Selection of competitive advantage
An overview of the marketing strategies of big brands likes McDonald and Wendy’s highlights the importance of branding. It is the force of a strong brand presence that drives the consumer taste and preference. Brands create a consumer expectation with their consistency and uniformity of service and quality. Strong brand awareness correlates with loyal consumer base and increased revenues in the fast food industry. An effective strategy to achieve this goal is the company logo that portrays the company’s image in the consumer minds.
Since the food sector is a competitive sector and there are number of companies selling the same products or substitutes in the market, the company might face difficulty initially in creating a niche market and develop a competitive advantage. Moreover, it is important to retain consumer interest and this requires efforts in product differentiation strategies that provide the consumers with greater choice and range of the product in terms of flavors and ingredients used.
A significant trend in selling of food products is that the consumers get bored easily and seek new tastes. There are many new innovative food products being launched into the market on a daily basis and businesses catering to changing consumer tastes and habits
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Burger King realises the importance of retaining local tastes and flavours to increase popularity among consumers. Respecting traditional practices and adopting local flavors earn considerable respect and acceptance among the locals of that country. Marketing mix program The company will adopt the following marketing mix strategies to ensure increased visibility and widened reach to consumers across all segments. Product strategy Burger King currently provides fast food chain outlets across numerous locations specializing in burgers and fries.
The company proposes to expand its services to cater to health conscious consumers providing them with a wide range of health food items through the Healthy Snacks Joints. These joints will be positioned as umbrella brands having the same logo and design uniformity across all its franchisees as the parent brand. Pricing strategy Price is one of the most significant aspects of marketing a product and establishing its presence in a new market environment.
Consumers are influenced by price tags to a considerable extent and hence an appropriate pricing strategy can have considerable influence on the performance of the product in new market conditions. Families and individuals in the higher income group are most frequent visitors to the fast food restaurant. The disposable income plays an important role in determining consumerism in this sector. The price on the menu card is not so important when it comes to catering to high disposable income group. But that restricts the customer base and may not be an ideal situation for the company.
Today’s lifestyle has incorporated the fast food industry into its daily schedule. The Wendy’s or the McDonald’s have menu cards that suit the pocket of the low-income segment group too. Recently McDonald’s had introduced the Dollar Menu where all items cost $1 only. It was a runaway hit with the teenagers and youngsters. The variance in price has enabled McDonald’s to attract customers from all segments. In response to this pricing strategy Wendy’s and other fast food chains also introduced low priced meals to suit the pocket of all segments.
Burger King will price its new range of health food products at relatively cheaper rates since the premium priced menu card does not find wide acceptance with all consumer segments. However, the management does not want to compromise on quality of the food items in lieu of low price. The menu card hence will offer competitive rates and certain food items at discounted rates to cater to larger segment of consumers. The distinctive advantage that this strategy will offer is availability of good healthy snacks suitable to all sizes of pockets.