Holy Angel University

School of Business and Accountancy

First Semester, A.Y. 2024 – 2025
Finals

Global Market Expansion Strategy:

Entering a New International Market

Final Project Draft Paper

6356-YINTBUS AND A-331

Group Number 5

Bulaun, Kyannah Ravin D.

David, Angelica Mae D.
Dizon, Hosanna Eunice G.
Manankil, Tyra Katryn C.
Manlapaz, Micaella Nicole T.
Quioc, Mike Reniel B.

Prof. Joy Anne Evaristo

October 12, 2024

 TABLE OF CONTENTS

I. COMPANY AND MARKET ASSIGNMENT………………………………………. 2

A. Company Overview
B. Market Research
II. GLOBALIZATION AND REGIONAL INTEGRATION ANALYSIS……………2
A. Impact of Globalization
B. Regional Integration Impact
III. INTERNATIONAL ENVIRONMENT ANALYSIS……………………………….4
A. PESTEL Analysis
B. Cultural Analysis
C. Legal and Regulatory Considerations
IV. MARKET ENTRY STRATEGY………………………………………………….….9
A. Entry Mode
V. GLOBAL MARKETING STRATEGY………………………………………………10
A. Target Market Identification
B. Positioning Statement
C. Marketing Mix (4ps)
VII. REFERENCES………………………………………………………………………24

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 I. COMPANY AND MARKET ASSIGNMENT
A. Company Overview
Chowking is renowned as the Philippines’ leading Chinese fast food restaurant,
offering a fusion of Chinese and Filipino flavors. It serves a diverse menu including noodles, dim
sum, rice meals, and other Chinese-inspired dishes. Founded in 1985 by Robert Kuan in Rotary
Arcade, Makati, it has now branched out in different countries across the globe. In the
Philippines, chowking has expanded all throughout the country with over 500 stores, serving a
loyal customer base. It has also established its market presence with 617 stores across the globe
in regions such as the United States, the Middle East, and Southeast Asia, but has yet to enter the
mainland Chinese market (Chowking, n.d.).

B. Market Research
Chowking has been a part of almost everyone’s childhood. Their Chinese-style fried
chicken that children always crave, the Wonton Soup that suits the taste of many adults, and of
course, their proud stir-fried rice or what we call the “Chao Fan” that has left an impactful
presence in the fast-food market chains. There is no doubt why Chowking has been established
for almost four decades already.
The company was established primarily to cater to a unique blend of Chinese and
Filipino cuisines, from a budget-friendly fried rice partnered with shanghai to a pancit canton
seasoned by calamansi. This presents an opportunity to enter the Chinese market as its core
elements are deeply rooted in the country’s culinary traditions such as rice, noodles, and dim
sum. At the same time, the Chinese market offers a large consumer base. China’s fast-food
market is among the largest in the world, demonstrating a continuing upward growth
trajectory. According to Interesse (2023), in 2023, the market size of China’s fast-food industry
is estimated to reach RMB 3,687.8 billion or 536.33 billion US dollars. Additionally, one of the
reasons for the rise of local chains is the growing preference among Chinese consumers for food
that is more reflective of their culture and tastes. Given Chowking’s specialization in their
chinese-inspired menu, it is easier for the brand to adapt and align their strategies to the potential
market. However, upon entering a new battlefield, it is essential that one should not lose its
primary spear, as in Chowking’s case, the hint of Filipino spice in every culturally-inspired dish.
After all, culture is just a part of the game; it does not determine its end, but a means to an end.

II. GLOBALIZATION AND REGIONAL INTEGRATION ANALYSIS

A. Impact of Globalization
Globalization always sets up winners and losers. For Chowking, a leading fast-food
chain, the issue of expansion into international markets brings forth a question: Will it succeed in
entering the Chinese market and standing among other global leaders like McDonald's and KFC?
Globalization, now characterized by interdependence and interconnectedness of cultures
and economies, has made dependent nations become dynamic states. Although the pandemic and
intensified domestic competition present some challenges to that growth, quick-service

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restaurant chains continued expanding well in the Philippines. Jollibee, McDonald's,
Chowking, Greenwich Pizza, and KFC dominate the local market with the Philippine
foodservice market reaching $31.47 billion by 2029 (Philippines Foodservice Market Size |
Mordor Intelligence, n.d.), which presents a great opportunity for large operators to diversify
their customer base into new geographies.
Concurrently, going global also poses challenges. According to Chow (2019), the
fast-food industry's internationalization has brought many health-alarming problems, like
naturally produced foods treated as subsidiaries and unhealthy diets characterized by excessive
sodium, fat, and highly processed ingredients. How would Chowking respond to this?
Created in 1985 in a small store of Makati, Chowking has spread to as many places
worldwide, with a store count of 571 distributed across the country and 48 international outlets
with 20 in the U.A.E., 15 in the U.S., four in Qatar, two in Oman, four in Kuwait, and three in
Saudi Arabia as of December 2020 (Gutierrez, 2023). Such reduction or removal of several
trade barriers made by globalization has helped Chowking in its international operations,
opening the doors to new market entrants while gaining cost-effective global supply chains.
However, foreign market entry raises competition levels. Chowking faces tremendous
pressure not only from local homegrown competitors but also from global brands including
McDonald's and KFC. For its part, Chowking managed to stand out by innovating on menu
options, branding, and customer experience, keeping on adapting to competitive forces from
both local and global players. Consequently, it invested almost ₱50 million into its service to
register its hotline, 9-8888, and partnered with Ventus, a respected call center company
customer service. It also teams up with delivering platforms such as Grab and Foodpanda to
ensure comfort in enjoying a favorite dish in the confines of a home.
Globalization has driven Chowking's international expansion in the fast-food industry
while increasing competition and opportunities at the same time through modern technology and
global supply chains. Interconnectivity of a market into which Chowking ventures relies heavily
on how its ability to seize opportunities and turn challenges into advantage at being competitive
works out - only Chowking can tell if it would be globalization winner or loser.

B. Regional Integration Impact

In an article by World Bank Group (2019), a regional integration agreement is
explained as facilitating the low-cost flow of trade, capital, energy, people, and ideas from one
country to another. These trade and economic integration agreements are important in paving the
way for Chowking to enter China. Regional Comprehensive Economic Partnership (RCEP),
ASEAN - China Free Trade Area (ACFTA), and Asia-Pacific Economic Cooperation (APEC)
can have significant implications for Chowking’s market entry into China.
In 2002, the ASEAN-China Free Trade Area (ACFTA) was established legally when
China and the ASEAN countries signed the Framework Agreement on Comprehensive
Economic Cooperation (ASEAN Secretariat, 2021). For a broader agreement that has the same
goal as ACFTA, in 2022, the Regional Comprehensive Economic Partnership (RCEP)

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investment contract was established, which is the largest trade and investment partnership in the
world. The ten countries that make up the RCEP are members of the Association of Southeast
Asian Nations (ASEAN) along with five of its principal trading partners, namely Australia,
China, Japan, South Korea, and New Zealand (Racela & Tan, 2022).
For the benefits, RCEP and ACFTA focused on reducing tariffs among member
countries, which benefits Chowking’s lower cost for the importation of raw materials, helping it
to offer competitive pricing. Another, due to trade rules and streamlining harmonization of RCEP
and ACFTA, there would be a reduction in delays for the importation, which would improve
supply chain logistics. Lastly, this helps Chowking to connect with suppliers, distributors, and
logistics providers in the Asia Pacific region, helping with its operational improvements in
China. Unfortunately, since it is open to all 15 countries with reduced trade barriers, as
Chowking enters the country, it may encounter high competition from regional players, such as
established food chains. Besides that, it will also be obliged to meet the food safety, labor, and
environment standards of China, which are not addressed in this agreement.

III. INTERNATIONAL ENVIRONMENT ANALYSIS

A. PESTEL Analysis

Illustration I: Summary of Market influences affecting the PESTEL environment

Political Factors
Strengths: Chowking's potential expansion into China is influenced by the country's
political framework, which is defined by centralized control under the Communist Party
(Maizlan & Albert, 2022). China’s centralized government ensures political stability,
creating a predictable business environment that favors companies like Chowking. This

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 stability allows for long-term strategic planning without the fear of sudden political
disruption. In addition, China’s commitment to economic reform and market openness
has successfully attracted foreign investments, as seen with McDonald's entry into the
Chinese fast-food sector. With that, policies that encourage foreign direct investment (FDI),
such as tax incentives and the establishment of Free Trade Zones (FTZs) in cities like
Shanghai, further reduce regulatory barriers. Chowking can leverage these advantages for a
smoother market entry.
Weakness: Navigating China's regulatory environment can be complex for Chowking,
despite government support for foreign investment. The chain may face challenges with
food safety standards, health regulations, and local sourcing. Leadership changes can also
impact business laws, such as revising economic policies or trade regulations. Geopolitical
tensions, like territorial disputes, could create uncertainties or backlash against Filipino
brands. To mitigate these risks, Chowking should conduct thorough market research, consult
local legal experts, and build relationships with local government units. Focusing on
community engagement and corporate social responsibility can further boost brand
acceptance and resilience.

Economic Factors
Strengths: China, as one of the leading powerhouses of global economic growth, presents
a valuable opportunity for Chowking’s expansion. With over 1.4 billion residents
(Worldometer, 2024), and a growing middle class, disposable incomes are rising, leading
more consumers to dine out and explore diverse food options. This economic momentum
translates into a vast potential customer base that Chowking can leverage effectively.
Weakness: Chowking faces a significant challenge in China due to the country's uneven
regional economic development, which results in varying income levels and purchasing
power between urban centers and rural regions. Furthermore, fluctuations in the Chinese
Yuan (RMB) could affect profitability, especially if Chowking depends on imported raw
materials or experiences exchange rate changes. To tackle these issues, Chowking could
pursue a regional market entry strategy, starting with Tier 1 and Tier 2 cities that have higher
purchasing power, and then gradually expanding to other areas as brand awareness grows.
Additionally, adopting a pricing strategy that aligns with local economic conditions would
help strengthen its competitive position and enhance profitability.

Social Factors
Strengths: China’s social landscape is influenced by its cultural diversity, varied regional
food preferences, and evolving consumer behaviors. An emerging trend among younger
Chinese consumers is a growing openness to international cuisines, along with a
preference for convenience and quick-service dining that is popular on social media (Lu,
2024). This shift presents an opportunity for Chowking to position itself as a provider of
premium Asian-inspired fast food that suits local tastes.

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 Weakness: Chowking faces the challenge of navigating China’s extensive regional
variations in culinary preferences; some areas may enthusiastically welcome its menu,
while others might not find it as appealing. To effectively tackle these social differences,
Chowking should think about customizing its offerings to incorporate regional favorites or
flavors that resonate with local consumers. By adding specific dishes that align with regional
tastes while maintaining its signature menu items, Chowking can strengthen its connections
with local customers and set itself apart from competitors.

Technological Factors
Strengths: According to McKinsey Global Institute (2017), China stands at the forefront of
technological innovation, particularly in areas such as digital payments, e-commerce, and
logistics. This technological landscape offers Chowking an opportunity to leverage digital
channels for its marketing, sales, and customer engagement initiatives. The widespread
adoption of delivery apps like Meituan and Ele.me, along with popular social media
platforms such as WeChat and Douyin (TikTok), allows Chowking to execute
online-to-offline (O2O) strategies and interact with customers through digital platforms. By
capitalizing on this technological edge, Chowking can streamline operations, ensure smooth
ordering and delivery experiences, and connect with customers through targeted digital
marketing campaigns.
Weakness: The rapid pace of technological change poses challenges, as continuous
investment in technology is necessary to maintain competitiveness, especially when new
digital trends emerge. To navigate this, Chowking could pursue technology partnerships and
adopt flexible digital strategies that allow for a flexible approach to shifts in consumer
behavior and technological developments.

Environmental Factors
Strengths: Chowking's potential entry into the Chinese market is shaped by the country's
strict environmental regulations and growing awareness of sustainability (Cheung,
2021). A significant advantage lies in the heightened consumer emphasis on environmental
concerns and government efforts to minimize pollution and encourage sustainable practices.
This creates an opportunity for Chowking to establish itself as an environmentally
responsible brand, improving its reputation and attracting socially conscious consumers. By
adopting sustainable practices like responsible sourcing, reducing waste, and using
eco-friendly packaging, Chowking can align with governmental goals and draw in
environmentally aware customers.
Weakness: Despite its strengths, Chowking faces challenges in expanding due to strict
environmental regulations, which may raise operational costs, especially during the initial
market entry phase. The complexity of these regulations can also make compliance difficult
for a foreign brand, increasing the risk of fines or reputational harm. To address these issues,
Chowking should thoroughly evaluate local environmental regulations to ensure compliance

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 and identify best practices for waste management. Also, by investing in eco-friendly
technologies, Chowking can enhance operational efficiency, achieve long-term cost savings,
and establish a strong market presence while promoting responsible business practices that
resonate with consumers and regulators.

Legal Factors
Strengths: A major advantage is the well-established regulatory system that governs
foreign investments, food safety, labor, and business operations, providing foreign
companies like Chowking with clear guidelines for market entry. Additionally, as (World
Intellectual Property Organization, 2019) states, China has made notable improvements in
protecting intellectual property (IP), allowing Chowking to better safeguard its brand and
prevent infringement. Furthermore, foreign businesses benefit from legal protections
through agreements that ensure fair treatment and provide access to legal channels in case of
disputes.
Weakness: Chowking faces challenges in China due to bureaucratic delays, inconsistent
law enforcement at the regional level, and complex labor regulations that could increase
costs. Vague restrictions on foreign ownership in certain sectors may also limit expansion
opportunities. To address these issues, Chowking should collaborate with local legal experts
to ensure compliance to navigate bureaucracy and labor laws. By doing so, and securing its
intellectual property, Chowking can strengthen its position and minimize risks in the
Chinese market.

B. Cultural Analysis
Chowking is one of the leading fast-food chains in the Philippines for which the cuisines
of China and the Philippines have been combined. As any company expands into a new country,
it becomes crucial that it examines cultural differences according to frameworks such as
Hofstede's cultural dimensions.
● Collectivist Society
China is low in individualism, which means it is collectivist. People give more
importance to the harmony of the group they are part of, the loyalty of the people around them,
and their family connections rather than the fulfillment of personal desires and wishes (Lai,
2022). For Chowking, this cultural aspect implies that it should emphasize family-oriented
dining experiences, group promotions, and meals for shared consumption. Marketing strategies
can be designed for the collective love of food and should project Chowking as a place where
people can meet together socially.
● High Power Distance
China scores high in power distance, meaning it is more tolerant of hierarchical order and
inequality in the distribution of power. This might suggest that decisions in China are mostly left
to the higher authorities and that employees avoid questioning their superiors (Lihua, 2017).
Chowking should organize activities in China with due respect for this hierarchy, both within

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management and customer relations. This could be a focus on respect for authority in marketing
messages, such as referencing traditional values or respect for elders, to which consumers may
relate.
● Male Dominated Society
China is a relatively masculine society that highly values success, competition, and
achievement (Mujica, 2022). This may indicate that Chinese consumers are quite receptive to
marketing campaigns that discuss Chowking's success and achievements, such as awards,
growth, or high standards. Also, price-competitive strategies or positioning Chowking as a
quality and successful brand can attract more customers.
● Low Uncertainty Avoidance
China belongs to a relatively low uncertainty avoidance, hence it handles ambiguity
relatively well besides being open to new ideas (Lai, 2022). This points out a cultural advantage
for Chowking: "Chinese consumers are potentially more receptive to trying foreign or fusion
food items." With this, Chowking can take more advantage of it by offering and up-selling novel
unique variations of menu items with a mix of Chinese or Filipino flavors appealing to their
openness to novelty and innovation.
● Long Term Orientation
Long-term orientation is high in China, meaning that the society values persistence, thrift,
and adapting its traditions to modern contexts (Zimmermann, 2022). This would imply that
Chowking should aim more for its commitment to being long-term in the Chinese market by
appealing to its people with sustainable growth and consistent quality. This suggests focusing
marketing efforts on those areas likely to appeal to traditional values but promising modern
innovations. It could include traditional Chinese ingredients or methods of cooking on the menu
as a sign of respect, yet with a twist, to Chinese food culture.

C. Legal and Regulatory Considerations

Entering into a new market also means the ‘getting to know’ stage for businesses to
familiarize themselves with the do’s and don’ts in a particular country. When expanding the
business to new regions within China, it is important to consider whether Chowking should
register a new branch in that location, or set up a new entity. To start and establish a
food-producing factory in China, the company needs to register as a production enterprise in the
form of a Wholly Foreign Owned Enterprise (WFOE or WOFE) or Joint Venture (JV) to be
able to register the business registration license. To retain full control over its operations,
management, and profits, the WFOE structure is beneficial for brands like Chowking, which
wants to maintain operational consistency and autonomy separate from a local Chinese entity.
Although a WFOE set-up offers full foreign control, it is also appropriate to consider forming a
Joint Venture (JV) with local businesses for more reliant navigation of the new cultural
environment and government regulations needed for the market entry. However, while a Joint
Venture provides a ‘helping hand’ for a new business abroad, it also introduces complexities with
decision-making and profit-sharing for the entity (Joint Ventures and Strategic Alliances, 2016).

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 Moreover, the updated Food Safety Law of China in 2021 states the general rules for
businesses that want to conduct a food business in the given country. In addition, the Law
provides for obligations and licensing requirements for food producers and business operators
(Food Safety Law (2021), 2023). China’s Food Safety Law requires businesses to meet stringent
standards for food quality, handling, and preparation. Violations can lead to penalties, including
closure of the business.
Another important factor to consider is the employee labor laws in China. Two primary
sources of employment law instituted by the central government are the Labor Law (1995) and
the Labor Contract Law (2008). The Labor Law defines the rights and obligations of both
parties and protects the legitimate rights and interests of workers while the Labor Contract Law
was adopted to ensure efficient implementation of the employment rules and principles
mentioned in the labor law. These mandates that Chowking must provide employees with written
contracts, adhere with the minimum wage standards provided by the law, and comply with social
insurance requirements for their employees (Huang, n.d.).
Here in the Philippines, as stated in Idian et al. (2022), counter service restaurants like
Jollibee and Chowking take responsibility in waste management very seriously, in full support
and compliance to the Ecological Solid Waste Management Act. This just suggests that as much
as Chowking is following strict compliance in the Philippines, as they start business in China,
they must also adhere to the stringent rules thereof including the China's Environmental
Protection Law amended in 2014, Solid Waste Pollution Prevention and Control Law, and
the Plastic Waste Management Plan of 2020 which limits the use of single-use plastics in
industries, particularly in food service like Chowking. This regulation would affect Chowking’s
packaging materials, requiring the use of biodegradable or recyclable options for their products.
Lastly, as the food and beverage industry is also a highly regulated sector in Chinese law,
compliance with business license registration with the State Administration for Market
Regulation (SAMR) is required, it is also important to ensure comprehensive IP protection in
order to protect brand and product reputation amongst Chinese consumers (Intellectual Property
Protection in the Food & Beverages Industry in China, 2016). China primarily follows a
"first-to-file" rule for IP registration, which means that the first entity or individual to register
IP rights to the China National Intellectual Property Administration (CNIPA) will hold those
rights exclusively, regardless of the original user, with limited exceptions (Chen, 2020).

IV. MARKET ENTRY STRATEGY

A. Entry Mode
Chowking’s market entry through a joint venture constitutes a strategic move for the
company to take into account the specific characteristics of the complex Chinese food landscape.
The fast-food industry in China is extremely competitive, with over worth $210 billion and is
expanding with a rate of growth of roughly 8.5% annually (Wang et al., 2016). Here, global
companies such as KFC and McDonald’s and locals like Dicos and Haidilao dominate the fast
food industry. In addition, according to the National Bureau of Economic Research, after nine

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 years of the implementation of an international joint venture agreement, the overall efficiency of
joint ventures may increase by 29%, while the efficiency of Chinese partners may increase by
9% on average (Forging Partnerships: Navigating Joint Ventures in China, 2023).
Joint venture can be defined as the partnership between two or more companies, from
different countries at most, where they combine their resources, experience and capability
towards the achievement of common objectives. The factors such as economic conditions,
political regulations and cultural differences in China make joint ventures a suitable method of
globalization (Joint Ventures in China: Pros, Cons, and Best Practices for Successful
Partnership, 2023). In a joint venture, the company can respond to the regional preferences
within China, whether it is in Shanghai, Guangzhou or even in other Chinese cities and this will
help to ensure that the menu positions its offerings to fit local consumer behavior and
expectations.
One example of a similar strategy from the Philippines is Jollibee Foods Corporation
(JFC), the parent company of Chowking itself. Jollibee began its operations in China through
a joint venture after it bought a controlling 55% stake in Guangxi San Pin Wang Food and
Beverage Management Company in 2010 (Sunnexdesk, 2010). The venture was also
advantageous to Jollibee in a way that the local partner can provide the company a good entry
point in China. With the help of local partners, JFC has adapted its portfolio to the Chinese
market while its partners provide local expertise and efficient operations.
Given Jollibee Foods Corporation’s prior experience in successfully entering the
Chinese market through strategic joint ventures, Chowking can leverage this knowledge and
expertise to facilitate its own entry into China. By building on Jollibee’s proven approach and
understanding of local market dynamics, Chowking can position itself for a smoother and more
informed expansion. For Chowking, this mode of market entry yields a balance between
leverage and local insights, providing a company a strong opportunity to successfully
compete in China’s vast, lucrative market.

V. GLOBAL MARKETING STRATEGY

A. Target Market Identification
a. Urban Young Professionals
URBAN YOUNG PROFESSIONALS

Demographic Geographic Psychographic Behavioral

Characteristics Characteristics Characteristics Characteristics

● Age: 22 to 35 ● Location: Tier ● Lifestyle: ● Spending Patterns:

● Gender: Both male 1 and Tier 2 Ambitious, Willing to spend on
and female, cities like career-driven, and luxury items, fashion,
depending on city Beijing, status-conscious. technology, and
and profession. Shanghai, experiences.

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● Education: Highly Guangzhou, and ● Values: Value ● Brand Loyalty: Less
educated; holding Shenzhen. success, loyal to specific
bachelor’s or ● Urbanization: convenience, and brands; prefer
master’s degrees. Reside in modern lifestyles. experimenting with
● Income: Middle to densely ● Interests: new products and
high income; higher populated; high Technology, social services (Javanian,
than national levels of media, health, 2024).
averages. infrastructure. fitness, and travel. ● Consumption
● Occupation: Mostly ● Mobility: ● Attitudes: Habits: Prefer
white-collar jobs. Frequently Optimistic about convenience and
● Marital Status: travel for work. their future but efficiency due to busy
Mostly single or under pressure to schedules; frequently
newly married; may balance work and use mobile apps for
be delaying personal life; food delivery,
marriage for career sustainability and e-commerce, and
reasons. convenience. ride-sharing.
● Media Usage: Heavy
users of social media
platforms; heavily
influenced by online
reviews and
influencers.

At present, the majority of Chinese fast-food consumers are young adults in the age
bracket of 25-34 years, accounting for 44% of the market share (Ai, 2023). These groups are
referred to as young urban professionals, as most are young, educated, and employed in Tier 1
cities including Beijing and Shanghai, or rapidly growing Tier 2 cities such as Chengdu and
Hangzhou, and account for 44% of the market (Ai, 2023). With middle to upper-middle-class
income, around 114,000 yuan annually, these professionals can afford to eat out often.

They are probably workaholics who want easy accessibility, variety, and convenience
while dining. Many more also use food delivery services to fit meals into their already crowded
lifestyles. In 2021, 43.6% of China's users of food delivery services belonged to the age group
26-35 years, which is the critical group in the food delivery market. Platforms like Meituan
Waimai and Ele.me are capitalizing on such a demand by offering choices for different meals to
be delivered into homes and offices, further advancing the value of convenience for these
professionals.

b. Families

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 FAMILIES

Demographic Geographic Psychographic Behavioral

Characteristics Characteristics Characteristics Characteristics

● Age: Parents in ● Location: Urban ● Values: ● Purchase

their 30s and 40s, areas, particularly Tier Education as a behavior:
with children aged 1 and Tier 2 cities top priority, Research-oriented,
0-18. (Beijing, Shanghai, emphasis on influenced by
● Income: Middle to Guangzhou, children's future online reviews and
upper-class Shenzhen, etc.). success. recommendations.
families with ● Urban areas: ● Lifestyle: ● Brand loyalty:
disposable income Concentration in Health-consciou Strong brand
for education and developed cities with s, seeking preference for
lifestyle products. higher education quality products trusted brands,
institutions and better and services for especially in
job opportunities. their families. categories like
● Regional variations: ● Attitudes: Open education and
Differences in to foreign baby products.
consumer preferences brands, but ● Shopping habits:
and purchasing power prioritize trust Omni-channel
across regions. and reputation. shoppers, using
both online and
offline channels.

Focusing on the target market for families in China, according to Chen and Li (2023),
parents are generally in the age group of 30s and 40s while children are mostly aged 0-18 in
young families. These are mainly middle to upper-class families located in urban areas,
particularly Tier 1 and Tier 2 cities such as Beijing, Shanghai, Guangzhou, and Shenzhen with
disposable income for education and lifestyle products as they prioritize education in their family
backgrounds (Liu & Zhao, 2021). There are also concentrations of this demographic segment in
developed cities with higher institutions and better job opportunities. However, regional
variations exist, influencing consumer preferences and purchasing power.

Psychographically, these families place a strong emphasis on education and the future
success of their children, as discussed earlier. They are health-conscious, seeking quality
products and services for their families (Zhang & Wang, 2023). While they are open to foreign
brands, trust and reputation are key factors in their purchasing decisions because Chinese
people value their culture as their own and the need to gain their trust is essential for doing
business abroad. Behaviorally, these consumers are research-oriented, relying heavily on online

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 reviews and recommendations before making purchases. They also exhibit strong brand loyalty,
especially toward trusted brands in sectors like education and baby products, and they prefer
omni-channel shopping, using both online and offline channels (Wang & Zhang, 2022).

c. Students
STUDENTS

Demographic Geographic Psychographic Behavioral

Characteristics Characteristics Characteristics Characteristics

● Age: Primarily ● Urban areas: Tier ● Values: Values ● Purchase behavior:

18-24 years old. 1 cities such as educational Easily influenced by
● Education Beijing, Shanghai, attainment, career peers, always check
level: Most Guangzhou, and advancement, and online reviews, and
students Shenzhen with personal growth. social media.
attending close proximity to ● Lifestyle: More ● Brand loyalty: Less
universities and universities and tech-savvy and brand-loyal compared
higher colleges. mobile phone to families, but value
educational ● Regional reliant than elders. quality and
institutions variations: Active on social affordability.
pursuing Differences in media and ● Shopping habits:
undergraduate student trend-conscious. Primarily online
and postgraduate preferences and ● Attitudes: Open to shoppers, using
degrees. behaviors across new experiences e-commerce platforms
regions. and brands, but and social media. Also
more use delivery options
price-sensitive than for food needs.
working adults.

In China, education is an important investment and the natives of the country are
characterized by a high literacy rate, with most students attending universities and higher
educational institutions pursuing undergraduate and postgraduate degrees. These individuals
primarily consist of students aged between 18 and 24. Moreover, in recent years, there is an
increasing number of international students that have also become part of the student population
in China, making the demographic segment of the Chinese market more diverse for different
cultures. On the other hand, top universities and educational institutions are located in urban
centers, particularly in Tier 1 cities such as Beijing, Shanghai, Guangzhou, and Shenzhen (Chen
& Li, 2022).

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 Furthermore, Chinese students tend to be more accepting of foreign brands and global
food trends, due to their reliance on social media and different mobile applications. In their
everyday life, online shopping and social media engagement is common among students and
they also use platforms such as Meituan and Ele.me for their food delivery needs. This makes
the businesses in China more receptive in considering the students at this age in improving their
delivery options (Chen & Li, 2023). Many students also frequently dine out, especially at
quick-service restaurants, due to their busy academic schedules and the need for convenient and
affordable meals. At the same time, they tend to be price-sensitive, looking into discounts,
promotions, and combo deals before placing their orders. Brand loyalty in this demographic is
influenced by peer recommendations, social media presence, and online reviews, which play
a crucial role in their decision-making process (Xu & Yang, 2019).

d. Elderly
ELDERLY

Demographic Geographic Psychographic Behavioral

Characteristics Characteristics Characteristics Characteristics

● Age: 60 years old ● Location: Split ● Lifestyle: Value ● Spending Patterns:

and above. between urban tradition, family, Spend mainly on
● Gender: Includes and rural areas. and stability; necessities; splurge on
both men and ● Mobility: focus on health-related
women; larger Lower mobility maintaining products and services.
percentage of elderly compared to health and ● Brand Loyalty: More
women due to longer young staying loyal to familiar
life expectancy; professionals, connected with brands; less
female with 80.5 but urban elders their families. experimental
years old, and male might have ● Values: compared to younger
with 74.7 (Life access to better Prioritize health, segments.
Expectancy in China, transportation security, and ● Consumption
n.d.). networks. family Habits: Tend to shop
● Income: Low to well-being; more locally, though more
middle income, conservative in urban elders are
mostly reliant on their values and starting to use online
pensions or family spending. shopping platforms for
support. ● Interests: convenience; lean
● Occupation: Mostly Traditional towards traditional
retired or activities, such as Chinese cuisine,
semi-retired. mahjong, tai chi, focusing on balanced
sword dancing and nutritious meals.

14
● Marital Status: and gardening ● Media Usage:
Predominantly (Yang et al., Moderate media users,
married, but there is a 2022); adopting with increasing
growing proportion technology for adoption of
of widowed or living socializing and smartphones and apps
independently due to shopping. like WeChat for
longer life spans. ● Attitudes: communication.
Cautious about However, they still
trying new engage with
things, with a traditional media like
focus on television and radio.
frugality and
careful spending.

According to De Guzman and Ewe (2024), China had nearly 297 million residents aged
60 and above, which shares about 21.1% of the total population as of 2023, classifying it as "a
super-aged society" by World Bank standards. Aging populations could be mostly found in
Tier 1 cities, including Beijing, Shanghai, or Guangzhou, and Tier 2 cities like Chengdu and
Hangzhou. Most elderly people in the towns have gained retirement benefits owing to the
economic progression of China, but cost still becomes relevant for migrant workers who may
only get benefits equivalent to as low as 25 dollars compared to a minimum monthly pension of
urban retired employees amounting to 470 dollars (Kelter, 2024).

From a psychographic point of view, health and wellness are very paramount to elderly
people. According to research, they tend towards foods with a high level of nutrient content,
well-balanced, and low sodium content. They prefer this mode as it generally contributes to
health rather than convenience (Peura-Kapanen et al., 2017). Older individuals like to venture
out and visit especially restaurants that have comfortable seating, a relaxed atmosphere, and a
slow pace of dining behavior. Historically, the older generation was not so dependent on meal
deliveries, but forced by the pandemic and wide-scale digitization, it has now reverted to ways of
ordering meal delivery through services such as Meituan Waimai and Ele.me.

B. Positioning and Branding

Positioning Statement
“For ambitious urban young professionals, health-conscious families, dynamic students,
and the tradition-respecting elderly in China, Chowking offers a unique blend of fast, affordable,
and flavorful Chinese and Filipino cuisine. We provide not only a quick and convenient dining
experience but also the warmth of a shared meal that connects modern lifestyles with authentic,
time-honored flavors. Whether navigating a busy workday or spending quality time with loved
ones, Chowking delivers comfort, variety, and quality for every meal.”

15
Branding and Messaging Adaptations

Specific strategies are needed to adapt Chowking’s branding and messaging to target
audiences. First, for urban young professionals, the focus should be on convenience, variety,
and tech-driven accessibility, emphasizing quick, high-quality meals that suit their lifestyle.
Leveraging popular food delivery platforms like Meituan Waimai and Ele.me, Chowking can
develop meal combos tailored for lunch or dinner after work, providing filling yet reasonably
priced options. Messaging should highlight efficiency, innovation, and professionalism in
service.

Second, for families, the messaging should center around Chowking’s family-friendly
appeal, promoting healthy and nutritious meals that align with parents’ concerns about
providing quality food for their children. The emphasis on trust and reputation, supported by
the use of fresh ingredients, would further build credibility.

Third, in targeting students, the focus should be on affordability and convenience,

promoting discounts, special promotions, and student meal deals that align with their price
sensitivity. Highlighting quick-service options and delivery would resonate well with their busy
academic schedules.

Lastly, for the elderly, the messaging should emphasize the nutritional value of the
meals and traditional Chinese flavors, subtly introducing Filipino elements that complement
Chinese cuisine. Chowking should provide comfortable seating areas and slower-paced dining
experiences while offering health-conscious menu items like low-sodium and balanced options.
Advertising through traditional media like TV and radio, along with promoting easy-to-use
delivery services, would make Chowking more accessible to the elderly population.

C. Marketing Mix (4Ps)

I. Product
To successfully enter the Chinese market, Chowking would need a glocalization
strategy—a balanced approach of product adaptation and selective standardization to appeal to
its target segments.

A. Menu adaptation
Both the Filipino and Chinese have rice as one of the essential foods, but the taste and
ways of cooking differ greatly. In China, regional flavors are a part of the food culture, thus,
localized rice offerings would be necessary. Chowking could come up with fried rice specialties
of choice regions such as lotus root, preserved vegetables or sauces derived from soy as
known in China. Also, offering congee – a type of rice porridge – would take advantage of the

16
Chinese penchant for warm breakfasts most especially among the elderly. Generally, congee
could complement with varieties of toppings including century egg, pork or preserved vegetables
in conformity to Chinese breakfast (Lin, 2024).

Chowking already has noodles in its menu but will have to adapt more for the regional
differences in China when it comes to noodles. Chowking could introduce hand pulled noodles
or Sichuan style spicy noodles that are very popular especially with the youth, students and
young working people. It would be reasonable to provide different types and varieties of
broth, including hot and spicy ones or sour ones, since hot and spicy food is preferred in
provinces (Ho, 2024). A fast-food noodle bowl that consumers can build themselves by
choosing the type of broth, protein (beef, pork or tofu) and vegetables would also address the
consumers’ needs of wanting to create their own meals.

In addition, dim sum and dumplings which are very central to Chinese dining and
Chowking could include aozi steamed buns, pork dumplings, shrimp siu mai and other dim sum
offers. These items, which could be sold as snacks or ingredients of combo meals, would be
most suitable to families and elderly people, who love to share meals. Furthermore, dim sum
meals would also fit well in that tradition of yum cha, which is a practice of eating tea alongside
small dim sum portions during breakfast or lunch (McNamee, 2024).

However, retaining signature dishes such as Lao Mien (Filipino-Chinese noodles),

Asado Siopao (Steamed buns with familiar fillings), or Halo-halo (a famous Filipino dessert)
but with little adjustments to match local taste preferences can be an exciting twist and offer a
unique experience for Chinese consumers.

B. Portion sizes
For families, the large, portioned meals which are common in the society due to sharing
would be in line with a rice/noodle/platter of protein type dishes. Urban young professionals and
students would prefer the two parts as smaller, quick-serve, options such as bento box or
combo meals are convenient and pocket friendly. Further, lighter portions with options of health
wise food for the elderly people will mean that they are offered small portions of soups and
steamed foods.

C. Beverage customization
Chowking could adapt to popular local drinks such as milk tea, fruit tea, and herbal
drinks which are closer to the hearts of young working class people and students. For instance,
seasonal fruits that are prepared in the form of juices, which can be offered during certain
seasons include lychee or dragon fruit. Moreover, according to Vitale in 2017, providing
different kinds of tea (green tea, oolong) besides the drinks that Chowking offers now will be
more versatile and appeal to the elderly who prefer classic Chinese tea. Likewise in food, they

17
may also offer standard options like Classic Iced Tea (with adjustments for less sugar or green
tea variants) and Soft Drinks (popular across all demographics).

II. Price
To develop an effective pricing strategy for Chowking’s expansion into China, it is
essential to balance local purchasing power, competition, and the country’s cost structure.
China's rising middle class, particularly in urban areas, demonstrates strong purchasing power,
with an increasing demand for discretionary and premium goods (McKinsey, 2021). However,
pricing must be competitive, especially given the dominance of fast-food giants like
McDonald's and KFC, who have established strong market positions and leverage content
marketing to attract target consumers (Daxue, 2023). The strategy should reflect a balance
between offering affordable prices to appeal to price-sensitive consumers while introducing
higher-end menu options for affluent customers in major cities. Furthermore, understanding
China's cost structure—such as higher logistics costs, taxation variability, and foreign
exchange risks—will be crucial in maintaining profitability (Zhou, 2024). Incorporating flexible
pricing tiers, promotional strategies like local brands, and leveraging digital marketing
campaigns will help Chowking gain a foothold in the competitive Chinese fast-food market.

A. Performance Objectives
● Net profit: Chowking’s pricing strategy should aim to achieve a targeted net profit
margin that is on level with its competitors. This objective can be pursued through a
careful analysis of food costs, labor, and overhead. By keeping operational efficiencies
high and waste low, Chowking can maintain profitability while offering competitive
prices that appeal to consumers.
● Return on Investment (ROI): Chowking should establish a reasonable ROI target on
new product launches, particularly during the initial market penetration phase in China. A
financial consultant may aid in the facilitation of finances, but generally a safe ROI
ranges 10% or above per quarter (Glimpse Performance Insights, 2022). By assessing the
financial performance of newly introduced items like localized rice dishes and premium
noodle offerings, Chowking can ensure that investments yield profitable returns while
also providing value to customers.
● Market Share: Aiming for a market share increase within the first three years in China is
crucial due to the highly competitive nature of the market. Establishing an early foothold
helps build brand recognition and consumer trust, which is key for long-term
success. Capturing market share quickly also enables Chowking to tap into China's
growing middle class and create a solid foundation for profitability and resilience in a
dynamic economic environment.
● Penetration: An effective market penetration strategy focuses on attracting customers
through competitive pricing, such as introductory discounts or value-driven
promotions. By offering bundles or limited-time deals, the brand can encourage trial and

18
 build customer loyalty. Once established, prices can be adjusted to reflect long-term value
while maintaining the customer base gained during the initial phase.

B. Prevention Objectives
● Deter Government Scrutiny: Chowking should ensure compliance with local pricing
regulations and fair trade practices to avoid government scrutiny. By adopting
transparent pricing strategies and avoiding excessive pricing, Chowking can maintain a
positive brand reputation and foster trust within the community, crucial for long-term
success in a new market.
● Deter Competition: Setting competitive prices that reflect local market conditions will
deter competitors from aggressively undercutting Chowking. For instance, implementing
a price-matching policy for popular items can help retain customers while signaling to
competitors that Chowking is committed to offering value without compromising quality.

C. Maintenance Objectives
● Maintain Competitive Pricing: Chowking should regularly review and adjust its
pricing strategy to stay competitive against local fast-food chains and established
players. Utilizing market analysis and consumer feedback, the company can make
data-driven decisions about pricing adjustments, ensuring it remains attractive to its target
market.
● Maintain Favorable Dealer Relations: Establishing and maintaining strong
relationships with suppliers and distributors is crucial for Chowking's success. By
implementing pricing strategies that reflect fair margins for partners, Chowking can
foster loyalty and ensure consistent supply, ultimately supporting its market penetration
and growth objectives.

D. Survival Objectives
● Penetration Pricing: This involves initially offering lower prices to attract a large
customer base, particularly among price-sensitive segments such as students, young
professionals, and families (Penetration Pricing, 2023). By positioning itself as a more
affordable alternative while delivering quality and value, Chowking can quickly build
brand awareness and customer loyalty. To enhance this, Chowking can offer value meals
and localized bundles. Limited-time discounts and partnerships with food delivery
platforms will further strengthen its market entry. Once the brand is established, Chowking
can gradually increase prices and introduce premium items to improve profitability.
This strategy will allow Chowking to penetrate the market quickly, compete with global
brands, and build a long-term customer base.
● Mix and Match Pricing: This approach enables customers to work through their own
mains, sides, and beverages, thus, making meals more personalized. In China, Chowking
could introduce some fried rice, noodles, dumplings, dim sum or fried chicken and seafood

19
 dishes among others. Such a strategy would be interesting for the customers: students,
young people, and families who like variety and individual approach to the choice of
meals. It also promotes variation of products, increasing customer traffic and, therefore,
customer satisfaction. Moreover, the proposed low prices for the meals allows Chowking to
become a value-oriented, easily affordable brand in the Chinese fast-food segment.
● Psychological pricing: This strategy can make customers feel as if they’re getting more for
their money because the prices are slightly less than a whole number like ¥10 = ¥9.99
(Psychological Pricing, 2024). Further, employing the concept of price skimming for value
meals for a bundle can instill a feeling of gaining more in the purchase on the customers
part. For instance, a standard meal will be offered at ¥29 and a premium meal at ¥39; this
creates the impression that the standardized meal is cheaper and therefore customers will be
compelled to buy it.

III. Place
A. Channels of Distribution
● Franchise and Distribution Channels: Franchise partnerships will enable Chowking to
efficiently scale operations across different regions in China by leveraging the local
knowledge and resources of franchisees. This strategy allows the brand to enter new
markets rapidly and effectively while minimizing investment risks (Portal, 2020). By
aligning with local entrepreneurs who understand consumer preferences and market
dynamics, Chowking can enhance its brand presence and adapt its offerings to meet
regional tastes.
● Targeted Physical Store Locations: Chowking should focus on large urban cities like
Beijing, Shanghai, Guangzhou, and Shenzhen to reach a high concentration of its
target demographic (Ocampo, 2024). Positioning outlets in premium malls and
commercial centers will attract middle-class families, young professionals, the elderly,
and students, benefiting from high foot traffic and aligning with urban consumer
preferences for convenience. Additionally, placing stores near universities and business
districts will capture younger, working customers seeking quick dining options.
● Online Presence and Delivery Platforms: Chowking should establish collaborations
with major food delivery platforms like Meituan, Ele.me, and Dianping to expand its
reach, particularly in densely populated areas, ensuring that its offerings are easily
accessible to a wider audience. By leveraging these platforms, Chowking can tap into the
growing trend of online food ordering, catering to the convenience-driven preferences of
modern consumers.

B. Physical Distribution
● Warehouse Management: Chowking should establish storage facilities in key cities
like Beijing and Shanghai to optimize the supply chain and reduce delivery times by
utilizing transport hubs efficiently (Jack, 2024). Local storage closer to target markets

20
 will ensure freshness and quick access to products, particularly in high-demand regions.
This strategy will improve operational efficiency and enhance customer satisfaction by
ensuring timely product availability.
● Logistics and Transportation: Chowking should develop efficient delivery networks
to ensure timely product delivery, especially in provinces with poor infrastructure, like
Yunnan and Guizhou. Collaborating with local logistics providers such as SF Express
will enhance distribution capabilities in challenging regions. Additionally, optimizing
international shipping networks for key imported ingredients, like premium soy sauce,
through partnerships with companies like Maersk will minimize delays and maintain
product quality.

IV. Promotion
A. Traditional Marketing
● Grand Opening
It might be beneficial for Chowking to consider hosting a grand opening event
that could generate excitement and attract initial customers. This celebration could
feature exclusive promotions, such as meal discounts and complimentary samples of
signature dishes. Including live cooking demonstrations, cultural performances, and
interactive activities for families could create a lively atmosphere and allow guests to
experience the menu firsthand. Such a strategy could emphasize Chowking’s
commitment to engaging with local residents and set a memorable tone for the brand’s
introduction.
● Print Advertising
Given that many Chinese residents are enthusiastic newspaper readers (Gaspar et
al., 2023), it may be worthwhile for Chowking to incorporate print advertising into its
marketing approach. Targeted advertisements in local publications could highlight
Chowking’s unique offerings. Placing these ads strategically in sections appealing to food
lovers and families could ensure they reach the desired audience. Additionally, featuring
articles and interviews with management could provide insights into the brand's story,
fostering a connection and building trust within the community.
● Billboards
Utilizing billboards could significantly contribute to raising awareness and
visibility in urban settings. Chowking might consider placing these advertisements in
high-traffic areas, such as busy intersections and shopping districts in major cities and
near schools, to showcase appetizing images of its signature menu items. Using catchy
slogans and promotional offers could encourage potential customers to visit the restaurant
or explore the menu online.
● Community Engagement
Building strong relationships with local residents through community

21
 engagement could be a key strategy for Chowking. It might be advantageous for the
brand to sponsor local events, such as cultural festivals or school activities, to enhance
visibility while demonstrating commitment to the community. Participating in charitable
initiatives or organizing community clean-up events could further emphasize Chowking's
social responsibility, generating goodwill among potential customers.

B. Digital Marketing
● Social Media Campaign and Influencer Partnerships
Chowking could leverage a social media campaign and influencer
partnerships to connect with younger consumers and urban professionals in China.
Establishing a strong presence on platforms like WeChat, Weibo, and Douyin (TikTok)
with visually engaging content—such as videos, photos of menu items, customer
testimonials, and behind-the-scenes cooking insights—would potentially drive
engagement. Furthermore, Interactive posts like polls and quizzes, along with exclusive
promotions for followers, could further boost engagement. Additionally, collaborating
with trusted local food influencers to showcase the dining experience through authentic
content and hosting tasting events could amplify Chowking’s reach and credibility,
generating organic interest in the brand.
● Food Delivery Promotions
With the rising popularity of food delivery services in China, Chowking might
implement targeted promotions to stimulate online orders through well-known
platforms like Meituan and Ele.me. Introducing exclusive discounts and combo deals for
first-time users of these delivery apps could attract new customers and encourage repeat
orders. Promoting menu items that cater to the convenience-seeking habits of urban
professionals may further enhance appeal. Ensuring that delivery options are seamlessly
integrated with digital marketing efforts could encourage customers to order online
through engaging social media posts and email newsletters.
● Search Engine Marketing (SEM)
Search engine marketing (SEM) might be an essential aspect of Chowking's
digital strategy to ensure visibility in online searches. By targeting specific keywords
related to Filipino cuisine, fast food, and dining options in major Chinese cities,
Chowking could attract potential customers who are actively searching for dining
experiences. Paid advertisements may appear prominently in relevant search results,
directing traffic to Chowking's website and social media channels. This focused approach
could enhance brand visibility while guiding interested consumers to Chowking's online
platforms, where they can explore the menu and available promotions.
● Loyalty Program Launch
To cultivate a dedicated customer base, it could be beneficial for Chowking to
introduce a loyalty program aimed at encouraging repeat visits. This program could
reward customers with points for each purchase, which can be redeemed for discounts,

22
 complimentary items, or exclusive promotions. Promoting the loyalty program through
in-store displays, social media, and email campaigns could effectively communicate its
advantages, encouraging sign-ups and fostering a community among loyal customers.
● Online Contests
To create excitement around the brand and engage the audience, Chowking could
consider launching online contests on various social media platforms. These contests
may include creative photo challenges, caption contests featuring its signature dishes,
experiences and many more. Rewarding winners with prizes such as free meals, branded
merchandise, or exclusive invitations to special events could enhance participation and
brand visibility. Promoting these contests through social media ads and collaborations
with influencers may boost engagement, providing a fun and interactive way for
consumers to connect with Chowking.

23
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