Question

Amy's drive thru, a fast food facility, offers healthy and sustainably grown veggie and vegan fast food at higher prices than its competitors in the market and has a drive through and indoor seated casual dining operation. What strategy is Amy's drive thru using to gain competitive advantage?

Answer 1

The answer is: Product Differentiation

Step-by-step explanation:

This is a marketing strategy focused on differentiating your product from the competition. It highlights the good qualities of the products it sells: healthy, sustainably grown vegetables, vegan food. By highlighting its good qualities, Amy´s drive thru stands out from the rest of the competing restaurants.

This restaurant uses a vertical differentiation strategy because it highlights that it sells a better product (more healthy, etc.) and at the same time it costs more because it is a better product.