Marketing Essay: Re-launching McBurger At McDonalds.

SWOT Analysis of McDonalds

McDonalds is one of the leading fast food restaurants that serve around 3, 50,000 restaurants in over 120 countries all over the world. The company was initially founded in the United States in the year1940. It provides food items like sandwiches, chicken, fries, burger and soft drinks items and smoothies. The main motto of the organization is to provide high and best quality of products and services to their customers by providing best services to attract and retain their customer (Basu, 2014). The report will highlight the re-launch of its product to attract and retain their potential target customers. Providing value to their customers will help in maintaining and creating an effective relationship between the McDonald and their target customers. This ultimately will provide benefit to the McDonald by creating goodwill in the market.

Mission: the brand mission is to make their restaurant, favorite place of their customers to eat and dine. The firm is committed to continuously improve their operational activities and enhance the experiences of their customers.

• Vision: the main vision of the company is to provide the world class best and quick services to their restaurants (com, 2018). .

McDonalds is known to be the market leader in the fast food industry. The launching of the new product is very beneficial for expanding the business and attracting the potential customers. The organization plans to re-launch the burger with whole grain wheat and more healthy items would be added to the new menu. One of the vital components of the marketing strategy of McDonalds includes segmentation, targeting and positioning. The firm has initiated sustenance’s quality purposes for progressing, enthusiasm and arranging purposes.

Political	Ø  The government has raised the GST rate for the service industry. Ø  Changes in the rules and policies affect the sale of the company. Ø  The [political instability within the country can affect the growth of McDonalds products.
Economic	Ø  Increased in the interest rates and exchange rates can affect the risk of currency. Ø  Increasing labor cost and material prices can affect the growth of the organization.
Social	Ø  Consumer are getting more committed towards the brand value Ø  Changes in the lifestyle of the people affect the growth of the organization.
Technological	Ø  Through the social networking sites and mobile apps, the customer can do the shopping immediately (Mcdonalds.com, 2018). Ø  Innovation will further help the company to reach maximum profit.

Through SWOT analysis McDonalds would be able to finds its position in the market. With the help of marketing analysis, the current situations present in the market can be easily determined. It helps the firm to determine its major strengths over its competitors and its weaknesses. The threats that the company usually faces is also ascertained (Phadermrod, Crowder & Wills, 2016).

Strengths: McDonalds has a worldwide presence in the market that creates a brand values and huge impact on the brand values being a market leader in the global market, launching of a new product with good quality and at reasonable price makes it beneficial for the new products that can be easily launched. The company is facing long-term economic growth that acts as a major advantage for the organization to get expanded.  One of the major strengths of McDonalds is the customer’s loyalty. The loyal customers always prefer to eat only in McDonalds, which is one of the vital strengths of the organization.

Marketing Segmentation Strategies

Weaknesses: the saturation of the business market of McDonalds has made it really difficult for the firm to expand its market. The threat of competitors in the market is also a weakness for the organization to exceed in the business market. The healthy food items help the people in creating a brand new customer segment. The food items come in various categories that are used to attract and introduce more customers (Homburg, Jozi? & Kuehnl, 2017).

Opportunities: McDonalds helps in adding innovating and new services as well as food items in the food menu to improve the outlet chains and attract the potential customers. The healthy food items such as the new McBurger makes the people to be health conscious by creating brand new customer segments. The new food items comes in the category of healthy food items that helps in attracting and introducing more customers. McDonalds also have huge opportunities to reach to its potential customers by expanding its global presence in the market.

Threats: in the recent times, people are getting more and more health conscious and do not like to eat all the fast food items. If such awareness spreads out more among the people, it would surely affect the company’s profit, which is also major threat for the organization. Moreover, the fluctuations in the foreign currency rates also become the major threat for the organization.

The main strategy is to serve the market well. The first outlet re-launching the product will be used as market tester. It could become a model for expansion of the business in the near future. the combination of local store marketing program and media will be used at each and every location , location store marketing of the product would be more advantageous as it would help in expanding the number of outlets in future through its strong identity in the local market (Klang & Hacklin, 2013). The combination of local store marketing programs and media would be used at each of the location. The execution of the strategy would prove to be very effective that would be helpful in establishing the market and exploring the broader target market.

While re-launching the new healthy products, Mac Donald’s uses demographic segmentation strategy. The main target segments are youth, children and urban family. Children are generally taken into consideration and attracted towards delicious meals and toys. Young people generally this place for gaining entertainment. The young family members select McDonalds on various occasions such as birthday parties so that they can treat their children.

Marketing Mix Strategies

Geographic segmentation: the division system of McDonalds includes all the major metropolitan and urban market. The business aims to provide proper nourishment and healthy food items to its potential target.

Demographical: the demographical segments of McDonalds are usually separated through the financial class and ongoing parameters. The previous methods of McDonalds was to differentiate the market segment on the basis of age but later on income level were used to differentiate the potential customers. McDonalds is currently focusing in all family by offerings like ‘family supper’ and ‘happy meal’.

Psychographic:  the youngsters visit the place with their families for a treat. The kids often need to visit McDonalds as they find the place very entrainment and fun spot. The business clients also visit the places as the services are real quick.

The new McBurger intends to satisfy the needs of youngsters and teenagers in United States. The goal for the organization is to be a ‘unique fast food place’. The age-group 15 to 25 is the primary target market for creating the brand of the products (Qureshi and Hassan, 2013). The target market groups are having a very limited income and seek a price/value relationship that would not affect their budgets. The secondary target market group fir the product is the individuals between the age group of 25 and 37. They are generally flexible in budgets and seek more value price relationship.

The launch strategy of McBurger is a dual purposed technique. The foremost idea is to feature McBurger is to satisfy the people cravings for fast foods that could be eaten for lunch. McBurger would be made of whole of whole grain wheat and healthy vegetables. This can be used as a quick bite and not as a heavy meal. The next strategy is to keep the price rate very fair and reasonable for the potential customers. The price should be similar to the other competitors in the market such as KFC.

The target groups want flavors and Variety in their foods besides an entertaining and fun experience. They insist upon a friendly, clean and attractive environment. The customer wants speed of service besides having an active lifestyle. The target customer’s comes from different ethnic backgrounds and adopts a global lifestyle. The needs of the target market generally look for quick and speedy services (Men, 2014). This is caused due to the rising income and increasing younger demographics throughout U.S. The lifestyle changes of the people are often influencing the consumer foods, purchases as well as entertainment choices. The change that takes places includes a high professional class that involves more working women. This leads to increase in the disposable income of the country.

Conclusion

The positioning strategy of McDonald can be ascertained with the help of marketing mix that is highly suitable for the target customer segment. McDonalds uses various types of products positioning and works accordingly. The organization is also engaged in the periodical positioning and re-positioning of services and products according to the changes in the segments.

The marketing mix of the organization helps in forming the core marketing system that helps in achieving the objectives of the company. The major 4p’s that is to be considered while re-launching of the new products and services includes are as follows:

Product: the new menu is developed as per the liking of the customers, the market research helps in knowing exactly the wants of the customers. Although the likings and demands of the customers often changes with time (Todorova, 2015). McDonalds re-launch its new burger and discard the old products with the help of market research. McDonalds take care of the new products so that does not affect the total sales. McDonalds clearly understands that different people will with different demands affects the profit cycle of the business. Therefore, innovation is essential to survive in the existing competitive market.

Price: the price of the new product should be designed in such a way so that the people can easily accept its worth. If the prices of the product are kept too low, then the customers may have several queries relating to the price and quality of the products. On the other hand, if the price of the new burger is too high then the products worth can be questioned. The new McBurger will help in satisfying the needs of the target customers. It is flavored with special seasoning and healthy in nature. McBurger will also be included in the affordable products that are branded. It is for all those people who like to eat organic foods. The potential customers are those who prefer to have health conscious food quality and taste in their food and willing to pay for it.

Promotion: it is the most vital element while making the marketing strategy. For launching or re-launching of a product, it is necessary to create awareness about the new product. The promotion technique for the product is also known as the marketing communications. McDonalds can uses several advertizing medium that includes TV, radio, print and online medias. The various other promotional methods may include loyalty scheme, merchandising, discount coupons, door drops and direct mail. The promotional activity for has major aim to provide effective exposure for the new item (Dessart, Veloutsou & Morgan-Thomas, 2015). For, McBurger also the similar promotional activities will be used by providing maximum exposure to the product.

Place: the place includes the overall processes of the management and the compete process of bringing the end products to the final customers. The present outlets of McDonalds are evenly spread, which makes its easily accessible to the potential customers. The latest drive-in and drive- through options also increases the customer’s convenience.

The marketing mix includes the diversified accesses that are used in meeting the various business concerns that is used in the global market.

McDonalds has a very high international presence that allows it target the potential customers on the international level. The company spends generally a huge amount for the promotion of its brand .the promotion channels for the launch of McBurger is decided as per the target customer segments. For attracting the teenagers and youngsters, social media will be used. While for targeting the adults and children, television will be used

Advertizing: the company spends maximum budget for advertizing into media and print advertizing. The company is unable to attain maximum advantages to get the maximum return of interest through advertizing it with the media and print (O’Barr, 2015). Through advertizing of McBurger that is very healthy and tasty will help the organization in achieving the targeted profits.

Sales promotion: McDonald’s uses another most popular process for communication is through sales promotion. Sales promoting idea is done through providing free breakfasts by allowing the nominated lucky customers.

The two vital reasons to gain maximum profits are right segmentation and experimentation. The diver’s customer’s base of McDonalds enables it to adapt itself as per the marketing and advertizing campaigns according to the culture of the country. In the present era, the brand value of the products can be easily measured for which, the organization is ranked to be one of the most valuable brand (Agmon and Sjogren, 2010). The continuous innovation and experimentation have led McDonalds to become one of the major iconic or unique items. The company is re-launching healthier product to respond to the several problems such as obesity and various reasons.

• McDonalds need to lay more emphasis on service differentiation strategy so that it can position the restaurant as the best services in the mind of the target customers.
• McDonald should implement an effective promotion mix strategy that can have balance between the modern digital and technological media for the brand promotion. McDonald should focus on the importance of digital media by deciding digital marketing strategies to link with the online customers.
• It is recommended that McDonalds should continue to invest more in menu customization and standardization strategies. This strategy helps in connecting and attracting the target customers in the geographical market (Reeves 2014).
• McDonalds should also engage more in using fresh ingredients in its products. The product quality can further be enhanced by using more healthy and fresh ingredients.

Conclusion:

McDonalds is a well-known brand all over the world with more than 30,000 outlets. While re-launching the existing product, the company easily faces competition and therefore works by bringing innovativeness in its products and services. This helped the organization to easily attract and retain its potential customer and gain competitive advantage. The company has bought new burger, known a McBurger for the segment that are health conscious and does not prefer having fast-food. McDonalds aims the health conscious individuals. Therefore the burger is completely healthy as is made of organic product. For re-launching of the products, the organization has undertaken SWOT and PEST analysis and the current position of the market are identified. This helped the firm to further determine its goal regarding the sales volume, market and profit share of the firm. The 4p’s model is applied by McDonalds to ascertain the marketing strategy for the new products.

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