Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
12Activity
0 of .
Results for:
No results containing your search query
P. 1
Customer Centricity in McDonalds

Customer Centricity in McDonalds

Ratings: (0)|Views: 507 |Likes:
Published by abhigoldy

More info:

Published by: abhigoldy on Aug 28, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOCX, PDF, TXT or read online from Scribd
See more
See less

11/16/2012

pdf

text

original

 
Marketing Systems & Structures
 
Abh
is
h
ek Mes
h
ram 09048790 Page 1
Introduction
:
 McDonald¶s
h
as
 b
uilt itself into one of t
h
e largest multi-national restaurant c
h
ain in t
h
eworld wit
h
its presence over 118 countries and more t
h
an 30,000 locations worldwide sinceits founding in t
h
e year 1940
 b
y two
 b
rot
h
ers Dick and Mac McDonald at San Bernardino,California. McDonald¶s is t
h
e world¶s largest food c
h
ain serving around 47 million customerson regular 
 b
asis t
h
us making it one of t
h
e most expensive
 b
rand wort
h
over $25
 b
illion. T
h
e
 b
rot
h
ers opened t
h
e restaurant wit
h
t
h
e idea to
h
ave a reduced menu t
h
at would
 b
e a
 b
le to
 b
ecooked at a fast pace and at c
h
eaper rate w
h
ic
h
will eventually lead to
h
ig
h
er turnover to t
h
emanagement. Wit
h
t
h
is idea McDonald
 b
rot
h
ers cooked t
h
e first ever famous McDonald
h
am
 b
urger on 12
t
h
Decem
 b
er, 1948. Since its opening, McDonalds
h
ave transformed itself into a
 b
rand w
h
ic
h
eac
h
and every person on t
h
is planet is familiar wit
h
and t
h
ere is
h
ardlyany country left w
h
ic
h
does not
h
ave a McDonald¶s restaurant wit
h
in its
 b
order. In t
h
e year 1954, Ray Kroc, a salesman wit
h
a milks
h
ake mixing company came up wit
h
t
h
e idea to startt
h
e franc
h
isee wit
h
t
h
e McDonald¶s
 b
rot
h
ers. Ray Kroc started t
h
e first franc
h
ise restaurantof McDonald¶s at Des Plaines in Illinois in 1955 and gave rise to t
h
e McDonald¶sCorporation and later taking over t
h
e control of t
h
e expansion of t
h
e McDonald¶sCorporation.McDonald¶s is one of t
h
e
 b
est
 b
rands world-wide and t
h
e main o
 bj
ective of t
h
e restaurant iscontinuously listening to t
h
e customer¶s demands and accordingly
 b
uild its
 b
rand value. T
h
emarketing strategy of McDonalds is to identify t
h
e customer needs and meeting t
h
eir needs inan efficient manner t
h
an t
h
e competitors and making suc
h
customers loyal to t
h
eMcDonald¶s. T
h
e main aim is to identify t
h
e potential customers as not everyone will
 b
e
h
appy wit
h
w
h
at McDonalds
h
as to offer its customers. T
h
e likely customers are t
h
e keyaudiences w
h
ic
h
McDonald¶s target to increase t
h
eir customer 
 b
ase.McDonald¶s uses strategic demograp
h
ic segmentation of market wit
h
age as t
h
e main parameter to differentiate t
h
e customers. T
h
e market is of limited customers for McDonald¶s
 b
ut t
h
ey
h
ave following type of customer segmentation
:
 
Parent with two children:
T
h
ese parents visit McDonald¶s in order to treat t
h
eir c
h
ildren.
Children
:
Visit McDonald¶s as a fun place to eat at.
 
Marketing Systems & Structures
 
Abh
is
h
ek Mes
h
ram 09048790 Page 2
B
usiness Customers
:
W
h
o visit McDonald¶s
 b
ecause of its fast service and t
h
e food tastesgood w
h
ic
h
can
 b
e taken away in car or office wit
h
out affecting t
h
eir 
 b
usiness sc
h
edules.
Teenagers
:
T
h
ey visit McDonald¶s
 b
ecause t
h
e food is c
h
eap in
h
ere and t
h
ey get to use t
h
einternet and
h
ave a place for get- toget
h
er wit
h
friends.T
h
e marketing o
 bj
ective of McDonald¶s is to
 b
reak t
h
e long-term o
 bj
ectives into s
h
ort-termo
 bj
ectives w
h
ic
h
can
 b
e used as
 b
enc
h
marks and t
h
ese o
 bj
ectives can
 b
e monitored t
h
roug
h
 feed
 b
acks and t
h
e results are analysed t
h
en w
h
et
h
er t
h
ey are ac
h
ieved or not. Once t
h
eo
 bj
ectives are set t
h
en t
h
e focus turn to
h
ow to ac
h
ieve t
h
ese o
 bj
ectives using t
h
e availa
 b
leresources and acting in t
h
e appropriate manner.
Marketing Mix at McDonald¶s (4 P¶s):Product
:
T
h
e main intention of McDonald¶s t
h
e
 b
eginning is to
h
ave a limited product widt
h
 and product dept
h
. T
h
e menu is decided after a considera
 b
le amount of market researc
h
. T
h
eitems on menu are carefully monitored and new products are introduced on t
h
e menu and t
h
eolder products are p
h
ased out in a very efficient manner in order to prevent canni
 b
alization toincrease sales. T
h
e new products are introduced taking into consideration t
h
e customer¶s ever c
h
anging taste and lifestyle. T
h
e management in McDonalds also undertake a Product LifeCycle
A
nalysis to determine at w
h
ic
h
stage t
h
e product is. T
h
e marketing and t
h
e resourcesrequired for t
h
e product depends upon t
h
e stage at w
h
ic
h
t
h
e product is, for example if a new product is
 b
eing launc
h
ed in t
h
e market, t
h
en t
h
ere will
 b
e promotion and advertisements onlarge scale.
Price
:
T
h
e in McDonald¶s is determined keeping into consideration t
h
e customer¶s perception a
 b
out t
h
e product and value. T
h
e product is p
h
ysical
 b
ut t
h
e price
h
ave psyc
h
ological connotation on t
h
e customer. T
h
e low price may sometime make t
h
e customer feel t
h
at t
h
e quality of t
h
e product is
 b
eing compromised. T
h
us utmost care is
 b
eing taken atMcDonald¶s w
h
ile deciding t
h
e price keeping in mind t
h
e
 b
rand value and its integrity. T
h
emost dangerous aspect of furt
h
er price reduction is t
h
at t
h
e competitors can ac
h
ieve t
h
e pricereduction wit
h
out any difficulty. T
h
is adversely affects t
h
e company as t
h
e profits arereduced wit
h
out ac
h
ieving any increase in sales.
Promotion
:
McDonald¶s use t
h
e rig
h
t com
 b
ination of media to promote its products and
 b
rand image. T
h
e main motive of promotion in McDonald¶s is to make people aware of it products, give a positive vi
 b
e a
 b
out t
h
e product and to remem
 b
er it in t
h
e future. T
h
e most
 
Marketing Systems & Structures
 
Abh
is
h
ek Mes
h
ram 09048790 Page 3
important aspect of McDonald¶s is t
h
at it knows it target customers it is serving t
h
eneffectively communicate wit
h
customers and send t
h
e message it wants to deliver.
Place
:
McDonald¶s does not consider place as
 j
ust a p
h
ysical location
 b
ut as a medium of encompassing t
h
e wit
h
all t
h
e variety of process required to deliver t
h
e product to t
h
e endcustomer. T
h
e McDonald¶s delivers a
h
ygienic place, good environment and great service toits customers.Eac
h
organisation
h
ave strategic plans to maintain t
h
e customer focus and accordingly t
h
eorganisation decides on w
h
ic
h
level t
h
e loyalty of customer is towards t
h
e organisation. T
h
eloyalty of t
h
e customers can
 b
e differentiated into following types
:
 
Price loyalty
:
as long as t
h
e organisation is t
h
e price leader in t
h
e market, t
h
e customer remains loyal to t
h
e organisation. T
h
e customer is loyal till t
h
e time t
h
ey c
h
ange t
h
eir lifestyle. McDonald¶s caters to t
h
e needs to all types of customer from ric
h
to poor andwit
h
out any age
 b
arriers.
Monopoly
:
T
h
ese firm practice monopoly and acquire considera
 b
le amount of customer 
 b
asetill t
h
e time a new competitor wit
h
similar product enter t
h
e market.
Inertia Loyalty
:
T
h
e customer falls under t
h
is type of loyalty in order to escape t
h
ecum
 b
ersome work of finding an alternative to t
h
e existing product even t
h
oug
h
t
h
ere may
 b
emany
 b
enefits of switc
h
ing t
h
e product
 b
ut t
h
e inertia prevents t
h
em from switc
h
ing. T
h
istype of customer loyalty can
 b
e seen in t
h
e
 b
anking sector w
h
ere t
h
e customer remains loyalto t
h
e
 b
ank for most of 
h
is lifetime.
Promotional loyalty
:
Few customers remain loyal to t
h
e product even t
h
oug
h
t
h
ey
h
ave to pay a
h
ig
h
er amount for t
h
e product t
h
an ot
h
er alternatives in order to acquire a social statusand also t
h
e give recommendations to family and friends to make use of t
h
e product.
Disloyalty
:
T
h
e dissatisfied customers come under t
h
is category and t
h
ey can
 b
ring a
 b
out
 b
ad pu
 b
licity to t
h
e organisation. T
h
eir 
 b
e
h
aviour can
 b
e dangerous to t
h
e target or potentialcustomers. (Principles and practice of marketing).Looking t
h
e current world scenario full of credit crunc
h
and t
h
e falling economies,
price
ist
h
e only factor determining t
h
e customer centrality. Price is t
h
e only factor in t
h
e marketingmix w
h
ic
h
generates revenues for t
h
e organisation w
h
ereas ot
h
er factors in marketing mixadd to t
h
e cost to t
h
e organisation. It is rig
h
tly said t
h
at 1 percent decrease in price can lead to

Activity (12)

You've already reviewed this. Edit your review.
1 hundred reads
1 thousand reads
Vi Vien liked this
TalentAgent liked this
nissananka liked this
nissananka liked this
andrewvermaak liked this
andrewvermaak liked this
mutaz123 liked this
Sai Raj Ega liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->