Report marketing-Analysis of Hesburger company 2 PDF

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Marketing Report Segmentation, targeting and positioning

Abstract This assignment has the aim to analyse important marketing elements of Hesburger, like segmentation, targeting and positioning. Segmentation: Market segmentation is the process of dividing market into sections that respond to marketing actions in the same or similar way; Targeting: A target market is a set of buyers who share common needs or characteristics that the company decides to serve; Positioning: Product position is the way the product is defined by consumers on important attributes. Value proposition is the full mix of benefits upon which a brand is positioned. Introduction The Hesburger is a fast-food company that is founded in Finland by Heikki Salmela in 1966. Started with a kiosk in a little town that it is called Naantaii and after that, in the 1980’s, fast food gained an even stronger presence in Finland with honest-to- goodness fast food restaurants. Over the years, Hesburger has expanded throughout Finland and it become like trend.

Identify the key segments in the market. Use various segmentation characteristics, defining segments in soc/demo/ psychographics and behavioral characteristics. To try to describe the customers of our company, that in our case is Hesburger, there are a lot of important elements that have impacts on them. About this we should start with the segmentation of the market that it is composed to: 1. Demographic segmentation, where we can find also other segments like etnic, population growth and age; 2. Geographic segmentation; 3. Behavioral segmentation; 4. Psychographic segmentation;

Demographic segmentation About the first point the demographic, in general, is the study of human population in terms of size, density, location, age, gender, race, occupation and other statistics. About market the demographic segmentation is divides the market into segments based on variables such as age, life-cycle stage, gender, income, occupation, education, religion, ethnicity, and generation.

Lithuania is located in Northern Europe along the Baltic Sea east of Denmark and Sweden. In 2020, Lithuania has an estimated population of 2.72 million, which ranks 142nd in the world. 1. Ethnicity Lithuanians are neither Slavic nor Germanic, although the union with Poland, German and Russian colonization and settlement left cultural and religious influences. The three largest cities in Lithuania are Vilnius (542,366) - which is also the capital of Lithuania, Kaunas (306,800) and Klaipeda (158,500). Poles made up 6.6%, followed by Russians (5.8%), Belarusians (1.2%) and Ukrainians (0.5%). 2. Religion The predominant religion in Lithuania is Christianity, with the largest confession being that of the Catholic Church (about 77% of the population). 3. Population Growth: Currently, the population growth annual rate is at -.48% in 2018, which is a slight improvement from 2017 . 4.Age:

The age structure in Lithuania is around 26% under the age of 25, 54% between the ages of 25 and 64, and nearly 20% are over the age of 65. The current median age as of 2018 is calculated at 43.7 years of age. 5. Income Lithuania's Annual Household Income per Capita reached 6,903.833 USD in Dec 2018, compared with the previous value of 5,967.758 USD in Dec 2017. 6. Occupation Since the year 2001, the unemployment rate has decreased from almost 20% to less than 4% in 2007 thanks to two main reasons. Firstly, during the time of rapid economic expansion, numerous work places were established. This caused a decrease in the unemployment rate and a rise in staff expenses. Secondly, emigration has also reduced unemployment problems since accession to the EU. 7. Generation The number of the population aged 15 years and over is 1.45 million, activity rate was 60 percent in 2017. The most number of population is young.

8. Gender Women made up 54 percent of the total population, there being 1171 women per 1000 men.

Geographic segmentation About the second point, the geographic segmentation is divides the market into different geographical units such as nations, regions, states, counties, cities, or even neighborhoods. About the lithuanian country we can say that is developed on an area of 65,200 km2. The national boundaries are Belarus 502 km, Latvia 453 km, Poland 104 km, Russia 227 km, and Traditionally, Lithuania is divided in five ethnographic regions: Dzūkija, Samogitia, Aukštaitija, Sudovia and the Lithuania Minor. The territory of Lithuania is divided into 10 counties. The counties are divided into 60 municipalities: 9 city municipalities, 43 district municipalities and 8 municipalities. Each municipality is then divided into elderates. This division was created in 1994 and slightly modified in 2000. In Lithuania, there are 103 cities; most of the cities are small. There are only 19 cities with a population of more than 20,000. Cities are quite evenly spread out through the territory of Lithuania.

Psychographic segmentation About the third point, the psychographic segmentation divides a market into different segments based on social class, lifestyle, or personality characteristics. 1. Social classes In the Lithuanian society, class divisions are low-key. Members of very different affluence levels more usually than not live in the same neighborhoods, buy at the same shopping malls and send their children to the same public (rather than private) schools. 2. Lifestyle Lithuanians spend much of their free time eating, watching TV, reading and enjoying music. They like to do sports outside because they love nature. Despite the rapid advances of foreign cuisines in restaurants, Lithuanians still prefer their own Lithuanian cuisine at home. 3. Personality characteristics Personality characteristics differ from one person to another, and it is difficult to specify and classify. However, if segmentation based on personality characteristics truly, it work efficiently as a factor of segmentation.

Behavioral segmentation About the last point, the behavioral segmentation divides a market into segments based on consumer knowledge, attitudes, uses of a product, or responses to a product.

Present the general purchasing process. Explain the stages of the process. Propose possible company marketing decisions for every part of the process. Buyer decision process (or customer buying process) helps markets to identify how consumers complete the journey from knowing about a product to making the purchase decision. Understanding the customer’s buying process is essential for marketing and sales. The buyer decision process will enable to set a marketing plan that convinces them to purchase the product or service for fulfilling the buyer’s or consumer’s problem. When making a purchase, the buyer goes through a decision process consisting of 5 stages. 1. Needs Awareness: The consumer recognizes a problem or need that could be satisfied by a product or service in the market. This could be a simple as “I’m hungry, I need food. 2. Information Search: The second stage of the purchasing process is searching for information. They search for information about the goods they want. 3. Evaluating Alternatives: With the information in hand, the consumer proceeds to alternative evaluation, during which the information is used to evaluate” brands in the choice set. 4. Purchase Decision: After consumers take the decision to purchase products and services. They decide to buy the best brand. But their decision is influenced by others’ attitudes and situational factors. 5. Post Purchase: The consumer takes action based on satisfaction or dissatisfaction. In this stage, the consumer determines if they are satisfied or dissatisfied with the purchasing outcome.

About Hesburger and about the 5 stages of the process purchasing we can imagine a process like this: 1. A young lithuanian costumer has hungry. He/She needs food; 2. He/She decide to go online/use an app (like “Bolt food” or Wolt”) to find a place where he/she can eat something fast and cheap, but at the same time good; 3. The costumer could choose Hesburger than other fast restaurant, like McDonald’s, KFC and so on, because some reasons, like: • • • •

- In Vilnius there are more Hesburger than other fast food; - In Lithuania there are a lot of advertising about Hesburger; - You can receive your food also at home (Take away); - Quality of ingredients are better.

4. The Lithuanian costumer decide to eat to Hesburger. 5. Satisfaction or dissatisfaction.

Marketing strategy of Hesburger during buying process As regards the marketing strategy adopted by Hesburger, it must be said that it presents several strategies. It can be said that Hesburger adopts a price strategy by aiming to choose the lowest one, in fact prices are set in such a way that they are perceived as more accessible than competitors (for example McDonald’s) by launching promotional campaigns of classic combinations with discounts for certain periods of time. Another strategy adopted by it is the green marketing strategy.

As we have seen, Hesburger is very attentive to the environment and in fact promotes many eco-sustainable alternatives, modifying its environmental choices. This strategy, in addition to helping the environment, also changes the perception of consumers about this brand, helping them to prefer it compared to their competitors because a large portion of consumers, today, is increasingly sensitive to environmental issues. The green phenomenon is increasingly widespread and covers a large part of the population. Hesburger adopts this strategy because it aims to promote its products in a sustainable way; this is a fundamental strategic lever to differentiate yourself from the competition and obtain new forms of competitive advantage. Indeed, promoting eco-sustainable alternatives enables to target more prospective customers as well.

Identify major trends in the market. Describe as much as it possible company customers. Try to understand and present major differences amid company customers. A market trend is a perceived tendency of financial markets to move in a particular direction over time. During this period the major trends in the market are: 1. Try to be eco-friendly; 2. Economy food; 3. Technology; A. Hesburger try to respect this trends, in fact it is eco-friendly, in the uniforms, packaging of products and buildings, in fact Hesburger uses also solar panels to produce its energy; B. Its food it is cheap, according to the necessities of its target, like young people and students economy; C. It uses the technology like applications where you can buy its food or in its restaurant you can order your food also using specific machines. Thanks to all of these information we can say that the customers of Hesburger are prevalent very young people, students, and family.

Identify target markets differentiation, positioning and company value proposition Positioning refers to the place that a brand occupies in the minds of the customers and how it is distinguished from the products of the competitors. If we try to compare Hesburger with other fast-food about positioning we could obtain a representation like this:

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Luxury

Economy

Quality

According to this analysis we can say that Hesburger, in Vilnius, is comfortable to get and you can find restaurant easily. There are more than 500 restaurants in 9 countries in the world, in Lithuania 56 restaurants. One of the main things is price, it is cheap, especially, for students and children Hesburger is accessible. Besides, Hesburger is tasty and proven product. For costumers is important also the staff that in Hesburger is kind and available. We can say all of this because we found this information in particular on Trip Advisor, where it is possible to read information and feedback about restaurants and food. The most number of this feedback are positive and they are written from young student people....