Digital Marketing Analysis Report of McDonalds Australia
McDonald's has been a major player in the fast-food industry for many years. It is clear that they have an excellent grasp of the demands of their clients. McDonald's has risen to the top of the business not just in terms of sales, but also in terms of profitability and market value. However, how did they come to have such sway? Strategic marketing actions and other internal considerations is the key to the solution. As a result, in this case study, we'll examine McDonald's Marketing Strategy from a marketing viewpoint by examining its marketing campaigns, marketing mix, marketing campaigns, and SWOT analysis. Around 69 million people eat fast food each day at McDonald's, the world's biggest fast-food restaurant company. When Richard and Maurice McDonald opened their first McDonald's restaurant in 1940, they were already running a successful business. McDonald's began as a hamburger shop in 1948, but Ray Kroc joined the firm in 1955 as a franchise agent and ultimately acquired the brand from the McDonald brothers and managed its international expansion.
McDonald's Australia is a multinational fast food restaurant that mostly focuses on selling rice and hamburgers. Fast food and takeaway sales in Australia are dominated by this chain. It wants to raise its traffic market share by 3% in 2020, while also establishing its position as the go-to spot for fast meals.. In large part, this is due to the fact that the services are inexpensive and simple to use. It is therefore claimed that by combining sustainability and convenience, the company provides an eco-friendly experience to its clients. In May of 1993, the first McDonald's outlet in Australia opened in the Sydney suburbs. McDonald's Australia presently employs more than 100,000 people, despite the fact that the company has over a thousand locations around the nation. There are two million people a day that comes to their restaurants, and they've stayed true to their reputation for honesty and integrity. All members of the company's workforce and customers are handled with greatest respect. Quality, value, customer service, and cleanliness are all priorities for the company as it seeks to meet or exceed expectations of its customers. McDonald's Australia Limited is a publicly listed company in Australia. More than 80% of Australia's restaurants are operated by a business franchise, which employs many business owners. This restaurant chain has only franchised a handful of its establishments (Allegretto et. al., 2013). The company's core values and vision revolve on the customer's experience and providing the best possible services. This involves a strong confidence in their own system, as well as a devotion to the people they serve and a belief in their own principles and values. Clearly, the company cares about the environment and gives back to the people it serves. Additionally, the corporation aims to increase its market share and profit margins by working harder and pushing the limits of what it can do.
The study's primary emphasis is on the fast food industry. According to market pricing as measured by revenue, Australia and its industry will generate $20.8 billion in revenue from takeout and fast food services in fiscal year 2021, as depicted. There is expected to be a 0.9 percent increase in the market for takeout and fast food services and related sectors in the year 2021. There has been an annual increase of less than 1% in the prior five years. According to an industry assessment, Australia's economy has increased as a consequence of the growth and contraction of the sector's market size during the last five years. First place is taken by fast food and takeout service businesses, while 72nd place goes to wood goods.
There is a significant influence on the industry and the demand for its goods from restaurants that are located elsewhere. Changes in discretionary family finances, which may have a substantial influence on demand, are an important determinant of fast food company growth in Australia. Additional factors have a direct effect on the industry's revenue. The predicted financial years 2021-2026 are expected to bring in M $43,529.02 in revenue for the Australian food service industry. It is not simply Australia's progress that has been affected by the introduction of covid-19, but also the global economy. Meal service procedures in a homebound situation were based on trial and error. Consumption has decreased, but internet delivery has led to a significant increase in revenue. Customers' desire to try out new fast food restaurants boosts McDonald's sales, resulting in higher revenues and an expansion of the food industry's product line in Australia's (Anaf et. al., 2013).
The structure of this sector in Australia is one of oligopoly. Australia's marketplace is rife with oligopolies' fierce competition. There are just a few dominating players in an oligopoly market. Small numbers of market participants have considerable power in an oligopoly market. They have a high concentration ratio in terms of market share. To make more money, it's either very obvious or it hinders the entry of other businesses. Technological, legal, and economic factors all work together to establish oligopolies. Each company in the market is forced to commit fraud on the other companies because of the problem they confront. Despite government prohibitions against oligopolistic market behaviour, organisations with mixed economies typically seek the government's permission to limit competition in the Australian market.
"Prisoner's dilemma" refers to the scenario that emerges when a market is completely monopolised. If two or more corporations conspire to establish an oligopoly market in which the supply of diverse individuals is severely limited and prices are maintained high in order to secure long-term economic viability, that is a breach of the agreement; according to the agreement They have a highly targeted market in common (Atkinson et. al., 2012). To add insult to injury, the Australian market has a restricted number of enterprises that can operate. There are just a few large players in the fast food business in Australia, which is an ideal illustration of an oligopoly market. Fast food restaurants like KFC, Subway, Pizza Hut, and McDonald's all have their own distinctive locations. But despite their modest size, rivals like Wendy's, Oporto, and Alibaba, which consist of several fast-food chains, have dominated the market share. They're competitors. However, in compared to the bigger companies, many smaller organisations have failed to achieve recognition or market share.
If you're looking for burgers, fries, breakfast dishes, soft drinks (including milkshakes and iced tea), and desserts, this is the place for you!
There are regional modifications to meet the preferences and tastes of consumers throughout the world, but the McDonald's menus are well-known worldwide. The company's goods and services are always being improved in response to the shifting preferences and demands of customers.
The primary value of McDonald's has always been speedy service, which is a significant value-added benefit.. You won't find such a wide selection of products at such cheap costs anywhere else, much alone with the same level of efficiency, ease, and attention to detail.
McDonald's pricing policy has always been to provide meals at a cheap cost. Because of this, the restaurant has been able to stay in business for so long.
As a result, McDonald's has grown to be one of the world's most recognisable fast food chains. Combo and specials are now being offered to lure consumers and generate profits via economies of scale as the cost of living continues to climb.
When it comes to marketing, McDonald's does a number of things to keep customers interested and devoted to the company. Those who may not otherwise frequent McDonald's now have a compelling motive to do so (Wellard-Cole et. al., 2018).
Similarly to any other firm, McDonald's supports a wide variety of marketing efforts in order to promote its products and services. To foster a feeling of belonging and kinship between a business and its clients, promotions are essential.
Let's take a closer look at McDonald's marketing strategy now that we've learned about its products and promotional strategies.
A product's marketing approach has a significant impact on its popularity, and the firm has played a significant role in helping it become a household name (King et. al., 2013). Advertisements for these products have gotten a lot of attention, which has fuelled consumer demand. Customers' buying patterns have generated an increase in the organization's awareness of current products and their availability, which has led to increased advertising identification and expertise. It is the biggest organisation that has advertising for its own brand, and it employs a wide range of ways and strategies to boost sales.
A big part of McDonald's success is based on the quality of its goods. McDonald's global reach, with a presence in over 12 countries, is another source of competitive advantage for the corporation. McDonald's has a distinct advantage over its competitors because of its well-known name in the marketplace. Strength No. 2 for the firm is its ongoing product line expansion and innovation.
· A clean and sanitary dinner is prepared for each customer, and they are promptly served.
· Marketing efforts have made it a household name.
· Kids love the toys in the McDonald's happy meal, making it a great marketing tool for the fast food chain.
· Environmental, animal rights and other problems have led to several lawsuits against McDonald's.
· When people arrive in big groups, the menu may be too restricted for them to choose from.
KFC, Subway, Hardees, and other competitors pose the most serious dangers to McDonald's. Additionally, the ever-changing laws and regulations of the government pose a danger to the organisation. McDonald's is under pressure from rising raw material costs.
· As a rule, those who care about their health steer clear of fast food.
· Some businesses may be affected by frequent monitoring by food regulatory officials.
As we've seen, McDonald's is depending on antiquated methods of marketing like billboards and pamphlets, which are no longer effective in luring people in today's technologically advanced world (Phau et. al., 2013). When it comes to social media marketing or social networks, McDonalds Australia seems to be less active. For the McDonald's marketing strategy, they have the choice of using this option to take these steps and visit other networks in order to attract individuals who are uninformed of the current promotions and convert them into McDonald's customers.
Researchers found that McDonald's and the rest of the fast food business are exposed to a wide range of internal and external influences that have a significant impact on the firm. These comprise a variety of McDonald's Australia-related qualities. In Australia, McDonald's is able to maintain its position as the most popular fast food chain because it offers a wide variety of choices and alternatives to its consumers. Increasing the number of services and goods available to customers has been suggested as a way to boost annual revenue. Several marketing techniques must use this element if they want to attract a large number of new clients and keep them as loyal customers. There has been an increase in the use of the word "gamification," which refers to the process of making something fun. This does not mean that even if it is a large hotel and fast-food chain company in Australia, the strategic alternatives accessible to it are ignored. There are a lot of them.
It is feasible to get to the conclusion that McDonald's Australia is a multinational fast-food firm that sells rice and burgers as its core goods as well as other fast food kinds with the use of this study. In Australia, the market for quick-service restaurants is characterised by an oligopoly. Customers at McDonald's are enticed by the food chain's inexpensive costs. Buying products like these is made easy for clients. As a result of the coronavirus epidemic, the organization's income has decreased. The company's objective, principles, and vision all revolve on providing clients with the best possible service. In order to increase profits for the year, it is recommended that the lock on those earnings be unlocked so that other services and items may be provided to clients who have the capacity to unlock.
Allegretto, S. A., Doussard, M., Graham-Squire, D., Jacobs, K., Thompson, D., & Thompson, J. (2013). Fast food, poverty wages: The public cost of low-wage jobs in the fast-food industry.
Anaf, J., Baum, F. E., Fisher, M., Harris, E., & Friel, S. (2017). Assessing the health impact of transnational corporations: a case study on McDonald’s Australia. Globalization and Health, 13(1), 1-16.
Atkinson, L. F., & Palmer, M. A. (2012). Purchase rates and energy content of nutritionally promoted and traditional fast foods purchased at lunchtime in Australia–a pilot study. Public Health Nutrition, 15(3), 495-502.
King, L., Hebden, L., Grunseit, A., Kelly, B., & Chapman, K. (2013). Building the case for independent monitoring of food advertising on Australian television. Public Health Nutrition, 16(12), 2249-2254.
Phau, I., & Ferguson, G. (2013). Validating the Customer Satisfaction Survey (CSS) Scale in the Australian fast food industry. Australasian Marketing Journal (AMJ), 21(3), 147-154.
Wellard-Cole, L., Goldsbury, D., Havill, M., Hughes, C., Watson, W. L., Dunford, E. K., & Chapman, K. (2018). Monitoring the changes to the nutrient composition of fast foods following the introduction of menu labelling in New South Wales, Australia: an observational study. Public Health Nutrition, 21(6), 1194-1199.
