Economies of scale can be enjoyed by any size firm expanding its scale of operation. It is important to companies such as McDonald’s and GBK because firstly, a large business can pass on lower costs to customers through lower prices and increase its share of a market. Secondly, a business could choose to maintain its current price for its product and accept higher profit margins. 3. a) What are marketing economies of scale? As a firm grows the average cost of advertising per unit will fall, leading to lower average costs.
The firm needs more attention to a solid marketing effort including a website design and website launch and it needs to find alternate means of financing beyond its current sources. In 2003 and 2004, more than 52% and 60% of the customers felt that they paid more for the merchandise that the merchandise was worth. Kudler Fine Foods will employee a generic strategy of focus. Kudler Fine Foods will serve their niche market that is the gourmet chef and people that appreciate and are willing to pay for high quality, specialty, organic and locally grown foods. “A firm pursuing a focus strategy is willing to service isolated geographic areas; to satisfy the needs of customers with special financing, inventory, or servicing problems; or to tailor the product to the somewhat unique demands of the small- to medium-sized customer” (Pearce and Robinson, 2009, p.205).
Nagina Begum Unit 1 – P5 I will be writing about the influence of two contrasting economic environments on the business activities. I will consider economic factors, supply and demand and global interaction. McDonalds Availability and cost of credit If McDonalds has high availability of cost and profit, then McDonald’s will have high availability and low cost. This means that people spend more and there is a higher demand for goods and services. If this is the case then McDonalds will be able to grow and will be able to expand their business.
Another avenue that Kudler Fine Foods can take to increase service for their valued customer's is that they can introduce a rewards incentive program for their customer's so that way their customer's will want to come in spend money to ultimately grow the business (Kudler Virtual Organization, 2011). With a rewards incentive program established, Kudler Fine Foods will be able to keep track of what products their customer's like to purchase in order to be able to market themselves better and more importantly be more available to their intended target
The other points are as important but more information needs to be gathered to properly identify and explain each point. Each “ * ” will be explained in the sub-headings below. 3.3.1 Strengths With successful brands such as Earls, Cactus Club, Joeys, and Saltlik, Stan Fuller has created a restaurant empire with a focus a “premium casual” dining. With such strong brand presence, Earls was able to expand into the United States. The first location in Miami preformed above recent expectations even in a market where the average consumer is more price conscious (Sutherland).
These basic beliefs regarding as Quality, People, Ethics, Growth and Independence, served as a strong motivation that boost the company to achieve the goals. The basic business strategies to achieve the balanced growth consist of three part— Category growth and increasing market share of the Company’s brands, Innovation and Acquisition of leading food brands. Expanding their existing brands and market share prevent them from being an acquisition target of a large company. Smuckers have been very successful in increas ing their market share and revenue by acquiring top brands , which enrich the
One of the greatest attributes of McDonald's is its "everyday affordability" message that drives customers to McDonald's restaurants. Through marketing McDonalds has the best customer base of all companies, ranging from 3 years old all the way up to the senior citizen with a discount. Everyone knows the slogan “Mickey D’s” you can't possibly drive by a 'golden arches' without having to stop. With the backup of sponsorship’s and integrated campaigns like the Olympics, movies, foundations and the infamous “I’m Lovin’ it” ads are all marketing tactics to better the business. By combining fundamentally sound operational practices with innovative marketing strategies, Ray Kroc (McDonald's originator) laid the foundation for McDonald's global success.
) -> Competitors are growing faster than Mcdo -Small decreasing in McDonald's market share - 60% of the incomes depend of the franchisees - U.S market reached maturity TOWS: SO: - Maintain the abroad growth using the brand image and the adaptation ability - Combine the Limited Edition concept with the healthy food to create a new interest and to adapt the permanent offer to customer needs. - Improve the brand image toward the parents by using partnerships WO: - Take in place new training plans for employees to decrease the rate of turnover and to improve the customer service. - Increase the product diversification by using the experiences and results abroad, if possible. ST: - Use the strong activity abroad to "flee" the american market which reached the maturity. - Use the adaptation ability and create some products sympathetic with the new wave of technological advance as reheat products like soups to take away.
They have created a new image in an inspired 20/20 design displaying their flame-grilled process to increase same store sales, higher profits and a strong return on investments (Burger King, 2013). They have also provided incentives to encourage franchisees to follow the remodeling efforts as well. And finally they have restructured their field teams to decrease their scope of responsibility. When the team has fewer restaurants under its scope, it can focus more on food quality, guest service, speed of service and cleanliness. Also, field members have been redesignated as business coaches.
Through this method of market research they are able to generate sales. Burger King has embarked on the right moves that allow them to market their foods in a prosperous manner. The company created a memorable theme and a logo that would set them apart to consumer. They also further coordinated its value chain through franchising. Over the course of many years the ownership of Burger King changed through many hands and the company has suffered with its needs being made secondary to which ever parent