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Nanyang Technological University
Nanyang Business School
AB112 Marketing
Semester 1, AY 2010/2011
Marketing Case Study: Botak Jones
Group Members: Wu Jingyi Estee (U1010286G)
Tan Xuewen Nigel (U1010939L)
Yeo Jia Wei (U1010652L)
Shermine Yeo (U1010547G)
Zhang Si Yuan Winston (U1011113J)
Tutorial No.: 17
Class Date & Time: Thursday 10.30am
Instructors Name: Prof. Wayne Kwan
Team No.: 03
Cell Phone No.: 81980820 / 81336078
Word count: 1800 words
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TABLE OF CONTENTS
SYPNOSIS.... 3
LESSON 1: DEVELOPING A CUSTOMER-DRIVEN MARKET
STRATEGY... 4
1.1 Understanding the Marketplace and Customer Needs...... 4
1.2 Market Segmentation and Target Marketing. 4
1.3
1.3.1
1.3.2
1.4
Choosing a Value Proposition.......
Positioning.
Differentiation...
First-In Marketing Strategy...............................
5
5
5
5
LESSON 2: EFFECTIVE MARKETING MIX....... 6
2.1 Product.......................... 6
2.2 Price........................................... 6
2.3 Place.............................. 7
2.4 Promotion.. 7
LESSON 3: CUSTOMER RELATIONSHIP MANAGEMENT.. 8
RECOMMENDATIONS..... 9
Reducing Clutter.... 9
The Green Botak . 9,10
MASSIVEWHOOPASS Challenge ..... 10,11
Market for a Cause Hair For Hope. 11,12
LIST OF REFERENCES 13
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Synopsis
Learning from his previous failure, Bernie Utchenik has expanded the 2003-born
Botak Jones(BJ) to a total of twelve locations today. This achievement was possible
as he was able to better understand customer needs and implement an effective
marketing strategy. His vision coupled with his willingness to undertake business
risks were the main reasons behind his success. Through fulfilling his promise of
providing quality western food at affordable prices, Botak Jones slowly gained the
trust and loyalty of its customers and was hence able to build up a strong established
brand name for itself.
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Lesson 1: Developing a Market Strategy
1.1 Understanding the Marketplace and Customer Needs
Utchenik set up his first stall in Tuas because he could identify a need for goodquality western meals when he realized that none of the canteens and coffee shops
there were selling it, and foreigners were travelling out for it. In addition, he also saw
an opportunity for expansion into the heartland areas when the stall started attracting
customers outside of Tuas.
*Lesson*Understanding customer needs is important in creating an effective market
offering that addresses them.
1.2 Market Segmentation and Target Marketing
Utchenik inferred that since many foreigners working in Tuas would not choose local
dishes, there might be a substantial proportion of consumers who would prefer high
quality western meals. Hence, he identified Tuas as his first target market segment.
In addition, Utchenik also realized that affordable western meals of fine quality were
hardly available amongst common HDB estates. He felt there were many in the
heartlands who might not mind paying slightly more for quality authentic western
meals. Soon, they became Utcheniks second target segment and Botak Jones chain
outlets were subsequently set up in the heartlands.
*Lesson* Segmentation and targeting help companies to pinpoint opportunities
emerging in the market and better cater to their customer needs.
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1.3 Choosing a Value Proposition
1.3.1 Positioning
With reference to Botak Joness mission statement and tagline from the article, we
infer that the company is positioning itself to give customers the highest standards of
food quality at affordable prices.
*Lesson* Positioning is essentially a promise from the company to the customer
and should be clearly defined and established.
1.3.2 Differentiation
BJ controls the food preparation process from start to finish, using only qualityingredients. In addition, they offer higher tiers of meat such as the USDA cuts at
more affordable prices compared to restaurants.
Moreover, side ingredients such as spice mixes and salad dressings are made by BJ
themselves. This helps the company to offer its customers more affordable prices
without sacrificing food quality. Botak Jones also has a catchy brand name which is
easy to remember.
*Lesson* To support their positioning, companies must have strong differentiation
which will in turn lead to strong brand integrity. Differentiation will later be translated
into the marketing mix.
1.4 First-in Marketing Strategy
By selling authentic western meals in Tuas and the heartland areas, Botak Joneswas the first to create such a market offering for these particular target segments.
Utcheniks ability to better understand customers needs coupled with his willingness
to undertake business risks made Botak Jones a success.
*Lesson* By penetrating and attracting target market segments before anyone else,
companies can potentially create primary demand and successfully gain a large
market share.
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Lesson 2: Effective Marketing Mix
2.1 Product
Utchenik stretches his product line to cater to people with varying income levels,
from a $6 Botak Burger to a $22 Ribeye Steak. Besides, menu offerings like the
mini-me and massive burger series provide customers with varying options on food
portions.
In addition, online feedback channels and catering services provided also help to
further augment the product, hence proving Botak Joness desire to continually seekimprovement in its product offerings.
*Lesson* Product offerings should be improved and augmented in order to address
the varying needs of customers within the target segment.
2.2 Price
Botak Jones practises Good Value Pricing by offering affordable prices without
compromising on its food standards. The company is able to charge low prices due
to its self-made side dishes and the low overhead rental costs of operating in a
coffeeshop.
Product line, product bundle and optional product pricing are also evident from the
different product-price combinations and varying set-with-sides menu offerings. This
variety of options serves to satisfy the various pricing needs of customers.
*Lesson* Different pricing strategies help to maximize profit earnings as they chargevarying product combinations at customers perceived value reasonably.
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2.3 Place
Most Botak Jones outlets are located in the common HDB estates. By bringing Botak
Jones into the heartlands, customers would have increased accessibility to quality
western meals otherwise unavailable in coffeeshops.
*Lesson* Product accessibility and convenience are important factors in attracting
and retaining customer value.
2.4 Promotion
Botak Jones currently advertises though its website and various social media
platforms to increase customer intimacy. For example, in order to reach out to a
larger potential market, a lunch sampling campaign was launched for high profile
bloggers who would publish their reviews online after dining for free.
Botak Jones uses sales promotion to attract customers attention. For example,
Botak Jones offered an opening promotion of up to 50% off their meal at its Botak
Joness Backyard at Dempsey.
*Lesson: Customer satisfaction can be increased through reaching out to a wider
audience and implementing effective product price promotion offerings.
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Lesson 3: Customer Relationship Management
Botak Jones uses a customer appreciation card scheme to reward customer loyalty
with complementary food items. In addition, e-mails are sent regularly to customers
to inform them about various promotions and also to gather feedback.
*Lesson* In order to effectively attract and retain customers, companies should
implement loyalty programs and feedback channels to maximize brand and customer
equity.
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Recommendations
Despite being the first to penetrate the market, Botak Jones is facing increasing
competition due to the lack of market barriers of entry. In addition, though the
business might still be in the growth stage, it is slowly experiencing demand
stagnation. Hence, our group has come up with a few recommendations to help
Botak Jones ensure the continuance and growth of its business.
Reducing Clutters
First impression matters. Therefore, we
recommend Botak Jones to reduce the
clutter of signboards and notices at
their individual stalls. This is because,
customers may be overwhelmed by the
myriad of information available and not
read any of it, as a result skipping
positive information about Botak Jones.
The GREEN Botak
Local consumers are getting increasingly concerned about the efforts undertaken by
companies to uphold and maintain good corporate social responsibility. Hence, we
feel that Botak Jones should undertake more environmentally friendly efforts in its
daily operations.
Firstly, we propose to use recyclable paper wraps and bags for takeaway instead ofthe current styrofoam food boxes. In addition, Botak Jones can also offer a 5%
discount to customers who bring their own containers to packet their takeaway
orders. This new marketing initiative can be referred as B.Y.O.C (Bring Your Own
Containers). Next, Botak Jones can also incorporate the use of more energy efficient
kitchen appliances and cleaner technologies, i.e environmentally-friendly
refrigerators, energy-saving lightings and the composting of food waste.
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Such marketing efforts would not only help Botak Jones gain a better reputation
through its efforts to go green, they also help to generate positive publicity. These
initiatives help to attract free media coverage through development under public
relations and are cost-efficient in the long run.
MASSIVE WHOOPASS Challenge
Botak Jones has been organizing the MASSIVE Burger
Eating Contest over the past two years to encourage buzz
marketing and generate public interest. Our group proposes
for Botak Jones to implement a food challenge throughout its
outlets on a daily basis. Under this new initiative, known as the
MASSIVE WHOOPASS challenge, customers will be
required to finish their food within a designated time. This can
effectively help generate brand awareness and increase public interest. An example
of a similar successful marketing campaign is the New York New York Giant
Yankee Burger Challenge.
Details of the MASSIVE WHOOPASS challenge are as follows:
a) The MASSIVE WHOOPASS Set consists of 1 THE MASSIVE burger, 1
WHOOPASS cheese fries and 1 WHOOPASS soup.
b) Botak Jones will set a designated time for the participants to complete the set.
c) Participants who manage to complete the challenge receive a 50% discount off
the meal and an exclusive Challenge Finisher T-shirt.
d) The top ten fastest finishers of the set will also have their names displayed on the
Hall of Fame board at the outlet.
Since Botak Jones have always been known for their Massive food portions, it is
especially apt to come up with this initiative which includes their trademark Massive
and Whoopass dishes. In addition, the Finisher T-shirt and Hall of Fame provide
customers who complete the challenge with an added sense of satisfaction and
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accomplishment, hence possibly generating buzz marketing via word of mouth and
higher brand awareness.
*Limitation* Some might criticize and say that the challenge leads to potential food
wastage and view it as an encouragement to binge eating. However, the challenge
food portions are reasonable and it focuses more on the speed than the quantity
consumed.
Market for a Cause Hair For Hope
We propose for Botak Jones to collaborate with the Childrens Cancer Foundations
project, Hair For Hope (HFH), presenting itself as a socially responsible company
that undertakes efforts to care for the society.
Specific Promotions in Collaboration with HFH:
a) Present HFH participants with a 1-for-1 meal voucher at Botak Jones.
b) Donate 2% of the companys profits to the HFH Fund.
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The HFH cause is chosen because of the noticeable link between the shaving of
heads and Botak Jones. In addition, there is increasing awareness of the non-
profitable organization as it attracted a record-high 860 participants who shaved their
heads within a single event back in July. Hence it will serve to improve the credibility
of this particular societal marketing initiative as well.
*Limitation* However, one must take note that HFH essentially displays the pains of
losing hair during chemotherapy for the treatment of cancer. By linking the cause to
burgers and fries, some may find this initiative inappropriate and offensive.
Therefore, Botak Jones has to clearly present its business model as one that is
socially responsible and one that understands the importance of helping the needy
on top of making profits. To further achieve this, Botak Jones can play a more active
role in supporting the cause. For example, customers can opt to top up $2 on their
meal for a cup of yoghurt. All proceeds from the yoghurt sales will go to the HFH
fund. This strategy is feasible and easy to implement; selling yogurt also encourages
healthier eating and is hence more appropriate when viewed as a relation to the non-
profit cause.
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List Of References
1. HAIR FOR HOPE 2010 MEDIA RELEASE
(www.ccf.org.sg/aboutus/press_articles/HfH2010MediaRelease.doc)
2 http://whatswhat.com.au/fashion/news-and-celebrity/alicias-
blog/2009/07/09_cotton_on_foundation.html
3. Botak Jones Website (www.botakjones.com)
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