Market Analysis for Mcdonalds and Kfc

Topics: McDonald's, Fast food restaurant, KFC Pages: 5 (1601 words) Published: July 8, 2013
Market analysis for McDonalds and KFC
The long journey of the burger brand started in 1940, when two brothers, Dick and Mac McDonald opened the first McDonalds restaurant in San Bernardino, California. Initially, they owned a hotdog stand, but after establishing the restaurant they served around 25 items, which were mostly barbequed. It became a popular and profitable teen hangout. In 1948, the brothers closed and reopened the restaurant to sell only hamburgers, milkshakes and French fries. Nowadays, McDonald's are the world's leading food service retailer, as they serves some of the world's favorite foods such as Big Mac, Quarter Pounder, Chicken McNuggets, Egg McMuffin, cheese burgers, chicken burgers, french fries, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. There are more than 30,000 restaurants in 118 countries, serving 46 million customers each day. Also, McDonald's is one of the world's most well-known and valuable brands. It holds a leading share in the globally branded quick service restaurant segment of the informal eating-out market in virtually every country in which it does business.

Economic Environment
Organizations in the fast food industry are not excused from any disputes and troubles. Specifically, they do have their individual concerns involving economic factors. Branches and franchises of fast food chains like McDonald’s has the tendency to experience hardship in instances where the economy of the respective states is hit by inflation and changes in the exchange rates. The customers consequently are faced with a stalemate of going over their individual budgets whether or not they should use up more on these foreign fast food chains. Hence, these chains may have to put up with the issues of the effects of the economic environment. Particularly, their problem depends on the response of the consumers on these fundamentals and how it could influence their general sales. In regarding the operations of the company, food chains like McDonald’s tend to import much of their raw materials into a specific territory if there is a dearth of supply. Exchange rate fluctuations will also play a significant role in the operations of the company.

Technological Environment
McDonald’s generates a demand for their own products. The company’s key tool for marketing is by using the television advertisements. There are similarly some claims that McDonald’s are inclined to interest the younger populations more. The existence of play spots as well as toys in meals offered by the company shows this actuality. Other demonstration of such a marketing strategy is apparent in the commercials of they use. They employ animated depictions of their characters like Grimace and Hamburglar. They also employ popular celebrities to promote their products. The like Justin Timberlake has become endorsers for McDonald’s worldwide “lovin’ it” campaign. Moreover, the operations of McDonald’s have significantly been infused with new technology. Elements like the inventory system and the management of the value chain of the company allows for easy payments for their suppliers and other vendors which the individual stores in respective markets deal with.

Competitive Environment
The main competitors generally identified with McDonalds are the KFC. McDonald's product value is its greatest strengths. McDonald’s launches several different innovative products regularly to attract the customers such as the happy meals for kids, giving away small toys with the kids meal, organizing birthday parties and other events in the stores for the customers. The customers know what to expect when they walk into a McDonalds store. It gives great emphasis to human resources by satisfying both the customer and the employees. Next is the...
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