The paper “ McDonalds’ Market Segmentation, Positioning Strategy, External Factors Influencing the Target Audience" is a fascinating example of a case study on marketing. The article is more focused on achieving a complete market segmentation of McDonald's. The article focuses on a primary target audience. The main targets aimed by the market segmentation are children. The article also identifies key research methodologies that will be used in identifying the target audience for McDonald's. The article will also focus on the market strategies that will help in the market identifying a sizeable market positioning putting in mind the target audience appropriate for the company.
In the end, the article suggestions on how to improve on the company considering the market segmentation have been recommended. The key purpose of this study is to present a business plan that will see McDonald's accomplish complete market segmentation. This is aimed at helping it realize maximum sales in the marketing of its Happy-meal product amongst its customers who have various tastes and preferences. The main purpose of this business plan will be to answer a question concerning McDonald's and its main target market and its market segmentation strategy.
To help answer this question the article will look at the 4ps of marketing this being the price, promotion, product, and place. By covering this area, this study will identify the appropriate market segmentation for McDonalds' Happy-meal product. By performing complete market segmentation for McDonald's, the study will achieve the goal of identifying the appropriate Happy-meal segment. In order to have complete market segmentation, a complete research methodology will have to be done. The research methodology will contain three basic elements that will help in answering the question at hand.
The first methodology that will be used in researching and completing this business plan includes the internet, books on market segmentation, complete analytical review of McDonalds, accounts. Market segmentation allows McDonald's marketing policy to put the focus on the division of prospects likely to buy its output (Cross, 2009). Market SegmentationWhen market segmentation is efficiently done, it may help McDonald's gain enormous returns in their expenditure, in marketing. There is a difference in McDonalds’ consideration when giving a definition of market segments.
This depends on whether McDonald's is selling its products to businesses or individuals. McDonald's should establish a category of need that is satisfied with their products. Strategic classification of the category of need takes into account that McDonalds’ products are crucial to its objectives, mission, and operational supervision. For example, a service that evaluates opportunities of investment applies to this influence domain (McDonalds History). The decision to purchase in this particular category of products is made by McDonalds’ executive managers. Operations classification of the category of need takes into account the fact that McDonalds’ products affect operating procedures and strategies.
In this classification, the decision of purchase is made by McDonalds’ operations manager. Functional classification of the category of need considers the fact that McDonalds’ products deal with particular functions within the company, for example, control of inventory, manufacturing, maintenance, and accounting (Jay, 2004). The functional manager controls this domain. Social opinion classification takes into consideration the fact that McDonalds’ products offer satisfaction to the emotional wants of consumers. The business plan should contain a segment of needs that identifies the need and who is likely to be affected by that need.
McDonalds’ segmentation is to be determined by matching gains from McDonalds’ products and the prospect’ s need. Categories of need for the company’ s segmentation will include the following. We need to reduce the expenses of McDonald's, which includes right-sizing the company. The need to improve McDonald's cash flow including the target market in areas of expensive urban life that can afford McDonalds Happy-meal product. Need to improve McDonalds’ productivity, which targets highly populated areas. We need to improve McDonalds’ product quality, which considers complex technology in production.
Additionally, there is a need to improve McDonalds’ service delivery in the markets that are highly competitive with further improvements in the working conditions of employees. The focus should also dwell on improving McDonalds’ share of the market for its new product (McDonalds History).