To drive sales BK decided to focus on 4 points: the menu, marketing and communication, image and operations. Unlike Burger King’s ® major competitors, McDonald’s ® and Wendy’s ®, who prepare their burgers on a flat grill which fries the meat, BK prepares their hamburgers on a flame-broiler. They also focus on expanding their menu to appeal to a wide range of demographics. In addition to expanding their menu, BK has established a driven marketing process to target these same demographics. 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).
Case 1 Barbecue Blues Sauce Company 1. As small companies such as The Barbecue Blues Sauce Company achieve success, they inevitably move toward more formulated marketing, where they utilize all marketing tools at their disposal. Marketing strategy focuses on long-term company objectives and involves planning marketing programs so that they help a company realize its goals. Companies rely on marketing strategies for established product lines or services as well as for new products and services. Base on the information provided in the Executive Summary, I recommend the new formulation of barbecue sauce be marked, in addition to the original sauce, through retail grocery and specialty food market because, in the Executive Summary, 83% of study participations claim to use barbecue sauce at home and the average number of times in the last month barbecue sauce was used while cooking at home was 2.67.
1. Describe Boston Chicken's business model. What are the risks and benefits of this business model? Developed new segment of fast food - home cooked food restaurant business. Sought to grow rapidly by signing franchise agreements w/ large area developer.
Those management methods had led the company to strive for quality and use its own techniques to insure it.it made its employees (associates) in a high degree of priority along with its products that lead the company to be more profitable. The Expansion to other market within the US and outside was one of causes that helped the company sell its product in a large scale. In addition, it invested in marketing campaigns to make the brand known, and invested in genetic research program to have the best chicken breeds. Moreover, the company used innovative diversification of its product as to attract more market share. For instance, as the company get bigger and bigger, and make extensive vertical and horizontal integration by buying its competitors and producers made the company shrink for a period.
This system rewards quantity over quality (Ritzer 1983, 374). However, rather than meeting people’s needs through these advances, most of the fast food industry and modern food system have used these changes to sustain corporate profit. In a capitalistic world, profit or money equal success. Part of the modern food system, Charoen Pokphand (CP) and Tyson are both examples of multinational corporations looking for a successful business. Economically CP and Tyson are extremely accomplished, efficiently mass producing an abundance of chicken.
Paradise Kitchens offers a uniquely tasty product in its Howlin’ Coyote Chili. Howlin’ Coyote Chili reaches consumers via grocery stores. The mission of Paradise Kitchens is to market high quality lines of Southwestern and Mexican food at premium prices that satisfy consumers in the fast growing food segment of high quality products. Internally, Paradise Kitchens strives to provide challenging careers to its employees and above average returns to investors. Paradise Kitchens plans to build on the success of the Howlin’ Coyote Chili by adding other Southwestern and Mexican food products to the Howlin’ Coyote brand.
SWOT: Opportunities: - Improve the brand image toward the parents - To target new customers with healthier food and with a better quality - Reinforce the link between the brand and the franchisees - Maintain and keep developping the activity abroad - Plan to win -> 5P: Improve employees skills and contact with customers (smiles) Threats: - Technological advance (Micro-waves) - Increasing health consciousness - Raising competition ( Burger King, Sonic, Jack in the Box, ... ) -> 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 Strenghts: - Parntership (ex: Walt Disney) - Cultural adaptation - Fast food market
McDonalds started in the United States, but to become bigger and more popular they had to expand globally. Expanding globally not only meant more work but also an adjustment to different cultures. Opening restaurants in different locations meant studying other cultures and how to target customers with unique and local ingredients in which the customer will feel more comfortable eating. As a global corporation McDonalds had to face price differentiation, competition, infrastructure and problems. Adjusting its local recipe is a key to success.
External Analysis Industry rivalry: High According to the case Chipotles leading competitors are Taco bell, Moe’s southwest grill, Qdoba and smaller chains Baja fresh and California tortillas. Fast food restaurants (such as Chipotle) that offer fresh quality ingredients are a threat to other regular fast food restaurants and are viewed as main attributable loss of customers. However the top competitors are able to offer and same services as Chipotle. Threat of Substitutes: Moderate Chipotles food offerings can be substituted with store bought ingredients. Also with the increase in stores offering a selection of organic ingredients, customers can opt to making their own burritos at home.
Based on the case, the company had 910 locations in 2006 competing with the top restaurant chains in the USA such as Mc Donald’s and Starbucks. Their uniqueness gave them a competitive advantage above the rest, leading to their great success in these years. It is clear from the case that Panera Bread constantly review their strategy. We feel that this has enabled the company to enhance their performance. They have changed their business strategy on a number of occasions by offering different products and services.