In the 1990s and 2000s, McDonald’s transformed its corporate image. Its management launched the ‘Fast and Convenient’ campaign. The campaign saw radical adjustments of the company’s product portfolio to emerging food trends. The company wanted to transform its restaurants into a banded, updated, and which promotes a more natural dining environment (Monger, 2013).During the campaign, the ‘fast’ and ‘convenient’ elements were supplemented by ‘healthy’ and ‘more natural element’ (Monger, 2013). It saw the addition of salads, fruits, and carrots sticks to their menu. Nowadays, McDonald’s offers high-quality coffee and healthy drinks. The introduction of these drinks is implementation of their competition strategy (Baines, 2014). McDonald’s has achieved a lot from implementing this, for instance, expansion of their customer base and benefiting from local trends like austerity in Europe (Dibb, 1998).McDonald’s have many strategies. The best strategy is the franchise business model (Brady, 2010). The model allows for a collective entrepreneurship that allows its franchisee-members and shareholders to share both the risks and the rewards.Before segmenting the market, the company did a market research, which could help them ascertain information key to determining the correct way to divide the market. Accurate research were done in questions such as which programs are well received, what prices consumers are willing to pay, what TV programs, newspapers, and advertising consumers read and review, and which restaurants are frequently visited (Moschis, 1994).A good market research is crucial in segmenting the market and creating the right marketing mix. According to the management of McDonald’s, the research would help in winning the customer loyalty and increase the sales (Monger, 2013). Researchers argue that as the economy and social attitudes change, the buying patterns changes. Therefore, before segmenting their markets, McDonald’s had to identify whether the number of target customers is growing or shrinking and whether their buying habits will change in future (Palmer, 2012).A good market research will consider everything that affects the buying decisions of the customers. Many of these buying decisions are affected by factors bigger than the product itself. Many literature reviews point out at psychological factors as an important factor (Baines, 2014; Boone, 2010; Elmore-Yalch, 1998). The factor
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(a) Graph showing the product lifecycle (Brady, 2010)
(b) Graph showing revenues generated by McDonald’s after segmenting their market based on Geographical element (Lassar, 2009)
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