Category: Marketing and Advertising

Marketing Situation Analysis

Stamford International University Founded in year 1995, located in urban area of Bangkok with the population of 5 Million inhabitants. Level of education in Thailand is increasing from before. Launching an MBA International and National program is brilliant and successful strategy for now days in the area like Bangkok with the majority of educated population and large number of foreign students. Marketing situation of Stamford International university based on top universities in Thailand, it ranked 84, and 6706 worlds ranked.

SWOT analysis

Strengths:

• New education reform has made education sector more lucrative: Stamford International University offers always new and fresh course often. It introduce new system 2 times per year and bringing update according to current situation of market.
• Strong and well-known brand name in US, Europe and Asia: The band name Stamford International University is well known brand in US in many states like (California, Washington, New York…), Europe (UK, Germany, France…), Asia (South and Middle Asia).
• Located in a business area: Unique business location of Stamford International University give the university one step ahead of its competitors, it make their business easy to achieve their goals with less expending.

Weakness:

• Little scope in extra curriculum activities.
• Limited land for expansion and development of course: Stamford Asok Compus located in Exchange tower only in less than half of the one floor, In case if Stamford want to target the Thai market less than 5 year than with increase of students they will face class room limitation and there is no way to expand its land in this current location.

Opportunities:

• Inflow of foreign students will bring huge revenues: Inflow of foreign students have a huge effect on cash flow of the university. Its not only beneficial for university although its more beneficial to the area around the university and country economy. Inflow of foreign students will make the area important and business location for others around the university.
• Opening of new branches in south Asia: Stamford International University not only target Thailand market, whereas want expand its business in south Asia and have plan to open new branches in: Malaysia, Vietnam and Singapore.
• Technology development in teaching methods: Stamford International University want to make its teaching system more digitize, they want to add more computers which connect with the teaching method of university and bring fresh data to discuss and develop strategy for it.

Threats:

• More likely depend on Tourism: Stamford International University will target the International students more than National students, relying on International Students can be risky. Any politic roles can affect the inflow of tourists.
• Politics and Government Taxation: Stamford International University for continue its services, have to pay multiple tax for Thailand government as an foreign registered institute.
• Country Economy: As general down of economy in a country will affect every sectors of the country including Institutions private of government institutes and Universities. But for a University like Stamford it will affect more in the revenue of the university because Stamford International University target middle- and upper-class peoples.
• Rapidly Changing information technology will make university to expend more to their business to keep them in the level of their competitors.

Target Market

STP Analysis:

• Segment your market

1. Demographic: According to 2010 last census, out of 8.3 million population 5.7 million of them were registered residents which includes different types of race, like: Japanese More than 80000 population, Chinese 56000 population, European 48000 population and other Asian countries 117000 populations. Majority of these population are staying for education purpose. Based on demographic conclusion more than 50% of this population is young generation people. almost all foreign students traveling in to Thailand they’re speaking well English and MBA International program welcomes all types of race and people.
2. Geographic: Our location in Asok campus geographically its in the center of Bangkok with highest foreign population. Our Geographic target will be more foreign student, so we have plan to add more classes in Asok campus for both international and Thai students.
3. Psychographic: Based on psychographic analysis our target will be customers with urban Life style, more educated and open mind and Stamford International University offers an unconventional urban learning space.
4. Behavioral: How did our customers or student’s family will behave for their Child education.

• Target your best customers: Our best and Targeted customers are foreign students which they work and visit Thailand with middle- and high-class economy. For foreign and Thai students, we offer more facilities and second is high class National students with high family income.
• Positioning: Stamford International University position its education in top 100 in Thailand and 6706 position in the world. Based on International Students it’s in top 20 position in Thailand.

Marketing Objectives

Marketing objectives are the marketing strategy defined to achieve the overall business objectives.

• Specific: Stamford International University goal is to be among top 5 Thailand Universities with the highest number of foreign students and among top 100 Universities in All Asia.
• Measurable: Stamford International University’s aim to grow the number of students in MBA program by putting chart of foreign student’s candid and Thai students list yearly. And Stamford International University growing their business by different ways like social pages (Facebook, Instagram…), Board, seminars about new MBA program.
• Achievable: Stamford International University’s aim to achieve more share in Thailand market with target of 20+% between 2018-2022.
• Realistic: Stamford International University always keep updating their data, libraries and university system and they offer pre-courses, workshops to make the students more active to achieve more knowledge about their new launching program.
• Time: Stamford International University’s aim to achieve majority of share in Thailand market and All Asia in less than 5 years.

Marketing Program (7 P’s)

1. Product: As we know product is something tangible to being sold, so in case of university Students are our customers and the MBA degree which Stamford University want to give to the students is product and design of the degree is central to the product element of the marketing mix. The main job of University is to make their product and curriculum more developed to their customers and can provide needs of the students.

2. Price: Stamford International University offers their MBA program 25,000 Baht for each block for Thailand students and adding 3500 Baht international charges for International Students. And with this price they offer many free workshops and presentations.

3. Place: Place is the distribution method of an university which adopts to tuition to its market in manner to match students expectations, Stamford International University Place provide many facilities for International Students, like their access to Metro station, shops, mall and restaurants.

4. Promotion: Promotion Includes all the activities and tools that university want and can provide offering to the market, like: Sales promotional efforts, advertising, publicity and their public relations.

Stamford International University provide different types of promotion to their MBA students, like: Accepting Credit cards from Students which they cannot provide fee amount and give them fee offer with 10-15% discount for credit card students. Accepting Scholarship students from low economic countries. 80-90% discount for top ranked student.

5. People: In general, the people includes all the staff of university which interact with those students which enrolled in university, like: administrative support staff and academic team. Stamford International University have more than 50 active administrative staff and support staff to take care of their students.

6. Process: A University education requires payment prior to consumption, there is no ownership exchange, unlike tangible products the customer buy it and take the ownership of it and consume it. Process in Education institutes includes bureaucratic and administrative function of the university. A process in education institutes works like: Inquiries to registration of the student, Evaluation to examinations of the students and from result to graduation and degree. Stamford International University staff categorized as Financial department, Academic support, International support team, Visa sector, cashier and enrollment. Stamford International University have the processes of providing student need from the time they take admission to graduation; the staffs make sure the student registers in correct courses.

7. Physical Evidence: Physical Evidence is the tangible element of marketing mix. In University aspects variety of tangible include lecture facilities and teaching materials to the appearance of the buildings. Stamford International University for launching their new International and National MBA program invites lecturer from main branch in US to increase the quality of the studies.

Marketing Implementation

It’s a process which turns marketing plans into action assignment and ensure that such assignments are executed the plan’s stated objectives (Kotler 1997). Stamford is an international university and it want to expand its business in south Asia and all around the world therefore company uses advertising and different marketing programs which will use to target the various groups of people in the market, like: special seminars about education and marketing activities.

Action Plan:

Objective Periods for Tactic Activity: Term One (Jan-May).

Achieve the highest number of International candids. Beginning of the year is the time for International student inflow, and in this time of the year by adding more international lecturers and extra classes in weekend days (Saturday and Sunday) we will like to handle the maximum number of international students. Social media (Instagram, Tweeter, Facebook) channels

Board advertisements. Term Two (May-Aug)

Achieve the highest number of National and International candids. This period of time is normally selected by National and International students, our aim and goal is to increase the advertising and bring some promotion in the tuition and keep updating the resources and program. Social media (Instagram, Tweeter, Facebook) channels

Board advertisements. Term One (Aug-Dec)

Raise awareness This is actually the period that we can raise the awareness of our upcoming new year program to the customers with the help of Advertising and marketing team. This season of the year consider to be the best time for advertising and boost the sales and increase the awareness of our new program. In this period Stamford International University should focus on its advertising and expend more in this way to aware the customers as much as possible. We will consider to expend in two main type of adverting more than others which can be the Social Media and TV advertising. Social media (Instagram, Tweeter, Facebook). December Holidays Prepare for the upcoming season This is good to take advantage from holidays to increase awareness of our program and measure all the university and make them update if need to be, bring update to systems.

Evaluation and Measurements

Measurement carrying out actual measurement in aim to assign a quantitative meaning to a quality. Evaluation is the qualitative measure of the business situation and it calls for evidence of suitability, goodness and effectiveness. Evaluation of education institutes includes recommendation for a constructive action.

Purpose of Evaluation for Education Institutes:

• To determine the effectiveness of the program.
• To make sufficient and reliable decision about the program planning.
• To identify growth and lack of growth in knowledge skills.
• To Provide educational administrators about university needs.
• To measure the general trend in the development of the learning and teaching process.
• To provide an efficient management and economical management of scarce resources.

Types of Evaluation:

• Formative: Formative Evaluation use by Stamford International University to find out learning experience of students whether their able to do and attend what they were unable to do in past. And formative evaluation will help the students to perform well at the end of program. With the help of formative evaluation, the university will be able to know the strength and weakness of the student within an instructional context.
• Summative: Stamford International University often use summative evaluation to determine the broad objectives of a program which have been achieved in (Public examinations, promotions…)

As per result after applying these two techniques by university the summative evaluation shows more objective and useful than formative evaluation

Evaluation Tools:

• Sales (M&Y) = % of Sales Growth/Time
• Sales Volume = Sales volume increase % / Order quantity for the block*100
• Market Share = Total Revenue / Total Sales over a fiscal period
• Marketing Expenditure = Total Marketing expenditure / Marketing Sales
• Return on Investment = Current value of Investment – Cost of Investment / Cost of Investment

References:

1. A New Higher Education Marketing Mix (7P’s). Retrieved from: https://www.researchgate.net/publication/235284514_A_new_higher_education_marketing_mix_The_7Ps_for_MBA_marketing
2. Bangkok Population 2019. Retrieved from: http://worldpopulationreview.com/world-cities/bangkok-population/
3. Measurement and Evaluation in Education. Retrieved from: https://www.academia.edu/34793647/Measurement_and_Evaluation_in_Education_PDE_105_UNIT_ONE_THE_CONCEPTS_OF_TEST_MEASUREMENT_ASSESSMENT_AND_EVALUATION_IN_EDUCATION
4. Stamford International University. Retrieved from: https://www.4icu.org/reviews/11989.html
5. SWOT analysis for Education, School and Colleges. Retrieved from: https://rapidbi.com/swot-analysis-for-schools-and-education/

Introduction

McDonald’s was founded in 1940 as a restaurant. It was first operated by Richard and Maurice McDonald in California. This is basically an American fast-food company. This is belonging to food and restaurant industry and now having the world’s biggest restaurant chain. This is serving more 69 Million customers over 119 countries. By the end of 2018 this has 37855 outlets. This is best for its French fries and burgers. Now they added soft drinks, wraps and desserts in their value chain. The company has changed it menu now because customers preferences and tastes are changing. They are now demanding more healthy food. So, McDonald’s added salads, fish, smoothies and fruits in their menu. McDonald’s has second largest employer of the world which is 1.7 million.

McDonald’s Corporate Mission and Vision Statement

Generally, the mission statement is a summary of the company’s goals, why this exits, what kind of product this is offering and what are the aims. McDonald’s mission statement is customer-oriented. An association’s corporate statement of purpose sets the reason and related exercises of the business. For this situation, McDonald’s statement of purpose builds up the organization as a powerful most loved sustenance administration goal. McDonald’s corporate mission is “to be our customers’ favourite place and way to eat and drink.”

Vision is statement is the road map of the company that where company want to see itself in coming five year, 10 years or in future. McDonald’s vision is to be the world’s best service restaurant that provided good quality at affordable prices, quick service, cleanliness and value so that they make customer delighted. McDonald’s corporate vision is “to move with velocity to drive profitable growth and become an even better McDonald’s serving more customers delicious food each day around the world.”( Jurevicius, Ovidijus Jurevicius, September 14, 2013).

In addition to it McDonald’s New Slogan is: ‘The Simpler the Better’.

On the other hand, if we discuss the marketing orientation of McDonald’s then it comes to know that McDonald is the best fast food retailer in world’s market and focus on the needs and wants of the customers (Nwankwo and Gbadamosi 2010). McDonald offering so many varieties to satisfy the customers and doing marketing for them. Following are some products and services offered by McDonald:

• Hamburgers
• Big Mac
• Wraps
• French Fries
• Salads
• Soft drinks
• Coffee
• MC café beverages etc.

As we all know that McDonald’s is very renowned brand in the market. Today’s McDonald’s is earning into millions because of its branding. Branding is critical to a business because it puts impact on the sales of business. Branding can change how individual’s percept the image of company.

Brand plays a big role in marketing because through this a company gets recognition and become known to the customers. McDonald’s brand is Helping to clearly deliver a message to customers. This makes it different form the competitors. McDonald’s as a brand confirm the brand’s credibility in the marketplace. It helps in motivating buyers to make a purchase. Its Brand name Emotionally connect target prospects with a product or service and plays a crucial role in creating customer loyalty. McDonald’s brand is promise to the customer on what can be expect from the company about its products and services.

5C’s of every organisation used to analysis the key areas involved in its marketing decision. These plays crucial role in taking right marketing decision, well-defined marketing policy and strategy. Following is analysis of 5C’s of McDonald’s:

Company:

It is important to focus on the strengths, weakness, opportunities and threats faces by McDonald’s while focusing on the organization. McDonalds is world’s leading brand in fast food industry operating in more than 100 countries over 36000 locations and serving more than 69 million customers across the world. With such a good customer base this also has some weaknesses. McDonald’s faced criticism often for not having healthiest menu, because in the market there are other fast food chains with much netter healthiest options. In the such weakness, McDonald’s taken an opportunity to provide healthy choices in its menu and now serving some healthy foods as wrap, apple slice, salad, milk etc. Although Macdonald’s is getting advantage from these opportunities but still a high competition exist there from famous brands like Subway. This is stilled counted under the scrutiny of unhealthier menu options. The families are the biggest customer strength of McDonald’s. Today’s society guardians prefer to go for family meals with McDonald’s rather than healthier brand options.

Customers:

McDonald’s customer segment focused on lower- and middle-income status families rather than younger children. McDonalds is performs three main job which include functional, emotional and social. The emotional job is to provide a family with a family meal. The Functional job is to feed the whole family an affordable price. Social job is to provide entertainment to the families in form of play areas. To attract more customers McDonald is now improving the interior of its restaurant because previous dining of McDonald’s was congested, bad eating environment, unhealthy food etc. It included the following customer factors:

Who are the target customers: McDonald’s target customers are young children and families? As per the question of segmentation, this should go for niche market as this is highly profitable.

To whom company is serving: The company is serving to the all age group but at the current moment this is focusing on family meals. In addition to it, company is serving low class and middle-class economic families.

Market size and growth: The market size of McDonald’s is growing day by day because this make changes to its menu and added more healthy options along with fast food. So, with the changed menu it can serve to wide number of customers.

Collaborators:

Collaborators include supply chain partners, distributors and other alliances. Researches shows that McDonald’s needs to critically evaluate its supply chain. There is need to evaluate bargaining power, what suppliers provide on the table, quality provided, efficiency of supply chain team and revenue sharing at every step of value chain. In McDonald’s case bargaining power of suppliers is weak. These are weak due to lack of regional and global alliance because McDonald’s serving worldwide. Moreover, suppliers of McDonald’s are not vertically integrated. McDonalds has some specific systems to audit the quality provided by suppliers. For this they have developed a “Supplier Quality Management System” for its suppliers. McDonald recognized third-party auditing such a BSI for verify the supplier facility.

Competitors:

McDonald’s is facing competition from other fast food chain restaurants like Hungry Jacks, Burger King, KFC, Starbucks, Chipotle, Wendy’s etc. McDonald’s has biggest market share as compare to other brands. All other brands having small market share but growing at very fast speed. Even McDonald’s restaurants are competing based on low price, menu variety, product quality, taste and fast service still there is huge competition in the market. The company is facing threat from subway which is focusing on healthy food and organic options. To beat such competition McDonald introduced healthy foods in its menu like salad, wrap etc. The firm is also facing threat from new entrants. Threats also arise from innovation of new technology and economic cycle. McDonald’s should improve its interior and dining of its restaurants to face threats from new entrants.

Context:

Context Analysis include social and political environment, economic conditions, legal environment, cultural environment. National and international policies influenced every organization and McDonald is also one of them. Most of the groups and health organizations are protesting consumption of fast food and imposing new policies. In addition to this, tax laws impose by government are affecting the growth of firm. Company also must follow employment laws, trade rules, labour act and other legal restrictions. In addition to its political environment of every country also put effect on functioning of McDonald’s. Every Country’s political parties has different ideology towards foreign investment, as McDonald is operating worldwide so must make planning according to the political factors of operating country. Furthermore, economic environment of every country is different. Each country has different inflation rates, boom, depression, Gross per capita income so McDonald must study every country’s economic condition while operating there.

Moreover, technology is changing at rapid speed. Companies must adapt new technology and to upgrade their system every time when technology changes. This process results in heavy costs. On the other hand, socio-cultural factors also effect the operating of McDonald’s. Every culture has different values, beliefs and food related preferences which affect McDonald’s sales.

How does the firm go about collecting information?

Data collection is very important task of every business to identify the customer needs, competition in market, about the changing technologies etc.

There are many sources of collecting data. Some are highly technical in nature while other are deductive. Basically, two type of sources are there form data can be collected;

• a) Internal sources. It means to collect data from employees, suppliers and collaborators of company.
• b) External sources: This include collection of data direct from customer, by indirect tracking the customers and from other published and non-publishes sources.

McDonald can go for market survey which mean to fill a questionnaire from the people about what they expect, what they are getting from McDonald, what they want etc. Another way is to pick some of customer randomly and conduct interview with them to know their experience and perception about McDonald’s. Interview can be conducted face to face or on telephone. Today more popular place to collect data is social media pages and their websites.

Here an observation method can also be used. In this way company will check its own records and feedbacks from customer. They can also get an idea what customer like about them and what don’t like. McDonalds can also go to purchase data from third parties who provides information about new threats, demands of customer, available competitors, Competitive advantages etc. This is also very important to collect demographic and interests of customer database which will allow the firm to target a specific market area which has huge potential. Firm can send online survey form to fill to collect information.

Potential market segments that are available to the McDonalds

After collecting data and Market analysis divide the market into segments is the base of every marketing strategy. Market segment is part of market where the people of similar age or same taste or same genders are living. Segmentation can be behavioural, demographic, economical, cultural and usage segmentation. Market segmentation is the process of dividing the whole markets into different groups of similar wants and needs. The motive behind this is to serve the customer in a better way and to manage the costs.

Dudovskiy (2016) claims that McDonald follow these segmentation criteria:

Geographic segmentation: This segmentation divides markets according to geographic areas. McDonald’s divide its business into various market segments like

1. America
2. Europe
3. Asia/Pacific, Middle East, and Africa
4. Latin America
5. Other countries

McDonald’s optimizes its Menu based on geographical segmentation. This is serving food according to the taste and preference of particular region.

For Example:

1. In India McAloo Tikki and McVeggie are available.
2. In the USA Bacon Smokehouse Burger and Quarter pounder (beef) burger are available.
3. In Arabian countries Beef Burger are available.

Demographical Segmentation: It included age, income, family size, socio-economic status, etc. McDonald’s demographical segments are based on below:

1. Children: McDonald’s offer a lot of toys, happy meals etc to attract younger segment audience.
2. Young Adults (Age group between 18-29)
3. Adults

• Behavioural; personality, perception, attitude, usage
• Psychographic; lifestyle, social class.

Behavioral Segmentation (McDonald should go for Behavioural market segmentation and should target the loyal customer’s segment on priority basis)

Behavioural segmentation is process of dividing the whole market into smaller homogeneous groups based on buying behaviour. This segmentation is done on the base of usage frequency, brand loyalty, benefit needed etc, McDonald can increase its sales by choosing Behavioural market segmentation by studying its existing customer’s brand loyalty and their usage frequency.

Parameters of Behavioural segmentation

McDonald target consumers can be grouped based on their following behavioural characteristics:

1. Occasion oriented: McDonald strategies must be occasion oriented Where a product purchased for occasion. On the special occasion like New year, Charismas etc McDonald should offer family deals on discounted prices and so many other offers to increase sales. This thing will help to build a good image in the eyes of customers as they will feel value of their occasions.
2. Usage oriented: This means how much and how many times product is being used by a consumer. By focusing on heavy users and medium users McDonald can increase the sale.
3. Loyalty oriented: There are so many customers who are loyal towards the brand McDonald. So, McDonald should focus on loyal customer and does not worry too much about new one. If your existing customers will be satisfied, they will definitely communicate with other about you and you will get new customers through world of mouth marketing. So high brand loyalty plays important role in market. So, the segment of customers with high brand loyalty with McDonald should be target on priority basis.
4. Benefits sought: Segment of customer with different benefit perceived can also be target.Every product has different quality and service which provides different benefits to every customer.

The above image shows the parameters or variables used in behavioural segmentation.

What advantages McDonald can take by using Behavioural Market segment and by targeting segment of loyal customers.

We all know that McDonalds has a good brand reputation which is serving more than 69 million customers. By targeting segment of loyal customer first McDonalds can reduce the cost of switching customer. Because there is huge competition in the market and so many options are available. Customer can switch to another brand. Secondly, by serving loyal customers better they will be happier and more satisfied and will spread good things about McDonald through world of mouth marketing. This will help to increase more sales and more customers

After the Market segmentation next step in value proposition. It is said that, “A brand’s value proposition is a statement of the functional, emotional, and self-expressive benefits delivered by the brand that provide value to customers in the target segment. A balanced value proposition is the basis for brand choice and customer loyalty, and is critical to the ongoing success of a firm.”(O’Guinn, Allen, Semenik 4E, 2006, p. 234).

Value proposition for target Market

• By providing convenient access to its locations.
• Comfortable seating and good dining in-store facilities for
• Discount offers for regular users or high frequency users.
• Distinct products based on benefit needed such as the Mac Chicken for children, Big Mac for elders etc.
• Good value offering and pricing
• Healthy options in menu for fitness-oriented customers.
• ffer extra to your loyal customers and give them priority.

In addition to it Positioning refers to selection of market mix which most suitable for the target market.

McDonald’s has made itself to be low cost restaurant and family friendly fast food business for quality products. We have variety of menu with so many health options for all benefit seekers. We are focused on less delivery and discounted meal offers. We are providing dual drive through to decrease the wait time. We offers special discounts to the loyal customers.

Marketing mix for above mentioned target Market

Product:

McDonalds primary products are hamburgers, chicken products, soft drinks, cheeseburgers, breakfast items, desserts and milkshakes. Based on usage frequency, sales of hamburgers are high as compare to other products. Although, McDonalds introduce some healthy options in menu, but people prefer to go subway or other stores for health meal as compare to McDonald. So, study of Behavioural market segmentation shows that usage frequency of health foods is less. McDonald should offer more healthy meals to the target segment of benefit needed to increase usage frequency. Customers for the brand loyal customer McDonald must offer buy one get one free option on its products to retain its regular customers. Offers and discounts should be given on weekends and on special occasions.

Price:

McDonalds offers different price for its various product and services. For the behavioural segmentation targeting especially to the loyal customer McDonald must offers discount prices to the regular customer. There must be a point award system for every purchase of customer this thing will help to retain the customers and attract new customers. Currently McDonald’s focus on psychological pricing strategies in its price mix.

For example: McDonald had reduced the prices of its products in India by 25% to attract the customers to prefer McDonalds as dinner and lunch. This was also done to compete with the high competition of KFC, SUBWAY and Dominos.

As part of the promotional pricing strategy, McDonalds should offer discounts or bundling on certain products or combinations of meals. To serve the fitness-oriented customers more offer should provide on wraps and salads.

Place:

McDonalds is operating in more than 100 countries over 36000 outlets worldwide. This is serving through Mc Drive, Mc Café, McDonalds etc. For serving better to the target market McDonald should study the competitors ‘s dinning and seating facilities.

For Example: Hungry jacks a big competitor of McDonald’s in Australia having more space for seating and dining of customer as compare to McDonald’s.

Most of Mc Drive locations are near to highways which not offering good space for seating. So, for growth and to retain Customer McDonalds should focus on its interior development, seating and dining facilities. McDonald should focus on its locations and space availability.

Promotion:

McDonalds spend handsome money on advertisement every year. For advertising McDonalds use newspapers, billboard, Social media etc. Moreover, by sponsoring on events like FIFA cup, Olympic games etc firm can promote its new menu options. For behavioural segmentation McDonald must promote through its good and healthy slogans. Moreover, McDonald should develop those advertisements which target the benefit seekers like fitness-oriented customers. McDonald can use social media networks to promote its products.

People:

The people working at McDonalds has a dress code to follow. Employees performance should be evaluated periodically. This also has good delivery channels to give indoor services.

Physical Evidence:

The physical evidence puts great impact in the minds of the consumer. It include quality and hygiene, cleanliness and transparency of services. McDonald should focus on internal cleanliness and hygiene environment which is degrade as compare to other restaurants.

Process:

McDonalds should improve the processes to make it services fast and to make home deliveries faster. McDonalds should focus on more innovative ways to deliver services.

Conclusion

At the end we can say that McDonald has good market value and reputation of the brand worldwide but in spite of this McDonald is facing huge competition in the market from Hungry jacks, Burger King, Sub way, KFC etc. To survive in such strong competition and new entrants in the market McDonald should focus on customer loyalty to retain the old customer because customer may switch to other brands which have more healthy options. To make customers satisfy McDonald should focus on healthy meals and should adapt marketing mix according to the selected segment to target.

References

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Using a mix of promotional strategies in the marketing of goods and services is very important for all businesses. In the case study of McDonald’s they engage in a range of promotional initiatives to attract new customers and keep the same customers consistently coming back. The promotional strategies that Mcdonald’s uses include advertising, relationship marketing, publicity and sales promotions. Other companies that also use similar promotion strategies include Apple and Nike. By using a mix of promotional strategies this business can increase there profit on their goods and services by attempting to attract new customers, increase brand loyalty, encourage older customers and provide information.

Advertising

Advertising is seen in our everyday life now you see it on busses, billboards and on the television. McDonald’s use advertising as a way to engage there customers in there use of television that reaches a wide range. This Ads cost a lot of money to do like in 2009 McDonald’s launched and ad for there Mighty Angus and Grand Angus an voice actor Michael Carton in which the ad would cost over $10 million which was very successful. It was so successful that named one of the most successful ads in all of McDonald’s other ads. There are 6 main advertising styles include mass marketing, direct marketing, telemarketing, e-marketing, social media marketing and billboards. These Promotional strategies in adverting allow many ways to obtain there target market

Nike Inc. has the same use of marketing mix to uses the promotional strategies which also been done by other companies. The Promotional strategies nikes use include Publicity, advertising and sales promotions All these elements included in the promotion has different benefits for the business even if they are a multi-billion dollar company with the help of professional athletes like Lebron James, Cristiano Ronaldo and Kyrie Irving. (Opinion leaders) These athletes are involved in the promotion of Nike products in the sports they play. It is important for Nike to do this so they can expand their range of customers to as many as possible. This is all a part of the target market there sports line my only be seen in advertisements by athletes so it targets people who play sports or enjoy watching it this would change extremely if they had a person who has an office job and has no relation to sport this will decrease the sales of the item. Other companies that use the same type of advertisements include Adidas, Under Amour and Jordan they all use athletes to endorse there products. The different elements of the promotion mix play and influence in providing the customer in different ways to either gain a new customer or to continue with a previous customer. Nike is close to apple with how they gain customer attention. Apple knows its customers very well and has developed loyalty in their market share.

Relationship marketing

Relationship marketing is the development of long-term and cost-effective relationships with individual customers. McDonalds in there McCafe use loyalty cards rewards people after a number of purchases they are given a free beverage. A recently launched mymacca’s site which gives customers access to exclusive offers, newsletters, free Wi-Fi and online wallet. The loyalty program was introduced in the 1990’s by Coles then was also was introduced into Coles competitor Woolworths these being Everyday rewards because of the success Coles was having with it and encouraging customers to continue shopping at their store. In a recent survey found that 4/5 tend to shop at business with loyalty cards. Ikea also uses a Loyalty program called Ikea family card. The card provides cardholders with special offers just like McDonalds the benefits include discounts and entry into weekly draws. One of these deals include every $100 you spend you receive a $10 voucher. Apple has and loyalty program that does not involve a card or anything just that it is extremely hard to change from apple to an android to apple have a hidden loyalty program.

Publicity

Publicity is any free news story about a business’s product. McDonalds uses publicity as a form of promotion the publicity in news stories it gives new products in the eyes of consumers this helps to show people the product, raise awareness of a product, highlights the business and helps reduce negative picture of the item. McDonald’s news articles that show there products in a good view increasing their potential profit these include “McDonalds all-day breakfast a hit- shares hit record high”. McDonalds have used people like a well know chef in Los angles that you can make an “elegant meal” with only using McDonald food this would bring in publicity to show that they food is that good that a well know chef can create a good meal out of it. Sponsorship how McDonald gets there products onto an international events an example would be the 2002 winter Olympics the McDonalds sponsorship costed around $100million for 4 years but had smaller events that they have sponsored like local little athletics. They have also have sponsored vehicles in motor racing they have sponsored cars in Nascars they did not just sponsor one car but many cars. McDonalds has sponsored a lot of sports and having many spokespeople examples being Kobe Bryant, Michael Jordan and Yao Ming these people are all a part of the NBA. The NBA also has been the partners (fast food partner).

Sales promotions

Sales promotions is how you interact with activities or material for the customers. Sales promotions has goals to achieve to increase their products target marketing which leads to introducing new customers, encouraging samples of goods and increasing sales. McDonalds introduced a monopoly for a promotional reward it would work by making purchases of goods that would lead to stamps for properties that could lead to prizes like cash, cars, holidays and tvs. This promotional strategy being limited-time specials its encourages new customers and people to keep coming back for the possibility of winning something and this was happening in Australia the monopoly game costed McDonalds 167 million in giveaways. Nike have also used sales promotions in offering customers specials. The specials could be done during the holidays with high percentage of products to encourage new customers. Specials don’t only come in holidays for business but of course holidays are when people are going to spend a lot of money so specials will encourage people to purchase there products.

Companies uses many was to achieve high sales by using coupons, which are discounts for items. Premiums are ways to get something more with a product like having extras added onto it like purchasing a basketball hoop and receiving a ball as well. Refunds helps to get customer satisfaction so when they may receive a broken product they may return it to get a new one or store credit. Samples are small amounts of products to test like food or lotion to see if they are interested in purchasing more and maybe developing a recurring purchase. Point of purchase display is a way to in which gets encourage customers to purchase products by having it stand out or be at the end of a purchase at the checkout to which is displays sales to which encourage customers to purchase stuff they may not need.

In conclusion, the promotional strategy have different befits, roles and achieving profit form there goods. To which they use to establish a target market to by using all the elements to encourage new customers. They adopt ways to use the promotional mix can be used to obtain the business marketing objectives.