The Distribution System
Distribution channel refers to the way a product reaches the market. Usually all products and services pass over a series of intermediaries who act as distributors and help the company market its product successfully. Success of distribution strategy often plays a dominant role in the ultimate success of the product itself.
Most large corporations have a long and complex chain of distribution units, which need to be coordinated properly in order to, generate maximum profits. Some of the best U. S. and Japanese corporations have distribution strategies, which are anything but simple. This reveals that it is not the simplicity of the system which matters. In case of Wendy’s its simple. The study contractors’ supply and the food is prepared in the kitchen under strict hygiene. The food is then handed over to the customer in three ways. 1. Over the counter on self service basis. 2. By drive through lanes. 3. By home delivery orders. (Restricted to some chains) Logistics
Usually vary from a chain to chain, but Wendy’s has its own credited and acknowledged distributors / suppliers which it trusts. In other franchises there are assorted suppliers which supple meat poultry and other required ingredients
As for exterior, Wendy’s looks more like the Fast Food outlets of USA, but some restaurants have adopted diversified exteriors. As for the interiors most of the Wendy’s restaurants have a calm and serene atmosphere, as compare to its rivals, the Mc Donald and YUM. The Competitive Advantage at Wendy’s The company through its extensive HR development and capacity building training programs has evolved a loyal employee base. It is the policy of the company to deliver Fresh and healthy food to its clients.
To do so, all the products are time punched when prepared. This combined with the excellent service staff has established Wendy’s edge as a motivator of employees and clients as well. The company takes pride in its edge in healthy food preparation and excellent service facilities like multi channel drive throughs. McDonalds might have an edge over Wendy’s financially by virtue of numbers of outlets, but Wendy’s has a specific edge over BK and Yum for its very own fortes of healthy hygienic and tasty food synergizing with the clients taste pallet.
What Wendy’s need to do:- Wendy’s has to reach out to its potential clients’ world over. KFC has adopted the technique of matching the taste pallets of its clients in India, Pakistan and around East. Wendy’s can follow suit and find its regional markets in the southeast Asia, all the while building and introducing recipes for the regional clientele living in the US e:g Chinese, Asians, Hispanics, Brazilians, Mexicans etc. This will not only earn them a broader customer base but also enhance its image with a global perspective.
• Michael Porter: Generic Strategies (1980) • CEO’s message to the share Holders (http://www. wendys-invest. com/fin/annual/ 2006/ceoMessage06. pdf) • Kotler, Philip, Marketing Management, (11th edition), Upper Saddle River, NJ: Prentice Hall, 2003 • Wendy’s Annual Report (2005) ( http://www. wendys-invest. com/fin/annual/2005/ wen05ar. pdf ) • Wendy’s Annual Report (2006)(http://www. wendys-invest. com/fin/annual/2006/ wen06ar. pdf )