Secret Recipe In China A RESEARCH STUDY Marketing Essay

Secret Recipe is the very best restaurant and bakery cafe in Malaysia. The demand keeps growing daily worldwide Secret Formula serves super class home-made wedding cake and pastries.

Western cultures are definitely more preferable to Chinas new technology. Secret Menu can build a very high-quality market in china based on this generation. Key Recipe should be alert of some points when they arrange for strategy. The business should focus on on consumer behavior otherwise there is a huge chance to being neglected in china. Hidden knowledge recipe mast consider Chinese ethnical issues if Secret Formula want success in the market. China has successful GDP progress in recent times. as the china's people's salary is increasing in order that they may go at Secret Menu. Other non-cultural issues contain demographics, geographic, and the service design of the trick Recipe outlets in China. These factors propose huge work at home opportunities. You can find some hostile issues may assault like trojan outbreaks, . In china's great inexpensive growth, there will always be an increased demand for products than there may be supply. food ingredients, which might contain some forbidden chemicals. Secret Formula mast be watchful about their food resource. In order to flourish in penetrating the Chinese language market, the various cultural and financial factors must be studied into account really to cater for the complete market while steering clear of offense to any functions.


The success of the establishment can make the foundation for secret recipe in the Chinese language Market. In Beijing and Shanghai, Key Recipe already founded two of their wall plug secret recipe may broaden their outlets predicated on china's higher development rate and attractive market.

For the growing out of secret recipe, this statement will provide a clearer picture of the prospective country, China, which can help Top secret Recipe, the real reason for this survey is to comprehend the china market for secret recipe

3. 0 Studies & DISCUSSION

Product & Country

China is the world's most populous country with 1. 3 billion people. Due to its huge population, they have got higher rate of food demand. Since it is one of the key basics to make it through.

food consumption growth in China and China will become one of the most effective The surge of China's food use is significantly good monetary prospect and can impact on the world food demand. China's total shelling out for food and drink has significantly increased. This has given Secret Formula a good prospect of business opportunities in choosing China as the target country to invest in.

Since China commenced opening its economy up to the world following the late1970s, a big number of abroad firms have started investing in this country, that includes a rich ancient record (Miller 2004). Hidden knowledge Recipe has chosen franchising as the market access strategy. Franchising is defined as "whenever a shop (franchisee) agrees to make some payment and meet up with the operating requirements of your manufacturer (franchisor), in exchange for the to market the franchisor's goods or services under its brand name" (Boone & Kurtz 1998). Beijing, as China's capital city, is the country's politics, social and international exchange center. Shanghai, as the most significant city, is also the most profitable city in terms of Gross Household Product (GDP) in China. Both Beijing and Shanghai are autonomous municipalities in China, and therefore they benefit from the similar economic and administrative autonomy as a province (Market Profiles on Chinese Places and Provinces - Beijing, 2005).

Targeted Market

Secret formula targeted the working class people and teens. It decides the working class people because of high income among the people of those targeted locations. Chinas younger technology is affected by american culture so secret recipe uses this as a advantages. Prices, distribution programs, and promotion can be used to to crack through the prospective markets successfully.


Culture is considered essential for marketing because it reflects perceptions, social interactions. Culture affects affect the purchasers' decision on the product. However, Secret Recipe must understand the Chinese language culture in driving the consumer's behavior and perceptions. Younger generation may marginally moving towards american but the tradition they need to follow.


Language is the key to enter a country's culture. It performs a essential role in international marketing communications. China has many diverse ethnical groups which converse in their own particular tongue, but yet the majority of the chinese people understand one common words, which is mandarin. Terms important as marketing communication tool in advertising, advertising, public relations, and business negotiations.

Attitudes and Values

The Chinese tend to be more friendly, therefore, word-of-mouth becomes critical because they're able to effect each other in being advantageous to a brandname. Chinese are incredibly concern about the brand so new entrants on the market must contend with giant challengers. For Australians and Europeans, individualism is their value. Person's self-fulfillment and realization of specific potential are genuine. This view contradicts firmly with almost all of the Chinese's views that happen to be wedged in traditional veiw. Creating this secret recipe, it uses Malaysian designer who's already famous among the Chinese. It is important since it helps only never to promote the product but also instruct customer about its quality.

Relationship progress

Chinese has a unique culture which has no common with western or another culture. Business ethnicities of the Chinese are vastly not the same as Western anticipated to Confucius teaching. Secret Menu could start the process of creating good romance with sites of suppliers, retailers, banks, and local government officers. By getting the right romantic relationship always minimize the risks, frustrations, and disappointments when doing business in China. On the hand value and self-esteem is an essential element for the Chinese language business awareness. They are very much related to this two aspect that they call 'ganauxi'(marriage) 'Mianxi'(self-esteem and admiration).

Product adjustment

China is a huge country and it offers different ethnicities with various needs in various places. In the opening, Secret Formula can focus only on counting noodle food in its menu. Noodles are the most popular food among Chinese cause they think 'long noodles' to provide them a 'long life'. Some peculiar details must follow

Prohibited to use knives

Menu should be designed for family size

Chopsticks must be provided

Include meats in the laundry specially 'pork'

Chinese tea is preferred atlanta divorce attorneys meal

Beside this dished up dish should be cleared prior to the next course of meal. So magic formula recipe they also launched Chinese language tea as a new menu in thei list. They implemented almost every guideline of their social conviction.


Subculture is something in the culture, it is a group within the culture with different pieces of behaviors and beliefs that make them a part of a larger culture. It may be recognized by the race, age, category, gender, ethnicity or cosmetic, religious, occupational, politics. China officially recognizes 56 different tribal communities. The greatest group included in this are Han Chinese language, which is approximately 91. 9% of the full total population. The majority non-religious people constitute about 59% of the populace.

However, Buddhists are not allowed to consume meat whereas Muslims are prohibited from consuming pork. So, it has to produce food for the Muslims as well as for the Buddhist. It concentrates to all of the customer for better reputation for itself, which also can gain a competitive advantage on the market.

Economic aspects

Since the overdue 1980's, China brought change and reformed is current economic climate to be an open up current economic climate system. Therefore, it was easy for these to bring a superb achievement and change from a conceptual overall economy to carefully turn into a market oriented current economic climate (MOE). Since that time China started out experiencing its widespread decrease of poverty and on the other hands, its mentionable increase in their revenue periods in the eye of the expansion of World Economy. (Relating to-China Country Review 2006).

Basically, the GDP expansion rate is the expansion of any country's economic situation after considering the inflation result of the particular country. The specific rate of GDP in China was at least 8% in 2000. Alternatively, the for the most part actual GDP progress rate of 9. 3% was come to by China in 2004. It is considered as an indication that China is embracing be richer than previously, which is pointed out in China Country Review- 2006. In order that, these figures come to the thought of the management of Magic formula Recipe they can invest in specific places like Shanghai and Beijing because they are self-directed metropolises with the highest development rate of GDP.

In simple fact, the GDP rate of China acquired arisen with the average rate of 8. 5% from the entire year 2000 to 2004. The swift development in their GDP brought a higher throw-away income rate that provides a higher spending power on the list of folks of China. If shareholders from various countries continue investing in China, it is highly anticipated that the overall economy will keep continuing to enjoy future economy growth which really is a major reason for Secret Recipe to create their manufactured goods in order to benefit from the rising spending craze in China.

China became the World Trade Business (WTO) on the 10th of November in 2001. The admittance to WTO is considered to bring fast advantages to China. Furthermore, long-term improvement on GDP progress will be the result of an effective limitation of the national economy which will profit China's long-lasting economical growth visions regarding to China Country Introduction-2005. Secret Formula is looking to ensure the gains of an infinite GDP growth as higher GDP expansion increases higher throw-away income for higher living criteria.

Other Issues

Demographic segmentation

The first matter that should be considered is demographic segmentation. Demography is defined as "the study of human population in conditions of size, density, location, time, sex while others" (Resource-Kotler et al. 2004). Demographic segmentations are crucial for Secret Menu to regulate its potential marketplace. It must be looked at to target the teens aged from 0 to 14 years old which is 21. 4% of China's whole population (REFERENCE-World Reality Book 2005). Matching to the information, Secret Menu can concentrate more on the wants and likings of its target market.

Geographic segmentation

Geographic segmentation represents the parting of market into various physical components which identifies provinces or foremost metropolitan areas for international marketing. Since the most targeted customers fall season in the medium and higher income classes and who are prepared to spend their income as opposed to the basic needs only, Magic formula Recipe outlet stores will be exposed in urban centers which targets usually Beijing and Shanghai at the beginning. This is basically for the reason that the average revenue levels in the main and large towns are higher set alongside the smaller ones. Hidden knowledge Recipe outlets are also subjective by the infrastructural and travel convenience in this areas of the market. Finally, individuals moving into Beijing and Shanghai are more likely to spend their revenue and willingly to enjoy a better life and also to fulfill their desire insurance agencies dishes at a superior place to keep up with the degree of luxury with upper class individuals.

Design of the Outlet

After designing the target market of Magic formula Recipe and its own prospective consumer's segmentation, Technique Recipe needs to place its products and services to satisfy the consumers' needs. Since, Magic formula Recipe targets the independent men and women' means who will work and young adults. Besides, the interior design of most their outlets needs to have the luxury. Alternatively, it must be well-designed to supply the customers with modern facilities. The comfortable and stylish design of the shops will provide productive result to the clients to feel that they are eating out in a place where they can find the great desire of luxury which satisfies them with their self-esteem as well. It's an responsibility to Secret Menu that the openings will need to have the cleanliness and ensure that the place is hygienic. In the mean time, the openings will be placed in rich places in China. The supervisors employed in Secret Recipe retailers must be trained with severe training to make certain that they are polite to the customers. Since, all the customers have a preference in dining in a location polite waiters and waitress.



1. Brand

Secret Menu has strong term on brand building earlier on by building friendly and easy to remembered logo, corporate and business color, marketing strategies, uniforms, and menu layout. However, the inner design of brand is made very cautiously that can't be copied by the competitors. Their brand offers strength and value on the market which they have enticed more investors and customers.

2. Product

The product which created by Secret Menu in china are in high quality and standard. Furthermore, they can monitor the quality of their product at their restaurant as well as product herb. The merchandise which Secret Formula produced are do-it-yourself cakes, baked sweets, beverages, fusion foods and many more.

3. Marketing

The competitive edge they have is the economies of range that they can reduce their cost and increase the quality with their product. They have different strategies in their marketing plan where they use advertising and marketing through internet, brochures, catalogues, flyers, newspapers and television ad and many others. These are customer oriented that they make cakes and selections during special occasion such as Valentine's Day, Mother's Day while others.

4. Franchised System

They are enabled to access the day form the head office using Franchise. All of the tailored operational systems, purchasing systems, storing, products, service s expectations, marketing and many others have brought simple operations for Magic formula Recipe and reduce the disadvantages.


1. Price

In their costs coverage they consider price differentiation in which they put different charges for middle income and higher income customers. Since, that the lower income customers cannot find the money for their products the level of customers is less and therefore they make less earnings.

2. Staff

The company experience turnover as is regular on the market. Therefore, one of the reasons that the business incurs more cost is the turnover rate and the hiring of new employees and training them.

3. Words Barrier

The employees at Top secret Formula are lacked with the communication skills especially English. This issue creates inefficiency along the way of the company. As in international business the merchandise is produced for everyone internationally, so, the lack of understanding the clients is a huge issue. Therefore, in order for the company to increase it's customers, it will train it's employees the required skills needed.


1. Because of high and increasing demand from the customers the company gets the opportunity to grow their business that means they can open another branch of the same brand. It'll be helpful for them to serve more successfully and effectively. In addition, it increases their profit as well.

2. Even as we mentioned above the business has the chance to serve bigger market and increase their income they can try new things and pamper themselves with small affordable luxuries. Thus they can improve the number of their menu that means product line. So that will helpful for increasing their production and obviously revenue as well.


1. A whole lot of new hotels are increasing in the tourism industry in china. They offered their own bakery and pastries. It really is one of the best threats for the business as the number of the rivals is increasing day by day.

Dangerous Issues


In modern times some diseases like Avian Flu which has caused many visitors to avoid taking poultry. This kind of flu are outbreak in a few elements of the European countries as well as asia as the consumers are afraid to eat chicken fearing that that they might be infected by this kind of flues. To overcome this problem the company should increase their alternatives so that they can keep their existing and potential consumers.

Usage of Banned Chemicals in Food

The market of china is growing very rapidly and will soon resulting in a higher demand for needs than there is certainly supply. So, there may be some scheming manufacturers who will use this opportunity to incorporate some illegitimate chemicals in their products. Thus the banned chemicals are harmful and may cause loss of life to the consumers. Figures shows that in 2001, 146 individuals were reported lifeless and over 15000 were hospitalized because of the chemical found in the food industry (Li2004). And another common problem whereby the manufacturer will sell some of the meals under the name of a favorite brand but is really copy version than it.

Suggestion and Suggestion:

The company should pay extra precaution on the supplies of food substances delivered so as to ensure that the goods they bought are indeed approved by the government's health legislation. They have to increase their product line. Segmenting their customers they may bring efficiency. Proper promotional activities should be controlling out as it is newly got into in the china market. Hey can concentrate on their customers to make them loyal consumers. They must give proper facilities with their potential clients.


In conclusion, there's a very possibility for this company to become successful in china. Now China's overall economy is currently broadening rapidly and can furthermore be boosted. So since China's market is still on the verge of sturdy economic boom. Hidden knowledge Recipe won't stand to reduce from buying China, and will reap long-term gains. However, though attractive the marketplace might seem, it must be known that the Chinese language are incredibly culturally sensitive so Secret Recipe must take into accounts of most aspects of the Chinese language culture and world seriously before proceeding with business. Any success by any means for Secret Recipe in China will very much be based upon these social factors. So the company should give importance to the cultural factors of china.


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