Jiaqi's work

Read chapters 16&17 regarding IMC campaign

Research Databases

· Lexus-nexus

· Business premier

· Hoover’s online

· 10k report

Project details

· Firm SWOT

· Products

· Services

· Strength of brand

· New product development

· Quality

· Ethics and/or cause marketing → what Mcdonalds is already doing on the CSR side (does it appeal to the public? Is it a strength or a weakness?...)

· Mcdonalds location strategy is more important than distribution

PRIZM - area code demographic information for everywhere in the country (use for 4P’s)

Product

· Prod. A

· Constituents

· Cooking equipment

· Packaging

· Sourcing

· Backward integrated?

· Service requirement

· Does it have to be served a specific way?

Promo (chapters 15,16,17)

· Advertising

· Outdoor, radio / internet

· What media / programs? Digitally?

· Sales promotion

· BOGO

· Premium / coupon

· Public relations

Pricing

· Pricing methods (chapters 19 and 20)

· Is pricing in rural areas different than in cities?

Distribution

· Where to build new mcdonalds?

Segment

Make sure to reference VALS (sharpening the focus slides)

Three objectives of marketing research:

1. Planning

2. Problem solving

3. Control/Evaluation

Group Discussion

· Around the world food

· X times per year → different food product not regularly served in the US

· Promoting brand name

· Promotes cultural acceptance

· Increasing service

· 1-2 a year → vote for products to stay on the menu

· Increase consumer engagement

· Membership → to vote on limited items that only occur like 1 a year

· Shows off product intuition(diversification amongst competitors)

· Gains more trust amongst wider range of demographic groups

Rubric for Written and Oral Marketing Plan

Table of Content (T.O.C)—supplement for Oral Plan

Exec Summary: 1-page summary of key findings to intrigue

executive marketing staff—supplement for Oral Plan

-Each person must put their name next to 3 things to do for this project, although there are only 13 in this chart, the other two things we discuss doing is the table of contents as well as working on how this project is organized, presented, etc.

-If there are empty spots by next week, then we will assign tasks to everyone to make sure we are all doing approximately equal work.

Project Checklist	Who’s doing what
TWO SWOTS— ONE FOR FIRM AND ONE FOR BRAND OR BRANDED PRODUCT	Liam Dunn (proposed product) Jiaqi (Mcdonalds firm)
BCG	Yilin
PME	Tyler Thompson
CSR	Tyler Thompson
Uncontrollable External Variables	Liam Dunn
CONSUMER BEHAVIOR VARIABLES	Chenghao Guo
SEGMENTATION POSSIBILITIES	Yilin
SEGMENT CHOICES— INCLUDING ALL SEGMENT FACTORS	Yilin
CRITICAL DIFFERENTIATORS	Jiaqi
POSITIONING	Chenghao Guo
COMPETITIVE ANALYSIS WITH PERCEPTUAL MAP	Chenghao Guo
4-P PLANS	Liam Dunn (product and price) See: 4-P PLANS with these MINIMUM REQUIREMENTS for things to do for each P Jiaqi (place and promo)
Executive Summary	Tyler Thompson

Executive Summary

SWOT Analysis

BCG Analysis

PME Analysis

CSR Strategy and Tactic(s)

Critical Uncontrollable External Variables with Explanations

Consumer Behavior Variables with Explanations

Segmentation Analysis:

1. Segments Researched;

2. Segment(s) Chosen with these factors:

--Demographic Profile;

--Geographic Profile;

--Psychographic Profile;

--Behavioristic Profile

3. Critical Differentiators

4. Positioning Statement(s)—to serve as Value Proposition

5. Competitive Analysis (Perceptual Map)

4-P PLANS with these MINIMUM REQUIREMENTS:

Product Recommendations

-objective(s)

-PLC

-features

-benefits

-augmentations

-guarantees

-all brand issues

Price Recommendations

-objective(s)

-wholesale/retail pricing

-pricing and revenue expectations

-economic issues

Place Recommendations

-objective(s)

-supply chain

-wholesale strategies and tactics

-retail strategies and tactics

Promotion Recommendations

-objective(s)

-advertising

-sales promotions

-personal selling

-public relations

-direct marketing

SWOT Analyses

McDonalds’ swot:

McDonalds’ Taste Around the Globe (service name in progress):

BCG

McDonald's BCG Matrix:

The main purpose of McDonald's Corporation is to sell a brand so that franchisees can sell burgers and fries. Since the implementation of COVID, systemwide sales have increased by almost $20 billion for the company, indicating success (McDonald's Annual Report, 2022). U.S. same-store sales grew by 7.5 percent in 2021 and 10.3 percent in Q4 of 2022. For the fiscal year 2022, global comps increased by 10.9 percent (McDonald's Annual Report, 2022). McDonald's credits its "Accelerating the Arches" growth strategy, which emphasizes modernizing the chain's branding, investing in culturally relevant marketing, sticking to its core menu items, and stepping up its commitment to digital, delivery, and drive-thru, with its success.

Digital and Delivery: The drive-thru service and McDonald's loyalty program are cash cows. More than 50 markets now participate in McDonald's loyalty program, and more than 40 million Americans have downloaded the app. Thanks in part to the roughly 50 million active MyMcDonald's Rewards users, digital mixed increased by more than 35% in the top six global markets for McDonald's in Q4. The business has a drive-thru service that has been in operation for a while and is still very well-liked by customers. These markets have a large market share and high rates of growth, making them the stars of the BCG matrix.

Restaurant Development: McDonald's announced an update to its Accelerating the Arches plan that includes the expansion of this sector, which is experiencing rapid growth but has a small market share. As a result, it is marked as uncertain in the BCG matrix.

McDonald's is dedicated to its core menu items, such as burgers and fries, which have a large market share but slow market expansion. In the BCG matrix, these are the cash cows.

The McCafe line from McDonald's is a dog. Despite being a well-liked product, it hasn't grown significantly in recent years and doesn't bring in a lot of money for the company.

BCG Matrix

These products are market leaders and produce a high ROI. They use a lot of cash to become leaders.	These products are being questioned - they can become Stars or become a drain, turning into Dogs.
· Digital and Delivery McDonald's loyalty program and digital capabilities are highly successful, with the app being downloaded over 40 million times in the U.S. and digital mixed more than 35 percent in McDonald’s top six global markets. These are high-growth areas with high market share, making them stars in the BCG matrix	· Restaurant Development McDonald's announced an evolution of its Accelerating the Arches plan, including the addition of restaurant development, which is a high-growth area but with low market share. This makes it a question mark in the BCG matrix.
These generate cash and have a high market share and don’t require constant investment.	These products are draining cash and have low market share. You will divert away from these ones.
· Core Menu Items McDonald's is committed to core menu items, like burgers and fries, which have high market share but low market growth. These are cash cows in the BCG matrix.	· McDonald's McCafe While it is a popular product, it has not seen significant growth in recent years, and it does not generate a lot of cash for the company.

PME

McDonald’s “Taste Around the Globe” is going to be a new product that will enter into an existing market. The new product will not be entering ALL existing markets but will instead enter a select few franchises to test whether we should go nationwide. Our PME strategy will be to add new styles, design, and versions to our current marketing campaign. We will continue using our same advertising tactics McDonald’s always uses including commercials, windows around the store, and on our menus in the restaurant and drive-thru. Commercials would include our new “Taste Around the Globe” with a style that encourages customers to go out and try our new food around the world.

McDonald’s menus are almost all exactly the same no matter where you go. For our new service, there will be a dedicated big and noticeable section on a certain part of the menu that catches customer’s eyes and encourages customers to order it. I have come up with a rough draft of a logo/colorway to help our product market expansion strategy.

This logo will not replace the famous “M” that is on all of our products and everything we are involved with. Instead, it will be on our products involved with our new service to add a new style/design for our campaign.

CSR

When you first look at McDonald’s and their ethics, you may not view them as an incredibly socially responsible company. However, after doing some research it is pretty clear that McDonald’s strives itself to be one of the more ethical companies in the United States. We use ethical practices in how we make our food making sure animals are raised in nice environments. We also take pride in taking care of our employees and customers with employee benefits and offering healthy food options as well. We also are very involved in philanthropic work and charities including our own “Ronald McDonald House Charities.”

We will continue to practice our ethicality in our new marketing campaign by following our same practices we have always followed. Finding a way to create our new food will be a challenge at first but we will make sure it will be ethical. We will use recyclable resources to package our product.

External Uncontrollable Variables

Foreign affairs hindering the general public’s view towards certain countries where we pull these products from (like if we introduced a German product during WWII)

Consumers who are prejudiced or bigoted towards certain groups of people involved with these products may no longer support the company

Specific allergies that arise from these products (Like Sweden's Toblerone McFlurry)

Backlash from consumers who wish McDonalds to “be like they used to be”

Inflation could cause the ingredients to become more expensive making it hard to continue making these products.

Other fast food chains attempting to reinvent their menu in similar ways

Federal regulation to reduce the country’s impact on climate change could reduce ability to maintain high production rates

Segmentation possibilities

One of the biggest fast-food chains in the world, McDonald's has locations in 119 different nations. McDonald's uses a variety of segmentation techniques, including geographic, demographic, behavioral, psychographic, and occasion-based segmentation, to effectively reach its diverse customer base.

By dividing the target market based on regional preferences and tastes, geographic segmentation is accomplished. McDonald's can adjust its menu and marketing tactics to meet the needs of customers in various geographic areas, including urban, suburban, and rural ones. McDonald's, for instance, could add menu items that would be popular with Americans in the South, West, or Northeast.

Segmenting the target market based on additional demographic factors like education, ethnicity, or family size is known as demographic segmentation. McDonald's can offer Value Meals or bundle deals for big families, as well as promotions and deals specifically targeted at college students.

The goal of behavioral segmentation is to divide the target market according to the level of loyalty or benefits desired. For die-hard fans, McDonald's can introduce loyalty programs and rewards; for regular customers, they can provide personalized menu recommendations and promotions.

Segmenting the target market based on additional psychographic factors like values, interests, or attitudes is known as psychographic segmentation. McDonald's can appeal to customers who prefer organic and locally sourced ingredients with its menu options or target environmentally conscious customers with its sustainable packaging initiatives.

The target market is divided using an occasion-based segmentation strategy, such as breakfast, lunch, or dinner. When it comes to menu items and promotions, McDonald's can offer snack-sized portions for customers who want a quick snack in between meals or cater to customers who prefer breakfast items throughout the day.

Finally, there are a number of segmentation options available to McDonald's that could support the business in better comprehending and meeting the specific preferences and requirements of its wide range of clients. McDonald's can better target its menu and marketing efforts to particular customer segments by using geographic, demographic, behavioral, psychographic, and occasion-based segmentation. This increases customer loyalty and raises overall customer satisfaction.

Segmentation Analysis

To meet the varied needs and preferences of its customers, McDonald's employs multi-segment and adaptive positioning strategies. Based on geographic, demographic, behavioral, psychographic, and lifestyle factors, the company targets various segments.

1. Geographic segmentation

In order to accommodate the distinct preferences and tastes of customers in various regions, McDonald's, which has locations in 119 countries (McDonald's Annual Report, 2022), has modified its menu. For instance, the business offers the vegetarian McAloo Tikki burger in India and the Teriyaki Burger in Japan. The business has introduced menu items in the US that cater to regional preferences, such as the Midwest's McRib sandwich and New England's lobster roll. Additionally, McDonald's has different menu items and marketing tactics for its urban and rural target markets ( McDonald’s: Burgers, Fries & More. Quality Ingredients., n.d.).

2. Demographic segmentation

McDonald's focuses on low- and middle-income customers while catering to a wide range of demographics, including customers aged 6 to 70. The business focuses on a variety of life stages, such as the single stage, newlywed couples, and full nest II. For instance, the business provides Value Meals for families as well as Happy Meals for kids ( McDonald’s Menu: Our Full McDonald’s Food Menu, n.d.). In order to attract employees, professionals, and students, the business also provides discounts and deals.

3. Behavioral segmentation:

Based on the level of loyalty and benefits desired, McDonald's divides its customers into different groups. The business offers rewards and loyalty programs to its most ardent supporters, who are regular customers. With discounts and promotional offers, it also targets customers who might decide to switch to other fast-food chains. McDonald's also offers quick service and inexpensive menu items to customers who want to save money and time ( McDonald’s Menu: Our Full McDonald’s Food Menu, n.d.).

4. Psychographic segmentation

Customers are targeted by McDonald's based on their social standing, lifestyle, and personality. According to the Cross-Cultural Consumer Characterization created by Young & Rubican, the company targets lower, working, and middle-class people who are resigned, strugglers, and mainstreamers. With its laid-back and informal atmosphere, it also appeals to personalities who are careless and easygoing. Additionally, to appeal to customers who are health-conscious, McDonald's has added healthy menu items.

5. Adaptive positioning

McDonald's periodically repositions its products using adaptive positioning in response to shifts in consumer tastes and preferences. In response to customers' growing health concerns, the company has added nutritious menu items like salads, smoothies, and oatmeal. To accommodate customers who are vegetarian or vegan, the business has also introduced plant-based burgers and sandwiches. McDonald's has also added all-day breakfast and expanded its breakfast menu to accommodate customers who prefer breakfast items all day.

To sum up, McDonald's divides its customers into various groups based on a variety of factors and markets to them. To accommodate changing consumer preferences and needs, the business has successfully modified its menu and marketing tactics. As a result of its ability to draw in a wide range of customers, McDonald's has expanded and become a successful international fast-food chain.

4 P’s:

Product

· McDonald’s is bringing hits from its global menu to the United States

Price

· Typical McDonalds prices (TBD)

Place

· Every Mcdonalds

Promotion

· Why do they need it?

· What problem will it solve for them?

· Why should they fork over their hard-earned money for it?

· What is the best way to reach your target market? It might be a social media platform, a PR campaign, or an SEO strategy.

· What appeal are we employing

· Continuous, pulsing or flighting schedule