JD Wetherspoon Company’s Product Strategy Report

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Introduction JD Wetherspoon is a pub that was founded by a 24-year-old law student in 1979. Tim Martin, the founder, developed a desire to open his own pub due to a poor display of standards by the local pubs. The pub’s strategy at that time was to offer an array of real ales. Following its massive growth, this company went public in 1994. Tim Martin being the majority shareholder. Currently, the company owns over 640 pubs throughout the United Kingdom (Hassanien & Dale 2010). The major driving point of JD Wetherspoon is the ability to retain total control of all the affiliate pubs. Due to this outstanding feature, the company has managed to maintain a clear standard throughout all the pubs.

JD Wetherspoon’s Products

JD Wetherspoon has an array of products and services available for the customers. Alcohol is the main drink that is served in these pubs. The company has introduced incentives for the customers with the aim of attracting them to buy their beer. For instance, the company sells its soft drinks at a much lower price in comparison to other companies (Kew & Stredwick 2005). The company has made capital gains by enjoying the economies of scale. In essence, the company is able to negotiate huge discounts gained from bulk purchasing. Huge discounts enable it to reduce the final price making it easy for customers to consider this pub.

High sales turnover drives up the profit margins leading to huge profits. Friendly prices accompanied by a safe and welcoming environment are major factors that have led to growth (Hassanien & Dale 2010). Rapid growth has enabled the company to venture into lodges and nightclubs. JD Wetherspoon’s emphasis on training and great facilities has played a major role in sustaining growth. In addition to soft drinks, the company has created a niche in the food industry. Improvements on the menu have played a significant role in upward growth. In line with quality service, customers have found it easy to relax in these pubs because of the friendly and ambient atmosphere. JD Wetherspoon pubs do not play loud music or entertain jukeboxes. As a result, the environment within the pub is quite enjoyable. JD Wetherspoon pubs are normally larger than the average pub. Furthermore, the company outlets ensure that customers can access food all day long within a non-smoking area. Television viewing is allowed during major sporting events. During the other days, the television or music is not allowed within the pub. The company records high bar sales followed by the sales generated from food. The company also runs Lloyd No. 1, which is a venture that targets the cocktail drinking market.

The company’s strategic objective has made major contributions to the entire growth. In essence, the company has created a platform that appeals to the entire family through the nature of operations (Hassanien & Dale 2010). In addition, the firm’s focus on what customers want has played a critical role in establishing its presence in the pub industry.

Conclusion

Strategy is a significant factor when managing a competitive company. Recent reports indicate a marked growth in terms of profits generated by the company. Based on the analysis generated, JD Wetherspoon is a company that is making gains by focusing on diversifying its products. In addition, the company’s pricing system has increased the sales turnover leading to sustained profits.

Reference List

Hassanien, A & Dale, C 2010, Hospitality Business Development, Routledge, New York. Kew, J & Stredwick, J 2005, Business Environment: Managing in a Strategic Context, CIPD Publishing, London.

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