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McDonald's vs. Wendy's; evaluation of strategies

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You are a marketing executive at a fast-food company and have been asked by your supervisor to evaluate the positioning of two of your major competitors, Wendy's and McDonald's. Wendy's has focused primarily on the adult market while McDonald's has fashioned an all-out pursuit of the kid's market (as evidenced by the numerous advertising tie-ins and toy giveaways). Please respond to the following questions:

1. Think about demographic and sociocultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?

2. Is their strategy affected by the amount of advertising they do on television and the internet?

3. Which organization do you think is currently positioned better and why?

4. What strategy would you recommend for your company based on recent trends and changes?

5. How can these strategies improve their image as a "corporate citizen" within the community?

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Solution Summary

This posting looks at Wendy's and McDonald's and answers the following questions:

1. Think about demographic and sociocultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?

2. Is their strategy affected by the amount of advertising they do on television and the internet?

3. Which organization do you think is currently positioned better and why?

4. What strategy would you recommend for your company based on recent trends and changes?

5. How can these strategies improve their image as a "corporate citizen" within the community?

Solution Preview

1. Think about demographic and sociocultural trends and changes and explain how each organization's interpretation of these trends and changes has affected its choice of strategy?

When considering how to answer this question, you have to think of current societal issues:
- a major issue is obesity. Children are getting fatter and are developing type 2 diabetes, a condition that is normally only seen in adults
- the general population of the US is overweight or obese. You can conduct you own research, but I am sure that the stats show the 2/3rd of Americans are overweight/obese
- poverty is an issue with new immigrants, people who make only minimum wage... life is very expensive and people do not have that much money to spend on find dining.

So the choices of strategies would be influenced by these factors: health and value.

2. Is their strategy affected by the amount of advertising they do on television and the internet?

When companies spend ...

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