McDonalds Marketing Analysis - Case Study Example

McDonald’s Marketing Analysis Student’s Name Institution MacDonald’s Brand Analysis McDonald’s is considered to be one of the most prominent and popular brands across the global scene. The restaurant maintains its brand image by way of listening to its customers. Subsequently, it identifies numerous phases in the marketing process. It is important to note that the aspect of branding is used effectively to develop and maintain the personality of a given organisation, product or services offered. Brand image showcases the manner for which the consumers perceive the organisation as a whole. At MacDonald’s, the recognisable face is depicted by a much familiar logo- the Golden Arches. It is ascertained that the fundamental aspects that haves catapulted branding at the firm are inclined towards segmentation and experimentation. This has led to easier penetration of the brand to even the most reserved markets like in Japan (Andreani, Taniaji & Natalia, 2012). Segmentation is a value that the firm uses to promote its products across the different niches. For instance, advertising campaigns in the US and Japan might be segmented in respect to the needs of the audiences. On the other hand, the restaurant has continued to utilise the aspect of experimentation. This aspect promotes and maintains the already established McDonald brand image given that it executed by way of adding or scrapping off certain foods from its menus in regards to the latest consumer trends and local tastes and preferences (Andreani, Taniaji & Natalia, 2012). For instance, in Japan, the restaurant has taken to ensure that in addition to the traditional menu there are also seasonal and limited-promoted items as a way of adapting to the ever-changing consumer tastes and preferences (Andreani, Taniaji & Natalia, 2012). Product Analysis McDonald’s product development is designed in such a way that it meets the immediate needs of the customers beforehand. The chain has been involved in extensive product development in different markets to suit the local needs of the customer. For instance, in Japan and France, a local delicacy has always been included to feature in with the traditional menu of the company (Andreani, Taniaji & Natalia, 2012). This is in a bid to attract and retain a significant number of customers as well as ensure that they remain relevant in different market niches. It is noted that the chain is basically focused on improving and introducing new products into the different markets to not only conform to the local tastes and preferences but also ensure that their food cultures are appreciated and sustained amid westernization (Andreani, Taniaji & Natalia, 2012). There are numerous strategies deployed by the chain in order to facilitate effective management of its products across all markets. For instance, the chain adopts a permanent product strategy where food items are included within its menu and they are never altered at one particular moment. Best examples include; hamburgers and cheeseburgers. After their respective development, these food items are allowed to remain on course without being subjected to significant changes. This maintenance strategy is aimed at ensuring that there is always a familiar food on the menu for all consumers. Consequently, the chain adopts a temporary product strategy that is focused on allowing consumers new experiences and also a chance to experiment with newer items that might become permanent. A perfect example is the Big Ocean; a product that was introduced and served for few months in 2007 (Keller, 2003). Currently, the chain’s product life cycle is at the mature stage. The stage is characterised by a significant number of competitors joining the market for purposes of offering a similar product or service (Keller, 2003). At McDonald’s the maturity stage has forced it to venture into new markets outside of the United States of America like in China and Japan whereby traditional products are complemented with local cuisines and other delicacies. The chart below represents the sales by product categories in the financial year ending 2013 where the revenues were constituted of the following; i) Sales by company-operated restaurants; $18,874.2M ii) Sales from franchised restaurants: $9,231.5M Customer Analysis McDonald’s customers are segmented on the basis of AIOD of four categories that are focused on product attributed that fulfill their immediate needs like fast food, ambiences, status symbol and hygiene. The customers categorised by “fast food” attribute enjoy the quick service restaurant of the chain. Majority of them expect their respective orders to be delivered at a faster rate and they are mainly students. Those categorised according to the ambience attribute enjoy a significant level of sophistication provided at the numerous outlets across the globe. They also enjoy recreation and socialisation aspect of the restaurant (Keller, 2003). They are mainly working class customers. Customers categorised according to the status symbol enjoy the top notch and classy services offered at the restaurant while those attributed to the element of hygiene are concerned about the level of cleanliness of the environment upon where they consume their food (Keller, 2003). The restaurant’s customer value proposition is focused on offering quality food at the right prices (McDonald, 2014). The customer life-cycle at the restaurant is maintained by introduction of newer food items within given periods. It is also achieved by way of ensuring that the immediate local needs and preferences of customers are met effectively. Some of the most popular channels deployed by McDonald to reach its customers are Television adverts and social media platform where new products are advertised. Competition McDonald is global restaurant that has many competitors each putting efforts to grab a share of the food market. However, the giant restaurant has continued to outshine most of its major and minor competitors by way of developing and maintaining a strategic competitive advantage. It has invested in an effective supply chain that allows it to offer meals at very affordable prices. Significantly, the restaurant has not shy-off from entering new markets that exhibit top notch distribution channels. The restaurant is determined to respond to the present higher level of competition from such joints as Burger King and Shake Shack by catapulting its value through the aspect of innovation, improving the overall in-house experience as well as making sure that it leads on all social media platforms (Davies, Chun, daSilva & Roper, 2003). i) McDonald’s and Burger King Both of these global restaurants compete against each other in regards to process, convenience, food qualities as well as customer services. As opposed to McDonald’s, most of Burger King’s restaurants are located in foreign markets and are mostly privately owned franchises. The restaurant has focused on redesigning its restaurants as well as altering its packaging processes. McDonald’s has however countered this level of competition by way of offering healthier options and also, by way of emphasizing on the quality of their ingredients through the aspect of advertising campaigns. ii) McDonald’s and Shake Shack Shake Shack is local food concept that was developed to offer top notch fried hence a major rival for McDonald’s. It is focused on delivering quality and cheap burgers. It also offers fine dining values like the aspect of caring services as well as premium ingredients. Unlike Shake Shack that opts to expand into communities that embrace it, McDonald’s is able to counter this competitor by way of expanding into most of the communities hence attracting a larger customer base. Growth Strategy McDonald’s is focused on global expansion as a model of its growth strategy. It has recently opened stores in China, Pakistan and France to expand on its franchising revenues. This is aimed at cutting down on local competition. Traditional food menus are fairly complemented with seasonal menus to allow customers a fair deal of their money (Davies, Chun, daSilva & Roper, 2003). References Andreani F, Taniaji TL & Natalia, R. (2012). The Impact of brand image customer loyalty with customer satisfaction as a mediator in McDonald’s. Jurnal Manajemen Dan Kewirausahaan, 14(1), 63−70. Davies, G., Chun, R., daSilva, R., & Roper, S. (2003). Corporate Reputation and Competitiveness. London: Routledge Keller, K. L. (2003). Strategic Brand Management: Building Measuring, and Imagine Brand Equity. New Jersey: Upper Saddle River. MacDonald. (2014). McDonald’s Corporation: 2013 form 10-K. Retrieved on December 27, 2014 from http://www.aboutmcdonalds.com/content/dam/AboutMcDonalds/Investors/McDs2013AnnualReport.pdf Read More