A CASE ANALYSIS On

Life in the fast lane: Fast Food chains Race to be Number One
SUBMITTED IN PARTIAL FULFILLMENT OF MBA: Marketing Research Case 1
BY

RAHUL DADA
2011H149219

UNDER THE SUPERVISION OF

Prof. Anil K Bhat & Mr. Satyendra Kumar Sharma Management Department

BIRLA INSTITUTE OF TECHNOLOGY & SCIENCE PILANI, RAJASTHAN 333031

Q1. Describe the marketing information needs of the fast food industry. Ans. The need of a fast food company especially in market development, market expansion or real estate departments consists of analyzing customer behaviours, their demographics which will classify them into different age groups to determine their tastes, preference in terms of quality, Menu, service, consumer awareness. The management must also know the strengths and weaknesses of their competitors so that it can customize its product as per customer need. Industry must choose appropriate site for its operation and must focus on its core competencies. It must position its product as most health conscious. To gather these marketing information needs marketing research is must be done. Q2. What role can marketing research play in providing the information needed? Ans. Marketing research plays very important role in providing the information as it is the first step in gathering information to collect customer feedback related to any problem, awareness of the brand. This information is generally concerning behaviour, attitudes and motivations of a particular target group. This information is the source of decision makers for expansion. As a supplier of information its role is only effective if it enables companies to make useful marketing decisions. Research is conducted throughout the marketing process at each stage the reactions of the target public, after being analysed, enable one to review the policies. It also gives insights of decisions of consumers to purchase and post purchase reaction of the customers. Q3. Give some examples of problem identification research that McDonald's can undertake to ensure their continued leadership in the fast-food industry? Ans. The fast food industry is a revolutionary industry, which has taken the world by storm. With fast food restaurants showing up, what seems like on every corner, it's interesting to analyze the competitive strategies companies in this industry use in order to survive. McDonald's, with more than 12,094 restaurants in US is certainly no exception. A good way to analyze the strategies is by using the Porter five forces competitive model. The Porter model looks at what strategies a company uses to effectively counter 1) the rivalry of companies in the industry, 2) the threat of new entrants, 3) the threat substitutes, 4) the bargaining power of customers, and 5) the bargaining power of suppliers. Few problems can be identified as: TV advertisement has had the courage to say their opinion about one of the leading brands in the world of fast food, Mc Donald's; Junk Food is a term describing food that is not healthy or have little nutritional content. Junk Food contains a large amount of fat. Fast food like hamburgers, French fries from Mc Donald's. At the same time MC Donald should not forget economic environment, buyer concern and qualitative research techniques. Q4. Describe the kinds of problem/ solution research that Wendys might undertake to improve its sales and market share. Ans. Wendy must spend some dollars on R & D to find out different ways to improve its sales and market share. It can do it through exploratory research which includes qualitative research,

should collect primary data both qualitative as well as quantitative. It can conduct focus group interviews. For descriptive research design it can conduct online or street survey. It can also conduct segmentation research which determine basis of target segmentation, select target market and create life style profiles and product image characteristics. In addition to it, it may conduct promotional, pricing and product research. Q5.Given the market potential overseas, should fast food chains conduct marketing research in foreign countries? What kind of opportunities and challenges will the fast food chains encounter in conducting international marketing research? Ans. Yes it must conduct its marketing research in foreign countries to expand globally. They may found lot of opportunities like they will get an opportunity to know the mindset of various nations, their needs, their taste, etc. But at the same time they may find few challenges in conducting International research which can be language barrier, cultural indifferences, legal policies, licensing, etc.

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