A Value Proposition is possibly one of the most important decisions companies make. A company must summarize how is will serve targeted customers, how it will differentiate its products from the offerings of competitors and position it self in the marketplace. A companies Value Proposition is a set of benefits or values it promises to deliver to consumers to satisfy their needs (text page 9). We will discuss what Value Propositions differentiate McDonalds, Subway and Pizza Hut. Why would a consumer patronize one restaurant rather than the other?
McDonald’s value proposition introduced by their founder, Ray Kroc, many years ago stands for "friendliness, cleanliness, consistency, and convenience." More recently the fast food chain has differentiated themselves with their “Value Menu”. Menu items designed to be the least expensive items available. McDonalds developed the menu by experimenting with a variety of menus and pricing strategies and focusing on the needs their target demographic group and what they had in common. During these tuff economic times their advertisements regarding a hot “Value Meal” for three dollars give them an advantage over competitors.
The first Subway franchise opened in Wallingford, Connecticut in 1974. Subway makes it statement or Value Proposition was through years of effective advertising with the successful ‘healthy’ eating campaigns. Jared S. Fogle also known as The Subway Guy, is a spokesman employed by Subway Restaurants in its advertising campaigns. He is known for his significant weight loss, now known as the "Subway diet", attributed to eating Subway sandwiches, which led to his role promoting the company.
Pizza Hut started out as a pizza parlor opened up by two brothers in Topeka, Kansas. The chains Value Proposition was take care of the customer, and the customer will take care of you. Pizza hut committed to providing good customer service in order to create customer loyalty. In return, the customer will...
Please join StudyMode to read the full document