1. Executive Summary A. Major findings We have using quantitative and qualitative methods, doing descriptive statistics and hypothesis testing research for Deli Depot. In this time, we’ve 200 Deli Depot customers to doing the questionnaire. In the questionnaire design, we’ve doing 18 hypothesis testing. Combine with questionnaire and other research result, we have finding the following problems.
What factors are the customer would consider to buying food and beverage in Deli Depot chain of fast food restaurant?
The research result had reflecting that the competent employees, fast service and excellent food quality factors they would be consider. The customer percentages are 28.5% (competent employees), 24% (fast service) and 46.5% (excellent food quality).
How about customers think the Deli Depot performance? In the questionnaire design, x1-4 are about Deli Depot friendly employees, competitive prices, excellent food quality. X8-9 are asking customer recommend and satisfied. In the questionnaire, customers must to answer their suitable marks. X1-4 scale are 1-10, x8-9 scale are 1-7. Research result had reflecting that many customers are circle in the middle marks.
22.5% customers are circle 4 in x1(friendly employees), 31% customers are circle 3 in x2(competitive price), 31.5% customers are circle 4 in x4(excellent food quality), 27% customer are circle 4(scale1-7) in x8(recommend) and 26% customers are circle 4(scale1-7) in x9(satisfied) but there have eleven error (missing data).
However, customers are most disagree is about Deli Depot in wide variety of food. 24.5% customers are circle 2(scale 1-10)in x5(wide variety of food). Besides, 46.5% customers are answer 6(scale1-6, 6 is most important) in x15(excellent food quality) and not important is x14(competent employees), 5% customers are answer 6 (scale 1-6, 6 is most important) in x14(competent employees).
Overall, customers think Deli Depot chain of fast food restaurant can satisfied their needs, and employees have provide friendly, excellent food quality and service for them. But Deli Depot should provide more new food and choice for customers to choose and need continue to providing excellent food quality for customers because customers are emphasis on their choice, service and food quality, they expected they have more food choice in Deli Depot.
B.) Major recommendations We should remember that human resource is important and rare resource In hospitality industry so we must emphasis employee’s needs and wants. Helped them work-life balance and developed training program for them. Besides, Deli Depot need continue to doing retail store assessment (RQA) and Quality control(QA) for maintain their restaurant good environment, service and food quality.
Secondly, Deli Depot can try to change the new logo and uniform, let customers feeling fresh. The new uniform design for employees can let customers feel more friendly because Deli Depot’s new uniform will using fresh color, such as red, pink, orange, yellow. Excluding the store manager and management, other’s employee no need to have a tie because new employees image are give the relax, fresh, friendly and happy for the customer.
Third, customer are concern their choice on menu. Deli Depot can developed diversity of their product. Beside of set, Deli Depot may provide more soup, main course, dessert and drink for customer. Deli Depot may develop Chinese, Western, Japanese, Korean, East Asia, France and Europe food and beverage in their breakfast, lunch, afternoon tea and dinner menu. However, Deli Depot should try to doing new promotion in every month/season. Such as provide Chinese, British, France breakfast; Western braked rice, Chinese fried rice, East Asia noodles and Korean snacks at lunch time; Japanese, East Asia, France and Europe dishes and snacks at afternoon tea time; Combine with different country dishes, soup, dessert and drink at dinner.
Thirdly, Deli Depot may provide A menu (Cheaper menu and more choice) in Monday to Thursday, B menu (Deluxe menu and less choice) in Friday dinner, Saturday, Sunday and Public holiday. Moreover, Deli Depot may plus their new promotion with their basic menu. Such as customer may selecting their lunch set in A menu, cashier may promote restaurant new promotion in special promotion menu and up-sell the soup, upgrade to soup with puff, special drink and deluxe dessert (such as Molten Chocolate Cake with Ice-cream). Given more choice for customers, let they can select more food and drinks and increasing restaurant sales.
2. Introduction A. Background (of the case) The background information of Deli Depot expose that it is a chain of fast food restaurants that position itself as “quality home-style food”. The restaurant locations are: two in the CBD and five in major shopping centers. The trade include breakfast、lunch and evening , but the different location to target various customers to implementing effective trade strategies.
Dependent on the latest sales and profit figures for the 2009 , the data of Annual Financial Performance and Quarterly Financial Performance 2008-09 indicated that it has a downward trend and it is performing poorly. The CEO is pointing the marketing expenses had risen over the past five years from $400,000 in 2004 to $1m in 2009 , and a series of elements lead to the CEO has tabled the notion of closing the newest outlet. The CMO think that the negatively affect the entire network. Whilst the CEO agreed with her comment he explained that unless the figures can be reversed the Board will demand the outlet’s closure, no matter what her arguments are. He instructed her to commission market research to uncover the public’s opinion on Deli Depot and demonstrate that the outlet has a future.
B. Purpose (of this report) The purpose of this report is to uncover the public’s opinion on Deli Depot , Deli Depot will to improve quality of every aspect dependent on the marketing research report and expect the Deli Depot’s newest outlet can continue operation.
C. Format (of this report) About the format of this report that, our group members have followed the requirements of our task to write this business report. Firstly, the executive summary, it including two key aspect to represent that what is our report’s major findings and major recommendations.
Secondly, to wrote an introduction of this report, it including three aspects. First aspect is to describe that what is the background of the case, second aspect is to identify the purpose of this report and third aspect is to establish the format of this report.
Thirdly, this report is a marketing research report, so we have made deeper marketing analysis, the market analysis have two aspects to conduct. A part is a strategic marketing analysis, it can be divided financial performance and the marketing program, B part is a customer analysis that is based on descriptive statistics and hypothesis testing.
Fourthly, marketing response include recommended strategies and recommendation for cover aspects of the marketing research plan. Fifthly, it’s appendices of report.
3. Marketing Analysis A. Strategic marketing analysis According to the financial performance, Marketing expenses have risen over the past five years from $400,000 in 2004 to $1m in 2009. But the Net Profit has Continues to decline, from $400,000 in 2005 to $100,000 in 2009. This reflected that Deli Depot have not done enough in market and lack of a comprehensive marketing strategy to meet their targeted customer’s needs. Because in the marketing program, they only focus on how to promote their product to customers but ignored an important feature of the guests, fresh. Many customers like to try new thing and they hope can be more choice and expect have a surprise for them. In addition, they don’t have a Loyalty program to detain regular customers. It is related to establishing a good relationship with customers.
In marketing strategy, first, Deli Depot must to create of new foods on a regular basis to attract customers and to increase their fresh. And then introduction of different types of food such as fried food, desserts and health food for customers to choose. Second, they must develop a loyalty program in order to increase the loyalty, such as point plan, offered a free gift or coupon to customers when they reach a certain fraction. They also can introduce Lunch special discount and package to boost customer numbers. In the other areas, use some of the more brightly colored such as yellow, cyan, orange to re-modified and creates a happy and comfortable atmosphere to customers.
B1. Descriptive statistics In the questionnaire design, X1-6 are about Deli Depot performance includes friendly employees, competitive prices, excellent food quality, fast service. X8-9 are about customer recommend and satisfied. In the questionnaire, customers have to answer their suitable marks. X1-6 scales are 1-10, X8-9 scale are 1-7. It would describe the results in three dimensions satisfied, normal and dissatisfied.
According to the statistical analysis reflects that 28.5% customers are circle 7 in X3 (competent employees). The research result reflects that Customers are most satisfied with the competency of staff and think that employees can meet their general needs.
22.5% customers are circle 4 in X1 (friendly employees), 31.5% customers are circle 4.30 in x4 (excellent food quality), 24% customers are circle 6 in X6 (fast service), 27% customer are circle 4(scale1-7) in x8(recommend) and 26% customers are circle 4(scale1-7) in x9(satisfied) but there is eleven errors. In these results had reflecting that many customers are circle in the middle marks and it is represent that they tend to medium for the performance of Deli Depot.
However, customers are most dissatisfaction is about Deli Depot in competitive price and wide variety of food, had 31% customers are circle 3 in x2(competitive price) and 24.5% customers are circle 2(scale 1-10) in x5(wide variety of food). These results point out that the product prices are set too high for many customers. About wide variety of food, too few types of food in the restaurant and make them feel bored as well as to lack of novelty in the result.
Many customers believe that excellent food quality is the most important factor when they selecting a fast food-restaurant to eat at. 46.5% customers are answer 6(scale1-6, 6 is most important) in x15(excellent food quality). From the result, we can see that customers focus on qualitative for a restaurant because it is related to their confident and loyalty. On the contrary, they think that the least important factor is competent employees in research result, 5% customers are answer 6 (scale 1-6, 6 is most important) in x14(competent employees).
B2. Hypothesis testing In hypothesis question x1-18, we discover there is a significant relationship with variables between x4(Excellent Food Quality, scales are 1-10) and X15(Excellent Food Quality, scale1-6, 6 is most important). In the result, customers consider that the quality of food is the most important, the average scores up to 5.16. But customers for the evaluation of the quality of food in Deli Depot average scores are 4.30. These reflect that customers are respect for the qualitative of food and the Deli Depot had not reached customers expect the criterion and influence customer the desire of customers to patronize. Besides, there are a certain relationships between the quality of food and recommend.
As a restaurant provides a high quality of product to customers, this is not only bringing a good experience to customers and also establishing the confidence for the restaurant. They will recommend it to people around when the restaurant obtain their trust. In the reason, customers will recommend it to others is dependents on the quality. In hypothesis question x8(scale1-7, 7 is definitely recommend) about the possibility of recommend Deli Depot to a friend of the average scores are 4.32 and the quality of food is tend to low. This means that the quality of food is low and unable to obtain their confidence and enable to affect the desire they have recommended to others.
4. Marketing Response Conclusion From the research, we can see customers mostly focus on the degree of employees’ attitude in service, the prices, and the food quality and the level of variety food but not the place or the environment of the restaurant.
In customers’ point of view, Deli Depot got the competent and friendly employees which can provide food in a proper time period kindly, and excellent food quality. Also, it got competitive prices in the Food and Beverages Industry.
Although the Deli Depot customers are satisfied about the employees, prices and the food quality, they are dissatisfied about the food variety in Deli Depot. They think that it only offer a few choice for them choosing the food from the menu.
Recommendation As the result of customers, Deli Depot got the competent and friendly employees, excellent food quality which can provide food in a proper time period kindly and competitive prices which is acceptable. So that, Deli Depot should retain the existing employees, also maintain the style and culture of serving customers.
Besides, Deli Depot need continue to doing retail store assessment (RQA) and Quality control (QA) for maintain their restaurant good environment, service and food quality. The reason of doing all of these is to satisfied Deli Depot customers’ needs and attracting more customers spend in Deli Depot.
However, as Deli Depot is also concerned about the level of variety food and dissatisfied Deli Depot current menu, we think that Deli Depot can just allocate its resources on creating several kinds of food for the customers. For examples, it may add more special dishes driven from Asian, such as Indian, Chinese, Thailand, Korean and etc. These special variety of food can bring new perceive to the Deli Depot customers.
Moreover, for increasing the level of variety of food within Deli Depot, we suggest that it provide some festival promotion food and environment for the customers. It probably could include some countries oriented festival, like Chinese New Year. During the festival month, it can provide some gifts, more food or only change the name of existing food related to the festival.
Such as, Deli Depot distribute to each customers a red packet and free trial of Steamed Turnip Cake for each table, and also make all the dishes name in some meaningful explanations to make the customers feeling fresh and special between having meal in Deli Depot and other fast food restaurant.
On the other hand, if Deli Depot really wants to change the image from stable and common food is providing to stylish and variety food providing fast food restaurant. They should try to change the logo and uniform, especially the color of both in order to make the customers feel fresh and changeable.
The new uniform could use bright color, such as red, pink, and orange so that it can attract the focus of the customers and make them feel warm from the Deli Depot employees. Of course, the key men like the store manager don’t need to do so.
All of these approach are focus on changing the concept and perception of customers for Deli Depot. However, Deli Depot should maintain its advantages from other restaurant as a priority, such as keeping the excellent food quality, retain the existing employees in order to keep the competent and friendly employees, also maintain the style and culture of serving customers which provide food in a proper time period kindly, so are the competitive prices.
Courtney from Study Moose
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