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What Is McDonalds' Marketing Strategy?

Marketing at McDonalds

❶According to him social research is a means by which one can explain the social life existing in the world, critically evaluate it and empower the people to overthrow it. This will include their most recent financial statement and the previous year's financial statement.

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After the literature review I will give the methodology for the research, where the research methodology for the purpose of the research will be discussed based on the research objectives and the type of the research. In the next section I will do the main research, where the primary data will be collected relevant to the research that is based on the research methodology.

After doing the primary research the findings will be analyzed and possible results will be arrived at before conclusion. MCD is the world's largest fast food restaurant chain. McDonald's operates its own restaurants and franchises its brand to local businesspeople about seventy percent of the world's McDonald's are franchised. The company experienced a theatrical turnaround in , driven by a two-pronged plan.

In countries such as the US and the UK. Globally, McDonald's expanded aggressively, opting to franchise rather than operate its new locations which provide new income with little overhead. Both strategies have paid dividends- despite its dimension, sales have full-grown by a 3rd since Domestically, McDonald's continues to do strongly in spite of a pullback in customer spending and is even benefiting as customers trade-down from more expensive eating options.

During this same time, global operations were driving profit growth. A rising global middle class, particularly in emerging markets like China, India and Latin America, is a massive opportunity for McDonald's. McDonald's violent efforts to get bigger its global presence- most notably in Beijing Summer Olympics- have produced strong similar sales and profit growth. McDonald's has pursued 2 strategies since To be in the run with the fast changing customer preferences, demographics and spending patterns, McDonald's has introduced novel items in their menu including angus beef burger and premium chicken sandwiches and does campaigns to create more healthy foods including salads on the side.

This strategy basically reflects the beliefs that innovation as opposed to reliability to traditional products is the key determinant towards success in the fast food industry. They have also focused more on increasing their sales at their current restaurants instead of opening new ones. To do so, McDonald's has redesigned many of their restaurants, kept their stores open till late and increased menu options. In Asia, the general management has indicated that there is important potential in the China market.

Although McDonald's is the obvious leader of the fast food industry in terms of revenues generated and restaurants recognized, it faces rivalry from other fast food chains, which are introducing new products themselves. Although more of their restaurants are franchised than McDonald's restaurants, revenues of Burger King Franchise fall behind that of McDonalds, mainly due to the their size advantage.

They have a lower operating margin than that of McDonald's, hence it is more likely that they suffer negative impacted during a recession. Brands are dominating the Chinese market, posing a threat to McDonald's in their attempts to enter the market.

Where McDonald's Corporation focuses on its core brand, Yum! In addition to the above competitors, McDonald's also competes with non-hamburger-based fast food restaurants such as Panera Bread Company PNRA , Panda Express and Qdoba , local and national dine-in restaurants such as Red Robin's and Shari's , pizza parlors, coffee shops Starbucks , street vendors, convenience stores and supermarkets.

McDonald's also noted that McCafe, which they labeled as a "long-term home run", had met sales expectations and has benefited from the high level of advertising that McDonald's has committed to it. The effect credit crunch has driven a record numbers of consumers from across different social spectrum to buy food under the golden arches of McDonald's.

The fast-food giant is serving close to million customers every month at its 1, restaurants in Britain, revealed in the recent times.

That is about 12 million more than its own previous record last December, which is typically the busiest month. The UK chief executive Mr. Steve Easterbrook, in the recent times have said that it is the 10th consecutive quarter of growth for them in the UK,Which s a real momentum in the business. McDonald's UK delivered like-for-like sales growth, taken from restaurants open for 12 months or more, of more than 8 per cent for the three months to 30 September.

Mr Easterbrook declined to provide a specific sales figure for McDonald's UK, but said it was above the 8. He said the sales figures were a further testament to the changes McDonald's had made over the past few years, with improvements to its menu, extended opening hours and new restaurant formats. It also illustrated that companies perceived to offer value for money were attracting more middle-class customers, he added. Discount retailers, such as Aldi and Poundland, are also profiting as hard-pressed customers seek out bargains.

McDonald's is also reaping the rewards of extending the opening times of its restaurants. Some open at 5am and British branches trade for more than 24 hours at weekends.

Mr Easterbrook said early opening was having a positive effect because if had increased the numbers of people coming into its stores throughout the morning. Sales of its coffee were up by more than 20 per cent, he added. McDonald's is one of the best known brands worldwide. Through marketing, McDonald's establishes a prominent position in the minds of customers.

This is known as branding. Branding develops a personality for an organisation, product or service. The brand image represents how consumers view the organisation. Branding only works when an organisation behaves and presents itself in a consistent way.

At McDonald's this is represented by its familiar logo - the Golden Arches. In all its markets, McDonald's faces competition from other businesses. Additionally, economic, legal and technological changes, social factors, the retail environment and many other elements affect McDonald's success in the market. Marketing involves identifying customer needs and requirements and meeting these needs in a better way than competitors. In this way a company creates loyal customers.

By identifying their target audience McDonalds. Accurate research is essential in creating the right marketing mix which will help to win customer loyalty and increase sales. As the economy and social attitudes change, so do buying patterns. McDonald's needs to identify whether the number of target customers is growing or shrinking and whether their buying habits will change in the future. According to Nazlin Imran , in one of his works says that the study of consumer perception regarding food quality and acceptability is complex and interdisciplinary, encompassing scientific disciplines including food science and technology, nutrition, psychology, physiology, marketing and hospitality.

Food having possessed with physicochemical characteristics arising from ingredients, processing and storage variables resulting in the sensory characteristics of the food product. These sensory properties are detected by consumers using the human sense organs producing experiences of the taste, appearance, smell and texture of the product.

The basic study of the interaction between these human senses and the physicochemical properties is known as psychophysics. In food science, sensory evaluation is nothing but applied forms of psychophysics. The sensory attributes of a food product interact with consumer physiological, behavioral and cognitive factors within the consumer experience to exert influence on consumer perception.

Context and background also affects this interaction, e. Sensory and hedonic experience interacts with post-consumptional experiences to produce responses that feed-back into the consumer physiological state, the learning process and memory building. Consumer expectation is in turn affected by this process.

Expectation can be generated from cues such as packaging, labeling, product information and stereotypes. Thus, consumer food choice is determined by many factors as shown in the below figure. Food choice factors were being individually studied in the past by other disciplines, e. However, in the recent times, the the factors involved in the perception and acceptance of the food quality food quality are being studied collectively in sensory science.

Sensory science has been described as a place of meeting in science, bridging the gap between humanities and the pure sciences. It has been shown that many individual factors affect the perception of a food product. These factors include taste, odor, information from labeling and images, attitudes, memory from previous experience, price, prestige, nutritional content, health belief, familiarity and brand loyalty Krondl and Lau, , ; Raats et al.

Sensory attributes have been known to play an important role in overall perception and acceptance of a food product. It has been well recognized that the intensity of food-related sensory attributes affect the level of pleasantness or unpleasantness of a food product Cardello, Texture and flavor have been shown to have a profound effect on perception and acceptability Szczesniak, The effect of visual sensations should never be underemined.

Human perception of quality is dependent on the visual image Hetherington and MacDougall, It has been well established that color and appearance can have a halo effect which modifies subsequent flavor perception and food acceptability Hutchings, ; Kostyla and Clydesdale, Appearance, flavor and texture are important quality attributes which characterize raw food materials and processed products Schutz and Wahl, Kramer and Szczesniak use a circle diagram to describe the sensory quality of food.

In this sensory circle, the perimeter of the circle is divided into three merging zones defined by appearance, flavor and texture. These zones are often regarded as an individual and seperate characteristic, however some properties do overlap indicating that the perception can be affected by more than one sense.

However, the significance of different product attributes varies with the situation and time. For example, a product that is seen on a supermarket shelf may have different attributes affecting perception when compared to the same product seen on a plate. The same product on a plate would be affected by anticipatory and participatory attributes Hutchings, In other words, at the point of consumption, anticipatory factors such as the initial product appearance and also consequent participatory factors such as product flavor and texture may dominate the acceptance level for many foods.

Appearance encompasses several basic sensory attributes such as colour, opacity, gloss, visual structure, visual texture and perceived flavor. Of all these visual aspects, the effect of color is the most obvious and well-studied. The strong association between food and color was established as early as by Moir and by Dunker. Extensive research has confirmed the importance of color in taste recognition and intensity Johnson and Clydesdale, ; Kostyla, ; Maga, , in flavor detection and recognition, in food preference Christensen, ; DuBose et al.

Consumer perception of an acceptable color has been shown to be associated with other quality attributes: The effect can be achieved by manipulation of one or more variables: Perceived service value has been a critical construct in marketing because it is assumed to have a significant influence on purchase or patronage behavior Bolton and Drew, ; Zeithaml, Although value is an indistinct and elusive construct, service value as perceived by consumers has narrowly been defined as a trade-off between perceived quality or the benefit component and perceived sacrifice or the cost component regarding a service being evaluated Dodds and Monroe, ; Dodds et al.

Consumers would make their value judgment on a service by trading off the positive utility of the quality against the negative utility of the cost inferred from various service characteristics. Then, what specific aspects of a service imply the quality and the cost for the value judgment? This question is dealt with in the sections below. Perceived quality is one of the major determinants of perceived service value.

It is assumed that consumers consider various dimensions of a service to reach their overall judgment of service quality. SERVQUAL consists of 22 items measuring customers' expectations and another 22 items measuring their perceptions of five dimensions of service performance.

Specifically, they have suggested that when consumers make their judgment of service quality, they would generally consider the service provider's:. However, SERVQUAL is a generic measure; researchers have found that the relative importance of the five dimensions varies across different service industries e. Crompton and Mackay, ; Johnson et al. Consumers compare service quality with cost to determine service value.

Service cost is basically what consumers have to give up or sacrifice to obtain a desired service. Since it has a negative impact on consumers' budgets, it would have a negative influence on their perceptions of service value. The concept of cost can be extended to include nonmonetary cost such as service time see Murphy and Enis , for a detailed review of time costs. Service time is the amount of time during which a service is provided.

Since most customers would like to have faster services, service time would affect perceived service value in the same way monetary cost would. Some services require customers to be present physically where the services are provided e. Moonkyu Lee, Francis Ulgado, Due to busier client lifestyles and dual-working families with children, stress is increasingly being placed on fast meal solutions Atkins and Bowler, This has resulted in a market enlargement of more than 18 per cent in fast food since Keynote, United Kingdom customers tend to look upon expediency and wholesomeness as polar opposites, rather than a balancing type of food value Jack et al.

These researchers found that convenience is likely to be associated with wide food processing, as in the example of manufactured snack foods; such snacks are apparent as suitable but unhealthy, while natural "fruit as a snack" are perceived as healthy but inconvenient. Fast food meals based on burgers and fried chicken e. MacDonald's, KFC also tend to be perceived as suitable but unhealthy.

There has been a sustained increase in the demand for expediency foods and snacks over a number of years Traill, ; Keynote, Moreover, a better volume of fast food is enthused in the United Kingdom than in any other country in Europe Schlosser, Recently, the thought that processed convenience foods are contributing to a fatness epidemic has led to litigation proceedings against McDonald's.

At the same time, a figure of fast-food companies and food manufacturers have reviewed the fat and sugar contents of their manufactured goods ranges, and reconsidered the dimension of the portions they offer. New "healthy options" e. Another new innovative strategy by McDonald's and KFC enables nutritional information for each meal to be accessed via nutritional calculator tools on each company's web site see www.

From the early stages of post-war nourishment policy in the UK, food manufacturers have responded to nutritionists' calls for better products to some degree. However, they have also asserted there are no "good" or "bad" foods - only good or bad diets Richardson and Brady, In the meantime, the UK Food Standards Agency's FSA present diet and nourishment strategy emphasizes a key role for the food manufacturing in helping to get better the nutritional excellence of dietary intakes Scottish Food Advisory Committee, For caterers, this means offering a greater option of healthier tableware, and for manufacturers and retailers, rebalancing foodstuff ingredients, in particular, reducing the attendance of fat, salt and sugar and rising that of fruit, vegetables and complex carbohydrates.

Health branding initiatives, such as the Department of Health's "5-a-Day" campaign promoting fruit and vegetable eating, have clearly helped to lift the profile of nutrition targets Department of Health, ; Parker, Food companies desire the logo but obtainable processed foods may not meet its strict supplies Laurance and Mitchell, As a result, manufacturers and retailers have begun to open their own logos and claims.

Customer value plays a vital role at the heart of all advertising activity as it refers to things of worth that have been created for a specific marketplace Holbrook, Customer value is a highly multifaceted concept in that it integrates a collection of possible product excellence attributes, process-related attributes and less touchable sources of value, in particular, brand image Schroder, For fast foods, manufactured goods attributes may be further broken down into dietary, sensory and clean quality.

The nature of food production and processing is becoming more significant to customers Baltas, ; Bredahl et al. Ethical manufacture in terms of animal and human welfare, and environmental guard are key issues here Wier and Calverley, ;Harper and Makatouni, ; Grankvist et al.

Holbrook's typology serves as a mapping tool for generic customer value and is highly applicable to the food background.

For example, it highlights both functional customer value which might be interpreted as food security and dietary make-up and ethics. However, business image is only partially built on touchable product and process attributes.

Equally significant is the manner in which company's converse with stakeholders through their marketing strategies, including CSR initiatives. CSR may be defined as an organization's rank and activities with admiration to perceived communal obligations Brown and Dacin, Through the Business Excellence Model British Quality Foundation, , the crash of an association on society has been highlighted alongside the require for worker and customer satisfaction.

Clearly, the better the perceived power and influence of an association the more likely it is to draw the attentions of campaign groups. The activities of influential organizations will be improved understood by the community and have an effect on more customers than those of smaller competitors. McDonald's has different marketing strategies for different locations around the world, but its overall strategy is to offer consumers a great value. This was the main thinking behind the hugely successful Dollar Menu.

McDonald's does not just think of great value in terms of low-cost food; it also takes the speed at which food is prepared and its atmosphere into consideration.

McDonald's uses its marketing strategy of providing a great value to help meet its three goals. This involves serving quality food quickly and in a fun environment, being a socially responsible company and providing a good return for all of the people who invest in the company. Another marketing strategy that McDonald's uses is giving back to the community. The people who run McDonald's are strong believers that consumers are much more likely to eat at a restaurant that gives back to a community than a restaurant that does not.

With globalization, it is important that companies understand their cultural atmosphere in different environments and bring about changes in their business strategy, functioning and brand awareness to adapt to their cultural difference.

Accurate research is crucial in generating the right mix to win customer loyalty. McDonalds through their market research sensed the need to involve the local culture and not isolate a particular section of the society Iacobucci They identified the consumer needs and successfully absorbed itself in both societies in a way that it was no longer thought of as an American brand.

In Australia, television commercials successfully gave McDonalds an Australian make-over. Cultural restrictions on certain meat like Beef cow is considered sacred and is worshipped and pork Muslims do not eat pork along with the fact that majority of Indians were vegetarians, made it a challenge for McDonalds to introduce Cheeseburgers Beef to the public.

McDonalds seemed to have done their research well and accepted the challenge by creating a wide range of socially acceptable products for the Indian public. McDonalds in their research considered local demographics, income level and customer preferences which was key reason for it achieve success in a multi-cultural country.

It is one of the most recognisable brand among all age groups because of its brand image.

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marketing research on mcdonalds 1. MARKETING RESEARCH Presented by: Nabeel shahid Sania khan Hassan Raza Presented to: Sir Naeem 2. TABLE OF CONTENTS • Introduction • History • Business model • McDonald's in India • SWOT analysis • Research methodology 3.

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Apr 18,  · The success of McDonalds in these countries and as well as globally was possible due to systematic market research which positioned them as a leader in fast food industry. Reference: David Newberry , Marketing Undressed, First edn, vol. 1. Transcript of Marketing Research- McDonalds McDonalds Market Research Objective: Better the McDonalds customer service and experience McDonalds SWOT Analysis Conducted by Nick Maier Not including McDonalds How often people eat out each week As shown in the graph, people go out to eat at restaurants other than McDonalds very few times per week.

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Strategic Marketing Plan for McDonald’s Technical Report (PDF Available) McDonald’s research Statist ical survey identifies these elements and how they affect. After operating five years in Bolivia, McDonalds en bolivia closed its eight branches and left the country in Lack of marketing research: Mcdonald cl.