McDonalds is a well-known brand that serves more than 69 millions customers. By targeting segment of loyal customer first McDonalds can reduce the cost of switching customer. Because there is huge competition in the market and so many options are available. Customers can choose another brand. Secondly, by serving loyal customers better they will be happier and more satisfied and will spread good things about McDonald through world of mouth marketing. It will increase sales and customers.
The next step is the value proposition. According to a popular saying, 'A brand’s value proposition consists of the emotional, functional and self-expressive advantages delivered by the brand which provide value for customers within the targeted segment. A balanced value proposition is the basis for brand choice and customer loyalty, and is critical to the ongoing success of a firm."(O'Guinn, Allen, Semenik 4E, 2006, p. 234).
Value proposition for target Market
In addition to it Positioning refers to selection of market mix which most suitable for the target market.
McDonald's is a low-cost restaurant that offers quality food to families. We have variety of menu with so many health options for all benefit seekers. Our focus is on reducing delivery costs and offering discounted meals. We are providing dual drive through to decrease the wait time. Customers who are loyal to us will receive special offers.
A pilot coding exercise was carried out to determine the interrater reliability of 10% of posts. A reliability level acceptable was defined as a minimum of 90.0% agreement, or a Krippendorf coefficient of 0.70.25 Five coders initially were trained in the codebook before participating in the pilot code. However, only two coders achieved a Krippendorf alpha coefficient of at least 0.70 or 90.0% agreement for all variables, and they coded the remaining 90% of the data. Three of the codes were removed. There were two sets of possible data because the two coders had rated the exact same data sample. Random selection was used to combine half each of both coders sets. We used Google Translator, a Chrome extension, to translate the posts from some of the Instagram accounts.
Analyze Your Product Or Service
Look at your products to see which customers would benefit from them. These questions will assist in the brainstorming.
After you have answered these questions you may want to get feedback from your current clients. Ask your service department to conduct a focus-group or discuss common issues.
Analyzing your product or service in this way will help you better understand your target market. In fact, you might learn that your current customers aren't the people you're trying to target. If you notice a disconnect in this process, you'll want to better align your target market with your actual marketing goals so you can realign.
McDonald's customer segment focused on lower- and middle-income status families rather than younger children. McDonalds is performs three main job which include functional, emotional and social. The emotional job is to provide a family with a family meal. The Functional job is to feed the whole family an affordable price. The social job of providing entertainment for families is the play area. To attract more customers McDonald is now improving the interior of its restaurant because previous dining of McDonald's was congested, bad eating environment, unhealthy food etc. It included the following customer factors:
Who are the target customers: McDonald's target customers are young children and families? If you are going to segment, it is best that you go with niche markets as they tend to be highly profitable.
Whom does the company serve? The company serves all age groups, but currently it is focused on meals for families. In addition to it, company is serving low class and middle-class economic families.
McDonald's market is increasing because it has added healthy food options to the menu. With the new menu, it is able to serve a wide range of customers.
The Target Market for Lucky Charms: From Kids to Diverse Millennials
Eating marshmallows for breakfast may seem like something only kids would enjoy. However, Lucky Charms has found that nostalgia for their cereal is ultimately the biggest seller. 40% of the consumers who eat Lucky Charms are actually adults!
For this reason, General Mills has shifted the Lucky Charms target market from kids to adults, specifically millennials (anyone between the ages of 26 to 41). Lucky Charms commercials are now more grown up, but perhaps the most notable changes have been on social media, namely the digital campaign, #LuckyToBe, which celebrated everyone during Pride month. All of these changes have given consumers a new perception of the "magically delicious" cereal.
Now that you have basic demographic information on your competition, your next task is to gather census information on your desired neighbourhood. The census material you gather will confirm your assumptions about the target demographic.
Where to find demographic information
UK Census Data Service
London Data Store
You can view demographic data by:
Mcdonald’s Losing its grip on the Food Industry
McDonald's%27s global market share of the food industry remains at 43.8%. However, they have had difficulty keeping up with their competitors. As of 2021, Yum Brands (including Yum China) will hold 30.5% of the global market, followed by Restaurant Brands International, which will hold 11.8%. Domino's Pizza will hold 8.2% of the global market, while three other companies will hold 2.2%. McDonald's needs to continue innovating to remain relevant and competitive. It is evident that the food business is getting more competitive.
Invest In Core Products
A key reason McDonald's has been able to grow and sustain its continued success is its focus on promoting and continuously improving its core product offerings. This includes fan favorites such as the Big Mac, its fries and other products that are more recent like chicken nuggets.
McDonald's has recently been offering a deal of 2 for 5 dollars on four main menu items (Big Macs, Quarter Pounders with Cheese, McNuggets and Filet O' Fish). The company has not only stayed with their core products but is also looking at new ways to market them and to keep its customers interested.
How can you do this for your company? Identify the core products you offer--those that your customers come back time and again to get from you--and see if there are opportunities to promote them to a broader audience.
By investing marketing and development dollars into your core products, you can ensure your company will continue to see revenue from these products while you look to scale or develop new products.
McDonalds has different prices for their products and services. For the behavioural segmentation targeting especially to the loyal customer McDonald must offers discount prices to the regular customer. There must be a point award system for every purchase of customer this thing will help to retain the customers and attract new customers. Currently McDonald's focus on psychological pricing strategies in its price mix.
For example: McDonald had reduced the prices of its products in India by 25% to attract the customers to prefer McDonalds as dinner and lunch. The aim was to keep up with KFC, SUBWAY, and Dominos.
McDonald's could offer bundles or discounts on specific products, or meals. To serve the fitness-oriented customers more offer should provide on wraps and salads.
Andy McKena, the company Chairman, puts it that McDonald's has a Plan to Win strategy. This strategy has been used by the company to achieve its strategic goals for eight years. McDonald's strategically implements its marketing plan using the Plan to Win strategy, which has the core objectives and strategies of its marketing agenda.
These are the 5Ps of price, promotion, product, place, and people. McDonald's has recognized the importance and potential of each P and plans to incorporate them all into its marketing strategy. McDonald's is using this strategy in order to focus on its right priorities, such as keeping its brand relevant and meeting the needs of ever-changing customers more so with regard to healthy food.
McDonald's can be flexible and decisive with the Plan to Win Strategy, while also showing a strong business focus to better meet its customer's needs, particularly in relation to health concerns, obesity, etc. McDonald's believes that the strategic objective of the Plan to Win strategy as worked well, and will continue to do both in the domestic and global markets in the coming years (McDonald's Corporation, 2010).