|Client/Brand: |McDonald’s Australia |Date: |September 2, 2011 |
1. The Company
McDonald’s Australia is a 3.2 b dollar business. It is not only known to people for its iconic golden arch, mouth-watering burgers, fries and nuggets, but also for its community service, strong partnership with local growers and suppliers and an array of corporate social activities.
2. Brand Issues
McDonald’s is a recognized representation of fast food and often not deemed as a ‘healthy’ food option. Therefore, McDonald’s goal to stretch its product range to fresh fruit smoothie is a challenge. Further in Australia, there are established players, specifically targeting smoothies and fruit drink segment. Customers therefore, have a wider available choice already. When the scenario is like this, reasons why people would still buy McDonald’s smoothies are:
• No competitor can provide mix benefits of a great range of meal options and cheerful in-store ambience along with smoothies that McDonald’s can.
• With 808 restaurants in Australia, out of which roughly 30% operates 24/7, McDonald’s offers widest availability and greatest convenience than any of its competitors.
• In 2009, McDonald’s introduced McCafe that offers finely brewed made to order coffee drinks that has been a great success. It means if smoothies can be properly positioned keeping consistency with brand’s core values, people would also love it.
• In Australia, McDonald’s good relationships with trusted growers and suppliers are drawing customers’ positive perception. Recently it has attained ‘heart foundation tick’ for its number of foods in Australia that ascertains its healthiness and high quality.
3. Target Audience and Buying Situation
1) Who are we talking to?
People range from 8-40 will be the target market where urban professionals, women in the early 20s, teenagers/university students and parents with young children will be the bulls eye.
• They are health-conscious and aware of what they intake. • They are often time strained with workloads.
• They want to have fun, something new and an enjoying experience. • They want to select healthier drinks for their children which can substitute carbonated beverages. • They are time poverty to make meals everyday and love to grab quick food from fast food chains.
From psychographic point of view, the basic target will be Achievers, Strivers and Experiencers who are goal oriented, trendy and fun loving, young, enthusiastic and often impulsive.
2) Buying Situation
• Smoothies ordered instead of soft drinks with a normal McMeal (regular purchase) to have fun with friends and family. • Drive through the window and pick up something good for their bodies (convenience purchase) along with a meal. • Be informed about the newly launched smoothie and give it a try (trial purchase).
People approach to smoothies because of the rising awareness of health and are influenced by time and physical (stressed, need a break) condition. Decision making process hence has limited involvement.
4. Market Situation Issues
1) Who are the competing brands and what are they doing?
a. Primary Competitors (major threats)
Direct competitors include Boost Juice Bars, Kick Juice Bars, Wendy’s, Dr. Smoothie, Thirst, providing products in health, fresh fruits category. Low fat juice, smoothies, frozen yogurt and beverages are their main offer with almost no sitting arrangement. Some of them serve hot dogs or donuts which are not McDonald’s primary concern.
b. Secondary competitors (influence industry structure)
Secondary competitors are providing substitute that influence fast food market, such as Gloria Jean’s Coffee, Donut King and Emma and Tom’s.
The existing players have established their...