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qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvb nmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzx Amity Global Business School cvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghj klzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdf ghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopasdfghjklzxcbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwerty Effectiveness Of Integrated uiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqw Marketing Communication among ertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbn youth mqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbn (MOS Burgers) mqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxc Amity Global Business School vbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl zxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqw ertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbn mqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxc vbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjkl zxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfg hjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwerty 2 uiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqw

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ACKNOWLEDGEMENT
We would like to thank my project guide for guiding us through my summer internship and research project. His/her encouragement, time and effort are greatly appreciated. We would like to thank all the Faculty Guide, for supporting me during this project and providing me an opportunity to learn outside the class room. It was a truly wonderful learning experience. We would like to dedicate this project to my parents. Without their help and constant support this project would not have been possible. Lastly I would like to thank all the people who offered their opinions & helped me in completion of this project Once again my gratitude to the all the people who helped in the completion of the project report without whom this report wouldnt have been completed.

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DECLARATION
We students of BBA III year of AMITY GLOBAL BUSINESS SCHOOL hereby declare that the Research report entitled Effectiveness of integrated marketing communication channel among youth w.r.t MOS Burger is an original word and the same has not been submitted to any other institute for the award of any other degree.

Group Members Amrisha Verma Anshul Mangal Varidhi Chandra

CERTIFICATE FROM GUIDE & HEAD OF THE INSTITUTION

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Certified that this project entitled Effectiveness of integrated marketing communication

channel among youth w.r.t MOS Burger submitted in partial fulfillment for BBA Degree
from Amity University was carried out under the guidance of faculty guide. This has not been submitted to any other university or institution for the award of any degree/ diploma/ certificate.

Executive Summary
Background of Research

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The research on the topic effectiveness of marketing communication among youth w.r.t MOS Burger focuses upon knowing the most famous promotion mix channel among the youth in Singapore. The research also includes the understanding and comparison of different promotional mix channels and there degree of effectiveness among different age groups of youth population which has been divided into three segments. The research report also includes the suggestions and recommendations as to measure can be adopted by MOS burger d to increase its awareness among the youth population of Singapore and which promotion mix channels it can adopt to attract new customers so, that it can compete with the leading brands like McDonalds, Burger King etc. giving tough completion to MOS Burgers. The research is conducted on primary and secondary basis i.e. by interviewing and distributing questionnaires to the sample population and applying different statistical tools to get the results. Introduction to Promotion Mix In terms of the general perception of all of the marketing mix elements that a firm may employ, it is perhaps promotion that is the most prominent P in the 4 Ps. In fact to many people promotion is marketing. Promotion is a part of a firms overall effort to communicate with consumers and others about its product or service offering. Both the company and the consumer have needs which they aim to fulfill; the profit making company wishes to improve or maintain profits and market share, and gain a better reputation than its competitors, and the consumer aims to reach his or her personal goals. The total product offering allows each party to move towards these goals, offering a bundle of satisfactions which fulfill needs in an instrumental and a psychological sense. The phrase Marketing Communications is generally preferred to the term promotion, this term being reserved for a branch of communications called below-the-line sales promotion.

Objectives of the Research

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The objectives of the research report are as follows:
1. To understand the different channels of promotional mix. 2. To compare and analyze different channels of promotional mix 3. To find the most effectiveness Integrated Marketing Communication technique among the

youth in Singapore. 4. To find the promotional strategies used by MOS Burger competitors to attract customers. 5. To find the most effective promotional channel that could be used by MOS Burger to attract youth in Singapore.

Limitations
We had a limited time to complete this study in 2 months Limited financial resources to make our study covering best level of significance

Due to the limited resources we can only select a sample of 50 respondents Due to the limited time we cannot go to vast geographical area, our study is limited to the visitors of MOS burgers We were not able to measure the responses of all social classes because of limited resources. The research is confined to study of youth preference of promotional mix in Singapore. There existed a language barrier while communicating and interviewing people in Singapore as few of them were not able to understand English.
Reliability of information collected from various public information sources such as magazines and website. Respondents are not willing to fill the questionnaire. Very often the respondent do not express their true feelings, in such case their habit, preference, practice, cannot be assessed correctly.

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Conclusions

The maximum advertisements are watched on internet by the youth. Therefore in todays scenario Internet is considered as the best media to advertise as per the survey conducted Television can be considered as second most highly preferred media which highly appeals to the youth after internet. Television media can easily be reached to the target audience at every place at cheap prices. As the forecast sales for the burger are predicted to increase in coming years as reported in the report the company can advertise on comparatively high scale to attract more of young customers towards its product.

MOS burger are not able to capture the youth towards its product due to comparatively less promotional mix channels used by its competitors which uses all media channels such as billboard, television and radio etc to reach to its customers. Eg Mcdonalds The sound blend of all media mix can attract the customers towards the product by providing various promotional schemes such as special offers on festive seasons etc. and its doing heavy advertising As per the survey conducted most of the youth look for product information in the advertisement therefore the company should try to provide all necessary information as much as possible about the product

Recommendations
2

Amity Global Business School As per the survey conducted and the analysis done following were the recommendations that could help MOS to get an edge over its competitors The frequency of advertisements on internet and television should be increased by MOS Burger to get an edge over its competitors. Billboard and magazine is the another effective medium that can be adopted by the MOS Burger to reach maximum audiences. Discount and other special offers can be given by MOS burger to promote its product. Events can be organized by the company to improve upon the brand image of the company Sensible blend of promotion mix channels should be used to attract the customers like more of Internet and television media Advertisement on various blogs and social networking sites such as facebook can be given to attract the customers as per the survey it is highly used media.

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Table Of Contents
Topic Part 1 Introduction to the Project Chapter 1: Background of project Chapter 2: Objective of Study Chapter 3: Rationale of the report Chapter 4: Limitations Chapter 5: Research Methodology Chapter 6: Learning as a intern Part 2 Insurance and related Concepts Chapter 1: Insurance and overview Chapter 2: About reliance life Chapter 3: IRDA Chapter 4: III Part 3 Importance of operations in insurance Chapter 1: Introduction to Operations Chapter 2: Agency administration Chapter 3: New business
2

Page No
6 - 20

21 - 38

39 - 104

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Chapter 4: Finance Chapter 5: Policy servicing

Part 4 AML/KYC Guidelines Case Study Part 5 Conclusions Part 6 Recommendations

104 - 123

124 - 125 126 - 127

Chapter 1 Introduction to Research


2

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Background of the Research


The research on the topic effectiveness of marketing communication among youth w.r.t MOS Burger focuses upon knowing the most famous promotion mix channel among the youth in Singapore. The research also includes the understanding and comparison of different promotional mix channels and there degree of effectiveness among different age groups of youth population which has been divided into three segments. The research report also includes the suggestions and recommendations as to measure can be adopted by MOS burger d to increase its awareness among the youth population of Singapore and which promotion mix channels it can adopt to attract new customers so, that it can compete with the leading brands like McDonalds, Burger King etc. giving tough completion to MOS Burgers. The research is conducted on primary and secondary basis i.e. by interviewing and distributing

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questionnaires to the sample population and applying different statistical tools to get the results.

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Objectives of the Research

Objectives of the Research


The objectives of the research report are as follows:

To understand the different channels of promotional mix. To compare and analyze different channels of promotional mix To find the most effectiveness Integrated Marketing Communication technique among the youth in Singapore.

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To find the promotional strategies used by MOS Burger competitors to attract customers. To find the most effective promotional channel that could be used by MOS Burger to attract youth in Singapore.

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Limitations of the Research

Limitations
Any research or study always has some limitations under which this has to be undertaken. This one too was not an exception. These limitations are poised by the environment some external and some inherent. This study has been conducted with utmost consideration to the adequacy of data

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and quality of information, though as mention earlier the reliance on the sources can not be minimized to zero in context of precision. The limitation can be enlisted as hereunder:-

We had a limited time to complete this study in 2 months Limited financial resources to make our study covering best level of significance

Due to the limited resources we can only select a sample of 50 respondents Due to the limited time we cannot go to vast geographical area, our study is limited to the visitors of MOS burgers We were not able to measure the responses of all social classes because of limited resources. The research is confined to study of youth preference of promotional mix in Singapore. There existed a language barrier while communicating and interviewing people in Singapore as few of them were not able to understand English.
Reliability of information collected from various public information sources such as magazines and website. Respondents are not willing to fill the questionnaire. Very often the respondent do not express their true feelings, in such case their habit, preference, practice, cannot be assessed correctly.

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RESEARCH METHODOLOGY

Researchers Methodology include the tools and techniques of collection of data, this is applied particularly for testing the hypothesis. To begin with many generalizations are predicted on the basis of some facts. But theses generalizations can be untrue. Thus because of removing the faulty and

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wrong judgment so, researcher needs some sort of tools and techniques. The researchers do not and cannot proceed to verify the facts without techniques of the research. He selects his limited universe, draws sample, and uses schedule and other standardized tools for observation. Here in accordance with the procedure he is supposed to conduct his research without bias. So likewise he is supposed to support his hypothesis but works with these tools and techniques, which save the researcher to be biased. The hypothesis may be accepted or rejected with the support of data. With the aim of this view the researchers explains tools and techniques, which they applied to research. TYPES OF RESEARCH On the basis of fundamental objectives of the research, marketing research projects are classified into two branches: Exploratory Research Conclusive Research

EXPLORATORY RESEARCH: It seeks to discover new relationships. All marketing research projects start with it. This is a preliminary phase & is absolutely essential in order to obtain a proper definition of problems at hand. The major emphasis is on the discovery of ideas & insight.
Exploratory research looks for hypothesis in well-established fields of study. Hypothesis usually comes from ideas developed in previous researches or are delivered from theory. Hypothesis is tentative answer to the question that serves as guide for most of the research projects.

CONCLUSIVE RESEARCH:

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Conclusive research provides information that helps the executive so that he can make a rational decision. This study has done well while attempting to arrive at a more clear description of an apparent problem.

Universe: To define it for the preliminary measures It is a set of individuals constitutes a population or universe. According to this definition a research cannot proceed without a set of individuals. So likewise we selected the Karachi city as our universe. Sampling Plan The term sampling plan implies to the procedure to delimit the universe and to take the representative units. Gender Both male and female Sample Size Our sample size consists of 50 respondents. Data collection procedure For the collection of data we personally went to the respondents and requested them to fill the questionnaire. Data collection technique

Primary data: Which is collected by new research called primary data.


Personal Interview Close observation Group Discussion

Secondary data: 2

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Already existing data is called secondary data. I collected them by following method
Internet Books

Interviewing Schedule: A tentative schedule of the questions was formulated. The pre-testing was done deliberately to measure the attitude of the people concerned.

Data Interpretation Tools: Following softwares have been used during analysis of data. 1. SPSS 2. Microsoft Excel 3. Microsoft Word

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Literature Review

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Mc Donalds: IM LOVIN IT CAMPAIGN


Overview
BY 2003 after nearly 50 years as the king of fast food McDonalds Corporation was suffering an identity crisis. As the time magazine reported, the challenges facing McDonalds come supersized. Its home market is all but saturated its sterling reputation for fast, friendly service and cleanliness is tarnished and customers are putting a growing premium on freshness and taste, neither of which Mc Donalds is renowned for. In addition, the company revenues were shrinking and its earning expectations for 2002. To reconnect with customers the company planned remodeling projects in more than half of its U.S stores, It revamped its menu offerings to include healthier choices and to build brand identity it launched a worldwide marketing campaign, Im Lovin It featuring singer Justin Timberlake. Developing the campaign was the joined effort by Mc Donalds and ad agency DDB Chicago and a German based agency Heye & Partner, a division of DDB worldwide. The campaign featured five television commercials with appearances by Timberlake that focused on the adult market. There were other spots created to maintain the emotional connection Mc Donalds brand has with families and Kids. In addition to the television spots the campaign included window posters, signs on outdoor poles and special kiosks Advertising age estimated total budget to be $ 100 Million.

Historical Context
As Mc donalds celebrated it 50th anniversary in 2005 the company also could celebrate maintaining its lead in the fast food burger race. According to PR Newswire the company had grown from one restaurant in des plaines Illinois to more than 30000 restaurants most independently owned and operated that served almost 47 million people in more than 100 countries everyday. In a 2002 time magazine article Daniel Eisenberg wrote, McDonalds opens a new store somewhere around the globe every eight hours Sales has climbed from $ 366.12 on opening day at the first restaurant to more than $19 billion in 2004. In response to competition from other fast food chains such as number two Burger king and a crowded restaurant market that offered consumers upscale fast casual dinning options. McDonalds went on a mission to win customers to revitalize its business. Eisenberg reported that the company planned to bulldoze as many as 1000 of its aging restaurants and give face lifts to about 6000 others. Remodeling more than half its 13099 US restaurants which could cost the company as much as $800million over the next two years. Greenbergs plans included rolling out a dollar value menu for price conscious customers, adding healthier choices to the menu and developing new restaurant formats.

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Among other changes was the launch of Im Lovin it Campaign designed to work in all languages and to dispel to chains image as a fading icon portraying it as forever young.

Target Market
According to Carpenter the Im Lovin it campaign was designed to attract younger and hipper consumers. Its aimed at helping the restaurant chain connect better with customers especially young adults moms and kids. He reported McDonalds chief marketing officer as saying ,we know we need to be more modern and more relevant in how we communicate with todays consumers. Charlie Bell the company chief operating officer added that, besides appealing to young consumers, the campaign would be fun itll be relevant, itll be hip, itll be compelling and it will connect people of all ages. Rance Crain writing in advertising age said that McDonalds all-or-nothing bet on the youth market was a risk. Referring to an ad featuring a cameo by singer Timberlake, Crain wrote, I think I can say without fear of contradiction that the commercial is off putting to most of the non-target market.If it doesnt register with kids, the corporate campaign could have a negative impact overall, and McDonalds will have spent $100 million for the privilege of alienating vast swatches of its customers.

Competition
As the Evansville Courier & Press reported, McDonalds and burger king have been going burger-to-burger for more than 30 years, with Wendys and smaller companies also fighting for consumers heart and appetite. Faced with its own declining sales and with competitor MacDonalds increasing its sales, explained in part by its Im lovin it campaign, number two burger king launched the counter back in the burger wars with the reintroduction of its popular have it your way slogan and with its lunch break Gang television ads which featured group of 20-something coworkers ordering lunch their way. The burger king campaign did not have strong positive results with the consumers, however with USA Today reporting that only 14% of those familiar with the ads liked them and thought they were effective while 30% of the people polled said they did not like the ad Nevertheless the burger king campaign won the silver award at the 2004 Cannes Lions and a Bronze Award at the Clios. More importantly the campaign had a positive effect on Burger Kings sales with increases reported 10 consecutive months following its launch in February 2004.

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As the PR Newswire observed the Im Lovin it campaign was a key part Mc Donalds business strategy to connect with consumers in highly relevant culturally significant ways around the world. Part of the strategy was to shoot the Im Lovin it commercials in various locations worldwide. Jim Krik reported in Chicago Tribune that filming was done in Prague in Czech Republic. Rio de Janerio in Brazil Johannesberg in South Africa, Singapore and other international locations. The high energy launch in the US is the further proof that this global campaign is far more than just advertising or a new theme line stated by vice president Larry light. It is multidimensional approach to customers around the world that goes from television sets and computers to our restaurants ..And everything in between. Mike Roberts president of Mc Donalds USA told PR Newswire that the theme and attitude of this full scale campaign is being integrated into every aspect of business.from crew training and overall restaurant experience to national sponsorships, promotions and all new local street market. He added that the company was focused on bringing the Im Lovin it theme of life not only in our advertising but also for every customer who visits our restaurant. This world class marketing strategy is the latest element of our overall plan to continue revitalizing Mc Donalds.

Outcome
If success can be measured by awards recognition and increased sales Mc Donalds Im Lovin it campaign hit the jackpot. In 2004 Advertising Age named the company marketer of the year for its achievements. In response to the award Jim skinner McDonalds new CEO said Im lovin it! Were honored to be recognized with one of the most covered awards in the advertising and marketing world. McDonalds light said that awareness of the Im lovin it campaign reached 86% of consumers in the top 10 countries tagged by the company. The Success of the campaign was another sign that were connecting with customers like never before, he said Noting the international success of the campaign the Scottish Daily Record & Sunday in Glasgow reported that McDonalds advertising slogan Im Lovin it has been crowned king of the catchphrases. The fast food giants jingle is being repeated in 43% of workplaces says a new survey. The Cincinnati Past wrote in November 2003,the biggest single month increase at its US restaurants in more than five years lifted McDonalds Corp. to an impressive 8.4 percent gain in comparable sales last month[the Company] attributed the increased business in part to benefits of the first full month of its exhaustive new advertising campaign, featuring the tagline Im lovin it. In addition the newspaper noted the sales in France Germany and Britain the companys three biggest European markets also showed increases over the previous year.

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Burger King Have It Your Way


Campaign: Burger King Subservient Chicken Product: Burger King Tender Crisp Sandwich Year: 2004 Agency: Crispin Porter + Bogusky Media Circulated: In store posters, TV Broadcast, Magazines, Live Appearances Concept: We launched the Burger King Tender Crisp Sandwich within the Have It Your Way brand message. To show how customers really can have it their way with chicken, we created a large subservient chicken that does almost anything anyone asks. Type commands, and tell the chicken what to do. The chicken much like the sandwich satisfies everyones personal tastes & preferences, no matter how unique. Results: 15 million hits the first 5 days. Word spread completely virally. Once the site and chicken were seeded mainstream we added more branding, commercials and easter egg commands to keep people talking & passing the site around. now with over 400 million hits to subservient chicken & a significant increase in chicken sales that can be directly linked to the success of the site- this site has

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showed how successful an advertiser can be when they entertain & let people discover the message & brand.

Chapter 2 What is Integrated Marketing Communication?


2

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Introduction to Promotion Mix In terms of the general perception of all of the marketing mix elements that a firm may employ, it is perhaps promotion that is the most prominent P in the 4 Ps. In fact to many people promotion is marketing. Promotion is a part of a firms overall effort to communicate with consumers and others about its product or service offering. Both the company and the consumer have needs which they aim to fulfill; the profit making company wishes to improve or maintain profits and market share, and gain a better reputation than its competitors, and the consumer aims to reach his or her personal goals. The total product offering allows each party to move towards these goals, offering a bundle of satisfactions which fulfill needs in an instrumental and a psychological sense. The phrase Marketing Communications is generally preferred to the term promotion, this term being reserved for a branch of communications called below-the-line sales promotion. Promotion or Marketing Communication In a sense all marketing communication activity is a form of promotion, that is in one way or another is attempting to promote

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the interest of the brand, product range and/or company. What differentiates above the line activity from below the line activity is a somewhat arbitrary division. There is no universally accepted definition of either. Below the line activity is loosely classed as nonmedia advertising. Basically if an advertisement is submitted to a publication and a commission is paid to the advertising agency to feature the piece then this is deemed to be above the line communication. If no commission has been paid, for example in the case of a public relations press release, a trade exhibition or a sponsored sports event, this is referred to as below the line activity. This distinction is accepted by most and is the distinction adopted here.

Real and implied product attributes The role of marketing communications is to communicate the benefits of the product, service or firm to potential consumers and indeed the same process is undertaken in not for profit situations like political parties. The benefits marketing communicators try to convey can be real although many of attributes are implied through association or suggestion. This has been described as a total bundle of attributes that the consumer perceives in a holistic manner. In other words, consumers see the product or service offering as a unified whole, rather than a bundle of separate component parts such as its price, packaging, shape and so on. In this way, marketing communications conveys the meaning of the companys total product offering, helping consumers attain their goals and moving the company closer to its own goals. Many products, particularly in the fast moving consumer goods (FMCG) category, are very similar to

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other products in their class. For example margarines are basically similar no matter what brand is selected, and the same goes for many fmcg products. In times of shortage, such as during the war years, goods were treated as homogenous commodities, and basically soap was soap! In less developed countries the same is true today. From the study of buyer behaviour it was noted that Maslow described the different needs of human beings as being hierarchical in nature. At the bottom of the pyramid physiological needs such as hunger and thirst are of primary concern to the individual, almost to the exclusion in fact of anything else. Marketers can make use of this phenomenon and this can be witnessed in advertising soft drinks such as Coca Cola or fast food such as Burger King, McDonalds or KFC. Only when these basic, but important, physiological needs are satisfied will the individual turn his or her attention to the next category of need in the hierarchy. Their next need is safety and that of their family. In modern society these needs are reflected in goods and services such as burglar alarms, car locks and alarms, double glazing, external lighting, insurance, saving schemes etc. Marketers use the motive of fear in order to market such products. Thereafter loftier concerns assume more importance. People need to feel part of a group, appreciated by others and have the opportunity to both give and receive love. Fashion items like perfume, supporting the same pop group or sports team are all examples of how marketing uses social needs to sell products and services. Esteem needs can be translated into products and services through high status marquee cars, designer clothes or expensive holidays. Finally we reach the higher order need of self-actualisation. Only in very wealthy countries is it possible to have large sections in this category. The best example here is probably in California, especially in cities such as San Francisco where people can indulge in a variety of alternative life styles. Books by self help gurus, health supplements exercise videos are examples of products aimed at this motive.

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The marketing communications mix Promotion describes the communications activities of advertising, personal selling, sales promotion and publicity/public relations. Advertising is a non-personal form of mass communication, paid for by an identified sponsor. Personal selling involves a seller attempting to persuade a potential buyer to make a purchase. Sales promotion encompasses short-term activities such as giving coupons, free

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samples, etc. that encourage quick action by buyers. The company has control over these three variables, but has little control over the fourth variable, publicity/public relations. This is another nonpersonal communication method that reaches a large number of people, but it is not paid for by the company and is usually in the form of news or editorial comment regarding a companys product or service. Companies can gain some control over the publicity it receives by the release of news items. Put together, these promotional activities make up the promotional or communications mix with varying emphasis on each element according to the type of product or service, characteristics of consumers and company resources. Company size, competitive strengths and weaknesses and style of management all influence the promotional mix. Other communications elements with which promotion must be coordinated are the product itself, price and distribution channels used. Product communication, including brand name, design of packaging and trade-marks are all product cues which convey a message about the total product offering. Price can communicate different things under varying circumstances, for instance conveying prestige appeal for those buyers who perceive that a high price is equal to quality and prestige. The place in which the products are to be found also has notable communications value. Retail stores have personalities that consumers associate with the products they sell. Products receive a halo effect from the outlets in which they can be found and two stores selling similar products can project entirely different product images. For example, a perfume sold through an upmarket store will have a much higher quality image than one sold through supermarkets

The Marketing Communications Process

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Effective communication means effective marketing. Buyers perceptions of market offerings are influenced by the amount and type of information they receive as well as their reaction to that information. There must be a good flow of information between seller and buyer to assist decision-making that precedes a purchase. An effective marketing communications system also allows feedback from the consumer to the seller. Some people have a psychological predisposition to buy products and services that are new to the market. This predisposition can be modeled with the use of a normal distribution. Certain people derive a great deal of pleasure from acquiring new products and being first in the market. Such people have a low level of perceived risk and in fact they positively like the risk and excitement associated with the purchase of new, innovative products. These people are referred to as innovators and, according to Everett Rogers account for about 2.5 % of the population. The next group of people displaying a tendency to buy new products are known as early adopters and account for approximately 13.5 % of the market. These are still highly adventurous purchasers and the possession of innovative new products gives them a high present value. They still have a low level of perceived risk but are slightly more risk adverse than the innovator category. The next two groups, Early Majority and Late Majority account for the bulk of the potential market, 64% in all. Most people fall in to one of these categories. Finally the Laggards are people who are not really infested in new product development and tend to purchase products only when their old product is worn out and stops working. This theme is returned to later under product issues. A key question for the marketing communicator is: Are the innovators and early adopters also opinion leaders? The majority of potential customers are too risk adverse or too disinterested to be first in the market for an innovation. They are largely unaffected by the media communication about the innovation. Instead, they are influenced by people that they know who they regard as opinion leaders. Although some individuals my be innovators for many products and services, it is more likely that they will be classified as such for a limited range of products. For example a computer
2

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enthusiast may be regarded as a innovator for new computer products. Similarly, someone who is interested in photography may be regarded as opinion leaders in relation to this product but not others. A new brand of toothpaste containing baking soda is not really that new to people; after all, it is still just toothpaste. A vacuum cleaner for your garden is on the other hand quite a radical innovation. These products have recently come on to the market although most people, even keen gardeners seem a little unsure as to whether they should buy one or not. If these products are good, then the message will soon circulate by word of mouth and soon most households will own one, just as most own a lawn mower or a lawn edger and indeed these latter products were considered to be a radical innovation only a few years ago. Marketing related messages. Marketing communications can be defined as the process of: 1. presenting an integrated set of stimuli to a market target with the aim of raising a desired set of responses within that market target; 2. setting up channels to receive, interpret and act on messages from the market to modify present company messages and identify new communications opportunities. As both a sender and a receiver of market-related messages, a company can influence customers to buy its brands in order to make profit. At the same time it can stay in touch with its market so that it can adjust to changing market conditions and take advantage of new communications opportunities. The source of the message Receivers of a message are often greatly influenced by the nature of its source. If an audience perceives a communicator as credible, then they will be more likely to accept his or her views. If, on the other hand, the audience believes that the communicator has underlying

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motives, particularly ones of personal gain, then he or she will be less persuasive than someone the audience perceives as being objective. Some advertisers use candid television interviews with homemakers in order to enhance their credibility and eliminate intent to persuade, sometimes asking consumers to explain why they buy a particular brand or asking them to trade their chosen brand for another. Another method used by companies to increase credibility is to have the product endorsed by an expert with appropriate education and knowledge on a given subject. This source will be more successful in changing audience opinions. Specialized sources of information are often perceived as expert sources, and are successful due to the fact that messages are aimed at selected audiences, for example the use of sports professionals as promoters for brands. The credibility of a source is also a function of its perceived status or prestige. The higher the perceived status of a source, the more persuasive it will be. If a receiver likes a source, it will be more persuasive. It is clear that age, sex, dress, mannerisms, accent and voice inflection all affect source credibility and subtly influence the way an audience judges a communicator and his/her message. A source high in credibility can change the opinion of receivers, but available evidence suggests that this influence disperses in a short time after the message is received. It has also been observed that where an audience initially receives a message from a low-credibility source, their opinion change increases over time in the direction promoted by the source. This is referred to as the sleeper effect. Another aspect of this is that when a high-credibility source is reinstated, for example by a repeat advertisement, it has been found that audience agreement with the source is higher after a period of time than if the source had not been reinstated. For a low-credibility source, reinstatement results in less agreement with the source than with no reinstatement, and it is said that under these circumstances reinstatement negates the sleeper effect.

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Media Advertising Media advertising communicates information to a large number of recipients, paid for by a sponsor. It has three main aims: 1. To impart information 2. To develop attitudes 3. To induce action beneficial to the advertiser (generally the purchase of a product or service). An advertisement for washing powder is paid for by the manufacturer to achieve greater sales; a party political broadcast aims to increase votes. It must be remembered that advertising is only one element of the communications mix, but it does perform certain parts of the communicating task faster and with greater economy and volume than other means. How large a part advertising plays depends on the nature of the product and its frequency of purchase. It contributes the greatest part when: 1. Buyer awareness of the product is low 2. Industry sales are rising rather than remaining stable or declining

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3. 4. 5. 6. The product has features which are not obvious to the buyer The opportunities for product differentiation are strong Discretionary incomes are high A new product or new service idea is being introduced.

Advertising models These have been drawn from several sources, particularly psychology, and from advertising practitioners in order to explain how advertising works. The stimulus/response formula This was used at first, later models taking into consideration the environment in which the decision to buy is made. Daniel Starch said in 1925 for an advertisement to be successful it must be seen, must be read, must be believed, must be remembered and must be acted upon. This model assumed that the advertisement is the main influence on the state of mind of the consumer in respect of the product and makes no allowance for combined or multiple effects of advertisements. The DAGMAR philosophy Colleys DAGMAR model in 1961 (Defining Advertising Goals for Measured Advertising Results) allows for the cumulative impact of

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advertisements and also maps out the states of mind consumers pass through: 1. 2. 3. 4. From unawareness to awareness; to comprehension; to conviction; to action.

This is described as the marketing communications spectrum. Advertising, along with promotion, personal selling, publicity, price, packaging and distribution, move the consumer through the various levels of the spectrum as follows: Unawareness/awareness The advertisement tries to make potential customers aware of the products existence. Comprehension The customer recognizes the brand name and trademark and also knows what the product is and what it does; knowledge gained from the advertisement or from an information search prompted by it. Conviction The customer has a firm attitude, preferring a particular brand over all others. Preferences may have an emotional rather than rational basis. Action Some move is made towards purchase, thus the advertisement has been acted upon. This illustrates the concept that the purpose of advertising is to cause a change of mind leading toward purchase, but it is rare for a single advertisement to have the power to move a prospect from complete unawareness to action. Effectiveness is judged by how far an advertisement moves people along the spectrum. The Lavidge and Steiner model This consists of a hierarchical sequence of events on six levels: 1. Awareness 2. Knowledge
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3. 4. 5. 6. Liking Preference Conviction Purchase

These steps divide behaviour into three dimensions: cognitive (the first two), affective (the second two) and motivational (the third two). Although this differs from the DAGMAR model in the number and nature of stages, there is agreement that purchase is the result of the persuasion elements, making the assumption between changes in knowledge and attitude towards a product and changes in buying behaviour there is a predictable outcome. Dissonance theory, however, illustrates a two-way relationship, with behaviour influencing attitudes as well as attitudes influencing behaviour. After making a decision to purchase, the prospect will be involved in cognitive dissonance and will actively seek information to reinforce the decision, focusing on attractive features and filtering out unfavourable data. The major implication of this is that advertising for existing brands in the repeat purchase market should be aimed at existing users to reassure them in the continuation of the buying habit at the expense of the competition.

The Unique Selling Proposition This was developed by Rosser Reeves (1961) who reported the principles his agency had adopted for 30 years. This states that the consumer remembers one key element of an advertisement - a strong claim or concept. This proposition must be one that the competition does not offer, which will be recalled by the consumer and will result in purchase at the appropriate time. The brand-image school This was led by advertising practitioner David Ogilvy who focused on non-verbal methods of communication to invest a brand with
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agreeable connotations aside from its actual properties in use, such as prestige and quality. It must be remembered that an advertisement is the channel through which the sponsor communicates their message. The encoded message reaches recipients, through advertising or salespeople, who then decode and absorb it either fully or partly. The quality of the transmission can be distorted by noise occurring because the receiver does not interpret the message in the way the source intended (due perhaps to differences in cultural backgrounds of the two parties). It may however be because of cognitive dissonance which occurs when peoples receipt of the message does not agree with what they previously believed. Dissonance may cause a number of different reactions by the receiver: 1. 2. 3. 4. Rejecting the message Ignoring the message Altering the previous opinion Searching for justifications

The first two reactions are of course negative, and from this feedback the source may change the message or stop communicating altogether with a particular receiver who is not receptive to the sources ideas. It can, therefore, be seen that advertising does not always convert people into users of a particular product. It can, however, have a positive effect in preventing loss of users, and increasing their loyalty.

Advertising by objectives Advertising situations are so varied and unique that it is not possible to generalize about how advertising works. Any potential advertiser should therefore adopt an advertising-by-objectives approach that will make clear what they are trying to achieve, how they will achieve it and how they are going to measure its effects.

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Few companies give any detailed scientific thought to exactly what they are trying to achieve through advertising. Clear objectives are needed to aid operational decisions, which include:

The amount to be spent on a particular campaign The content and presentation of the advertisement The most appropriate media The frequency of display of advertisements or campaigns Any special geographical weighting of effort The best methods of evaluating the effects of the advertising.

Corkindale and Kennedy (1976) found that systematically setting and evaluating objectives provided the following benefits. 1. Marketing management has to consider and define in advance what each element in the programme is expected to accomplish. 2. An information system can be set up to monitor ongoing performance, with the nature of information required clearly defined. 3. Marketing management will learn about the system it is operating from accumulated experience of success (and failure) and can use this knowledge to improve future performance. Majaros (1970) major study on objective setting revealed that most managers saw increasing sales or market share as their main advertising objective. In fact, this is a total marketing objective and it is unreasonable to expect to achieve this objective through advertising alone (unless it was the only element of the marketing mix used, as in direct mail and mail order businesses). Majaros study also revealed that methods of evaluation used by most companies were not relevant, and that clear, precise advertising objectives, known to all involved, would rectify this situation. The following advantages of the advertising-by-objectives approach became clear. 1. It helps to integrate the advertising effort with other ingredients of the marketing mix, thus setting a consistent and logical marketing plan.

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2. It facilitates the task of the advertising agency in preparing and evaluating creative work and recommending the most suitable media. 3. It assists in determining advertising budgets. 4. It enables marketing executives and top management to appraise the advertising plan realistically. 5. It permits meaningful measurement of advertising results. When setting objectives, all personnel in a company who have an interest in, and influence on, advertising decisions have different ideas of the purpose of advertising. The Chairman may be concerned with corporate image, whilst the Advertising Manager may see it as an investment direct toward building a brand image and increasing market share. Marketing objectives have to be separated from advertising objectives. Overall marketing objectives should be defined, and the next step is to determine the contribution that advertising can efficiently make to each of these. An advertising objective is one that advertising alone is expected to achieve. Advertising objectives should be set with the following points in mind. 1. They should fit in with broader corporate objectives. 2. They should be realistic, taking into account internal resources and external opportunities, threats and constraints. 3. They should be universally known within the company, so that everyone can relate them to his or her own work and to the broader corporate objectives. 4. They need to be flexible, since all business decisions have to be made in conditions of partial ignorance. 5. They should be reviewed and adapted from time to time to take account of changing conditions. Setting advertising objectives should not be undertaken until all relevant information on the product, the market and the consumer is available. Consumer behaviour and motivation must be thoroughly assessed, particularly that of the companys target group of customers. The statement of an advertising objective should then make clear what basic message is intended to be delivered, to what

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audience, with what intended effects and the specific criteria to be used to measure success. Corkindale and Kennedy used five key words to summarize the elements of setting advertising objectives:
1. 2. 3.

4. 5.

WHAT What role is advertising expected to fulfill in the total marketing effort? WHY Why is it believed that advertising can achieve this role? (What evidence is there and what assumptions are necessary?) WHO Who should be involved in setting objectives; who should be responsible for agreeing the objectives, coordinating their implementation and subsequent evaluation? Who is the intended audience? HOW How are the advertising objectives to be put into practice? WHEN When are various parts of the programme to be implemented? When can response be expected to each stage of the programme?

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Below-the-line promotion. The terms below-the-line promotion or communications, refers to forms of non-media communication, even non-media advertising. Examples of non-media promotions are exhibitions, sponsorship activities, public relations and sales promotions such as competitions, banded packs and price promotions. Below-the-line promotions are becoming increasingly important within the communications mix of many companies, not only those involved in fmcg products, but also for industrial goods. For example dealer incentives, exhibitions and sponsorship activities are all growing in popularity. All forms of non-media communications are a form of promotion if we use the word in the broadest sense. Specific forms of below-the-line sales promotion are discussed below. Below the line sales promotion Below the line sales promotions are short term incentives, largely aimed at consumers, but also aimed at the trade e.g. wholesalers, retailers, distributors, etc., along with company employees, usually the sales force. Over the past 20 years or so there has been greater pressure on marketing budgets and a greater demand on marketing management to achieve marketing communications objectives more efficiently. Hence marketers have been searching for a more costeffective way to communicate with their target markets than conventional media advertising. A move to below the line promotion is one result of this. A definition of below-the-line sales promotion is given by Hugh Davidson: An immediate or delayed incentive to purchase, expressed in cash or in kind, and having only a short term or temporary duration. This definition highlights one important characteristic of below-theline sales promotion that is its short term nature. Most conventional above the line advertising campaigns are medium to long term in

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nature. Below the line sales promotions tend to be short term in nature. Rarely does a sales promotion last for more than six months, and the majority last for much shorter periods. All promotions are variations of one basic type or another, but since the sales promotion is dynamic by nature new types will be developed in the future. The sphere of sales promotions generally include the following:

Display materials (stands, header boards, shelf strips, wobblers) Packaging (coupons, premium offers, pack flashes) Merchandising (demonstrations, auxiliary sales forces, display arrangements) Direct mail (coupons, competitions, premiums) Exhibitions

Industrial promotions also include the above elements, but with modifications to make them closer in type to those used by manufacturers of consumer goods for their retailers; designed to gain orders over long periods. Sales promotion planning A full plan is needed to ensure that each stage of a promotion is reached: 1. 2. 3. 4. 5. Analyse the problem task Define objectives Consider and/or set the budget Examine the types of promotion likely to be of use Define the support activities (e.g. advertising, incentives, auxiliaries) 6. Testing (e.g. a limited store or panel test) 7. Decide measurements required 8. Plan timetable 9. Present details to sales force, retailers, etc. 10. Implement the promotion 11. Evaluate the result

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Advantages and disadvantages of sales promotions Advantages

Easily measured response Quick achievement of objectives Flexible application Can be extremely cheap Direct support of sales force

Disadvantages

Price-discounting can cheapen brand image Short-term advantages only Can cause stress with retailers Difficulty in communicating brand message

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The importance of sales promotion It is often difficult to know which marketing expenditures can be attributed to sales promotion. For example price reduction can cause confusion - 10% off a packet of biscuits is a sales promotion, but what about price discounting by manufacturers? Telephone marketing Telemarketing can be defined as any measurable activity that creates and exploits a direct relationship between supplier and customer by the interactive use of the telephone. The American Telephone and Telegraph Company define it as the marketing of telecommunications technology and direct marketing techniques. Telephone marketing can take the forms of in-coming call and outgoing call. In-coming call telephone marketing usually makes use of special numbers, which enables the caller to call free-phone or at local call rates. Such campaigns are usually used in conjunction with other marketing communications tools. Direct mail and direct marketing Direct mailing is the use of the postal service to distribute promotional material directly to a particular person, household or

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firm. It is often confused with the following related activities, which all fall under the general heading of direct marketing.
1.

2.

3.

Direct advertising One of the oldest methods of reaching the consumer, with printed matter being sent directly to the prospect by the advertiser, often by mail, but sometimes by through the letter box personal delivery, handing out to passers-by or left under the screen wiper of a car. Mail order Mail order advertising aims to persuade recipients to purchase a product or service by post, with deliveries being made through the mail or other carrier or through a local agent. Thus it is a special form of direct mail, seeking to complete the sale entirely by mail and being a complete plan in itself. Mail order is a type of direct mail, but not all direct mail is mail order. Direct response advertising This is a strategy of using specially designed advertisements, usually in magazines or newspapers, to invoke a direct response, such as the couponresponse press ad, which the reader uses to order the advertised product or request further information. Other variants offer money-off coupons and incentives to visit the retail outlet.

The usage and acceptance of direct mail is increasing rapidly, and one reason for this is that the media has become increasingly fragmented, with many commercial TV channels and the rapid growth of freesheets and special interest magazines. This means that advertisers have to either spend more money to reach their audience, or spread the same amount over a wider range of media. Improvements in the quality of large mailshots have attracted an increasing number of large advertisers. Direct mail, with increasing sophistication of computerisation, now enables advertisers to segment and target their markets with greater flexibility, selectivity and personal contact. Direct mail can be used to sell a wide range of products or services, and its uses are also varied. To help define direct mail more fully, it is appropriate to deal with direct mail to consumers and businesses separately.
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Consumer direct mail Some of the most common uses of consumer-targeted direct mail are:
1.

2.

3.

4. 5. 6.

7. 8.

Selling direct Direct mail is a good medium for selling a product directly to the customer by a company that has a convincing sales message. It provides a facility for describing the product or service fully and for an order to be sent straight back, cutting out the middlemen. Sales lead generation Some products/services require a meeting between the customer and a specialized salesperson, and direct mail can be used to acquire qualified leads. A mailshot that has been well thought through can reveal the best prospects and rank other leads in terms of potential, enabling some responses to be followed up by a salesperson. An invitation can be made for the customer to view the product in a retail outlet, showroom or exhibition. Such cordial-contact mailings can create a receptive atmosphere for salespeople by building on the reputation of the company and creating a good impression, which can be converted into buying action later. Sales promotion Promotional messages such as special offers will reach specific targets through direct mail and in the same way prospects can be encouraged to visit showrooms or exhibitions. Clubs The most popular users of direct mail here are book clubs and companies marketing collectibles. Mail order Direct selling and recruitment of new customers and agents are possible through direct mail. Fundraising It is easy through direct mail to communicate personally with an individual, and therefore it is an excellent method of raising money for charitable organizations. Large amounts of information can be included to induce the recipient to make a donation. Dealer mailings Dealers or agents can use direct mail to reach the prospects in their own area. Follow-up mailings These help to keep the companys name before the customer following a sale, for example checking that the customer is satisfied with a purchase. New developments,
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products and services can also be communicated or invitations issued, thus maintaining contact and increasing repeat sales. Business direct mail For business, this is more effective than mass advertising for identifying different market sectors and communicating to each an appropriate message. Some of the more common uses are:
1. 2. 3. 4. 5. 6.

Product launch Direct mail is able to target the small but significant number of people who influence buying decisions. Sales lead generation Direct mail provides qualified sales leads, as well as doing some initial selling. Dealer support Dealers, retail outlets, franchise holders etc. can be kept fully informed of marketing promotions and plans. Conferences Potential delegates in specific business sections can be issued with invitations through direct mail. Follow-up mailing using customer base Mailing existing customers regularly encourages repeat sales. Market research/product testing Market research (especially amongst existing customers) can be very effective where it is possible to do this through direct mail, using questionnaires as part of a regular communication programme. Small-scale test mailings can give an accurate picture of market reaction, with low risk, and a successful product can later be mailed to the full list.

Direct mail as part of the promotional mix When direct mail is added to, say, a television or press campaign, the effectiveness of the overall campaign can be significantly raised. The media reaches a broad audience and can raise general awareness of the company and its products, while the direct mail campaign is targeted specifically at the groups of people or companies most likely to buy. Mailing lists of respondents to couponed press advertisements or television or radio commercials with a phone-in number can be used for direct mail approaches.

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Advantages and Disadvantages of Each Element of the Promotional Mix

Advantages and Disadvantages of Each Element of the Promotional Mix Mix Element Advertising Advantages Good for building awareness Effective at reaching a wide audience Repetition of main brand and product positioning helps build customer trust Not good at getting customers to make a final purchasing decision Disadvantages Impersonal - cannot answer all a customer's questions

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Personal Selling Highly interactive - lots of communication between the buyer and seller Excellent for communicating complex / detailed product information and features Relationships can be built up - important if closing the sale make take a long time Sales Promotion Can stimulate quick increases in sales by targeting promotional incentives on particular products Good short term tactical tool Public Relations If used over the long-term, customers may get used to the effect Too much promotion may damage the brand image Costly - employing a sales force has many hidden costs in addition to wages Not suitable if there are thousands of important buyers

Often seen as more "credible" - since the Risk of losing control - cannot always message seems to be coming from a third control what other people write or say party (e.g. magazine, newspaper) about your product Cheap way of reaching many customers if the publicity is achieved through the right media

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Chapter 3 Food Trends in Singapore

Fast Food In Singapore


Trends
Fast food experienced considerable growth in 2007, especially in chained convenience stores fast food. The opening of VIVO City at the end of 2006 and the building or revamping of other shopping venues over 2007 allowed fast food chains which predominantly reside in shopping malls to expand in outlet numbers.

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Fast food Grew over by 4% in current value terms in 2007 to reach sales of $368 million. Transaction volumes increased by 2% over 2006 to 77 million While the number of outlets grew by 1% to 1112 in 2007.other major brands such as McDonalds continued their consistent growth in Singapore.In order to increase there share most of the players have focuses upon their expansion. Burger Fast food chains were the most popular type in fast food in 2007, largely because of their strong market presence and brand recognition. KFC is also one of the strongest fast food chains dominating chained chicken fast food. The leading players from these categories have invested heavily in various advertising campaigns and promotions. Carls Jr has caused a stir in the fast food sector with its radical marketing campaigns since entrance in 2005 and received tremendous reception over the review period, with plans to further expand in Singapore Chained fast food restaurants such as Burger King , KFC and McDonalds are backed by strong financial resources which make it less appealing for relatively less well known outlets to start up in Singapore.

Competitive Landscape
In 2007 the key international player McDonalds Restaurants Pte Ltd was the clear leader in fast food in Singapore. McDonalds restaurants remained in the leadership position with a 27% share of overall fast food value sales in 2007. The closest competitor KFC still lagged behind with about 19% the total value sales in fast food. These two key players rely on their well established brand names and strong financial resources. To backup their expansion strategies. Advertising and marketing campaigns are especially aggressive for the fast food sector. For example McDonalds religiously used various media channels such as press and television to promote its new products and also recently its delivery services. Customers are awarded with a chance of winning cash prizes by using the delivery services. Similarly Burger King uses lucky draw style promotions to attract customers. As fast food restaurants carry a rather restricted and standardized menu, new items are not often added as a permanent fixture to the menu. However, new items are added based on limited promotional periods to

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boost sales, such as the McDonalds Prosperity burger, which is only available during the Chinese New Year festive period. Other promotional new items might return to the menu depending on consumer response towards the new item. In the second quarter of 2007, KFC launched Meltz a new item that has since remained on the menu. A large part of the fast food sector is mainly focusing on lunch and dinner portions with a more limited breakfast menu. McDonalds and Burger King are the market leaders with more comprehensive menus for breakfast items, while Subway outlets open for the breakfast crowds but offer relatively similar items throughout the day. The nature of the products offered by individual brands would relative would determine if providing a breakfast menu is viable. For example, the standard opening hour for KFC restaurants is 11.00 hrs, meaning that they do not cater to the breakfast crowd. This is partly because chicken, being the star product of KFC, is not viewed as a common dish for breakfast among Singaporeans. Multinational brands like McDonalds have advantage of brand presence, with plenty of outlets located throughout Singapore; therefore multinational brands perform better in terms of total value and volume sales. However, outlets that started locally like Superdog have acquired a steady flow of customers with their dedication to fresh ingredients and committed services.

Prospects
Customers are increasingly healthy conscious, as reflected by several key restaurants brands like McDonalds and Subway, focusing on the freshness and healthy ingredients of their products, attempting to overthrow the preconception that fast food is unhealthy. In the forecast period, customers are not only going to demand more variety, they will also become increasingly particular with regard to the ingredient used. While leading player McDonalds has looked to capture more share through intensive promotions, and even to the extent of operating 24 hrs a day for branches at selected locations, some brands have not responded to such moves. Potential company activity may there fore include more pronounced marketing campaigns, and even extended operating hours to cater to the crowds.

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Sector Data
Fast food by sub sector :Units/outlets
Outlets Burger fast food Chained burger fast food 2005 189 189 2006 185 185 2007 179 179

Fast food by sub sector : transaction


Transactions Burger fast food Chained burger fast food 2005 20823 20823 2006 21812.4 21812.4 2007 22030.5 22030.5

Fast food by sub sector : Food Service Value


million Burger fast food Chained burger fast food 2005 230.8 230.8 2006 243.2 243.2 2007 246.8 246.8

Fast food sub Sector : %Volume Growth


%units/outlets growth Burger fast food Chained burger fast food 2006/07 -3.2 -3.2 2002-07CAGR -0.7 -0.7 2002/2007Total -3.2 -3.2

Fast food sub Sector : Food service value Growth in %age


%value growth Burger fast food Chained burger fast food 2006/07 1.5 1.5 2002-07CAGR 3.6 3.6 2002/2007Total 19.5 19.5

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Global Brand Owners shares of chained fast food


%value Company McDonalds Burger King Holdings MOS Food Services Inc. 2005 27.7 10.5 2.1 2006 27.5 9.6 2.1 2007 26.9 9.3 2.1

Forecast Sales Brand


%value Brand Burger Fast Food Chained Burger Fast food 2009 23104.9 23104.9 2010 23543.9 23543.9 2011 24014.8 24014.8

Forecast Sales : Food Sevice Value


%value Brand Burger Fast Food Chained Burger Fast food 2009 107.2 107.2 2010 112.6 112.6 2011 117.1 117.1

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Chapter 4 About the company and its Competitors


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About MOS Burger


Origin
While working at an investment company in Los Angeles in the 1960s, Mr. Sakurada frequented a local hamburger chain called Tommy's. Inspired by the 'cook to order' concept, and delicious hamburgers at Tommy's, Mr. Sakurada hit on the idea that a counterpart to an American icon would be as popular with his countrymen. After returning to Japan, Mr. Sakurada started his hamburger shop venture and set up the first MOS Burger shop in Tokyo in 1972. Committed to producing food fine-tuned to the Japanese palate, Mr. Sakurada inspired his team to create innovative products that would stand the test of time. One of the finest creations was the Rice Burger, which proved a smash hit when it was launched in Japan in 1987. Through the persistency and determination of Mr. Sakurada, MOS Burger has become one of the largest hamburger chains in Japan. The entire hamburger culture in Japan stemmed from Mr. Sakurada's dream. 35 years later, MOS Burger offers a wide variety of unique and original MOS burgers, as well as local specialties. Menu and styles might have changed but the MOS policy and passionate commitment to creating delicious, quality burgers has never changed. MOS Burger now also has its presence in countries like, Taiwan, Singapore, Hong Kong and Thailand. Ever wondered how MOS Burger got its name? 'M' stands for Mountain - dignified and noble. 'O' stands for Ocean - wide and vast. 'S' stands for sun - vibrant and life-giving. Enjoy MOS Burger today, tomorrow... everyday. Mr. Sakurada would be so happy!

Global Network
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MOS Burger is present in 6 countries as of September 2009.

Singapore
Japan Taiwan Hong Kong Thailand Indonesia

24
1,37 2 155 11 7 3

Competitors Introduction

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McDonalds
McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving nearly 47 million customers daily. At one time it was the largest global restaurant chain, but it has since been surpassed by multi-brand operator Yum! Brands (KFC, Taco Bell and others) and sandwich chain Subway. In addition to its signature restaurant chain, McDonalds Corporation held a minority interest in Pret A Manger until 2008, and owned the Chipotle Mexican Grill until 2006 and the restaurant chain Boston Market until 2007. The company has also expanded the McDonald's menu in recent decades to include alternative meal options, such as salads and snack wraps, in order to capitalize on growing consumer interest in health and wellness. Each McDonald's restaurant is operated by a franchisee, an affiliate, or the corporation itself. The corporations' revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion. McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, milkshakes, and desserts. In response to obesity trends in western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include such healthier alternatives as salads, wraps and fruit.

History
The business began in 1940, with a restaurant opened by brothers Dick and Mac McDonald in San Bernardino, California. Their introduction of the "Speedee Service System" in 1948 established the principles of the modern fast-food restaurant. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee." Speedee was eventually replaced with Ronald McDonald in 1963. The first McDonald's restaurants opened in the United States, Canada, Costa Rica, Japan, the

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Netherlands, Germany, Australia, France, El Salvador and Sweden in order of openings. The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois on April 15, 1955 , the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers' equity in the company and led its worldwide expansion and the company became listed on the public stock markets in 1965.[8] Kroc was also noted for aggressive business practices, compelling the McDonald brothers to leave the fast food industry. The McDonald brothers and Kroc feuded over control of the business, as documented in both Kroc's autobiography and in the McDonald brothers' autobiography. The site of the McDonald brothers' original restaurant is now a monument. With the expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life. Its prominence has also made it a frequent topic of public debates about obesity, corporate ethics and consumer responsibility.

Business model
McDonald's Corporation earns revenue as an investor in properties, a franchiser of restaurants, and an operator of restaurants. Approximately 15% of McDonald's restaurants are owned and operated by McDonald's Corporation directly. The remainder are operated by others through a variety of franchise agreements and joint ventures. The McDonald's Corporation's business model is slightly different from that of most other fast-food chains. In addition to ordinary franchise fees and marketing fees, which are calculated as a percentage of sales, McDonald's may also collect rent, which may also be calculated on the basis of sales. As a condition of many franchise agreements, which vary by contract, age, country, and location, the Corporation may own or lease the properties on which McDonald's franchises are located. In most, if not all cases, the franchisee does not own the location of its restaurants.

The UK business model is different, in that fewer than 30% of restaurants are franchised, with the majority under the ownership of the company. McDonald's trains its franchisees and others at Hamburger University in Oak Brook, Illinois. In other countries, McDonald's restaurants are operated by joint ventures of McDonald's Corporation and other, local entities or governments. As a matter of policy, McDonald's does not make direct sales of food or materials to franchisees, instead organizing the supply of food and materials to restaurants through approved third party logistics operators. According to Fast Food Nation by Eric Schlosser (2001), nearly one in eight workers in the U.S. have at some time been employed by McDonald's. (According to a news piece on Fox News this figure is one in ten). The book also states that McDonald's is the largest private operator of playgrounds in the U.S., as well as the single largest purchaser of beef, pork, potatoes, and

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apples. The selection of meats McDonald's uses varies with the culture of the host country

Burger King
Burger King (NYSE: BKC), often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States. The first restaurant was opened in Miami, Florida in 1954 by James McLamore and David Edgerton, and has since used several variations of franchising to expand its operations. Burger King Holdings Corporation is the parent company of Burger King; in the United States it operates under the Burger King Brands title while internationally it operates under the Burger King Corporation banner. It is a publicly traded company with investment firms of TPG Capital, Bain Capital and Goldman Sachs Capital Partners each owning about 25% of the company.

At the end of its fiscal year 2008, Burger King reported that there are more than 11,550 outlets in 71 countries; 66% are in the United States and 90% are privately owned and operated. The company has more than 37,000 employees serving approximately 11.4 million customers daily In North America, franchises are licensed on a per store basis, while in several international locations licenses are sold on a regional basis with franchises owning exclusive development rights for the region or country. These regional franchises are known as master franchises, and are responsible for opening new restaurants, licensing new third party operators, and performing standards oversight of all restaurant locations in these countries; The largest example of a master franchise is Hungry Jack's, which exclusively owns, operates or sub-licenses over 300 restaurants in Australia. The Burger King menu has evolved from a basic offering of burgers, fries, sodas and milkshakes in 1954 to a larger, more diverse set of offerings that includes several variations of chicken, fish, salads and breakfast. The Whopper, a sandwich that has since become Burger King's signature product, was the first major addition to the menu by Mr. McLamore in 1957. Not all introductions have had the success of the Whopper; BK has introduced many products which failed to catch hold in the marketplace. Some products that have failed in the US have seen

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success in foreign markets, where BK has also tailored its menu for regional tastes. The company's "Golden Age" of advertising was during the 1970s when it introduced its mascot the Magical Burger King, a memorable jingle, and several well known and parodied slogans. Beginning in the early 1980s, its advertising began to lose focus; a series of less successful ad campaigns created by various agencies continued for the next two decades. In 2003, Burger King set about resuscitating its moribund advertising with the hiring of the Miami-based advertising agency of Crispin Porter + Bogusky (CP+B). They completely reorganized Burger King's advertising with a series of new advertisements centered on a resuscitated Magical Burger King character.

Advertising
Burger King has employed varied advertising programs, both successful and unsuccessful, since its foundation in 1954. During the 1970s, output included a memorable jingle, the inspiration for its current mascot the Burger King and several well known and parodied slogans such as Have it your way and It takes two hands to handle a Whopper. Burger King introduced the first attack ad in the fast food industry with the help of then unknown Sarah Michelle Gellar in 1981. The television spot, which claimed BK burgers were larger than competitor McDonald's, so enraged executives at McDonald's parent company, they sued all parties involved. Starting in the early 1980s and running through approximately 2001, BK engaged a series of ad agencies that produced many unsuccessful slogans and programs, including its biggest advertising flop Where's Herb? Burger King was a pioneer in the advertising practice known as the product tie-in with a successful partnering with George Lucas' Lucasfilm, Ltd. to promote the 1977 film Star Wars (later renamed Star Wars Episode IV: A New Hope) in which BK sold a set of glasses featuring the main characters from the film. This promotion was one of the first in the fast food industry and set the pattern that continues to the present. BK's early success in the field was overshadowed by a 1982 deal between McDonald's and the Walt Disney Company to promote Disney's animated films beginning in the mid 1980s and running through the early 1990s. In 1994 Disney switched from McDonald's to Burger King, signing a ten film promotional contract which would include such top ten films as Aladdin (1992), Beauty and the Beast (1991), The Lion King (1994) and Toy Story (1995). A partnership in association with the Pokmon franchise at the height of its popularity in 1999 was one of the most successful in the industry, rivaled only by McDonald's/Ty Beanie Babies cross-promotion in 19992000.

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Shortly after the acquisition of Burger King by TPG Capital, L.P. in 2002, its newly hired CEO Bradley (Brad) Blum set about turning around fortunes of the company by initiating an overhaul its flailing advertising programs. One of the first moves by the company was to reinstate its famous Have it your way slogan as the corporate motto. BK handed the effort off to its new advertising agency, Miami-based Crispin Porter + Bogusky (abbreviated as CP+B). CP+B was known for having a hip, subversive tack when creating campaigns for its clients, exactly what BK was looking for. One of CP+B strategies was to revive the Burger King character used during BKs 1970s/1980s Burger King Kingdom children's advertising campaign as a caricatured variation now simply called "the King". The farcical nature of the Burger King centered advertisements inspired an internet meme where the King is photoshopped into unusual situations that are either comical or menacing, many times followed with the phrase Where is your God now?. Additionally, CP+B created a series new characters like the Subservient Chicken and the faux nu metal band Coq Roq featured in a series of viral web-based advertisements on sites such as MySpace and various BK corporate pages to compliment the various television and print promotional campaigns. One of the more unique promotions that CP+B devised was the creation of a series of three advergames for the Xbox 360. Featuring company celebrity spokesman Brooke Burke, the games sold more than 2 million copies, placing them as one of the top selling games along with another Xbox 360 hit, Gears of War.[94] These innovative ad campaigns, coupled with other new promotions and a series of new product introductions, drew considerable positive and negative attention to BK and helped TPG and its partners realize about $367 million in dividends

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Chapter 5 Analysis
2

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Crosstabs
Case Processing Summary Cases

Questions
N in years * Where do you see most advertisement? in years * Which advertisement appeals you the most? in years * Are adevrtisments on TV are more applealing than radi and newspaper? in years * What do you find most appealing in an advertisement? in years * Effective communication channel (TELEVISION)

Valid Percent 50 100.0% N

Missing Percent 0 .0% N

Total Percent 50 100.0%

50

100.0%

.0%

50

100.0%

50

100.0%

.0%

50

100.0%

50

100.0%

.0%

50

100.0%

50

100.0%

.0%

50

100.0%

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Case Processing Summary in years * Effective communication channel(rADIO) in years * Effective communication channel(NEWSPAPER) in years * Effective communication channel(BILLBOARD) in years * Effective communication channel(PERSONNEL SELLING) in years * Have you ever purchased MOS burger products before? in years * How Often do you purchase MOS Buger products? in years * Does MOS advertisement influences you to buy its product? in years * Did you get any promotional schemes while purchasing MOS products? in years * which brand do you prefer the most in years * Which marketing communication channel attracts you the most to the above preffered brand?(TELEVISION) in years * Which marketing communication channel attracts you the most to the above preffered brand?radio 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0%

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Case Processing Summary in years * Which marketing communication channel attracts you the most to the above preffered brand?NEWSPAPER in years * Which marketing communication channel attracts you the most to the above preffered brand?BILLBOARD in years * Which marketing communication channel attracts you the most to the above preffered brand?PERSONNEL SELLING 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0% 50 100.0% 0 .0% 50 100.0%

Question 1

in years * Where do you see most advertisement? Crosstabulation Count Where do you see most advertisement? internet in years 15-20 20-25 25-30 30 and above Total 12 5 2 0 19 newspaper 1 9 0 0 10 magazine 6 3 0 0 9 television 2 9 0 1 12 Total 21 26 2 1 50

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Question 2
in years * Which advertisement appeals you the most? Crosstabulation Count Which advertisement appeals you the most? internet in years 15-20 20-25 25-30 30 and above Total 7 5 1 1 14 magazine 4 2 0 0 6 newspaper 4 3 0 0 7 television 6 16 1 0 23 Total 21 26 2 1 50

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Question 3

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in years * Are advertisements on TV are more appealing than radio and newspaper? Cross tabulation Count Are advertisements on TV are more appealing than radio and newspaper? yes in years 15-20 20-25 25-30 30 and above Total 16 23 1 1 41 no 5 3 1 0 9 Total 21 26 2 1 50

Question 4
2

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in years * What do you Notice most in an advertisement? Cross tabulation Count What do you find most appealing in an advertisement? product offers in years 15-20 20-25 25-30 30 and above Total 2 6 1 0 9 creativity 8 6 1 0 15 information 11 14 0 1 26 Total 21 26 2 1 50

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Question 5 : a
in years * Effective communication channel (TELEVISION) Cross tabulation Count Effective communication channel (TELEVISION) not effective in years 15-20 20-25 25-30 30 and above Total 6 7 1 0 14 least effective 1 3 0 0 4 neutral 1 2 0 0 3 effective 1 3 1 0 5 most effective 12 11 0 1 24 Total 21 26 2 1 50

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Question 5 : b
in years * Effective communication channel(rADIO) Crosstabulation Count Effective communication channel(rADIO) not effective in years 15-20 20-25 25-30 30 and above Total 8 4 0 0 12 least effective 2 2 0 0 4 neutral 4 12 1 1 18 effective 6 7 1 0 14 most effective 1 1 0 0 2 Total 21 26 2 1 50

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Question 5 : c
in years * Effective communication channel(NEWSPAPER) Crosstabulation Count Effective communication channel(NEWSPAPER) not effective in years 15-20 20-25 25-30 30 and above Total 5 0 0 0 5 least effective 6 7 1 1 15 neutral 5 8 1 0 14 effective 5 8 0 0 13 most effective 0 3 0 0 3 Total 21 26 2 1 50

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Question 5 : d
in years * Effective communication channel(BILLBOARD) Crosstabulation Count Effective communication channel(BILLBOARD) not effective in years 15-20 20-25 25-30 30 and above Total 7 4 0 1 12 least effective 5 6 0 0 11 neutral 6 9 2 0 17 effective 3 5 0 0 8 most effective 0 2 0 0 2 Total 21 26 2 1 50

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Question 5 : e
in years * Effective communication channel(PERSONNEL SELLING) Crosstabulation Count Effective communication channel(PERSONNEL SELLING) not effective in years 15-20 20-25 25-30 30 and above Total 6 6 0 1 13 least effective 3 3 0 0 6 neutral 7 7 0 0 14 effective 1 3 1 0 5 most effective 4 7 1 0 12 Total 21 26 2 1 50

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Question 6
in years * Have you ever purchased MOS burger products before? Crosstabulation Count Have you ever purchased MOS burger products before? yes in years 15-20 20-25 25-30 30 and above Total 7 14 2 0 23 no 14 12 0 1 27 Total 21 26 2 1 50

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Question 7
in years * How Often do you purchase MOS Buger products? Crosstabulation Count How Often do you purchase MOS Buger products? 1-2 times a week in years 15-20 20-25 25-30 30 and above Total 1 4 0 0 5 monthly 4 6 0 0 10 once a year 2 2 0 0 4 others 14 14 2 1 31 Total 21 26 2 1 50

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Question 8

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in years * Does MOS advertisement influences you to buy its product? Crosstabulation Count Does MOS advertisement influences you to buy its product? yes in years 15-20 20-25 25-30 30 and above Total 7 9 1 0 17 no 14 17 1 1 33 Total 21 26 2 1 50

Question 9

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in years * Did you get any promotional schemes while purchasing MOS products? Crosstabulation Count Did you get any promotional schemes while purchasing MOS products? yes in years 15-20 20-25 25-30 30 and above Total 1 3 1 0 5 no 20 23 1 1 45 Total 21 26 2 1 50

Question 10

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in years * which brand do you prefer the most Crosstabulation Count which brand do you prefer the most Mc donalds in years 15-20 20-25 25-30 30 and above Total 15 24 2 1 42 Burger king 4 1 0 0 5 others 2 1 0 0 3 Total 21 26 2 1 50

Question 11

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in years * Which marketing communication channel attracts you the most to the above preffered brand?(TELEVISION) Crosstabulation Count Which marketing communication channel attracts you the most to the above preffered brand?(TELEVISION) dont prefer in years 15-20 20-25 25-30 30 and above Total 4 3 1 0 8 less prefer 2 2 0 0 4 neutral 3 2 0 0 5 prefred 5 8 1 0 14 highly preferred 7 11 0 1 19 Total 21 26 2 1 50

Question 11 b

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in years * Which marketing communication channel attracts you the most to the above preffered brand?radio Crosstabulation Count Which marketing communication channel attracts you the most to the above preffered brand?radio dont prefer in years 15-20 20-25 25-30 30 and above Total 3 4 0 0 7 less prefer 4 3 0 1 8 neutral 4 10 1 0 15 prefred 4 5 0 0 9 highly preferred 6 4 1 0 11 Total 21 26 2 1 50

Question 11 c

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in years * Which marketing communication channel attracts you the most to the above preffered brand?NEWSPAPER Crosstabulation Count Which marketing communication channel attracts you the most to the above preffered brand?NEWSPAPER dont prefer in years 15-20 20-25 25-30 30 and above Total 7 3 0 0 10 less prefer 5 5 1 1 12 neutral 4 12 1 0 17 prefred 5 4 0 0 9 highly preferred 0 2 0 0 2 Total 21 26 2 1 50

Question 11 d

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in years * Which marketing communication channel attracts you the most to the above preffered brand?BILLBOARD Crosstabulation Count Which marketing communication channel attracts you the most to the above preffered brand?BILLBOARD dont prefer in years 15-20 20-25 25-30 30 and above Total 3 4 0 1 8 less prefer 3 6 0 0 9 neutral 6 6 2 0 14 prefred 3 4 0 0 7 highly preferred 6 6 0 0 12 Total 21 26 2 1 50

Question 11 e

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in years * Which marketing communication channel attracts you the most to the above preffered brand?PERSONNEL SELLING Crosstabulation Count Which marketing communication channel attracts you the most to the above preffered brand?PERSONNEL SELLING dont prefer in years 15-20 20-25 25-30 30 and above Total 6 7 0 1 14 less prefer 6 4 0 0 10 neutral 4 5 0 0 9 prefred 1 6 2 0 9 highly preferred 4 4 0 0 8 Total 21 26 2 1 50

Chi Square Test


2

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Question 1 in years * Where do you see most advertisement?


Chi-Square Tests

Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a. 21.042a 22.481 3.108 50

df 9 9 1

Asymp. Sig. (2-sided) .012 .007 .078

11 cells (68.8%) have expected count less than 5. The minimum expected count is .18.

Null Hypothesis: H0: Theres no relationship between advertisement media chosen to see the advertisements and the age group of people Alternative Hypothesis: H1: there is relationship between the two variables

Analysis : The analysis shows that the value of as Pearson chi-square is less than 0.1 therefore the null hypothesis is rejected that is there is relationship between the two variables i.e age and the advertisement media chosen to see the advertisements.

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Question2 in years * Which advertisement appeals you the most?
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 8.889a 9.375 .565 50 df 9 9 1 Asymp. Sig. (2-sided) .448 .403 .452

a. 12 cells (75.0%) have expected count less than 5. The minimum expected count is .12.

Null Hypothesis: H0: Theres no relationship between the two variables i.e. age group and most appealing advertisement Alternative Hypothesis: H1: there is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

Question 3

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in years * Are advertisements on TV are more appealing than radio and newspaper?

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 2.823a 2.717 .276 50 df 3 3 1 Asymp. Sig. (2-sided) .420 .437 .599

a. 6 cells (75.0%) have expected count less than 5. The minimum expected count is .18.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: there is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

Question 4

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years * What do you find most appealing in an advertisement?
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.470a 6.619 .389 50 df 6 6 1 Asymp. Sig. (2-sided) .485 .357 .533

a. 8 cells (66.7%) have expected count less than 5. The minimum expected count is .18.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

Question 5 a

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in years * Effective communication channel (TELEVISION)
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 7.921a 8.013 .052 50 df 12 12 1 Asymp. Sig. (2-sided) .791 .784 .819

a. 16 cells (80.0%) have expected count less than 5. The minimum expected count is .06.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variable

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Question 5 b in years * Effective communication channel(Radio)
Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 8.025a 9.070 1.852 50 df 12 12 1 Asymp. Sig. (2-sided) .783 .697 .173

a.

14 cells (70.0%) have expected count less than 5. The minimum expected count is .04.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 5 c in years * Effective communication channel(NEWSPAPER)

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 13.545a 16.790 1.384 50 df 12 12 1 Asymp. Sig. (2-sided) .331 .158 .239

a. 14 cells (70.0%) have expected count less than 5. The minimum expected count is .06.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 5 d in years * Effective communication channel(BILLBOARD)

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases a. 10.780a 11.585 .626 50 df 12 12 1 Asymp. Sig. (2-sided) .548 .480 .429

15 cells (75.0%) have expected count less than 5. The minimum expected count is .04.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 5 e in years * Effective communication channel(PERSONNEL SELLING)

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 9.333a 8.919 .330 50 df 12 12 1 Asymp. Sig. (2-sided) .674 .710 .566

a. 14 cells (70.0%) have expected count less than 5. The minimum expected count is .10.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 6 in years * Have you ever purchased MOS burger products before?

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 5.200a 6.371 1.479 50 df 3 3 1 Asymp. Sig. (2-sided) .158 .095 .224

a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is .46.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 7 in years * How Often do you purchase MOS Buger products?

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 3.718a 4.782 .003 50 df 9 9 1 Asymp. Sig. (2-sided) .929 .853 .959

a. 13 cells (81.3%) have expected count less than 5. The minimum expected count is .08.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables. In this case the variables are highly independent. i.e. the age group doesnt affect the frequency of purchase of MOS Burgers among the youth population.

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Question 8 in years * Does MOS advertisement influences you to buy its product?

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases .752a 1.056 .010 50 df 3 3 1 Asymp. Sig. (2-sided) .861 .788 .920

a. 4 cells (50.0%) have expected count less than 5. The minimum expected count is .34.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables i.e the significance level shows that the advertisements of MOS burger doesnt affect youth population to buy its product.

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Question 9 in years * Did you get any promotional schemes while purchasing MOS products?

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4.375a 3.098 1.483 50 df 3 3 1 Asymp. Sig. (2-sided) .224 .377 .223

a. 6 cells (75.0%) have expected count less than 5. The minimum expected count is .10.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 10 in years * which brand do you prefer the most

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 4.519a 4.912 2.258 50 df 6 6 1 Asymp. Sig. (2-sided) .607 .555 .133

a. 10 cells (83.3%) have expected count less than 5. The minimum expected count is .06.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables i.e the brand preference among burgers doesnt depend on the age group to which the youth belongs.

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Question 11 a in years * Which marketing communication channel attracts you the most to the above preffered brand?(TELEVISION)

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 6.026a 6.854 .521 50 df 12 12 1 Asymp. Sig. (2-sided) .915 .867 .470

a. 16 cells (80.0%) have expected count less than 5. The minimum expected count is .08.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables i.e. theres no relationship between age group and the television advertisements seen by the youth population.

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Question 11 b in years * Which marketing communication channel attracts you the most to the above preferred brand? Radio

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 10.096a 9.362 .228 50 df 12 12 1 Asymp. Sig. (2-sided) .608 .672 .633

a. 17 cells (85.0%) have expected count less than 5. The minimum expected count is .14.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 11 c in years * Which marketing communication channel attracts you the most to the above preffered brand?NEWSPAPER

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 12.494a 13.506 .770 50 df 12 12 1 Asymp. Sig. (2-sided) .407 .333 .380

a. 15 cells (75.0%) have expected count less than 5. The minimum expected count is .04.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables. Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variable

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Question 11 d in years * Which marketing communication channel attracts you the most to the above preffered brand?BILLBOARD

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 11.427a 9.777 1.536 50 df 12 12 1 Asymp. Sig. (2-sided) .493 .635 .215

a. 16 cells (80.0%) have expected count less than 5. The minimum expected count is .14.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Question 11 e in years * Which marketing communication channel attracts you the most to the above preferred brand? PERSONNEL SELLING

Chi-Square Tests Value Pearson Chi-Square Likelihood Ratio Linear-by-Linear Association N of Valid Cases 15.324a 13.797 .148 50 df 12 12 1 Asymp. Sig. (2-sided) .224 .314 .700

a. 17 cells (85.0%) have expected count less than 5. The minimum expected count is .16.

Null Hypothesis: H0: Theres no relationship between the two variables Alternative Hypothesis: H1: There is relationship between the two variables.

Analysis : The analysis shows that the value of as Pearson chi-square is greater than 0.1 therefore the null hypothesis is accepted that is there is no relationship between the two variables

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Chapter 6 Findings

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Findings
As analysis done in question 1 we could observe that the maximum youth population belonging to the age group 15-20 watch the maximum advertisements on internet whereas age group from 20-25 watch advertisements on newspaper and television. The most appealing advertisement are found on internet as per the survey age group 15- 20 and in case of age group 20-25 most appealing media is television The maximum population i.e around 82% people from the sample selected believes that the advertisement on television is more effective than that on radio and newspaper. 52% of people look for the product information in an advertisement where as in age group 25-30 50% people looks for creativity and offers in advertisements. According to the likert scaling technique it is been found o that television is the most effective measure of advertising among different age groups. o Among age group 15-20 the sample population feels that radio is the not effective channel for communicating with target audience where as age group 20-25 has given the neutral responses for radio as an effective medium for communicating with target audience o Newspaper in general is considered as the effective channel especially in age group 20-25

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o Billboard has been considered as the least effective measure to advertise among age group 15-20 and the neutral responses have been taken from 2-25 o Personnel selling is been considered as the most effective channel by the age group 20-25 whereas others have given neutral responses The maximum sales of MOS Burger is among the 20-25 while there is very less sales among the the age group 15-20 The MOS Burger advertisement are found as ineffective in influencing the purchase burgers as maximum population i.e 66% of respondents feel that MOS advertisements are ineffective in influencing there purchase of Burgers from MOS. 90% of people have not received any promotional schemes from MOS burgers

The brand preference of maximum youth population i.e. 84% in Singapore is McDonalds

According to the likert scaling technique it is been found o That television is the most preferred media of advertising among different age groups. o Among age group 15-20 the sample population feels that radio is the highly preferred channel for communicating with target audience used by McDonalds where as age group 20-25 has given the neutral responses for radio as an preference medium for communicating with target audience o Newspaper in general is the neutral preference by the age group 20-25
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o Personnel selling is been considered as the not highly preferred channel by the youth population in Singapore. o Among the different age group mixed responses have been received for the billboard as the most effective medium for advertising by McDonalds.

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Chapter 7 Conclusions & Recommendations

Conclusions

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The maximum advertisements are watched on internet by the youth. Therefore in todays scenario Internet is considered as the best media to advertise as per the survey conducted Television can be considered as second most highly preferred media which highly appeals to the youth after internet. Television media can easily be reached to the target audience at every place at cheap prices. As the forecast sales for the burger are predicted to increase in coming years as reported in the report the company can advertise on comparatively high scale to attract more of young customers towards its product. MOS burger are not able to capture the youth towards its product due to comparatively less promotional mix channels used by its competitors which uses all media channels such as billboard, television and radio etc to reach to its customers. Eg Mcdonalds The sound blend of all media mix can attract the customers towards the product by providing various promotional schemes such as special offers on festive seasons etc. and its doing heavy advertising As per the survey conducted most of the youth look for product information in the advertisement therefore the company should try to provide all necessary information as much as possible about the product.

Amity Global Business School

Recommendations As per the survey conducted and the analysis done following were the recommendations that could help MOS to get an edge over its competitors The frequency of advertisements on internet and television should be increased by MOS Burger to get an edge over its competitors. Billboard and magazine is the another effective medium that can be adopted by the MOS Burger to reach maximum audiences.

Discount and other special offers can be given by MOS burger to promote its product.

Events can be organized by the company to improve upon the brand image of the company Sensible blend of promotion mix channels should be used to attract the customers like more of Internet and television media Advertisement on various blogs and social networking sites such as facebook can be given to attract the customers as per the survey it is highly used media.