Choosing the correct place to sell your product and selecting the most efficient and effective product distribution method is key to any retailer. With increased competition in the fast food industry it is no wonder fast food retailers are looking beyond the traditional store front and drive through services to reach and attract new customers!
The process of getting your product into the hands of consumers falls under the generally marketing mix category of place or as Quester et al (2004) explain it to be making the right or desired goods or services available at the right locations when consumers want them.
When you think of Red Rooster, you don’t automatically think delivery (I admit my first thoughts are Rooster Rolls or the old commercials advertising the family roast chicken dinner packs). However, Ratnam (2016) suggests Red Rooster has made it’s biggest change and expansion to date – riding on the coattails of other fast food services providing delivery options to their customers – and it has paid off, with Red Rooster senior marketer stating this has not only been a positive move for the company, but has also provided it’s time conscious consumers another option to purchase and consume its much loved products (Ratnam, 2016).
Red Rooster currently operates through a franchising model which Rubin (1978) describes as an agreement between two parties whereby the franchisor (or a parent company) has developed a particular product or service for sale who usually has developed and set successful marketing strategies, and a franchisee who is an individual or firm that pays the franchisor for the rights to sell the product or service in a particular place. Red Rooster, can be further categorised as a business format franchise where a franchisee purchases a tested and effective way in conducting business which comprises of a brand name, consistent advertising and support across multiple locations (Iacobucci, 2014). In the case of Red Rooster, each store is owned by a franchisee who purchases the right to trade under the Red Rooster brand, sell its specific products and benefit from its advertising and marketing campaigns across Australia. By operating through a franchise model, many organisations such as Red Rooster appeal to customers as the brand name propels an expected service level or quality regardless of which store one frequents (Kotler et al, 1983).
Whether a brand operates as a franchise like Red Rooster or a single owned/operated organisation with various retail outlets, selecting the most effective and efficient distribution channel to get products to consumers is vital – but what is a distribution channel and does one size fit all? Quester et al (2004) describes distribution channels as a “series of organisations or individual participating in the flow of products from producer to final user of consumer”. It is important to note that this flow of products can be quite complex (going from manufacturer, to wholesaler, to retailer to finally the consumer) but can also be quite short – from manufacturer to consumer.
In the case of Red Rooster – the company operates through a simple distribution method that goes from the manufacturer (the fast food outlet) directly to the consumer – a method that Quester et al (2004) have identified as a preferred method for many fast food retailers/franchisees. The company also uses a pull strategy to attract customers where organisations use marketing communications and techniques aimed at consumers, in the hope that they will desire and ask for their products. Methods companies use within the pull strategy include offering coupons, price reductions or specials upgrades (would you like to upsize to the large combo for an extra dollar?) and loyalty points.
In terms of Red Rooster – they have long since used a variety of pull strategies to attract customers. In their new bid to attract customers they have and continue to offer coupons, meal deals and more recently specials to attract consumers to utilise their delivery service – such as ordering and getting free meal upgrades when ordering delivery.
With the continued interest in their new delivery service and a continued love of their products – it seems that Red Rooster’s distribution methods are tracking nicely.
Iacobucci, D (2014) Marketing Management (MM4), South-Western, Cengage Learning, Mason.
Kotler, P, Shaw, R, FitzRoy, P and Chandler, P (1983) Marketing in Australia, Prentice-Hall Australia Pty Ltd.
Quester, P. G, McGuiggan, R. L, Perreault, W. D and McCarthy, E. J (2004) Marketing: Creating and Delivering Value, Fourth Edition, McGraw-Hill Australia.
Ratnam, R (2016) Red Rooster’s new delivery service has health organisations concerned, Quest Newspapers, 10 May.
Red Rooster (2016) http://www.redrooster.com.au
Rubin, P (1978) The theory of the firm and the structure of the franchise contract, Journal of Law and Economics, vol. 21, pp. 223-233.
Shopadocket (2016) http:// http://www.shopadocket.com.au/Consumer/red-rooster-coupons
Youtube (2016) http://www.youtube.com.au