On the Brand Establishment of Chinese Fast Food Enterprises.doc

毕业论文(设计) On the Brand Establishment of Chinese Fast Food Enterprises1. Introduction12. The current situation of fast food industry in China22.1 The definition of fast food and its advantages22.2 Western fast food in China42.3 Chinese fast food in China52.3.1 The development of Chinese modern fast food52.3.2 The advantages of Chinese fast food62.3.3 Some problems existing in the progress of Chinese fast food industry73. About brand-building93.1 What is brand?93.2 The brand of fast food industry104. The brand establishment of Chinese fast food114.1 Overview of the development of famous Chinese fast food114.2 Important factors of establishing fast food brand124.2.1 Establishing core brand value134.2.2 Setting up a good brand image134.2.3 Standardization is the most important item of brand chain154.2.4 Strengthening the awareness of brand marketing and implementing the brand strategies175. Conclusion18References201. IntroductionAfter the reform and opening, with the rapid development of Chinese economy and the improvement of living standards, Chinas food industry has also undergone a rapid development. Under the impact of western culture, especially American culture, more and more Chinese change their lifestyles and eating habits. They see the Hollywood movies, listen to the R&B music and eat western fast food. The growth of the fast food industry is at a higher speed20 percent higher each year. Foreign fast food giants are eager to tap into the booming market. After founding its first restaurant at Beijings Qianmen in 1987, the next eighteen years saw KFC open over 1,700 restaurants in more than 360 cities, covering all provinces and regions in mainland China except Tibet. KFC is now the largest and most rapidly growing fast food chain in the country. The unique taste and quality of its products have made it a favorite of Chinese consumers. A.C.Nielson, a leading international survey company, rated KFC as one of the top ten most widely patronized international brands in China. Though the booming fast food market is more attractive to the local businessmen, there are few famous Chinese fast food brand and chain in China. How to achieve the goal of sustainable management in a variables development environment in the fast food industry has become the most important issue that modern fast food enterprise are facing. The large-scale catering enterprises at home and abroad put establishing the well-known brands on the core of their strategies. With the well-known foreign brands entering the Chinese market, more and more people began to study how to set up a Chinese fast food brands to raise the siege of the development dilemma. After China joined the WTO, the international competition is more intense. The competition is no longer in price, quality and culture, but in establishing a highly competitive brand.2. The current situation of fast food industry in China2.1 The definition of fast food and its advantagesFast foods are foods that can be prepared and served very quickly. The modern fast food industry was first found in America. In 1930s, the pace of modern life became fast, and nowhere was it faster than in America. People wanted fast transportation, fast communication, fast computers, fast photos, fast music, fast repairs, and fast service from the businesses they patronize. A fast food restaurant, also known as a quick service restaurant, is a specific type of restaurant characterized both by its fast food cuisine and by minimal table service. Food served in fast food restaurants is cooked in bulk in advance and kept hot to order; food is usually available ready to take away, though seating is provided. Fast food restaurants are usually part of a restaurant chain or franchise operation, which delivers standardized foodstuffs to each restaurant from central locations. Fast food has several advantages. In the first place, fast food, as is characterized by its name, is fast. The food is always ready and fresh, waiting for its customers. This saves peoples precious time, and consequently goes well with the tempo of life in modern society. Secondly, it is very convenient. As is known to all, fast food restaurants are much the same as cafeterias. Customers may feel free to help themselves to any variety provided and eat to their hearts content. Thirdly, fast food restaurants are environmentally comfortable. Clean dishes, shiny tables, decent service and light music all stimulate peoples appetite to eat more.By the end of the twentieth century, the typical American consumed some three hamburgers and four orders of French fries a week. Roughly a quarter of all Americans bought fast food every day. Today, American-founded fast food chains such as McDonalds and KFC are multinational corporations with outlets across the globe.2.2 Western fast food in ChinaChinese culture and tradition place a great deal of emphasis on food. Far beyond simply fulfilling a need, eating is considered to be a focal point in each day. However, people are living in a much faster society now they do not have time to slowly enjoy their food while chatting, especially during lunchtime. The fast food market also grows with the affluence of the Chinese people. As recently as 1993, Chinese consumers had few fast food choices. Kentucky Fried Chicken (KFC) pioneered the way, arriving here in 1987 and won a great triumph by taking its first-mover advantage. Quickly, seeing KFCs success in the market, others like Pizza Hut and McDonalds followed suit. McDonalds, KFCs primary competitor, opened its first Chinese store in early 1990s. As China increasingly embraces the outside world and its snack food, foreign fast food chains are kicking off a high-speed expansion in the worlds biggest market. According to a survey in the “Workers Daily”, 72.7 percent of young people under 15 years old prefer Western fast food to Chinese fast food. For some people the American aspect of the fast food was a major reason for going. By going to the fast food restaurants, the people have the chance to participate in and associate themselves with American culture. Since people have different conceptions of what America is, the exact aspects of American culture that the consumers found appealing also differ. For the younger generation, the American fast food, Tee-shirt and jeans culture represents a lack of formal rules, casualness, and youth. For young adults who are involved or wish to be involved in the business world, American fast food represents the modern, global culture. Fast-food restaurants with strong brand name images, such as McDonalds and KFC, are more popular than Chinese-style fast foods because they are known for quality control and good store management. Western-style fast food outlets also provide a novelty in contrast to traditional Chinese cooking.Just like Americans, working Chinese couples enjoy dining out as a welcome break from the daily routine of home cooking. Chinese children, especially teenagers, enjoy a weekend night out with their friends by combining their social activities of window shopping and entertainment with a visit to the nearest western fast-food restaurant. Many young people find the modern ambience of western fast food brands hard to resist. Even if they are not in a hurry, they enjoy hanging out at the restaurants with friends and listening to the background music. With urban incomes up 40 percent from 1999 through 2003 and city-dwellers increasingly inclined to eat on the run, sales at McDonalds are growing faster here than in the United States.2.3 Chinese fast food in China2.3.1 The development of Chinese modern fast foodChinese takeaways or takeout restaurants are particularly popular after the opening policy. They normally offer a wide variety of Chinese food, which has normally been fried. Most options are some form of noodles, rice, or meat. In some cases, the food is presented as a smorgasbord, sometimes self-service. The customer chooses the size of the container they wish to buy, and then is free to fill it with their choice of food. It is common to combine several options in one container, and some outlets charge by weight rather than by item. But now the Chinese fast food restaurant has found a modern service system. It copied the management, service system and decoration of western fast food but serviced Chinese style fast food for consumers, like Malan Noodle, Lihua fast food, Daniang Dumpling and so on. These modern Chinese fast food restaurants have instituted standards for food in order to ensure a consistent taste.2.3.2 The advantages of Chinese fast food Chinese fast food is preferred by local consumers as it meets Chinese dietary habits. According to research by Zero Market Investigation & Analyses Company in five cities including Beijing and Shanghai, the number of people who often eat Chinese fast food is twice the number of Western-style fast food consumers. About 21 percent of those surveyed mostly eat sets of Chinese rice dishes among various kinds of fast food offered.In fact, China has many of her own traditional fast food dishes. Of these, steamed buns, dumplings, fried bread sticks, and noodles are the most common and popular, with big-name chains like Yonghe King, Daniang Dumpling, Lihua, and J-Kung Fu. With local players still trying to compete with the likes of KFC, McDonalds and Pizza Hut, competition is fierce. In Shanghai, other than the expected McDonalds and KFC, people can find a large number of these Chinese fast food chains, which at a glance, may look like classic western fast food chain stores, but they are actually traditional Chinese snack restaurants with a very western look. The reason that can be attributed to the growing popularity of Chinese fast food is its pocket friendly pricing, which makes it absolutely affordable. As people are becoming more and more calorie conscious, they tend to prefer Chinese fast food over other kinds of western fast foods, as they are low in terms of calories. Chinese fast foods are working towards ruling out oily fatty food options from its menu list and are making an effort towards building a healthy fast food base.The best part about Chinese fast foods is that they emphasize on the usage of grains, beans, and vegetables and also their cooking style usually consists of boiling in water, instead of opting for deep-frying cooking technique. It is also ensured in Chinese fast food cooking that the food is cooked below 100 degrees Centigrade and it is owing to this fact that the nutrition elements are not lost and this is what makes Chinese fast food high in nutritional value when compared to other western fast foods.2.3.3 Some problems existing in the progress of Chinese fast food industryMany of these restaurants offer free delivery for purchases over a minimum amount. A major drawback of this kind of Chinese takeaway restaurant is that it lacks standardized industrial management systems. Chinese food, which relies on culinary skills, is greatly dependent on each chef. The taste of the same dish, if cooked by different chefs, can be different, and not even cook himself is able to ensure a consistent taste for the same dish. KFC says it will throw away its chicken if it hasnt been sold within 90 minutes of being fried. McDonald says its fries have a shelf life of one minute and the burgers just 10 minutes. This strict quality control guarantees the customer the same food and the same service every time. In this sense, Chinese fast food has a long road ahead if it is to compete in a modern society. In the early time of Chinas Fast Food development, there were many Chinese local fast food enterprises risen to compete with Western fast food giants, but none of them can create a famous brand and continue operation. Some of them copied the fried food, the clean environment of Western fast food restaurants, but they didnt learn the advanced management system and didnt realize the importance of creating their own brands. Others focused on expanding their chains but ignored protect and propagate their own brands. Honggaoliang Fast Food Chain is the best example to prove this. In 1995, Honggaoliang opened its first restaurant in Henan. It shouted “To be the Chinese Mcdonals!” as its slogan and opened their chains next Mcdonals in Wangfujing Street. With the help of media, Honggaoliang became a famous brand at home and abroad. But after one year, Honggaoliang put itself in a great quandary with a rapidly expansion and poor management. It didnt have an effective brand marketing strategy and standardized production to protect its brand image. At the end of 1998, Honggaoliang closed all its chains in China. So Chinese fast food enterprises should attach importance to the brand-building and set up specific brand culture. They should promote the advantage of Chinese local food such as flavor and nutrition, with the modern production management, to create a fast food brand of Chinese characteristic.3. About brand-building3.1 What is brand?The famous marketing expert, Dr. Philip Ketene explains brands like this: “The brand is a kind of name, term, mark, symbol, pattern or a combination of them, which used to discern the products or service of a certain consumer or a group of consumers, make it distinguish with the rivals products or service.” Above-mentioned definition proves the brand is a concept of compounding. It is formed by the brand outside mark (including name, term, pattern etc.), brand discerning, brand legend, brand image, etc. Brand also contains many elements, such as attributes, benefits, culture, values, personality and user.Brand has many functions. First, the so-called “brand” can make customers distinguish one product to others as the specific “symbol”. This function can lead customers to find the product they need fast. Take beer for example, there are lots of beer brands in the world, such as Budweiser, Tsingtao, Zhujiang Beer. Different brands have different flavor. Customers can find their favorite beer in the shop easily among different brands. Second, brand is the assurance of quality and prestige. Nowadays, quality of product is vital to the success of an enterprise. High quality and good service can help the enterprise to gain a lot of loyal customers. Sony is a famous company that produced stereo, television, and computer game etc. Its brand stands for the high level of competence, quality, and care for detail of its products. Last, brands personality can attract its target customers. In the years of development, brand accumulated special personality and rich culture. Customers choose and buy the brand which tallies with their personality and style to represent themselves. For example, in China, Benz is a sort of status symbol. Many successful people love Benz because its luxurious, comfortable and honored characteristics are fitting to their social status. In a word, the brand often brings the unexpected result as a powerful weapon in the market competition.3.2 The brand of fast food industryAccording to the definition of brand, fast food brand can be defined as: it is a tool that fast food restaurant differentiates its products name, symbol, and design with the competitors. However in any form, branding can be used to create brand familiarity among consumers in terms of brand recognition and brand preference. The advantage of using brand effectively is both for consumers and marketers. It becomes easy for a customer to choose preferred fast food brand among thousands of other restaurants just because of its famous well recognized symbol, word or trade mark. For instance, if one is driving down the road with hunger and suddenly he sees a symbol M on a sign board with red background and yellow font. It is not difficult to realize that McDonalds is waiting for him, easily manifest effective projection of McDonalds through brand symbol M.In a word, fast food brand is not only a specific logo, but also represents the fast food restaurants products, image and temperament.Creating fast food brand mainly depends on the brand image to improve its competitiveness in the market, and the visibility of brand and enterprises. In modern society, a mature consumer often pays more attention to select a brand fast food restaurant with many choices. As is pointed out in the Declaration of Chinese brands: “The brand is generic language in the international market, is the core wealth of the national industry.” Consumers can know the brand and its products and service more emotionally and reduce risk during their consumption, thereby forming a brand loyalty under the impact of a clear brand image. 4. The brand establishment of Chinese fast food4.1 Overview of the development of famous Chinese fast foodThe United Nations had a survey which showed the famous brands took a percentage of less than 3% in all brand products, but their market share was as high as 50%. Clearly, the only way to possess market is to have a competitive brand. This is an essential way to create famous brands for Chinese fast food industry. In the top 10 fast food brands in China in 2005, the top 5 brands were overseas, and the last five were famous local brands. Top 10 Fast Food Brands in China in 20051Yum! Brands Inc. China Division2McDonalds (China) Co., Ltd.3Tianjin Dicos Food Development Co., Ltd.4Beijing Yoshinoya Fast Food5Shanghai Lingxian Restaurant Management Ltd.6KUNGFU Catering Management Co. Ltd.7Malan Noodle Company8Jiangsu Da Niang Food Co. Ltd9LiHua Fast Food Ltd.10Shenzhen Miandianwang Catering Chain Ltd.Famous western fast food chains are controlled by a high degree of standard with simple product variety and controllable production process. After sixty years brand development, most wester