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MC Donalds
MC Donalds
MC Donalds
INTRODUCTION
• Segmentation strategy:
• The segmentation strategy of McDonald’s can be discussed under the
following heads.
•
•
• Geography:
• Geographically McDonald’s seem to have categorized the entire Indian
market as urban and rural markets. As a strategy for entering the Indian
market McDonald’s appear to have adopted the segmentation at the
micro level, by directing the entire focus towards only urban market.
McDonald’s India as of today caters only to the urban population in
India.
• There could be several reasons for this, like the rural eating
habits, their affordability and traditional approach towards food.
• Demography:
• Demographically the McDonald’s appears to have segmented its market
on the following parameters.
• Income level:
• in a market like India where a significant proportion of India’s population lies in
the lower income bracket, the price of the products becomes very critical. Now
the challenge was to provide quality products at prices affordable to urban
masses.
• The pricing of the products is done keeping in mind the wants of the middle
class and the upper middle class, the income category which has grown at a very
significant pace over the past few years. For example, the chain has a product
called Mc Aloo tikki costing Rs:20/, which caters mainly to the student
community whose pockets are not broad enough
• Age:
• The earlier strategy of the McDonald’s was to segment the market on the basis
of the age, by catering mainly to the kids and youth. However, now they are
trying to blur this segmentation and focus on the all age groups.
• Family:
• McDonald’s is now targeting the entire family by offering various incentives
packed product schemes like “family meals” at a very competitive price
BEHAVIOURAL SEGMENTATION:
• Occasions:
• Under this segmentation the McDonald’s has classified customers on the
basis of the frequency of their visits, into regular and occasional
customers. Now, to maximise the cluster of regular customers they are
coming up with ad lines like “BAHAANA KYA HAI” so that the
customers don’t look for a special occasion to visit the outlet.
• Current position in the Indian market:
• However in spite of adopting all of the above segmentation and
marketing strategies hard realities do exists.Nine years after the big mac
first set up in India, the burger gaint has yet to make a rupee as net
profit. It hopes to break even in a year or two. In India a Mac store
typically takes between 5 to 7 years to break even. Part of the reason for
its long break even period has to do with the investments required per
store in terms of equipment and infrastructure. Much of the process
control equipment that allows Mac to dish out burgers and other orders
within its super fast time has to be imported.
POSITIONING
Positioning
In adapting the General Market positioning of “America’s favorite fries” for the
Hispanic customer, it was determined to stress not only the irresistibility and
superiority of McDonald’s fries (“They are the best anywhere, you can’t resist them”),
but to add an element of family inclusivity; to stress that they are everyone’s favorite:
“Favored by ‘big ones’ (adults) and ‘little ones’ (kids)”.
McDonald’s wanted to revitalize the perceived superiority of their world famous fries
while simultaneously blunting aggressive competitive efforts by Burger King.
[Burger King had just begun market testing “new and improved” French fries.] To
help accomplish this, McDonald’s decided to use their partnership with the NBA as
the strategic “platform” for a special fries advertising effort. As such, the positioning
in the General Market evolved to “America’s favorite Guys enjoy America’s favorite
fries!”
MCDONALD’S
PRICING STRATEGY
•
• McDonald’s pricing strategy can be further analyzed under following heads:
•
• Product Line Pricing:
• McDonald’s offers a range of products and pricing reflects the benefits of the range. So one
can order just a Coke or a Coke with a Burger at additional price.
•
• Product Bundle Pricing:
• McDonald’s combines several products in the same package .For example one can buy a
McAloo Tikki alone or one can exercise various other options which give the customer a
range of products in a single basket.
•
• Promotional Pricing:
• Discounting a combination of products as one product is also a strategy which McDonald’s
follows. McDonald’s clubs three or four products together as one and price of this new one
will be lesser than the sum total of individual product.
•
• Value Pricing:
• McDonald’s has realized that Indian market is a price conscious market and this has forced
McDonald’s to provide value products. Examples are economy meal and value meal served
by McDonald’s in India.
PROMOTION AND
COMMUNICATION
STRATEGIES