Marketing Case Studies Flashcards
strategic role of marketing goods and services
MCDONALD’s
Accelerating the Arches
- New Growth Strategy
- Major focus on brand and affordability
- Goal is to increase brand advocacy
factors influencing customer choice – psychological, sociocultural, economic, government
MCDONALD’S
Psychological
- Displays signature items close to entrance without a price, exploiting a concept known as ‘‘decision anchoring”, where all subsequent purchase decisions are made in reference to that first image seen by the consumer
- “health halo”, where the presence of healthy foods near unhealthy foods creates the perception of healthiness
Sociocultural
- McDonald’s delivers value, quality and convenience to the customer – focus on offering ‘‘compelling value”
Economic
- Floods in Australia has destroyed crops and blocked roadways –> creating a lettuce shortage. Due to the skyrocketing price, McDonald’s used cabbage
Government
- For a period of time, during lockdown, stores could only open for Drive-Thru, takeaway and delivery
[consumer laws] - deceptive and misleading advertising
APPLE
A class action was filed against Apple by more than 100 iPhone 4 and 4s users in the United States who claimed that the company was intentionally rendering their phones unusable via iOS upgrades. The legal action extended to complaints regarding Apple’s advertising campaign, claiming it misled consumers by suggesting the upgrade would increase the performance and battery life of the iPhones
ethical – truth, accuracy and good taste in advertising, products that may damage health, engaging in fair competition, sugging
MCDONALD’s
The products could damage one’s health hence advertising is unethical
Ethical Considerations
- Product causes obesity
- Target market is children
The McLibel case was when McDonald’s was found guilty of unethical behaviour:
- Deforestation
- Mistreatment of animals
- Unhealthiness of products
[situational analysis] - product life cycle
MCDONALD’S
Introduction: In the 1940s, French fries replaced packets of potato chips
Growth: The growth of MacDonald’s led to the French fries becoming a global icon
Maturity: Under pressure, McDonald’s changed the recipe for French fries, eliminating beef tallow, heavy in saturated fat - unhealthy. Change affected taste
Post Maturity/ Renewal: Creation of variations
market research
MCDONALD’S
Uses customer data for research
McD Tech Labs, established in Silicon Valley, aims to analyse customer data
establishing market objectives
MCDONALD’S
Senior Marketing Executive, Alistair Macrow, outlined McDonald’s overall market objective, stating: “Raising our marketing ambition is about elevating our focus. Moving beyond brand engagement - when customers feel a personal connection and eat McDonald’s - to brand advocacy - when people feel really good about visiting McDonald’s.”
TL;DR turning the brand engagement into brand advocacy
identifying target markets
APPLE
Targets nations with growing and healthy economies due to the premium nature of the iPhone
developing marketing strategies
MCDONALD’S
Under the Accelerating the Arches growth plan, the company aims to:
1. Maximise marketing – with the aim of encouraging brand advocacy. McDonald’s see that there are 4 drivers of this
– Food
- Integrity
- Value
- Affinity
- Commit to the core - with a renewed focus on chicken, burgers, and coffee.
- Double down on the 3 D’s (Digital, Delivery and Drive Thru) - with a focus on how the customer transacts with the company.
implementation, monitoring and controlling – developing a financial forecast; comparing actual and planned results, revising the marketing strategy
MCDONALD’S
Through the MyMaccas app, McDonald’s can launch marketing campaigns at the click of a button.
Plexure, an app development company partly owned by McDonalds, states that it can launch a marketing campaign within 30 minutes to 20 million customers.
Then, using real-time data (by way of digital ordering channels), McDonald’s can closely monitor the results of all aspects of a marketing plan. After analysing this data, changes can be made on a regular basis (controlling)
market segmentation, product/service differentiation and positioning
APPLE
Demographic
Income: Price-tag of products
Psychologic
Apple products are perceived as a status symbol
Behavioural
Apple provides bundled data plans, segmented by the usage
Geographic
Introduction of smartphones with larger screens, desired by the growing Asian market
Release of the ‘budget’ iPhone SE, targeting the low-income consumers of China and India
products – goods and/or services
APPLE
Brand image of Apple –> luxury and quality
Packaging of Apple products –> 59.5% of iPhone users keep the phone box until they replace the phone
Design creates a sensation of luxury and anticipation –> high retention rate reflects the nostalgia
price including pricing methods – cost, market, competition-based
McDonald’s employs the pricing strategies of:
- Loss Leader: Loose Change Menu
- Price Points: Most of the products are of similar prices of ‘tiers’
- Price Bundling: Family Boxes and Meals
[price] - price and quality interaction
APPLE
The high cost and brand image of Apple establishes higher expectations and demands of quality
promotion
MCDONALD’S
Sales Promotion –> 30 days 30 deals, sales on MyMaccas app
Sponsoring FIFA 2023 Women’s World Cup
Loyalty points –> MyMaccas points
