Harvard Case - Jijihong Catering Management Co. Ltd.: Brand Repositioning for Growth
"Jijihong Catering Management Co. Ltd.: Brand Repositioning for Growth" Harvard business case study is written by Kefa Yu, Xixia Zhang, Tingyi Zhan, Yingkang Chen. It deals with the challenges in the field of Marketing. The case study is 9 page(s) long and it was first published on : Jan 25, 2024
At Fern Fort University, we recommend a comprehensive brand repositioning strategy for Jijihong Catering Management Co. Ltd. This strategy will focus on leveraging Jijihong's existing strengths, including its commitment to quality and authenticity, while adapting to the evolving consumer landscape in China. This will involve a multi-pronged approach encompassing brand positioning, marketing communication, product development, and digital marketing to achieve sustainable growth and solidify Jijihong's position as a leading player in the Chinese catering industry.
2. Background
Jijihong Catering Management Co. Ltd. is a successful Chinese catering company with a strong reputation for quality and authenticity. However, the company faces challenges in maintaining its growth trajectory amidst increasing competition and changing consumer preferences. The case study highlights Jijihong's need to adapt its brand strategy to appeal to a wider audience, particularly younger consumers, while retaining its core values.
The main protagonists of the case study are:
- Mr. Li: The founder and CEO of Jijihong, who is passionate about traditional Chinese cuisine and committed to maintaining the company's high standards.
- Ms. Wang: The marketing manager of Jijihong, who is responsible for developing and implementing the company's marketing strategy.
- The Jijihong Team: The dedicated employees who contribute to the success of the company through their commitment to quality and customer service.
3. Analysis of the Case Study
This case study can be analyzed using a combination of frameworks, including:
- SWOT Analysis: This framework helps identify Jijihong's internal strengths and weaknesses, as well as external opportunities and threats.
- PESTEL Analysis: This framework provides insights into the political, economic, social, technological, environmental, and legal factors influencing the Chinese catering industry.
- Consumer Behavior Analysis: This framework helps understand the changing preferences and motivations of Chinese consumers, particularly younger generations.
- Competitive Analysis: This framework identifies Jijihong's key competitors and their strengths and weaknesses.
Strengths:
- Strong brand reputation for quality and authenticity
- Experienced management team with a deep understanding of the Chinese catering industry
- Loyal customer base
- Strong relationships with suppliers
- Commitment to using fresh, high-quality ingredients
Weaknesses:
- Limited brand awareness among younger consumers
- Traditional marketing approach with limited digital presence
- Lack of innovation in product offerings
- Limited expansion into new markets
Opportunities:
- Growing demand for authentic Chinese cuisine
- Increasing disposable income of Chinese consumers
- Rapid growth of the online food delivery market
- Potential for international expansion
Threats:
- Intense competition from both established and emerging players
- Rising costs of ingredients and labor
- Changing consumer preferences towards healthier and more convenient options
- Potential for economic downturn
PESTEL Analysis:
- Political: Stable political environment with government support for the catering industry.
- Economic: Growing Chinese economy with rising disposable incomes.
- Social: Increasing urbanization and changing lifestyles with higher demand for convenience and variety.
- Technological: Rapid adoption of digital technology and online food delivery platforms.
- Environmental: Growing awareness of food safety and sustainability.
- Legal: Stringent food safety regulations and labor laws.
Consumer Behavior Analysis:
- Younger consumers: More tech-savvy, value convenience and variety, and are influenced by social media and online reviews.
- Health-conscious consumers: Increasing demand for healthier and more sustainable food options.
- Value-conscious consumers: Seeking affordable and high-quality dining experiences.
Competitive Analysis:
- Key Competitors: Other established catering companies, local restaurants, and online food delivery platforms.
- Competitive Advantages: Jijihong's strong brand reputation for quality and authenticity, its commitment to using fresh ingredients, and its experienced management team.
- Competitive Challenges: Intense competition from both established and emerging players, particularly in the online food delivery market.
4. Recommendations
To achieve sustainable growth and solidify its position as a leading player in the Chinese catering industry, Jijihong should implement the following recommendations:
Brand Repositioning:
- Develop a clear and compelling brand positioning statement: This statement should articulate Jijihong's unique value proposition to consumers, highlighting its commitment to quality, authenticity, and innovation.
- Target younger consumers: Develop marketing campaigns that resonate with this demographic, emphasizing the convenience, variety, and social value of Jijihong's offerings.
- Create a modern and engaging brand identity: Update the company's visual identity, including its logo, website, and social media presence, to appeal to a wider audience.
Marketing Communication:
- Develop an integrated marketing communications plan: This plan should leverage a mix of traditional and digital marketing channels, including social media, online advertising, public relations, and influencer marketing.
- Create engaging and informative content: Develop high-quality content that showcases Jijihong's food, culture, and values, including recipes, behind-the-scenes videos, and customer testimonials.
- Utilize social media platforms: Build a strong presence on popular social media platforms, such as WeChat, Weibo, and Douyin, to engage with consumers and build brand awareness.
Product Development:
- Introduce new and innovative dishes: Develop new menu items that cater to changing consumer preferences, including healthier options, fusion dishes, and vegetarian offerings.
- Enhance the customer experience: Improve the dining experience by offering more personalized service, creating a more welcoming atmosphere, and providing convenient online ordering and delivery options.
- Develop a loyalty program: Implement a loyalty program that rewards repeat customers and encourages them to recommend Jijihong to their friends and family.
Digital Marketing:
- Optimize the company's website and online presence: Ensure that Jijihong's website is user-friendly, mobile-optimized, and provides a seamless online ordering experience.
- Develop a strong SEO strategy: Optimize Jijihong's website and online content for search engines to improve visibility and drive traffic.
- Utilize online advertising platforms: Leverage platforms like Baidu and WeChat to reach targeted audiences with relevant advertising campaigns.
- Implement a CRM system: Collect and analyze customer data to personalize marketing messages and improve customer service.
International Expansion:
- Explore opportunities in emerging markets: Identify potential markets with a growing demand for authentic Chinese cuisine, such as Southeast Asia and North America.
- Develop a localized marketing strategy: Adapt Jijihong's marketing message and product offerings to the specific needs and preferences of each target market.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of Jijihong's current situation, the competitive landscape, and the changing consumer preferences in China. They are consistent with Jijihong's core competencies and mission, which is to provide high-quality, authentic Chinese cuisine. They also consider the needs of both external customers and internal clients, including employees, suppliers, and investors.
The recommendations are attractive from a quantitative perspective, as they are expected to drive revenue growth, improve profitability, and enhance brand equity. The assumptions underlying these recommendations are explicitly stated, including the continued growth of the Chinese catering industry, the increasing demand for authentic Chinese cuisine, and the continued adoption of digital technology by Chinese consumers.
6. Conclusion
By implementing these recommendations, Jijihong Catering Management Co. Ltd. can successfully reposition its brand to appeal to a wider audience, particularly younger consumers, while retaining its core values. This will enable the company to achieve sustainable growth and solidify its position as a leading player in the Chinese catering industry.
7. Discussion
Other alternatives not selected include:
- Focusing solely on traditional marketing channels: This approach would be less effective in reaching younger consumers and would limit Jijihong's growth potential.
- Merging with a larger catering company: This could provide Jijihong with access to resources and expertise, but it could also dilute its brand identity and compromise its commitment to quality.
- Expanding into new product categories: This could diversify Jijihong's offerings, but it could also detract from its core focus on authentic Chinese cuisine.
The key risks associated with these recommendations include:
- Failure to effectively reach target audiences: This could result in wasted marketing spend and limited brand awareness.
- Inability to adapt to changing consumer preferences: This could lead to declining sales and market share.
- Competition from other players: This could make it difficult for Jijihong to gain market share and maintain profitability.
8. Next Steps
To implement these recommendations, Jijihong should develop a detailed timeline with key milestones, including:
- Phase 1 (Months 1-6): Conduct market research, develop a brand positioning statement, and create a new brand identity.
- Phase 2 (Months 7-12): Launch a new marketing campaign, introduce new menu items, and optimize the company's website and online presence.
- Phase 3 (Months 13-18): Expand into new markets, implement a loyalty program, and monitor the results of the brand repositioning strategy.
By following these steps, Jijihong can successfully reposition its brand and achieve sustainable growth in the competitive Chinese catering industry.
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Case Description
Between 2016 and 2019, Jijihong Catering Management Co. Ltd. (Jijihong)-a well-established company in Jiangxi Province, China-encountered a plateau in its development as the number of its chain stores consistently stagnated at around 80 and never surpassed 100. To address this growth challenge, in January 2019, the general manager of Jijihong led her team to proactively adjust the company's strategy. They decided to discontinue various company sub-brands, focusing instead on a single brand (Jijihong) and a single business (spicy hot pot) within a single market (Jiangxi). Before the new strategy could produce significant results, however, the outbreak of the COVID-19 pandemic in 2020 completely altered the competitive landscape of and set new development trends in the hot pot industry, disrupting Jijihong's development plans.
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