New Business Plan: Sibiji Jeon

Background Briefing
We can commonly see people eating hamburgers on the street, but nowhere can we see people with jeons,

the Korean pancakes. The westernized tastes of Koreans may be the main cause. However, considering the busy life we people are set in in this 21st century, such pursuit of quickly cooked and portable fast foods with strong tastes is axiomatic. It is true that ‘fast foods’ are literally produced fast, but it is also true that they are unhealthy due to the use of high calorie ingredients, great amounts of saturated fats, and excessive amounts of antibiotics.


Introduction
In order to meet the demands of people concerning themselves with time and health, we Sibiji Jeon, derived

from the word meaning Twelve Earthly Branches of East Asia, have come up with an innovative idea to replace hamburgers with jeons. In addition to the time efficient advantages conventional fast foods provided, jeons can provide us a method to preserve and rejuvenate Korean culture. Although many Korean people do not know a lot about jeons, we have confidence that advertising jeons could have considerable amounts of effect on preserving our identity as Koreans, for jeons are traditional Korean food that has been with us for centuries. As a franchise business dealing with fast Korean traditional foods, it encourages the consumption of healthy, low calorie, but delectable jeons and drinks that foster the interest in Korean culture and in one's health.


Current Status of Fast Foods
As the view of fast foods as junk foods is becoming more widespread among the consumers of many developed nations, demand for junk foods is dwindling. One of the main culprits why fast foods received the notorious name as junk foods is that the foods are devoid of necessary nutrition and vitamins necessary for adolescents. Since they make use of cheap flour soaked with antibiotics, artificial flavors, and saturated fats, it is not even easy for one to recover one's previous physical state due to the yoyo effect. Therefore, so as to cure these problems while suiting the life styles of modern people, there was the need to think of a new type of food which is a jeon.

 

Advances of Jeons

Compared to conventional fast foods, the various ingredients of a jeon provide a nutritionally balanced and healthy diet. Despite its nutritious value, it is as cheap as current fast foods, lessening the burden for ones with financial difficulties. Most ingredients used in jeons prevent cardiovascular diseases which are the number one cause of death of the elderly, therefore we can expand our range of consumers to the elderly who may have been reluctant to consume conventional fast foods. Here are some nutritional values of a jeon’s ingredients:

●        Eggs: provides lecithin and choline of the yolk beneficial for brain development

●        Green onion: relieves tension and prevents adult diseases

●        Chives: purifies blood and liver, and prevents adult diseases and anemia

●        Sesame leaves: prevents accumulation of cholesterol

●        Mushrooms: relieves stress, prevents cancer, and controls blood pressure

●        Galbi: strengthens bones and muscles with copious amounts of vitamin D

●        Oysters: strengthens bones and prevents anemia

●        Duck meat: lowers cholesterol

●        Apricot: intensifies digestive organs and relieves stress with lots of calcium

●        Kimchi: prevents cancer and lowers nicotine

●        Squid: prevents adult diseases and strengthens liver

 

 

 

Possible Concerns over Jeons and the Solutions

1. Although jeons' calories are usually one third of average fast foods, the excessive amounts of calories could still be a problem. It is because some types of jeons like a pumpkin jeon incorporate some amounts of oil during cooking which increases unnecessary calories. However, this concern can be resolved by effective absorption of oil with kitchen towels and fast cooking preventing the jeon from being soaked in oil.

2. Some worry that as the jeon is traditional; the consumers for the demand are limited to the elderly. However, in order to break such stereotype, we are planning to add fused versions of the jeons that suit the tastes of adolescents and adults. Moreover, we are going to add a bit of modern taste in the outfit of the workers and the building's interior while keeping traditional atmosphere.

 

 

Competitor No.1 – Haengbok Jeon

Actually, Korea’s jeon industry is very competitive with each company frequently promoting its specialized features to the consumers. However, among them is a leading jeon restaurant in Korea: Haengbok Jeon.

Haengbok Jeon is famous for its low price. Fees to operate a business under franchise of the restaurant are much lower than those of its rivals. This influences more people to participate in the business, which makes the restaurant one of the fastest growing food business in the country. Moreover, while other jeon restaurants demand high prices for their alleged premium jeon, this restaurant provides folksy ambience with reasonable food prices. The restaurant rejects a somber atmosphere. Instead, it aims for a bright atmosphere where even people with financial burden can enjoy dining. This also provides a solution to the problem regarding time for cooking which had left many restaurants struggling. In contrast to conventional jeon companies’ main marketing tactic of providing consumers with an additional serving of a traditional Korean alcohol called makgeolli in the evening, Haengbok Jeon sets its opening hours from morning till midnight and provides a wide variety of dishes that everybody could enjoy. Its marketing strategy has come true; it has achieved a great success.

 Haegbok Jeon’s cheap price was also a great factor for its success. It offered fine dishes for reasonable prices since professional chefs were not necessary. As the head office provided basic processed ingredients for its affiliated restaurant, proprietors of each restaurant did not need to hire professional chefs. As a result, proprietors were able to offer the dishes at low prices. For instance, there is one of its main menus, a jeon platter, which is nearly half the price of its competitors. Even until today, in spite of its low price, the restaurant provides side dishes such as dongchimi and onion pickles.

 Another reason for its success was its distinct dishes. While its rivals relied wholly on jeons, Haengbok Jeon achieved its success by providing other dishes such as pig trotters, bossams, and galbi. This enabled the restaurant to also attract other consumers who favored such dishes other than jeons.

 

 

Competitor No.2 – Lotteria

There are 1331 Lotteria stores in Korea as of 2016, which ranks top among other Hamburger stores in the country. There are four major tactics Lotteria used in order to lead the industry.

 

1. A wide variety of marketing methods

A. They provided diversity of advertisements according to the each age group. First of all, to appeal there products to the young kids they released their television commercials at the time when the animations or kids programs are being broadcasted. And also, for the young people, based on the idea that they enjoy watching movies very frequently, they used theatre commercials. And for the women they inserted advertisements in a women’s magazine.

B. In order to increase the number of the franchises, allowing the people to approach the opportunity of starting the business more easily, the corporation used a newspaper advertisement.

C. During the initial period of their business, they brought out the coupon which gives a chance to taste their food for free to people.

 

2. The creative trials

A. They wanted to break out the fixed idea that hamburgers must be made in a circle shape. They released a burger named Rib Sand which has a rectangular shape. As a result, it caught the people’s attention at once, and finally, it became the most famous menu of Lotteria.

B. With a home service which gives the customers more convenience by delivering the foods to each member’s home, they not only improved their images but also they increased their profit drastically.

C. They made a first attempt of bringing in a cafe style in the hamburger shop. Since they used coffee beans directly roasted in the country, they can ensure the quality of their coffee. And also they are launching new items that go well with the coffee like waffles, dessert, and so on. It is playing a big role in attracting the customers.

 

3. The market conditions

A. Influenced by the 1988 Summer Olympics and 1986 Asian games which were both held in Seoul and in accordance with the atmosphere of globalization, the taste of Korean public also had changed into a more westernized way. Accordingly, a lot of fast-food stores started to run their companies and also Lotteria entered into this field. So now, competing with McDonald’s, Lotteria has taken the lead in the hamburger field.

 

4. Developing the menus suited to Korean’s tastes

A. Companies such as McDonald's and Burger King, which entered Korea, offered hamburgers to suit the taste of foreigners. Therefore, it was hard to attract the taste of Koreans. So after Lotteria developed a burger that would suit Korean tastes such as Bulgogi Burgers and Bulgalbi Burgers and made it into their main items, it showcased fusion burgers that fuse Western food into these menus.

 

 

Competitor No.3 – McDonald’s

 McDonald’s is the second largest fast food company in Korea, as it holds 448 stores in the country as of 2018. McDonald’s is famous for its entrepreneurship. Here are four types of entrepreneurships; quality, service, cleanliness, and value.

 

1. Quality

A. McDonald’s pursues the best ingredients, strict cooking standards, precautions for safety, and great taste to give pleasure to customers.

 

2. Service

A. McDonald’s pursues fast and kind service to satisfy customers.

 

3. Cleanliness

A. McDonald’s makes all places immaculate and offers nice facilities to gain credibility.

 

4. Value

A. McDonald’s provides high quality food, kind responses, clean facilities and fast services with the customers’ pleasure as the priority.

 

Here are some strategies McDonald’s used so as to be the leading role of the industry.

• By simplifying menus, standardizing all processes, and distributing manuals, they were able to get same taste regardless of places of customers.

• Globalize the products by gathering ideas of chain stores and using fresh ingredients

• Make programs for children

• Impose low royalty for chain stores and expand the network

• Make advertisements considering the company’s brand image

 

Management Strategy

1. New Products and Quality

A. Before the official release of the new menu, a sampling event is held to check customer’s reaction.

B. Get evaluation from the public not only for the taste but the hygienic status of the restaurant.

 

2. Service Strategy

A. Make an agreement with major companies for providing a discount for consumers with credit cards from the affiliated corporations.

B. Offer customers a point card for point accumulation.

C. Customers can use their points for discount.

D. Country music is played in stores for fast table rotation.

E. Occasional surveys will be taken to minimize the leftovers of food, and in case there are leftovers we will keep in the fridge for no more than a day.

F. Put a ventilating device at the exits to eliminate possible smell from the food soaked in the clothes and provide a chance to use tea-scented perfumes.

G. Give a 10% discount for a group of people over 30 individuals.

 

3. Donation Strategy

A. Offer free meals to homeless people at least once a month to formulate an optimistic image of the restaurant, which possibly increase profits. (at the later phase of the business)

 

 

Interiors

The interior is an important factor that can affect a store’s image and in attracting customers. Our restaurant’s main menu is a jeon and we focus on well-being, so we decided to choose the color of green which can give our eyes comfort. Moreover, our business is making a plan to change fast food restaurants into being like cafes. Therefore, to deal with the possible boredom from the peaceful environment, we will make use of entertainments such as magazines, small TVs, and the country songs. We will manufacture modern interior to change the young generation’s view towards jeons. We can put a wall painting, decorate the hall with modern furniture in harmony with the antique cultural food style.