Sonic Resturant

Effective Retail Management Analysis: Case of Sonic Restaurant
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Effective Retail Management Analysis at Sonic Restaurant
Executive Summary
The Sonic Restaurant has a potentially shown better achievement in the management and its transition for over 50 years. The restaurant historical background has indicated positive outcome from their products sales. Moreover, the restaurant ranked as the 10th in excellent service has built greater confidence in delivering its services. However, the industry strives further to get into the top category in services provision. The retail management has focus in marketing and pricing techniques to reach its esteem customers’ needs and expectations. The continuous expansion of the enterprise across the country has been an important factor in ensuring the retail sales meet its consumers.
The technological innovation in the contemporary world has been a flexible way to meet the customers’ expectation. Consequently, the client relationship has been an essential instrument in capturing the customers’ contacts and creating awareness of new products of services. The annual evaluation of the restaurant has been fundamental in finding rational decisions that guide the future operations and going concern and facilitate the integrated transition in case of management changes. The continuous effort in promotional activities and advertisement has created an environment of customer satisfaction.
The use of SWOT analysis and its evaluations has been a greater factor in expanding positive values in the internal and external factors.

However, these factors have some challenges in the expansion of the enterprise. The management has defined these elements and used them in creating efficiency in services and reducing the adverse effects. Although the business has focused on its expansion, the management workload needs to be devolved into the branches to avoid collision and conflict in decisions on service delivery.
Introduction
History & Background of the Study
Sonic Restaurant based in Oklahoma City in U.S is an American drive-in fast-food chain restaurant established in the 1950s. The restaurant has a good revenue reputation since its original foundation and incorporated Delaware in 1990. In 2011, the company restaurant was ranked 10th under the QSR magazine to offer quick services and fast-casual products branding restaurant in the entire state (QSR magazine,”2016). The Sonic restaurant is a subsidiary company owned by the sonic Inc. The restaurant has average gross sales of $ 1246000 according to the financial year 2015 significantly indicating a mutual increase in sales of 2012 estimated at $ 1072000. The Sonic restaurant consists of French fries, hamburger, chili dogs, corn dogs, milkshakes, ice creams and banana splits among other fast food products (Sonic Franchise,”2016). The food industry has a revolutionary and remarkable strategies that have kept the company pose good reputation from the esteem stakeholders. The leadership strategy of this franchise includes the support team, diverse of food products and the creative branding alongside merchandising strategy by two guys nationwide. The two guys’ plans involve the national campaigns to win awareness of the restaurant and to create new customers and maintain real consumers.
According to CEO Cliff Hudson, Product branding in the 21st century has been difficult to deliver according to the company’s expectation (QSR magazine,”2016). Sonic Restaurant has productive day part strategies as the guiding mission in the industry to reach the esteem customers throughout the operations. The complexity of the business has been faced with several factors in ensuring consistent delivery and customer satisfaction. It includes the dynamic innovation, business modeling, and franchise support network among other factors (Rayner, 2013; Sonic Franchise,”2016). However, the management has ensured that the client satisfaction always comes first to enhance constant customer flow. Thus, customers have a consistent form of acquiring food products ordering through intercom speaker system and food delivered by a carhop in every restaurant station. It has made the retail of foodstuffs efficient and effective whereby the ordered food is served at a quicker rate hence meeting the customers’ timely service expectation.
Innovative Strategies and Significant Business Techniques
The restaurant serves approximately 3 million users in 3500 locations nationwide facilitated through the excellent customer service (QSR magazine,”2016). Furthermore, the core relationship with the consumers acts as the initial goal of its rich heritage which encompasses the brand slogan of the company. The customer relation and satisfaction have been a set organization culture that the employee always adopts in ensuring the success of the enterprise. The restaurant management thereby has focused on the expansion to capitalize the rising demand and make intense sales across the nation. The powerful strategies concentrates on these success involves the active day part sales as a way to increase the return on investment. The Sonic Restaurant offers excellent customer preferences of food products in broad quantity packages (Sonic Franchise,”2016. The Quick Service concept relies on the day parts and the potential products that yield returns on investment. The order of meals also guides the esteemed customer on time for particular food stuff. The morning meals to lunch food staff and the afternoon food products under the daily demand are analyzed and strongly served to meet the future targets of the enterprise. Moreover, the restaurant strives at making work efficient through investing on the labor competence to keep the satisfaction at its demand. Their 24hour service meets the customer satisfaction at their time of convenience (QSR magazine,”2016).
Another important strategy adopted by the restaurant is the day to day innovations and the continual improvement of client services. The change ramps up a dynamic experience to the customers. It has been a factor of consideration in the technological business success of today. The Sonic restaurant has further considered building interactive environment through technology to make automated orders for food products. The customer data is, therefore, important in tailoring the customer’s history in their data networks (QSR magazine,”2016). Consequently, this data is essential in managing the consumers at a personal level through the use of technology and the flexible system of mobile phone communication.
Furthermore, the restaurant has multiple services from the food products to accommodation services and professional learning certification (Sonic Franchise,”2016). The restaurant also has the competent personnel and embarks on continuous training of employees in the new development process. The eLearning is a guide to the staffs and the esteem customers’ direction in different sections in the specific restaurant of customer interest. In this aspect, the management can identify the network of communication with the customers and maximize on building a positive relationship. Besides, the management source skill and interested personnel to work in the restaurant. The eLearning is certification provide competent knowledge to the new employees and provide decisions in hospitality management of the restaurant (QSR magazine,”2016). This business creativity and ventures to new environment support the recognition and building required skills within the entrepreneurial development (Jenner & Kilford, 2011).
The Sonic restaurant has an iconic advertisement done by two guys whose ideas are powerful and focus on the buyers. The two guys create instant branding and recognition mechanism resonantly on the customer based and controls the customization of products. The great advertisement methodology has been an awareness tool and building significant consumer concern at the clients’ need. The business further focuses on the remodeling of services to accommodate the growing number of customers. This includes the parking slot expansions and the food delivery into the customers’ cars on order. The Sonic Restaurant corporate mission diversely covers a broad range of business activities with the unclear mission statement. Its vision is the guiding module in ensuring the restaurant is the most-loved restaurant brand. Moreover, competent core principles include the values of respect for stakeholders, substantial relation to the interested parties and the entrepreneurial spirit to boost the organization (QSR magazine,”2016).
Nevertheless, the restaurant has adopted two pricing strategies that facilitated the growth and stable market products. The economy pricing and price skimming are the conventional marketing methodologies which have made the company prosper in the business sales. The economy pricing entails the discount offer to attract the price-consciousness of the customers (Rayner, 2013). Cliff as the CEO of the restaurant on several occasions minimized the marketing instruments of the products to reduce the cost of production (QSR magazine,”2016). This keeps the consumers purchasing without frills due to the discount offers of food commodities during certain days of the week. This strategy has reduced the rate of competitors taking over the customers. Another pricing technique is the skimming technique. This involves the high pricing of new products which later lower gradually as soon as the competitors rise in their services (Rayner, 2013). The establishment of new stalls in different parts of the country has great pricing schemes which then lower as the competitor’s venture and gain in their services. This technique allows the business maximize the revenue at the initial phase of the set up later dropping to attract more consumers in the industry. Moreover, it is significant in recovering the initial capital investment on the construction of the restaurant and the installation of premises facilities that are used to produce the food products.
The retail sales positions along highways capture travelers and tourist across the country. The retail strategies attract the customers and distinguish quality service distinct from the competitors in the industry. The company further focuses on branding and makes emphasis on the new products and the quality improvements of the existing products (Sonic Franchise,”2016. It is a psychological analysis of the consumer behavior and the competitors’ action from the environment (Rayner, 2013). The customer focus is the main idea in this concept as a targeted strategy and wins large population markets. This also improves the confidence of the enterprise in introducing new products. Sonic Restaurant continuous advertisement is a good tactic that focuses on the products and package and prices analysis of food staffs. The positioning process entails the particular and distinct place of mind and potential consumers in the market niche (Rayner, 2013). The use of technology to create awareness has also been a flexible form of capturing customers. This concept shapes the user preferences and guides the customers to particular brands. Nonetheless, this strategy differentiates on positioning identifies a unique feature of the company that is distinct in portraying the success in profits collection. This continuous effort will yield greater sales and profit maximization in 5 years’ time. The prime customers being the highway travelers require substantial value on creating awareness to them and ensure they get the best service with full efficiency in their deliveries. Focusing on timely delivery will yield greater customer satisfaction hence retaining of potential customers over an extended period.
SWOT Analysis Competitive Strategies
The annual report, therefore, serves as a guideline in setting plans of the organization. According to Jenner & Kilford, management methodology; the competitive advantage involves the identification of strengths and the opportunities in the environment (2011). However, these analyses require a large aspect consideration of the adverse outcomes such as the threats and the weakness in the ventures. It gives a descriptive analysis of the SWOT analysis as a guiding factor in any business and entrepreneurial step. The SWOT analysis thus involves the internal and external factor whereby the internal factor justify the strengths and weaknesses while the external factor justifies the opportunities available in the markets and the possible threats in the business venture. The restaurant further identifies these in details follows;
Internal
Strengths
Competent & professional Personnel
Quality food products & services delivery
Excellent customer relation
Quick response to rising demands
Direct retail sales to customers
Weaknesses
Over staffing with minimal workforce
Conflicting management decisions.
External
Opportunities
Promotional strategies & discount offers
Market expansion beyond the country
Customer increased awareness
Network expansion in market segment
Threats
Rising of competitors brands and offers
Competitive marketing strategies by competitors
The competitive analysis identifies the unique features about the strengths and possible weakness in the firm. The marketing plan involves the establishment of unique products and services. Therefore, the Competent and other professional skills required should be of high standards. The Introduction of professional certification course will enhance easy access to qualified individuals as a way of sourcing within the company. Moreover, the regular quality food and new service delivery yield constant customer satisfaction. Further, this communicates the customer satisfaction hence good relationship in customer service relation and communication. Essentially, the restaurant has growing standards through the technological advancement in making delivering orders raised by the customers. The automated machines psychologically create comfort to the customers which the employee responds effectively (Sonic Franchise,”2016).The external strategies further provide vivid techniques of greater opportunities however this may not be an easy task. These opportunities significantly display the future of the firm whereby the advance in technology will yield higher output and great sales margin (QSR magazine,”2016). The promotional strategies and discount offer will continuously attract consumers and maintain the esteem customers in the industry.
Recommendation
The firm has managed its services in a quick and satisfying manner for a long time and is ready to accommodate more customers. However, business success does not come easy. It is important always to make accurate decisions that are rationally accepted and able to merge in several factors in the firm. Consequently, the company needs to strategize on the short term goals and the long term goal to allow a smooth transition of the enterprise and services in the future. First, the short-term goals should involve the operation activities that are vital to making the business better. The long-term strategies include the expansion of enterprise boundaries to the international markets and capture new markets and new customers. These need affordable markets in potential countries to avoid over-investment with less return in the products.
Moreover, the business expansion requires managerial integration to prevent conflict in services and decisions (Rayner, 2013). The Chief Executive Officer needs to have a broad range of ideas that will focus on business development and service offer. The company should also focus on real estate establishment in all the restaurants across the state. In this aspect, the management will devolve decisions into branches to avoid massive workload under one management. The subsidiary management should have targets in sales in consideration of the potential markets across the country. The Chief Executive Officer should, therefore, analyze market segments across the country and set goals accordingly.
Conclusion
In conclusion, the Sonic Restaurant has revolutionary strategies to stand with unique features on service provision. The retailer service has been a potential way for the enterprise to understand the general public needs. The industry has challenges in decision making and transition to activities and makeshift retail integration over the years. The future of the restaurant is well established with effective strategies which yield a better outcome in the current operations. The retail operations, therefore, have potential actions that display unique services and productivity which communicates competitive growth of the industry in future. The legal action of marketing strategies is due to grow completion in the environment by another restaurant. The enterprise is rank 10th in quick service this indicates that other competitors have their strategy in making service faster. The Sonic restaurant has used the competitors’ techniques and creates better and different marketing techniques to boost its services and maintain the markets. This effective management decisions ensures better market segment in the future and enhance positive output (Kishore Kumar & Anand, 2013). Moreover, the customers gain confidence in services at the restaurant gradually due to the advancement in productivity of the enterprise.

References
Customization Propels the SONIC Experience. (2016). Sonic Franchise. Retrieved 20 November 2016, from http://sonicfranchises.com/blog/customization-propels-sonic-experience-2/
Jenner, S. & Kilford, C. (2011). Management of portfolios (1st ed.). London: TSO (The Stationery Office).
Kishore Kumar, P. & Anand, B. (2013). Green Marketing: Theory, Practice, and Strategies. Indian Journal Of Marketing, 43(1), 54. http://dx.doi.org/10.17010/ijom/2013/v43/i1/34043
Rayner, C. (2013). How to Sell to Retail (1st ed.). London: Kogan Page.
The QSR 50. (2016). QSR magazine. Retrieved 20 November 2016, from https://www.qsrmagazine.com/reports/qsr50-2016-top-50-chart