Final Paper - Yellow Cab Pizza
Final Paper - Yellow Cab Pizza
Final Paper - Yellow Cab Pizza
FOR
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Yellow Cab Pizza Co. is a pizza restaurant chain based in the Philippines. Founded
in 2001 by Eric Puno, Henry Lee and Albert Tan, Yellow Cab Pizza is owned by Max's
Group, who is also the owner of restaurant chain Max's of Manila. The chain currently
operates 170+ branches in the Philippines and overseas, including branches in Qatar,
United Arab Emirates, China, Vietnam and Oman.
Yellow Cab Pizza Co. opened its first branch in Makati Avenue back in April 2001 with
a simple mission: to share a slice of New York to the Filipino people. Yellow Cab serves
New York-style pizza with premium ingredients and generous toppings. But wait, what is
New York-style pizza anyway? Unlike the pizza you’re used to, New York-style pizza is
crisp and slightly charred in the bottom, dense and chewy in the middle, and slightly gooey
on top. And that’s just the crust. Top it off with a generous serving of the freshest, highest-
quality ingredients, and you get—simply put—great New York-style pizza.
But the New York experience doesn’t just stop with the pizza. Step into one of Yellow
Cab’s 170 branches nationwide and be greeted with an energy and passion that matches
one of the world’s favorite cities. With an open kitchen, exposed pipes, graffiti and
concrete walls, you get a taste of the lifestyle of a true New Yorker. Want a bite of New
York in your home or office? Yellow Cab delivers the good stuff wherever you are in its
iconic yellow Vespa scooters. With ingredients that fit perfectly together, Yellow Cab
Pizza Co. serves products that people from all generations keep coming back to. No
matter what the occasion is, pizza, pasta and other stuff will always be a good idea. 1
1
https://www.yellowcabpizza.com/about/
Product Scope of Yellow Cab
Signature Pizza and Pastas
Chicken Wings
Selected Product to be introduced in the Global Market:
Yellow Cab’s Chicken Barbeque Pizza
Culture
Theravada Buddhism is the main religion in Thailand and remains a strong element in
Thai culture. 94% of the population are believers in Theravada Buddhism, 4.5% are
following Islam and less than 1% are Christian. Thai is the official language which is taught
at school and spoken throughout the country.
Buddhist are generally were vegetarians during Gautama Buddha’s time.
Traditionally, Thai’s do not eat beef because they view these creatures as they are helping
them farm the land just like westerners don’t eat dogs and cats because they view them
as pets.
Geographical
Bangkok is the capital of Thailand and it is also the most populous city in the
country having an estimated total population of 10,350,204.
Demographics
As of April 2019, Thailand have an estimated total population of 69,278,446.
Psychographic Analysis
Thai people are loyal, easy-going, obedient and sociable.
Family is central to Thai life, that’s why they love eating out with families, friends
and colleagues
They love to try new things such as food
Online purchase is now growing as middle income earners rises
Behavioral Analysis
Thai’s food preference is spicy and does not eat beef
Thai likes to spend on experience such as dining out and leisure travel
Thai consumer is a big fast-food market; fried chicken, hamburgers and pizza are
the top choice of fast-food
Thai’s are very brand loyal but prefers they also like trying new things that has
value for money
Likes to celebrate specials occasions
Income
41% of the Thailand’s population belongs to the lower class, followed by middle
class with 45% share combined.
Analysis of Competitors
Main Competitors
The Pizza Company
Number 1 pizza restaurant in Thailand and number 3 in fast food category against
KFC and McDonald’s
Has 75% market share in pizza restaurant and 14% market share in a fast food
category
Has 250 branches across Thailand and 40 stores in other parts of Asian region
Established in 2001 and been in the market for 18 years
Pizza Hut
94.5% consumer brand awareness in Thailand population
Number 4 in fast food category after KFC, McDonald’s and The Pizza Company
Has 18% market share in pizza restaurant and 6% in fast food category
Has 97 outlets in various formats
Domino’s Pizza
38% consumer brand awareness in the total population
5% market share in pizza restaurant category
Has 20 stores across Thailand
Current Business Operations of Firm in Nearby Markets
Yellow Cab Pizza Co. – Vietnam
There are 4 branches located in different business districts in Vietnam which is
also closed to the nearby residential area
Yellow Cab Vietnam is under the development agreement with Blue Star Food
Corp. – a food and beverage company
The product offerings is still same with the Philippines with a customization
because they offer individual rice meals due to Vietnamese prefers single orders
Still uses the same marketing strategies such as promos
Global Market – Indonesia
Culture
Religion in Indonesia is composed of Islam 87.2%, Protestant Christianity 7%, and
Catholic Christianity 2.9%, other 2.9%.
Bahasa Indonesia is the official language
Indonesia is hugely a diverse nation, they are a mix of Chinese, European, Indian
and Malay.
Majority of Indonesian population are Muslims which means they do not eat pork,
however the non-Muslim part are commonly consume boar and pork.
Indonesians use hands to eat food; spoon and fork is also used but very rare with
knife because they believe that it is a weapon as well.
Geographical
Jakarta, or the Special Capital Region of Jakarta is the capital of Indonesia and
the largest city in the country. As of April 2019, the total estimated population of Jakarta
is 10,638,689.
Demographics
As of April 2019, Indonesia has an estimated total population of 268,994,106. 42%
of the total population is aged between 25 to 54 years old.
Psychographic
Indonesians are used to eating while doing other activities such as walking
Indonesian people are known to socialize. They don’t like to eat alone, and prefer
to wait and invite friends to make the dining atmosphere more fun
Indonesian like to eat with unbelievable large portions
Western food is their top choice for home and office delivery
You have not eaten if you did not eat rice as it is their staple food.
Behavioral
Indonesians likes to eat fast food simply when they need food, dining out on
weekends and celebrating special occasions
Indonesian’s prefer to eat spicy foods with different spices.
Condiments is a must on every meal such as sambal, sauces, chili paste and
cannot eat without hot sauce. Onions and pickles is also their favorites.
Hygienic, delicious and high quality food are the top factors in choosing fast food
Income
38% of Indonesians belongs to the lower middle class of the total population.
The minimum salary on Indonesia is 3.92 million IDR (14,500 PHP) per month
Analysis of Competitors
Pizza Hut
98% brand awareness in Indonesian market
Has 95% market share
Domino’s Pizza
91.8% brand awareness in Indonesia market
2% market share
Culture
Islam is the official religion in Kuwait, and the majority of the population are Muslim.
77% of the population is following Islam, 17% are Christians and 6% follows other
and unspecified religion.
Majority of the Kuwait’s population is consist of 68.70% of immigrants.
Kuwaiti’s are mostly Muslims and they do not eat pork
Alcohol consumption is forbidden in Kuwait.
Kuwaiti’s is a big fast-food consumer and because of this 74% percent of the
population is overweight according to World Health Organization.
Demographics
As of April 2019, Kuwait’s population is now estimated at 4,235,464 where 68.70%
is immigrants.
Psychographic
Food is always at the top of the menu at family gatherings
Kuwaiti’s are very sociable, friends meet at restaurants 2 to 3 times a week
Every family occasion is like Thanksgiving, and the more food you present gives
you a bit more status
Home and office delivery is very widespread as Kuwaiti’s like convenience
Behavioral
Hamburgers, pizza and fried chicken are widely consumed by the younger
generation in Kuwait, with reported 92% consumption from the population.
Western fast food such as McDonalds’, KFC and Burger King is very popular
Kuwaiti’s love different spices and breads (pita, fatayer, flatbreads, pizza crust, etc)
Kuwaiti’s is a big fast-food market where 31.40% of the population eat 4 to 6 times
a week
Income Class
24% of the population earns 663 to 1,300 KWD per month.
68.70% of Kuwait’s population are immigrants which belongs to middle class that
earns below 1,300 KWD a month
99,000 families in Kuwait are millionaires
Demographic Segment
Age: 10 to 50 years old. Consumers aged 50 years old and above are excluded
because of health issues of the product.
Gender: Both male and female
Occupation: Students, young professionals, office workers, businessmen
Psychographic Segment
Families, group of friends and colleagues who likes to eat out for gatherings,
special occasion or just simply to have dinner
Customers who are busy and prefers buying online and delivery
Behavioral Segment
Will target consumers who likes to eat fasts food on a regular basis or occasionally
Consumers who spends on fast food for special occasions
Consumers who likes Western food
Income Segment
Will target all income segment and social classes as the products are affordable
Competition Analysis
Middle East already have existing Yellow Cab Pizza especially in Qatar, Saudi
Arabia and UAE. Qatar Yellow Cab Pizza have great sales in industry.
Market Potential
Market Potential – Thailand
In order to determine the market potential, the researchers first identified the
potential customers. The researchers uses the data from the demographic segment such
as age groups, by social class, behavioral segment such as consumption habits and
spending habits of consumers and breaking down the data by multiplying each one by
the population to get the potential market.
P: Assumption were made by using the average selling price from its home market,
the Philippines and convert it to Thai currency
P: Assumption were made by using the average selling price from its home market,
the Philippines and convert it to Thai currency
P: Assumption were made by using the average selling price from its home market,
the Philippines and convert it to Thai currency
Pricing
In Thailand
Product price is not that far from Yellow Cab Philippines as consumer goods in
Thailand is lower than the home market
The target market for income segment are the people earning from 10,000 THB
and above
A typical Thai consumers spend 300-600 THB or 500 to 970 PHP, which is also
the range of price of products in Yellow Cab Philippines
In Indonesia
The target market for income segment are the people earning from 14,000,000
THB and above
A typical Indonesian consumers spend 110,000 IDR or 400+ PHP, which is also
the range of price of products in Yellow Cab Philippines
In Kuwait
Product price is not that far from Yellow Cab Philippines as consumer goods in
Kuwait is lower than the home market
The target market for income segment are those consumer who earn for low
income to high income
Promotion
Yellow Cab Thailand will have a 2 Pizza Friday Promos as it a successful
promotion strategy in the home market
As well as buy-one-get-one pizza on special occasions such as Mother’s Day,
Graduation and special holiday
Marketing campaign should be localized into Thai for easier communication
Website should also be translated into the language of different global markets
Recommended Global Market: Thailand
Based on the research conducted, Thailand have the biggest market potential
compared to Indonesia and Kuwait. The population with high number who likes to eat fast
food is a big factor as Thailand’s one of the go-to fast food product is pizza. Compared to
Indonesia, 55% of Thailand’s population spent 301 THB and above for fast food which
raised the market potential for the country.
Indonesia have more middle income earners but only 28% of the population spent
120,000 IDR on fast food which could also mean that they are not a big fast food
consumer as they mostly prefer local food. Kuwait could also be a good market to enter
because they are a rich country and also a big fast food consumer but we feel like the
Thailand market is very easy to reach as they have a bigger population.
Thai people are adaptable to change and taste in particular since The Pizza Company
have already saturated the market. Yellow Cab Pizza’s products matches market’s taste
buds especially the BBQ Chicken Pizza as it embodies what the Thai is looking for. Thai
consumers love the combination of sweet, salty, sour and spicy taste in their food. BBQ
Chicken Pizza should be the flagship product as it is sweet, salty, and sour and having
its spicy condiments such as hot sauce and chili flakes will surely capture the Thai market.
Thailand’s middle income class is expected to continually grow and 55% of the
population were identified as economically secure. This affluent demographic is leading
the change of the F&B industry and a lot of western and casual dining restaurants are
flourishing in Thailand.
Entry Strategy
Yellow Cab Pizza has been partnering with different entities when entering a new
global market like Blue Star Food Corp in Vietnam and Pagh Pte Ltd. In Singapore.
Partnering is also a widespread marketing entry strategies in Asia. Partnering is a useful
strategy in markets where culture, both business and social, is substantively different than
your own as local partners bring local market knowledge, contacts and customers.
Distribution Channel
Promotional Strategies
In order for Yellow Cab Thailand to enter and penetrate the market, different
marketing strategies will be used in order to increase sales, encourage potential
customers and introduce or create awareness about the product offerings and the
company name as well. Customized communications strategy should be implemented to
avoid miscommunication. All promotional and communications strategies to be
implemented should be localized or written in Thai characters as only little population can
speak English.
Advertising
Advertising is non personal communication transmitted through mass media as
radio, television, print, internet and outdoor media.
Internet Advertising
With the vast pace of technology, reaching your target customers should be easy
online as almost everyone have access to the internet. Social media platforms such as
Facebook, Instagram as well as advertising platforms like AdWords, Search Engine
Optimization, Website banners and many more will be used in online advertising.
Print Ads & Outdoor Media
Traditional advertising strategies such as newspapers, magazine, posters, flyers,
billboards will also use.
Sales Promotion
Yellow Cab Pizza in the Philippines is known for its promotional strategy where
they always have a 2-Pizza Friday promos where you can buy-one-get-one pizza for free.
This strategy should also be implemented in Thailand. 2-Pizza Friday, bundle promos,
unli-pizza and special occasion promos.
References:
W&S Research 2015, “Comparative report on Fast Food study in Thailand, Indonesia and
Vietnam in 2015”
https://yimresearch.com/upload/userfiles/files/Compare%20survey/Comparative%20rep
ort%20on%20Fast%20Food%20Study%20in%20Thailand%2C%20Indonesia%20and%
20Vietnam%20in%202015.pdf
https://theculturetrip.com/asia/thailand/articles/11-things-you-should-know-about-thai-
culture/
https://www.reachtoteachrecruiting.com/guides/thailand/culture-in-thailand/
https://theconversation.com/two-decades-of-economic-growth-benefited-only-the-
richest-20-how-severe-is-inequality-in-indonesia-101138
https://factsofindonesia.com/eating-habits-in-indonesia
https://nusaresearch.com/upload/userfiles/files/Report%20of%20Fast%20Food%20(18t
h%20Feb%202014).pdf