McDonald's Executive Summary

Executive Summary

This report is about analysis of McDonald's Malaysia which focusing primarily on the segment of the market, identify target markets and compare and contrast the marketing strategies to attract customers. It is based on secondary data of McDonald's from year 2003 until 2007. The most profitable years are in 2006 which annual revenues accomplish $21.6 billion.

The McDonalds' organization objective is to attract more customers to go to McDonalds' restaurant so that the profit will increase as well as market shares. The marketing environment has affected the company in managements and decisions making. They have to make changes due to the environment which change frequently in order to ensure success. The company can upgrade their management skills so it becomes more efficiency. Since they know their weaknesses, they can improve the weaknesses. They also can change and create both opportunity and threat. With this, the company has the ability to make good decisions.

The company is dividing the market into four homogeneous groups, which are Ringgit sensitive, kids, family and breakfast lovers. McDonalds is positioned on its "I'm lovin' it". Besides, the company is distinguished itself through differentiate strategy by developing a different "brand" to meet the special need of each target market segment. This is done in order to make the customer more loyal to McDonalds by offering lower price and more benefits products to attract them. The company is offering halal products which will go for every single human on Malaysia.

After knowing the market segments and customer profile, the company has to consider which marketing mix strategies to develop, for example on: Product, pricing, distribution and marketing communication. McDonalds is classified the products into 4 segments and is using cost-based pricing strategy and market-penetration strategy on the products. By setting lower price, this can attract more customers and win against its competitor's market shares. Other than that, the company is using direct marketing channel in urban area. Besides, the company is using print media, newspapers and internet for advertising. Moreover, other promotional tools used are press release, personal selling and sales promotion.