University Marketing Strategy and Plan: MacDonald's Case Study Report

This report provides a comprehensive marketing strategy and plan for MacDonald's in New Zealand. It begins with an introduction to MacDonald's, followed by a product/service description. The report outlines organizational and marketing objectives, identifies market opportunities, and defines the target market. It includes a SWOT analysis, examines the 4Ps of marketing, and discusses strategic options. The report covers market performance, competitive positioning, and the external macro-environment. It also includes sales forecasts and recommendations for performance evaluation and monitoring. The analysis covers various aspects of MacDonald's business, including product development, pricing, promotion, and placement strategies. This report aims to provide a detailed understanding of MacDonald's marketing efforts and future prospects.

Running head: MARKETING STRATEGY AND PLAN
Marketing Strategy and Plan
Name of the Student:
Name of the University:
Author Note:

MARKETING STRATEGY AND PLAN
Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Product or Service Description..................................................................................................2
3.0 Objectives..................................................................................................................................3
3.1 Organizational objectives of MacDonald’s New Zealand.....................................................4
3.2 Marketing objectives of MacDonald’s New Zealand............................................................5
4.1 Identifying the opportunities and features of the market.......................................................5
4.2 Describe and confirm target market of MacDonald’s and provide assessments of current
and future demand in these target segments................................................................................6
4.3 SMART objectives................................................................................................................6
5.0 Product or Service Description..................................................................................................7
5.1. Current Market Performance....................................................................................................7
5.2 Market Position and Competition............................................................................................10
5.3 External macro-environment...................................................................................................14
5.4 Key issues................................................................................................................................17
6.0 Strategic options......................................................................................................................19
6.1 Developing strategic options for MacDonald’s...................................................................19
6.2..............................................................................................................................................22
6.3..................................................................................................................................................25
Distinctive competencies...............................................................................................................25
2

MARKETING STRATEGY AND PLAN
7.0 Marketing and positioning strategies.......................................................................................27
7.1 4 Ps of MacDonald’s...........................................................................................................27
7.2 Risk and returns...................................................................................................................28
7.3 Defining desired market position for MacDonald’s to meet organizational and marketing
objectives...................................................................................................................................29
7.4..............................................................................................................................................30
7.5..............................................................................................................................................31
8.0 Forecasts..................................................................................................................................32
8.1 Sales Forecast of MacDonald’s...........................................................................................32
9.0 Performance evaluation and monitoring..................................................................................33
9.2 Recommending corrective measures...................................................................................33
Reference List................................................................................................................................34
3

MARKETING STRATEGY AND PLAN
1.0 Introduction
MacDonald’s Restaurants Limited in New Zealand is one of the subsidiaries of the international
fast food restaurant chain of MacDonald’s. In addition, MacDonald’s in New Zealand operates
in more than 160 restaurants that opened in and across the world that serves an estimated 1
million people per week. Nature of restaurant is to serve good quality of food to the people.
This fast-food restaurant chain sells products like hamburgers, French fries, soft drinks, pies,
breakfast items, milkshakes, cheeseburgers, desserts, chicken, and coffee. All health and safety,
rules are followed by them .Main ambition /purpose of MacDonald’s is to give affordable or
cheap prices ,good customer service with good quality of food to customers .Here customers can
come to restaurant any time to have food ,as most of stores open 24 hours ,if they are in rush they
can choose drive thru service. MacDonald’s have good scope in future. In every year they open
1000s of restaurants .They offer everything in one shed like variety of food , café , some foods
which is likes by health conscious people and they organize parties as well .hence we can say
they have good future . MacDonald’s in New Zealand head quarters operations are based at
Greenlane in Auckland. MacDonald’s is also known as Macca (Wu, 2016).
2.0 Product or Service Description
MacDonald’s in New Zealand sells product that is consistent in the international markets that
include signature product of the chain (Big Mac). There are various products that are unique to
the New Zealand menu of MacDonald’s and these are as follows:
Kiwiburger-
Kiwi Big Breakfast
Massive McMuffin
4

MARKETING STRATEGY AND PLAN
George Pie
The Boss
Breakfast Bagels
Chicken McMuffin
Deserts-.
Café
Services –main purpose of the organization is satisfy the customers and put smile on their face ,
as they are very good at customer service .they hire good and friendly staff for good customer
service. They offer services like free wifi to customer, din in or drive thru option, arrangements
for party’s .they give best deals to customers in reasonable price so customer can come again and
again.
3.0 Objectives
3.1 organizational objective –these are those objective in which organization set some goals and
to achieve those goals in future they communicate with staff and other members of organization
which are brand reputation, attracting more customers and provide good quality of food . every
organization put main concern on long term objective . Some up of objectives are vision and
mission, targets and sale of organization.
3.1 Organizational objectives of MacDonald’s New Zealand
MacDonald’s reputation within the industry- One of the organizational
objectives of MacDonald’s New Zealand is to maintain their current position and
take an effort to occupy the topmost position in long run.
5

MARKETING STRATEGY AND PLAN
Higher customer satisfaction- MacDonald’s New Zealand aims at satisfying the
existing customers as well as makes an effort to acquire new customers for the
restaurant. The restaurant should be a place for all types of people where they
will continue to develop both their burgers as well as healthier alternatives.
MacDonald’s New Zealand should keep their original brand intact (Solomon,
2014).
Reinforcing MacDonald’s image with a new communication focus-
MacDonald’s New Zealand has to put main focus on creating new image as well
as perception of fast-food chains.
Profit and market targets – the main aim of McDonalds is more sales and
maximum profit , they using since from gown age of their business .through this
way they gain more profit from customers ,like they once they sell two cheese
burger just for $5 ,at that time there sales go up much higher and they achieve
more profit and customer attention as well .in market targets McDonalds got
competition from KFC, subway etc they set 60 percent of market shares to target
market for the good sake of company growth and brand reputation .
3.2 Marketing objectives of MacDonald’s New Zealand
Promotion of products-as Macdonald’s always introduce in new products they
should promote those products through advertisement to create awareness of new
product among customers .80 percent of sale can increase by doing promotion .
Attracting new customer-to reach main purpose as to gain more profit, they
always think about customers, if you have more customers sales can go up
6

MARKETING STRATEGY AND PLAN
automatically. So by providing best customer satisfaction we achieve that
objective.
Target sales –target market is very important hit sale area, organization think for
target market first then set some targets to hit that. Like they want to hit 80
percent if target customers by the end of year 2017.
4.1 Identifying the opportunities and features of the market
McDonalds’ should be located in that area which is full population and side by side there is no
burger king and KFC McDonalds is fast food chain and people loved it .their strong brand
power name does not effect it sales even if there are small shops around that . if any want make
money he or she can open this business .macca has different variety of burgers , drinks , desert ,
coffee .they always take care of following points for long term of opportunities .
Health and wellness trends in fast food
Focusing on local produce
Influencing the youth generation
7

MARKETING STRATEGY AND PLAN
4.2 Describe and confirm target market of MacDonald’s and provide assessments of
current and future demand in these target segments
People with high class-when it comes under high class people they always think about good
quality large variety of products range, they never think about price when they buy them. People
with good income and jobs come under this category.
People with middle class- they always want best deals and affordable price because they always
look for those deals. Macdonald’s comes with special meals and deals which are very affordable
and reasonable .like their 6 dollars value meal pack
Current and future demands
4.3 SMART objectives
Business objective
Organizational support-MacDonald should provide best customer service and food quality for
customer satisfaction. For customer satisfaction Product has be affordable and customer loyalty
is must to stay in business.
Profit target-to maximizes profit we should decrease the wastage, increase the supply of product
and give best customer service to increase the sale.
Target market-they should have plan to increase no of customer every year. They should launch
more deals and products to gain attention from customers.
Marketing objective -we need to hit target market to sustain in business. We should provide a
better deals from competitors and we should always promote our business so we can attract
more customers . Distribution should be good and customer satisfaction is must.
8

MARKETING STRATEGY AND PLAN
5.0 Product or Service Description
5.1. Current Market Performance
5.1.1 4 Ps of marketing of MacDonald’s
4 Ps Strategies Impact
Product Product Development-
MacDonald’s believes in
introducing innovative menu as it
will help in increasing revenue
by 20% by the end of 2019.
MacDonald’s even make
strategies tin which customer can
spend minimum amount of
money and get offers for kids and
kids meal could be free.
Innovative products will help in
improving product, service and
quality within the business
It will even help in expanding the
business of MacDonald’s and
gaining new or potential
customers
Price By using Market Penetration
pricing method Here, the main
focus of the strategy will be to
attract or acquire new customers
for the business
Bundle pricing or happy family
meal as it is considered as one of
the best strategy for increasing
the sales where MacDonald’s can
offer free frozen drink or ice-
After implementing those
strategies, it will help in
understanding the state of
MacDonald’s in the current
marketplace
It will help in keeping a track of
unsold items as well as increase
the perception value of
MacDonald’s in the eye of
customers
9

MARKETING STRATEGY AND PLAN
cream with any purchase items of
20 dollars.
Promotions Social media is one of the most
appropriate way to promote the
products or services of
MacDonald’s such as Facebook,
Instagram, Google Plus and
Twitter
MacDonald’s can even start
indoor activities to increase their
sales
They attract their customers by
their slogans as well
“I’m loving it ”
“just because”
“ more than you expect”
Promoting a product of
MacDonald’s is less costly by
making use of electronic devices
as well as effective way to
increase sales
Individuals will show interest in
purchasing deals with a
viewpoint to win the contest and
this will ultimately be a reason
for increase in the sales .activites
while eating is good for children
so the whole family come which
increase in sales .
Place Selective strategy will be the best
at the time of planning for a
location otherwise sale will be
hampered. Busy streets or malls
should be well-suited to open a
store of MacDonald’s.
Individuals will be always
attracted to a place where they
can both shop and eat at the same
time. Opening a store of
MacDonald’s at malls will help
in getting access to more
customers.
SWOT analysis of MacDonald’s New Zealand
10

MARKETING STRATEGY AND PLAN
Strengths Weakness
Strong brand image
Standardized process
Moderate market diversification
Low product diversification
Limited process flexibility
Vulnerability to market decline
Opportunities Threats
Product diversification
Market development
Expansion in the developing countries
Healthy lifestyles trends
Aggressive competition
Trends and regulations
5.1 2.
Recently they launch new game which is play monopoly in which customer can buy products
from Macdonald’s and they get coupon to play game after this they can win a lots of prizes like
Suzuki swift car ,Wilson free car parking for one year , many more gadgets , TV, holiday trip,
cash coupons , McDonalds’ coupons and some more . In that way, individuals will purchase
more and more products to win items and that will positively be a reason to sale increase for
MacDonald’s. They have special schemes for kids as well because kids are accompanied by
parents. Targeting kid segment will automatically take into account entire family and their
preferences to food items. This, in a way will help MacDonald’s to boost their sales and generate
profits in the near future. (macca monopoly play )
11

MARKETING STRATEGY AND PLAN
5.1.3
Some of the strategies need to be adopted by MacDonald’s so that they can attain future goals as
well as objectives. Using 4Ps model help in promoting pricing, product as well as placing of
MacDonald’s
Addition to that, 4Ps model will help in achieving the target market such as increase in revenue,
acquisition of new customers as well as affordable and reasonable pricing with proper
distribution in and across the country. Objectives can meet by doing advertisement with proper
description of product and price current organizational strategies can achieve by these market
performances.
5.2 Market Position and Competition
5.2.1 Business Life Cycle
Business Life Cycle is one of the model that can be used by every organization which have five
main stages that include beginning, development, growth as well as maturity and decline.
MacDonald’s is an already existing fast food restaurant chain. McDonalds’ is already on the
maturity stage where people know about MacDonald’s and the only need is to maintain the
current position and fight against the competitors by selling unique products. Newly introduced
new MacCafe by MacDonald’s are at beginning stage
For development and growth stage, MacDonald’s plans to open new stores in developing
nations. In order to understand the position of MacDonald’s in best possible way, it is important
to conduct product portfolio analysis and BCG matrix for the product offered by MacDonald’s.
BCG Matrix and product portfolio analysis Products and services
12