10. RECOMMENDATIONS FOR CIRCUS BURGER FOOD TRUCK
10.2 D IFFERENTIATION AND POSITIONING RECOMMENDATIONS FOR THE BRAND
This subchapter is dedicated to suggestions on how Circus Burger could differentiate itself and position from the competition. The recommendations are based on the findings of primary research and market segmentation.
In the theoretical part of this work, differentiation was defined as the ability to be distinctly different from the competition and build sustainable competitive advantage, common differentiation tactics include price differentiation, performance & reliability differentiation, location & service differentiation. Based on competition research, analysis of Circus Burger strengths and information on consumers’ needs and wants,
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the author would recommend a difference in terms of location and services.
Circus Burger has the best prerequisites for such differentiation, thanks to its small size it provides a very personalized service, where instead of numbers we call waiting customers by their first names, we are happy to advise which hamburger to choose or adjust the ingredients of which the hamburger is composed to suit the customer's wishes. . Furthermore, the food truck also has great potential in terms of mobility and location, because thanks to the mobility of the food truck, it can always be close to its customers.
To summaries proposed differentiation suggestion with which the proposed target group should be affected following positioning statement has been created: "Whether you are hungry or want to enjoy a tasty hamburger, Circus Burger is always close by for anyone who appreciates gourmet fast-food.”
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Conclusion
This diploma thesis dealt with consumer behavior of fast-food visitors. Knowledge of consumer behavior enables business to better understand the market itself, it serves as a base for marketing and strategic decision. Additionally it might enable to gain competitive advantage. The aim of this work was to identify and further develop the target segments for Circus Burger fast food truck. Based on performed market segmentation.
The thesis was divided into theoretical and empirical part. The theoretical part focused on defining the topic of consumer behavior, buying decision process segmentation, and targeting. Additionally, overview of the research on the topic of catering and fast food conducted in the Czech Republic has been provided. Within the chapters devoted to consumer behavior, the term consumer behavior was defined, the most important models of consumer behavior were introduced, along with four groups of factors that affect consumer behavior. Subsequently, a five-step process of buying decision was described. This process begins with problem recognition and includes post-purchase behavior as well as product disposal. The chapter on the buying decision process also included differentiated buying behaviors because consumers do not behave like a wall in every buying decision process. Following chapter devoted to research eating habits and fast-food consumption lists findings about Czech consumers. Lastly the empirical part includes the theory of process segmentation and targeting, which were applied in the empirical part of this thesis.
Empirical part of thesis firstly provided more detailed information about the concept, operations, and marketing communication of Circus Burger. Furthermore, potential competitors of Circus Burger present in the Czech Republic have been listed. Further chapters of the empirical part of this diploma thesis were devoted to analysis aiming to fulfill the goal of this thesis.
Firstly, segmentation based on secondary data from the continuous research project MML-TGI had been performed. Only data of respondents who are between 12 and 80 years old and have visited fast food in the last 12 months were used for the segmentation. The process of segmentation based on secondary data had been performed using Data Analyzer software. Once the segments have been uncovered, verification contingency analysis has been performed. Based on the verification, the names of segments had been slightly modified to accurately capture the essence of each segment. Segmentation based on secondary data uncovered 5 segments. These 5 segments were further developed by set of contingency analysis.
Consumer market segmentation was also performed based on primary data obtained by the questionnaire survey. To verify the segments obtained through segmentation based on secondary data and further develop the segments. As an input for segmentation based on primary data were used responses of respondents who were 12 years or older and have visited fast food restaurant within last 12 months.
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Responses of 254 respondent’s met these criteria. The process of segmentation based on primary data had been performed using SPSS software. Segmentation based on primary data uncovered only 4 segments. Smaller number of segments obtained through primary data segmentation can be attributed to limited representatives of the sample of the survey respondents and the fact, the questioner focused on defining variables.
Subsequently segments obtained based on primary data segmentation and secondary data segmentation were compared and synthesized. The synthesis resulted in 5 segments: Young convenience seekers, Common men, Pleasure seekers, Family oriented carers and Disciplined dieticians. These segments differ in the frequency and amount of spending on dinning out, dietary preferences and their socio-demographic characteristics.
Subsequently, the appropriate targeting strategy and target segments were selected.
Due to the size and capacity of Circus Burger, a select specialization strategy was chosen. After choosing the targeting strategy, the recommendation of target segments of customer Circus Burger should focus on. Author of the thesis suggest the food truck should focus on two segments, the Yong convenience seekers and Please seekers.
When selecting the target segments, segment's relationship towards product, sociodemographic characteristics and values of segment's members were considered.
However, the selection of target segments could be done in many other was. The author's chosen approach reflects the experience of the food truck operation. Lastly, recommendations concerning differentiation were added, namely the use of foot truck mobility as a differentiation feature, which can be converted into competitive advantage. However, the food truck should try to secure more attractive locations to sell their products, because both primary data and secondary data research suggest the location is one of the key factors when selecting a fast-food restaurant.
Based on the information provided in the paragraphs above, it can be concluded that the goal of this paper, to segment the market fast food consumers in the Czech Republic and identify segments Circus Burger food truck has been met.
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Appendices
Appendix 1 – Inputs used for factor analysis, Source: (MML-TGI, 2019) INPUTS FOR FACTOR ANALYSIS
898 I'm always looking for a diet / light meal and drink option. RU 897 I always check the nutritional information of my meal. RU 984 I always think about the calories value of food I eat. RU 740 I prefer to buy "healthy" (bio / light / low fat) products. RU 110 I pay attention to what eat and I try to follow balanced nutrition. RU 985 I think fast food is of inferior quality. RU
094 It is important to eat regularly. RU
068 Every woman can learn to cook if she is not lazy. RU 109 Taste is the most important quality of a meal for me. RU 989 I'm a vegetarian. RU
126 Our family has a lot of food from its own resources. RU
114 Pre-prepared meals or frozen meals are not among my favorites. RU 122 I try to eat as many fruits and vegetables as possible. RU
886 I consume more healthy foods than in the past. RU 874 It makes sense for me to pay more for organic food. RU 101 To improve my health, I should change my diet. RU 093 I consider my diet to be balanced. RU
885 I consider my diet to be very healthy. RU 970 I like to eat foreign cusine. RU
969 I like to try new foods. RU
067 We cook mainly for children / because of children. RU 103 We eat healthier at home because of our children. RU 118 Frozen foods are of same quality as fresh foods. RU
095 The diet consisting of only healthy foods is very little tasty to me. RU 063 We use a lot of frozen and ready made foods
121 I like typical Czech cuisine. RU
176 If I want to treat mysel, I'll buy something to eat. RU 102 I try to eat as few sweets and desserts as possible. RU
884 When I'm on the move, I often eat snacks rather than proper meals. RU 990 I like to indulge in unhealthy food. RU
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Appendix 2 – Summary of sociodemographic characteristics of segments, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortable diners Enjoyers Family conservatives Disciplined dieticians
males (54 %) males (71,6 %) - females (55,6 %) females (62,1 %) 20 000 - 99 999 inhabitants
(31,9 %)
5 000 - 19 999 inhabitants (19,6 %) 100 000 and more inhabitants (35,8 %)
fewer than 1 000 inhabitants (30,3
%) 1 000 - 4 999 inhabitants (19,5 %)
fewer than 1 000 inhabitants (22,5 %) 1 000 - 4 999 inhabitants (21,3 %)
young & independent (15,6%) singles (18,5 %) empty nest (19,6 %)
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Appendix 3 – Summary of dinning out frequency per segment, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortable diners Enjoyers Family conservatives Disciplined dieticians
2 - 3 times a week 1time per week
never less often than once a
week never less often than once a week
2 - 3 times a week 1 time per week
- less often than once a
week never less often than once a week
1 time a month
1 time per week less often than once a
month 2 - 3 times a month never 1 time per week
SUMMARY of dinning out freqency per segment
Frequency of pub visits in order to have a meal during the day
Frequency of pub visits in order to have a meal in the evening
Frequency of restaurant visits in order to have a meal during the day
(Monday - Friday)
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Appendix 4 – Summary of dinning out expenditures per segment, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortable diners Enjoyers Family conservatives Disciplined dieticians
301 - 600 CZK (20,1 %)
SUMMARY of dinning out expenditure per segment
Spent per outlet (monthly)
Spent in pub per person
Spent in restaurants per person
Spent in fast food per person
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Appendix 5 – Summary eating habits per segment, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortable diners Enjoyers Family conservatives Disciplined dieticians
a lot little rarely little a lot
at home
on way to work /school at home at work / school at home
-- - rarely little
-at home
at work / school home home home home
a lot - rarely little
a lot - a little little little
home
in pub / restaurant home - home home
SUMMARY of eating habits per segments Where dinner is consumed (Monday -
Friday)
Having dinner (Saturday - Sunday) Where dinner is consumed (Saturday -
Sunday)
Place where breakfast takes place (Saturday - Sunday) Having lunch (Monday - Friday) Where was made you consume for lunch
(Monday - Friday) Having lunch (Saturday - Sunday) Where was made you consume for lunch
(Saturday - Sunday)
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Appendix 6 – Summary drinking habits per segment, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortable diners Enjoyers Family conservatives Disciplined dieticians
certainly yes neither nor - certainly no
-neither nor rather yes rether yes certainly yes
-neither nor certainly not certainly yes certainly yes -neither nor rather yes rather not - certainly not
rather yes certainly not rather not certainly yes certainly yes
Having beer along with a meal frequently Water is a drink of choice
SUMMARY of attitudes towars beverages
Having a glass of liquor frequently Don't mind paying extra for quality beer Don't mind paying extra for quality wine
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Appendix 7 – Summary food choices per segment, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortabl e diners Enjoyers Family conservativ es Disciplined dieticians
never never occasionaly - regulary
Purchase frequency of foods with addition of healthy ingredience Purchase frequency of foods rich in protein
Purchase frequency of heathier food options
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Appendix 8 – Summary attitude of segments towards media, Source: (MML-TGI, 2019)
Superficial alternative eaters Comfortable diners Enjoyers Family conservatives Disciplined dieticians
Quintile 3 Quintile 3 Quintile 4, 5 - Quintile 2
Media Natural Quintiles DAILIES Quintile 4 Quintile 1 Quintile 5 Quintile 2
-Media Natural Quintiles INTERNET Quintile 2 - Quintile 1,2 Quintile 5 Quintile 3
Media Natural Quintiles CINEMA Quintile 1 Quintile 5 Quintile 3 Quintile 4
-Media Natural Quintiles OUTDOOR Quintile 3, 4, 5 Quintile 4, 5 Quintile 2 - Quintile 1, 2
Media Natural Quintiles RADIO Quintile 5 Quintile 1 Quintile 4 Quintile 3, 4 Quintile 2
Media Natural Quintiles TV Quintile 3 Quintile 1, 2 Quintile 5 Quintile 4 Quintile 5
SUMMARY attidude of segments towards media
Media Natural Quintiles MAGAZINES
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Appendix 9 – Summary of the Factor analysis (primary data), Source (Author)
108 Appendix 10 – Dendogram, Source (Author)
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Appendix 11 – Summary of segment’s characteristics (primary data), Source: (Author)
Young & comfortable Busy workers Established gourmands Homemakers
males males males 100 000 and more inhabitants
fewer than 5 000
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Appendix 12 – Questionnaire used for primary data collection, Source: (Author)
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112
113
114
115
116
117