Mcdonalds marketing hamburgers case study
For example, Panera Bread, the largest restaurant in this category, targeted customers demanding healthier options that used fresh and organic food. Other players sought to reduce menu choices and improve quality such as the hamburger chain, Five Guys. Or with a premium niche player that relies on higher pricing for premium food in the fast food category like Five Guys or Panera Bread?
By not competing, but rather by creating a new market space through the simultaneous pursuit of differentiation and low cost.
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And that is what Shake Shack did. It all starts with shifting the focus from better serving customers of an industry to identifying and converting noncustomers into customers. The first-tier of soon-to-be noncustomers for the premium fast food market are sitting at the edge of the market. They do want healthier fast-food options and higher-quality customer experience but are not the premium pricing that comes with these. The second-tier are refusing noncustomers.
Superbrands case studies: McDonald's
They refuse the premium dining experience because of its price. They want a nice place to hang out with their friends in an atmosphere that does not feel like a standardized food chain and comes without the hefty price of premium dining. The third-tier are unexplored noncustomers.
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They usually do not even consider going to fast-food restaurants but rather choose bars to stay out late and enjoy a drink or more with friends. To unlock these tiers of noncustomers Shake Shack created a new uncontested market space in fast-casual food space.
It did so by answering four basic questions that are at the core of the blue ocean approach. Whether it is the quiet green and black color scheme, a modern sleek logo, or an open kitchen layout that is visible upfront rather than hidden in the back, Shake Shack attracts the millennial adult who is willing to pay more for an informal and comfortable dining and hangout experience. Gone are the costs associated with building play places and offering happy meals. Tipping: Shake Shack has also eliminated tipping, offering customers a worry-free dining experience.
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The company compensates employees by providing above average compensation and benefits. From a psychological perspective, this attracts more customers and makes Shake Shack distinct from the local bar and grills where tips are standard. Speed of Service: Fast food restaurants emphasize speed over customer care — a critical factor in the fast food industry. But not Shake Shack.
McDonald’s Marketing Mix (4Ps) Analysis - Panmore Institute
In a functional-oriented fast food restaurants industry, Shake Shack is thriving by creating emotional experiences for its customers. Factors like speed and price, which are so important to fast food players, became secondary to more significant aspects that customers care about. Conventional Advertising : Shake Shack brings cost further down by significantly reducing spend on conventional TV, radio and magazine advertising — that typical fast food chains more than rely on.
Instead it focuses its effort on reaching millennials via social media.
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This significantly reduces their marketing spend compared to traditional fast food chains. The fulcrum of its social media strategy is user-generated content — a strategy that has helped the brand amass hundreds of thousands of fans and followers who help the company spread its concept and story in their communities. Social media plays an important part in making customers feel that they are part of the Shake Shack brand through fun online interactions while Shake Shack uses these interactions for data analytics to better understand customer expectations and improve their product and service offerings.
This is based on its belief that friendly workers take good care of customers and will bring them back. Shake Shack invests heavily in staff training to make sure all staff offers a high level of customer service. The result is a better overall customer experience that goes beyond the mere purchase of a hamburger.
In this way, Shake Shack successfully gained those customers who used to go for cheaper options. Shake Shack disposed of the notion that fast food had to be precooked or even prepared quickly. When they complete their initial training, all employees are eligible to receive an independently validated Basic Certificate in Food Hygiene, and successful completion of the Management Training programme can lead to a Diploma in Restaurant Management -- a nationally recognised qualification accredited by Nottingham Trent University.
McDonald's commitment to the development of its employees was nationally recognised in when the company achieved the Investor in People accreditation, awarded to the UK's leading employers.
Place/Distribution in McDonald’s Marketing Mix
The McDonald's story began in in San Bernadino, California, where a salesman called Ray Kroc was supplying milkshake multi-mixers to a drive-in restaurant run by two brothers, Dick and Mac McDonald. After calculating that the restaurant -- which served 15 cent hamburgers with fries and a shake every fifteen seconds -- must be selling over 2, milkshakes a month, Kroc saw the massive potential of the brothers' thriving business and decided to get involved.
Rapid growth followed: McDonald's served more than m hamburgers within its first three years of trading and in , the th McDonald's restaurant was opened. The brand proved equally popular outside the US. McDonald's has evolved into an international, multibillion-dollar quick service restaurant industry. Hamburgers and fries remain the mainstay of its business but central to the brand's success has been a menu that constantly evolves and expands to meet the needs of changing consumer lifestyles and eating habits.
A prime example of this is the Filet-O-Fish which was conceived by Lou Groen, a Cincinnati-based franchisee whose restaurant operated in a predominantly Catholic area. After noticing that trade was slow on Fridays, Groen concluded that this was because Friday is a day of abstention from red meat for many Catholics and he set out to develop a fish-based product to meet the needs of the local community. The Filet-O-Fish was launched in and has since become a mainstay on many McDonald's international menus.
In , another franchisee -- Jim Deligatti from Pittsburgh -- was responsible for the creation of the Big Mac, which is the best known and most successful McDonald's menu item ever. Nine years later, Deligatti developed the McDonald's breakfast menu -- a move that would change the breakfast habits of millions of Americans in the years that followed. This spirit of innovation has played an important part in the growth of the company which continuously seeks to improve the consumer perceived quality and convenience of the McDonald's experience.
A major breakthrough came in with an idea that sprang from the need to solve a local sales problem: when servicemen from a nearby Army base in Sierra Vista, Arizona, were forbidden to leave their cars in military fatigues, the first drive-thru restaurant was opened. The concept was an immediate success, and today, drive-thru accounts for more than half of McDonald's business in many of its international markets. McDonald's is committed to providing its customers with food of the highest quality.
This is achieved by using the best raw ingredients, sourced from approved local suppliers and ensuring that food is prepared to a consistently high standard. The menu is continually reviewed and enhanced to ensure that it meets -- and wherever possible exceeds -- expectations. In the UK, the McDonald's menu includes beef, chicken, fish and vegetarian products, a full range of desserts, shakes and hot and cold drinks.
To help customers make informed decisions about their diet, McDonald's was the first quick service restaurant to publish a complete ingredient listing and detailed nutritional analysis of all its products. Extra Value Meals offer customers a hamburger, drink and fries sold together at a fixed money-saving price. The meal offering combines variety in the choice of food as it incorporates current promotions, ease of purchase and above all excellent value for money. Similarly, McDonald's Happy Meal boxes offer parents a simple and appealing package, with a smaller portioned meal served in a fun box with a toy.
The unique alliance that McDonald's has with Disney means it is able to combine the popularity of its food with all the magic of Disney. It is innovations like these that have been instrumental in building the McDonald's family business and establishing the brand's ownership of value within the quick service restaurant sector.
As the Official Community Sponsor of the New Millennium Experience, McDonald's investment created the 'Our Town Story' programme, which invited children from every local education authority approximately 21, to tell their story in the form of a show performed live at the Dome in the specially designed Our Town Story theatre.
McDonald's has always recognised the key role of marketing in the brand-building process. Advertising is certainly not the only cause of McDonald's success but the two are inseparable. As Ray Kroc put it: "There's something just as basic to our success as the hamburger. That something is marketing McDonald's style. It's bigger than any person or product bearing the McDonald's name. In the UK, high profile brand advertising has been instrumental in building a powerful emotional relationship between McDonald's and its customers.
A Case Study of McDonald’s Failed Rice Dishes in Taiwan
The fundamental warmth and humanity it has demonstrated in its communication remains unmatched by its competitors. One of the strongest relationships that McDonald's has managed to build in the UK has been through football, the nation's favourite sport. Through a combination of the high-profile sponsorship of professional events and also the work it has done on a grassroots level, McDonald's has linked the brand with sport in a way none of its competitors can rival.
McDonald's uses its association with such prestigious global events to reinforce its international brand stature, whilst its television advertising in the UK uses national heroes such as Alan Shearer, to endorse its association with the game on a local level. McDonald's continuously displays a rare ability to act like a retailer while thinking like a brand; delivering sales for the immediate present, while building and protecting its long-term brand reputation.