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Questions Covered in Solution
How to Overcome a Sandwich Selling Slump
Firehouse Subs (http://www.firehousesubs.com) is a more than 20-year-old restaurant chain based in Jacksonville, Florida. It emphasizes a firefighter theme and has more than 390 restaurants that serve specialty submarine sandwiches.
THE CHALLENGE: Facing declining sales throughout its system, the chain sought a new creative marketing strategy
- You are the Chief Marketing Officer (CMO) of Firehouse subs looking for a new creative agency. What qualities are you looking for?
- Firehouse’s Marketing Goals:
1. What is at the core of their marketing strategy?
– Be sure the strategy “fits” within the company’s activities.
– Run Firehouse through the Porter’s 5.(Attached)
2. How does Firehouse build its value?
– Brand Report Card.
3. How does the CMO gain support and buy-in from the franchisees?
- Where would you place Firehouse’s positioning?
- What are Firehouse’s trade-off(s)?
- SWOT Analysis
- SUCCES Model
Sample of Solution
Firehouse Subs has been effectively capitalizing over its core competencies to add value to its customers and realize its ultimate mission which is “To carry on the commitment to and passion for hearty and flavorful food, heartfelt service, and public safety” (FireHouseSubs, 2016). Since the company has oriented its business strategies over its core values which are to provide tasteful, healthy food with executive service to enhance consumer intimacy and ignite brand loyal behavior. Furthermore, the company encourages an entrepreneurial approach to attract greater market share and maintain the existing. Since, 1994 the company has always managed to maintain substantial growth in its operations while switching to the franchise model, the brand expanded to more than 300 locations and 17 states. But from the last year, the company has been facing a considerable decline in its sales, despite the fact that company has reduced its royalty proportion which further marginalized the gross profits, to empower the local franchise stores. Hence, being a Chief Marketing Officer, one should be focusing on the root cause of the reduction in sales and then formulating an effective marketing strategy by employing competent advertising agency.
For the entity oriented analysis, SWOT analysis must be conducted to realize the potentials of the firehouse and its capability to execute diversified strategies.
· Established brand name
· Diversified locational access
· Extensive consumer base
· Value Delivery Network
· Limited international presence
· Inefficient market research techniques
· Disrupted financials
· Product portfolio diversification
· Consumer-oriented event initiation
· Segmentation Targeting
· Fierce competition
· Inefficient marketing
· Low financing opportunities
It has been realized that the company is facing a potential loss in its sale’ volume, due to insufficient consumer insights and hence inefficient marketing campaigns, reduced consumer engagement by executing trivial techniques, and reduced financial effectiveness. Hence, the new chief marketing office should be targeting real-time marketing strategies which involve insight accumulation of latest market trends, formulation of cost-effective advertising campaigns and customer-oriented social programs. Firehouse should also flourish its engagement terms with its subsidiaries to enhance the efficiency of its operations and the execution of personalized marketing strategies.
Porters Five Force Model:
Since, firehouse has been facing potential threats from the market environment due to increased competition, branding collusions, and enhanced consumer orientations, a comprehensive market analysis must be inbuilt for instigating effective strategies. Hence, firehouse must be scrutinized in conjunction with porter’s five forces model, to realize the influence of external market environment excessively, and then to formulate future planning while building on the rationale of latest market demands.
New Marketing Strategy:
Firehouse has been facing serious marketing issues which must be addressed in real time frames to mitigate their impact on the strategic business development. Furthermore, from the extensive analysis of firehouse’s current market position, it can be induced that the company needs to relaunch its brand with the new preferences and new product portfolios while benefiting from its existing core competencies. Essentially firehouse must at least reconsider the diversification of its product’s portfolio with a greater orientation towards the changing trends leashed in the findings of the market research. The new advertising agency can be employed to formulate more engaging social advertisements which may cater new pool of the customers. Cost effective campaigns can be launched by targeting to some social cause and engaging the customer at all the relevant demographic levels (Kotler, Burton, Deans, Brown, & Armstrong, 2015).