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Genius and creative team

BonChon Chicken Company


Marketing Plan
Bonchon: Crispy, Crunchy, Lovely

GC team

Prepared by GC team
Adipta Novamta Mahardhika
Ersheila Andawarih Putri
Lukman Hakim
Rachmad Widodo
Riky Amir Kusnadi

Sampoerna School of
Business
Bonchon Chicken Marketing Plan
1. Executive summary
BonChon Chicken is crunchy, crispy and low fat fried chicken with the
special frying technique and secret sauce produce non-greasy, yet more flavors.
Therefore, this company already set up their branch Indonesia, on this marketing
plan we pay attention to buzz our brand awareness in Indonesia. Since Indonesia
is one of the emerging market in the ASEAN which has tremendous economic
growth that generates huge food consumption, especially in terms of chicken.
The total Indonesia chicken consumption per capita in 2011 was 4,328 kg (BPS,
2011). However, the amount of chicken consumption increases as well as the
increase in the Indonesian population. In order to utilize huge opportunity,
knowledge insight of company uses its high quality has gained fast premium
quality, because of that we believe its high quality, affordable pricing strategy
and how we engage communication to customers. Hence the communication and
promotion, we put is the one of vital part on this marketing plan.
3. Strategic Focus and Plan
Mission
The Mission and vision of this Bonchon Marketing plan are to market line
and expanding brand awareness of high quality special crispy Chicken fried that
satisfy customer through create gratifying eating experience, providing good
challenges environment career opportunity for employee and maximize return
to stockholders.
Goals
For the following year this Marketing Plan seeks to achieve the following goals:
Expanding and strengthen the BonChon Brand awareness (to retain its
present image as high quality chicken and get space in the heart of
Indonesian customer)
Creating and delivering Bonchon mission statement and Value Proposition.
Having Strong positioning in the customers mind.
Engaging with Customer Relationship Building and Development.
Educating customers about truly Bonchon and everything surrounding it
(Bonchon).
Making our customers who eat at BonChon feel the eating experiences
and also prestigious because the product taste, service and the
circumstances.

Core competency and sustainable competitive advantages


In terms of competitive advantages or core value of Bonchon seeks:
Provide crispy, unique chicken taster (Special ketchup) and healthier
(organic chicken) in term of the ingredients and process production.
The unique technique Frying Twice:
First Fry: removes all the fat and makes it paper-fried crisp. It contains zero
Trans-fat and it is not greasy like an average fried chicken.
Second Fry: includes the secret seasonings and spices that are distinctly Asian
choose from soy garlic or hot and spicy flavors.
Creating homey ambiences for customers in order to increase customers
loyalty.
Therefore, we deliver BonChon Eating experiences through product, cozy
circumstances and delightful services. In order to translate these core
competencies in to sustainable competitive advantages, the company will work
towards closely with our key supplier, distributor and our employee itself to build
the relationship and alliances necessary to satisfy the high taste standards and
Bonchon gratifying eating experiences for our customers.
4. Situation and market analysis.
SWOT Analysis
Strenght

BonChon has a differentiation in products, crispy, crunchy, and healthy


chicken product.
BonChon has the momentum where Korean art K-Pop and drama - is
booming in Indonesia

Weakness

BonChon sets the expensive price and not appropriate with the volume
each portion
The service is still standard to compete with others competitor, such as
McDonald or KFC
The place is also standard and there is inefficient seat location in some
outlets

Opportunities

Rising health consciousness and hygiene concerns mean food origin has
become an important purchasing determinant for affluent consumers,
lifting packaged food sales.

Where health and hygiene concerns can be met, fresh produce has a
strong audience among wealthier consumer groups owing to its relative
health benefits.
Threat

There will be more competitors in a same product


People avoid consuming more fast food cause of healthy

Industry analysis
Indonesia is one of the biggest country in ASEAN, we have big potential
business in Food and beverage since our population around 240 million people
(BPS, 2010). Supporting with excellent economic growth 6.5% (BPS, 2010) and
increase the income per capita which is around $ 3600 per year. In addition, they
prefer product with has western brand or sound, it could be looked nice terms if
we can utilize those kind of chance.
Potential Competitors: High pressure
o Many potentially franchises enter into the fast food side
o Entry barriers are relatively low, as Bonchon has not enough an
outstanding distribution systems, locations, brand name, and
financial capital to fend off competitors
o Bonchon often has not enough an absolute cost advantage over
other competitors

Rivalry Among Established Companies: High Pressure


o Currently, there are some main incumbent companies that exist in
the same market as KFC, McDonald, CFC, and Hok-Ben. Target is
less strong of the others in relation to fast food side.
o Bonchon has not experienced tremendous growth in their domestic
markets and have defined their niche quite effectively.
o Less mature industry life cycle (in a whole industry)

The Bargaining Power of Buyers: Medium pressure


o The individual buyer has little pressure from Bonchon
o Consumers advocate groups have complained about Bonchon
pricing techniques.
o Consumer could eat at a competitor who offers comparable
products at comparable prices, but the convenience is lost.

Bargaining Power of Suppliers: Low to Medium pressure


o Bonchon could vertically integrate
o Bonchon does deal with some large suppliers like Sinar Sosro, CocaCola who have more bargaining power than small suppliers
o Bonchon does deal with ingredients suppliers from Korea to keep
the quality of product as authentic Korean food

Competitor analysis
In the fried chicken food industry there are a lot of competitors that compete
on that industry. They are KFC, Mc Donald, CFC, Hok-Ben and local chicken
restaurant.
Figure Ct 1 Competitor Analysis Frame work

What are their Objectives?


What is their Current Strategy?

Expected
Future

How do you match up against them?

Strategy

What are their strengths & weaknesses?

Through this figure competitor analysis framework, we would like examine and
analysis our competitor strategy and how we build new strategy to compete on
this market. We only analyze the big player who plays on chicken food industry:

Figure CT 03.Level
of competition

KFC:
KFC has very strong positioning and brand awareness, since everybody in
Indonesia knows about the KFC. They are targeting for younger who like hanging
out or gathering with their friends. In addition, KFC has K-LO (KFC lovers ) and for
the70-80% are the young guys.
KFC Objectives:
KFCs new image on the site can be described as a fun, active, and
social
Place:
KFC treat all their customers with -TLC Tender Loving Care- and that especially
for Chicky Club Member who not only enjoy the whole some goodness that KFC
give them, but a lot of extra, free prizes, games, special events promotion and
more.
Pricing
KFC set based on cost based pricing strategy
They set with affordable price (Proper food at affordable food) and use food
packet to make price look affordable.
Promotion
KFC is using billboard, TV, Social media, google ads and words, newspaper,
special packages and events.
Mc Donald:
Key objectives of McDs promotion strategy were to, Get them in.
Trade them up. Get them back.
Place
Mc donald is cool place where everyone can relax, the customers feel
comfortable here, and their friends and we know they are always welcome.
Promotion
They promote through TV, Radio, Newspaper, Toys, Social media, Cinema and
Poster.

KFC

Mc Donald

1979 at Melawai

1991 at Sarinah Department store

Teen and adults

Children , Teen and Young adults

Outlet

307

106

Famous Menu

Chicken Fried

Price

Around Rp15,000 for packet

Burger ( Cheese Burger, Big Mac, Double Che


McChicken, Fillet)
Around Rp 16,000 for packet

Customers
behavior picture

Usually come together with their


friends
and for the regular menu that they
buy is
chicken packet , drink ,float and
fried potato
use Wi-Fi

Variables
Establish
Indonesia
Target Market

in

Come with their friends or their family buy burger


potato and drink , Mc Flurry ,use Wi-Fi

Consumer feedback perception


KFC
Positive
Consumers were satisfied with the promotions and the price
Some people were even satisfied with the environment and the friendly
attitude of people at cash counters.
Negative
Some consumers are complaining of quality.
They found the chicken has been cooked earlier and kept it in warm
environment.
One of the respondent renamed KFC as BFC (badly fried chicken).
Mc Donald
Positive
Consumers were satisfied with the promotions and the price
Some people were even satisfied with the environment and the friendly
attitude of people at cash counters.
Negative

Some consumers are complaining about the quality.


They found the burger and french-fries has been cooked earlier and kept it
in warm environment.
McD's is good at making junk foods.

Customer Analysis
Target Demographics
Tweens, ages 9-12
Teens, ages 13 18
Young adults, ages 19 32
Adults, ages <60
With Income middle to up segmented.
What are consumers saying?
Brand Perceptions
Gen-Y: This is like a common fast food that forces Korean fever (K-Pop, Korean
drama, etc)
Awareness: Admittedly minimal
Youthful Demographics A massive youth population (aged between 15 and
24) of around 40.9bn in Indonesia underlines the potentially dynamic
opportunities available in the mass-market. As this youthful population matures,
accompanied with rising purchasing power, demand for mass-market products
should also grow accordingly over the coming years. The growing receptiveness
of this demographic group to Westernized trends and product innovation, which
are key drivers behind soft drinks and confectionery sales, further endorses our
bullish long-term consumer picture.
Gen-X: Fast food is bad for healthy and only affect any diseases for long-term
Awareness: Minimal
Baby boomers: The time has been over to consume any kinds of fast food
Awareness: Mostly minimal, but with very few knowledgeable exceptions

5. Product Market Focuses:


Marketing and Product Objectives:

Creating Core gratifying eating experiences and delivering Bonchon Value


through high tastier and fresh product.

Target Market
The Primary target for BonChon product is family with > three people, teens and
adults work, with income medium to high. Those targets contain more
experienced and want premium taste, healthier and quality product.

Customer Value Proposition;

Tag line:
Crispy, Crunchy, lovely
For Household, teens and adults, BonChon offers chicken with high quality,
crispy, crunchy, low fat, and fresh product with delightful services to achieve
customers satisfaction.
Jingle:

You can find hot and fresh chicken. You can find a cozy place. All you
need is to grab your friend and take a seat at BonChon...BonChon...
Crispy, crunchy, lovely.. Krauk...krauk....
(Attachment available)

6. Marketing Program

Product strategy
High quality, fresh and low trans-fat product that we offer to customers. (We
concern only for the menu that BonChon have).

Price strategy
Value Based Pricing Strategy. We should strengthen enough value perception
that can make our consumer think the value > our price.
Package Strategy (to make it affordable)
However, the significant taste advantages of crunchy, low fat, crispy chicken,
convenient and justify to the customer. We set the price for group package is
about Rp 175.000 (1 package for 5 people). With the assumption, each person
has the buying power < Rp 50.000. For personal package, we set price about Rp
35.000 (1 rice+ 3 chicken + 1 soft drink).

Promotion and communication strategy:


Promotion Objectives:
Buzzing Brand Awareness: Educate customer about the truly BonChon

Social Media
Forces

Online Blog
web

Promotion
Strategy

In Store
information

Sales

BonChon Mascot

Bon

&

Chobi

This mascot are made because we believe that theyre both will give customer
memorable moment when the customers eat BonChon chicken. Not only that,
but also when customers bring their children to eat together with family, the aim
of this mascot is to bring fun and happy time to them.
Bon Bon: Bon Bon is the name of our mascot. He is a Korean young man who is
like dancing and a big fan of K-POP. Actually, he has lovely pet and his name is
Chobin. Every day he always hug Chobin while his sleeping, eating, watching TV
and sign seeing around his house. They are have the same hobby is eating
BonChon almost every day.
Marketing promotion road map 2012 /2013 (Attachement available in excel)
Social Media:
Social media was already overwhelming in the world and nowadays, not only
personal social networking who are use this but also, many businesses are use
this social media to promote and advertise their product. It is the cheapest
marketing strategy and affect the most successful word of mouth strategy.
For instance Like Comment, Follower/ing, Mention, Retweet Endorsement. (Lcomfre Strategy)
On this L-comfre Strategy we want create buzzing our brand awareness
through the power of social media forces. The logic is when our customers like,
give comment, Follow, Mention and Retweet indirectly they help us spreading the
truly Bonchon information. In process when our employee deliver the food, we
offer to our consumers that we have special prize if the consumers want to like,
comment, follow, mention, retweet our Facebook pages and twitter. In addition,
for our consumers who do the L-Comfre, we will give them free soft drink.

Educating point
Through social media, we should give them information that can educate them
about the truly BonChon than the other chicken fast-food for example, the status

in facebook or in twitter it should give campaign about the advantages of organic


chicken and the others about the healthy food. Actually, this point are aim to
change the mindset of people about the fast-food because BonChon as a fast
food it is not like the common fast food outside but BonChon will give more value
in healthy chicken since BonChon using organic chicken.
Online Blogging web
Through Blogging and web we would like to give information and educate
the society about the Bonchon who not like the other chicken food. We should
educate how healthy Bonchon are. We will attract to visit our blogging and blog
through the link that we will give in the social media interactions. Moreover, the
contents can be issues about fast food so that customers can move to BonChon
cause of its differentiation.
In store Information
(Show the our code of conduct)
We put information the code of conduct on Bonchon, so if they know our
employee has done wrong attitudes the consumers can directly complaints. It
has goals that we care our services, in order to create BonChon eating
experiences. We display the link of our link web, blog and social media in our
place.
(Open Kitchen Concept, show to the customer that we are fresh chicken)
In order to gaining strong fresh positioning value, we showed to the
consumers our process of production like the frying, clean and show it in
the LCD TV or monitor that can make strong evidence our chicken not
cooked earlier and kept it in warm environment like the other, but
Bonchon use direct frying.
7.Financial plan
Estimated Promotion and communication cost
Radio promotion for 3 month
IDR

30.000.000,00

Brochure for 10000 sheet


IDR

10.000.000,00

Exhibition
IDR

30.000.000,00

Other budget and legal


IDR

11.450.000,00

Promotion Event Budget


IDR

68.550.000,00

150.000.000,00
IDR

Note.
-

We are put our advertisment on Prambors Radio.


We would printing full colour brochure at the Bendungan hilir printing.
We would attend an exhibition at any food festival.
Promotion budget was attached.
Other budget and legal including a legal expense for our promotion
activity.

Thank you
Best Regard
Genius and creative Team Sampoerna School of Business