Nanyang Technological University Nanyang Business School AB112 Marketing Semester 1, AY 2010/2011

Marketing Case Study: Botak Jones Group Members: Wu Jingyi Estee (U1010286G) Tan Xuewen Nigel (U1010939L) Yeo Jia Wei (U1010652L) Shermine Yeo (U1010547G) Zhang Si Yuan Winston (U1011113J) Tutorial No.: Class Date & Time: Instructors Name: Team No.: Cell Phone No.: Word count:

17 Thursday 10.30am Prof. Wayne Kwan 03 81980820 / 81336078 1800 words

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TABLE OF CONTENTS
SYPNOSIS.... LESSON 1: DEVELOPING A CUSTOMER-DRIVEN MARKET STRATEGY... 1.1 1.2 1.3 Understanding the Marketplace and Customer Needs...... Market Segmentation and Target Marketing. Choosing a Value Proposition....... 3 4 4 4 5 5 5 5 6 6 6 7 7 8 9 9 9,10 10,11 11,12 13

1.3.1 Positioning. 1.3.2 Differentiation... 1.4 2.1 2.2 2.3 2.4 First-In Marketing Strategy............................... Product.......................... Price........................................... Place.............................. Promotion.. LESSON 2: EFFECTIVE MARKETING MIX.......

LESSON 3: CUSTOMER RELATIONSHIP MANAGEMENT.. RECOMMENDATIONS..... Reducing Clutter.... The Green Botak . MASSIVE WHOOPASS Challenge ..... Market for a Cause Hair For Hope. LIST OF REFERENCES

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Synopsis
Learning from his previous failure, Bernie Utchenik has expanded the 2003-born Botak Jones(BJ) to a total of twelve locations today. This achievement was possible as he was able to better understand customer needs and implement an effective marketing strategy. His vision coupled with his willingness to undertake business risks were the main reasons behind his success. Through fulfilling his promise of providing quality western food at affordable prices, Botak Jones slowly gained the trust and loyalty of its customers and was hence able to build up a strong established brand name for itself.

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Lesson 1: Developing a Market Strategy

1.1 Understanding the Marketplace and Customer Needs

Utchenik set up his first stall in Tuas because he could identify a need for good quality western meals when he realized that none of the canteens and coffee shops there were selling it, and foreigners were travelling out for it. In addition, he also saw an opportunity for expansion into the heartland areas when the stall started attracting customers outside of Tuas. *Lesson* Understanding customer needs is important in creating an effective market offering that addresses them.

1.2

Market Segmentation and Target Marketing

Utchenik inferred that since many foreigners working in Tuas would not choose local dishes, there might be a substantial proportion of consumers who would prefer high quality western meals. Hence, he identified Tuas as his first target market segment. In addition, Utchenik also realized that affordable western meals of fine quality were hardly available amongst common HDB estates. He felt there were many in the heartlands who might not mind paying slightly more for quality authentic western meals. Soon, they became Utcheniks second target segment and Botak Jones chain outlets were subsequently set up in the heartlands. *Lesson* Segmentation and targeting help companies to pinpoint opportunities emerging in the market and better cater to their customer needs.

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1.3

Choosing a Value Proposition

1.3.1 Positioning With reference to Botak Joness mission statement and tagline from the article, we infer that the company is positioning itself to give customers the highest standards of food quality at affordable prices. *Lesson* Positioning is essentially a promise from the company to the customer and should be clearly defined and established. 1.3.2 Differentiation BJ controls the food preparation process from start to finish, using only quality ingredients. In addition, they offer higher tiers of meat such as the USDA cuts at more affordable prices compared to restaurants. Moreover, side ingredients such as spice mixes and salad dressings are made by BJ themselves. This helps the company to offer its customers more affordable prices without sacrificing food quality. Botak Jones also has a catchy brand name which is easy to remember. *Lesson* To support their positioning, companies must have strong differentiation which will in turn lead to strong brand integrity. Differentiation will later be translated into the marketing mix.

1.4

First-in Marketing Strategy

By selling authentic western meals in Tuas and the heartland areas, Botak Jones was the first to create such a market offering for these particular target segments. Utcheniks ability to better understand customers needs coupled with his willingness to undertake business risks made Botak Jones a success. *Lesson* By penetrating and attracting target market segments before anyone else, companies can potentially create primary demand and successfully gain a large market share.

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Lesson 2: Effective Marketing Mix

2.1 Product

Utchenik stretches his product line to cater to people with varying income levels, from a $6 Botak Burger to a $22 Ribeye Steak. Besides, menu offerings like the mini-me and massive burger series provide customers with varying options on food portions. In addition, online feedback channels and catering services provided also help to further augment the product, hence proving Botak Joness desire to continually seek improvement in its product offerings. *Lesson* Product offerings should be improved and augmented in order to address the varying needs of customers within the target segment. 2.2 Price

Botak Jones practises Good Value Pricing by offering affordable prices without compromising on its food standards. The company is able to charge low prices due to its self-made side dishes and the low overhead rental costs of operating in a coffeeshop. Product line, product bundle and optional product pricing are also evident from the different product-price combinations and varying set-with-sides menu offerings. This variety of options serves to satisfy the various pricing needs of customers. *Lesson* Different pricing strategies help to maximize profit earnings as they charge varying product combinations at customers perceived value reasonably.

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2.3

Place

Most Botak Jones outlets are located in the common HDB estates. By bringing Botak Jones into the heartlands, customers would have increased accessibility to quality western meals otherwise unavailable in coffeeshops. *Lesson* Product accessibility and convenience are important factors in attracting and retaining customer value. 2.4 Promotion

Botak Jones currently advertises though its website and various social media platforms to increase customer intimacy. For example, in order to reach out to a larger potential market, a lunch sampling campaign was launched for high profile bloggers who would publish their reviews online after dining for free. Botak Jones uses sales promotion to attract customers attention. For example, Botak Jones offered an opening promotion of up to 50% off their meal at its Botak Joness Backyard at Dempsey. *Lesson: Customer satisfaction can be increased through reaching out to a wider audience and implementing effective product price promotion offerings.

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Lesson 3: Customer Relationship Management

Botak Jones uses a customer appreciation card scheme to reward customer loyalty with complementary food items. In addition, e-mails are sent regularly to customers to inform them about various promotions and also to gather feedback. *Lesson* In order to effectively attract and retain customers, companies should implement loyalty programs and feedback channels to maximize brand and customer equity.

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Recommendations
Despite being the first to penetrate the market, Botak Jones is facing increasing competition due to the lack of market barriers of entry. In addition, though the business might still be in the growth stage, it is slowly experiencing demand stagnation. Hence, our group has come up with a few recommendations to help Botak Jones ensure the continuance and growth of its business. Reducing Clutters First impression matters. Therefore, we recommend Botak Jones to reduce the clutter of signboards and notices at their individual stalls. This is because, customers may be overwhelmed by the myriad of information available and not read any of it, as a result skipping positive information about Botak Jones.

The GREEN Botak Local consumers are getting increasingly concerned about the efforts undertaken by companies to uphold and maintain good corporate social responsibility. Hence, we feel that Botak Jones should undertake more environmentally friendly efforts in its daily operations. Firstly, we propose to use recyclable paper wraps and bags for takeaway instead of the current styrofoam food boxes. In addition, Botak Jones can also offer a 5% discount to customers who bring their own containers to packet their takeaway orders. This new marketing initiative can be referred as B.Y.O.C (Bring Your Own Containers). Next, Botak Jones can also incorporate the use of more energy efficient kitchen appliances and cleaner technologies, i.e environmentally-friendly refrigerators, energy-saving lightings and the composting of food waste.

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Such marketing efforts would not only help Botak Jones gain a better reputation through its efforts to go green, they also help to generate positive publicity. These initiatives help to attract free media coverage through development under public relations and are cost-efficient in the long run.

MASSIVE WHOOPASS Challenge Botak Jones has been organizing the MASSIVE Burger Eating Contest over the past two years to encourage buzz marketing and generate public interest. Our group proposes for Botak Jones to implement a food challenge throughout its outlets on a daily basis. Under this new initiative, known as the MASSIVE WHOOPASS challenge, customers will be required to finish their food within a designated time. This can effectively help generate brand awareness and increase public interest. An example of a similar successful marketing campaign is the New York New York Giant Yankee Burger Challenge. Details of the MASSIVE WHOOPASS challenge are as follows: a) The MASSIVE WHOOPASS Set consists of 1 THE MASSIVE burger, 1 WHOOPASS cheese fries and 1 WHOOPASS soup. b) Botak Jones will set a designated time for the participants to complete the set. c) Participants who manage to complete the challenge receive a 50% discount off the meal and an exclusive Challenge Finisher T-shirt. d) The top ten fastest finishers of the set will also have their names displayed on the Hall of Fame board at the outlet. Since Botak Jones have always been known for their Massive food portions, it is especially apt to come up with this initiative which includes their trademark Massive and Whoopass dishes. In addition, the Finisher T-shirt and Hall of Fame provide customers who complete the challenge with an added sense of satisfaction and

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accomplishment, hence possibly generating buzz marketing via word of mouth and higher brand awareness.

*Limitation* Some might criticize and say that the challenge leads to potential food wastage and view it as an encouragement to binge eating. However, the challenge food portions are reasonable and it focuses more on the speed than the quantity consumed.

Market for a Cause Hair For Hope We propose for Botak Jones to collaborate with the Childrens Cancer Foundations project, Hair For Hope (HFH), presenting itself as a socially responsible company that undertakes efforts to care for the society. Specific Promotions in Collaboration with HFH: a) Present HFH participants with a 1-for-1 meal voucher at Botak Jones. b) Donate 2% of the companys profits to the HFH Fund.

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The HFH cause is chosen because of the noticeable link between the shaving of heads and Botak Jones. In addition, there is increasing awareness of the nonprofitable organization as it attracted a record-high 860 participants who shaved their heads within a single event back in July. Hence it will serve to improve the credibility of this particular societal marketing initiative as well. *Limitation* However, one must take note that HFH essentially displays the pains of losing hair during chemotherapy for the treatment of cancer. By linking the cause to burgers and fries, some may find this initiative inappropriate and offensive. Therefore, Botak Jones has to clearly present its business model as one that is socially responsible and one that understands the importance of helping the needy on top of making profits. To further achieve this, Botak Jones can play a more active role in supporting the cause. For example, customers can opt to top up $2 on their meal for a cup of yoghurt. All proceeds from the yoghurt sales will go to the HFH fund. This strategy is feasible and easy to implement; selling yogurt also encourages healthier eating and is hence more appropriate when viewed as a relation to the nonprofit cause.

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List Of References
1.

HAIR FOR HOPE 2010 MEDIA RELEASE

(www.ccf.org.sg/aboutus/press_articles/HfH2010MediaRelease.doc)
2

http://whatswhat.com.au/fashion/news-and-celebrity/alicias-

blog/2009/07/09_cotton_on_foundation.html 3. Botak Jones Website (www.botakjones.com)

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