Competitors and Marketing Mix Analysis: Case Study of McDonald’s

This report analyzes the competitive position of McDonald’s in the food industry, with a focus on Chicken McNuggets. It discusses the nature and strengths of competitive threats from KFC and Burger King, and the marketing mix strategy of McDonald’s.

Competitors and marketing mix analysis
Case study of McDonald’s
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Introduction
Business sectors are always exposed to a higher level of competition. The food industry is
additionally important and firms in this sector are always caring about needs and demands
among consumers. Thus strategy meaning and implementation mean a lot for the firms. In
this respect, analysis of competition and markets are of important knowledge input which
results in a better position in markets across the food sectors. In this report, a case study of
McDonald’s has been discussed to achieve better analysis and knowledge regarding the
market analysis and competitor analysis strategy of the firm.
Competitive analysis
This portion in this report focuses on a product such as Chicken McNuggets of McDonald’s
and in relation to this product, competitor analysis, and market evaluation have been
discussed.
Industry analysis - McDonald’s does operate in the food industry. The industry consists of
many firms who are very close competitors to each other. An important competitor of
McDonald’s is KFC. Chicken McNuggets is a popular product which finds competition with
an identical product named Kentucky nuggets from KFC. Thus KFC’s chicken-made product
Kentucky nuggets create direct competition for McDonald’s. The firm identified indirect
competition from Starbucks which has a presence in the food industry but products are
different to e.g. McDonald’s Chicken McNuggets (Kingsnorth, 2016).
Nature and strengths of competitive threats of KFC in the food industry
KFC has emerged as a huge brand in the food industry. Besides in Europe, the firm has a
better presence in emerging nations like China and India. KFC is the second largest
international brand across the world. The firm builds on good branding and big advertisings.
The firm is branded as a company which uses chicken as a primary product as an ingredient.
Competitive threats of KFC in the food market are identified with several features. Good
brand value and position in emerging countries have earned huge worth of business
measurable as $ 6 billion in industry. Usage of eleven types of herbs and spices as recipes
have been the remarkable protocol of KFC in a competitive market. Popularity and brand
value are able to consolidate the position in the market by promoting health awareness among
many customers (Baker & Saren, 2016).
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Competitive analysis
Direct competitors of McDonald’s are KFC and Burger King. These firms offer products
some of which are nonidentical along with some identical products e.g. Kentucky Nuggets of
KFC and Crispy Chicken Tenders of Burger King.
Strategies - nature of competitive strategies
Fast food retail industry in the United Kingdom has huge competition and is prevailed over
by some strategies which are common from the perspective of McDonald’s. However,
analysis of market and knowledge development regarding customers have a good reason for
the formulation of strategies. The most compelling and important strategies being identifiable
are market analysis and market segmentation along with creative and eye-catching
advertisings for existing as well as future customers (Cacciolatti & Lee, 2016).
Objectives
Both the firms e.g. KFC and Burger King are high on achieving market goals. These are
obviously driven by sales and profits maximization. At the same point, they view to create
strategies aiming new market segments which are health conscious customers within age
groups of children as well as adults.
In accordance with current moods of customers, both the competitor firms are looking for
increasing market share by considering demands among health-conscious people. Therefore
their efforts are based on the product making for fulfilling the demands of customers who
have a high craving for healthy and delicious products (Cacciolatti & Lee, 2016).
Strengths and weaknesses
KFC’s strengths
The firm has a higher level of global expansion with early franchising across the world with
huge potentials in China and India.
Veg and non-vegetarian food products of the firm are well accepted and this has boosted the
business and popularity of the firm among customers.
Weaknesses
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Negative publicity has been a critical factor for the firm. PETA has criticized the firm for
mistreatment of chickens. The workplace of the firm is featured with low performance caused
by high employee turnovers (Morin, 2011).
Strengths and weaknesses
Strengths of Burger King
The company has huge franchisee network supported by thirteen thousand franchises and
owned outlets.
Huge product lines have made the firm first choice among many people in the UK. If a
number of restaurants are taken into consideration, then Burger King is the second largest
firm in the world (Baker & Saren, 2016).
Weaknesses of Burger King
Nature of franchises is large and the firm faces problems in handling these further causing
operational problems.
The firm has trouble to cope with demands in mature markets dominated by health conscious
people as customers. This is the possible cause of a drop in sales and has not been ruled out
by the firm.
Marketing mix analysis of McDonald’s ( Chicken McNuggets)
Conditions in the food industry are stringent and industry is ruled by several big players.
These factors keep the firm conscientious to have proper marketing planning to ensure steady
sales and market share in the food industry in the UK. In this respect, the marketing mix is a
strategic framework of marketing which is used by the firm based on its product named
Chicken McNuggets (Cacciolatti & Lee, 2016).
Marketing mix for Chicken McNuggets
Products - The company tries to keep the products fresh and rich in quality. With the
growing amount of consciousness, the firm stresses using natural flavors on the products
including Chicken McNuggets. Quality is the vital factor the firm thinks about. Customers
are encouraged to take ingredient knowledge from the company website.
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Place - a strong and effective supply chain network is relied upon by the firm to ensure that
the product is available across all the outlets as per demands. Home delivery or delivery of
the product at convenient places for customers is another great planning for the firm to retain
popularity in competition (Crane, Kawashima & Kawasaki, 2016).
Price - competitive pricing is most suitable for the firm considering its competitors KFC and
Burger King for the identical products. However, the firm is also alert of price-related
perception among customers since too low prices of a product of demand like chicken
McNuggets could spoil high-quality perception of the product in the competitive markets.
Figure - Marketing Mix
(Source: www.promogallery.com)
Promotion-positioning and differentiation strategies are emphasized by McDonald’s in its
chicken McNuggets products. The product is positioned as different from competitors and the
products are sold under a name that is not completely separable from its brand name but
unique to other products. The firm has tried to put into the customers’ mind that the product
is not low in quality aspects and original flavors are used in the making of the product.
McDonald’s is not confidently aware of the quality aspects of the same product category of
the competitors but the firm tries to improve the perception of the product among its existing
and potential consumers (Nagle & Müller, 2017).
Conclusion
The case study described here shows the competitor and industry analysis. The competitive
position of McDonald’s in comparison to Burger King and KFC has been mentioned.
Marketing mix strategy of McDonald’s highlights positioning and differentiation and is
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influenced by knowledge based on competition and competitors in the food industry in the
UK.
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References
Baker, M. J., & Saren, M. (Eds.). (2016). Marketing theory: a student text. Sage.
Cacciolatti, L., & Lee, S. H. (2016). Revisiting the relationship between marketing
capabilities and firm performance: The moderating role of market orientation, marketing
strategy and organisational power. Journal of Business Research, 69(12), 5597-5610.
Crane, D., Kawashima, N., & Kawasaki, K. I. (Eds.). (2016). Global culture: Media, arts,
policy, and globalization. Routledge.
Kingsnorth, S. (2016). Digital marketing strategy: an integrated approach to online
marketing. Kogan Page Publishers.
Nagle, T. T., & Müller, G. (2017). The strategy and tactics of pricing: A guide to growing
more profitably. Routledge.
Wensley, R. (2016). The basics of marketing strategy. In The marketing book (pp. 75-107).
Routledge.
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