The paper "Marketing Planning and Promotion - McDonald's" is a great example of a marketing case study. Through the use of the Marketing Simulation Game, it was possible to analyze McDonald's. This practical approach to learn theory helped in implementing an experimental exploration of McDonald's based on a real-life situation. McDonald's is one of the best known fast food stores globally. Being in an industry that is highly competitive and growing, McDonald's has been able to come up with marketing strategies to outdo the competitors. With the industry facing a lot of negative reputation due to obesity concerns, there have been calls for amending current marketing and promotional policies for the organization with respect to the marketing of fast food.
Simulation has helped a lot in illuminating reality and also hypothesizes on what happens on the real-life. The use of marketing simulation game aspects in this marketing plan has led to a practical approach to learning theory. The marketing game is based on a framework of the relevant marketing theories which are required to make a marketing strategy (Vos and Brennan, 2010).
This has helped to gain a better understanding of McDonald's marketing plan for their new healthy menu and the communication policies to use. Industry/market analysis The fast-food industry has been highly impacted by changes in customer tastes and preferences. According to Franchisehelp. com (2017), the industry is not without challenges but they can be overcome and make profits. Globally, the industry generates an estimated revenue of $570 billion. In the United States, the industry generates an average of $200 billion. The industry has an estimated growth of 2.5% which is expected to continue for the next few years.
The main focus for the consumers in the fast-food industry is price, taste and quality. This makes it vital to focus on consistency experience, affordability and speed. The menu in most cases is similar from one fast food outlet to another (Franchisehelp. com, 2017). At the moment, the industry has faced a bad reputation for unhealthy food. According to Young and Nestle (2007), consumer tastes have been drifting towards healthy food options. This has made it vital for the industry to fight back and come up with healthy food offers.
This has been in most cases successful. Another issue that has faced the industry is low wages and poor working conditions. At the moment, the industry has been accused of paying the working wages which they cannot live on. This has led to several protests by workers demanding to have better working conditions and living wages (Franchisehelp. com, 2017). The main problem is the fact that the fast-food industry has high human resource costs especially due to a number of workers in the kitchen. At the moment, the industry has been introducing healthier food options.
Deng (2009) asserts that there is also a rise in the use of fresh ingredients and fewer additives to ensure healthy dishes. Despite this, most of the current communication policies and products being offered in the industry are not in line with the rising healthy eating trend. Competitor analysis To gain a clear picture of our market position, we carried out a competitive analysis. This was simulated based on the competitors' market share and marketing mix. This analysis helped a lot to analyze the strengths and weaknesses of the competitors in the target market and how they can be exploited through the product development cycle.
At the moment, McDonald's has been facing stiff competition due to the fact that the fast-food industry is already saturated. There is a high competitive rivalry which is based on the high number of firms, high aggressiveness among the competitors and low switching costs. There are a lot of fast food industries ranging from small, medium to large size. It is also possible for the McDonalds customers to switch to other restaurants such as Pizza Hut or Wendy’ s (Deng, 2009).
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