Market Intelligence at McDonalds and Tassimo On-Demand Coffee Maker - Essay Example

?Marketing Table of Contents Essay Market Intelligence at McDonald’s 3 Information 3 Communication 4 People and Processes 4 Essay 2: Tassimo On-Demand Coffee Maker 6 Target Segments for Tassimo 6 Strategic Position and New Value Proposition for Tassimo 7 Essay 3: Influencing Car Purchase 9 Consumer Decision Making Process for Luxury Car 9 Tactics for Luxury Car Dealers 11 Reference 14 Essay 1: Market Intelligence at McDonald’s Each marketer needs proper information through an extensive analysis. McDonald’s is in fast food retail industry and there have been significant changes in market behaviors as consumer’s preference and economic condition is changing constantly with increasing number of new entrants. In the process of market intelligence for McDonald, there are three major areas that must be taken into consideration which are ‘information’, ‘communication’ and ‘people and processes’. Information To conduct accurate and relevant marketing research, marketing intelligence plays a very crucial role by providing the necessary information. However, McDonald must determine what information it needs. There are two major questions relating to the sources of information i.e. (1) What are the internal information sources? and (2) what are the external information sources? External sources of information must include necessary data relating to the key competitors and target consumers. McDonald’s must access the relevant published sources to analysis the key strengths, weaknesses and market share of the competitors. This external information must indicate the recent developments taken place in the market and among the competitors. Consumers’ changing behavior also needs to be identified using the external information. On the other hand, internal sources of information are also very crucial. However, obtaining such information is an easy task for McDonald’s as it needs coordination with cross-functional departments. Hence, McDonald’s must carry out data-base analysis to understand the up-sale and cross-sale opportunities and to identify the potential consumers. Communication Primary difference between market intelligence and marketing research is the basic communicational process. In market intelligence, there is better communication between the decision makers and market intelligence analysts. On the other hand, communication is necessary for gathering and disseminating external and internal information. However, in market intelligence, the two most important questions relating to communication are ‘how to develop better communication for gathering information?’ and ‘how to develop communication for decision making?’ For gathering external and internal information, better communication is necessary. McDonald’s must implement IT systems like RFID and SAP for developing interference-free data gathering. It helps to build a flawless and continuous communication system (Koster and Munoz, 2009, p.358). For better decision making process, using the market intelligence process ‘two-way communication’ is an effective method. To develop two-way communication, McDonald’s must focus on better cross-functional communication and superior interaction level with the employees and management. Integrated marketing communication (IMC) is the most suitable approach as IMC helps to build an effective internal and external communications. People and Processes Managing the people and processes are challenging tasks for producing accurate and relevant outcome from market intelligence process. The first criterion in marketing research is to identify and develop research question. Once this task is over, McDonald must synchronize and manage the entire process. Two primary questions in this area are “how to involve relevant people in marketing intelligence process? and ‘how to develop effective and accurate process?’ McDonald’s must identify key employees to involve them in market intelligence process. Motivation and transparency are the two vital factors in this process. McDonald must engage its employees in its ongoing process for decision making by offering them relevant information through better interaction. On the other hand, the entire process must be designed as per closed-loop system where proper feedback-cycle must be maintained. This feedback cycle must involve the key employees and market intelligence professional to understand the major issues faced by the employees. Focusing on information, communication as well as people & process are helpful for the entire cross-functional departments. However, in this process, these departments also need to play very crucial roles. For example, to manage people and process, HR department must recruit and identify the potential employees who can contribute in market intelligence process. Information is very essential for marketing department to develop effective marketing strategies. Communication is key success factor for entire organizational departments as it plays a vital role in cross functional coordination and transparency. Essay 2: Tassimo On-Demand Coffee Maker Target Segments for Tassimo Due to changing lifestyle of consumers, beverages like tea and coffee are becoming very popular. Moreover, fast food retail chains are constantly aiming to bring innovative tastes in beverage product lines. Kraft Inc has successfully identified this opportunity and it has developed automated coffee machines called ‘Tassimo’ that helps to prepare coffee at faster speed. It offered 40 kinds of instant beverages and this machines can automatically adjust the requirements like quantity of ingredients, temperature etc. for preparing each types of beverages. However, there are also other major players existing in this market. For example, Starbucks is the key competitor of Kraft for its Tassimo product line. Starbucks is offering its instant coffee called ‘Via’ which is gaining popularity in the market. Kraft’s Tassimo is an innovative product that has a greater demand in market. To promote the product, the company needs to recognize and identify the target market segments. Before, setting the target segments, it is necessary to analyze multiple strength and opportunities of the product. Tassimo is an instant automated beverage machine that can be used for commercial purposes and at different commercial places. Therefore, the first major target segment for this product is the corporate offices, corporate complexes, universities or educational institutions. The second major target segment is the small coffee kiosks present at multiple public places like shopping complexes, railway-stations, airports etc. Corporate offices are increasing with the growing volume of the trade and business. These companies are focusing more on the employee satisfaction and hence, they try to reduce the employees’ ‘job-stress’. Coffee is a popular stress-buster, and hence, demands of automated coffee machines in these corporate offices, and universities or educational institutions are increasing significantly. Moreover, office establishments are also increasing at a higher rate, in turn providing a greater opportunity to Tassimo. These offices are present all over USA and these corporate houses have enough capability to install such machines in their office premises. Coffee kiosks are becoming very popular in USA as it serves the consumers’ impulse buying behaviors. Tassimo automated coffee machines are very useful for the coffee kiosks present in almost all the places like railway station, airports etc as it can prepare instant coffee. Tassimo has attractive designs that can attract consumes for impulse buying. The impulse buyers are mostly found in the public places and Tassimo can be instrumental in generating revenues for coffee kiosk owners. Tassimo can prepare 40 types of beverages and customers can easily choose their preferred beverages. Therefore, the kiosk can target a large variety of customer and corporate offices can also serve their employees in a better way. Strategic Position and New Value Proposition for Tassimo New target segments for Tassimo are meant to increase the overall value of the firm. As per the proposed target segments in the above section, Tassimo is expected to build a new strategic position in market by increasing the value proposition. However, in order to fulfill the expected strategic position and value proposition, some relevant and plausible recommendations are given below. Kraft must promote the commercial viability of Tassimo coffee machines in the market by focusing on its target consumers. It can also prepare a cost benefit analysis report to assess profitability for installing Tassimo coffee machines at coffee kiosks and it must be presented to the kiosk owners. Company must offer a comprehensive training to its consumers for educating them regarding the optimum use of Tassimo. Company must develop a customer relationship or customer care department for its Tassimo coffee machines to offer post-purchasing services. Company must try to achieve economies of scale for producing low cost products. The above recommendations are helpful in deciding the value proposition of Tassimo automated coffee machines. The company must try to develop this product as a profitable and value added commercial product and commercial entities like coffee kiosks will be most benefited by using this product. For the corporate offices, it will be very cost effective as Tassimo requires least human effort for preparing coffees. Moreover, it uses optimum level of ingredients to make beverage and hence, costing for each beverages will be minimum. Essay 3: Influencing Car Purchase Consumer Decision Making Process for Luxury Car Consumers are the most important entity for a profit-making organization and companies provides their goods and services that can meet the basic needs of their consumers. Moreover, post-modern business organizations are trying to offer value added goods and services that create better value for their customers. In this process, the company has to keep analyzing the consumers’ taste and preferences as it is constantly changing. However, one of the best ways to trace the consumers’ changing behavior is to identify the consumers’ decision making process. The following model represents a model showing various steps in consumer decision making process. Figure 1: Consumer Decision Making Model (Source: Morgan and Summers, 2005, p.78) As per the above model, consumers’ buying process passes through five major stages including problem recognition, information search, alternative evaluation, purchase decision and finally post-purchase process. The period of purchasing process depends on products’ price and utility. When consumers are buying daily necessity product, their decision making process does not take a longer time. In case of buying durable and expensive products like luxury cars, purchasing process becomes longer and consumers engage in comprehensive research before making decisions. Cost of luxury cars like BMW is very high and customers conduct an extensive research and evaluation before making the decision. Besides, there are certain specific criterions associated with luxury cars like engine efficiency, speed, designs, technological innovations, brand preferences, customer services etc and these are important factors in taking the decision for buying luxury cars. Role of distributors is also very important as it determines customer satisfaction level. Tactics for Luxury Car Dealers Consumer decision making process in automotive products is more complex and requires longer period. Moreover, in case of buying luxury or premium cars, the complexities in buying behavior intensifies as there are many influencing factors like price, brand etc. The basic value-added features of cars are the manufacturers’ responsibility and in this case, dealers have no role to play. However, increasing competition in car market also intensifies the competition between the dealers of different car brands. Cars dealers also have to develop a proper set of strategies for increasing their sales revenue and moreover, they are also able to influence consumers’ buying behaviors by implementing certain effective tactics in their operational and sales process. In this respect, car dealers must understand and analyze and the consumers’ buying process. The first step in consumer buying process is problem recognition. The dealer must identify the local consumers’ demand for luxury car buying. They should analyze potential consumers’ demographic and lifestyle to understand their need for luxury car. In the next step, consumers gather necessary information regarding luxury cars which involves details about cost and other features of product. Car dealers must offer all necessary and relevant information that can influence the consumers buying decision and also matches with the consumers needs. While purchasing expensive luxury cars, consumers also compare the product with other available brands. For example, Mercedes is a major competitor of BMW, and consumers who are looking for BMW cars will certainly compare these two brands. The dealer must gather and provide necessary information of competing brands so that the consumers can easily compare and reach their final decision. Dealers can increase consumer satisfaction level by providing such value added services. In the fourth stage, consumers determine their preferred brand after gathering and comparing information related to luxury cars. In this stage, dealers can play a crucial role by providing attractive offers and they also need to consider post-sales stage. Some strategies for car dealers are given below. Dealers should train their sale-personnel who can educate and assist consumers for purchasing cars. Dealers can develop pricing strategies which would offer discounts. Dealers can partner with financial institution which can offer consumer credit for automobile purchases. Dealers may provide free car-accessories and other attractive schemes like free-insurance coverage. Dealers can also provide live demonstration of the cars. Dealers should educate customers about car maintenance as well as increasing fuel efficiency. Dealer should help their customers in availing cars services. Dealers may develop relationship with customers to obtain their feedback. Reference Koster, A. M. C. A. and Munoz, X. (2009). Graphs and algorithms in communication networks: studies in broadband, optical, wireless and ad hoc networks. Springer. Morgan, M. J. and Summers, J. (2005). Sports Marketing. Cengage Learning Australia. Read More