New Marketing MIX for Meeting Market and Organizational Needs of McDonalds - Essay Example

? Marketing Research on McDonalds (Australia) Contents Part 3 3 2. 4 3. 6 4. 7 Part 2 11 Assumption 11 Problem Identification 11 Priority Problems and Benefits to the Marketing Mix 12 New marketing mix for meeting market and organizational needs 12 Product 12 Place 13 Promotion 14 Price 15 References 16 Part 1 1. The entire endeavor of marketing is mostly concerned with the point of value creation, value communication, value distribution and value communication which is effectively done in most cases by the process of application of various marketing tools, techniques and strategies. It can be said that the marketing efforts for any product or service should always be line with the SMART framework. The SMART framework which essentially focuses on the guidelines related to specific, measurable, achievable, realistic and timed parameters helps to develop a highly integrated marketing plan within a time bound frame (Stone, 2001, p.15). The SMART objectives when implemented in a marketing plan in a properly organized and phased out manner helps tremendously to the process of increasing the productivity of the marketing plan (Mullin, 2010, p. 34). However, the following processes can be followed for the purpose of implementation of SMART objectives within the marketing plan aimed to bring focus and generate consumer interest on the globally present McDonald’s brand in the Australian market. Specific: In order to increase the effectiveness of the marketing plans, McDonalds should focus towards a specific group of consumers or the relevant target audience. Identifying the specific consumer needs with regards to demography and age group, will lead to the better conversion and increased sales for the products of McDonalds in the Australian region, while effectively trying to generate advantage from the need fulfillment perspective. Measurable: For the purpose of better targeting, demand estimation as well as measuring the effectiveness of the marketing plan, McDonalds should employ various strategies related to data analytics to increase the relevancy of the marketing exercise. Achievable: After the process of effective demand forecasting as well as the estimation of the target audience, effective setting of targets on a monthly basis has to be made for the forward growth of the business. Focus should be on the point of setting sustainable and achievable target growths for the process of generating motivation of the sales team. Realistic: Effective consumer data analysis has to be done for promoting setting of realistic goals while taking into account the various parameters related to change factors. Timed: While designing the marketing exercise, McDonalds should focus on setting a time limit for each activity in the marketing plan. The process of setting a time limit should comprise of setting a time limit for the development and designing of a new product or service. The time limit should also be fixed on deciding the duration of employing the various mediums for the process of value communication of the product or service in the Australian market. Timing the marketing activities is essentially important as this helps in generating a measure of the level of effectiveness of the various departments of the organization as well as the relevancy and effectiveness of the various platforms of marketing. 2. Having a highly effective and attractive positioning statement in the forefront of the marketing campaigns is a highly vital factor as it can hold the key to the making or breaking point related to the success of the marketing campaigns. The reason behind it is associated with the fact that the positioning statement helps in the process of identification of the brand by the target audience as well as the competitors at large, while increasingly creating favorable points of difference with rival brands (Capon & Hulbert, 2007, p. 253). It can be said that the target audience which essentially comprises of the consumers of the Australian market prefer to have a food packaging which clearly highlights the nutritional ingredients involved in it (Finnegan, 2012). Research has also shown that continuous and over consumption of fast foods, which have high fat content leads to the generation of obese individuals (Kornblum, 2011, p. 528). So naturally, in an attempt to differentiate the new marketing move from the rivals, it is important to show the rivals and competitor brands that McDonalds is increasingly focused about providing same value to the target audience with its new marketing move. However, the inner message is that the brand is focused on providing same value to the nation while providing a better health to its customers. An effective positioning statement should have a quotation like “McDonald looks after the Australian nation”. A highly effective quotation can be “McDonalds: The brand that is committed to providing healthy value to the Kangaroo Nation” Talking in terms of betterment it can be said that the new marketing move will help the company McDonalds to make the Australian customers realize that the company is also concerned about the holistic well being of the masses of the entire country rather than just focusing on wealth maximization. This will provide a lasting good impression in the minds of the consumer. 3. The marketplace is a highly competitive environment where multiple firms and organizations are increasingly trying to compete while targeting the more or less same group of target audience with homogeneous products. However, it has to be increasingly said that the driving factor that contributes to the sale of these homogeneous products are more or less focused on the basis of the marketing campaigns ability to distinguish their respective products or services from the various other alternatives that are available in the market. Talking in this line, it can be said that the firms in the market focus on the process of generation of competitive advantage for its products and services. Porter’s strategic model increasingly outlines three effective strategies that will automatically provide significant advantage to the firms (Botten, 2009, p. 275). The strategies are cost leadership, differentiation and focus(Kotler & et.al, 2009, p. 53). The strategy which is related to differentiation talks about the situation where the firms essentially outlines the various factors related to differentiating their own product and service offering as compared to that of their rival firms. (Stonehouse & et.al, 2004, p. 177) Talking in the McDonald’s point of view, it can be said that in order to develop a competitive advantage for its fast food product offerings as compared to similar product offerings like those of popular rival brands, McDonalds should increasingly focus on the strategy of differentiation. This will help McDonalds to increasingly distinguish itself as compared to other rival brands in the Australian market. While focusing on the point of differentiation, the fast food company McDonalds should increasingly highlight and should try to capitalize on the points related to its concern for its consumers. McDonalds should increasingly try to distinguish itself from the rival companies by its process of highlighting of health beneficial food products for the Australian consumers. It can also be said that in order to widen the differentiation gap with the rival companies homogenous product offerings, McDonalds should also try to bring into focus its new and innovative product and service bundles which are designed to provide greater value for money to the consumers.. In an attempt to capitalize on the points of differentiation, the brand McDonalds should increasingly try to advertise and draw consumer attention towards the point of health related benefits of its products as compared to that of the rivals.. 4. It has to be increasingly taken into consideration that in order to focus edge over the rival companies’ product offerings, the globally popular McDonalds brand should focus on revamping its entire value related processes. So, as a result, McDonalds should focus on completely overhauling its marketing campaign with regards to the branding, product development, pricing, places of distribution, and advertising communication. Product Talking in terms of product, which signifies value generation for consumers, McDonalds should focus on the process of new development. In order to tap the consumer market of Australia, McDonalds should increasingly focus on the process of new development which will be in line with the consumers’ needs as well as the target audiences’ new awareness of healthy eating. The new launch of healthy fast food products will also eradicate the weakness factor associated with health concerns. This move will enable the company to recapture the Australian market in a faster and smarter manner. Also, apart from the process of concentrating on new product development, McDonalds should increasingly focus on the fact, that the consumers of the Australian region are looking for better value for money. In an attempt to capitalize on that particular factor, the company should focus on providing bundled product offerings which are accompanies with attractive discounts and reduced rates. Place While focusing on the points of product availability and distribution, it has to be taken into account in the presence of multiple number of rivals in the same market, the key to significant growth and success lies in the fact of product availability to the consumers. So, naturally, the McDonalds brand should focus on determining the right place for product distribution in the Australian market. With regards to the Australian Bureau of Statistics of the year 2012, it can be said that the 89% of the Australian population reside in the urban areas (Australian Bureau of Statistics, 2012). So naturally, McDonalds should focus on the process of launching the new health conscious products mostly in the urban areas with significantly little focus on the rural regions. Price While focusing on the process of pricing of its products, McDonalds should take the social factor of the Australian consumers. Australia, having inhabitants of highly diversified cultural backgrounds has a diverse range of consumers. So, product pricing has to be done in line with the segment of the consumers for which the particular product has been designed. Products which are targeted towards the consumers, who prefer value for money over brands should be provided with discounted as well as bundled product offering. On the other hand, advanced, customized products with major health benefits should be targeted towards the higher segment and more well off group of consumers, while increasingly sporting a higher price tag. Branding In order to focus on the branding of the newly designed health conscious products as well as bundled product offering, McDonalds should increasingly focus on highlighting the fact of how the globally popular fast food brand is taking up responsibility and looking for the well being of the Australian nation, while providing significant value for money products to the Australian consumers. The branding exercise and campaigns should increasingly highlight the health beneficial consumer products while drawing attention to its value for money products at the same time. Communication (Promotion) It has to be increasingly taken into consideration that for the purpose of attaining a better response in regards to its promotional activities and campaigns, McDonalds should increasingly go for better consumer segmentation, targeting and positioning. Hence, it can be said that the globally popular fast food brand McDonalds can easily go for better customer profiling by the process of implementing and using data analytics tools. Apart from that, in an attempt to promote its newly developed health beneficial products to the consumers of Australia, the brand should increasingly focus on promoting health awareness among the consumers, through the process of organization of free health camps in various urban areas, where majority of the Australian population resides. For the purpose of significantly promoting its value for money product offerings, the fast food brand McDonalds should focus on promoting bundled product offerings at attractive rates. In an attempt to gain market share, the company can also attempt to go for loss leader pricing of its bundled product offerings for a limited period, thereby significantly fuelling up sales for its product in a very short while. This process of reducing product prices for a short while as compared to the rivals’ products, will significantly have a spillover effect, and thereby will lead to the higher sales of other product offerings of the brand as well. Part 2 Assumption It is important to notify that for the purpose of handling this part of the assignment, besides the basic facts that has been provided; there are certain assumptions that have been made. It has been increasingly assumed that one of the popular rival brands of McDonalds who are increasingly focusing on the same market and target audience has launched a campaign name “More 4 Less”. It has been taken into assumption that the marketing campaign of rival fast food brand is focused on the process of providing for more value for money products to the Australian consumers. The competitor has increasingly resorted to the tactic of ambush marketing while targeting the same value for money conscious consumers that are targeted by McDonalds (Egan, 2007, p.280). It has also been assumed that for the purpose of marketing and increasing product awareness, the rival company is focused on promoting its products in various mediums. The rival company is also targeting the television watching audience of Australia by displaying advertisements in prime time shows. Also, in order to target the Australian audience, who are increasingly becoming tech savvy in nature, the rival company has focused on generating online interest by the process of organizing of various online games, activities and competition. Apart from that, it has also been assumed that the rival company has also resorted to various traditional techniques like that of point of purchase (POP) and point of sale (POS) display, hoardings, glow sign boards, public displays etc. Problem Identification It can be said that the rival brand’s new marketing move has created the need to identify the problems in relation to the already designed marketing plan. While there is no problem in relation to the new product, places of distribution and the target audience, yet it has brought the problem related to pricing. Since, the same target audience has been focused with regards to value for money concept, so highly competitive pricing has to be done which will be in same lines with the pricing of the rival brand’s new product offering. Priority Problems and Benefits to the Marketing Mix Since the rival brand’s product offering provides a better value for money as compared to McDonald’s new product, it has created the main problem related to the pricing of the new product of McDonald. However, the rival company’s new marketing move has provided a lot of benefits to the already designed marketing mix of McDonalds by the process of increasing the gap of differentiation related to health and nutrition benefits of the customers. It has also provided the benefit in terms of promotion of the new product, which essentially highlights the benefits of healthy side of the product. New marketing mix for meeting market and organizational needs In an attempt to tackle the rival fast food company’s newest marketing move in an attempt to gain more market share and foothold in the Australian region, some necessary changes has to be implemented in the entire marketing campaign of McDonalds of the Australian market. Product Since the marketing plan of the rival fast food company is focused on providing high value for money product to the consumers, it will be extremely tactful for McDonalds to highlight the health related benefits related to the diversified and balanced eating with a proper intake of nutrients. Hence, while focusing on the strategic move related to the product offerings, McDonalds should concentrate on designing its new value for money based product offerings. In an attempt to do so, while designing its new bundled product offering with regards to providing more value for money to the Australian consumers, McDonalds should also focus on providing a balanced and healthy meal to the consumers. McDonalds, in its attempt to revamp the product development process related to the bundle offering should essentially focus on trying to include items which provide a healthy nutrition to the human body. Place It has to be increasingly taken into consideration that place is a very important factor in the entire marketing mix as it is related to the process of value delivery (Lamb, Hair & McDaniel, 2011, p. 48). It is also of strategic importance to identify the relevant fighting grounds that provide advantage to the brand of McDonalds as compared to that of the rivals. This is important as it holds the key factor related to the winning the turf war of the fast foods. Though in an overall note, it is quite evident that majority of the Australian consumers live in the urban areas, yet, McDonalds should focus on identifying the key regions where the demand and related sales of its products is comparatively high as compared to that of the other rival brands. By the process of focusing on those strong areas of sales, McDonalds will be able to ensure that it is not losing its loyal consumers to other brands. Apart from this, McDonalds should also focus on the process of creating more demand for its product offering in the areas where it has comparatively weaker sales on a weekly or monthly basis. Promotion The process of using and identifying the correct platform for promotion is a very important step on the part of McDonalds for the purpose of engaging in a battle in the marketplace with the rival fast food brand. While taking into account that a large part of the Australian consumers are highly tech savvy in nature, hence using the social media platform like Facebook, Twitter will provide a significant amount of leverage in the process of producing consumer awareness in regards to the highly nutritional and value for money based bundled product offering of McDonalds. Providing regular updates on the micro blogging sites will help the consumers of Australia become more aware of the entire advantages and benefits that McDonalds’ latest product offering provides in comparison to its rival brands. Also the process of running online campaigns and giving away digital discount coupons and significant freebies will help the brand to generate a lot consumer interest in the Australian region. Apart from indulging in the promotional exercise using the online platform, McDonalds should also try to promote the newest health beneficial product offerings by using the various traditional methods of promotion. In an attempt to provide greater visibility and consumer attention to the health benefits provided by its product offerings, the fast food company should focus on promoting the new products by displaying hoarding and glow sign boards in the areas of high consumer traffic like that of the office areas, schools etc. Besides that, the process of promoting discount coupons by collaborating with various retail outlets of other lifestyle brands will help the brand in the process of gaining consumer attention. Price Pricing of a product is of utmost importance in the case of an organization which is increasingly focusing on competing in a market, where the relative degree of involvement of the customers with the product is relatively low and where there are a lot of alternative choice and other brands present to the targeted audience. (Gitman & McDaniel, 2008, p. 295) However, in this case, it can be said that the rival company’s latest marketing initiative is targeted towards the Australian consumers who prefer value for money products. Hence, in an attempt to tackle the marketing move by the rival brand and attract the intended target audience, the company should focus on going for discount based pricing for a very short period while increasingly drawing consumer attention to its healthy and value for money bundled product offering. References Stone, P. 2001. Make Marketing Work For You. United Kingdom: Oxford Mullin, R. 2010. Sales Promotion. Great Britain: Kogan Page Limited. Finnegan, Y. 2012. Australians Support Nutritional Information Displays at Fast Food Joints. [Online] Available at: < http://www.nielsen.com/au/en/news-insights/press-room/2012/australians-support-nutritional-information-displays-at-fast-foo.html> [Accessed 02 Nov. 2012]. Botten, N. 2009. CIMA Official Learning System Enterprise Strategy. 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