Marketing Plan Phase III
Marketing Plan Phase III
In-N-Out Burgers basic values and philosophy is simple: make the highest quality product, prepare the product in a clean environment, and serve the product in a warm and friendly manner. Introducing a new product to In-N-Out Burgers traditional menu will challenge the products success with both existing customers as well as new customers. The introduction of the salad with a desirable zest to In-N-Out Burgers menu will bring a healthier choice to improve the menu and escalate customer satisfaction. The new product will be entering the market during the very competitive and less profitable maturity stage of the product life cycle. The target market for the new product will be families that want a choice in the fast food restaurant industry. The new salads with their flavorful attributes will give In-N-Out Burgers a competitive advantage because of their positioning and differentiation strategies at the right price. Product Attributes
Maintaining the tradition of quality, In-N-Out will only use quality salad dressings on their salads. In-N-Out’s competition uses Newman’s popular brand name salad dressing that has an established fan base, and another competitor uses Ken’s salad dressing that are ranked the most popular salad dressing brands. They tend to be higher in calorie count so In-N-Out will be challenging the competition to provide a healthier salad option by using Annie’s Organic Salad dressings. Cost will be low because only three dressings will be needed to launch the salads; Caesar, ranch, and vinaigrette. This will allow for the growth of the salad line in the future. Mixed greens in the salads will allow for aesthetics’ as well as added nutrition, especially with an array of dark green leafy lettuce such as romaine. Cherry tomatoes will be added for color and fresh shredded carrots for variety. A colorful description of the salads has been added to demonstrate the quality of each. Side Salad. In N Out’s side salad is a fresh garden salad with a blend of premium lettuces.
The generous salad serving is accented with blended cheeses, shredded carrots, and cherry tomatoes fresh from local farmers. This salad comes with three choices of dressings; organic ranch or vinaigrette and In-N-Out’s signature special sauce. Caesar Salad. In addition to the variety of greens and cherry tomatoes the Caesar salad is topped with parmesan cheese. The salad is then tossed in a light, flavorful Caesar dressing. Avocado Chicken Salad. In- N- Out’s Avocado salad appeals to the Californian in us all. This salad is a hearty salad meant to satisfy. The mixed greens are combined with cherry tomatoes, blended cheese, red onion, ripe avocado, and grilled chicken. This salad will also come with the choice of ranch, vinaigrette, or special sauce. Product Life Cycle
In-N-Out will be entering the salad foray behind the eight-ball in terms of the fast food salad product life cycle. Other fast food restaurants have had salads as an option on their menus for years prior to In-N-Out; they may already have a hold on much of the salad eating market. In-N-Out is entering the salad fast food market during its maturity stage. This means that In-N-Out may not be able to enjoy the large profit margins that early salad pioneers experienced, however, In-N-Out is confident that those smaller margins will be helped by regular increases in salad sales volume in addition to increased sales of the core menu items. In order to maximize salad sales volume, In-N-Out must recognize the maturity of the salad market and promote accordingly. Doing this will require In-N-Out to differentiate its salad offering from the competition and reposition its standing in the minds of consumers who do not feel that In-N-Out has an adequate assortment of food options.
Customers who seek out salad offerings no doubt are interested in health benefits, freshness, availability, and price. In-N-Out is already known for their freshness and taste; their competition, on the other hand, many times, is not. In-N-Out must emphasize through their marketing mix that the same crisp freshness that customers expect from ingredients on their burgers is the same crisp freshness they can expect in their salads. The simple, low calorie nature of In-N-Out salads should be made clear because competitor salads often are not very in calories or sodium content. The simple and fresh nature of In-N-Out products will be an advantage of health conscious consumers. In-N-Out has an opportunity to win with quality but also due to the nature of competitor pricing, In-N-Out has an opportunity to match or beat their competitors in that arena as well.
In-N-Out would do well to indicate the price advantage of their fresh options compared to the competitions heavier and pricier salad menus. Finally, In-N-Out must make it a priority to reposition its lack of choice perception in the fast food market. They must make it clear to customers that they now have an option beyond burgers and fries at In-N-Out. Couples and groups of people can eat at our restaurants even if one or more of the individuals is vegetarian or seeking a healthier options. Positioning and Differentiation Strategies
Product differentiation strategy is part of the marketing strategy of a company that will establish a strong identity within a specific target market for that product. The goal is to have the intended consumer perceive the product desirable and different. With the introduction of salads to the In-N-Out Burgers menu, the company will need to establish a product differentiation strategy as other competitors also have salads on their menu. The difference that In-N-Out Burgers brings with their salads is the quality of the food. No pre-packaged, frozen or over processed vegetables will be used. Product positioning strategy is also part of the marketing strategy of a company, but the goal is focused on the consumer instead of the product and where that product fits in relationship to their competitors. ‘Positioning refers to how customers think about proposed or present brands in a market.
Without a realistic view of how customers think about offerings in the market, it is hard for the marketing manager to differentiate.’ (Perreault, Cannon, McCarthy, 2011) In-N-Out Burgers has already positioned itself in the market regarding their burgers and has established a loyal base on customers. In-N-Out Burgers has ‘a famously devoted customer base that inspires envy throughout the industry—and brand recognition well beyond its geographic reach.’(Pearman, 2009) The product positioning strategy currently used for their burgers should be extended to their new salad products. Pricing Strategy
The price strategy that In-n-Out will be using for their new salads is to target those price-conscious customers looking for healthy options along with the current menu options being offered. As a company In-N-Out is aware that there is a need in consumers who want to keep a healthy lifestyle while still being able to have selections with reasonable pricing. In addition to appealing to those consumers wanting a healthier choice when ordering, In-N-Out is conscious that the competition will have similar selections with similar pricing as well.
In this instance because the company doesn’t use intermediaries to promote or sell products, they will add to the marketing strategies by increasing the advertising on radio and TV commercials with the new salad options that have been added to the traditional menu that has been around since the company began. The advertising efforts will also add to the value that In-N-Out has had from day one, and that is freshness of their products. In-N-Out is confident that by using previous marketing strategies to offer the menu to consumers and offering the salads to the traditional menu with similar pricing will not only continue to keep existing customers but will also bring in new customers. Conclusion
The new salad with its flavorful attributes will give In-N-Out Burgers a competitive advantage because of their positioning and differentiation strategies at the right price. The attributes of the three new salads being introduced to the menu are healthier, colorful, great tasting choices. The product is entering the market in the maturity stage of the product life cycle but In-N-Out Burgers can maintain this stage with its commitment to quality, and freshness, which gives it a competitive advantage. The success of the product will come from the firms positioning and differentiation strategies of quality while focusing on customer interests. In-N-Out Burgers price strategy will be competitive in the industry so as to draw new customers as well as satisfy the needs of the existing customers. In-N-Out Burgers is about quality, competitiveness, customer satisfaction, and a healthy diet.
Pearman, S. (2009). In-N-Out Burger’s Marketing Magic. Retrieved from http://www.businessweek.com/smallbiz/content/apr2009/sb20090424_877655.htm Perreault, W., Cannon, J., & McCarthy, E. (2011). Basic Marketing: A Marketing Strategy Planning Approach (8th ed.). New York, NY: McGraw Hill/Irwin.