Competitors and Marketing Mix Analysis: Case Study 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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