PGDM 20-22

GROUP MEMEBERS

Anshika Yadav
Avinash Potnuru
Isha Agrawal
Naveen kumar Bhataia

Topic for the discussion: Setting up promotional objectives

for McDonalds
 Abstract:

Accepting that we are answerable for the advancement of McDonald's 'sound menu'
crusade we are thinking about proper objectives that can prompts accomplish
greatest benefit at least expense.
Our Choice of Objectives

 To increase sales by…

 To increase profit by…
 To enhance overall positioning
 To gain new customers
 To increase overall brand equity
 To change attitudes towards McDonald's
 To increase average profitability of customers
 To increase percentage of 'heavy users' (frequent customers)
 To win back ex-customers
 To increase the cross-selling of products (more products per visit)
 To enhance customer loyalty (of existing customers)
 To improve staff morale.

2
1. From the above list, what goals you think McDonald's would have
as part of its repositioning project?

 To increase overall brand equity: McDonald's is likewise in the main ten most
important U.S. brands of 2021 dependent on brand esteem, with its image worth of 154.92
billion U.S. dollars setting it 10th on the rundown. The organization announced spending
approximately 650 million U.S. dollars on promoting worldwide in 2020. Therefore it is
important to maintain the brand equity all around the globe.
 Acquiring new costumers: McDonald's has made itself the best brand and connects the
customer with emotion, well disposed minimal expense the food chain business. They have a
tight hold for the client base and a minimum expense system. Further, they would be in
general expanding their business to bring more clients.
 To enhance overall positioning: McDonald's has made itself to be the customer
friendly in the fast-food business, with feasible price. McDonald’s have a narrow scope for a
customer base and a low-cost strategy. In recent years they have extended to broaden their
scope to attract and bring more customers
 To increase sales: Attractive marketing campaigns , Keeping up with their various taste
and menu, offering best services on digital platform to increase sales, delivery and take away
are the key pillars of McDonald's growth strategy in the present and coming years.
McDonald in future it has many strategies to increase their sales, innovation, technology.
 To change attitudes towards McDonald’s: For McDonald's to fulfill value creation
and choose its value, it performs marketing by segmenting its markets and consumers,
targeting the attractive segments, and positioning its brand accordingly. McDonald's
performs four types of segmentation: Geographic, Demographic, psychographic, and
behavioral_segmentation.
2. What would be their main two goals?

There two main goals would be:

 How to increase percentage of 'heavy users': Discounted prices and limited offers
that are offered by McDonald’s do not have a strong impact on heavy users because they
don’t eat much, don’t care about spending money and just want to hang out with friends. The
best strategy for heavy users that McDonald’s can do is to maintain the same great quality
and taste on familiar products and start provide more discounts to attract more customers.

 To win back ex-customers: winning back ex- customer McDonald's can

follow this process
A. Decide if they want them back because not every customer is an ideal customer. If the
customer that they lost was difficult to work with, then they may not be a good customer
to have. The best thing they can do at this point, is to make sure that they are leaving
happy and that they will continue to refer you.
B. Find out exactly why they left. If they are a customer that you want back, find out exactly
why they left. If they say price then you know there is disconnect between what you offer
and the value they perceive. No matter what the reason, ask at least two more probing
questions to find out exactly what you could do to improve the offer. You may not get
them back, but you will have information that you can use to save a customer who may be
thinking of leaving.
C. Adjust your offer. Your lost customer research might uncover some information that you
can use to create a new and more profitable offer for your customers. Document your
existing offer and the price paid for that offer, then collect other offer and price
combinations. You can survey your customers using a trade-off analysis technique called
conjoint analysis.
D. Take responsibility. If you made a mistake to lose them, ask them what they would need
to have to make them stay. That means that you fix what went wrong with no requirement
for them to remain as a customer.
E. Ask for permission to send them industry information. Create a marketing list that is for
 special prospects and past customers. This list should be used to send information and
education on industry topics that they are interested in.

3. What are the dangers of simply limiting promotional objectives to just

sales goals?

Whenever we see that the things are on sale, we tend to think that the product of McDonald’s

product or their offerings is not good. When consumers see something always on sale, they wonder

about that product’s quality. The buyers may start feeling that the McDonald’s Product is not of

good quality or is not appropriately priced.

Ineffective long – term success – because of the risks that sales promotions have to create price

sensitivity and potentially tarnishing the brand image.

 After sales promotion campaign is ended, customer who switched from competitor ‘s
brand might go back to their previous brand.

 Customer might only buy a product only for extra offers.

 Increased cost – advertising led to additional cost on the product which the community has
to pay. If McDonald’s will continue using promotional tools than their expenses will
increase which will lead to increase in their cost.

 Quality effect – some times because of this promotional tool company forget about the
quality they more focus on the increase sales. Consumers think due to these promotional
tools may be quality of the product may not be that much great as they were earlier.
4. Is it possible that some firms would implement a promotional campaign
that would have a negative profit impact in the short term? Why?

Marketing campaigns can be a fail or unsuccessful for a lot of reasons. Some of the the most
reasons are as follows, they might not be targeting right persons, or else you might not have done
enough research, or else you do not have the right goals, Or you might be not be delivering the
right content at the right time to the right person.

For example:
 Sabyasachi x H&M
Recently, Sabyasachi collaborated with H&M they introduced clothing, accessories, bags and
apparels. Sabyasachi being a premium brand in India, they are priced high, and it is not quite
affordable to everyone. Therefore, this collaboration gave everyone a chance to get their hands
on, the products.
When they introduced, the products, a saree and a shirt were too much into limelight, and they
were even trolled by people for being over pricy. This was all over the internet, and people
trolled them for the same.

 KFC
On the iconic TV show Oprah, KFC's biggest marketing blunder occurred. They began by
promoting a free voucher for a two-piece chicken meal with two separate sides and a biscuit to
viewers. The only requirement was that consumers obtain the discount from the Oprah website.