Burger Hut Marketing Communication: An Environmental Scanning
Task: Analyse the burger hut marketing communication by conducting a broad environmental scanning.
From even its establishment, the Burger hut company has accepted the ideology of “Customer is King”. The management of the company has focused on the philosophy and parameter of freshness, innovation, service, quality, and value. In the outlets of Burger hut, the customers could avail of the service of comfort style dining. The company has segregated the whole set of food products into the compatible age groups of children, teenagers, and adults. In the current scenario, the competition has exponentially increased in the market of the food chain business. The burger hut has made a global image of a brand that provides its customers with a very unique and premium dining experience at a very cheap price.
The major aim of this burger hut marketing communication report is to provide the readers with an elaborate discussion over the future expansion plans, business, and marketing strategies of the company. The major priority of the company is to focus on its strong market and thus slowly expand its business to further markets. The company has set a sustainable target to increase its revenue to provide substantial value to its shareholders and accumulate finance for its future business. The motto of the company towards its customer is “Taste the different”. The modern mission of the Burger Hut marketing Communication is to control the market of burger sales. To attain this state, Burger hut has decided to provide each customer with the best experience. This report on burger hut marketing communication would provide the company with the recommendation to gain much more publicity and awareness among the global community by building up sustainable links and communication with customer bases. In the initial stage of the report, the process of economic scanning is done by using some effective tools, thereafter analyzing the present communication system of the burger hut marketing company.
PESTEL Analysis: If taken the case of Singapore, its population has surged to about 5.6 million as per the census data of the year 2016. It just took only 10 years for the population of the country to jump from a magnitude of 4.59 million to 5.6 million, which amounts to about 22 percent of growth. It is because of the high migration rate that the population of Singapore had increased so rapidly. The population of the country has resulted in a multiracial and multicultural one which provides a lot of opportunities for the food manufacturing companies.
The more a population gets bigger and diverse, the more opportunity would the companies in the economy would get. It is also the better innovative measures and research in the field of technology that would create the need for skilled workers. The new technology would bring out new ideas that would end up in the new start-up industries. The technology development in Singapore has reached a very high level and the customers are even provided with the facility to commence shopping using the VR, by online method, straight delivery to home via drone, etc. The banking system is well modernized and most of the payments could be done through online methods.
The rigorous growth in technology had even faced the second-generation internet and technology in the country. The improvement in the mobile network system and other related technologies have brought to the revelation of a lot of opportunities to the entrepreneurs.
As the food manufacturing unit is booming in Singapore, the issue of food wastage is emerging in the nation. The National Environment Agency has taken this issue very seriously and recommending the government to make relevant laws to control it. The government bodies have started an awareness program for the Singapore society so that they would be led towards the goal of minimum wastage.
·Diversity in the combination.
·A robust method of Branding
·The restricted magnitude of the product mix
·A menu containing the health-conscious diet.
·Very harsh competition in the market
If contemplated against the existing companies in the market of Singapore, the Burger hut company retains a very strong system for production. It is not only the variety of burgers in which the burger hut has proven its efficiency. The company also provides its customers with BBQ, breakfast items, and other beverages. The company is considered to be one of the most reliable brands for fast food in the country.
Though the availability of the limited product mix is one of the evident weakness of the company. The business strategy of the company is weak and because of this, the product of the company is easily imitable by the other competitors. The company has failed to make the maximum use of the diversity present in their system and human resources. There is not much difficulty for another organization or food outlet to provide their customers with the BBQ burgers as like that of the Burger Hut. The effort to imitate the products of the company are hence very less. The product mix of the fast-food companies to avoid the complexities in the available menu. The magnitude of the sales share for each company is decreasing very rapidly. The new healthy food trend is bringing sown the fast-food below the preference list of the customers. The decrease in the market size has even risked the sustenance of some fast food processing companies.
Though the company of Burger Hut is well established on both the global market and the local market of Singapore, it could make some amendments and strategies to cope up with the new trend of healthy food consumption. The company could include the low-fat cuisines having high fiber content and low calories in their menu to reap more profit out of the current trend of healthy food. This would also help in decreasing the weakness observed in the magnitude of the product mix. If the product line is widened, the customers would surely get attracted to the outlet of the company to consume diverse food.
As discussed earlier in this report on burger hut marketing communication, the market in which the company operates has a fierce level of competition. The prevalence of both the local companies and the international entrants in the market has elevated the competition to a very brutal level. The international brands like KFC, McDonald, Dominos, Subway, Pizza Hut, etc. have already marked their presence in the food market of Singapore.
The government could help the company by routing the consumer to its products by conducting some awareness programs. This is important since every person is getting conscious of whatever is going down his throat.
The management team of the company should conduct a competitor’s analysis if it is operating in a market that retains a high level of competition. This is very crucial for a company that has targeted a higher level of growth for its business. The significance of the competitor's analysis should not be taken frivolously by the management of a company.
If taken in account of the F&B company which is operating in the market of Singapore, has provided the GDP of the nation with the contribution of 14.4 billion Singapore dollar. The company has at the same time employed around 300,000 natives in its system. As mentioned in the above section of this burger hut marketing communication, the food market of Singapore is already being occupied by humungous countries like Subway, KFC, Pizza Hut, McDonald's, etc. and are having their piece out of the limited business. The same context is very challenging for Burger Hut since its competitive strategies may have to face a lot of hostilities from the competitors.
SMART Approach- Marketing Communication Objective
The predetermined target to achieve inclusive growth in the operational market is often termed to be the business objective in the corporate world. Various aspects are being covered in the goal of an organization like customer satisfaction, growth in revenue and profit, increasing the brand value, etc.
If the company of Burger Hut needs to sustain integrity and harmony with its customers and competitors, then a specific aim and objective should be determined by its management team. From its inception, the major objective of the Burger Hut company has been to provide its customers with quality fast food products at a very reasonable price. The company has employed a very vast customer service system to provide a better experience for the customers and thus consecutively deliver a higher level of satisfaction to them. The company could conduct a broad marketing campaign by providing various coupons, utilizing the banners, providing ads in newspapers, multimedia, social media, etc.
Specific: The company should focus on the younger age group along with including the working adults. The working adult who re of younger age have a higher level of purchasing capacity and follow the tendency to trail the latest trends in society. The inclusion of programs like share meals and big eater would attract a lot of working-class young population. The concept would benefit both the customers and manufacturers. The idea should be spread among the community by the media of Television ads, social media, newspapers, etc. If the marketing strategies are being implied by the management team punctually, around 40% of the Singapore population could be made aware of the Burger Hut products.
Measurable: In the initial phase of the burger hut marketing communication program, social media platforms like Facebook and Instagram would be utilized by the company to spread awareness. The growth by it would be observed for 3 months. An online account from behalf of the Burger Hut would be opened where the customers would be encouraged to provide ratings and feedback on its products and services. The convenience of the customer would be further enhanced by providing the whole information by scanning a QR code. This would increase the impact of marketing programs since the customers would be able to access the information, in a much faster method.
In the second stage, the flyers and coupons of the company should be distributed for six months. The special offers like providing free cookies or fries after scanning the WR code would increase the pace of the burger hut marketing communication program.
In the later stage of the burger hut marketing communication program, the company could launch the competitions like Big Stomach King for further three months. The company could also maintain the trending position in social media by generating some attractive and innovative hashtags.
Achievable: If the above-mentioned burger hut marketing communication program is followed diligently for 9 months then the company could increase the customer base in Singapore to 30%.
Relevant: The photos and news regarding the competition of Big Stomach King should be circulated on social media. This would increase the awareness regarding the products and services of the company among the population. The social media platforms like YouTube, Facebook, Twitter, and Instagram could be utilized by the company for its Burger Hut Marketing Communication.
Time-Bound: The task to achieve the target by March 2018 would not be a very hard one to the Burger Hut. A significant amount of money could be saved by the company in this Burger Hut Marketing Communication.
Approaches to be taken in drafting and implementing the Burger Hut Marketing Hut Communication Programme
Dining Habits: If taken the culture of Singapore in consideration, the food habits play a very significant role in it. The food culture of Singapore could be traced back to its ancient local history. It is the cost of food in Singapore that makes the living cost of it much higher than other destinations. The economic data of Singapore reveals that an average person spends about 25.1 % of his income on food.
Burger Hut New Launch Product Poster: To conduct its burger hut marketing communication efficiently, the company has designed out an innovative poster that could attract new consumers from the local market. The poster can lure the consumers and compel them to try the various food products of the Burger Hut. The company has introduced the white burger and black burger in a single combo which would attract a wide range of customers. Both types of burgers are included in a separate menu to allow the customer to “Taste the Different”. In each combo set, the company had included chips and beverages.
The company has also focussed on providing some side dishes on the menu, like cheese potato and potato salad. The use of real mayonnaise has increased the quality of food served by the company. The use of cheesy sauce on potato has been liked by a lot of customers and is now the most sold item from its outlets.
Positioning Strategy: The brand positioning is another factor which could increase customer relevance and consecutively provide the company with a competitive advantage in the operational market. Below are listed down the key selling factors of the Burger Hut company.
- Rare type of grouping
- A massive portion acquired for buddy share and big eater.
Big Stomach King Contest: The Burger hut marketing communication could be successfully conducted by the guidelines provided in the above section of this report. The last stage of this program consists of Big Stomach King Contest. All the big eaters in the company are invited and are challenged to et s many food products they can in a limited time. If the challengers select to eat the “Black and White society” they are provided with a time of 15 minutes. Whoever wins the contest is provided with the voucher worth value of $ 300. The company could honor the winners by posting the declaration from their Facebook and Instagram accounts. The photos of the winner would be displayed on the respective outlet or the branch of the Burger Hut. The winner could be further challenged by other people and hence the records are of just a temporary manner.
Advertising: The major approach for making the burger hut marketing communication success is to conduct the advertising on a wide basis. The management of the company should specify the targeted set of the population so that the activity of advertisement should be made focused on them. The strategies for marketing should be drafted by referring to the requirements of the targeted group. Since the targeted group is a young working population, most of them would be staying away from their family. If the consumers would be provided a very amiable and homely environment in their outlets, a lot of customers could be attracted to its products. The attendants and the employees should be very friendly with visitors.
The social media and the print media should be used by the company to its maximum level so that the maximum of Singapore citizens would be aware of the products of Burger Hut. Sponsoring some sports events collaborating with the Singapore Badminton Association, Football Association of Singapore, Basketball Association of Singapore, etc. would help the company in reaching the younger generation. To attract the health-conscious population, the company could provide some healthy juice as a complement to the dishes.
Sales promotion: The department or the unit of the sales promotion is an intermediate between the original business and the final customer. By the process of sales promotion, it is aimed by the company to increase the revenue of the company by the increased level of sales. Various strategies could be adopted by the company like providing the consumers with gifts, providing b=vouchers and discount offers, lucky draw, etc.
To make aware the customers with the new items introduced in the menu, the company could start the "Taste the different" campaign. The QR scanning code facility would increase the interaction of customers with the company.
Public Relation: The public relations department of the company majorly works to increase the brand value of the organization. By active public relations, the company could generate a positive response for its products, business, and services from the consumers. The public relation department makes it sure that the company retains a very positive image in front of the public.
The best way to create a positive image is by indulging in environmental awareness and other social activities. The company could ban plastic and use biodegradable material for packaging. The packaging design should be such that it provides a message regarding recycling, reduce, and reuse. The Burger Hut company should shift towards paper packaging for products.
Direct Marketing: The activity of making direct communication with viable customers comes under the department of direct marketing. Pointing out the potential customers for the business is a very crucial activity for any business. The telemarketing via SMS, e-mail, and calls are now very effective because of the high prevalence of mobile numbers. The marketing could be done one to one via mobile which is a very cheap and cost-effective method.
The recommended method of controlling and evaluating
Customer Feedback: If the company has an insight or intends to improve the magnitude and quality of service provided by it, then it must have to rely on the valuable feedback and reviews provided by the customers to augment the process followed in it. The feedback of the customers would be permanent and has the potential to make a positive impact on the company. The honest review from the owners would turn out to be a continuous source of learning for the company management.
A specific QR code is being printed on the bill for the customer if he buys any food product from the outlet of the Burger Hut. In the resultant link, the customers could enter their feedback regarding the service and the purchased food product.
Competition Activities: Though the activity of competition activities is mentioned in the last section of this report, it is not in any manner a less relevant activity. The tool of competition activity turns out to be a very counterproductive one in the instance of implementing a counter-strategy. The identification of potential competitors and estimating the magnitude of the competition is very crucial for a company in taking initiative for its marketing campaigns.
There are several steps to be followed in the competitor analysis. In the initial stage, the tea identifies the viable competitors present in the market? In the second stage, the company requires to derive out the approach to be taken against the acquired foundational information. After the analysis, the crucial factors which have helped the competitive company in succeeding should be noted.
Conclusion: If this Burger hut marketing communication is being referred to and followed by similar companies, then it would surely attain its financial goals on the global platform. The global data would reveal that the world market is evolving at a very rapid rate. The major contributing factor for this change is the heavy innovation processes in the field of Information technology and smartphones. The management of the company should invest an additional effort by drafting the strategies regarding the strengthening of the brand values, attain the cutting edge against its competitors, widening the product mix, etc. The company needs to identify the existing opportunities in the market and thus and thus should attain a better growth potential by implying the burger hut marketing communication.