HI5004 Marketing Management: McDonald's Bacon & Beef Burger Report

This report provides a comprehensive marketing analysis of McDonald's Bacon and Beef Burger. It begins with an introduction to the product, followed by an examination of its competitive landscape, including key competitors like KFC and Subway. The report utilizes PESTLE, SWOT, and Porter's Five Forces models to conduct environmental scanning, assessing political, economic, social/cultural, technological, and ecological factors. It forecasts demand and analyzes market segmentation, targeting the youth demographic, and positioning the brand. The report covers product strategy, service differentiation, and quality control, and explores value creation and market leadership. It also details product design, taste, and pricing strategies, including an integrated marketing communication (IMC) approach with channels like radio, print media, and social media. The report concludes with an overview of the demand for the burger and suggests strategies for enhancing profitability through the adaptation of the set strategies.

MacDonald’s Bacon and Beef Burger
MARKETING MANAGEMENT

The presentation will address the following key points.
 Brief introduction of Bacon and beef burger
 Competitive information
 Environment scanning
 Demand forecasted, Market segmentation, Targeting and
positioning
 Value creation and market leader
 Design and taste
 Pricing strategy
 Market channels and distribution system
 Market logistics
 Value network
 Integrated marketing communication
INTRODUCTION

BACON AND BEEF BURGER
Bacon and beef is a famous burger offered by a
recognized brand named ‘McDonald's’.
It is mainly developed for meat lovers.
It is the inclusion of beef and bacon in a single burger.
COMPETITIVE INFORMATION
Its major competitors are KFC and Subway.
Speedy service, experienced employees and other
strategies are used to avoid competition (Feeds,
2019).

PESTLE ANALYSIS
1. POLITICAL FACTOR: Government health and tax law affect the
possible demand of Beef supply.
2. ECONOMIC FACTOR: Fluctuation in inflation rate and youth
population affect the burger demand.
3. SOCIAL/CULTURAL FACTOR: High health concern and age factor
has a role in its demand.
4. TECHNOLOGICAL FACTOR: It has assisted by boosting sale
through online ordering.
5. ECOLOGICAL FACTOR: Climatic change affect the consumption of
beef burgers.
ENVIRONMENT
SCANNING

SWOT ANALYSIS
1. STREGTH: Better taste, high quality, brand name,
easy availability of raw material for burger.
2. WEAKNESS: High product price, consumed by
specific meat lovers.
3. OPPORTUNITIES: Rising youth population, online
market and busy lifestyle of Australians.
4. THREATS: Trend of health concern, religious
influence, change in customer taste and
preferences, change in rules and regulations.

PORTER’S FIVE FORCE MODEL
1. Competitive rivalry: High competition from KFC and
Subway
2. Bargaining power of customer: High bargaining power due
to easy availability of beef burgers
3. Bargaining power of suppliers: Low bargaining power due
to large number of suppliers
4. Threat of substitutes: High threat from KFC and Subway
beef burgers
5. Threat of new entry: High threat due to low switching cost

DEMAND FORCASTED
As per the survey, the possible demand of Beef and Bacon burger
will going to enhance in future.
MARKET SEGMENTATION
MacDonald's has divided its Australian market based on age
factor.
TARGETING
Its target market is ‘Youth’.
To align with the target market, it has kept its burger price
affordable.
POSITIONING
MacDonald's is perceived as ‘Quick service restaurant’ in
Australia.

PRODUCT STRATEGY
McDonald's has adopted product leadership.
It has developed a strategy of providing fast and speedy service
(Dodds et al., 2014).
SERVICE DIFFERENCIATION
Use of machines is developed to reduce product wastage.
It assist in lowering its burger price than competitors.
QUALITY
McDonald’s uses high quality raw material for burger preparation.
It focuses on using beef of specific nutrient content.
AUGMENATED VALUE
McDonald’s lay prior attention in maintaining hygiene.
Positively address the customer's.
CREATING VALUE

MARKET LEADER FOR THE PRODUCT
McDonald's was marked as largest food
restaurant in 2017.
Other market leaders are Hungry jacks, Subway
and KFC
PRODUCT DESIGN AND TASTE
In the fast food industry, McDonald's Beef and
bacon burger emerged as a market leader.
It focuses on urban families that attains high
preference for beef and bacon.

ESTIMATED TIME OF ADOPTION AND
PRICING STRATEGIES
Pricing strategy: ‘Focused and leadership strategy’
McDonald’s considers the following before setting
its price:
1. Price objective
2. Possible demand
3. Total cost of production
4. Analysis of competitors price
5. Chooses the suitable pricing
6. Price identification of burger (Spann et al., 2014)

INTEGRATED MARKET CHANNELS AND
DISTRIBUTION SYSTEM
McDonald’s has integrated supply chain.
It relies on franchising system to offer its
products (Beske et al., 2014).
MARKET LOGISTICS
McDonald’s uses lean system for the preparation
of Burger.
It reduces its time taken to serve per order.
It develop the use of machines to provide fast
service.

VALUE NETWORK
It relies on integrated marketing channel.
To align with marketing channel, McDonald’s has
adopted franchising system for product
distribution.
DEMAND CHAIN PLANNING
It highly contributes to business performance.
 McDonald's lays prior attention in developing its
value chain through distribution system.