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Harvard Case - Sonic Introduces a Blended Burger

"Sonic Introduces a Blended Burger" Harvard business case study is written by Lena G. Goldberg, Michael S. Kaufman, Max Saffer. It deals with the challenges in the field of General Management. The case study is 19 page(s) long and it was first published on : Dec 21, 2018

At Fern Fort University, we recommend that Sonic implement a comprehensive strategy to launch its blended burger, focusing on strategic planning, marketing, and operational excellence. This strategy should emphasize innovation, corporate social responsibility, and customer engagement, while navigating the complexities of international business and emerging markets.

2. Background

Sonic, a drive-in restaurant chain known for its fast food and customizable menu, faced a challenge in 2014: to attract health-conscious consumers without alienating its core customer base. This led to the introduction of the 'Blended Burger', a patty made with 70% beef and 30% mushrooms. The case study explores the decision-making process, the marketing strategy, and the initial reception of this new product.

The main protagonists of the case study are:

  • Sonic's leadership team: They are responsible for making strategic decisions, including the introduction of the blended burger.
  • Sonic's marketing team: They are responsible for developing and executing the marketing campaign for the blended burger.
  • Sonic's customers: They are the target audience for the blended burger and their feedback is crucial to its success.

3. Analysis of the Case Study

Strategic Analysis:

  • SWOT Analysis: Sonic's strengths lie in its brand recognition, drive-in format, and customizable menu. However, it faces weaknesses in its perception as an unhealthy option. The opportunity lies in tapping into the growing health-conscious consumer market. The threat is competition from other fast-food chains offering healthier options.
  • Porter's Five Forces: The fast-food industry is characterized by intense rivalry, low barriers to entry, and the power of buyers. Sonic needs to differentiate itself to remain competitive.
  • Competitive Strategy: Sonic can adopt a differentiation strategy by positioning the blended burger as a healthier alternative, appealing to a wider customer base.

Marketing Analysis:

  • Target Audience: Sonic needs to identify and target health-conscious consumers while maintaining its appeal to its existing customer base.
  • Marketing Mix: Sonic should focus on product differentiation, highlighting the health benefits of the blended burger. Pricing should be competitive, while promotion should emphasize the 'better-for-you' aspect. Place should leverage Sonic's existing drive-in format and explore online ordering options.

Operational Analysis:

  • Supply Chain Management: Sonic needs to ensure a reliable supply of ingredients, particularly mushrooms, to meet demand.
  • Manufacturing Processes: Sonic may need to adjust its manufacturing processes to accommodate the blended burger, ensuring consistent quality and efficient production.
  • Employee Training: Sonic employees need to be trained on the new product, its benefits, and how to answer customer questions effectively.

Financial Analysis:

  • Cost-Benefit Analysis: Sonic needs to assess the costs associated with introducing the blended burger, including ingredient sourcing, marketing, and employee training.
  • Return on Investment (ROI): Sonic should project the potential sales and profit margins of the blended burger to determine its financial viability.

4. Recommendations

  1. Develop a Comprehensive Marketing Strategy:

    • Target Audience Segmentation: Identify specific consumer segments interested in healthier options and tailor marketing messages accordingly.
    • Multi-Channel Marketing: Leverage traditional media, social media, and digital marketing to reach different customer groups.
    • Partnerships: Collaborate with health and wellness organizations to promote the blended burger.
    • Public Relations: Generate positive media coverage highlighting the health benefits of the blended burger.
  2. Enhance Operational Efficiency:

    • Supply Chain Optimization: Secure reliable mushroom suppliers and implement efficient inventory management systems.
    • Process Standardization: Develop standardized recipes and procedures for preparing the blended burger to ensure consistency.
    • Employee Training: Train employees on the blended burger's ingredients, preparation, and nutritional benefits.
  3. Embrace Corporate Social Responsibility:

    • Sustainable Sourcing: Partner with suppliers committed to sustainable practices for ingredients like mushrooms.
    • Community Engagement: Support local health initiatives and participate in community events to build positive brand associations.
  4. Leverage Technology and Analytics:

    • Data-Driven Decision Making: Track customer feedback, sales data, and marketing campaign performance to optimize strategies.
    • Personalized Marketing: Utilize customer data to personalize marketing messages and target specific segments effectively.

5. Basis of Recommendations

These recommendations are based on the following considerations:

  • Core Competencies and Mission: The blended burger aligns with Sonic's core competency of customization and its mission to provide delicious and affordable food.
  • External Customers and Internal Clients: The recommendations cater to the needs of health-conscious consumers while addressing the concerns of existing customers and employees.
  • Competitors: The recommendations aim to differentiate Sonic from competitors by offering a healthier option and leveraging its drive-in format.
  • Attractiveness: The blended burger has the potential to increase sales and profitability by expanding Sonic's customer base and attracting new revenue streams.

6. Conclusion

Sonic's introduction of the blended burger represents a strategic opportunity to expand its market share and appeal to a wider customer base. By implementing a comprehensive strategy that focuses on marketing, operational excellence, and corporate social responsibility, Sonic can successfully launch and promote the blended burger, driving growth and enhancing its brand image.

7. Discussion

Alternatives not selected:

  • Ignoring the health trend: This would risk losing market share to competitors offering healthier options.
  • Focusing solely on existing customers: This would limit Sonic's growth potential and miss out on the opportunity to attract new customers.

Risks and Key Assumptions:

  • Consumer acceptance: There is a risk that consumers may not embrace the blended burger.
  • Ingredient availability: There is a risk of supply chain disruptions, particularly for mushrooms.
  • Operational efficiency: There is a risk that Sonic's existing infrastructure may not be able to handle the increased demand.

Options Grid:

OptionAdvantagesDisadvantages
Introduce the blended burgerExpand customer base, increase salesPotential consumer resistance, supply chain challenges
Ignore the health trendMaintain existing customer baseRisk losing market share to competitors
Focus solely on existing customersLower riskLimit growth potential

8. Next Steps

  1. Develop a detailed marketing plan: This should include specific target audiences, marketing channels, and budget allocations.
  2. Conduct pilot tests: Launch the blended burger in select markets to test consumer response and refine the product and marketing strategy.
  3. Train employees: Provide comprehensive training on the blended burger, its ingredients, and how to answer customer questions.
  4. Monitor performance: Track sales data, customer feedback, and marketing campaign performance to optimize strategies.

By following these steps, Sonic can successfully launch and promote the blended burger, expanding its customer base and driving growth for the company.

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