The purpose of this report is to enlighten the reader about the situational analysis of the company McDonald’s Company based in New Zealand. The report explains about the background of the company along with its internal analysis, further, it also talks about the external environmental analysis of the company present in New Zealand. The impact of technology in initiating the business functions of McDonald’s along with the segmentation and targeting strategies of the company are discussed in the report. McDonald’s is a fast food restaurant chain present in different parts of the world. The company was founded in the year 1955 by Ray Kroc (Dolnicar, Grün, & Leisch, 2018). More details about the report are discussed below:
McDonald’s was first opened in the year 1955 in Des Plaines and from then it started its business functions and progressed expendably. The company was opened in New Zealand in the year 1976 and by the end of 1978 McDonald’s opened 5000 restaurants worldwide. In New Zealand, McDonald’s is placed in Greenland, Auckland (McDonald, & Wilson, 2016). Further, more internal details about McDonald’s New Zealand are discussed below:
The vision statement of McDonald’s New Zealand states that they want to achieve the position of world’s best quick service restaurant. The company aims to provide outstanding quality of food and services so that they can make every customer smile.
The mission statement of McDonald’s New Zealand is that they want to be their customer’s favourite place and way to eat. The worldwide strategies of the company are aligned with the global strategy that is called Plan to Win (Madar, & Neac?u, 2014).
The corporate strategy of McDonald’s is to do the right thing and provide the best to the customers and community they serve along with the employees of the organization. The company has strong corporate culture and values the global youth employment as well. The corporate culture and values of McDonald’s states that they want to achieve unique level of quality, cleanliness, services and values (Allen, & Carlson, 2018).
The company serves a wide variety of food and beverages to the customers in the target market. Products offered by McDonalds are hamburger, fish, puff, beverages, pork, chicken, desserts and breakfasts.
In the current environment, McDonald’s is attaining extensive growth due to high volume of sales. The company has positioned themselves at a pocket friendly family restaurant with good ambience as well due to which every person comes in the restaurant. The current situation are working in favour of the company as it has a net worth of $104.42 Billion in the market. Marking its presence in more than 36000 locations, the company has 853 million shares outstanding (Popescu, & Iosim, 2015).
There are various core competencies of the company McDonald’s, that helps them in attaining a dignified position in the target market. Secret spices recipe is the unique core competency of the company that the competitors are unable to imitate. Resulting in which, the company earns competitive advantage in the target market. Further, core intellectual assets also helps the company to succeed in the target market. The employees of the company work in such organized manner that the customers get fast delivery of food along with quality (Wu, 2018).
The competitive advantage of the industry leader includes nutrition, innovation, convenience and affordability. The company earned advantage in the market by working on their weakness more than strengths. Thus, the company earned key competitive advantage due to these factors. It also includes value added services, quality and hygiene.
The primary mascot of the company Ronald McDonald has helped the company position themselves between the right types of customers in the market. The company is sixth most important brand in the current environment. Uniform marketing strategy helped McDonald’s in branding their products (Rowley, & McMurtrey, 2016).
The Conservative Party and left-leaning Labour Party present in New Zealand dominate the political aspects of the country. The Labour Party of the country implements legislations, public work program and other related rules and laws in the country. The politics of New Zealand has always been stuck with the only two parties that are the Labour Government and National Party. The labour laws of the country are strict and the labour forces are expensive for the government as well. The legal regulations of the country also states that the governments of the country follow strict policies in in regards to multinational companies entering in the country (Telang, & Deshpande, 2016).
New Zealand works with an excellent economic capacity as the per capita income of the country is positive as compared to other nations. The population of the country is about 7 million so there is a great market for the companies as well to capture. The prices of the product are economic and products are easily accessible in the market as well. This aspect increases the circulation of money in the country. The country has low inflation rate and the rate of unemployment is considerably low. Therefore, overall it can be said that the GDP of the country is prosperous and growing as well (Mathur, 2017).
The culture of the country states that the people are very hard working and honest in nature. The people in this country works with an aim to create balance in their lifestyle by working and earning money and at the same time having social fun as well. The country comes on the fifth position out of 187 countries present in the mix of long and healthy life, opportunity of education and a decent standard of living. The people different lifestyle in the country on the basis of their religion or the area in which they live (Kane, 2016).
The country has its own educational system that is being operated by OECD for the international student assessment. The country has seventh best education system all around the world. The country uses technology in various fields so as to upgrade the interest of the country. Technology is used by the companies in initiating clean environment and clean transportation facilities as well. The companies present in the country aims to reduce the use of natural resources in the organization due to which they make use of such efficient technology find the best alternative for the business (Emerson, & Prang, 2016).
Thus, the above mentioned are the given factors that can affect the activities of the country in New Zealand. Overall all the factors can enhances the sales process of the company but the can decrease the growth rate if not researched wisely.
There are many organizations present in the quick service restaurant that directly competes with the fast food chain McDonald’s. The major competitor of McDonald’s are Burger King and KFC. Further, analysis of these competitors is discussed below:
Burger King: The Company was originated in the year 1954 in Miami, Florida. The company in currently present in 100 countries with more than 15000 locations. Just like McDonald’s, Burger King is also gaining specialization in creating family oriented environment in their restaurants and providing similar products and services as well. Burger King has offered itself as a force to reckon with in the fast food industry (Olsen, Popovich, & Thompson, 2016).
KFC: It is the second largest fast food retail chain store after McDonald’s in the international market. The brand is famous for serving delicious chicken and burgers. The company was founded in the year 1930 and until now, the company has opened around 20000 branches in more than 120 countries (Lee, & Lambert, 2017).
Starbucks: World’s largest coffee house chain is the biggest indirect competitor of McDonald’s. The company operates around 27399 stores in 75 different nations. The company is famous for serving different types of coffees worldwide. Starbuck is present in the same industry but it has different core business from McDonald’s. The company is second highest food chain restaurant present in US that is working behind McDonald’s. Market capital of the company is $68.7 billion.
It is important for every organization to initiate social responsible activities with an aim to satisfy the environment and the stakeholders of the company as well. The company McDonald’s adequately follows the CSR activities of the company. The company focuses on serving healthy food to the customers in healthy environment as well. The company also tries to uplift the interest of weaker section of the society by contributing a share of their profit in their living. Ronald McDonald House Charities is a charitable institution that supports the programs initiated for the safety and improvement of health of children (Leidner, 2015).
Digital media plays an important in influencing the business functions of the companies in the current environment. Use of technology in the business has paved ways for the companies to contact the people that are present in different parts of the world. Digital media and electronic marketing refers to the process of marketing under which products and services of an organization are provided to the customers through digital channels. Key objective of digital media is to promote the brand and increase the sales of the company as well. The company McDonald’s make use of different social media channels to initiate their business functions in a diversified target market. The company has 27 million fans on Facebook and its local market pages have attracted several likers from the community (Young, & Page, 2014).
The company is not that much frequent social media but the internet has a great impact on the information shared by the company. The company makes use of social media to attract new customers and talk about the new product introduced in the market. The Twitter page of McDonald’s promotes the image of the company in the market and involves it in current topics of discussions as well. Further, the company make use of their Pinterest account to provide tempting and beautiful images of the food products served along with various functions of the company. In order to increase the effectiveness, the company post such information on digital media that are easy and understandable by the client as well. The company manages customer relationship with the employees and the customers with the help of digital media (Te, Muller, Wyder, & Pramono, 2018).
|
Type of Segmentation |
Basis |
Target Segment of McDonald’s |
|
Geographic |
Region |
The company targets both domestic and international market. However, the biggest market segment of the company is United States market. Further, the company has great scope to capture other unexplored international markets as well (Povod, Roldugina, & Dmitrienko, 2016). |
|
Demographic |
Age, income and occupation |
According to this type of segmentation, the age group that is targeted by the company is between 8-45. These are the people who prefer eating from restaurants like McDonald’s. Further, on the basis of level of income, the company targets the people that have low or middle income level. As the products served by the company are affordable so they target the people who can easily buy such products without hurting their wallet. Lastly, on the basis of occupation, the company targets the people who are employees, students and professionals. These are the easy going people who have breakfast or brunch from McDonalds on a daily basis (Hamilton, & Réquillart, 2017). |
|
Behavioral |
Degree of loyalty and personality |
According to the degree of loyalty, the company targets both type of people that are hard core loyal and the switchers as well. The company earns great revenue from the switchers as well. Further, on the basis of personality, the company targets easygoing and careless people who likes pocket friendly and tasty food. These people come under the category of potential and fast food eaters. |
|
Psychographic |
Status and lifestyle |
On the basis of social status the company targets lower, working and middle class people. Further, the company also targets resigned, strugglers and cross cultural consumers as well. |
Thus, the above mentioned table explain four different types of segmentation for the company McDonald’s.
The two selected target segment profile for the company McDonald’s are discussed below:
Demographic Segmentation: Under this type of segmentation, the company should target the people coming under the age group of 8 to 45. As the organization is a family restaurant chain business resulting in which, children get attracted towards Ronald and families like the environment. The happy meal served by the company are enjoyed by the kids and parents also like the taste of the burgers of McDonalds. In this target group, the company looks for the people who are not rich or have a luxurious habitat. So, the economic people who become a part of the middle income level people are targeted by the organization under this segment. Thus, it can be said that according to this segmentation, the company is capable of targeting the whole customer segment present in the food and beverages industry (Harrington, Ottenbacher, & Fauser, 2017).
Behavioral Segmentation: In the behavioral segmentation, the company should target the people that normal personality of a foodie. Foodie is a person who likes eating tasty food and it is best when the food is economic as well. So, on the basis of personality, the company should target the people who are strugglers or expatriates. These people do not have any fixed place of having food due to which they visit places like McDonald’s as it is the lender for the last resort. So, the company should target people with personality of an economic food lover (Cunningham, & Ferrell, 2015).
Conclusion:
Thus, in limelight of above mentioned events, the fact should be noted that the above mentioned report explained the situational analysis of the company McDonald’s in the country New Zealand. The report evaluated the McDonald’s is working at a dignified position in the target market with good brand value. Thus they can earn the focus of customer present in New Zealand using the targeting and segmentation strategies. The report adequately satisfies the requirements of the assessment.
References:
Allen, N., & Carlson, M. J. (2018). Focus: Why McDonald’s Tax Practices Matter to the Global Labour Movement. International Union Rights, 25(1), 8-28.
Cunningham, M. P., & Ferrell, O. C. (2015). Marketing’s Greatest Challenge: The Social Impact of the Globalization of Markets. In Proceedings of the 1989 Academy of Marketing Science (AMS) Annual Conference (pp. 231-234). Springer, Cham.
Dolnicar, S., Grün, B., & Leisch, F. (2018). Market Segmentation. In Market Segmentation Analysis (pp. 3-9). Springer, Singapore.
Emerson, L., & Prang, Y. (2016). Compensation and Benefits: Company-Provided Benefits at McDonald’s. In Handbook of Human Resources Management (pp. 939-950). Springer Berlin Heidelberg.
Hamilton, S. F., & Réquillart, V. (2017). Market competition and the health composition of manufactured food. Health economics, 26(12), 1637-1643.
Harrington, R. J., Ottenbacher, M. C., & Fauser, S. (2017). QSR brand value: Marketing mix dimensions among McDonald’s, KFC, Burger King, Subway and Starbucks. International Journal of Contemporary Hospitality Management, 29(1), 551-570.
Kane, G. C. (2016). How McDonalds Cooked Up More Transparency. MIT Sloan Management Review, 57(2).
Lee, A., & Lambert, C. (2017). Corporate social responsibility in McDonald’s Australia. Asian Case Research Journal, 21(02), 393-430.
Leidner, R. (2015). Over the counter: McDonald’s. In Working in America (pp. 55-65). UK: Routledge.
Madar, A., & Neac?u, A. (2014). Quality Strategies In The Field Of Food & Beverage Case Study: HACCP Implementation At Mcdonald’s Company. Management & Marketing, 9(2).
Mathur, S. (2017). Glocalization in Fast Food Chains Glocalization in Fast Food Chains: A Case Study of McDonald’s. In Strategic Marketing Management and Tactics in the Service Industry (pp. 330-347). IGI Global.
McDonald, M., & Wilson, H. (2016). Marketing Plans: How to prepare them, how to profit from them. US: John Wiley & Sons.
Olsen, P. E., Popovich, K., & Thompson, T. (2016). WTF? McDonald’s Minion Unhappy Meal. Journal of Critical Incidents, 9, 115.
Popescu, G., & Iosim, I. (2015). The role of consumer behavior in issues related to the environment. Research Journal of Agricultural Science, 47(4).
Povod, E. A., Roldugina, A. E., & Dmitrienko, N. A. (2016). Analysis and opportunities of innovations in restaurant business” MCDONALD’S”(as an example). ??????? ????????????, 59.
Rowley, B., & McMurtrey, M. E. (2016). McDonald’s and the Triple Bottom Line: A Case Study of Corporate Sustainability. Journal of Strategic Innovation and Sustainability, 11(1), 33-37.
Te, Y. F., Muller, D., Wyder, S., & Pramono, D. (2018). Predicting The Growth Of Restaurants Using Web Data. In Economic and Social Development (Book of Proceedings), 28th International Scientific Conference on Economic and Social (p. 237).
Telang, A., & Deshpande, A. (2016). Keep calm and carry on: A crisis communication study of Cadbury and McDonalds. Management & Marketing, 11(1), 371-379.
Wu, Q. (2018). Financial Analysis of McDonald’s Company.
Young, C., & Page, A. (2014). A Model for Predicting Advertising Quality As a Key to Driving Sales Growth: How Television Advertising Quality Affected McDonald’s Sales Growth Over Six Years. Journal of Advertising Research, 54(4), 393-397.
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