...stared into the clear September skies thinking about the “Big Mac Attack.” At one time, the term was an advertising slogan referring to a craving for a McDonald’s Big Mac burger. However; “Big Mac Attack” now referred to McDonald’s earnings declines in the late 1990s and early 2000s. Dynamic market expansion, new products, and special promotional strategies had made McDonald’s Corporation a leader of the fast-food industry. However, sales growth in the United States had slowed to below the industry average in recent years. Jack Greenberg was trying to decide on a set of appropriate strategies for the future in order to reverse the declines and to stay ahead of competition. The Fast-Food Industry Years of profit drains and flat sales are driving fast-food chains to find new marketing strategies to compete in a mature market. While McDonald’s and most other hamburger chains continue discounting and offering a variety of new products to attract customers, they also seek to shed their “cheap and greasy” image with new store designs. Major competitors in the hamburger segment of the fast-food industry in order of annual sales are McDonalds, Burger King, Wendy’s, and Hardees. Since these chains recognize the importance of drive-through customers (65 percent of sales), they are all trying to increase the speed of drive-through delivery. Strategies include using timers to encourage employees to prepare and deliver food faster, training employees in faster food preparation methods, having...
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... 1. Market Size Pizza Hut's smaller format store is about half the size and cost of its iconic red-roofed buildings. Chain began developing smaller stores three years ago. It so far has opened more than 300 and sees potential for 2,000 more in next five to 10 years. Pizza Hut is ordering up smaller restaurants. The iconic red-roofed chain, which saw its heyday in the 1980s, says downsizing and remodelling will allow it to open more restaurants and turn a profit faster for franchisees. Pizza Hut began developing this new model, dubbed Delco Lite, about three years ago when it realized delivery--which is the way most people prefer to receive their pizza--wasn't representing as much of the business as it once did. The new model opens up another 2,000 potential sites for Pizza Hut over the next five to 10 years. Pizza Hut, which is part of Yum Brands Inc. YUM, +0.60% has about 8,400 locations, most of which are the traditional, dine-in restaurants. Delco Lite trades the red roofs and dining rooms for a more contemporary design that fits in to tighter places and focuses more on delivery and carry-out. Pizza Hut has opened more than 300, and is mostly building them, in favor of the larger, stand-alone ones. The new model is about half the size of Pizza Hut's traditional restaurants and costs about half as much for franchisees to build, opening up more potential sites in the U.S. 2. Market Trends (Past 3-5yrs) Pizza Hut, Domino’s Pizza and Papa John’s once again...
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...FASTFOOD / RESTAURANT INDUSTRY Introduction Indian QSR (quick service restaurants) Industry is growing very rapidly. It is a reflection of the change in the lifestyle, food habits and consumption pattern of the population. The incidence of Dining out, ordering from home as well as takeaways is rising creating an opportunity to cater to a wide mass of population. What was the domain of upper class, singles or forced bachelors, has percolated to all echelons of society. The incidence and value differ substantially, but penetration of such consumption habits is wide spread and is on the increase. Although largely an urban phenomenon, the pattern is also emerging in rural areas with better road connectivity, increased vehicle ownership and rise in income levels. In a country with more than a billion people, opportunities in India are abound. This has led to a rapid growth of the QSR industry. However, simultaneously, it has also created a canvass that has many failures and carcass. Several outlets have been closed, a large number are struggling, still a large number are just about surviving and lot many of them have not been able to find their feet. There are a lot who are successful, but, more importantly, there is almost a complete absence of national chains. This indicates to the fact that just having a lot of opportunities is not enough. These opportunities need to be harnessed and converted into profitable enterprises. This paper is an attempt to understand the industry, its...
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...Mc-Donald Vs Domino’s - Comparative Analysis Determinant Of Choosing Fast Food Restaurant And Their Service Quality BY:- ANUJ CHAUHAN (FINANCE + MARKETING) ITM UNIVERSITY, SITHOLI, GWALIOR ABSTRACT SERVICE QUALITY Parasuraman et al. (1988) introduced a 22-item scale, called SERVQUAL, for measuring service quality, the model has been widely adopted across industries. The scale was tested in 4 service settings different from those of the original test: a dental school patient clinic, a business school placement center, a tire store, and an acute care hospital. In service industries, customer satisfaction is always influenced by the quality of interactions between customers and the personnel involved in the contact services (1994). In the last decade, the movement towards quality had started to spread from the manufacturing sector to the service sector. The shift of focus to quality is basic for the service business to survive the competition, get acceptance from society, and be able to achieve its missions. In principle, the two main things closely related to services are expected quality and experienced or perceived quality. The first is the customers' expectations of service quality and the latter is the customers' perceptions of service quality. The customers will always assess the services they experienced by comparing them with whatever they expected or wished to receive. Services are behavioral rather than physical entities and have been described...
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...will represent the Danish market. An evaluation of the most suitable location for a Subway restaurant is made. To reach the above objective, the Subway franchising concept, the market situation, the customers and the competitive situation will be analyzed and evaluated. In order to understand the market in which the franchisee would operate, the size of the market, historic growth, potential growth, trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset...
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...cities will represent the Danish market. An evaluation of the most suitable location for a Subway restaurant is made. To reach the above objective, the Subway franchising concept, the market situation, the customers and the competitive situation will be analyzed and evaluated. In order to understand the market in which the franchisee would operate, the size of the market, historic growth, potential growth, trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsens or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset Boulevard, are analyzed in...
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...will represent the Danish market. An evaluation of the most suitable location for a Subway restaurant is made. To reach the above objective, the Subway franchising concept, the market situation, the customers and the competitive situation will be analyzed and evaluated. In order to understand the market in which the franchisee would operate, the size of the market, historic growth, potential growth, trends and macro environmental factors will be analyzed. The analyses will show that the fast food market is mature, and that it still holds some growth potential. To find out who the potential customers of the Subway franchisee might be, a survey was made. A questionnaire was used as a main tool to analyze customer preferences and the prospects of opening a Subway restaurant in Århus, Horsen s or Vejle. After evaluating the results of the questionnaire, Horsens was pointed out as the most attractive and suitable city to open a new Subway restaurant. The competitive situation is also analyzed. In doing so, the overall competitive situation within the fast food industry is assessed. Furthermore, three main competitors, namely McDonald‟s, Burger King and Sunset...
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...MARKETING STRATEGIES OFKFC | SUBMITTED BY: Ms. ASHNA KHANNA B.COM (HONS.) (2013-2016) Roll No. : 162 FACULTY GUIDE: STUDENT NAME: Mr. ADARSH ARORA ASHNA KHANNA DESIGNATION: ENROLLMENT NO.: A3104613162 COURSE & BATCH: B.com (hons.) ; 2013-16 AMITY COLLEGE OF COMMERCE AND FINANCE, NOIDA AMITY UNIVERSITY – UTTAR PRADESH CERTIFICATE OF ORIGIN This is to affirm that I, Ms. ASHNA KHANNA, a student of Under Graduate Degree in B.com (HONS.); 2013-2016, Amity College of Commerce and Finance, Noida has worked under the able direction and supervision of Mr. ADARSH ARORA, designation______________, This Project report has the essential standard for the partial fulfillment of the Under Graduate Degree in Commerce and Finance. To the best of our insight no piece of this report has been recreated from any other report and the contents are established on unique exploration. I am mindful that in the event of non-compliance, Amity College of Commerce and Finance is qualified to cancel the report. Signature (Student) ...
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...successfully infused an International brand with Sri Lankan tastes by developing a host of new dishes to suit local palates - like the Buriyani and Kotthu - along with the signature KFC meals. c) Products- Burgers Fried chicken Wraps French fries Soft drinks Salads Desserts Breakfast Specialties- Lunch Dinner Coffee Drinks d) Services- 08 Services e) Services names – Takes Reservations Walk-Ins Welcome Good For Groups Good For Kids Take Out Delivery Catering Outdoor Seating 1.2 Marketing Environmental frame work The marketing firm operates within a complex & dynamic external environment. It is the task of the marketing-oriented organization to link the resources of the organization to the requirements of customers. This is done within the framework of opportunities & threats in the external environment. THE MACRO ENVIRONMENT Political Technological Ethical THE MICRO ENVIRONMENT Suppliers INTERNAL ENVIRONMENT Customers Publics...
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...Grill, Inc. is a chain of restaurants, which serve quality and taste food across United States, United Kingdom, Canada and France. The name Chipotle was derives from the Mexican Spanish name for a smoked and dried jalapeno chili. Steve Ells founded the company in July 13, 1993. Its headquarters is located in Denver, Colorado, USA. There are 1430 restaurants operating in 4 countries and have 37,310 employees as of 2012. It is one of the fastest growing U.S restaurants. Chipotle had a net income of $278 million in 2012. The Company’s restaurants serve menu of burritos, tacos, burrito bowls and salads. The main goal of Chipotle is to serve high quality, delicious food quickly with an experience that not only exceeded, but also redefined the fast food experiences. The always focus on sourcing the best possible ingredients, serving the tastiest food, and the most capable team. In past Chipotle only advertise on radio, billboards but recently they are using television and social media to advertise. They are also running various program, events and promotions giving out free food to potential customers. Chipotle has the quote " Food with Integrity". The " Food with Integrity" refers to the people, animals, environment and FWI facts. Food with Integrity is good in order to help out with the health, economic condition of the surrounding the restaurant. We can find the food use by the different food industries but where does it all come from and how the ingredients are supplied have got...
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...Executive Summary Industry and macro-environmental analyses of the international restaurant industry provides an overview of the industry and reveals the conditions that impact competitiveness and profitability of the industry’s players. The industry is split in two sectors: full-service restaurants (FSR) and limited-service restaurants (LSR). FSRs typically have a wait-staff; LSRs do not have wait-staff. The top five countries, in terms of total number of foodservice outlets, are: China, India, Brazil, Japan, and the US. The industry is of low concentration. Combined, the top industry players make up less than 3% of total global industry revenues. In terms of size, 2013 global sales were $2.6T, up 4.9%. The 2013 global labor force was 62.4M employees, up 2.4%. In accordance with Porter’s Five Forces framework, the forces that shape competition in the restaurant industry have a moderate to high impact on competitiveness. There is a moderate threat of new entrants and a high threat of substitutes. Buyers have a high degree of bargaining power and suppliers have a moderate degree of bargaining power. The restaurant industry is highly competitive and experiences intense rivalry. In terms of macro-environmental factors, emerging markets around the world over are having an impact on how restaurants execute strategy both domestically and abroad. The growth of the middle class in emerging markets, such as China and India, presents a new demographic and an opportunity...
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...of telling their story about what their mission “Food with Integrity” means and is all about. By focusing their efforts on communicating this story they have increased brand recognition, value and have lead to increased financial performance. Company Overview Chipotle was founded in Denver, Colorado in 1993. Their goal from the beginning was to use high-quality raw ingredients, with classic cooking methods and a distinctive interior design and friendly staff. They wanted to step themselves apart from other fast food restaurants and competitors like McDonald’s, KFC, Taco Bell and Pizza Hut and ended up creating their own category called “fast-casual” (Phillips, 2010). According to the company website they have always had this statement of “Food with Integrity” but they didn’t promote it or explain what it was all about. In 2010, they addressed this by making it their mission statement and what they place value on. Food with Integrity means to know where all of their ingredients come from, be a flavorful as possible, understand the environmental and societal impact of their business and have a commitment to finding the very best ingredients raised with respect for the animals, the environment and the farmers. Problem The focus on the Food with Integrity message began in 2010 due to allegations from critics on questioning where they...
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...CHAPTER 1 The importance of understanding consumer behaviour CHAPTER CONTENTS Introduction Defining Consumer Behaviour Consumer Behaviour in Context Consumer Behaviour and the Marketing Mix Consumers and Relationship Marketing Consumers and Marketing Planning Antecedents of Consumer Behaviour Neuroscience Psychology Sociology Summary Key points Review questions Case study revisited: Pizza Case study: Center Parcs Further reading References LEARNING OBJECTIVES After reading this chapter you should be able to: Explain how the study of consumer behaviour has evolved. Show how consumer behaviour relates to marketing decision-making. Explain why relationships are harder to establish in business-to-consumer situations than in business-to-business situations. Describe the scope and nature of psychology and sociology. Describe the scope and nature of anthropology. Describe the relationship of economics with the study of consumer behaviour. Explain the role of exchange in improving people’s welfare. Explain how the terms ‘luxury’ and ‘necessity’ relate to consumer behaviour. Introduction Customer Someone who makes the decision to buy a product 01-Blythe-Ch-01-Part-1.indd 3 Every day we buy things. We exchange our money for goods and services, for our own use and for the use of our families: we choose things we think will meet our needs on a day-to-day basis, and we occasionally make buying decisions which will affect our lives for ...
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...Chipotle Mexican Grill in 1993 near the University of Denver. By putting his own spin on the traditional casual dinning approach, Chipotle is now an enormously successful publicly traded company with over 1,000 locations in 38 states. Although Steve was first drawn to the business model by its limited cost structure, he aspired to run his business in a sustainable manner. The company uses management accounting to ensure their high standard operating decisions will also provide the company with enough profit to remain competitive and continue to grow. Customer Value Proposition Differentiating themselves from the completion, Chipotle primarily focuses its branding and marketing campaigns around two value concepts, “Food with Integrity” and “Fast-Casual Dining”. These propositions are predominantly geared toward winning over its major customer segment, millennials. Chipotle’s core value proposition marketed by the slogan, “Food with Integrity” is intended to evoke the emotions of its customers with high standards of sustainability. The millennial generation is commonly referred to as the “connected generation”. This generation tends to be affluent, educated, and conscious of their surroundings. Chipotle’s strategy is to solidify its reputation with this generation by promoting humane food sourcing and organic farming. Chipotle’s second value proposition, “Fast-Casual, Dinning” resonates with many consumers who are looking for quick, healthy, affordable meal options...
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...tastecard: International Market Feasibility Study * Content’s Page 1.0. Executive Summary 3 2.0. Company Background and Target Market 4 3.0. Business Environment (PEST Analysis) 5-7 4.1. Political Factors 5 4.2. Economic Factors 5-6 4.3. Social Factors 6 4.4. Technological Factors 7 4.0. Market Demand Analysis 8-11 5.5. ‘Daily Deals’ and Discounts Demand 8 5.6. Growth of Chained Foodservice Operators 9-11 5.7. Mobile Technology Advancements 11 5.0. Current Supply Side (Market Gap) 12-13 6.8. La Four Chette 12 6.9. Groupon – France 12-13 6.0. Market Entry Strategy 14-15 7.10. Entry Strategy 14 7.11. The Value Chain Framework 14-15 7.0. Product Adaptation 16-18 8.0. Pricing Strategy 19-20 9.0. Distribution Options 21 10.0. Promotion and Communications 22 11.12. Social Media Websites 22 11.13. Pay Per Click Advertising 22 11.14. Partnerships with established brands 22 11.0. References 23-26 12.0. Appendices 27-30 * List of Figures Figure 1.0 – Strength of Economic and Technological Factors in France 6 Figure 2.0 – Consumer Foodservice by Independent Vs Chained Outlets 9 Figure 3.0...
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