Analysis And Evaluation Of Current 7Ps Marketing Strategy Mcdonald's.pdf

Besides, with the average price of products at McDonald's, it is considered to be relatively suitable for McDonald's customer group and target customers... PEOPLE KNOWN ABOUT JOLLIBEE TH

GROUP

MKT202 - MKT1720

LECTURER: NGUYEN HUONG LY

Nguyen Thao Huyen

Dao Hien Anh

MEMBERS

5/11/2023 - 5441 words

IV Analysis and Evaluation of Current 7Ps Marketing Strategy

I EXECUTIVE

SUMMARY

McDonald's is an American multinational fast food corporation,founded in 1940 and first appearing in Vietnam in 1997.Penetrating into the Vietnamese market for more than 20 years,McDonald's has surpassed many competitors try to competeand have a certain position in the fast food market in Vietnam,but that position is still not the highest number and McDonald'sneeds to continue efforts to achieve a leading position in thefuture This report was conducted to analyze McDonald's 7PsMarketing mix to find the strengths and weaknesses in eachelement and the marketing problems they are facing, from whichthe team will make recommendations and strategiesappropriate promotions so that McDonald's can change anddevelop for the better

1 COMPANY INTRODUCTION

McDonald's is an American multinational fast food corporation,founded in 1940 as a restaurant run by Richard and MauriceMcDonald, in San Bernardino, California, United States Thecompany later turned into a franchise, with the Golden Arches Logointroduced in 1953 at a location in Phoenix, Arizona (brademar,2022)

Good food: McDonald’s is proud to serve its customers the bestquality food Our suppliers are strictly selected and meetstringent standards to ensure all the ingredients have thehighest quality

Good People: McDonald’s offers excellent training andoccupational opportunities to help employees grow Aside frompractical training from daily tasks, employees can participate inin-depth training courses in other countries in the network,through which they improve themselves to best servecustomers

Good Neighbor: McDonald’s takes special care of thecommunity, particularly children and families We are dedicated

to good deeds that bring happiness and joy to all communitymembers (McDonald’s Vietnam)

Our Brand Mission is to be our customers’ favorite place and way toeat and drink, we will bring customers unique customer experiencethat can only be found in our restaurants (McDonald’s Vietnam)

Our Brand Ambition is serving Good Food with Good People andbeing a Good Neighborhood

VISION & AMBITION

Being the best restaurant that customers wish to come for not only

meals but also the experience! We are committed to continually

improving the quality of our services and bringing exciting

experiences to our customers through our core and favorite

products such as French Fries, Big Mac, and Chicken McNuggets,

that you can only get at McDonald's (Website McDonald’s

Vietnam)

McDonald's Vietnam is committed to following the standards of

McDonald's global: Quality, Service, Cleanliness & Values (Website

Mc Donald’s)

MISSION

(Imagine source: foodandwine.com)

2 PRODUCT/SERVICE

McDonald’s offers a wide range of products, including burgers,

chicken and fish sandwiches, breakfast items, salads, desserts, and

shakes The company has experimented with a number of different

offerings on the menu throughout its history (ANDREW THOMPSON,

2023)

PRODUCT

McDonald’s is a fast food chain that offers a variety of products and

services The company’s organizational structure is designed to

facilitate the management of global operations in the fast-food

restaurant chain market McDonald’s corporate structure defines

the organizational design and system through which organizational

components coordinate to achieve business objectives The

company’s corporate structure facilitates operations management

in food service markets based on business performance

2 PRODUCT/SERVICE

In terms of services, McDonald’s is known for its quick and efficient

service The company has world-class standards in place for

quality, service, and cleanliness McDonald’s is committed to

responsibly sourcing product ingredients and providing efficient

and convenient services to maintain cleanliness within its

restaurants (Gennaro Cuofano, 2023)

SERVICE

(Imagine source: franchiseinfo.ca)

Strengths Weaknesses

1 MC has large financial

resourcesAccording to

estimates, every day

McDonald's has more than

65 million people coming to

eat breakfast and they also

serve more than 100 million

burgers in the same period

of time (workstream.us)

1 Highly dependent onconcessionscommercialrights, limited directintervention

2 Strong reputation, build a

good brand

imageMcDonald's is the

world's most valuable fast

food brand with an

estimated brand value of

$196.5 billion (statista.com,

2023)

2 Heavily dependent on theWestern market The topmarkets that McDonald'sfocuses on are the UK, US,France, and Canada andaccount for a large portion

of its revenue Of these, theUnited States alone hasmore than 14,000 stores(linkedin.com) accountingfor more than 40% of thebrand's revenue in 2022(statista.com, 2023)

3 SWOT ANALYSIS

Extensive presence in

approximately 100

countries (linkedin.com)

3 International network, with

competition from otherquick service brands such asLotteria, KFC,

4 Mobile ordering system,

convenient payment system,

bringing many benefits to

users.Fast food chain

McDonald's has partnered

with food delivery service

Ubereats, allowing them to

better reach consumers and

meet their convenience,

speed, and ease

requirements

According to aBloomberg survey, theaverage price of a meal

at some fast foodcompanies in Vietnam is

as follows: KFC is 4 USD/1person, Lotteria is 4 USD/1person, McDonald's is 6USD/1 person

(brademar.com)

A serving of Banh Mi at afamous Banh Mi shop inSaigon costs only about1.5 USD, while, meanwhile,

a Big Mac fromMcDonald's costs nearly

3 USD At that price,Vietnamese people canchoose Pho or vermicelli

- dishes that are morecomplete, larger, andmore sophisticated

(brademar.com)

4 High prices compared toincomeworkers

Opportunities Threats

1 Technology has developed

and fast food ordering has

4 Trade barriers are

gradually removed, creating

conditions for foreign

1 PRIMARY RESEARCH ON TARGET CUSTOMER

AGE ANALYSIS

1.5% of people under 18 years old93.4% of people aged 18-25 years old5.1% of people over 25 years oldTherefore, through this survey it can beseen that views mainly come from ages18-25 This shows that the customersegment that McDonald's serves is oftenstudents and working people Peoplewho want quick and convenient meals

GENDER ANALYSIS

The chart shows that the majority ofcustomers experiencing service atMcDonald's are 54.4% female, 48.2%

male and 1.5% other gender

54.4% female48.2% male1.5% other gender

III CONSUMER

RESEARCH

52.6% of people have income less than 5,000,000 VND/month

47.4% of people have income from 5,000,000 VND - 10,000,000

VND/month

0% of people have income over 10,000,000 VND/month

With 52.6% of respondents having an income of less than 5,000,000

VND, it can be concluded that the majority of participants in the

data collection process belonged to the low-income or

unemployed group This is likely to include students Following the

above survey items, we found that the majority of McDonald's

customers are 18 years old or older, are customers with unstable

jobs and are students Besides, with the average price of products

at McDonald's, it is considered to be relatively suitable for

McDonald's customer group and target customers

PEOPLE KNOWN ABOUT JOLLIBEE THROUGH

82.5% know through social networks

51.8% know through relatives and friends

60.6% know when walking on the road

From here we can see that McDonald's does a very good job of

bringing the brand to users through social networks In addition,

they also take advantage of many different advertising methods to

direct McDonald's to more customer files

Through the survey, up to 97.8% of participants will use McDonald's

in the future, which can prove that McDonald's strategies have been

successful in creating customer curiosity

The answer “yes” is 97.8%

WOULD YOU USE MCDONALD'S PRODUCTS IN THE FUTURE?

WILLING TO RECOMMEND MCDONALD'S TO EVERYONE?

It can be seen that the level of satisfaction with McDonald's service

is very high, this can come from the efforts of the store staff as well

as from the owner who has tried his best to bring the best quality

drinks to customers Customer service, customer care, and service

standards all leave a good impression in the hearts of customers

Therefore, the surveyed customers are willing to recommend the

restaurant to friends and relatives

The answer "Yes" accounts for nearly 90%

2 CUSTOMER PERSONA

PRODUCT

More than 50% of survey participants thought that McDonald's

product quality was good or very good However, nearly 50% of

people think that McDonald's product quality is just normal or even

bad This proves that McDonald's has created a delicious menu that

suits the taste of a portion of the Vietnamese people However, there

are also many people who feel that McDonald's menu really does

not suit Vietnamese tastes and McDonald's needs to improve this

Next is the product packaging, up to 71% of users feel it is good and

rate it from 4 to 5 stars This shows that McDonald's use of paper for

packaging combined with unique designs not only creates

satisfaction for users but is also friendly to the environment

According to the survey, 50.4% of people rated 3 stars, 22.6% of

people rated 4 stars, showing that McDonald's locations are easy to

access McDonald's stores are mainly located in crowded locations

right on main roads or in shopping centers That is suitable for users

who can easily search for McDonald's at any time when they want

to use it In addition, 25.5% of people think that these locations are

difficult to reach It can be said that because McDonald's does not

have a large coverage in Vietnam, with only 28 branches

nationwide, this also makes it easier for people who live far from

that branch to access the store

100% know through social networks

37.2% know through OOH

26.3% know through traditional advertising

From here we can see that McDonald's does a very good job of

bringing the brand to users through social networks However, there

are still a few customers who know about McDonald's advertising

through OOH and traditional advertising

92% have been7.2% have neverFrom the chart, it shows thatthe majority of customers have

promotions, but there is a small

participated

Although many people have

number of people who feelsatisfied with these discountprograms is not many and willlikely reduce customer loyalty tothe brand signal This is one ofthe difficulties that McDonald'sneeds to overcome

One of the things that makes

McDonald's not successful in Vietnam

is the price of this brand More than

50% of people think the price is too

expensive compared to their income

as well as the price they want to spend

for a fast food meal This can be

considered McDonald's biggest barrier

to the Vietnamese market

PRICE

PEOPLE

According to the survey, more than 50% of people appreciate the

service attitude and appearance of McDonald's employees This

Through the survey, it can be seen that they receive the most good

reviews about the service process Shows that they have put a lot of

effort into providing good customer service McDonald's has

ensured the service process for customers with 56.1% feeling okay

with the service process, 33.8% feeling satisfied and 8.6% feeling

very satisfied with the service process

PROCESS

However, it should be noted that each customer's experience may

vary and there may be cases where absolute satisfaction is not

achieved McDonald's needs to continue to monitor and improve

service processes to meet a variety of customer needs and

maintain a high-quality service environment

PHYSICAL EVIDENCE

The fact that the majority of survey participants rated McDonald's

physical evidence as good and good shows that McDonald's has

invested and taken care of physical factors in its business

processes This can include attractive store design, comfortable

spaces, and clean and modern equipment

However, the fact that there are a few people who feel inconsistent

with McDonald's physical evidence is also worth noting This may

reflect differences in customer preferences and expectations

McDonald's needs to continue listening to customer feedback and

working to improve physical elements to meet a variety of

customer needs and desires

From the survey, we can see the problems that McDonald's is facing

that is preventing the development of this brand from thriving in

the Vietnamese market

3 CHALLENGES PROBLEMS

PRODUCT

(Image source: Brandvietnam)Based on the survey of consumer concerns in Vietnam in 2020, we

can see that health is one of their top priorities 49% of survey

participants in Q1 and 44% in Q2 identified health as their most

important concern (Brandvietnam, 2020) This shows a clear

change in the mindset of today's consumers, who have begun to

pay more attention to maintaining and improving their health

In this context, an important part of people's daily lives is food, and

this is also an area in which they are placing a lot of interest

According to our survey, 48.9% of survey participants said they felt

there was a need for improvement in McDonald's food This may

imply that consumers want their food to not only be delicious but

also have nutritional value and be safe for health With this trend of

increasing interest in health and food, McDonald's will face

difficulties with their products because it is inherently a fast food

brand and fast food is very unhealthy

PRICE

Based on our survey, it can beseen that McDonald's targetcustomers in Vietnam are mostlystudents, accounting for 93.4%, ofwhich the majority are betweenthe ages of 18-25 Furthermore,the main income of these people

VND/month, accounting for 52.6%

Therefore, it is important to understand why consumers feel the

need for price improvements in their experience is important

Therefore, with prices higher than the average of domestic fast food

brands, it is natural for customers to feel the need to improve prices

Based on our survey, it can be seen that McDonald's has done very

well in advertising their products and promotions on social

networking sites Through powerful advertising campaigns, this

brand has succeeded in increasing consumer recognition and

understanding of its products and services because 100% of survey

participants know about it However, the problem comes from the

low evaluation of McDonald's promotions Although they have done

well in reaching customers, they have difficulty implementing

expectations The most obvious thing is that 65.7% of people want

McDonald's to improve their discount programs Therefore

promotion is a challenge that McDonald's is facing and needs

solutions to improve