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marketing_plan_final_paper.docxMarketing Plan
McDonalds is a strong international franchise that is improvising the subs market with a new Deli style sandwich that promotes healthy and smart eating habits. This new product will attract consumers that enjoy other products from McDonalds but are resistant to the famous burgers. The Marketing plan study multiple aspects of the product to make sure that its launched to the market is successful. This product is the key to open the doors to new clientele that prefer
other restaurants to look for other food options. I analyze the product to make sure I had a concise product that people will enjoy and therefore be willing to pay for. In this second stage of the marketing plan I will explore the externalities that can directly affect the product positively or negatively.
Segmentation Criteria
McDonalds operates worldwide and as most companies, uses market segmentation in the fast food market to identify the needs and consumer buying power that will dictate the marketing strategies implemented by marketers. There are several variables that are considered in market segmentation such as geographic, demographic, psychographic, and behavioral. A marketer may not use each variable or a combination of multiple variables to ensure the segmentation criteria is effective in producing the product the consumer wants to have and increasing the brand loyalty of McDonalds.
McDonalds has locations in most geographical areas so we choose which countries would enjoy cold low fat sandwiches. Demographic variables such as age, gender, family size, income, religion, and nationality are considered. We evaluate who would be attracted to the deli sandwich and be willing to pay the cost of the sandwich. For instance, is a man or women in their 60’s more health conscience? Would a man or woman in their 30’s be more interested? In the location of the McDonalds restaurant, are there more young families or seniors that live in the area? If a particular nationality or religious group populates the region, are cold cuts a sandwich they can eat?
Identify Target Market
McDonald’s main target segments are the children, teenager, college students and the young family, who is looking for a quick meal with family the children are more attracted towards toys and the delicious meals. The Happy Meals has been improve and made healthier. McDonald target market is every segment of the demography. McDonald is saying that youth is the primary target consumers. Its advertising, new outlet interior designs and additions to the menu are all firmly targeted at the youth, though the outlets still have that defined family section.
McDonald is remodeling its restaurants to connect their brand with the youth segment, which is being done in phases. The restaurants are made to be contemporary and relevant to the needs and sensibilities of the youth. Menus are being design to focus on introducing products and flavors relevant to this segment. The introduction of the range of spicy is direct toward the young adult target group. The continuous efforts to keep the food affordable and adding more filling fare are also because McDonald are targeting youth. The target is making McDonald a fun place where you can enjoy eating and playing. In addition, facilities like Wi-Fi are provided to attract students to the restaurants.
Buyer and consumers influence in purchase decision
McDonalds spend billions of dollars annually studying what makes consumers “tick.” Although you might not like it, Google, AOL, and Yahoo monitors Web patterns. The companies that pay for search advertising, or ads that appear on the Web pages you pull up after doing an online search, want to find out what kind of things interest you. Doing so allows these companies
to send you popup ads and coupons you might actually be interested in instead of ads and coupons for things such as retirement communities.
McDonalds has such a vast menu to choose from. Therefore it was a major marketing factor to ensure what would keep their customers coming back. So far their techniques have worked. One factor that influences the consumers purchasing decision is their famous dollar menu Believe it or not it can get tight for people at time. This could be in between paychecks or just bringing the kids for a treat. People continue to look for major deals. Another is fast great, fast drive thru service. Being able to conveniently order and not keep put of the car makes many go there. Also, those world famous French fries have you mesmerized and wanting more. You can’t forget about the world famous Big Mac. It makes marketing researchers continuing to develop was to sell it such as developing the “big Mac Meal”. This is their number one seller.
Researchers have even looked at people’s brains by having them lie in scanners and asking them questions about different products. What people say about the products is then compared to what their brains scans shows. This produces evidence of how they really think about the products. Scanning people’s brains for marketing purposes might sound nutty, but maybe not when you consider the fact that eight out of ten new consumer products fail, even when they are test marketed. Could it be possible that what people say about potential new products and what they think about them are different? Marketing professionals want to find out. Therefore McDonalds will keep doing research to stay on top.
Factors affect marketing strategy
These factors could affect the marketing in positive and negative ways. When professional marketing teams get the right facts about people’s spending habits and what they like to buy. The next step for them is to make sure McDonalds know to have the product and services available. McDonalds have to make sure to work with the marketing team to make sure they know all the facts about selling their products. McDonalds must have the right marketing team put in place if not they could possibly lose them money or even close their business down. . One of McDonald’s most famous factors that kept customers coming back was the dollar menu. This factor continues to work but it also it keeps changing so it is often wondered if the changing will affect business slightly.
Outstanding marketing teams that have the right tools put in place could get maximum information about the target group. Great strategies can be created that can land McDonalds more money. McDonalds have restaurants all over the world so marketing strategies that approaches all types of customers and consumers in the target group are important. The great coupon factor helps marketing strategies a lot because consumers and customers loves to save money and get free things. The coupon factor also has the marketing team get great results to help them create new strategies for certain products.
Current competition
McDonalds currently have burgers competitors like Burger King and Wendy’s, the new deli sandwich will faced competitors like subway, Quiznos, Jimmy John’s, and Firehouse subs. MacDonald’s will become the competitor of this restaurants that have deli sandwiches as main product, this means that This competitors can terminate MacDonald’s product right on the spot. They have been making deli sandwiches as their main product and MacDonald will be improvising in this market with this new deli, this will be a test drive that will determined if MacDonald can actually open completely to this new market.
Burger King and Wendy’s currently don’t have a healthy deli sandwich that can compete with MacDonald’s new idea, therefore this improvisation can bring MacDonald’s either seasonal profits or become a regular product. If this deli sandwich becomes a seasonal product, MacDonald will not really have a loss because it would at least will have attract a new clientele attention. If it becomes a regular product or the demand for it increases, McDonald will have to develop marketing strategy that will give this healthy new deli sandwich a strong position to stand against popular subs stores.
Define the competitive landscape for your product and service.
The current competitive landscape for MacDonald’s is vast. As of December 13, 2013, there 26 corporations trading on the NASDAQ index that list themselves as MacDonald’s competitors (NASDAQ, 2013). By introducing deli sandwiches as part of its menu, MacDonald’s list of competitors will surely increase by a significant number. In addition to giant sandwich chains like Subway, Quiznos, and Jimmy John’s, there are a number a number of so-called “mom and pop” deli restaurants in most localities. Despite the large number of competitors, the deli sandwich market is by no means saturated. As of the end of December 2012, the sandwich segment of the food industry was booming. A survey conducted by Franchise, Inc., an organization which the tracks the fast food market for potential investors, the average American consumes about 193 sandwiches a year (Franchise, Inc., 2002). The love of sandwiches has not diminished and is not restricted to Americans only. The same survey indicate that the love affair for sandwiches extend globally. Furthermore, some competitors like Arby’s already serve deli sandwiches as part of their regular menus.
Offering deli sandwiches does not present any new surprising challenges for MacDonald’s marketing machine. Although MacDonald’s is the largest fast food chain in the world, it does not enjoy the same title in the United States. As of the end of last year, Subway had opened over 13,000 units nationally to leapfrog past MacDonald’s. Having deli sandwiches on the menu present an opportunity for MacDonald’s to reclaim the title by entering markets that are currently occupied solely by Subway. Subway might be able to hold its own against MacDonald’s in marketing their sandwiches to adults but it has not proven that it has the marketing ability to attract the young consumers as MacDonald’s has been able to do over the past several decades.
Understanding the competitive landscape is a primary task that any business looks to tackle prior to undertaking any endeavor. Adding and marketing deli sandwiches as part of its will surely bring about certain obstacles from cold and new competitors. However MacDonald’s track record of introducing new items to their menus has shown that it is up to the task.
References
Perreault, W.D., Jr., Cannon, J.P., & McCarthy, E.J. (2011). Basic marketing: A marketing strategy planning approach (18th ed.). New York, NY: McGraw-Hill Irwin.
(2013, December 13) McDonald’s Corporation Competitors retrieved from: http://www.nasdaq.com/symbol/mcd/competitors
(2002, October) Top market Share Sandwich Chains Survey 2002. Retrieved from: http://www.franchisehelp.com/ Franchise-Research/Sandwich-Franchise-Industry-Report-2002[1].pdf
