MGMT 231 Sales: Report on A&W's Selling Philosophy & New Products

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This report introduces a new product idea for A&W Restaurant chain, focusing on healthy and customized burgers to cater to changing consumer preferences. Recognizing the growing health consciousness, A&W aims to attract existing and new customers by offering options like low-fat cheese, baked patties, and multi-grain bread. The report suggests marketing strategies, including print and media advertisements, social media updates, and customer feedback initiatives to effectively position the new product. It concludes that this innovation addresses health issues and helps sustain a competitive advantage in the market, recommending an online food delivery application for better service.
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Running head: A REPORT ON SELLING PHILOSOPHY
A Report on Selling Philosophy
Name of the university
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1A REPORT ON SELLING PHILOSOPY
Executive summery
The purpose of this assignment is to present a new product idea for catering the market trend
of spending money on healthy food items. People have become more fitness and health
concerned than previous decade. Therefore, A&W restaurant chain has invented new healthy
recipes and included into the menu. The report intends to highlight the added benefit to the
target market and positioning strategy of newly invented product idea to sustain a competitive
edge.
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2A REPORT ON SELLING PHILOSOPY
Table of Contents
Introduction....................................................................................................................3
Product solution.............................................................................................................3
Product selling strategies................................................................................................4
Conclusion......................................................................................................................5
References......................................................................................................................6
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3A REPORT ON SELLING PHILOSOPY
Introduction
This report intends to introduce a product idea for A & W Restaurant chain, as they
want to add value to the target market and further enhance the customer base. In order to
approach the newer customer base or add more significance to the product a simultaneous
service will be launched too. Further, it will explain how this new product and linked service
can be positioned in the market. A set of strategies will be considered to improve potential
sales and profitability.
Product solution
A& W restaurant chain, Canada is famous for its quality and maintenance of hygienic
procedure. Acknowledging the changing consumer behaviour and food habits the restaurant
is thinking for launching a new product, which will help to cater market needs. The
restaurant, as mentioned before, is famous for their burgers and presents their ambience as
family friendly. However, with the progression of time A & W realises if the restaurant
would not come with a variation in food menu then it will be difficult to sustain the
competitive advantage in market.
According to the recent feedback programme and market research conducted by the
marketing executive team of restaurant chain, the families are made of people of different age
groups. Thus, senior members can have issues with their health, children are not allowed to
eat junk food regularly and people are becoming calorie conscious even when they are
coming to a restaurant. Recognising the potential market threat, A & W would better come up
with healthy alternatives to attract the existing target market and health conscious people.
The product solution is customized burgers and healthy burgers. Customized burgers
will be prepared as per customers’ choice of ingredients. While taking up the orders waiters
will pass on a slip, where customers are expected to write name of ingredients that may cause
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4A REPORT ON SELLING PHILOSOPY
harm to their health. Chefs will consider that and prevent people from potential risk of
allergies or other health hazards. Healthy burgers will be prepared using low fat cheese,
baked patty instead of fried one, full of vegetables and bread made of multi grain or sweet
potato flour.
According to Bigliardi and Galati (2013), as pricing strategy will be modified for this
particular variation, it will take time to approach customers for trying these healthy
alternatives and get success accordingly. Although, companies like McDonald’s being the
immediate competitor of A &W, has not yet explored strategy of launching healthy bites to
ensure long term impact over target market. However, they have a powerful pricing strategy,
strategic and psychological pricing strategy, which are difficult to predict. Although, A&W
has been serving families with small budget, considering a reading of Saguy and Sirotinskaya
(2014), yet for this innovation, price will be higher yet assure best quality. Recommendation
is after archiving success on this venture, restaurant can think for own online food delivery
application to fulfil purpose of better service.
Product selling strategies
The study of Filieri (2013) suggests, in order to position the new product in existing
target market and to approach new customer base, it is essential to understand the aspects
behind this innovation. A & W is trying to address the health issues of Canadian population
to sustain their position in market and to strengthen a competitive edge as well. Target market
is families who have low budget mainly, yet new product will position itself considering the
trend of consuming healthy foods. People are fitness conscious or suffering with health
problems will opt for healthy or customized burgers even paying a little higher.
As the idea is new, customers must know about the offered product first. Sales and
marketing team can work for developing effective marketing strategy to launch products into
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5A REPORT ON SELLING PHILOSOPY
market with the help of print and media advertisements. Social media pages of restaurants
will be updated with news of this product innovation. Customers can be offered to have a bite
of new offering as complementary with ordered items in order to gain feedbacks. Positive
feedbacks can be considered as encouragement and potential success of new product idea.
Direct marketing strategy, by offering the customers on visit to taste and social
marketing strategy are cost effective and approachable to wider range of audiences rather
than traditional advertisement procedure. The restaurant can offer discounts on special days
like if it a customer’s birthday or anniversary. Besides, sending gifts like complementary
French fries or dips with the ordered food in case of home delivery will enhance the value of
the offered products.
Conclusion
Therefore, it can be concluded that changed dietary requirements of Canadian families
and to cater their tendency of consuming low calorie healthy foods A&W restaurant chain
wants to come up with customized and healthy burgers. This innovation will not only address
health issues of family members; it will serve fitness freak youths also. Simultaneously, this
strategy will help to sustain the competitive advantage and help the organisation to create a
long-term impact over market.
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6A REPORT ON SELLING PHILOSOPY
References
Bigliardi, B., & Galati, F. (2013). Innovation trends in the food industry: the case of
functional foods. Trends in Food Science & Technology, 31(2), 118-129.
Filieri, R. (2013). Consumer co-creation and new product development: a case study in the
food industry. Marketing Intelligence & Planning, 31(1), 40-53.
Saguy, I. S., & Sirotinskaya, V. (2014). Challenges in exploiting open innovation's full
potential in the food industry with a focus on small and medium enterprises
(SMEs). Trends in Food Science & Technology, 38(2), 136-148.
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