Case study: Fast-Food War in Singapore
Mc Donald’s Corporation is the giant fast food restaurant chain in the world. It serves around 68 million customers every day in 119 countries. The first restaurant in Singapore was opened in 1979. Nowadays, 121 McDonald’s restaurants operate across the island, serving 1.2 million customers weekly (McDonald’s, 2013).
Primary products which mean selling world wild include cheeseburgers, hamburgers, chicken, hash brown, coke and milkshake. To keep menu diversity and response to consumer tastes changing, the company expanded menu to cover salads, wraps, smoothies, fruit and fish (McDonald’s, 2013). It also developed and released a numbers of categories that cater to local tastes. Some kinds of items are even unexpected to many of customers in the Western world. In Singapore, an item called “McRice” can be found in menu. This new category is to cater these Asian consumers who still regard rice as staple food instead of bread (Interesting Menu Items, 2010).
Singapore is the fast food capital of Asia. Facing 24,928 eateries that come to one outlet per 192 people, burger chains are feeling the pressure. Some following figures might show the current situation of McDonald’s in Singapore. It is believed that 6 shops were closed last year. According to Nielsen, with making up around 50 percent of all advertising spend for whole fast food in Singapore, McDonald’s topped list with S$ 6.4 million, of which S$2.1 million was spent on a single tactical campaign for its McDelivery service (Smith, 2008).
Q1: This case study will base on answering the five questions. For the first question, an IMC context for McDonald’s will be discussed based on customers analysis including current, potential and competitors customers. The first step is identifying current customers of MacDonald’s. Nowadays, around 1.2 million customers visit McDonald’s every week (Smith, 2008), and according to a survey conducted by The Straits Times, there are more than 8 in 10 Singapore residents visit fast-food restaurants at least one time a week. A survey issued by Pennsylvania State University helps know what they most frequently buy and where they buy.
The most popular item sold in McDonalds is French fries, and Singapore McDonald’s is no exception. For my opinion, the reason for French fries topping the list is that as a main side dish, it easily caters to the majority consumers’ taste over the world, and also as a margin profit item, company is willing to sell French fries at a low price by upgrading to a meal or extra large. On the other hand, consumers, especially for price sensitive ones, would not deny upgrading a meal by only around S$ 1.5. The second popular item of McDonald’s in Singapore is the signature product- Big Mac. Chicken products occupy the third volume of consumption (Kara, Kaynak and Kucukemiroglu, 1997).
In terms of eating time, the majority customers which are 50.84 percent prefer visit McDonalds during 11.00 a.m. to 3.00 p.m. It implies that most consumers consider McDonalds as the option for lunch. It is also correspondent to the fast-paced lifestyle suggesting that consumer who chose fast food may under time pressure. They may not have enough time to prepare lunch for tomorrow or break time for lunch is limited. For the supper, 34.08 percent of consumers visit them during 3.00 p.m. to 8.00 p.m., and 6.7 percent of consumers have McDonald’s products as breakfast (Kara, Kaynak and Kucukemiroglu, 1997).
It is also remarkable that 65.92 percent of consumers choose home as eating place. This is due to a single tactical campaign for its McDelevery service which cost approximately S$2.1 million of total S$6.4 million adverting spending. It is successful to dig out that delivery service is critical and appeals to the segmentations that prefer enjoy meal at private area. Another 27.93 percent of customers prefer place of employment to eat McDonald’s products (Kara, Kaynak and...
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