Mc donald marketing strategy analysis course marketing principles

Untitled Mcdonald''''S Marketing Report Marketing Principles (MKT101) 0 0 MC'''' DONALD MARKETING STRATEGY ANALYSIS Course Marketing Principles Student name (ID) Vũ Thành Vinh (SS170704) Nguyễn Trọng Nhân ([.]

Mcdonald'S Marketing Report Marketing Principles (MKT101) 0 MC' DONALD MARKETING STRATEGY ANALYSIS Course: Marketing Principles Student name (ID): Vũ Thành Vinh (SS170704) Nguyễn Trọng Nhân (SS170803) Lưu Mỹ Tâm (SS170821) Vũ Tuấn Anh (SE161608) Đỗ Nguyễn Minh Thư (SS170781) Lê Hoàng Vinh (SS170484) Lecturer: Tran Ngoc Minh Nhu Content Introduction……………………………………….……………… …………… 1.1 Background Of The Company…………………………………………… 2 Mc Donald’s Marketing Strategy……………………………………………… 2.1 Mcdonald Swot Analysis………………………………………………… 2.1.1 Strengths of McDonald's………………………………………… 2.2.2 Weaknesses of McDonald's…………………………………… 2.1.3 Opportunities For McDonald's…………………………………….4 0 2.1.4 Threats For McDonald's………………………………………… 2.2 Overview…………………………………………………………………… 2.3 Mc Donald's Marketing Mix In VietNam Market From (2014 to 2015) 2.3.1 Product and Service………………………………………………… 2.3.1.1 Product…………………………………………………… 2.3.1.2 Service……………………………………………………… 2.3.2 Price……………………………………………………………………8 2.3.3 Place………………………………………………………………… 2.3.4 Promotion…………………………………………………………… 2.3.4.1 Advertising…………………………………………………….9 2.3.4.2 Personal selling…………………………………………… 2.3.4.3 Sales promotion…………………………………………… 10 2.3.4.4 Public relations (PR) .10 2.3.4.5 Direct marketing…………………………………………… 10 2.3.5 People………………………………………………………………….10 2.4 Mcdonald’s Marketing Mix In Viet Nam Market Currently……… …… 10 2.4.1 Product strategy…………………………………………………… 11 2.4.2 Price strategy…………………………………………………………11 2.4.3 Distribution strategy………………………………………………… 12 2.4.4 Promoting strategy………………………………………………… 13 Advice for Mc Donald's marketing strategy…………………………………… 13 3.1 Price: .14 3.2 Distribution: .14 Conclusion .15 Reference…………………………………………………………………………… 15 Introduction 1.1 The Reason for this report The primary purpose of this report is to research the marketing strategy of Mcdonald’s not only in the past but also at current Our team focus on both the SWOT and 4Ps Marketing Mix of McDonald’s Moreover, our team also gives some practical advice to improve the marketing strategy of Mcdonald’s in the VietNam market 1.2 Background Of The Company 0 McDonald's is the world's largest fast-food restaurant company, with over 36,000 locations serving 68 million people daily in 119 countries A McDonald's restaurant is run by a franchisee, an associate, or the firm itself and was founded in the United States in 1940 With 1.9 million employees, 1.5 million of whom work for franchises, it is the second-largest private employer It has expanded its menu to include salads, fish, wraps, smoothies, fruit, and seasoned fries Mc Donald’s Marketing Strategy 2.1 Mcdonald Swot Analysis 2.1.1 Strengths of McDonald's The company's strength is its targeted market penetration strategy and product development breadth That is the most critical factor in its success and positioning as a market leader in this area The following strengths are identified in McDonald's Delicious meals McDonald's French fries are the best-tasting in the fast-food sector McDonald's works with domestic and foreign vendors to ensure consistent, high-quality products Because the company's worldwide franchise network is rigorously supervised, a Big Mac purchased in Pittsburgh will taste exactly like one purchased in Tokyo This choice has a considerable advantage for tourists who are apprehensive about eating local cuisine in a new location Technology developments McDonald's uses digital initiatives to accomplish its vision of the "Experience of the Future." McDonald's' notion of a "future restaurant" is based on technologies such as kiosks, mobile order and payment systems, and self-service Large market share McDonald's is frequently recognized as the market leader in scale and global reach McDonald's continued to thrive in 2006, but Wendy's and Burger King are losing market share McDonald's recently owned a market share of around 19 percent, Yum! Brands percent, Wendy's and Burger King each percent With a brand value of $126.04 billion in 2018, McDonald's is the most valuable fast-food brand globally Starbucks, the second most valuable brand, was only worth $44.5 billion Therefore no other fast-food chain came close to matching McDonald's value Effective marketing strategies 0 Ronald McDonald's famous face has become synonymous with McDonald's worldwide This leads to exceptional marketing techniques among management, including extensive market research and a high percentage of success 2.2.2 Weaknesses of McDonald's McDonald's downfall is due to internal strategy concerns and market competition They are manageable if the company takes a strategic approach to them Weaknesses identified by McDonald's SWOT Analysis include: Unhealthy food image Unfavourable press, such as Morgan Spurlock's documentary "Supersize Me," which blames McDonald's and other fast-food firms for our society's obesity, has harmed the fast-food behemoth McDonald's foods are high in calories However, they are nutritionally deficient Franchise business model McDonald's has established the international franchising standard This complicated network of franchisees and company-run businesses comes with significant hazards The company is experiencing financial difficulties, inadequate management, dissatisfied consumers, and a lack of revenue-generating Franchisees, who operate autonomously and have little impact on their daily performance but directly impact the brand, create the majority of the corporation's revenue Supply chain disruptions McDonald's, one of the busiest food franchises, McDonald's is subject to supply chain interruptions regularly It also decreases the availability of critical operational products As a result, operating expenditures rise when a franchisee experiences such disruptions, resulting in lower revenue and profitability Customers lose due to intense competition Wendy's, Burger King, and Yum! Brands are among the many prominent fast-food brands that McDonald's is pitted against As a result of the fierce rivalry, McDonald's loses many customers to other companies Employee Dissatisfaction Employee unhappiness has been high in many companies due to recent employee rights revolutions worldwide and rising wage limits Employees at McDonald's have recently expressed their dissatisfaction with the company Workers held many rallies 0 and strikes in favour of their demand for a $15 minimum wage, putting the company's image in jeopardy 2.1.3 Opportunities For McDonald's McDonald's has numerous market opportunities that it may take advantage of to attain long-term viability McDonald's offers the following options Innovative Products McDonald's needs to develop new menu items to entice customers away from new fast-food joints In 2018, the firm debuted MIX by Sprite Tropic Berry, an exclusive beverage available only in its New York stores It was a great hit, and there are plans to serve it across the United States By adding more goods of this type based on local conditions and culture, McDonald's can maintain their attraction for a more extended period Rebuilding Brand Image Even as fast-food restaurants battle the perception of being junk-generation hotspots, it may be prudent for McDonald's to take strong moves toward healthier and more customised offerings These advancements have resulted in an increase in comparable sales, which has enhanced profitability Even though franchising is lowering sales, McDonald's healthy image can continue to make a difference in the long run Increasing demand for healthy products McDonald's is concerned about the impact on its customers' health, but it also sees this as an opportunity This company can generate new items, such as fresh burgers or healthy desserts Global Expansion McDonald's may be the monarch in the United States, but it has difficulty competing in other countries However, if the firm concentrates on developing into foreign markets rather than domestic markets, it is more likely to continue expanding globally 2.1.4 Threats For McDonald's Threats prohibit a company from fully exploiting its existing resources, depriving it of the potential benefits As a result, McDonald's faces only a few dangers Risky investments in technology McDonald's new efforts have a bright future, but investing in technology is risky High-intensity competitors 0 As the fast-food industry has grown, many new fast-food brands have entered the market McDonald's does not suffer from a lack of robust competition Some corporations, such as Yum! Brands Wendy's, and Burger King, are steadily gaining power Even though they have a smaller market share, some brands actively seek out McDonald's customers Operational Threat due to Cultural Differences Cultural barriers have tainted McDonald's reputation that the company has met as a global fast-food chain in various world regions The franchise's location adds to the difficulty of adapting to diverse operating requirements The epidemic of public health Despite the growth in obesity among Americans, fast food establishments such as McDonald's will continue to be overshadowed by historical product offers such as the Supersized Meal, Economic recession Depending on how long this "crisis" lasts, the trickle down effect will negatively influence the company's revenue streams, despite its various revenue streams Consumer spending and visitor traffic may drop during economic downturns as household finances tighten, reducing retailer sales 2.2 Overview of Mc Donald’s Marketing Strategy McDonald's Corporation operates and franchises McDonald's restaurants worldwide McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts McDonald's has offered the following strategy directives to promote Marketing via its goods The first is through children's advertising with familiar imagery such as McDonaldland - a mythical fantasy realm inhabited by Ronald McDonald and his companions and a McDonald's media franchise Initial attempts to expand the McDonaldland universe by Needham, Harper & Steers were reportedly retconned due to legal issues Still, ongoing aspects were developed in McDonald's projects in collaboration with Virgin Interactive, Treasure, and SEGA, starting with the creation of Ronald McDonald in 1963 Celebrity endorsements are the second marketing way that Mc Donald use to advertise their brand: Michael Jordan, a basketball star, was the first celebrity to have a McDonald's value meal named after him in 1992 The "McJordan," a Quarter Pounder with pickles, raw onion pieces, bacon, and barbecue sauce, was available at Chicago franchisees 0 Sprite released a unique "Sprite Mix by LeBron James" flavour in March 2014 McDonald's will debut the "Travis Scott Meal" in September 2020, which includes a Quarter Pounder with cheese, bacon, lettuce, pickles, ketchup, mustard, medium fries with barbecue sauce, and a Sprite, quality Scott created new McDonald's outfits and Cactus Jack items based on old fast-food chain images In collaboration with musician J Balvin, the Corporation released the "J Balvin Meal," which included a Big Mac without pickles, ketchup fries, and an Oreo McFlurry McDonald's has teamed with Korean boy band BTS to launch the "BTS Meal" in 50 countries worldwide in 2021, with select countries launching on May 26 2.3 Mc Donald's Marketing Mix In VietNam Market From (2014 to 2015) 2.3.1 Product and Service 2.3.1.1 Product Product Mcdonald's proposes employing the differentiation principle to strengthen their position in Vietnam They produced new vegetarian menus for the Vietnamese based on product differentiation, as the Vietnamese prefer vegetables and rice Because competitors KFC and Burger King not supply a vegetarian food menu for the Vietnamese (THE WEEK STAFF, 2015) McCurry Pan is the name of the vegetarian menu Vietnam is nearly synonymous with the Big Mac, and this is the first McDonald's franchise to change its main product, with the following McDonald's has already given the first meat-free in South Asia country sales in Amritsar, and McDonald's has replaced the original beef and bun Big Mac with a healthier fish and tofu patty on a deliciously spicy fried rice The Big Mac kept original toppings such as lettuce, cheddar, cheese, garlic, pickles, mayonnaise, ketchup, and Big Mac sauce to maintain McDonald's product authenticity 2.3.1.2 Service - McDonald's restaurants will be serving the first fast food open 24/7 to bring delicious family meals in a space comfortable and safe at any time of the day FREE WIFI, supply extremely fast, consistent, and maximum performance in every capacity 2.3.2 Price The price charged is heavily influenced by the customer's perception of value A McDonald's Big Mac will cost 85,000 Vietnam dong ($ $3.99) in Vietnam This is less 0 expensive than a Big Mac ($4.62) in the United States Compared to other fast-food brands with a presence in Vietnam, such as Popeye's, KFC, Lotteria, Burger King, the price of McDonald's Vietnam is considered reasonable This will increase competitiveness in the Vietnamese fast-food business 2.3.3 Place McDonald's Da Kao is a loan store in Ho Chi Minh City, Vietnam It was divided into three sections: Grab & Go, LingerZone, and Flexible Zone 2.3.4 Promotion McDonald's uses promotional activities to communicate with its target customers effectively The diagram depicts Mcdonald's promotion technique The Communication mentioned above Mix explains the affordable cost to consumers Some of Mcdonald's most well-known marketing campaigns include: "You deserve a break today, so get up and get away -" Food, Folks, and Fun," "I am loving it "Mcdonald's corporate uses advertising, personal selling, sales promotion, public relations, and direct marketing to establish itself as the world's leading Burger Empire Vietnam's marketing strategy The message is conveyed in global brand positioning: McDonald's advertises the approach "McDonald's - Global Brand has arrived in Vietnam" or "McDonald's - Global Brand is on its way to Vietnam." customers 2.3.4.1 Advertising McDonald's also holds the handoff advertising due to different advertisement elements The three primary goals of McDonald's advertising are to make consumers aware of an item, feel good about it, and remember it The right message must be delivered to the right individuals via the appropriate media (Dean, 2021) McDonald's advertises on television, on billboards, and at bus stops They advertise in print and television, an important marketing tool 2.3.4.2 Personal selling Selling to individuals When it comes to personal selling, Employees from Mcdonald's operating in various outlets are the ideal example of personal interaction because they are directly serving customers, and face-to-face conversation is easy to Individual selling staff is assigned to the McDonald's store, and they are the ones who undertake the duties related to selling goods to consumers 2.3.4.3 Sales promotion Promotion of sales McDonald's holds multiple sales promotion contests and 0 programs in various retail markets and locations, where free discount coupons are distributed The Mascot McDonalds statue, one of McDonald's trademarks, is always there for any occasion 2.3.4.4 Public relations (PR) Public relations (P.R.) is another crucial component of McDonald's marketing strategy Employees at restaurants play an essential role in interacting with the general population Employees dedicate themselves to consumers and the customer's thoughts about the company daily McDonald's believes that before engaging with customers, they must be aware of what their competitors are saying so that they may differentiate themselves from their competition 2.3.4.5 Direct marketing One of the most effective promotional strategies is direct marketing; McDonald's uses the feature in their home delivery services, where they deliver the order directly to the customer's home (Dean, 2021) They also have websites that are more suited to direct marketing in that they usually list all of the new deals and the phone numbers of neighbouring locations 2.3.5 People People are the final component of McDonald's Marketing Mix This is not a typical Marketing Mix When discussing the People element, the primary goal is to examine both customers and employees because unhappy employees are more likely to vent their frustrations on customers This would lead to poor service, and negative P.R McDonald's management determines what consumers and staff want and ensures that they are entirely happy People in Vietnam are also professional and friendly McDonald's has always provided opportunities for employees to advance their careers while working for the firm 2.4 Mcdonald’s Marketing Mix In Viet Nam Market Currently 2.4.1 Product strategy Bringing up the necessity of creating a menu, Mr Nguyễn Huy Thịnh - the Manager Director of McDonald Vietnam, insisted that: "To gain a foothold in the market, food brands need to understand customers' needs clearly, especially about food culture There needs to be a balance between bringing unique products of the brand, improving and offering suitable products for Vietnamese tastes" With McDonald's Vietnam, in addition to introducing products that are well-known like Big Mac Hamburger, French fries, boneless chicken McNuggets, the brand also serves items 0 that have appeared on menus in other countries such as egg muffins, egg sausage muffins, hotcakes, potato cakes, and fried hash brown Most recently, the company launched a traditional fried chicken dish and is considered by the culinary community as one of the best fried chicken dishes to try 2.4.2 Price strategy When launching in Vietnam in 2014, the name McDonald's promised to greatly ìnfluence the fast food service market Many groups of people waited in line to buy food More than 400,000 diners shared information about McDonald's in the first month of opening People predicted a bright future for McDonald's in this country However, McDonald's made the first mistake when using the high price strategy in the Vietnamese market: McDonald's applied the "West" price to the "East" market McDonald's has a few local variations, such as chicken rice and broken rice, but not all Vietnamese diners can afford to become regular customers at McDonald's stores So why did McDonald's choose it? For the Vietnamese market at such a price? Firstly, McDonald's is a famous name worldwide and is the first fast-food restaurant in Vietnam to build a drive-through system for motorbikes and cars Secondly, the Big Mac in Vietnam uses most of the imported ingredients from Australian beef white fish fillets caught in the Atlantic and Pacific seas A baker in Malaysia also provides potatoes from the U.S Bread Only green vegetables and tomatoes are from farms in Dalat While in many other countries, they can find quality domestic suppliers, so their localization rate is higher than in Vietnam 2.4.3 Distribution strategy In the initial step of entering the Vietnamese market, McDonald's has all three stores evenly distributed throughout Ho Chi Minh City We chose Ho Chi Minh City as a starting place because this is a target market with high-income customers, so McDonald's can execute its high price strategy appropriately Moreover, this is a vibrant market with a high population density, a reasonably modern lifestyle, and a tendency to prefer novel products Entering the Vietnamese market as a giant in the fast-food market, McDonald's chooses an entirely different business model from the existing brands in the market Two of the first three McDonald's stores are located outside the city center McDonald's wisely separated from the crowd when they did not choose stores concentrated in the downtown area This is quite a bold move but feasible for McDonald's when the market in the city is already tight, with hundreds of other fast10 0 food brands available on every corner McDonald's chooses the location of its stores on the strategic road leading to the city when traveling from the North and the Central region in District and the street in District 6, which enters the town from the West direction This will enable car travelers in different areas to enjoy the product through the unique "Drive-thru" service Besides, the reason for these two positions may be the requirement of large premises with campuses in stores (which is difficult to in a central location), or maybe McDonald's goal is to catch up the number of people moving in and out of the center when going to work and at leisure time Advice for Mc Donald's marketing strategy: Currently, McDonald's is no longer a strange name for Vietnamese people worldwide It is known as the "tycoon" of the fast-food industry More and more, McDonald's is gradually asserting and consolidating its number one position, leading in the fast-food business in the world for many years Having penetrated the Vietnamese market for more than six years, McDonald's continuously reported losses Compared to its success worldwide, the announcement made everyone feel astonished Though a famous brand globally, McDonald's is not prominent in Vietnam and still faces many obstacles and great difficulties In addition, the fastfood market in Vietnam is increasingly competitive and fiercer with many other competitors such as KFC, Lotteria, Wendy's, Burger King To succeed in Vietnam, McDonald's also has to overcome another tough competitor in changing consumer behaviour: bread carts and street stalls that are too familiar with Vietnamese culture After studying the marketing mix strategy of McDonald's, we would like to propose some solutions to help this brand develop further in the Vietnamese fast food market: 3.1 Price: Vietnam is a developing country with a relatively low per capita income, but the price of McDonald's products here is relatively high compared to the common ground With this price, only urban people with high incomes can afford it As for manual workers, low-income young people living in ordinary families cannot regularly pay for a meal of 40,000-80,000 VND for a quick dinner It is possible to have products with affordable prices if the input materials in Vietnam are taken advantage of Vietnam is an agricultural country with various vegetables, tubers, fruits, livestock, and poultry McDonald's can take advantage of pork, beef, chicken, lettuce, cherry tomatoes Here to make products in its store chain, not only to save cost but also to meet 11 0 consumers' taste in Vietnam Most of the ingredients used to make McDonald's Big Macs are imported, including Australian beef, white fish fillet caught in the Atlantic and Pacific oceans, and potatoes from the United States; this forces McDonald's to spend a significant amount of capital on input materials, and the products will not be fresh because they are frozen and transported back to Vietnam over long distances If McDonald's can use available Vietnamese ingredients for its products, it can reduce the cost of dishes 3.2 Distribution: McDonald's stores in Vietnam are primarily located outside the city center The strategy of this business is to separate the crowd to get its market However, this strategy is not suitable because the number of customers targeted here is very narrow If McDonald's wants to expand its market share further in Vietnam and earn the desired profit, it needs to have other strategies to compete directly with competitors in the industry, gaining prominence in the city centers Expand the market into the city center areas However, if large-scale opening stores are pretty risky, Mc Donald's may consider creating smaller stores to save space, construction, and infrastructure investment costs Open more McDonald's stores in large commercial centres Trade centres are places with a very crowded number of consumers, even on weekdays and holidays Shopping, stress relief, hanging out with friends and family Coming to a shopping mall, customers tend to go to fast-food restaurants to eat after a shopping or movie session, for example, eating chicken Fried rice, hamburgers If Mcdonald's is put in big commercial centres, many customers can get attention and visit to enjoy the food here Conclusion In conclusion, Mc Donald's has been very flexible in applying suitable strategies in Vietnam and other countries From pricing strategy, marketing strategy, promoting advertising approach, Mc Donald's knows how to increase its advantages in Vietnam They have been creating new menus to attract more people, setting up suitable locations, using more coupons and other promotions According to the latest marketing strategy, McDonald's focuses more on advertising because it can create higher incomes and reach more consumers Its techniques have been developed 12 0 and executed successfully to adapt to the needs of the consumers, not only to raise its fame but also to profit more compared to the other brands such as KFC, Lotteria, etc Reference Business-Essay.com 2022 McDonald's Company's Marketing Strategies | Business Paper Example [online] Available at: [Accessed 20 March 2022] Corporate.mcdonalds.com 2022 McDonald's Announces New Growth Strategy [online] Available at: [Accessed 20 March 2022] Herman, T., 2022 BTS Meal goes down a treat with K-pop fans in Hong Kong McDonald’s [online] South China Morning Post Available at: [Accessed 20 March 2022] IPL 2022 Mcdonald's Executive Summary [online] Available at: [Accessed 20 March 2022] Marketing Slides | Presentation slides on marketing management and strategy 2022 Marketing Strategy of McDonald's | Marketing Slides [online] Available at: [Accessed 20 March 2022] Meyer, P., 2022 McDonald’s Marketing Mix (4Ps) Analysis - Panmure Institute [online] Panmure Institute Available at: [Accessed 20 March 2022] Monii, A., 2022 Strategic tools [online] Academia.edu Available at: [Accessed 20 March 2022] 13 0 ... Company…………………………………………… 2 Mc Donald? ??s Marketing Strategy? ??…………………………………………… 2.1 Mcdonald Swot Analysis? ??……………………………………………… 2.1.1 Strengths of McDonald''s………………………………………… 2.2.2 Weaknesses of McDonald''s……………………………………... slides on marketing management and strategy 2022 Marketing Strategy of McDonald''s | Marketing Slides [online] Available at: ... reducing retailer sales 2.2 Overview of Mc Donald? ??s Marketing Strategy McDonald''s Corporation operates and franchises McDonald''s restaurants worldwide McDonald''s primarily sells hamburgers, cheeseburgers,