The Expansion of the Brand through the Establishment of the Mobile Kitchen System tina vukasovic International School for Social and Business Studies and University ofPrimorska, Slovenia tina.vukasovic@mfdps.si bojana korez Vocational School for Gastronomy and Tourism Maribor, Slovenia bojana.korez@gmail.com sonja porekar petelin Vocational School for Gastronomy and Tourism Maribor, Slovenia sonja.porekar-petelin@guest.arnes.si Vocational education tends to offer not only theoretical knowledge but also mostly practical skills and experience in the specific educational field. The school permanently looks for innovative ways of gaining knowledge. The mobile kitchen is one of the projects which would set the teaching and learning process out of the save school environment into the real life situations. By carrying out the research among the students of the school, we tried to find out how the mobile kitchen establishment would affect the knowledge management and other school activities. The results of the research are the basis for creating the meals and products offer of the mobile kitchen. The results of the survey show that there exists a considerable interest for the mobile kitchen establishment. Based on this new model, ssgt Maribor would be defined as a new brand on the market offering its products and services under the unified logo and corporate image. Key words: marketing, marketing mix, brand, knowledge management, mobile kitchen https://doi.org/10.26493/1854-4231.13.19-31 Introduction Marketing of today differs theoretically as well as practically from the marketing of the past. It faces immense changes, which are the consequence of the quickly developing environment we live in, and the companies tend to adapt as appropriate as possible. Regular observation of the actions on the market in its near and far surroundings is a necessary act of the company, which counts on its long-term management 13 (1): 19-31 Tina Vukasovic, Bojana Korez, and Sonja Porekar Petelin existence. It is very important that marketing professionals understand and accurately respond to the changes in the environment. Business and products are being made through using all the advantages of the constant changes dynamics. Vukasovic (2015, 29) sees marketers to be responsible for the recognition of the important changes in the environment. Marketers have to monitor the marketing of the company and look for the new opportunities, as well. The companies, which expect to be successful on the market, have to obey not only the factors of the marketing environment but also all the changes which affect certain factors in micro- and macroenvironment, consumers' needs, habits, wishes and the way of life. The companies are expected to perceive these changes and adjust to them as soon as possible. Throughout the time and development the meaning of the brand has been changing immensely and the term 'brand' has become a sort of symbol, a mark for the product. To form and develop a successful brand, time and money are necessary. They are actually the investment into the brand that could bring success and satisfaction. Kapferer (1997, 15-18) mentions the market being supersaturated with information and the marketing pressure over the consumers, and that the brand is a basis for quality, consistency and trust. We can sum up that the brand can make a purchase easier assuming the customer knows what to expect from the certain brand. It is interesting that Doyle (1994) defines a brand as a key source of the differentiation, which functions as a sort of promise to the consumer; functional as well as emotional. Nowadays it is very important for companies to create a strong brand, based on strategies and visions. Even more important is that the existence of the brand is based on the long-term strategy and quality. Throughout the time and different historical periods, the society has changed, too. In the area of education and learning, we want to pass over from the theory to the practical knowledge. People learn from the different reasons, acquire all sorts of experience and enrich the knowledge. From the end of the 20th century until now, the meaning of the learning organisation has made it to the foreground. Senge (1990, 3) states that learning organisations are the places where people permanently improve competences for achievement of desired results; they develop new ways of thinking and learn how to learn together. The processes of the corporate learning relate to obtaining the information (transmission of information between the environment and the company - detection of mistakes, collection of data, transmission of information and expansion of results), inter- 2 management • volume 13 The Expansion of the Brand preting the information in the organisation (processing and analysis of information, accessibility,...) and its use for cognitive and behavioural changes (understanding of connections between the environment and the organisation, openness and readiness for new ideas, innovations, possibilities, for the development of new knowledge and for the increased competences of the company for new activities, etc.) (Dermol 2013, 23-24). Successful organisations are those who create new knowledge, use modern technologies and create new products and brands (Nonaka and Takeuchi 1995, 56-73) Through various activities, we want to encourage interdisciplinary and intermodular cooperation that enables students to acquire different, practically useful skills. Professional education is nowadays based on concrete actions and it offers the opportunity to gain practical experience. Through the mobile kitchen, a modern, mobile way of preparing and serving food is being introduced. At the same time, students and other users are offered a healthy way of eating, even though it is about fast food. ssgt Maribor with its activities, such as various projects, events, competitions, international student exchanges, offers a wide range of possibilities for obtaining implicit and explicit knowledge and skills. The school tries to equip the students with the necessary competences and makes them aware of happenings in many areas. In our study, we will collect data on what kind of food the students eat for lunch, on the response of the students to the mobile kitchen, and on the awareness of the students concerning the local and organic food. The collected data will be analysed and the research results will be presented. Literature Review brand management and brand extension In the past, a brand was a sum of a name, symbol or a shape/combination of these elements, which are used for recognizing and distinguishing various products and services of a company or a group of companies from competitive companies. The purchase made by consumers is thus easier since they know which benefits they will gain by purchasing a product of the established brand. A strong and established brand provides the consumer - beside functional benefits - with emotional benefits as well. A brand is much more than just an element of attraction. It is a sum of all perceptions, notions, and associations about a product or a service that is being formed in consumers' heads. It is all about emotional comprehension of goods number 1 • spring 2018 3 Tina Vukasovic, Bojana Korez, and Sonja Porekar Petelin that the consumer requires or seeks on the market. The primary importance of the brand is in establishing an emotional relationship between the consumer and the product. In any case, the consumers encroach upon products with good quality; however, the quality of the product is but a prerequisite for forming a brand. The latter has to have its own personality, its identity, an image and character. The brand is built on factors of the consumer's way of thinking: the image of brand, its familiarity and familiarity of the name, perception of quality, fidelity, positive associations and other benefits. Its advantages for the operator or the administrator of the brand are product differentiation, competitive advantage, higher margin, increased market share, strength to negotiate, quicker introduction of new products, decreased risk for consumers, communication of quality and more. We expect the top-notch brands to be perfect and to fulfil their promises 100 percent and higher. In short - all has to be of superior quality since one little mistake can ruin the brand's reputation (Vukasovic 2009). Managing a brand means to create emotional responses in consumers every time they use a certain product which carries the name of the brand. It means to take special care of in what light the media shows a company (the owner of a brand); in short, it means to maintain every single contact that develops between the product/brand representative and the consumer. Strategic management of brands, which is directed by new-age management, and the importance of the brand, exceeds the classical concept of brand management that was established by Procter & Gamble in 1931 (Aaker 1991). Within the framework of the classical concept, the company does not expose any brands; however, it is possible that brands within one company compete between each other to gain a higher share of assets intended for market communication. The greatest disadvantage of the classical concept is the assessing of success of the brand based on short-term results. In the case of a short-term success and the increased trade of products of a certain brand, the decision for an additional investment into a selected brand can cause, in a long run, a decrease in profit while the results of assets invested into management of brands can only be seen on the long run. While comparing the classical and the modern concept (brand leadership model) of brand management, we are concentrating on the comparison defined by Aaker and Joachimsthaler (2000). Strategic management, which they defined in the modern concept, is implemented within the framework of higher positions on the hierarchical scale in an individual company where the manager of a brand is the leader of a team who has more competence and liability in comparison with the 22 management • volume 13 The Expansion of the Brand role of a leader in the classical concept. The focus of management is the wealth of the brand and the assessment of this wealth. In comparison with the classical concept of brand management, the focus in the modern concept is emphasized on a larger scale, i.e. on a group, on several brands, and is globally oriented Vukasovic (2009). The architecture of brands is becoming increasingly complex. In the mass of competitive brands that are present on the dynamic food market, communication is successful only when both types of communication are combined, i.e. internal and external communication. The communicative purpose of the brand is to add its own characteristics to the product and thus inform the consumer about the advantages of such product over competition. The brand should create some kind of an image or ideal of a product. Systematic investments into development and marketing of one's own brands are a key factor of success for companies. It is essential that a company is able to control marketing processes and introduce new products under the framework of its own strong brands Vukasovic (2009). brand extension as a marketing strategy Many companies adopt brand extension as strategy with the aim of benefiting from the brand knowledge achieved in the current markets. When a company launch a new product and market under the umbrella a well-known brand name, failure rates and marketing costs are reduced (Keller 1993). Keller (1993) states that more than 80 per cent of firms resort to brand extensions as a way of marketing goods and services. Competition forces firms to adopt strategies that create a competitive advantage for the firm. Creating a brand name with well-established associations is one way of achieving this aim. Firms invest heavily in developing a brand. It is a very costly process but has many returns once success is achieved Keller (2008). Brand extension as a marketing strategy has become even more attractive in today's environment where developing a new product costs a lot of money and can be time consuming. Literature on extensions dominantly addresses the question of how the parent or core brand helps the new product during its launching stage. Although literature touches on the possible reciprocal effects of the new product launching on the equity of the core brand, their number is limited. brand extension as an important element in the process of brand management The newly introduced brand extension capitalizes on the equity of the already established (core) brand name (DeGraba and Sullivan number 1 • spring 2018 23 Tina Vukasovic, Bojana Korez, and Sonja Porekar Petelin 1995; Pitta and Katsanis 1995) or even the company or corporate name (e.g. Coca-Cola). Consumer familiarity with the existing core brand name aids new product entry into the marketplace and helps the brand extension to capture new market segments quickly (Dawar and Anderson 1994; Milewicz and Herbig 1994). This strategy is often seen as beneficial because of the reduced new product introduction marketing research and advertising costs and the increased chance of success due to higher preference derived from the core brand equity. In addition, a brand extension can also produce possible reciprocal effects that enhance the equity of the parent brand (Chen and Liu 2004). Market is a place of competition and cost associated with introduction of new brand always soars, many firms are trying to decrease the risks involved in new product introduction and market the new product using the name of already well known existing brand as brand extension. Many firms use brand extension strategies to enter new categories. According to Ambler and Styles (1997), it is common strategy of last decade that companies prefer brand extension rather than introducing a new product under new product name. Companies save their cost as well as minimize the risk by launching a new product as brand extension under the brand name of already well-known brand. Marketers believe that brand extensions are evaluated favourably by consumers because consumers transfer positive attitudes or affect toward the parent brand to its extension (Vukasovic 2012; 2015). Methodology, Data Collection and Sample The goal of our research is to find out whether the establishment of the mobile kitchen system as a new brand offering new ways of education and knowledge transmission makes sense in the first place. This system creates a new market niche (not only for the organisation but also for the individuals) and enables the cooperation with local food producers and the tourist economy at the regional and national level. The hypotheses will be checked through the research and connected with the education at ssgt Maribor. Our goal is to highlight the benefit of setting up a mobile kitchen system, which is the offer of freshly prepared food using the ingredients from the local area. We want to enrich the knowledge of the professional staff and the students and offer it to the consumer market. We want to highlight the activities of the school in order to show how the knowledge and work of young people in catering and tourism can improve this branch. 6 management • volume 13 The Expansion of the Brand Based on analysis and on obtained results of the research, the following hypotheses will be tested: hi The students of ssgt Maribor are aware of the impact of the organic food on their health. H2 The male students of ssgt Maribor would spend more money on the school meal than the female students. H3 The price of the meal from the mobile kitchen plays more important role than the fact that the meal is freshly prepared. H4 The majority of the students would buy a meal from the mobile kitchen once a week. For the needs of research, qualitative and quantitative methods (the interview and the survey) were used. The survey was conducted among the students of ssgt mb who are planned to be the first target group using the mobile kitchen. The students being active in the mobile kitchen team will gain new knowledge outside the classroom. They will prepare and offer a different kind of meals to the consumers. The students and the consumers will thus be better acquainted with the local food and products. The interview was conducted with the management of ssgt mb in order to deal with the research issues more specifically. For analysing and interpreting the data, the statistical programme for quantitative data analysis spss was used. For the purposes of quantitative research, a survey questionnaire with 14 questions has been prepared. The questionnaire was made in accordance with the guidelines of the Resolution on the National Programme on Nutrition and Physical Activity for Health 2015-2025 (Ministrstvo za zdravje 2015, 5). The questionnaire consists of open-ended and closed-ended questions. It also includes the questions formed according to Likert-type scale, which is the most widely used approach for scaling responses by a 5-level scale, meaning: 1 - strongly disagree, 2 - disagree, 3 - neither agree nor disagree, 4 - agree, 5 - strongly agree (Mesec 1998, 26). Vukasovic (2012, 159) states that the quantitative research makes sense in case of greater number of participants responding to the mostly closed-ended questions, so that each respondent answers the same questions, and the respondents choose one or more options that are offered by closed -ended questions. The survey was conducted using the online questionnaire between the 5th of February and the 5th of May 2016. There is a student community in the school and the students were (through their class representatives) informed about the planned research at a student com- number 1 • spring 2018 7 Tina Vukasovic, Bojana Korez, and Sonja Porekar Petelin table 1 Definition of Respondents by Age Age Absolute Structural frequency percentage 15 1 0,5 16 59 29,8 17 40 20,2 18 56 28,3 19 30 15,2 20 11 5,6 21 1 0,5 15 1 0,5 Total 198 100,0 table 2 Age of Respondents in Three Groups Age group Absolute Structural frequency percentage 15-16 60 30,3 17-18 96 48,5 19-21 42 21,2 Total 198 100,0 munity session. The students were given detailed instructions by email about receiving a web link to a questionnaire to click on. Carrying out the survey in the online environment 'Enklikanketa' was a rational solution as to the costs and time. There appeared some limitations in the implementation of the survey: the research was limited to the Middle School for Catering and Tourism Maribor, the possible reluctance of students to solve a questionnaire. Before carrying out the survey in the online environment, we performed a pilot testing of the questionnaire. By performing the pilot testing of the survey eventual difficulties or confusion of the respondents in answering to the questions can be determined. We chose two random students who filled out the survey. No ambiguities or misunderstandings of questions showed up, so the originally compiled questionnaire was used in the survey. Based on the latter, we concluded that the questions were understandable and transparently raised. To fill out the questionnaire 15 minutes were needed. The main findings of the quantitative research are summarized below. The target group were the students of 3- and 4-year vocational programmes - gastronomy and tourism. The study involved 199 respondents, of which 73 males, representing 36.7% of the respondents, and 126 females, representing 63.3% of the respondents. Participating respondents ranged in age from 15 to 21 years. Table 1 shows that the most respondents were 16 years old, representing 29,8% of the respondents. To facilitate the evaluation of the respondents according to age, we performed recoding of age into three age groups (table 2). We can find out that the most of the respondents belong to the age group between 17 and 18 years, representing 48.5% of all respondents. 26 management • volume 13 The Expansion of the Brand Results and Discussion The establishment of the mobile kitchen is a new project for the school. The mobile kitchen is a challenge in the education system and transfer of knowledge to the students. It represents a new market niche and a new part of the ssgtmb - brand that will offer homemade and attractive local food and related products. Therefore, we were interested in following topics: what kind of food do the students choose to buy for lunch; do they know the origin of food; how much money a day do they spend for school meals; are they aware of advantages of organic food. The analysis of data showed that the vast majority, 101 (50.8%), of respondents chooses a warm meal that includes meat, side dish and a salad; probably because the meal is prepared in their school. Meals, provided by the mobile kitchen, will be prepared from ingredients that are grown in the local area. Therefore, it is very important to highlight the importance of organic and locally grown food. The analysis of quantitative research showed that respondents attach great importance to the origin of food and thus support the local economy; the average score of respondents agreeing fact is 4 on a scale from 1 to 5. Taking into account the guidelines of a healthy diet and the importance of locally grown food, the respondents state that the current meal should include the fruit from the local environment. Considering the importance of organic and locally grown food, the average estimates of agreement of respondents (from various educational programmes) were compared on a scale from 1 to 5. The students of tourism (4-year education), on average, most agree that organic food is healthier; their assessment of agreement being 3, 97. The students of gastronomy (4-year education) follow; their assessment of agreement being 3, 92, while the students of gastronomy (3-year education) reach the assessment of 3, 86. Based on the results the hypothesis 1 (hi) - 'the students of ssgtmb are aware of the importance of the organically grown food for their health' - can be confirmed. The price is very important in the establishment of the mobile kitchen and sale of meals. It has to be formed and regulated according to supply and demand on the market and according to the target group; in our case the students of ssgt Maribor. Analysing the data we found out that the respondents spend, on average, 2.40 € a day for a school meal. 47.2% or 94 respondents spend 2 € a day for a school meal. The data suggest that the rational price for the meals from the number 1 • spring 2018 27 Tina Vukasovic, Bojana Korez, and Sonja Porekar Petelin mobile kitchen offer would be between 2 and 4 €. Using the Pearson Correlation two variables were determined; the distance from school in kilometres and spending money to buy a school meal. By choosing these variables, we wanted to determine the relationship between the two variables. For the purposes of the Pearson correlation test the additional hypothesis, the null hypothesis and the alternative hypothesis were determined. h The students, who live far away from school, spend more money on meals. ho There is no connection between the variables. hi There is a connection between the variables. After defining the distribution, we carried out the test to get the matrix of correlation that is symmetrical over its main diagonal. 198 respondents replied to the question 'How much money do you usually spend on school meals per day?' 196 of 198 respondents replied to the question about the distance from school. Because the p-value is higher than a = 0.05, the null hypothesis set, that there is no relationship between the two variables, cannot be rejected. Based on the findings the research hypothesis set can be rejected. There exist the differences in the pattern but their value is so low that the facts cannot be inferred with certainty for the entire population. The value of Pearson correlation coefficient, which is denoted by r, is -0.118. A negative value indicates that the variables are inversely proportional. Because the r-value is very low, we can see that the correlation between variables is insignificant and that the amount of money spent on school meals is also affected by other variables. The hypothesis (h2), 'Those who live further away from school, spend more money on meals,' can be rejected. We notice that respondents living closer to school spend more money on meals than those who live further away. Using the Levene Test of Equality of Variances and the T-Test of Average Values (table 3), we found out that the p-value represents the lowest risk and is lower than 0.05. This means that the male respondents are ready to spend € 2.63 for a daily meal, while female students (female respondents) would spend € 2.27. Considering the results the hypothesis 3 (h3), 'The male students of ssgt Maribor are ready to spend more money on school meals than the female students of the same school,' can be confirmed. Based on the analysis of the issues created according to the system of a Likert scale, we can find out that to the respondents the freshly prepared meal seems to be the most important. The latter factor was 10 management • volume 13 The Expansion of the Brand table 3 The Levene Test of Equality of Variances and the T-Test of Average Values The Levene Test of Equality of Variances F 13.633 P 0.000 The T-Test of Average Values t 2.217 df 196 P 0.028 chosen by 109 or 56% of the respondents. Among eleven given factors, the next important factor is the quality. This factor was chosen by 89 or 48% of the respondents. The price as a factor, which affects buying the school meal from a mobile kitchen, is only in third place. Depending on the results obtained, the hypothesis 4 (h4), 'The price of the school meals from the mobile kitchen is more influential factor than the fact that meals are freshly prepared,' can be rejected. The location is a part of the distribution channels and consequently one of the important elements of the marketing mix. Due to analysis of the research, we found out that the presence of the mobile kitchen at different locations depends on the potential customers. Most of the respondents, 51 (25.6%), would buy meals from the mobile kitchen 3 times a week, 20 (10.1%) respondents twice a week and only 6 (3%) once a week. Due to these facts the hypothesis 5 (h5), 'The most students would buy a meal from the mobile kitchen once a week,' can be rejected. the proposal for setting up a mobile kitchen at ssgt maribor The mobile kitchen will be a part of the brand ssgt Maribor that can act as a market brand. For the school it is an important part of promotion and marketing activities. The mobile kitchen will be set in a light van that will also fit into the overall corporate identity and will be equipped for the needs of mobile kitchen activities. As mentioned above the mobile kitchen is also meant to be a part of promotion activities, like presentation of professions. At the same time, it will offer different school products and healthy meals. It will be a part of a commercial brand participating on the market with an appropriate logo, the mobile team will wear uniforms, and the packaging will be designed in neutral colours and made from environment-friendly materials. The 'Mobile Kitchen' project will also be present on the ssgt Maribor website and on its 'Facebook' page. The visitors will have the opportunity to follow the locations, working hours, the actual offer and accompanying activities (promotion, animation, show cooking, etc....). number 1 • spring 2018 11 Tina Vukasovic, Bojana Korez, and Sonja Porekar Petelin As management and coordination of the mobile unit are very important, there will be a professional stuff from the school and a mobile team of students responsible to manage it. It is also necessary to determine a reasonable and competitive price. Purchase decisions will focus on identifying consumer needs, searching for information, estimating of alternatives, purchase decision, post purchase behaviour. Culinary offer of the mobile kitchen will be upgraded with the products already offered on holiday markets. The mobile kitchen will also be a kind of 'mobile pantry of enticing flavours.' In establishing the overall system, it is important to develop a successful marketing strategy that will include promotion, define the presence of the mobile kitchen on different locations and themed events, and determine its offer to be attractive to the target group in terms of the offered products and price. Conclusion In the article, we discussed the establishment of a mobile kitchen system. The mobile kitchen is intended to be a part of the ssgt Maribor marketing activities under the brand ssgt Maribor as well as a new way of education and knowledge transfer. Through the research we carried out among the students at ssgt Maribor, we analysed the data and found out that the establishment of the mobile kitchen system seems sensible and desired among students. By setting up the mobile kitchen system as a part of marketing activities and by maintenance of other activities of the new brand model, the school undoubtedly gains in recognisability. 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Osnove trženja za 21. stoletje. Celje: Mednarodna fakulteta za družbene in poslovne študije. This paper is published under the terms of the Attribution-NonCommercial-NoDerivatives 4.0 International (cc by-nc-nd 4.0) License (http://creativecommons.org/licenses/by-nc-nd/4.ü/). number 1 • spring 2018 13