Paper Example Undergraduate 12,142 words

Qsr the Quick Service Industry

Last reviewed: August 14, 2011 ~61 min read

QSR

The Quick service industry in the United Kingdom has flourished over the last few decades. In addition to Multinational Corporations such as McDonalds, there are also British owned chains such as Chicken Cottage. The purpose of this discourse is to examine the use of the promotional strategies within the context of Quick Service Restaurants in the United Kingdom. The research will explore the ways in which these promotional strategies assist in attracting customers while also increasing the profitability of various restaurants within the quick service industry. For the purposes of carrying out the study 15 managers at ten quick service restaurant chains were asked to fill out a survey. The managers were sent a request by email asking them to participate in the survey. All of the managers who were asked to participate in the survey had been with their respective restaurants for ten or more years. All of the participants had at least 15 years of quick service experience overall. The instructions in the email gave the participants 15 days to return the survey so that it could be included in the study. The findings concede that promotional strategies encourage customer loyalty. The findings also indicate some advantages and disadvantages associated with the promotional strategies adopted by restaurants in the UK market.

Table of Contents

I. Chapter I -- Introduction (page numbers)

1.1 Introduction

1.2 Background

1.3 Aim & Objectives

1.4 Research Questions

1.5 Methodology

1.6 Chapters

One

Two

Three

Four

Five

Six

II. Chapter II- Quick Service Industry Background

2.0 Introduction

2.1 Quick Service Restaurants Industry (profile)

2.3 Individual Chain Strategies

III. Chapter 3-Literature Review

3.0 Introduction

3.1 Quick service restaurant Industry

3.2 Promotional Strategies

3.2. 1 Differentiating the Product

3.2.2 Increasing Sales

3.2.3 Stabilizing Sales

3.2.4 Accentuating the Product's Value

3.2.5 Choosing a Promotional Mix

3.3 Branding

3.3.1 Branding Case Study

3.3.2 Demographic Branding Strategies

3.4 Promotional Strategies involving Corporate Social Responsibility (CSR)

Chapter IV. Methodology & #8230;

Chapter V. Results

Chapter VI. Conclusion

Chapter I

Introduction

1.1 Introduction

Quick Service restaurants are popular throughout the world. However, such restaurants are most popular in the United States and the United Kingdom. While many other industries have struggled to survive as a result of the global economic crisis, the Fast Food industry in the United Kingdom has experienced growth. The popularity of quick service restaurants and the competitive nature of the industry have produced the need to develop unique promotional strategies. Such strategies are designed to attract and retain customers. There are various promotional strategies that have been utilized by companies in the fast food industry for many years. In addition there are some more recently developed strategies that have come about as a result of technological advances and the prevalence with which people utilize the internet to obtain information.

The purpose of this discourse is to examine the use of the promotional strategies within the context of Quick Service Restaurants in the United Kingdom. The research will explore the ways in which these promotional strategies assist in attracting customers while also increasing the profitability of various restaurants within the quick service industry.

1.2 Background

The promotional strategies of quick service restaurants have long been a subject of significant interest. The development of the Fast Food industry has been most widely researched within the context of the United States and the United Kingdom. In fact, these two countries lead the world in the number of fast food restaurants and the consumption of fast food. The popularity of quick service restaurants within these two countries is due in part to the promotional strategies adopted by the various companies that operate in these regions of the world. For the purpose of this discussion we will focus on quick service restaurants and their promotional strategies as it pertains to the United Kingdom.

For the most part, many of the promotional strategies that are adopted are implemented after careful study of the market. Such studies are designed to investigate factors such as demographics, income, employment rates and education. All of these factors play a role in determining the type of promotional strategy that will be adopted.

1.3 Aim & Objectives

The aim of this research is to analyze the Quick Service Restaurant industry in the United Kingdom and to determine the ways in which promotional strategies are developed and utilized. The objectives of the research are as follows:

To Establish why there is a need for promotional strategies in the QSR Industry

To examine the how customers respond to promotional strategies

To assess the modifications that may be necessary for promotional strategies in the future

1.4 Research Questions

The research questions associated with this dissertation is as follows

1. Do promotional strategies create customer loyalty?

2. What are the advantages and disadvantages associated with promotional strategies?

3. How have recent advents in technology influenced promotional strategies?

3. In the future, what types of promotional strategies might appeal to quick service consumers?

1.5 Methodology

The research will involve 15 participants who will complete a 15-question survey about promotional strategies of quick service restaurants in the United Kingdom. The survey will be developed using a five-point Likert Scale. The research will be quantitative in nature with statistical analysis.

1.5 Chapters

Chapter One- Chapter one is the Introductory chapter and provides a brief overview of the items that will be contained in the research. The chapter includes a summary of promotional strategies as it pertains to the Fast Food industry in the United Kingdom. Additionally this chapter expresses the Aims and objectives of the research along with the research questions. There is also a small methodology section, the details of which will be expanded upon in the Methodology Chapter.

Chapter Two- This chapter is designed to provide specific background information on the Quick Service Industry in the United Kingdom. This information involves the most successful players in the industry and the position of the industry in the context of the overall economy of the United Kingdom. The research in this chapter will also focus in the strategies utilized by individual chains and the strategies that are also common to the overall industry.

Chapter Three- The literature review is presented in Chapter three. The information contained in this section will focus on the different types of promotional strategies that are utilized to influence consumer behavior. In addition, this aspect of the research focuses on the advantages and disadvantages of promotional strategies. The purpose of the literature is to provide a foundation upon which to build the findings.

Chapter Four- A detailed methodology will be discussed in Chapter four of the dissertation. The methodology will explain the methods used and provide the actual survey utilize for the research. This chapter will discuss Data Collection and the Data Analysis associated with carrying out the research.

Chapter Five- The discussion chapter will bring together the findings of the survey and compare them to the themes present in the literature review. The purpose of this chapter is to answer the research questions and to determine in what ways that aims and objectives set forth in the introduction were realized.

Chapter Six- The final chapter will provide a conclusion for the entire dissertation along with recommendations for future research in this area of study. The purpose of this chapter is to resolve any issues arising out of the research findings.

Chapter II- Quick Service Industry Background

2.0 Introduction

The Quick service industry in the United Kingdom has flourished over the last few decades. In addition to Multinational Corporations such as McDonalds, there are also British owned chains such as Chicken Cottage. American companies are attracted to the UK because it "is a natural entry point into Europe, with an established eating-out culture that readily embraces new style cuisines and branded concepts (Thompson, 2010)." Many British-based fast food companies are present and thriving because they saw a need or a niche associated with certain types of food and they have been about to exploit the desires of British consumers. Whether multinational or nationally owned the British people are in love with quick service restaurants.

2.1 Quick Service Restaurants Industry (profile)

According to Kuhn (2009) UK's fast food industry has actually benefited from the recession. This is evident as a result of the industry showing an 8% increase in the last year. Even though the leisure industry, taken as a whole has suffered a closure rate of 10% the Fast food sector in the United Kingdom's top ten cities have increased by 8.2% and now total 1450 (Kuhn 2009). Concerning fast food restaurants the author also reported that

"the most successful brands have been Domino's, Eat and Pret A Manger. Burger King has been the least successful, having closed 11.8% of its outlets in the top 10 cities. Pizza chain Domino's has increased its presence by a whopping 50%, while healthy fast food group Eat boosted its portfolio by 36.4% and sandwich chain Pret A Manger by 29.7%. Across all 705 UK town centres analysed by the report, sandwich chain Subway grew the most, increasing its portfolio by 25.9% to 734 units (Khun, 2009)

Additionally, James Moss, of Curzon Investment Property, has commented (Khun, 2009) that Dominos and Subway have been successful in the UK market as a result of their franchise models that are almost recession proof. In addition many investors (who want to own a franchise) have found these two chains to be exceptional investments. Additionally, many "Britons are also shunning posh business lunches and choosing instead to head to Eat or Pret for a sandwich (Khun, 2009,9)." The report also explains that "Independent operators (with fewer than five outlets) have increased their market share by 2.2% across the UK's top 10 cities to further fuel the feeling that many high streets are turning England into 'fried chicken Britain'(Khun, 2009,9)." The following chart illustrates the most popular cities for Fast Food in the UK.

Number of Fast Food Restaurants by City

London (central) (847 outlets)

Edinburgh (129)

Glasgow (94)

Manchester (74

Liverpool (64)

Bristol (60)

Newcastle (60)

Leeds (53)

Birmingham (51)

Cardiff (24)

2.3 Individual Chain Strategies

As previously written in the discussion, the QSR industry in the United Kingdom is composed of both British and multinational companies. This aspect of the investigation will focus on the individual strategies of one multinational company (Dominos) and one British Company. As it pertains to Dominos much of the success that it has realized in Britain can be attributed to the promotional and franchising strategies of the company. As it pertains to the company's promotional strategy, the products that it serves are universally popular and inexpensive as it pertains to feeding a single person or an entire family. During difficult economic times families look for ways to enjoy meals without spending a great deal of money on those meals. As it pertains to Franchising Dominos success in Britain has been so phenomenal because such a franchise is viewed as a sound investment. As such investors are more likely to choose Dominos over some other type of franchise (The previous sentences explain why).

In addition to the strategies of American companies operating in the UK, there are also some British companies that have developed some impressive strategies for this particular market. One such company is Pret (Pret a Manger). The company began in London in 1986, the founders being college friends ("About the Company" Available at: http://www.pret.com/us/about_our_company/about.htm [Accessed 11 August 2011]). In some ways this fast food restaurant is extremely different from Dominos. For one, it is a private company where as Dominos is traded publically. Pret does not allow franchising while dominos does. In addition, the company is well-known for its dedication to providing customers with organic food that is natural and free of preservatives ("About the Company"). . The small familiar nature of Pret has led to a great deal of success for the company. In fact, it opened its first store in the United States in 2000 and continues to expand, though not as rapidly as Dominos.

Although Dominos and Pret are drastically different companies, they have both been able to succeed in the United Kingdom. The reasons for this success likely lie in the ability of both companies to fully exploit their respective niches. For Dominos this means the encouraging of investors through franchising. Dominos also thrives on the popularity of its primary product, pizza. For Pret the exploitation of the niche means the offering up of simple products that are healthy and free of preservatives.

2.4 Industry strategy

In addition to the individual strategies present in quick service, the entire industry also has a strategy that is related to the strategies embraced by individual chains. The industry strategies involve entering into markets where there is a likely demand and providing consumers with inexpensive, quick service, often offering hot food. All restaurants in this industry regardless of size or brand recognition have policies that adhere to the aforementioned structure. These elements are essential and part of the very nature of the quick service industry.

The industry also appears to be propelled by a need to expand into every market possible. When expanding the restaurants in this industry often make a concerted effort to understand the market they are entering. For instance, McDonald's in India does not have any menu items containing beef, as the cow is sacred in India. It also has a few items incorporating Indian dishes to attract people who may be skeptical to try "foreign cuisine" egs: The Mc Aloo Tikki is a popular Indian dish which can loosely be translated to Mc Potato Cutlet. This type of adaptation to new environments ensures restaurants in this industry will be successful.

III. Chapter 3-Literature Review

3.0 Introduction

Quick service restaurants in the United Kingdom enjoy a great deal of popularity because of the convenience and low cost they provide for customers. However, because there are a great many quick service restaurants in the country there exists a great deal of competition, which creates the need for unique promotional strategies. The purpose of this literature review is to provide some insights into the use of promotional strategies within the quick service restaurant industry globally and in the United Kingdom.

3.1 Quick service restaurant Industry

According to DiPietro & Pizam (2007) "Quick service restaurants (QSR), also known as fast food restaurants, are generally defined as restaurants that have limited service and limited menu items (DiPietro, 2007)." The majority of fast food restaurants have drive-thru service. In addition most restaurants in this industry do not sell alcohol and they do not provide customers with table service (U.S. National Adult Tracking Surveys, 2001). Additionally, MuUer and Woods (1994) defined quick service restaurants as having attributes of a reliance on a narrow menu, catering to extremely price sensitive consumers who develop "habit forming" purchases through top-of-mind advertising. This segment of the restaurant industry can also be described as having consumer demand for fast food, precise orders, clean restaurants, and hot food. The research also explains that

"The average check for these restaurants are low (often USD $4-6) and the transaction time is usually under 10 minutes. Quick service restaurants often have repetitive and narrowly defined job roles for hourly employees which often lead to a higher turnover rate than other segments of the restaurant industry (Ebbin, 1999). These are all characteristics that make quick service restaurants very different than other restaurant segments (Ninemeier 2000)."

According to Ninemeier (2000), nothing has had a greater impact on the foodservice industry than quick-service operations. The UK quick service restaurant industry was valued at USD $19.92 billion (UK£8.38b) in the year 2005. Additionally the industry is will likely grow at an average rate of 5% per year in current prices (Keynote Reports, 2006 quoted in Ninemeier, 2000).

Jones et al. (2002) explains that American companies have been extremely instrumental in the steady development of the quick service industry in the United Kingdom. The authors also explain that even though McDonalds is now one of the leaders in the UK market, it was Kentucky Fried Chicken (KFC) who established a presence in the UK first. In fact, the first KFC in the UK came in 1965 to Preston (Jones et al. 2002). Once KFC presented the idea of fast food to the UK it was more than a decade before the concept spread and became more popular (Jones et al. 2002).

The popularity of the fast food industry in the UK became cemented in 1974 when McDonalds opened its first store in Woolwich in South London. In a single decade McDonalds had established more than 120 franchised restaurants. These restaurants had also spread to different locations including the Midlands and the North West of England. The success of McDonalds in the United Kingdom served as a beacon of hope for other American Fast Food Chains. As such Burger King, Wendy's and Pizza Hut also setup shop in the UK market during the late 1970's. However, most of the companies did not enjoy the same rate of success as McDonalds did with its quick expansion. In addition this period was also met with an influx of British companies joining the ranks as quick service restaurants. These companies included Casey Jones, Wimpy, Spud-U-Like, Oliver's, and Mr. Big. Through the 1980's and 1990's, the large American chains such as Burger King and KFC were able to expand substantially throughout the UK. However some of the smaller chains were unable to keep pace and as a result they no longer have a presence in the United Kingdom.

Today the fast food industry continues to be amongst the most successful in all of the United Kingdom. There is a great deal of healthy competition and differentiation within the industry. The larger companies still lay claim to most substantial amount of the market share but smaller companies and British owned businesses also have a healthy footprint (this entire paragraph are conclusions I came to based on everything I read there is no source) in the market. As a result of the climate for quick service restaurants in the United Kingdom, there is a substantial need to understand and implement successful promotional strategies. The following section of the literature review will provide a detailed overview of promotional strategies and the manner in which they serve as an aspect of the overall marketing mix.

3.2 Promotional Strategies

According to a report published by Pierce college entitled "Product Promotional Strategy" (2002), promotion is just one of the elements of the marketing mix, which also include pricing, product and placement. Promotional strategy involves informing, persuading, and influencing a consumer decision concerning a product or brand. Promotion is important for many different types of organizations, including those in the fast food industry. In many cases promotional strategies are designed for the purpose of developing primary demand, which is defined as the aspiration for a general product category. Additionally the Promotional strategy objectives adopted by organizations may differ tremendously. For instance some use promotion to expand their markets, others to hold their current positions, and many others to establish a corporate stance on a public issue. Promotional strategies can also be used to reach preferred or specialty markets. In the majority of situations sources determine the specific promotional objectives or goals of providing information, differentiating the product and increasing sales. In addition it is possible for a company to have several promotional objectives.

3.2. 1 Differentiating the Product

Within the context of promotional marketing there exists a need to ensure that the product offerings are differentiated from one another, within the context of the fast food industry this need is extremely vital. The need exist because many companies within the industry sell the same types of products. For instance, McDonalds and Burger King both sell Hamburgers and Fries. As such both companies have to find ways to distinguish their products from one another. In this case Burger King promotes its burgers as being Flame broiled as opposed to fried. The report "Product Promotional Strategy" further explains that

"Marketers often develop a promotional strategy to differentiate their goods or services from those of competitors. To accomplish this, they attempt to occupy a "position" in the market that appeals to their target customers. Promotions that apply the concept of positioning communicate to consumers meaningful distinctions about the attributes, price, quality, or usage of a good or service ("Product Promotional Strategy")."

The success of firms in this industry is very much dependent upon their ability to properly differentiate themselves from one another. Failure to differentiate could lead to brand confusion and lead customers to seek the products offered by the most recognizable or trusted brand. As such quick service businesses both large and small must be mindful of the need to differentiate its products.

3.2.2 Increase in Sales

Quick service restaurants are in business to make money. As such the primary objective associated with the promotional strategy is to increase sales volume. To this end some promotional strategies will focus on primary demand, but others tend to focus on selective demand. In some cases there is a specific audience that the company targets. For instance, McDonalds has products that target children (Happy Meals) and they also have products that target adults (specialty coffee). The purpose of this is to ensure that no matter the demographic all customers can find a product that is suitable for their age group and their needs. In doing this, the company increases the likelihood that it will experience significant growth in sales. Therefore realizing the primary purpose for the development and implementation of a promotional strategy.

3.2.3 Stabilizing Sales

The stabilization of sales is also a leading motive behind the implementation of a promotional strategy. The report explains that

"Sales stabilization is another goal of promotional strategy. Sales contests are often held during slack periods. Such contests offer prizes (such as vacation trips, color televisions, and scholarships) to sales personnel who meet certain goals. Sales promotion materials -- calendars, pens, and the like -- are sometimes distributed to stimulate sales during off-periods. Advertising is also often used to stabilize sales. Hotels are crowded on weekdays with business travelers, but these people go home on Friday. So many hotels promote "weekend packages" at lower rates to attract tourists and vacationers ("Product Promotional Strategy")."

Additionally sales stabilization is vitally important because it allows the company to improve various types of internal planning including purchasing, market and financial ("Product Promotional Strategy"). Stabilization also leads to an evening out of the production cycle; and a decrease in costs associated with management and production ("Product Promotional Strategy"). When a promotional strategy is utilized correctly the stabilization of sales will be an end result ("Product Promotional Strategy").

3.2.4 Accentuating the Product's Value

The enhancing or accentuating of a products value in the context of a promotional strategy has a foundation in factors including repairs and warrantees ("Product Promotional Strategy"). In the context of a fast food chain these factors might be associated with the refund policy or pizza delivery policy. These factors add value to the product. For instance, for many years Dominos had a policy of ordering food in 30 minutes or less or the meal would be free. This policy accentuated the value of the product to the customer because there was a possibility that they could get a free meal. This was not a policy adopted by all Pizza companies and as such it gave Dominos a competitive advantage. Additionally it is quite likely that when establishing this policy the company believed that it would also force employees to work together as a team to get orders out in a timely manner.

Indeed added value is often a reason why some fast food restaurants do so well regardless of the market that they enter. As an aspect of the promotional strategy it is vitally important that companies attempt to accentuate product values whenever possible. In doing so, the companies will have a more significant chance of securing a place in the market.

3.2.5 Choosing a Promotional Mix

Now that we have established that having a promotional strategy is vital to the success of any type of company, there is the question of how to choose the appropriate promotional mix. The report explains that choosing the right promotional mix can be a difficult endeavor for marketers ("Product Promotional Strategy"). However there do exist some established guidelines to aid in shaping the allocations of associated with promotion such as personal selling, sales promotion, and advertising ("Product Promotional Strategy"). The following guidelines should be taken into careful consideration as it pertains to choosing the appropriate mix:

1. Decide whether to spend promotional resources on advertising or personal selling. When the decision concerning how to spend the resources is established it is imperative that the marketer establish the level of sales promotion and public relations efforts that will take place ("Product Promotional Strategy"). ")."

2. Be careful to take into consideration that market in which the goods or services will be sold. A second consideration is the market served by the good or service. The report presents an example stating, [suppose] "drill press is sold to the industrial market, so the manufacturer's strategy must emphasize the sales force. By contrast, California Raisins are sold to consumers; an effective advertising campaign is important to consumer products like raisins ("Product Promotional Strategy")." ")."

3. The third rule asserts that the value of the product must be taken into consideration when choosing a promotional mix. For instance "Most companies cannot afford to emphasize personal selling in marketing a low-priced item and instead choose advertising for the promotional strategy of goods like toothpaste, cosmetics, soft drinks, and candy. Higher-priced items in both industrial and consumer markets rely more on personal selling. Examples include time-share vacation condominiums and Boeing aircraft ("Product Promotional Strategy")."

4. The last guideline urges marketers to take into consideration the time frame associated with the process. In most instances advertising is utilized to precondition an individual prior to a sales presentation. Additionally when an advertising theme is effective it has the ability to positively influence an individual when they enter a store or are ready to place their order. However, in self-service situations, a salesperson is usually responsible for completing the actual transaction. As such advertising is normally utilized once more following the sale to assure consumers that their orders are correct and to precondition the buyer to make a repeat purchases (Product Promotional Strategy). For instance, after placing an order at KFC the cashier might repeat the order to the customer to confirm that it is correct and once the customer receives the order the cashier might say to the customer "please come again." These actions may seem routine and even mundane but they are actually part of a promotional strategy.

The report further explains that promotional strategies can have a profound impact on category demand. According to the report

"Fast food promotion strategies do indeed have an impact on category demand, and not just restaurant share. In fact, when measured by incremental units sales, and not just contribution to elasticity, a price change or promotion primarily influences fast food demand and has relatively little impact on market share. While members of the fast food industry argue that they are sufficiently competitive that most of the impact is dissipated in competitive rivalry, differentiation from both spatial (food attributes) and temporal (brand loyalty) sources means that consumers tend to substitute very little among restaurants. Therefore, promotion tends to increase the total amount of fast food spending (3)."

Taken together, the promotional strategy adopted by any restaurant in the fast food industry must be carefully considered. Failure to implement a plan that fully exploits the market in which the restaurant exists may result in lost opportunities. As such marketers must make the appropriate decisions and take into considerations the well established guidelines associated with the implementation of a promotional strategy.

3.2.1 Pricing

One of the primary reasons why fast food restaurants all over the world are so popular is the low prices that are present at quick service establishments. Pricing is but one aspect of the promotional strategy that restaurants in the quick service industry have embraced. One of the pricing strategies adopted by the quick service industry has been the development of a small menu of lower priced items (even lower than the main menu items). In fact

"Over the past 25 years, the larger QSR chains have evolved with a focus on fast, low-price point meal options. The Taco Bell change to low-price menu items in 1988 ushered in an era where building and menu items were cost-engineered to provide every savings that could be justified ("What Fast-Casual and Quick Service Restaurants Can Learn From Each Other" 2005)."

Quick service restaurants have embraced this promotional strategy as a way to meet the needs of consumers particularly during a troubled economy. However, while some customers desire to have products at a lower price, recently many customers have begun to demand a higher end experience at fast food restaurants. This experience is associated with the type of food that is served and the overall ambience of the quick service restaurant. For this reason fast food chains can differ substantially in the way that they look depending on the location. In locations where more of an upscale feel is demanded the seating and fixtures may be more expensive to provide customers with a different type of experience. (example)

Overall the research asserts that the development of a promotional strategy is essential to the success of any company. Within the context of the Quick Service industry promotional strategies cannot be overlooked or taken lightly. The development of a substantive promotional strategy can mean the difference between success and failure. In an environment like the United Kingdom in which these is an apparent demand for fast food service there must be even more of a concerted effort to ensure that the established promotional strategy is consistent with the demands of the market. When properly developed and implemented a promotional strategy can serve as a tool to assist a company in meeting all of its business goals.

3.3 Branding

Another important promotional strategy is branding. Branding is important because it influences consumers through the development of an image that is consistent with the desires of the consumer. Branding is also important because it promotes customer loyalty. Once a customer has experienced the taste of a certain brands food and enjoyed it, they are likely to become loyal customers.

Jones et al. (2002), reports that branding is viewed as one of the most important tenets of marketing doctrine. For instance Doyle (1998), asserts that "brands are at the heart of marketing and business strategy." In addition Kotler et. al (1999) claimed that "the most distinctive skill of professional marketers is their ability to create, maintain, protect, reinforce and enhance brands (Cited in Jones et al. 2002)." Although the service sector has been amongst the most significant and unique factors in the economy of advanced nations for many years the sector has traditionally been product, instead of services, brands that has been the most researched in the context of marketing literature. However, in recent years the importance of branding has increasingly been seen a major issue in the service industry. The authors report that this emphasis now being placed on branding is most evident as companies like McDonalds and KFC which are among the most recognizable brands in the world ( Jones et al. 2002). The authors further report that,

"Branding has been a central and vital element in the introduction, growth and successful development of fast food in the UK. According to Mintel (2001) branding is seen to give consumer reassurance and confidence in terms of the quality of the food, the service, menu pricing and overall standards, which effectively creates a sense of 'knowing what you are going to get'. Thus brands are seen to take the guesswork and uncertainty out of choosing somewhere to eat, so long as they are operated within strict guidelines to ensure that the brand offer is identical (Jones et al. 2002)."

Indeed the notion of uniformity is vitally important as it pertains to the concept of branding. Producing unformed products or services is done for not only the benefit of consumer but also to benefit the company (economies of scale) and its employees. For instance buying in bulk and marketing strategies are the two most prominent ways in which a company can experience cost savings. With this understood, Mintel (2001) asserted that the success of branded businesses lies in their capacity to provide formula food. Formula food allows the company to use ingredients that are cheap. Such companies are able to be consistent with the quality of food offered and efficient with their service (Jones et al. 2002). Similarly, large national chains have the ability to present national advertising campaigns that reach a wide audience (Jones et al. 2002).

3.3.1 Branding Case Study concerning the perception of UK Customers

As already explained during this literature review, the quick service industry in the United Kingdom is substantial and continues to grow at an alarming pace. In fact, in 2001 also branded fast food chains in the UK sold an estimated 2,966 million in the sectors of burgers and fried chicken (Jones et al. 2002). These sectors were responsible for 85% of the spending in these sectors. Additionally McDonalds, Burger King and KFC were voted as the most popular of all fast food restaurants (Jones et al. 2002).

With the popularity of these particular brands understood, Jones et al., 2002 in their case study, sought to "provide some initial and exploratory insights into how consumers perceive the McDonalds, KFC and Burger King brands (Jones et al., 2002). " As such the researchers believed that the formation of discussion groups would provide for the most suitable form of data collection. This approach to data collect was chosen because it presented "operational simplicity while allowing participants an opportunity to discuss not only the perceptions but also, where appropriate, their deeper feelings and emotions about the three fast food brands." For the purposes of carrying out the research the authors also developed a topic guide. The guide was based on the three major services brand themes recognized by de Chernatoy and Segal-Horn (2000). Although these themes served as a guide participants were also allowed to discuss other associations they had with the brand. The discussions lasted from 45 to 60 minutes and they were held in various places throughout the UK (Jones et al., 2002). Participation in this study was not anonymous and the participants were form different demographic contexts. In addition the authors were careful to take comprehensive notes during each discussion group and in so doing make a logical analysis of customer perception as it pertained to the characteristics associated with three aforementioned restaurants in the UK.

According to the analyses of the group discussion all of the companies possessed unique brand images according to the participants in the study (Jones et al., 2002). Amongst the participants the Logo associated with McDonalds was extremely recognizable and most of the participants had a positive response to seeing the logo (Jones et al., 2002). In fact the participants viewed McDonalds as the company that sets the standard for all other companies in the fast food industry (Jones et al., 2002). Although most participants had positive reaction others referred to the company's mascot, Ronald McDonald as the clown guy and seemed annoyed with the ever present advertising and branding efforts of the chain. These negative reactions were not the norm for the study but they did exist.

Additionally KFC's brand image was associated with 'the Colonel' and 'chicken, however these were the only two dimensions that participants seemed aware of as it pertained to KFCv (Jones et al., 2002). Likewise, Burger King's brand image was associated with the Whopper and the flame grilled slogan of the company. As such the authors concluded that the brand image recall of the companies is substantial and well entrenched in the mind of the participants (Jones et al., 2002). The general perceptions of the brand images certainly seem meaningful to participants and they accord well with the images communicated by the companies.

The authors also reported that all of the companies were perceived by participants as having unique positions within the fast food industry (Jones et al., 2002). The perception was also that the companies had been successful in promoting both the identity and image of their brand to customers. The authors explain that in various instances this focus was expressed in terms of product and service this is apparent in the following statements associated with McDonald's. The authors explain,

"The initial responses were clearly product related as in 'the Big Mac is their thing', 'you always know when you are McDonalds' and 'even my two-year-old recognises McDonald's', 'you can always rely on them to get it right' and 'for convenience they cannot really be beaten'. However typical responses for the other two companies tended to be more product than service based as in 'KFC is chicken', and 'flame grilled is the thing'. There was, for example, more limited mention of Burger King's brand image customer commitment to 'Have it Your Way'. Given that customers tend to interpret a company's brand, not only from advertising brand images but also from all their interactions with the company it would seem that service dimensions are partly, but perhaps not always fully, helping to reinforce the clarity of the brand (Jones et al., 2002)."

Another avenue explored by the discussion groups involved the consistency of experience when dining at each of the chains. According to the case study there were some differences amongst the three companies as it related to the perceptions of the participants. On the one hand, participants when speaking about McDonalds reported consistencies in the areas of restaurant environment, product quality, and service experience (Jones et al., 2002). Likewise participants when speaking of Burger King reported the same consistencies. However comments pertaining to the consistency at Burger King had less positive undertones than they dos for McDonalds. Although Burger King and McDonalds seemed to be consistent in the areas that were examined, the authors explain that the participants seemed to have experiences at KFC that were unpredictable (Jones et al., 2002). The authors report that the variability in the reporting on KFC was usually associated with the differences in service and in the environmental ambience, between various KFC restaurants. In most cases the reports about KFC included comments related to the consistency of service. Some participant assert that KFC was 'a safe choice for those with children', 'the food, the service and the environment are always what you expect', 'in one word predictable' and 'always clean and cheerful'(Jones et al., 2002).

In addition to the aforementioned results associated with the case study some of the participants reported that the behavior of staff was consistent amongst each fast food chain while others found that there were variations in behavior. Although the participants reported consistencies, these consistencies were not seen as unique, in fact they describe it as a "bland sameness (Jones et al., 2002). " The participants insisted that 'they have a set script' and 'they always say the same thing' (Jones et al., 2002). Additionally "Respondents' observations on variations in staff behaviour included both sympathetic as well as more critical views as illustrated by the following statements 'the variations are influenced by how busy staff are and how close it is to the end of their shift' and 'staff vary from place to place ranging from hyper helpful and Americanized to downright rude (Jones et al., 2002)."

Lastly, the group discussions also focused on the issue of values. These particular discussions exposed two expansive sets of perspectives. The first perspective is associated with the concept of treating the customer properly. This perspective was expressed as it pertained to monetary value (Jones et al., 2002). Additionally common statements related to all three companies were inclusive of 'good cheap food ... fits the student lifestyle', 'it is a real treat for the family and it is very good value', 'if you are taking the kids out it makes sense', and 'the actual value is not just the food the kids WANT to go there'(Jones et al., 2002)." The research also found that a small number of participants tended to express their perceptions of the restaurants in more general terms. With statements such a 'it is like you can get what you want, if you want to eat in, or take away, or drive through they fix it so you can'(Jones et al., 2002).

The second set of perspectives revealed through this study were more concerned with the manner in which the company was involved with the surrounding communities. In fact, some of the participants pointed out that some of the restaurants under examination had charitable organizations (Jones et al., 2002). Still others were committed to the community on various levels and sponsored sports activities. During the discussions the participants recognized McDonald's "as supporting children's charities, ('they have those collecting boxes on the counter for your small change and I think it goes to children's charities') and a minority of respondents also mentioned the company's sponsorship of family areas in soccer grounds and the company's advertised commitment to its environmental responsibilities (Jones et al., 2002)."

Obviously, branding can have a profound impact on the manner in which a company is perceived. As it pertains to this particular study, the research indicates that consumers are paying close attention to the brand image and brand identity of the fast food restaurants in the United Kingdom. This case study is rather useful because it can be examined by restaurants to determine the ways in which it can work to improve its brand. For instance a manager at KFC might be inclined to work more thoroughly on making the service consistent regardless of location. Additionally customers also may develop perceptions about a company based on the manner in which the company interacts with the broader community. This is also an issue that companies should keep in mind as an aspect of their promotional strategies.

3.3.2 Demographic Branding Strategies

In the fast food industry demographics play a central role in determining the manner in which a company brands its products. Many companies believe that exposing people to a brand should begin at an early age. With this understood, quick service restaurants often create branding strategies with children in mind. In fact Robinson et al. (2007) report that

"Food marketing to children is widespread. The food and beverage industries spend more than $10 billion per year to market to children in the United States.1 One of the goals of marketing is branding to encourage children to recognize and differentiate particular products and logos. By 2 years of age, children may have beliefs about specific brands,4 and 2- to 6-year-olds can recognize familiar brand names, packaging, logos, and characters and associate them with products,5-8 especially if the brands use salient features such as bright colors, pictures, and cartoon characters. By middle childhood, most children can name multiple brands of child-oriented products (Robinson et al. 2007)."

Robinson et al. (2007) further asserts that even extremely young children product request are made based in brand awareness and recognition. These requests can quickly turn into begging for a particular product based on brand. Although this behavior may be difficult for parents to deal with it bodes well for the fast food companies that have embraced aggressive branding strategies. The children who are exposed to branding are now likely going to remember the brand for the rest of their lives. As such the companies are able to build a stronger customer base continuously through branding strategies.

Overall, the research contained in this section of the literature review asserts that branding is an essential aspect of any promotional strategy. The case study suggest that brand image and brand identity become a significant aspect of the way customers perceive a company and what that company has to offer. As such companies can greatly influence customers if the right type of branding strategy is implemented and developed over time. Although each of the companies featured in the case study have long had a presence in the UK market, McDonalds is still respected as the industry leader as it relate to the quality and experience of consumers in the UK. In addition to the case study the research on branding also seems to suggest that successful branding strategies are often geared toward children. This aspect of the promotional strategy is designed to ensure that these young people will become loyal repeat customers.

3.4 Promotional Strategies involving Corporate Social Responsibility (CSR)

Although corporate social responsibility is supposed to relay the steps that the company is taking to be socially responsible, many fast food companies use their CSR activity to promote their companies. For instance a company might use its stance of environmental friendliness to attract consumers. Schroder & Morven (2005) investigated the impact of promotional strategies involving CSR. During focus groups participants revealed that they were skeptical of companies that utilized such tactics and believed them to be a ploy to increase their profitability. The authors also report that in addition to this finding, a significant debate took place concerning whether or not quick service restaurants encourage excessive consumption and the responsibility they had in promoting irresponsible eating habits related to levels of consumption. The participants asserted that the company's did have some responsibility. The author futher explains that

"both focus groups included individuals who had worked at McDonald's where they had been trained specifically to encourage sales of larger portions and/or meal packages. However, the groups did not reach agreement as to whether this was normal or unethical business practice. Participants also reinforced the familiar convenience-healthfulness dichotomy, describing fast foods as convenient but unhealthy. McDonald's products were judged as enhancing the personal status of child consumers, but not of adults. No similar observation was made in relation to KFC products. Some students commented that there was a confusion of values signaled by fast-food restaurants. In particular, the product range structure was confusing, thus undermining the "fast" and uncomplicated value implied by the term "fast food." Furthermore, the pressure felt to consume in excess of what the customer really wanted tended to weaken the implied straightforwardness of the fast-food experience (Schroder & Morven, 2005)."

The results of this study demonstrate that consumers are keenly aware of the practices of fast food restaurants and they are not always approving of these practices.

Technology and Promotional Strategies

As a result of the increased use of technology companies have begun to utilize social media to ensure that it can persuade users to try new products or services. Websites such as facebook and various smart phone applications allow companies in the fast food industry to use apps for promotional purposes. In the case of Facebook, the company released a feature in 2010 which allows companies to "offer coupons and special deals through its mobile application, intensifying competition in the market for mobile searches and advertising…Facebook would not charge businesses directly to list coupons and special deals through the mobile application. Instead, businesses can purchase advertising to publicize their offerings on Facebook (Wortham, 2010)." There have been other similar applications but Facebook offers the first of this magnitude.

Advantages and Disadvantages of Fast Food Promotional strategies

Advantages

The advantages of having a promotional strategy involve the development of a loyal customer base. Promotional strategies including pricing and product differentiation set companies apart from one another while also influencing the behaviors of consumers. Companies that operate in the United Kingdom such as McDonalds have built a strong following through the use of promotional strategies and these tactics have assisted the company in expanding throughout the nation. The absence of promotion strategies would likely lead to the inability of these companies to properly secure the customer base needed to be competitive in the UK market.

Disadvantages

In addition to the advantages of having a promotional strategy there are also some significant disadvantages. One of the primary disadvantages involves the ability of the promotional strategies to inadvertently encourage unhealthy eating habits amongst consumers. This is an issue that has been debated a great deal in recent years as obesity rates in the United Kingdom and the United States (where fast food is most readily available) has reached epic proportions. As a result several studies have suggested that promotional strategies can have an impact on the manner in which people choose to eat and how much they eat.

Officials in Europe and America are quite alarmed at the amount of advertising that is devoted to children geared toward the consumption of unhealthy foods. According to an article published in the economist,

"The most damning criticism comes from America's Institute of Medicine (IOM). It reckons that most of the $10 billion or so spent last year on marketing food and drink to young Americans was for stuff that was high in calories and low in nutrients. This, it says, puts children's "long-term heath at risk." Around 16% of American children aged 6-19 are now obese -- three times the level of the 1960s. If the food industry does not voluntarily start promoting more foods that are lower in calories, fat, salt and added sugars, then the IOM believes Congress should take action ("Business: Junior fat; Obesity and advertising")."

Additionally officials in Europe are also worried about the impact of fast food advertisements on obesity rates. As a result, the European Commission began a public consultation to discover how to reduce obesity, which the commission acknowledge is growing at an "alarming rate." Additionally in Scotland, more than a third of 12-year-olds are overweight. At the time of this publication the commission was considering various ideas, including attempting to persuade the food and advertising industries to limit junk-food marketing on a voluntarily basis.

In their research on the impact of food advertisement of Childhood obesity, Yi Chou et al. (2008) employed the 1979 Child -- Young Adult National Longitudinal Survey of Youth and the 1997 National Longitudinal Survey of Youth to determine the impact of television fast food restaurant advertising on children and adolescents as it pertained to being overweight. The results of the study indicate that "A ban on these advertisements would reduce the number of overweight children ages 3 -- 11 in a fixed population by 18% and would reduce the number of overweight adolescents ages 12 -- 18 by 14% (Yi Chou et al., 2008)."

These findings demonstrate that promotional strategies can be extremely controversial as it pertains to the fast Food industry. Some companies have started to offer slightly health choices such as substituting French fries for apples for kid's meals (Sterrett, 2008). Still opponents of fast food advertisement to children assert that the fast food industry needs to practice more responsibility as it pertains to the way that it advertises to children given the unhealthy nature of the food that fast food restaurants tend to sell.

Conclusion of Literature Review

The purpose of this literature review was to provide some insight into the use of promotional strategies within the quick service restaurant industry globally and in the United Kingdom. The literature review revealed that the quick service restaurant in the UK is extremely successful as a result of health competition and differentiation. Large companies such and Dominos and McDonalds have the most substantial presence in the UK but companies such as Pert are also extremely successful. Because of the climate for quick service restaurants in the United Kingdom, there is a significant need to understand and implement effective promotional strategies. Failure to implement a plan that takes full advantage of the market may result in lost opportunities. With this understood marketing profession should make the appropriate decisions and take into consideration the guidelines associated with the implementation of a promotional strategy.

Branding has a significant effect on the way a company is perceived by customers. The case study revealed that consumers are attentive and know brands according to their image and identity. The results of the case study can be utilized to establish better practices at various fast food restaurants regardless of location. One of the most important revelations of the case study is the importance of uniformity amongst various locations of a fast food chain. Customers want the comfort of knowing that both the food and service provided with be consistent.

The review of the literature also suggests that technology will continue to play a significant role in promotional strategies for fast food restaurants well into the future. There appears to be no conceivable way of stopping the increased use of the internet. There are substantial benefits that can be realized through the use of the internet and social media. These benefits are inclusive of convenience and decreases in cost associated with printing coupons on paper and mailing promotions.

The research also revealed both advantages and disadvantages associate with developing and implementing a promotional strategy. The primary advantage is the increase in sales. There are also benefits associated with brand recognition and brand awareness. There are also some disadvantages that are present as it pertains to promotional strategies that target children and might influence unhealthy eating habits.

The literature review has provided a great deal of insight as it pertains to the promotional strategies that have been embraced and continues to embrace in the United Kingdom and around the globe. Such strategies allow businesses to flourish and grow in ways which may have once been inconceivable.

Chapter IV. Research Methodology

The study utilizes both qualitative and quantitative research. The qualitative research concerns the use of existing research as seen in the literature review. This information was found in peer reviewed journals, books and a few selected websites. The qualitative information laid the foundation for the quantitative aspects of the research that will follow.

As it pertains to the quantitative data, the research utilized a survey methodology. Surveys are a type of quantitative research. Survey research occurs when " the researcher selects a sample of respondents from a population and administers a standardized questionnaire to them. The questionnaire, or survey, can be a written document that is completed by the person being surveyed, an online questionnaire, a face-to-face interview, or a telephone interview. Using surveys, it is possible to collect data from large or small populations (sometimes referred to as the universe of a study) ("Writing Guide: Survey Research" http://writing.colostate.edu/guides/research/survey / [Accessed 11 August 2011].)."

The survey used to carry out this study presented fifteen questions and utilized a five-point Likert scale. The Likert scale was employed because it provides the researcher evaluate quantitative information through simple statistical measures. This five point scale is as follows:

1-Strongly Disagree

2-Disagree

3-Undecided

4-Agree

5-Strongly Agree

This particular methodology was chosen because it allows the study to examine the findings in a manner that is statistical in nature. In so doing, this information in the findings is less likely to contain bias.

Participants

For the purposes of carrying out the study 15 managers in London at ten quick service restaurant chains were asked to fill out a survey. The managers were sent a request by email asking them to participate in the survey. All of the managers who were asked to participate in the survey had been with their respective restaurants for ten or more years. All of the participants had at least 15 years of quick service experience overall. The instructions in the email gave the participants 15 days to return the survey so that it could be included in the study.

Data Collection

Each of the surveys was emailed back to the researcher within the 15 days allotted to complete the survey. The surveys were then printed and evaluated to ensure that all of the questions were completed correctly. The research then compiled all the answers for the purpose of carrying out a statistical analysis.

Limitations and Delimitations

The limitations of the study are associated with the participants in the study who were chosen based on a list of managers. There is also some limitation associated with the underlying theory of promotional strategy. The delimitations are associated with the geographic location in which the study takes place which is limited to the United Kingdom in general and London in particular.

Questionnaire

The 15 question survey contained appeared in the email in the following manner:

Instructions: please carefully consider each of the following questions and circle the most appropriate answer. Please forward the survey back to the sender within 15 days.

1. The use of promotional strategies is the primary reason that Quick Service Restaurants are so popular in the United Kingdom.