International Marketing

Fast-Food Restaurant Business Plan

Submitted to: Prof. Li Zhan Sheng

Submitted by: Mohammed Ali L2018027
Masqey Hussein L2018025
CONTENT

01 Introduction

02 STP Strategies

03 Marketing Mix Strategies

04 Conclusion & Future prospects

05 Appendix
E xe c u ti v e s u m m a r y

Hangout (Fast and delicious) will be a new fast food restaurant in Yemen. Located in
Aden residential area. It is established for healthy and fresh food for the customer. We
segmented our product based on demographic and targeted customer which is
University, college student's .We offer them healthy food those are not very costly, so
they can easily afford to pay. We have only one outlet in Aden as a new local fast food
restaurant .This is our manufacturer brand. We deliver our food to the customer directly.
We set our food pricing based on cost and competitor also. We provide full service when
they order the food. We've designed our promotion message keeping our target
audiences in mind. The promotion message of our restaurant is “Fast & Delicious”. We
chose this message because “Fast” always represent youth and as youngsters don't like
to wait. Our communication media is a bit of both personal and no personal. As we're a
new company we don't want to do any experiment with our promotional budget. So, we'll
follow the Competitive Parity method
I n t r o d u c ti o n
A fast food restaurant is known as quick service restaurant offering minimal table service.
A fast food restaurant generally offer a limited menu which is cooked in bulk on advance
and kept hot when need to be delivered. Depending on the establishment, servings may
be ordered from attendants of the customer. At the end of the line a cashier rings up the
purchases. At some self-service cafeterias, purchases are priced by weight, rather than by
individual item.
In Yemen, fast food has become popular with the effect of globalization. Many people,
specifically the younger generation are consuming various types of fast foods everyday as
these are convenient, time saving and tasty. Yemeni Consumer choose a fast food
restaurant depending on particular factors i.e. quality, variation, location, price,
environment, and many more aspects.
Hangout will be a local fast food restaurant in Yemen. It offers healthier, fresh, Customer’s
desired burger, sandwich and other food which can be offered by other local fast food
chain restaurant like CP, sweet and sweet, etc. The concept of our product is delivering
best food at a lower cost in Aden city. Our main priority is to establish one outlet in Crater
Road. It's a crowded area and there are two Universities and even more schools and
colleges around this area and it is perfect as our main target consumers are young
generation. Later on our effort will be a further development of more retail outlets in the
surrounding area.
Vision
To be a leading integrated food curt service group in country by delivering consistent quality products and excellent
customer quality service. To sell in a fast friendly environment that appeals to pride conscious health minded customer.

Mission
Our mission is attaining best in class productivity and efficiency. Reinventing the business continuously through technology
innovation. To sell delicious and remarkable food for our valuable customer.

Market Segmentation

Our segmenting market is Demographic based. We divides the market into groups based on based on variables such as

1. Age
2. 2. Income
3. 3. Education
4. 4. Religion
5. 5. Race and generation.
We operate our business in one geographical area and we pay attention to geographical differences in needs and wants.
We are targeting young generation people as our primary market because this type of customer is very much interested into
fast food items. Crater road is the place to meet and hang out after a day full of classes. Due to educational area it is
common to eat and hangout with their friends.
Market Targeting
Our selected target market is Micromarketing, as a new fast food restaurant we want to make product
based on individuals and location. Our target is local market but our secondary market is concentrated
marketing. We will make food very effectively and efficiently .Our mission is attaining in class productivity
and efficiency so we will concentrate tailoring food preferences on individual customer.

Market positioning
As a new in the competitive market. We differentiated our product based on service, product and people.
Hangout (fast and delicious) this tagline will pop up in every customer's mind. Our food will be healthy and
fresh that is our prod product strategy positioning, our service will be very fast, customer will not have to
wait for a while to get his order. We also position our product based on people. We already said that our
main target is student not all people so we differs people on young generation. They will know how our
product.

Marketing mix strategy (Product)

Our product features consist of three levels of product. Our product features are below-
 Actual
product

Core product
Augmented
product
1. Unique taste

2. Unique environment Core

product

3. Very warming attitude with the customer

4. Full filling customer's content (Belly-full)

5. Excellent value

We believe that these things will satisfy our customers and meet
they’re expectations.
Actual product

 Actual product of our business will be its brand name „Hang Out‟, features which will capable of gratifying a
particular customer need, unique design, packaging as per fast food outlets standard,
i.e. Paper and plastic on the go consumption and hygiene and healthy food for all sort of customers.

Augmented product
 
We will offer more than fast food to our customers. Like,
 
-Deliver food within a short span of time

-Update menu continuously

-Customers opinion about our services and products will be taken seriously

-100% hygiene and healthy (warranty)

-a special atmosphere
 Our product lists are below-
 
 Chicken Burger, Beef Burger, Veggie Burger
 Cheesy Pizza, BBQ Pizza, Veggie Pizza
 Sandwiches
 Chicken Fry
 French fry
 Drinks: Pepsi, 7up Fanta etc.
 Salad: Fruit, Vegetable
 Mojo
  
Brand name selection
 

Good brand names can be greatly a successive point for a product or a business. We select our Brand name Hangout and tagline
(Fast & Delicious) very carefully. Because, our target customers are mainly university and school students.

On the other hand Hangout name is easy to pronounce among the student, so this name can be recognized among them. Hangout
will be a distinctive brand name in Crater area as well as Aden city

Our brand name easily translate in every area in the world, although our market target is not worldwide but foreigner who come to
study in ASU, IUB so “Hangout” name brand can be easily famous among them .
 Managing brands
 
As a new fast food brand in Yemen we just start our business and trying to create brand loyalty among our targeted customer. we
don't know what will happen in the future. But we will manage our brand name Hangout through Advertising (when will be one of
the leading fast food brand in the local market).We will ask our customer for their experience when they eat our food and ask them
if we have any mistake when we serve the food items. If we will satisfy our targeted customer they will be our loyal customer and
finally they will share their experience to others about our better service.
 

Product pricing
 

Cost based
 
The customer's perception of value is an important determinant of the price charged. The danger of using low price as a
marketing tool is that the customer may feel that quality is being compromised. Hang out is a manufacturing fast food
restaurant. As a manufacturing company our food pricing will be “Cost based”. If we set our price based on value then we can't
earn profit as our target profit level. So we decided setting price based on the costs of producing, distributing and selling the
product a fair rate that a customer can satisfy. To run this business in future perfectly we should set price based on cost.
 Our fixed costs are-
 
1. Rent
2. Employees salaries
3. Restaurant operator license
4. Utilities

5. Food manufacturing equipment Variable cost-

6. Raw food
7. Salaries for extra staff during special event
8. Packaging cost
 
Besides cost based pricing we set our food price based on competitive price. As a local food restaurant we can't
only set food price based on cost because consumer will think it's not a fair price then they will be dissatisfied.
Hangout keep low price on all foods to compete with other local fast food restaurant.
 External factor that affects the pricing
 
Our external pricing consideration include the nature of the market, demand and environment factors
such as the-
1. Economic condition
2. Government actions
3. The market and demand
 
Economic condition
 
At the time of setting price we consider our local inflation rate, interest rate, racy and recession
condition of business. Our selected area is comfortable for this type of condition. In Crater area
people have high economic condition.
 
Government actions:
 
Government actions affect our price setting. Such as 15% VAT on food. Sometimes government
set the Raw materials, as results we need to buy that raw food from the farmers sets by
government .Political unrest also affect our price. Therefore we have to buy that product at a
high rate.

The market and demand:

 
In Crater road there are some fast food outlets and there is also a Pizza Hut. Besides, in Crater
road one of the largest shopping mall Aden Mall is situated. There are many local fast food
restaurants. So, the market is Monopolistic. We set our price very sensitively based on market
competitor too.
 
Internal factor
 

Our internal factors that affects our pricing-

 
Organization:
 
As a new and small food outlet, Owner of the Hangout decides what will be the food price because this
restaurant is local based and area is not so large.

Marketing strategy: As new competitor in a local market we are trying to attract new customer so we
decided to low the price and keep other promotional offer rather than other local fast food restaurant but
not at all products.

Image of the firm: Most of the time price setting depends on the organizational image. We are new in the
market so we don't have any previous image so that we can not set high price for the customer.
Product life cycle: During the introductory level we charge low price for attracting customer.
Marketing channel:

Place describes the channels Hangout uses to position its products in the marketplace. As a business-to-
Consumer Company, Hangout sells directly to its consumers.

Consumers
Manufacturer Direct market channel

Customer

Manufacturer

Raw
materials
suppliers
 
 Our Supply chain

 
 
As we know that Hangout is a local fast food restaurant so we want to sell our product directly to our
customers through our own Hangout outlet. We just buy chicken, bread & other materials from raw
materials suppliers‟ .Chicken from Saad chicken house, Bread from Rifat bakery.

Retail Outlet decision

 

Our targeted customer is young generation so we decided that our food outlet will be based on
Organizational approach (Chain store) and based on amount of service. We will open our outlet 6 days in
a week and our services will be full. When customer order their food our waiters will be ready to serve
those items effectively.
 As our outlet name is Hangout so Customer can enjoy the food with their friends in such a special atmosphere.
 
Transportation
 

We are serving our food only in Crater area. We kept an option for home delivery for our residential area's
customer within 30 minutes through our motorbikes by cash on delivery. we did not decided home delivery in
other parts of the Aden city right now.

Inventory management
 

Inventory management affects customer satisfaction. We are always maintaining food items based on
customer needs. We did not make too many or too little food in a day.
We make food based on customer demand and to be served immediately when needed.
 

Target Audience
 

We have targeted our audiences on the basis of our location. Crater is both a residential and educational area, our
target audience is the young generation, the students of schools and universities. Students always look for a place
to hang-out with their friends and our restaurant can be that place offering of delicious food & good services.

Communication Objective
 

We'll try to get the attention of our target audiences. We'll keep our promotional activities to our business area.
First, we'll inform them about our restaurant. For example through distributing Leaflets.

Then, we'll persuade our audiences to like our product through our promotional activities. For example, setup
stalls in ASU “Bazaar” and convince “Opinion Leaders” to spread the taste of our products. So that others may
refer us.

After that, we'll convince our target audiences to buy our products, make them believe that our products are the
best in the area .
Promotion Mix Strategy

We're new in business. So, our promotion mix strategy is not very costly. Our marketing mix strategies are –

Advertising: For advertising we'll use Leaflets to inform people about our restaurant products and services. We'll distribute the
Leaflets in the schools and universities of our business area.

Sales Promotion: To promote our sales we'll give some discount offers. For example, we'll give 10% discount on the actual
price of our product. Also, we'll give Price-Pack offers. That means if the customers buy a whole package of products they'll
get a discount price. We also intend to give small samples of products. If the customers buy a product they'll get a small sample
of another product. All these sales promotions will remain only for a certain period.

Public Relations: To build relations and communicate with our target audiences we won't hire any PR. We'll do it by ourselves.
Like, the inauguration news of our restaurant, we'll post it into our Facebook page and print Leaflets about it. To inform people
about our discount offers or any coupons we'll do the same thing. We'll also inform Opinion Leaders to spread the news about
our offers.
Personal Selling: For personal selling we'll setup stalls in the universities of our business area. For example, we'll setup a stall in the periodical
“ Bazaar” of ASU and demonstrate our products there and sell them
Conclusion

Hangout (fast and delicious) is not so big fast food restaurant as in the local market. There are many
renowned fast food restaurant like KFC, Pizza hut, FFC, BFC but right now we cannot compete
with them. We have shortage of capital that's why we can't afford too big mass media, promotion
offer and also can't target other people of our country. We will be new in Yemen so we have only
one branch because of shortage of capital. We believe we can give better service to the customer
that they can satisfy. Our wish that our restaurant will be a leading healthy fast food restaurant by
serving delicious food in a better way. If we success in this area we will open other branch in the
side of Aden city or maybe in a different city.
Appendix
 Our product list, category, description and pricing (approximately)
Chicken Burger (cheese, chicken, Personal 40/-
  chilies, tomatoes, Medium 70/-
  onions) Large 100/-
Beef Burger (cheese, beef, chilies, Personal 40 /-
  tomatoes, onions) Medium 70/-
    Large 100/-
Veggie Burger (cheese, vegetable, Personal 30 /-
  chilies, tomatoes, Medium 50/-
  onions) Family 70/-
Cheesy Pizza (cheese, chicken/beef, Personal 400/-
  chilies, tomatoes, Medium 700/-
  onions) Family 1000/-
Veggie Pizza (cheese, vegetable, Personal 300/-
  chilies, tomatoes, Medium 500/-
  onions) Family 700/-
BBQ Pizza (cheese, chicken/beef, Personal 400/-
  BBQ saucechilies, Medium 700/-
  tomatoes, onions) Family 1000/-
Sandwiches (cheese, chicken/beef, Grilled 200/-
  BBQ saucechilies, Sandwiches 150/-
  tomatoes, onions) Large Sandwiches  
Chicken fry (chilies, onions, flour) Wing 50/-
    Leg 70/-
    Breast 100/-
    Bucket 500/-
French fry potato Masala 100/-
    Grilled 150/-
Drinks   Pepsi (200 ml.) 15/-
  Fanta (200 ml.) 15/-