McDonalds Marketing Strategy Case Study Example | Topics and Well Written Essays - 3250 words

McDonalds Marketing Strategy - Case Study Example Shifting lifestyles, aging population and healthy food consumption trends hamper industry growth. Despite McDonald's many successes and long-standing position as a global industry leader, the golden arches are showing evidence of tarnish. Over the last years the company has shown signs of failure to identify with its customers and this has lead to retarded growth and unmet expectations. In this paper I will examine in greater detail latest industry trends and I will critically evaluate McDonald's marketing strategy. The final part of the paper discusses strategic alternatives and suggested strategies for McDonald's Corporation. The fast food market is dynamic and growing, it amounts to $99.6 billion and is expected to grow by 15% by 2009 (Datamonitor, Global Fast Food, 2005). To the west growth has been driven by changing consumer lifestyles. The restaurants segment benefits from the reduction of leisure time, accompanied by increasing trends away from preparing food at home (Datamonitor, Global Restaurants, 2005). The growth in the Far Eastern countries, on the other hand, is fuelled by growing population, economic development and rising purchasing power of local population (Datamonitor, Foodservice China, 2005). Still, the bright future of the fast food sector is not secur... The growth in the Far Eastern countries, on the other hand, is fuelled by growing population, economic development and rising purchasing power of local population (Datamonitor, Foodservice China, 2005). Still, the bright future of the fast food sector is not secured and it's again consumer trends that hamper its development. Aging population in US and Europe tends to favour more sophisticated food and service offers to fast-food restaurants (Datamonitor, Global Restaurants, 2005). A major threat to the fast-food industry is the trend towards healthy food that shifts consumption away from fast food market. Intense competition among fast food retailers has forced major chains to focus on value chain efficiencies in order to improve profits (Datamonitor, Global Restaurants, 2005). Additionally, local markets have put high legal and market-driven entry barriers for international retailers (Ball et al, 2005). Customer analysis All in all, the McDonald's fast food offer is attractive to people from all age groups. The company specifically targets children and middle-class households that are less demanding in their choice for sophisticated product offer. Rising incomes in developing markets make the McDonald's offer more feasible and better accepted even in places where the company has been regarded as rather expensive, one example is India. The American identity of fast food products in Japan and other countries in the Far East enhances their image. According to a survey by the Japanese Ministry of Agriculture, 50 % of teenagers prefer Western foods to traditional dishes. As a result, American companies in Japan account for half the business (Ball et