McDonald's Company is a truly international company.
Inthe global fast food market grew by 6. The compounded yearly growth rate from to was at 5. The market is comprised of many independent restaurants, as well as large chain outlets. To a reasonable extent, competition is intensified by the low entry costs and the ease with which already established companies can increase volume or grow outlet numbers.
Within the restaurant industry, players focus more on fast food where profitability is dependent on high Mccafe analysis essay activities.
Competitors range from fast food restaurants, traditional fish and chips outlets, coffee shops, and other fast food businesses Brotherton, Key Note, Figure 1. Currently, some of the outlets are run by the company, while most of them more than 26, outlets are franchises.
These franchisees are required to pay a fixed fee plus a certain percentage of the generated revenues. They operate basically as independent entities within a national brand structure where they purchase various inputs from the approved contractors and also determine their own prices.
After the failure of this first attempt, the firm experimented with a joint venture strategy in Netherlands. The company decided to abandon its old strategy where stores would be run by local entrepreneurs and instead engaged a combination of both local and expatriate partners Marketwatch, This made way for the second phase of entry, which was centred on adapting versus changing local culture.
For example, in India, the company established as a joint venture partnership. Marketers decide the right mix to use where they can alter the final product or service offerings to customers by varying the components of the mix.
An important matter when it comes to international marketing relates to how a firm adapts its products across national boundaries. This is a very important marketing aspect because the company must ensure that its global brand is preserved.
However, according to Thomadsensome variations are necessary to make sure that the different needs of consumers in different regions are addressed. This is necessary because consumers in different areas have diverse needs, tastes and preferences, and different consumption and buying habits.
The Indian market consists of a large number of vegetarians. Therefore, the company found it necessary to modify its product offerings to cater to this market segment.
The company has made sure that the separation of the two food categories vegetarian and non-vegetarian is maintained. Applying a differentiation strategy can help a company to control price competition to some extent Thomadsen, The brand and the format are globally consistent; however, certain customer-oriented components like individual menu offerings and service personnel are tailored to suit local preferences.
Price Price is another very important element of a marketing mix. This refers to the amount that consumers are required to pay so as to obtain products and services.
Therefore, the company has developed a pricing structure to support this objective. Historically, the company has had several value bundling and pricing tactics such as Combo meals, Happy Meals, Family Meals, and others. The dollar menu is one of the most significant price strategies adopted by this firm.
In general terms, place refers to the mechanisms distribution, intermediaries or channelswhich enable the firm to supply its products to the final consumers Thomadsen, It has used several advertising formats such as print publications, billboards, radio, television, and the internet.
A very effective strategy that has enabled the company to differentiate itself from other companies is invention of the Ronald McDonald character. This character was invented to symbolize the company and has become a recognizable figure.
The company also positions itself as a family fun restaurant by setting up play areas in its outlets. Its international marketing strategy employs several tactics, which has enabled the company to emerge as one of the market leaders in the fast food restaurant industry.
The success of a business greatly depends on the effectiveness of the strategies it adopts. The initial strategy for the company involved taking standardized American practices to other parts of the country. The initial resistance and failures that it experienced forced the company to change their strategy and instead adapt itself to the different preferences of its target market.
Consumer Behavior in Travel and Tourism.Mccafe Analysis McCafe was introduced to the McDonalds business model at a time when the fast food industry, and dining out as a whole, was on a downslide. Consumers were trying to cut back and save money – dining out was an easy way to do that.
Read McDonalds Case Study free essay and over 89, other research documents. McDonalds Case Study. CASE STUDY of mcdonald's Part One: Executive Summary Introduction and Challenge McDonald's is an ever-growing corporation that has penetrated markets.
View Full Essay. McDonalds Case Analysis and finally the menu will be improved with the introduction of new coffees and fresh baked goods.
However, the McCafe will have a low entrance barrier because the concept is not very hard to imitate by competitors. To set them apart from. Ques: Prepare a Marketing Plan of Mc café which contains Micro and Macro environmental analysis, Positioning strategy and Buyer behavior affecting the marketing activities of Mc café.
Mc Donald’s is a premiere fast food chain in the world. It will launch a new product in the super markets.
Mc. The new “formats”, McCafe, having Wi-Fi internet links should help in attracting segments. Also installing children’s play-parks and its focus on educating consumers about health, fitness.
We will write a custom essay sample on SWOT analysis of McDonalds specifically for you. for only $ $/page. Order now. Search. Related. McCafe: SWOT analysis Essay SWOT Analysis of McCafe McCafe has a number of strengths as it is a part of McDonalds which is the number one fast food company in the US and offers diverse services in countries around the world, with annual sales of $ billion and highest industry profit margin of .