Prepared for: Mr. Paul Vorbach
University of Technology Sydney
Graduate School of Business
Subject Name: Marketing: Concepts and Applications (24746)
Prepared for: Paul Vorbach
Semester: Autumn 2004
MARKETING PLAN
Launch of a new health range within
Red Rooster Restaurants and increase market share in
Australia
Group Members:
Susan Andonovski 10131338
Montri Ployjirachai 10197984
Amanda F. Ribeiro 10144830
Poon Han Wong 10010748
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Table of Contents
EXECUTIVE SUMMARY ......................................................................................................................................... 3
1. INTRODUCTION ................................................................................................................................................... 4
1.1 OVERVIEW: RED ROOSTER ................................................................................................................................... 4
1.2 MARKETING PLAN SCOPE: NEW PRODUCT LAUNCH ............................................................................................ 4
2. EXTERNAL & INTERNAL ANALYSIS.............................................................................................................. 5
2.1 MARKET DEFINITION & ‘BROAD SEGMENTATION’............................................................................................... 5
2.1.1 Broad Strategic Market Definition: Shift towards Healthier Variety ........................................................... 5
2.1.2 Market Potential, Market Penetration and Market Demand ........................................................................ 6
2.2 MARKET RESEARCH ............................................................................................................................................. 8
2.2.1 Secondary Market Research ......................................................................................................................... 8
2.2.2 Primary Market Research............................................................................................................................. 8
2.3 EXTERNAL ANALYSIS ........................................................................................................................................... 9
2.3.1 Macro-environmental Situation - PEST Analysis ......................................................................................... 9
2.3.1.1 Political Factor ......................................................................................................................................................... 9
2.3.1.2 Economic Environment............................................................................................................................................ 9
2.3.1.3 Socio-cultural Factor .............................................................................................................................................. 10
2.3.1.4 Technological Factor ............................................................................................................................................. 11
2.3.2 Porter’s Five Forces Analysis .................................................................................................................... 11
2.3.3 Competitor Analysis ................................................................................................................................... 12
2.4 INTERNAL ANALYSIS – COMPANY’S COMPETENCIES.......................................................................................... 15
2.4.1 Franchising................................................................................................................................................. 16
2.4.2 Mission Statement ....................................................................................................................................... 16
2.4.3 Products...................................................................................................................................................... 16
2.5 SWOT ANALYSIS ............................................................................................................................................... 18
3. STRATEGIC OBJECTIVES & ISSUES ............................................................................................................ 19
3.1 TARGET MARKETS: “YOUNG PROFESSIONAL” AND “STUDENT” ......................................................................... 19
3.1.1 Market Geographic Factors ....................................................................................................................... 19
3.1.2 Market Demographic and Lifestyle Factors ............................................................................................... 19
3.1.3 Passion Based Market Segments ................................................................................................................ 19
3.2 MARKET POSITIONING ........................................................................................................................................ 20
3.2.1 Business Performance ................................................................................................................................ 20
3.2.2 Market Attractiveness ................................................................................................................................. 20
4. COMPETITIVE MARKETING STRATEGY ................................................................................................... 22
4.1 COMPETITIVE ADVANTAGE ................................................................................................................................ 22
4.1.1 Cost Advantage: ......................................................................................................................................... 22
4.1.2 Differentiation Factors: .............................................................................................................................. 22
4.1.3 Marketing Advantage: ................................................................................................................................ 22
4.2 OFFENSIVE COMPETITIVE STRATEGY: MARKET SHARE GROWTH ...................................................................... 22
4.3 MARKETING AND FINANCIAL OBJECTIVES ......................................................................................................... 24
4.3.1 Short-term Marketing Objectives ............................................................................................................... 24
4.3.2 Long-term Marketing Objectives ................................................................................................................ 24
5. MARKETING MIX TACTICS ............................................................................................................................ 25
5.1 PRODUCT AND SERVICES ............................................................................................................................ 25
5.1.1 Product Quality .......................................................................................................................................... 25
5.1.2 Meals and Sizes .......................................................................................................................................... 25
5.1.3 Packaging ................................................................................................................................................... 25
5.1.4 Labelling ..................................................................................................................................................... 26
5.1.5 Product Line Extensions ............................................................................................................................. 26
5.2 PRICING .............................................................................................................................................................. 26
5.2.1 Market Based Pricing ................................................................................................................................. 26
5.3 PLACE/DISTRIBUTION ......................................................................................................................................... 26
5.3.1 Channel of Distribution/ Sales Territories ................................................................................................. 26
5.4 PROMOTION: INTEGRATED MARKETING COMMUNICATION MIX ........................................................................ 27
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5.4.1 Advertising: Awareness Building................................................................................................................ 27
5.4.2 Sales Promotions ........................................................................................................................................ 27
5.4.3 Public Relations: Reference Group Experience ......................................................................................... 28
5.4.4 Direct and Online Marketing: Loyal Customers Contacting ...................................................................... 28
6. MARKETING BUDGET ...................................................................................................................................... 29
6.1 FORECAST SALES................................................................................................................................................ 29
6.2 SENSITIVITY ANALYSIS ...................................................................................................................................... 30
6.3 BREAK-EVEN ANALYSIS..................................................................................................................................... 30
7. IMPLEMENTATION & CONTROL GUIDELINES ........................................................................................ 31
7.1 IMPLEMENTATION PLAN ..................................................................................................................................... 31
7.1.1 Implementation Milestones and Activities .................................................................................................. 31
7.1.2 Development of Goods and Sevices ............................................................................................................ 31
7.1.3 Employees Development and Reward s ...................................................................................................... 31
7.1.4 Development of Sales Distribution Channels ............................................................................................. 31
7.1.5 Development of Systematic Supply Process ................................................................................................ 31
7.1.6 Development of Price Strategy ................................................................................................................... 31
7.1.7 Development of Promotional Campaign .................................................................................................... 32
7.2 PERFORMANCE MONITORING ............................................................................................................................. 32
7.2.1 Process Market Metrics .............................................................................................................................. 32
7.2.2 End-Result Market and Financial Metrics ................................................................................................. 32
8. REFERENCES ...................................................................................................................................................... 33
9. APPENDICES........................................................................................................................................................ 35
Appendix No. 1: Roy Morgan QSR Marketing and Advertising Planning : April 2002 – March 2003............... 35
Appendix No. 2: Average Weekly Household Expenditure on Food and Non-alcoholic Beverage ..................... 38
Appendix No. 3: Australian - Market Lifestyle Factors ....................................................................................... 39
Appendix No. 4: Australian - Geographic Factors .............................................................................................. 46
Appendix No. 5: Australian - Demographic Factors .......................................................................................... 47
Appendix No. 6: Primary Research – Research Brief and Sample Questionnaire .............................................. 49
Appendix No. 7: Primary Research – Summary of results .................................................................................. 54
Appendix No. 8: Australian Political Environment: Democratic & Stable ......................................................... 64
Appendix No. 9: Government Efficiency.............................................................................................................. 65
Appendix No. 10: Economic Efficiency ............................................................................................................... 65
Appendix No. 11: Household Computer and Internet Access .............................................................................. 66
Appendix No. 12: Adults Accessing the Internet .................................................................................................. 66
Appendix No. 13: Current market share per competitor and Sales Forecast for 2004 ....................................... 67
Appendix No. 14: Competitive Analysis .............................................................................................................. 68
Appendix No. 15: Price Comparison – Fast food Competitors ........................................................................... 70
Appendix No. 16: Buying Decision Forces - “Young Professional” ................................................................... 71
Appendix No. 17: Buying Decision Forces - “Student” ...................................................................................... 72
Appendix No.18: Red Rooster - PORTFOLIO ANALYSIS .................................................................................. 73
Appendix No. 19: Recipe for Grilled Chicken ..................................................................................................... 74
Appendix No. 20: Nutrition for whole chicken .................................................................................................... 75
Appendix No. 21: Menu for Red Rooster ............................................................................................................. 77
Appendix No. 22: Salad Recipes .......................................................................................................................... 78
Appendix No. 23 Franchise Information ............................................................................................................. 82
Appendix No. 24: Total Media Spend in Australia by QSRs ............................................................................... 83
Appendix No. 25: Work Breakdown Structure and Gantt Chart ......................................................................... 84
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EXECUTIVE SUMMARY
Consumer foodservice transactions grew 18.7% reaching 2,733 million in 2001. These figures
are forecast to grow 24.3% to 3,395 million in 2006, accounting for a sales value of AU$34,375
million. As such, the fast food retail industry currently accounts for almost one third of the
overall transactions. Thus, indicating the potential growth in this particular industry.
(www.euromonitor.com/consumer_foodservice_in _Australia)
Red Rooster has been in the industry for 30 years. It began its business humbly in 1972, with its
first store in Perth, suburb of Kelmscott. In May 2002, Red Rooster was purchased by Australian
Fast Foods. With currently over 290 stores nation wide Red rooster is preparing to propel
towards the future, serving better food for Australians. Red Rooster continually strives to
develop innovative products, adopt competitive prices and offer maximum satisfaction and
convenience to customers. Recent development in Red Rooster enables it to launch a healthy
range of fast food to the growing demand in the Australian population.
A generalised introduction of the conceptual idea of the market information and market position,
together with the production scope and objectives is provided in section 1.0. Subsequently, in
section 2, details of the market research, primary and secondary will be provided, in addition,
competitive analysis and internal and external analysis is carried out. Section 3 describes the
market condition in which the product will be penetrating. Section 4 accounts for the overall
strategic decisions in which the organisation adopted in penetrating the required market. Section
5 will outline the marketing mix in terms of products, promotions, pricing and distribution
strategy used in gaining the desired out come for the product launch. All information in regards
to the project budgeting will be account for in section 6. The plan then will be concluded with a
strategic implementation and control documentation for the products.
As such, the research which was carried out, indicated that the current Red Rooster chain of
stand alone restaurants possess a relatively weak market position (refer to Appendix 13 and
Section 2.1.2) and its traditional ideology has restricted its development. The company suffers
from lack of market oriented strategy and promotion despite the company’s strong position in
providing quality chicken products. With confidence, the results have prompted the need to
launch a healthy product range of meals for the market.
The overall marketing strategy presented will highlight the critical issues in product quality,
pricing, promotion and distribution to firstly draw new customers in to the products, maintain
and reward loyal customers and capturing the competitor’s customers. The approach will only be
possible with a systematic budgeting and proper layout of implementation plan.
The introduction of the Red rooster new health food into the Australian market is expected to
help grow Red Rooster market share, provide customer value and offer customer
satisfaction, 100% of the time.
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1. INTRODUCTION
1.1 Overview: Red Rooster
The Kailis family opened the first Red Rooster store in the Perth suburb of Kelmscott in 1972.
Myer purchased the business in July 1981. In 1992, Red Rooster bought the Big Rooster chain to
expand into the eastern states. These stores were re-branded as Red Rooster. In May 2002, Red
Rooster was purchased by Australian Fast Foods (AFF). Currently there are over 290 Red
Rooster stores in Australia represented in New South Wales, Victoria, ACT, Queensland,
Western Australia and the Northern Territory. Franchise owners, trading under the Red Rooster
brand operate some stores in Queensland and the Northern Territory. These franchises undertake
the same policies and procedures as company stores so that a highly consistent standard of
quality products and customer service is maintained. As Red Rooster’s mission states that
“Red Rooster will be a leading Australian owned fast food company that is committed to
providing innovative products that are consumer and lifestyle focused.”
This mission statement will be achieved by:
 Value The ingredients and nutrition information are provide to customers for their health
and balanced diet (see Appendices 19 -22)
 Quality and hygiene Red Rooster Quality Assurance Officers often visit the suppliers to
make sure that the ingredients are in the highest standard. In addition, there is no added
MSG in any Red Rooster product.
 Efficient service
Franchisees undertake the same policies and procedures as
company chains so that a highly consistent standard of quality products and customer
service is maintained.
1.2 Marketing Plan Scope: New Product Launch
Australians are leading busier lives with less time to cook, as the lifestyles are changing for
everyone. Growth in the number of younger, single occupant and non-family households has
contributed to the decline in home cooking. This has led to the increase of fast food operators in
Australia. In addition, the numbers of people who are more concerned with their health have
increased significantly. To attract this market segment and provide more alternatives to the
customer a new health range of products will be launched in May. Red Rooster is going to
launch as follow;




Grilled Chicken
Fresh Salad variety
Wholemeal Buns
Fruit Juice variety
Consequently, we will focus on creating new-products’ awareness and increase outlets owned by
the company and franchisees. Our aim is to accurately analyse the Australian fast food market,
find relevant target segments and introduce the health range to dominated acceptance. Red
Rooster intends to increase its market share up to 16% and become the market leader in
health food in the Australian market.
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2. EXTERNAL & INTERNAL ANALYSIS
As this part of our marketing plan constitutes the critical backbone of all our recommendations
for the marketing strategy and subsequent marketing mix tactics, a comprehensive and rigorous
analysis of the relevant market environment was critical. Therefore, we defined a broad
definition of the market and conducted extensive secondary and primary research to ensure
future success of our marketing strategy and recommended marketing tactics.
2.1 Market Definition & ‘Broad Segmentation’
2.1.1 Broad Strategic Market Definition: Shift towards Healthier Variety
Although the Australian eating out culture developed relatively late compared to the US and UK,
it is today one of the most dynamic in the world in terms of growth and competition. To avoid a
narrow market definition and, hence, its potential to restrict discovery of new market
opportunities, Red Rooster has realised that it needs a broader strategic market definition.
According to the 2003 BIS Shrapnel Report, the foodservice market is defined as comprising all
eating out establishments including restaurants, cafes, fast food outlets, hotels/pubs, clubs,
institutional eating establishments, independent sandwich and hamburger shops, fish and chip
shops, Asian food outlets, pizza stores, pubs, supermarkets, convenience stalls and catering. This
entire market may be considered indirect competitors for Red Rooster, mainly if we take into
account the changing eating habits of the Australians.
The Quick Service Restaurant sub-sector (QSR) represents about 30% of the Australian
Foodservice market and comprises the direct competition market for Red Rooster. Roy Morgan
(see Appendix no. 1) defines the main fast food chains which make part of the QSR market:
KFC, Pizza Hut, Red Rooster, Pizza Haven, Nandos, Dominos, McDonald's, Eagle Boys Pizza,
Hungry Jack's and Subway. Given the 11 different fast food product categories in the QSR
industry, we can classify them according to temperature and perceived healthiness, as seen in
Graph 1.
Graph no. 1: Strategic market definition of the fast food industry
Hot Food
Fries
Beef Burgers
Chicken products
Pizza
Pasta
Fish products
Submarine
Sandwiches
Deli-style
Sandwiches
Wraps
Desserts
Salads
Cold Food
Perceived as
unhealthy
Perceived as
healthy
Source: Adapted from Best, 2000 in Gudergan, S. P. (2001)
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For purposes of comparison, the main direct competitors of Red Rooster are McDonald’s,
Subway, KFC and Hungry Jacks. Each of them will be analysed in detail in the following
section. Australians spend about 30% of their food budget on eating out. In 1999, Australian
households spent an average of $127 each week on food and non-alcoholic beverages, of which
$34 are spent on meals out, $19 on fast food and takeaway (ABS, 2000). For more details on
household expenditure on food, see Appendix No. 2.
2.1.2 Market Potential, Market Penetration and Market Demand
The foodservice consumer market is worth approximately AU$ 24 billion, and is still recovering
from two years of weak growth, in 2000 and 2001, due to the economic slowdown and the
introduction of the Goods and Services Tax. The fast food market is worth about AU$ 7.3 billion
and is estimated to keep growing in the following years.
Between 1998 and 2002, retail sales of fast foods increased at an annual rate of 3 per cent. In
2002, there was a slight recovery with an increase rate of 5 per cent, achieving AU$ 7 billion.
Growth in fast food and takeaways is expected to average only 1.5 per cent per annum in the
period to 2005 (at constant prices). However, the major chains are expected to grow at a rate of
5.7 per cent per annum with the introduction of new marketing strategies - such as more
comprehensive menus and a proliferation of smaller stores in shopping centres, hospitals and
convenience stores. Higher economic growth is expected to drive continued strong demand in
2005.
The food service industry served nearly 4.2 billion meals in 1998 or 222 meals per head
compared with 216 in 1996, according to the Hotel, Restaurant and Institutional Food Service
Sector Report (2000). There is a potential for substantial growth particularly if we look at the
US, where consumers eat out twice as often as Australians. The report forecasts the number of
meals served will increase by 4% annually over the next 2 years, benefiting restaurants, cafes
and fast-food chains.
The most recent social trends that affect the foodservice market are:
 Australians are spending more time outdoors (Appendix No. 3);
 Eating out has been more and more associated with entertainment (HRI Food Service
Report 2000);
 Customers are eating out more frequently - 2.25 times per week (Roy Morgan)
 Consumers are more conscious about a healthy diet, what has been translated in an
increasing demand for healthier meals. (Bis Shrapnel Foodservice Report May/June
2003.)
Based on forecasts of secondary sources, we have estimated the following figures for total
market potential (assuming that the maximum number of potential customers would increase
their fast food consuming from 2.24 to 7 times a week), market penetration of Red Rooster and
market demand for the entire fast food market, as summarised in Graph No.2 and No.3.
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Graph no. 2: Market Potential, Penetration and Demand: 1999-2009 (estimates for 20042009)
AU$ (b)
30
25
20
15
10
5
0
1999
2000
2001
2002
Total Demand
2003
2004
2005
2006
Penetration - Red Rooster
2007
2008
2009
Year
Market Potential
Source: Bis Shrapnel Foodservice Report May/June 2003.
Graph no. 3 – Demand of meals per year in the Australian Food Service Market (Estimates
2004-2008)
No. of meals served per year in Australia (Estimates 2004-2008)
6.00
(billions of meals)
5.00
4.00
3.00
2.00
1.00
0.00
1996
1998
2000
2002
2004
2006
2008
Source: Australia Hotel, Restaurant, Institutional Food Service Sector Report, 2000.
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2.2 Market Research
Our market research process consisted of four recommended steps (Gudergan, 2001, p.183):
defining the problem and the research objectives, designing the research, implementing the
research plan and interpreting and reporting the findings. Our research can be considered as a
descriptive one as we wanted to define the market potential for a product, the demographics and
attitudes of potential customers especially in terms of expected benefits of the new products. Our
goal was to define a profile of an “innovator/early adopter” buyer of Red Rooster’s new healthy
range. Based on our information needs we decided to gather both kinds of data, secondary and
primary as well.
2.2.1 Secondary Market Research
We gathered secondary data, mainly from well-known and reliable independent sources such as
ABS, Euromonitor International, Roy Morgan, Bis Shrapnel etc. (for the complete list refer to
References). This phase was quick and the data was obtained at a lower cost. For more details on
the geographic and demographic factors refer to Appendix No. 4 - 5.
2.2.2 Primary Market Research
We decided to conduct primary research, because there was some critical information that could
not be extracted from secondary research. Insights about the customers’ acceptability of a new
healthy range that has not been launched yet, as well as customer perceptions of Red Roster
relative to the main competitors and details about customer behaviour could only be found
through direct contact with the customers.
We opted for a mix of quantitative and qualitative research, because it would enable us not only
to measure relative satisfaction but also to obtain valuable in-depth insights that could help us
identify problems and design a more complete solution. For details concerning our research
objective, target group, methodology, location, questionnaire’ sample and a summary list of our
findings and their implementation within our marketing mix refer to Appendix No. 6 - 7.
After conducting 100 questionnaire interviews to complete our survey, we found that 46% of the
respondents have never eaten at Red Rooster before, either because of lack of awareness or lack
of availability. In addition, 60% of those who have already eaten at Red Rooster before have
visited in the last year or more than a year ago, which means a large number of occasional nonloyal customers. The survey also revealed that 63% of the respondents eat fast food because of
convenience and 38% would like to consume Red Rooster at shopping centres.
Demographic info. Lifestyle info and new product concept, usage behaviour
We also found that 88% of the survey’s respondents were in the age group between 15-34 years,
84% were single people and 87% had no children. They tend to eat at Red Rooster with friends
(43%) or alone (32%), and mostly on the weekends (63%). The most cited hobbies were
reading, eating out, watching movies and shopping. This opens an opportunity for Red Rooster
to target young people during leisure, and as a form of entertainment with friends.
According to the survey, taste is considered by 31% of the respondents as the motivating factor
for visiting Red Rooster; however, convenience is cited by only 8%. The most popular meals at
Red Rooster are Quarter Chicken (23%) and Half Chicken (19%), and the most popular
individual items at Red Rooster menu are Quarter Chicken (26.5%) and Crispy Fillet Burger
(20%). The launch of a new healthy range by Red Rooster was approved by the respondents,
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with 32.5% affirming they would definitely buy and 36.5% would probably buy it. This result
supports the trend of a healthier diet habit conscience among Australians. From the new healthy
items to be launched, Grilled Chicken and fresh salad variety were the more likely to be
purchased. This is an opportunity for Red Rooster to invest in product differentiation and
develop benefits that create value for the customers.
Regarding the customer perceptions of Red Rooster relative to the competitors, 43% of the
respondents perceived the quality of Red Rooster as good and 34% as very good. Most
respondents consider the price of Red Rooster as moderate relative to the competitors (78%) and
14% consider it cheap. The most concerning aspect revealed by the survey is that Red Rooster is
considered as unpopular by the interviewees. The perceived rank of popularity of the fast food
chains in Australia is: McDonald’s (45%), KFC (27%), Hungry Jack’s (10%), Pizza Hut (8%),
Domino’s (4%), Red Rooster (3%), Subway (2%) and Oporto (1%).
In summary, what can be extracted from these results is that Red Rooster has serious problems of
lack of awareness, wrong positioning leading to no identification with the brand, low retention
rate (occasional non-loyal customers) and lack of availability, which restricts the demand and
penetration of Red Rooster in the market.
2.3 External Analysis
Based on our secondary and primary research results we were then able to summarise the
following data relevant for our marketing strategy and marketing mix tactics.
2.3.1 Macro-environmental Situation - PEST Analysis
2.3.1.1 Political Factor
Australia has been recognised as one of the most stable political and social environments in the
Asia-Pacific region. Australia is considered more stable than the US, UK and most of the OECD
globally (see Appendices. No.8-9)
 Introduction of GST
Since the new millennium has begun, the Goods and Services Tax (GST) has been introduced at
the rate of 10% to replace several existing indirect tax including Whole Sales Tax (WST). As a
result of this, some prices will fall and some will rise. The Australian government wants
consumers to receive the benefits from indirect tax reductions. It also wants to avoid exposing
them to unreasonably high price rises.
 Free Trade Agreement
Furthermore, Australia and the US exercise a Free Trade Agreement (FTA). This agreement has
the potential to open Australian markets for US goods and services. Its trade policies being
unwrapped and a market-oriented regulatory establishment provide a positive environment for
growth and investment for its economy.
2.3.1.2 Economic Environment
In spite of the effects of the severe acute respiratory syndrome (SARS) epidemic, war in Iraq and
security concerns on tourism including economic downturn in Asia and the United State, the
Australian economy continues to grow (Appendix 10). This has led to a significant amount of
foreign investment in Australia. There are many indicators identifying the performance of the
Australian economy, as follows;
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 Moody (2003) has recently reported that Australia’s credit rating has been raised from
‘Aa2’ in October 2002 to ‘Aaa’ in January 2003 due to stability in its economy and
maintaining the Government’s low debt levels. Credit strengths for the country are:
(1) Strong growth performance over the past few years; and
(2) The healthy budget and public debt situation maintained over the
medium term.
 The unemployment rate dropped to 5.6% in October 2003 compared with 6.3% in June
2002. Similarly, employment rate rose significantly by 2.5% in 2002-03 after a small
growth in 2001-02.
 By the end of last year, the Reserve Bank of Australia (RBA) raised interest rates for the
first time in 17 months, indicating a stronger international economy and concerns over
domestic credit growth.
 The Wage Cost Index slightly increased to 3.6%. This also refers to a higher amount of
payment, on average, in every industry.
2.3.1.3 Socio-cultural Factor
 Educational change
Australian Bureau Statistics (ABS) states that Australia's population at June 2003 was 19.9
million people, an increase of 240,500 people over June 2002. This represents an annual growth
rate of 1.2%, the same as the average annual growth rate for the five years to June 2003. 42% of
the working age population has a university degree, diploma or trade qualification. Australia’s
higher education enrolment rate, at around 80% of the population, is one of the highest in the
world - only Canada and the US have higher rates (Global Competitiveness Report, 2001-02). An
example of this figure is new students enrolled in a postgraduate degree was about 110,000 in
2002 compared with 96,691 in the previous year and 74,651 in 2000 (Dodd, 2004). Therefore,
Australia is ranked second in the region for the availability of skilled labour.
 Health consciousness
Many new diseases have currently taken place around the world, for example, bird flu and mad
cow disease, which are the critical health issues that consumers have been concerned with. In
addition, consumer behaviour has changed to be more careful in selecting foods for their
wellbeing. In order to satisfy the consumers, a large number of fat-free food products have been
launched, more so than ever before. Furthermore, surveys conducted by the Australian
Supermarket Institute indicate that consumers in 1996 were more concerned about food hygiene
compared to a survey in 1992 when consumers pointed out that pesticides and chemicals posed
the greatest threat to the safety of food. The incidences of food borne illnesses are increasing
globally and are a severe public health issue for Australia. This has resulted in a decrease in the
number of Australians which ate out less frequently. In 2002 the number had dropped to 83 times
compared with 94 times annually in 2000. Convenience was the major feature of eating fast food
in 2000, whereas special occasions, break in routine and meeting friends were the main reasons
in 2002 (http://www.c-store.com.au/articles/bis-eatingoutrends.html).
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2.3.1.4 Technological Factor
2.3.2 Porter’s Five Forces Analysis
According to Porter (1995), it is possible to divide competitive forces into five areas:
NEW
ENTRANTS
Threats of New Entrants:
The market of food service is very
competitive with only a growth rate of
1.5% per annum. In addition the cost
of entry is relatively high (marketing
budget, distribution channels and
research and development expenses.)
Therefore the power of this force is
weak.
WEAK
Rivalry Among Existing
Competitors:
In the Australian fast food market,
there are many strong international
competitors with superior resources
in terms of finance, marketing
budget, innovative products, and
distribution channels. Therefore, we
consider this force as the most
threatening for us and strong.
SUPPLIERS
COMPETITORS
BUYERS
WEAK
STRONG
MEDIUM/
STRONG
Bargaining Power of Suppliers:
Even though there are a limited number of
suppliers in chicken for our core products,
we have a few large suppliers providing
chicken for us. Thus, changing suppliers is
not a critical problem. Therefore, we assess
the power of this force as weak.
SUBSTITUTES
STRONG
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Bargaining Power of
Customers: Customers are able
to switch to other alternative
products easily. Therefore, we
assess the power of this force as
medium/strong.
Substitute Products:
Restaurants, cafés, clubs and hotels are
currently the substitute products of fast
food. Furthermore, consumer
perceptions for these are healthier and
provide better services. Therefore, we
assess the power of this force as
strong.
Porter, M.E., 1995
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2.3.3 Competitor Analysis
Combined with the concerning levels of obesity in Australia and the changing habits in terms of
food intake and exercising, fast-food outlets have been under enormous pressure to adapt. This
section analyses the main features of Red Rooster competitors, their recent strategies aiming the
healthy food segment and their market positioning. For details about market share and sales
forecast per competitor, refer to Appendices No. 14-15.
Healthier living
Worldwide there is a move by consumers to healthier lifestyles. One of the manifestations
of this is the shift to healthier fast foods. Expanded menu choice is already underway in
many McDonald’s around the world. For example, McDonald’s UK offers sliced fruit;
McDonald’s France provides low fat yogurt and the US offer beverage choices that include
low fat milk, bottled water, juices and non-carbonated drinks. McDonald’s Australia serves
a Happy Meal with toasted cheese and tomato sandwich, raisins and orange juice.
Source: www.mcdonalds.com accessed March 2005.
Subway has recently changed its positioning to take maximum advantage of the desire to slim.
Previously, their marketing had been focused around flavour and customization - the fact that
consumers could choose exactly what wanted on their sandwiches – basically a product focus.
Now, they are strongly positioned as the healthy option in fast-food – a focus on the customer’s
benefit. This shift has proved profitable and has resulted in a rapid expansion of the chain in the
USA and Australia. Currently, Subway is on the crest of overtaking McDonald's as the fast-food
outlet with the most number of stores throughout Australia. Subway has over 625 stores trading
throughout Australia and is opening about four new outlets a week. It expects to overtake
McDonald's, which has 726 stores, by year's end.
But McDonald's has also moved forward. Since it introduced the Salads Plus range into its
stores, McDonald's Australia has experienced an extraordinary explosion in profit, achieving a
record level of sales of $1.8 billion – one of the highest in its 32-year history. McDonald’s
Australia was the best performing country in the Asia Pacific, Middle Eastern and African
region. Its bumper profits are almost totally due to the new healthy range, which includes a
veggie burger, chicken folder, yoghurt and a range of salads. They are about to introduce
nutritional labelling on some of its products, outlining fat content, sugar content, total energy
content and percentage of saturated fat. The company also has plans to begin using canola oil
instead of the current combination of beef tallow combined other oil, and has announced that it
will reduce the sugar content of its patties.
McDonald’s positioning has been focused on greater variety, choice and diversity in the
tastes offered to customers. One of the ways they have tackled this is through the 36 different
items offered since September 2001 on their New Tastes menu. The new healthy range menu
does not represent a change in their core focus, but a line extension which allows them to
penetrate a new market and expand the demand, which is a really competitive strategy
considering the level of competitiveness and saturation of the food market.
McDonald’s Australia has 726 stores with more than 55,000 employees, 1million customers
daily and is one of the largest purchasers of Australian products. In an average year McDonald’s
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Australia purchases 307 million hamburger buns, 88 million kgs of potatoes, 60 million eggs, 24
million litres of milk, 18 million kgs of beef, 5.5 million kgs of cheese, 11 million kgs of
chicken, 5 million kgs of lettuce and 1 million kgs of beetroot.
Fast-food pizza chains have been criticized by anti-obesity advocates for launching crusts full of
cheese, which substantially increases the fat content. At the same time large pizzas are being
offered at discount prices, attracting more price-sensitive customers. KFC and Pizza Hut, both
owned by the multinational Yum! Restaurants International, have not announced any plans to
make their menus healthier. KFC is showing no signs of changing the high fat, sugar and salt
contents of its deep-fried chicken.
Hungry Jack’s has introduced a salad range as well as a "Good 'n' Fresh" sandwich range as an
alternative to burgers, using soy and linseed bread and containing no more than 9 grams of fat.
The company is also offering consumers the option of low-fat mayonnaise, and has launched an
initiative called "Have it Your Way", enabling customers to design their own burger according to
their dietary needs. Hungry Jack’s is positioned as value for money (“bigger burger at a
better price”), appeal of “have it your way” – customized food delivery, fresh salad
ingredients and the exclusive flame grilling. It claims to have an Australian image and better
variety of food than the competition.
The following graph is a perceptual map of fast-food chains according to the customers’
perceived positioning collected on our primary research survey.
Graph No. 4 - Competitor Analysis – Perceptual map of fast-food positioning
Healthy
Subway
McDonald’s
Red Rooster
Value for money
High-Price
Hungry Jack’s
Pizza Hut
KFC
Fatty
For a detailed comparison of products from these different competitors refer, to
Appendices No. 14 -15.
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2.4 Internal Analysis – Company’s Competencies
The first Red Rooster store was opened by the Kailis family in Perth in 1972. In 1992, Red
Rooster bought the Big Rooster chain to expand into the eastern states. These stores were rebranded as Red Rooster. It progressively grew interstate and was sold to the large national
retailer Coles-Myer in July 1981. In May 2002, Red Rooster was purchased by the Australian
Fast Foods group. Australian Fast Foods, which also owns the Western Australian chain Chicken
Treat, is aiming for total sales of about AU$ 700 million next financial year, through an
aggressive strategy to penetrate the Eastern markets, where Red Rooster has a large growth
potential.
Currently Red Rooster employs over 5,500 staff in 335 outlets in Australia. From this total, 277
are company-owned stores - represented in New South Wales, Victoria, ACT, Queensland,
Western Australia and the Northern Territory. There are also 58 franchisee-owned outlets trading
under the Red Rooster brand in Queensland and the Northern Territory. The aim is for 302
company stores and 76 franchise stores by the end of next financial year and for the next two
years there is a target of 132 store openings, including entry into New Zealand.
Product differentiation is the fundamental key to the competitive strategy of Red Rooster. Red
Rooster recognizes the importance of employing the right people to provide good service and
quality, at the best affordable price. Red Rooster requires a strict one-on-one quality control
monitoring, ordering and preparation by a competent and active store manager and team
members. It’s positioning stresses on “fresh” as being a concept and promise of the core product.
Red Rooster’s chicken, which has lower fat content because of the cooking method, has always
provided the competitive edge. The barbequed chicken range was traditionally the only available
healthy choice.
The competitive nature of the fast food sector demands confidentiality and flexibility. At
Australian Fast Foods the focus is totally on the day-to-day running of the business,
complemented with on-line, real time systems that keep people informed and up-to-date to
respond quickly to the changing demands. This has enabled Red Rooster to move towards the
market needs for innovative alternatives. Recent technological investments such as the
installation of new Combi ovens have ensured consistency of products and the development of
innovations such as freshly baked rolls. Fresh subs were launched in December 2002 and a new
salad selection and a new healthier chicken will be released later in the year. These initiatives
will complement the store décor refurbishments as well as a fresh positioning, marketing and
advertising strategy.
Red Rooster is very proud of its supply chain management. There are a limited number of
suppliers in frozen food, chicken, beverage and packaging and, in 25 years, there has not been
any change in the major suppliers. This is justified by the open book policy adopted in Red
Rooster, where direct, one-to-one negotiations have been reflected in a transparent and respectful
long-term relationship between Red Rooster and its major suppliers.
The initial Franchise fee for a single site is $38,500 AUD. There is a service fee of 5% of the
franchisee’s gross weekly sales and there is also an Advertising Contribution of 5% of the
franchisee’s gross weekly sales. The minimum working capital requirement (or facility) is
$30,000AUD. The required level of start up capital to become a Red Rooster franchisee will
depend on such things as store size and facilities, but generally ranges between $450-$550,000
AUD.
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2.4.1 Franchising
With a commitment to expansion and profitability Red Rooster is seeking to spread its franchise
network to regional New South Wales, Victoria and South Australia plus the new markets of
Tasmania and New Zealand. The length of the franchise agreement is 10 years with an option of
a further 10 years subject to the conditions of the Franchise Agreement. The length of a
Franchise Agreement may be lesser in circumstances such as shopping centre food courts if the
terms of occupancy are less than 10 years
Red Rooster approves all sites, undertakes lease negotiations and in most cases takes the Head
Lease on the store. Red Rooster contracts with the builder and manages the project from
construction to fit out completion thus providing a turnkey project. There is a Lease / License
Fee of $500AUD per annum which is charged in equal instalments.
Red Rooster has developed an extensive training program of up to 16 weeks which covers all
aspects of the business. Training is carried out in a certified training store and there is a training
fee for up to 3 people of $6600AUD.
Under the new management of Australian Fast Foods, Red Rooster is on the way of profitable
results. Attention will be given to correct the poor distribution strategy, mainly in New South
Wales and Queensland, where the company is least represented (e.g., no new Red Rooster was
opened in Queensland for two years), adjustments to the positioning will be made to reinforce
freshness and health, promotional activities will project the brand nationally and these actions
together are intended to drive a projected market share growth to around 16% of the fast food
marketplace by the end of 2005.
2.4.2 Mission Statement
Red Rooster will be a leading Australian owned fast food company that is committed to
providing innovative products that are consumer and lifestyle focused.
They will achieve this by exceeding customer expectations for:
- Value
- Quality
- Efficient Service
- Hygiene
2.4.3 Products
Red Rooster offers a wide and varied menu to customers specializing in quality chicken
products. Their core product is barbequed chicken, which was developed as a unique recipe
when Red Rooster first began thirty years ago. They now offer products that have appeal to all
ages and tastes including the Little Red Rooster Meal, Chicken and Chips, Strip Sub and the
Crispy Fillet Burger to name a few. Red Rooster continually strives to develop products that are
innovative, price competitive and offer maximum enjoyment and convenience to customers.
Their most popular products include the following:
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Table 1 – Red Rooster’s list of products:
Chicken Meals
BBQ Chicken
Quarter Chicken and
Chips
Half Chicken and Chips
Tropical Pack
Chicken Dinner
Burgers, Rolls and Subs
Crispy Fillet Burger
Strip Sub
Flayva
Fresh Sub 97
Chicken Roll
The highest quality chicken is delivered to stores fresh daily and hand
seasoned using Red Rooster's famous recipe. Each and every chicken is
marinated then cooked to perfection.
Satisfy your appetite with a quarter BBQ Chicken and our famous chips.
Half BBQ Chicken and Chips.
Quarter BBQ Chicken and Chips and Two Pineapple Fritters.
Quarter BBQ Chicken and Chips, Mashed Potato and Gravy and Peas.
Crispy coated chicken fillet breast topped with lettuce, tomato, cheese and
mayonnaise in a soft sesame seed bun.
Spicy coated tender strips of chicken with creamy garden herb sauce in a
freshly baked bread roll.
Two chicken breast strips coated with our unique spicy crunch coating,
served with a creamy herb sauce, lettuce and tomato all wrapped in a fresh
tortilla.
Tastes great and won't weigh you down. Succulent pieces of tender chicken,
fresh lettuce, tomato and cucumber topped with Kraft Free Mayonnaise, in a
freshly baked bread roll. 97 percent fat free, 100 percent flavour.
A soft warm sesame seed roll filled with fresh BBQ Chicken pieces, herb
stuffing and creamy mayonnaise.
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2.5 SWOT Analysis
The following SWOT analysis is based on our main findings about external and internal situation
analysis. It summarizes Red Rooster‘s key strengths and weaknesses and also describes the market
opportunities and threats that we will have to take into consideration in our planning.
STRENGTHS
WEAKNESSESS
 100% Australian-owned;
 Knowledge of local market;
 Investment in market research – always
updated on customer needs;
 Competitive advantage in product
differentiation – investment in R&D for
innovations and quality;
 Search for excellence in service – investment
in recruitment, training and control
monitoring;
 Long-term sound and transparent relationship
with suppliers;
 New owner provided expertise on core
business of fast food;
 Specialized management is giving new
breadth towards market orientation and growth
strategies.
 Potential for growth in sales and profitability.
OPPORTUNITIESS
THREATS
 Fast food market is still growing.
 Australians spend more money on food.
 Consumers are more concerned about healthy
food which matches with our new target
market.
 The survey shows there is a great opportunity
to grow in Sydney, especially in the city.
 A strong trend for healthy and nutritious
products is emerging.
 The market is moving towards healthy fast
food, becoming increasingly aware of health
& nutrition.
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 Lack of perceived value;
 Poor distribution – limited market access,
small number of franchisees;
 Lack of awareness – low investment in
Promotion;
 Problem of positioning - no customer
identification with the brand;
 Perceived as unpopular by the customers;
 Low retention rates – customers are not loyal,
many occasional customers (not profitable);
 Previous management was not specialized in
fast food market – poor management, business
was unprofitable.
 Small market share.
Page 18
 Many new diseases have been discovered and
have caused concerns such as SARS, mad cow
disease and bird flu.
 The substantial number of substitute products
(Asian foods, hotels and cafes)
 Competitors are frequently launching
innovative products.
 Other fast food chains are markedly growing.
 Asian foods are booming.
 Australian economic health (strongly
dependant on global economy and the political
situation)
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3. STRATEGIC OBJECTIVES & ISSUES
3.1 Target Markets: “Young Professional” and “Student”
3.1.1 Market Geographic Factors
Based on information described in Appendix No.4 we were able to define the following areas
and cities where we will focus our sales promotion marketing activities by priorities: NSW,
Victoria, Queensland, Western Australia, South Australia, and Northern Territory. In terms of
the official launch, we plan to go with it in Sydney and in Melbourne. Advertising campaign is
planned on the nation-wide level.
3.1.2 Market Demographic and Lifestyle Factors
The information described in Appendix No.5, together with our primary market research
outcome (for detailed list of findings refer back to Appendices 6-7), helped us clearly and
accurately define two profiles (segments) of our target group in terms of the following three
groups of criteria:
 Demographic factors: sex, age, marital status, qualification, and occupation.
 Market lifestyle factors: attitudes, values, activities, interests of our potential customers
 Usage behaviour factors: time of use, occasion of usage, repetition of usage etc.
3.1.3 Passion Based Market Segments
Based on the previous market analysis and on our primary and secondary research, we have
identified the following two profiles of potential buyers of the new health range at Red Rooster.
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Table No.2: Needs/Passion – Based Market Segments
SEGMENT PROFILE
Demographics:
Age
Income
Marital Status
Children
Qualification
Occupation
Lifestyle:
Free time activities
Health conscious
Values
Roy Morgan Values Segments
“YOUNG PROFESSIONAL”
“STUDENT”
25-35
mid/high
single/engaged/married
no
secondary/university
information-intensive industries
15-25
low
single
no
secondary/university
student
Mainly with friends/club members
- sport and outdoor activities
middle/high level
friendship
Socially Aware/Something
better/Young Optimism
mainly with family and friends
-sport and outdoor activities
middle level
friendship
Look at me
High
Low
Medium
Low
High
High
Lunch breaks
Weekdays or weekends
4 times/week
Lunch/dinner
Weekdays or weekends
2 times/week
Friends
Family members, friends
Eating Habits:
Convenience
Form of leisure
Enjoy the taste
Usage Behaviour:
Time of buying health food
Occasions
Frequency of buying health
products
Buying Decision Forces:
Reference group
For factors and reference groups influencing buying decisions of the identified “Student” and
“Young Professional” refer to Appendices No.16-17. Those influences will be also taken into
consideration within the process of integrated marketing communication mix preparation.
3.2 Market Positioning
The marketing strategy will be based on our portfolio analysis (for details refer to Appendix No.
18). The following factors have been taken into consideration:
3.2.1 Business Performance
 Share Position – Red Rooster occupies 9% of the Australian consumer retail food
industry
 Profitability – Red Rooster’s profitability under Coles Myer was floundering, but with
the ownership of Australia Fast Foods, profits are forecast at AUS$700 million
 Sales Growth – Red Rooster’s growth is set to rise with a forecast for the next two years,
with a target of 132 store openings, including entry into New Zealand
3.2.2 Market Attractiveness
Market Forces:
 Market Size: Red Rooster has an average sized market share in the area of retail fast
food. There is a great potential to grow, thus enhancing market attractiveness.
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 Growth Rate: While launching the new health range, the growth rate will be considered
to be of paramount importance, but eventually there would be some stability stage.
 Buyer Power: As the health range is new and heavily advertised, the consumers will be
receiving ultimate exposure, as well as the extra stores, thus generating a greater amount
of interest for the consumer. The buying power is therefore low.
 Customer Loyalty: Once a customer is satisfied with the product, he/she will stick to it.
Hence, winning the customer loyalty is of utmost importance. Loyalty is very low at the
moment, with 60% of patrons visiting Red Rooster on a yearly basis. The lack of loyalty
can also be attributed to the fast food market, as the consumer’s tastes are fickle and
variety is a feature which fast food retailers can offer easily. Thus lowering the
attractiveness of the market.
Competitive Intensity:
 Number of Competitors: according to the Porter’s 5 forces, competitors are the
strongest force, as there are established international brands, as well as the local and
national competitors Red Rooster must take into consideration.
 Price Rivalry: In the retail food industry, prices can vary, but are relatively similar.
Competitive pricing structures are utilised to enhance wealth.
 Easy of Entry: As already mentioned in the Porter’s Five Forces analysis, entry to the
market is difficult, as the growth rate is low and the cost of entry is relatively high. R&D
costs are high when using an offensive strategy, in order to enter a market. The main
players are Macdonald’s, KFC, Hungry Jack’s and Subway. Establishing a name and
creating the necessary image is extremely difficult
 Substitutes: This factor is most important, as efforts would be made to have a
competitive edge over the substitutes.
Market Access:
 Customer Familiarity: Customers are not as familiar with Red Rooster, as opposed to
their competitors. It is therefore necessary to familiarise customers with Red Rooster as
soon as possible, in order to gain acceptance as the market leader of health food. The
earlier customers become familiar with the new range, the more profitable the launch will
be.
 Channel Access: This factor is also very significant. The product range must be
distributed properly. As Red Rooster has maintained relations with the same suppliers for
the past 25 years, this ensures the reliability of their channels.
 Sales Requirement: A high customer service skilled sales force is needed. They will be
trained in terms of the food available as well as how to treat the most valuable asset to
Red Rooster, its customers.
 Company Fit: Red Rooster’s experience with healthy and nutritious products makes a
perfect match with their even healthier chicken, salads, wholemeal bread and fruit juices.
This launch is extending their image of a health conscious food retailer, concerned for the
well being of the customers.
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4. COMPETITIVE MARKETING STRATEGY
4.1 Competitive Advantage
4.1.1 Cost Advantage:
 Unit Cost: Red Rooster’s unit costs are low, as they usually are in the food industry.
Margin prices are marked up to more than 50%.
 Transaction Cost: The best mode of transaction should be chosen to minimize the cost.
This factor is important up to a certain level.
 Marketing Expenses: Red Rooster’s marketing expenses are high, due to the new health
range being new it will undergo heavy advertising and promotion in the initial product
launch. Some of the advertising will be for the new health range alone and cost more
money. Each time Red Rooster is advertised its brand reaches a higher level of awareness
and hence reinforcing the image of Red Rooster as a health food provider for the health
conscious consumers.
 Overhead Expenses: Overhead expenses are shared among the whole Red Rooster
product range and will be a portion of the total costs.
4.1.2 Differentiation Factors:
 Product and Service Quality: Product and service quality offered by Red Rooster are
excellent, however this excellence remains unrecognised due to poor management by
Coles Myer previously, and lack of strategic direction, which has damaged distribution
and channelling, which has led to lack of awareness of the great quality offered by Red
Rooster, because of the lack of availability of Red Rooster outlets.
 Brand Image: Red Rooster is suffering from a non existent brand image, this is one of
the weaknesses we aim to target in our strategy to grow market share.
 Relative Price: Red Rooster’s price is slightly higher than that of competitors due to
superior quality and nutritious value of the food.
4.1.3 Marketing Advantage:
 Market Share and Brand Awareness: Red Rooster has a decent share of the market, at
9%, however the brand awareness remains low, due to reasons explained above. This has
shown that Red Rooster has a great opportunity to bring its great products to a broader
awareness, thus once this is achieved, market share shall naturally go up.
 Distribution and Sales Coverage: Red Rooster’s distribution and sales coverage is also
a weak point, thus presenting another great opportunity. Once Red Rooster invests in
greater distribution and sales coverage, which will in itself increase brand awareness, and
included with all the special promotions on offer with the product launch, will improve
profits and market share.
4.2 Offensive Competitive Strategy: Market Share Growth
Red Rooster has a certain amount of market share, however it is not (in comparison to its
competitors) reached its full potential. Therefore, Red Rooster - in a position of share offender
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– is engaged in a battle to grow its market share in the retail food Industry, specifically food
retailers which offer health food products (see Appendix No. 18).
QUESTION-MARK:
As can be visually seen in the Boston Consulting Graph Matrix below, the Health Range will
initially be in the Question Mark section, as the product requires significant spending It does not produce positive cash flow at the beginning (mainly because of marketing expenses) but it
is expected to shift to the Stars segment. The Cash Cow segment will be the main product offered
by Red Rooster, which is its core product - Chicken.
Red Rooster Health Food Range - BOSTON CONSULTING GROUP MATRIX
Market
Growth
Stars
Question-marks
Red
Rooster
- Health
10%
Cash Cows
Dogs
Red
Rooster –
Chicken
10X
1x
0.1x
Competitive Position
A key part of Red Rooster’s long-run performance thus relies on its ability to successfully
implement a grow share strategy in the fast-growing consumer and food retailing markets. This
strategy requires a much greater marketing effort and investment in new products to grow their
share of the market, and to become the leaders in producing tasty and nutritious health meals.
The company remains thus committed to:
 Research and Development;
 Efforts to improve its products and service quality at a rate faster than competition,
and
 Fully supporting the marketing budgets needed to gain a high-share position.
The introduction of Red Rooster’s Health Range can be thus considered as an additional step of
Red Rooster growing its market share in the Australian market.
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4.3 Marketing and Financial Objectives
Based on the overall marketing strategy of Red Rooster to enter and grow its market share as a
leader in the health products range offered within the Australian retail food industry, the
marketing objectives for the new Red Rooster health range are as follows:
4.3.1 Short-term Marketing Objectives
1st PHASE: Product Launch and Awareness Building
Timing:
Target Group:
Where:
How:
Market Metrics:
Financial Metrics:
Launch: May 2004, Awareness Building: May 2004 – August 2004
Innovators and Early Adopters
Launch events in Sydney, Melbourne and Brisbane
Nation-wide, some sales promotion activities in capital cities of Australia
For marketing mix tactics see following Section 5.
Build awareness
Initial Market Penetration: 1% of the total market of fast health food.
Total contribution margin: AU$ 17.56 million
For details concerning market and financial metrics refer to Section 6.
2nd PHASE: Further Market Development and Red Rooster Health Range Market
Penetration
Timing:
Target Group:
Where:
How:
Market Metrics:
Financial Metrics:
January 2005 - June 2005
Early Adopters/Early Majority
Nation-wide, some sales promotion activities in capital cities of Australia
For marketing mix tactics see following Section 5.
Market Penetration: 8% of the total market of fast food health range.
Total contribution margin: AU$ 26.23 million. For details concerning
market and financial metrics refer to Section 6.
4.3.2 Long-term Marketing Objectives
3rd PHASE: Lead and Keep the Market (Fast Food Health Range)
Timing:
Target Group:
Where:
How:
Market Metrics:
Financial Metrics:
After the Red Rooster Health Range market penetration the long term
objective will be to keep the control of the market.
Late Majority/Laggards
Nation-wide, some sales promotion activities in capital cities of Australia
For marketing mix tactics see following Section 5.
Market Penetration: 20% of the total market of fast food health range in
2009.
Total contribution margin’s peak in 2009: AU$ 55. 66million.
For additional details concerning market and financial metrics refer to
Section 6.
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5. MARKETING MIX TACTICS
The marketing mix determines the ultimate success of the product. This includes the unique
blend of pricing, promotion, products offering and distribution system designed to reach our
target customers, which are, students and young professionals.
5.1 PRODUCT AND SERVICES
5.1.1 Product Quality
Red Rooster offers a wide and varied menu to customers specialising in quality chicken
products. In building the company’s continuous commitment to meet its customer satisfaction,
the new health products will emphasise, in several dimensions, in achieving its standard for
quality; Taste; Hygiene; Health; Safe
The new grilled chicken was derived from the original recipe made 30 years ago by the Kailis
family. Using only natural ingredients freshly obtained from the market, the new grilled chicken
is bound to give Red Rooster customers a sense of indulgence, minus the guilt. (Ingredients of
new grilled chicken recipe see: Appendix No.19)
The hygiene involved in storage, preparation, serving the new grilled chicken is consistent to the
current code of practice set up in the Red Rooster restaurants. These set of practices have been a
factor in Red Rooster’s success in promoting overall quality services and goods.
Healthy doesn’t mean low fat. Healthy in Red Rooster products is built on the ideology of a
balanced diet. The new grilled chicken meals complete with a wide range of salads, whole meal
buns and fresh juices will provide a nutritional food balance suitable for every patron to carry out
their regular physical activities without worrying about excessive fats or high sugar contents.
(Nutritional facts on the Red Rooster chicken: Appendix No.20)
Customers who feel safe in consuming the new health products will be built upon several facts;
nutrition facts which have been discussed and the method of preparation. The new grilled
chicken will be prepared under a 2500C oven for 5 hours. And according to the Agriculture Food
Safety and Inspection Service, a whole chicken should reach an internal temperature of 180 F.
Such procurement will ensure safe consumption of the new grilled chicken. (Complete method of
preparation: Appendix No.19)
5.1.2 Meals and Sizes
Red Rooster offers a wide range of meals and sizes suited for the various demands of customers.
Nominally, there are 3 different health meals with 3 different sizes available for individuals. In
addition there will be a Coupe Meal suited for couples, a Party Pack which is capable of serving
4-6 people and the Family Pack suited for family dining, serving around 6-8 people. (Complete
menu: Appendix No. 21).
5.1.3 Packaging
All chicken will be packaged using different sizes of recyclable milk board packaging in
accordance to the meal. This is to ensure heat insulation as well as keeping the aroma within the
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packaging. Whole meal buns on the other hand will be packed using a glassine paper. Salads will
be packed inside a recyclable paper bowl covered with standard plastic cover and all fruit juice
will be supplied to customers in a sealed recyclable bottle specially design by Berri for Red
Rooster. All in all the packaging is to build awareness and support the usage of environmental
friendly resources.
5.1.4 Labelling
In every package there will be a concise display of the nutritional facts of the food which is
served at Red Rooster. This will be done in order to provide as much information to the customer
of the balanced diet offered by Red Rooster as well as to build awareness to have a balanced diet.
5.1.5 Product Line Extensions
In extension towards the current offers, the healthy menu would include meals to cater for young
children as well as health meals for senior citizens. In addition, more variety of flavour and
recipe for chicken will be introduced in order to capture more market demand. A Side Dish
Menu will be diversified to include yoghurt as dessert, as well some sandwiches.
5.2 Pricing
5.2.1 Market Based Pricing
The new Red Rooster health food menu will offer a wide range of individual purchases as well
as meal packages for individuals, couples, groups and families. Most of the products offered here
will come in 3 different sizes, which will provide a variety for customers to choose from.
The product will be schedule to launch in the May 28th .Looking at the price affordability for the
given customer’s needs and the competitive offering by the competitors; the market based
performance approach is adopted. The initial pricing strategy will be perceived value pricing.
This was so, given the price for the products benefits in terms of its large portions of chicken,
nutrition’s, superiority value as compared with its competitors and the amount of promotions due
to be launch to strengthen the companies image. As the time progress, different strategies will be
practice in accordance to the market demand and customers perceptions.
For details concerning the recommended price related to purchase of the new health menu refer
to Appendix No.21. For details concerning the competitors´ prices of “substitute products” refer
back to Appendices No. 15.
5.3 Place/Distribution
5.3.1 Channel of Distribution/ Sales Territories
Historically, the Kailis family opened the first Red Rooster store in the Perth suburb of
Kelmscott in 1972. From this store, Red Rooster expanded its chain towards the east, and
currently there are over 290 Red Rooster stores, with an extra 50 franchises across Australia.
Under the new management, Australian Fast Foods, Red Rooster has intended to expand its
stores further by 150. Such expansion in strategic locations provides a good foundation for Red
Rooster to position its self in the health fast food market, thus distributing its products to health
conscious consumers.
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As our target customers are working young professionals and students, the suitable store location
will be targeted in the city area, shopping malls and university areas. As such, Red Rooster will
have to re-position what use to be the country style image with stand alone restaurants to modern
and catching fast food restaurants in shopping malls.
The expansion programme will occur through 2 channels. Primary channels, Australian Fast
Foods will have to locate most of its new stores in populated areas. Ideally, the new stores should
target primary within Westfield shopping malls and properties (Information for Westfield
shopping location: http://www.westfield.com/au). As such agreement of tenancy shall be drawn
between the two parties.
The secondary channel is concerned with franchising (Appendix No. 23). Capital requirement
should be lowered by approximately AU$100,000- $200,000 as the new target area will be a
leasing of shop space in Westfield shopping malls, instead of purchase of land for a whole stand
alone restaurant. In an attempt to attract more franchisees, initial loyalty fees and advertisement
levy will be positioned at 4 % of the gross sales.
5.4 Promotion: Integrated Marketing Communication Mix
5.4.1 Advertising: Awareness Building
Our advertisement campaign is catered towards building brand and product awareness. Thus this
forms Red Rooster’s three important advertising objectives; to inform customers of the new
products development and sales promotions; to continuously persuade new buyers, as well as to
encourage switching of brands from competitors customers; and to gain top- of mind product
awareness.
The key message in the advertising campaign includes:
 Have a balanced diet with Red Rooster
 We offers the best value for meals
 A pleasant place for spending time with friends and family.
Three main medium will be utilize in the advertising campaign; television commercials at
Channel 10 and at Hoyts cinema advertisements, radio commercials and advertisements in
magazines and newspapers such Good Weekend and Sunday Life, SMH, Sydney Magazine and
the Sun Herald.
Nevertheless, a new restructured webpage will provide another medium for advertising as well.
Further to this, occasional advertisement will be placed in city area signboards.
5.4.2 Sales Promotions
The sales promotion strategy used serve several purposes. Primarily the promotion was meant to
entice consumers to purchase the health meals as a strategy to accelerate market penetration.
Secondarily it was to hold loyal consumers and finally the overall intention was to lure
consumers away from competitors’ products.
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The initial promotion tactics adopted in satisfying the primary objectives were targeted at our
main customers namely, students and health conscious professionals. As such, a discount of 10%
will be given to any individuals who buy individual meals with either a health club membership
card or a valid student card.
In the customer retention promotion a Red Rooster free meal card will be launched. The usage
of this card is similar to what we understand as a coffee card. Every customer who purchases any
individual meals will be given a stamp. In collection of 5 stamps, a free small quarter meal will
be given free.
All these promotions will be strongly backed by the advertising strategy and medium adopted in
this marketing plan.
5.4.3 Public Relations: Reference Group Experience
The product will also be pushed through the specialist reviews of magazines and life styles
sections of Sydney’s major newspapers. These include Good Weekend and Sunday Life.
Successful individuals who find Red Rooster products being advantageous in maintaining their
healthy lifestyle will be interviewed and published in the news papers, magazines and foremost
in the restaurant newsletter.
5.4.4 Direct and Online Marketing: Loyal Customers Contacting
The current webpage designed for Red Rooster was rather simplified, providing only the basic
information
in
regards
to
the
restaurant
products.
(http://www.redrooster.com.au/DefaultMain.htm). A design restructure will be carried out,
bringing new ideas and an online marketing strategy to:
 Build awareness of all the current available products as well as future promotions
 Provides information in regards to the products nutrition and facts for healthy lifestyles in
consuming Red Rooster products
 Build up the company image and culture
 To secure and reward loyal customers
 A medium to seek new ideas and constructive feedback
Thus, Red Rooster Discount Club members will be established through the webpage for many
innovators and early adopters who seek to enjoy and try our products. Periodically, emails will
be sent out to them to keep them informed of our recent developments in any form. In addition a
feedback form concerning their recent experience in Red Rooster restaurant will be attached with
the emails.
A discussion forum for members and non- members will be set up to enhance discussions
between individuals, bringing together ideas and opinions of the health products. A discount card
of 10% will also be issued to any new members. In addition a discount card of 20% will be
issued to loyal members who have actively participated in the forum as well as given
constructive feedback to Red Rooster.
The Web page will be updated to include all recent developments in products as well as news
regarding new restaurant openings in the neighbourhood, restaurants of the month, new
promotions and so on. Facts on nutrition of all products as well as information regarding healthy
lifestyle practices will be provided
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6. MARKETING BUDGET
6.1 Forecast Sales
As identified in PEST analysis, consumers are more concerned with their health. The forecast
market share of Red Rooster after launching new health-range products is expected to increase
from 9% in 2004 to reach $1079 millions with 16% of market share in 2009 and remain stable
thereafter, despite the fact that overall growth rate of fast food industry will grow constantly at
1.5% over the forecast period.
Sales forecast for Red Rooster 2004 - 2009
Actual/Forecast Sales
Market potential (millions)
2004
$24,349
2005
$24,853
2006
$25,367
2007
$25,891
2008
$26,427
2009
$26,974
Notes
1
Market demand - fast food industry
(millions)
Year on year growth rate
Market share - Red Rooster
Total revenue - Red Rooster
$7,619
53.30%
9.00%
$724
$7,877
3.37%
10.00%
$788
$8,143
3.37%
10.50%
$855
$8,417
3.37%
11.00%
$926
$8,702
3.37%
11.50%
$1,001
$8,995
3.37%
12.00%
$1,079
2
1. www.euromonitor.com
2. Adapted from wwweuromonitor.com and
www.theage.com.au/articles/2003/06/12/1055220711406.html
Business Performance
Revenue for new health range products will doubly increases over the forecast period, from
A$57.92 million reaching A$102.6 million within 2 years and then gradually rise to A$161.85
million in 2009. Because of the fact that consumers perceive that fast food is a non-healthy food,
marketing expenses will be spent, in particular, for advertisements in the first two years,
calculated by 35% of the previous year’s advertising budget (see Appendix No. 24).
Consequently, net marketing contribution grows markedly to AU$79.32 million in 2009.
Business performance 2004-2009
Business Performance
Total revenue - Red Rooster
Market share - health-range
products
Total customers (millions)
2004
$724
2005
$788
2006
$855
2007
$926
2008
$1,001
2009
$1,079
8%
10.95
10.50%
11
12.00%
11.06
13.50%
11.12
15.00%
11.17
15%
11.22
Revenue per customer
Revenue -health-range
products(millions)
$5.29
$7.52
$9.28
$11.24
$13.44
$14.43
$57.92
$82.74
$102.60
$125.01
$150.15
$161.85
Variable cost per customer
Total variable cost (millions)
$3.44
$37.66
$4.89
$53.81
$6.03
$66.65
$7.31
$81.31
$8.74
$97.65
$9.38
$105.19
Margin per customer
Total contribution (millions)
$1.85
$20.26
$2.63
$28.93
$3.25
$35.95
$3.93
$43.70
$4.70
$52.50
$5.05
$56.66
Marketing expenses (millions)
$2.70
$2.70
$2.00
$1.20
$1.20
$1.00
Net marketing contribution
(millions)
$17.56
$26.23
$33.95
$42.50
$51.30
$55.66
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2
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1. Assumed these figures based on the number of outlets of Red Rooster and market
share
2. Assumed cost based on pricing of Red Rooster's overall products
3. Adapted from overall advertisement expenses in 2003
6.2 Sensitivity Analysis
The major risk associated with the financial estimates are due to sales forecast risks. A sensitivity
analysis for sales volume shows that a 20% variance in forecasted sales volumes would still
result in a positive net contribution margin. The results of the sensitivity analysis are
demonstrated below.
Sensitivity analysis and net marketing contribution
Millions
Net marketing contribution
$70
$60
$50
$40
$30
$20
Base case -20%
$10
Base case sales volume
Base case +20%
$0
2004
2005
2006
2007
2008
2009
6.3 Break-Even Analysis
Break-even analysis based on 2004 costs and pricing per customer shows a break-even as
demonstrated below. This corresponds to a payback period of about 6 months.
Break-even analysis
$18
$16
$14
$12
$10
$8
$6
$4
Total cost
$2
Revenue -health products
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7. IMPLEMENTATION & CONTROL GUIDELINES
7.1 Implementation Plan
The overall marketing project involves a systematic cycle which adopts the PDCA, cycle (Gray
and Larson, 2003) or simply known as Plan, Do Check and Act. In meeting all crucial
requirements, a proper implementation plan has to be carried out. This serves several important
purposes in this project:
 To ensure all critical activities are being carried out
 Provide an overview of the project
 Provide a basis for scheduling activities to ensure activities datelines are met.
 Understanding the relationships of activities.
 Ensure responsibility of management
Thus, the work breakdown structure and the scheduling plan for the Red Rooster marketing
project is clearly shown in Appendix No. 25.
7.1.1 Implementation Milestones and Activities
7.1.2 Development of Goods and Sevices
As such this task involves several collaborations with several departments within the
organisation in regards to the product bundling, additions to the menu, product packaging and so
on. Setting up a specification for control of quality such as determining sizes and portion of each
meals, method of preparation, determining the equipment needed and determinig approximate
service time and code of practice and so on.
7.1.3 Employees Development and Reward s
Employees and Franchisees will receive training in all aspects of the new product begining from
the order process to receival, storage, preparation methods and servicing to customers at the head
office training centers. In addition practical training and assessment will be carried out in
selected restaurants in assurance of quality services. A premium rewarding system shall also be
developed to reward not only loyal but contributing employees.
7.1.4 Development of Sales Distribution Channels
Future developments of restaurants location will emphasise mostly in Westfield shopping malls,
city areas, and locations close to schools and universities. Thus, the Development and Franchise
Departments bear the responsibility in negotiations and spotting these strategic locations.
7.1.5 Development of Systematic Supply Process
Reviewing the order process provides the basis of improving the current system in providing
supplies for the restaurants. Negotiation by the Head office with Berri has to carry out in
provision of the new health drinks. Such then, a supply appropriate system is crucial that raw
material is sufficiently provided to all restaurants.
7.1.6 Development of Price Strategy
Departments involved bear the responsibility to establish and continuously review the pricing
strategy for the new products and subsequent new products introduced. This involves cost
analysis and break even analysis for the new products.
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7.1.7 Development of Promotional Campaign
Task involves redesign and updates on web pages, design of relevant membership card,
establishing advertising activities with television, radio and associated printing media. Such then,
the Department involved needs to deal with public relationships in order to create a good
company image.
7.2 Performance Monitoring
7.2.1 Process Market Metrics
The management tasks of planing and organisation cannot be effective without precise
measurements and controls. Red Rooster utilizes its performance matrix as a standard in
 Tracking the market-based performance;
 Measuring the marketing profit by products; and
 Organise its products around market demands.
Therefore, the company will use the following metrics to calculate and analyse the performance
of the market as to provide indicators to ensure our marketing program is carried out efficiently
and effectively and the level of customer satisfaction is assured;
Customer awareness,
Product preference;
Customer interest and intent;
Customer satisfaction;
Perceptions of product and service quality;
Perceptions of customer value;
Market share
Financial performance
This information will be acquired through market surveys, post-sales surveys of customers, feed
back information from the web and complaints. Variances against these targets will be
monitored, analysed and provided back to the Marketing Department as part of the ongoing
product management process.
7.2.2 End-Result Market and Financial Metrics
In addition to the process metrics above, the following end-result metrics will be regularly
monitored against planned targets,








Market share
Demand;
Product price;
Variable cost;
Volume;
Marketing expenses;
Margin and,
Net marketing contribution.
Variances against these targets will be monitored and provided to the Marketing Department as
part of the ongoing product management process.
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8. REFERENCES
ABS – Australian Bureau of Statistics (2004),
Australian Social Trends, Health Related Actions: Food and energy intake, 1998.
Census, 2001.
Household Expenditure Survey, Australia, 2000.
How Australians Use Their Time, 1998.
National Health Survey, 2001.
National Nutrition Survey: Nutrient Intakes and Physical Measurements Australia, 1998.
Population by Age and Sex, Australian States and Territories, 2003.
Communications and Information Technology, 2003
Household use of information technology, 2003
ACNielsen (2003), All Media Competitive Expenditure Estimates, Sep. 3, 2003.
Asian Food Information Centre (AFIC), (2003) “What should you know about food borne illness”
http://www.afic.org/What%20you%20should%20know%20about%20Foodborne%20Illness.htm accessed
4 May 2004
Axis Australia, (2004) “Australian’s attractions” http://www.axiss.com.au/content/attractions/ accessed
6 May 2004
Bis Shrapnel (2003), Bis Shrapnel Foodservice Report – Trends in Foodservice and Eating Out,
May/June 2003, http://www.c-store.com.au/articles/bis-eatingoutrends.html, accessed: 25/03/2004.
Dodd, T., (2004), “On course for the master’s”, The Australian Financial Review, 19 Apr., p.32-34
Elliot, G., 2003, The couch economy, The Australian, 02 Jan 2003, p. 27-30.
Euromonitor (2003), Consumer Foodservice in Australia, 2003,
http://www.euromonitor.com/Consumer_Foodservice_in_Australia, accessed: 25/03/2004.
“Fast Foods plucks Red Rooster”, Sydney Morning Herald, June 1, 2002
www.news.com.au/common/story_page accessed 20 April 2004
Foreign Agricultural Service/USDA (2000), Australia Hotel, Restaurant, Institutional Food Service
Sector Report 2000, Global Agricultural Information Network Report #AS0012, Mar 12, 2000.
Gudergan, S. P. (2001), Contemporary Marketing Management, Pearson Custom Publishing, Sydney,
2001.
Hungry Jack’s (2004), Hungry Jack’s Website, http://www.hungryjacks.com.au/AboutSchool.aspx,
accessed: 25/03/2004.
“Hungry Jack in talks to buy Burger King”, Sydney Morning Herald, April 11, 2002,
http://www.smh.com.au/articles/2002/04/10/1018333373150.html, accessed: 25/03/2004.
McDonald’s (2004), McDonald’s Website, http://www.mcdonalds.com.au, accessed: 01/04/2004.
Porter, M.E. (1995). Competitive Strategy: Techniques For Analyzing Industries And Competitors, New
York: Free Press; London: Collier Macmillan.
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Red Rooster (2004), Red Rooster Website, http://www.redrooster.com.au, accessed: 05/05/2004.
Reid, M. (2001), Food marketing in the 21st Century: building the consumer–marketer connection,
Nature & Society Forum, www.natsoc.org.au/html/papers/reid.pdf, accessed: 05/05/2004.
Robinson, N. (2004), “Can junk food be healthy?”, The Australian, April 24, 2004
http://www.theaustralian.news.com.au/common/story_page/0,5744,9366932%255E23289,00.html,
accessed: 14/05/2004.
Roy Morgan (2003), QSR Marketing and Advertising Planning (MAP): April 2002 – March 2003.
Subway (2003), Subway Website, http://www.subway.com.au, accessed: 13/05/2004.
Urquhart, B. (2004) Red Rooster/Chicken Treat – “Hot Stuff”, April 2004, Marketing Focus, Perth,
ww.marketingfocus.net.au/Red%2520RoosterChicken%2520Treat%2520Hot%2520Stuff.html+c
hicken+suppliers&hl=en, accessed: 10/05/2004.
Williams, R. (2003), “Red Rooster ready to fly east and ruffle some feathers” – The Age, June 13 2003,
http://www.theage.com.au/articles/2003/06/12/1055220711406.html, accessed: 20/03/2004.
World competitiveness yearbook,
Economic performance, 2004
Government efficiency, 2004
Business efficiency, 2004
http://www01.imd.ch/wcy/factors/ accessed 15 May 2004
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9. APPENDICES
Appendix No. 1: Roy Morgan QSR Marketing and Advertising Planning : April
2002 – March 2003
The research summarized below is secondary research obtained from Roy Morgan Research, one of
Australia’s best known and longest established market research companies. Roy Morgan Research
interviews over 1,000 people (aged 14+) throughout Australia (both metro and country areas) every
weekend. Research is obtained by both face-to-face interviewing and a self-completion survey.
Fast Food Outlets:
KFC, Red Rooster, Nandos, McDonald's, Hungry Jack's, Burger King, Pizza Hut, Pizza Haven, Dominos,
Eagle Boys Pizza, Subway
The sample size for this survey is 12,715 people.
Profile / Segment
REGION
Capital Cities
Country Areas
STATES
N.S.W.
Victoria
Queensland
South Australia
Western Australia
Tasmania
Darwin - Alice Springs
SEX
Men
Women
AGE - summary
14-17
18-24
TOTAL 14-24
25-34
35-49
TOTAL 50 and Over
50-64
65 and Over
TOTAL 18 and Over
EDUCATION LEVEL - summary
Primary School
Some Secondary/Tech.
Intermediate/Form 4/Year 10
5th form/Leaving/Year 11
Finished Tech./HSC/Year 12
Some/ Now at University
Have Diploma or Degree
WORK STATUS OF RESPONDENT
63.70% (Read as "63.7% of all people who have visited or
purchased from the above fast food outlets in the last
4 weeks live in capital cities”).
36.30%
35.00%
24.50%
19.50%
7.90%
10.30%
2.20%
0.70%
48.90%
51.10%
7.30%
15.80%
23.10%
22.80%
30.80%
23.30%
17.80%
5.40%
92.70%
1.10%
16.50%
14.40%
7.00%
19.80%
12.70%
28.50%
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Full Time
Part Time
TOTAL Now Employed
Home Duties
Don't Work
Looking for Full Time work
Looking for Part Time Work
Retired
Students
TOTAL Not Employed
OCCUPATION OF RESPONDENT
(All Workers) - summary
Professional/Manager
White Collar Workers
Skilled Workers
Farm Owner
Others (incl. Semi/Unskilled)
Full Time Workers
Part Time Workers
TOTAL Not Employed
TOTAL
CURRENT
LIVING
ARRANGEMENTS
Live Alone
Partner And No Children
Partner And Children
Single Parent
With Parents
Boarder
Shared Household
Other
ROY
MORGAN
VALUES
SEGMENTS
(Developed
in
conjunction with Colin Benjamin of
The Horizons Network)
Basic Needs
Fairer Deal
Traditional Family Life
Conventional Family Life
'Look At Me'
Something Better
Real Conservatism
Young Optimism
Visible Achievement
Socially Aware
SOCIO-ECONOMIC SCALE
AB Quintile
C Quintile
D Quintile
E Quintile
FG Quintile
43.80%
20.40%
64.20%
10.30%
2.60%
2.80%
2.10%
8.70%
9.30%
35.80%
16.30%
24.60%
8.50%
0.50%
14.40%
43.80%
20.40%
35.80%
100.00%
5.20%
20.30%
41.90%
5.10%
17.10%
1.00%
9.10%
0.50%
1.20%
5.00%
12.10%
10.10%
12.90%
9.00%
4.30%
10.80%
20.20%
14.30%
21.70%
21.60%
21.40%
19.30%
16.10%
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HOUSEHOLD LIFE-CYCLE
Young Singles
Young Couples
Young Parents
Mid-Life Families
Mid-Life Households
Older Households
BODY MASS INDEX (respondents
18+)
Respondents 18+
Underweight
Acceptable weight
Overweight
Obese
Not classified
12.40%
8.30%
31.40%
14.50%
27.10%
6.40%
92.70%
2.60%
37.60%
33.80%
23.00%
3.00%
Source: Roy Morgan Research Pty. Ltd., Melbourne, Australia
FAST FOOD PLACES EATEN AT/TAKEN AWAY FROM IN LAST 4 WEEKS (using the same sample as
above).
Outlet
Number who
have visited
outlet in the
last 4 weeks
K.F.C.
5,759
Red Rooster
Nandos
McDonald's
Hungry Jack's
Burger King
Pizza Hut
Pizza Haven
Dominos
Eagle Boys
Pizza
Subway
TOTAL
2,466
317
7,870
3,293
966
2,263
686
1,830
699
2,390
28,539
Number who
have visited
outlet in the
last 4 weeks
(%)
45.30%
(Read as "Of all the people who have been to the
above fast food outlets, 45.3% have eaten at/taken
away from KFC in the last 4 weeks”).
19.40%
2.50%
61.90%
25.90%
7.60%
17.80%
5.40%
14.40%
5.50%
Total
percentage
18.80%
8%
100%
20%
9%
1%
28%
12%
3%
8%
2%
6%
3%
Source: Roy Morgan Research Pty. Ltd., Melbourne, Australia
Note: Out of a sample of 12,715 people, there were 28,539 visits made to the outlets listed above. This is
an average of 2.24 visits per person.
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Appendix No. 2: Average Weekly Household Expenditure on Food and Nonalcoholic Beverage
meals out and fast foods
meat (excluding fish and seafood)
bakery products, flours and cereals
confectionery, condiments, prepared meals
non-alcoholic beverages
dairy producs
Vegetables
Fruit
Fish and seafood
Edible oils and fat
Egg and egg products
5
0
10
15
25
20
30
35
($)
Source: ABS, 2000, Household Expenditure Survey, Australia.
Evolution in Average Weekly Household Expenditure in Fast Food and Take Away 1994 – 2009:
(Forecast 2004-2009):
($)
180
160
140
120
100
80
60
40
20
0
1994
1999
Expenditure on Fast Food
2004
2009
Total Expenditure on Food
Source: ABS, 2000, Household Expenditure Survey, Australia.
The growth on Fast Food expenditure (14% in 5 years, in average) is a business opportunity for Red
Rooster.
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Appendix No. 3: Australian - Market Lifestyle Factors
When researching on Psychographic aspects, we focus on attitudes, values, activities and
interests of our potential customers. In this section, we analyse secondary data on how
Australians spend their time, the average time expenditure on free time activities and their
attitudes towards a healthier lifestyle.
How Australians spend their time
Men and women spend their day in different ways. On an average day in 1997, men spent 20%
of their day on recreation and leisure, 18% in employment related activities and 7% on domestic
work, while women spent 18% of their day on recreation and leisure, 13% on domestic work, 9%
on employment related and 3% on child care.
Necessary time
In 1997, Australians spent an average of 46% of their time on necessary time activities (ABS,
1998). Necessary time is the time devoted to personal care activities such as sleeping, eating and
personal hygiene. There was an increase of 28 minutes per day in the amount of time spent
eating and drinking between 1992 and 1997. Those who spent time eating and drinking in
commercial venues spent an average 66 minutes per day in these locations and couples with
dependent children were most likely to spend time eating in these locations (see table below).
Household Purchasing Meals and Time spent in commercial venues:
Restauran
t (%)
Takeawa
y (%)
Total (‘000)
Time spent
eating and
drinking in
commercial
venues
(min/d)
Couples with dependent children
(a)
53.7
75.8
1612.2
67
2,406.9
Couples with non-dependent
children
62.6
65.5
751.2
76
447.2
Lone parents
46.8
63.9
631.6
55
387.2
Couples without children
50.8
43.4
1650.2
73
1,959.1
Lone people
48.4
39.9
1652.2
71
942.3
Other
62.3
70.8
636.3
64
1487.1
Total
52.9
56.9
6933.7
66
7629.7
Life Stage
No. of people
eating and
drinking in
commercial
venues (‘000)
(a) Couples with dependent children include households containing both children aged 0-14 and unmarried
children aged 15 and over.
Source: ABS, 1998, How Australians Use Their Time.
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Free Time
According to ABS (1998), in 1997, Australians aged 15 and over spent an average 22% of their
time (about 5 hours per day) on free time activities (ABS, 1998). The most common free-time
leisure activities and the average number of minutes spent on each per day are:
 Audio/visual media: 130 minutes
 Talking (including phone): 35 minutes
 Sport and outdoor activities: 27 minutes
 Reading: 25 minutes
 Games, hobbies, arts: 17 minutes
 Other free time activities: 38 minutes
Average weekly household expenditure on Recreation:
Holidays - Australia
Holidays - Overseas
Other recreational and educational equipment
Books, newspapers, magazines
Audiovisual equipment
Gambling
Animal expenses
Cultural fees and charges
Sports fees and charges
Blank and pre-recorded media
Home computer equipment
0
2
4
6
8
10
12
14
16
($)
Source: ABS, 2000, Household Expenditure Survey, Australia.
Household spending on recreation averaged $89 per week. Expenditure on holidays accounted
for 31% of spending on recreation. Compared to the period of 1993-94, the there was a
significant increase in expenditure on sports lessons (up 107%) and culture and recreation
lessons (up 55%). This reflects the trend towards a healthier lifestyle and represents a business
opportunity for Red Rooster to position itself within the entertainment / healthy market.
Exercise for recreation, sport or fitness
The 2001 National Health Survey collected information on a number of lifestyle behaviours and
related characteristics which have been established as risks to health. Among the risk factors are
exercise, being overweight and some dietary habits. Compared to previous years, Australian
adults are improving against the risk factors, but the proportion of adults who are overweight
continues to increase.
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Exercise
In 2001, 70% of adults used to exercise for recreation, sport or fitness (walking, moderate and
vigorous exercise). Females were more likely to walk for exercise than males, while males were
more likely to undertake moderate and vigorous exercise than females.
Types of exercises practiced by Australian adults in 2001:
58%
50%
40%
33%
20%
11%
Walking
Moderate Exercise Vigorous exercise
Men
Women
Source: ABS, 2001, National Health Survey.
In terms of exercise level and the frequency and duration of exercise, the majority of both males
and females were classified to sedentary (including no exercise) and low exercise levels. Males
aged 18-24 years being most likely to be classified to this high exercise level (21%).
Level and frequency of exercises practiced by Australian adults in 2001:
74%
65%
Men
Women
9%
4%
Sedentary/low level
High level
Source: ABS, 2001, National Health Survey.
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More people are exercising in 2001 than in 1995 and 1990, although differences are small. For
example, the proportion of people exercising at low levels increased from 33% in 1990 to 38% in
2001 while those recording a sedentary exercise level fell from 37% in 1990 to 32% in 2001.
Proportions exercising at moderate to high levels showed little change (at around 30%).
Increase of exercise practice by Australian adults 1990-2001:
38%
37%
32%
Sedentary
33%
30% 30%
Low level
1990
Moderate/high level
2001
Source: ABS, 2001, National Health Survey.
Dietary Habits of Australians
Over the last 20 years there have been improvements in Australians' diets. Even so, the diet of
many Australians is far from ideal, as indicated by the high proportion of people overweight or
obese and the high incidence of related diseases. Despite an abundant supply of information on
what constitutes a healthy diet, in 1995, 57% of all adults were overweight or obese (ABS,
1998). The over consumption of food, coupled with an inactive lifestyle, causes overweight or
obesity. This in turn increases a person's chance of developing diseases such as cardiovascular
disease, some cancers and diabetes.
There have been changes in the quantities and types of foods consumed by Australians. The
consumption of meat products (a main source of saturated fat) has reduced while the
consumption of chicken and seafood, which are generally lower in saturated fats, has increased.
The consumption of fruit and fruit products, vegetables, and grain products has increased. In
addition, the amount of alcohol consumed has declined.
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Daily food intake as a percentage of total food intake for Australians over 18 – 1995:
Cereals and cereal
products
Milk products
Vegetables and
legumes
Meat, poultry and
game
Fruit
Snack foods and
sugar products
Others*
0%
5%
10%
15%
Men
20%
25%
30%
Women
*Others include seafood and fish, egg products, fats and oils, sauces and condiments, and
miscellaneous foods.
Source: ABS, 1998, Australian Social Trends, Health Related Actions:
Food and energy intake.
Fat intake and weight
Fat provides the most concentrated source of energy in the human diet, which also contributes to
the palatability of foods. High intakes of fat, particularly saturated fat, are associated with
elevated levels of cholesterol, obesity and increased mortality from cardiovascular disease in
populations where the level of physical activity is low. According to ABS (1998), adults
consume more energy, fat, cholesterol and alcohol on the weekend than on weekdays. Besides,
on weekdays, intake of vitamins and minerals was generally higher than or similar to that on the
weekend.
In 1995 food and beverages purchased and consumed away from home had a higher fat content
than those consumed at home. Women were less likely than men to purchase and consume food
and beverages away from home (57% compared to 64%). However, when they did, this food on
average had a higher fat content than food purchased by men (36% compared to 34%). This
difference may be partly explained by men's more frequent and higher consumption of alcoholic
beverages which contribute to energy intake but not fat to the diet. Consequently, food purchased
and consumed away from home contributed a smaller proportion of total energy for women
(22%) than men (26%).
Women were generally more concerned about their body weight and diet. Women were more
likely than men to be on a weight-reduction or fat-modified diet (24% compared to 16%). Also,
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of those who consider themselves to be within an acceptable weight range, women were seven
times more likely than men to be underweight (21% compared to 3%) and men were nearly three
times more likely than women to be overweight or obese (38% compared to 14%).
Overweight and Obesity
On average, males‘weight is higher for males than females in all other age groups. Average
weight is greatest in men and women aged 45-64 years, in contrast with the peak in height for
16-24 year olds. This ongoing weight gain, after maximum height is reached, is possibly due to
factors such as exercise and diet.
Source: ABS, 1998, National Nutrition Survey: Nutrient Intakes
and Physical Measurements Australia.
The ABS National Nutrition Survey (1998) concluded that over 85% of children aged 2-8 years
had a normal weight for height. A very small proportion of children of this age had low weight
for height (thinness), and approximately 5% had a high weight for height (overweight).
The majority of people aged 9-18 years had a normal weight for age (approximately 75%). A
small proportion of 9-18 year olds were underweight, and about 23% were overweight or at risk
of overweight.
The ABS National Health Survey (2001) concluded that the proportions of adults classified as
overweight or obese has increased significantly. For both males and females, increases were
recorded in both the overweight and obese groups, and were recorded across all age groups.
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Proportion of adults classified as overweight or obese in Australia (199058%
52%
46%
42%
37%
32%
1990
1995
Women
2001
Men
2001):
Source: ABS, 2001, National Health Survey.
For both males and females the proportion classified as overweight or obese was highest in the
age groups from 45-74 years. At every age, men were more likely than women to be overweight
or obese. Overall, 45% of men and 29% of women were considered to be overweight with a
further 18% of both men and women being classified as obese. For people aged 45 years and
over, only about 25% of men and 35% of women were within an acceptable weight range for
their height. Among females aged 18-24 years 13% were classified as being underweight.
Source: ABS, 1998, National Nutrition Survey: Nutrient Intakes
and Physical Measurements Australia.
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Appendix No. 4: Australian - Geographic Factors
In area, Australia is the sixth largest nation after Russia, Canada, China, the USA and Brazil. Its
population, however, is relatively small (now estimated at just over 19.5 million). The profile for
Red Rooster’s potential customers consists of the following geographic factors:
Land Area and Population by States and Territories
Population (in
m)
Population (in
%)
Capital
800 642
227 416
1 730 648
2 529 875
983 482
68 401
1 349 129
6.7 m
4.9 m
3.8 m
1.9 m
1.5 m
0.5 m
0.2 m
34
25
19
10
7.5
2.5
1
Sydney (4.2 m)
Melbourne (3.5 m)
Brisbane (1.7 m)
Perth (1.4 m)
Adelaide (1.1 m)
Hobart (0.2 m)
Darwin (0.1 m)
2 431
0.3 m
1
7 692 024
19.8 m
100
State/Territory
Area in km2
New South Wales
Victoria
Queensland
Western Australia
South Australia
Tasmania
Northern Territory
Australian Capital
Territory
Australia - TOTAL
Canberra (0.3 m)
Source: ABS, September, 2003
Australia’s Population Density
90% of Australia’s total population are contained within just 2.2% of the continent.





in average
Sydney
Waverley
North Sydney
St.Kilda/Melbourne
: 2,5 people per km2
: 8.400 people per km2
: 6.900 people per km2
: 5.700 people per km2
: 5.500 people per km2
The immediate geographic areas for our marketing focus are the capital cities of the
following states:





NSW (Sydney)
VIC (Melbourne)
QLD (Brisbane)
WA (Perth) and
SA (Adelaide)
 with a population of 11.9 million people (approximately 61% of total population).
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Appendix No. 5: Australian - Demographic Factors
The following information will help us – together with the outputs from our primary market
research – clearly and accurately define a profile of our target group in terms of the following
criteria: sex, age, income, marital status, qualification, and occupation.
Australia’s Adult Population Age Structure (Source: ABS, 2003)
800 000
700 000
600 000
500 000
400 000
300 000
200 000
100 000
0
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
Age Group
Men
Total Number of Men:
5.489.250 (28.1%)
Women
Total Number of Women:
5.508.750 (28.3%)
55-59
50-54
526 500
526 500
663 000
643 500
682 500
702 000
750 750
760 500
760 500
760 500
35-39
741 000
750 750
30-34
702 000
721 500
663 000
643 500
45-49
40-44
25-29
20-24
Men
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Households and Families:
As the new RED ROOSTER’S healthy range is a “lone person household type” of product,
the following information is critical in determining our market potential and the target
group.
(Source: ABS, Census 2001)
Of the 7,072,202 households counted in 2001, with average size of 2.6 people,
68.8% = family households, (1.8% decrease from 1996);
22.9% = lone person households (0.8% increase from 1996);
3.7% = group households (0.4% decrease from 1996).
Of all the 4,936,828 families counted in 2001 in Australia:
47.0% = couples with children (0.4% decrease from 1996);
35.7% = couples without children (1.6% increase from 1996);
15.4% = lone parent families (0.9% increase from 1996).
According to the report, there has been an increase in the number of people living alone,
decline in fertility rate and delay of marriage.
Living alone
In 2001, men under the age of 50 years were more likely to live alone (6.0%) than women
(3.9%), but after the age of 50, women were more likely to live alone (23.3%) than men (13.7%);
While the number of younger people (aged 20-29 years) living alone has almost doubled in the
past 30 years -from 4.7% in 1971 to 7.1 in 2001, the majority still live in family households
(71.2% in 2001, compared to 88.2% in 1971). This is part of a wider trend, with the proportion
of people living alone increasing in each of the five year age groups, from 20-25 years to 60-64
years, since 1971.
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Appendix No. 6: Primary Research – Research Brief and Sample Questionnaire
Market Research Brief – Red Rooster
Primary Qualitative Marketing Research
Aim of the research is to find out:







Who are our potential customers (buyers/influencers, etc.)
what are their characteristics (demographic, psychographic)
If our potential customers do seek the benefits we offer and WHY?
If not, can we force/educate/motivate them to aspire after them?
What would be the reaction of the customers to the launch of a healthier alternative?
what are the motivators of our potential customers to choose Red Rooster as a fast
food option;
What is the customer’s perceived value of Red Rooster as opposed to competitors in
terms of price and product.
Target groups

Australian general public – primarily focused on age group between 16-55
Methodology - Survey
 face to face interview (open and closed-end questions in questionnaires)
Scope of the research
 100 questionnaires
Location – Sydney
 Red Rooster outlets
 Westfield Shopping Centres
 University of Technology, Sydney Campus
1 phase

To address the general public (questionnaires)
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QUESTIONNAIRE :
Hello, we welcome you to join us in our primary collection of data regarding fast food in Australia, with a
focus on Red Rooster. Our aim is to discover your reaction to the possible implementation of a health
food menu within Red Rooster and your perceived value of Red Rooster. All information received is
highly confidential. This survey will take up to a maximum of 10 minutes.
Section A
Sex identification
 male
How old are you?
 <19
 55<
 female
 20-55
What is your occupation?
..........................................................................
What is your marital status?
 single
 married
 engaged
 widowed
Do you have children?
 yes
 no
Could you name three of your favourite hobbies/pastimes?
..........................................................................
..........................................................................
..........................................................................
Section B
What word would you use to describe fast food?
 convenient
 fattening
 tasty
 YES
Have you eaten Red Rooster in the past?
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If not, why? (Skip to Section C)
..........................................................................
If your answer is YES, have you eaten Red Rooster in the last:
 day
week
month
 year
 never
How frequent have your visits been to Red Rooster?
 never or less than
once a month
 Irregular, but less
than 1-2 times a
week
 Between 1-2 times
per week
 Between 3-5 times
per week
 Over 5 times per week
What time of day did you visit Red Rooster?
 morning
 mid morning
 afternoon
 evening
 late evening
Did you visit Red Rooster during the?
 weekday
 weekend
With whom did you visit Red Rooster?
 No one
 Spouse
 Spouse and children
 children only
 friends/relatives
How do you classify the quality of Red Rooster:
 Excellent
 Very Good
 Good
 Fair
 Poor
The pricing of Red Rooster products is?
 Very expensive
 Expensive
 Moderate
 Cheap
 Very cheap
Which item do you regularly buy? (Chips and Drink are included in Meal)
Meal
Alone
BBQ Chicken


Quarter Chicken


Half Chicken


Tropical


Crispy Fillet Burger


Strip Sub


Flayva


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Fresh Sub 97


Chicken Roll


Why do you choose Red Rooster and rate each alternative (1-5).
 Nutrition
 Price
 Taste
 Convenience
 Location
 Other
Excellent Very Good
Fair
Poor
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
1
2
3
4
5
..........................................................................
Do you prefer to eat Red Rooster in?
 Shopping Centre
 Stand alone restaurant
 Take home
 In car
Would you be interested in health food range offered by Red Rooster?
 Definitely buy  Probably buy
 Not certain
 Probably not buy
 Definitely not buy
Which health food product would you be interested in, rate 1-5 ?
Def. Buy
 Fresh Salad Variety
1
 Wholemeal Buns
1
 Grilled Chicken
1
 Fruit Juice Variety
1
 Other...................................
1
Prob. Buy Not Certain Prob. Not buy Def. Not buy
2
3
4
5
2
3
4
5
2
3
4
5
2
3
4
5
2
3
4
5
Do you have any suggestions to improve Red Rooster?
.......................................................................................................................................................................................
.......................................................................................................................................................................................
.......................................................................................................................................................................................
........................
Section C
For purpose of the survey we will restrict Red Rooster competition to McDonalds, KFC, Hungry Jack’s, Subway,
Pizza Hut, Dominos and Oporto.
Please rank these in order of popularity from 1 to 8 (1 being the most popular)
KFC
_____
Red Rooster
_____
Hungry Jacks
_____
Subway
_____
Pizza Hut
_____
Domino’s
_____
McDonald’s
_____
Oporto
_____
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What do you believe is the most popular fast-food chain in Australia?
..............................................................................
What are the last 3 fast food stores/outlets have you visited?
1.............................................................................
2. ...........................................................................
3. ...........................................................................
How often do you buy the following fast-food, rate scale 1-5?
1 never or less than
2 Irregular, but less
3 Between 1-2 times
once a month
than 1-2 times a
per week
week
5 Over 5 times per week
 Red Rooster
 KFC
 Hungry Jacks
 Subway
 Pizza Hut
 Domino’s
 McDonalds
 Oporto
1
1
1
1
1
1
1
1
2
2
2
2
2
2
2
2
3
3
3
3
3
3
3
3
4 Between 3-5 times
per week
4
4
4
4
4
4
4
4
5
5
5
5
5
5
5
5
What word would you use to describe the following fast food restaurants? (For example, expensive, tasty)
KFC .............................................................................
Red Rooster
.............................................................................
Hungry Jacks .............................................................................
Subway .............................................................................
Pizza Hut
.............................................................................
Domino’s
.............................................................................
McDonalds
.............................................................................
Oporto
.............................................................................
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Appendix No. 7: Primary Research – Summary of results
MARKETING MIX USAGE
PRIMARY RESEARCH FINDINGS
PRODUCT
Demographic Characteristics :
54% of the surveys respondents were men and
46% were women
PROMOTION
PLACE
Targeted both
Men and
Women
55% of our interviewees were Australian
residents and 45% were non-residents
88% of all interviewees are in the age group
between 18-34 years old
X
Target between
age group 1834
50% of the respondents were students followed by
35% of professionals.
Target middle
Income groups.
84% of the surveys respondents were single
people and 87% have no children
Target single
people/ no
parental young
family
Psychographic Characteristics:
The most cited hobbies of the respondents were
reading, movies and shopping.
32.5% of the interviewees would definitely buy
and 36.5% would probably buy a new healthy
range launched by Red Rooster
PRICE
Used rapid
skimming price
strategy followed
by
High-value
strategy
Target
entertaining
occasions.
Product Usage
Healthier diet
habit mindset
X
Grilled Chicken and fresh salad variety were
the items more likely to be purchased in a new
Red Rooster healthy range
63% of the respondents eat fast food because of
the convenience
Product
Features /
Benefits
Improve
availability/
market access
Usage behaviour:
54% of the interviewees have already eaten at
Red Rooster and 46% have never tried Red
Rooster before
Improve
awareness/
market
penetration
Improve
retention– nonloyal customers
60% of those who have eaten at Red Roster
before have gone in the last year or more than one
year ago.
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habit mindset
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and intensify
brand exposure
43% of the surveys respondents used to eat at
Red Rooster with friends/relatives and 32%
alone
58% of the interviewees used to eat at Red
Rooster during the afternoons and 63% on
weekends
The most popular meals at Red Rooster are
Quarter Chicken (23%) and Half Chicken
(19%)
The most popular individual items at Red Rooster
menu are Quarter Chicken (26.5%) and Crispy
Fillet Burger (20%)
31% of the respondents visited Red Rooster
because of taste and only 8% because of
convenience
38% would like to consume Red Rooster at
shopping centres and 27% would like to take
home
Product Usage
Target Friends/
individuals.
Target
entertainment lunch among
friends/relatives
on spare time
Product
features
Product
features
Product
Differentiation
Improve
availability/
market access
Improve
availability/
market access
MKTG MIX USAGE
PRIMARY RESEARCH FINDINGS (cont.)
PRODUCT PROMOTION
Customer Perceptions of Red Rooster relative to the competitors:
43% of the respondents perceived the quality of
Product
Red Rooster as good and 34% as very good.
differentiatio
n: taste and
quality
78% of the respondents perceived the price of
Red Rooster as moderate and 14% as cheap
Red Rooster was perceived as relatively
unpopular by the interviewees. The level of
popularity of the fast food chains in Australia was
perceived as: McDonald’s (45%), KFC (27%),
Hungry Jack’s (10%), Pizza Hut (8%), Domino’s
(4%), Red Rooster (3%), Subway (2%) and
Oporto (1%).
Lack of
perceived
benefits
Lack of
awareness,
improve
exposure;
problem of
positioning, no
identification with
the brand image.
McDonald‘s was perceived as convenient by
most respondents (45%). Red Rooster was
perceived as the least convenient (0.8%).
McDonald’s was the leader in awareness among
the interviewees (30%), followed by KFC (23%),
Hungry Jack’s (14%) and Red Rooster (10%).
The customers‘ perceptions about the fast-food
chains were:
Red Rooster - tasty (23%)
KFC - greasy (30%)
Subway - fresh (40%)
McDonald’s – convenient (45%)
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PRICE
PLACE
Value for money
strategy;
economic and
productperformance
relative value
No perceived
value
Lack of
availability,
inconvenienc
e
Poor
distribution /
improve
market
access..
Red Rooster
needs more brand
exposure.
Product
differentiatio
n: taste and
quality
Page 55
28.05.2004
Prepared for: Mr. Paul Vorbach
Pizza Hut – cheap (6%)
Oporto – dry (10%)
Surveyed Genders
100
90
80
Percentage
70
60
50
Male
Female
40
30
20
10
0
Surveyed Genders
Male
Gender
UTS: Marketing, Concepts & Applications (24746)
Female
Page 56
28.05.2004
Prepared for: Mr. Paul Vorbach
Residency in Australia
60
50
Percentage
40
30
Permanent residency
Non- permanent residency
20
10
0
Residency in Australia
Permanent residency
Non- permanent residency
Residency
Age Spread
100
90
80
Percentages
70
60
50
40
Age Spread
30
20
10
0
<19
20-24
25-29
30-34
35-39
Age spread
UTS: Marketing, Concepts & Applications (24746)
40-44
45-49
Page 57
Age Spread
50-54
55>
28.05.2004
Prepared for: Mr. Paul Vorbach
Marital staus
100
90
80
Percentage
70
60
50
40
Marital staus
30
20
10
0
Single
Married
Marital status
Marital staus
engaged
widowed
Children
100
90
80
Percentage
70
60
50
with children
without children
40
30
20
10
0
Children
with children
Children
UTS: Marketing, Concepts & Applications (24746)
without children
Page 58
28.05.2004
Prepared for: Mr. Paul Vorbach
Occupation
100
90
80
Percentage
70
60
50
Students
Professionals
Non-profesionals
Retired
40
30
20
10
0
Students
Occupation
Professionals
Non-profesionals
Occupations
Retired
Perception of fast food
100
90
80
Percentage
70
60
50
Convenient
Fattening
Tasty
Indulgement
40
30
20
10
0
Convenient
Reason for eating fast food
Fattening
Tasty
Reasons
UTS: Marketing, Concepts & Applications (24746)
Indulgement
Page 59
28.05.2004
Prepared for: Mr. Paul Vorbach
Eatan Red rooster in past year
100
90
80
Percentage
70
60
50
Yes
No
40
30
20
10
0
Eatan Red rooster Before
Yes
No
Frequencies visit to Red rooster
100
90
80
Percentage
70
60
50
Daily
Weekly
Monthly
Yearly
40
30
20
10
0
Daily
Frequencies visit to Red rooster
Weekly
Frequency
Monthly
UTS: Marketing, Concepts & Applications (24746)
Yearly
Page 60
28.05.2004
Prepared for: Mr. Paul Vorbach
Time of visit to Red rooster
100
90
80
Percentage
70
60
50
Morning
Mid morning
Afternoon
Evening
Late evenings
40
30
20
10
0
Morning
Mid morning
Time of visit to Red rooster
Afternoon
Evening
Time
Late evenings
Prefered time of visit in the week
100
90
80
Percentage
70
60
50
Weekdays
Weekend
40
30
20
10
0
Prefered time of visit in the week
Weekdays
Time of visit
UTS: Marketing, Concepts & Applications (24746)
Weekend
Page 61
28.05.2004
Prepared for: Mr. Paul Vorbach
Companies during visits
100
90
80
Percentage
70
60
50
Alone
Spouse
Spouse and childred
Children only
Friends and Relatives
40
30
20
10
0
Alone
Spouse
Companies during visits
Spouse and
childred
Children only
Friends and
Relatives
Companies
Quality Perceive of Red rooster
100
90
80
Percentage
70
60
50
Excellence
Very Good
Good
Fair
Poor
40
30
20
10
0
Excellence
Very Good
Quality Perceive of Red rooster
Good
Quality Perceived
UTS: Marketing, Concepts & Applications (24746)
Fair
Poor
Page 62
28.05.2004
Prepared for: Mr. Paul Vorbach
Perceive Price at Red Rooster
100
90
80
Percentage
70
60
50
Very expensive
Expensive
Moderate
Cheap
Very cheap
40
30
20
10
0
Very expensive
Expensive
Perceive Price at Red Rooster
Moderate
Cheap
Price perceive
Very cheap
Most Popular food in Red rooster (Meal)
25
Percentage
20
15
10
5
Most Popular food in Red rooster (Meal)
UTS: Marketing, Concepts & Applications (24746)
Most Popular food in Red rooster
(Meal)
Chicken Roll
Fresh Sub 97
Flayva
Strip Sub
Tropical
Crispy Fillet Burger
Meals
Quarter chicken
Half Chicken
BBQ chicken
0
Page 63
28.05.2004
Prepared for: Mr. Paul Vorbach
Appendix No. 8: Australian Political Environment: Democratic & Stable
10
9
8
Risk of
Political 7
Instability
6
5
4
A u st r a l i a
US
I r e l a nd
UK
S i nga por e
Ge r m a n y
H ong
Fr a nc e
M a l a y si a
J a pa n
K or e a
K ong
Source: World Competitiveness Yearbook 2002
UTS: Marketing, Concepts & Applications (24746)
Page 64
28.05.2004
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Appendix No. 9: Government Efficiency
Extent to which government policies are conductive to effectiveness
Brazil
Russia
Japan
Korea
UK
Netherlands
China
New Zealand
USA
Australia
Singapore
0
10
20
30
40
50
60
70
80
2004(b)
90
2003
Source: http://www02.imd.ch/documents/wcy/content/ge.pdf
(a) Government efficiency based on public finance, fiscal policy, institutional framework,
business legislation and societal framework
(b) Until May 2004
Appendix No. 10: Economic Efficiency
Macro-economic evaluation of domestic economy
Brazil
Korea
Sweden
Australia
New Zealand
UK
Singapore
Germany
China
USA
0
10
20
30
40
50
60
70
80
2004(b)
UTS: Marketing, Concepts & Applications (24746)
Page 65
90
100
2003
28.05.2004
Prepared for: Mr. Paul Vorbach
(a) Economic efficiency based on domestic economy, international trade, international investment,
employment and prices
(b) Until May 2004
Source: http://www01.imd.ch/documents/wcy/content/ep.pdf
Appendix No. 11: Household Computer and Internet Access
HOUSEHOLD COMPUTER AND INTERNET ACCESS
Computer access(a)
Internet access(a)
1998
%
1999
%
2000
%
1998
%
1999
%
2000
%
64
33
66
37
72
43
22
13
31
17
45
26
20
44
61
71
80
45
21
45
64
73
81
48
24
52
66
78
85
53
5
12
21
32
44
16
6
17
31
39
52
22
10
28
40
55
69
33
Households
With children under 18
Without children under 18
Household income
Under $25,000
$25,000-$49,999
$50,000-$74,999
$75,000-$99,999
$100,000 or more
All households
(a) Proportions are of all households in each category.
Source: Household Use of Information Technology, Australia, 2000 (8146.0).
80
70
Internet access
60
Computer access
50
40
30
20
10
0
1998
1999
2000
2001
Projected data for 2001
Source: Household use of information technology, Australia, 2000
Appendix No. 12: Adults Accessing the Internet
ADULTS ACCESSING THE INTERNET(a)(b)
Site of Internet access(c)
Home (%)
UTS: Marketing, Concepts & Applications (24746)
Work (%)
Page 66
Other sites(%) Any site(%)
28.05.2004
Prepared for: Mr. Paul Vorbach
Age group (years)
18-24
25-34
35-44
45-54
55-64
65 or over
Sex
Males
Females
Region
Capital cities
Rest of Australia
All adults
39
34
35
33
18
7
24
33
28
29
13
2
59
33
19
14
8
2
75
62
52
47
26
9
32
25
26
20
24
21
50
43
32
22
29
25
19
23
24
20
22
50
40
47
(a) Proportions are of all persons in each category.
(b) Internet access occurred during the preceding 12 months.
(c) Persons may have accessed the Internet at only one or any number of sites.
Source: Household Use of Information Technology, Australia, 2000 (8146.0).
Appendix No. 13: Current market share per competitor and Sales Forecast for 2004
Sources:
1. Roy Morgan Research “QSR Marketing and Advertising Planning” (2003). We have assumed that the
number of people who visit each outlet equates to the market share of that outlet.
2. Euromonitor “Consumer Foodservice in Australia”;
3. ACNielsen (2003) Individual sales figures have been calculated using the average market share and
total projected sales.
Market share per Competitor (2003) and Sales Forecast for 2004 (AU$ bi)
McDonalds
KFC
Hungry Jacks
Red Rooster
Subway
Pizza Hut
Dominos
Roy Morgan
Market
Share
28%
20%
15%
9%
8%
8%
6%
ACNielsen
Market
Share
26%
18%
11%
8%
5%
4%
7%
UTS: Marketing, Concepts & Applications (24746)
Euromonitor Calculated
Market Share Average Market
Share
27%
27%
18%
18%
13%
13%
9%
9%
6%
6%
6%
6%
4%
5%
Page 67
Estimated
Sales 2004
($bi)
2.1
1.4
1.0
0.7
0.5
0.5
0.4
28.05.2004
Prepared for: Mr. Paul Vorbach
Others
Total
6%
100%
18%
100%
21%
100%
14%
100%
1.2
7.6
Market Share Fast Food Chains (2003)
16% Others
27%
McDonald's
5% Dominos
6% Pizza Hut
6% Subway
9% Red
Rooster
18% KFC
13% Hungry
Jack's
McDonald's
Chicken
Chicken McNuggets (20 pieces)
Chicken McNuggets (9 pieces)
Chicken McNuggets (6 pieces)
Chicken McNuggets (3 pieces)
Crispy Chicken Sandwich
McChicken
Chicken Foldover
Salads
Crispy Chicken Caesar Salad
Garden Mixed Salad
Roast Chicken Salad
KFC
Chicken
Popcorn Chicken Lge
Popcorn Chicken Individual
Popcorn Chicken Kids
Protein (g)
Sugar (g)
Dietary Fibre (g)
Carbohydrates (g)
Sodium (mg)
Cholesterol (mg)
Saturated fat (g)
Fat (g)
Calories
Fat calories
Competitor Products
Weight (g)
Appendix No. 14: Competitive Analysis
320
160
96
64
219
147
n/a
840
420
250
170
510
430
439
440
220
130
90
230
200
n/a
49
24
15
10
26
22
8.9
11
5
3
2
5
6
3.4
125
60
35
25
50
45
n/a
2240
1120
670
450
1090
803
n/a
51
26
15
10
47
41
n/a
0
0
0
0
3
3
n/a
1.7
0.8
0.5
0.3
7
4.5
n/a
50
25
15
10
22
18
n/a
249
200
249
310
73.4
208
140
n/a
n/a
16
3.9
6.5
5
2.3
2.9
50
n/a
n/a
890
n/a
n/a
20
n/a
n/a
3
n/a
n/a
3
n/a
n/a
23
n/a
n/a
170
114
71
660
450
270
400
270
160
44
30
18
10
7
4
75
50
30
1530
1030
640
37
25
16
0
0
0
0
0
0
29
19
12
UTS: Marketing, Concepts & Applications (24746)
Page 68
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Prepared for: Mr. Paul Vorbach
HBBQ Wings Sauced (6)
HBBQ Sauce Boneless Wings (7)
Hot Wings (6)
Extra Crispy Chicken-Breast
Extra Crispy Chicken-Thigh
Extra Crispy Chicken-Whole Wing
Extra Crispy Chicken-Drumstick
Hot and Spicy Chicken - Thigh
Hot and Spicy Chicken - Breast
Hot and Spicy Chicken - Whole Wing
Hot and Spicy Chicken - Drumstick
Original Recipe Chicken - Thigh
Original Recipe Chicken - Breast
Original Recipe Chicken - Whole
Wing
Original Recipe Chicken - Drumstick
Original Recipe Chicken - Breast w/o
skin or breading
Crispy Strips (3)
Hungry Jacks
Chicken
Chicken Tenders (8 pieces)
Chicken Tenders (5 pieces)
Chicken Tenders (4 pieces)
Salads
Caesar Salad with Chicken &
Dressing
Caesar Salad with Dressing
Garden Salad with Chicken & French
Dressing
Garden Salad with Chicken &
Thousand Island Dressing
Red Rooster
Chicken
Chicken - BBQ (Whole)
Chicken - BBQ (Half)
Chicken - BBQ (Quarter)
Nugget Chicken (one)
Chicken Roll
Chicken Strip (one)
Rooster Burger
Crispy Fillet Burger
Flayva
Fresh Sub 97
Strip Sub
Subway
Chicken
Roasted Chicken Breast
Sweet Onion Chicken Teriyaki
Double Meat Chicken
Buffalo Chicken
Chicken Pizziola
Mediterranean Chicken
157
250
134
162
114
52
60
128
179
55
60
126
161
540
600
450
460
370
190
160
400
460
180
150
360
380
300
260
260
250
230
110
90
250
240
100
80
230
170
33
29
29
28
26
12
10
28
27
11
9
25
19
7
5
6
8
7
4
2.5
8
8
3
2.5
7
6
150
75
145
135
120
55
70
125
130
60
65
165
145
1130
1950
1120
1230
710
390
420
1240
1450
420
380
1060
1150
36
49
23
19
12
10
5
14
20
9
4
12
11
1
2
1
0
0
0
0
0
0
0
0
0
0
15
7
1
0
0
0
0
0
0
0
0
0
0
25
35
24
34
21
10
12
22
33
11
13
22
40
47
59
150
140
80
70
9
8
2.5
2
60
75
370
440
5
4
0
0
0
0
11
14
108
151
140
400
25
220
3
24
1
5
95
75
410
1250
0
17
0
0
0
0
29
29
123
77
62
340
210
170
170
110
90
19
12
9
5
3.5
2.5
50
30
25
840
530
420
20
13
10
<1
<1
0
0
0
0
22
14
11
249
183
445
327
60
n/a
27.9
21.3
8
5.9
n/a
n/a
1820
1260
22.9
20.8
2
n/a
8.1
7.3
25.2
12.8
279
180
n/a
7.3
2.2
n/a
1020
13.2
n/a
8.7
14.6
264
287
n/a
17.4
3.7
n/a
833
17
n/a
4.3
15.4
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
1271
650
339
48
677
163
513
583
688
434
785
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
65.5
33.5
17.5
2.9
34.1
9.6
29
29.8
42.3
5.6
40.3
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
3578
1829
954
88
1397
422
1445
1456
1348
1291
1584
41.2
21
11
2.9
58.6
10.7
41.4
49.6
53.6
65.1
87.6
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
18.2
9.3
4.9
0.2
15.7
1.9
8.3
7.4
8.5
7.5
14.7
130
66.2
34.6
2.6
33.8
8.5
23.5
27.3
22.6
26.4
29.1
236
269
322
279
320
306
320
380
410
400
460
470
50
45
70
130
190
170
5
5
8
15
17
19
2
1.5
3
3.5
7
7
45
50
90
50
75
70
1000
1100
1500
1420
1700
1550
47
59
50
45
51
48
5
4
5
4
5
5
8
18
9
8
9
6
23
26
37
25
29
29
UTS: Marketing, Concepts & Applications (24746)
Page 69
28.05.2004
Prepared for: Mr. Paul Vorbach
Salads
Roasted Chicken Breast Salad
Veggie Delite Salad
Tuna Salad
Turkey Breast Salad
303
233
314
289
140
50
240
110
30
10
140
20
3
1
16
2
1
0
4
0
45
0
40
20
300
310
380
320
12
9
11
11
3
3
3
3
2
0
0
1
16
2
13
11
Appendix No. 15: Price Comparison – Fast food Competitors
Primary research was conducted at restaurant locations to determine the following prices. In each
category below, the price reflects the average of the different products within that category.
KFC
Mega Feast
Family Feast
Variety Bucket
Dinner for Two
Dinner for one
Whole Fillet Burger
Original Fillet Burger
Club Burger
Bacon & Cheese Burger
Works Burger
Twister:
Pop Corn Chicken
Chips:
Average
Lowest Price
Highest Price
Red Rooster
Crowd Pleaser
Chicken Double up
Dinner Double
Chicken Meal
¼ chicken meal
Mega Chicken meal
Strip Sub Combo
¼ chicken & chips combo
Fillet Burger Combo
Chicken Dinner Combo
Chicken Roll
Average
Lowest Price
Highest Price
Table of Prices
Hungry Jacks
22.00 Aussie Burger
16.00 Bacon Deluxe meal
9.00 Grilled chicken
8.70 Whopper Meal
5.75 Whopper Junior
4.50 Chicken Fillet Burger
4.50 Fish Burger
4.50 Side salads
4.00 Chips
4.00 Average
3.75 Lowest Price
2.00 Highest Price
1.50
6.94 Pizza Hut
1.50 Family Pizzas
22.00 Large Pizzas
Regular Pizzas
Chicken Wings
22.95 Garlic Bread
10.95 Average
8.00 Lowest Price
5.95 Highest Price
5.95
5.95 McDonalds
4.95 Garden Mix Salad
4.95 Big Mac Meal
4.95 Chicken Salad
4.95 Big Mac
3.95 Quarter Pounder
7.59 Vege Burger
3.95 Average
22.95 Lowest Price
Highest Price
6.95
6.35
6.35
6.25
4.95
3.75
3.75
1.95
1.50
4.64
1.50
6.95
11.95
9.95
6.75
2.75
1.75
6.63
1.75
11.95
5.95
5.45
4.95
3.95
3.25
3.25
4.47
3.25
5.95
The summary of average prices follows below:
Prices (A$)
Red Rooster
Lowest Price
3.95
UTS: Marketing, Concepts & Applications (24746)
Average Price
7.59
Page 70
Highest Price
22.95
28.05.2004
Prepared for: Mr. Paul Vorbach
KFC
Pizza Hut
Hungry Jack's
McDonald's
1.50
1.75
1.5
3.25
6.94
6.63
4.64
4.47
22.00
11.95
6.95
5.95
Price Comparison – Lowest, Average and Highest Price for each fast-food competitor:
Price (A$)
25
20
15
Lowest Price
Average Price
10
Highest Price
5
0
d
Re
t
os
Ro
er
C
KF
a
zz
Pi
H
ut
ry
ng
Hu
's
ck
Ja
M
cD
d
al
on
's
Appendix No. 16: Buying Decision Forces - “Young Professional”
Decision
UTS: Marketing, Concepts & Applications (24746)
Page 71
28.05.2004
Prepared for: Mr. Paul Vorbach
Initiator
Self
User
Influencer
Self
Self or
Friends
Buying
Decision
Young
Professional
Buyer
Decider
Self
Self or
Friends
Source: Adapted from Kotler, Brown, Adam, Armstrong, 2004, in Gudergan (2001) p257
Appendix No. 17: Buying Decision Forces - “Student”
Initiator
Self,
Family or
Friends
Influencer
Self,
Family or
Friends
User
Self
Buying
Decision
Student
Buyer
Self or
Family
Decider
Self,
Family or
Friends
Source: Adapted from Kotler, Brown, Adam, Armstrong, 2004, in Gudergan (2001) p257
UTS: Marketing, Concepts & Applications (24746)
Page 72
28.05.2004
Prepared for: Mr. Paul Vorbach
Appendix No.18: Red Rooster - PORTFOLIO ANALYSIS
Market
Attractivenes
Red
Rooster
OFFENSIVE
STRATEGY
(Entry): As we
are entering a
new market in
health food
products we aim
for market
share growth.
We need to
invest heavily to
establish a
competitive
advantage
66.7
33.3
33.3
66.7
3
Competitive
Advantage
Source: Adapted from Best, 2004, p. 279, in Gudergan (2001)
UTS: Marketing, Concepts & Applications (24746)
Page 73
28.05.2004
Prepared for: Mr. Paul Vorbach
Appendix No. 19: Recipe for Grilled Chicken
Grilled Chicken Recipe:
Whole Chicken
Whole marinated chicken, wood fire roasted to enhance flavour, melt away unwanted fat and provide a
healthy alternative to fried food and other "fast food". Chicken is quartered or left whole.
Ingredients include:
salt
paprika
cayenne pepper
onion powder
thyme
white pepper
garlic powder
black pepper
roasting chicken
onions, peeled and quartered
Methods of Preparation:
1. Blend all spices together and set aside.
2. Remove neck and giblets from chicken cavity, rinse well inside and out, and pat dry with paper
towels.
3. Rub with spice mixture, both inside and out, then stuff cavity with onions.
4. Wrap in a resealable "food grade" plastic bag and tie closed.
5. Remove from plastic bag and place in a shallow baking pan.
6. Roast uncovered in a 250 F oven 5 hours.
7. According to Agriculture Food Safety and Inspection Service, a whole chicken should reach an
internal temperature of 80°C.
8. Baste with drippings every 30 minutes after the first hour.
9. Let rest for 10 minutes before carving.
Nutrition Facts:
Calories 360
Calories from Fat 160
Amount per Serving (165g)
Total Fat 15g
Saturated Fat 3g
Polyunsaturated Fat 0.4g
Monounsaturated Fat 0.1g
Cholesterol 115mg
Sodium 440mg
Potassium 331mg
Total Carbohydrate 1g
Dietary Fibre 0g
Protein 22g
UTS: Marketing, Concepts & Applications (24746)
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Sugar 1g
Vitamin A 1657mcg
Vitamin B6 0.3mg
Vitamin B12 0.0mcg
Vitamin C 12mg
Vitamin E 0mcg
Calcium 49mg
Magnesium 24mg
Iron 1mg
Appendix No. 20: Nutrition for whole chicken
0
0
cayenn onion
white garlic black
thym
roasting
e powde
peppe powde peppe
onions
e
chicken
pepper
r
r
r
r
0.62
0.22 0.24 0.04
0 0.24 0.11 228.99 3.48
0.54
0.31 0.03 0.01
0 0.01 0.03 211.76 0.48
0
2.34
1.02
1.94
0.2
0
1.02
0.68
23.95
0
0.29
12.14
0.11
5.72
0.08 0.03
8.33 0.81
0
0
0.05
4.65
0.05
11.62
2.68 2885.76
0.05
0.4
0.14
0.12 0.52
0
0.09
0
0
0
0
salt paprika
Protein
Total lipid (fat)
Carbohydrate,
by difference
Ash
Energy
Water
Caffeine
Theobromine
Energy
Fibre, total
dietary
Calcium, Ca
Iron, Fe
Magnesium, Mg
Phosphorus, P
Potassium, K
Sodium, Na
Zinc, Zn
Copper, Cu
Manganese, Mn
Selenium, Se
Vitamin A, IU
Retinol
Vitamin A, RAE
Tocopherol,
alpha
Vitamin E
Vitamin C, total
0
50.78
0
0.88
5.76
0.08
0.24
0
1.92
9301.9
2
0.02
0.01
0.02
0.02
7.43
0.99
7.77
14.49
98.45
0
0
0
0
23.96 34.82 3.38
0.49
0.14 0.11
0.14
33.08
1.11
37.28
114 3034.08
269.0
0.11 875.08
1145.56
4
0
0
0
0
12077.4
12698.0
11.2
477
4
5
0.28
0
7.43
1.3 0.07
0
0.36
0.46
908.48
0.17
0.04
0.03
0.01
0.04
0.04
0.17
0.16
2545.3
0
748.98
7
0
0
0
0 127.26 37.46
0.06 0.01
0
0
0.01 0.01
0.05
0
0
0
0
0.04
0
0.01
0.53
0.01
0.01
0.06
0.03
14.3
0.61
0.24
204.41
0 38.02
0
0
1.99 1750.16
0 5084.52
0
0
0
0
0
0
0.03
2.99
0.09
1.38
UTS: Marketing, Concepts & Applications (24746)
0
1.9
0
0.35 1.28
Page 75
0 1.12 4.59
133.6
0 0.04
0.3
13.49
0 0.81 2.04 253.84
0 5.84 1.82 2217.76
0 15.41 13.22 2618.56
5.4
0.54
0
0
3.24
0.14
1.28
0.85
4.87
0
233.94
213.17
60 227.12
0.66
15.91
30 301.64
99 2353.19
471 3282.32
10223.5
9
6
0.57
15.23
0.18
0.86
0.41
0.84
1.8 207.17
1.43
2.66 8.71
0.14 0.06
2.74 2.93
5.27 8.16
36.25 22.63
0 19.46
0 25.89
Total
0
0
0
0.25
0
0.1
0.01
0.22
521.04
521.04
20.04
0
0
521.04
687.77
0.93
0.93
0.93
19.2
1.06
45.71
28.05.2004
Prepared for: Mr. Paul Vorbach
ascorbic acid
Thiamine
Riboflavin
Niacin
Pantothenic acid
Vitamin B-6
Folate, total
Vitamin B-12
Folic acid
Folate, food
Folate, DFE
Tryptophan
Threonine
Isoleucine
Leucine
Lysine
Methionine
Cystine
Phenylalanine
Tyrosine
Valine
Arginine
Histidine
Alanine
Aspartic acid
Glutamic acid
Glycine
Proline
Serine
Cholesterol
Fatty acids, total
saturated
4:0
6:0
8:0
10:0
12:0
14:0
16:0
18:0
18:1
undifferentiated
18:2
undifferentiated
18:3
undifferentiated
20:4
undifferentiated
22:6 n-3
0
0
0
0.03
0.07
0.64
0.07
0.17
4.45
0
0
4.45
4.45
0.01
0.02
0.16
0
0.77
1.54
87.8
11.82
4.28
80.16
4.14
0
80.16
80.16
2.54
9.43
11.37
16.62
18.57
6.07
3.07
8.88
7.35
11.1
14.4
6.69
13.43
20.43
33.4
15.11
11.25
8.1
975.28
0.13
0.06
0.44
0.32
0.35
57
0
0
57
57
0.05
0.08
0.12
0.12
0.16
0.03
0.06
0.09
0.09
0.08
0.47
0.06
0.1
0.19
0.56
0.14
0.11
0.1
0
0.95
1.7
89.1
12.22
4.91
148
4.14
0
148
148
2.6
9.53
11.51
16.77
18.76
6.1
3.14
8.99
7.44
11.2
14.93
6.76
13.53
20.65
34.04
15.27
11.37
8.21
975.28
0
0
0
0.09
0.06
0
0
0.01
60.52
0.08
60.77
0
0
0
0
0
0
0
0
0
0
0
0
0.01
0.02
0.04
0.01
0
0
0
0
0
0
0.04
0.01
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.01
0
0
0.27
1.74
44.36
12.02
0
0
0
0
0
0
0.07
0.01
0
0
0
0
0.28
1.76
44.53
12.05
0
0.05
0.05
0
0
0
0.01
73.35
0.07
73.52
0
0.31
0.14
0.01
0
0
0.01
40.61
0.18
41.27
0
0.04
0.01
0
0
0
0
2
0.01
2.07
0
0
0
0
0
0
1.07
0
1.07
0
0
0
0
0
0
0.4
0
0.4
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0.04
1.91
0
0
1.91
1.91
UTS: Marketing, Concepts & Applications (24746)
0.01
0
0
0
0.02 0.01
0
0.03
0
3.98 0.36
0
0
0
0
3.98 0.36
3.98 0.36
0
0
0
0
0.01
0
0.01
0
0.01
0
0
0
0.01
0.01
0.01
0
0.03
0
0.01
0.01
0.05
0.01
0.01
0.01
0
0
Page 76
0
0
0
0
0.01
0
0.01
0
0
0.01
0
0
0
0
0
0
0
0.1
0
0
0.1
0.1
0
0.04
0.03
0
0
0.03
0.03
0
0.01
0.01
0.01
0.01
0
0
0.01
0
0.01
0.02
0
0
0.02
0.03
0.01
0
0.01
0
0
28.05.2004
Prepared for: Mr. Paul Vorbach
16:1
undifferentiated
18:4
20:1
20:5 n-3
22:1
undifferentiated
22:5 n-3
Phytosterols
Fatty acids, total
monounsaturate
d
Fatty acids, total
polyunsaturated
0
0.01
0
0
0
0
11.89
0
11.9
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2.27
0.13
0
0
0
0
2.27
0.13
0
0
0
0
0
0
0
0
0
0
0
0
7.35
0
1.49
0
2.09
0
0.97
0.13
0
0
0.11
0
45
0.13
57.01
0
0.05
0.05
0
0
0
0
0.01
88.71
0.07
88.9
0
0.35
0.15
0.01
0
0
0.01
0.01
45.42
0.19
46.14
Sources: http://www.redrooster.com.au/DefaultMain.htm.
Appendix No. 21: Menu for Red Rooster
Menu for Red Rooster
Chicken
Quarter Chicken
Half Chicken
Whole chicken
$4.45
$6.45
$10.45
Salads
Garden green salad
Caesar salad
Pasta salad
Greek salad
Small
$3.95
$3.95
$3.95
$3.95
Medium
$4.95
$4.95
$4.95
$4.95
Large
$5.45
$5.45
$5.45
$5.45
Buns
Whole meal Buns
Small
$0.95
Medium
$1.45
Large
$1.95
Fresh fruit juice
Small
$1.45
Medium
$2.45
Large
$2.95
Individual meals
Quarter meals
Half meals
Whole meals
Small
$5.95
$7.95
$12.45
Medium
$6.95
$8.95
$13.95
Large
$7.45
$9.45
$14.45
Mega
$7.45
$7.45
$7.45
$7.45
All small/medium/large individuals meals comes with a standard size chicken comes with a
small/medium/large salad of choice, a small/medium/large whole meal bun and a
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small/medium/large fresh juice. Go Super with addition piece of quarter chicken with only
$4.00 with all meals.
Coupe meals (serve 1-2 individuals)
$18.95
All coupe meals come with two pieces of quarter chicken with 2 medium choices of salads, 2
medium whole meal buns and 2 small fresh fruit juices.
Party Pack (serve 3-4 individuals)
$29.95
All Party pack comes with a whole chicken and a half chicken with 2 choices of Mega salads, 4
large whole meal buns and 4 large Fresh fruit juice.
Family Pack (serve 4-6 individuals)
$39.95
All Party pack comes with 2 whole chickens with 3 choices of Mega salads, 4 large whole meal
buns and 6 large Fresh fruit juice.
Appendix No. 22: Salad Recipes
Garden Green Salad
Our salads are perfectly suitable for healthy diets. It consists of fresh ingredients. It is a mixture of a
variety of vegetables.
Ingredients include:
Onions
Green bell peppers
Mixed greens
Tomato
Onion powder
Garlic powder
Ground black pepper
Salt
Balsamic vinaigrette salad dressing
Method of Preparation:
1. Sauté onion and bell pepper until soft; set aside to cool.
2. Combine the onion, pepper, salad greens, deli meat and tomato.
3. Sprinkle with the onion powder, garlic powder, black pepper and salt.
4. Toss to mix.
5. Pour on enough salad dressing or vinegar to coat, toss again and serve.
Nutrition Facts:
Calories 436
Calories from Fat 218
Amount Per Serving 1
Total Fat 24.3g
Saturated Fat 6.8g
Polyunsat. Fat 5.3g
Monounsat. Fat 9.5g
Cholesterol 156mg
Sodium 177mg
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Potassium 466mg
Total Carbohydrate 2.4g
Dietary Fibre 0.6g
Protein 49g
Vitamin A 441mcg
Vitamin B6 0.8mg
Vitamin B12 0.5mcg
Vitamin C 11mg
Vitamin E 0mcg
Calcium 30mg
Magnesium 44mg
Iron 2mg
Caesar Salad
A fresh mix of fresh lettuce, olive oil, parmesan cheese, and Caesar dressing.
Ingredients include:
Olive oil
Lemon juice
Prepared mustard
Garlic
Romaine lettuce
Parmesan cheese
Ground black pepper
Caesar dressing
Methods of Preparation:
1. Mix oil, lemon juice, mustard and garlic well.
2. Combine romaine, croutons, parmesan, and pepper.
3. Drizzle with dressing.
4. Toss to coat.
Nutrition Facts:
Calories 192
Calories from Fat 130
Amount Per Serving 1
Total Fat 14.6g
Saturated Fat 3.9g
Polyunsat. Fat 1.1g
Monounsat. Fat 8.8g
Cholesterol 9mg
Sodium 292mg
Potassium 278mg
Total Carbohydrate 8.9g
Dietary Fibre 1.9g
Protein 7.6g
Vitamin A 2272mcg
Vitamin B6 0.1mg
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Vitamin B12 0.2mcg
Vitamin C 22mg
Vitamin E 1mcg
Calcium 211mg
Magnesium 14mg
Iron 1mg
Pasta Salad
A colourful pasta salad full of flavour.
Ingredients include:
Penne pasta
Italian salad dressing
Green pepper
White onions
Tomato
Cucumber
Black olives
Parmesan cheese
Salt
Pepper
Garlic powder
Methods of Preparation:
1. Boil pasta, drain well.
2. Chop all vegetables and place them together.
3. Mix pasta in with vegetables.
4. Add both cheeses, mix well.
5. Add salad dressing.
Nutrition Facts:
Calories 159
Calories from Fat 92
Amount Per Serving 1
Total Fat 10.3g
Saturated Fat 5.7g
Polyunsat. Fat 0.4g
Monounsat. Fat 3.7g
Cholesterol 22mg
Sodium 665mg
Potassium 108mg
Total Carbohydrate 4.6g
Dietary Fibre 1.1g
Protein 12.5g
Vitamin A 420mcg
Vitamin B6 0.1mg
Vitamin B12 0.4mcg
Vitamin C 18mg
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28.05.2004
Prepared for: Mr. Paul Vorbach
Vitamin E 0mcg
Calcium 415mg
Magnesium 20mg
Iron 0mg
Greek Salad
A delicious salad that is absolutely healthy.
Ingredients include:
Boiling potatoes
Green bell pepper
Parsley
Green onions
Salad dressing
Head of lettuce
Watercress
Tomatoes
Cucumber
Avocado
Feta cheese
Beets
Greek olives
Methods of Preparation:
1. Boil potatoes in skins for 30 minutes.
2. Drain, cool and cut into slices.
3. Add peppers, onions and parsley.
4. Fold in salad dressing and lightly salt if wanted.
5. 1 head of lettuce shredded, saving the good outer leaves 12 sprigs of watercress, 2 tomatoes cut
into 12 wedges, 1 cucumber cut into 8 fingers, 1 avocado cut into 8 wedges, 4 portions of Feta
cheese, 1 green pepper cut into 8 rings, 4 slices of cooked 4 anchovy fillets, 12 Greek olives, 12
Salonika peppers, 4 radishes cut into rosettes, 4 whole green onions.
6. Place the 3 cups of potato salad in a mound in the centre of the lettuce. Cover with the remaining
shredded lettuce, mounding it up high.
7. Arrange the watercress on top.
8. Place the tomato wedges around the bottom outer edge of the lettuce. Place the cucumber fingers
in-between the tomatoes standing upright on the lettuce. Put avocado around the same way so you
have tomato, cucumber, avocado repeating all round.
9. Place the 4 fetas around the top in a circle. Add the beets on the feta on the beet. Place the
anchovy on top of the beet/feta.
10. Place the olives, peppers, green onions.
11. Dressing 1/4 cup white vinegar 1/4 cup olive oil 1/4 cup vegetable oil oregano Blend the two oils.
12. Sprinkle the entire salad with the vinegar then with the blended oils.
13. Sprinkle oregano all over.
14. Ready to be served.
Nutrition Facts:
Calories 809
Calories from Fat 537
Amount Per Serving 1
Total Fat 59.8g
Saturated Fat 36.2g
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Polyunsat. Fat 3.3g
Monounsat. Fat 16.6g
Cholesterol 229mg
Sodium 2797mg
Potassium 1110mg
Total Carbohydrate 34.6g
Dietary Fibre 7.3g
Protein 38.9g
Vitamin A 3331mcg
Vitamin B6 1.6mg
Vitamin B12 4.0mcg
Vitamin C 162mg
Vitamin E 2mcg
Calcium 1210mg
Magnesium 104mg
Iron 3mg
Appendix No. 23 Franchise Information
FRANCHISE ACTIVITY
Red Rooster first opened in Western Australia in 1972. From its humble beginnings it has grown
to become Australia's largest BBQ Chicken operator providing their customers with Australia's
favourite BBQ chicken, great chicken burgers, subs, wraps and Kids meals and the best chips in
the land.
Red Rooster is spreading its franchise network to regional New South Wales, Victoria and South
Australia plus the new markets of Tasmania and New Zealand with an aim to add a further 150
outlets in Australia. This expansion presents fantastic opportunities for single and Multi-Site
Franchise operators who have the energy, commitment and skill to share in the potential rewards
on offer.
FINANCIAL DETAILS
CAPITAL REQUIRED: Approximately $500,000-550,000.
ROYALTY: 5% gross sales.
ADVERTISING LEVY: 5% of gross sales.
FRANCHISOR SUPPORT
Includes assistance finding suitable store location, assistance in negotiating contracts and lease
arrangements, turnkey approach to store construction, design and fit out, extensive twelve week
training program and access to all Operation Manuals, Videos and associated material with
ongoing updates, assistance with planning the opening and successful running of your store,
UTS: Marketing, Concepts & Applications (24746)
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28.05.2004
Prepared for: Mr. Paul Vorbach
ongoing support including performance and operational evaluation, management of advertising
funds to maximize outcomes and assist you with planning local marketing ideas and activities.
CONTACT
Alan Tulloch, National Franchise Manager
15 Dalmore Drive, Scoresby
Victoria Australia 3179
PHONE: (03) 9237 8779, 0409 333 303 FAX: (03) 9763 0430
EMAIL: [email protected]
WEBSITE: WWW.RED-ROOSTER.COM.AU
Appendix No. 24: Total Media Spend in Australia by QSRs
AUD$ 000’s
Franchise
TV
Spend
Press Magazines Radio Cinema Outdoor Total % of total
spend
Pizza Hut
Pizza Haven
3794
389
10
2
0
0
7
1
0
0
6
0
3818
392
4%
0%
Dominos
5310
21
0
13
0
0
5344
6%
Eagle Boys Pizza
1192
6
0
0
0
3
1201
1%
Subway
KFC
3938
15861
153
26
43
0
340
334
42
14
398
259
4913
16493
5%
18%
Red Rooster/Chicken
Treat
Nandos
7091
5
21
258
0
78
7453
8%
20
0
0
115
0
0
135
0%
McDonalds
18481
474
187
2947
481
993
23563
26%
Hungry Jacks/Burger
King
Taco Bell
10014
49
91
37
0
134
10325
11%
730
0
0
58
0
0
788
66820
746
342
4110
537
1871
Other
16709
Total
1%
18%
91134
(ACNielson 2003)
UTS: Marketing, Concepts & Applications (24746)
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28.05.2004
Prepared for: Mr. Paul Vorbach
Appendix No. 25: Work Breakdown Structure and Gantt Chart
WBS
Activity
1
Implementation project plan
1.1
Owner
Success
Criteria
Sponsoring the Project
1.1.1
Create project Charter
Management
Charter created
1.1.1
Obtain management commitment
Management
Management
commitment
obtained.
1.2
Defining the Project
Understand objectives and plan defining
activities
Develop project scope, deliverables and criteria
for success
1.2.1
1.2.2
Project Manager
Project Manager
1.2.3
Conduct pre-study of project plan effectiveness
Project Manager
1.2.5
Assess project plan effectiveness
Project Manager
1.3
Project Management Plan
Define and develop project organisational work
units
Develop project working units and scheduling
tasks.
1.3.1
1.3.2
Project Manager
Project Manager
1.3.3
Conduct of risk assessment
Project Manager
1.3.4
Integrate project organisation unit budgets
Project Manager
1.3.5
Finalise Project Plan
Project Manager
2
Development of goods and services criteria
UTS: Marketing, Concepts & Applications (24746)
Page 84
All risk aspect
covered
Project budget
approved
Project plan
approved
Finish
Date
4-Mar04
18-Feb04
16-Feb04
18-Feb04
25-Feb04
19-Feb04
20-Feb04
22-Feb04
25-Feb04
4-Mar04
26-Feb04
28-Feb04
1-Mar04
2-Mar04
4-Mar04
22-Mar04
28.05.2004
Prepared for: Mr. Paul Vorbach
2.1.2
Set up Menu criteria
Marketing
Manager
2.1.3
Setting quality specifications for meals
R&D/ Marketing
2.1.4
Determination of production process
R&D/ Marketing
2.1.5
Determination of production equipments
R&D/ Marketing
2.1.4
Setting quality specifications for meals
R&D/ Marketing
2.1.5
Create Franchise operation system
R&D/ Marketing
2.1.6
Setting code of practice and service
specification
R&D/ Marketing
3
3.1
Employees and Reward developments
Employees developments
Recruitments of new employees and
Franchisers
Determine employees job analysis and job
design
Conduct Training on current employees and
Franchisers
Conduct Training on new employees and
Franchisers
Practical assessments on all employees and
Franchisers
3.1.1
3.1.2
3.1.3
3.1.4
3.1.5
HR / Franchise
HR
HR / Franchise
HR / Franchise
HR / Franchise
3.2
Develop Reward System
3.2.1
Develop employees performance criteria
HR. Dept
3.2.2
Develop employees reward system
HR. Dept
3.2.3
Integration with overall organisation units
HR. Dept
4
All staff meet
required criteria
Development of Sales Distribution Channels
4.1.1
Activate negotiation with possible property
channel
4.1.2
Secure contractual strategic shop units
4.1.3
Secure contractual potential Franchiser
4.1.4
Prepare shop units for business
5
Job analysis and
design finalise
Development
Dept
Development
Dept
Development
Dept
Development
Dept
Agreement
secured
Agreement
secured
Meeting
required date
Development of Systematic Supply Process
5.1.1
Develop contractual agreement with suppliers
Purchase/ supply
Dept
5.1.2
Develop systematic supply and logistic line
Purchase/ supply
Dept
5.1.3
Create proper restaurant order process
Purchase/ supply
Dept
5.1.4
Assess and validate supply line effectiveness
Purchase/ supply
Dept
UTS: Marketing, Concepts & Applications (24746)
Page 85
Agreement
secured
Having a
systematic
process in line
Includes all
relevant
procedure
6-Mar04
9-Mar04
13-Mar04
14-Mar04
18-Mar04
20-Mar04
22-Mar04
28-May04
28-May04
30-Mar04
31-Mar04
21-Apr04
30-Apr04
28-May04
14-May04
20-Mar04
12-Apr04
14-May04
14-May04
31-Mar04
23-Apr04
23-Apr04
14-May04
17-May04
31-Mar04
24-Mar04
23-Apr04
17-May04
28.05.2004
Prepared for: Mr. Paul Vorbach
6
Development of Price Strategy
6.1.1
Assess profitable margin
Finance Dept
6.1.2
Work out cost of marketing campaign
Finance Dept
6.1.3
Determination of Pay back years and ROI
Finance Dept
6.1.4
Determination of price
Finance Dept
7
Development of Promotion Campaign
7.1
Webpage Restructure
MIS Dept
7.1.1
Web page updates
MIS Dept
7.1.2
Develop forum, memberships and feedback
channels
MIS Dept
7.1.3
Design initiation
MIS Dept
7.1.4
Assess and validation
MIS Dept
7.2
Advertising campaign
7.2.1
Negotiation advertising concepts with media
7.2.2
Secure and implement advertising campaign
7.2.3
Design of memberships and Free meal card
8
Marketing
Manager
Marketing
Manager
Marketing
Manager
Product Launch
3.8.1
Commence sales
Project Manager
3.8.4
Commence market performance assessment
Project Manager
9
Budget
approved
Work out
required return
Engagement Close
9.1
Confirm Engagement (PSI)
9.1.1
Perform project completion process
Project Manager
9.1.2
Reconcile project financials
Project Manager
9.2
Closing the Project
9.2.1
Release staff
Project Manager
9.2.2
Manage end of project
Project Manager
UTS: Marketing, Concepts & Applications (24746)
Page 86
Design
approved
All relevant
work is carried
out
All advertising
work in place
22-May04
31-Mar04
14-Mar04
8-May04
22-May04
31-May04
24-May04
4-Apr04
30-Apr04
15-May04
24-May04
31-May04
30-Mar04
31-May04
17-Mar04
31-May04
31-May04
31-May04
To
confirm
To
confirm
To
confirm
To
confirm
To
confirm
To
confirm
To
confirm
28.05.2004
Prepared for: Mr. Paul Vorbach
UTS: Marketing, Concepts & Applications (24746)
Page 87
28.05.2004