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)

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

1 Introduction……….……… ……… 2

1.1 Background Of The Company……… 2

2 Mc Donald’s Marketing Strategy……… 2

2.1 Mcdonald Swot Analysis……… 2

2.1.1 Strengths of McDonald's……… 2

2.2.2 Weaknesses of McDonald's……… 3

2.1.3 Opportunities For McDonald's……….4

2.1.4 Threats For McDonald's……… 5

2.2 Overview……… 6

2.3 Mc Donald's Marketing Mix In VietNam Market From (2014 to 2015) 7

2.3.1 Product and Service……… 7

2.3.1.1 Product……… 7

2.3.1.2 Service……… 8

2.3.2 Price………8

2.3.3 Place……… 9

2.3.4 Promotion……… 9

2.3.4.1 Advertising……….9

2.3.4.2 Personal selling……… 9

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

3 Advice for Mc Donald's marketing strategy……… 13

3.1 Price: 14

3.2 Distribution: 14

4 Conclusion 15

5 Reference……… 15

1 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

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

2 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 9 percent, Wendy's and Burger King each 2 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

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

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

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

Sprite released a unique "Sprite 6 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 do 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

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 do 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

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