Experimental Exercise

MKT 3328 Retailing

Experiential Exercise 1

The COVID-19 and Managing Disruption: Critical Marketing Strategy for a BFF

Blackboard.

• References: If you have used any sources for this assignment, you should cite them in your paper (Using "APA").

• Note: save your file as "your last name_Experiential Exercise" (e.g., Jackson_ Experiential Exercise) before the submission.

In this Experiential Exercise, “BFF” is not the acronym for “Best Friends Forever.” BFF or

Business Format Franchising is the most common type of franchising: it is the right to manage and

market an entire branded retail offering. Such contractual vertical marketing systems must have

strong brand/trademark, operations and perceived customer value. Please familiarize yourself with

franchise systems, and understand the role of the “franchisor” and “franchisee.” To learn more, I

recommend that you go to https://www.franchise.org the web site for the International Franchise

Association, the most prominent trade association for franchise systems. All franchise systems

are required (by U.S. law) to have a clear and fully articulated FDD (Franchise Disclosure

Document) that provides transparency to prospective franchisees (see Sample Franchise

Disclosure Document FDD.pdf). There is no doubt that you have consumed goods and/or services

from a retail franchisee.

Here are some of the hundreds of BFFs that predominate the global marketplace:

There is no more timely nor unprecedented disruption in marketing than the extant Covid-19

public health and economic crisis. Think about how Covid-19 has impacted your fast-food and

fast-casual dining purchases. You might enjoy this video: https://youtu.be/OjNDOqtPfrw

Generally, our discussion of disruptive forces addresses innovation and technological innovations

(i.e., AI, robotics), natural disasters (i.e., tornadoes, hurricanes), competitive forces (i.e., mergers

and acquisitions) and economic fluctuations (i.e., pricing, financial market shifts). SARS

(2002/2003) and H1N1 (2009/2010) were pandemics that disrupted markets and marketing;

however, it appears that the present Covid-19 pandemic will be far more devastating at both a

macro- and microeconomic level. In this Experiential Exercise, you will critically explore the

impact of the Covid-19 on a business format franchise in either the fast-food or casual dining

sectors. You likely know that many cities and state governments have forced closures of

restaurants, except for delivery and take-out services. So, please use the following Discussion

Platforms to articulate a well-integrated descriptive (situational analysis) and prescriptive

Deliverables:

• Due: February 8 (Monday), 11:59 pm • Typed; Times New Roman 12 font, double spaced, 1" margin

• Submission link is available under "2/4_Experiential Exercise" navigation tool on

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(recommendations) for a focal business format franchise in one of these sectors. It may be a large

franchise system like McDonald's or Subway, or a small system like Chicken Salad Chick or

Nestles Tollhouse by Chip.

1. Situational Analysis. Critically investigate the focal firm's current market position, market performance (i.e., average ticket, gross revenues, number of units, profitability,

geographic reach) and value proposition. You may want to use the IFA web site,

IbisWorld.com and the company web site. Please understand that the company’s web site

is a “marketing site” and is generally not the best source for objective information.

Considering that franchise systems generate profits from franchise unit performance and

royalties, how is your focal firm poised to address disruptions such as the one posed by

Covid-19? This should be an in-depth analysis from multiple sources. It is not adequate

to go to a company web site and report on marketing hype or puffery. You need to address

the reality of the business format franchise (BFF) relative to its profile of franchisees,

number of units and resilience. This is important: the stakeholders are NOT just

consumers; they include franchisees, suppliers and – very often – stockholders.

2. Competitive Analysis. Now, please critically evaluate the direct competitors that impact the focal firm's (BFF's) market performance. Consider how these competitors are

addressing the Covid-19 crisis, and use this market intelligence to evaluate directions for

your BFF.

3. Prescriptive (Managerial) Recommendations. Based on (1) and (2), please articulate a set of specific, well-developed recommendations that will enable the focal firm (BFF) to

survive and thrive. Please indicate the timing window (i.e., three-year, five-year plan?) and

provide a financial forecast of how your recommendations can help offset the "unknown"

duration of this disruptive force. Please consider how your recommendations will need to

address pricing and cost of goods sold.