Unit 3 Distinction 1
In this assignment I am going to evaluate the concepts and principles applied to the marketing of products by McDonalds and make recommendations.
Marketing Concept strengths and weaknesses.
Production Concept: The production concept is the process of making and distributing the products to the business outlets. Some businesses only focus on its production process rather than the distribution process. The whole production concept consists of quality control of the product, testing and measurement of the product.
The marketing concepts strengths are that it allows McDonalds to focus on specific four stages. McDonalds are able to justify the stages of its products and the business. It enables McDonalds to understand
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McDonalds obtained an additional customer base and this had a positive impact on sales. Also McDonalds have sponsored past Olympics and this increased the demand of a product especially the Big Mac, they also gained free publicity and this also increases the customer base. This avoids customers to switch to competitors and this means that they will obtain a healthy and stable profit for the future. In the past year if a customer bought a meal from McDonalds the customer would receive a cup as part of their purchase. This increased the amount of customers they get and it also made McDonalds stand out from its competitors. A unique selling point of products differentiates McDonalds from its competitors because they will be more customers visiting the restaurant and this will result to increase of sales.
Product concept: This is when a business products is part of their business brand image. The products shape the business and its unique selling point in the market.
The product concept allows McDonalds products to be on limited edition to test customer satisfaction, so if customers are not satisfied with the new product McDonalds would simply get rid of the product and it will avoid them from making a loss as well. However the product concept is rarely used at McDonalds because they sell similar products like their competitors, however they always bring in new products to increase its customer base and being ahead of
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
McDonald’s Corporation are the most successful and popular fast food brand in the world, holding the largest fast food market share and being the leading fast food restaurant chain in terms of world sales (8%). They are the second greatest outlet operator with more than 34,000 outlets, serving worldwide to 69 million customers daily, across 119 countries. Their brand is the seventh most valuable and
Every company has their own way to promote their products; McDonald’s is no different. The promotion strategy of McDonald’s could be classified into two aspects, which are the advertising promotion and sales promotion.
McDonalds is a corporation that has great success because of good strategy and planning. In the next five years, McDonalds needs to keep up with the changes of the consumer and social
McDonalds is known for the success of their fast food chain restaurants. As a pioneer in the fast food market, McDonalds success is founded on their innovative ideas to maximized profit and product for minimal cost and labor. Their innovation can be seen in all aspects of their business, finance, marketing, advertising, and products.
REFERENCES•www.mcdonalds.com, accessed on 18 July, 2008•www.mcdonldsindia.net, accessed on 18 July, 2008•en.wikipedia.org/wiki/McDonald's, accessed on 19 July, 2008•http://www.associatedcontent.com/article/263943/mcdonalds_strategic_marketing_mix.html?cat=4, accessed on 19 July, 2008•www.kfc.com, accessed on 25 August, 2008
McDonald is recognized as one of the biggest and leading fast food chains all around the world. McDonald retains a strong market position in the worldwide food market with various branches opened in several geographical locations globally. From the perspective of customer retention, its success image is primarily upheld by its increased concentration over the strategy of sustaining its brand image in the market. Researchers contributing to the subject under discussion stated that one strategy to implement is to use operations and coordinate its policies, together with the vital factor
McDonald's is the world's leading food service retailer with more than 30,000 restaurants in 119 countries serving 47 million customers each day. It is one of the worlds most well-known brands and holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in every country they do business. McDonald’s marketing strategy is having friendly people serving the right product with affordable prices. McDonalds’s showcase their restaurants as clean, comfortable and welcoming, and create promotions that resonate with key consumer groups. They want to stay in tune with customer’s lifestyle.
I have chosen the company named by Mc Donald’s for my assignment topic as it is a worldwide and well-known fast food company covered in Asia and Europe countries .
The marketing concept rests on four pillars: target market, customer needs, integrated marketing and profitability.
In order to do this, McDonalds store must be efficient and keep everyday operations costs as low as possible. In this way, this will allow for the stores to be superior to other fast food restaurants because McDonalds can serve it food at lower prices than any other fast food company. Besides, another important competitive advantage is at McDonalds they have the speedy delivery of the food. In order to maintain this advantage over other fast food chains, McDonalds must make the process of cooking food simple for all the employees. It must be easy to learn and easy to achieve with a low failure rate to make sure the quick production and delivery of the food. These two competitive advantages obey with the vision of the company which is as follow: “McDonald’s vision is to be the world’s best quick service restaurant experience. To be the best means providing outstanding quality, service, cleanliness and value, so as to make every customer in every restaurant
line with the existent nature of McDonald's premises and business model. Thus, it is recommendable to
By creating unique brand products, such as: chicken McNuggets, Big Mac, and McFlurry. McDonald’s is setting itself apart from its competitors. The “innovation strategy is used to create new and unique products like, chicken tenders and Newman’s own salads” (Skenazy, Lenore). As well as special celebrity endorsements (athletes, actors/actresses), partnerships/sponsorships (music, Olympics, special movie toys), charities (Ronald McDonald House), games/promotions (monopoly game), which allow McDonald’s to develop their unique corporate image that sets them apart from their rivals.
Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.
On the other hand, buyers were more increasingly focusing on value and healthy foods. This condition can force McDonald and its competitor to offer product innovation that can attract the buyers and match with the buyers' requirements.