chew on this
Posted by Dale Buss on May 14, 2013 06:36 PM
With American consumers stubbornly reluctant to spend any more of their family budgets on fast food these days, major QSR chains have been struggling with how to get them to loosen their pursestrings a bit. A lot of the brands' emphasis has been on broadening "value menus" that provide a lot of food for relatively little cash.
But chain executives also know that there's nothing to get the digestive juices of fast-food customers flowing like new products. They look at Taco Bell's success over the last year or so with Doritos Locos Tacos and understand that boffo store traffic and renewed sales momentum may be just a hit product or two away.
And another thing: If there's a "day part" and an associated menu that the brand has under-exploited, that could comprise a significant new opportunity as well. Again, look at what Yum's Taco Bell brand has done in trying out breakfast.Continue reading...
Posted by Dale Buss on May 9, 2013 04:23 PM
How low can you go? That may be the biggest question facing McDonald's, Wendy's, Burger King and other fast-food operators these days, in the US as well as around the world.
That's because cash-strapped consumers worldwide, struggling amid low-growth and slowing economies, are making business difficult for fast-food chains even though each brand is now emphasizing "value menus" and increasing low-priced offerings like never before. The QSR rivals are doing a lot of other things as well, including introducing higher-priced new menu items. But the most important competition, and the crux of their strategic dilemma, is found at the low end.
"That consumer that is getting hit hardest by the economy is locking in on a message that has a price, and when they see and hear 99 cents, Wendy's gets put in their consideration set," Emil Brolick, CEO of Wendy's, told the Wall Street Journal.Continue reading...
Posted by Dale Buss on May 8, 2013 09:15 AM
SAP moves into cloud computing as brand projects $10B boost from banking software.
Coca-Cola plans to invest $2 billion in Florida orange groves.
Disney second quarter soars 32% on theme parks, ESPN ad sales as company withdraws trademark application for Dia de los Muertos.
Alibaba IPO anticipation grows on revenue surge.
American Airlines launches Klout-based promo.
AOL profits boosted by advertising.
AT&T presses case in lower bandwidth spectrum case.
Bitcoin startups begin to attract real cash.
Burger King makes bold move with delivery expansion.Continue reading...
brands under fire
Posted by Dale Buss on April 30, 2013 07:47 PM
To paraphrase the late US Sen. Everett Dirksen of Illinois: "A billion dollars here, a billion dollars there—pretty soon you're talking about real money."
That's why investors, analysts, journalists and CEOs all tend to listen to activist investor Bill Ackman: He can throw around $1 billion at a time, and it is very real money. Right now, for example, he's got a $1 billion short position on Herbalife, betting that the multi-level-marketing company's shares eventually will be worthless.
But for today, at least, there's reason to doubt the acumen of Ackman on Herbalife, a marketer of weight-loss shakes and skin lotions that he has condemned as a pyramid scheme. The company beat analysts' expectations about its quarterly earnings again this week and raised its full-year outlook, as well as celebrated the growing influence of Carl Icahn, an old-school corporate raider who's increased his stake in the company and publicly defended it against nouveau gadfly Ackman.Continue reading...
Posted by Dale Buss on April 29, 2013 09:14 AM
NBA star Jason Collins comes out as the first openly gay active male athlete in American sports.
Primark is first retailer involved in Bangladesh factory collapse to offer aid to victims.
Chrysler earnings plunge on model changes.
Samsung reveals 7-inch Galaxy Tab 3.
Burger King tweaks menu and message after first-quarter sales decline.
BYD of China plans to sell "made in USA" buses.
Bayer pays $1.1 billion for birth-control company.
Boeing returns Dreamliner to the air but must reassure passengers, as China is deemed likely to approve the plane in May.
Canon crowdsources short films.
Honda scores so far with mid-cycle remake of Civic.Continue reading...
Posted by Dale Buss on April 25, 2013 09:15 AM
JCPenney hires Y&R to help with marketing turnaround.
Fiat weighs listing on New York Stock Exchange and considers IPO after it completes merger with Chrysler.
Amazon develops device to stream video to homes.
Burger King expands delivery service.
Carfax hit with antitrust suit by dealerships.
Dr Pepper Snapple finds RC Cola Ten success a pleasant surprise.
Fisker Automotive takes bludgeoning on Capitol Hill.Continue reading...
Posted by Dale Buss on April 23, 2013 09:28 AM
Netflix reports strong subscriber growth.
Amazon may be planning to open a store in London, reports say.
Ford is reaching record profit on growing sales of Fusion, as company extends programmatic ad buying to online video.
Twitter reportedly reaches deal with Publicis' Starcom MediaVest Group for hundreds of millions over several years.
Airbus strategy for big A350 is being vindicated.
Apple grapples with hardware-software identity crisis.
Burger King tests delivery in Los Angeles.
Cadillac eyes smaller cities for Chinese luxury share.
Del Taco debuts revamped menu.
DuPont more than doubles profit.
Fisker loses $21 million to US seizure.
Google CEO Eric Schmidt belittles importance of UK taxes.Continue reading...
Posted by Dale Buss on April 15, 2013 09:03 AM
Charlie Ergen's Dish Network offers to buy Sprint for $25.5 billion in a bid to one up SoftBank.
ConAgra, Heinz and Nestle lead frozen food battle to reverse negative image.
Nike seeks to regain its edge with fewer ads following Tiger Woods stumble.
Dannon uses Greek-style to leapfrog Yoplait to top of U.S. yogurt business.
Apple clearly enters post-Jobs era.
Justin Bieber sparks controversy with Anne Frank comment.
Boeing sees new inspection order on its 737s.Continue reading...