Running Head: Marketing

MCDONALD’S

Marketing
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Table of Contents
Introduction ..................................................................................................................................... 2

Rationale for the idea ...................................................................................................................... 3

Product description ......................................................................................................................... 3

Segmentation and Targeting ........................................................................................................... 3

Value proposition and positioning .................................................................................................. 4

Marketing mix ................................................................................................................................. 5

Product ........................................................................................................................................ 5

Price............................................................................................................................................. 6

Place ............................................................................................................................................ 6

Promotion .................................................................................................................................... 7

Conclusion ...................................................................................................................................... 7

References ....................................................................................................................................... 9
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Introduction
McDonald’s is a giant player of fast food industry. It is an American fast food chain founded in
1940. It is headquartered in Chicago. From then, company has set up approximately 37,000
outlets in more than 100 countries across the globe. It is the largest fast food restaurant chain
across the globe in terms of revenues with approximately serving 70 million customers per day
including all locations in which they are present. With its large product offering, organization has
set up its effective brand image in the fast food industry. However, it is mainly known for
hamburgers, french-fries, soft-drinks, wraps, desserts, and various other breakfast items.
Company deals in both vegetarian as well as non-vegetarian type of food along with varieties of
salad, smoothies and fruit shakes, organization has expanded enlarged its menu offerings
(McDonald’s Australia, 2018).

However, in past certain years, organizational sales have been decreased in Australian market
due to which people are becoming aware of the consequences regarding fast food. Thus, they are
switching towards healthier products and drinks. In order to re-gain its leading position in the
Australian market along with enhancing their market share, management of the organization has
decided to modify its products as per Australian consumer’s taste, preferences and changing
consumer behaviour. Along with this, organization has planned to introduce a healthy burger in
order to meet with the changing desires of Aussies. The name of the product will be “MacHeal”.
Aussies are becoming health conscious yet, they push themselves to have fast food once or twice
a week. With the help of healthy burger, McDonald’s will be able to enhance its consumer base
along with gaining an effective market share in the Australian market (Aaker, 2010).

This report will focus over the targeting and positioning of the new product in the Australian
market along with this, value propositions will also be discussed in this report. Further, with the
help of marketing theories, marketing mix techniques will be implemented in order to
communicate with the target and potential customers in relevance with the idea of new product.
The last part of the report will focus over marketing mix techniques in order to promote the new
products amongst the target audience with the adaptation of two ways communication channels
so that consumers could share their feedbacks, reviews and queries the quality and taste of
healthy burger. Along with this, consumers will also be invited to share their suggestions so that
the product could be moulded as per their requirements.
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Rationale for the idea

Idea of healthy burger originated from the market research activity. This helps the organization
that people are becoming health conscious because fast food items are mainly fried, contains
potatoes, and various artificial flavours which makes the food tasty but unhealthy too. This was
declining organizational performance as the demand of their products were decreasing constantly
and in order to save organizational image along with defending its acquired position in the target
market, management decided to introduce healthy burger in order to provide Australians, a
healthy alternative for fast food items along with satisfying their needs (Akaka, Vargo & Lusch,
2013).

Product description
Fast food items are major reason for over-weight people, high blood pressure, high cholesterol,
and for various other diseases. Aussies analysed the consequences of fast food items and
switched towards healthier food items. McDonald’s have added healthy burger to their menu
range in order to regain its lost customer base along with enhancing its brand image. This
product will be presented in the market as ‘MacHeal’. This product will include only healthy
ingredients from its bun to all pastes and patty, all will be healthy. Fresh and healthy green
veggies along with ginger garlic paste will be main ingredients along with a patty which will be
made from the combination of fenugreek and spinach. For making bun of the healthy burger,
multi-grain bread will be used. As all the ingredients used in tis burger are healthy enough which
could be consumed in any meal. For making its service delicious and attractive, it will be served
with fresh fruity juices or energy drinks (Ang, Benischke & Doh, 2015).

Segmentation and Targeting

McDonald’s revenues, profitability, customer base as well the demand of their products were
declining rapidly in the Australian market. After a certain period of time, every company is
required to introduce new products, services or modify its existing products or services in order
to attain growth and development related objectives. The same growth strategy have been
adopted by McDonald’s in Australian market so that they could attain leading position in the fast
food industry along with an effective place in the overall restaurant industry. Major target market
for McDonald’s in relevance with the healthy burger will be health conscious people. Apart from
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this, both male and female from urban areas aged 18-40 will be their main attractions in terms of
marketing the newly launched product (Angeloska-Dichovska & Mirchevska, 2017).

Target market Description

Demographics Both male and female
Geographic All major cities and states of Australia and
majorly those, where McDonald’s is present.
Behaviour Health conscious people, fitness anomalies,
people who does not prefer to have fast food
items, etc.
Age group 18-40
Psychographic All those people who prefers to the have fast
food items and also concerned about the health.
For these type of people, healthy burger will be
the most appropriate and beneficial option
(Armstrong, Kotler, Harker & Brennan, 2015).

Value proposition and positioning

Value proposition of the newly designed products will be the healthy ingredients used to make it
a healthy burger so that the health conscious and all other target groups could be approached who
have switched fast food items provided by McDonald’s due to its negative consequences. People
are becoming aware in relevance with consuming fast food items on regular basis, thus,
organization has decided introduce healthy burger as MacHeal so that the potential customer
could be targeted for which it is specially being designed. Thus, healthy ingredients used to make
it a real healthy burger are its value propositions (Brandt, Cazzaniga & Hann, 2011).

In order to set up a distinctive image of MacHeal in comparison to the other healthy items,
organization needs to adopt effective as well as trending digital media strategies. These strategies
are essential in terms of spreading awareness along with the marketing messages amongst the
target market. Marketing communication approach needs to be implemented along with two way
communication strategy such as social media platforms. Positioning is a part of integrating
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marketing theory and in relation to this theory, organization could enhance its sales, and set ups
an effective place amongst the target audience’s mind-sets as they believe that they require
particular product. Apart from this, the strategies used for setting up an effective image in the
customer’s mind-sets, it is necessary to adopt appropriate promotional campaign which could
have direct relation with the customer’s requirements (Cornelissen & Cornelissen, 2017).

With the help of this strategy, McDonald’s will be able to ask its target and potential customers
regarding their tastes and preferences so that the newly designed product could be modified as
per their demands and requirements. Apart from this, it will help the organization to develop a
distinctive image from its competitors along with developing a positive brand image amongst the
potential and target customers. Along with social media strategies, organization could also adopt
various other marketing and promotional strategies to promote their new product in the
Australian market (Kim & Hyun, 2011).

Marketing mix
It is the most appropriate and effective tool of a marketing plan for a new product as well as for
existing product. This tool combines certain effective components which are used for strengthen
the product’s brand as well as help to sell the product in the target market with ease. This tool
consist four components, product, price, place and promotion. It is also known as four P’s.
Below are the descriptions regarding these four components in relation with MacHeal, a healthy
burger:

Product
USPs of this healthy burger is its ingredients and the bread used for making burger’s bun. It is
value proposition for the new product and it will also help the organization to gain appropriate
and positive response due to its brand’s name and goodwill attained from past decades. Apart
from this, MacHeal will be able to target all age group people as it is healthy in nature, thus, it
could also be consumed in any meal. People who love fast food items to people who are fitness
enthusiast, every customer segment could consume this burger. In order to make it more
attractive and to enhance its demand, organization will promote this product by its trademark
slogan “I’m lovin’ it”. Organization will implement appropriate and effective marketing
strategies in relevance with the USPs of the healthy burger along with highlighting its benefits
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for setting up a valuable image amongst the target and potential customers (Czepiel & Kerin,
2012).

Price
Price plays the most crucial role in the success and failure of a product. With regards to its
previous operations, MacHeal will be launched under fair pricing strategy. With the help of fair
pricing strategy, organization will be able to target more customer segments. Under fair pricing
strategy, organization will serve healthy burger (McHeal) at reasonable prices through which
every segment’s customer irrelevant to the low, medium or high income will be able to purchase
it. Australian economy is stable, thus, poaching power of Aussies is sufficient enough so that
diversify their spending on various types of goods and services. Apart from this, fair pricing
strategy will help the organization to enhance its sales which ultimately affect the profitability
and revenues of the organization. McDonald’s will also be able to establish an effective brand
image along with gaining competitive advantage in terms of healthy and tasty fast food company
(Fischer, Albers, Wagner & Frie, 2011).

Place
MacHeal will be available at all McDonald’s outlet in Australian market so that it could cover
whole Australian market segments. According to contemporary business experts, promotion does
not mean broadcasting single message to every target and potential customer, marketing
messages needs to be displayed to the audience in relevance to their demand and preferences.
With regards to accomplish this task, huge resources with appropriate budget are required. Apart
from this, it has been reviewed that when a product is marketed through each and every medium
irrelevant to the contemporary or traditional marketing mediums, it helps the organization to
establish an effective image in the target customer’s mind-sets along with setting up the
requirement of particular product (Klein, 2016). So, when the same consumer passes any outlet
of McDonald’s, he/she could imagine or think about the particular product. Apart from this,
organization could also showcases the images of the healthy burger along with its trademark
slogan on the board hoardings on the busy streets of the target market. This strategy will attract
the consumers which will ultimately help to increase the demand and the sales for the particular
product (Greer & Ferguson, 2011).
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Promotion
Promotion is the major component of a marketing plan and it helps the organization to establish
its effective image in the target market along with gaining positive outcomes in the target market.
It is required for the organization to defend its acquired position, thus, organization has planned
to introduce MacHeal, a healthy burger. To promote and market this product, organization will
adopt and implement further marketing and promotional strategies:

 Social media: These platform are trending now days as in low budget, organization could
cover large part of target audience. With the help of social media strategies, organization
could develop personal interaction with the target and potential customers. Along with
this, consumers will be able to provide feedbacks, suggestions and their reviews on the
product’s features, quality and taste of the new product. Positive comments are effective
for attracting other customers while negative comments will decrease organizational
reputation (Gregor & Hevner, 2013).
 IMC tools: IMC tools are effective element for promotional tool in marketing mix
strategy. This tool includes direct marketing, developing personal relation with target and
potential customers, adverting through trending as well as traditional media strategies,
etc. These tools have adequate results through which organization will be able to attain its
desired goals and objectives (Helms & Nixon, 2010).
 Personal relation: In order to set up personal touch with the customers, it is required for
the organization to develop appropriate relation with the customers so that brand loyalty
could be enhanced amongst them (Mohammed, Rashid & Tahir, 2014). In relation with
making personal relation with target and potential customers, organization will
implement two communication processes so that consumers could respond over
organizational messages and organization could respond over consumer’s queries,
feedbacks and suggestions (Johnston & Bate, 2013).

Conclusion
From the aforesaid information, it can be concluded that McDonald’s will be able to enhance its
revenues, sales and profitability by launching healthy range of products in its menu offering. As
people are becoming health conscious, thus, demand for unhealthy and fast food items were
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decreasing and to enhance the demand of their products along with defending its acquired
position in the target market, organization focused over healthy food items and launched a
healthy burger to attract Aussies. In relevance with promoting the value promotions of the new
product, this marketing plan along with the marketing mix element have been discussed in this
report.
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