How are customer tastes changing in the fast-food industry

Question

1. The intent of case analyses is to interject a sense of realism into the process of marketing management education.It is the application of the principles and concepts that is key to mastering the material.
2. It is not so important that a particular format be rigidly followed as it is to apply a sound and logical approach to the analysis.The general approach is to determine the meaning of the information, then to pair that meaning with marketing principles, and to finally conclude with the strategic implications of the information.
3. Specifically, the basic steps are to:
   1. Define the problem.
   2. Formulate alternative solutions.
   3. Analyze alternatives solutions in terms of strengths and weaknesses.
   4. Accept an alternative course and recommend action.
4. Please note that the case study method requires a considerable commitment of time and effort to conduct and the results reflect that commitment.

   Question1 Case Study--McDonald's

   This case discusses McDonald's Corporation and the situation it faced in 2001. After many years of double-digit growth in sales and net revenue, the company's sales grew only 1.12 percent and net revenue dropped 17.2 percent from 2000 to 2001. The company is the market leader in the burger segment of the fast food industry and is closely identified with burgers and fries, foods that are no longer considered healthy.

   Most of you will be very familiar with McDonald's and many of its competitors. Some may even have employment experience with McDonald's. Specifically, this case will:

   1. To help recognize how the changing environment impacts companies, even market leaders like McDonald's.

   2. To give the opportunity to develop strategy in a mature market with strong competitors.

   3. To help understand how changing customer tastes are reflected in changes in industries.

   4. To demonstrate limitations on a company's ability to adapt to changes in customer tastes and preferences.

   5. Toafford the opportunity to analyze how company strategies impact their tastes and preferences.

   Conduct an analysis of the case as written. Apply the general case analysis guidelines and ensure that you address the specific questions in your analysis.

   General Case Analysis Guidelines

   1. As noted, the intent of case analyses is to interject a sense of realism into the process of marketing management education.It is the application of the principles and concepts that is key to mastering the material.
   2. It is not so important that a particular format be rigidly followed as it is to apply a sound and logical approach to the analysis.The general approach is to determine the meaning of the information, then to pair that meaning with marketing principles, and to finally conclude with the strategic implications of the information.
   3. Specifically, the basic steps are to:
      1. Define the problem.
      2. Formulate alternative solutions
      3. Analyze alternatives solutions in terms of strengths and weaknesses.
      4. Accept an alternative course and recommend action.
   4. Please note that the case study method requires a considerable commitment of time and effort to conduct and the results of your analysis will reflect that commitment.
   • Demogrpahics
   • Price
   • Health
   • Quality
   • Hamburger
   • Non-hamburger (KFC, Pizza Hut, Taco Bell, etc.)
   • Non-fast food (Supermarket Deli, Convenience stores, etc)
   • Strengths
   • Weaknesses
   1. As noted, the intent of case analyses is to interject a sense of realism into the process of marketing management education.It is the application of the principles and concepts that is key to mastering the material.
   2. It is not so important that a particular format be rigidly followed as it is to apply a sound and logical approach to the analysis.The general approach is to determine the meaning of the information, then to pair that meaning with marketing principles, and to finally conclude with the strategic implications of the information.
   3. Specifically, the basic steps are to:
      1. Define the problem.
      2. Formulate alternative solutions
      3. Analyze alternatives solutions in terms of strengths and weaknesses.
      4. Accept an alternative course and recommend action.
   4. Please note that the case study method requires a considerable commitment of time and effort to conduct and the results of your analysis will reflect that commitment.
   • Physical product
   • Atmosphere
   • The experience
   • Lifestyles
   • Disposable income
   • Health focus
   • Quality
   • Price
   • Atomsphere
   • Packaging
   • Competition
   • New entrants to the market
   • Substitute products
   • Reputation

Specific questions to include in your analysis:

1. How are customer tastes changing in the fast-food industry? What impact do these changes have on McDonald's sales and net income?

2. How well are these changes in customer tastes and preferences being reflected in competitive strategies in the industry?

3. What are McDonald's strengths and weaknesses and what conclusions do you draw about its future?

Question 2.

Case Study - Starbucks

Directions

Case Study-Starbucks
Starbucks was started in 1971 and grew to become a leader in the specialty coffee industry. Howard Schultz, chairman and CEO of Starbucks Corporation, attributes the company's success to the experience created within the stores and the unsurpassed quality of its coffee. Schultz also attributes his company's success to the 96,700 employees working worldwide. Starbucks employee training program churns out "baristas" by educating 300 to 400 hires per month in courses such as "Brewing the Perfect Cup at Home" and "Coffee Knowledge."

Starbucks sticks to its knitting, understands its core competencies, knows what the value proposition is for the customer, and does everything possible to get close to the customer. Starbucks has succeeded in maintaining its competitive advantage by providing an "experience" to the customer and establishing itself in every nook and corner in major cities.

The purpose of this case is to expandyour understanding of the positioning of a "product" as defined in the text: the sum of the physical, psychological, and sociological satisfactions the buyer derives from purchase, ownership, and consumption.

Conduct an analysis of the case as written.Apply the general case analysis guidelines and ensure that you address the specific questions in your analysis.

General Case Analysis Guidelines

Specific questions to include in your analysis:

1. What is Starbucks' product?

2. What changes in society have helped Starbucks be successful?

3. What strategic factors account for Starbucks' success in developing brand equity?

4. What opportunities and threats face Starbucks?

Question 3. Case Study - Schwinn Bicycles

Directions

Case Study-Schwinn Bicycles
This case discusses Schwinn Bicycles and their market strategy in the 1990's as it emerged from bankruptcy. The company is looking at increasing their market share in the bicycle industry with an emphasis on mountain bikes. Most of you will be very familiar with Schwinn Bicycles and many of its competitors. Conduct an analysis of the case as written.Apply the general case analysis guidelines and ensure that you address the specific questions in your analysis.

General Case Analysis Guidelines

1. As noted, the intent of case analyses is to interject a sense of realism into the process of marketing management education.It is the application of the principles and concepts that is key to mastering the material.
2. It is not so important that a particular format be rigidly followed as it is to apply a sound and logical approach to the analysis.The general approach is to determine the meaning of the information, then to pair that meaning with marketing principles, and to finally conclude with the strategic implications of the information.
3. Specifically, the basic steps are to:
   1. Define the problem.
   2. Formulate alternative solutions
   3. Analyze alternatives solutions in terms of strengths and weaknesses.
   4. Accept an alternative course and recommend action.
4. Please note that the case study method requires a considerable commitment of time and effort to conduct and the results of your analysis will reflect that commitment.