Engineering Marketing (IE382) – Course Project

Food Truck “EssenWagen”

Instructed by: Dr. Hazem Kaylani

Group members:
Abdelrahman mohammad abu ihmaid 20191103140
Qutaiba abu doush 20189103165
Ahmad alsadouni 20191103215
Rakan Almazahreh 20201103177
Abstract:
In today’s world, in order to achieve organizational goals for a product or a service,
exceptional marketing approaches must be done. Marketing is one of the most
important areas that organizations work and spend their money on, not only to make
profits out of own product, but also to maintain and even strengthen their name and
position among the market and other competitors.

Introduction:
In this report we will be positing a new type of restaurants in the fast food market. We
can see the increasing numbers and the success of many restaurants in different areas,
and that’s due to the huge numbers of people that depend on these places to have their
usual meal of the day or maybe just to meet up and enjoy the food with other people.
And for our type of restaurants we see the potential of it becoming as good as the
others if not better, as it excels in a couple of areas that no other restaurant does. We
are going to use Segmenting, targeting and positioning (STP) as our main Marketing
approach on a 50 people survey that we did, and it included different groups of people.
Still more, the STP approach allowed us to find different diagrams, and after
analyzing them we were able to cluster the people and know which segment we
should be targeting, also knowing our position in the market among other competitors.

Idea Overview:
The idea of our restaurant is to prepare and sell Burgers and Hot dogs meals in a truck,
it was mainly inspired by existing places in other countries where there are areas that
have multiple food trucks all in one place. People tend to enjoy the atmosphere of
having a good meal in a trucks area, also many others tend to buy meals from a drive
thru, so they cut any possible wasted time and have their lunch/dinner. Moreover,
being the first to apply this idea is already an extra step towards the success of it.
 Data Collection and Analysis (Using STP approach)
A survey was posited on the internet, and the data collected was for the first 50 people
who filled the survey. It had 12 questions, asking about general personal information
of the customers (age, gender, income, fast food meals per week) in order to know the
types of customers, also they were ask about personal preferabilities about restaurants
in general (reason they go to restaurants, interest of the idea, place and time service of
restaurants, price, healthiness (no. of calories in a meal) taste and customization of the
meal.)
*the survey can be found at the end of the report, in the appendices followed by the
collected data

We used the STP approach as it is the most suitable out of all other approaches for our
study, especially that we made a 50 people survey, so it helped to get the best out of it
and make as representative as possible. More to add, STP helps you to identify the
type of segments in your market, which to focus on the most, and know where you can
be categorized in the market and lastly who are you competitors in the category.

SWOT analysis:
Strengths, weaknesses, opportunities and threats analysis or what is called SWOT
analysis is a good way to get an overview of all the factors that may impact the
marketing of the project, internally and especially externally, positively and negatively
for example by governmental regulations, or crossing other competitors copy rights.
So taking the best out of all available opportunities using the strengths is the optimal
achievement that we look for.

Strengths Weaknesses Opportunities Threats

-New idea to the Potential: -Ease of attending -Big market share

market -Governmental and serving at competition
- Ease to target all restrictions carnivals, events, -Might take time to
potential type of -Decline in etc. understand the
clusters customers desire in -Partnership with concept
winter season other companies
Table(1): SWOT analysis
Segmentation:
in segmentation we used the clustering analysis, by that we knew all the possible
clusters in our market. There are multiple types of clustering analysis; Single,
Complete, Average and Ward’s method. In our project we used the complete linkage,
which is dependent on the furthest distance between two clusters “furthest neighbor
rule”. We divided the customers into three clusters (it is better to have more clusters to
be more specific which one you should target but the limited surveying capabilities
was a barrier).

The following graph is a dendrogram; it shows all the differences between the
surveyed people, on the most bottom are the most similar customers, and going up the
graph the less similar they become. The most differen three groups got divided into
clusters which can be shown by the different colours, red, blue and green.

Figure(1): Complete linkage Dendrogram.

 We analyzed the dendrogram, put each cluster customer in the group that the got
created using the complete linkage method and saw the numbers of them. The
following histogram shows the percentages of each group out of all survey people.

*Figure(2): Histogram

We see that the first segment (the blue group in figure (1)) is about 62% of the whole
population, which is a good percentage to be targeted, the second and third are 26%
and 12% respectively. More details are going to be shown in the targeting section.

Targeting:
After identifying the groups in the segmentation section, we have to know the types of
each one, in order to know how to market the product to the selected segment.
Obviously, the group with the highest population is going to be targeted, so it can
result with higher sales and percentages of potential loyal customers. The following is
a graph that shows the average rate of each factor for every segment.

*figure(3): average rates.

 From the previous figure we can know what interest each segment the most, and know
how to market and design our products and services according to their preferences.
And referring to it also, we named every cluster with defining what are the most
important factors to them.

The clusters are defined as:

 Economical Customers (segment 1, blue): these customers cared most for the
price, other factors also had some of their interest, but that was the main
difference between them and the other two clusters.
 Quality Seekers (segment 2, green): the people of this group did not care for the
price of the meal, they cared about the quality of the food and service; these are
the people who are willing to pay more for better quality.
 Gourmets (segment 3, red): these people can be differentiated from the other 2
groups in the healthiness area, they have high rates in taste and customization,
not much different from the other group, but the low interest of value of
calories in a meal indicates that their palette comes first.

As previously analyzed, the Economical Customers are the ones to be targeted by our
project, providing not exceptional but good enough taste and quality service for them
for an affordable price. Many statistics can be used to explain having this cluster,
referring to the collected data the gender has no specific relation but about 67% of
them are below 24 years old, meaning probably they are still students and they have a
meal because they are still at their studying places, as more than half of the answered
that they eat fast food because they have no choice, more to add, about two thirds of
them eat two or more fast meals per week, meaning they are a good source of
attraction to our project. Also we can explain that there is no constant source of
income, as they are still students, but looking at the income, about 50% of the whole
cluster has less 300 jds income in a month so that mean that we have to provide
affordable price meals. These theories are enough to explain the type of this cluster, as
many of them can be considered students, and for this category special offers and
promotions can be made for students only. Moreover, we can attend many events that
are made in universities and colleges as we are both can be considered sources of
attraction for each others.

Positioning:
This is the last stage of the STP approach, everything about the internal environment
got known, but still the plans might change after knowing the position of our
restaurant in the fast food market. Comparisons must be made in all areas in order to
see what and how we could excel more than others and in which areas exactly.
Perceptual maps are a good way to do that.
*We have collected the values of ratings for each attribute for each competitor by
doing some researches, contacting the restaurants themselves and asking for the
needed information from them (the data can be seen in the appendices at the end of the
report).

*These are the potential competitors that we chose, with some main points about their
attributes:
 McDonald’s: one if not the strongest name in the fast-food market. Known for
their fast service time.
 Burger Makers: slow service time, high calories, and highly rated meals.
 Burger King: low price and known worldwide.
 The Fries Shop: new, fresh idea, high price, and high customization.
 Wazzup Dog: low price and high customization.

-Perceptual map for brand

Using this type of perceptual maps can help us define who are the competitors that are
in the same market. Even more the distribution of the rest of other competitors in the
fast-food criteria.

*Figure (4): perceptual map for brands only

From the last figure we can see who and which competitors compete in the same
market and who are in different markets. McDonald’s can be chosen as the main
competitor for our project, as its existing in the same market that we are in.

Perceptual map for brand and attributes:

This perceptual map will show the importance of the attributes of the restaurants linking
them with the place of each restaurant in which market.
Figure(5): perceptual map for brands and attributes.

As it was shown before, it is right that we both McDonald’s and our project are in the
same market, but still, each has its own specialties. McDonald’s is more inclined to
have a better taste, but “Essenwagen” tend to excel more in taste and customization
areas.

After all these analyses we can conclude the objectives and the standards of the
restaurant by these points:
 Economical users are the one that should be targeted and making some
promotions and special offers for students can help share the name of the
restaurant faster.
 Price is the most important factor, taste is also a critical one, as all customers
from all 3 clusters has shown a fair interest in it. Service time and place should
not be look over, as they are the main ideas of our project, having a fast meal
and the ease of getting them.
 Our main competitor is McDonald’s, a hard one to compete with, but the
features and the new idea of the project can affect the success massively.

Conclusion:
Marketing is the way to success for any project, but also using the right tools and
approaches is a must. The right type of customers must be identified then satisfied as
much as possible after giving our products a shot, as no mistakes are allowed at the
beginning, so the name of the brand can be spread faster and makes us a potential
strong competitor in the market.
 Appendices:

Survey:

This Survey is about the idea of launching a new type of restaurants, which is Food
Trucks and will be named “Essenwagen”.

1. What is your gender?

o Male
o Female

2. How old are you?

o <24
o 24-35
o 36-55
o 55<

3. How much is your monthly income?

o <350
o 350-799
o 800<

4. How often do you eat fastfood?

o Never
o Once a week
o Twice a week
o 3 times and above a week

5. What is the reason of eating fastfood?

o You like the food
o No other choice
o To spend time with others

6. Would you be interested to buy from foodtrucks that are distributed in different
areas in your city? (for the ease of getting food)
o Yes
o No
7. How much you think price is an important factor (within a 7 jds range)? (1
least important - 10 most important)
…..

8. How much you think food healthiness is an important factor? (1 least important
- 10 most important)
…..

9. How much you think food taste is an important factor? (1 least important - 10
most important)
…..

10. How much you think service time is an important factor? (1 least important -
10 most important)
…..
11. How much you think meal customization is an important factor? (1 least
important - 10 most important)
…..

12. How much you think the place of the truck is an important factor? (1 least
important - 10 most important)
….

Thank you!

Sur
vey
data
 Survey results:
meals service
per price healthiness taste time
customer Gender Age income week reason interest factor factor factor factor customization place
spend
1 M <24 <350 once time yes 8 10 9 7 7 6
350- 3 and no
2 F <24 899 above choice yes 10 1 9 10 5 9
spend
3 M <24 <350 twice time no 8 8 10 6 5 9
the
4 M <24 <350 twice food no 7 7 10 5 5 7
24- 350- no
5 F 35 899 twice choice yes 4 5 9 7 7 6
36- spend
6 F 55 900+ never time yes 5 9 9 7 8 9
spend
7 M <24 <350 once time yes 6 9 8 6 9 9
3 and the
8 F <24 <350 above food yes 8 6 10 7 6 8
350- the
9 F <24 899 twice food yes 5 3 10 9 8 10
spend
10 M <24 <350 above time yes 8 7 9 5 7 8
24- 350- the
11 M 35 899 once food yes 9 7 8 9 5 8
24- 350- spend
12 F 35 899 twice time no 8 8 8 6 6 6
no
13 F <24 <350 twice choice yes 10 7 8 8 7 9
three
350- and no
14 M <24 899 above choice yes 9 9 8 9 6 8
three
and no
15 M <24 <350 above choice yes 10 6 7 8 6 9
350- no
16 F <24 899 twice choice yes 8 8 6 8 6 8
spend
17 F 55+ 900+ once time no 6 9 9 7 6 5
the
18 M <24 <350 once food yes 7 7 10 7 9 3
24- no
19 F 35 900+ twice choice yes 4 8 9 8 6 5
350- spend
20 M <24 899 never time no 3 10 10 8 9 5
36- 350- spend
21 F 55 899 once time yes 9 6 7 7 7 6
350- no
22 F <24 899 twice choice yes 8 8 8 8 7 9
three
350- and no
23 F <24 899 above choice yes 7 7 8 9 8 9
 three
and no
24 F <24 <350 above choice yes 10 9 8 7 6 10
the
25 M <24 <350 once food no 6 7 9 7 9 5
24- spend
26 F 35 <350 never time no 4 5 10 9 6 4
24- 350- the
27 M 35 899 once food yes 6 6 9 7 10 10
three
and no
28 M <24 <350 above choice yes 7 8 8 10 8 10
24- no
29 M 35 <350 twice choice no 7 9 10 10 8 4
three
and the
30 F <24 <350 above food no 4 10 6 10 8 6
350- the
31 M <24 899 twice food no 9 2 6 8 6 7
36- no
32 M 55 900+ twice choice yes 8 8 8 6 9 9
no
33 M <24 <350 twice choice yes 7 4 10 7 10 9
24- 350- the
34 F 35 899 once food yes 2 7 8 9 8 9
350- spend
35 F <24 899 once time yes 6 6 7 6 8 7
no
36 M <24 <350 once choice yes 10 10 6 8 7 8
350- spend
37 F 55+ 899 never time no 8 9 9 9 7 10
no
38 M <24 <350 once choice yes 9 8 10 7 7 6
24- 350- no
39 F 35 899 twice choice yes 7 6 7 9 6 8
three
36- 350- and the
40 M 55 899 above food yes 6 6 10 8 7 10
24- the
41 M 35 900+ once food yes 7 8 9 8 7 6
the
42 F <24 <350 never food no 6 9 10 6 6 1
spend
43 M <24 <350 once time yes 9 7 10 9 8 9
36- spend
44 F 55 900+ twice time yes 8 8 9 7 8 9
24- the
45 F 35 900+ once food yes 6 7 9 9 9 7
three
and no
46 M <24 <350 above choice no 10 9 9 6 6 6
the
47 M <24 <350 once food yes 9 7 9 8 7 8
 the
48 F <24 <350 once food Yes 9 8 8 8 8
three
24- 350- and no
49 F 35 899 above choice Yes 10 6 8 9 5
350- no
50 M <24 899 twice choice Yes 8 8 8 8 6

Competitors ratings for attributes:

price mobility Taste time customization healthiness

McDonald's 7 9 8 9 7 6
Burger
Makers 7 8 9 2 5 4
Burger King 8 6 5 8 4 6
Wazzup
Dog 10 5 7 7 9 8
Fries Shop 6 2 9 4 3 5
Essenwagen 9 9 7 9 10 6