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Mcdonalds Market Analysis

Essay 2018 6 Seiten


1. Introduction

McDonald's is the world most popular fast food restaurant which began its operation in the year 1971 as a single restaurant in Australia Yagoona. Today, the fast food business has over 900 McDonald's restaurants across Australia and likewise, it has over 1 million customer base in Australia alone. This report will conduct McDonald's market analysis with regards to its targeted market that is the tourist market.

2. Summary of Part B

The tourist market is the potential targeted market that McDonald's is about to venture in. Firstly, for this to be successful McDonald’s will have to learn and influence the consumer behavior through conducting a consumer audit. Here, the marketing team will have to understand both the internal and external influences of the tourist market. When undertaking a consumer audit it is vital to note that age and personality are the most important internal influences to students and similarly understand that tourists most concerns is their psychological needs. Secondly, the marketing team ought to understand buyer decision-making process mainly by doing information research, doing an evaluation of competitive products in the market, understand the purchase decision and the post purchase decision. Thirdly, market segmentation, here, there is need to note the various factors that influence the buying behavior, for instance, family size, age, and income. Lastly, there is a need to understand the market strategy for each market.

3. Marketing Mix

Marketing mix is the base model within marketing or a collection of marketing tools that a business uses to reach marketing goals in the targeted market (THE MARKETING MIX: A REVIEW, pp.28-67). This paper will discuss product strategy, pricing strategy, promotion mix, people, process and physical evidence for the tourist market.

3.1. Product Strategy

A product is a thing that can be presented in the market for acquisition, attention or consumption with the main objective of satisfying the wants and needs of its users. A product can either be tangible or intangible (McNally, Cavusgil and Calantone, pp.991-1006). Also, a product can include the price, the color, brand and quality, business services as well as reputation. Similarly, Product strategy is the basis of a product life cycle procedures for more growth. A good product strategy allows the business to identify the target market and concentrate on the consumer and product characteristics.

Product Life Cycle (PLC)

A new product develops through a sequence of stages, introduction (production and manufacturing), packaging and distribution, purchase and finally, decline or disposal. In the introduction part, the McDonald’s will have to seek for intellectual brand, trademark and patents protection for the new products. Secondly, the business will need to settle on a friendly price for the new product so as to create space for market penetration.

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It is important to note that, McDonald's offers several different products on its menu that usually do not change, For example, the basic cheeseburger and hamburger, the quarter pounder and the big mac. In order for the business to satisfy the tourist market, they will have to develop new products for the tourist market. Similarly, McDonald's can inherit an adaptation strategy (take a product and enhance or modify it to fit the targeted market). The business can modify or change products names for instance; the Big Mac was modified to Maharaja Mac with no beef to fit the locals in India. This also can be done to the local menu in order to fit the visiting tourists.


In order to dominate the tourist market, McDonald will have to do an upgrade or easily utilize the current packaging color on the cups and bag used in packing food stuff and drinks for instance, if the business should choose to upgrade they ought to utilize buff brown or white. This is because some customers find other colors like pink, purple and so on offensive, especially when used in packaging food staff.


It is important to have a good labeling format. This is because consumers will want to understand facts about the variety of food they are taking for instance; calorie counts levels, fats level and so on.


According to a research conducted by the RBC, in which 1000 people were questioned, it proved that McDonald has the lowest quality food ranked at number 12 out of the 12 big fast food giants (Fox News, pp.1-2). In order to prevent this from further happening, McDonald ought to do a deep examination to its product supply and sources, find the right people to do the cooking, achieve their recipe and so on.

Product Mix/ Depth and Width

As reported by, every bite of McDonald's products encompasses chemicals that advance cholesterol levels, lowers immunity, increase diabetes risk, and destroy the DNA (Nair and Realist, pp.1-2). Although, there are such controversies McDonald ought to fight through continuing to offer sustainable uniform menu. In like manner, a report released by the Los Angeles Times proved that 30.3 million people in the United States have diabetes. Now more than ever the Americans have increased the diabetes fight (CDC, pp.1-2). For McDonald, this is a wakeup call they should try to prepare their food especially drinks with low sugar levels for the American tourist visiting Australia. For instance, consider the nutritional table of fact below

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According to the American Heart Association (AHA), an average man is supposed to consume 150 calories in a day similarly an average woman is supposed to consume 100 calories in a day(American Heart Association your heart, an owner's manual, pp.34-78). 250-540 is a high level of calorie intake.

Augmented Services

Augmented services are anything that counts value and usually done by a business to the customer outside the actual product purchased. In order for McDonald to achieve success in the tourist market they will have to offer augmented services that count for example, give discount coupon, maybe offer free nutritional advice to customers, offer in store entertainment, restroom facilities, and so on.

3.2. Pricing Strategy

With the main objective being to attract tourist into the restaurants, McDonald ought to try and lower its prices. This is a good strategy since it will draw away the competition. In other words, McDonald ought to encourage market penetration pricing till the new product finds its market segment then the prices can be stabilized to a reasonable level.

3.3. Promotion Mix

For McDonald to penetrate in the tourist market, it is important to understand the taste, culture, climate and the consumer needs. Media advertising is always favorable as it will bust the existence of the company as well as help venture into the new market.


For an effective integrated marketing strategy, McDonald ought to make sure that the advertisement message is clear, seek the right media to advertise, and finally seek effective public relation tools.

3.4. People

People are essential factors in any business experience. Services are produced and consumed at the same moment and aspects of customer experience are produced to meet the personal needs of a customer. It is important to note that people buy goods and services from people they prefer and like. To maintain sales, attitude, service, skills as well as appearances need to be first class. In order for McDonald to dominate in the tourist market, it will have to train its employees to reach the international standard in terms of service delivery. Similarly, the business will have to employ people that understand foreign languages for easier communication with the tourist who do not understand English.

3.5. Process

Processes involve direct and indirect activities. Direct activities will tend to add value to the customer's interface or simply the customer experiences the services. For McDonald's direct activities will be essential, this is because tourist will want to feel the experience of the services at the moment not after. A good example of a marketing process that McDonald ought to utilize is giving the tourists free ride from the airport to the McDonald’s restaurant for lunch or dinner.

3.6. Physical Evidence

McDonald can utilize its website to share the company's information, for instance, a video history of the company, stock information, and press release. Also, it should reinvent its image through the change in the decoration and open new restaurant which features modern architectures.

4. Recommendation

A business decision to enter into new markets means it has the capacity to claim growth. This is a good idea because McDonald’s will tap into the tourist market, have the opportunity to expand and increase its revenue. Also, the business has access to well train employees, the business should continue to finance the training and employee development programs to ensure high-quality services are met. A well-organized training program will ensure the perpetual growth of the company. This will encourage employee differentiation from its competitors.


American Heart Association your heart, an owner's manual. (2011). New York: Pocket Books.

Nair, S. and Realist, M. (2017). McDonald’s product mix: Introducing healthy items, or still a death trap for consumers?. [online] Available at: [Accessed 14 Sep. 2017].

Fox News. (2017). Report: Consumers say McDonald's has the worst quality fast food. [online] Available at: worst-quality-fast-food.html [Accessed 14 Sep. 2017].

THE MARKETING MIX: A REVIEW. (2014). ELK Asia Pacific Journal of Marketing and Retail Management.

McNally, R., Cavusgil, E. and Calantone, R. (2010). Product Innovativeness Dimensions and Their Relationships with Product Advantage, Product Financial Performance, and Project Protocol. Journal of Product Innovation Management, 27(7), pp.991-1006.

CDC. (2017). CDC Press Releases. [online] Available at: [Accessed 14 Sep. 2017].



ISBN (eBook)
489 KB
2018 (August)
mcdonalds market analysis



Titel: Mcdonalds Market Analysis