Wendy’s old fashioned hamburgersI) Presentation of the producta. The characteristics of the productThe Wendy’s brand offers a wide range of products to meet the different needs ofconsumers. A child menu also been developed to meet the needs of the smallest.
The products offered at Wendy’s are characterized by a very high quality, due to theselection of raw materials. The Wendy’s slogan is also “Quality is our recipe”. The goal is tooffer quality products, so that consumers like what they eat and to create loyalty. Wendy’s isalso a brand which is recognized for the freshness and good quality of its products.Thisguarantee of good quality food is what differentiates other Wendy’s fast food.
In addition, details of feed used are displayed on the different packaging, in case of allergyor intolerance to a product. Consumers know what they are about to eat, and that create abond of trust with the brand. Furthermore W endy’s has moved in line with the Quick ServiceRestaurant or QSR industry to be able to offer healthier food choices which is reallyimportant for some health conscious customers.
The logo and packaging of the brand are recognizable and easy to remember forconsumers.b. Description of the companyWendy’s is an American fast food restaurant chain created by Dave Thomas on November15th 1969 in Columbus (Ohio, USA) but the headquarters were more recently moved toDublin (Ohio, USA) on January 29th 2006. In March 1999, Wendy’s was the world’s thirdlargest hamburger fast food chain with approximately 6 400 locations.
In April 2008, thecompany announced a merger with Triarc.Approximately 85% of Wendy’s restaurants are franchised and 77% of them are located inNorth America. The company employ more than 47 000 people in its global operation. Infiscal year 2006, the firm had $2.469 billion (USD) in total of sales.Wendy’s menu consists primarily of hamburgers, chicken sandwiches, French fries andbeverages, including the Frosty. Plus, Single, a squarepattiedburger made with freshground beef rather than round frozen patties.
Wendy’s uses these square hamburger pattieswhichhang over the edge of circular bun asits signature item.c) The internationalisation strategy of the companyApproximately 85% of Wendy’s restaurants are franchised, and 77% of them are located inNorth America. Wendy’s currently has locations in 30 countries around the world. In Asia,you can find Wendy’s in developed countries such as Japan or New Zealand but mostly indeveloping countries such as Philippines or Indonesia. Concerning the European continent,you are lucky if you can taste Wendy’s products because there are locations only in Georgiaand United Arab Emirates, that is to say near to the asian border.2To finish with the American continent, where Wendy’s is fully set up, you can find restaurantsin United States and Canada just as well as Latin America and Caribbean. Indeed you canfind locations in almost each countries of the subcontinent.
To conclude, even though the Wendy’s strategy is mostly based on the american continent,its does not delay him to be the world’s third largest hamburger fast food chain withapproximately 6,700 locations.d) SWOT AnalysisStrengths 😕 More than 45 years of experience in the fast food industry.? Popular for its freshness and quality. Use of fresh beef instead of frozen.? Global presence with restaurants in around 30 countries and capacity of worldwideexpansion.? Third largest burger chain behind Mcdonald’s and Subway with around 6600locations.? There is a pleasant atmosphere in all the Wendy’s stores.
? Worldknownbrand.? Effective marketing and advertising.Weaknesses 😕 Bad reputation of fastfoodswho are perceived as unhealthy.? Difficulty to manage with the franchisees who are given freedom to organize theirlayouts and also to choose employee uniforms.? Less number of locations than its competitors globally? High dependence on a major country. It is operating mostly in the USA and Canadadespite of it global presence.
? The spreading of its stores is relatively very less, compared to its close rivals such asBurger King or Mcdonald’s. Indeed Wendy’s is opening only 50 stores per yearagainst 150 for Burger King and 200 for Mcdonald’s.Opportunities 😕 Introduction of a breakfast menu in all locations after revising the menu.? Recession has almost no impact on the fast food industry which provides a greatopportunity for growth and expansion.? Increasing population of teenagers and young people is a great opportunity as thereare synonymous with the largest target.? Increasing opportunities in developing countries like China and India as there areless operating costs to compare with the developed countries.Threats 😕 Tough competition in the fastfoodarea.? Prices of raw materials are increasing.
? People are getting conscious about their health and avoiding unhealthy fastfood.? Diseases like obesity resulting from fastfoodconsumption and are the major threatfor any fastfoodcompany.3? Wendy’s is targeting in large majority the teenagers, that is leads to a loss in thesatisfaction of people of other sections.II) The review on the French marketa. The channelTo meet the quality commitments of products offered in the Wendy’s restaurants, the brandmust control the entire production chain from raw materials to maximize the freshness andquality of products. In the case of a French Fillière, it would seem normal, compared to aguarantee of quality, that the brand is turning to local producers, proximity, in order to besatisfied that the animals from which the meat they buy are not abused because Wendy’sconducting an ongoing battle against animal abuse, and wants to certify its customers to thesafety of their products, especially meat, which is one of the major components of theproposed products. In addition, Wendy’s wants to convey a healthier image, andenvironmentally friendly, which is very innovative in the world of fast food, and for that, theymust be surrounded by producers with production methods that respect the environment,that certify the good quality of raw materials.
There must be a relationship of trust betweenproducers and buyers, and by contacting local producers, Wendy’s will directly controlproduction, and will not have to rely on foreign markets, since it will already all necessaryonsiteproducers. As for producers, Wendy’s may appeal to French suppliers for its variouscommands. The fact of addressing local producers and suppliers may represent anadvantage for the company because it can directly control its quality of product or serviceoffered by these, and again the delivery of raw materials will facilitate . The French areattached to their land and culinary culture, they will be more attracted to products which aremade from local products.b. CompetitionMcdonald’s:Number of locations : around 36000 in more than 100 countries. (1285 in France).Turnover : 24,5 billion $ in 2014Strategy : Mcdonald’s have strong symbols in order to broadcast its image at the globalscale such as the international slogan “I’m lovin it”, the emblematic “Big Mac” and RonaldMcDonald.
On top of offer various specialities (made principally from chicken, fish or beef),the company also offers its famous “Happy Meal” for the youngest. Consequently it can aima larger range of people. Over the last recent years, Mcdonald’s went green and nowpretends to be watchful regarding the environment.The fastfoodalso adapts its productsaccording to the local market (for example offers the Super Size Me menu in the USA orchinese specialities in Asia).The golden arches are largely known all around the world, but their encountered someweaknesses over the last years with the arrival of new concurrents.
For instance in 2015,Mcdonald’s lose 2,4% on its turnover. Finally, the international fastfoodchain is involved incharity with the Ronald Mcdonald House in favor of poor and/or sick children.4