Thesis in Fast Food Industry

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A Study: Factors Affecting Popularity on the Marketing Aspects of Leading Food Chains in Marikina City Chapter I THE PROBLEM AND ITS BACKGROUND This chapter contains the overview of the research problem and the factors that lead to the conceptualization of the problem and justification for considering the chosen topic as a problem for research. The researchers’ motivation in this study in knowing the reasons and information that leads popularity in same food chains in Marikina city.

The purpose of the study is to determine what factor on marketing aspects do the food chains become leading in the area of Marikina. INTRODUCTION The business environment is characterized by a spirit of competitions. Firms continuously devise ways of capturing a bigger market share by attaining market leadership. High sales of products and services can be achieved through any of the following ways. Marketing is defined as total system of business activities that includes planning, selling, distributing and promoting products, services and ideas to consumers to achieved organizational objectives.

It is human activity designed to integrate and facilitate any exchange process – buying and selling, with the intent to satisfy human needs and wants. Food chain is owned and operated, or franchised by international chains, ranges from fast food and family style dining to coffee bars and pizza places and thus can be found in all of the categories of commercial food service establishments. It is part of the food industry that provides meals to people away from their homes for immediate consumption on or off premises.

The activities performed by firms or the food chains in bringing about an exchange may be referred as to “Marketing Aspects” or it is under the “marketing mix” in marketing and “variations” in food service establishments. The functions of the components of this co called marketing aspects are greatly facilitated by market. Marketing is a customer wants. The company first determines what the customer wants and then figure out how to make and deliver a product to satisfy those want.

Management is profit oriented planning is long run oriented and this is in terms of new products, tomorrow’s market and future growth. (William Rudellus, University of Minnesota 2009) There are 4P’s, and 4C’s on the factors of marketing aspects. The 4P’s are the Product; it talks about anything that can be offered in the market for attention, acquisition, use or consumption to satisfy a need, want, and demand/expectation. It may include physical objects, persons, ideas and Services as well. Price; is the value of a thing or service that is expressed in terms of money.

Place; (Distribution Channel) is a medium by which goods and service are made available to the consumers for the use or consumption. Promotion; in the broad sense, consist of coordinated seller initiator efforts to establish channels of information and persuasion to faster the sale of good/service or the acceptance of ideas or points of views. While the 4C’s talks about the Customers expectations, customer’s capability, customers’ convenience and customer’s acceptability. CONCEPTUAL FRAMEWORK Figure 1. 1: research paradigm

In this diagram, the factors on marketing aspects are the 4P’s which could affect to become the leading food chains this will reveal if these factors will be correlated to the leading food chains in Marikina city. THEORETICAL FRAMEWORK According to the study of Bustamante, Salangga and Latin (Roosevelt College System Coffee Shop Operations 2010), the marketing stimuli’s greatly affects the buyer’s decisions and response regarding the choice of brands and product patronizing. Figure 1. 2 The diagram shows that the 4P’s (marketing stimuli and other stimuli) affects the buyer’s decision making of what product, brand and etc. ecomes leading in the market. STATEMENT OF THE PROBLEM This study was undertaken to find out the factors affecting popularity on marketing aspect to leading food chains in Marikina city. Specially, this study sought answers to the following research questions: 1. Who are the leading food chains in the area of Marikina? 2. What is the factor on marketing aspects that affects decision making of the customer? 3. Is there any significant relationship between factors on marketing aspects and leading food chains? HYPOTHESIS

There is no significant relationship between the factors on marketing aspect and leading food chains. SIGNIFICANCE OF THE STUDY In this study, it will be significant to: Small Business related to food industry – they will be informed about the factors on marketing aspect of their business and make adjustments on their strategies to become one of the leading food chains in their industry. They will gain knowledge about the desirable effect that the marketing aspects bring to their business. Through this, they can get along well with their customers or be easily adjusted for the matter.

Markets/ customers/ consumers/ buyers- knowing the factors affecting the marketing aspect of one of the leading food chains, they will be satisfied for their needs and wants. Time consuming will be minimized because they know where to purchase and what food chain is recognized and addressed to give them importance. The management of the leading food chains- to improve their business and be more competitive to others, they make adjustments and give importance to some factors on marketing aspects to have more customers. SCOPE AND LIMITATIONS

The study focused only on the factors on marketing aspects and leading food chains only in Marikina city. It was limited to at least five (5) leading food chains. The factors on marketing aspects are to be considered for the formulation of the conclusion. Although pricing is one of the factors on marketing aspects, the sales and profits of the leading food chains are not to be tackled. DEFINITION OF TERMS Marketing aspects- refers to the factors affecting the business that includes products, price, place, promotion and people.

It is performed by firms in bringing about an exchange process with the intent to satisfy human needs and wants. Food chains- refers to the establishments which are categorized as commercial establishments because they operates with the aim of earning a profit and their operations complete in a free market and are open to all customers. They provide or serve meals to people away from their homes. Prices and clientele are based on location and service food, they have the common ownership. Leading food chains- these are establishments which are placed on the top or have the highest ranks in the food service industry. P’s- 4C’s- Chapter II REVIEW OF THE RELATED STUDIES AND LITERATURE This chapter presented the different literature and studies that have direct bearing on the topic undertaken. RELATED STUDY FOREIGN According to the study of Andrew, 2010 (Factors affecting employee productivity – Case study of private Ghanaian workers working in fast food chains), the researcher stated that When we say employee efficiency this means the employee characteristics and also relates to the speed and accuracy of an employee against the role, job and duties.

Employee productivity underpins employee efficiency wherein the more efficient employees are the more productive they will be especially when managed correctly. Employee productivity creates an environment that encourages effective performance and hence essential in management of human capital function. In maximizing employee productivity, there is the need to focus on areas of personal motivation and the infrastructure of the work environment, both of which form factor that affect the employee productivity.

While the most obvious motivating factor for employee factor is often thought to be based on salary and promotions, this may not always be the case. The question is: what makes employee work harder. According to the study of Moore, 2008 (External Factors of Marketing Strategy) the researcher stated that There are a number of external factors that can affect a company’s marketing strategy. It is crucial for marketing managers to account for these extraneous variables when writing their business plans.

Additionally, marketing professionals should continuously research their industries so they can account for various external factors before they affect the business. Companies must be highly adaptable to survive in an ever-changing business environment. According to the study of Edison, 2008 (An analysis of the fast food industry, in the US and abroad, in terms of operations and business management), Automation within the industry has been noted to optimize efficiency, enhance physical and financial assets, and to minimize waste, all of which increases the profit margin for many companies within the industry.

Automation in the fast food industry is primarily driven by consumers increased demand. For example, McDonald’s has utilized a mobile point of sale software at some locations to increase sales by serving more drive-thru customers faster, increasing accuracy for orders, and decreasing the standard wait time in the store. According to the study of Wright, 2010 (An analysis changes in the fast food industry from the 1950s to the present), Today, the fast food industry has evolved in a number of important ways from the early days of Maria Del Gray’s McDonalds.

The fast food industry is highly competitive, but remains fairly homogeneous and nonunion; however, some restaurant outlets are owned and operated by parent companies while others are owned and operated by individual franchisees. In a typical franchise agreement, the franchisor (known as the parent company) grants the franchisee a license to operate a standardized restaurant with a specified technology and widely recognized trademark; in exchange, the franchisee pays the parent company a fixed fee and a monthly royalty on gross sales (Krueger says this is generally 8 percent).

In some instances, the franchisee will be required to post an explicit performance bond as well. The total start-up cost of a franchised restaurant in a major chain is ordinarily between $400,000 and $600,000. According to the study of Statum, 2008 (An analysis of the fast food market featuring KFC aka Kentucky Fried Chicken), the impact of the economy, culture, globalization, and legislation on KFC and the fast food industry at large has already been examined.

However, the industry is impacted not only by political and societal influences, such as environmental responsibility and healthy eating, but also by technological advancements over recent years. In recent decades, the increased focus on technology, such as television, the Internet and advertising through these mediums, has proven beneficial for the industry. Fast food companies put a lot of money into television advertising, resulting in something of a “warring” atmosphere when it comes to producing the more effective commercial. LOCAL

According to the study of Bustamante, Salangga, Latin and Macawile, 2010 (Coffee Shop Operation Competitiveness), the factors affecting the decision making of the customers is ambience, it only implies that they are likely to go in a coffee shop because of the nice and warm ambience to relax and feel comfortable while drinking their own coffee. According to the study of Jose, 2008 (An in-depth review and analysis of fast food industry in the Philippines. ), the fast food industry has gained enormous amount of press over the years. It has become accessible to millions of peoples in world. A McDonald’s ad once displayed, 6. Billion people served” stating the enormous amount of appeal that it has on society. Many people eat at fast food restaurants for convenience and for budget. In a society where time is as precious as money, being able to get an order within 90 seconds of ordering definitely speaks for itself. The business strategy and marketing schemes behind the fast food industry is even more complicated and sophisticated. The franchising system allows retailers to franchise names and get continuous supplies of finished products. This has led to the creation of global based fast food companies that meet the needs of customers around the world.