Products and Services Offered
The paper talks about Sammy’s Sandwiches who is currently situated in Los Angeles, California with more than 50 stores in approximately 7 countries. The company is known for its sandwiches as this company offers different types of sandwiches, drinks, salads, nachos, and others to their customers. The company is willing to expand the business in other countries where the demand for the product is increasing. Considering the increasing demand of the New York customers for sandwiches the company decided to expand the business in New York (Mental Floss, 2017). The paper reflects the two new products that the franchise of the company will serve its customers in New York.
Currently, Sammy Sandwiches is offering different types of sandwiches not only with beef but also offers pork, ham, pastrami, turkey, and lamb. Along with this, the company believes in offering sandwiches with green veggies and salads that make it a healthy option for the customers. The company offer varieties of sandwiches include Sammy At Norb’s; Ping on wing (which include turkey breast, H&B Bacon, H&B Ham, Red onion, with Swiss cheese served with a baguette), The Turkey (Turkey Breast with choice of cheese and onion on top), Chicken (House marinated chicken breast with the Swiss cheese and roasted garlic mayo), The veg (includes different vegies including roasted red peppers and garlic mayo on wheat bread), Han & cheese (H&B ham with choice of cheese) Pastrami (a pile of pastrami with Swiss cheese and spicy mustard), The Reuben, Sammy Italian, Jill’s Hot Italian beef and many others.
The products that the franchise is currently offering to their customers include all the products that they are offering at Calfornia but along with this the brand will offer two new products that include Venison steak with the name Sammy’s New York Special (free range deer meat and topped with the sweet beery sauce and onions) and Bacon sandwich with the name Sammy’s bacon sandwich (include bacon with egg and choice of cheese) with a complementary of mojito or drinks (Morabito, 2013).
There are different methods that can be used by the companies to determine the needs of customers and an existing global market for the Sammy’s New York Special and Sammy’s bacon. Out of these methods, the three major methods that can be used by the company include focus groups, observations, and the Survey Questionnaires. Sammy’s Sandwich conducted the primary research with the use of focus groups. In this method, the company gathered the group of people (men and women) with the age group of 18-30 years belongs to New York and then asked few insightful questions with the help of video conferencing. These insightful questions of the include questions related to their new product (Venison steak and Bacon sandwich), their preference and taste, feedback for the product and many others. The company offered free coupons, vouchers and gift money to their participants. The group of people with 18-30 years were selected for gathering because the major target market of the company includes men and women with the same age group. Focus group method of primary research falls under the qualitative research that can help the company in analyzing the trend (Bryman & Bell, 2015).
Market Analysis and Primary Research
Another highly effective way for the company was an observation in the new market. In this method, observation can be done in two ways observation through interaction and communication and observation without interaction and communication (Bryman, 2015). Sammy sandwich conducts both the method they observed the behavior of the responder for Sammy’s bacon and for Sammy’s New York Special that helped them in understanding the behavior of the respondents. While communicating with the person they got to know about the preference of the customers in the sandwiches which helped the company in understanding the needs and buying behavior towards sandwiches. This approach is more personal approach if we compare it with the survey and Questionnaires. In this method, the company gives the scope to the customers to share their opinions as a company asks open-ended questions with their peoples (Reinharz, 2017). This gives an opportunity to the company to bring the changes in the product considering the behavior.
Survey and Questionnaires is another method through which the company can analyze the market. This method is effective in understanding the feedback of the customers present in the market (Babin & Zikmund, 2015). After conducting the survey, it has been analyzed that 45% of the people like to consume venison steak and 35% people desire to have bacon. In addition, people who consume it often desire to consume egg and sausage. The survey reflected the price range for the product in which they mentioned the price for meat sandwich and for an egg sandwich.
SWOT analysis was conduct which is an effective way to identify strengths, weaknesses, opportunities, and threats of this marketing proposal. This analysis is effective for the company as it provides the structured information related to the competitive advantage of the business and also reflects the marketing strategy of the firm (Laszlo & Zhexembayeva, 2017). Along with this, the analysis helps in understanding two inherent risks that indulge with the two new products introduced by the company. The analysis helped in identifying the competitive advantage of the Sammy Sandwiches that is customer services that they offer to their customers. The customer service is the only way through which the franchising of the company in New York is able to make its position in the market. Sammy’s Sandwiches tries to celebrate every occasion and festivals in their outlets which are an effective way providing customer services comparing it with its competitors. Moreover, currently, the company introduced Venison steak and Bacon sandwich along with that the company offered complimentary drinks to their customers. This complementary add on to the experience of their customers which makes the customer service effective.
SWOT Analysis and Inherent Risks
The launch of the product in the dynamic environment is not easy for the company as there is two inherent major risk associated with the launching of the new products and services in the global market (Peng, 2016). These risks are fluctuations in the rules and regulation of Industry by the government which means instability in the policies and competition in New York. In New York working in the dynamic environment is a challenge for the Sammy Sandwiches. These fluctuations might lead to the failure of the launch of the product in the market. Therefore, the company should analyze the external environment factors that might create an impact on the working of the company. This analysis will also help them in understanding the environment and they will be able to make changes quickly.
Another inherent risk that the company might be dealing with is competitors available in the market of New York. In the competitive market, there are many companies who offer save sort of products like Sammy Sandwiches. The competitors form different strategies (innovation in products, improvement in customer services, low prices and many others) to provide effective services in the market. These strategies of the competitors generate the risk for the company in the New York market. It will be difficult for the Sammy Sandwiches to attract and retain the customers towards their new products when the existing leaders of the market are available. Most of the customer believes in the quality of the products which makes them loyal to a brand who can offer them a quality which is a risk for the company. To minimize this risk the company can try to offer high quality at low prices which will be possible by forming ties up with the suppliers who can offer the best quality raw material. It is essential for the company to promote its products in the market effectively.
CRM software is a system that provides company to nurture relationships with the customers and forecasts to drive sales or sustain long-term profitability (Eichorn, 2017). The company can make use of the POS IQ as this is the ultimate customer monitoring and analysis tool that allows the company to choose for tracking different activities. Along with this, this software provides discount and marketing activities for the company (Fairbanks, 2018). Considering the fact, that restaurant industry is changing rapidly with the change in the technology. POS IQ software is designed especially for the restaurants who believe in making the customer happy with the delight services. POS perform all the activities related to tracking the order and delivers the product made by the customers. Along with this, this software contributes to tracking payroll, employee schedules and delivery (IQ Interactive, 2017). This is the easiest system through which the employees of the company can quickly split bills, take card payments without any delay. Sammy Sandwiches can make use of this system effectively as this system can guide them to a way to retain their customers by fulfilling their needs with the help of tracking.
Role of CRM Software
The information that is generated with the help of this software can guide the restaurants to drive CRM practices and track the sales in the global market. Sammy Sandwiches can make use of this system as this software is affordable and easy to be used by the companies (Expert CRM software, 2018). This system includes a time-saving feature which helps the company in analyzing sales data and managing the inventory, staff, and customers which helps the company in performing CRM practices. Sammy Sandwich can make use of the basic point of sale software for the inventory system as with the use of this software the company doesn’t have to worry more about inventory (Peavler, 2017). This system enables the manager to keep the track from different locations as this system provides the stability in prices from one location to another which is most effective of gathering information and this drive CRM practices and track sales in the global market.
Sammy Sandwiches have to get involved in the distribution channel as they have to buy the ingredient for their Venison steak and Bacon sandwich. The company can make the purchase directly from the retailers or from the wholesalers. Apart from it, they can contact the farmers for the purchase of ingredients in bulk. The ingredients that are used by the company in their new products are produced by farmers belongs to different countries (Green & Lomanno, 2012).
Generally, these farmers sell their goods to the wholesalers in bulk and these wholesalers sell its products to retailers because they buy the products in quantity. Over here, the company makes the purchase with the wholesalers and act as a retailer because they make use of these ingredients in their product and provide final goods to the customers.
The key consideration for entering into the global market consists of environmental factors, legal obligations, and the competitive forces. Confirming that the research is conducted by the company to under the needs and desires of the international customers is essential for the success of global marketing success. It is the responsibility of the Sammy Sandwiches to conduct the comprehensive research before launching the new products in the market. This is the fact that these efforts of the company will lead to the success of the business, achievement of the goals, rise in sales and revenue of the company along with the awareness in customers for the new product across the world.
Distribution Channels
It is essential for the Sammy Sandwiches to analyze its competitors in the global market. The customers are in control of their own so they can make choices for the product that they are willing to buy in the market of New York so it is essential for the company to identify those competitors who are offering some sort of products to the customers. At this point, it is important for the Sammy Sandwiches to seek the opportunity of attracting the customers towards its new products and retaining them for making them their loyal customers. Once the company will be able to understand their competitors then they can make use of the strategies against them to gain the attention of the customers.
The environment forces consist of political, legal and many other forces that can create an impact on the working of the company (Kotler, 2015). While entering the market of New York it is essential for the company to fulfill the legal obligation which will be possible once the company will understand all the guidelines of New York regulations. The international trade association and the export government of New York provide the help to navigate import and export procedures and regulations (NYC, 2018). NAFTA eliminated all the traffic and allowed companies to perform the free trade in New York (Manzella, 2001).
The global supply chain is the flow of goods and services from the producer to the end consumer. The new products of the company might get affected due to the global supply chain. Sammy Sandwich has to design an effective distribution way to make the product available to their customers. Effective supply of the product is the only way through which the company can achieve the success of the new products (Venison steak and Bacon sandwich) in the market. This is the fact that there are numerous challenges that are associated with the global supply chain such as delay in time of delivery, compliances related to trade and many others. These challenges might create the impact on the distribution of the new product and make it available to the final customer (Christopher, 2016). Moreover, to reduce the impact of global chain challenges the company should adopt some strategies which include a strong relationship with the vendors or suppliers of the company so that company can get delivery of product on time. This effective relationship will help the company in expanding the business at numerous places on time which leads to the customer’s satisfaction which is beneficial for the Sammy Sandwiches.
While launching the new product in the market the biggest question that arises is related to the price of the product. Sammy sandwich will use make use of the value-based pricing strategy for their new product. In the value-based pricing strategy, the pricing of the product is based on the value of the product in the eyes of the customers. Currently, the Sammy Sandwiches is becoming popular in the market with approximately 25% of the market share. The new products Venison steak and Bacon sandwiches were introduced in the market after considering the feedback of the customer with the rise in demand. Value-based pricing is important for the company to increase market share and strong customer base (Nagle, Hogan & Zale, 2016). In addition, this pricing strategy is effective because the company can increase the price considering their customers capacity to pay for the product.
There are three types of cost that are mainly associated with the cost of the product that is fixed cost, variable cost, and marginal cost. Sammy Sandwiches has to bear all these costs while producing the Venison steak and Bacon sandwich. The fixed cost is the cost which remains the same irrespective of change. Variable cost change with the change in the market situation and the marginal cost is the cost incurred by the company when they product additional unit of their products (Drury, 2013). Sammy Sandwiches will work in New York will get affected by marginal cost and variable cost. The rise in the demand for the product will lead to increase in marginal cost for the company and change in the market condition will affect the variable cost of the company.
The customers of the company will accept the value-based pricing strategy because the price of the product will be set by the company after considering the value of the product in the eyes of customers. The research will be conducted by the company before quoting the price in which they take the feedback from the customer regarding the price of the product. In this, the consumer will definitely like to pay a low price for the product as compared to the competitor’s price. Therefore, ultimately the company has to keep the low prices of the product along with the quality. It is suggested to the manager of the company to keep checking the market condition so that they can observe the change in the value of the product and can increase the price of the product at the right timing.
The price kept by the competitors for the Venison steak and Bacon sandwich are $7 and $3.50 respectively. These prices are set by the competitors considering the market conditions but Sammy Sandwiches will set the price lower than their competitors considering the value of the product. The value of the product will be lower than the price asked by the competitors from the customer perspective. The company needs to procure the raw material at the lower prices with quality as this will be beneficial for the company to gain the profit in the market.
There are different techniques of promoting the product in the global market that can be used by the company. These techniques include advertisement, sales promotion, direct marketing and many others. In the global market, Sammy sandwiches make use of advertisement to promote their new products (Lovelock, 2011). Through this, the company will be able to target more customers and will be able to make them aware of the new products that they are offering in the market. Moreover, this is the way through which the company will be able to reflect its commitment to its customers and they will be able to form good customer base or loyalty which will fulfill the objective of the company.
The two mass media that is selected by the company to promote its new products in the global market include advertisement and pamphlets. In the global market, it has been analyzed that people spend with their families. The television advertisement is the effective way through which the company can promote the product along with this they can involve celebrities in their advertisement. Pamphlets are another source through which they can make the people aware of their new products in New York (Baker, 2014).
The two social media channels that can be used by the company to promote the product include facebook and youtube. It has been found that a maximum number of people in the U.S. makes use of these two social media channels the most.
Facebook is on top with approximately 42.1% share and youtube has scored the second position with 25.2%. On Facebook, the company can prepare a separate page in which they can share the details related to their products and on youtube they can upload videos sharing the benefits of their products (Statista, 2018).
The two sales promotion activities that the Sammy Sandwiches will make use of include coupons and contest. Over the coupons are selected because this is the only effective way through which they can attract the customers and make them to again purchase the new products. This shows that this contributes effectively to the sale and revenue of the company. Another activity is a contest, through contest the company can make the customer participate and win different prizes. This is the way they will be able to interact with the customers that help them in understanding the customer desires and needs for the product and prices. Through this, the company can bring the changes in their product to satisfy the customers. This activity also contributes to customer loyalty for the company.
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