Target Market & Expansion Of Kin Kan’ Donuts Company In New York
Kin Kan’ Donuts company began in 2015 with a donut and coffee shop in Khon Kaen City, Northeast Thailand. Currently, the company has about 77 stores in Thailand only. Kin Kan’s Donuts has extended the menu to include a variety of flavored doughnuts and beverage options to provide customers throughout the day.
As Kin Kan’s fame spread, so the number of stores grew. The company sees this as an opportunity to invest overseas, as well as its benefits and profits of the company. In addition, the company has chosen to open a business in New York City, USA.
Market Profile
Population and workplace in New York, USA
New York City is by far the largest city in the United States, with an estimated 2016 population of 8.55 million (World Population Review, 2018).
Each of the city’s five boroughs registered gains in population. The Bronx saw the largest increase among all counties in New York State, up 6.2 percent, followed by Brooklyn (5.8 percent), Queens (5.7 percent), and Manhattan (5.0 percent); Staten Island showed the smallest gain (2.3 percent) over the 87-month period (NYC Planning, 2017).
The information shows that New York City is the most populous city in the United States, and this is also the main reason for having a lot of workplaces and a lot of work. This will make the schedule of people in this city in the morning quite chaotic. The company believes that this location will increasingly require people to live or work there in the future.
Lifestyle Trends in New York, USA
Nowadays, the people in New York are more health conscious (NYC, 2018), and the government issued a declaration and urged the public to pay attention to the health of their routine from overworking and non-nutritional foods. The city provides information for consumers about the health risks of eating trans-fat and information for food service establishments on how to comply with the city's trans-fat regulations (NYC Trans-fat, 2018).
Target market
Many people in New York are having problems making their own breakfast before leaving home. They went out to eat outside because they did not have enough time. And this is one of the reasons why fast food is the first choice of people who do not have enough time. Fast food is relatively inexpensive, but that doesn't mean it is only for folks with little to spend. "What we found surprised us. Poor people were less likely to eat fast food and ate it less frequently than those in the middle class. And the poor are only a little more likely to eat fast food than the rich” (U.S. Health in America-Fast Food, 2017).
According to County Employment and Wages in New York City (2017), average weekly wages in New York County, commonly known as the borough of Manhattan, increased 2.9 percent from the first quarter of 2017 to the first quarter of 2018, the U.S. Bureau of Labor Statistics reported today. Chief Regional Economist Martin Kohli noted that Manhattan’s average weekly wage of $3,087 ranked the highest among the nation’s 349 large counties, those with 75,000 or more jobs. Nationally, wages increased 3.7 percent over the year. The average salary of people in New York City is one of the factors for people to choose to eat and drink. But the problem is creating a product that people can eat every day without boredom. So, this is why our company will invest in New York City. We will focus on customers of all ages, from low-income to high-income.
Proposed Product
Product Description
The donut cost and flavor problem can be solved by designing many diverse products that can be eaten at any time by consumers who are not bored. The donuts of the company are the flavor that people like Original Glazed, Chocolate Glazed, Strawberry Glazed, Caramel Glazed, Peanut Butter, Vanilla Glazed and so on. Also, the taste of the donut has been surveyed by people in New York City to make sure the company's product meets the needs of consumers. Krispy Kreme – Doughnut menu (Krispy Kreme, 2018)Other products, the company has created for eating with donuts are hot drinks and iced drinks like Espresso, Americano, Cappuccino, Latte, Mocha, Green Tea, Chocolate and so on that help consumers to enjoy eating donuts.
The company has conducted more surveys about what consumers want from us. Mister Donut - Beverage menu (Mister Donut, 2017)The company has created this product to meet the consumer lifestyle and use environmentally friendly materials. Great Donut Packaging Designs (Ateriet, 2018)
Pricing and Affordability
The regular price of the original glazed donut is $ 0.99 per piece. This is the price that the company has paid attention to consumers who can afford it at affordable prices. However, the price is based on the taste of the donut, because each raw ingredient can be mixed to get a different taste. Also, customers can make multiple payments, such as cash, credit card, debit card, and online currency for added convenience and time-saving.
Promotional Strategy
Kin Kan Donuts’ first communication mission is to make the target market aware of the company's products to inform them of the product's features and quality. At present, the quality of the product is one of the important factors for consumers to choose the product. Moreover, Kin Kan Donuts has chosen the right location to fully accommodate its customers in the heart of the city to provide customers with the convenience of a nearby shop.
In addition, the company has been marketing with the use of leaflets to advertise the company's products because the distribution of leaflets is easy to reach customers and advertising is relatively low cost. It is also a good way for a new business to promote their products. Finally, the promotion of Kin Kan Donuts is buying 1 dozen donuts, get one free, or buy a donut with coffee, which will put the price down.
Foreign Market Entry Mode
Kin Kan Donuts company would take the advantages from FDI investment to manage by their own. This will allow the company to control the production and supply of raw materials, thus reducing the cost of production and services. According to Global NY Foreign Direct Investment (2018), New York State is “committed to helping your international business prosper and providing easy access to the North American marketplace, world-class infrastructure, and the lowest taxes in decades”. However, the company has taken into account the location of the business and its long-term benefits.
Conclusion
The company has chosen to invest in high-potential cities due to its growth in New York City. There is the problem of having an unfavorable market share because there are many strong competitors. Kin Kan Donuts company should take advantage of this by producing the products that the company has set out in this marketing plan to advertise and promote the product under the plan. The company will be one of the top donut brands. Additionally, the goal of the company is to attract its target market by providing the premium donuts to meet the needs of customers.
References:
Ateriet. (2018). Donut Packaging. Retrieved from Food Culture: http://www.ateriet.com/donut-packaging-list/Krispy Kreme. (2018).
Doughnut. Retrieved from Krispy Kreme: https://www.krispykreme.com.au/doughnuts/original-glazed-doughnutMister Donut. (2017).
Beverage menu. Retrieved from Mister Donut: http://www.misterdonut.co.th/menu.phpNew York population. (2018).
New York. Retrieved from http://worldpopulationreview.com/us-cities/new-york-city-population/NYC. (2018).
Healthy Living. Retrieved from NYC: https://www1.nyc.gov/nyc-resources/categories/health/healthy-living/index.page#nutrition-fitnessNYC Planning. (2017, July).
NYC Population. Retrieved from NYC: https://www1.nyc.gov/site/planning/data-maps/nyc-population/current-future-populations.pageNYC Trans-fat. (2018).
NYC Trans-fat. Retrieved from NYC trans-fat: https://www1.nyc.gov/nyc-resources/service/2632/trans-fatsU.S.
Health in America-Fast Food. (2017, August 8). Retrieved from Newsweek: https://www.newsweek.com/health-america-everyone-eats-fast-food-6480428.
Market Profile8.1. [bookmark: _Toc524182212]Population and Housing Trends in Thailand and Bangkok8.2. [bookmark: _Toc524182213]
Lifestyle Trends in Thailand and Bangkok9. [bookmark: _Toc524182214]
Target market10. [bookmark: _Toc524182215]
Proposed Product 10.1. [bookmark: _Toc524182216]Product Description10.2. [bookmark: _Toc524182217][bookmark: _Hlk525338280]
Pricing and Affordability11. [bookmark: _Toc524182218]Promotional Strategy12. [bookmark: _Toc524182219]
Foreign Market Entry Mode13. [bookmark: _Toc524182220]ConclusionReferences2 | Page
