SWOT analysis of McDonald’s Hong Kong
1. Financial Investment: McDonald’s spends a lot of money for marketing promotion and branding. For example, McDonald’s will invite celebrities as the spokesman (Eason Chan) and spokeswoman (Joey Yung) for different promotion. McDonald’s launch large marketing campaigns from time to time to keep customer engaged. For example, the Monopoly Game in 2011. 2. Location coverage: McDonald’s restaurants locate basically every shopping mall and shopping center no matter the class, from the low level like government-subsidized estates to the high level like the peak and central financial district. 3. Good community-caring image: Ronald McDonald House Charities which is a worldwide charity group established in 1974 to help the sick children to heal faster. Part of customers spent in McDonald’s restaurants will be donated to charity. McDonald’s also organized fund raising activities and sponsored activities for charity especially for children. 4. Good positioning: McDonald’s usually converts itself to suit Hong Kong’s need. A growing number of Hong Kong loves the café culture when Starbuck’s success in Hong Kong. McDonald’s open McCafé to suit the need and to compete with Starbuck’s with a lower price and convenient location (located in all McDonald’s restaurants). Health concern is always a critics to McDonald’s. McDonald’s provides healthy food like salad and corn cup for customers to choose. 5.
Target: Children’s menu with toys
Large investment: Celebrities spokenperson; sponsorship; branding building Large marketing campaign: make the customers involved and engaged
Localization: McDonald’s keeps the global image and American brand in Hong Kong. The menu is unchanged and keeps the western style of hamburgers and fries. Comparing with the major competitor KFC, KFC does a better job in localizing the menu to suit Hong Kong. Hong Kong is
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