At the end of 2010, Subway restaurants surpassed McDonald’s restaurant with 33,749 restaurants across the globe. The first Jimmy John’s opened in a garage in Charleston, Illinois on January 13, 1983 with used equipment and no menu or outdoor advertisement – selling four kinds of sandwiches and twenty-five cent Cokes. After giving samples around town, the business began to thrive. In April 1985, Liautaud bought out his father’s interest in the business, becoming sole owner. He opened his second store in Macomb, Illinois.
1. What types of marketing strategies is Chick-Fil-A following? Relating to the product, Chick-fil-A was a pioneer introducing the original boneless breast of chicken sandwich, he present a high quality and simple product, and became the second quick service chicken restaurant in the USA. They make food fresh daily and offer healthier alternatives to the classical chicken burger. The company grew up rapidly in the last few years, beforehand it tried to implement product development offering a wider range of things on the menu, such as healthier alternatives to the classical chicken burger, and differentiate them on customers’ different features basis (for example they developed children’ meal that is able to respond to the buyers’ needs).
Kayem Foods, Inc. Al Fresco Chicken Sausage Kayem Foods, Inc. ’s director of marketing, Matt Monkiewicz, is facing a promotional/advertising decision for Al Fresco Chicken Sausage. The previous year he had a very limited budget so he decided to do a “buzz campaign”. We will delve into the buzz campaign more later on in the analysis. Kayem’s Foods, Inc. is a medium sized operation in Massachusetts. It has been a processor and distributor of fresh delicatessen meats, hot dogs , and sausage for 100 years.
McDonald’s VS. Wendy’s Background Information McDonald’s was founded by Ray Kroc in 1955. It was the largest fast food chain restaurant in the world until 2010. Its headquarters are located in Oak Brook, Illinois. It serves more than 60 million people around the world every day. Currently McDonald’s has over 32,000 locations in more than 100 countries and employs about 400,000 people around the world.
He decided to install its stand in an area with a majority of Mexican population so he could test new recipes and have a feedback from the people who knew the best of this kind of food. The price of the first tacos sold by Glen Bell was only 19 cents. (Taco Bell) Between 1954 and 1955, Glen Bell built three Taco stands in California: in San Bernardino, Redlands, and Riverside. In 1958, at the age of 28 years old, Glenn bell was the owner of three restaurants that were making $50,000 per year each. (Taco Bell) In 1962, Glen Bell sold his part of El Tacos and opened his first Taco Bell restaurants in the Los Angeles area and started to sell franchises.
The $120 billion industry includes over 200,000 restaurants with 50% of those specializing in hamburger entrees. (hoovers.com 2008) The major competitors in the industry include McDonald’s, Burger King, Taco Bell, and KFC, Chick-fil-A’s major competitor in chicken sales. Chick-fil-A’s position in the market, specializing in chicken-based entrées, will lead to a competitive advantage in which the company will be able to take advantage of. With Chick-fil-A’s marketing strategies and company initiatives, the company will try to stay distant from competitors, offering a fresh alternative to the China’s fast food restaurant. When it comes to Chick-fil-A’s social forces in China, Chick-fil-A can be described as a public industry, which has shared values that the company tries to protect and uphold.
Points to consider; - Very limited marketing budget l calculate how much competitors spend on specialty sausage marketing l Hillshire farms: 29 million on all sausages l Johnsonville: 13 million, with 8 on tv and 3.5 for radio - Need to build retail food outlet relations as they account for most sales l their main competitor of chicken sausage, Aidell (30% mkt share), has strong distribution channel in food specialty stores. l Week bargaining power is causing them to have small retail shelf space, cuz their genoa product just cant compete with the big boys. - The main sausage brand for kayem, Genoa, was operating at a break-even l product has no distinguishing factors. l being priced aggresively low the product has a small margin. l has a low brand awareness.
In addition, Wendy’s targeted different continually growing segments of the hamburger market such as young adults and adults. Thomas’s initial goal was to build the first restaurant in Columbus where a customer would get a really good hamburger without waiting 30 minutes. Wendy’s set a dining room that is designed to seat 92 customers, and a pick-up window to serve drive-thru customers in every restaurant and expand the scale continuously. Because Wendy’s restaurants were generally located in urban or densely populated suburban areas, its drive-thru window brought great success by serving a large volume of customers. Unlike many other competitors, Wendy’s limited the number of menu items to four main products: hamburgers, chili, French fries, and Wendy’s Frosty Dairy Dessert.
Chipotle offers tasty Mexican-style food for those customers who disdain McDonald’s, yet at a price that is low enough to capture many price-sensitive customers. Furthermore, by promoting a minimalist, tradition-bucking, efficient yet friendly image, it has successfully captured the loyalty of young, busy people such as college students looking for a cheap bite. However, Chipotle is more than simply the image of a mouth-watering burrito and with a three-word tagline. For over a decade, it has focused on sourcing its products in an environmentally sustainable way, ensuring that its poultry and meat products come from natural and organic sources, providing a fair wage to its employees and suppliers, and even going so far as to testify before Congress as an advocate for the prohibition of antibiotics in meat production. Unfortunately, most of Chipotle’s customers are unaware of its efforts at social impact.
Providing growth in both annual revenue, 3.99% over 2012, and operating margin of .11% over 2012, Tyson produced a debt to equity ratio superior to both of its peers, Pilgrim’s Pride Corporation & Hormel Foods (Food Products Stocks under Review, 2014). 2014 proved to be a monumental year for the food production company in the acquisition of Hillshire Brands for 8.5 billion dollars. Considering the newly acquired Hillshire Brands, Tyson Foods currently projects year ending company revenue near 42 billion dollars. Chicken Products For the purpose of the MMGP course assignment Group 1 has selected the Tyson Foods chicken product as the focus of the project. Recognizing that Tyson Foods looks to market its chicken in the three categories of; Primary Processing, Case-Ready Tray Pack, and Further Value-Added; Group 1 has intentionally narrowed the focus of our project by only considering chicken products under Tyson Food’s Further Value-Added category.