Fast Food from Switzerland and More Essay

              1. Marketing Summary The objectives of the plan is to launch a new fast food chain in the USA (Santa Barbara, California) and be viewed as a premium fast food in the region, expand to one location after first year of operation, and two locations after the third year of operation. The mission is to reach wide target audience and expend internationally. In a year, the company will duplicate its efforts. The main goal is to attract and keep a customer. Also, Switzerland Fast Food is aimed to achieve competitive advantage creating value for their customers. At the very least country’s images can be formidable obstacles that can affect brand image strategy even to the point where manufacturers of foreign products should not stress their origin. For the next two years, marketing plan will include aggressive marketing campaigns and sustaining strong market position and competition rivalry with US based companies (McDonald 2002).

2. Situational Analysis The strength of the organization is a unique brand and influence of country of origin image which will help Switzerland Fast Food to obtain a competitive position on the market and create a new fast food culture. The main weakness of Switzerland Fast Food is the necessity to invest in new venture $1,500000. Also, penetration into such markets as the USA creates a certain risk for fast food companies. Also, in order to sustain brand image Switzerland Fast Food avoids low-cost competition, but high cost does not allow Guinness to attract wide target audience. One complicating factor is based on the increasing complexity of country’s stereotypes with which Switzerland Fast Food, and others as well, is expanding its international operations. The opportunities included: high potential to growth based on successful advertising campaigns and improvement of services. Promotion can help to overcome some bias, but predispositions are difficult, at best, to change by such means. Competition is the major threat for this business. Market is fragmented in terms of supply, with a large number of smaller fast food companies. The majority of fast foods offer services to a relatively small geographical area. The threat of local and national competition (Applebee’s, Baskin-Robbins, Burger King, McDonald’s, Nathan’s, Perkins, Steak Escape, Subway, Taco Bell, T.G.I. Fridays, Whataburger etc.) is waning (Crawford 2003).

3. Marketing Strategy The target audience of Switzerland Fast Food will include children from the age of 3 years to young married couples with children, and blue-collar workers of all ages. Most of the family units will have two wage earners. Both sexes visit fast food restaurants. As for the income the high side of low income individuals and to all in the middle income bracket are admitted, and the blue-collar worker, young professionals with a family, and most of mid-America. As or the educational background, mostly high school graduates, or individuals with some college are usual visitors. These categories of people are not the only target audience for fast food restaurant. Pensioners and students can be potential clients of a fast food restaurant. There are main motive is to have a substantial healthy food spending less time and paying less than in a fashionable restaurant. Also, Switzerland Fast Food will sell its products (special propositions) through street stalls/kiosks for busy professionals and blue collar workers.

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The main focus will be on health-conscious menus and natural ingredients. Switzerland Fast Food will attract target market proposing national cuisine and warm and friendly atmosphere.  Also, for ‘traditional fast food eaters’, it will have a special proposition including traditional hamburgers and fried potato, salads and baked potatoes.          As the company grows, it will expend its menu and introduce vegetarian menu. For Switzerland Fast Food, the key to meeting market share or unit sales objectives is making product design changes in response to local market conditions. However, the benefits of achieving such objectives are weighed against the cost of changing a product’s design and testing it in the market (Crawford 2003).

4. Promotion  Switzerland Fast Food will use ‘country of origin’ image to penetrate the new market and sustain strong market position. Taking into account these facts, it is possible to say that a brand policy of using local names will contribute to a domestic identity. The other alternative is to continue the foreign identification of the product and attempt to change buyer atti­tudes toward the product. The slogan for the first campaign will be: “You know much about exceptional quality of Switzerland financial services and watches. Now you can afford exceptional quality of food in our fast food restaurants”.

New marketing strategy will include TV and radio ads, billboards and Internet. These techniques will help to penetrate the American market and create a strong target audience. The sales strategy is to build and open new locations on schedule in order to increase revenue. Sales promo­tion involves the making of a featured offer to defined customers within a specific time limit. The offer must include benefits not inherent in the service, as opposed to the intangible benefits offered in advertising, such as adding value through appeals to imagery. With the Internet the customer will be ”online” with the brand services. Current inefficiencies and thus the cost-burden of sales and distribution systems of the old economy can be overcome. Advertising in local papers is an effective technique, but it is not enough reach diverse target audience. Direct mail (inserts) is very effective method to attract new customers. Based market analysis and data about potential buyers, Switzerland Fast Food can send them a special offer including product sample and flexible price reduction. The company will introduce price reduction on some products and discounts for repeat visitors. Public campaigns will foster goodwill and understanding among constituents both inside and outside the company. One of the tasks of Cedars Sinai Hospital is to generate favorable publicity. The basic tools of public relations will include news releases, newsletters, media kits, press conferences, tours of plants and other company facilities, articles in trade or profes­sional journals, company publications and brochures, talk show appearances by company personnel, special events.

5. Price Switzerland Fast Food will standardize its prices. It means that the price level will differ from home market and will reflect nature of competition and the US market conditions. The price will depend upon: costs, market conditions and customer behavior (demand or value); competition; company policies, production, marketing channels, promotion and advertising. Costs are often a major factor in price determination and there are a number of reasons to have detailed information on costs. Costs are useful in setting a price floor. However, in the long run full costs for all products must be recovered, although not necessarily full costs for each individual product. The actual cost floor, therefore, may often be somewhere between direct cost and full cost (Tayeb 2000).

6. Marketing Plan Cost Marketing bud­gets need to be wisely spent, and it may be preferable to consider marketing more as an information gathering and review function than a promotions exercise. The main costs will be spent on materials and equipment, rent of the premises and HR (man-hours). Inclusion in business people with strong ethical obligations will ensure high standards of medical service and patients care.  For successful performance, the company needs physical resources; financial resources and human resources. The company requires high quality equipment for fast foods. Innovative, cost-effective technologies offer an opportunity to provide customer with high quality products. Also, budget will cover advertising and promotion campaigns ( TV, press conferences, direct mail, radio, press releases (newspapers, magazines ), outdoor advertising and the Internet) (Tayeb 2000).
7. Implementation (the first quarter June-August)

–          Send Direct mail – twice a month

–          1 conferences in July and August

–          Corporate Newsletters (twice a month)

–          Radio ad – 10 times a day;

–          Advertising in local Press – once a week from the 5th of July to end of August

–          Posters in transport; display stands; calendars and wall charts.

–          Direct mail and coupons with discounts (once a week)

              It is necessary to use repetition in advertising campaigns.

8. Controls

Controls will help to monitor marketing campaign and valuate its effectiveness for the target market.  Monitoring is used to gather information and certain deviations in order to respond effectively to group changes. The monitoring will evaluate (1) the impact of a message on the target audience, (2) new channels of impact, (3) responsiveness, (4) organizational objectives, (5) unforeseen circumstances which limit responsiveness. Marketing monitoring will be an element of managerial tasks and involves the measurement and correction of the performance of subordinates to make sure that the objec­tives of the enterprise and the plans devised to attain them are accomplished efficiently and economically (McDonald 2002). Monitoring and evaluation are crucial fro effective performance because they help to set standards; measuring performance against standards; give feedback of results; correct deviations from expected results.

References

1.      McDonald M. (2002). Marketing Plans: How to Prepare Them – How to Use Them, 5th edn, Butterworth-Heinemann, Oxford.

2.      Crawford C. Merle. (2003). New Products Management. Irwin-McGraw Hill. 7th edition.

3.      Tayeb M. (2000). International Business: Theories, Policies and Practices, Harlow, Pearson Education.