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

MKT202 - MKT1720

LECTURER: NGUYEN HUONG LY

Nguyen Thao HuyenDao Hien Anh

5/11/2023 - 5441 words

TABLE OFCONTENT

Executive summary

Service organization’s introduction

Company IntroductionProduct/ServiceSWOT Analysis

368III Consumer Research

Primary Research on Target CustomerCustomer Persona

Challenges and problems that the service provider is facing111521IV Analysis and Evaluation of Current 7Ps Marketing Strategy

Product strategy = Core product + Supplementary servicesPricing strategy

Placement strategyPromotion strategyPhysical evidence strategyProcess

24303235384041

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).

II SERVICE

McDonald's serves more than 70 million customers every day inmore than 118 countries at more than 35,000 stores AlthoughMcDonald's is famous for hamburgers, cheeseburgers, and fries,they have chicken products, breakfast items, soft drinks, milkshakes,and desserts The company also added salads, fish, smoothies andfruit in response to changing consumer tastes and negativereactions to the unhealthiness of fast food (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 dedicatedto 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 onlymeals but also the experience! We are committed to continuallyimproving the quality of our services and bringing excitingexperiences to our customers through our core and favoriteproducts such as French Fries, Big Mac, and Chicken McNuggets,that you can only get at McDonald's (Website McDonald’sVietnam).

McDonald's Vietnam is committed to following the standards ofMcDonald's global: Quality, Service, Cleanliness & Values (WebsiteMc Donald’s).

(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, andshakes The company has experimented with a number of differentofferings on the menu throughout its history (ANDREW THOMPSON,2023)

McDonald’s is a fast food chain that offers a variety of products andservices The company’s organizational structure is designed tofacilitate the management of global operations in the fast-foodrestaurant chain market McDonald’s corporate structure definesthe organizational design and system through which organizationalcomponents coordinate to achieve business objectives Thecompany’s corporate structure facilitates operations managementin food service markets based on business performance.

2 PRODUCT/SERVICE

In terms of services, McDonald’s is known for its quick and efficientservice The company has world-class standards in place forquality, service, and cleanliness McDonald’s is committed toresponsibly sourcing product ingredients and providing efficientand convenient services to maintain cleanliness within itsrestaurants (Gennaro Cuofano, 2023)

(Imagine source: franchiseinfo.ca)

1 MC has large financialresourcesAccording toestimates, every dayMcDonald's has more than65 million people coming toeat breakfast and they alsoserve more than 100 millionburgers in the same periodof time (workstream.us).

1 Highly dependent onconcessionscommercialrights, limited directintervention

2 Strong reputation, build agood brand

imageMcDonald's is theworld's most valuable fastfood brand with anestimated 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 portionof 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 inapproximately 100countries (linkedin.com)3 International network, with

competition from otherquick service brands such asLotteria, KFC,

4 Mobile ordering system,convenient payment system,bringing many benefits tousers.Fast food chainMcDonald's has partneredwith food delivery serviceUbereats, allowing them tobetter reach consumers andmeet their convenience,speed, and easerequirements.

According to aBloomberg survey, theaverage price of a mealat some fast foodcompanies in Vietnam isas follows: KFC is 4 USD/1person, Lotteria is 4 USD/1person, McDonald's is 6USD/1 person

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

McDonald's costs nearly3 USD At that price,Vietnamese people canchoose Pho or vermicelli- dishes that are morecomplete, larger, andmore sophisticated.(brademar.com)4 High prices compared toincomeworkers.

1 Technology has developedand fast food ordering hasbecome popular

2 Workers' income is goingup

3 Have a large source ofpotential customers4 Trade barriers aregradually removed, creatingconditions for foreignbusinesses

5 Demand for fast food isincreasing rapidly(accounting for 70% ofpeople prefer to eat out atstores).

3 Changing consumerpreferences, especiallyaround healthy eatingand sustainability, whichhas led to sales declinesin some of MC's markets1 Many current and potentialfuture competitors

2 Requirements for itemquality food and service areincreasing

1 PRIMARY RESEARCH ONTARGET 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 CONSUMERRESEARCH

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

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

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

With 52.6% of respondents having an income of less than 5,000,000VND, it can be concluded that the majority of participants in thedata collection process belonged to the low-income orunemployed group This is likely to include students Following theabove survey items, we found that the majority of McDonald'scustomers are 18 years old or older, are customers with unstablejobs and are students Besides, with the average price of productsat McDonald's, it is considered to be relatively suitable forMcDonald's customer group and target customers.

PEOPLE KNOWN ABOUT JOLLIBEE THROUGH

82.5% know through social networks51.8% know through relatives and friends60.6% know when walking on the road

From here we can see that McDonald's does a very good job ofbringing the brand to users through social networks In addition,they also take advantage of many different advertising methods todirect McDonald's to more customer files.

Through the survey, up to 97.8% of participants will use McDonald'sin the future, which can prove that McDonald's strategies have beensuccessful 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 serviceis very high, this can come from the efforts of the store staff as wellas from the owner who has tried his best to bring the best qualitydrinks to customers Customer service, customer care, and servicestandards all leave a good impression in the hearts of customers.Therefore, the surveyed customers are willing to recommend therestaurant to friends and relatives.

The answer "Yes" accounts for nearly 90%.

2 CUSTOMER PERSONA

More than 50% of survey participants thought that McDonald'sproduct quality was good or very good However, nearly 50% ofpeople think that McDonald's product quality is just normal or evenbad This proves that McDonald's has created a delicious menu thatsuits the taste of a portion of the Vietnamese people However, thereare also many people who feel that McDonald's menu really doesnot suit Vietnamese tastes and McDonald's needs to improve this.Next is the product packaging, up to 71% of users feel it is good andrate it from 4 to 5 stars This shows that McDonald's use of paper forpackaging combined with unique designs not only createssatisfaction for users but is also friendly to the environment.

According to the survey, 50.4% of people rated 3 stars, 22.6% ofpeople rated 4 stars, showing that McDonald's locations are easy toaccess McDonald's stores are mainly located in crowded locationsright on main roads or in shopping centers That is suitable for userswho can easily search for McDonald's at any time when they wantto use it In addition, 25.5% of people think that these locations aredifficult to reach It can be said that because McDonald's does nothave a large coverage in Vietnam, with only 28 branchesnationwide, this also makes it easier for people who live far fromthat branch to access the store.

100% know through social networks37.2% know through OOH

26.3% know through traditional advertising

From here we can see that McDonald's does a very good job ofbringing the brand to users through social networks However, thereare still a few customers who know about McDonald's advertisingthrough OOH and traditional advertising.

92% have been7.2% have never

From 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 makesMcDonald's not successful in Vietnamis the price of this brand More than50% of people think the price is tooexpensive compared to their incomeas well as the price they want to spendfor a fast food meal This can beconsidered McDonald's biggest barrierto the Vietnamese market.

According to the survey, more than 50% of people appreciate theservice attitude and appearance of McDonald's employees This

Through the survey, it can be seen that they receive the most goodreviews about the service process Shows that they have put a lot ofeffort into providing good customer service McDonald's hasensured the service process for customers with 56.1% feeling okaywith the service process, 33.8% feeling satisfied and 8.6% feelingvery satisfied with the service process.

However, it should be noted that each customer's experience mayvary and there may be cases where absolute satisfaction is notachieved McDonald's needs to continue to monitor and improveservice processes to meet a variety of customer needs andmaintain a high-quality service environment.

PHYSICAL EVIDENCE

The fact that the majority of survey participants rated McDonald'sphysical evidence as good and good shows that McDonald's hasinvested and taken care of physical factors in its businessprocesses This can include attractive store design, comfortablespaces, and clean and modern equipment.

However, the fact that there are a few people who feel inconsistentwith McDonald's physical evidence is also worth noting This mayreflect differences in customer preferences and expectations.McDonald's needs to continue listening to customer feedback andworking to improve physical elements to meet a variety ofcustomer needs and desires.

From the survey, we can see the problems that McDonald's is facingthat is preventing the development of this brand from thriving inthe Vietnamese market.

3 CHALLENGES PROBLEMS

(Image source: Brandvietnam)Based on the survey of consumer concerns in Vietnam in 2020, wecan see that health is one of their top priorities 49% of surveyparticipants in Q1 and 44% in Q2 identified health as their mostimportant concern (Brandvietnam, 2020) This shows a clearchange in the mindset of today's consumers, who have begun topay more attention to maintaining and improving their health.

In this context, an important part of people's daily lives is food, andthis is also an area in which they are placing a lot of interest.According to our survey, 48.9% of survey participants said they feltthere was a need for improvement in McDonald's food This mayimply that consumers want their food to not only be delicious butalso have nutritional value and be safe for health With this trend ofincreasing interest in health and food, McDonald's will facedifficulties with their products because it is inherently a fast foodbrand and fast food is very unhealthy.

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 theneed for price improvements in their experience is important.Therefore, with prices higher than the average of domestic fast foodbrands, 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 verywell in advertising their products and promotions on socialnetworking sites Through powerful advertising campaigns, thisbrand has succeeded in increasing consumer recognition andunderstanding of its products and services because 100% of surveyparticipants know about it However, the problem comes from thelow evaluation of McDonald's promotions Although they have donewell in reaching customers, they have difficulty implementing

expectations The most obvious thing is that 65.7% of people wantMcDonald's to improve their discount programs Thereforepromotion is a challenge that McDonald's is facing and needssolutions to improve.