NOTES TO MY POWER POINT
ANALYSIS OF EXTERNAL ENVIRONMENT
Factors that happen outside of the company which can lead to improper functioning of a company is termed as external environment. The first factor is economic factor. Economic factor is a type of factor which affects how a company markets its product, how much a company can spend on the success of the business and even the kind of target market a company will go after. Economic crisis has made McDonalds increase its prices because its supplies are becoming more expensive. Furthermore, the economic differences in different parts of the world have made a significant influence on price setting.
The second factor is political factors ...view middle of the document...
In other words, it merges and diversifies with culture of wherever place the business is running and customizing its menu to the specific market demand. This has enabled the company to differentiate itself from other fast food restaurant. Not all McDonald’s restaurants have play grounds, therefore I urge the company to set up play grounds at many restaurants as possible.
WEAKNESS: McDonald’s has incorporate more healthy foods in their menu.
OPPORTUNITY: the company should keep up with their product innovation. Coming up with products like McPizza and McCoffee generated a lot of revenue so they should come up with more.
THREAT: Companies like Burger King and Subway are right on McDonald’s tail so they should keep on working hard to distant themselves from these companies. There should be a strong healthy food awareness if they want to remain competitive.
OVERALL STRATEGY AND RECOMMENDATION
DELIVERING VALUES AND OFFERING PRODUCT VARIETY: McDonalds has come up with new menus like the fruit and walnut salad in some parts of United States and deli sandwiches in Australia. Now McDonalds offers breakfast, which most fast foods don’t offer which includes toast, biscuit, sausages, eggs, pancakes etc. and it is proven to be very successful. I recommend that McDonald’s should keep doing that and even bring in more variety.
ONLINE ORDERING AND DELIVERY SYSTEM: Now McDonald’s has come up with some online ordering and delivery system whereby consumers can order food online and be delivered to them. This system is in effect in some countries. I recommend that McDonald’s should make it worldwide so that everyone can enjoy it.
IMPROVING BRAND IMAGE: I recommend that McDonald’s should keep improving their brand image. The company has had some bad image for quiet sometime and working on it to clear the minds of consumers will be very beneficial. They have to have promotions that describe the company as a company that produces healthy foods.
ANALYSIS AND DISCRIPTION OF TARGET AUDIENCE
PRIMARY TARGET MARKET: Primary targets are the people who are most likely to purchase your products now. In other words they are frequent buyers. Most of company revenue from sale of product comes from the primary target. Urban families particularly the youth urban families are the primary target market of McDonalds.
SECONDARY TARGET MARKET: Secondary target are the individuals who buys your product in the near future or influences someone else to buy from you. McDonald’s secondary target market is usually children and adolescents. Most of these youths are usually bachelors and spinsters and they barely cook at home. Also these young kids love to eat McDonalds so crazily that sometimes they choose not eat at home.
McDONALD’S AND THE 4 P’S
PRODUCT: McDonalds uses the four types of product strategy which are permanent product strategy, temporally product strategy, local product development strategy, and local adaption product strategy.