Repositioning Of Fast Food Chain Commerce

Essay add: 10-02-2016, 15:04   /   Views: 150

Pizza and hamburgers were the leading fast food chain industries. Fast foods chain would mean a great venture and big business. Pizza and hamburgers were both European dishes that were not discovered until Richard and Maurice McDonalds opened their first fast food chain in San Bernadino California in the early 1948 (" The History of Fast Food", n.d).

The name itself "fast food" would mean to serve food quickly. The food has been prepared within a given time has been considered to be a fast food restaurant typically in TV dinners and which was serve to customers in a rapidly prepared manner in package and from take outs. The term "fast food" was publish and recognized by Meriam- Webster in 1951. The fast food chain evolved within drive through restaurants in southern California in mid 1940s, Restaurants owners wants to take the popularity of cars through fast drive -in so it was designed to put customers in their cars without delaying from their daily activities. In 1948 they tried to do something new where in the menu were more simple and avoiding the use of fork, spoons and preferred to use disposable cups, bags and plates. They make it has divided food preparation not a production line (" The History of Fast Food", n.d).

McDonald brothers created their own redesign fast food chain in early 1948. Burger King, Taco bell followed in 1950s and Wendy's started their fast food venture in 1969. Much more fast foods chains opened like Carl's Jr Jack in the box and also KFC existed in the system. Their techniques after the duets and the world largest fast food chains were born.  The industry called it "Speedee Service System" and with was a major success to the fast food restaurants. This has begun the journey of the fast food chain and it distribution to the modern food industries (" The History of Fast Food", n.d).

The stability of fast food chain became fragile because of strong competition in the market. According to Clarissa Yeap (2005), there are significant barriers in the fast food service industry which includes the following: the low scales in economic in a given level of establishment and numerous sellers and buyers. The fast food industry at present consists of numerous small scales stores that earn only low profits still the industry would react to market demands, exploiting or used of cost advantages and other strategic opportunities that will help in the generation of higher revenue in a larger markets. On the other hand, two major problems have been presented which includes the following: a potential risk of making decisions whether to enter or not to enter in the business of restaurant industry and the second problem would be on the implementation and management of the industry: on the prices, investments and advertisements.

These problems and more have been dilemma to the fast food industry. And previously, repositioning came as an option to established competitive advantage of fast food chains. According Trout, repositioning is the manner by which companies would adjust their insights, regarding on their perception towards the market and its competitors. In adjusting to products and seeking for a new identity for the benefits of the target market and consumers concerns and also for the competing brands, one must know how people perceive and think in order to work into your strategies (2010).

The case of Pizza Hut towards "Repositioning of Fast Food Chain as Healthy has been analyzed in order to further understand the pros and cons of undergoing repositioning in the fast food chain industry.

Pizza Hut Case Study: Repositioning Fast Food as Healthy

Description: A series of case study, wherein it shows a wide business practices, putting up a fast phase business intervention that company will increase the target market and obtain growth within a click of time, from a traditional fast food business to a well-known and healthier fast food franchise.

In UK, Pizza Hut has been view as an unhealthy fast food to its consumers, more consumers most likely to eat healthy food and pizza was only known as a occasional luxury, Pizza Hut made a new identity through changing its menu to a pasta selections, the pasta was maintained in UK October of 2008, pasta as wide variety of healthy choices, with a consumable price of pasta a continuous marketing strategy to endorse the pasta menu in Pizza Hut, with the variety of pasta the name was made into Pasta Hut, but due to online demands and surveys Pizza Hut remains the franchise name.

This implies that the primary reason of Pizza Huts repositioning was to change consumer's perception of the fast food chain as unhealthy fast food. Doing this takes them to conduct in-depth studies, the introduction of a new brand name and introduction of healthier menu.

According to Perner, repositioning is a process that involves an attempt to change the perception of consumers towards a particular brand and more. However, making it possible for a company or fast food chain to undergo the process of repositioning isn't very easy which were very costly. This argument has been supported by McKinsey which states that repositioning entails higher expenditures yet the fast food company is un-assured the repositioning success (n.d). This implies that though the objective is very promising, the process itself could not assure the company of its success. This was very apparent from the previous recorded failures orf repositioning by many companies.

Failures of repositioning could be traced on the following: companies often tends to focus on achievable brand positioning more the aspirational brand positioning. This implies that companies tends to focus on what is more ambitious goal more than the outstrip of the actual ability of the brand in delivering the products as promise to the consumers. It can either be that the goal was very far or too high that became unrealistic in the process of pursuing repositioning (Mckinsey, nd).

This implies that repositioning is a process that entails huge struggles and strategic ways to achieve its objectives. McKinsey has enumerated ways on how to make repositioning successful which includes the following:

Be precise that the objectives of the repositioning process is inline with customer's frame of reference. It is very important that the company should be clearly aware of the "frame of reference" in order to achieve success in the repositioning strategy. Carefully study and observation between the customer's attitudes and the company's situation.

Secure permission from the consumers before undergoing the process of positioning. Permission of customers for the company to undergo changes on brand is very significant. This will serve as leverage of the brand's emotional benefits in order to carry out the customer's expectations from the old brand to the new one.

Clearly identify the brand's new promise. This states clear identification of the new path or promises of repositioning will lead and convince customers towards the changes of the brand. Furthermore, this


Based from the analysis of available literatures, it can be concluded that repositioning of fast food chain would mean changing the perception of consumers towards a particular brand. Evidence of would show failures of repositioning among these companies. Failures of the process the repositioning process were attributed on companies merely focusing on what are unrealistic or too much ambitious goals. Yet. Literature suggest that would undergoing the process should consider the brand's customers perception. Furthermore, the objectives should be clearly identified. On this manner, the new promise would be carried out as the new brand will be introduced to the Subway product line.

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