Running Head: MARKETING 1.0 IntroductionThe focus of this research is the service industry with specific interest in the service industry especially the café business, McDonalds will be used as a case study. The purpose is to analyze the target market, understand the strategy employed and how McDonalds positions itself to better relate with its consumers. Apart from secondary sources, the information will be gained by observation by visiting the location. 2.1 Service Product Café The location, positioning, and the products offered are among the things a consumer looks at before visiting a specific location. Depending on the target group, most of the Y generation, acommon target group, especially those between 15 and 30 are after convenience offered and are highly price sensitive. This particular age group is very particular about getting value for their money. Quality of service and food appear to be a differentiating factor among the players in the service industry. The consumer has become very sensitive and more so audible in terms of the services they expect, what the café promises, and what they get. In addition, ina world of social media failure to meet the criteria translates to exposure and sharing(Desmet & Hekkert, 2007). 3.0 Target Market, Strategy, and Positioning 3.1 Market segment Type of segmentation Segmentation criteriaMcDonald’s target segment Geographic Region Domestic/ international Density Urban/ Rural Demographic Age 8-45Gender Males and females Stage Young and single and have moved out of parents homeNewlyweds with no kids Family with children
MARKETING2Income Low and middle Occupation Students, employees, & Professionals BehavioralOccasions Parties Benefits Cost, convenience, and time efficient User status Regular fast food consumer Psychographic Social class Lower, working, and middleclassLifestyle People from all classes of life with age as the main driving factor Source:[ CITATION Joh161 \l 1033 ]McDonalds pursues precise segments in the market, which they use to customise various products based on the segment. According to the table 1, market segment includes four big part, which are geographic, demographic, psychographic, and behavioural. Geographic part include a location of the store, demographic part includes occupation, age, gender, stage in life cycle, and income, psychographic include social class, lifestyle, and behavioural include occasions, benefits, and social class. For McDonald’s demographics is mostly used in segmentation with key interest in age. Young urban families, youth, and children forms part of their key focus market (Teece, 2010).Age is the main driving factor as the consumer needs and wants change with age. McDonaldshave packaged their products to appeal to a diverse age group with specific focus on the Y generation who are concerned with quality, convenience, and time efficiency. For instance, toappeal to children on top of the Happy Meal there are assortment of toys to accompany that include Disney World characters. Also some of their outlets have special gaming locations where children have an opportunity to play arcade games (McKechnie, Grant, & Katsioloudes, 2008).
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