Today,the industry of quick service restaurants is growing rapidly andevolving at a fast rate due to competition, with the restaurants withstrong value propositions setting pace in the industry (Lee, 2011).According to Kowalkowski, Ridell, Röndell, and Sörhammar (2012),value proposition can be defined as the process by which a businessowner make promises of value to his or her customers, and then thosepromises are later fulfilled. The purpose of this paper is to examinethree fast food restaurants and describe their value propositions andhow they differentiate themselves.
Notonly is value proposition important for the success of any business,but also it is the basic reason customers would buy from a specificstore and ignore other similar stores. An effective value propositioncontains an explanation of how a product would improve or solve aclient’s problem, gives specific benefits, and finally explains whya customer should buy from a particular store and not from thecompetitors (Vallabhaneni, 2008). The following are three fast foodrestaurants whose value propositions would be described in thispaper:
Thisis one of the best and probably one of the popular fast foodrestaurants around the world. The target market for McDonald’s arethe business people, families, the elderly, and youngsters. Its valueproposition stands for convenience, cleanliness, friendliness, andconsistency. This means that they serve food that is of high andconstant quality in a quick and consistent manner across the world.
Thisis a restaurant that is famous for its staffs are not only friendly,but also they offer great service. Chick-fil-A holds the secondposition among the largest chicken restaurants that offersquick-service (Lee, 2011). Moreover, its sales increase rapidlyannually. The reason behind this success is because chick-fil-A hasmanaged to establish a strong employee and customer loyalty overforty years through a value proposition that is attributed to qualityservice delivery and customer value that is unique.
Thisis a fast food restaurant whose value proposition is attributed tooffering an affordable luxury to their customers when they are takingcoffee. Customers who visit this restaurant not only do they get anopportunity to enjoy a cup of coffee, but also they luxuriate withcolleagues and friends, away from home and work, or after a busy day.
Allof these restaurants are in the same line of business. However, agreat deal of difference can be observed across the threerestaurants. What makes the difference across these fast foodrestaurants is how their core value propositions are structured.According to Kotler and Armstrong (2012), the image that a consumerhas about a specific franchise is determined by service and theproduct they deliver. For instance, McDonald’s value propositionsincludes serving hamburgers, coffee, salads, and other things in aconvenient, quick, clean, and consistent way. On the other hand,Starbucks offers its customers coffee and a convenient place forluxury. Therefore, these two restaurants have these differences theconvenience, quick, consistent, and clean services from McDonaldsdifferentiates it from Starbucks that offers coffee and free spacefor luxury.
Chick-fil-Abrands focuses on chicken but for a consumer to differentiate it fromits competitors, it ensures that it delivers quality service deliveryand customer value that is unique (Lee, 2011). To put it into simpleterms, if a consumer thinks of getting a chicken from a restaurantthat he or she will be treated with respect and be given highstandard service, he or she thinks of Chick-fil-A rather than othercompetitors.
Inconclusion, a strong core value proposition is very essential for abusiness to succeed, and a small change in the value proposition hasa capability of making a very huge difference in franchising,therefore changing the consumer choice (Camlek, 2010).
Camlek,V. (2010). How to Spot a Real Value Proposition. InformationServices & Use,30, 119- 123.
Kotler,P., & Armstrong, G. (2012). Principlesof marketing(14th ed.). Upper Saddle River, NJ: Pearson Prentice Hall.
Kowalkowski,C., Ridell, O., Röndell, J., & Sörhammar, D. (2012). TheCo-creative Practice of Forming a Value Proposition. Journalof Marketing Management, 28(13),1553-1570.
Lee,S. (2011). Customervalue proposition and service profit chain of the chick-fil-arestaurant for enhancing customer experience.EuropeanJournal of Management,11(4), 117.
Vallabhaneni,S. R. (2008). CorporateManagement, Governance, and Ethics Best Practices.NJ: JohnWiley & Sons. Retrieved from AMA (http://www.marketingpower.com).