McDonald’s Case Study Analysis
Motivating Forces
Product Advancement
McDonalds has brought many innovations in its food items, andso has introduced many products that have appealed to most of the clients. The most popular is the product that McDonalds has launched for the kidscalled’happy meal’. It has integrated many digital games for the kids like 'Rocking Horse'. McDonalds aims to bring innovation in its products according to the taste of the region it operates in.
Technology enhancement
Technological enhancement is very important for McDonalds’ business, as it is of significantimportance because the business needs to be connected with the kitchen and different restaurants. McDonalds needs to stay connected on social media, to reach toits clients, because mainly most of its clients are on social media, so connecting through technology can improve its sales; making it more efficient as well as effective.
Creating new cultures
The company can change the culture of the organization. The customer can be encouraged to take pictures of their meals, which can an interest among the customers. This will help the customer to stay engaged with the restaurant and contribute in the competitive growth of the market.(hearth codes, 2018).
Marketing Mix strategies
Price
McDonalds incorporates distinctive value price procedures that offer a bundle of products with dinners as well as various things for customers. To ensure that the customers buy more products; McDonald's concentrates on the mental assessing methodologies in its marketing mix, which appear to be sensible to its clients. The pricing of the products caters to the middle class, mostly.McDonalds offers many bundle discounts and deals in a few of its products on its little menu in order to attract more clients.(hearth codes, 2018).
Place
McDonalds’ outlets exist in many countries throughout the world. It has 36,000 restaurants all over the world. The formats of different McDonalds’ restaurants' are: McDrive and McCafé. McDonalds also has its drive-through services and facilities an internal and external seating arrangement for dine-in customers.
People
McDonalds has adopted different techniques for addressing its clients and treatits employees and staff very politely. The employee has a proper dress code and is trained enough to handle the customers from the moment they enter the outlet. The employees are customer friendly and handle clients with affection. The company aims for customer satisfaction and gives utmost priority to service delivery. McDonalds ratesits staff depending upon their performances who are also included in the decision making of the organization. The employees are trained to take special care of their hygiene.(hearth codes, 2018).
Promotion
McDonalds spent tons of money on its advertising campaign, by using newspapers, magazines, billboards, and through sponsoring different big events, like: FIFA, World Cups. McDonalds uses an aggressive promotional strategies to meet its marketing mix demand. One of the prime ways of advertisement is to use more television media. McDonalds never targets its competitors negatively. Its promotional strategy is according to the cultures of the specific region, for example in India; the brand does not use beef because of religious rituals, and also takes extra care about its offers in vegetarian and non-vegetarian regions.(hearth codes, 2018).
Marketing Segmentation and Positioning Strategies
The perception of a customer is very important for the success of the product. Marketing segmentation is dividing the market into different segments, depending upon the geography, demography, behavioral, and psychographic segmentation.
Geographical Segmentation
The market is divided into different segments, according to geographic standards. McDonalds breaks its business in a different kind of geographical division, for example: America, Asia, Middle East, and Africa. Recognizing these geographical segments; McDonalds offers different deals and food offerings to cater to the need of the people, depending upon their cultures and taste.
Demographical Segmentation
Segmentation, as indicated by demography, is based onconsumer-segment factors, for example: age, pay family size, financial status,etc. McDonalds, for the most part, sections the market beneath socioeconomics age 8-45: young, newly married couples, single, and students.
Behavioral Segmentations
This segmentation is very important because here it depends upon the behavior and likeness as well as the willingness of the consumers if they want to pay for the brand, and also to spend quality time with their family members and friends within and outside the house, in a very relaxed and comfortable environment.
Alternate group
In light of the issue being observed by McDonald's; different options are enrolled underneath, alongside its reason behind choosing the ideal one:
Pros
- It would guarantee the exact and cautious usage of assets, which incorporates huge waste decrease and practical dynamic.
- It would permit the organization to make upgraded plans, adjusting its conveyance execution and creative productivity.
- The operational productivity would guarantee the speed, moderateness, and nature of items,as it contains different perspectives, for example: creation, stock administration, and circulation.
- As operational administration is delivery centered; it would permit the organization to guarantee its creation to be completed productively.
Cons
- The outcomes are ensured just if the arrangement is completed in legitimate and proper way.
- The arrangement of the mechanized framework for operational productivity requires a capital venture.
Recommendations
In the wake of thinking about the advantages and disadvantages of every other option, McDonalds is encouraged to go with elective 1, because of the way that presents the organizations’ needs to make the conveyance quicker and lure the clients. It would permit the organization to adjust the speed, quality, and moderateness, and simultaneously react to the competitive dangers by receiving a wide differentiation system through separating the items’ contributions from the market contenders, by offering top-notch items that intrigue to the wide range of buyers.
Adding to this, the organization is prescribed to consolidate the current input of the consumers and keep up the offer of "close relationship" with the buyers. Therefore, McDonalds would have an option to strengthen the incentive and the consistency of the contributions, alongside synchronization of buyers' "in a hurry" practices. To increase an extra piece of the overall industry; the organization should consolidate reward projects to urge the individuals to purchase McDonalds’ products and use the focus for their next buy, improving the rehashed buy and restricting the purchaser, which would result in high retaining of its clients.
Conclusion
McDonalds is the world's biggest café network with 36000 stores in more than 100 nations, acclaiming its situation as a world leader and inexpensive food monster. Such an expansion in the number of stores portrayed not just a forceful development of McDonalds in the market, but so did portray a powerful brand selection of the customers. Working as the world's driving speedy help café brand, gave McDonalds a solid serious edge in the profoundly serious market field. The organization aims to be the most loved spot of clients. Alongside its client esteem suggestion; this tends to infers esteem creation for the general public as far as accommodation and reasonability. Besides, the organization promotes different corporate qualities, which include: nearby joining, progressiveness, comprehensiveness, and authority.
McDonalds is making a good effort to expand its business globally. The current strategies being used by McDonalds are very effective, but a few of its strategies need upgrading and modification. Like it needs to enhance the taste of its products according to the need of the consumers. McDonalds has gained market share substantially by developing a strong value of its brand. An increased completion from industry giants such as: Starbucks, KFC, Wendy’s etc are great threats for the brand value plan, because these competitors are offering less price for their brands as compared to McDonalds. Under these scenarios, the brand needs to develop such a plan that provides sustainability for the business, for the long term along with maintaining the image of the brand with an inclusion of retained methodology......................................
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