Use the same product and organization you identified in your Week 3 Strategy and Positioning Analysis.*Product is a Tofu Burger being sold by McDonalds*Develop a 550-word analysis that includes:Evaluate the channels of distribution you will use to sell your product along with a description of how each channel partner will add value.Include at least one source of research that supports your analysis **I have attached the first analysis as a reference.
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Strategy and Positioning Analysis
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Strategy and Positioning Analysis
MKT/421
McDonald’s is a restraint classified as a Quick Service Restaurant (QSR) because it
serves fast food cuisine and has minimal table service. The company started in 1940, but started
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to take off when Ray Kroc became the new agent of McDonald’s to change its vision
(McDonald’s, 2017). He convinced the suppliers and franchisees to standardize practices. This
lowered costs for both parties. This also created a consistent taste across the McDonald’s
restaurants to satisfy customer expectations regardless of their location. This allowed the
McDonald’s corporation to expand rapidly. They sold 100 million burgers by 1958 and 100
billion around 1994. Their global footprint has them as the largest QSR in the industry today.
The restaurant industry is broken into several segments such as the QSR, the full-service
restaurant, eating and drinking place, and retail host segments. The QSR industry has grown
faster than any other segment over the last decade as the customer’s demand less time fulfilling
this basic need (Forbes, 2014). The QSR segment is further broken down by service that
separates certain company’s. For instance, Chipotle adds an experience of watching the food
being made along with upgrades in their dining area. They focus on the nutritional value of their
food. These additions in service raise the average ticket price, but have been a major contributor
to the growth in this segment. These fast-casual restaurants are growing at a faster pace than the
traditional QSRs like McDonald’s. Customer’s with low discretionary spending are consistently
choosing the healthier options available at this growing segment of the industry.
McDonald’s has attempted to create healthier options in the past, but the Tofu burger has
a better story than their other bids. They tried using wraps as their healthy alternative, but wraps
are available many places. Tofu burgers are much more filling than a wrap and can be ordered by
themselves as a reasonable lunch item. This fits better with the theme of McDonald’s as they
have always prided themselves on serving a great burger. The burger will be priced higher than
the other burger because it will use all organic ingredients and donate a portion to the American
Heart Association. This benefits the customer because they will be eating a healthier product, but
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it will also benefit others in the battle against heart disease. The story accompanying the roll out
of the burger is what will make it succeed where other healthy options have failed.
The burger itself is a terrific option for those that are looking for something healthy, or
just a tasty alternative. In keeping with the McDonald’s tradition, suppliers and franchisees will
be on the same page with creating this product. New suppliers will need to be secured as these
ingredients do not currently exist in the McDonald’s supply chain. It is of upmost importance
that these are quality organic materials that can be created on a large scale. The ingredients will
be experimented on by different franchises until the best Tofu burger can be mass produced. This
product will be able to order as is for vegans, but additional options are always available for
those that just want to forego beef during their current visit. This new burger will be tasty enough
for all customers’s, but designed specifically for those looking for healthier options in the QSR
format.
Tofu Burger SWOT
Strengths
-Tofu has a competitive edge of providing fresh
foods
-Providing a healthier lifestyle for the economy
-Competitive Prices
-Unique Product
– Important source of protein for vegans,
vegetarians
Opportunities
-Location can be offered worldwide
-New Product
-Low cost for customers
-Gaining a tremendous amount of customers
-Loyal customers
Weaknesses
-Competitors
-Crops originating in soy to create tofu
possibilities of being genetically modified
-Marketing could be a challenge
-No Partnership
Threats
-A lot of Competition in food industry
-Customers hesitant on new taste
-Large company buyouts such as McDonalds,
Burger King, Five Guys, In and Out
-Downturn in the economy people spending less
on eating out.
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In the food Industry there is a very large competition to compete against. Our analysis
will be based upon our competitors, products, growth and Pricing. In a thriving economy people
tend to convert to a healthier way of living. In the makes of creating a Tofu Burger to meet the
needs of our customers comes with competitors such, McDonalds etc. to go along with it.
McDonalds is a very large company nationwide serving millions of customers daily. It is in the
best interest to provide the best leading tofu burger beating our competitors by providing a
healthy burger creating a sense of loyalty and trust. Tofu burgers will provide fresh produce and
non GMO creating the best way of freshness for customers. Plan to make the most affordable
menu for customers to gain cliental along with a good review. In plans of supplying and opening
locations across the nation.
The McDonald’s tofu burger is directed towards consumers that are health
conscious. Healthier options are becoming more popular in fast food restaurants. Many fast food
places have added salads, wraps, and lettuce wrapped options. McDonald’s aims to target
individuals that are looking for a healthier alternative and something that is not offered at various
other restaurants. McDonald’s aims to focus on the unique item of the tofu burger, which can
only be purchased at their restaurants. Since the burger is being served at McDonalds the item
will remain affordable, however, due to the organic ingredients and the fund raising aspect the
burger will be priced slightly higher than the average McDonald’s hamburger. The target market
for the tofu burger is not just the health conscious, but also focused on males and females starting
in their 20’s to their mid to late-40s. These are the age ranges when most individuals become
parents or have children that are active in the community. They live a busy life and are not
always able to make healthy, organic, nutritious foods at home. The tofu burger gives these busy
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individuals a healthy option as they treat their children to a McDonald’s treat. In addition to
targeting health conscious and busy adults, the tofu burger is also for the individuals that have
gluten allergies or prefer a gluten free diet. Tofu is gluten free and provides consumers with a
gluten free option at a quick serve restaurant. The tofu burger, while cost more than the average
burger at McDonalds, provides an affordable, gluten-free, healthier option for those looking for a
meal on the go.
Tastes are shifting and lifestyles are changing. Consumers are more aware, now more
than ever, of what their food is made of and the health risks that some ingredients may cause.
People who seek out quick meals are looking for higher quality ingredients and healthier options.
There is a great need for healthier options in the fast food industry; especially for those who may
choose not to eat animal products, have food allergies, or even heart disease, which is largely due
to the food we consume. Over the last few years McDonalds has recognized those needs and has
added healthier options, such as fruit, to their menu. Offering a tofu burger can meet the need to
have healthier options and can provide consumers with many health benefits as well. Tofu is a
naturally gluten free, soybean product that contains little calories, and is a wonderful source of
protein, which is a huge benefit for vegans and vegetarians. Tofu also decreases the risks of
heart disease, obesity, and promotes an overall healthier lifestyle.
McDonalds is a huge force in the fast food industry and is continually proving to be more
powerful. McDonalds started as a small, single drive in restaurant and has grown to well over
35, 000 locations in more than 100 countries. McDonalds has developed itself to be a family
oriented, inexpensive restaurant in the fast food industry. We have a close range for our
customer base and a low cost strategy. We have broadened our horizon in recent years so that
we may appeal to more customers. Because of the increasing need for healthier options, we
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decided to change up our menu to include healthier food. Our focus is to provide quick delivery
time while keeping the cost of food affordable and healthier. What sets us apart from our
competitors is that we strive to be transparent with our customers. Changes to our food practices
and adding healthier options have helped us amass positive feedback from our customers. We
advocate choices, real ingredients, and great taste. Our focus is to support happy, healthy kids
and families through charities and providing healthier menu options.
References
Forbes. (2014, June 23). How The Fast Casual Segment Is Gaining Market Share In The
Restaurant Industry. Retrieved from
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https://www.forbes.com/sites/greatspeculations/2014/06/23/how-the-fast-casual-segmentis-gaining-market-share-in-the-restaurant-industry/#142df6bcbfe5
Kerin, R., Hartley, S., & Rudelius, W. (2015). Marketing (12th ed.). New York, New York:
McGraw-Hill.
McDonald’s. (2017, N.D.). Our History. Retrieved from https://www.mcdonalds.com/us/enus/about-us/our-history.html
Roots, G.N. (2017). Examples of a Target Market. Chron.com. Retrieved from
http://smallbusiness.chron.com/examples-target-market-11421.html
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