Investigation of Main Marketing Metrics
Carbon copy: Head officeDate: 15 March 2009
Attention to: Marketing director
No of reports: 1
No of pages: 11
1.0 Marketing Strategy of McDonald’s
A marketing strategy can be defined as the art and science of formulating, implementing and evaluating cross functional decisions that enable an organization to achieve its objective. A marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a sustainable competitive advantage. This is where McDonald’s has excelled due to its ability to successfully integrate the customer’s perspective in its products and operations in a comprehensive manner. The revamped menu in India is an example of McDonald’s strategy of integrating the customer’s perspective in its products. — Viz Top Tip, published May 1989.
Example1: Use a low cost product to attract consumers. Once the organization uses low cost products, and it has established a relationship with consumers, then the organization will sell additional higher-margin products and services that enhance the consumer's interaction with the low-cost product or service.
1.1 Development of marketing strategy(Executive summary)
The techniques that can significantly improve the marketing management in the part of development the following methods are followed.
•A proper philosophy of marketing.
•A systematic approach of solving marketing problems.
•An awareness and ability to use very latest concepts as per the trend.
1.2 Tools and Techniques involved in developing Marketing strategy
SWOT Analysis of McDonald’s
MacDonald’s has a strong global presence with its nearest domestic competitor being only half its size, McDonald’s is the market leader in both the domestic and international markets. In international markets, MacDonald’s is well placed to expand and take advantage of long-term economic growth. MacDonald’s also has a strong real estate portfolio. The company’s outlets are located in areas that are highly known for visibility, traffic volume and ease of access. MacDonald’s also has exceptional brand recognition. (Brennan, lines 15-16).
The food industry is really saturated. As a result of this, MacDonald’s has to deal with the prospect of looming market saturation, which could make it difficult to add new outlets. The market is forecast to grow by around 2% per year. Lack of product innovation is another weakness of McDonalds. The last break-through for McDonald’s was the Chicken McNugget in 1983, but again the company’s new strategy seems to have successfully deal with the problem through the popularity of its new salads and other new products.
MacDonald’s sold its Donatos Pizzeria back to its founder in 2003 and discontinued Boston market operations outside of the US. The company will instead focus on Chipotle Grill which is the company’s most successful non MacDonald’s branded chain of restaurants.
McDonald’s is exposed to changes in the global economy. The company’s aggressive international expansion has left it extremely vulnerable to other countries economic slowdown. Foreign currency fluctuation is also another problem global companies like McDonalds. Top Competitors for MacDonald’s include: Yum! Brands, Inc, Wendy’s International, Inc. Jack in the Box Inc, and Burger King Corporation. (Kevinen McDonalds-Ross, 1969,)
|Strength |Weakness | |Strong brand |Low depth and width of products | |Customer intimacy |...