Product Development for Sustained Competitive Advantage for McDonalds in UAE - Assignment Example

Product development for sustained competitive advantage for McDonalds in UAE Executive Summary McDonalds emphasizes the development of quality products as one of their marketing mix for the attainment of a competitive advantage over its competitors. It offers a wide range of quality products that can satisfy the desires of most of its customers (Bahaudin, 2007). It has a product range that is elaborative starting from "burgers to chicken sandwiches to chicken nuggets to apple pies to soft serve ice cream to apple slices." It also offers a range of beverages ranging from milk to water to soda to apple juice to coffee. Introduction BCG matrix in the McDonalds Product Marketing The BCG model is concerned with the analysis of the growth of a firms market share about markets collection, products, and enterprises as well as a conclusion making on the basis of resource allocation. McDonalds have increased its market share over the years through innovations. Of recent development include innovation is the introduction of both a vegetarian and a vegan menu in its list of products especially in continents where majority of the population are against certain animal proteins. The product mix in the McDonalds follows BCG marketing matrix and hence enables it stay on course of profitability and sustainability. By using the BCG matrix, it has been able to monitor its products portfolios in terms of product growth, depth and size. BCG Matrix for McDonalds Growth rate Market Share According to the BCG matrix, McDonalds’ is a star because of the high market growth and market share in the United Arab Emirates. Using the BCG model the McDonalds have considered increased promotional campaigns in countries where they are not well known yet. As such, McDonalds have shown high tendencies to allocate much more resources in product marketing and brand building. Product promotion as a marketing mix is widely used by McDonalds. It widely uses television, radio and billboards in their product and service promotion. The organization has carefully used certain slogans that captures and leaves a mark on the consumers minds. Some of these slogans include, "we love to see you smile; Food, Folks, and Fun; Its a good time for the Great Taste of McDonalds; I love it." These promotional strategies have resulted in customers becoming accustomed to going to McDonalds restaurants for there is an assured derivation of utility from their money (Bahaudin, 2007). What might be considered as a "star" or a "cash cow" is carefully examined and evaluated to determine its right position within the BCG matrix in the UAE. To maintain a competitive edge beyond fellow competitors, they keep on innovating and introducing new products to the market that make them relevant to the needs of the customers all the time. This makes them move large volumes of products of high quality that targets all kinds of customers including children (Baike, 2012). McDonalds have put forward a strong foot on increasing customer satisfaction in the United Arab Emirates. This has been indicated in the introduction of sandwiches by the name McArabia in their stores. It has attracted a large customer base due to its components of chicken and beef together with flatbread. It has continued on its innovative path that has seen its competitive edge by introducing another product referred to as beef burgers. It is worth noting that McDonalds is a major food company certified to operate in the UAE. Marketing mix strategies The organization has embraced a vast marketing mix strategy that has enabled it to expand drastically to become a global player in the food industry. One of the key marketing mixes employed by the firm is the use of standardized pricing. Having been able to position itself as one of the best food suppliers globally, it has set prices that charged around the globe depending on the area of operation. One of the major organizations objectives is "to provide excellent service and good food at a reasonable price" (Kroc, 2002). Price setting strategy for McDonalds was geared towards making it affordable for a family to be able to go out and have breakfast, lunch or dinner without having to part with a lot of money. This was achieved by introducing children meals of proportional volumes, right price as well as dollar menu meal items that were affordable. It has innovatively come up with various specials for breakfast in which different breakfast sandwiches are made at two for three dollars. This strategy has made it affordable for most people who now opt to have their meals at the McDonalds restaurants than having them at home. This strategy has been applied to all the chains around the world and has attracted a huge appreciation from the customers. It has also enabled the organization to keep its word on the affordability of its quality products to its customers (Kroc, 2002). Integrated promotional mix strategies McDonalds has adopted some of the most aggressive promotional tools as television commercials, magazines and newspapers coupled with a highly trained customer care personnel. The adoption of these conditions has enabled them to acquire a strong public trust. It also uses sales promotion as a promotional mix strategy that is designed to create motivation to customers though, on short term basis. The employment of sales promotion has been effective during the introduction of new products, and it helps attracts customers on the basis of pricing the products. Such promotions include, "buy-one-get-one-free deal", gifts and price schemes (Baike, 2012). McDonald has also gotten into promotions involving Lucky Draws, Toys, and Scratch Cards. It has ensured that most of its outlets are established in spacious places that are fitted with swings and slides for the children to have a playing ground during their visits to the outlets. The firms further serve some childrens meals in toys to motivate the children. This has in turn increased their customer base since children are among their target customers. The McDonalds also devotes special time and efforts on people as a marketing mix. Apart from its customers, it also emphasizes on the internal advertisements to its employees to ensure that they are happy so that they can extend that happiness to the customers they serve. This has been by ensuring that all employees are shown proper respect and courtesy they deserve. Employees are highly consulted for opinions on what should be improved which ensures that everyone stays happy in the organization by having the feeling of belonging (MacDonald, 2009). Bibliography Bahaudin, G., & Bina, P. (2007). McDonald’s Success Strategy And Global Expansion Through Customer And Brand Loyalty. Nova Southeastern University, 3(3), 20-27. Baike, J. (2012). McDonald’s. Retrieved 1 21, 2015, from http://baike.baidu.com/view/4676.htm?subLemmaId=4676&fromenter=mcdonald%27 Kroc, R. (2002). Grinding It Out The Making Of Mcdonalds. Boston: St. Martins Paperbacks. MacDonald. (2009). "McDonalds History -." About McDonalds . Retrieved January 21, 2015, from . Read More