A marketing plan for Lakad Delivery Service

• Main Authors: Baruelo, Alberto B., III, Ching, Malcolm C., Malabanan, Rizelle M.
• Format: text
• Language: English
• Published: Animo Repository 2012
• Subjects: Marketing
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/18200
• Institution: De La Salle University

The Consumer Food Service Industry is a PHP 371 billion industry composed of cafés/bars, 100% home deliveries/takeaways, full-service restaurants, fast food restaurants, street stalls/kiosks and self-service cafeterias. This industry will continue to expand with a 4% Compound Annual Growth Rate (CAGR) because of rapid urbanization, and increase in the demand and spending for consumer food service products. From among the different categories composing the industry, the category that will contribute the highest growth is fast food to which Chowking belongs to. Chowking is a quick service restaurant (QSR) that serves affordable Chinese meals Chowking's primary target market includes both males and females within the age range of 20-29 years old in socio-economic classes C and D. Chowking sets to position itself as the only Chinese quick service restaurant that rewards the everyday successes of young working professionals by offering these individuals everyday affordable Chinese meals. Delivery is the main driver for growth in the fast food industry due to rapid urbanization that results to consumers preference for convenient and timesaving products and services. With this in mind, different companies have tapped this potential and initiated strategies that bank on their delivery service. The Usage Image and Awareness (UAI) study conducted by the proponents of this project show that McDonald's, Jollibee and KFC are the three top of mind fastfood brands. 52% of respondents surveyed have McDonald's as their first mentioned fast food delivery brand followed by Jollibee (12%), KFC (12%), Pizza Hut (8%) and Chowking (4%). To keep up with the competition, Chowking is pioneering Lakad Delivery Service (LDS). Lakad Delivery Service is a new channel where trained and qualified LDS specialists would do rounds in the offices of corporate allies to take the orders, advance these to the store through handheld radio and have these prepared for pick-up at assigned areas and be distributed. LDS promises convenience for working individuals who are often pressed for time due to work demands and commuting hours. This marketing plan focuses on setting the fundamentals for the effective and efficient implementation of the LDS. The Pacific Star Chowking branch located in Senator Gil Puyat Avenue, Salcedo Village, Makati will serve as the pilot store where the LDS shall first be implemented. The pilot period shall be carried out within a 6-month period and shall be re-evaluated after to assess performance and feasibility of expansion. Alongside the implementation are several marketing strategies, banking on non-traditional media to reach the target market effectively at a minimal cost. These are geared towards building interest and awareness and establishing brand loyalty. The addition of this delivery channel, combined with marketing efforts, will increase the store's transaction count (TC), average daily sales (ADS) and average check (AC) by at least 6% during the early stage of its implementation. With the total investment of PHP 83,390.00 (see VII. Investment Plans on page 68), LDS will yield an incremental sales of PHP 869,406.00 for the 6-month pilot period (see VIII. Estimates of Profitability on page 71). Marketing objectives are based on the fast food industry statistics, in-store surveys, and official documents provided by Chowking head office. Objectives and goals stated in this project have been consulted with and validated by key people in Chowking performing management roles in brand, local store marketing, new business channels, restaurant systems, operations and finance. At the end of the pilot period and upon evaluation of the success of LDS in the pilot store, this shall be implemented in other branches specifically located in central business district areas.