Fast Food Marketing Report

Executive summary

Fast food industry is constructed of restaurants, hotels and eateries that offer quick service in regard to food and refreshments preparation. Likewise, the most restaurants mainly offer takeaway services for foodstuffs packed to customers. Junk food industry form one of the largest segments in the entire food industry. Development in this sub-segment has mainly been mentioned in the USA which has a record in excess of 200, 000 restaurants. The marketplace segment is continuing to grow from countrywide to international marketplaces with major players being companies such as Al Dinal foods and McDonald. Despite instability on energy and food prices, junk food market segments have prevailed over this obstacle with noticeable degrees of achievement mainly observed in the international chains. Industry break down has quite simply exhibited national, regional and international chains trend. International chains have been rated the best performer one of the three chains scheduled to emerging expansion that has propelled such marketplaces. Intentional junk food companies use various methods and techniques in guaranteeing larger customer platform. Most companies choose franchise methodology in carrying-out global businesses. This marketing statement, will illustrate the marketing strategies employed by fast food industry operating in a competitive environment based in Hong Kong.

External environment

Economic factors

Fast food industry suffer income decline scheduled to Transfer licensing need associated with NTB i. e. non-tariff Barriers on common imports to Hong Kong. In the same way, minimum import price ceilings impact industry success when Anti-dumping Work is implemented on industry's future international imports on major raw materials (Shaw & Onkvisit, 2004). Hong Kong is popular for the best quality food examples on the planet. Like other major places Hong Kong entrenches free market overall economy that is highly reliant on international money and trade, and consequently the city is subjected to inventible monetary turmoil that started out in fiscal 2008. Under monetary growth, junk food products may prosper better given the City's fast food reception capacity.

Competition forces

Al's Diner

Fast food industry is confronted with stiff competition mainly from Al's Diner fast food providers. Al Diner is very competitive as it functions several fast food restaurants, institutional wedding caterers services and lots of quick food casual dining bones. Al's Diner is also known for its niche in international restaurant chains including quality distribution chains which have recorded powerful internationally (Shaw & Onkvisit, 2004). As an integral competitor in junk food market, Al's Diner offers a variety of brands with much of its attractiveness associated with Bistro M and New Asia Dabao, which threatens other participators in the industry. Ability to reach higher market share requires specialty area on customer while acquiring fast food products that counter Al's Diner's brands. To be able to contend effectively with Al's Diner, fast food marketers must presents affordable cuisines variety, featuring both western and local likes.


As an international organization, McDonald has targeted both local and/or overseas market under its key brands such as Angus beef-burger, Hamburger Ruler and Premium Hen sandwiches which includes gained reputation in Hong Kong market. McDonald has been performing better in china market for the last couple of generations. McDonald has continued to be more competitive due to its ability to project and occupy junk food market share under effective franchise preparations (Shaw & Onkvisit, 2004). Similarly, McDonalds is known because of its environmental conservation concerns, which remain a subject of interest among many customers in regards to global warming concerns. In order counteract the result of McDonald, healthy dishes provision by junk food companies with higher consideration of fats contents decrease in our mainstream foods and addition of natural foods.

Other Forces

Socio-cultural Forces

The indigenous Hong Kong resident's display diverse customs, ideals, behaviors and recognized lifestyle which may create beneficial environment for fast food industry i. e. in group meetings, the elderly people are greeted first, and individuals are addressed using their titles and surnames. Such an aspect highly impact sales person's efforts or even junk food attendants wish to give a warm welcome to the customers. Entertainment is part of business functions, and business bargains or alliances are made in the restaurants where an 8-course food is availed (Shaw & Onkvisit, 2004). Similarly, appointments are created in advance and months like Chinese language New Year, Christmas or Easter should be avoided. When commencing business in Hong Kong, junk food products can be communicated to visiting clients in the key joint parts by issuing them with a name card or a business card. Lack of a card to switch with another person can lead to closure of your business.

Political Factors

The politics environment in Hong Kong influences food industry performance with view of success platform. From politics will, Hong Kong business people rarely feel the effects of financial turmoil owing to government involvement through special pain relief packages. For instance, in fiscal 2008 the federal government advanced about HK $11 Billion to individuals as an extraordinary measure to cushion the populace against hard economic times (Shaw & Onkvisit, 2004). By such an approach, fast food industry relishes high buying electric power from mainstream selections as the purchasing vitality of the population is assured. Currently, the city report few cases of protestations because the 1997 human rights demonstrations that practically drained major industry performance, with Fast food industry enduring more. Together with the addition of business areas in the city's 28 useful constituencies under the political framework in Hong Kong, success business procedures are always poised to sail-through. So, fast food industry reap the benefits of reassured business representations from politics top notch under the practical constituencies in the Electoral School.

Customer behavior: Demographic Factors

Ethnic Groups

Fast food industry targets the 94% Chinese language within the city, plus the minority 1. 8% Filipinos. That is achieved by providing Chinese cuisine under the key meals options. In the same way, the 1. 6% Indonesians plus other minority group at about 2. 2% by proportions, prove to be very vital ethnic groupings considered when offering various dishes options.

Age structure

According to research, junk food industry reaps more benefits from the 15-64 older consumers who constitute about 74. 6% of city habitants. The approach to life among this time composition is easily supervised by providing fast foods both western dishes and the original meals. This has been the nature of main restaurant players in the meals industry.


Within the Chinese community, the consumer's standards of living are changing with time driving a car the Hong Kong market to ready dishes. Hong Kong government has committed to growth approaches for ready dishes via creation of opportunities for junk food dealers. Similarly, improvements on innovations, formatting flavor trends for consumers and creation of consumer drivers is being executed. Business Insights group has been mandated with research of the consumer trends in fast foods market, thereby offering future expansion forecasts or opportunities. Fast food products therefore have a promising opportunity in acquiring food market share

Marketing Mix

Product positioning

In determination of the competitive positioning, things to consider is adhered in acquisition of a detailed picture of the prevailing junk food industry within Hong Kong. Pinpointing of areas of expansion and within the ready meal market is recommendable (Shaw & Onkvisit, 2004). While positioning, consideration of the market size and guarantee of equal circulation within the targeted areas improve proper coverage. Fast food products can be sold by sectors or type, and situated in an eye-catching manner. Also, the strategic positioning is usually where focus on consumers are focused and products are often accessible. For instance, next with an airport terminal or where shopping excursions are occasioned. Locations where complementing food products can be found can also provide a recommendable area. Likewise, possession of an elaborate view of the competitive environment, keenly figuring out the key players and the best brands


Fast food industry decides rates options among three options. First, fast food firm might use the cost-plus charges by first taking into consideration the total costs found during materials acquiring and price the brand services by supposing confirmed margin (Shaw & Onkvisit, 2004). Exactly like other industries, fast food industry players consider offering suited prices by analyzing the perceived bills incurred while availing the brand in the defined market. In Hong Kong this might suffer some stiff competition. Subsequently, fast food firms may choose to utilize market-oriented option. According to the current craze in pricing, junk food brands will prosper better in food industry by following market trend on the market. Internal business organ are used in gathering relevant information to assist in such decisions. Otherwise, in fast food industry a company could use availed studies from self-employed investigatory specialists that covers considerable period. Finally, the junk food business applies to penetration rates strategy as an effort to target locals. Here the basic consideration is to lower the price in anticipation of increasing market show at about 30% by concern.


Development of initial library containing home elevators the fast food industry, in-order to create alluring basis for junk food consumption's the mains focus. Regular associates online through e-mail marketing or cultural media are maintained on information transfer on junk food products to our consumers, upon release of the brand in the junk food industry. Frequent supply of fast dishes products is looked after giving the consumers thrills and power allowing for customer satisfaction (Shaw & Onkvisit, 2004). Supply of varieties of junk food products means that all the buyer categories are catered for. Despite the fact that consumers may be economically incapacitated, availing of affordable, quality and variety of ready dishes will raise the sales amounts as well. Information from a preexisting to a new customer can be exceeded though ways so that they can seek new customers' appeal. Junk food industry motives are on guaranteeing communication and information on our contribution in junk food provision will effectively reach all types of customers at a wider range. Industry website is of beneficial use to the consumers by permitting them to air their views, opinions and recommendations on junk food brands offered.


To facilitate circulation on food resource junk food industry partners with key marketers such as H. K, in order to reach out the Kowloon city and Victoria City. In permitting the junk food products to have a frequent source, reliable travel and circulation system are availed. That is gained by allowing franchise outlet stores as well as restaurant chains take on fast meal circulation activities. This is because fast food companies have to get over the task of well-timed delivery and goods in good shape (Shaw & Onkvisit, 2004). Industry website also allows consumers to make their purchases online and improve downloading of order applications, by making it more reliable acceleration and timely delivery. Increasing of the marketplace orders to consumers provide a larger market foundation, resulting into high gain in market talk about. Because of limited resources and proper financial management many companies on the market, specialize mainly in networking and advertising. Advertising campaign is done online through search engines to enable collection results in few days thus knowing the impact in our products to the market. After realizing good performance the firm may consider using outskirt stores in enhancing retail distribution to Hong Kong local people. Similarly, situations attendance is a core marketing intend to accomplish networking with potential consumers. Fast food industries are focused on submission to responses on calls to be loudspeakers in some of these events; this performs a good opportunity to market our products.


I would advise that the investor to travel for an international fast food chain other (such as McDonald), as opposed to the regional or national string because as illustrated by the study, the chains are definitely more competitive across culture. Furthermore, once the investment is performed I would recommend fast food firms to engage in product differentiation to endure the stiff competition on the market. Similarly, the trader should think about the firm's proceed to eliminate excess fat and cholesterol in the fast foods to ensure long-term continuity of the firm's success.


In conclusion, fast food industry is confronted with rapid growth resulting from globalization. Intense marketing through software of various marketing strategies enhances better performance by junk food firms functioning in a competitive market. Selective marketing with focus on international limitations is another factor important in development of sound marketing strategies. Efficient syndication through distribution stations and international partnering has been a successful strategy by fast food industries in HK.


Shaw, J. & Onkvisit, S. (2004). International marketing: research and strategy. New York, U. S. A. Routledge Publishers

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