BFJ 101,5/6

Fast food in Istanbul

Nanyang Technological University, Singapore

Leo Paul Dana and Teresa E. Dana

490

Keywords Turkey, Entrepreneurship, Fast food, Market segmentation, Marketing, Location Abstract A neighbourhood fast-food outlet in Istanbul focuses on two target markets, tourists and locals. This case is an exercise in market segmentation.

Situational summary Mr Hu daverdi Dalkin was the entrepreneur operating the Seda Bu fe, a fast-food establishment in Istanbul. The menu featured excellent shish taouk (chicken) and schwarma (lamb). Both of these meats are positioned tightly, on a vertical spit, and grilled by a flame parallel to the spit. Also available here is traditional Turkish tea, served in small glasses. Turkey Turkey was declared the successor to the Ottoman Empire, in October 1923. Although its capital was shifted from Istanbul to Ankara, the former remained its major commercial centre. For decades, the national government was known as Devlet Baba, literally ``Daddy''. This was so until the free market reforms of the 1980s encouraged individuals to rely more on their entrepreneurial efforts and less on the state. During most of that decade, Turkey had an impressive economic performance. While young men often followed the trade of their fathers, women in Turkish society emancipated rapidly. In contrast to their mothers, who spent hours at local markets, bargaining for fresh fruits and vegetables (grown without hormones), daughters preferred to shop for Levi's. In 1990 US$1 bought 2,608 Turkish lira and 60 kurus. A downgrading of Turkey's international credit rating in 1994 helped the annual inflation level to hit 126 per cent that same year. By the time the 1996 Olympic games were being held in Atlanta, $1 was worth over 82,000 Turkish lira. Istanbul applied to host the Olympics of 2004, but attacks by terrorists against tourists in Turkey raised questions about the safety of foreigners in that country. The rise of Islamic fundamentalism was a particular concern. Furthermore, Turkey was involved in several territorial disputes with Cyprus, Greece, Iraq and Syria. Nevertheless, entrepreneurs in Istanbul hoped that the Olympics would bring prosperity to the city; the Olympic committee, however, opted against selecting Istanbul. Istanbul An eclectic city, Istanbul is the former capital of the Roman, Byzantine and Ottoman Empires. For 16 centuries, the city dominated Asia Minor and its entrepreneurs controlled international trade. Located along the traditional spice

British Food Journal, Vol. 101 No. 5/6, 1999, pp. 490-492. # MCB University Press, 0007-070X

and silk routes, Istanbul was a hub of the bazaar economy. Spanning the Bosphorus Strait, this metropolis still enjoys its strategic location, controlling the waterway which links the Black Sea to the Mediterranean. It is the only city in the world to have been built on two continents. Istanbul's skyline is dotted with impressive domes and minarets, giving a serene and magical view of the city. There is, however, a constant bustle and movement of crowds as one ambles along the cobblestone streets. Rumbling vehicles, coupled with intermittent cries of street vendors peddling their wares, become an integral part of the city's make-up. Porters continue to carry merchandise on their backs as was done in former generations. Istanbul, the city that built Europe's first underground metropolitan subway, is indeed a hub of intermodal transport. Today, a high-speed tramway running through an old section of town contrasts the historic street-car in the new central business district. Across the city, as is the case throughout the country, imams call the people to prayers and the resonance of the chant of ``Allah Akbar'' is heard five times a day. Traditional food and spice markets run parallel to tourist shops and sell dust collectors and future garage sale material. So-called Turkish souvenirs are displayed throughout such tourist markets and are identical to memorabilia of China sold in Shanghai and of Chile sold in Santiago. One can now have one's name inscribed on a grain of rice, in countries where rice does not even grow. Welcome to Istanbul A little dazed from a long journey, visitors arriving in Istanbul by boat, bus or train, are often confronted by hotel representatives all showing photos of their rooms. Many look the same. Common sales strategies include phrases such as ``My place is very close'', ``My place is very clean'', and ``We have hot water''. What one does not always realise is that ``close'' could mean over an hour away, ``clean'' is subject to interpretation and ``hot water'' may be available only at certain hours, which are seldom at times of optimal convenience. Numerous representatives receive a commission for bringing foreigners to a hotel, and even if one never talks to the commissioned agents, these follow their targets and make arrangements just as one enters a desired establishment. There are two major tourist areas in Istanbul. Both are located on the European side. One caters to the low budget backpacker crowd in the old city, near the port and the train station, while the other caters to the more sophisticated traveller, requiring more Western-style comforts. The latter is situated across the Golden Horn in the central business district and is not generally marketed by such pushy hotel representatives. The Ku c u k Konak Oteli houses fewer than two dozen single and twin rooms, equipped with antique phones. There are no hotel representatives for this clean establishment located at a two-minute walk from Istanbul's main train station and at a five-minute walk from the port. The lobby is found by climbing a flight of stairs where a television is constantly on for the entertainment of a few

Fast food in Istanbul

491

BFJ 101,5/6

lifeless men sitting there drinking tea and smoking. A few blocks away, at Alemdar Caddesi No. 2/B, in the Sultanahmet neighbourhood of Istanbul, is the Seda Bu fe.
Application questions

492

(1) Prepare a questionnaire to conduct a market study for Mr Dalkin. (2) Act as a consultant for Mr Dalkin, suggesting how he should go about promoting his fast food business to locals and/or tourists. (3) Discuss market segmentation in the context of this case study.