Is competitive advertising a great way to present your advertising of your product for the public?
Diagnosis of the challenge
60 that the companies compete with one another through advertising and marketing and in the advertising they tend to criticize their rivals. Comparative advertising and marketing.
When they start advertising and marketing in this way the start a chain response.
The first business makes the first advertisement which will criticizes the 2nd company and they will react on this with a lawsuit. The third business will cash in on this using their own advertising and marketing and law suits. And this results in bad promoting and a lot of lawsuits.
Should you glimpse this case you observe that White castle started with a comparative promoting. Burger King as opposed their hamburger with the burger from Mc Donalds. Mc Donalds reacted with a court action. This gives Mc Donalds and Burger King totally free publicity witch resulted in Wendys reacting with the own suit.
Although this conflict of words and phrases give the businesses free marketing it also makes negative marketing. The law suits also builds bad publicity and will change the effect the advertising experienced in the first place. The lawsuits makes costs which results in a higher value for the costumer. The costumer will never appreciate this and will get less burgers (in this kind of case). Which result in less profit to get the company.
In this case the companies in the end profited from the marketing war. But since I stated in the last section this is not usually the case. Three companies showed an increase in product sales after almost everything was more than. People declare bad press is better than simply no press whatsoever.
Following this case ask your self the question whether the companies had planned this war of words. I do believe that this is possible but very unethical. I do believe that it is underhanded because you mislead the customer. They get fooled by information put forward by the fast food companies. I think companies ought to be honest and ethical within their promotion. This may not be the case right here. I think it is not ethical to criticize a product or service from another company to advertise your own product.
Competitive advertising and marketing is in my opinion not the simplest way to advertise the product. I think that advertising ought to be positive. In case you compare your product to that particular of an additional company you give the advertisement a negative ring to it. You say that you are better that the competition. But you make the customer consider the competition at the same time. It is better to work with only your own product and promote it through advertisements focusing on the own firm and product. A positive promoting has more effect on the public when compared to a negative a single.
In Belgium not necessarily yet allowed to use comparative advertising. This can be with the intention to protect consumers yet also competitive companies against unlawful adverts. In Athens it is viewed as unethical and misleading to work with comparative promoting. This is why something such as the hamburger wars may not occur in Athens. In Athens they use confident advertising to advertise their products.
Fast food in Belgium
Prêt à manger restaurants will be defined as eating places that are specialist in foodstuff that may be ready and dished up quickly. Fast food is designed for prepared availability, employ or consumption. Food such as hamburgers, pizza or toast chicken, that is prepared in quantity with a standardised technique and can be distributed quickly at inexpensive restaurants for ingesting there or perhaps elsewhere, are usually recognised as fast-food restaurants. Next to that we contemplate the traditional Belgian Chips outlets and the healthy fast-food eating places as key competitors intended for Burger King.
Sandwich pubs (e. g. Panos), soup bars, Asian or additional foreign food (e. g. WokAWay, pitada, pizza, Thailänder or Oriental etc ) are getting a lot more popular in Belgium.
Still Mc Donalds and Quick could remain the biggest competitors in the fast-food market of Athens. Both of them will be strongly present in Belgium
Food is a key component of the Belgian culture. This is confirmed by the reality they dedicate about 20 percent of their throw away income upon food and beverages.
The The belgian fast-food franchising market is growing at an estimated annual rate of about 10 to doze percent. Beside that, this kind of sector is additionally one of the speediest growing groups in Athens (from 97 till 2001). The prêt à manger concept is actually beginning to provide an alternative structure, especially for the lunchtime client, tourists and the ones on tight budgets.
Strengths
Mc Donalds
- Leader in Europe
- Placed as next in the burger market in Belgium. Mc Donalds restaurants highest concentrations are in the Flanders and the Brussels Central regions. At present there are 56 restaurants in Belgium, which 55 will be local franchised (with a 24 franchise- owners in total).
- Play organisations for young children
- Fast and friendly support, clean establishments, good meals and an affordable price
- A strong company image from your community
- Environmentally safe (clean restaurant in-outside/ minimum fragrance and noise/ recycling, well examined detritus oil)
- Global knowledge
- Varied menu (hamburgers, green salads, ice-cream, Mc Veggie, Content Meal)
- Drive-in, Take-away
Speedy
- Market leader in Athens and France
- The GIB Group has exceeded its original goal of getting one Speedy per 100 thousand people in Athens or one hundred Quick shops for the Belgian human population of 10 million. Now 105 stores.
- Top quality of the elements (fresh bread, no genetically modified materials, )
- Using the severe norms with regards to food safety
- Respect intended for the environment (e. g. packaging)
- Total transparency against his customers
- A know-how in service for co-office workers and partners
- Varied menu
- Quick Share service, which is a revolutionary concept that involves offering hamburgers on the streets to pedestrians
- Many Quick eating places are located inside the parking lots of hyper- and super-markets from the GIB group (GB)
- The utilization of Belgian meat for the hamburgers
- The benefit from their solid reputation of staying Belgian
Disadvantages
Mc Donalds
- Has been a goal for creature rights demos over the past few years
- Has been the center point of these economic frustrations causing protests, serves of vandalism
Quick
- Only represented in few Europe and a few non-European countries (Belgium, France, The duchy of luxembourg, Hungary, Morocco, China)
- No/low market share (except in Athens and France)
- No seriously relevance in international encounter
Opportunities
Mc Donalds
- Over the following two to four years: multiply the current 64 eating places to over 100 this implies the creation of 3, 600 fresh jobs.
- They want to be present in Belgium in the future, with 70% of McDonalds new investment inside the Flanders region.
Quick
- Advertising stunts / advertisements (free Maxi length menus for everybody who is available in cowboy attire including horse)
- New statements for the next years
- Cooperation with Kinepolis (Reduction for Kinepolis members)
- The Belgian dealer GIB is researching several options with regards to the future of its fast food chain of restaurants Quick. GIB owns 57. 9 % of Speedy, and is reportedly looking for a ideal partnership because of its ailing chain. GIB is definitely considering several options: it may be an detailed partnership, or a financial collaboration, or even one which offers both equally aspects. A number of names of other fast food companies are currently circulating, including those of Wendys and Burger King of UK-based drinks giant Diageo.
Threats
- The two will cope with the following risk, growing junk food franchising. A growing number of fast food eating places will have opportunities (opportunities), not merely the burger restaurants.
Mc Donalds
- Quick is usually market innovator in Belgium with a hundred and five outlets
- Mc Donalds decided to have one hundred restaurants by year 2000. But due to a combination of excessive real estate costs combined and significant problems in obtaining site lets this has not happened.
- The big hurdle remains the main one of the work cost concern. In labour intensive restaurants, the problems of job category and lowest wages have effect of elevating labour costs.
Quick
Despite the fact that Quick is a largest burger chain, American companies possess set the pace in the Belgian fast-food market. Fast-food only presents about 5% of eating places sales, which means that the The belgian fast-food sector still lags behind many of its Western neighbours. This could be seen as a chance for development, as Athens diversifies the traditional eating habits influenced by simply increased populace mobility in a changing Europe.
Next to that, Athens has one of the highest proportions of inbound franchises as a proportion of franchise systems in the European Union, which helps to contribute to the good competition within the fast-food sector.
Although the the majority of popular fast-food items are burgers and pizzas, Belgians carry on and have more healthy and balanced eating habits. There exists a preference pertaining to sandwiches, soups, etc This can be a result of the dioxin catastrophe of 99, Belgians remain septic regarding food in general. Beside that Belgians happen to be open for new eating ideas and are willing to support new fast food concepts. As the Belgians are having less time intended for lunch, a fast meal could be the ideal solution, taking into account their preferences.
Articles advertising the health problems linked to take out may offer an important impact on social behaviour of the The belgian population (e. g. weight problems, illness, ). These famous health problems are certainly not really relevant for the Belgian client, because it is reality the American eating behavior is different from your Belgians, electronic. g much less fat products, smaller helpings, not as usually visiting fast food chains.
Also, Belgians are quite delicate to the top quality of food in general due to previous well being dramas the last 4 years (BSE, Bird-plague, etc). It is important that people wont loose their faith in our quality labelled food.
Environmental issues are growing in Belgium, consequently foods packaged in earth-friendly biodegradable components make up an evergrowing segment of the market. Following to that it is necessary for restaurants to state the fact that food they feature is certainly not made from genetically modified elements.
Operational problems enhance because it is difficult to obtain organizing permissions and licenses in Belgium. The labour costs are also exorbitant. This results in a big downside because junk food restaurants will be labour rigorous.
It really is of high importance to notice that Belgians rely on their Belgian national pride (as they may be a small country). Belgians tend to perceive the United States as a culturally imperialist nation.
The largest chance for a hamburger sequence to enter the Belgian take out market would be, offering a value added item in this market. Making every single burger according to the customers desires might charm to this need. By doing this that they distinguish themselves from other old chains like Quick and McDonalds
Two possible specialized niche markets may work, burgers at home and hamburgers sales space on wheels pertaining to festivals (concept of hot-dog booth).
This because home delivery is a service well accepted by the Belgians. Secondly, because Belgium can be described as festival region (Gentse Feesten, Rock Werchter, Beachrock, Pukkelpop, ).
The two options can give a great value to the fast food concept, taken into consideration that, extra safety measures and new equipments will probably be necessary.
Another likelihood is positioning the burger restaurant around or by a petrol stop or a railway station.
The investigation ordered simply by Rik Daems, minister of Telecommunication and Government Agencies, pointed out a lot of economical specifics which might be appealing. One of this can be a increasing importance of petrol stations within the The belgian out-of-home-market. The petrol areas are within that market one of the most effective growing portions. Shops, annexed to petrol stations have grown to be strong principles within the foodstuff service scenery. In these shops, the traditional collection became broader with more (fresh) impulse articles that anticipate on the on-the-move eating behavior of actual consumers. (Bake-off, pizza, )
Belgium provides one of the highest percentages of inbound franchises as a portion of business systems inside the European Union, which usually contributes to the strong competition present in the fast-food sector.
Nowadays, Belgium has a high joblessness rate. This might be a possibility for a new hamburger restaurant, knowing that every single restaurant produces new task opportunities within the region exactly where it would put into practice (about 70 employees/ restaurant).
You will find three reasons why I think not necessarily a good idea for a new fast-food chain to enter the Belgian market. First because Speedy and Mc Donalds would be the key players in the burger market in Belgium. Second, the The belgian market is comparatively small when compared to other Euro markets such as Germany and also the UK. Third, there are already too many take out opportunities in Belgium.
Nevertheless, easily really would want to play an important role inside the Belgian take out market, I will think about some methods of approach development. I possibly could choose between inner development, Meters A or joint improvements and ideal alliances. Mergers and purchases are out of the question, I assume the key players, Quick and Mc Donalds, are not willing to stop their brand name to me a brand new fast-food cafe. Joint improvements and strategic alliances can be considered.
My own main reason for this strategy may be the cost/risk spreading. The Belgian fast food market is very competitive and difficult. Consequently , I think that I should establish a joint venture, proper alliance or partnership with other fast food chains in Belgium, e. g. with Panos or Carestel. Panos is present in the Belgian railway channels, known as Panos rail.
Since you will discover just a few burger restaurants inside the stations, costly opportunity for me personally to be the initially hamburger string to be considerable present generally there. Carestel, set up on 45 different locations along the high ways in Belgium and Luxemburg, provides breakfast, traditional Belgian foods, pasta, salads and sandwiches.
Starting up a joint venture with Carestel would put me in a unique location to be present along the Belgian highways.
The existing system of Panos and Carestel can be used to increase the speed of the growth of the trademark in Athens and even across Europe. The dimensions of Panos and Carestels procedures and the accessibility to immediate locations will permit rapid development of a new fast-food restaurant in Belgium.
The fact of a joint venture is the synergy effect of two different agencies merging. This international business strategy attempt to, resolve many logistic problems such as access to top quality meat and other supplies, ease the entry to the Belgium market, talk about risk with a local organization, and finally serve as a sign of commitment for the host govt increasing goodwill.
In addition , due to the difficulty of many obstacles to entry into Belgium, a potential acquire sufficient contacts/networks with authorities agency representatives may smoothen the process of setting-up operations inside the nation.
The potential joint-venture partner should be large, well-established, provide superb distribution stations and have personal network access to government representatives. It should also provide modern equipment and an excellent management record. It is recommended that an associate is found by backwards incorporation.
Put simply, it is a good domestic meats supplier. In order to ensure total commitment and balance of power between two lovers, a 55/45 joint venture, with me at night as the dominant partner should be installation.
A joint venture may also significantly simplicity the admittance to the Belgium market. Additionally , local organization customs and laws could be quicker recognized and the neighborhood knowledge of lifestyle, language and geography is beneficial for any competitor into a relatively unknown industry.
Concerning a joint venture with Panos rail, I see this concept more like one position where were both present and in which the consumer can choose between a sandwich or maybe a burger. The reason for the shared site is merely practical. Imagine a group of people coming for a snack food but they have to be dining separately, is certainly not nice.
The consumer can choose in which section he desires to sit, in spite of a burger is needs to be possible to sit inside the Panos rail area. The fact that the buyer is offered added choices and varieties on one site may be the major commercial advantage.
For Panos this would be an exclusive opportunity to try this concept, of course, if the joint venture succeeds, Panos could put into action this strategy consist of European countries. At the moment, they have only one business abroad, specifically in the Netherlands along the A6 in a Q8 petrol station.
I believe that the simplest way of marketing my merchandise when it is present at a railway stop is in my estimation giving selling price reductions or free coupon codes to potential customers by incorporating the advertising with the teach ticket. Each time a person acquires a ticket they will have a coupon or perhaps something like that to convince them to check out my restaurant and buy anything.
Regarding Carestel, positioned along some petrol train station on the The belgian highways, we could set up a joint venture. For the current sites of Carestel we could produce a burger section and identical like in the railway areas, the dining area should not be separate. It truly is obvious that these restaurants simply have to be set up along the busy highways just like E nineteen Antwerp-Brussels, Electronic 17 Antwerp-Ghent, E 420 Brussels-Charleroi, which is already the situation for Carestel.
In this case the promo will probably be in the form of billboards present at the road or on the sign of the petrol train station. I will also try to set up an agreement together with the petrol train station for coupons and promotion related items to be positioned at the counter-top to make the clients aware that I actually am right now there and to persuade them to go to me and try my own products.
