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Marketing Strategy: Wendy’s In China

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Marketing Strategy: Wendy’s In China

Executive Summary

There is no present company that might be utilized as a case study for a new business's

marketing strategy since there is none. As a consequence, this chapter focuses only on the

author's business concept. Wendy's, a fast-food restaurant chain that provides burgers and fries,

is owned by international investors. In addition to fried chicken, Wendy's menu features a

number of other chicken-themed dishes such as desserts and drinks. Two full-time employees

work between 30 and 40 hours per week, while eight part-time employees work between 10 and

30 hours per week. The firm employs a total of twelve people. To minimize misunderstandings,

employees are urged to work strictly in the zones that have been allotted to them. The owner of

the restaurant also works as its manager and chef, which is unique. When scheduling shifts,

workers' availability as well as their employment status are taken into account.

The restaurant serves lunch and supper seven days a week. It is open Monday through

Friday from 10 a.m. to 23:53 p.m., except on holidays. On weekends, it is open from 11 a.m.

until 5 p.m., or till the next morning. Students and staff from nearby institutions and companies

make up the great majority of the customer base throughout the day. This restaurant is often

packed with young people out on the town and nightclub goers from adjacent clubs and pubs in

the nights. Wendy's newly established firm is finding it difficult to get customers. An assessment

of the present environment was carried out in order to build this marketing plan. This includes an

evaluation of the restaurant's internal strengths and shortcomings, as well as external possibilities

and threats, as well as a review of its consumers and competitors. The company's efforts will be

directed at building a devoted following and growing brand awareness.

To serve target market marketers, first assess the desirability of each segment and then

choose one or more segments to serve. Focus your efforts on areas where you can provide the

greatest value to clients while still generating a profit. To guarantee that your marketing efforts

are as effective as possible, you should focus your efforts on a single or a few distinct target

groups. Because market targeting focuses marketing efforts on a specific group of customer

segments, it streamlines the process of pricing, promoting, and distributing goods and services.

When resources are few, it is advisable to concentrate on a single or a few aspects of the project.

Typically, a corporation enters the market to give services to a certain segment of the population.

When the initial piece has been proved to be successful, further portions may be examined.

However, before selecting whether or not to expand into other locations or categories, much

study is required.

Sales Forecasts

More than two million Fast food facilities may be found in China. During the eight years

beginning in 2008, income increased by 13% per year (in millions of US dollars), growing from

10,464 million to 94,218 million. The growth in prosperity and urbanization, as well as the

introduction of new brands and the availability of fresh meals, have all led to an increase in fast

food consumption (FF). Furthermore, there has been a considerable growth in the number of

Western-style fast-food restaurants establishing in the surrounding region. Increased family

income and shifting social norms such as frequent dining out, as well as aggressive marketing

strategies by the FF industry and an increase in FFservice providers, improved chain store and

franchising management, and innovative food products, have all contributed to the industry's

rapid growth in recent years.

Profit forecasts

the number of firms, institutions, and jobs in the most established places, such as major

cities, is expected to decline in the future. A wide-scale shutdown as a result of the COVID-19

outbreak has resulted in revenue losses, unsustainable cash flow, inventory charges, and rental

expenses associated with unused storage space.

Market Penetration and coverage

Effective market penetration strategies allow a brand to bring its current product or

service to a developing market with high demand and progressively get a larger share of the

market, denying competitors the opportunity and money they would have earned otherwise. The

brand may benefit from expanding its marketing channels to include, among other things, email,

online marketing, and telemarketing. As a result of the country's continually expanding level of

expenditure, a great number of businesses have been persuaded to join the Chinese market. As

part of its market-share expansion strategy, the restaurant intends to hire locals to ensure that its

brand offerings are not only accessible in Chinese but also effectively connect with the Chinese

people and their culture.

product's localization

Because of China's large population and rapid economic growth, the Chinese market

offers a lucrative opportunity for Western fast-food companies. When it comes to product

development, the customer acts as both a co-creator and a consumer of the product under

development. Wendy's is expected to embrace Western-style production procedures and

practices while still selling locally made goods due to China's vast market size. Understanding
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Chinese culinary culture and supporting the usage of locally sourced items are critical to the

restaurant's success. The firm will create new things for the local market on a regular basis.

Wendy's consumers help to develop new items and will be a valuable resource in the company's

future. This fast food company's success in China is contingent on the localizations of its goods.

Distribution: From origin to destination

Because China has the world's fastest-evolving economy, its marketplaces are changing

quicker than almost any place else on the globe. When entering the Chinese market, foreign

corporations should avoid using a one-size-fits-all approach. When packaging is done correctly,

the product contained inside it is promoted and shown to the public. Many food products include

a list of ingredients as well as nutritional information on the container. Instructions on how to set

up and use the device may be included in other product packaging.

Customers will be more satisfied if they understand what to expect from a product before

making a purchasing choice. In order to be happy with a purchase, the buyer must be informed of

the risks involved. Plastic takeaway containers are the most advantageous option since they are

long-lasting, cost-effective, and need minimal maintenance. Customers will enjoy the extra

convenience of microwave-safe plastics. Following an order, the meal is delivered to the

customer's home on pre-packaged plastic plates, ready to be cooked once they arrive. If a

customer wants to eat out, plastic takeaway containers are perfect since they guarantee the food

is delivered safely.

It will be simpler for novices to join the fast food sector as a consequence of the

company's usage of containers. Because just a few resources are necessary to provide high-

quality service at the outlet, the associated expenses of this strategy are negligible. Because the
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containers are disposable, they do not need to be cleaned before reuse, for example. As a

consequence, the cost of reusing containers is removed.

Channels of Distribution:Micro Analysis

Retailers

Distribution is an important component of the food value chain since it guarantees that

the product is delivered in outstanding condition, on time, and in an atmosphere consistent with

the brand's image. Retailers may operate in a variety of ways, depending on the market niche. A

low-cost, low-service company approach is one option. Others may be found at the high-priced-

high-service end of the spectrum, providing a premium product or service. Because "typical"

organizations face a broader spectrum of rivals, having a clearly defined strategy and stance

increases the likelihood of success in these businesses.

When it comes to acquiring technology things, Chinese consumers are increasingly

depending on a range of data sources to aid them in their decision-making. All platforms where

consumers may rate Western products, particularly those that allow for the sharing of video

evaluations, must have a presence where Western corporations can promote. The retail industry's

dynamic has shifted as a result of digital technologies. As a consequence of algorithmic

recommendations, KOL livestreaming, and "native" (online-integrated) e-commerce enterprises

merging their operations with their websites, customers' product search dynamics have changed.

As a consequence, the products will only be accessible for cash and carry transactions, and

buyers will be required to pay for their purchases before they can be delivered. Customers may,

for example, order meals online and have them delivered to their homes in a timely manner.
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Wholesalers

Marketing and management services provided by distributors on behalf of their suppliers

are more efficient and effective than marketing and management functions provided by

manufacturers on behalf of their suppliers. To put it another way, distributors are businesses that

operate in the market and may help manufacturers reduce the costs associated with their

business. Because of their function as specialized intermediates, they may benefit from

economies of scale. By giving knowledge, a manufacturer may educate them on specific channel

activities. It is also feasible to argue that distributors are a necessary but insufficient requirement

for a market's long-term survival. They can only achieve economies of scale due to the specific

set of operations they do, whether in storage or market coverage, and this is only achievable due

to their size.

A distributor, for example, often acquires in large quantities (full carloads or containers).

When selling to a limited number of end consumers, providers' transportation, handling, and

shipping costs per item will be substantially higher. This is due to the provider's much higher

transportation, handling, and shipping expenses per unit. If suppliers were forced to contact

directly with end consumers, instead of hundreds or thousands of orders, they would be obligated

to fulfill a single order. An individual supplier may reach ten customers with a single market

contact rather than ten with a single market contact. Each supplier saves money as a result of the

wholesaler's decreased number of market contacts. It is possible to have a more diverse

distribution of fixed costs with distributors than with suppliers, which is why distributors (rather

than suppliers) are preferred.

Import/export agents

Continuity and on-time delivery are necessary, which implies that the agency must meet

its contractual obligations. Long-term planning is essential due to the unique nature of doing

business in China, which necessitates an understanding of Chinese business practices. An agency

must also have a team of personnel who can provide exceptional customer service, issue proper

bills, manage orders and paperwork, monitor expenditures, and collect accounts receivable.

Warehousing

Inventory management, order selection, and product handling all rely on quick and exact

order selection to guarantee that shipments leave the warehouse on schedule. Due to production

limits, a large variety of commodities, including food, beverages, and medications, have a

limited shelf life. Moving, de-palletizing, re-palletizing, and generally staging products for their

next leg of travel are all time-consuming processes in warehouse and distribution center

management. Choosing the best warehouse partner for your Chinese business will help you avoid

incurring avoidable losses, like as food that is no longer suitable for human consumption. This

will result in improved food handling organization and waste reduction, guaranteeing that

Wendy's goods meet the global standards of the brand that they represent in this situation.