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Strategic Management Presentation
Strategic Management Presentation
• McDonald's marketing strategy has helped the company achieve the success it commands today. From the start
of its growth, the company wanted to build strong brand recognition and market penetration to help promote its
growing franchise business. As the company's number of customers grew, they did more research on
demographics to help them target easily. McDonald's marketing strategy includes investing in online and offline
marketing methods that spread its clear, brand-centered messages to a large audience and using other channels
like its dedicated mobile app to reach and keep loyal customers.
• McDonald's business strategy is a specialization strategy. The organization is built on a foundation that gives it a
competitive advantage and a business strategy that is consistent, flexible, and specialized. McDonald's niche
market is people.
MCDONALD'S CONSUMER PROFILE:
• McDonald's has a wide range of customers because it uses mass marketing and has low prices at fast-food
restaurants. Most of the chain's customers are between 35 and 54. Buyers, both men and women, often have low to
average incomes. They are known as brand-loyal casual diners who spend an average of $7.79 each time they eat.
• Many of these customers are parents of young children who like that the brand's atmosphere and food are good for
families. This market group was first targeted in 1979 when Happy Meal, a set of children's meals with a free-themed
toy, was introduced.
• McDonald's website wants to create a "pleasant, entertaining environment for everyone to enjoy." This shows how
many different kinds of people it wants to attract
COMPETITIVE STRATEGY:
• McDonald's generic strategy is cost leadership, which builds competitive advantage through cost minimization. The company has standardized processes designed to maximize efficiency,
minimize costs, and ensure profitability despite the use of competitive selling prices
• Cheat prices is McDonald's main competitive advantage. The company is engaged in an extensive utilization of economies of scale to achieve the cost advantage. True to 'fast food' format of its
restaurants, McDonald's is famous for the speed of customer service without compromising the quality of the service.
• monopolistically competitive
• Fast food restaurants, hotels, gas stations, clothing stores, medical practices, legal firms, and hair salons are several industries that are monopolistically competitive, assuming
they locate in areas with other companies that serve the same clientele.
• Discussion of the environmental factors impacting McDonalds, placing emphasis on the key drivers. Environmental effects got
important impact on company’s global and local business platform. As areas like social, political, environmental, economical, and
culture are very sensitive and critical that’s why, those must be addressed appropriately for company’s success. On the other hand
strategy is really important for company because it’s a direction and scope of company over the long time.
• McDonald's plans for the future(vision):
• McDonald's plans to reimage around 650 restaurants in 2017 to the Experience of the Future model, and when combined with previously
modernized restaurants, the U.S. will have around 2,500 locations. By the end of 2020, the company intends to have most of its U.S. free-standing
restaurants updated to this design
• McDonald's uses a value-based pricing strategy and strives to provide value to its customers across the menu, and also
offers a $1-3 menu. In essence, their goal is to keep prices as low as possible.
• Targeting refers to selling things to certain groups determined through segmentation. How well does McDonald's choose and target the
proper demographics? Marketers should iterate between establishing corporate culture and having knowledge about segment size and
anticipated profitability, according to experts. McDonald's, on the other hand, according to its marketing director, seeks out certain
parts of its target demographic and then tailors or positions its products to each category. McDonald's does not employ a Big Mac
manager or a salad group, unlike other large packaged goods firms that have brand managers for their numerous products.
• Stages in a Product Life Cycle of McDonald's
• Introduction
• Let's say a product is ready to enter its PLC. The first stage of the product life cycle is the introduction stage. In this phase,
the business will put out a substantial investment in advertising. The business owner will also begin marketing campaigns
that focus on making its target market aware of the product and its benefits.
STAGES IN A PRODUCT LIFE CYCLE OF MCDONALD’S :
• Growth
• The second phase is the growth stage. Before a product reaches this stage, it needs to gain success in the first stage. Otherwise, businesses will terminate
it before they lose any more money. If the product is successful in its introduction, you'll see growth in demand. In this stage, you'll also observe an
increase in production and expansion in product availability.
• Maturity
• Maturity is the third and most profitable stage. This is where the costs of producing and marketing the product take a downward turn. The consumer
base is already aware of the product. At this point, most of the marketing is done by word of mouth, which is the most cost-effective type of marketing.
• Decline
• The last phase is the decline stage. In business, expect that your competition will also follow your lead if it is profitable. Other companies will emulate
your success by producing the same products with more enhancements and at lower pricing. When they do, you'll start losing market share. This is the
time to introduce a new product to stay ahead of the competition and re-interest your loyal customer base.
• Positioning strategy of MacDonald's :
• The term "positioning" refers to the process of selecting the marketing mix that is most suited to the target client group. McDonald's employs adaptive product
positioning, which entails the corporation redefining products and services regularly in response to market developments