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 customer’s

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
Mc’Donald 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, Mc’Donald, 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, Coca-
Cola 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?

How do you Expected What is their

match up Future Current
against them? Strategy 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:

“KFC’s 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 McD’s 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.
Variables KFC Mc Donald
Establish in Indonesia 1979 at Melawai 1991 at Sarinah Department store

Target Market Teen and adults Children , Teen and Young adults

Outlet 307 106

Famous Menu Chicken Fried Burger ( Cheese Burger, Big Mac, Double Cheese,
McChicken, Fillet)
Price Around Rp15,000 for packet Around Rp 16,000 for packet

Customers behavior Usually come together with their Come with their friends or their family buy burger
picture friends
and for the regular menu that they potato and drink , Mc Flurry ,use Wi-Fi
buy is
chicken packet , drink ,float and fried
potato
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

Promotion Strategy
Online Blog web Sales Promotion

In Store information
BonChon Mascot

Bon Bon Chobin

This mascot are made because we believe that they’re 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”. (L-

comfre 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 30.000.000,00 IDR

Brochure for 10000 sheet 10.000.000,00 IDR

Exhibition 30.000.000,00 IDR

Other budget and legal 11.450.000,00 IDR

Promotion Event Budget 68.550.000,00 IDR

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