In-N-Out Burger Case Study free essay sample

1)In the eyes of its customers, In-N-Out Burger provides them a huge value that they are willing to go well out of their way for. From In-N-Out’s beginning, their marketing plan has been simple and effective in order to capture value from its customers. For this to happen, In-N-Out needs to understand the market place and their customers needs and wants. In this case, In-N-Out knows that their customers do not just want a burger from a large chain restaurant, but one from a restaurant that has kept its original philosophy in place, â€Å"Give customers the freshest, highest quality foods you can buy and provide them with friendly service in a sparkling clean environment† (Principles 33). This philosophy has helped to keep the company on track and to continue capturing value from its customers. In-N-Out Burger’s customer-driven marketing strategy is very effective. They know that to have satisfied customers they must have happy, and motivated employees. In-N-Out pays their employees very well compared to other burger chains salaries and offers multiple benefits for all of its workers. This keeps the employees happy, which in turn, makes the customers feel good about eating there (Principles 33-34). In-N-Out Burger needs to deliver superior value to their customers by constructing and integrating a marketing plan. This plan incorporates a supply and distribution system that is unique to the industry. Many of In-N-Outs competitors have a complex distribution service with food products coming from factories all over the country. In-N-Out has always kept their menu simple, by never changing it. They keep company owned distributors close to their stores, they use only fresh foods, and none of their ingredients are prepared in a factory (Principles 33). Customers value this business strategy, which is what In-N-Out wants to create higher customer satisfaction. In-N-Out does not spend a lot on advertising. They spend approximately one percent of the companies’ revenue on advertisements. This is a very small percentage when compared to McDonalds and their seven percent of revenue that is spent on advertising. New customers normally learn of In-N-Out through celebrities, or friends and family (Principles 34). Many of these business practices bring profitable relationships and customer delight to In-N-Out Burger. 2)Customers expect a certain level of performance and quality from an In-N-Out Burger restaurant. The customer has certain needs, wants, and demands that need to be met in order to satisfy their expectations. Humans need food, but they do not need an In-N-Out burger to survive. Their wants is what makes them desire an In-N-Out burger and their demands need to be met. A consumers wants, when backed by their buying power, becomes a demand (Principles 6). When they purchase what they desire, in this case a burger from In-N-Out, an exchange is made. The customer expects a level of quality when they spend their money, an In-N-Out works to achieve that. The performance In-N-Out provides exceeds many of its competitors in food quality and customer care. The customers’ performance expectations are met, and they become loyal to In-N-Out. In-N-Out Burger has a large following. There is even a secret menu that has been created over the years that customers enjoy teaching to new patrons of In-N-Out (Principles 34). This consumer generated marketing, in which consumers play â€Å"an increasing role in shaping their own brand experiences and those of other consumers,† is one indication that In-N-Out’s customers are very satisfied with the level of service that is provided to them (Principles 18). In-N-Out restaurants work to increase customer satisfaction and their customer’s perceived value. The amount of customer satisfaction and loyalty In-N-Out has received implies that their marketing strategies have produced very good outcomes for the company. In-N-Out’s popularity is ever growing, and their slow expansion makes customers across the country go well out of their way to eat there (Principles 33). Their unchanging menu and slow expansion gives In-N-Out managers and corporate employees time to concentrate on keeping up their standards and increasing their store’s level of performance. This business strategy seems to exceed customer’s expectation and keeps them coming back to In-N-Out Burger. 3)In-N-Out Burger should not adopt a high-growth strategy. An evaluation of the company would prove that their current marketing strategy, which has been practically unchanged for several decades, is proving to be very successful and fulfills their customer’s expectations. A SWOT analysis is â€Å"an overall evaluation of the company’s strengths (S), weaknesses (W), opportunities (O), and threats (T)† (Principles 55). The SWOT analysis analyzes these factors, and once complete, the company can adjust their marketing plan and strategies. Every company can benefit from a SWOT analysis of its company’s basic strategic building blocks, even if it’s determined that little to no change is necessary. Once the business analysis has been performed and the company strategy is formalized, then structure should be chosen to support the strategy in the most effective way possible. The strengths of a company that are evaluated in a SWOT analysis include internal capabilities, resources, and factors that may help the company better serve its customers (Principles 55). In-N-Out Burger has already applied strong measures to ensure satisfied customers. They believe that happy employees create happy customers, so they provide all In-N-Out Burger employees with benefits and wages that exceed salaries from competitive burger restaurants. In-N-Out Burger currently has a slow growth strategy. They make sure to only open a maximum of ten stores a year to ensure they have trained managers and that company-owned distribution centers are in place (Principles 34). These goals of In-N-Out Burger strengthen their customer and employee relations. Weaknesses that are analyzed in a SWOT analysis include internal limitations and negative situational factors that may cause interference with the company’s function (Principles 55). In-N-Out Burger’s slow expansion can also hurt them. Though limiting the amount of stores they open ensures that there are enough resources for that store, it also limits them to the amount of potential customers. Opportunities are external factors that In-N-Out Burger may be able to use to its advantage. These could include taking advantage of social media sites for advertising. In-N-Out Burger sets aside a small portion, one percent of its yearly revenue, for advertising (Principles 33). Though word of mouth has done In-N-Out Burger well in the past, interest in the company could slow down, and advertising online would be to their advantage. Threats to the company are unfavorable external factors or trends that may present challenges to their performance. Trends in burgers may slow down as people become more conscious about their health. Natural disasters or animal illnesses could also ruin many of the products In-N-Out Burger receives. As a whole, In-N-Out Burger’s marketing plan should stay unchanged. Their current slow-growth plan pleases employees and makes costumers go out of their way for their product. This plan ensures that their quality stays the same. If you examine business strategies from In-N-Out Burgers competitors that have a high-growth strategy, their business practices and quality of service and product is very different. In-N-Out Burger prides itself for remaining different from the rest and should continue to pursue the marketing strategy that has done them well since 1948. Bibliography: