What Is The Success Or Failure Of Mcdonald'S Management?

Company background introduction

Two.

The success of McDonald's Corp has shocked and envied the world. There are many reasons for its success. In fact, McDonald's success has an indelible merit factor, that is, it accurately and reasonably segmented the market in the early twentieth Century. Therefore, during the 50 years of operation, the company has never given up its pursuit of market segmentation, and has been making decisions around the market segmentation. Its development shows that the company "has broken down in the market and has broken down in the market."

At the same time, after reviewing the development process of McDonald's Corp, McDonald's found that although McDonald's has attached great importance to the importance of market segmentation, it has also encountered very heavy failures. Especially in the 2002 financial report, the loss for the first time in the fourth quarter of this year was as high as 243 million US dollars.

Faced with this setback, the company immediately carried out systematic analysis and research, and found that McDonald's attention to the target market and its related demand characteristics in many market segments was not very much. Moreover, more importantly, every sub market should adopt certain business strategy, resulting in a loss.

In view of the different characteristics of market demand and the trend of change, it is necessary for the company to conduct in-depth analysis and Research on the specific circumstances of different market segments.

Three, McDonald's Corp market segmentation and publicity

McDonald's Corp is mainly divided into three parts based on the following factors: geographical elements, demographic factors and psychological elements.

(1) geographical elements market segmentation

McDonald's may not be meticulous in this market segment.

McDonald's has domestic market and international market, and each country has its own different dietary habits and cultural backgrounds. Therefore, McDonald's has to make a detailed geographical segmentation of the market if it wants to maintain its hegemony in the world market.

The main goal of McDonald's geographical segmentation is to analyze regional differences.

For the domestic market, McDonald's is dominated by Western food culture.

In foreign markets, the market has not featured.

Geographical segmentation requires that the market be divided into different geographical units for business activities. For example, people in the eastern United States are fond of light coffee, and Westerners prefer stronger coffee.

McDonald's chain store as a p national and regional enterprise, its services range from all over the world: 109 countries, 2.5 chain stores.

It needs to spend a lot of money every year to conduct serious and rigorous market research, study the crowd composition, culture and customs, and write detailed market segmentation reports. Every country and even every region must have a market strategy suitable for local lifestyle.

The next point is to apply the results to reality, but it doesn't seem to be enough.

In the past, the location of McDonald's's choice of a branch store was the location where the crowd was large.

For example, in China, we first open branches in major big cities and gradually expand to other cities.

But now, the supply of fast food in every major city has been saturated.

It is necessary to analyze these market segments and consider whether these markets are attractive and worthwhile to enter.

(two) subdivision and positioning of population elements

Let's look at the division of the demographic factors of this company, and do more successfully in this respect. That is why companies can still survive when they have problems.

1, population factor subdivision

Market analysis, target market and product positioning are the key to success.

In general, population segmentation is based on age, sex, family population, family life cycle, income, occupation, education, religion, race, nationality and other related variables, and divides the market into groups.

Demographic factors are the most popular basis for subdividing consumer groups.

One reason is that consumers' needs, desires, and utilization rates often vary with population variables.

Another reason is that population variables are more easily measured.

As a giant in the catering industry, McDonald's analysis of the demographic factors is very careful. It mainly divides the population market from the age and life cycle stages, and will not define the age of driving as the juvenile market. The young people between the age of 20-40 will be defined as the green market, understand their way of life, know that their time is limited, and they want to eat fast and well. For the market of the elderly, the McDonald's Corp will focus on its economic benefits, and at the same time, try to encourage them to work in our company.

2, different market characteristics and positioning

McDonald's adopted different advertising methods for the above market segments, such as advertising for young people market, featuring swinging dance music, adventure and fast picture interpenetration, while advertising publicity for the elderly market is soft and emotional.

In fact, children are very likely to become a very important family factor in catering.

Because for parents, making children happy, affordable, convenient to buy, save time, do not have to cook, save trouble, have good food, and consciously are good parents, these factors will enable adult parents to comply with their children's wishes.

It can be seen that children's market is very important, and it occupies a large market share of McDonald's.

However, in recent years, because of the new competitors joining, it forced it to develop the market in another way.

In addition to the children's market, the target market that can be developed is the elderly market and the adult market.

The consumption of the elderly is not large, and for McDonald's, the market does not have great attraction.

The market for adults is different. The market has great potential for development.

However, adult loyalty to McDonald's is not high.

In response to this situation, McDonald's has taken a lot of measures, including adult market segments as the target market for promotional activities, every six months to organize a promotional game.

At the same time, McDonald's was the first large retail store to set up specialized marketing agencies for blacks and South Americans.

(three) psychological factors subdivision and failure.

McDonald's mistakes happen in the psychological subdivision.

Generally speaking, according to people's lifestyle, fast food industry has two potential market segments: convenience and leisure.

However, with the continuous improvement of people's living standard, the market segments of fast food industry must be adjusted promptly in accordance with market changes, especially in modern times, a new type of segmentation market is gradually rising and expanding rapidly, which is often referred to as a healthy segmentation market. According to relevant information, this market segment has the trend of grabbing market trend.

First of all, the healthy segmentation market has its inevitability. Both positive demand and negative response have all contributed to the widening and development of healthy segmentation market.

Among them, the positive demand factor lies in the high expectation of economic development and the continuous improvement of health and health consciousness. More people pursue high quality of life, and health institutions constantly improve to continuously meet the growth demand; negative coping is due to the worsening of the current environment, coupled with the escalation of medical insurance costs, pollution induced diseases, and increased work stress.

Secondly, the healthy segmentation market has strong structural attractiveness, and has a large consumer group with purchasing power. For example, in the United States, people who are in the middle class or above (most of them have enough purchasing power) account for nearly half of the national population.

Finally, the healthy segmentation market meets the business objectives and resource requirements.

Although McDonald's Corp has always been aiming at hygiene and cleanliness for a long time.

But neglecting the essential trend of market change, that is, people's pursuit of health, is the ultimate goal pursued by enterprises. The McDonald's Corp has failed quite a bit in this regard, which is also the key reason for the company's losses in the fourth quarter of 2002.

In fact, in 70s and 80s, McDonald's Corp had a very successful psychological market segmentation, that is, leisure. However, in 90s, a new psychological segmentation market was ignored. That is, people's growing importance to health. Facing the new demand characteristics of the market, McDonald's Corp still sticks to the existing raw materials and recipes. The high fever and high fat foods produced by these raw materials are intolerable to healthy consumers.