Market Analysis

Market Analysis

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Market Analysis

1. Mcdonald’s predominantly operates in the fast food or food services industry. McDonald’s have thousands of restaurants around the globe. It serves a diverse, yet restricted menu in more than 100 nations (Badal, 2017).

2. The food industry is growing leaps and bound as always. In the United States, more than 6 percent of household income is spent on food annually. Internationally, fast food produces revenue of over 570 billion USD which is greater than the financial worth of most of the world nations (Facts, 2019).

3. The Mcdonald’s major product such as Big Mac is in the maturity stage. In this phase of the product life cycle, the strong numbers start to decline or get stable.

4. The focal target clients for McDonald's consist of parents with young kids, teenagers, business consumers, etc.

5. The most obvious target market for McDonald's is parents with young children. Young children usually go out with their parents all the times, and also parents have to go out with them if they insist. Therefore, there are basically two markets in one.

6. The basic characteristics of parents with children target market are age, income, lifestyle, etc.

7. The selected target market expects from the company to provide them with a variety of foods for children and parents, along with some fun and environment for the young children such as play areas. Mcdonald’s is trying to apply these strategies such as concentrating and stimulating their marketing operations to appeal to more targeted consumers, by introducing various marketing designs highlighting families with children and welcoming ads, etc. Moreover adding play areas in its restaurants.

8. Parents with children was a niche market in the beginning, but now it has become the main topic for most of the companies in the fast food service industry. This is because the target attracts two different consumers at the same time and results in children having a long-lasting bond with the company.

9. McDonald’s is competing with multiple food products and companies around the world usually on the basis of service, price, and convenience and food products as well. KFC is the most successful fast food business company that Mcdonalds will be competing against. It is the second leading fast-food restaurant after McDonald’s.

10. The major strengths of KFC are that they are the fastest growing fast food restaurants in the Asian continent. Secondly, they have displayed very strong financeial performances recently.

However, they have some weaknesses as well, such as issues related to their food quality and unhealthy fats that are included in, most of their food products.

11. The major target market for KFC is teenagers. Teenagers are without a doubt a great target market, especially in the Asian continent. Asia has quite a large number of teenagers in their population and no matter the location, teenagers always are attracted to fast foods. But KFC is also now turning their focus to parents with children, which can be a serious threat for Mcdonalds.

12. The target market is projected to be virtually the same for Mcdonald's as well as KFC in the coming years and so will be most of the strategies. The difference will be who takes the first steps and offer more innovations with quality products, more variety, and appealing promotions.

13. The biggest weakness of Mcdonald's seem to be a lack of healthy products and therefore, lack of satisfied and healthy customers in the long-run. McDonald's has been many times sewed for their unhealthy foods, and the laws are going to get more strict in this regards as obesity is on the rise, and serious thoughts are being given to addressing the issue.

References

Badal, A. (2017). McDonalds Corporation–2015 (MCD). Academic Journal of Business. Administration, Law & Social Sciences, 3(2), 27-40.

Facts, F. (2019). Topic: Fast food industry. www.statista.com. Retrieved 24 February 2019, from https://www.statista.com/topics/863/fast-food/