Nowadays, the World has become a one big country with borders transparency and unique money. This phenomenon, called globalization, has made it harder for companies to survive against competition and international firms. Indeed, companies can become unprofitable and go bankrupt. This is why they must innovate and surprise customers with new products, services or locations. To do so, they must implement a strategic marketing plan on the basis of three simple analyses:
-The external analysis which includes things that the company cannot control.
-The internal analysis which includes things that the company can control.
-The realistic expectations which answer the question: How much can we realistically expect to sell on the short and the long term?
By asking these three questions, we can decide or not if we should start the new concept or implement the company in a new location.This essay is going to give an overview of this marketing plan by implementing the California based company In-and-Out Burger in Paris, France. This fast food chain was created in 1948 with the first drive-thru system or this essay, a first part will focus on the description of the company and the definition of the new project. Then in a second part, we are going to analyze the external environment as well as the internal environment in a third part. To finish, we are going to study the realistic expectations of the project and see if we should or not move forward.
[...] The legal work time is 35 hours a week (compared to 40 hours in the and each worker has five weeks of paid holidays per year. This means that our Labor force will be more expensive than in the US Technological Technology made the success of In-And-Out Burger. Indeed, this is the company which first created the drive through. Nowadays, every fast food and even grocery stores has one. However, since this creation, In-And-Out Burger has not really improved its technology. [...]
[...] A. Realistic expectations Currently, we can say that the French current situation is unstable in politic because of the new elections in the beginning of 2012, and in economic because of a crisis which is putting France under a recession period. This crisis could also become a social crisis as we can expect the unemployment rate to increase as well as the poverty. Besides, if we decide to implement In-And-Out Burger in France, we might not be as profitable as expected because of the current French situation. [...]
[...] Indeed, for the number 1 menu, the biggest one, you will be asked only $ 5.39 whereas as the same menu (“Doubled Quarter Pounder” Burger, French fries and a drink) at McDonalds will cost you $ The so Secret Menus” : http://www.in-n-out.com/secretmenu.asp Final Assignment Page 7 Moreover, the other particularity of In-and-Out Burger is that the company is still owned by the Snyder family who has no plan to take the company public or franchise any units. The family thinks that work conditions are better by this way. [...]
[...] They even say they had the best burgers of their lives. Indeed, we can find some reviews on forums such as “In-n-Out Burger is the best! They really know how to make great buns and toast them. They use fresh vegetables on their burgers and wonderful secret sauce. The fries are the best, made with real fresh potatoes. The shakes are great with real ice cream. The atmosphere is fantastic with friendly employees and a clean environment. The people of France deserve an In-N-Out Burger! [...]
[...] Before starting our analysis, we should know that there are three types of customers: the transactional customer, the preferred customer and the strategic customer. The tab below explains all their characteristics: Criteria Primary Interest Timeframe Focus Demands Relationship Loyalty Profitability Transactional Customer 40% Price Short-term Transaction Not Justifiable vs Them” None Little or not Preferred Customer 35% Relationship Long-term Quality, Brand Learning opportunity and High Level Good Strategic Customer 25% Mutual Dependance Integration Future Create new business opportunities “Together” Highest Best In most cases, the French distributors like to have a strategic relationship with their customers. [...]
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