Mcdonald’s Case Assignment

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McDonald’s Case Assignment
A.Current Marketing Situation:
Strengths
Well-known brand and reputation all over the world
Contains around 35,000 restaurants in more than 100 countries •High value infrastructure, real estate, marketing and franchising •Has introduced to healthier food choices such as salads and healthy breakfast items •McGriddles breakfast sandwich brought success to McDonald •Currently introduced a new product McCafé

Has created many jobs for people all around the world.
Introduced to quality products at a low price, for instance; McCafe compared to Starbucks coffee is cheaper. •Changing their cooking oils into trans-fat-free oil has made there consumers happy. Weaknesses

Food is greasy and fattening
Had been advertising unhealthy food to children, before introducing the happy meals. •Documentary film Super-Size Me, brought awareness to the consumers. •Unhealthy food contributed to obesity, and many health issues. •Macdonald’s has been sued many times, due to being dishonest with their customers. • The main products used in McDonald’s are not meeting the healthy lifestyle of kids and adults now a day. •Usage of beef flavouring in their vegetable oil made their vegetarian group, anxious. Opportunities:

Are capable of expanding their locations in more than 100 countries. [demographic] •Introducing to healthy lifestyle menu can support the latest trend of health conscious groups. [culture] •Addition of new healthy, low-calories menu can attract more customers. [social and culture] •Should also use social networking site to advertise their products like Facebook, Twitter and MySpace.(Androich, 2011) [social and technological] •McDonald’s Angus Burger can be expended in more locations other than U.S.A. [demographic] •McDonald Canada has started using features in Twitter’s suite to promote products and advertise to the target users in particular countries and other city areas. ( Androich, 2011) [social and technological] Threats:

Has many competitors e.g. Wendy’s, Burger King, Quiznos. [Competition] •Should be careful with the choice of products used in the menu for specific target market, to avoid any future lawsuits. [political] •Have to find ways to be innovative, to attract wide range of customers. [demographic] •Needs to take control over strengths to gain profitability. [economic]

B.Market Segments:
Target MarketChildrenTeenagersAdults
Demographic -Ages 4-12
-Average earning-Teenagers male/female
-Ages 20-35
-Good earnings
Geographic-Urban-Urban/Suburban area-Urban/suburban area Psychographic-Easily accessible
-Happy Meal includes toy, which attracts children. -Have to be affordable -Nutritional facts does not matters
-Preparations methods is not a key factor for them-Prefers quick service -Nutritional factors are somewhat essential
Behavioral-High consumption
-Play zones are available for children
-Brand loyal, e.g. Hulk toys, Shrek toys etc.
-High consuming capability
-Loyal customers due to celebrity endorsement-Average consuming capability -High in demand of breakfast, lunch, salads, and coffees

C.Issue Analysis:
1. McDonald’s has been sued in 2001 due to the addition of beef extract into vegetable oil which was used in the preparation of French fries for more than a decade. 2. There are very few vegetarian choices in the menu to select from, especially for vegetarian groups. 3. Customers are served with greasy and unhealthy food, which is leading to health problems especially for children. 4. The documentary by Morgan Spurloak in 2004, Super-Size Me has led many customers to rethink about the food choice they make before buying from McDonald’s. D.Recommended Alternatives:

I suggest that McDonald’s main target market should be the adults because they prefer variety in their menu options; they are the majority group who would profit McDonald’s but due to...
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