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APPLIED BUYER BEHAVIOR IN GLOBAL CONTEXT

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The McCafe Company Ads Campaign Report

 

 

Executive summary

This report was written to analyze the McDonald’s marketing campaigns and the impact the campaigns has created for the company.It is arguably one of the largest global fast food restaurants in the world. They own a distinct coffee formula which has the greatest consumer demand in the world. They as well deal with hamburgers, hot dogs, and cheeseburgers among other menus. They have done great on adverts which have helped them sell their brand and have their products meet high demand by the consumers. Among the most renown and selling ad campaigns they have made are Golden Arches, Changeables, Global Gladiators, Mac Tonight, McDonald land, McDonalds Monopoly, McDonald’s Treasure Land Adventure, M.C. Kids, Teenie Beanies, The Wacky Adventures of Ronald McDonald, among other ads.

Introduction

The McCafe Company deals with coffee, beef meals, and hamburgers. The McDonald’s started back in the 1930s which were just a food store at that time. They specialized with hot dogs at that time which was making great sales. After a couple of years, they opened up a local joint by the name “McDonald’s Barbeque” with twenty-five menu items in California. After doing their research on what could sell more in their area, they realized that on their menus the top most sales came from hamburgers, cheeseburgers, potato chips, coffee, soft drinks, and apple juice. At around 1952, the McDonald brothers had not yet achieved their primary goals which were efficiency and a more memorable appearance of their business. They thought by moving to a larger building they would make this for the company. The McDonald’s have significantly invested in marketing and branding. In most cases, they use the environmental changes to their advantage as in the case of the real-time snow condition display which made it possible for them to sell their three most selling brands McCafe Latte, McCafe Cappuccino and McCafe Deluxe Hot Chocolates. The digital billboard connects Vancouver and Whistler Blackcomb ski resort. It features the McDonald’s beverages.   

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The company has a distinctive brand. Its logo contains a golden arch. The arch was created by the owner and businessman Richard McDonald who had no experience or training in design. To him, the arch was symbolic with a historical association that symbolizes McDonald's.  

 

Segmentation

This section summarizes a few ad campaigns done by McDonald's in the branding and increased sale and marketing of their products.

 

1. Changeable

The changeable is also known as MCRobots which was designed for the children market as they used toys produced by the McDonald’s Corp and was given together with fast-food meals at the restaurants. They used transforming robots where the toys would convert into food from the company. The central concept was making food molds which resembled various robots with names that children believed to be either their favorites or models. Since it was intended to be used by small children, each figure was made by a thick plastic with only three moving parts which made it easy for transformation.

Global Gladiators

It’s well known as Mick and Mark. This is a 1992 version game programmed by David Perry from the Virgin Games USA. The game theme was based on the McDonald’s fast food chain and has a strong environmentalist message. This game was majorly a successor to the M.C Kids which was also a McDonald’s themed game which also featured Mick and Mack as its main characters. It was majorly a single player game where the player would control Mick and Mack through four worlds named Slime World, Mystical Forest, Toxi Town, and the Arctic World. They are guided by McDonald's who appears at the very beginning of the game and when it ends.

Mac Tonigh

This was one of the most popular commercials ever aired in the 80s. It involved a character who had a crescent moon head and sunglasses and a piano which played the “Mack the Knife” music. The ad was meant to increase the after 4 pm dinner sales. It started in California but with time within the end of the year the ad run across the major states of the US. After Christmas, the campaign had expanded to other cities, and the sales rose by 10% in dinner time business.

McDonalds Treasure Land Adventure

This is a video game platform created by Treasure Co. Ltd and was based on the McDonald’s fast food franchise and four of its corporate mascots from the McDonald’s. Ultimately the game involves following a series of adventures when following and finding treasures using a treasure map which you should follow.

 

Consumer buying behavior

This case study is based on the McDonald’s Indian market. The primary product of concern in this instance is fast foods where the company segmented its market on the following basis, geographically, demographically, psychographically, and behaviorally. When we look at geographic segmentation, we figure out the number of all McDonald's outlets in India where we found out to be 132 restaurants in both the North and East as well as 59 in the South and West. The demographic segmentation here looks at how the population or consumer aspect affects the product i.e. the customer’s age, occupation, income, gender, or even education[6].  The psychological aspect refers to the convenience of the product to the customers e.g. taking tea or coffee during winter can help keep out the cold. The behavioral segment looks at how the consumers’ needs are met during different occasions e.g. during birthdays or wedding there is usually a high demand for burgers, beef, or candies for children. These factors help in the design and branding of the products to suit the customer’s preferences at such moments.

The McDonalds targeted population here is mainly teenagers, adults, and children. Children are the most sorted after when it comes to consumer products. They are the most targeted population, and most brands sell through them. For instant “HAPPY MEAL” designed with toy shapes where Disney characters are used. They as well provide facilities like play place and McDonald’s main hai kuch baat.

 

Current trends affecting consumer buying behavior

Competition- we are living in a dynamic world where change can happen anytime. New fast food restaurants are coming up day in day out with fantastic menus to offer. McDonald's is not an exception in this case. There are traditional lists with a high demand by customers especially Subway’s, Panera bread’s, and Dunkin’s. These products face stiff competition. However, the McDonald’s have a creative way of dealing with such competitions. They have offered quite a small price rate compared to other competitors, offer discounts to the customers, have introduced new healthy alternatives. Also a few years back the company launched an upgrade to their coffee as well as the Big Mac and Mc Muffin which were created for nutrition awareness. 

McDonald’s Marketing Mix

We look at India’s marketing mix where we consider the McDonald’s 4P’s i.e. product, price, promotion, and placement. The product aspect looks at the main features of the product, its design, its branding, and how it’s packaged. Often McDonald's keep creating or changing the products according to the customer’s preferences. In most cases, due to demographic factors, most consumers have decided to go green as a way to stay healthy, this has led to the introduction of vegetarian products and dropping of the ham, beef, and mutton burgers from their main menus.

McDonald's pricing is usually pocket-friendly which makes it win the middle and lower class consumers who are the majority of every target population in either of its customer’s country. It has an Indian based line which it uses to sell its products 'Aap ke zamane mein, baap ke zamane ke daam', meaning 'Prices of your father's generation today'. Customers are sensitive, in that case, we should always offer the right products in the right hygienic packages and at the right timing as requested. McCafe offers all these in one package i.e. they do deliveries to customers at affordable rates and as well offer a clean environment, good ambiance, and excellent services. What makes McDonald's a great company is its ability to do bigger and efficient promotions which create awareness of their products and give a positive view of the product. In this way, customers will always have a good reason to remember the products.

 

SWOT Analysis of the McDonalds

Strengths

  • It’s an efficient and a strong brand of its own
  • It has a very close relationship with its customers
  • High degree of product innovation and creativity

Weakness

  • Has a small depth as well as width of product

Opportunity

  • It can expand to tiers 1 & 3
  • It’s able to produce breakfast products

Threats

  • Often changing consumer preference

Driving Forces That Influence the Consumer Buying Behavior

1.               Culture

2.               Social factors

3.               Individualistic and Economic factors

4.               Psychological factors

 Culture – beef and mutton in India are infamous since beef interferes with their cultural and religious beliefs. This affects the sale of the products, so people prefer to go on vegetarian diets either for health reasons or religious beliefs.

Social Forces – it’s obvious that interpersonal influences are prevalent in India. In this case, McDonald's makes sure that hygiene is put first in consideration when it comes to serving of their products. This makes the customer comfortable and loyal. Cleanliness is observed, and best services are offered for customer satisfaction.

Individual and social factors – McDonald's clientele is majorly teens and children. This can be translated to how the products are designed, i.e., good taste, cheap and pocket-friendly, and it makes people consider the McDonald’s place since it’s beautiful/economic according to their choice and tastes, especially if they have any social gathering.

Psychological Factors – the company has a great way of communicating to the public’s mind and driving the main point home which convinces the consumers. They update and make sure the public has been kept aware of the new products or adjusted prices through their creative advertisements and slogans, e.g., “food, folks, and fun”, “you deserve a break today, so get up and get away- to McDonald's.”

Conclusion

McDonald's is a great worldwide brand with greatness in service delivery and production of beverages and fast foods. With an experience of over 50 years, it has been able to achieve a lot despite the challenges faced in competition, the company still has been able to the outcome and prospered. Some aspects are behind the company’s success. These are management, marketing strategies, customer oriented service and products, flexibility, innovation, and customization. We can say that McDonald’s ad campaigns have significantly helped to sell the brand since the 1950s. It has managed to sell the brand products worldwide achieving over 55 billion sales of coffee since its beginning. 

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