Chapter 1

The Problem and Its Background

Introduction

Marketing is defined as profitable relationship between the seller and

customer. It is the promotion of a product or service that the company offers. The

marketing before is called trade, commerce, and distribution which are used in

exchanging products. The radio, television and print advertisement are used for

promoting products. The view of marketing before is “telling and selling”, but now

the seller needs to meet the satisfaction of the customer, not just to meet but to

exceed. Companies with the most effective marketing efforts thoroughly understand

their customers and create a product or service to meet the needs and satisfaction of

the customer while using the best channels for communicating to the target market

Fast food industry is a subsector of the larger restaurant industry. The three (3)

selected fast food chain in the Philippines serves good, clean, and cheap food in a

moment of time. Fast food chains in the Philippines commonly use radio, television,

and billboards to promote their products. The success of fast food industry in the

Philippines can be attributed to the factors of standardized procedures, limited menus,

placing emphasis on value speed and efficient service and franchising. The fast food

industry has changed the urban lifestyle because it developed well in cities but fast

food companies are reluctant to develop a market in the suburban. (KJ Chen, 2008)

Jollibee, McDonald’s and Chowking are the leading fast food chains in the

country (N. Bermosa, 2015). They already have numerous customers but they

continue perform marketing strategies in order to gain more customers. They perform

different marketing strategies in order to meet the satisfaction level of their customers.

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Meeting the needs of the customers is not that easy. They use contemporary

marketing approach which builds a bridge between the business and the customers

through gamification. Jollibee is the leading fast food chain in the country. Jollibee

used to have kids as their target market but they are also targeting adults. They hold

different marketing strategies that attract potential customers. Next in line is the

McDonald’s. Like Jollibee they hold numerous marketing strategies to attract more

customers. Lastly is the Chowking, a Philippine-based restaurant chain. The concept

combines Western fast food service with Chinese food menu. Jollibee is established

by Tony Tan Caktiong (TTC) a Filipino-Chinese. Ray Kroc, an American

businessman is the owner of McDonald’s. In 2000, Chowking became a wholly

owned subsidiary of Jollibee Food Corporation.

The marketing strategies of the selected fast food chain are held to satisfy its

customer. Jollibee, McDonalds and Chowking applied their marketing strategies in

different ways that can catch the attention of the potential customers. This

investigation focuses on the marketing strategies of the fast food chain that will

satisfy their customers. Despite the different marketing strategies of these fast food

chains customers still continue purchasing their products.

Background of the Study

A fast food restaurant is characterized as quick services of franchise restaurant

chain, which supplied the food quickly after ordering and minimal service offering for

dining and takeout facilities. Fast food also refers to food that can be prepared and

served quickly. Fast food restaurants usually have a walk up counter or drive-thru

window where you order and pick up your food. Typically, fast foods sold in a

restaurant or store with preheated ingredients and serve to the customer in a packaged

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form for take away. Customers are generally price sensitive towards purchases of

food but those from the middle to high income group are willing to pay more for the

quality foods. According to Namita Jain (2010), fast food is often the default choice.

Not only is it convenient and easy to grab, it's also tasty and cheap. And fast food

joints also serve as great teenage hangout places. Fast food is also popular nowadays

because it is cheap, fast, and tasty and advertisers make it seem healthy, so naturally it

seems like a no brainer. Fast food restaurants are very popular because they serve

filling foods that taste good and don't cost a lot of money.

Customer satisfaction, fast food players recognize the growing consumer

group of millennials, especially those coming from the emerging middle class. The

increasingly on-the-go lifestyles of millennials are a huge opportunity for fast food

players to further highlight their strength in terms of convenience compared to other

types of foodservice.

Jollibee Food Corp (JFC), the largest Asian foodservice company, continued

to lead fast food in 2017, with each of its brands also leading in their respective

categories. The group recorded double-digit value sales growth over much of the

review period, driven by an acceleration of its store network expansion.

McDonald’s was the second-ranked brand within fast food in 2017, positioned

behind Jollibee. McDonald’s posted strong value sales growth in 2017 thanks to its

continuous opening of new restaurants, the renovation of existing restaurants, new

product launches and consistent marketing and promotion of its core menu.

Chowking was the third-rand within fast food in 2017. Chowking was

pioneered the quick-service restaurant concept in the Philippines which combines the

best Western fast-food service and the delicious taste of Chinese food in restaurants.

This unique dining experience captured the hearts of millions of customers in

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Chowking’s more than 300 stores in the Philippines, and more than 20 stores on other

countries.

Statement of the Problem

This investigation entitled, “Competing Marketing Strategies of the Top Three

Fast Food Chain in the Country as Observed in City of San Jose Del Monte, Bulacan”

is an attempt to find answer to the question “How may the marketing strategies of fast

food chains and satisfaction level of the customers relate to each other?” Specifically,

it sought answer to the following:

1. What are the profile of the respondents?

1.1 age

1.2 gender

1.3 monthly income

2. What are the marketing strategies of the top three fast food chain?

3. How may the respondents rate their satisfaction level on the marketing

strategies (7P’s) of the three fast food chain in terms of the following:

3.1 place

3.2 product

3.3 promotion

4. Is there a significant relationship between the rating of marketing strategies

and the satisfaction level of the customers by profile?

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Scope and Delimitation

The intent of this study is to know the competing marketing strategies in terms

of place, product and promotion of the top three fast food chain in the country as

observed in City of San Jose Del Monte, Bulacan. The research conducted data within

the vicinity of San Jose Del Monte City. Sixty (60) respondents were used as the

sample in conducting the survey. The study considers the profile of the respondents

which are the age, gender and their monthly income.

Significance of the Study

This study will benefit the following:

Entrepreneurs • This investigation will benefit the entrepreneurs to give them an

idea on different marketing strategy and think about having new marketing strategies

effectively.

Future Business Owners • This study will help the future business owners to know

what kind of strategies they can use in order to be successful.

Future Researchers • This study will benefit the future researchers to have an

overview about business world and it can be one of their reference on their research

that related to this study.

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 Input Output
Process
1) Profile of the 1) Ranking of the
1) Data Gathering
respondents best marketing
1.1 Survey
1.1 age strategies
questionnaires
1.2 gender 2) Recommendations
1.2 Interview
1.3 monthly income
1.3 Observations
2) Marketing
2) Statistical
strategies of the
Treatment
three fast food
3) Data Analysis
chain
2.1 place
2.2 product
2.3 promotion

Feedback

Figure 1. Conceptual Framework

The conceptual framework of this study in San Jose del Monte National High

School the paradigm shows the INPUT – PRROCESS – OUTPUT approaches. In the

first column which is the INPUT it shows the profile of the respondents which are the

age, gender and monthly income. The other is the marketing strategies of the three

fast food chain in the country that contained place, product and promotion. On the

second part of it contains the PROCESS that shows the data gathering which are the

survey questionnaires, interview and observations and also shows the data analysis.

And the last part is the OUPUT that shows the ranking of the best marketing

strategies and the recommendations.

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Definition of Terms

Contemporary Marketing are strategies that, when implemented, offer greater

support for their client base with a product range that varies depending on what the

target market desires, rather than what company wants them to have.

Customers are the person who buys a product or uses service from a business.

Customer Satisfaction were customers derive satisfaction from a product or a service

based on whether their need is met effortless, in a convenient way that makes them

loyal to the firm.

Fast Food Chain also known as Quick Service Restaurant (QSR), refers to the

buildings used for the preparation and sale of ready-to-eat food. Fast Food Chain is

characterized by a limited menu of food prepared quickly (often within a few

minutes). And sometimes cooked in bulk advance and kept hot.

Gamification is a process of integrating game mechanics into something that already

exist to motivate participation, engagement and loyalty. It is a way where the

company communicate with the customer to know their feedback about their

products.

Marketing Strategies are the process that involves a product or service’s attributes,

pricing, distribution and promotion. All of these activities must work together to

assure successful marketing.

Potential Customers are the person who hasn’t yet purchased the products or

services from a business.

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Profitable Relationship is the customer relationship management is the overall

process of building and maintaining profitable customer relationship by delivering

superior value and satisfaction. It deals with all aspects of acquiring, keeping, and

growing customers.

Target Market is a specific group of consumers at which a company aims its

products and services. The target customers are those who are most likely to buy from

a business.