M003 - Detailed Marketing Plan for McDonald's Singapore Launch

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This marketing plan assesses McDonald's Singapore's strategy for launching the McCheese Potato Burger. It includes a situational analysis using PESTEL and Porter's Five Forces, SWOT and TOWS analysis, and defines SMART marketing objectives. The plan outlines marketing strategies using the Ansoff Matrix, focusing on product development. It details implementation through the marketing mix (product, price, place, promotion), action plans, and control measures for evaluating objectives. The report concludes with recommendations for successful product launch and promotion in the Singapore fast-food market. Desklib provides access to this and other solved assignments for students.
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Running head: MARKETING PLAN FOR MCDONALDS SINGAPORE
Marketing Plan for McDonalds Singapore
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1MARKETING PLAN FOR MCDONALDS SINGAPORE
Executive Summary
McDonalds Singapore is one of the most popular of fast food outlets in the city of Singapore and
is known to attract customers at all times of the year. McDonalds Singapore caters to the tastes
and requirements of both vegetarian and non-vegetarian customers and has recently decided to
launch what is known as the Mc Cheese Potato burger in order to provide its vegetarian and
vegan customers with more options to choose from. This report prepares a marketing plan based
on detailed situational analysis that can be used by McDonalds Singapore to launch its new
burger in the Singapore fast food market. The report concludes with a number of useful
recommendations that can be considered by McDonalds Singapore for implementation to ensure
the successful sales and promotion of its new burger.
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2MARKETING PLAN FOR MCDONALDS SINGAPORE
Table of Contents
1. Introduction..............................................................................................................................2
1.1. About McDonalds Singapore............................................................................................2
2. Part 1 – Situational Analysis....................................................................................................3
2.1. Macro Environment Analysis...........................................................................................3
2.1.1. PESTEL Analysis..........................................................................................................3
2.1.2. Porters 5 Forces Analysis..............................................................................................5
2.2. Micro Environment Analysis................................................................................................6
2.2.1. SWOT Analysis.............................................................................................................6
2.2.2. TOWS Analysis................................................................................................................8
Part 2 – Marketing Objectives.....................................................................................................9
1. Marketing Objectives of McDonalds Singapore for New Mc Cheese Potato Burger using
SMART Criteria..............................................................................................................................9
Part 3 – Marketing Strategies........................................................................................................10
1. Establishment of Marketing Strategies using the ANSOFF Matrix.......................................10
1.1. Product Development......................................................................................................10
Part 4 - Implementation of Marketing Strategies..........................................................................11
1.1. Marketing Mix................................................................................................................11
Part 5 – Action...............................................................................................................................14
Part 6 – Control..............................................................................................................................14
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3MARKETING PLAN FOR MCDONALDS SINGAPORE
1. Evaluation of Marketing Objectives using SMART Criteria.............................................14
Conclusion/Recommendations......................................................................................................16
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4MARKETING PLAN FOR MCDONALDS SINGAPORE
1. Introduction
McDonalds is one of the largest and most renowned of fast food joints in the whole
world. McDonald’s burgers and fries are popular among people of all ages. The company is
headquartered in the United States of America, and it runs branch operations in different parts of
the world, both in the Global North as well as in the Global South. This report prepares a
marketing plan for McDonalds Singapore that it can use to launch and promote a new product,
known as the Mc Cheese and Potato Burger. This brand new vegetarian burger is going to be
unique in taste and appeal as it is made with generous dollops of cheese and hash browns, with a
few boiled greens thrown in. The report is prepared using detailed situational analysis and
mentions the marketing objectives and the marketing strategies of McDonalds Singapore,
concluding with effective recommendations that can be taken into consideration by the company
for launching its product with success and ensuring huge takers for it upon doing so.
1.1. About McDonalds Singapore
McDonalds Singapore is a prominent fast food destination in Singapore that caters to the fast
food requirements of the young and the old, the rich and the middle income customers in many
ways. The McDonalds Singapore burgers and fries are much sought after, largely because of
their delicious meat and also because of the fact that the quality of meat used by McDonalds
Singapore to make its burgers is of a very high standard. McDonalds Singapore also offers a
wide array of vegetarian burgers, and makes an effort to come up with new varieties of the latter,
to cater to the specific requirements of vegetarian customers.
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5MARKETING PLAN FOR MCDONALDS SINGAPORE
2. Part 1 – Situational Analysis
2.1. Macro Environment Analysis
2.1.1. PESTEL Analysis
Political – Singapore is a country that is characterized by a high degree of political stability.
Singapore is a democratic nation and is also a First World Country. It is a member of the
Association for Southeast Asian Nations or ASEAN as it is commonly known, and enjoys
harmonious diplomatic relationships with other ASEAN member states (Henderson 2016). The
steady and secure political climate in Singapore will give McDonalds in Singapore the flexible
and dynamic environment that it needs to launch its new food product, the Mc Cheese Potato
Burger in the market.
Economic – The country of Singapore is a free market economy with diversification having
taken place in a number of sectors. Although the economy of Singapore is one that is growing at
a slow and steady pace, the country has recently witnessed a number of problems in the
economic sector such as labor shortages, the rising cost of labor, and a decline in productivity. In
spite of such seemingly negative trends, McDonalds in Singapore will be able to access the
human and financial resources that it needs to launch its new Mc Cheese Potato Burger in the
Singapore market with success.
Social – Singapore is a nation that features a multiethnic society. There are people from diverse
ethnic backgrounds living in Singapore such as ethnic Malays, Indonesians, Chinese, Japanese,
Koreans, Indians, and of course the native people of Singapore. Society in Singapore is
progressive and liberal. It is an international destination, and this is evident in the fact that there
are no restrictions levied here on the way in which people should live their lives. The social
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6MARKETING PLAN FOR MCDONALDS SINGAPORE
fabric of Singapore will give McDonalds Singapore the autonomy and the freedom that it needs
to produce and launch the Mc Cheese Potato Burger without inviting any dissent or opposition
from the different communities of people living in Singapore.
Technology – Singapore is one of the most technologically advanced countries in the Southeast
Asian region. There has been a rapid growth in technological development in this part of the
world, something that is primarily attributed to the use of the internet. The internet has facilitated
communication in Singapore has transformed the way in which people lead both personal and
professional lives. The technological developments that have taken place in Singapore over the
last ten years and which continue to take place, will enable McDonalds in Singapore to sell its
new Mc Cheese Potato Burger using e commerce platforms and mobile applications, with
customers being in a position to sit and order this food from the comfort of their own home
instead of having to visit the McDonalds Singapore store in person, in order to do so.
Legal – There are no stringent laws or legal framework in Singapore that can restrict the growth
of enterprise. Business transactions in Singapore are protected by a variety of legislations that are
in place for this purpose such as Intellectual Property Rights, Electronics Transactions Act,
import and export regulations and regulations to protect businesses from incurring and dealing
with tax issues. As such, Harrington, Ottenbacher and Fauser (2017), states that McDonalds
Singapore will come across the secure legal system that it needs to count on in order to be able to
launch its new product, the Mc Cheese Potato Burger in the market in Singapore and without
worrying about incurring any legal trouble or hassle upon doing so.
Environmental – There is a concern on the part of the administration in Singapore as well as the
people of Singapore for the surrounding natural environment, with people engaging in eco-
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7MARKETING PLAN FOR MCDONALDS SINGAPORE
friendly lifestyles here for the most part. McDonalds Singapore has to take care to engage in the
use of environment friendly measures such as refraining from the use of plastic and avoid any
pollution generating activities when it performs the operations that are needed for launching its
Mc Cheese Potato Burger in the market.
2.1.2. Porters 5 Forces Analysis
Competitive Rivalry – Competitive rivalry is high for McDonalds Singapore. The demand for
fast food is quite high in a country like Singapore. People of all ages, all cultures and all
economic backgrounds are seen to engage in the intake of fast food in Singapore. As a result,
there are many burger joints and fast food centers operating across the length and breadth of the
city, that offer delicious burgers and fries for customers to try out. As identified by Mathur
(2017), many of these burger joints do cater to the needs and requirements of vegetarian
customers. McDonalds Singapore is going to have to take care to produce and market its new Mc
Cheese Potato burger in such a way, that it manages to draw the attention of its target audience in
Singapore in spite of there being so much competition and rivalry.
Supplier Power – Due to the prevalence of so many fast food joints in the city of Singapore, the
power of suppliers who provide all the essential ingredients and other suppliers needed to make
and sell the fast food is low. There are many suppliers in operation in the city catering to the
requirements of all these fast food destinations, which is why there is no single supplier who can
act heavy handed and refuse to deliver supplies even if he wants to as there will be someone else
to make that supply available even if he does so.
Buyer Power–Again, due to the fact that there are so many fast food bistros and joints located in
Singapore, there are many options for buyers to choose from when it comes to the purchase of
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8MARKETING PLAN FOR MCDONALDS SINGAPORE
fast food. The buyer power for McDonalds Singapore is therefore quite high, especially since
there are many burger places that offer similar fries and burgers for rates that are lower than the
rates charged by McDonalds Singapore for its fast food.
Threat of Substitution – Since McDonalds Singapore like all other McDonalds fast food chains
worldwide follows a unique formula for making its burgers, the threat of substitution in low.
There is no other fast food bistro or burger joint that will be able to make a burger, vegetarian or
non-vegetarian that tastes a lot like, or exactly like the burgers that are available at McDonalds
Singapore.
Threat of New Entry – The love for fast food among the average Singaporean and the rapid
growth of fast food centers in each and every part of the city of Singapore implies that the threat
of new entry for McDonalds Singapore is quite high. A new burger joint can come up in
Singapore at any point of time which draws away the target audience of McDonalds Singapore
by making tastier burgers and which are made available at lower prices.
2.2. Micro Environment Analysis
2.2.1. SWOT Analysis
Strengths – McDonalds Singapore is serviced by highly skilled staff members that includes
burger and pastry chefs as well as waitresses, waiters, restaurant cleaners and store manager, all
of whom work tirelessly day and night to cater to the needs and requirements of customers in
Singapore (Kraak, Rincón‐Gallardo Patiño and Sacks 2019). The McDonald’s burgers and fries
are characterized by a delicious taste, with McDonalds Singapore taking every care to ensure that
it serves the highest quality meat to customers. The vegetarian burgers are equally delicious and
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9MARKETING PLAN FOR MCDONALDS SINGAPORE
melt in the mouth. The burger ingredients are entirely healthy in consumption and are certain not
to trigger health issues in customers, such as allergy or food poisoning.
Weaknesses – McDonalds Singapore like all other McDonalds chains worldwide, avoids being
too innovative with its fast food. It sticks to the tried and the tested, rarely introducing anything
new for its target customer base in the city. The price that is charged by McDonalds Singapore
for a burger also tends to be much higher than the price of a burger in any other burger joint in
the city, with there not being too many combo meals on offer.
Opportunities – Since the love for fast food in the city of Singapore is really great, there is
plenty of scope for an organization like McDonalds to grow and expand and attract a wider range
of customers than what it is able to do at present. By coming up with new and more innovative
burgers, such as the Mc Cheese Potato Burger, this fast food destination will be certain to grow
even larger and more well known in the city of Singapore in the years and the months to come.
Threats – It is important to remember, that since the fondness for fast food is something that
exists in the average Singaporean, there are many new fast food joints coming up in different
parts of the city that are likely to post stiff competition to McDonalds Singapore. McDonalds
Singapore needs to be able to market its burgers and fries in the most unique of ways, if these are
to stand out in the market from what is being made available by rivals and competitors. The
threat of competition is very high for McDonalds Singapore (Al Muala 2018). There is also the
threat of labor trouble for McDonalds Singapore to deal with. Due to the rising costs of labor in
Singapore, McDonalds Singapore needs to keep revising its remuneration for service bearers, in
order to avoid high employee turnover and ensure good business growth in the long run.
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10MARKETING PLAN FOR MCDONALDS SINGAPORE
2.2.2. TOWS Analysis
Strengths/Opportunities – The skilled chefs that McDonalds Singapore is serviced by is what
the company can really bank on in order to come up with new and interesting vegetarian burgers
for a vegetarian target audience, such as the Mc Cheese Potato Burger. The skills and abilities of
McDonald’s chefs can be utilized to create mouthwatering vegetarian innovative burgers that are
a huge hit among the target audience and which are repeatedly sought after as well. McDonalds
Singapore can count on its dedicated staff members to promote the new Mc Cheese Potato
Burger when the store is visited by customers, day and night. Their loyalty to the store can be
availed to let customers know about the new burgers that McDonalds Singapore is coming up
with and why they should try these out.
Strengths/Threats – One of the threats associated with using the committed staff to promote the
new burger products that are being offered by McDonalds Singapore is that there can be
instances of miscommunication, where staff members tick customers off by trying to promote the
new burgers a bit too much. Having a loyal, skilled and dedicated staff also implies that
McDonalds Singapore has to revise their remuneration and incentives scales regularly, which can
prove to be a drain on the company’s financial resources at some point of time or the other.
Weaknesses/Opportunities–The fact that McDonalds Singapore does not innovate too regularly
with its products and services is something that the company can maximize on to state that when
the company does innovate, the innovated product is really worth trying out. McDonalds
Singapore can use this technique to make known to its customers that the Mc Cheese Potato
Burger is worth trying out by new customers, given that this is a new variety of burger being
offered by McDonalds for its vegetarian customers, and which ought to be consumed, just
because innovating with food is something that McDonalds Singapore is rarely ever known to
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do. The high price that McDonalds Singapore charges for its burgers and fries can also be used
as an opportunity by the organization to drive home to customers the fact that the food served at
McDonalds Singapore is always of a high standard, with quality never being compromised on.
Weakness/Threats – The lack of innovation in McDonalds Singapore food products can lead to
boredom and disinterest among customers. Loyal McDonalds Singapore customers may feel
compelled to try out the new varieties of fast food being offered by other joints in the city, just
for the sake of doing something different. The high price of the McDonalds burgers and other
food products can lead McDonalds Singapore to lose much of its target audience to rival fast
food destinations in the city, that offer related foods at a price that is far lower.
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