More Than Just Finger-Lickin’ Good: The Dynamic Marketing Strategy that Made 4Fingers Fried Chicken a Must-Visit Destination
4Fingers has a dynamic market presence in Asia. So, what’s their secret? Let’s hear from them!
As a young, relatively new brand, 4Fingers has the advantage and freedom of moulding ourselves to match current trends and consumers’ demands, which is especially true in such a saturated market with long-established food chains. We, at 4fingers, are continuously looking out for ways to disrupt the status quo rather than blending into the background.
4Fingers has introduced its latest addition to the menu- we call it Firecracker Chicken. Crafting this fantastic dish was only possible due to our collaboration with celebrity chef Bjorn Shen, and our knowledge that Vietnamese love Asian food inspired this flavour. We also aimed to cater to the Asian palate, since a multi-national company needs to adapt to the region in which it is present.
It is in our brand’s DNA to incessantly disrupt the scene around us. We aim to focus on Western markets where people are frustrated and unhappy with old and entrenched brands. We want to target consumers who are hungry for new and better companies and are sick of mainstream brands as well as brands that are losing their relevancy and competitiveness.
While the potential overseas markets like the U.S., U.K. and Australia are incredibly competitive and cut-throat, we have full faith that we have an excellent brand to offer. If we ensure that our brand matches people’s needs and shows them that 4FINGERS is capable of sparking a revolution, we can capture those markets. Along this journey, we will share our story with our consumers and connect with them through digital marketing and P.R. activities.
We also aim to use the right technology in our business. F&B is traditionally a very low-tech industry which fails to maximise the potential of technology. We want to be a completely technology-based F&B business, not just for marketing purposes, but to transform the industry in the same way Uber disrupted the private hire vehicle industry.
4Fingers is a Singaporean fast-food chain that specialises in crispy Asian-style fried chicken. Headquartered in Singapore, the chain was founded in 2009 and currently has 28 stores across Singapore, Malaysia, Indonesia, Thailand, Australia and the United States. The company expanded regionally to Malaysia in 2015 with twelve stores opening by the end of 2018. The brand also has three outlets in Indonesia, and two in Thailand. From mid-2017, 4FINGERS also opened three outlets in Australia- one in Melbourne and two in Queensland. In August 2019, 4FINGERS opened its first restaurant in North America in Los Angeles, California.
Firecracker chicken is the newest flavour to launch in Singapore and Malaysia. The brand has invested in digital marketing on all the major social platforms such as Facebook, Instagram and Youtube via their campaign video.4Fingers also uses public relations and influencers, and a mix of ATL and BTL advertising involving mall partnerships and in-store displays.
4Fingers was founded by four friends who tasted Korean-style fried chicken for the first time while they were in New York. Their goal was to evolve big chains’ formulaic fried chicken into something new, adding the concept of sustainability and health while maintaining the crispiness and flavour of the chicken they were using. There are many other chains which use their motto: “To serve the world Great Food. Fast.” However, this concept is different. The fact that their dishes are served sustainably says everything about them.
The micro-environment impact of 4Fingers in Ho Chi Minh City, Vietnam, will be based on four elements: Customers, Competitors, Suppliers and Target Public. We will target millennials as they are more receptive to new ideas and are willing to try out new things. At the moment, there are not many competitors in the city as it is still under development, and it mostly serves the local cuisine. Therefore, there are plenty of opportunities to venture into the city. Vietnam has a thriving agricultural sector, and a balanced food supply chain makes sourcing local ingredients seamlessly. Lastly, media publics are an added advantage for 4Fingers since Vietnam’s internet coverage is on the rise. More people are gaining access to the internet and social media, which helps us make a more significant impression on social media.
Macroenvironment impacts are based on economic, social-cultural, political, legal and regulatory factors. The economy is actively growing in Vietnam, and the GDP is continuously rising as the government opens up the market. Due to the strong economic growth, the political arena is stable and has a strong mandate from its people. The government also fully improvised the legal and regulatory framework over the years, which allows us to set up businesses in the city easily. The system for conducting efficient business is in place, and direct foreign investment has been flowing into the country. Lastly, since Vietnam has a relatively young population, it is socially open to new ideas. Therefore, we believe that 4Fingers will gain tremendous support from the young crowd.
A SWOT analysis is vital for us to identify both internal and external environments. The internal environment will involve 4Fingers' Strengths and Weaknesses. Our strong presence, with various outlets around South-East Asia, will help us raise our brand awareness during our initial launch in the city. The current branding marketing strategies already implemented in various cities in Asia will help us have a successful launch in the Vietnamese market. However, on the flip side, we are also venturing into an untested market in Vietnam, and a language barrier will be an added disadvantage.
External factors will be both opportunities and threats in the country. As we mentioned earlier, Vietnam has stable economic growth and a vast number of young working adults in the country, which serves as strong evidence of an open and vibrant economy with many opportunities. Nonetheless, as a growing economy, it also means that the fundamental economic structure is not stable. The world economy is closely linked to today’s world. Therefore if a pandemic occurs, it will threaten the survival of businesses in the city.
Segmentation, targeting and positioning are some conventional strategic approaches in modern marketing. This model is one of the most commonly applied models in practice, and it is useful in creating marketing communication plans. Market segmentation helped us identify our target market. Since our target customers are the youth, it should be based on demographics, and their income earned. In terms of our targeting strategies, we need to evaluate the potential and commercial attractiveness of each segment. We need to analyse the number of people in our target age range in the city. We also need to analyse the income earned by the expected age group. It is also essential to understand the size and growth of our identified market segment. Finally, we will develop accurate product positioning for our selected segments. In the case of 4Fingers, we will develop our product to target younger age groups and focus our marketing plan on social media. Most importantly, we would like to position our brand as ‘hip’ and give the image of a trendy restaurant which should be on everyone’s bucket list when they visit the city.
To increase our sales, we have to increase our brand awareness. We will advertise our crispy chicken on social networks and different portals so that customers can have easy access to our products and learn about them. For example, we are advertising on Facebook because the number of Vietnamese people visiting Facebook is quite large, and that can help traders. The brand is becoming more and more known. Alternatively, there are promotions on food ordering apps for customers to try dishes that our restaurant serves. Customers will then share their experiences with their friends, and that will help increase brand awareness of 4Fingers Crispy Chicken. This process is indispensable in establishing our brand’s position in the industry and will help boost sales for this item.
The estimated sales revenue in Ho Chi Minh (Vietnam) in 2022 is $50 million. From 2022 to 2026, the sales revenue will be around $250 million. The most important and indispensable factor is the trust of customers in the brand. When a brand brings excellent quality and satisfaction to customers, it will be trusted more and sales will increase when customers trust the brand. The price of our products is reasonable and suitable for everyone, especially employees and students because the majority of fast-food eaters are employees and students because they do not have time to cook, and so the consumption of these receptors will be high.
The occupancy rate is considered extremely important for the management of 4Fingers Crispy Chicken in general, and the sales department in particular. Not making full use of the restaurant’s absorptive capacity result in a decrease in that restaurant’s profit. The existence of occupancy rates that are less than the restaurant's capacity means that there are lost selling opportunities, which leads to a depletion in the restaurant’s revenue.
Occupancy Percentages need to focus on attracting investments like market promotions. Once the determination of the fill rate has taken place, a comparison of the occupancy rate with competitors takes place. After this, a check is conducted to ensure that the restaurant is operating effectively. Besides this, we can also adjust our marketing and advertising activities to attract more customers to the restaurant. The average rate and market penetration allow us to compare our restaurant’s profits with other restaurants, but the sales index is the most comprehensive view of comparison. In 2022, we will have six stores in Ho Chi Minh. The Occupancy Percentage in the same year is estimated to be 80–90%. By 2026, the number of stores is likely to increase, depending on the market.
· Product Strategies-The Vietnamese branch of 4Fingers will use a similar menu to the Singapore branch. Recipes and formulas will remain unchanged. Also, a few more choices of food will be included in the menu, depending on the season or occasion. On these occasions, dishes that are ordinarily not available will be present on the menu. For example, uniquely decorated dishes will be in stock during Christmas or Halloween.
· Branding Strategies-The Vietnamese market prefers international products, and this rings true, especially for the new generation. They want to follow national and international trends, which is the reason the Vietnamese branch of 4Fingers will be using the company name (4Fingers Crispy Chicken) to brand itself among these people.
Pricing Strategies- Compared to Singapore, the Vietnamese economy is different. The cost of living in these two countries is very different. Singapore’s cost of living is much more expensive than Vietnam’s. Therefore, it will be difficult for the Vietnamese 4Fingers branch to operate if they apply Singapore’s price tags. If the price is not affordable, the Vietnamese branch will not gain customers and profit quickly. In order to match with the Vietnamese target market, the Vietnamese branch of 4Fingers will be using low-price strategies to attract customers. By applying this method, customers can afford and experience our products without having to spend an enormous amount of money.
The Vietnamese Branch of 4Fingers Crispy Chicken aims to provide products for every customer in the most straightforward method. Our vision is to ensure that customers can conveniently access our products without having to go through a complicated process. As a result, the Vietnamese branch will distribute directly to the customers online and at stores.
· Chain Store Sales-This method indicates that retail stores will be open in different areas or regions so that our products will be provided to the customers directly. In this circumstance, the Vietnamese branch of 4Fingers will be opening a chain of restaurants in Ho Chi Minh City, especially in populated areas of the city. The number of stores is estimated to be around six in 2022.
· Direct Online Selling-Another term for this type of distribution is “online ordering”. Since the internet is rapidly developing over the past decade, many brands have adopted it as a sales method. The Vietnamese 4Fingers branch will also be applying this method. The products of the branch will be made widely known by online advertising, via websites (like Google or Facebook) or food delivery apps (Like Grab and UberEats). Customers will then place an order, and our products will be shipped to their registered address.
Promotion Strategies-The Vietnamese branch of 4Fingers Crispy Chicken wants customers to have a diversified experience when dining.
· Discounted Prices-On special occasions such as Christmas or Halloween, there will be a discount on our products- ranging from 10% to 50%. This strategy can build up a good relationship between providers and customers. Moreover, it also helps dispense goods that are in large quantities or almost expired.
· Buy-one-get-one Deals-This strategy is no stranger to restaurants. Nevertheless, it is still considered useful not only for perennial restaurants but for newcomers as well. The “Buy-one-get-one” indicates purchasing a product to get another product for free. The benefit of this strategy is similar to the “Discounted Prices” strategy.
· Customer Loyalty Programs-In the Vietnamese branch of 4Fingers, loyal customers are provided with member cards for discounts or promotions. They will also be informed via email or SMS when there are special events. Selling new products to loyal customers is safer since they already have experience with the brand.
For the last few years, vegetarian food and eat-clean diets have become popular worldwide. Primarily after COVID-19, people will target healthy lifestyles. We will implement these trends in our menu: we would use whole grain mixture breading for chicken instead of wheat flour; baked chicken wings or strips instead of frying them in oil, and baking vegetables would be an attractive choice.
To sum up, 4Fingers has an inherent quality to be distributed among the youth custom based on the marketing hype in Vietnam. We will focus on the digital storytelling of the brand and high-quality digital products on social media, which were mentioned before. Also, we would reach out to famous social media influencers and celebrities. For example, Châu Bùi promotes healthy nutrition and is the number one youth influencer in Vietnam. With her level of authority, customers' trust and brand awareness of 4Fingers would only be a question of time.
