McMalin's Prospects for Success in the Fast-Food Market - Case Study Example

Executive Summary This report examines the marketing plan for McMalins fast food which will help in formulating, implementing and measuring marketing strategies. To develop the marketing strategies different aspects is being considered by identifying the market entry strategy, the product life cycle determining the position where the organization is and the manner it plans to work; identifying whether the fast food giant looks to follow a pioneer or a follower strategy; the strategies pertaining to growth, shakeout, mature and decline phases; the organizational structure which will be used to gain maximum efficiency; the marketing plan based on the evaluation of the above directions and finally the marketing metrics and audit. It has been identified that McMalins fast food will act as a pioneer and a leader so that they remain innovative. This will be matched by improving its service standards and repositioning its services for obese customers. McMalins fast food has also developed a process for different phases of the business and has looked to use the different resources in the most effective manner. McMalins fast food also proposes to have a matrix form of organizational structure and will look to follow a horizontal form of structure. The analysis of the different internal and external factors also highlights the manner in which competitiveness can be gained and will bring the required transformation through which better gains can be established. This will increase that the objectives are achieved and will ensure success over a longer period of time. Table of Contents Introduction 3 Basic idea about the service 3 Product Life Cycle 5 New Market Entry 6 Pioneer or Follower Strategy 8 Growth Strategy 9 Shake out, Mature and Decline Strategy 11 New Economy Market 13 Organizational Structure 14 Marketing Plan 15 Marketing Metrics 16 Marketing Audit 17 Conclusion 18 References 19 Introduction This report examines the marketing plan for McMalins fast food which will help in formulating, implementing and measuring marketing strategies. To develop the marketing strategies different aspects is being considered by identifying the market entry strategy, the product life cycle determining the position where the organization is and the manner it plans to work; identifying whether the fast food giant looks to follow a pioneer or a follower strategy; the strategies pertaining to growth, shakeout, mature and decline phases; the organizational structure which will be used to gain maximum efficiency; the marketing plan based on the evaluation of the above directions and finally the marketing metrics and audit. The overall impact will be on correctly formulating a marketing strategy for McMalins fast food by keeping in mind the different facets and aspects through which improvement can be done and better productivity for the long term can be ascertained. This will thereby help McMalins fast food to transform its business and develop the required parameter based on which superior performance can be delivered. Basic idea about the service McMalins fast food was founded to offer the best services in the fast food industry. The company has expanded to over 40 countries around the world. The company provides a line of most preferred fast food in many of its outlets. The company is always open meaning it operates for 24 hours in a day because their employees work in shifts to ensure all their customers are given the services when they need them. The company has a lot of staff because they work in shifts of six hours there one outlet have over a hundred employees. The organizational structure of the company is led by a manager and every department is led by a department manager who are charged with the task of overseeing those staff under them person their duties in the best interest of the company and the interest of the customers. Mission and Vision of the company The aims at satisfying the fast food customers in the areas where they operate by providing what they want. This means that the company provides products and services as per the needs of the customers and according to the set standards in the industry. This is to ensure that they get as many customers as possible to keep the business operational in Australia. To provide the best services in the fast food industry so as to win the largest market share. The company operation in many countries means that it faces diverse cultures and eating habits. Therefore, the company is working to ensure they provide products and services that in line with such cultures and eating habits but not to change the status quo. This will ensure acceptability in most of the areas it sets up its operations. The company’s providing of a wide range of products to people of diverse culture means that even those who travel a lot still get the food they prefer in the countries where McMalins operate because there is international variety (Bateman & Snell, 2004). There are staffs that have expertise in different international languages to ensure that the international customers are given the services just like the local customers in case they do not understand the local languages. Product Life Cycle The product life cycle is an important determinant of the product or services because it helps to understand the point at which the product or service falls and helps the management to develop strategies based on it. Identification of the correct position ensures better use of resources and provides the framework through which better development for the future can be ensured. The complete details of the product life cycle is as Introduction: This is a very nascent phase and is when the product or services have been launched in the market. This phase is characterized by very little information pertaining to the product or service being available in the market and the organization has to indulge in different marketing and other strategies to ensure better productivity. This phase requires continuous investment for better growth (Ireland, Hoskisson and Hitt, 2007). Growth: This stage is characterized by more returns than the risk and investment that the business takes. The period is characterized by more and more people visiting the stores and purchasing the product (Ireland, Hoskisson and Hitt, 2007). The phase helps the business earn super normal profits and provides an opportunity through which better growth and returns can be ensured for the future. Maturity: This is a phase where the product has reached its peak and the return slows down. This phase requires new strategies and methods to bring a change so that the present phase can be converted into a growth one (Ireland, Hoskisson and Hitt, 2007). During the phase the returns slows down and the business becomes stagnant with little innovation. Decline: This is a phase where the business returns fall despite of the increased investment which the business makes in that direction. This phase is characterized by reduction in profits and businesses looks to get out of it by closing the business so that investment can be saved (Ireland, Hoskisson and Hitt, 2007) McMalins fast food looks to work on the placed on the maturity phase where the returns have become sluggish. Since, the fact food chain has been working on the same business strategy and has followed the same business model with little changes in different directions it has impacted the overall productivity of the organization. His phase requires that McMalins fast food looks towards some innovative strategy which will be achieved by identifying some new ways through which more and more people can be attracted towards the store (Jeffrey, 2003). This will help McMalins fast food to move from the maturity stage to the growth stage and will provide an opportunity through which business opportunity will increase. This will also ensure that McMalins fast food based on the present stage can develop future strategy and align the resources in such a manner that wastage reduces and maximum gains can be availed. New Market Entry New market entry is a very wide connotation and covers a lot of important areas and determines the manner in which the organization looks to formulate strategies for the future. McMalins fast food which already has a presence in over 40 countries across the world looks towards identifying a new pattern or mechanism which will help them to enter a new market or create something new. New market entry can take different form and structures like entering into a new market or developing a new product line or repositioning its products or aiming to reduce cost and so on (Firoziyan, Hasangoli & Stiri, 2009). Each and every strategy is aimed at ensuring that the business is able to move from its present style of working and adopting a new model or process through which efficiency and effectiveness can be achieved. McMalins fast food looks to identify a mechanism which will make people perceive that a new organization with different values and service is looking to provide services. McMalins fast food on the backdrop of changing business environment and change in consumer taste and preferences prefers to identify the following mechanism to enter a new market McMalins fast food aims at repositioning its services differently. McMalins fast food is looking to make changes in their style of cooking and presenting food by moving towards products which are better fit for consumption and are grown organically. This will be matched by the fact that the different offerings will also attract people having obesity as the food will be prepared with little fats and oil (Luther, 2011). On top of it the positioning will also help to bring a change in the targeted section of the society as the restaurant will then aim to attract people who are obese and look for food which are healthier and helps to fight obesity. McMalins fast food is also looking to improve their product line where they will look forward to add different cuisines belonging to different nations like Thai food, Chinese food, Indian food, Mongolia food and so on. The new additions will keep intact the present form where they look to meet the cultural requirements (Luther, 2011). Adding a new product line and developing a line of production will help to further attract people from different areas and sectors and will help to bring the required change in the process of serving customers McMalins fast food has thereby identified two strategies to enter the market and will look to adopt one which will help to improve efficiency and ensure best possible use of the resources. Pioneer or Follower Strategy Determining the manner in which the organization looks to formulate its strategy for the future provides an opportunity to either be a pioneer or being a follower. A follower is someone who looks to follow others and aim to work on the same business model so that they can reduce the risk and are ready to work at lower returns (Gooderham & Nordhaug, 2003). Pioneers are innovators and look to develop or formulate new and innovative strategy so that differentiation can be ensured from others. The risk for pioneer is high as the chances of failure is high but being able to deliver on the required platform ensure higher return and provides an opportunity to be an icon for other where they can lead others to work on the same formula. McMalins fast food looks to work as a pioneer in their respective field as the experience and brand image which the fast food chain has acquired over the past few decades has provided them with the respective expertise based on which they can look to innovate and develop new strategies. Based on strategy which McMalins fast food has formulated has resulted in the following pioneer strategy being adopted by McMalins fast food Looking to target the niche market where McMalins fast food will look to tap people who are obese and are in search for food which has less fat and oil. Since, McMalins fast food has looked to restructure its business and looks to work on the formula of having food for obese people so McMalins fast food on the forefront looks to be a pioneer in that direction and aims to provide food to people who are obese. McMalins fast food further aims at a skimming strategy where they will look to look into the different needs and requirements of the society so that they are able to develop products based on the customer needs and demands. Further, skimming will also provide an opportunity through which McMalins fast food will be able to restructure its business better and will be able to bring a change in the business through which they will be able to target the correct niche market. This will thereby help to formulate strategy for the future and will be able to deliver higher standards based on the market requirements. Growth Strategy Growth strategy provides an opportunity where an organization based on its resources, capabilities and future objective can decide to choose whether it wants to be a leader or a follower. Deciding the future strategy clearly helps to give a sense of direction and ensures that the resources are put in the best use. An organization which looks to work as a leader looks to innovate and then decides between market expansion, flanker, confrontation, fortress and contraction strategies (Cateora, Mary & Graham, 2009). On the other hand a follower as the name suggest follows other in the organization and based on their future strategy decides on gorilla, frontal, leapfrog, flank or encirclement strategies. The overall objective which has been decided helps to develop the required framework based on which the organization works. McMalins fast food has continuously being innovative and further aims to reposition its product and services by providing something new that will differentiate them from others. This has made McMalins fast food looks at a growth strategy where they look to work as a marker leader and create a niche market through their distinguished service. For the growth strategy McMalins fast food looks to endeavor on the following Confrontation Strategy: McMalins fast food aims to work on the confrontation strategy to ensure growth for its services. The fast food giant is already working on repositioning its brand through product improvement and product line extension which will help them to deal with the competition in a better manner. This will also act as a juncture based on which McMalins fast food will be able to bring a change in the fast food industry Market Expansion: McMalins fast food is looking to solidify its position by looking to target different market segment. McMalins fast food already has a presence in the market and looking to repositioning itself as a fast food giant which is fit for obese people it is trying to attract a different segment of the society and looks to develop and ensure future growth strategy based on it. This will help McMalins fast food to have a presence in different market segment and will diversify and reduce the risk which will increase the return for the business. Shake out, Mature and Decline Strategy Organizations also tend to develop different strategies which will be implemented during the different phases of the business. Shakeout is a period where the business starts to find difficulties in sustaining its market share and the competitors start to overtake the market leading to a situation where the player has to look at formulating strategies which will become effective at that juncture (Fletcher and Crawford, 2011). McMalins fast food during the shakeout period will aim at the following Competitive Advantage: McMalins fast food will aim to get a competitive advantage by working as a differentiator and look to attract people loyal people. This will be supported by different additional facilities and offers so that customer satisfaction can be enhanced and a pool of loyal customers can be developed Transition: McMalins fast food will look at transition because the competitive period will provide for an opportunity of change where the organization can look to use the different growth opportunities and bring the required transition change which will multiply the opportunities and improve the chances of being successful. McMalins fast food thereby has developed a process through which the period of shakeout will be properly dealt. Mature is another phase which the business will encounter and has to be dealt in the most effective manner. This is a phase where the market has reached its peak and there as many similar competitors in the market. The phase calls for an urgent need to make some major ramifications so that life can be again inserted in the business and the business provides better return (Chrisan, 2001). During this period organization look for market expansion, increased penetration and extended use. McMalins fast food has identified the following strategy for its business which will be used during the maturity period Increased Penetration: McMalins fast food will aim at increased penetration so that more and more customers can be added. The organization is slowly moving towards a maturity stage which has thereby ensured that they increase their product line which has already been accompanied by addition of new products, attracting new section of the society i.e. obese people and improving the value added services. The different dimensions have provided the opportunity to deal with the maturing market and thereby ensure better growth potential. Market Expansion: McMalins fast food looks to move in other markets as they already have a presence in 40 countries which has developed their brand name and will make it easy for the fast food giant to enter new markets. This will be accompanied by multiple product line and will thereby be able to provide new life to the business and bring the required change in the working style. McMalins fast food has devised a strategy it aims to incorporate during the maturity stage. The declining stage is another important area which has to be considered as this stage characterizes losses and lower returns than the investment made. Organization not able to deal with it shut down their operations and requires formulating strategy which can be harvesting, maintenance, niche or profitable survivor so that a mechanism to deal with the prevalent market condition becomes possible (Chrisan, 2001). McMalins fast food aims to incorporate the following strategy during the decline phase Harvesting: During the phase McMalins fast food will look to reduce the expenses so that gains can be maximized. This will also help to improve the short term cash flows and provides with an opportunity to develop or add something new so that a new direction can be given and the business can be made lucrative as before. This will improve the level of efficiency and will thereby act as a tool through which growth can be ensured. Niche: McMalins fast food will aim at a niche market so that the level of completion is low which will provide an opportunity to flourish. This will also act as a juncture McMalins fast food will be able to use its resources differently and will transform and bring the change in the working style. The business as a result will be able to make maximum gains and will create a different market for its services. Thus, McMalins fast food has determined the strategy which needs to be followed in case of shakeout, maturity and decline so that better control over the business is exercised. New Economy Market The manner in which the external environment is changing with the growth of technology, improved penetration and improvement in customer service standards has increased the need and complexities for organizations to find out a manner in which they will be able to provide the required services (Stettinus, Robley Wood, Doyle and Colley, Jnr, 2007). McMalins fast food based on the service industry which they perform look to deal and improve their service standard for the new markets in the following manner Increase in promotion: McMalins fast food will promote their fast food restaurant aggressively. This will help them to spread awareness and create an urge among the customers to visit the store. This will be matched by other lucrative offers and discounts which the customers will get. This will thereby help to attract people and improve customer base. Improve customer satisfaction: McMalins fast food will hire the best employees who are able to understand the customers. The entire focus will be on improving the quality of service so that customer satisfaction is enhanced and an opportunity is created through which opportunities for growth through customer service standard increases. Organizational Structure Organizational structure determines the manner in which decisions are taken as having a simple but effective organizational structure facilitates decision making. Organizations choose different structure from functional or product management or marketing management or matrix based on the need and requirements of the organization (Cook & Dave, 2004). The structure chosen is based on different areas and provides the required scope through which effectiveness is garnered. McMalins fast food looks to work on the matrix form of organizational structure. This form of organizational structure will provide an opportunity where employees at each level are able to communicate with people at different levels. This form of structure will be accompanied by a vertical approach where responsibility and authority to take decisions will be passed on to employees at all levels (Brassingto and Pettitt, 2006). This will improve the degree of decision making and ensure that the decisions are taken at the appropriate time. This form of organizational structure will also help McMalins fast food as it operates in different countries and will provide with a direction through which better control can be exercised and will help to improve the process of monitoring. Marketing Plan McMalins fast food has analyzed both the internal and external environment and has come up with the SWOT analysis which will determine the different areas of growth and scope Strengths Weakness Cost advantage due to knowledge and proprietary know how about the entire production process Huge expansion making difficult to control all areas of business Strong brand name as have been working in the industry for more than two decade High infrastructure cost Superior service quality and standard which has developed a pool of loyal customers Increase conscious towards health issues Aggressive promotional strategy so that more and more customers can be attracted Efficient manpower capable of understanding the customers and delivering services according to their needs Opportunities Threats Unfulfilled customer needs especially obese customers Increasing consumer consciousness towards obesity Growing population base Rapid change in consumer taste and preference Improved technology This has helped McMalins fast food to further ensure that a contingency plan has been developed which will help that in case the actual plan doesn’t work then the organization can use it. This will reduce the risk and will also provide with an opportunity through which McMalins fast food will be able to ensure better opportunity of growth. The contingency plan will ensure that McMalins fast food is able to work on its strength and have a backup plan to assist the main plan and ensure that the objectives are accomplished. Marketing Metrics McMalins fast food is looking to improve its market share and the fact that the local people are very much loyal to the local companies; therefore, McMalins fast food has not been able to establish itself fully in the Australian market requires the need to attract customer and improve its market share (Laric & Lynagh, 2009). This will require that McMalins fast food works on the different areas and aim at improving the level of customer satisfaction. Customer satisfaction is the only way which will help McMalins fast food to develop a pool of loyal customers. This will thereby translate into increased market share as ensuring proper services and quality will help to differentiate them from other players. This will help to spread awareness about the quality of service and will act as a point through which McMalins fast food will be able to attract more people (Berkman & Gilson, 2001). Being able to develop their services according to the international standards will help to attract more and more people and will thereby help to improve their market share. Marketing Audit Marketing audit helps the business to make regular checks and determine the changes which are require improving their working style. The process looks to develop the required infrastructure and brings a change in the working style. Organizations based on their needs and business model chooses a marketing audit from be market environment audit or objectives and strategy audit or organisation audit or company ethical audit etc (Czinkota & Ronkainen, 2004). McMalins fast food has adopted the following market audit Strategy Audit: This will look at continuous monitoring of the strategies and determining the manner in which the business is able to ensure effectiveness. The process will help McMalins fast food to make timely changes and will provide with a direction based on which the resources will be used in the best manner Objective Audit: McMalins fast food through this will analyze whether the business is able to achieve its objective and will be provided with the scope of making changes. This will help McMalins fast food to bring the required transformation and will help to determine the process through which the chances of achieving the objective increase. Conclusion The report thereby highlights the complete marketing plan for McMalins fast food by looking into the different strategies which has been formulated and will be used during the different period of the business cycle. It has been identified that McMalins fast food will act as a pioneer and a leader so that they remain innovative. This will be matched by improving its service standards and repositioning its services for obese customers. McMalins fast food has also developed a process for different phases of the business and has looked to use the different resources in the most effective manner. This will increase that the objectives are achieved and will ensure success over a longer period of time. References Berkman, H. & Gilson, C. (2001). Consumer Behavior Concepts and Strategies, Kent, Boston Brassingto, F. and Pettitt, S. (2006). Principles Of Marketing, Fourth Edition. Essex: Pearson Education Limited Bateman, T. & Snell, S. (2004). Management: The New Competitive Landscape. 6th Edition, McGraw Hill, New York Cook, D. & Dave, D. (2004). Structural element of service quality product. International Journal of Business Performance Management, 6 (2), 189-207 Chrisan, P. (2001). 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