Download to read offline
PX Competitive Landscape
- 1.
- 2. “Seek first tounderstand, then to be understood.” –Stephen R. Covey End in Mind
- 3. Category Evolution: TheCustomization Spectrum Food as Fuel: low customization Food as Experience: high customization
- 4.
- 5. IMMEDIATE COMPETITIVE SET EQUITYWHAT ARE THEY COMMUNICATING? COMPETITIVE EVALUATION (pricing, communication, product, distribution, etc.) Consumer Proposition Messaging / Content (Functional or Emotional) Strengths Weaknesses Pure Enjoyment • The original chicken sandwich • Great-tasting, fast, comfort food • Positive customer experience • Strong value offering • Perception of healthiness A Cut Above The Rest • Quality you can taste • Association with unique “California culture” • Distinguishing factor from competitors • West Coast exclusivity Feeding Mind, Body, and Soul • Fresh ingredients, great taste • Flavor globalization: (American) Greek • Healthy options for a variety of diets • Trusted and safe adventure • “Authentic” experience Delighting Your Senses • Ethnically inspired variety for all • Approachable for all guests • Lack of focus and relevance for “authenticity” seekers A Quick Pick-Me- Up • Satisfy your craving on the go • Connect briefly with friends and family • Snacking/Smeals culture • Proliferation makes distinguishing from competitors difficult Food With Integrity • Advocating a more natural and sustainable food supply for society • Interactive restaurant experience • Turning brand into cultural advocate • Increasing prices Food As It Should Be • Food that tastes good, and makes you and the world better • Consistent “first-mover” in the industry • The “crave” factor • Lower customization • Increasing prices What Are Our Opportunities: Competitive Assessment & Opportunity
- 6. What Are OurOpportunities: Competitive Assessment & Opportunity BROADER COMPETITIVE SET EQUITY WHAT ARE THEY COMMUNICATING? COMPETITIVE EVALUATION (pricing, communication, product, distribution, etc.) Consumer Proposition Messaging / Content (Functional or Emotional) Strengths Weaknesses Food As An Experience • A fulfilling adventure that satisfies the curious consumer • Scarcity creates badge-worthy experience • Limited distribution • Not for every palate Made By You and For You • Personal control and creativity • Consumer inclusion in the process • Proliferation diminishes uniqueness of experience Going Beyond Good • Food you feel good eating and supporting • Scope and variety – providing food for every perception of “healthy” • Positive brand image • “Whole paycheck” Slow Food Done Fast Relax and Connect • Making high quality, fine dining accessible and affordable • Food as a creative art • Capitalizing on farm to fork trend • Fine dining merges with fast casual concept • Snacking culture • Customization • Menu consistency • Proliferation • Not for every palate Dare To Be Different • Classic fast food with a twist • Feeds a craving for something different • Perception of healthiness The Ultimate Hangout Spot • All your favorite things in one place (wings, beer, sports) • Experiential dining – food and entertainment • Niche consumer base – male skew Authentic Asian food
- 7. Competitor Profile 3.2 millionsales per unit
- 8. Competitor Profile 2.4 millionsales per unit
- 9. Competitor Profile 1.1 millionsales per unit
- 10. Competitor Profile 1.8 millionsales per unit How to make a Habit burger
- 11. Our Consumer Segments GetAheads Up for Anything Authentic Family in Mind Friendly Favorites Fresh Take About them: •Millennial (age 18-34) About them: •Ethnic Millennial (age 18-34) About them: •Post-Millennial/Pre- Boomer (age 35-48) •Families with kids at home About them: •Boomer (age 49-67) •Caucasian Empty Nesters About them: •Millennial/pre-Boomer (age 18-48) •Fast Casual Users Psychographics: •Value experiences that are unique •Independent, adventurous •Desire a good time Psychographics: •Value experiences that are authentic and real •Curious and eager to explore and better the world Psychographics: •Values variety and consistency •Family-oriented decision maker •Balances health and indulgence Psychographics: •Values control over their lives, experiences, outcomes •Tendency to stick with favorites Psychographics: •Values health, convenience, diversity When it comes to food: •Help me do it, don’t do it for me When it comes to food: •Take me on an authentic adventure When it comes to food: •Give me options that work for everyone (picky kids included) •Influenced by their Millennial/GenWe kids When it comes to food: •Help me get the outcome I want every time •Influenced by their Millennial/GenWe kids When it comes to food: •Give me “fast food” without compromising health, quality, or taste
- 12. Get Aheads •Millennial Matt(age 25) •Independent, adventurous •Values experiences that are unique and shareable •Food as a means of creative self-expression Opportunities for Panda: PXIK Rollout
- 13. Up for AnythingAuthentic •Millennial Maria (age 22) •Bicultural, curious, aspiring to travel the world •Values authentic experiences and ingredients •Food as a means of exploring Opportunities for Panda: Chef specials that are authentically Chinese
- 14. Family in Mind •Harrymet Sally (age 38) and now they have two kids (ages 7 and 5) •Health is not their top consideration – avoiding meltdowns is! •Values variety and consistency •Food as a means of providing options that satisfy everyone Opportunities for Panda: Diagram and flow chart for picky eaters
- 15. Friendly Favorites •Noah andAllie (age 50) with three kids out of the house •Influenced by their Millennial kids •Values consistency and control over their lives, experiences, and outcomes •Food as a means of establishing routine and connecting Opportunities for Panda: Nutritional info and suggested modifications
- 16. Fresh Take •Millennial Maddy(age 32) •Busy young professional •Values health, convenience, variety •Food as a means of providing sustenance on the go – without compromising health, quality, or taste Implications for Panda: Nutritional info and suggested modifications
- 17. Category Evolution: TheCustomization Spectrum Food as Fuel: low customization Food as Experience: high customization
- 18. Competitive Landscape: OurOpportunities
Editor's Notes
- #3 After I finished this presentation, I took a step back and asked myself the question: What do I really want people to take away from this presentation? How is this adding value beyond compiling a bunch of consumer insights research that has been done (by STROP and beyond)? And it boiled down to this: that we need to really understand our consumer segments – and understand how our competitors are understanding them – in order to help them be at their best and be who they want to be. I believe this is an ongoing conversation. I do not have the final word, nor can I assert that everything I am about to present is true and fact. I am simply presenting my hypotheses – from what I’ve gathered from the data and my own life observations as a Millennial/GenWe (also known as Gen Z or “Up and Comers”). My hope is that this presentation will bring to life our consumer segments in such a way that if it was their birthday, we would know what kind of day we would plan for them.
- #4 According to all that I’ve learned here + additional research and consumer insights that have been shared with me, I see food being increasingly sought out as an experience, an opportunity for self-expression, and a creative outlet. This is achieved through customization. Low customization = customization discouraged, efficient customer turnaround, decreases customer indecisiveness, people come in knowing what they expect and want Pros: the crave factor Cons: very much so a take-share environment Medium customization** = customization is not encouraged/offered only as a means of customer service, rigid menu Pros: good value for freshness/quality Cons: diminishing relevance and competitiveness with newer concepts – in price, quality of food, authenticity, etc. High customization = customization encouraged, build your own setup, made to order Pros: discovery of new niche markets (think juice bars and Tender Greens), strong appeal to Millennials…and thus also the Family in Minds and Friendly Favorites Cons: too many choices can be overwhelming, rather than exciting **Important thing to note: our competitors in the middle (Panera, the Habit) have been increasingly moving to the right (as you will see in the next few slides) to cater to those who want greater customization because of health reasons and experi Therefore, it is important for us as marketers to know the consumer, because then, in understanding them, we are truly able to help them express themselves. This is why we need to understand our consumer segments – so that we can cater to that level of self-expression. I do not want to assert that everything I am about to present today is fact and I am not Low customization = customization discouraged, efficient customer turnaround, decreases customer indecisiveness, people come in knowing what they want (Friendly Favorites, Family in Mind) Pros: the crave factor, appeals to Friendly Favorites and Family in Mind Cons: take-share environment Medium customization = customization is an afterthought/not encouraged, rigid menu, target consumers with freshness/quality Pros: good value for freshness/quality, appeals to Friendly Favorites Cons: diminishing relevance and competitiveness with newer concepts (price, quality of food, authenticity, etc.) High customization = customization encouraged, build your own setup, made to order Pros: discovery of new niche markets (think juice bars and Tender Greens), strong appeal to Millennials…and thus all the other consumer segments too Cons: Choose the right competitors to benchmark against (immediate competitors) + Understand influential macro-forces (trends that impact consumers’ desires) + Selecting right consumer segment to target = Growth Opportunity Evolve the Panda brand the better mirror consumers looking for food as experience Next step: For us to really win, the most attractive consumer segment we should target is Millennial Matt. Next next step: How we go about doing that. What would make Panda part of your consideration set? Customization with consistency Ethnically inspired Crave factor Snack or meal option – alone or connecting with others. There’s always time for family. We bring to life the values that people want to see in families today – kindness, generosity, happiness. Freshness and quality of food
- #5 Inner Circle = Immediate Competitors: Fast-casual chains that are comparable to us in customization (In-N-Out, Subway), authenticity of experience (Daphne’s/PF Chang’s), quality of ingredients (Panera, Chipotle), products offered (milk tea shops) *PF Chang’s and Daphne’s have a significantly less units than we do. We occupy a unique niche in the fast casual market with our national scope and American Chinese food. Outer Circle = Broader Competitors: It’s not enough to simply look at our immediate competitors because the food industry is a take-share environment – we can only eat so much food a day! Thus, it’s helpful to also watch how our broader competitors are responding to macro food trends and how they are appealing to or turning away consumers. Fast-casual, casual, pop-up, and fine dining restaurants that exceed us in customization (Blaze), authenticity of experience (traditional Japanese/Korean restaurants), perception of health (Whole Foods, Tender Greens), and price (Taco Bell, other fast food)
- #7 Pizza Hut Applebee’s
- #8 Interactive picture montage showing how they make their food step by step: http://www.chick-fil-a.com/Food/Handcrafted Hand-crafted biscuits: https://youtu.be/17nqC35L0fI Veggie food prep: https://youtu.be/RXWhF5BPj8Y What stood out to me is that we have the same hand-crafted process and we tell a similarly emotional story – fresh prepped veggies, the first (orange) chicken, food that is “cravable” and connects you back to family – but Chick-fil-A is simply making it more known.
- #9 Food as it should be commercial: https://www.youtube.com/watch?v=siNpOGBv7Ak “When you’re eating food as it should be, when there’s no more guilt or worry or doubt about this meal, all that’s left is the joy of good food and good company.” Taste, Feel, and Do Good…with Good Company = an experience Target: Millennials (athlete, students in high school), Family in Mind (my kids may like this….and it’s something I want to eat that is good for me too) So what? They tackle the macro food trend of “health food going mainstream” Their website also shows extensive options for anyone who is gluten conscious, calorie conscious, cutting back on fat, vegan, vegetarian, adding more protein to their diet, etc. It’s genius in the fact that they don’t try to define “healthy” for everyone (and in the process, exclude those who have different definitions of “healthy”). Instead, Panera opens its arms to every definition of healthy, saying “There is something for you here.”
- #10 Like Panera, Noodles & Company have also taken this opportunity to embrace customization and transparency. Who is this targeting? My bet is: not their loyal customer, but the customer that is on the fence – the pre-customer. By doing this, they are allowing their customers to make educated food decisions based on their definition of health. They also suggest modifications (request no croutons if you are watching gluten) – making it easy for someone to order and eat here.
- #11 Tying a simple burger to an experience – Santa Barbara, California, 1969. Perception of freshness, made to order, hand-crafted. How to make a Habit burger: https://www.youtube.com/watch?v=9hoqdlVwJB0 Their YouTube channel only has about 300 subscribers…but this video has over 100,000 views! Personally, I don’t find this video very interesting…but perhaps other people do because of an increased consumer demand in knowing how their food is being made? Feeling connected to your food?
- #12 Summary slide of the next few slides. STROP has a similar chart and different pictuers…my hope for using this new chart and these pictures was not to discount anything that STROP has done, but to get you thinking of people in your own lives and social circles who are the “Get Aheads” Millennials or the “Friendly Favorites.” Is it a parent, a brother, a friend of a friend? As you read through my personification of each consumer segment in the next few slides, I encourage you to start asking yourself who you know that embodies each of these segments.
- #13 This is Matt. He is 25 years old and a millennial. He is currently obtaining his MBA degree at USC Marshall School of Business. He is independent and adventurous. He values experiences that are unique, so that he can share them on social media platforms with his friends. He loves introducing new local eateries or sights to his social circle. He takes cues of where to eat or travel to from others who have gone there before, and have posted their own pictures and reviews online. When it comes to food, he wants to be involved in the experience. For him, food is a means of creative self-expression, so “help me do it, don’t do it for me.” Opportunities for Panda: PXIK rollout – PXIK offers more customization and more novelty due to its constantly changing variety. Each time Matt walks in PXIK, he does not know what to expect and what exactly he wants to order – and that is exciting!
- #14 This is Maria taking a selfie with her friends. Maria is 24 and also has a degree in Marketing. Her father is from India and her mother is from England, so she has grown up celebrating and identifying with both cultures. She is very curious and inquisitive about other cultures. She scans newspaper headlines every morning to keep up with world news and aspires to travel the world one day. For now though, she values authentic experiences that are ethnically representative of the culture they originated from, allowing her to “explore the world” from home. This describes her approach to food too – she values places that bring her on a cultural adventure. She also values places that use authentic and real ingredients; sourcing locally (farm to fork philosophy) and organically is a bonus. Opportunities for Panda: Chef specials (currently occurring at PX 1619 every Thursday!) that are authentically Chinese and could be found in China.
- #15 This is Harry and Sally (both age 38) with their two kids Eddie (age 7) and Katie (age 5). Eddie and Katie have changed their world significantly. Now, the kids influence every decision that they make – where to buy a house, which car to buy, where to go on vacation, and…what to eat for dinner. Because Harry and Sally both work full-time, they often take their kids out to eat. When it comes to where to go, they need a place that is homey, child-friendly, and serves options that everyone will enjoy – picky children included! Harry and Sally usually try to steer their kids into making healthy choices, but they also believe that it’s okay (and necessary in order to avoid a full-blown meltdown) to sometimes let them indulge. Opportunities for Panda: diagram and flow chart for picky eaters. For example: “Your kid doesn’t like broccoli? Try _____”
- #16 This is Noah and Allie. They have three kids – two who are away at college most of the year and one who has graduated and recently gotten married. It has taken them a while to get used to not having three kids in the house. Though they both still work, they are slowing down their pace of life and finding more time to relax, connect, and celebrate with each other – such as their daily morning walks before they each go to work. They also find themselves eating out a lot more, especially for dinner. Though they occasionally explore new restaurants, they have two or three local favorites that they frequent. At these places, they don’t even need to look at the menu – they know what they will order. This consistency gives them a sense of routine and control in their lives, which has been reassuring throughout their period of transition. They have also started watching what they eat in an effort to avoid future health problems – some of which they are starting to see affect their friends. Opoprtunities for Panda: nutritional info and suggested modifications. I went to Baja Fresh over the weekend and noticed that they had posters all over their walls that explained why each ingredient they used was good for you. Black beans contain protein, fish has healthy fats, etc. I walked around the store and read all of them as I was waiting for my food. Personally, I thought this was a great way to display nutritional information in a way that is engaging (not overwhleming!) and visually pleasing.
- #17 This is Maddy. She is 32 and works at a consulting firm. Her job demands that she travels a lot, thus, she rarely has the time to cook a homemade meal for herself. Nevertheless, her health is very important to her and is something she is not willing to sacrifice for her job. She has seen many family members – even her own parents – experience health problems due to diet and lack of exercise, so she is determined to maintain a healthy lifestyle even if she is busy. She usually goes to places that offer grab-and-go options and are located near her work, enabling her to quickly dash in and buy something before or after work. Because she is constantly eating out, she also values variety so she is not eating the same thing every day. She usually eats alone or with her coworkers. Implications for Panda: nutritional info and suggested modifications. Offer customization as an opportunity for someone to take control of their health and eat what they feel is best for them.
- #18 Left: Family in Minds and Friendly Favorites who value consistency and control – getting food that they know they (and their kids) will like. Middle: Friendly Favorites who are looking to start customizing for health reasons (watching their calories, cutting back on cholesterol, etc.) Right: Get Aheads and Up for Anything Authentic Millennials. The whole premise of these food establishments is customizing your own unique meal – and then sharing it on social platforms. In this way, food pictures – and the unique experiences they represent – have become a sort of social currency.
- #19 Get Aheads: unique, “Instagrammable,” customizable experiences – Blaze, The Counter, artisan coffee cafés, food trucks Up For Anything Authentic: authentic, adventurous experiences; share border with Fresh Take because they also want authenticity in ingredients – Korean/Japanese restaurants, Food Network shows, Whole Foods Family in Mind: variety, child-friendly; share border with Get Aheads because they are influenced by what their Millennial/Gen We children want to eat – fast food, Blaze Friendly Favorites: consistency, control; share border with Family in Mind and Get Aheads because they are influenced by what their Millennial/Gen We children want to eat – fast food, The Counter Fresh Take: convenience, health, variety – Whole Foods, Tender Greens, juice bars, food bloggers advocating clean eating Arrows represent macro-forces that are influencing what these different consumer segments want: health food goes mainstream, not a diet but a lifestyle, less about posessions – more about experiences