Wendy’s Marketing Strategy For A Successful Comeback In The Market
Question
Task: Prepare a report on examining Wendy’s marketing strategy for a successful comeback in the market.
Answer
Introduction and Implementation of the strategies
The present report is focused on exploring Wendy’s marketing strategy. Wendy’s Japan is a fast food corner situated in Kyoto, Japan. In recent years, the first food centre has been closing the doors in order to make a comeback in the business sector. It has been on the verge of coming back to the business industry by collaborating with other food chain in the market. It is exciting for the food lovers in the sense that, they will be now able to get their favorite food back. The aim of the assessment on Wendy’s marketing strategy is to identify the strategies that are suitable for the company and will help the company to undergo a successful comeback in the market. Wendy’s was famous for making chicken sandwiches and hamburger patties. In Japan, they are planning to make Pasta. They have also purchased the First Kitchen system and have named it Wendy’s First Kitchen. The system of First Kitchen has been operated by almost 136 restaurants in Japan and Wendy has plans to expand the new brand within the country and abroad (Aithal, 2016).
Rationale of Wendy’s marketing strategy
Firm’s aim in engaging the move: Looking at the above aspects, it has been found that the company was quite famous during the initial days; however, there are certain issues which have caused the company to shut down. The company has been facing issues such as; they are unable to cope up with the needs and demands of the Japanese customers. In addition to it, the menu of the restaurant is not at all attractive to catch the attention of the customers. Other than that, the food is costly enough to be afforded by anybody. However, in order to regain their position in the market, they are required to overcome the above obstacles. Moreover, the company at present is on the verge of expanding their business in four major countries of the world, such as Brazil, Japan, India and the Middle East. The new initiative of the company has been named as Wendy’s Kitchen and they are experimenting with their products by making Pasta. Executive vice-president of Wendy, Bob Wright has explained the fact that, they are now focusing on the varieties of foods in order to attract a variety of customers. Moreover, the economic models of the country are likely to be developed. The company has been trying now to become unique compared to its counterparts by making unique products (Al Mamun and Hasan, 2017).
Preference for the modes of internationalization: In order to bring about a change in the process of internationalization, the company has been initiating certain steps to initiate a successful Wendy’s marketing strategy such as making various foods and not only limiting to certain foods. Moreover, the company is now focusing on certain aspects such as, expanding the business. They have been expanding the business not only in the country, but also outside the country. However, the company uses certain modes and processes for expanding their business.
Exporting: Exporting can be defined typically as the process of entering into the international market. It is therefore the easiest and the most convenient way to enter into the foreign market. In such a situation, the majority of firms or companies try to enter the foreign markets by exporting products abroad. In this mode, the biggest advantage is avoiding the expenditure of the companies. While exporting the products, the firm becomes close to the abroad countries.
Licensing and franchising
Licensing is required for a firm in order to open its branches outside the country. It will help the company to obtain a license in the outside countries in order to open its branch outside the country (Currie and Lagoarde-Segot, 2017).
Process of decision-making: The decision making process of Wendy focuses on the areas are discussed below.
Design of goods and services:The goods and services of the firm are to be designed properly and effectively. In order to attract the customers, Wendy has to design the goods effectively and the services of the company are required to be effective enough. Moreover, Wendy focuses on the aspect to innovate product in order to maintain the competitiveness of the product.
The quality plays a very significant role, as it is the most effective strategy that matters. On this situation, Wendy follows the most effective method in order to attract the attention of the customers and to fulfill the needs and demands. Wendy’s objective is to follow the high quality standard to catch the attention of the consumers and to meet the consumer’s expectations.
Location is said to be the prime factor for setting up of a business. Windy in such a situation maintains strategically located Restaurant Support Centers to support the franchises. Wendy in such a situation tends to locate in a very prominent location.
Wendy consisted of a sound supply chain management system. In this aspect, the strategic objective of Wendy focuses on to diversify the supply chain management system.
Implementation of the strategies
Wendy tends to follow the same strategy like Burger King and Mc Donald’s. However, the main point of differentiation in case of Wendy is that it tends to experiment with its products and in the process have started experimenting by innovating their products and addressing it to the market and responding to the trends of the customers. The intensive strategy of the company leads to high quality of the products and as a result, the business of the company tends to increase a lot. Wendy’s marketing strategy includes manufacturing the most suitable products for the customers in order to increase the base of the customers and to increase their share of profit. Though Wendy is known for Hamburgers, however, the company also produces various other products. Certain products of the company include salads, beverages, chicken, burgers, desserts and sides. Hamburgers are the main products of the company, however gradually Wendy offers other products for the betterment of the company.
The marketing mix approach considered by Wendy’s marketing strategy includes the places that a company uses for contacting the customers in the business. In the case of Wendy, the company, website, restaurants, mobile applications and Kiosks use the following places. Restaurants are the main source of income for the company. In addition to it, Wendy uses website and mobile applications such as the food delivery apps in order to carry their business successfully. As it is the generation of social media and internet, therefore, the websites and the food delivery apps are useful in the case of Wendy that they can place their order on the apps only and as a result, the popularity of the organization tends to increase a lot. The marketing mix strategy of Wendy refers to opening of new branches of Wendy to maximize their growth.
In order to promote the products, the company tends to follow various Wendy’s marketing strategy and tactics. The marketing mix strategy of the business is related to the communication strategies in order to attract a huge range of customers. The various promoting tactics that are used by Wendy are sales promotion, personal training, public relations and advertising. All the above factors are equally used by Wendy in order to promote their products in the market and to sell it to the consumers effectively.
Analysis of the strategies used
All the above Wendy’s marketing strategy is used in maintaining their position in the market. Advertising is the best method to promote a product as it reaches to millions of people at a time. In addition to it, the pricing strategies that are followed by Wendy are product bundle market strategy and market oriented market strategy (Fan et al., 2015). The market oriented strategy is mainly used by the company in order to denote the price of the products in the market. Changes in the demand and supply of the products in the market help to denote the pricing strategy of the products. The market analysis of the products is to be taken into consideration, as it will help them fix the price of the product to sell it in the market. Apart from the market, the company also uses oriented strategy, the price bundle pricing strategy in order to set the price of the products in the market. In addition to it, the distribution of the products is to be taken into consideration by Wendy. Apart from restaurants, Wendy uses various food delivery apps as well as websites in order to deliver the food to the doorstep of the customers. This strategy can help to improve the standards of the business, as this is the generation of social media and internet; therefore, Wendy has been using this approach, as it tends to attract a huge range of customers (Figueiredo et al. 2016). More over to it, the variations in the product have posed as the biggest advantage for Wendy. It is because, at first, Wendy used to produce only hamburgers and as a result, the popularity of the company tends to fall. Therefore, the company now has decided to shift their attention and to bring the variation in the food habits they are now making varieties of foods including Pasta (Fischer and Green, 2017). It has started to attract many customers and in the process the business have started to flourish a lot. The Wendy’s marketing strategy therefore has proved to be successful enough in re launching the company in the market. It has also been hoped that the company will hold the grip in the market, if it continues to satisfy the customers in this manner. The competitors of Windy have already reached a very high position and now it is time for Windy to take their position in the market. Therefore, at present, Wendy has been making a grand comeback in the market, will continue to stand still in the market, and will be able to satisfy the customers by adopting an effective Wendy’s marketing strategy in the near future. Therefore, Wendy has been trying hard to hold their group in the market and as a result will have its effect on the society as well (Higgins et al. 2018).
What are the reasons for failure of Wendy’s marketing strategy?
One of the basic reasons of failure of the business is that they were limited to the production of only one product at a time. Compared to Windy, its competitors such as Mc Donald’s and Burger King have been raising high due to their variation in the products offered. Other than that, the price ranges of the products of the company are too high that it was not afforded by everybody. Therefore, it can be said as the main reasons for failure of the products of Wendy (Kalaitzi et al. 2018). Wendy also experienced the problem of limiting to the own country itself. In order to gain popularity, the company is required to expand their business by promoting the business a lot in various social media websites. Therefore, it helps to increase the boundary of the business and as a result, they are not limited to any particular place. Therefore, it can be said that Wendy have suddenly stopped their business in order to make a grand entry in the market, for this, the company has experimented a lot in order to increase their share in the market. A great variation has been brought to the products in the market and the prices of the products are to be set according to the market scenario (Ketelhodt, 2016). It is because the prices of the commodities of Windy are costly enough in order to attract customers in the market and to increase their sales. Keeping the above points in mind, therefore, it can be concluded that the company has been making a great comeback in the market by adopting an effective Wendy’s marketing strategy, as it will help the company to hold its ground strong in the market. In the aspect it can also be said that as the strategies taken by the company is useful, therefore, it will help the company to increase its customer base and will help to regain their lost position in the market. The company therefore can be said to be taking the appropriate steps in order to attract a large range of customers and to increase their popularity largely (Ramaswamy et al. 2017).
Reference list:
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Ketelhodt, T.F.L., 2016. Windy Times in Emerging Economies: De-Risking Renewable Energy Investments: Case Study Vietnam. Wendy’s marketing strategy IIIEE Masters Thesis.Available at: http://lup.lub.lu.se/student-papers/record/8895531/file/8895532.pdf
Ramaswamy, K., Purkayastha, S. and Petitt, B.S., 2017. How do institutional transitions impact the efficacy of related and unrelated diversification strategies used by business groups?. Journal of Business Research, 72, pp.1-13.https://paperdownload.me/wp-content/uploads/2017/11/4457-institutional-transitions-impact-efficacy-related-unrelated-diversification-strategies-business-groups.pdf
