Marketing analytics i
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Transcript of Marketing analytics i
McDonald’s New Menu Marketing Analytics I
Perceptual Map
Jyoti Swamkar • Mimi Nguyen • Daniela Ulloa • Alessio Zanetto
Brand Value
Total Revenue• US$ 28.1B (2013)
Net Income• US$ 5.6 billion (2013)
Sales• Ave. US$ 2.5M per store• 18% - 40% from food sales
Gross Margin• 38.3% (June 2015)
Channels• 36,000 outlets serve 69M
customers each day in over 100 countries.
Brand Value• US$ 34.7B
Consumer Perception Ranking• 85th place (Forbes)
McDonald’s still holds the largest market share ~17%, and remains the most successful fast-food chain worldwide.
https://drive.google.com/file/d/0Bwv0Irjw9YDgOG8wX2g2SGVDWW8/view?usp=sharing
http://marketrealist.com/analysis/stock-analysis/consumer/restaurants/charts/?featured_post=35362&featured_chart=35361
82% revenues from real estate; 18% from food
sales
60% revenues from real estate; 40% from food
sales
Europe 2012 U.S. 2012
Business Model
STRENGTH
OPPORTUNITY
WEAKNESSBrand. Global brand, industry leader. Largest market share ~17%Biz Model. Shared risks spread worldwide between management, franchisees and suppliers. Maximized & optimized system for training and execution to scale growth.Resources. Real estate portfolio, IP / trademark.Diverse Value. Variety of international dishes, and low-cost menu attract mass market.
Personalize Food. Build your burger kiosks.Technology. Mobile order and pay; web order for pickup or delivery.Localism. Regional menu, e.g. organics, healthy.Re-imaging. Modernize restaurants’ look.Social Responsibility. More awareness around charitable programs to look progressive. Market Development in emerging markets.
Intense Rivalry. Saturated market. Socio-Cultural Factors. Shifting consumer preferences, and info & reviews via the internet.Economic Factors. Increased costs for commodities, wage dispute, exchange rates, austerity measures.Political. Levies, regulations, conflicts abroad.Environmental Factors. Climate change, packaging
Losing Market Share. 30% profit loss 2014 Poor Reputation. Junk food, mistrust, Supersize Me, Fast Food Nation.Low Differentiation. Low-cost & convenience seen as commodity. Quantity for price rather than quality for price.Bloated Menu. increases costs and slow down down service.
THREAT
INTERNAL
EXTERNAL
SWOT
Buyer Power
Potential Entrants
Supplier power
Competitive Rivalry
Threat of Substitute
Porter’s 5 Forces Analysis
HIGH• intense price-driven• low differentiation• saturated market• diverse players• 8.6% industry growth• capacity increase
HIGH• buyer volume • viable substitutes• switching costs• price sensitivity
MEDIUM• capital expenditures• economies of scale• cost advantage• brand equity• regulations• retaliation
HIGH• variety of choices• perceived differentiation• quality • switching costs
MODERATE• viable substitute• effective distribution• differentiation
Would 60% of the respondents in San Francisco consider McDonald’s if it introduces 3 healthy new menu options?
o Minimum of 3 menu options are rated 60% or higher by respondents
New Menu
• Black Bean Burger• Quinoa Kale Salad• Tofu Lettuce Wrap• Apple Celery Smoothie
• Minestrone Soup• Tomato Mozzarella Panini• Mushroom Spinach Omelet
Solution Process
Selection Criteria
• Secondary Research to determine healthy/ organic criteria
Market Survey
•Primary Research•Survey 1: List Top 6 criteria•Survey 2:•Rate McDonalds and its competitors on the criteria•Gauge acceptance rate of new menu options at McDonalds
Spreadsheet Graphing
• Collecting survey results
• Determining Calibration Procedure
• Plotting Perceptual Maps
Spreadsheet Formatting
• Outline the axis and adding data labels to make the perceptual maps readable
Results and Interpretation
• Should McDonald's grow in Health/ Organic food segment in San Francisco?
• Conclusions
ResearchMethod
Sourceso American Customer Satisfaction
Indexo Journals
Findingso Fast-Food Customer Perception
Benchmarko Customer Satisfaction
o Developing Trends Towards Fast-Casual
Final Criteriao Freshnesso Taste of Productso Quality of Serviceo Speed of Service o Food Quality Levelo Cleanlinesso Product Value
Final Criteria
o Friendliness of Staffo Speed of Serviceo Priceo Food Quantity Levelo Operations Hourso Restaurant Locationo Variety of Products
o Food Presentationo Customized Menuo Brand Valueo Nutrition Labelo Restaurant Layouto History Behind Ingredientso Social/Online Trendo Brand Historyo Restaurant Size
FirstSurvey Questions
Primary Research -1
First Survey Results
Over 50
25 to 50
18 to 25
15
1
Criteria AverageFreshness 9.49
Food quality level 9.43
Cleanliness 9.14
Taste of products 9.11
Quality of service 8.65
Product value 8.32
Friendliness of staff 8.30
Speed of service 8.03
Price 7.49
Food quantity level 7.27
Operation hours 7.03
Restaurant location 6.97
Variety of products 6.73
Food presentation/display 6.73
Customized menu 6.70
Brand value 6.68
Nutrition label 6.51
Restaurant layout 6.14
History behind ingredients 5.95
Social/online trend 5.76
Brand history 5.03
Restaurant size 4.27
❑ 100% of respondents are aware of healthy/
organic food
❑ 87% eat organic food more than once a week
❑ Top 6 criteria according to the respondents are determined
❑ Respondents mostly belong to the age group 25-50
❑ Next Steps rate McDonald’s vs.
competitors on criteria
SecondSurvey Questions
Survey Results & Perceptual Map Model
Perceptual Map
Low Product Value
High Product Value
Burger King
Super Duper
Panera Bread
Starbucks
In n Out Burgers Chipotle
Very CleanNot CleanMcDonald's
Low Product Value
High Product Value
Burger King
Super Duper
Panera Bread
Starbucks
In n Out BurgersChipotle
High Service Quality
Low ServiceQuality McDonald's
Low Product Value
High Product Value
Burger King
Super DuperPanera Bread
Starbucks
In n Out BurgersChipotle
Very TastyNot Tasty McDonald's
McDonald's to be
Product Value
Taste of Product, Freshness,Food QualityCleanlinessService Quality
McDonald’s moves to the more tasty, higher product value segment
ASSUMPTION
New Menu at McDonald’s
❑ We asked respondents if they would accept at least 3 new
❑ menu items at McDonald’s
Possible Reasons for Low Acceptance
DemographicsBehavior Pattern
Market Comparison
Location - Category - Channel
• 8 stores• Fast food • Franchises and company owned
• 11 stores• Fast food • Franchises and company owned
• 2 stores• Fast casual • Franchises and company owned
• 50 stores• Fast casual • Licenses and company owned
• 6 stores• Fast casual • Company owned
• 1 store• Fast casual • Company owned
• 9 stores• Fast casual • Company owned
Market ComparisonPrice - ProductTarget market - Objective
• Target: people looking for fast and affordable meal• Objective: reasonably priced quality food, served
quickly, in attractive and clean surroundings
• Target: family, business people, blacks and hispanics• Objective: cheap, fast, convenient food with
memorable customer experience
• Target: urban workers and suburban dwellers • Objective: authentic and fresh artisan bakery in a
quick service menu selection
• Target: young urban adults and tourists• Objective: not only coffee, but a whole experience
around quality treats
• Target: professionals, commuters, tourists, students• Objective: superior quality, environmental
conscious, great experience
• Target: family, young singles, tourists, students• Objective: fresh, made-to-order food prepared and
served by friendly, well-trained people
• Target: millenials (15-35 years old)• Objective: provide food with integrity
Perceptual Map What If? Result
Burger King releases a new menu line centered around “freshness”e.g. Vegetable & Fruit smoothies, Tofu Burgers, Sweet Potato Fries
Burger King & McDonald’s align
(look at data)
McDonald’s chooses to fully dive into the healthy & organic market
based on segmentation
McDonald’s will lose core segment
that aligns with convenience and
favors “unhealthy” as a result of
shifting into a different market
New competitors come into the market & deliver a fast-casual
option for McDonald’s core market
Scenarios
Threat of New Entrants
Market Place Disaster
Intensity of Rivalry
STORE
Insights• Customers may not eat at McDonald’s even if it introduces healthier menus
• McDonald’s strengths lies in product value & needs to maintain its position.
• Burger King is too close to McDonald’s which is a potential threat.
• More representation from lower income household in primary research
• Food freshness is a growth opportunity in San Francisco
Conclusion
• McDonald’s should increase focus on product rationalization• Allowing customers to personalize their food, e.g. build your own burgers, is
an opportunity to improve its product offerings.
Thank you for your attention