SWOT analysis of a Fast Food Restaurant
As a General Manager for Alpha, Inc., my first order of business is to evaluate the opportunities and threats that could infiltrate the market. Through this SWOT analysis, a strategic planning tool, it will examine how to battle these threats with a strong slogan, tagline, and marketing strategy. The findings of the SWOT analysis will help to permeate the area and capitalize on opportunities. For any company, it is particularly important that they know their weaknesses, to develop a strategy to overcome them. Awareness of threats is important because it places the company in a position to respond proactively rather than react and awareness of what consumers want. Customers want convenience in ordering and choices on the menu that provide healthy eating for their family. The advertising slogan and the marketing strategy will rely heavy on technological improvements to meet consumer demands and variety of options to appeal to the consumers living a healthy eating lifestyle.
In conducting this SWOT Analysis, it is important to determine what an opportunity and threat are defined as and how they relate to the fast food industry. Opportunities are external factors that show why a business can prosper while a threat is an external factor that is beyond control of business owners or managers. Awareness of the threats places the business in a position to be strategic and proactive. Factors such as market trends, economic trends, demographics, and political and environmental trends are all viewed as external factors, according to Schooley (2019).
For Alpha, one of the biggest opportunities is to be socially responsible and revamp the menu to include healthier eating options. Menu options need to be creative and offer both healthy and indulgent options. New plays on old favorites, healthier versions of classics, or unique flavor profiles like a spicy dessert are just a few examples (Sena, n.d.).To be considered socially responsible, it is also important that there is a Corporate Social Responsibility policy in place. To gain an edge over their competition, home delivery and improved ordering through an app would be beneficial moves for Alpha.
The millennial and Gen Z people are more likely to make healthier eating choices and have the finances to invest in food that is made to accommodate their lifestyle- gluten free, vegan, and soy-based. Millennials are even more motivated to make health-focused dietary choices a priority. This group is redefining what “healthy” means and are in the know about all things nutritional, from what it means to be “natural” and “organic” to what’s “locally sourced” and “sustainable (Stubbs, 2018). A second threat is turnover in the industry. The stressful nature of the restaurant industry, coupled with a tight labor market and a boom in new restaurants, means attracting and retaining qualified staff will become even more challenging (Stubbs, 2018). The third threat is increasing competition both from restaurants and food trucks popping up in already dense areas of competition.
A slogan is a catchphrase that represents a product or company and communicates the key benefit you want consumers to associate with your business. And if crafted with care, it can keep a brand front and center in the minds of consumers (Pandey, 2020). There are two types of slogans: business, and advertising and each serve an important purpose. For the needs of Alpha, the business slogan will work best as it emphasizes the features that set your business apart from your competition, according to Pandey (2020). As I deliberated over what type of slogan would work, I heard my children fighting in the other room and even at the ages of 11 and 9, they remember slogans. I heard my daughter tell my son, “No, you will not have it your way. I do not work at Burger King”. In addition to it being a business slogan, it also needs to be creative.
According to Pandey (2020), creative slogans make use of a literary device to enhance recall and response from consumers. Creating a creative type of slogan may be harder than it looks because along with thinking outside the box, you must avoid overwhelming the consumers with something that might go over their heads. Children identify with the branding of a business as well as what they see on television. The slogan and the advertising strategies make a difference beyond the brand. Years ago, I purchased four tablets from Amazon for the children and they were $39 and lasted about that length of time. The children always asked to borrow the tablet that had the apple on it because in their words, it was the better one. They knew nothing of slogans and strategies, they only identified that the bitten apple worked better than theirs. Now, as older children, they still identify the bitten apple as the better product because when I bought them all cell phones for the first time, each one asked where the apple was. I am helping to build future Apple customers and ones now that know their slogan of “Think Different” and even their strategy appeals to older children with the vivid graphics and ease of use.
The continued loyalty of a family spells success for a company’s future. Children and adolescents have spending power, purchasing influence and can be influential in their future. Multiple techniques and channels (television, internet, in-school marketing, and product placement) are used to reach youth, beginning when they are toddlers, to foster brand-building and influence food product purchase behavior (Story, n.d.). There are several different advertising strategies that appeal to children and adults through these various channels. When appealing to families, it is important to capture how the product (food) will benefit the family. Creating an advertising campaign around their new Keto menu options or gluten-free or low- sugar for children are always appealing options. If you can win the purchaser of the family over with the options, they will continue to patronize the restaurant because they know their family is cared for through their healthy options. When the strategy for a restaurant or fast food establishment can appeal to the stomach and the emotions, that is a long-term win. Claims can state facts such as “locally grown” or “new, low price”. Claims can also use a bit of hype, such as calling one brand of orange juice ”high in vitamin C” or labeling a toy “loved by kids everywhere”. Claims like these can grab a shopper’s attention and hopefully help close a sale (Hudgins, 2019). And, the restaurant also must appeal to the families through ease such as an ordering through an app or drive-up pick up. To appeal to the children, we will keep the above- mentioned strategies in place and add age appropriate language with current lingo. The advertising should reflect children in a group as this will display them as popular and accepted and children can associate the food with friends.
Maslow’s Theory of the Hierarchy of Needs
There are five main levels to Maslow’s hierarchy of needs. The level of Maslow’s hierarchy of needs, esteem needs is what I would target for children. Esteem needs are related to a person’s need to gain recognition, status, and feel respected (Walker, 2017). Once someone has fulfilled their love and belonging needs, they seek to fulfill their esteem needs. Children have a strong desire to be loved, accepted, and approved. Advertising that targets their esteem and makes children feel like they are popular and included would be a strong strategy especially as it relates to food. For adults, the advertising strategy would be targeted to the need of love and belonging. Humans are social creatures that crave interaction with others. This level of the hierarchy outlines the need for friendship, intimacy, family, and love. Humans have the need to give and receive love; to feel like they belong in a group (Walker, 2017).
Developing a marketing strategy begins from identifying and understanding the threats and opportunities a fast food restaurant faces. From there, the right slogans and strategies can be created because there is an awareness of what is needed, who the target audience is and how to address them. By winning the child, with ethical strategies, you can sway the parent but understanding the needs of the family remains at the top. If a company can evoke emotion of love, care, concern and respect for their family, long time consumers can be won.
Hudgins, C. (2019 February 4). 5 Most Common Advertising Techniques. Retrieved from https://smallbusiness.chron.com/5-common-advertising-techniques-15273.html
Pandey, M.(2020 March 17). What Is A Slogan? – Types, Examples, & How-To Guide. Retrieved from https://www.feedough.com/slogan-definition-types-examples-how-to/
Schooley, S.(2019 June 23). SWOT Analysis: What It Is and When to Use It. Retrieved from https://www.businessnewsdaily.com/4245-swot-analysis.html
Sena, M. (n.d.). Fast Food Industry Analysis 2020 – Cost & Trends. Retrieved from https://www.franchisehelp.com/industry-reports/fast-food-industry-analysis-2020-cost- trends/
Story, M., French, S. Food Advertising and Marketing Directed at Children and Adolescents in the US. Int J Behav Nutr Phys Act 1, 3 (2004). https://doi.org/10.1186/1479-5868-1-3
Stubbs, A. (2018 September 26). 3 Biggest Threats to Your Restaurant’s Profitability (and Survival) and How You Can Prepare for Them. Retrieved from https://www.softwareadvice.com/resources/threats-to-your-restaurant-profitability/
Walker, K. (2017 August 28). Using Maslow’s Hierarchy to Reach Out to Customers. Retrieved from https://www.businessadministrationinformation.com/blog/using-maslows-hierarchy- to-reach-out-to-customers
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Please research a company not used in any class example and elaborate on their SWOT analysis. This response should be between 1-2 pages in length.
Please provide what each category represents for the company you chose followed by a brief synopsis of your own personal usage of their product/service.
For example, the Disney Corporation.
Recognized by probably 90% of people on earth. What does their SWOT represent? How do you relate to their products (Amusement Parks) (Movies) etc.? (OR) What is your personal connection to the company, product or the service it provides?
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