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¶ … marketing strategy of McDonald's
The message of healthy eating seems to have permeated our entire culture. The need to 'eat less and move more' is proclaimed everywhere in public service announcements. The White House has even instituted a campaign called 'Let's Move' to encourage healthy eating amongst young people. The obesity rate amongst young children is particularly worrisome, given that obese children are likely to grow into obese adults with chronic health problems. Yet the fast food chain McDonald's, which has long been criticized for its unhealthy food offerings, has been able to craft an effective marketing strategy that has enabled it to withstand its harshest cultural critics.
The first critical component of McDonald's marketing strategy is market segmentation. Although McDonald's products are popular all over the world, McDonald's is acutely conscious of the need to build a core audience and tailor its message to specific consumers. A key market segment is children. Although not actually purchasers of the food themselves, children can use 'the nag factor' to urge reluctant and guilty parents to take them to McDonald's...
Children can become consumers for life because eating fast food quickly becomes a habit.
McDonald's also targets minority communities, because these populations are growing at a rapid rate, tend live in neighborhoods densely populated with fast food restaurants, and like the budget-friendly focus of McDonald's. Recently, McDonald's "doubled the spots designated for minority franchisees on the national advertising committee, which advises on and approves ads. McDonald's also uses a disproportionate number of blacks, Hispanics, and Asians in focus groups" (Helm 2010). Advertisements prominently feature minorities and also stress the low-cost nature of McDonald's by promoting its dollar menu.
McDonald's has been diversifying its menu offerings with the intention of creating more regular customers and to deflect criticism about health concerns. Although most people come to McDonald's for the burgers and fries, McDonald's offers salads and low-calorie options to make consumers feel a little bit better about dining beneath the Golden Arches. To make moms feel virtuous when getting fast food for their children,…
References
Helm, B. (2010). Ethnic marketing: McDonald's is lovin' it. Businessweek. Retrieved from:
http://www.businessweek.com/magazine/content/10_29/b4187022876832.htm
McDonald's food you can't get here. (2013). The Chicago Tribune. Retrieved from:
http://www.chicagotribune.com/business/ct-biz-mcdonalds-food-around-the-world,0,5168632.photogallery
Retrieved from http://healthland.time.com/2011/10/04/fat-nation-fast-food-salads-arent-selling-but-thats-not-the-problem/
The bottom line is that by seeking to create operational efficiencies through process improvement, the company has been able to continually become more profitable and grow more efficiently than its competitors. Appendix A: McDonald's Financial Analysis McDonald's Corporation Ratio Analysis Profitability Ratios ROA % (Net) ROE % (Net) ROI % (Operating) EBITDA Margin % Calculated Tax Rate % Revenue per Employee Liquidity Indicators Quick Ratio Current Ratio Net Current Assets % TA Debt Management LT Debt to Equity Total Debt to Equity Interest Coverage Asset Management Total Asset
Marketing Justification and Marketing Strategy for the Launch of a Date Flavored Breakfast Cereal in Saudi Arabia The development and sale of a date flavored cereal to be sold in Saudi Arabia may have a great deal of potential. The cereal market in Saudi Arabia is the largest cereal market in the Middle East, and it is in a growth phase (ITP.net, 2006), while two major global breakfast cereal firms; Kellogg and
Lastly, there are also rather small communities of: Turkish, Greek, Arabic, and Jewish Marketing to ethnic minorities," n.d.). As Larry Light, McDonald's executive vice president and global chief marketing officer, noted at a speech to the Association of National Advertisers Annual Conference, in 2004, "Mass marketing is a mass mistake" (cited "Multichannel," 2005). What Light understood is that only through multidimensional, multi-segment marketing can organizations hope to compete in an ever
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There is also the potential to expand the product line beyond the initial Tablet PC to support more advanced and customized configurations through the build-to-order strategy. There is also a very significant upside potential with accessories as well, which could become very high margin in the future. Finally there are significant threats from Apple and others who also are seeking to create a dominant market position for themselves in