Food is a basic requirement of sustaining life. Due to this fact, it has been the sole purpose of main to come up with means of ensuring that food is always available at the right quantities and qualities. In this process, man has always come up with means and strategies of trying to achieve this goal. Since the agrarian revolution era up to the present moment, man has come up and implemented new methods of obtaining food.
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Some of these strategies have been effective in ensuring that food is available for domestic and commercial purposes (Egan, 2000). However, with the current trends of urbanization coupled with lack of time to prepare food, fast food restaurants have sprung up (Egan, 2000).
These restaurants have developed into regions where fast foods restaurants were not common a few decades ago. Jordan is one of these nations. This therefore provides Chic Chac with the perfect opportunity to enter into Jordans food industry and with proper planning and management, become a leader of the industry. This will ensure that the restaurant is profitable and sustainable in the short run and in the long run.
For Chic Chac to enter successfully into the Jordanian market and be profitable and sustainable in the short run and in the long run, the product that the restaurant shall offer have to conform to the needs and requirements of the target market (Rodman, 2006). To ensure that this is achieved, the products that Chic Chac shall provide to the Jordanian market have been designed in a manner that will yield relative advantage to the users.
This is essential as it ensures easily adoption of the product by the target market (Jugger, 2000). The goods and services that Chic Chac shall provide to the Jordanian market will be of a superior quality to the ones that are currently available in the market. To achieve this, Chic Chac has implemented an effective supply chain ensuring for the acquisition and delivery of raw foods.
This will not only reduce the selling price of the company but will also ensure that all its outlets have the right quantity and quality of foods at all times. The supply chain is effective due to the presence of a large number of suppliers, availability of raw materials, presence of effective transportation and storage facilities and availability of affordable labor.
From market analysis, the nature of products and services that the restaurant shall be offering will be compatible to the trends of the market and the culture of the Jordanian people. Being an Islamic state, the restaurant shall avoid selling pork and pork products. In addition to this, operations of the restaurant shall adhere to the traditions, religions, and rules of the country. The nature of service and products that the restaurant shall offer shall not be complex.
For effectiveness and efficiency, all Chic Chac outlets and products shall be designed in a simple but unique way. This is essential, as it will ensure that the restaurant shall develop its own identity, an essential step in developing the brand name in a new market (Jugger, 2000). Before launching the restaurant, pilot studies shall be conducted to determine the response of the market towards the new products offered by Chic Chac.
From this trial analysis, the strong and weak elements of the product shall be determined. Hence, during its launch, the firm shall mainly focus on its strong points and work to improve its weaknesses to ensure that its market entry process is successful and sustainable.
Consistent product monitoring especially during the first few months of operation shall be conducted to determine the trends and any discrepancies in operations that may be detected shall be solved in due time. These considerations are critical during the market entry phase of Chic Chac into Jordan.
The main problem that may be experienced while launching Chic Chac into the Jordanian Market is culture clash. Chic Chac roots originate from the United States of America. Therefore, the manner in which its operations are run and its menu is designed is to meet the tastes and preferences of the American market. Therefore, the company needs to come up with measures and strategies that will ensure that its products and services conform to the tastes and preferences of the Jordanian market.
For Chic Chac to enter the Jordanian market successfully, it needs to have an effective pricing strategy. To attract customers and maintain them, Chic Chac needs to set up its price within the affordability range of target market. Thus, the price should not be too high or too low.
The company also needs to put up an effective market campaign especially through advertisements through various forms of media such as television, radio and social networks. Finally, all the outlets need to maintain the quality of their products. This will increase the reliability of the outlets by customers.
The first outlet of Chic Chac shall be opened at Amman, Jordans capital. Amman is the busiest urban location in the country. With the success of the first store, other stores shall be opened in different locations within the city. To enhance our services, Chic Chac shall hire delivery agency to deliver products to customers at the comfort of their homes, offices or any other locations outside the outlets. After several years of operation and success, more outlets shall be opened at Az Zarqa, Irbid, Al Karak.
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These are urban locations within the nation with a population of over 100,000 individuals. Road and rail are the main modes of transportation in these localities. Communication is mainly facilitated by telephone, television and the internet. These cities mainly comprise of working middleclass individuals with a busy schedule. Therefore, these individuals have a high preference of fast food restaurants as they view home cooking as slow and relatively expensive (Peters, 2009).
Therefore, the outlets peak hours are expected to be during breakfast, lunch, and dinner. To create the awareness on our brand name, television and radio adverts shall be aired. Additionally, we shall advertise on our website that shall be linked to social networks sites. However, the spread of the quality of our products and service shall mainly rely on word of mouth by satisfied customers.
Promotions such as buy one get one free and coupons shall be conducted on a daily basis during the first month of operation. The products shall only be sold at a price that is slightly above the cost of production but below the market price to attract more customers.
The major competitor that Chic Chac shall face is Dairy Queen. Being a fast food restaurant with a number of outlets all around Jordan, the restaurant has been operations for several years now. Therefore, it has developed a strong brand name and image (Jugger, 2000). It mainly serves fast foods and desserts.
Alcohol and smoking within its outlets are always prohibited. In addition to this, the selling price of its products has been fixed under $9. This has increased the affordability of its products by middleclass individuals who comprise of a higher proportion of Jordans urban market.
The first outlet of the restaurant is expected to have a revenue of $300,000 in the first year of operations. With increased expansion and number of outlets in the region, the revenue of Chic Chac in Jordan is expected to rise at an annual rate of 30% for the for the next five years of operations.
During this period, a profit of $100,000 is expected to be realized during the first year. This figure is expected to grow at an annual rate of 8% during the first five year of operation. In the first year of operation, Chic Chac outlets shall only be concentrated within Amman. However, massive expansion into other regions and cities shall commence after the end of the first year of operations.
Chic Chac will have strengths, weaknesses, opportunities, and threats in the course of its operations. The major strengths that the restaurant has are the strong brand name that it has established in the Middle East region.
Although it originated in USA, Chic Chac has opened outlets in Saudi Arabia and the United Arabs Emirates. The success and the positive reputation that the restaurant has gained while operating in these countries will be a major milestone in the market entry strategy of in Jordan. This will boost the growth and development of the brand name in the Jordanian market.
Additionally, the fact that Chic Chac operates as a franchise will ensure that its growth is sustainable in the short run and in the long run. Chic Chac shall be operated by renowned and established families and businessmen in the region. This has been a traditional strategy of the restaurant into foreign lands for reducing expansion expenditure while earning royalties from the new franchises in Jordan.
The major weakness that Chic Chac may face while entering the Jordanian market is the difference in tastes and preferences of customers for their products as compared to the target market in the United States. The restaurant shall have to modify its menus and food combinations to meet up to these new requirements.
Additionally, the fact that the outlets shall be opened in urban areas shall bring about huge labor crisis. This is because, employees in urban areas shall demand higher wages, which at times, the restaurant might find difficult to meet especially during its early days of operations.
Despite all these, the restaurant faces a number of opportunities. First, the Jordanian urban population is growing at a desirable rate. Much of the individuals who are responsible for this increase are middleclass workers who are young.
With the special menus and combinations that Chic Chac has for every meal, the restaurant stands a high chance of attracting and maintaining this group of individuals. Additionally, the restaurant has modified its menus to provide healthier foods to its customers. This will further attract those individuals who are conscious about their health.
The major weakness that the restaurant faces is stiff competition. This mainly comes from restaurants and outlets that have already established a strong brand name in the market. In addition to this, strong campaigns in the nation have been advocating for individuals to eat home cooked meals. These campaigns have been spearheaded by the government to improve the health of the public. This is a heavy blow to fast food restaurants especially Chic Chac since it is trying to enter into the countrys food market.
The final product that will be presented to the Jordanian market has to conform to the needs, tastes, and preferences of the market. This shall be achieved by careful design of the menu and food combinations that the restaurant shall offer. First, the foods that the restaurant shall be preparing shall have to be in line with the Islamic culture. Therefore, the restaurant shall offer pork or pork derivatives. Additionally, smoking and alcohol shall be strictly prohibited.
The menu shall also be designed in a way that will lay maximum emphasis on breakfast, lunch, and dinner. The food shall be served in an attractive manner with desserts and accompaniments. Packaging for ‘take away’ shall clearly portray the brand name and the price of the product.
However, the customers will not be charged extra for packaging. Home delivery services shall also be incorporated at an additional fee. The Porters 5 forces table below can be used by chic chac to have a clear understanding of the Jordanian market (QuickMBA, 2012).
Porter`s 5 Forces
Egan, J 2000, Relationship Marketing, Financial Times Prentice Hall , ã Harlow
Jugger, S 2000, ‘The Power of Consumers’, Admap Vol. 14 No. 2, pp. 51-55
Peters, J 2009, Consumer Behaviour and Marketing Strategy, Sage, London
QuickMBA 2012, Porter’s Five Forces: A Model for Industry Analysis, <http://www.quickmba.com/strategy/porter.shtml>
Rodman, T 2006, Market Planning and Analysis, Sage, New York