Download Expansion Trend of Fast Food Franchises in Metro Manila

Expansion Trend of Fast Food Franchises in Metro Manila
Chen, Mei-Liang, Lecturer, Department of International Business,
Hsin Sheng College of Medical Care and Management, Taiwan
Chen, Kuang-Jung, Professor, Department of Business Administration,
Chihlee Institute of Technology, Taiwan
Liu, Chu-Mei, Department of International Trade, Tamkang University, Taiwan
ABSTRACT
This study of late 2009 analyzes fast food buying behavior in Metro Manila and compares and
contrasts the marketing’s four P’s of twelve fast food franchises.
Fast food franchises dominate the food
and beverage industry, and there are currently thirty-two thousand fast food restaurants in Metro Manila.
The most commonly used promotion tools of these restaurants are window dressing, free delivery, and
radio, TV, and flyer advertisings.
The success of Manila’s fast food industry lies in its standard
processes, limited menus, enhancement of values, speed, swift services, and distribution right.
industry has successfully changed most people’s daily habits in many big cities.
franchises are reluctant to develop in suburban areas.
Fast food
Nevertheless, fast food
Regarding this, there is still plenty of room for
fast food industry to expand in the Philippines.
Keywords: Fast Food Industry; Influence Behavior; Markets; Marketing Strategies
Filipinos are increasing into fast food, as the rapid expansion of fast food restaurants in Metro
Manila can prove that.
There are currently many newly opened fast food restaurants across Metro
Manila and other major cities in the Philippines.
Growth of population and changes in consumer
behavior has facilitated the prosperity of fast food industry.
In addition, influxes of population and
changes in lifestyles – such as preferences for leisure, convenience, and food-away-from-home, women’s
changing role in the society, and the urbanization of families – all contribute to the growth of fast food
industry.
Fast food industry builds upon two basic individual demands. From its model of franchise and
product concepts, fast food industry will continue to grow.
consumers’ dining habits have been changed.
Being exposed to media advertisement,
Furthermore, given the reasonable and affordable product
prices, the increasing number of white-collar workers – particularly white-collar women, whether single
or married, young or old – has boosted the demand for food service.
Therefore, fast food industry can
be said to develop upon the structural changes in working class and families.
Statistics indicates that there are currently thirty-two thousand fast food restaurants in Metro
Manila. However, the survey of consumer tendency in Metro Manila shows that profits of fast food
franchises depend on product consumption frequencies. Most fast food franchises create profits by
expanding branch stores. Obviously, there is still plenty of room for fast food industry to expand.
Therefore, it is necessary for managements to apply effective management strategies for promotion
programs. However, many enterprises are indifferent to whether or not advertisings or promotion
strategies will facilitate their sales performances, despite the fact that integrating product, price, place,
and promotion strategies into marketing mixes is a key process during decision-making. Given that fast
food franchises dominate the food and beverage industry, this study aims to analyze fast food buying
behavior in Metro Manila and compare and contrast the marketing’s four P’s of twelve fast food
franchises. The twelve fast food franchises here refer to MOS Burger, Tropical Hut, Shake, Pizza Hut,
Jollibee, Domino, McDonald’s , Wendy’s, KFC, Cindy’s, Burger King, and Subway.
THEORETICAL FRAMEWORK
This study carries out a thorough research on consumer behavior based on the theories of Hawkin et
al. (1983) in an attempt to propose effective marketing strategies and feasible guidelines for these
strategies. Hawkin et al. defined consumer lifestyle as a way of reflecting individuals’ self-images and
self-concepts. It is also an accumulation of previous experiences and future plans. Therefore, each
individual or family has his/her own unique lifestyle. Products can indeed maintain or change individual
or family lifestyles.
It is suggested that products should be evaluated based on their relationship with consumer
lifestyles. Therefore, managers should understand consumers’ lifestyles and factors affecting them.
Many marketing managers usually survey consumers’ demographic traits, but related data is insufficient.
Instead, studying consumers’ lifestyles can help marketing managers to realize that consumers are
individuals who have thinking and desires and that why consumers purchase certain products. In the
case proposed here, the couple who decides to eat out has to consider whom they are dining with. If
they are eating out with out-of-town relatives or special friends, they need to choose a restaurant with fine
atmosphere or special features. If they are going with their children, they need to choose a restaurant
suitable for families. Table 1 indicates selections of restaurants based on different situations, which refer
to the time or location in which the consumers use a product or service. These situations cover all
factors influencing the purchase and use of products but not just factors of marketing or service.
Table 1: Restaurant Selections based on Different Situations
Situations
Restaurant Selections
Situations
Restaurant Selections
My wife and I are going A restaurant with fine My father’s birthday is A restaurant serving
to celebrate our 20th atmosphere or features
in next week. He likes exotic cuisines
marriage anniversary,
to try something new, so
and our best friends are
I am going to surprising
coming, too.
him by taking him to an
exotic restaurant.
We are taking our kids A restaurant for families I can only squeeze out A fast food restaurant
to a restaurant. Hope
30 minutes from my
they will behave.
client visits. I am in a
rush.
Under different situations, consumers select different forms of products in the same category. Given
that different types of restaurants attract people in different situations, marketing managers can segment
markets based on consumer expectations. For instance, the beverage Gatro-Aid is designed to help
people who have just finished exercising to quench thirst, such as people who have just played tennis.
On the other hand, in a social occasion where beverages for diluting alcohol are required, 7up will do.
Marketing guru Kolter (2008) stated that to succeed in selling a product requires an effective and
complete marketing mix, which includes product or service selection, pricing, promotion tool selection,
and identifying the connection with consumers. He further pointed out that to achieve their goals,
marketing managers must understand the needs and demands of their target markets and create more
satisfactions for their consumers than their competitors. Giving considerations to consumer satisfactions
helps to make more feasible marketing plans. Figure 1 indicates the twelve fast food franchises’
marketing strategies of product, pricing, promotion, and place in an attempt to create stronger and more
positive consumer attitudes and behavior. It is essential for products to meet target consumers’ demands.
Given the ever-changing nature of the market environment, the process of matching products and
demands should be dynamic. Therefore, this study explores how fast food franchises apply marketing’s
four Ps to establish brand loyalty and increase market shares.
Figure 1: How Consumer Buying Behavior Influence Marketing’s Four Ps of Fast Food Franchises
Related Literature and Research
Enterprises make marketing strategies in an attempt to achieve sales goals and increase transactions.
Typically, the purpose of marketing strategies is to increase profits or consumption frequencies, such as to
make consumers frequently purchase certain products from certain stores. Such a purpose can be
fulfilled by applying marketing mixes to a selected target market. Understanding consumers is a key
factor in the making of marketing strategies. As indicated in Table 2, strategy-making always involves
in considerations of consumer behavior. For instance, a marketing manager must understand how
consumers perceive and feel about a competing brand, who purchase the competing brand and why, and
under what types of situations do consumers purchase and use products of the competing brands. These
are all questions must be asked and answered when analyzing sellers and buyers. Generally speaking,
the more you know your consumers, the more likely that you will work out a set of successful marketing
strategies.
Table 2: Question Samples Relevant to Marketing Strategies
Strategic Elements
Questions about Consumers
Segmentation
Who are our potential consumers for our product?
What product are the consumers using currently? What benefits do they expect
Product
from this product they are using?
What type of promotions should we resort to in an attempt to influence the
Promotion
consumers into buying and using our product? What type of advertisements can
maximize the effects for our product?
In an ever-changing target market, how important prices are to the consumers?
Price
How will changes in prices influence buying behavior?
Where do the consumers buy this product? Will different places (distribution
Place
channels) influence buying behavior?
According to Solomon, marketing managers can use product strategies to influence consumers in a
short-run and long-run. In the short run, new-product strategies should aim to draw consumers to the
products. Therefore, when introducing new products, a marketing manager should thoroughly consider
what influences the products have on consumers. S/he should also understand perceptions, behavior,
and environments of consumers and closely monitor product lifecycles. Tellis and Fornell specified that
the diversity of product features is the key to the success of products and brands. Strictly speaking, this
is not counted as one of the product features, but it too is important to the success of products and profits.
Tellis and Fornell also stated that brand image and symbol were often the only benefits provided by
enterprises. It is a very common situation because many product categories under the same brand
provide similar functions to consumers. In many cases, a good brand image is created by marketing
mixes. Creating a good brand image by means of promotions means to match promotions with positive
evaluations and create product attraction. Furthermore, promotions direct consumers’ attention to
certain product features so as to stress the superiority of the product involved. Many people know that
very few consumers can tell the differences in tastes among different brands of beers. In fact, many
consumers do not like the tastes of beers at the beginning, so beer makers instill into consumers’ minds
that their beers taste the best, or at least tell consumers that theirs are as good as those with higher prices.
Tellis and Fornell also indicated that pricing also helped to create brand images. Sometimes high
product prices imply high quality, and consumers accept the connection between prices and quality and
evaluate the quality of a brand based on prices. Lastly, Tellis and Fornell pointed out that diverse
distribution channels could also be used to gain benefits.
According to Ferrel (1989), businesspersons promote products not only to propagate, educate, or
entertain; most importantly, to escalate transactions. The long-run goal of promotions is to influence and
encourage consumers into accepting or using a product, service, or a concept. Promotions influence
potential customers into purchasing a product or increase purchase frequencies of current customers;
these together determine the ultimate outcome of promotions. Hussian (1991) conducted a research on
recent marketing strategies in food industry. His research revealed that promotions were what made
McDonald’s and Jollibee successful. Hussian discovered that the most frequently used promotions by
these two enterprises were window dressing, free delivery, radio, TV, and flyer advertising, and super deal
promotions. He also stated that advertising played a major role in expanding product market shares.
Del Mounte Philippines, Inc. was selected as one of Asia’s top six outstanding marketing
enterprises by World’s Executive Digest (1992). For over seventy years, this company has been
producing products by using corps from its own lands. Products with the brand name “Del Monte” are
very well-known in the market. In the environment featured with fierce competitions, Del Monte has
brought out many marketing issues, including:
1. New Product Development: In addition to introducing foreign crops to the domestic market, Del
Monte educates homemakers and develops new products to feed their needs. There is no product that
one can not find in categories of Del Monte.
2. Kitchenomics as a highly successful promotion activity: Through Kitchenomics, Del Monte provides
budget-friendly recipes to its consumers.
Kitchenomics Club was then established. Current it has one hundred and fifty thousand members,
and it has increased its customers to four hundred and fifty thousands by means of direct mail activities.
These efforts have produced more and more rewards to the company and had its sales quintupled in five
years, making its brand even more outstanding.
ASSUMPTIONS
Based on the following assumptions:
1. Fast food franchises usually apply marketing mixes related to marketing’s four Ps.
2. The success of a fast food franchise lies on the demands, desires, and buying behavior of consumers.
HYPOTHESES
The following hypotheses are proposed based on the theme of this study:
1. There is no significant difference between the two respondent groups in the following strategies used
by the fast food franchises:
(1) product strategy(2) pricing strategy(3) place strategy(4) promotion strategy
2. In the aspect of service provided, there is no significant difference in perceptions between consumers
and fast food staff.
3. There is no significant connection between consumers’ personal backgrounds and how much they
value the following qualities of fast food franchises:
(1) food quality (2) forms of service (3) employee etiquette (4) cleanness (5) consistency (6) menus
(7) environment (8) locations (9) prices
Scope and Limit of Research
This study surveys and confirms current marketing strategies used by twelve outstanding fast food
franchises in Metro Manila. These fast food franchises are MOS Burger, Tropical Hut, Shake, Pizza
Hut, Jollibee, Domino, McDonald’s, Wendy’s, KFC, Cindy’s, Burger King, and Subway. This study
covers SY2007-2008 and applies all changes in promotion tools. Additionally, the framework of this
study does not include marketing strategies made by the interviewed franchises. Specifically speaking,
this study attempts to analyze the twelve fast food franchises’ marketing strategies in products and
service, pricing, places, and promotions. This study aims to evaluate buying behavior in Metro Manila,
the Philippines, so this study surveys general Filipino consumers without specifying their locations,
incomes, or social status. The respondents are three hundred and four consumers and one hundred and
twenty-four staff of the twelve fast food franchises.
METHODOLOGY
This study adopts descriptive survey. According to Sanchez’s explanation, it is logical to survey
respondents in the twelve fast food franchises. Descriptive survey is a method used to obtain
information of a current prevailing phenomenon (this study selects several facts). Basically, this method
describes general characteristics of a population in an attempt to look for answers from facts in current
status quo. The respondents of this study are categorized into two groups: consumers and staff of the
twelve fast food franchises, which are Tropical Hut, Shake, Pizza Hut, Jollibee, McDonald’s, Wendy’s,
KFC, Cindy’s, MOS Burger, Burger King, Subway, and Domino.
Franchises
Shake
Cindy’s
MOS Burger
Domino
Pizza Hut
KFC
Jollibee
McDonald’s
Burger King
Subway
Wendy’s
Tropical Hut
Total
Table 3: Respondent Distribution
Consumers
Staff
No
%
No
%
25
8.2
10
8.1
25
8.2
10
8.1
25
8.2
10
8.1
25
8.2
10
8.1
26
8.5
11
8.8
26
8.5
11
8.8
25
8.2
10
8.1
26
8.5
11
8.8
26
8.5
11
8.8
25
8.2
10
8.1
25
8.2
10
8.1
25
8.2
10
8.1
304
100%
124
100%
Table 4: Respondent Information
Consumer（%）
Basic Information
Age:
Below (including) 25
26-35
Over (including) 36
Gender:
Male
Female
Marriage Status:
Single
Married
Educational Background:
Graduated from Senior High School
University Drop-out
Graduated from University
Graduated from Graduate School or Higher
Occupation:
Student
Total
No
35
35
35
35
37
37
35
37
37
35
35
35
428
%
8.2
8.2
8.2
8.2
8.6
8.6
8.2
8.6
8.6
8.2
8.2
8.2
100%
Staff（%）
53.0
40.0
7.0
39.6
38.4
22.0
27.0
73.0
47.0
53.0
82.0
18.0
38.0
62.0
27.0
23.0
36.0
14.0
21.7
5.3
55.0
18.0
50.0
─
Staff
Housekeeper
Other
Seniority
1-2 Years
3-4 Years
5-6 Years
25.0
18.0
7.0
─
─
─
─
─
─
41.2
46.3
12.5
The following methods were applied to gather data for further analyses:
1. Questionnaires: Two types of questionnaires were designed with one for the consumers and the other
aiming at the staff. The questionnaires were close-ended, meaning that each question came with
several possible answers for the respondents to choose from. With the pre-set range of choices,
respondents need not explain their answers. The questionnaires were pre-tested for suitability in fast
food restaurants. After the pre-test, the questionnaires were distributed to the respondents, and then a
one-on-one survey was carried out to correct the questionnaires.
2. Interviews: Unstructured interviews were carried out to further verify the staff’ concepts and ideas
about the marketing practices and strategies of their companies and to correct the misguided answers
in the questionnaires.
3. Observations: Managers of the franchises were requested to observe for a period of time how their
consumers selected food and how their staff served the consumers.
4. Documentations: Records of marketing trends and distribution channels were obtained from the
marketing departments of the fast food franchises.
Statistic Analyses
1. Percentage: the interviewed consumers were categorized based on genders, ages, marriage statuses,
nationalities, educational backgrounds, and occupations; the interviewed franchises were categorized
based on stock issue volumes, forms of ownership, nationalities, number of staff, and years of
operation. The information was listed based on the percentage of the categories.
2. Weighted Average: the results in the questionnaires were calculated with weighted average, which can
be explained with the concepts of numerical boundary values. The weighted average is indicated in
Table 5:
Table 5: Weighted Average
Average
Weighted
Description
4.51-5.00
5
Strongly Agree
3.51-4.50
4
Agree
2.51-3.50
3
Uncertain
1.51-2.50
2
Disagree
1.00-1.50
1
Strongly Disagree
3. t-test: t-test determined the perceptual differences in the four marketing elements (product, price,
place, promotion) between the two respondent groups. The obtained t-values were compared with
the critical values calculated based on the table. If a t-value was larger than its critical value, the null
hypothesis was rejected, and there was a significant difference between the two respondent groups.
If a t-value was smaller than its critical value, the null hypothesis was accepted, and there was no
significant difference between the two respondent groups. The comprehensive analysis of the
information produce the following findings:
Buying Behavior
Buying behavior at different aspects:
1. Buying frequencies: consumers occasionally go to the fast food restaurants during holidays or in other
special situations, but they frequently spend at fast food restaurants during weekdays and weekends.
2. Meals purchased: 37% of the consumers frequently purchase lunches or dinners from the fast food
restaurants. 73% also purchase snacks. 42% spend at the fast restaurants anytime during a day.
3. Dining locations: 62% of the consumers occasionally dine at the fast food restaurants. 43% take their
orders home. 66% dine at the restaurants and also take their orders home.
4. Companions: 52% of the consumers frequently go to the fast food restaurants with their friends, and
they occasionally dine with their families and relatives or alone at the restaurants.
5. The person in charge of ordering: usually it is the head of household who is in charge of ordering, but
sometimes his/her spouse or children place orders.
6. Reasons to choose fast food restaurants: the consumers spend at the fast food restaurants for six major
reasons. The first reason is “cozy air-conditioning”, the second is “sanitary food handling”, the third is
“fast service”, and the last is “playgrounds for children”.
7. Reasons to spend on fast food: 72% of the interviewed consumers spend on fast food when going out
with their families or friends. The second reason is they sometimes feel like having
food-away-from-home instead of cooking by themselves. Some spend at fast food for the nutritional
values it provides. Still some do it to treat their children in the name of celebrations. The last reason is
related to the change in women’s role.
8. Important features of the fast food restaurants: the consumers believe the most important feature is
“cleanness”, which is followed by “price”, “staff etiquette”, “dining environment of the restaurants”,
“food quality”, and “consistency”. However, the consumers do not care very much about the menus.
Marketing strategies
Strategies related to marketing’s four Ps:
1. Product
(1) The consumers agree that food sold by the fast food franchises is high quality, there are sufficient
food supplies or stocks provided by the franchises, the franchises provide well-designed packages
and offer conveniences, and that the franchises themselves have created values for their
promotions.
(2) The staff strongly agrees that there are sufficient food supplies or stocks provided by the
franchises, the production of the food is authorized by local or overseas companies, food sold by
the fast food franchises is high quality, and that the food is attractive to the consumers and
provides favorable nutritional values.
2. Price
(1) The consumers agree that the prices are consistent throughout all of the fast food branch stores,
the prices are easily affected by those of the competitors, the prices are reasonable, all product
prices are fixed, and that the prices are generally accepted in the market.
(2) The staff agrees that the prices fluctuate with their target markets, the prices are generally
accepted in the market, the franchises adjust prices based on the prediction of inflations, the
prices are consistent throughout all of the fast food branch stores, and that the fast food franchises
lower their costs and operate in the market with price reductions.
3. Place
(1) The consumers agree that the fast food franchises have their own efficient distribution channels,
which is a key for their marketing strategies. They also agree that the locations of the franchises
are close to their target markets and that the franchises plan their own operation areas.
(2) On the other hand, the staff agrees the most that the locations of the franchises are close to their
target markets. They also agree that the fast food franchises have their own efficient distribution
channels, which is a key for their marketing strategies.
4. Promotion
(1) The consumers agree the most that TV and radio advertisings are the most suitable promotion
tools. The fast food franchises’ advertising plans are effective in terms of raising the consumers’
awareness of the products.
(2) The staff agrees the most that the fast food franchises have powerful and effective promotion
strategies. They believe that TV advertising is the most suitable media in terms of advertising
service. They also believe radio and newspaper advertisings are suitable media.
PERCEPTIONS
1. There are significant differences in terms of the perceptions of marketing strategies.
Table 6: Perceptions of Marketing Strategies
Strategies
Product
Price
Place
Promotion
X
Consumers
3.875
3.432
3.971
4.132
Staff
4.032
4.537
4.871
4.621
Difference
0.921
0.838
0.746
0.421
t-value
Critical Value at 0.5
Significant
Level
11.935
10.232
8.356
2.017
2.131
2.134
2.237
2.167
0.5
0.5
0.5
.NS
In the aspect of product, there is a significant perceptual difference between the consumers and the
staff. In the aspect of price, there is a significant perceptual difference in pricing strategies between two
respondent groups. In the aspect of place, there is a significant perceptual difference between the
consumers and the staff. As for the aspect of promotion, the data indicates that the consumers pay much
attention to the franchises’ promotion strategies but less to other strategies.
2. The respondents’ perceptions of the franchises’ overall service
Service
Good Service
Immediate
Quotation
After-sales
Service
Free Delivery
Total Average
Cr=2.58
Table 7: Perceptions of Service
Consumers
Staff
Standard
Standard
Average( X )
Average( X )
Deviation (SD)
Deviation (SD)
3.82
0.59
0.46
t-value
14.21
3.63
0.64
0.43
15.42
3.41
0.85
0.46
13.53
3.83
3.67
0.63
0.47
12.53
4.61
4.67
Significance Level =0.01
Most of the consumers agree that the fast food franchises provide good delivery service; on the
contrary, the staff agrees the most that the franchises provide good service. Both the consumers and the
staff agree with the franchises’ abilities in supplying and quoting. The consumers give the lowest
evaluation to “after-sales service”, showing that they no longer require such a service when having the
fast food they order. The consumers agree that free delivery is a reason for good sales performance.
3. The connection between the consumers’ personal backgrounds and how much they value fast food
quality
How the consumers value the fast food quality is not influenced by their ages, genders, marriage
statuses, educational background, and occupations. Educational backgrounds and occupations affect
how the consumers value the forms of service, and ages, educational backgrounds, and occupations affect
how the consumers value staff attitudes and cleanness. Marriage statuses, educational backgrounds, and
occupations greatly affect how the consumers value the environment and locations of the restaurants.
Genders and educational backgrounds affect how the consumers value the prices, but not ages and
marriage statuses.
CONCLUSIONS
The conclusions of this study are as follows:
1. Demographic information alone is not enough to define buying behavior or to obtain sufficient data to
compete in the current market environment. Managers of the twelve fast food franchises use
demographic information and habits to define their markets. However, when trying to make the best
strategies, they need related information to better understand how their consumers perceive and feel
about their products and service.
2. Consumers and staff have positive opinions and attitudes towards the prospect of fast food industry in
Metro Manila. They believe it is reasonable for fast food industry to value consumer benefits, which
can be achieved by providing high quality products, convenient locations, good facilities, affordable
prices, and efficient service.
3. Staff usually has higher perceptions than consumers about product, price, and place of marketing
strategies of fast food industry. However, consumers and staff share similar perceptions about
promotion strategies, which is that advertising and personal selling are the most effective marketing
tools.
4. Consumers and staff both agree that the success of fast food industry can also be attributed to other
factors, such as standard processes, limited menus, enhancement of values, swift and effective
services. These factors are like catalysts to the promotions of fast food. They also agree with the fast
food franchises’ philosophy of serving with smiles, good sales performance, friendliness and modesty
and satisfying consumers’ demands with fast service.
5. The success of fast food industry in the Philippines can largely be attributed to the adoption of
franchise (distribution right). By the same token, the popularization of franchise (distribution right)
can also be attributed to fast food industry, which takes franchise as an important part of their growth
strategies.
6. Managements of the twelve fast food franchises believe there is an increasing need for specialized
food service equipment, which facilitates more efficient food production. For instance, specially
designed conveyor belts can service grilled burgers to consumers and in the mean time, process
pre-made pies; deep-fry pots equipped with filtration can effectively extend the oil use time. These
are only a few of the examples of food service equipment. Currently what the public requires the most
is high quality and healthier food containing more cellulose.
RECOMMENDATIONS
The recommendations of this study are as follows:
1. Fast food marketing managers must learn to discover the origin of demands from special use of
products or service. Given the variety of their lifestyles, consumers have different patterns of use of
products or service. Therefore, different situations will inevitable lead to different needs and
demands for specific products. Understanding these situations will help managers to realize that
under what circumstances their products or service is most likely to be needed by consumers.
2. Fast food marketing managers must apply “comprehensive management”, which uses precise
measurement, analytical skills, and strategic plans to deal with new pressures and complicated matters.
Managers must repeatedly review the effects of their marketing strategies and influence consumers
and staff into following their strategies.
3. Fast food marketing managers should develop specific strategies to increase the chance of having
consumers accept their information and products. There are three ways to achieve this goal: enhance
dissemination, maximize the chance of dissemination, and keep disseminating. Managers should
disseminate their information to their surroundings to increase the chance of approaching appropriate
targets. They also need to cautiously select good media mixes, such as magazines, billboards, and
TV, so that consumers are more likely to accept their advertisings.
4. To escalate their sales, fast food franchises should provide more beneficial and convenient facilities to
consumers and improve their service based on consumers’ needs. For example, the provision of
parking space, music, and air-conditioning can indeed attract consumers.
5. Pricing strategies are a must in a competitive market. Therefore, fast food franchises should provide
cash discounts to increase their sales. Furthermore, images that fast food franchises want to establish
should also be considered when deciding price standards for their food.
6. Fast food industry should rapidly switch their attention to new technologies. As competitions turn
fierce in fast food industry, marketing managers should make fast changes to suit consumers’ needs
before their competitors become aware of it. Managers must modernize their food preparation,
service, food technology, and distribution practices to allow their service become internationalized.
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