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InvestigationreportsubmittedundertherequirementsoftheHNDinGlobalTradeandBusinessatInternationalcollegeofCentralSouthUniversityofForestryandTechnologyMarketingStrategiesofMcDonaldinChinaCandidateName:ZHANGYuqingCandidateID:115422243Instructor:TongjingTABLEOFCONTENTS

Abstract1.0Introduction1.1Mainobjectives1.2Structure1.3Literaturereview2.0Implementation2.1Thebackground2.1.1ThebackgroundinformationaboutMacDonald2.1.2ThebackgroundinformationaboutChina2.2Marketingstrategies2.2.1LocalizationstrategiesadoptedbyMacDonald2.3MarketingMix2.3.1Productstrategy2.3.2Pricestrategy2.3.3Distributionstrategy2.3.4Promotionstrategy2.4SWOTAnalyzeonMacDonald2.5ThedifferentmarketingstrategiesofMcDonaldandKFC'sinChina2.6ColusionReferencesAppendixesAbstractMcDonald'sCorporationistheworld'slargestchainofhamburgerfastfoodrestaurants,servingaround68millioncustomersdailyin119countries.NowadaysChinahashugechangesintheseseveraldecadesineconomicdevelopmentorsomeotheraspects.AfterjoiningtheWTO,Chinawillseegreatimprovementinitstradingenvironment,whichwillaccelerateitsforeigntradegrowth,itisagoodopportunityforMcDonaldtoenterthemarketButthebigstrategicquestionfacingMcDonaldiswhethertheycanwininthefiercecompetitiontoearnmoremarketsharetoselltheirproducts,Therefore,successfulmarketingstrategiesplayvarysignificantroleinobtainingmarketshare,takeMcDonaldasanexamplein2011theglobalcomparablesalesofMcDonaldincreased5.6%,itistheninthyearofsamestoresalesgrowth,andNotablychinadoublingitsincomecontributiontoMcDonald'ssalesoverpastyears.Hence,thesuccessororganizationiscloselylinkedtostrategicmarketing.1.0Introduction1.1MainobjectivesInthisreport,IwouldanalyzethemainbackgroundinformationaboutMcDonaldandanalyzethebasictypesofstrategicMcDonaldadoptedinChina;comparethemarketingstrategyofMcDonaldwithKFC'sinChina;applyingtheSWOTanalysisandofficialstatisticsanalyzethemarketenvironmentwhichisMcDonaldinChinafacing;themainstrategiesadoptedbyMcDonaldtoachieveitslocalization.1.2StructureInthisreport,therearethreemainpartsintroduction,heintroductionthemainobjectives,structureandtheliteraturereviewwouldbepresented,inthesecondsectionthemainbackgroundinformationaboutMcDonaldandChinamarketenvironmentwouldbeintroduced,themarketingstrategyofMcDonaldandKFC'sinChinawouldbecompared,applyingtheSWOTanalysisandofficialstatisticsanalyzethemarketenvironmentwhichisMcDonaldinChinafacing;applyingthemarketingmixtheoryand4PstheoryanalyzethelocalizationstrategiesadoptedbyMcDonald.heotherpartistheconclusion,itwouldsummarizetheobjectivesandissuesanalyzedpreviouslyanddrawaoverallconclusiontowardsthewholeproject.1.3LiteraturereviewIntheliteraturereviewpartIwouldliketointroduceaauthorwhohasalreadyresearchedandstudiedthereasonsforMacDonald'ssuccessinChina.GianaM.Eckhardt,whoistheauthorof'CulturalParadoxesReflectedinBrandMeaning:McDonald'sinChina',inthisbooktheauthorsrelatethenatureofsocietalchange,acommonoccurrenceinmanydevelopingmarketsandespeciallyChina,toevaluationofabrandbyabroadcross-sectionofurbanChineseconsumers.Usingthemethodologyofscenariocompletion,theauthorsrevealthattheMcDonald'sbrandisevaluatedinthecontextofsocietalnormsandvaluesthatarebroughtupinvarioususagesituations.Brandevaluationscanbeinconsistentandoftenparadoxicaldependingonthecontext.Theresultssuggestthatmarketersshouldbecloselyinvolvedwiththewaytheirbrandisinteractingwithculturalvaluesintransitionalmarkets.AndintroducedthemarketingstrategiesadoptedbyMacDonald.2.0Implementation2.1Thebackground2.1.1ThebackgroundinformationaboutMacDonaldMcDonald'sCorporationistheworld'slargestchainofhamburgerfastfoodrestaurants,servingaround68millioncustomersdailyin119countries.HeadquarteredintheUnitedStates,thecompanybeganin1940asabarbecuerestaurantoperatedbyRichardandMauriceMcDonald;in1948theyreorganizedtheirbusinessasahamburgerstandusingproductionlineprinciples.BusinessmanRayKrocjoinedthecompanyasafranchiseagentin1955.HesubsequentlypurchasedthechainfromtheMcDonaldbrothersandoversawitsworldwidegrowth.AMcDonald'srestaurantisoperatedbyeitherafranchisee,anaffiliate,orthecorporationitself.Thecorporation'srevenuescomefromtherent,royaltiesandfeespaidbythefranchisees,aswellassalesincompany-operatedrestaurants.McDonald'srevenuesgrew27percentoverthethreeyearsendingin2007to$22.8billion,and9percentgrowthinoperatingincometo$3.9billion.McDonald'sprimarilysellshamburgers,cheeseburgers,chicken,frenchfries,breakfastitems,softdrinks,milkshakesanddesserts.Inresponsetochangingconsumertastes,thecompanyhasexpandeditsmenutoincludesalads,wraps,smoothiesandfruit.McDonaldenteredChinain1990byopeningitsfirstrestaurantinShenzhen.AsofMarch2008,thereweremorethan800McDonald'srestaurantsacrossChina.InOctober1990,theleadingglobalfastfoodchainchoseShenzhen,apioneerSpecialEconomicZoneinGuangdongprovinceborderingHongKong,toopenitsfirst500-seatstoreinthedevelopingmarket.LocatedonJiefangRoad,thesouthernChinacity'sbusiestcommercialarea,McDonald'squicklywonoverthelocalconsumerswithitsRonaldMcDonaldclown,GoldenArchesortheyellowMlogo,andBigMac.Thereare21MacDonaldRestaurantsthroughoutChangsha.Manyopenare24hours-a-day.Hunanfoodishotbecausetheclimateisveryhumid,whichmakesitdifficultforhumanbodytoeliminatemoisture.Localpeopleeathotpepperstohelpremoveexcessdampnessandcoldinthebody,sothatMcDonaldchangeditsfood,thefoodisoftenspicierandcontainsalargervarietyofingredients.Chili,peppers,garlic.2.1.2ThebackgroundinformationaboutChinaThePeople'sRepublicofChina(PRC)istheworld'ssecondlargesteconomybynominalGDPandbypurchasingpowerparityaftertheUnitedStates.Itistheworld'sfastest-growingmajoreconomy,withgrowthratesaveraging10%overthepast30years.Since1978,Chinabegantomakemajorreformstoitseconomy.TheChineseleadershipadoptedapragmaticperspectiveonmanypoliticalandsocioeconomicproblems,andquicklybegantointroduceaspectsofacapitalisteconomicsystem,Adecisionwasmadein1978topermitforeigndirectinvestmentinseveralsmall"specialeconomiczones"alongthecoast.Thecountrylackedthelegalinfrastructureandknowledgeofinternationalpracticestomakethisprospectattractiveformanyforeignbusinesses,however.Intheearly1980sstepsweretakentoexpandthenumberofareasthatcouldacceptforeigninvestmentwithaminimumofredtape,andrelatedeffortsweremadetodevelopthelegalandotherinfrastructuresnecessarytomakethisworkwell.[Thisadditionaleffortresultedinmaking14coastalcitiesandthreecoastalregions"openareas"forforeigninvestment.Alloftheseplacesprovidefavoredtaxtreatmentandotheradvantagesforforeigninvestment.Lawsoncontracts,patents,andothermattersofconcerntoforeignbusinesseswerealsopassedinanefforttoattractinternationalcapitaltospurChina'sdevelopment.ThelargelybureaucraticnatureofChina'seconomy,however,posedanumberofinherentproblemsforforeignfirmsthatwantedtooperateintheChineseenvironment,andChinagraduallyhadtoaddmoreincentivestoattractforeigncapital.In2001ChinajoinedtheWTO,whichmeanstheinvestmentenvironmentbecomesmoreattractiveandstablefortheforeigninvestors.Thetable1intheappendixshowtheChinaannualrealGDPgrowthfrom1978to2012.2.2Marketingstrategies2.2.1LocalizationstrategiesadoptedbyMacDonaldMcDonald'shaveabsorbedtheChineseculturalelementsofshowingrespect,recognition,understanding,assimilationandamalgamation,whilemaintainingthesubstanceoftheWesterncultureofefficiency,freedom,democracy,equalityandhumanity.Thisinter-culturalmanagementmode,withAmericanbusinesscultureatthecore,supplementedbyChinesetraditionalculture,providesreferenceforinternationalenterpriseswhichneedtoadjust,enrichandreconstructtheircorporateculturetoenhancelocalmarketflexibility.Thereare,however,certainconditionsessentialtointer-culturalmanagementmode.Ontheobjectiveside,theremustbesimilaritiesinenvironmentinorderforthetwoculturestoconnectandsynchronize.McDonald'sembodyanaccommodationofthefasttempoofmodernlife:aproductofdevelopmentandamarketeconomy.Theirresultantspeedandefficiencyareonlymeaningfulincountrieswithamarketeconomy.China'srapideconomicdevelopmentofferedtheenvironmentalconditionscorrespondingtofastfoodculture.Servicesofferedbyfastfoodchainsexpresstheirfullrespectforfreedom,anAmericanvalue,aswellasthepsychologicalstatementofChineseopen-mindednessthatyearnstounderstandandexperiencetheWesternlifestyle.Twoculturesproactivelycrashed,connected,andassimilated.McDonald'susethelocalizationstrategytore-expressAmericanbusinessculture,withprofoundtraditionalChineseculturalemblems,cateringtolocalcustomsonthebasisofstandardizedmanagement.2.3MarketingMix2.3.1ProductstrategyWheninRome,doastheRomans.Deep-rootedintheChineseconsciousnessisthetraditionalcultureoffoodanddrinkthatfeaturescolor,fragrance,flavorandvariety.Fastfoodsimplydoesnotcompare.Nowthatcuriosityhadfaded,peoplereturnedtotheirownmoreextensivecuisine.Undersuchcircumstances,theonlywayoutwastocombinethetwodifferentcultures.FastfoodrestaurantshavebeenlearningtoabsorbelementsofChineseculture.Sincethesummerof2001,McDonaldhasintroducedmanyChineseitemsontotheirmenus.PreservedSichuanPickleandShreddedPorkSoupwasoneofthefirst.ConsumersfelttheirtraditionswerebeingrespectedwhentheycouldtasteChinesecuisineataforeignrestaurant.Thesoupprovedasuccess,andMushroomRice,TomatoandEggSoup,andTraditionalPekingChickenRollweresoonaddedtothemenu.McDonaldalsoservespacketsofHappyFrenchFryShakesthatcontainbeef,orangeandUygurbarbecuespices.Notcontenttolagbehind,McDonald'sVegetableandSeafoodSoupandCornSoupwereintroduced,andthecompanyworkedtomodifytherestaurants'design.Duringthe2004SpringFestival,McDonald'sonBeijing'sWangfujingStreetattractedmanypeoplewithatraditionalChineselook,decoratingtheirinteriorswithpaper-cutsoftheChinesecharacterFu(Happiness),magpiesandtwinfishes,allauspicioussymbols.RelatedtoDooleandLowe‟sstudy(2008),culturecanbedefinedas“thesumtotaloflearnedbeliefs,values,andcustomsthatservetodirectconsumerbehaviorinaparticularcountry‟smarket.Hofstede(1994)mentionedthatconsumers‟behaviorsareculture-boundedasaconsumer‟sdecisiontobuyacertainproduct.Hebuiltamodel(1998)calledHofstede‟sculturaldimensionswhichcanexplainmanydifferencesonconsumptionandconsumerbehavior.theindividualismofChineseisreallyinalowposition,butitishighinAmericanculture.ThatmeansChinesepeopleusuallyhavethehabitoffollowingotherpeople‟sbehaviors,theoldgenerationtendstosticktooldtradition,itisnoteasyforthemtoacceptnewthings,howeverthemoderngenerationaredifferent.Theperformanceofmoderngenerationismoreindividualismtosomeextent.Theycanacceptnewthingsmuchfasterandeasier.Wecanunderstandindividualismasalifeattitudeoracharacterofpeople.FamilyisthemaintargetgroupofMcDonald's.Thegroupincludesthreemoderngenerationgroups.Theyarechildren,youngparentsandyoungpeople.Thus,inawayofviewing,becauseofunderstandingconsumerbehaviorsbetter,McDonald'stargetstherightcustomerssothatthesecustomersinChinacanaccepteasternfast-foodculturemoreeasier.Theproductstrategyareinfluencedbyconsumer'sbehaviour.Moreover,accordingtoBarlowandKimuli'sstudy(2006),productisatangibleobject.Intangibleproductsareoftenservice-based.AndMooij(2003)considersthatthemanagersoftransnationalcorporationsshouldprovideappropriateproductsaccordingtothelocalconsumervaluesandbuyingbehaviorsofacertainmarket.Thus,whenMcDonald'swantstoexpandanddevelopinanewmarketwithdifferentnationalculture,forexampleChina,theproductshouldbesuitabletolocalcustomers,suchastheproductinformation.Inaccordancewiththeempiricaldatainformerchapters,Chinesecustomerstendtopreferthefoodwithlowcalories,andChinesefastfoodgivesemphasistotheusageofgrains,beans,andvegetables.Focusingonthis,McDonald‟skeepsbringingoutspecialproductseveryyeartoadapttolocalpeopleinChina,someoftheseproductscannotbefoundinAmericanmarket.However,besidespopularizingsomespecificproductswhicharesuitabletothismarket,McDonald‟sstillmakesgreateffortsonkeepingtheoriginalflavorofMcDonald‟sasmuchaspossible.Consumervaluesandtheirbuyingbehaviorsaffecttheproductpositionveryobviously.AsthemarketingmanagerinBeijingmentioned(2009),takingfamilyasthemaintargetedmarketingcustomer,McDonald‟sdoesnotwanttochangetheircoreproductsinChinesemarket.ActuallyMcDonald'salwaysaddssomekindsoflocalizedproductsintothemenu,suchastheSpicyChickenSandwich,scrambledeggs,hotteaandsoon.TheyhaveagroupinHongKongdedicatedtoresearchingnewfoodwithtypicalChineseelements.Therefore,wecansumupthatwhenafirmwantstoenterintoanewmarketwithdifferentculture,itsmarketingstrategyofproductisaffectedbylocalcultureveryobviously.2.3.2PricestrategyPricecanbeaffectedbyconsumerbehaviorsandthedesireofpurchasingfromcustomerscouldalsobemotivatedbylowerprice(BarlowandKimuli,2006).Asmentionedbefore,accordingtoDooleandLowe(2008),pricingdecisionswouldbeinfluencedbymanysocial-culturalfactors,mainlybyconsumers'perceptions,expectationsandabilitytopay,andneedforproductadaptationandmarketservicing.AsthemarketingmanagerofMcDonald'ssaid(2009),whenenteringintotheChinesemarket,low-pricestrategyischosentouse.ThepriceoftheproductinChinaismuchcheaperthaninAmerican,forexample,BigMac.Chinaisadevelopingcountry,andthepercapitaincomeinChinaislowerthanthatinUnitedStates.Thus,theoperatorsofMcDonald‟schosetouselow-pricestrategyinChinesemarketsothatthecustomershavetheabilitytopurchaseitsproduct.Inaddition,in2009,McDonald'sstartedenteringthelargestlow-costmarketingwiththeplanofdefeatingitscompetitors.Theproductwassoldatthesamepricelevelas10yearsago.Becauseoftheeconomiccrisiswhichhappenedintheendof2008,moreandmorerestaurantsandshopshadtoreducepricesinordertoattractcustomersandliftthedepressedsalesinChina.Andduringthisperiod,manyconsumerstendtoseekextravaluableproductsandservices.Theproductswithhighqualityandlowpricebecomemoreandmorepopularthanbefore.Consideringthissocialphenomenon,McDonald'sdecidedtoreduceitspriceinordertoadapttothemarketenvironment.Tosumup,pricestrategiesareinfluencedbyconsumerbehaviour,suchlikeconsumers'perceptions,expectationsandabilitytopayandsoon.Otherwise,itisalsoaffectedbythevalueofconsumers.2.3.3DistributionstrategyPlacerepresentsthelocationwhereaproductandservicecanbepurchased.Itisoftenreferredtoasthedistributionchannel.ItcanincludeanyphysicalstoresaswellasvirtualstoresontheInternet(Kohler,2001).AswhatHuang(2007)mentioned,socialculturefactorssuchaslocallawandgovernmentpolicy,religion,language,customerbuyingbehaviorcouldaffectplacestrategyindifferentways.TakingMcDonald'sasanexample,themarketingmanagerofMcDonald's(2009)mentionedthatMcDonald'sdoesnotsuggestspendingtoomuchmoneycreatingnewmarketsfortheirproduct,buttofindsuitableones.Infact,McDonald'stendstosetupthestoreswhicharenearlarge-scaledbusinessestablishments,andjustchoosetheplacewhichacceptAmericanfast-food,suchashamburger.Itisveryeffectiveforsales.InChina,theeasternparthashigherretailsalesincateringindustry,andurbanpeoplearethemostfrequentcustomersoffast-foodrestaurants.Thechoiceofaddressforopeningstorescouldbeaffectedbylocaleconomicdevelopinglevelanddemandsofcustomers.Thus,thecompanyhasdonealotofmarketresearchandinformationcollectionbeforemakingdecision,suchasthepopulation,economiclevelconsumptionpowerandthedevelopmentscaleandpotential,incomelevel,developmentofshoppingopportunitiesandsoon.Alltheseconsiderationswouldinfluenceconsumerbuyingbehaviors.Thus,theplacestrategyisaffectedbycultureverygreatly2.3.4PromotionstrategyAsKotler(2001)mentioned,social-culturewouldinfluencethechoiceof4Psfrommanyaspects.Agoodpromotionstrategycanimpelconsumerbehaviorwhichisoneofthedeterminantmotivationsofconsumption.Promotionhasfourdistinctelements-advertising,publicrelations,wordofmouthandpointofsale(BarlonandKimuli,2006).Throughanalyzingthedatawhichweshowedbefore,wefindthedifferentaspectsofpromotionstrategyhavedifferentimpactsfromculture.AdvertisingNumerousresearchershaveexaminedtheimpactofcultureonvariousaspectsofconsumerbehavior,suchaspersuasivenessofadvertisingappeals,attractivenessofproductoptions,brandextensionevaluations(AakerandLee2001;Brileyetal.2000;HanandShvitt1994;PanandSchmitt1996).Andasonetoolofadvertisement,languageisveryimportant.InDooleandLowe's(2008)mind,languagecanbedividedintospokenlanguageandsilentlanguage.Spokenlanguageisanimportantmeansofcommunication,andsilentlanguageisapowerfulmeansofcommunication,swell.ThereisnodoubtthatthespokenlanguagewhichisusedinadvertisementinChinesemarketisChinese.Inadvertisement,McDonald'sgivesmoreattentiontotheculturaltransmissioninChina.Asthemarketingmanagersaid(2009),McDonald'sdefinesitsmaintargetasChildrenandyoungpeople,becausethatintraditionalChineseculture,childrenareconsideredasapplesinhandsoftheirparents.WhenimplementingtheadvertisementMcDonald'susessomesymboliccartooncharactersandfreetoystoattractthosepeople.Inaddition,toshowtherespecttotheculture,McDonald'schoosestointegratetheChinesevalueintoitsadvertisements.ThisstyleofadvertisingisacceptedandenjoyedbyChinesecustomersmucheasier.Evidently,theadvertisementstrategyisaffectedbycultureincludinglocallanguageandvalueinChinesemarket.ServicesPromotionactivitiesplayaroleofintroducingtheproductandservice,motivatingandleadingthedemandofthecustomersandalsomakingtheproductsandservicesbesoldeasily(Kotler,2001).Inwest,fast-foodoperationsachievedagreatsuccess,forsavingtime;ithasbecomethefirstchoiceforworkers.ThisideaseemstohavebeenintroducedintoChina.Peopleenjoythehighlyefficientandcleanserviceswhicharecarriedoutinadifferentwayfromlocalculture.ToldbymarketingmanagerinBeijing(2009)thatanumberofMcDonald'srestaurantsweretransformedintothestoreswhichcansupply24-hoursservicesandtake-awayservicescalled"Mailesong‟insomedevelopedcitiesinChina,suchasGuangzhou,Shanghai,ShenzhenandBeijing.Consideringthatdifferenteconomiclevelsmightleadtodifferentdemandsofcustomerswhichshouldbedistinguished.IfMcDonald'simplements24-hoursservices,itcouldsatisfythedemandsofcustomersinhigheconomiclevelcities.ThustheservicesofMcDonald'ssuchas24-hour-operateandtake-awayaredecidedbythedemandofcustomers.Thatmeansservicescouldbeinfluencedbythelocalculture,especially,byconsumerbehaviors.ChoosingCooperatePartnerKotler(2001)pointedthatwhenimplementingthepromotionstrategy,themarketingmanagersofatransnationalcorporationshouldtakemanyfactorsintoconsideration.LinkingthecaseofMcDonald‟s,themarketingmanagermentioned(2009)thatalotofproductsinMcDonald‟scouldbeboughtatsignificantlydiscountedratesbyusingfreecoupons.WhendevelopingitsbusinessinChina,McDonald'schoosestocooperatewithCool-PengNetworkwhichisthelargestandmostpopularnationalelectroniccouponportalinChina.Thereisnodoubtthatformingastrategicalliancewithotherstrongcompaniescanhelpcompanytoenhancethecompetitiveadvantage.Apparently,undertheinfluencesofdifferentculture,cooperatingwithnativecompanyismoredirectandmoreeffectivetohelpcompanyenterintoanewmarket.Cool-PengisaChinesenetworkusingChineselanguageintheirwebsite,andtheyhavemoreinformationaboutthevalueandbuyinghabitsofChineseconsumersthanMcDonald‟s.Hence,McDonald'sselectsCool-Pengastheexclusivenetworktoreleaseitse-couponinChina.Tosumup,cooperationstrategycouldbeaffectedbylocalcultureenvironmentincludinglocallanguage,valueandconsumerbehaviors.2.4SWOTAnalyzeonMacDonaldItisastrategicplanningmethodusedtoevaluatetheStrengths,Weaknesses,Opportunities,andThreatsinvolvedinaprojectorinabusinessventure.AsforstrengthsinMcDonald.1.Strengths:-Strongbrandname,imageandreputationMacDonaldhasbuiltuphugebrandequity.Itistheno1fastfoodcompanybysales,withmorethan31,000restaurantsservingburgersandfriesinalmost120countries.TheimageofMacDonaldisrecognizedeverywhere.ThisbrandisintoptenofthemostpowerfulbrandnamesintheworldwithCoca-Cola,NokiaorGM.-LargemarketshareMacDonaldisconsideredasthelargestplayerinsizeandglobalreach.WhenWendy’sorBurgersKingarelosingmarketsharein2006,MacDonaldstillincreasesitsmarketshare.MarketshareofMacDonaldintherecenttimeisabout19%whileBrandsis9%andbothWendy’sandBurgerKingis2%.2.Weaknesses:-UnhealthyfoodimageMcDonald'shasbeenimpactedbynegativepresslikethedocumentary"SupersizeMe"byMorganSpurlockinwhichhecontributedoursociety’sobesitytoMcDonald'sandotherfastfoodchains.Infact,eachMcDonald'sdishesprovideslargeamountofcaloriesbutnottoomuchnutrition.-CustomerloosesduetofiercecompetitionMcDonald'shastocompetewithmanystrongbrandnameinfastfoodindustrysuchasWendy’s,BurgerKingorYum!Brands.ThisfiercecompetitionmakesMacDonaldloosealargenumberofcustomerswhopreferfavorofotherbrands.3.Opportunities:-GrowthofthefastfoodindustryFastfoodindustrynowisdevelopingsignificantly.Thechangeoflifestyleleadstothechangeinpeopleeatinghabit.Inthepast,ifjustworkers,driversorsomeonewhohadtoworkbusilyanddidn'thaveenoughtimeforahomemealchoosefastfood;nowadays,almostpeopleeatfastfoodandamajorofthemlikefastfoodverymuch.Itisahugechanceforfastfoodbrandtoincreasetheirrevenues,especiallyMcDonald's.-Conservation:McDonaldshouldresearchgreenenergiesandgreenpackagingsolutionsandincorporatethesefindingasapartoftheirmarketingstrategiesandadvertisements.4.Threats:-IntensitycompetitorsAlongwiththedevelopmentoffastfoodindustry,therearemanynewfastfoodbrandentertothemarket.ItisnothingtosayifthereisnostrongbrandwhichcancompetewithMcDonalds.However,infact,therearesomeandtheyarestrongergradually,forexampleYum!Brands,Wendy’sorBurgerKing.AlthoughmarketshareofthesebrandarelowerthanMcDonald's,theytrytogainmorecustomersfromMacDonald.Moreover,morecasualdiningrestaurantsincreasetheirburgerofferinganddecreasetheprice.Ifwearenotreallyhurry,wemaychoosethiskindofrestaurantinsteadoffastfoodrestaurants.TheyalsobecomethecompetitorsofMacDonald.-PublichealthcrisisWithagrowingnumberofobesitycasesamongAmericans,fastfoodchainslikeMcDonald'swillcontinuedtobeovershadowedbytheirpreviousproductsofferings,forexampleSupersizedMeal,nofruitoryogurt,slimsaladselection.Besides,peoplenowadaysarefacingheartproblemmoreseriously.Asaresult,theyrequirenutritiousandhealthyfoodaswellaslifestyle.2.5ThedifferentmarketingstrategiesofMcDonald'sandKFC'sinChinaMcDonald'sand

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