Mcdonalds
Marketing Management Spring, 2015
Case problem summary 1: McDonald's (p. 266 in textbook)
Due for both sections: Tuesday, 03 February, 2015
1. What were McDonald's initial tactics to boost sales and counteract sluggish growth?
One of the first tactics for McDonalds and other fast food industries is offering discounts and variety of new products to attract customers, as well as making new store designs. Another tactic is focusing on the through drive service. Drive-through service is 65% of the sales; they are trying to increase the speed of it by using timers, training employees for faster preparation, and having separate kitchen for drive-through. Increasing drive-through efficiency by 10% it let the sales increase by $54,000. In addition McDonalds tried to offer different kinds of sandwiches to increase sales.
2. What is the importance of heavy users to McDonald's?
Heavy users comprise 20% of customers but account for 60% of all visits. Some of these customers visit fast food restaurants 20 times per month and spend up to $40 per day in them. So they are a profit to McDonalds they need heavy users and they need their loyalty.
3. How has the competitive landscape changed?
The change in the fast food industry is the increase in the fast-casual segment that includes restaurants like Boston Market, Panera Bread, and Atlanta Bread Company. These chains offer deli sandwiches with more comfortable surroundings, but faster than traditional restaurants, and slower than fast food restaurant.
4. How has McDonald's focused its advertising?
McDonalds focused its advertising on tasty and nutritious food, friendly folks, and fun. They invested heavily in it to improve their public image.
5. How is the new McCafe an example of
a) Segmentation: to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential. In other words, a company would find it impossible to target the entire market,
Case problem summary 1: McDonald's (p. 266 in textbook)
Due for both sections: Tuesday, 03 February, 2015
1. What were McDonald's initial tactics to boost sales and counteract sluggish growth?
One of the first tactics for McDonalds and other fast food industries is offering discounts and variety of new products to attract customers, as well as making new store designs. Another tactic is focusing on the through drive service. Drive-through service is 65% of the sales; they are trying to increase the speed of it by using timers, training employees for faster preparation, and having separate kitchen for drive-through. Increasing drive-through efficiency by 10% it let the sales increase by $54,000. In addition McDonalds tried to offer different kinds of sandwiches to increase sales.
2. What is the importance of heavy users to McDonald's?
Heavy users comprise 20% of customers but account for 60% of all visits. Some of these customers visit fast food restaurants 20 times per month and spend up to $40 per day in them. So they are a profit to McDonalds they need heavy users and they need their loyalty.
3. How has the competitive landscape changed?
The change in the fast food industry is the increase in the fast-casual segment that includes restaurants like Boston Market, Panera Bread, and Atlanta Bread Company. These chains offer deli sandwiches with more comfortable surroundings, but faster than traditional restaurants, and slower than fast food restaurant.
4. How has McDonald's focused its advertising?
McDonalds focused its advertising on tasty and nutritious food, friendly folks, and fun. They invested heavily in it to improve their public image.
5. How is the new McCafe an example of
a) Segmentation: to divide the marketplace into parts, or segments, which are definable, accessible, actionable, and profitable and have a growth potential. In other words, a company would find it impossible to target the entire market,