MacDonald’s Australia Marketing Plan For 2017-2018: Implementation, Challenges, And Solutions

Answer

The McDonald’s Australia is a successful fast food restaurant. The company has a reputation for quality food. Indeed, the company is one of the leading fast-food chains globally. In Australia, the company provides its customers with value for their money (Boelsen-Robinson,  Backholer, & Peeters, 2015). The company has a rapidly developing consumer brand. Additionally, the company is growing customer base. MacDonald’s Australia provides a perfect place where families can come together to enjoy the delicious meals (Zarkada-Fraser & Fraser, 2015). MacDonald’s Australia has an operating system based on the uniformity to yield consistent quality. The company has endeavored to form a strong partnership with its suppliers as a way of improving the operating system innovatively. The company’s franchises will promote in the local market (De Jong et al., 2017).

MacDonald’s Australia has developed new products for the local market (Osman, Johns, & Lugosi, 2014). The company has a constant drive aimed at constancy and improvement of high quality. MacDonald’s Australia is striving to enhance its economics of scale, purchasing and advertising, innovation, and generating new ideas and bringing new products for the market (Richards et al., 2015). The company shareholders are committed to maintaining a collective emphasis on high-quality standards. Challenge

Initially, MacDonald’s Australia used the grilled-direct system. Several customers have been complaining about the quality of the products (Zarkada-Fraser & Fraser, 2015). Notably, customers have complained about the quality of the chicken which they said was not crispy. According to the customers, the chicken was left in the warming bin for much longer time. Further, the patty used on the burger is not always juicy because they are not always hot (Ashburner, 2014). Another problem that is associated with MacDonald’s Australia is the access to the McDelivery. Information about the exact location of the customer is often wrong thereby hampering the business opportunities (Zarkada-Fraser & Fraser, 2015).

MacDonald’s Australia has some ways of addressing the identified challenges. MacDonald’s Australia utilizes the concept of “Made for You” system. Additionally, the company makes or prepares food to the actual customer’s taste and preferences, demand. In this case, each customer is provided with the burger only when it is required (Ashburner, 2014). The company has invested in the standardization of the assembly of all sandwiches. It is imperative to mention standard assembly of sandwiches requires minimal decision-making. As a matter of fact, there is need to engage in behavior change. The behavioral change should be focused on enhancing the standard procedure, equipment, quality, and reducing food wastage (Zarkada-Fraser & Fraser, 2015).

Company Analysis

Goal:

The first goal of MacDonald’s Australia is creating a solution for improving the kitchen layout. MacDonald’s Australia is developing the operational procedures for improved performance and enhancing the customer experience (Thornton et al., 2016). In essence, the MacDonald’s Australia is determined to have satisfied and happy customers.

MacDonald’s Australia is a customer-driven company. It is working hard towards offering the Australians with the combination of great quality food, tasty food at affordable prices.

MacDonald’s Australia has several values that guide its operations. These values include teamwork, integrity, customer focus, and excellence (Osman, Johns, & Lugosi, 2014).

Situational Analysis

MacDonald’s Australia has several strengths that make it one of the most successful and leading fast-food company in Australia. First, the company produces quality products and services. These products and services are produced in a clean environment and stored in clean stores. Secondly, the company offers right services to its customers. The company can serve the customers much faster as compared to its competitors. MacDonald’s Australia has a strong belief in taking care of the customers in promoting effective sales. Third, the company possesses that well-known trademark and patents. Fourth, the company has enormously invested in strong branding. The company uses well-known colors, slogans, logos, and other images (Zarkada-Fraser & Fraser, 2015). It suffices to point out that the critical part of the company’s brand is the “M.” This logo is also referred to as “The Golden Arches.” Fifth, MacDonald’s Australia provides the nutritional information on the packaging and thereby helping customers to evaluate and assess what they are eating. Sixth, the company has good performance and strong international presence. Further, the managers are provided with specialized for increased productivity (Peterson, 2015).

MacDonald’s Australia has numerous flaws. These shortcomings include loss of customers as a result of fierce completion. Secondly, there is a high rate of staff turnover. Even the top management do not work for the company for long. Third, MacDonald’s Australia lacks the access to very important distribution channels. Further, MacDonald’s Australia lacks the access to key natural resources that would have otherwise enhanced its products and services.

MacDonald’s Australia has invested in modern technology (Peterson, 2015). Further, the company has invested in innovative personnel who help in creating new products and services. Another opportunity for the company is the growing customer base in Australia. As a matter of fact, there is growing demand for the MacDonald’s products and services (Brindal et al., 2014). Another opportunity for MacDonald’s Australia is enhanced joint ventures with retailers for product distribution.

MacDonald’s Australia is faced with competition from other fast-food companies in Australia. Another threat to the business is the government policies that affect production and distribution of products and services. There are also continued changes in the taste and preferences of customers. These changes influence the level of productivity of the company (Confos et al., 2016). There is also the problem of global recession and persistent fluctuations in foreign currencies.

MacDonald’s Australia has a customer base with various demographics. Statistics have shown that 20% of the customers are between 1-15 years, 30% of the customers are 60 years and above while 50% of the customers are in the age bracket of 16-59 (Peterson, 2015). The statistics indicate the age of customers who eat at MacDonald’s Australia on a daily basis. They take breakfast, eat lunch, and dinner.

MacDonald’s Australia is actively engaged in corporate social responsibility to improve that well-being of the community. The company runs a charity known as the Ronald McDonald House Charities. The donations are meant to support different needy people in the society (Peterson, 2015). Through charities, the company has been able to win customer loyalty in various quarters. Engaging corporate social responsibility is important because it enhances the image of business. Therefore, due diligence should conduct in doing corporate social responsibility activities (Rollins, 2014).

Customer Analysis

MacDonald’s Australia has developed mechanisms through which customers can make decisions regarding their needs and wants. It is crucial to point out that businesses ought to allow for the participation of customers in determining the nature of products and services that they require. Customers also make decisions as to whether they should buy Mcsaver meals and the coupons.

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Strengths

The business has several strengths as discussed in this marketing plan report. First, the company is boasting of risk diversity. Secondly, the company controls a significant market share. Thirdly, the business has a strong supply chain that ensures efficient distribution of the products. Fourth, the company is at the forefront in the promotion of ethical business conduct. Fifthly, the company has hardworking staffs that are attentive and listens to the needs of the customers. Sixthly, the company offers a low-cost menu that is intended to attract and retain customers. Seventh, the company is engaged in numerous promotional activities. Lastly, the company has developed rigorous safety standards to ensure that food is protected from contamination.

The company has not employed much of the modern technology. As such, most of the products take much time to be ready for the markets. There is also the problem of unhealthy food image that bedevils the company. Just like MacDonald’s Australia, the fast-food company is faced with a high rate of employee turnover (Thornton et al., 2016). Further, the company is losing most of its customers as a result of stiff competition. It is imperative to point out that for businesses to acquire the competitive advantage, the business environment ought to be impeccable.

The company hopes that with the growing and emerging health trends among its customers, the sale volumes will continue to increase. The company is equally innovative (Bransgrove & Popplewell, 2015). This will be critical in addressing the needs and wants of the customers. Further, the company plans to strengthen the value offering and proposition designed to encourage customers. The advent of improved technology has helped in increasing production efficiency.

There have been sustained campaigns by health officials who claim the fast-food joints are a threat to human lives. These campaigns are anchored on increased cases of diabetes, obesity, heart attacks influenced by high cholesterol level (Thornton et al., 2016). Further, the business is threatened by fluctuations in foreign currencies and global recession (Ashburner, 2014). Most of the businesses are producing same flavors and products hence threatening the uniqueness of the business.

It is worth noting that market segmentation has to do with categorizing customers in various groups. Customers with similar characteristics are thus grouped together. Market segmentation is important because it assists businesses in appreciating the market dynamics and trends (Thornton et al., 2016).

MacDonald’s Australia offers products and services based on the geographical locations. The kind of foods produced is dictated by the culture of the people (Baker et al., 2017). Understanding cross-cultural issues are important in addressing the specific needs of customers. In this regard, MacDonald’s Australia endeavors to produce delicacies that are enjoyed by the Australians.

In this segmentation, the customers are categorized into variables such as nationality, race, gender, age, region, family size, and family cycle. As a matter of fact, for MacDonald’s Australia to offer the best services, customers are grouped into categories mentioned above as a way of understanding their needs. Several studies have revealed that treating customers according to their specific demographic and psychographic means attracts and retains them (Ashburner, 2014). Further, appreciating cultural differences among customers is important in providing goods and services that meet their individual and group needs.

In this segmentation, the consumers are grouped according to the nature of benefit sought, uses, attitudes, knowledge and the responses towards the products of the company (Lamb et al., 2015). It suffices to point out that one of the ideal ways of segmenting customers is based on the benefits sought from the products (Baker et al., 2017). In this case, MacDonald’s Australia has segmented its customers accordingly so as to address the needs of each group effectively. Some customers seek for prestige when they decide to buy certain products and services.

MacDonald’s Australia had recorded much success when it implemented the “Plan to Win” strategy. This strategy focuses on diverse crucial aspects of the business. These fundamental aspects include providing value to customers on a daily basis, innovations through creating new ideas, increasing customer traffic, re-imaging the company, and improved marketing campaigns (Thornton et al., 2016). The MacDonald’s ‘Plan to Win” strategy is anchored on four goals meant to increase productivity and competitive advantage. First, the company is aiming at acquiring more customers (Bransgrove & Popplewell, 2015). Secondly, the aim is to influence the acquired customers to frequent the company and buy its products. Third, the company is seeking to create enhanced brand loyalty. Lastly, there is the desire to increase the profit margins.

Increasing Restaurant Visits

The fact that MacDonald has positioned itself as a low-cost restaurant will help in attracting and retaining more customers (Bransgrove & Popplewell, 2015). This will be integral in increasing the client’s traffic. Evidence shows that customers prefer buying products and services where prices are lower (Lamb et al., 2015). In this case, the restaurant will continue to position itself the cheapest alternative for customers in Australia. There will be enhanced advertising both in print and the electronic media.

There is need to create a strong feeling of value for money among customers (Taylor, 2015). MacDonald’s will release a modular value meal. By this, it means that customers will be treated to increased freedom and low prices. The customers are given the freedom to make decisions the kind of meals that they want to buy. Further, the traditional menu choices will emphasize on a trade-off between prices and ordering freedom (Antoniolli, Atkinson, & Palmer, 2014). On the other hand, that value menu will serve as all in one. This will enhance the customers’ perception.

There is the need to continue churning ideas related to creating and developing the new menu items. There will be more ordering options for the customers (Lamb et al., 2015). It is worth noting that new menu items will attract more customers as they will be looking to sample and explore these foods.

MacDonald’s will engage in elaborate marketing campaigns aimed at informing the customers of new products and services (Bransgrove & Popplewell, 2015). The marketing campaigns will be carried out through well-organized advertisement. The advertisement will be done through the mainstream media and the internet. Social media is of paramount value in marketing (Baker et al., 2017).

There is the need to re-engineer MacDonald’s Australian brand. This can be improved through the understanding of the brand power (Anaf et al., 2017). MacDonald’s Australian brand will continue to focus on the brand identity. Brand identity refers to characteristics that help customers to recognize the brand in the market. Brand familiarity has to do with making the band to be known and trusted by the customers (Lamb et al., 2015). Brand specialty is to be attained through ensuring that the MacDonald’s products are of high-quality as compared to those of its competitors. There is the need for a positive interaction with the company.

MacDonald’s Australia has several marketing objectives. First, the restaurant is looking to expand the current customer base. Secondly, the restaurant is focusing on achieving greater sales volume through intensive marketing.

MacDonald’s Australia has positioned itself in the food industry as a leading producer of the fast-foods (Theodore & Germann, 2014). Additionally, the restaurant is the leading fast-food maker in Australia and beyond. MacDonald’s Australia has a competitive advantage in the fast-food industry.

Pricing

MacDonald’s Australia must strive to remain the cheapest fast-food restaurant in the country so as to continue enjoying its current position. As a matter of fact, the restaurant must operate at the lowest cost in the fast-food industry (Jafnan, 2017). In circumstances where the MacDonald’s Australia is faced with the stiff competition should to temporarily sell its products and services at a lower price (Osman, Johns, & Lugosi, 2014).

It is most be noted that for the MacDonald’s Australia increase its customer base; there is the need to contract more retailers to enhance product distribution (Probst & Cunningham, 2015). Developing a proper distribution channel is essential promoting and increasing the sales volume. MacDonald’s Australia has to change and revolutionize its entire supply chain. The company expects that its franchisees and suppliers to be committed to increased productivity (Krishnaswamy, 2017). The commitment needs to be focused on experimentation and adherence. MacDonald’s Australia should implement a smooth chain of suppliers. There will create a balance between the franchisees and the corporate management (Anaf et al., 2017). The MacDonald’s corporate management is meant to create an entrepreneurial spirit aimed at adding value.

It suffices to note that the current promotion adopted by MacDonald’s Australia is the push the strategy (Buckan, & Gunasekara, 2015). The business uses its marketing team to promote its products and services. This marketing plan that is being proposed for the business is the pull strategy. The pull strategy involves utilizing more resources on promotion and advertising activities to the potential customers. The pull strategy will concentrate resources on advertising on banners, posters, radio, and newspapers, and the internet (Scholz & Smith, 2016). The overriding message in the promotion and advertisement will be the high-quality and affordable products from the company.

MacDonald’s Australia will have to produce quality products to continue enjoying its position in the market. The products need to reflect the needs of the customers (Osman, Johns, & Lugosi, 2014). There should be a high level of hygiene. Furthermore, the products should cater for the diverse needs of the customers (Lindsay et al., 2013). It is imperative to note that MacDonald’s Australia should try to adapt to the changes in the industry. The adaptation can be achieved through accomplished designed processes of innovations (Bransgrove & Popplewell, 2015). It is important that the company involves all its franchisees and suppliers for improved performance. In Australia, MacDonald has laid down strategies for improving the chain’s fries and chicken quality and consistency. The company has achieved this improvement by moving from raw to frozen fries. The company has high productive employees (Anaf et al., 2017). MacDonald’s Australia has introduced breakfast for its customers. By doing this, the company has extended its business hours.

The implementation of this marketing plan will be guided by the following milestones.

Advertising	Commencing date	Closing Date	Budget	In-charge
Completion of marketing plan	1/June/2017	20th/June/2017	$5,000	John
Forming strategic relationships	14/July/2017	29/July/2017	$3,000	Andrew
Advertising	1/August/2017	2/September/2017	$12,000	Walter
Public relations	12/September/2017	12/October/2017	$1,000	Wardprose
Total			$21,000

Conclusion

A marketing plan is imperative for MacDonald’s Australia to become more productive. By developing a market, MacDonald’s Australia is in a position to identify potential competitors and lay strategies for warding off the competition.

References

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