Topic 7 place

There are different marketing distribution channels for the products to reach the customers. One of the main distribution channels that are commonly used is through the retail store. This is where the products are offered to consumers at a particular store outlet where the customers can obtain those goods from these retail outlets (Kwong-Yin Fock, 2001). The franchise retail outlet uses the retail strategy. Franchise refers to a retail store that is owned by independent business owners to operate those retail stores under the direction and guidelines of the franchisor. McDonalds is one of the largest and most successful franchise store in the world (Pardo-del-val et. Al., 2014). The McDonalds retail outlet is shown in the picture below:

mcdonalds.png

This franchise retail store adopts the business format franchising where there is a certain way on how to produce those products for consumers as well as the relevant colours, set up and customer service. This provides consumers with an expectation that whenever they enter a McDonalds store, they are able to identify the products as they are prepared in a similar fashion around the world.

McDonalds adopt the pull strategy in this marketing channel where McDonalds is able to advertise to consumers so that they are able to come and purchase the products in the store. McDonalds also offer certain marketing programs where the consumers participate in certain competitions when those consumers purchase the products. These strategies are able to pull customers into the store.

Given that the McDonalds retail outlet is operated by those individual business operators, the franchise can face some disputes and conflicts. This article below reports that the franchisees have some conflicts in dealing with the franchisor because of some different opinions on how to best manage the business in the face of competition:

http://www.businessinsider.com.au/mcdonalds-success-relies-on-franchisees-2015-5?r=US&IR=T

There are several ways that can be used to resolve such conflicts. The first way is for the McDonalds corporate to have a better and more communication when the franchisees to explain and justify certain actions. These can facilitate a better understanding by the franchisees on the point of view and research that is undertaken to justify a particular decision. This understanding and communication are able to build trust and confidence that the McDonalds head office is actually making the appropriate decisions that are in the best interest of those franchisees. Both McDonalds and franchisees are able to achieve success together as they have the aligned interest on taking those actions that maximises the return and profitability.

McDonalds has been evolving the business so that the retail outlet can continue to attract and excite the market and potential consumers. One of these evolution relates to the self-service technologies where the customers are able to participate in the menu ordering and tailoring the products to the specific needs of consumers (Kucukusta, Heung & Hui, 2014). This picture below shows such self-service kiosks:

topic 7 .png

These self-service technologies have certain advantages and disadvantages. The advantages are that these offer the consumers with the flexibility and convenience when placing the orders especially when there is along queue ahead. Those consumers also have the advantage of having the food delivered to them that indicates higher quality service rather than having to wait at the queue for their food upon ordering. However, the disadvantages of these self-service technologies are that the consumers may not be accustomed to such technology that is not the part of the McDonalds. The other disadvantage is that some consumers prefer to place their order through a person rather than a machine since the machine cannot provide the relevant social interaction. This is the main argument against the use of technology because the heavy reliance on technology can have negative impacts on communication skills (Schuster, Drennan & Lings, 2013).

 

References

Kucukusta, D., Heung, V. C., & Hui, S. (2014). Deploying self-service technology in luxury hotel brands: Perceptions of business travelers. Journal of Travel & Tourism Marketing, 31(1), 55-70.

Kwong-yin Fock, H. (2001). Retail outlet location decision maker-franchisor or franchisee?. Marketing Intelligence & Planning, 19(3), 171-179.

Pardo-del-Val, M., Martínez-Fuentes, C., López-Sánchez, J. I., & Minguela-Rata, B. (2014). Franchising: the dilemma between standardisation and flexibility. The Service Industries Journal, 34(9-10), 828-842.

Schuster, L., Drennan, J., & N. Lings, I. (2013). Consumer acceptance of m-wellbeing services: a social marketing perspective. European Journal of Marketing, 47(9), 1439-1457.

 

 

 

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