DIFFERENTIATION & POSITIONING OF
FAST FOOD COMPANY
Fast food
 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
CONTENTS
Introduction
Previous position and challenges
Marketing Environment (Micro & Macro)
Subway SWOT analysis
New strategy to repositioning – differentiation
Conclusion and Recomendation
Question Discussion
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.
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.

In 2009, the
SUBWAY® chain
was ranked the
number one
franchise
opportunity by
Entrepreneur
Magazine.
In 2008, the SUBWAY® chain was voted the
No. 1 sandwich provider in the British Sandwich
Association’s (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.

JARED FOGLE
Diet Start Date: MidMarch 1998
 Height: 6' 2''
 Starting weight: 425
pounds
 Current weight: 190
pounds

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
MCDONALD’S
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.
McDonald’s
Thus, they invented the self-service, drive-in
concept that was a limited-menu, paperservice, 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.

McDonald’s
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.
MCDONALD’S STRANGE MENU AROUND THE
WORLD
India
 In India, there are no
Big Macs because
the Hindu people
don’t 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.
MCDONALD’S STRANGE MENU AROUND THE
WORLD
Germany
 It’s bottoms up in
Germany, where
McDonald’s
serves – Beer!
MCDONALD’S STRANGE MENU AROUND THE
WORLD
CANADA
 In parts of
Canada, have a
lobster dinner
with the
McLobster
lobster roll.
Pardon me –
“McHomard” (in
French).
MCDONALD’S STRANGE MENU AROUND THE
WORLD
JAPAN
 Japan totally reinvents
McDonald’s 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!
MCDONALD’S STRANGE MENU AROUND THE
WORLD
NORWAY
 In fish-loving Norway,
they have the McLaks,
a sandwich made of
grilled salmon and dill
sauce.
MCDONALD’S 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.
PREVIOUS POSITION & CHALLENGES
Subway
Create brand name
relied on one main
kind of product (foot
long sandwich)
 Was known more for
its belly-busting foot long
sandwiches and its
gaudy yellow décor than
for anything else
Accessible
(subway stations)
For the busy and on-the-go
people who have to eat on
the way to work.
CHALLENGES - SUBWAY
Subway needed a makeover
A new positioning in the
marketplace – something that
would distinguish Subway from its
fat and sugar purveying competitor
Market wants fresher,
healthier menu.
Challenges
Many people have diseases that
are linked to eating fast foods such
as obesity and diabetes.
The Subway stores are not
welcoming- the place are damped
and the service crews were not very
courteous.
MCDONALD’S
A truly
global
company:
present in
118
countries
But does
not
guarantee
success
Last
quarter
2002 loss
for the
first time
 Where
might it
be wrong
CHALLENGES – MCDONALD’S
Consumers want and need: increasingly
want variety and are becoming much more
health conscious
Mc Donald’s has been taken to court with
the issue their food can lead to obesity.
They have neglected the
competition of other fast food
chains which could give the
customers an alternative.
1980s, increased new store
openings that made a loss of
profitability.
Environment: Be challenged in
some country markets local
company
Poor Consumer Satisfaction
Index: Survey in 2001
Lawsuits: McDonald’s caused obesity in
children due to the high sugar and fats in
their burgers and foods
MACRO ENVIRONMENT
DEMOGRAPHIC 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.
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
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.

MICRO ENVIRONMENT
COMPANY – TOP MANAGEMENT
Mission
Healthy food – healthy world
Objective
- One of the world’s fastest growing industries
- Provide quality fast food with international standards, taste
and freshness
Broad strategies
- Remake image
- Reposition for a global future
- Sign up franchisees and open new stores as more as possible
- Build up the reseller and wholesaler system all over the world
Policies
- Quality – safe – clean
- High brand awareness and preference
MICRO ENVIRONMENT
CUSTOMER
CONSUMER MARKET
Pay attention to special customer
segment in each country, each city
and each area.
There are many demands, needs
and wants in each area. Fast food
company makes use of the
characteristics, culture and taste to
develop product suitable to
customers there.
INTERNATIONAL MARKET
The market is very important for
a fast food company to maintain
its position worldwide and
obtain customers.
- McDonalds has set up
31,000 location worldwide.
BUSINESS MARKET
To develop this market, fast food
companies almost use
“franchisees” as marketing
strategy to find out and set up
restaurant system globally
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:







McDonald’s
Burger King
Subway
Pizza Hut
Yum!
A&W Restaurants
And so forth.
MICRO ENVIRONMENT (CONT.)
MEDIA PUBLICS
Is the most popular means of advertisement to
make strong impression on fast food customers,
especially children.
Ads are often full of color, photo and logo;
moreover, having special, impressive and
exclusive thing.
Included: television, website, magazines,
billboard, and so forth.
SUBWAY SWOT ANALYSISSTRENGTH
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
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

SUBWAY SWOT ANALYSIS-THREATS


Shops fast food appear more and more over the
world
Competitor:
Reduce price: McDonald’s retaliated by reducing
the price of it burger to 99 cents in the US and 99
pence in the UK.
Understand customer’s need: Jollibee in the
Philippines, which had a similar business model to
McDonald’s, offered adaptation, such as spicy
sauces that appealed to the local markets
New strategy to repositioning
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
US TV Commercial Series
“Subway Dinner Theatre”
Three TV spots for three target groups
Three different situations
Three main messages: Value and quality; Subs
are easy and fast to get; non-comlexity of
eating at a Subway restaurant
The testimonal: Every TV spot has an intro
with a well known person who identifies
himself with Subway food. At the end of every
TV spot he speaks out the Subway Slogan “eat
fresh”
Repositioning

Update the stores’ interiors

Open new Subway’s stores in US and
abroad

Using the images of fresh tomatoes and
other vegetables in New York subways
system
Personality &
Character



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
Sports & Activities Associates
Healthy Nutrition
•
•
•
•
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
Some activities and PR
campaigns in 2006




“Bag a meal”
“Who’s next basketbal”
“Sports”
“I am Asian”
Main Target Group
•
•
Young people
People at work, health conscious
of Subway
Association & Sponsorships
•
•
Children, young people
People at work, on vacation,
eating for fun
RECOMMENDATION AND CONCLUSION
McDonald’s 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.
•
Question
Discussion
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.
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 don’t focus on caring
much about the change in eating tendency
of customer .
QUESTION 3
WHAT 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 R&D 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
QUESTION 4
WHAT 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

QUESTION 5
WHAT 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.”
CON’T
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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