A&W Ma

Topics: Fast food, Fast food restaurant, KFC Pages: 16 (6682 words) Published: October 23, 2012
Executive Summary
A&W Restaurant has a large range of target market. This is because they are serving fast food that can be consume by all people such as children, families, teenagers, adults and late adults. As we all know A&W use to be famous and likeable by all people. But now days A&W are no longer the first choice of people eats fast food. In order to regain their name and rebrand it, we have decided to improve their four P’s which are product, price, place and promotion. Four C’s also will be discussed from the customer’s perspective and point of view, which are customer solution, customer cost, convenience and communication. While Direct Marketing will be used to solve their problems and at the same time to improve and promote their product using new ways of promotion. Introduction

A&W Restaurants, Inc. is a chain of fast-food restaurants, distinguished by its draft Root Beer and Root Beer float. A&W serving a typical fast food menu of hamburgers, french fries and hot dogs. The food served is 100% Halal and is very popular with the young generation, with Root Beer being the driving force of the large number of sales. The founder of A&W is Roy Allen and Frank Wright, the company name was taken from their last name. (Dinesh, 2008) A&W began in 1919 in Lodi, California, when Roy Allen took on partnership with Frank Wright to help him with the Root Beer business he had started in1919. Allen purchased the formula for his Root Beer from a pharmacist in Arizona. To this day, the unique blend of herbs, spices, barks and berries remains a proprietary secret. Most of the outlets are drive-in restaurants with carhops. A&W starting franchises in 1921 in California, arguably the first successful food franchising operation, the licensing franchises not only in the United States but around the world. They had 2000 stores in 1960, in 1963 A&W’s first store in Asia Pacific opened at Kuala Lumpur’s Batu Road (now known as Jalan Tuanku Abdul Rahman). It was also the first fast food corporation from the United States to set foot in the country. In 1970, A&W had more outlet than McDonalds. A beverage division was started in 1971, supplying bottled A&W products to grocery stores. The soft drinks sold under this brand are Root Beer and cream soda, made by Dr Pepper/Seven Up, Inc. Before 2011, A&W was a Yum! Brands, Inc. On January 18, 2011 Yum! Brands announced its intention to sell A&W along with Long John Silver's because of poor sales for both divisions. (Dinesh, 2008) Market Analysis

In 2004, B.K Sidhu has made an analysis about A&W restaurant that had undergone a shareholder or management change for almost 41 years. This has shown that A&W had led to many changes in priorities and a lack of focus. As the result, A&W had not come out with their fullest potential. Besides that, A&W had also undergone with many competitors for this past few years, for example they were being compete and currently still need to compete with many fast food restaurant such as Mc Donald, Kentucky Fried Chicken (KFC), Pizza Hut and many more. A&W service also been questioned by their customers. “…Their serving staffs are all nice and friendly too. But of course, nice and friendly do not mean efficient. Unfortunately, they must have scrimped on training fees.” A&W is a big chain fast food restaurant; they should have training services after they recruit their employees. Furthermore, their managers also should be well trained on how to handle their employees and customer complains.

A&W also had problems with their four P’s which are their product, price, place and promotion. For their products, they had many complaints from these past few years saying that they had lost their originality taste of their foods and beverages. For example, in food review website one customer had complains about their foods. “The Coney dog which is one of A&W signature item has buns dry...
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