“Marketing in Action Case: Real Choices at McDonald’s”

“What is the decision facing McDonald’s?”

McDOnalds is facing a decision of how to approach a segment of their target audience while
competing with other fast food companies. The biggest challenge of the company is to find a
marketing strategy that appeals to the millennials.

What factors are important in understanding this decision situation?

Understanding McDonald's ultimate goal is important. They want to reach a population, but to
do so they will have to improve the quality of their food and outperform competitors. Some
factors are past marketing strategies, an assortment of intellectual predispositions, increased

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accountability and sunk results, unique contrasts, including age and financial status, and a belief

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in the relevance of proximity.

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What are the alternatives? rs e
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McDonalds have changed the quality of some ingredients, for example the quality of burger
meat. The meat would be fresh as well as the vegetables as well. In order to do this McDonalds
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will have to figure out a way in which they can produce fresh meat at such a higher level for a
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low price.
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What decision(s) do you recommend?

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Although it is true that McDonalds has social programs, it would be very positive for them to
increase their impact in the communities in which they are located. The first step is to improve
the quality of their products and then improve the quality of their packaging to be much more
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sustainable. Technological updates are very beneficial but so is implementing packaging that are
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sustainable. McDonald's has some sustainable packages but still has a long way to go in this area
to make all packaging reusable and eco friendly.
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What are some ways to implement your recommendation?

Some ways to implement this recommendation is to change the plate packs. For example, salad
containers, straws and plastic bottles. These can be replaced with recyclable and reusable

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 packages such as compostable fiber hinge and biodegradable plastic-free. The target audience
values companies that care about the impact they have on the planet either directly or indirectly.
A good way to implement these new packages is to let the consumer know about these upgrades
and the reasons why, this will help the customer become familiar with and receive the new
packaging.

Digging Deeper into the Case

7-36. What are the challenges of marketing a product that has appeal to several generational
market segments?
A challenge that McDOnalds face is having to market a product to different generations. This is a
challenge because they all have different approaches, way of thinking and priorities. Marketing
has to be diverse, consumers feel better when they see themselves reflected in a brand. Therefore
campaign promotions should be intencional and inclusive. One of the biggest challenges is to

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market to all generations without being too generalized. It will benefit McDOnald to take into

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account the different feedback from all their audience of different ages.

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7-37. Besides age/generational segments, what other market segmentation approaches could
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McDonald’s use?

McDOnald can use a local approach based on the population of the community in which they are
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located. By having a clear idea of who their neighbors and consumers are, they can create a
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concrete marketing plan. For example, in a community where there are many offices in the
surrounding area, workers tend to eat out. McDonald's can use this and offer discounts to
employees as they are more likely to shop around when they can save money. Using the
employee discount strategy in a corporate area can be a good approach.
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7-38. What marketing mix tactics could the company use to appeal to the additional segments
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you identified?”
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Local marketing is a targeted small and clearly defined strategy. The company can mix product,
promotion and price. Since McDonald's is working on improving its quality and price it is a good
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strategy to use these new improvements in promotions. These promotions should have a
highlight on good quality at the best price which will attract the attention of potential users.

Organizations using this technique strive to generate a strong local presence, and targets can
include any individual or organization within that small area.

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