. Create a "unique concept of food culture"

2. Establish a brand-new brand image of Dicos

3. The visual share of gun battles in the western-style fast food market in China

Increase people's understanding of Dicos culture and make Dicos culture deeply rooted in people's hearts

4. Establish a perfect information collection and processing system. Can timely and accurately respond to market changes

5. I hope that Dicos' products and production processes can be low-carbon and environmentally friendly

5. Conclusion

In short, Dicos must pay attention to various aspects of management, and also adopt other people's suggestions in a timely manner, and develop at different levels

. These are my analysis and suggestions for Dicos by using what I have learned, and I hope not

.