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McDonalds
McDonalds is the world's largest chain of fast-food restaurants.
The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines on April 15, 1955
With the successful expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life
McDonald’s in India
McDonald's opened its doors in India in October 1996
McDonald’s in India is a 50-50 joint venture partnership between McDonald’s Corporation [USA] and two Indian businessmen Amit Jatia’s company Hardcastle Restaurants Pvt. Ltd. & Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi
Ever since then their family restaurants exist in various cities Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon
MARKET SEGMENTATION –
Dividing the market into distinct groups of buyers based on demographic, psychographic and behavioral considerations
Benefits of Segment Marketing
Can create / fine tune product for segment
Product pricing done accordingly
Distribution & communication done accordingly
Clearer idea of competition
Bases for Segmentation
Geographical
Demographic
Based on age, income, family size, family life cycle, gender, occupation etc
Most common
Easier to measure segment
Psychographic
Based on lifestyle (ACTIVITY, INTEREST, OPINION), personality, values, attitude
Behavioural – Benefit-core, emotional
MARKET SEGMENTATION AT McDonald’s
When McDonald’s first came to India, after a study and research, identified their target market here – the urban and semi-urban areas
They studied that the crowd in these regions has potential demand for fast food
On further studying the actual desire of the people of the region they re-formulated some of their products using spices favoured by Indians
Among these are McVeggie™ burger, McAloo Tikki™ burger, Veg. Pizza McPuff™ and Chicken McGrill™ burger
MARKET SEGMENTATION DONEON SET PARAMETERS
GEOGRAPHIC:
- Urban and semi-urban areas across the country on easily accessible locations
DEMOGRAPHIC:
- Age: they have targeted all possible age groups, ranging from children to old people; but their heavy target segment being children
- Income: have targeted almost all income groups including middle class, lower and higher middle class
PSYCHOGRAPHIC:
- Attractiveness: ambience
- Interest: playful atmosphere, happy meal, Ronald McDonald
BEHAVIORAL:
- Core benefit: it mainly satisfies hunger with high quality food with utmost hygiene facilities
- Emotional benefit: The best quality service popularly known as “fast n friendly service”
-Brand Loyalty: Attractive offers and low price menus
- User status: Lower middle class to high class
- Readiness to Buy: Quick delivery, low price and filling and tasty food
- Occasion: be it for something special or just time pass
EXPLAINING BEHAVIORAL ASPECT (Emotional benefit) IN DEPTH
Why would one choose McDonalds over any other place?
High quality service
Great ambience at affordable price
Personal space
Get quality products, served quickly and with a smile, in a clean and pleasant environment; and all at a fair price
McDonald’s Around The World
POSITIONING STRATEGY
“Positioning is defined as the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”
In simple words it means what kind of an image we try to set on the minds of our customer through our promotions
Examples: Nike or Addidas; Dove; Big Bazaar; Lux soap; etc
EFFECTIVENESS OF McDonalds POSITIONING STRATEGY
McDonald’s is one of those fast food industries with the most effective positioning strategy
It is evident from:
- Ads: age, price, variety
This in a very strong way creates a good brand image and also helped in creating brand loyalty
McDonalds is the world's largest chain of fast-food restaurants.
The business began in 1940, with a restaurant opened by siblings Dick and Mac McDonald in San Bernardino, California
The present corporation dates its founding to the opening of a franchised restaurant by Ray Kroc, in Des Plaines on April 15, 1955
With the successful expansion of McDonald's into many international markets, the company has become a symbol of globalization and the spread of the American way of life
McDonald’s in India
McDonald's opened its doors in India in October 1996
McDonald’s in India is a 50-50 joint venture partnership between McDonald’s Corporation [USA] and two Indian businessmen Amit Jatia’s company Hardcastle Restaurants Pvt. Ltd. & Connaught Plaza Restaurants Pvt. Ltd headed by Vikram Bakshi
Ever since then their family restaurants exist in various cities Mumbai, Delhi, Pune, Ahmedabad, Vadodara, Ludhiana, Jaipur, Noida Faridabad, Doraha, Manesar and Gurgaon
MARKET SEGMENTATION –
Dividing the market into distinct groups of buyers based on demographic, psychographic and behavioral considerations
Benefits of Segment Marketing
Can create / fine tune product for segment
Product pricing done accordingly
Distribution & communication done accordingly
Clearer idea of competition
Bases for Segmentation
Geographical
Demographic
Based on age, income, family size, family life cycle, gender, occupation etc
Most common
Easier to measure segment
Psychographic
Based on lifestyle (ACTIVITY, INTEREST, OPINION), personality, values, attitude
Behavioural – Benefit-core, emotional
MARKET SEGMENTATION AT McDonald’s
When McDonald’s first came to India, after a study and research, identified their target market here – the urban and semi-urban areas
They studied that the crowd in these regions has potential demand for fast food
On further studying the actual desire of the people of the region they re-formulated some of their products using spices favoured by Indians
Among these are McVeggie™ burger, McAloo Tikki™ burger, Veg. Pizza McPuff™ and Chicken McGrill™ burger
MARKET SEGMENTATION DONEON SET PARAMETERS
GEOGRAPHIC:
- Urban and semi-urban areas across the country on easily accessible locations
DEMOGRAPHIC:
- Age: they have targeted all possible age groups, ranging from children to old people; but their heavy target segment being children
- Income: have targeted almost all income groups including middle class, lower and higher middle class
PSYCHOGRAPHIC:
- Attractiveness: ambience
- Interest: playful atmosphere, happy meal, Ronald McDonald
BEHAVIORAL:
- Core benefit: it mainly satisfies hunger with high quality food with utmost hygiene facilities
- Emotional benefit: The best quality service popularly known as “fast n friendly service”
-Brand Loyalty: Attractive offers and low price menus
- User status: Lower middle class to high class
- Readiness to Buy: Quick delivery, low price and filling and tasty food
- Occasion: be it for something special or just time pass
EXPLAINING BEHAVIORAL ASPECT (Emotional benefit) IN DEPTH
Why would one choose McDonalds over any other place?
High quality service
Great ambience at affordable price
Personal space
Get quality products, served quickly and with a smile, in a clean and pleasant environment; and all at a fair price
McDonald’s Around The World
POSITIONING STRATEGY
“Positioning is defined as the act of designing the company’s offering and image to occupy a distinctive place in the mind of the target market”
In simple words it means what kind of an image we try to set on the minds of our customer through our promotions
Examples: Nike or Addidas; Dove; Big Bazaar; Lux soap; etc
EFFECTIVENESS OF McDonalds POSITIONING STRATEGY
McDonald’s is one of those fast food industries with the most effective positioning strategy
It is evident from:
- Ads: age, price, variety
This in a very strong way creates a good brand image and also helped in creating brand loyalty