Market competition Essay

Custom Student Mr. Teacher ENG 1001-04 17 May 2017

Market competition

Back Yard Burgers faces stiff competition from three major brands that have gained acceptance and popularity among the masses. Burger King, McDonald’s, and Wendy’s are the biggest competitors that Back Yard Burgers has to face today. The global recognition of the McDonald’s brand and its universal presence makes it one of the biggest challenges that Back Yard Burgers face. The visibility of the McDonald’s has spread to such an extent that even toddlers recognize Ronald McDonald. The success of McDonald’s encouraged others to tap this huge market in the fast food industry.

This saw a rise in number of fast food outlets in the country. Wendy’s and Burger King are also growing brand names that have given stiff competition to fast food giants like McDonald’s. Their success is attributed to their marketing strategy that involves deep market penetration and brand recognition among children and adolescent who form a large chunk of the consumer base. Back Yard Burgers face stiff competition from supermarkets and convenience stores too that offer the consumers take out meals and discount stores like Wal-Mart too pose a challenge to the company.

The home delivery system introduced by companies like Dominos is also eating away the market share of the company. So what are competitive forces that the Back Yard Burgers face? • The brand popularity and image recognition of the McDonald’s trademark logo and character in the form of Ronald McDonald that has become iconic in the fast food industry. • The training of personnel in the hamburger industry given by McDonald’s that has provided a new career avenue for the youngsters.

• The innovation in the menu and product offerings by Wendy’s targeting the matured consumer base. • The penetration of market segments by Pizza Hut, Dominos, cafeterias, and coffee joints. • The introduction of home delivery system of pizzas by Dominos. • The option available to the consumers with take-away meals from convenience stores. • The widespread openings of discount stores like Wal-Mart. These are some of the major competitive challenges faced by the company. A look into the strategies of big brands like McDonald and Wendy’s highlights the importance of branding.

It is the force of a strong brand presence that drives the consumer taste and preference. Brands create a consumer expectation with their consistency and uniformity of service and quality. Strong brand awareness correlates with loyal consumer base and increased revenues in the fast food industry. An effective strategy to achieve this goal is the company logo that portrays the company’s image in the consumer minds. In the initial stages Back Yard Burger had managed to capture the consumer interest with its homemade burgers and sandwiches.

Consumers came back for more of the great taste and quality of food being served to them. As part of its expansion strategy, Back Yard Burgers had entered into a Development Agreement with the YUM! Brands Inc. , for sub licensing of the Back Yard Burgers concept and trademarks in the year 2002. YUM! Brands were given the right to open ten Back Yard Burgers outlet as part of multi brand units with Taco Bell, Pizza Hut, and KFC. But this agreement fell through and further discussions were terminated. Lattimore M.

Michael, Chairman of the Board and Chief Executive Officer of Back Yard Burgers, had stated on this development, “While we are disappointed with today’s developments, we are optimistic about the future of the segment of the quick-serve restaurant industry that seeks to provide premium food and service. We will continue to focus on our principal growth strategy of setting our restaurants apart from other fast-food competition by serving freshly prepared, great tasting food comparable to that of the best full-service casual dining restaurants. “

Free Market competition Essay Sample

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  • University/College: University of Arkansas System

  • Type of paper: Thesis/Dissertation Chapter

  • Date: 17 May 2017

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