Challenges Inherent in Repositioning a Fast Food Chain

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Table of Contents

Introduction
Discussion
Conclusion
References

Introduction

Repositioning is considered to be a very important process for any business because it involves a number of significant elements from the marketing sphere. The basics of repositioning touch upon such steps like product identity, its possible changes, relatives among the competing products, and evaluation of the opinions from the target market.

A careful and successfully carried out repositioning process can benefit the company in a very great way. While trying to reposition fast-food food, there are a number of challenges involved: highly incurred costs, hardly evaluated opinions, constant demand of products. Much money has to be spent during the repositioning process, and, in a period of financial crisis, as is the current situation, it is very important to come up with some cost-effective strategies to succeed in the chosen process.

The company should be fully aware of the new position that seeks to be established because a great amount of losses is possible and inability to recover from the crisis within a short period of time prevent proper development of activities. As a result of repositioning, the quality of the products has to be improved, the competing abilities may become stronger, and the fast food organization under analysis is able to define its weak and strong sides.

Discussion

Importance of SWOT Analysis in Repositioning

To come up with an appropriate up-to-date Subway product line, it is important to carry out a SWOT analysis so that it will be easy to define several appropriate strategies on how to advertise and improve the product. A SWOT analysis is very important in the repositioning process.

However, the macro trends are also important and help to determine the best approach to use in as far as repositioning and advertising are concerned. Based on the SWOT analysis, it is apparent that there are several gaps that need to be put into consideration. While trying to update the product line and advertising of Subway, it is necessary to note that the current macro trends which are characterized by a great economic recession and improved technology (Bedekar, 2009).

Unfortunately, due to the current economic crisis, it is not recommended for the organization to address all the gaps involved. Under the conditions formed, the company should focus on how to maintain its customers as it continues to draw more from its competitors. The only way of doing this would be to make necessary improvements on the product and passing on information about the product. To achieve the purposes set, it is more reasonable to improve the chains of fast food and to set the value of the products at affordable prices.

Marketing strategy to be adopted by the Subway fast food chain based on the SWOT analysis

Using up-to-date technology. An appropriate marketing strategy is what any fast food chain needs to update: its product line as well as its advertising in light of the current macro trend has to undergo a number of changes. The best way of how an organization may update its product line is the method of improving its product decoration.

As obtained from the SWOT analysis, the company’s decoration was perceived to be outdated when compared with its competitors. The appearance of a product is what most customers use to decipher if the product is really worth buying in such times of financial difficulty.

Up-to-date decoration of franchise. Currently, e-commerce has brought many changes with regard to marketing. The Subway should therefore us this new technology to do its marketing. While using e-commerce to market products, appearance of the product is very important, therefore the organization should improve its delivery of products with regard to decoration as well as the means of transmitting information (Hooley, Piercy, & Nicoulaud, 2008).

Fast food production line is the second largest fast-food chain in the world. Nowadays, under the currently developed technologies, it would be only appropriate if such a prestigious company was up-to-date with the on goings in regard to the macro trends. Recent studies show that the fast food representatives tried to reposition its product lines in relation to healthy and tasty products.

In Figure 1, comparison of the products of different fast food restaurants proves that Subway takes leading positions in the production of healthier and less calorie sandwiches. Each company seeks to present appropriate production improvements in accordance with the same parameters. Therefore, it would be very important for the fast food chain to reposition its product line while putting into focus the frame of reference and the associated points of parity.

Figure 1: Sandwiches in Different Restaurants Compared

Fast Food Restaurant	Size of a Sandwich	Calories	Total Fat	Saturate Fat
McDonald’s	147	360	16	3.5
Subway	238	310	5	1.5
Hardee’s	250	370	21	7
Burger King	144	480	31	5
Jack in the Box	266	530	28	7

Efficient services in delivery. The product and associated mode of delivery have to be taken into consideration as well. When the time to product or service delivery comes, an entrepreneur has to be ready to ensure the quality of a product and prove that it goes hand in hand with its appearance.

The Subway is recognized to have the healthiest products of all the other fast food chains. With the help of Figure 2, it is possible to find out what sort of components are inherent to the production under consideration, for example, for their Roast Beefs. Though a number of calories exceeds the number of other useful elements, the ratio of harmful and healthy elements is better than in other organizations.

Figure 2: Components of a Subway Roast Beef

However, its décor and service delivery system are not up to standards. The Subway therefore should consider quality products as its frame of reference while other factors like appearance, decoration, and the commitment of efficient service delivery should be the main points of parity. The fast food chain can decide to make deliver of a tasteful health sandwich, burger, or any other product the consumer may choose at their place of choice and convenience (Keller, Sternthal, & Tybout, 2002).

Frequent communication with customers. The fast food chain should use updated technology with regard to FaceBook, Twitter, Yahoo, and other related websites which have the youth as the main target because of their unbelievable passion to fast food restaurants and the services available.

The Internet is the best media channel by means of which the fast food chain may develop its business. Through the Internet, the fast food chain will target a larger market share. In times of financial crisis, as evident in the current macro trends, constant communication and information transformation between the customers and sellers is very important. This is because information is very powerful at such times as opposed to commercial images.

E-commerce is the best option to use during the processes of sending messages as opposed to delivery through post so as to save on cost and time (Prescott, 2002). Given the current economic recession, it is obvious that customers have also changed their preferences in regard to the way of how their money could be spent.

The Subway fast food chain should make best use of the financial crisis to increase its market share. During an economic recession, consumers will not opt to spend more; therefore the most prudent way of handling this change in behaviour would be to reduce costs and prices of the products.

According to Hooley (2008), an increase in marketing expenses does not lead to loss but does lead to the considerable gain with more profits. In addition, the market share increases. It is very important for the fast food chain as it is still struggling to establish a steady customer base as opposed to its competitors (Hooley, Piercy, & Nicoulaud, 2008).

Current macro trends. The current macro trend of economic recession is associated with a change in advertising. It is very important to understand the behaviour change of customers. During a financial crisis, a customer will be more inclined to information instead of imaginary commercials.

Therefore, the mode of advertising changes to one that is assuring and convincing enough as to build trust and confidence within the customer. This is because, during the financial crisis, the customer is in considerable need of a commodity and company that he or she can trust (Ferrell, & Hartline, 2002).

In spite of the fact that promotion costs should not change, it is important to come up with commendable ways to promote the products. In such economic hard times, the customer is interested in obtaining the best value for his or her money (Tudor & Silvia, 2009).

Conclusion

A repositioning is an obligatory process that has to be taken by any business organization in a prudent manner. The Subway product line needs to be updated with regard to quality products as the frame of reference with decoration and appearance as well as commitment in service as points of parity.

In times of financial crisis as is with the current macro trend, building a good relationship with customers is very important. As a result, the market shares of the business is widened in the way that, even after the downturn, the market shares will still be large and in huge demand among potential customers.

References

Bedekar, VN 2009, Service Management. Microsoft PowerPoint presentation. Web.

Ferrell, OC & Hartline, MD 2002, Marketing Strategy, 4th Edition, Thomson South-

Western, United States of America.

Hooley, G, Piercy, N & Nicoulaud, B 2008, Marketing Strategy and Competitive Positioning, 4th Ed, Pearson Education Limited, Harlow.

Keller, KL, Sternthal, B & Tybout, A 2002, Three Questions you need to ask about your Brand, Harvard Business Review, Harvard.

Prescott, AC 2002, “Marriott Redefines the Shared Services Model”. Outlook, 1, 88-89.

Tudor, N & Silvia, P 2009, Marketing Strategies used in Crisis-Study Case, viewed on <https://mpra.ub.uni-muenchen.de/17743/1/MPRA_paper_17743.pdf>

http://www.acaloriecounter.com/fast-food.php

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