Documente Academic
Documente Profesional
Documente Cultură
Stage: A
McDonalds is the world's leading food service retailer with more than 30,000 restaurants in 119
countries serving 46 million customers each day. Each restaurant meets strict requirements to
make it the same as all others. The name McDonalds has become synonymous with a quality
product at a reasonable price.
McDonalds is one of the best known fast food brands worldwide. Marketing strategy being
followed by the McDonald is to design plan in such a way that it helps to meet customers need.
Legal contracts, quality standards and performance specifications help to ensure that individual
restaurants and food orders will be the same. They make sure that no matter where you order a
Big Mac, it should have the exact same weight, size and quality. McDonalds has a strict
requirement that food be fresh and not stored more than a certain number of days.
McDonalds is very much particular for marketing research. They try to conduct a proper
marketing research according to their set standards and rules, before launching a new product as
well as opening a new store at some specific location. They also have a separate Real Estate
Agency for conducting thorough marketing research, according to their customer wants and
needs and their satisfaction, before introducing a new product, service or opening a new outlet.
McDonalds introduces new beef burger named as Mc-Royale, which was launched on 21st
November 2013. Mc-Royale is launched to attract new customers who like beef burgers.
McDonald already has beef burgers, which are: Beef Burger, Beef n Cheese, Big Mac & Double
Beef n Cheese. Moreover this new product has special features, like it is big and juicy.
The burger being introduced by the McDonald is in growing stage of its life. Differentiation of
the newly launched burger Mc-Royale can be judged through its slogan i.e. Big, Juicy & Tasty!
Worlds Favorite.
Mc-Royales target market is YOUNG ADULTS and PEOPLE OLDER THAN THAT.
McDonald has tried to maintain a powerful attraction especially for the young adults in this
product.
Mc-Royale is consumed by people of different age groups. It is also consumed by children,
teenagers, adults as well as old people. It is being consumed by both genders male and female.
Mc-Royale is available at reasonable price. So it is being consumed by the lower, middle as well
as the higher class. Mc-Royale is famous and is being consumed by people of all religions and
nationality.
Consumers of Mc-Royale have a positive attitude towards the product which makes it the leader
in the market. Mc-Royale dominates the market. Lifestyle determines the way of living of
people. It describes how a consumer leads his life. Mc-Royale is being consumed by all.
I engaged myself in this marketing research to solve marketing problems faced by McDonalds
after launching their new product, Mc-Royale. Thats why this research is Problem Solving
Research.
The research objective is to find out useful information to help management of McDonalds to
make future decisions about the marketing strategies of the newly launched product of
McDonalds.
According to the information needed to conduct this research our research is Conclusive
Research Design. Our research will assist the decision makers in McDonalds in determining,
evaluating and selecting the best course of action to take in the present situation, after the launch
of Mc-Royale.
The research is Descriptive Research because it is conducted due to the following reasons:
To describe the characteristics of relevant groups such as consumers and market areas of
Mc-Royale
The SWOT analysis of Mc-Royale burger clearly indicates the strengths of Mc-Royale Burger as
a product in market. The Mc-Royale was found to be a leader in its category of Burgers, with
strong customer loyalty. Intensive distribution of Mc-Royale as a Burger was seen in urban areas
of the country. The major threats of the Mc-Royale burger as shown in the figure below indicates
that Mc-Royale has made several attempts to revamp itself as a Healthy Product but till date its
perseverance towards the tag line is low by the consumers. The Mc-Royale burger is in the
growth stage of product life cycle with a strong inclination towards the maturity stage.
STRENGTH
Market leader in its segment.
Strong brand loyal consumer
base.
Product according to the need
OPPORTUNITY
Increasing number of working
youth.
Product has been acceptable in
youth
Category.
Shift to rural market.
Changing preference of
consumer towards fast food.
S
W
O
T
A
N
A
L
Y
S
I
S
WEAKNESS
Product is dependent on each
other.
Not so much presence in rural
market.
THREAT
Price war with competitors.
Strong presence of regional
Competitors.
Consumers dont perceive it as a
Healthy Product.
This research is being conducted to find out useful information and to report such information to
help management of McDonalds to make future decisions about the marketing strategies of the
newly launched product of McDonalds.
The entire research will take a time of about 2 weeks. After the completion of 2 weeks, its results
will be generated and will be forwarded to the marketing department of the McDonalds for
whom the research is being conducted to resolve their issues regarding their marketing strategy
adopted by them for their newly launched product, Mc-Royale.
Budget
Amount
15,000
Visits to franchises
10,000
8,000
Stationery
2,000
Internet charges
3,000
Indirect Expenses
5,000
Total Expenses
43,000
Stage: B
Problem Solving
Research
Product Research
Pricing Research
Promotion Research
Problem Definition:
In McDonalds the marketing research problem was to determine the relative strength and
weakness of their newly launched product, Mc-Royale. Specifically research will provide
information on the following questions:
1.
2.
3.
4.
5.
Research Objective:
The research objective is to find out useful information to help management of
McDonalds to make future decisions about the marketing strategies of the newly launched
product of McDonalds.
Research Hypothesis:
H0: The consumers appreciate the taste and pricing strategy of Mc-Royale.
H1: The consumers do not appreciate the taste and pricing strategy of Mc-Royale.
Research Design:
According to the information needed to conduct this research, it is Conclusive Research
Design. This research will assist the decision makers in McDonalds in determining,
evaluating and selecting the best course of action to take in the present situation, after the
launch of Mc-Royale.
The research is Descriptive Research because it is conducted due to the following
reasons:
1. To describe the characteristics of relevant groups such as consumers and market
areas of Mc-Royale
2. To estimate the percentage of units in a specified population of Mc-Royale
exhibiting a certain behavior.
3. To determine the perceptions of Mc-Royale characteristics.
4. To determine the degree to which marketing variables are associated.
Survey Method:
I am using structured questionnaire given to a sample of population and designed to
elicit specific information from respondents. I am using structured data collection method
i.e. prearranged questionnaire. In which we are using fixed response alternative questions
due to following reasons.
Fixed response questionnaire is simple to administer.
The data obtained are reliable because the responses are limited to the
alternative stated.
The use of fixed response questions reduces the variability in the results that
may be caused by differences in interviews.
While conducting this proposed research, researchers will report to the marketing department of
the McDonalds on timely basis, after regular intervals. Meanwhile, information obtained must be
discussed with the marketing managers and guidance must be obtained from them regarding the
particular matters to be dealt with for the completion of the proposed research. For conducting
the research in the appropriate manner, it must be kept in mind that detailed knowledge regarding
the product about which research is about to be conduct and McDonalds marketing strategies
being followed by them especially for marketing their newly launched product, Mc-Royale, must
be obtained for obtaining the useful information from the research.
For making this research completed, about 10 staff members are being required to make it
possible and for those staff members about 2 weeks time is required for proper conduct of this
proposed research. As questionnaire being select as an approach to conduct survey report, so
filling up of questionnaires can be seen as an indication of the required information obtained.
General public, visiting fast food restaurants will be taken as a population to conduct this
research and among them few will be selected as research sample group.
Assessment (Task: 2)
MCROYALE RESEARCH QUESTIONNAIRE
Dear Respondent:
I am conducting a marketing research for McDonalds. I would appreciate your help in
filling this questionnaire.
No
If no please discontinue.
No
Twice
No
Yes
No
If not why?
______________________________________________________________________
________________________________________________
Q6 How did you hear about Mc-Royale?
Newspaper
Hoarding
Restaurant
Cable
Q7 How many times you order Mc-Royale after your first trial?
Every Day
Once a week
Once a month
Never
If never, please state reasons why?
______________________________________________________________________
______________________________________________________________________
_____________________________________
-> Please attempt this question if you checked No in Question 2
KFC
Pizza Hut
Q10 Are you satisfied with the quality at McDonalds?
High
Moderate
Low
Most
Preferred
Preferred
i. Mc Donalds_______
ii. KFC
_______
iii. Pizza Hut _______
Mother
Children
Low
Fair
High
Very High
Q14 Would you like to purchase another brand (i.e. KFC and Pizza Hut) if it is
available at lower price?
Yes
No
12am-5pm
5pm-9pm
9pm-2am
Q18 On a scale of 1-5 please indicate the attractiveness of the following media to
you?
Least
Most
Attractive
Attractive
Types
Attractiveness
Television
News Papers / Magazines
Billboards / Neon Signs
Store Displays
Hoardings
Demographic Information
Q23 Age:
15-19
20-24
31-35
51-60
25-30
36-40
61-65
Q24 Gender:
Male
Female
41-50
65 or over.
Q25 Education:
Middle
Secondary
Intermediate
Graduation
Masters
Other_________
(Please Specify)
Q26 Profession:
Student
Business man
Executive
House wife
Working woman
10,000-19,999
20,000-29,999
30,000-39,999
40,000-49,000
50,000-59,000
60,000-79,999
80,000-100,000
Above 100,000
Married
Divorced
Single
No
Number
Under 5
6-9
10 13
13 15
OPTIONAL INFORMATION
Name: ________________________
Recommendations for Mc-Royale:
________________________________________________________________
________________________________________________________________
2015
________________________________________________________________
Assessment (Task: 3)
Assignment
Marketing
Module
[McDonalds]
[22/01/2015]
Table of Contents:
Executive Summary
15
Background
16
Methodology
16
Analysis
17
30
Interpretation
31
32
Executive Summary
This report focuses on the marketing research for McDonalds recently launched product McRoyale. This report initially gives the introduction, background and mission of the company then
it investigates the Marketing Mix of the company, by discussing the four Ps i.e. Product, Price,
Place and Promotion.
It discusses in detail and examines the newly launched product of the company Mc-Royale how
they molded the product to accommodate the cultural differences and the degree of adaptation
inaugurated in response to the public.
The marketing research of Mc-Royale will then be scrutinized by giving details about sampling
and analyzing the results graphically. The purpose of conducting this research was to determine
the relative strength and weakness of McDonalds newly launched product, Mc-Royale.
Specifically research will provide answers to the questions i.e. consumer preferences about McRoyale, pricing of Mc-Royale, the most effective advertising media for Mc-Royale, product
awareness, and the demographic factors affecting the sales of Mc-Royale.
The objective of conducting this research was to find out useful information to help the
management of McDonalds to make future decisions about the marketing strategies of the newly
launched product of McDonalds.
The survey method used was questionnaire and the sample size taken out of it. Graphical
analysis is done at the end of each statement of the questionnaire. Conclusions &
Recommendations for Mc-Royale has been provided at the end of this report.
Background
McDonalds introduces new beef burger named as Mc-Royale, which was launched on 21st
November 2013. Mc-Royale is launched to attract new customers who like beef burgers.
McDonalds after launching their new product, Mc-Royale seems to face various problems with
respect to their marketing segment regarding their marketing strategies.
Marketing research is being conducted in McDonalds to resolve their problem by determining
the relative strength and weakness of their newly launched product, Mc-Royale.
The objective of this research is to find out useful information to help management of
McDonalds to make future decisions about the marketing strategies of the newly launched
product of McDonalds.
Methodology
According to the information needed to conduct this research, Conclusive Research Design is
being used for it. This research will assist the decision makers in McDonalds in determining,
evaluating and selecting the best course of action to take in the present situation, after the launch
of Mc-Royale.
Structured questionnaire is being used for this research, given to a sample of population and
designed to elicit specific information from respondents. Structured data collection method is
selected i.e. prearranged questionnaire. In which fixed response alternative questions are being
used due to following reasons.
Fixed response questionnaire is simple to administer.
The data obtained are reliable because the responses are limited to the
alternative stated.
The use of fixed response questions reduces the variability in the results that
may be caused by differences in interviews.
Personal Interviewing Method is being selected for this research, in which Mall-Intercept
Personal Interviewing will be used. I will go to selected stores of McDonalds, KFC and Pizza
Hut to fill questionnaires from respondents. Following are the reasons to choose Mall-Intercept
Personal Interviewing.
It allows for diversity of questions and clarifies the ambiguities about
questions.
It also allows a moderate degree of sample control.
It has a moderate data collection speed.
It yields the highest response rate.
Target population contains the customers of McDonalds. Research sampling frame contains
the adult consumers of Mc-Royale. Sampling without replacement is being used in which a
respondent who has filled the questionnaire once will be excluded.
Sample size of forty respondents at three stores of McDonalds, one store of KFC and one store
of Pizza Hut is being selected. Because the population is being converted into five regions and
according to the number of consumers in these regions a sample size of forty in each region is a
good representative of the population.
Probability Sampling Technique is being used in which Cluster Sampling is selected.
Population is being divided into five clusters on the basis of geographies. And from each cluster
sample size of forty adults is being selected.
Analysis
19%
Yes
No
82%
19% of the populations who come to McDonalds are not aware of the Mc-Royale launch at
McDonalds and 81% of them are aware.
50%
50%
Yes
No
In the response of the question, have u tried Mc-Royale at McDonalds? 50% of the
respondents who are aware of Mc-Royale launch at McDonalds replied yes and 50% replied no.
3: How many times have you tried it?
20%
22%
Once
Twice
58%
In the response of the question, how many times have you tried it? 58% of the respondents,
who have tried Mc-Royale, have tried it once, 22% of the respondents have tried it twice and
20% of the respondents have tried it more than twice.
Yes
7%
Bad Taste
Low18%
Quality
4%
4%
11%Filling
Don't like
7%
Big Size
No Introduction
50%
No new change
The reasons for not liking Mc-Royale expressed different views like bad taste, big size, no
introduction, dont like beef; dont like filling and no new change.
6: Do you think the price justifies the value for money?
48%
52%
Yes
No
In response to the question, do you think price justifies the value for money? 52% of the
people responded yes and 48% said that no.
15%
6%
Bad Taste
Low Quality
High Price
70%
The reasons given by respondents on the unjustifiable price are bad taste, low quality, dont like
beef, dont like filling and very high price.
8: How did you hear about Mc-Royale?
3%
32%
33%
News Paper
Hoardings
Restaurant
Cable
31%
In response to the question, how did u hear about Mc-Royale? The newspapers, hoardings and
the restaurants played a major role in making people familiar to the Mc-Royale.
9: How many times would you order Mc-Royale after your first trial?
4%
36%
Every day
30%
Once a week
30%
Once a month
Never
In response to the question, how many times would you order Mc-Royale? 30% said that once
a month, 30% said once a weak and 36% said never and 4% said every day.
10: Reasons for never reordering Mc-Royale?
60
No Introduction
I don't like Beef Bad Taste High Price Low Quality No time
40
20
0
1
Reasons
The people who said that they will never order Mc-Royale gave the reasons like it has very high
price, bad taste, low quality, dont like beef, no time, do not like filling.
11: Reasons for not trying Mc-Royale.
30
Too much Beef
No time
Percentage
20
10
0
13 15
Bad Taste
High Price
8
4
1
Big size
20
KFC or Pizza Hutis better
No Introduction
Reasons
In response to the question, why you did not try Mc-Royale? Respondents gave reasons like,
they do not like McDonald burger, in their view KFC & PIZZAHUT is better than McDonald,
few of them said they like other burgers of McDonalds specifically Happy Meal and some said
that they have had no time for trying it.
12: If you do not find Mc-Royale at McDonalds where would you go?
24%
29%
KFC
Pizza Hut
46%
In response to the question, where would you go if you do not find Mc-Royale at McDonalds?
47% said KFC, 24% said pizza hut and 29% said any other McDonald store.
13: Are you satisfied with quality at McDonalds?
16%
High
24%
Moderate
Low
60%
In response to the question are you satisfied with the quality at McDonalds? 60% said that
quality is moderate 24% said that quality is high 16% said that quality is low.
14: Please rate the following brands on a scale of 1-5:
40
35
30
25
Least
Preferred 20
Less Preferred Indifferent More Preferred Most Preferred
Percentages
15
10
5
0
McDonalds
KFC
Pizza Hutt
This graph clearly explains that most of the customers visiting McDonalds are indifferent when
they are asked to rate the brand among McDonalds, KFC and Pizza Hut. The customers who
most preferred McDonalds are only 14.66%.
15: Who in your family decides on purchasing issues, concerning food?
26%
Father
Mother
34%
22%
Children
18%
Other
In response to the question who in your family decides on purchasing issues, concerning food?
34% of the respondents said that their decision is influenced by their children, 22% said father
makes the decision, and 18% said mother makes the decision and rest of the 26% respondents
who fall in other category, these are those who said, their decision is influenced by their friends
or they make their decision them self.
16: Rate the price of Mc-Royale on following scale?
29%
2% 1%
38%
Very Low
Low
Fair
High
Very High
31%
31% said, it is high, 37% said, its fair, 29% said, it is very high, 2% said, it is very low and
1.18% said that it is low.
17: Would you like to purchase another brand (i.e. KFC and Pizza Hut) if it is available at
lower price?
20%
Yes
No
80%
In response to the question, 80% said yes and 20% said no.
18: Do you recall any advertisement of Mc-Royale?
53%
Yes
47%
No
In response to the question 53% said no and remaining 47% said yes.
19: If your answer is yes which advertisement, please specify?
14%
8%
3%
28%
TV
News Paper
Billboards
Store Displays
Hoardings
47%
47% said from billboard, 28% said, from newspaper, 14% said, from hoardings, 8% said, from
TV, 3% said, from store display.
20: What is the best media timing for the advertisement on Television?
8%
2%
7am - 12am
38%
12am-5pm
3%
5pm-9pm
9pm-2am
Other
50%
49% of the respondents watch TV from 5pm to 9pm, 38% from 9pm to 2am, 8% watch TV in
other timings then mentioned (these people usually have no fixed time at which they watch TV),
3% watch TV from 12am to 5pm and 2% from 7am to 12am.
21: On a scale of 1-5 please indicate the attractiveness of the following media to you?
70
60
50
40
Least Attractive
Percentages
30
Less Attractive
Indifferent
More Attractive
Most Attractive
20
10
0
Television
Papers/Mag
Billboards
Store Displays
Hoardings
This graph clearly shows the attractiveness of different medias for advertisement. It shows that
TV is most preferred by most of the respondents for advertisement after that Billboards are most
preferred and then Magazines, then hoardings and Store displays are most preferred.
22: Which Television channel you watch more, please specify?
1%
2%
8%1%
2%
1% 2%
3%1%
4%
1%
10%
2% 1% 2% 1% 1% 2%
20%
18%
18%
3% 2%
18%
32%
2%
3%
9%
31%
1%
3%
1%
12%
12%
7%
2%
2% 2%
14% 6%
1%
5%
11%
2% 5%
6%
6%
25: What comes in to your mind when you think about Mc-Royale?
Bad Burger
15%
6% 3%1% 11%
Nothing
Fresh Salad
23%
A produc t of Mc Donald
14%
16%
T asty and juic y
Beef Burger
A good burger
2%
Quarter pounder
10%
22% said, nothing, 16% said, A product of McDonalds, 15% said, Something big and
Royale 14% said, something tasty and juicy. 11% said, A bad burger .10% said, A good
burger.
26: Percentages of age groups visiting McDonalds, KFC and Pizza Hut.
45
40
35
30
25
20
15
10
5
0
15-19
20-24
25-30
31-35
36-40
41-50
51-60
61-65
65 or over
44% visiting the store were 20-24. 24% were from 25-30. 13% were from 15-19.
27: Percentages of male and female consumers visiting McDonalds, KFC and Pizza hut?
36%
64%
Female
Male
Out of total respondents 64% were male and 36% were female.
28: Education level of consumers visiting McDonalds, KFC and Pizza Hut?
5% 2%1% 8%
39%
Middle
Secondary
Intermediate
Graduation
45%Masters
Other
Most of the customers who visit McDonald, pizza hut and KFC stores have done graduation and
then master degree; customers having the educational level not more than middle are also
visiting these stores partially.
29: Profession of consumers visiting McDonalds, KFC and Pizza Hut?
9%
Student
11%
4%
Business man
10%
45%
Executive
House wife
Working woman
Other
21%
45% of consumers visiting McDonalds, KFC and pizza hut are students 21% are businessmen
and 9% are housewives.
30: Marital status of consumers visiting McDonalds, KFC and Pizza Hut?
3%
34%
Single
Married
63%
Divorced
The marital status graph shows that the single people are main customers of McDonald, KFC and
pizza hut that is 63% of the total, which shows that they are the major consumers of these stores.
31: Percentages of Married consumers who have young children?
33%
67% children
Have young
In response to the question do you have any young children? 33% of the respondents said yes
and no is mentioned by 67% respondents.
32: Respondents who have young children are of following ages.
100
80
60
Percentages One
40
Two
Three
20
0
Under 5
6 to 9 0
10 to 13 0
13 to 15 0
This graph clearly shows that consumers who have young children under the age 5, out of these
71% have one children under 5, 21% of these have two children under 5 and 7% of these have
three children under 5.
Interpretation:
The first graph clearly illustrates that the product awareness for Mc-Royale is 81% of the sample
size we took for the questionnaire. Now of this 81% of the respondents 50% have tried it and
50% have not.
Of the 50% of the respondents who have tried Mc-Royale, 58% have tried it once and only 20%
have tried it more than twice.
From these statistics we can easily see that although half of the respondents have tried it but the
repeat customers are only 20% whereas, on the contrary 58% have tried it just once. This should
raise a question for the management of McDonalds as to why their customers are not trying McRoyale again, despite the high percentage of product awareness i.e. 81%.
Referring again to the 50% of the respondents who have tried Mc-Royale 66% has liked it
whereas 34% have not liked it. The three most dominant reasons specified by these 34% who
have not like Mc-Royale are:
As mentioned earlier, 50% of the respondents have not tried Mc-Royale. The three most
dominant reasons for not trying Mc-Royale are as follows:
No time (24%)
I dont eat beef (20%)
No introduction (15%)
KFC or Pizza Hut is better (13%)
Other Burgers (7%)
53% of the respondents do not recall the Mc-Royale add, whereas 47% do remember it. Of the
47% of the respondents who do recall the advertise, 47% of them recall it from billboards and
28% recall it from newspapers.
Similarly, 34% of the respondents have heard about Mc-Royale at the McDonalds restaurants,
32% have read about it in newspapers and 31% have seen it on hoardings. A huge contrast as
compared to these figures is the percentage of respondents who have heard about Mc-Royale
through cable (3%).
From this we can see that the percentage of awareness through cable is very low for this
particular product. The management can improve their advertisement by changing the media
timings of advertisement. 49% of the respondents watch television during 5pm 9pm and 38%
watch it during 9pm 2am.
Thats why the management of McDonalds should advertise more on TV during the timings
indicated above.
McDonalds has concentrated more on store display than advertising their product on TV. The
majority of the respondents recall seeing the Mc-Royale advertises in the restaurant itself. This is
not a good sign, as consumers have usually decided before hand on what they will eat at
McDonalds. Very few consumers actually change their mind after seeing a new product.
Therefore, McDonalds should now focus on informative advertising on the TV.
The customers who are single are more aware of the Mc-Royale launch and the also like
Mc-Royale and the price complain of Mc-Royale is done mostly by the customers who
are single and fall in age groups 20-24 and 25-30. Therefore the management should
After analyzing all the graphical results we have come to the conclusion that the management of
McDonalds should reduce the price of Mc-Royale to increase its sales. Because consumers have
a perception that beef is cheap thats why the beef burger should also be cheaper than other
burgers. The management should work on the taste of Mc-Royale and should change it a little
according to the taste of the public. Because the graph given above shows that the consumers
who dont like Mc-Royale or who are not trying Mc-Royale complain about the taste of McRoyale saying that its too much creamy and cheesy. The management should also work on
introducing the Mc-Royale in the advertisement, especially on TV. The advertisement should be
informative advertisement telling people about the new features added in the product. The
management should also try to change the perception of people about beef in the advertisement
of Mc-Royale. People have a perception that beef is not good for health. Management can try to
change the perception by telling the benefits from eating beef in the advertisement of McRoyale. The hoardings should be placed inside the city instead of placing them outside the
restaurant, so that more consumers can see them. The ketchup should also be placed on the table
in bottles. Because consumers are complaining that, its very difficult to use the ketchup from the
small disposable plates and some of them also complained that, one has to get up several times to
get ketchup. People have a perception that they use ketchup with burger, thats another reason for
placing the ketchup bottles on the table.