Differentiation

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Differentiation Positioning of Fast Food Company
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• Professor Cheng Nan Chen
• Students Lim Veron Nardy M987Z210
• Yoseph Kaburuan M987Z213
• Sermsri C.
  M987Z220
• Lee Po Kun
  M9870114
• Nguyen Duy M987Z218
• Pham Thi Nguyet M987Z241

• Differentiation and Positioning
• Group 7

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Contents
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Introduction-Fast Food

• Fast food is the term given to food that can be
  prepared and served very quickly.
• Fast Services Food General term used for a
  limited menu of foods that lend themselves to
  production-line techniques suppliers tend to
  specialize in products such as hamburger, pizzas,
  chicken, or sandwiches.

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• Fred DeLuca founded the SUBWAY chain in
  Connecticut, USA, in 1965. The company has since
  grown into a multi-billion pound business, with
  31,949 outlets in 91 countries.
• The SUBWAY chain aims to increase the number of
  outlets it has in the UK and Ireland to over
  2,000 stores by 2010.

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• In 2009, the SUBWAY chain was ranked the number
  one franchise opportunity by Entrepreneur
  Magazine. 

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• In 2008, the SUBWAY chain was voted the No. 1
  sandwich provider in the British Sandwich
  Associations (BSA) sandwich industry report. 
• In most years, about 70 of new SUBWAY
  franchises are sold to existing SUBWAY owners. 
• The low fat menu is popular with customers all
  around the world. 

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Jared Fogle

• Diet Start Date Mid-March 1998
• Height 6' 2''
• Starting weight 425 pounds
• Current weight 190 pounds

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• The Jared Diet
• New healthier sandwiches less than 7 grams of
  fat
• Menu for lunch Six-inch turkey, no mayo, no oil,
  hold the cheese
• Menu for dinner A footlong veggie, baked potato
  chips, diet beverage

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McDonalds

• Background - The McDonald's Story
• The McDonald's story began in 1940 when Dick and
  Mac McDonald opened a highly successful car-hop,
  barbecue restaurant in San Bernardino, Calif.
• They temporarily closed their restaurant, built a
  simplified menu around their best-liked products,
  designed a more efficient interior and re-opened
  with self-service at the former car hop windows.

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McDonalds

• Thus, they invented the self-service, drive-in
  concept that was a limited-menu, paper-service,
  hand-out operation, featuring 15-cent hamburgers,
  19-cent cheeseburgers, 20-cent malts and 10-cent
  French fries.
• After a slow start, business boomed. In 1952,
  American Restaurant Magazine ran a cover story on
  the phenomenal success of the brother's new
  concept.

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McDonalds

• In 1955, Ray was granted exclusive rights by the
  brothers to develop and franchise McDonald's
  drive-ins for the United States. Ray formed
  McDonald's System, Inc. in 1955. Ray opened the
  9th McDonald's, his first, in Des Plaines, IL, in
  April 1955. In 1961, Ray bought from the
  McDonald's brothers the proprietary rights to the
  McDonald's system, including all rights to the
  rest of the world. The organization that Ray
  founded -- today's McDonald's Corporation --
  proceeded to add more than 23,000 McDonald's
  restaurants and 4,500 franchisees across more
  than 111 countries around the world.

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McDonalds Strange Menu Around the World

• India
• In India, there are no Big Macs because the Hindu
  people dont eat beef.
• However, they have the Maharaja Mac, which is a
  Big Mac made of lamb or chicken meat. There is
  also a vegetarian burger, the McAloo Tikki.

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McDonalds Strange Menu Around the World

• Germany
• Its bottoms up in Germany, where McDonalds
  serves Beer!

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McDonalds Strange Menu Around the World

• CANADA
• In parts of Canada, have a lobster dinner with
  the McLobster lobster roll. Pardon me
  McHomard (in French).

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McDonalds Strange Menu Around the World

• JAPAN
• Japan totally reinvents McDonalds with its Ebi
  Filet-O (shrimp burgers), Koroke Burger (mashed
  potato, cabbage and katsu sauce, all in a
  sandwich), Ebi-Chiki (shrimp nuggets) and Green
  Tea-flavored milkshake!

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McDonalds Strange Menu Around the World

• NORWAY
• In fish-loving Norway, they have the McLaks, a
  sandwich made of grilled salmon and dill sauce.

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McDonalds Strange Menu Around the World

• HONG KONG
• Rice-loving Hong Kong, has of course Rice
  Burgers, where the burgers are in between, not
  burger buns, but two patties of glutinous rice.

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Previous position Challenges
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CHALLENGES - Subway
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McDonalds
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CHALLENGES McDonalds
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MACRO ENVIRONMENTDemographic Environment

• Age Structure
• Young people become the target of fast food
  industry.
• The younger the person, the more they eat out at
  fast food restaurants.

• Working Woman
• The increasing number of working woman, makes
  the need of fast food service growing.

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MACRO ENVIRONMENT (Cont.)Cultural Environment

• The young people attend to eat together with
  friends or co-workers.
• The raise of health consciousness.
• The need of natural product and demand from
  customer for company

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MACRO ENVIRONMENT (Cont.)Economic Environment

• Families that have more money eat out more.
• The larger the family, the less they eat out,
  but the times they do eat out, they visit
  fast-food restaurants more.
• People spend more money on fast food than they
  do on higher education, personal computers,
  software or new cars. They spend more on fast
  food than on movies, books, magazines,
  newspapers, videos and recorded music - combined.

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MICRO ENVIRONMENT Company Top management
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MICRO ENVIRONMENT Customer
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MICRO ENVIRONMENT (cont.)Competitor

• Most of fast food companies have competitive
  marketing strategy globally to get the target -
  Become the number one position in fast food
  industry with healthy product.
• Franchisee is one of the most popular meanings in
  marketing strategy.
• Build up the large restaurant system as more as
  stronger.
• List of fast food restaurants
• McDonalds
• Burger King
• Subway
• Pizza Hut
• Yum!
• AW Restaurants
• And so forth.

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MICRO ENVIRONMENT (cont.)Media Publics
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Subway Swot analysis-Strength

• 1.Image
• The essentials of the Subway eat fresh Image
• 2. Transparency of Preparation
• At Subway Restaurants you can see all
  ingredients YOU choose for your Sandwich.
• You can observe every step of preparation in
  front of you
• You are always asked for every single vegetable
  in order to focus you on the live preparation
• 3.Emotional and psychological items
• The colours and materials that are used for
  furnishing the design elements of a Subway
  Restaurant are always natural wood tones, brown,
  green and red

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Subway Swot analysis-weaknesses

• Its competitor, such as McDonalds, provide
• sophisticated service 24 hours open
• focusing on people want to diet
• Opportunity
• health eat style is a trend
• In some country, subway is not very well-known

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Subway Swot analysis-Threats

• Shops fast food appear more and more over the
  world
• Competitor
• Reduce price McDonalds retaliated by reducing
  the price of it burger to 99 cents in the US and
  99 pence in the UK.
• Understand customers need Jollibee in the
  Philippines, which had a similar business model
  to McDonalds, offered adaptation, such as spicy
  sauces that appealed to the local markets

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New strategy to repositioning
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Transparency of Preparation

• All ingredients for your Sandwich.
• Observe every step of preparation
• live preparation
• The nutritional information provided for insight
  and online

Emotional and psychological items

• The nature color materials wood tones, brown,
  green and red
• Subway Restaurant surrounding eating food and
  fresh food.
• Friendly atmosphere and a feeling of trust

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Repositioning

• Update the stores interiors
• Open new Subways stores in US and abroad
• Using the images of fresh tomatoes and other
  vegetables in New York subways system

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Personality Character
Sports Activities Associates Healthy Nutrition

• At MD the emotional free like home and have
  fun messages are dominant.
• No transparency of preparation, BUT engagement
  and friendship giving the customer confidence
  concerning healthy food.
• No direct fresh and healthy attributes in
  main advertisement fact treated as an assumption

• MD sponsors lots of sports events and charity
  events
• The engagement in indirect ads for a life style
  that MD identifies with.
• Meeting point for young people who want to have
  fun combined with easy and fast food
• Supporting various events MD uses the media to
  push its image and make the name omnipresent no
  chance to escape

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Some activities and PR campaigns in 2006

• Bag a meal
• Whos next basketbal
• Sports
• I am Asian

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RECOMMENDATION AND CONCLUSION

• McDonalds has improved their menus by adding up
  fresh green salad, which implies healthiness.
• Aside from this, they could adapt into the
  environment where they are in and give out tastes
  that could relate to different countries.
• Fast food industry has to supply various
  products and they are much more healthy.
• Due to fast food, people do not have to spend
  more as much time on making their own food, doing
  their taxed or travel.
• Fast food companies has been conducting
  marketing strategy to create new image and
  reposition for a global future.
• Franchise is a global system to build up a global
  brand in fast food industry.

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• Question
• Discussion

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Question 1 What do you consider to be the
definition of globalisation? What forces are
driving its development?

• Answer
• Globalization is the system of interaction among
  the countries of the world in order to develop
  the global economy.
• 2 main forces are driving it
• The development in fast technology
• Condition of economy.

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Question 2 Identify the reasons why global
strategies sometimes fail in their objective to
achieve a global marketing advantage?

• Answer
• Because the global strategies only focus on
  enlarging more and more stores over the world,
  this make a surplus to customer demand while
  they dont focus on caring much about the change
  in eating tendency of customer .

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Question 3What is the rationale behind mega
mergers and major acquisitions? How will they
lead to global competitive advantage?

• Answer
• International Competition. Mergers can help firms
  deal with the threat of multinationals and
  compete on an international scale
• Mergers may allow greater investment in RD This
  is because the new firm will have more profit.
  This can lead to a better quality of goods for
  consumers
• Greater Efficiency. Redundancies can be merited
  if they can be employed more efficiently

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Question 4What are the critical success factors
in developing a global brand? What additional
factors would you consider to be necessary in
developing a successful global e-business brand?

• Answer
• Critical success factors
• adapting the strategy to country-specific
  situations
• effectively communicating the brand across the
  world (both within and outside the organization).
• Successful global e-business brand

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Question 5What are the main challenges that are
faced by international managers in managing and
controlling a global marketing strategy? What
advice would you give to a manager with this
responsibility?
Cultural and environmental differences are the
main challenges that are faced by international
managers in managing and controlling a global
marketing strategy. Key words include eating
habits, GDP, economic, political situation
competition. For example, Different countries
have different eating habits. The Chinese have a
saying Good things for breakfast. Eating a big
meal for lunch but eating less at dinner.
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Cont
Many Americans agree that one should start the
day with a good breakfast, but their ideas about
lunch and dinner are different. Most Americans
only give themselves a short time for lunch. So
they eat a small lunch. After work they will have
more time to eat a big dinner. Also a quiet
dinner at home with all family talking about
their day is a way to take a good rest after a
long, hard day of work. The manager must monitor
environments which impact consumer behavior very
closely, in order to develop forecasts, goals,
and plans for international activities.
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