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Fast Food Retailing In Australia: A Specific Analysis Of Mc Donalds And Subway.

5372 words - 21 pages

IntroductionThe aim of the business report is to discuss the Australian Take Away Industry as a whole, taking into account all the elements which affect the industry. This includes both external and internal markets. The Take Away industry has quickly diversified and expanded with an increased number of substitutes and competitors. In order to achieve a thorough analysis of the industry, a comparison of two competing organizations has been offered, retrospectively.Discussed will be key marketing strategies, target markets, market share, advertising executions and market position. Once this has been done, we are able to suggest any different strategies or changes the companies can implement in order to create new opportunities for the companies, which will inevitably assist in the company's growth and prosperity in the market.Industry OverviewWithin the Takeaway Food Retailing industry in Australia, an assortment of takeaway food is retailed through stores to the general public for private use. These products are purchased from domestic manufacturers and wholesalers.The primary products available within the industry are:* Hamburgers* Pizza* Other goods* Chicken* Sandwiches, rolls, baguettes, focaccias* Salad and juice bars* Fish & chips* Pies, pasties, etcThe traditional products supplied by this industry have largely reached saturation levels. However, demand for healthy alternatives to traditional fast food has seen considerable growth in the variety of new options available. The Age noticed that "there has been a 25% increase in the number of fast food chain outlets in Australia since 2001". (The Age, 22/06/05)Relevant industry figures are shown below in Table 1.1Characteristic Approx.2004-05 figure Change from 2003-04Revenue $15.3 billion +10.3 %No. Enterprise/Establishments 27,600 +5.6 %Employment 224,285 people +3.9 %Gross Product $4.5 billion +9.9 %(IBISWorld industry report, 8th Feb. 2006, Takeaway Food Retailing in Australia 05-06, IBISWorld PTY LTD)Barriers to Entry* Dominance of the major players of the industry* The cost of establishing or purchasing a retail outlet* Little product differentiation amongst certain segments of the market* Established relationships with suppliersCompetitive Environment AnalysisIn the Australian Takeaway Food industry there is a great deal of competition. All takeaway food retailers need to have a competitive edge with competitive prices, service, advertising and location of the stores."The takeaway food retailers also face strong competition from supermarkets, because they have expanded their product range to include takeaway meals." (IBISWorld industry report, 2006) This is a challenge for the industry because Supermarkets are now even more convenient for consumers because they are providing the full range of goods.Recently, the industry has been subject to a high level of competition due to an increasing trend - consumers are even more concerned about fat content of takeaway food, and are looking...

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