Marketing Strategy Analysis for Z-Kung Fu Restaurant

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Marketing Strategy Analysis for Z-Kung fu Restaurant

Z-Kung fu Global Chinese Fast Food Chains is a new mode of operation in Chinese fast-food chain industry. It has solved the standardization problems in Chinese fast food industry for the first time and set a new way of developing the Chinese fast food. Up to now, Z-Kung fu has opened 250 bistros, and began to compete with the foreign fast-food restaurants. Developing on strong capital, Z-Kung fu is expanding rapidly. However, there are still problems existing in the marketing strategies of Z-Kung fu as follows. Firstly, it only achieves in standardization but it’s lack of support of the functional value. Secondly, it still difficult to compete with foreign meal in many ways, such as human resources, services and quality. Thirdly, there still exist some disadvantages of high-speed expansion. These problems show the weaknesses of Z-Kung fu in development at present. This paper studies the marketing strategies of Z-Kung fu to find out its advantages and disadvantages, hoping that Chinese chain enterprises will be enlightened in the future. Key Words: Z-Kung fu; Standardization; Competition; Expansion;

1. History and General Situation
In 1994, Cai Dabiao, 22-year-old, opened his first restaurant with partner Pan Yuhai in Dong Guan. The first outlet was located next to the No.107 national highway and soon became welcomed by truck drivers traveling between Hong Kong and Dong Guan for its Cantonese-style steamed dishes. But he found it difficult to maintain the same taste of all dishes at different outlets. Three years later, Cai attempted to standardize Chinese fast food. He bought automatic steaming machines invented by the South China University of Technology. All dishes then could be prepared and vacuum-packed at the factories and reheated at individual branches. They didn’t need chefs at individual branches. By simply reheating the steamed bowls in a heating machine; staff could sever customers with standardized meals. In 1999, the chain expanded to Shen Zhen and Guang Zhou. It opened the 50th outlet in 2003, and 100th in 2005. By the end of 2005, the total turnover of Z-Kung fu restaurant has reached 500 million yuan. At the end of 2006, Z-Kung fu loaned 300 million yuan for finance and put forward the listing plan. “We want to issue our stock in China’s A-share stock market.” Said Cai.” Z-Kung fu is a Chinese enterprise. Issuing stock domestically will enable our consumers to enjoy its growth. With the full name of “Z-Kung fu Global Chinese Fast Food Chains ", Z-Kung fu is making more and more people come to see its greatness of scale, the length of Origin and the weight of culture. The Bruce Lee-like portrait, logo of Z-Kung fu, is a symbol of the Chinese Kung Fu which is well known all over the world. It gives people the images of affability, health and vitality and so on. And these images are all more or less relevant to nutritional. The two factors above, together with the Z-Kung fu advertising slogan "nutrition is steamed up," indicate the core selling point and segmentation for consumers: steamed (It also sounds like “real” in Chinese.), Chinese-style, nutritious, and healthy.

2. Marketing Strategies

2.1 Product of Standardization
Problems in Standardization are the greatest impediments to the development of Chinese fast food. Cai has made great efforts in the standardized management. If Chinese fast food wants to develop in a large scale at a fast pace, we must solve the problems of standardization. As Western cooking process can be easily standardized, all steps of each operation can be set into strict norms. What the staff needs to do is just to follow the operations step by step. So standardization is the strength of Western fast food. To the opposite, because Chinese cooking is more complex and varied, which can be easily measured, we haven’t got a breakthrough in the standardization so far. Standardization of Z-Kung fu includes three...
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