Week 5: Market Segmentation and Target Markets for McDonald's

Consumers today have a lot of options. With the rapid development of ecommerce, customers can make their decisions from the comfort of their own home. If they have the desire, customers can find a product that meets their specific needs.

The rise of ecommerce has also benefited businesses. Businesses can specifically target consumers for their product and increase their sales. The key is to know what specific customers to target to get the maximum utility out of your marketing budget.
Image result for uber eats logo

Knowing what market to target can help adjust your business to become more suitable to them. Many fast-food restaurants saw that their customers wanted their food delivered, so companies partnered with DoorDash, Uber Eats and Grubhub. The customers that use the food delivery service are those that can afford to pay a premium for the food.
Image result for mcdonalds logo

A large corporation McDonald's has many customer bases. With many different product offerings and business partnerships they are able to cast a wide customer net. This a reason why Mcdonald's has over 36,000 restaurants and serves over 69 million people per day.

Why do McDonald's have play-places? Play-places are in McDonald's to attract families with young children to the restaurant. Their kids menu is full of inexpensive options, partly based off of portion size but mostly based on the fact that the kid is usually eating with an adult. The adult the kid is with is going to spend money at McDonald's and will be likely to go back their without the child.

A change that McDonald's made recently was all-day breakfast. According to several news article, this greatly increased their revenues for the year. They catered to the party crowd. After a long night out, you may sleep in until 1 PM. If you sleep in, you will have limited options if you want to eat on a budget. McDonald's was able to own this market segment.

McDonald's also offers inexpensive coffee options. This is for people who drink coffee before and during their day at work, such as businessmen or businesswomen. Seeing that you have a McDonald's cup may encourage a coworker to go to McDonald's for lunch. By getting customers to come to their restaurant for the coffee, they can also sell them on breakfast food options.

These are only a few examples of how McDonald's uses market segmentation. Next time you are in a McDonald's, notice how many people are in there. Chances are that there are usually a good amount. Next, notice all of the different customer segments in there. Market segmentation is a key part in McDonald's success.

Comments

Post a Comment

Popular posts from this blog

Week 14: Micro-marketing and Macro-marketing

Image
Determining how effective a marketing for an individual firm can be difficult. Companies may not have access to analytics and statistical feedback on marketing campaigns. So marketing campaigns are sometimes viewed as a micro-marketing or a macro-marketing. Micro-marketing are advertising efforts that are focused to a small group of consumers. This strategy has some drawbacks. Sometimes a lack of interest or understanding of the customer occurs. An improper blending of the four ps of marketing sometimes occur here. For example, the overhead cost to create a new product can be passed on to the consumer in a result of higher prices. The failure rate for these products are pretty high. Coca-cola attempted fuse soda and coffee together and it did not go well. Macro-marketing can be more effective. It can save in cost and be more efficient. If your product appeals to large groups of consumers, using strategies that large groups of consumers can relate to. For example, the cost to cr...
Read more

Week 2 - Marketing Strategy Jimmy John's

Image
According to data from the National Restaurant Association, the fast casual is forecasted to generate $246.7 billion in food and beverage sales in 2019. With many large competitors such as Panera, Chipotle and Panda Express, companies must differentiate their marketing tactics and come up with a unique marketing strategy. Jimmy John's has done just that. With unique commercials and casual  social media campaign, Jimmy John's marketing strategy is one of the most unique ones out there. Although TV advertising may have lost popularity in recent years, Jimmy John's has used the platform very effectively. Television commercials was a way to differentiate themselves from their competitors. The commercials often showed their "Freaky Fast" delivery services and their in store quick service. Jersey Mike's and Chipotle do not have the same reputation for funny commercials that Jimmy John's does. This has allowed them to create a cult-like following and a larg...
Read more

Week 11: Information Technology Used in Customer Relations/Services

Image
A business is responsible for many tasks. With the low overhead cost of technology, companies defer some simple customer service task to automation. Customer support, specific product design and step by step processes are used by businesses to increase employee efficiency and convenience to the customer. Customer support can be automated. Many different types of organizations from university libraries to large corporations use this method. These programs are designed to answer simple questions so the salaried salesperson can focus on higher end and specific customer questions. Product customization is a lucrative part of a business. Potential customers can design a company's product that a business can charge at a high margin. With the right software in place, you can custom design a Ford Mustang, put your number on new Nike shoes or many other cool features customers can enjoy. Many customers have negative opinions on your product because they may not be using the product i...
Read more