Consumer Behaviour Analysis: McDonald's Sales Decline in the UK

This report provides a comprehensive analysis of consumer behavior and its impact on marketing strategies, using McDonald's as a case study. It begins by defining consumer behavior and highlighting its significance for organizations, emphasizing its role in product innovation and sales objectives. The report then delves into the consumer profile of McDonald's, segmenting its target market into primary and secondary groups based on geographic, demographic, psychographic, and behavioral factors. By examining these profiles, the report identifies key issues contributing to McDonald's sales decline in the UK market. The analysis underscores the importance of understanding consumer behavior in order to effectively meet consumer expectations and achieve business goals, concluding that a failure to recognize consumer behavior can hinder an organization's ability to develop products that align with consumer preferences, ultimately impacting sales.

Running head: CONSUMER BEHAVIOUR
Consumer Behaviour
Name of the Student
Name of the University
Author Note

1CONSUMER BEHAVIOUR
Executive summary
This report aims to shed light on consumer behaviour in terms of evaluating effective
marketing strategy of an organisation. This report describes the role of consumer behaviour in
marketing. Consumer profile of McDonald’s has been developed in this report in terms of
recognising the needs of the McDonald’s consumers. Based on this consumer profile, it is found
out why McDonald’s has received downfall of market share in the UK. From the discussion, it is
understood that McDonald’s could not recognise behaviour of the potential consumers.
Therefore, it was unable to develop their products as per the expectation of the consumers.
Hence, it is concluded that understanding consumer behaviour is essential in terms of meeting
sales objectives in the most effective way.

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Table of Contents
Introduction......................................................................................................................................4
Consumer behaviour........................................................................................................................4
Importance of consumer behaviour for organisation.......................................................................5
Consumer profile.............................................................................................................................6
Primary segment..........................................................................................................................6
Secondary segment....................................................................................................................11
Issue identification.........................................................................................................................14
Conclusion.....................................................................................................................................14
References......................................................................................................................................16

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Introduction
Consumer behaviour is a study, which helps an organisation to be familiar with
consumers’ interest, needs, expectation, culture and purchasing behaviour. In order to achieve
success in business an organisation needs to satisfy their customers. Understanding consumer
behaviour is priority to take decision in terms of product innovation. In addition, consumer
behaviour plays an important role in determining business strategies and efficient tactics in terms
of winning consumer satisfaction. This Assignment sheds light on consumer behaviour from
different aspects of marketing. The purpose of this assignment is to evaluate consumer behaviour
in terms of detecting problem or opportunity within an organisation. In this context, consumer
behaviour of McDonalds is mainly focused in order to analyse the reason behind their recent
sales decline in the market of UK. Initially, this assignment defines consumer behaviour and the
importance of consumer behaviour for an organisation. After that, consumer profile of
McDonald will be discussed in two segments in terms of their primary and secondary market.
Consumer profile of McDonald has been developed in this report based on four factors -
geographic, demographic, psychographic, and behavioural. The analysis of consumer profile will
help to identify the issues of current market environment of McDonald in UK. Thus, the
problems and opportunities of McDonald Corporation can be predicted in terms of developing
sales rate.
Consumer behaviour
As stated by Solomon, Russell-Bennett and Previte (2012), particular community of
consumers has different attitudes in terms of purchasing product. Psychology of consumers is
necessary to take into account in this context. The study of consumer behaviour encompasses the
decision-making factors of the consumers in terms of making product choice. Consumer
behaviour varies based on the differences of geography, economy and culture. A number of
cultural people reside in a particular territory. Hence, cross-cultural diversity is essential to
consume in investigating consumer behaviour in terms of market globalisation. An organisation
needs to develop a team in order to collect data and information about cross culture of their
target territories. It is because for developing sales growth, an organisation requires to fulfil
material needs of their target consumers. In this case, product innovation and price determination

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are the two primary factors to take decision for an organisation in favour of target customers.
Solomon (2014) opined that cross culture of target consumer is the primary issue of studying
consumer behaviour. An organisation needs to concentrate on incorporating the study of
consumer behaviour. The study of consumer behaviour needs to be constant in order to identify
the changes in the market. In order to sustain in the competitive market it is essential in order to
cope up with the changes in the market.
Importance of consumer behaviour for organisation
In order to launch a new product in the market, it is essential to study the consumer
behaviour of the target audience. Otherwise, an organisation is not able to predict how the target
customers will respond in buying a particular product. Product innovation is one of the premium
needs of an organisation in order to promote business. Understanding of consumer behaviour let
an organisation to focus on product innovation in following the insights of the consumers. In
terms of accomplishing sales objectives of an organisation, study of consumer behaviour is
important. Consumer behaviour affects business in many ways. If an organisation fails to satisfy
the needs of the consumers, sales of an organisation will decline (Wilson et al., 2012). In that
case, an organisation will not be able to make the desired business revenue. Business growth and
development of an organisation will be restricted in that case. Hence, it is claimed that consumer
behaviour is considered as the tool of success in fulfilling sales objectives (Mihart, 2012).
Constant study of consumer behaviour is essential for the marketers in terms of taking
organisational decision for promoting product in the continuous way. In order to sustain in the
business, it is necessary to provide consumer friendly customer care service. In addition, in order
to keep business continuously update, constant study of consumer behaviour is considered as
reliable and reasonable. Otherwise, the marketers will not be able to cope up with the market
variables in terms of sustaining for the longer terms. The study of consumer behaviour is
important to take into concern in terms of retaining customers. Old customers are considered as
the base of securing new consumers. Hence, in order to increase the number of customers also,
the study of consumer behaviour is important. In order to take the market advantage it is vital to
keep the customer satisfied (Parsa et al., 2012). Product development is constant need of an
organisation in terms of sustainable business expansion (French & Smith, 2013). Hence, In order

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to evaluate product development, three questions are necessary to take into account in this
context.
 Who are the target consumers?
 Where do they live?
 What are the basic requirements of the target consumers?
From the above discussion, it is understood that consumer behaviour is important to the
marketers for the following reasons.
 To design the most innovative product in order to satisfy customers fully
 To take decision in the way product can be made easily accessible to the consumers.
 To take decision in order to offer the most affordable price of the consumers.
 To identify the most successful method of product promotion
 To know the other factors which are regarded in terms of influencing purchasing decision
of the consumers (Schmitt, 2012)
Consumer profile
In the year 2016, a survey over McDonald showed that it had lost nearly 500 million
orders (Mcdonalds.com, 2018). Therefore, in the UK, McDonald is facing a downward trend in
terms of securing market share. Primary and secondary market segment of McDonald is
necessary to take into account in order to investigate the problem behind the sales decline.
Primary segment
Geographic  Region: McDonald is one of the
most recognised fast food chains in
the World. McDonald Corporation
has started his journey since 1940
from California, United States
(Wilson et al., 2012). In the United
States, McDonald has 14,267

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numbers of restaurants. McDonald
has one of the largest fast food
chains throughout the United
Kingdom. It operates in UK at more
than 3000 locations
(Mcdonalds.com, 2018). However,
the company has received constant
drop of sales in the United
Kingdom. McDonald deals with
more than 115 countries in order to
operate business (Parsa et al., 2012).
After US and UK, McDonald has
primary market in which countries
are - Australia, New Zealand,
Canada, Japan, Hong Kong,
Singapore, Denmark, Sweden
(Onwezen, Bartels, & Antonides,
2014). Subway and Starbucks are
the two key competitors of
McDonald in terms of securing
consumers (French & Smith, 2013).
 Density: McDonald’s targets
consumers from the urban people.
McDonald’s has hardly any outlet
in rural area in any country. From a
survey report, it is found that in
springtime of 2016, exceeding
106.5 million consumers have been
visited McDonald’s (Mihart, 2012).
A survey reported that McDonald’s
serves 325 consumers at UK stores

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(Corporate.mcdonalds.com, 2018).
Demographic  Age: McDonald's targets children
with their parents. Primary
consumers of McDonald’s are
students. Primary consumers of
McDonald’s belong to the age
group within 8 to 27 (Parsa et al.,
2012).
 Gender: McDonald’s welcomes
both male and female crowd at their
stores.
 Life-Cycle stage: Most of the
primary consumers of McDonald’s
are found at the bachelor stage of
life (Hakala, Svensson & Vincze,
2012). In the crowd of McDonald,
school students, college students
and university students are found in
main.
 Income: McDonald’s targets people
from low and middle class
population (Paasovaara et al.,
2012).
 Occupation: Status of maximum
McDonald’s consumers is students.
A large percentage of young
employees and professionals from
generation X and Y is also found in
the crowd at McDonald’s stores
(Onwezen, Bartels & Antonides,

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2014).
Psychographic  Social class: McDonald’s aims
people from lower, working and
middle classes. The people who
visit McDonald’s store are educated
(Cherian & Jacob, 2012).
 Lifestyle: Tech savvy children,
adult students and youths are the
primary consumers of McDonald’s.
Hence, lifestyle of them is
necessary to take into consideration
in this context. Children and youths
drive their lifestyle from their
pocket money (Schmitt, 2012).
Children and youths are obsessed in
consuming fast food. This tendency
leads the children and youths of this
generation towards obesity. On the
other hand, some children and
youths are also found who are
health conscious, but do not want to
compromise in consuming cheesy
burger. In order to visit restaurants
these people prefer to have a trendy,
stylish and fun type of environment.
On the other hand, the cartoons
pictures, dummy and burgers attract
children. However, the parents are
concerned in leading their children
to eat healthy food.

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Behavioural  Degree of loyalty: Consumers of
McDonald are fond of Mac
Burgers. People love Mac Burgers
due to its leafy, cheesy and healthy
stuffs (Paasovaara, 2012). In
addition, primary consumers of
McDonald are loyal to consume
hamburgers, salads, desserts,
chicken, milkshake, soft drinks,
coffee and French fries of
McDonald. It is necessary to note
hereby that the consumers of
McDonald’s cannot be considered
as “Hard core loyal”
(Mcdonalds.com, 2018). It is
because many of the McDonald’s
consumers leave to visit
McDonald’s, either minimises the
frequency of visiting McDonald’s
stores.
 Benefits sought: McDonald’s takes
online order to serve home delivery
within three miles (Lee & Carter,
2012). On the other hand, the
products of McDonald are cost
effective. It is necessary to note
hereby that the priority of
McDonald’s consumers are cost
benefits and time efficiency (Cătălin
& Andreea, 2014).
 Personality: McDonald’s

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consumers are careless and easy
going in terms of leading life.
 User status: McDonald’s intends to
target potential and daily fast food
consumers (Hakala, Svensson &
Vincze, 2012).
Secondary segment
Geographic  Region: Parents are considered as
the secondary customers of
McDonald’s. In the context of most
McDonald’s restaurants per capita,
the top five countries are - United
States, New Zealand, Canada
Australia, Japan respectively
(Corporate.mcdonalds.com, 2018).
 Density: McDonald’s is considered
as the family restaurants. Parents
frequently visit McDonald with
their children in terms of having
snacks. In the regular crowd of
McDonald, a larger percentage of
people are parents.
Demographic  Age: The age of secondary
consumers of McDonald’s are
within 28 to 42 (Cherian & Jacob,
2012).

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 Gender: Male and Female both
kinds of consumers of every age are
able to enjoy the environment of
McDonald’s.
 Life-cycle stage: In the crowd of
secondary consumers, newly
married couples, parents, bachelors
are found (Lee & Carter, 2012).
 Income: Secondary consumers of
McDonald’s belong to the lower
middle class (Parsa et al., 2012).
 Occupation: Most of the secondary
consumers of McDonald’s are
working and house wives
(Onwezen, Bartels & Antonides,
2014).
Psychographic  Social class: Socially secondary
consumers of McDonald’s are from
middle class and lower middle
class.
 Lifestyle: McDonald’s targets tech
savvy consumers from cross-
cultural background (Cătălin &
Andreea, 2014). The people, who
are fond of trendy lifestyle, are the
target of McDonald’s.
Behavioural  Degree of loyalty: Secondary
consumers of McDonald’s are
considered as “Switchers” from the
aspect of consumer loyalty (Hakala,