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What Is McDonalds' Marketing Strategy?

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❶Perceived service value has been a critical construct in marketing because it is assumed to have a significant influence on purchase or patronage behavior Bolton and Drew, ; Zeithaml, With the recent credit crunch effect many companies are facing a bad time with loss of business, however McDonalds is said to have found this credit situation to their favor.

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Thus, consumer food choice is determined by many factors as shown in the below figure. Food choice factors were being individually studied in the past by other disciplines, e.

However, in the recent times, the the factors involved in the perception and acceptance of the food quality food quality are being studied collectively in sensory science. Sensory science has been described as a place of meeting in science, bridging the gap between humanities and the pure sciences. It has been shown that many individual factors affect the perception of a food product.

These factors include taste, odor, information from labeling and images, attitudes, memory from previous experience, price, prestige, nutritional content, health belief, familiarity and brand loyalty Krondl and Lau, , ; Raats et al. Sensory attributes have been known to play an important role in overall perception and acceptance of a food product.

It has been well recognized that the intensity of food-related sensory attributes affect the level of pleasantness or unpleasantness of a food product Cardello, Texture and flavor have been shown to have a profound effect on perception and acceptability Szczesniak, The effect of visual sensations should never be underemined.

Human perception of quality is dependent on the visual image Hetherington and MacDougall, It has been well established that color and appearance can have a halo effect which modifies subsequent flavor perception and food acceptability Hutchings, ; Kostyla and Clydesdale, Appearance, flavor and texture are important quality attributes which characterize raw food materials and processed products Schutz and Wahl, Kramer and Szczesniak use a circle diagram to describe the sensory quality of food.

In this sensory circle, the perimeter of the circle is divided into three merging zones defined by appearance, flavor and texture.

These zones are often regarded as an individual and seperate characteristic, however some properties do overlap indicating that the perception can be affected by more than one sense. However, the significance of different product attributes varies with the situation and time.

For example, a product that is seen on a supermarket shelf may have different attributes affecting perception when compared to the same product seen on a plate. The same product on a plate would be affected by anticipatory and participatory attributes Hutchings, In other words, at the point of consumption, anticipatory factors such as the initial product appearance and also consequent participatory factors such as product flavor and texture may dominate the acceptance level for many foods.

Appearance encompasses several basic sensory attributes such as colour, opacity, gloss, visual structure, visual texture and perceived flavor. Of all these visual aspects, the effect of color is the most obvious and well-studied. The strong association between food and color was established as early as by Moir and by Dunker. Extensive research has confirmed the importance of color in taste recognition and intensity Johnson and Clydesdale, ; Kostyla, ; Maga, , in flavor detection and recognition, in food preference Christensen, ; DuBose et al.

Consumer perception of an acceptable color has been shown to be associated with other quality attributes: The effect can be achieved by manipulation of one or more variables: Perceived service value has been a critical construct in marketing because it is assumed to have a significant influence on purchase or patronage behavior Bolton and Drew, ; Zeithaml, Although value is an indistinct and elusive construct, service value as perceived by consumers has narrowly been defined as a trade-off between perceived quality or the benefit component and perceived sacrifice or the cost component regarding a service being evaluated Dodds and Monroe, ; Dodds et al.

Consumers would make their value judgment on a service by trading off the positive utility of the quality against the negative utility of the cost inferred from various service characteristics. Then, what specific aspects of a service imply the quality and the cost for the value judgment? This question is dealt with in the sections below.

Perceived quality is one of the major determinants of perceived service value. It is assumed that consumers consider various dimensions of a service to reach their overall judgment of service quality. SERVQUAL consists of 22 items measuring customers' expectations and another 22 items measuring their perceptions of five dimensions of service performance. Specifically, they have suggested that when consumers make their judgment of service quality, they would generally consider the service provider's:.

However, SERVQUAL is a generic measure; researchers have found that the relative importance of the five dimensions varies across different service industries e. Crompton and Mackay, ; Johnson et al. Consumers compare service quality with cost to determine service value. Service cost is basically what consumers have to give up or sacrifice to obtain a desired service.

Since it has a negative impact on consumers' budgets, it would have a negative influence on their perceptions of service value. The concept of cost can be extended to include nonmonetary cost such as service time see Murphy and Enis , for a detailed review of time costs.

Service time is the amount of time during which a service is provided. Since most customers would like to have faster services, service time would affect perceived service value in the same way monetary cost would. Some services require customers to be present physically where the services are provided e.

Moonkyu Lee, Francis Ulgado, Due to busier client lifestyles and dual-working families with children, stress is increasingly being placed on fast meal solutions Atkins and Bowler, This has resulted in a market enlargement of more than 18 per cent in fast food since Keynote, United Kingdom customers tend to look upon expediency and wholesomeness as polar opposites, rather than a balancing type of food value Jack et al. These researchers found that convenience is likely to be associated with wide food processing, as in the example of manufactured snack foods; such snacks are apparent as suitable but unhealthy, while natural "fruit as a snack" are perceived as healthy but inconvenient.

Fast food meals based on burgers and fried chicken e. MacDonald's, KFC also tend to be perceived as suitable but unhealthy. There has been a sustained increase in the demand for expediency foods and snacks over a number of years Traill, ; Keynote, Moreover, a better volume of fast food is enthused in the United Kingdom than in any other country in Europe Schlosser, Recently, the thought that processed convenience foods are contributing to a fatness epidemic has led to litigation proceedings against McDonald's.

At the same time, a figure of fast-food companies and food manufacturers have reviewed the fat and sugar contents of their manufactured goods ranges, and reconsidered the dimension of the portions they offer.

New "healthy options" e. Another new innovative strategy by McDonald's and KFC enables nutritional information for each meal to be accessed via nutritional calculator tools on each company's web site see www. From the early stages of post-war nourishment policy in the UK, food manufacturers have responded to nutritionists' calls for better products to some degree. However, they have also asserted there are no "good" or "bad" foods - only good or bad diets Richardson and Brady, In the meantime, the UK Food Standards Agency's FSA present diet and nourishment strategy emphasizes a key role for the food manufacturing in helping to get better the nutritional excellence of dietary intakes Scottish Food Advisory Committee, For caterers, this means offering a greater option of healthier tableware, and for manufacturers and retailers, rebalancing foodstuff ingredients, in particular, reducing the attendance of fat, salt and sugar and rising that of fruit, vegetables and complex carbohydrates.

Health branding initiatives, such as the Department of Health's "5-a-Day" campaign promoting fruit and vegetable eating, have clearly helped to lift the profile of nutrition targets Department of Health, ; Parker, Food companies desire the logo but obtainable processed foods may not meet its strict supplies Laurance and Mitchell, As a result, manufacturers and retailers have begun to open their own logos and claims. Customer value plays a vital role at the heart of all advertising activity as it refers to things of worth that have been created for a specific marketplace Holbrook, Customer value is a highly multifaceted concept in that it integrates a collection of possible product excellence attributes, process-related attributes and less touchable sources of value, in particular, brand image Schroder, For fast foods, manufactured goods attributes may be further broken down into dietary, sensory and clean quality.

The nature of food production and processing is becoming more significant to customers Baltas, ; Bredahl et al.

Ethical manufacture in terms of animal and human welfare, and environmental guard are key issues here Wier and Calverley, ;Harper and Makatouni, ; Grankvist et al. Holbrook's typology serves as a mapping tool for generic customer value and is highly applicable to the food background. For example, it highlights both functional customer value which might be interpreted as food security and dietary make-up and ethics. However, business image is only partially built on touchable product and process attributes.

Equally significant is the manner in which company's converse with stakeholders through their marketing strategies, including CSR initiatives. CSR may be defined as an organization's rank and activities with admiration to perceived communal obligations Brown and Dacin, Through the Business Excellence Model British Quality Foundation, , the crash of an association on society has been highlighted alongside the require for worker and customer satisfaction.

Clearly, the better the perceived power and influence of an association the more likely it is to draw the attentions of campaign groups. The activities of influential organizations will be improved understood by the community and have an effect on more customers than those of smaller competitors. When campaigners single out such organizations for inspection or even assault, they can wait for more media interest for the issues they want to make public.

It is therefore not surprising that worldwide players in the fast-food sector, such as McDonald's, be inclined to find themselves in the dismissal line of groups concerned with the a variety of aspects of food quality. While there are variations in the specific styles adopted by the fast food operators a number of general defining characteristics can be identified.

Fast food outlets offer a simple and fairly restricted menu within a carefully controlled operating system. A variety of burgers in a bun, fried chicken, French fries and to a lesser extent pizza and baked potatoes provide the main course.

Typical desserts are ice cream and fruit pies and the drinks range includes milk shakes, fizzy drinks and tea and coffee. Customers queue up to be served at a counter, the aim being to serve a large number of people with the minimum of waiting time and most operators look to serve customers within three minutes of their entry onto the premises.

The food is sold in disposable packaging without cutlery. Some operators offer facilities for customers to consume their food on the premises while others tend to cater more for the take-away trade. The fast food revolution essentially had its origins in the US in the mid 's and this style of catering has continued to grow there and to spread to most of the rest of the world in the decades since then.

Schlosser has suggested that within the US the impact of this revolution has been seen to be particularly pervasive. He argues, for example, that during a relatively brief period of time the fast food industry has helped to transform not only the American diet but also our landscapes, economy, workforce and popular culture. More generally fast food can be seen as a powerful symbol of globalization and of post-modern society and few countries of the world seem immune to its apparent attractions.

McDonalds, for example, claim to serve 45 million customers every day in 30, restaurants in countries around the world. Branding has been a central and vital element in the introduction, growth and successful development of fast food in the UK. According to Mintel branding is seen to give consumer reassurance and confidence in terms of the quality of the food, the service, menu pricing and overall standards, which effectively create a sense of 'knowing what you are going to get'.

Thus brands are seen to take the guesswork and uncertainty out of choosing somewhere to eat, so long as they are operated within strict guidelines to ensure that the brand offer is identical. This uniformity is seen to bring benefits not only to the customer but also to the operating company through economies of scale.

Bulk buying and marketing strategies are identified as two major areas where significant cost savings can be made. Thus Mintel argue that the "success of branded operators is largely owing to their aptitude to provide formula food, that is, utilizing relatively contemptible ingredients, being reliable in their quality and with quick service".

In a similar vein the large branded chains are seen to be able to carry out national advertising campaigns and hence to reach a nationwide audience. Customer waiting time for service typically represents the first direct interaction between customers and most service delivery processes, so the importance of properly managing waiting times is of significant interest to most service operations. In recent years, service managers have made efforts to reduce customer waiting times and, and in some cases, totally to eliminate waits by improving processes or by adopting faster service technologies.

Customer reactions to waiting in line, whether they are good or bad, can color the customer's perception of the service delivery process. For example, customers in a restaurant who are unhappy about their long wait for seating may complain about the quality of the food, even if the food is totally acceptable.

It is therefore critical, in situations where waiting is inevitable, that service managers attempt to provide a high level of satisfaction with the waiting portion of the service experience. Previous research on customer satisfaction with respect to waiting in service operations has tended to parallel the broader research issue of customer satisfaction in services. Customer loyalty, as demonstrated in the form of repeat business, has been shown to be a key determinant of the success of many service companies Reichheld and Sasser, While a high level of customer satisfaction does not necessarily guarantee customer loyalty, dissatisfaction will cause customers to take their business elsewhere.

In other words, customers who are dissatisfied with the level of service they have received will be less likely to return in the future, or if they do return, they will most likely do so with less frequency than they did in the past. Conversely, customers who are extremely satisfied with their service experience with a given firm will most likely continue to return to that firm at the same frequency or even more frequently.

The customer's experience with the service firm is also likely to be multiplied through interactions with other prospective customers via word of mouth: One line of research has attempted to define satisfaction in terms of disconfirmation, that is, the difference between customer perceptions and expectations Anderson, ; Parasuraman et al. Early work in this area proposed that there are two dimensions to the expectation construct: The disconfirmation model, however, has been questioned by some researchers who have used another approach to measuring customer satisfaction.

Goode and Moutinho , for example, state, "The disconfirmation of prospect model has been more and more criticized in recent years and, as a consequence, standards other than prospect have been suggested" p. Teas in particular, argue that the multiple definitions of expectations and the resulting difficulties with measurement operationalization undermine the value of models incorporating expectations.

An alternative approach that appears to be gaining acceptance is that satisfaction depends primarily on the customer's perception of service performance rather than on the disconfirmation between perception and expectation Cronin and Taylor, ; Teas, This relationship is shown in equation 2.

Perception, of course, means the customer's perception of actual performance, implying that perception and "objective" actual performance are not one and the same. Social research is an invention of research methodology by early scientists, in practice for nearly years from the past. Greek authors such as Socrates have investigated the causes of social problems in the pat and produced a very impressive record of the social lives and the society, through social research. According to him social research is a means by which one can explain the social life existing in the world, critically evaluate it and empower the people to overthrow it.

QPR is a set of methods and techniques that let IS researchers to reply research questions about the interaction of humans and computers. In this approach to research there are basically 2 corner stones. Emphasis on quantitative data is the first corner stone.

Emphasis on positive philosophy is the second corner stone. With respect to the 1st cornerstone, these methods and techniques tend to specialize in quantities in the sense that the numbers come to stand for values and levels of theoretical constructs and concepts and the understanding of the numbers is viewed as strong scientific proof of how a phenomenon works.

The attendance of these quantities is so predominant in QPR that arithmetical packages and tools are an essential element in the toolkit of the researcher. Sources of information are of less importance in identifying a move toward as being QPR than the fact that empirically derived numbers lie at the core of the scientific evidence assembled. A QPR researcher may use archival information or gather it through structured interviews.

In both cases, the researcher is motivated by the numerical outputs and how to derive meaning from them. This emphasis on numerical analysis is also key to the second cornerstone, positivism, which defines a scientific theory as one that can be falsified. It seeks to give details the stability of performance from the individual's viewpoint.

They are most interested in understanding the subjectively shaped world "as it is" in terms of ongoing processes. It emphasizes the religious nature of the world. Philosophers like Kant formed it's basis, and Weber, Husserl, and Schutz furthered the ideology. This paradigm hasn't generated much organizational theory.

The early form of research originated in the natural sciences such as biology, chemistry, physics, geology, etc. Such comments and measurements can be made objectively and repeated by other researchers. This process is referred to as "quantitative research". They are subject to fixed pattern, which are empirically observable. Much later, along came the researchers working in the social sciences such as psychology, sociology, anthropology, etc.

They were interested in studying human behavior and the social world inhabited by human beings Morgan, They found increasing difficulty in trying to explain human behavior in simply measurable terms.

Measurements tell us how often or how many people behave in a certain way but they do not adequately answer the question "why?. The above mentioned characteristics are accepted and mentioned by famous authors including Berger et al. Crabtree and Miller, ; Lamnek, ; Patton, ; Vlahos, The above research will involve both qualitative and quantitative research methodology. It is qualitative in terms that its purpose is to understand the social life. It is idiographic as it describes the reality as it is.

It is open and flexible in all respects. The research process is influenced by the respondants. The researcher is close to the respondents and uses a dynamic approach. It is holistic as it studies the whole units. The research places priorities in studying the similarities. It employs a low level of measurement. The research is quantitative in terms that it aims at theory testing. The research is etiological as it is interested in why things happen.

The research process involves a closed approach as it is strictly planned. The research employs a random sampling. The research also places priority in studying the differences. The research employs a reductive data analysis. The research employs a deductive approach.

Hence, the research involves both qualitative and quantitative research methodology for the good of the research. Advantages - suitable, relatively inexpensive, saves time, less interviewer, investigator bias than personal interview. Advantages - cost effective for large areas, promotes accurate answers, minimizes interviewer bias,.

Disadvantages - low response rates, unanswered questions, incorrect answers, lengthy transit time. Secondary data isdata that is neither composed directly by the user nor specifically for the consumer, often under conditions not known to the consumer. Examples include Government reports.

Secondary information has already been collected for some other purposes. It may be obtainable from internal sources, or may have been collected and published by another association. Secondary data is cheaper and more rapidly available than primary data, but likely to need processing before it is helpful.

For example, secondary sources of marketplace penetration of an association are data collected already for accountancy and operational purposes. Total industry sales may already been collected and published by some outside body such as the government, trade association as secondary source of information. A corporation who wants to know the users of its products may have following secondary sources:.

The research involves both primary and secondary data collection techniques. Secondary data collection is done regarding McDonalds, their history, operations store locations, profit etc. In order to show that McDonalds is highly successful in their operations even under a credit crunch situation, financial data of McDonalds will be collected both in the pre credit crunch situation and under credit crunch situation, which will be done by getting the data from company's house.

This will include their most recent financial statement and the previous year's financial statement. These two statements will be compared to show the performance of McDonalds under the credit crunch situation.

Primary data collection will include distribution of questionnaires to the customers regarding their view on McDonalds and its offerings. This will be done by requesting the customers who come out of the outlet to fill up the questionnaires for the purpose of the research.

Nearly 4 major outlets will be covered to collect the questionnaires including north, east, south and central London. Based on these data analysis will be done to know the customer perception on McDonalds. Mostly data collection will be done where in I will be requesting the customers to answer these simple questions based on the questionnaire design, rather than requesting them to fill the questionnaire by themselves and give back.

This will help me to get a better response for the purpose of my research. I would like to collect at least responses from the 4 outlets selected and there is no restriction to the maximum number of responses to be collected.

Since the data collection will involve both numerical as well as qualitative data, my data analysis will engage both qualitative as well as quantitative data analysis. The qualitative data collected will be coded into themes and interpreted in order to get possible explanations of people's perceptions regarding McDonalds and its offerings.

The quantitative data collected in the form of variables will be organized and coded in a spread sheet from which possible explanations will be derived using logical thinking. All the data collected will be coded in excel spreadsheet with respect to age and ethnicity and gender, and these coded data will then be used to draw pie graphs from which possible explanation will be derived regarding consumer perception on McDonalds.

Data collection for the above research has been done by distributing questionnaires to McDonalds customers in a particular out let in central London. Overall responses has been collected. The below table shows the respondents report. From the below table it is very much clear that each and every individual has been grouped based on their age and gender. There were more female respondents than the male respondents as the number of female respondents was found to be more in the store.

While collecting the data it was made sure that no partiality was given to particular age band and all the 5 age bands are concentrated equally as far as possible as part of equal opportunity approach and towards satisfying my criteria in order to fetch better results for the purpose of my research. To start with in the order of my questionnaires when asked how often do they visit McDonalds in a week, which I have grouped based on their age and gender are as follows:.

Hence is clear that burger king is one big competitor to McDonalds, where they both share a similar target audience. Therefore nearly half of the people will think of Burger king in the absence of McDonalds. Respondents who chose wimpy, in that most of them are in their mid 30s or 40s. All the respondents who chose KFC are in their 30s and all the people who chose others are in their 40s and 50s. From the above statistics its is clear that mostly young audience prefer Burger king as their other alternative and hence are more burger liking people and hence McDonalds should target them and make sure that they keep visiting McDonalds.

When asked about the reason for choosing McDonalds as their favorite food chain, here I am again going to discuss with respect to the respondents age and gender and the findings are as follows:. From the above data analysis it is clear that majority of McDonalds customers choose it as their favorite food chain because of its good taste and cheap offerings. It is also evident that the older generation cares more about the quality of the product and chose it as their favorite food chain because of its quality.

However, looking at the overall picture it clear that quality is associated with the brand and brand savvy people doesn't have to care about the quality once they associate themselves with that particular brand. And here regular customers of McDonalds do care more about the taste and expense of the product rather than its quality as they are already assured of it.

Comparing the above 2 charts I can clearly say that still good taste is the priority for both the genders.

However, good quality of product seems to be major criteria for the male customers than the female customers. Cost of the product is a major criterion for the female customers than the male customers.

Hence, McDonalds under the credit crunch situation should keep their cost of food down if they want to attract more customers towards their side or at least hold their existing customers. Hence, majority of the family strength of the McDonald's customers are between 3 and 4 members as shown in the chart below.

Now the amount of money the family as a whole spends in the restaurant is high contributing towards the profit of McDonalds. Invited audience members will follow you as you navigate and present People invited to a presentation do not need a Prezi account This link expires 10 minutes after you close the presentation A maximum of 30 users can follow your presentation Learn more about this feature in our knowledge base article. Please log in to add your comment.

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My market research project conducted for McDonalds. Comments 0 Please log in to add your comment. Based upon these results, McDonalds should encourage people to eat out more often at any restaurant. How often people eat at McDonalds per week As shown in the graph, few people actually eat at McDonalds per week. Given this information, McDonalds should focus on getting customers in their stores more often. Although the results were fairly close, most people said that McDonalds' staff is unqualified whether is be because of skill or knowledge.

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marketing research on mcdonalds 1. MARKETING RESEARCH Presented by: Nabeel shahid Sania khan Hassan Raza Presented to: Sir Naeem 2. TABLE OF CONTENTS • Introduction • History • Business model • McDonald's in India • SWOT analysis • Research methodology 3.

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Apr 18,  · The success of McDonalds in these countries and as well as globally was possible due to systematic market research which positioned them as a leader in fast food industry. Reference: David Newberry , Marketing Undressed, First edn, vol. 1. Transcript of Marketing Research- McDonalds McDonalds Market Research Objective: Better the McDonalds customer service and experience McDonalds SWOT Analysis Conducted by Nick Maier Not including McDonalds How often people eat out each week As shown in the graph, people go out to eat at restaurants other than McDonalds very few times per week.

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Strategic Marketing Plan for McDonald’s Technical Report (PDF Available) McDonald’s research Statist ical survey identifies these elements and how they affect. After operating five years in Bolivia, McDonalds en bolivia closed its eight branches and left the country in Lack of marketing research: Mcdonald cl.