Create Products and Services Customers †Free Samples to Students

Question: Discuss about the Create Products and Services Customers. Answer: Introduction A value proposition can be defined as a statement of all the offerings which a company gives to its customers for a price (Andreson, Narus and van Rossum 2006). This serves as a promise that the company will exceed the consumers expectations. The chosen company for the given report is Mc Donalds. Mc Donalds is one of the largest food chain brands in the globe. The company has its operations in almost all the countries in the globe. The company is a fast food company with restaurant facilities. The company started its operations in 1940 (Mcdonalds.com. 2018). The company serves around 69 million customers every day in over 120 countries. The chain is famous for the products like cheese burgers, chicken products, breakfast items, happy meals, French fries, deinks, wraps and shakes. Recently, it had received a backslash from the consumers regarding its health oriented products and it then added fish, smoothies, fruits and salads to its menu. The given report will elaborate on the customer perceived values for the customer of Mc. Donalds. It will also be comparing the value proposition of Mc Donald with Burger King and comparing with the appropriate value proposition that should be present. The last section will give details about an appropriate value proposition of the organization and suggest ways on their implementation (Baker and Saren 2016). The primary vision of the company is to become the most loved restaurant b all customer segments. They want to be highly valued by the customers and for their benefit they want to innovate new ways to conduct the business. Customer Perceived Value The customer perceived value of any brand can be described as the customer`s evaluation of all the benefits derived out of the products or offerings against the costs that have been incurred by them. According to Osterwalder et al. (2014), customer perceived value helps in an overall assessment of the different utilities of the product on the basis of their perceptions. The perception of the utility varies with respect to each individual but the general perception often remains the same. Some may value quantity over quality whereas some may have another view. None the less, a good offering will be successful in making the value better. The benefits refer to as the attributes of the product and its components are as follows: Quality Quantity Status Price Perceived Sacrifice refers to the costs involved of the customers which include the time spent, travelling cost and other relevant aspects which are non monetary. They are: Money spent Time spent Effort Psychic Cost (Coombes and Nicholson 2013). With respect to McDonalds the benefits which are associated with the perceived values are as follows: Price: The price of the various meals available is quite reasonable which is often liked by the different consumers. Quality: At Mc Donalds, the products sold are always flesh and various quality checks are conducted regularly (Kiel 2014). However, recently in many countries certain issues had arised with respect to the quality of the food. Status: Mc Donalds is deemed to be a family restaurant and enjoys a fair status whereby it is one of the mist visited restaurants. Convenience: Meals of all types are available in the restaurant and it is also pocket friendly. Therefore, many consumers like to purchase from the given restaurant (Johnson, Christensen and Kagermann 2008). The online facility which is available makes it easier for the customers to order at the convenience of their homes. Sacrifices associated with perceived value are: Money: The price which they are paying for the meals. Very often the consumers do not think that the meals are worth the price paid for it. In that case, the will not purchase the meal next time. Time: It is the time spent in billing for the meals purchased and the waiting time at the counter. Effort: This states the physical energy involved in the purchasing process and visiting the restaurant. Holbrook's typology of consumer perceived proposition Holbrook provides a well stated typology regarding the extrinsic value perception and intrinsic value perception. According to his theory, for Mc Donalds there will exist a higher extrinsic value as the customers mostly emphasize on the end result of their meals and how much it is capable of satisfying the hunger and taste of the consumers (Martello Landroguez, S., Barroso Castro and Cepeda-Carrin 2013). Secondly the self-oriented and other oriented aspect relates to the self orientation nature of the consumers as they tend to purchase the meal for themselves. Lastly, in the active versus reactive component, the restaurant customers are quite different from one another and belong to different cultures hence the restaurant needs to keep more customized products for the different customers in order to see to it that all of them are happy, however customers prefer reactive moves. The given framework helps to identify the key values present for the customers and it can be stated that in case of Mc Donalds, the customer value which is perceived is multidimensional and the customers give importance to efficiency and excellence (Czinkota and Ronkainen 2013). Mc Donalds Value Proposition Mc Donalds is highly focused on becoming one of the leading food chains in the world. The launch of the online ordering website has also given a boost to the e-commerce sales of the company which would further increase the base of the company. Mc Donalds applies various methods to keep their customers engaged and provide them valuable services. One of these primary methods is providing the concept of combo meals. If the meals are purchased separately then the charges are different whereas if they are ordering a combo they need to pay a very low price. The value proposition of Mc Donalds further includes: Convenient locations- Mc Donalds has its branches in more than 120 countries with each country having more than 200 outlets. Customers can find a Mc Donalds at every location. This is the reason the customers find Mc Donalds very suitable for their dining requirements. Good seating and in the house facilities- All the restaurants of the chain are well spaced out and can seat up to 150 people. It is kept clean at all times and also up-to-date with the latest equipments Fast service- Mc Donalds functions on a self service motto. However, the self service of Mc Donalds is very efficient and the waiting time for the customers in the queue is less than 5 minutes. Reasonable prices- The pricing of the different food items is quite reasonable. Even during surge demands, the price remains stable. Furthermore, they have offerings like that of a combo meal which provides the customers with more discounts (Kim and Mauborgne 2004). Customized and broad range of food options available- From breakfast to dinner, a wide range of food items are available at the customers disposal. Receiving a backslash from the people, it introduced a healthier menu as well. The value proposition of Mc Donald may range differently to serve the needs of the target markets .The wide range of food appeals to the family. The comfortable seating is better for those crowds who like to relax. The main advantage of Mc Donalds over its competitors is that it has the key aspects of a favorable location, facilities, service speed and distinctive products (Gronroos 2016). Mc Donalds understands the essence of value proposition and its importance in providing the customer a pride which attracts them to the brand. Mc Donalds has grown into the largest restaurant chain in the globe. The food chain represents excellent value for money along with good quality and fast service. Mc Donalds is perceived as one of the most reliable restaurants in the globe which creates value for the buyer in the following ways: Increasing the benefit with respect to cost Decreasing cost with respect to benefit Due to its good valuable goods and propositions the brand has been able to create immense brand loyalty and positive associations (Grnroos and Voima 2013). Value proposition Burger King Burger King is an American food chain company headquarter in Florida, the company was found in 1953 and has grown around becoming the fifth largest food chain companies in the globe (BURGER KING. 2018 ). The offerings made by Burger King include a wide variety of products like burger and related snack combos (Armstrong et al. 2015). The brand image of Burger King has been confusing lately. There exists strong brand recognition, the brand equity is unable to compare to that of Mc Donalds. Value proposition Low quality- There have been repeated customer complaints that, the quality of products of the Burger King is very law and the customers have stated that the products often smell foul. Comparable cost- The cost of Burger King is quite reasonable and comparable to that of the Mc Donalds brand. Burger King also offers a combo meal which can then be used for a tight budget. Poor service- The service of Burger King is not adequate. This may be because of the existence of irregular processes and slow employee service. The customers are often heard complaining about long queues and wrong orders (Wilson et al. 2016).The only different aspect of the food is the grilled taste which is good, but not worse the effort. Locations- Burger King is not located in various countries unlike Mc Donald. The market capture of Burger King is comparatively quite low. Illustration of a Value Proposition for the fast food sector Quality- Quality is the primary aspect of any organization and more critical in the food sector. Hence, the fast food chains like that of Mc Donalds and Burger King should see to it that the customers are provided with the best quality food and they do not have any issues. Application to Burger King and Mc Donald As analyzed from the above given analysis, Mc Donalds has been quite successful in providing the customers with good quality products (McDaniel and Gates 2013). However, this is not the case for Burger King and it has not been able to provide good quality products to its customers. Location- The fast food chain restaurants should be easily locatable for the customers. There should be a presence of a fast food restaurant at every corner. Application to Burger King and Mc Donald Although Mc Donalds is located at every corner in over hundreds of cities, the same is not the case of Burger King. Service- These restaurants function on a concept of Self- Service, and therefore it should be efficient and fast. Application to Burger King and Mc Donald Burger King has a poor service as compared to that of Mc Donalds. Variety of menus- Being a family chain restaurant, the menu option at the various restaurants should be very wide and customized for every region. Application to Burger King and Mc Donald Mc Donalds has been successful in this aspect whereas Burger King still has to reach that milestone of offering a wide range of options to the customers. Currently, the restaurant chain has a limited menu base. A new value proposition matching the value criteria of the customers As stated earlier, the customers have their own perception about the value that is being delivered to them. Some of the Value Criteria that consumers generally tend to use have been given below: The products that are being offered to the customers or the service requested should be of the best quality. Quality is one of the most valued criteria that the customers look for (Gummerus 2013). The services or the products that are to be offered to the customers should be of reasonable price. The customers tend o invest a lot of time and effort into their purchases and therefore the costs to be reasonable. Quantity The customers often tend to be materialistic and would like to be offered a product which has an adequate quantity and can be used sufficiently. Status- The consumers like to associate themselves with a brand that uplifts their social status and tends to give them pride and respect (Ardley 2006). Suggested Value Proposition The Suggested value proposition based on the given analysis and customer value proposition related to the food industry is stated using the concept of Eric Sink`s Value Proposing Model (McDonagh and Prothero 2014). The learned scholar had described that the benefits of the service and products should always be highlighted and highly visible in the eyes of the customer. Hence he suggested that the value proposition should be: Superlative- This aspect states the reason why the customers should be purchasing the given product. Label proof- The given aspect states the description of the offering made by the company Qualifying- The value proposition should be stating who is to purchase the given product Hence, the value proposition of a food chain should be: Looking out for healthy and reasonable meals? Mc Donalds offers a wide range of meal options for customer looking out for a happy meal! Explanation Therefore, through this value proposition, the company aims to offer the customers a product that is: Easy on the pocket- Through the above value proposition, the company states that the company is offering what the customers generally desire which is a pocket friendly product which will be enough to fulfill the huger and be reasonably priced as well. Good quality healthy items- By stating that the company intends to offer the consumers a healthy meal, the company is making sure that it fulfills the qualitative aspect of the customer proposition Matching with their health conscious status- Lastly, to match the standard of living and status of the customers, the company needs to offer the consumers with a healthier option that will be at par with their status (De Mooij 2013). Hence, it can be witnessed from the given value proposition that it matches suitably with the customer value criteria. Implementing the value proposition internally and externally Having a value proposition is not enough, the companies need to see to it that the value proposition is implemented and communicated well both within the organization with respect to the employees and outside which refers to the consumers. The value proposition of a company should be clearly defined and help in creating a cohesive company culture and provide the employees with a sense of purpose. There are a variety of methods available to implement value proposition in the company and some of them are: Team building- Internally, when a value proposition has been set out the company should see to it that the organization ensures various team building activities which will encourage the different employees to take the proposition offered quite seriously and work efficiently towards their successful delivery (Hair Jr and Lukas 2014). Improved processes- In order to deliver the value propositions like faster servicing to the consumers, the processes which create value like the preparation of food, pertaining to the food industry needs to be improved and made up-to-date with the latest trends. Training In order to insure that the value proposition is successfully delivered, the various employees can be provided with adequate training which shall ensure that they know their responsibilities well and they will be performing adequately according to the standards set and described for them (Hartley and Claycomb 2013). Seminars- The organization can also conduct various seminars and invite motivational speakers who will be giving advice to the different customers as to how the value proposition in an organization plays a key role in delivering the happiness to the consumers. Marketing collateral in marketing collateral, there exists a procedure whereby various brochures, flyers, promotional kits are sent to the employees and consumers alike whereby the value proposition of the organization is clearly stated. Marketing collateral goes a long way in helping the employees to define and articulate the value proposition of the various offerings of the company. Along with being a learning prospect for the employees, the print media related to the marketing collateral also goes well with the millennial and various other customers. The above suggested methods are certain ways in which the organization can implement the set value proposition. From the above, the company can use method like Team Building, refined processes, training and seminars to improve the value proposition n with respect to the internal environment (Kotler 2015). Whereas for the presence of customers in the external environment of that business the company can use the technique of Marketing collateral which shall go a long way convincing the consumers that the organization is capable of delivering what is desired by the customers. Apart from this one major component to implement the value proposition is to ensure that all the planning ends on a successful note and the various steps to ensure the delivery of proposition are carried out properly (Babin and Zikmund 2015). By just mere advertising and a lack of action will make the customers lose interest in the company and therefore it is suggest that the company carries out all necessary steps well to ensure that the customer is satisfied. Conclusion Therefore from the given analysis it can be stated that value proposition forms an essential part of the organizations core offerings. Without the proper implementation of the core proposition and organization may not be successful in fulfilling the desires of the customers. The given report briefly highlighted the Value proposition and relevant aspects about the chosen company Mc Donalds. Further it discussed the value proposition offered b the company`s competitor Burger King. The following section has suggested a sample value proposition for an organization which is followed by the methods to implement the given value proposition. Hence, it could be understood that action is equally important to the statements and the organization should always go beyond consumer expectations. References Andreson, J.C., Narus, A.J. and van Rossum, W., 2006. Customer Value Propositions in Business Markets. Harvard Business Review. March, pp.91-99 Ardley, B.,2006. Telling Stories about Strategies:A Narratological Approach to Marketing Planning The Marketing Review, 6, 197-209 Westburn Publishers Ltd Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015.Marketing: an introduction. Pearson Education. Babin, B.J. and Zikmund, W.G., 2015.Exploring marketing research. Cengage Learning. Baker, M.J. and Saren, M. eds., 2016.Marketing theory: a student text. Sage. BURGER KING. ,2018.BURGER KING. [online] Available at: https://www.bk.com/ [Accessed 10 Mar. 2018]. Coombes, P.H. and Nicholson, J.D., 2013. Business models and their relationship with marketing: A systematic literature review.Industrial Marketing Management,42(5), pp.656-664. Czinkota, M.R. and Ronkainen, I.A., 2013.International marketing. Cengage Learning. De Mooij, M., 2013.Global marketing and advertising: Understanding cultural paradoxes. Sage Publications. Gronroos, C., 2016. Service Management and Marketing: Managing the Service Profit Logic. John Wiley Sons. Gummerus, J., 2013. Value creation processes and value outcomes in marketing theory: strangers or siblings?.Marketing Theory,13(1), pp.19-46. Hair Jr, J.F. and Lukas, B., 2014.Marketing research(Vol. 2). McGraw-Hill Education Australia. Hartley, R.F. and Claycomb, C., 2013.Marketing mistakes and successes. Wiley. Johnson, M.W., Christensen, C.M. and Kagermann, H., 2008. Reinventing your Business Model. Harvard Business Review. (December), pp.51- 59. Kiel, I.H., 2014. Entrepreneurial marketing. Kim, W.C. and Mauborgne, R., 2004. Blue Ocean Strategy. Harvard Business Review. October, pp.76-84 Kotler, P., 2015. Framework for marketing management. Pearson Education India. Martelo Landroguez, S., Barroso Castro, C. and Cepeda-Carrin, G., 2013. Developing an integrated vision of customer value.Journal of Services Marketing,27(3), pp.234-244. Grnroos, C. and Voima, P., 2013. Critical service logic: making sense of value creation and co-creation.Journal of the academy of marketing science,41(2), pp.133-150. McDaniel, C. and Gates, R., 2013.Marketing research. Singapore. McDonagh, P. and Prothero, A., 2014. Sustainability marketing research: Past, present and future.Journal of Marketing Management,30(11-12), pp.1186-1219. Mcdonalds.com. ,2018.McDonald's Menu Info | McDonald's UK. [online] Available at: https://www.mcdonalds.com [Accessed 10 Mar. 2018]. Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014.Value proposition design: How to create products and services customers want. John Wiley Sons. Wilson, A., Zeithaml, V., Bitner, M.J. and Gremler, D., 2016.Services marketing: Integrating customer focus across the firm. McGraw Hill.