Strategic Marketing Plan for McDonalds Australia Holdings Ltd - Case Study Example

Marketing Report By [Student’s Name] [Code + Course Name] [Name of Tutor] [Name of University] [City, State] [Date of Submission] Executive Summary McDonald’s Australia Holdings, a company specializing in Food and Beverage services, was established in 1969 and it’s situated in Thornleigh, New South Wales, Australia. The company has been concentrating on the local Australian market with the aim of establishing and operating family restaurants that meet the demands of high, as well as low income earners. However, McDonald’s Australia Holdings Ltd has intentions of expanding the business to other cities across Australia before venturing into the Europe, Africa, and US markets. The company intends to implement the set objective through setting a market niche and positioning for the Food and Beverage services in the market. This report provides a strategic marketing plan for McDonald’s Australia Holdings Ltd that includes the SWOT analysis, target market, customer value proposition, marketing segmentation, marketing mix variables among others. 1.0 Introduction and background to the company One of the fastest growing sectors in Australia is food and beverage sector. The food and beverage sector, in Australia, is dominated by giant corporations with established brand names. This has forced growing business to embark on value adding in order to gain a greater market share. Today, food and beverages enterprises in Australia play a prominent role in enhancing the Australian economy. The food and beverages firms form the seedbed for Australian economy because they provide employment opportunities to a large mass of people. That notwithstanding, the food and beverages industry in Australia is faced with numerous challenges, which hinder the realization of its full potential. One of the main challenges is the import invasion by international firms. McDonald’s Australia Holdings Ltd has for long dominated the food and beverages market in Australia. McDonald’s Australia Holdings is committed to quality, reliability and cost effectiveness as far as food and beverage services are concerned. McDonald’s Australia Holdings has recorded continuous growth in sales and profits between 2000 and 2012. In 2012, the business created a total income of 1,599,990,000 USD. 2.0 McDonald’s Australia Holdings SWOT Table Strengths -Strong brand image of the company -Management strength -Stores expansion Weaknesses -Intense competition Opportunities -Increase in population -Market Expansion Threats -Inferior commodity - Heavy advertisements by the competitors 3.0 McDonald’s Australia Holdings SWOT Analysis 3.1 Strengths The strengths involve the aspects of an enterprise that provides it with an advantage as compared to the other firms in the entire industry (Hitt, Ireland & Hoskisson, 2010).The following are the greatest strengths for McDonald’s Australia Holdings; The senior leadership team at McDonald’s Australia Holdings has built a strong organization by setting out a clear vision. The CEO, Catriona Noble, strongly believes in maximizing on the McDonald’s Australia Holdings strength and improving on the company’s short falls. In addition, Catriona Noble values the dynamism, professionalism, enthusiasm, work ethic, time management, and control among others. These values have made McDonald’s Australia Holdings be one of the best Food and Beverage outlet in Australia. Furthermore, the management team at McDonald’s Australia Holdings has identified appropriate retailing sites and/or locations. McDonald’s Australia Holdings retail shops are located in most populous states, in Australia such as Adelaide, Collingwood, Ascot WA and Brisbane, Adelaide. Good location has made it possible for the company to make huge sales over the years (Hitt, Ireland & Hoskisson, 2010). McDonald’s Australia Holdings is renowned for having a strong brand and image. This is as a result of producing high quality and trendy products. In addition, these products are pocket friendly and affordable by people from all classes in society. In turn, high profit margins are recorded by the company because of high sales. 3.2 Weaknesses Weaknesses entail the aspects of an enterprise that create a disadvantage to the firm (Hitt, Ireland & Hoskisson, 2010). The following is a major shortcoming that can hinder McDonald’s Australia Holdings from achieving its objectives; there’s stiff competition in Australia’s food and beverage sector. Usually, rival firms among them Competitive Foods and Yum! Restaurants Australia spends more advertising and promoting their brands, as opposed to McDonald’s Australia Holdings. Thus, they are able to enjoy greater market share. 3.3 Opportunities Opportunities could be defined as the chances that enable a firm to perfrom exceedingly well and achieve its objectives (Hitt, Ireland & Hoskisson, 2010). The following are the main opportunities of McDonald’s Australia; An increase in the Australian poplation could result in an increase, in McDonald’s Australia Holdings sales volume. The number of the youths in Australia is rising by the day and it is believed that the youths are the largest consumers of food and beverage. This, therefore, implies that with the growing number of people, McDonald’s Australia Holdings market share is bound to increase. This also calls for McDonald’s Australia Holdings to start taking its promotion campaigns to other major cities in order to increase its market share. In addition, the youths are also believed to have a high disposable income, and therefore, McDonald’s Australia Holdings is in a better position as far as sales volumes are concerned. Another opportunity for McDonald’s Australia Holdings is the plans to invest in other nations. Thus, McDonald’s Australia Holdings will be able to enhance its market niche. 4.0 Threats Griffin (2011), in his studies, emphasized that threats have the effect of hindering the firm’s growth as well as profitability. With regards to McDonald’s Australia Holdings Ltd, the following are the main threats that can prevent it from achieving its set goals; Massive adverting campaigns by the competitors and hence expanding their market share. Such rival firms spend huge amounts of money to advertise their products. Beverages such as wines and beer are not necessity implying that people can do without them. They are thus inferior commodities, and therefore, the consumers enjoy high bargaining power, and this is a threat to the company. 5.0 Recommendations In the modern business panorama, organizations have become adept at enhancing customer relationship. With this regards, McDonald’s Australia Holdings should research on consumer preferences and behavior, divide consumers into distinct segments and improve their products in search of a competitive advantage. a. Target market McDonald’s Australia Holdings should divide its target market into local and international. The local market should consist of the residents of major cities such as Adelaide City and Melbourne city. The local market should further be divided into young and aged family groups. The demographics of Australia’s major Cities provide a promising market for McDonald’s Australia Holdings. b. Positioning McDonald’s Australia Holdings should also position itself in order to create a niche in the foods and beverages market in Australia. This can be realized through branding of the products, campaigns and promotions for the products as well as ensuring consistency in the look and quality of the products. The product should also be visually appealing, inspirational and easy to identify from other brands and products. In so doing, the consumers will be made aware of the products and its superiority over the other brands and products. To realize this goal, several factors should be put into consideration. These include images and name that is easy to associate with foods and beverages, appeasing and attractive brands to prompt impulse buying of the products as well as constant promotions across the market to increase the clientele base. The promotion will also target at informing the target clients on the taste and diverse uses of the foods. The branding process will ensure the product’s uniqueness and align consumer’s expectation with the product. Lastly, the slogan should be informative and precise to appease the clients. c. Customer value proposition McDonald’s Australia Holdings should aim at delighting clients by providing them with excellent and dynamic services. Satisfied clients tend to be more prices responsive and consequently more profitability for their businesses. When McDonald’s Australia Holdings satisfy their clients, the clients will in turn pay a reasonable price for the services and hence profit for the business. According to Griffin (2011), satisfied guests not only come back to the same hotel but also talk positively to their colleagues about their satisfaction. Therefore, senior managers at McDonald’s Australia Holdings should not bear the view of producing profits as the sole reason of being in the business. d)Marketing mix variables. Marketing mix refers to the identification of the unique characteristic of the business that enhances profits in the long run. Further, marketing mix involves a combination of four factors including product, place, price and promotional strategies (Burrow & Bosiljevac, 2011). In today’s competitive market, Bunning’s cannot afford to be excited by achieving high sales in the Indian market. McDonald’s Australia Holdings should thus look at product critically to come up with the right marketing mix that will keep the clients lured in the long run. 6.0 Conclusion Today’s market has become extremely competitive, and businesses must be well positioned if they are to succeed. This means winning customers from competitors and then retaining and growing them by delivering greater value. McDonald’s Australia Holdings must identify their customers’ needs in order to satisfy them. Product success in the market is dependent on the marketing plan and strategy used. Marketing research helps the business in identifying consumer needs. Understanding the market well gives the business the opportunity to tackle competitors. A proper marketing strategy steers changes and development. 7.0 References Burrow, J.L. & Bosiljevac, J.2011.Marketing.Ed:3.London: Cengage Learning. Griffin, R. (2011). Fundamentals of Management.Ed: 6. London: Cengage Learning. Hitt, M, Ireland, R & Hoskisson, R. (2010).Strategic Management: Competitiveness & Globalization, Concepts: Edition9.London: Cengage Learning. Read More