Nindya Harum Solicha 19011033 Tejo Sandi Saputra 19011134 Reza Marta Fawzy 19011146 Doni Laksono 19011156

Final Report Shopper Behaviour

McDonald’s Simpang Dago

!Table  of  Contents  ………………………………………………………………………………………  

Chapter  1.  Introduction  1.1  Background  ………………………………………………………………………………………………………  1.2  Research  Objective  ……………………………………………………………………………………………  

  1.3  Research  Problem  ………………………………………………………………………..……………………     1.3  Research  Questions  ……………………………………………………………………………………………  !Chapter  2.  Methodology     2.1  Project  Planning  …………………………………………………………………………………………………     2.2  Object  Identi@ication  …………………………………………………………………………………………..     2.3  Section  Selection  ………………………………………………………………………………………………..  

2.4  Data  Collection  …………………………………………………………………………………………………..  2.5  Data  Analysis  ……………………………………………………………………………………………………..  2.6  Final  Report  ……………………………………………………………………………………………………….  

   Chapter  3.  Result  and  Analysis     3.1  Shopper  Characteristic  ………………………………………………………………………………………     3.2  Store  Measurement…………………………………………………………………………………………….     3.3  Shopper’s  Decision  Making  Process:  The  EKB  Model   …………………………………………..  

3.4  Segmenting,  Targeting,  and  Positioning  Strategy  …………………………………………………  3.5  Integrated  Marketing  Communication  ………………………………………………………………..  !

Chapter  4.  Conclusion  4.1  Conclusion  ………………………………………………………………………………………………………..  !

Reference  …………………………………………………………………………………………………………………….  Appendix  ……………………………………………………………………………………………………………………..  !!!!!!!!!!!!

!!!!

Chapter  1  Introduction  

!1.1  Background  !   Fast  food  restaurant,  also  known  as  a  quick  service  restaurant  (QSR),  is  a  speci@ic  type  of                    restaurant   characterized  both  by   its   fast   food   cuisine   and  by  minimal   table   service.  Most  of  people   become   the   consumers   of   fast   food   restaurant   due   to   the   fast   response   in   services  beside  the  menu  offered.  According  to  bisnis.news.viva.co.id,  the  fast  food  restaurant  blooming  in  Indonesia  achieves  more  than  1000  spots  particularly  in  big  cities  such  as  Jakarta,  Bandung,  Surabaya,   Medan,   Semarang,   etc.   Nowadays,   fast   food   restaurants   have   improved   not   only  selling   foods   and   beverages   but   also   selling   the  most   cozy   hang   out   place   to   attract   many  people  to  come  in.  !   Mc  Donald   Simpang  Dago   is   one   if   the  most   crowded   fast   food   restaurant   in  Bandung                      which  states  in  one  of  the  most  strategic  site  in  Bandung.  It  is  on  the  four  junction  and  among  Bandung   colleges.   Beside   offering   special  menu   in   certain   times,  Mc   Donald   Simpang   Dago  also   provide   comfortable   place   to   gather   completed   with   facilities   for   instance   internet  hotspot,   LCD   TV,   lavatory,   pray   room,   smoking   area.   Mc   Donald   Simpang   Dago   has   large  segmentation   which   the   consumers   come   from   groups   of   family,   college   students,   career  people,  etc.  Most  of  them  especially  college  students  often  come  to  Mc  Donald  Simpang  Dago  for  having  meeting  and  accomplishing  assignments.  They  spend  several  hours   in  Mc  Donald  Simpang   Dago   therefore   it   makes   Mc   Donald   Simpang   Dago   looks   have   peek   time   of  consumers  everytime.  !   Realizing  Mc  Donald  Simpang  Dago  as  one  of  the  most  crowded  fast   food  restaurant   in                      Bandung  which  the  consumers  are  mostly  young  people  from  college  students,   there  will  be  two  main  points  of  question  related   to  shopper  behavior   in  point  of  purchase.  These   two  of  questions   will   answer   the   analysis   concept   of   conversion   rate   and   spending   time.  Why   do  people   around  Dago  Bandung   choose  Mc  Donald   Simpang  Dago   as   point   of   purchase?  How  long  they  spend  times  in  Mc  Donald  Simpang  Dago?  !1.2  Research  Objective                        1. to  @ind  out  the  store  measurement  of  McDonald’s  Simpang  Dago  which  are  conversion  rate  

and  spending  time  2. to   know  more   about   the   decision   making   process   of   customer   in   McDonald’s   Simpang  

Dago  based  on  EKB  Model    3. to  @ind  the  Segmenting,  Targeting  and  Positioning  of  McDonald’s  Simpang  Dago  4. to   analysis   the   problem   and   opportunities   of   Integrated   Marketing   Communication   of  

McDonald’s  Simpang  Dago  and  also  give  the  recommendation  toward  it.  !!

1.3  Research  Problem  !     McDonald’s  Dago  Square   (Simpang  dago)   is   the  most   strategic   fast   food  

restaurant  in  Bandung.  It  is  located  in  the  intersection  of  busy  area—Dago—which  connects  four  main  roads;  Dago  Rd.,  Dipati  Ukur  Rd.,  Siliwangi  Rd.,  and  Ir.  H.   Juanda  Rd.  McDonald’s  Dago  Square  is  usually  visited  by  the  people  around  and  sometimes  is  visited  by  people  from  other   cities   or   tourists.   This   visit   will   make   McDonald’s   crowded.   The   people   crowd   in  McDonald’s  have  many  reasons  such  as  to  meeting,  doing  homework,  having  meals,  and  even  just   sitting   to  use   its   facilities—Wi-­‐Fi,  Toilette,  Electricity—and   the  problem   is   they   spend  long  time  only  for  it  with  some  products  of  McDonald’s  purchased  and/or  even  they  do  not  purchase  the  products  at  all.    

!1.4  Research  Question  !

1. What  makes  people  want  to  purchase  products  from  McDonald’s?    

2. Why  do  people  spend  long  time  in  McDonald’s  Dago  Square?  

3. What  marketing  communication  strategy  should  McDonald’s  implement  to  attract  new  customers?  

!!!!!!!!!!!!!!!

!!!! !

Chapter  2  

Methodology  

!1.   Preparation  and  Conception  

First  of  all,  we  would  like  to  make  a  master  plan  method  for  accomplishing  the  observation.  This  is  aimed  to  do  the  observation  with  focusing  on  certain  purposes.  In  the   process   of   preparing   research   problem,   we   also   encourage   the   concepts   and  theories  of  Shopper  Behaviors   in  our   lecture  which  is  given  by   lecturer  and  tutor.  We  have   divided   the   @low   of   observation   process   to   reach   out   the   conclusion   and  implement   the   job   description   for   each   member   of   team.   The   grand   design   of   our  observation  is  put  in  our  observation  timeline.    

2.   Finding  Research  Problem  

The  second  procedure  in  our  methodology  is  analyzing  the  research  problem  for  this   project.  We   determined   to   choose  Mc  Donald   in   Simpang  Dago,   Bandung   as   our  point   of   purchase.   Thus,   we   found   some   research   problems   related   to   our   point   of  purchase,  Mc  Donald  Simpang  Dago;  they  are  conversion  rate  and  spending  time.  In  this   step,   we   are   going   to   analyze   the   reason   why   people   consume   and   choose   Mc  Donald  Simpang  Dago  as  point  of  purchase.  Beside  that,  we  also  want  to  observe  how  much   time   people   spend   in  Mc  Donald   Simpang  Dago?   Those   two   components   of   our  research   problems   will   be   analyzed   with   the   relation   of   shoppers’   characteristics/  behaviors.    

3.   Hypothesis  Prediction    

Before  we  run  the  observation,  we  had  made  hypothesis  related  to  our  research  problem.  The  majority  of  people  who  consume  Mc  Donald  Simpang  Dago  are  due  to  the  menu  offered,  facilities  and  strategic  place  as  point  of  purchase  which  is  situated  close  to  colleges   in  Bandung.  Meanwhile,  people  will  spend  at   least  one  hour  even  more   in  Mc  Donald  Simpang  Dago  to  have  a  meeting  and  doing  college  assignments.  

4.   Data  Collection  Process  

Our   data   collection   process   is   started   by   using   observation   in   McDonald’s  Simpang   Dago   for   conversion   rate   and   spending   time   their   customer.   Then,   we  distribute  the  questionnaire  to  40  (forty)  people  who  consume  and  choose  McDonalds  Simpang   Dago   as   point   of   purchase   to   get   the   additional   data.   Our   participants   are  people  who   visit  McDonald   Simpang   Dago.   It   can   be   an   individual   or   group   such   as  student,  of@icer,  family,  etc.  The  participants  can  be  male  or  female  with  the  range  of  age  

between  under  13  until  above  45  years  old.  We  prefer  distributing  questionnaire  to  interviewing  because  we  believe  that  the  result  of  doing  survey  is  easier  to  be  analyzed  than  analyzing  the  data  of  interview.    

!

We   do   some   observation   three   times;   2   days   in   weekdays  (Thursday,   November   7th   at   12.00-­‐12.30   and   Friday,   december   14th   at  19.00-­‐19.30)  and  a  day   in  weekend  (Saturday,  December,  15th  at  19.00  -­‐  19.30)  

5.   Data  Interpretation  

After   collecting   analyzed   data,  we   process   it   by   using  Mean  Method   (+inding  the   average   value   of   each   data).   In   data   analyzing   process   as   the   part   of   data  interpretation,   we   are   going   to   relate   the   data   among   variables   and   understand   the  causal  relation.  Besides,  we  also  analyze  data  to  prove  our  hypothesis  which  help  us  to  make  conclusion.  In  ordered  to  obtain  valid  and  quali@ied  conclusion,  we  would  like  to  verify   to  result  of  questionnaire  and   then  we  explore   the  statistic  data  of  survey   into  description.    

6.   Taking  Result  

After  accomplishing  whole  procedures  of  our  observation  methodology,  we  can  make  conclusion  for  this  project  however  before  we  determine  the  last  conclusion;  we  consult  to  our  lecturer  and  tutor  for  revising  the  result  of  our  project.  Our  conclusion  will  answer  and  explain  the  research  problem  that  we  have  made.    

!!!!!!!!!!!!!!!!

!

Chapter  3  

Result  and  Analysis  !!

3.1  Shopper  Characteristic     a.  Consumer  Type                    

  The   graphic   and   table   above   shows   that   the   @irst   rank   customer   type   is   individual,                    followed   by   group   and   the   last   is   family.   But   for   note,  on  weekend   the   number   of   group  customer  is  more  than  the  number  of  individual  customer  than  in  weekdays.  The  number  of  family   in  weekend   is  much   different   than   in  weekdays   because   of   free   time   of  most   entire  member  of  family  and  they  have  dinner  at  McDonalds  Simpang  Dago.    

!!!

1st (7/11) 12.00-12.30

2nd (14/12) 19.00-19.30

3rd (15/12) 19.00-19.30 Total

Individual 6 21 11 38

Group 2 6 18 26

Family 1 0 6 7

Consumer Type

Num

ber o

f Typ

e

0

10

20

30

40

Days of Observation 1st (7/11) 12.00-12.30 2nd (14/12) 19.00-19.30 3rd (15/12) 19.00-19.30

Individual Group Family

b.  Gender  

!   From  table  and  graphic  shows  that  male  is  the  most  visitor  of  McDonalds  Simpang  Dago                      but  not  much  signi@icant  different  with  the  number  of  female  customer  of  McDonalds  Simpang  Dago.  Weekend   is   the  day  of  most  number  of  visitors  of  McDonalds  Simpang  Dago  which   is  two/three   times   from   the   customers   in   weekdays   with   male   43   peoples   and   female   31  peoples.  The  number  of  male  in  Thursday  at  12.00  until  12.30  p.m  is  less  than  the  number  of  male  in  other  observation.  !!!!

!!!

1st (7/11) 12.00-12.30

2nd (14/12) 19.00-19.30

3rd (15/12) 19.00-19.30

Total

Male 14 24 43 81

Female 20 18 31 69

GenderN

umbe

r of P

eopl

e

0

20

40

60

80

Days of Observation 1st (7/11) 12.00-12.30 2nd (14/12) 19.00-19.30 3rd (15/12) 19.00-19.30

Male Female

c.  Age  

      This   data   indicates   that   customer   with   age  18-­‐25   years   old   is   the  most   visitors   of  McDonald’s  Simpang  Dago  in  total  of  three  observation  and  every  observation.  They  describe  the   age   of   college   students,   it   doesn’t   surprise   because   the   location  of  McDonald’s   Simpang  Dago  that  near  several  college  in  Bandung.  It   is  followed  by  age  13-­‐17  years  old  who  @igures  the  high  school  students  and  26-­‐40  years  old.    

!!!!!

1st (7/11) 12.00-12.30

2nd (1412) 19.00-19.30

3rd (15/12) 19.00-19.30 Total

< 13 2 0 4 6

13-17 9 4 21 34

18-25 15 26 38 79

26-40 6 11 5 22

>40 2 1 6 9

Num

ber o

f Peo

ple

0

20

40

60

80

Days of Observation1st (7/11) 12.00-12.30 2nd (1412) 19.00-19.30 3rd (15/12) 19.00-19.30

< 13 13-17 18-25 26-40 >40

d.  Reason  to  Buy  in  McDonalds  Simpang  Dago  

  From  40  respondents  who  visit  McDonald’s  Simpang  Dago,  we  know  that  the  reason  to  visit  McDonald’s  Simpang  Dago  are  40%  near  location  from  campus  and  house,  17%  open  24  hours  and  16%  comfort  place.  These  are  the  top  three  reason  with  the  rest  because  of  free  wi@i  (12%),  complete  facility  (9%),  usual  place  that  their  friends  are  visited  (3%),  cool  hangout  place  (2%)  and  they  are  invited  by  their  friend  (1%).  

e.  Activity  in  McDonald’s  Simpang  Dago  

  From  40  respondents  who  visit  McDonald’s  Simpang  Dago,  we  can  conclude  that  46%  of  respondents  have  eat  and  drink,  32  %  are  doing  task,  10%  are  using  Free  WiFi  and  meeting  and  another  reason  is  recharge  their  gadget.  

!

Reason to Buy

1%2%3%9%

12%

16%

17%

40%

Near campus and houseOpen 24 HoursComfort PlaceFree WiFiComplete Facilityusual place that my friends are visitedCool Hangout Placeinvited by friend

Activity

1%1%10%

10%

32%

46%

Eat and Drink Doing TaskUsing Free WiFi MeetingChatting with Friends Recharge Gadget

f.  With  whom  to  visiting  McDonald’s  Simpang  Dago  

  Based   on   the   distributed   questionnaire   toward  40   respondents   that   have   been   visited                      McDonald’s  Simpang  Dago,  63%  of  them  are  visited  McDonald’s  Sipang  Dago  with  their  friend  and   the  next   is  visiting  alone   (19%)  and   the  rest  are  with   family   (8%),  boyfriend/girlfriend  (6%),    and  prospective  boyfriend/girlfriend  (4%)  in  order  to  know  each  other.  !g.  Spending  Time  on  McDonald’s  Simpang  Dago  

  From  40  respondents  who  visit  McDonald’s  Simpang  Dago,  we  can  assume  that  48%  of                      them  spend  1  until  2  hours   to  visit   in  McDonald’s  Simpang  Dago.   Followed  by    25%  of  

respondents  that  spend  2  until  3  hours  for  visiting  McDonald’s  Simpang  Dago  and   the   last   are   2   until   3   hours   and   more   than   5   hours   with   the   same  percentage,  10%  of  respondents  that  spend  their  time  in  McDonald’s  Simpang  Dago.  !

Spending Time on McDonald’s Simpang Dago

10%

33%

48%

10%

<1 jam 1-2 jam 2-3 jam > 3 jam

4%6%8%

19%63%

Friend AloneFamily Boy/girlfriendprospective boy/girlfrind

3.2  Store  Measurement       Conversion  Rate  and  Spending  Time                    !

!

!! !!!!!!

Average Percentage of Conversion Rate

Average Minutes of Spending Time

Week-Days 84.34% 111 minutes

Week-End 85.42% 107 minutes

Days When Sample

Conversion Rate Spending Time

Number of Visitor

(5’)

Number of Buyer

(5’)Percentage Sample Entrance Come-

Out Duration (minutes)

Week-Days

Thur, Nov 7th 2013.

(12.00-12.30)

1 2 2 100 A 12.00 13.26 86

2 5 3 60 B 12.05 13.35 90

3 6 6 100 C 12.13 13.40 87

4 3 3 100 D 12.17 14.42 145

5 1 1 100 E 12.26 15.01 195

6 4 3 75 F 12.29 15.34 185

Fri, Dec 14th 2013

(19.00-19.30)

1 17 8 47.05 A 19.02 21.09 127

2 1 1 100 B 19.08 19.41 33

3 8 4 50 C 19.12 20.39 87

4 5 4 80 D 19.20 21.15 115

5 7 7 100 E 19.25 21.39 135

6 4 4 100 F 19.26 20.17 51

Week-End

Sat, Dec 15th 2013

(19.00-19.30)

1 4 2 50 A 19.00 19.45 45

2 12 10 83.33 B 19.07 19.55 48

3 16 15 93.75 C 19.11 20.40 89

4 9 9 100 D 19.21 21.30 129

5 23 21 91.30 E 19.24 21.41 137

6 17 16 94.12 F 19.30 22.01 191

! Look  at  the  data  above,  there  is  no  signi@icant  difference  on  the  average  percentage  of  conversion  rate  on  weekdays  and  weekend  but  still  on  weekend  has   the   conversion   rate   higher   than   weekdays   for   about   1.08%.   This   fact   is  reasonable  enough  since  the  number  of  McDonald’s  Simpang  Dago  visitors  are  mostly   increasing   on   the   weekends.   Therefore,   we   can   say   that   the   relationship   between  conversion   rate   and  number   of   visitors   in   a   store   tend   to   be  directly   proportional.   In   other  words,  the  more  number  of  visitors  that  come  to  McDonald’s  Simpang  Dago  will  make  a  higher  probability  that  visitors  will  turn  into  buyer  and  make  a  transaction.  !   Conversely,  the  average  minutes  of  spending  time  visitors  in  McDonald’s  Simpang  Dago  is   higher   in   weekdays   than   weekend.   This   fact   occurs   because   of   the   weekdays   is   the  productive  day  to  do  the  task  because  of  the  majority  customer  of  McDonald’s  Simpang  Dago  are   college   students   and   they   reason   to   visit   there   to  do   task   (32%  of   reason   to   visit)  with  their  friends  (63%  of  with  whom  visit).  But,  the  difference  is  a  little  in  average  spending  time  in  weekdays  and  weekend  with  10  minutes  difference. !!!!!!!!!!!!!!!!!!!!!!

!!!

3.3  Shopper  Decision  Making  Process:  EKB  Model  !a.  Framework  Analysis  Shopper  Decision  Making  !Problem  Recognition     Most  decision  making  starts  with  some  sort  of  problem.  The  consumer  develops  a  need                      or   a  want   that   they  want   to   be   satis@ied.   The   consumer   feel   like   something   is  missing   and  needs  to  address  it  to  get  back  to  feeling  normal.    !Search       Once  consumers  perceive  a  need  that  can  be  satis@ied  by  the  purchase  of  a  product,  they                      begin   to   search   for   information  needed   to  make  a  purchase  decision.   Life   experience   in   the  past  helpful  to  make  the  correct  purchase  decision.  This  information  retrieval  is  referred  to  as  internal   search.   If   the   internal   search  does  not  yield  enough   information,   the  consumer  will  seek  additional  information  by  engaging  in  external  search.    In  this  stage  also  beginning  the  risk  management.  People  often  don’t  want  to  regret  making  a  decision  so  extra   time  being  put   into  managing  risk  may  be  worth   it.  People  also  remember  bad  experiences  over  good  ones,  take  that  into  account.  !Alternative  Evaluation     Once  the  consumer  has  determined  what  will  satisfy  their  want  or  need  they  will  begin                      to  begin  to  seek  out  the  best  deal.  This  may  be  based  on  price,  quality,  or  other  factors  that  are  important   for   them.  Customers   read  many  reviews  and  compare  prices,  ultimately  choosing  the  one  that  satis@ies  most  of  their  parameters.  !Selection  Stage     After  summary  all  the  criteria  for  the  decision  the  customers  now  decide  on  what  they                      will  purchase  and  where.  They  have  already  taking  risk  into  account  and  are  de@inite  on  what  they  want  to  purchase.  They  may  have  had  prior  experience  with  this  exact  decision  or  maybe  they  succumbed  to  advertising  about  this  product  or  service  and  want  to  give  it  a  try.  !Evaluation  of  Decision     The   consumer   decision   process   does   not   end  with   the   purchase.   After   consumption,  the   consumer   assesses   the   level   of   performance   of   the   product   or   service.   The   evaluation  process  is  important  because  the  feedback  acquired  from  actual  use  of  a  product  will  in@luence  the  future  purchases.  Positive  performance  of  the  brand  will  make  the  consumer  to  purchase  again.  Unfavourable  outcomes  may   lead  the  consumer  to   form  negative  attitudes  toward  the  brand,  ignore  to  repurchase  that  brand  or  even  eliminating  it  from  the  consumer’s  evoked  set.  

!!!!

b.  Shopper  Decision  Making  in  McDonald’s  Simpang  Dago:  EKB  Model  

 !!! !!!!  !  !!!! ! !!!  !  !!!!

!!!  !

 !!!! ! !!!    !!!!! !!!!!

   !

Look Provided Menu at

the Board

Asking about the menu

Order the menu

Purchase The menu

Seek the seat

  Shoppers’  decision  making  process  is  one  of  the  main  parts  of  purchasing  activities.   The   decision  making   process   of   a   person   is   different   for   each   other  and   it   is   fragile,   so   that   it   can   be   easily   changed   by   external   factors.   As  comparison,   there   are   two   kinds   of   references   of   people   when   they   go   to  McDonald’s  Dago  Square;  individual  reference  and  group  reference.  The  process  is  almost  the  same  with  the  individual  customers,  but  the  difference  between  the  individual  and  the  group  one  is  when  they  (group)  tend  to  seek  the  seat  @irst  when  they  arrive  in  McDonald’s  Simpang  Dago,   then   go   to   cashier   to   order   the   meal   or   spend   several   hours   to   chatting   with   their  friends  or  doing  the  task  @irst  then  order  the  meal.  For  group  preference,  they  tend  to  seek  the  seat  in  2nd  @loor  in  McDonald’s  Simpang  Dago  than  1st  @loor.  While  they  start  at  a  queue,  they  will  discuss  each  other  among  the  group  to  decide  what  they  want  to  choose  and  they  often  order  the  same  menu  for  one  group.      c.  Things  that  inZluence  people  to  visit  McDonalds  Simpang  Dago    

!   From   40   respondents   that   we   gather   from   our   questionnaire,   we   can   conclude   that                      friend   (28%)   as   the  main   factor   that   inZluence   them   visit  McDonald’s   Simpang  Dago.  Followed  by  the  menu  in  McDonald’s  Simpang  Dago  with  23%  answer  and  20%  of  facility  in  McDonald’s   Simpang   Dago   in@luence   them   before   visit   McDonald’s   Simpang   Dago.   Another  factor  that  in@luence  them  to  visit  McDonald’s  Simpang  Dago  are  internet  (11%),  poster  (8%),  family  (3%),  and  several  factors  under  3  %  (boyfriend/girlfriend,  unpredictable  want,  hunger,  strategic  location).  !

!!!!

Things that influence before visit McDonald’s Simpang Dago

1%1%1%1%1%3%8%

11%

20% 23%

28% Friend MenuFacility InternetPoster FamilyBoyfriend/girlfriend TVCUnpredictable want HungerStrategic Location

d.   Spending   Time   for   Choosing  Menu   in  Mcdonald’s   Simpang  Dago  

                          This  data   indicates     from  40  respondents  who  visit  McDonald’s  Simpang  Dago,  we  can                      assume   that   60%   of   them   spend   1   until   5   minutes   to   choose   menu   in   McDonald’s  Simpang  Dago.  Followed  by    25%  of  respondents  that  spend  less  than  a  minutes  of  their  time  to  choose  menu   in  McDonald’s  Simpang  Dago  and  the  rest   is  more   than  5  minutes   to  spend  their  time  to  choose  menu  in  McDonald’s  Simpang  Dago.  !e.  Order  The  Same  Menu  when  visiting  McDonald’s  Simpang  Dago  

  Based   on   40   respondents,   we   assume   that   68%   of   them   have   order   the        different  menu  when  they  visited  McDonald’s  Simpang  Dago  and  33%  have  order  the  same  menu  when  they  visited  McDonald’s  Simpang  Dago.  

Spending Time on Choosing Menu

10%

65%

25%

< 1 minute 1-5 minutes > 5 minutes

Order the same menu

68%

33%

Yes No

f.  Willingness  to  Try  New  Menu  in  McDonald’s  Simpang  Dago  

  Based   on   40   respondents,   90%   of   them   are   willing   to   try   new   menu   in   McDonald’s                      Simpang  Dago.  Most  of  them  think  that  the  new  menu  in  McDonlad’s  usually  is  delicious  and  they   tend   to   boring   with   the   same   menu   and   want   to   try   a   new   taste   when   they   visiting  McDonald’s  Simpang  Dago.  Otherwise,  10%  of   them  don’t  want   to   try  new  menu  because  of  afraid  of  bad  taste  of  new  menu  and  several  of  them  say  that  they  have  been  fall  in  love  with  the  old  menu  of  McDonald’s.  !g.  Customer  Who  Ever  Have  No  Order  in  McDonald’s  Simpang  Dago  

  From  40   respondents  who   visit  McDonald’s   Simpang  Dago,  we   can   sum   up              that  65%  of  them  always  order  the  menu  when  they  visit  McDonald’s  Simpang  Dago  and  35%  of  them  ever  have  no  order  the  menu  when  they  visit  McDonald’s  Simpang  Dago.  !

Ever Not Order

65%

35%

Yes No

Willingnes to Try New Menu

10%

90%

Yes No

3.4  Segmenting,  Targeting,  Positioning  Strategy  

STP   Strategy   is   a   three-­‐step   approach   to   building   a   targeted  marketing  plan.  The  STP  stands   for  Segmenting,  Targeting,  and  Positioning.  Going  through  this  process  allows  a  business  owner  and  marketing  consultants  or  employees  to  formulate   a   marketing   strategy   that   ties   company,   brand   and   product   bene@its   to   speci@ic  customer  market  segments.  

a.  Segmenting,  Targeting,  Positioning  Process  

    1.  Repeated  Consumers  

Segmentation  BaseDescription  of  Each  Main  Consumer  

Segmentation  Base

GeographicDago  Square  (Simpang  Dago)  in  Bandung  City.

Demographic

-­‐  Male;  Female  

-­‐  15-­‐50  years  old  

-­‐  Student;  WorkerPsychographic Lifestyle;  Activities

Bene@itConvenience;  Quality  of  Products

Define The Market

Create Market Segment

       Evaluate  The  Segment  on  Set  

Criteria

McDonald’s   has   its   own  market   in   fast  food   category.   The   fast   food   is  Hamburger,   but   McDonald’s   also   sells  rice,   chicken   @illet,   @ish,   fries,   beverages  and   local  snacks  depends  on  where  the  location  take  place.

Individual Coupled

Come  to  store  aloneCome  to  store  with  lovers;  or  with  friend  but  just  two  persons

Group FamilyCome  to  store  with  more  than  one  friend

Come  to  store  with  family  (parents  with  their  children)

          2.  New  Consumer  

!!!

First  Visit Outsiders

People  from  Bandung  who  have  their  @irst  visit  to  McDonald’s  Dago

People  from  other  city  who  have  their  visits  for  vacation

Vegetarian Never  Visit

People  who  seek  for  healthy  food  and  do  not  eat  junk  food

People  who  eat  junk  food  but  never  try  to  come  to  McDonald’s

Evaluation  Criteria Repeated  Consumers New  Consumers

Homogeneous

!Seems   to   meet   this   evaluation  test  quite  well,  as  each  segment  appears   to   have   been   grouped  around  similar  needs.  

Does   not   meet   this   @irst   test,  because   each   group   does   not  appear  to  have  similar  needs.

HeterogeneousLooks   good   here   as   well,   with  e a c h   d e @ i n e d   s e g m e n t  appearing   to   be   signi@icantly  different  in  furniture  needs.

!This   test   is   a  major   concern   as  well.   The   ‘outsiders’   segment  could  also  be  allocated  to  any  of  the   other   segments,   so   there  are   insuf@icient   differences  between  the  segments.  

Measurable!Would   probably   meet   this   test  of  being  measurable.  

Would   probably   meet   this   test  of  being  measurable.

Substantial!Most   of   these   segments   would  probably  be  substantial  enough.  

Most   of   these   segments   would  probably  be  substantial  enough.

Accessible

!Would   probably   be   able   to  utilize   different   media   and  distribution   channels   to   access  these  different  segments.  

This   may   be   of   concern,  because  it  would  be  not  clear  to  get   direct   access   vegetarian   as  opposed  to  never  visit.

Responsive

!Given   the   needs   of   each  segment   appear   to   be   distinct,  then  different  styles  of  fast  food  products   (and   supporting  marketing   mix)   could   be  developed  that  would  be  more/less   attractive   to   each   of   the  segments.  

This  would  also  be  a  concern  as  some   of   the   segments   have  been   de@ined   quite   generically,  Outsiders,   so   it   is   unclear  whether  they  would  respond  to  a   dist inct   marketing   mix  offering

!!

!

!!!!

Construct  Segment  Profile

Select  Target  Market

!!!!!!!!!

!!!!!!!!!!

!!!

Developing  Positioning  Strategy

Group  :   To   those   who   look   for   convenience  place   with   best   facility   to   meet   and  @inishing  homework,  McDonald’s  Simpang  Dago   is   the   best   place   for   you   with   its  reachable  location.  

Family:   To   family   who   wants   to   gather   and  spend   your   time   with   quality,   we   are  McDonald’s   Simpang   Dago   will   provide  you   with   delicious   foods   and   complete  facility  all  in  one  package.  

Never   Visit:   To   those   who   never   visit  McDonald’s   Simpang   Dago,   we   offer   you  quality   foods   with   best   cooks   and  ingredients.   Meet   us   at   our   reachable  location   and   have   your   quality   moment  here.

3.5  Integrated  Marketing  Communication  

  McDonald   Simpang   Dago   is   one   of   the   most   popular   fast-­‐food  restaurant  in  Bandung.  So  don’t  be  surprised  if  every  day  McDonald  Simpang  Dago  always  seen  in  full  by  the  consumer  who  comes  to  the  store.  This  achivement  obviously  can  not  be  separated  from  the  role  of  a  marketing  channel  and  marketing  strategy.  That’s  why,  as   long   as   the   globalization,   McDonald   does   two-­‐way   types   of   marketing   communications  rather   than   one-­‐way   types   of  marketing   communication   (marketer     consumer),  which   only  communication  from  marketer  to  consumer.   In  applying  these  concepts,  McDonald  performs  an  integrated  marketing  communication.  

  The   main   difference   between   the   IMC   and   the   traditional,   is   functionally   oriented  activities  (particularly  those  of  mass  media  advertising)  is  that  IMC  must  impact  the  behavior  of   the   target   audience.   It   does   not  mean   that   functional   activities   such   as   advertising,   sales  promotions,  direct  marketing,  and  public  relations  do  not  in@luence  behavior.  In  fact  they  do,  especially  direct  marketing  and  sales  promotion.  The  major  difference  is  that  IMC  is  planned,  developed,  executed,  and  evaluated  with  affecting  one  speci@ic  consumer  behavior  in  mind,  the  process  of  making  purchase  now  or  in  future.  

  Here,  our  job  is  to  analyze  integrated  marketing  communications  of  McDonald  Simpang  Dago.   The   expected   output   from   this   analysis   is   that   generates   a   new  marketing   channel   /  strategy  /  media  to  solve  problems  or  opportunities  owned  by  McDonald  Simpang  Dago,  so  it  can  have  a  positive   impact   for  McDonald  Simpang  Dago  performance  both   in   terms  of   sales  performance,  marketing,  etc..  

  The  @irst  step  we  do  is  determine  who  will  be  our  respondents?  Then  determine  what  channel  marketing  at  McDonald  Simapng  Dago?  In  this  case,  based  on  observations  at  a  glance  that  we  have  done  the  @irst  time,  we  @ind  many  marketing  channels  /  media  used  by  McDonald  Simpang  Dago.  Like  the  website,  sign  boards,  partnerships,  print  ad,  etc.  However,  in  our  study  is   more   focused   on  marketing   inside   the   store   of   McDonald   Simpang   Dago.   That   is   poster,  banner,  display  menus,  @lyers,  direct  offer,  promo  /  discount.  Why?  Because  the  only  marketing  channel   /  media   /   strategy   related   to   the   topic   of   our   discussion,   the   Conversion   Rate   and  Spending  Time  

Target Audience Marketing Channels/ Media/Strategy

People who came to McDonald Simpang Dago

Print Ad (Banner; Flyer; Poster)

Display Menu

Direct Offer

Promo/Discount

Store Design

Store Facility

  Therefore,  for  the  second  step  is,  we  have  distributed  questionnaires  to  the   40   respondents   we   have   chosen   based   on   the   target   of   research.   The  questionnaire   was   made   speci@ically   to   examine   the   integrated   marketing  communication  of  McDonald  Simpang  Dago.  Type  of  questionnaire  that  we  use  that   is   enclosed   questionnaire.   Thus,   the   questionnaire   consists   of   choices   in   the   form   of   a  Likert  Scale  (1  to  5    "Strongly  Disagree"  to  "Strongly  Agree").  

By   the   way,   the   questionnaire   was   divided   into   two   parts;   the   @irst   part,   which   contains  questions   about   the   effectiveness,   consistency,   and   the   conversion   rate   of   marketing  channels  /  media  itself;  the  second  part  contains  the  question  of  how  much  time  is  spent  by  the  consumer  at  McDonald  Simpang  Dago.  

a.  Effectiveness  and  Integration  Analysis  

Next   step   is   the   analysis.   Here   is   the   framework   analysis   that   we   used   to   categorized   the  channel  based  on  the  affectiveness  and  integration.  

Note:  

o   Channel  Integration:  How  often  the  media  is  used  as  a  promotional  media  

o   Message  Effectiveness:  How  far   the  respondents  were  able   to  capture  the  message  to  be  conveyed  by  McDonald  

  In   analyzing   the   data,   we   used   the   method   of   mean   /   average   for   each   variable  capturing   in  general.  From  the  40  respondents   that  we  have  obtained,   then  we  made  a  data  recapitulation.   To   get   the   data   in   accordance  with   the   framework   analysis   above,   that   is   by  summing   each   number   selected   by   the   respondents,   each   question   is   different,   and   then  divides  by  40  (number  of  respondents),  and  we  got  the  average.  For  example:  

•   If  mean  <  3,  then  it  is  categorized  as  "LOW"  

•   If  mean  =  3,  then  it  is  categorized  as  "MODERATE"  

•   If  the  mean  >  3,  then  it  is  categorized  as  “HIGH”  

Channel Integration

Message Effectiveness

Low Moderate High

High

Moderate

Low

!!

!!!!!!!!!!!!!

For  more  details  on  the  scores  of  each  marketing  channel,  ,  can  be  seen  on  the  map:  

(Effectiveness,  Integration)  •  Poster     :  (3.9,  3)    

•  Banner     :  (3.4,  3.5)    

•  Display  Menu   :  (4.4,  4.7)    

•  Flyer       :  (3.2,  2.7)    

•  Direct  Offer     :  (3.7,  3.8)    

•  Promo/Discount   :  (3.6,  3)    

!!!!

Based   on   the   data   recapitulation,   then   we   have   the   conclusion   like   the   table  below:  

  As  we  can  see   in   the   table  above,  based  on   the  question  "How  effective   is   this  media  deliver   the  message?”,  Fortunately  all   respondents  responded  positively   to  all   the  marketing  channels  used  by  McDonald  Simpang  Dago.  It  can  be  seen  that  all  of  them  are  in  the  category  of  “HIGH”  on  the  Message  Effectiveness.  In  fact,  if  traced  back,  there  are  many  factors  (noise)  that  often  make  a  message  delivered  by  a  media   failed  to  be  delivered,   for  example,   that  the  media  is  damaged,  consumer  indifference,  etc.  

  Unfortunately,  it  does  not  apply  inside  the  McDonald  Simpang  Dago  store.  Thus,  it  can  be   concluded   that,   all   this   time,   there   is   no  problem   in   the  process   of   delivering   a  message  from  McDonald  Simpang  Dago  to  its  consumer.  In  other  words,  McDonald  Simpang  Dago  can  take  use  the  channel  effectively.  

  Sadly,   this   positive   situation   does   not   apply   to   the   respondent’s   response   to   the  statement  "This  media  was  conducted  consistently  /  periodically  by  McDonald  Simpang  Dago”.  Banners,  Display  menu,  and  Direct  Offer  enter  into  the  category  of  "HIGH".  While  Poster  and  Promo  /  Discounts   entered   into   the   category   "MODERATE".  And   the  worst   is   Flyer   into   the  category   of   "LOW".   Our   opinion,   the   biggest   factor   for   the   low   scores   are   at   the   consumer  awareness  itself.  Because,  if  seen  again  McDonald  Simpang  Dago  fairly  routine  in  performing  this  marketing  channel  /  strategy,  especially  posters,  @lyers,  promo  /  discount.  

  This  result  can  be  considered  as  a  problem  of  McDonald  Simpang  Dago.  Logically  this  statement   shows   how   the   consumer   aware   towards   the   marketing   communication   of  McDonald   Simpang  Dago.   If   during   the  McDonald   Simpang  Dago’ve  done   a   lot   of  marketing  communication,  the  obvious  costly,  but  the  consumer  is  not  aware  on  what  McDonald  Simpang  Dago  trying  to  convey,  clearly  this  is  a  problem.  Automatically,  the  cost  will  be  wasted,  with  no  positive  effect  at  all.    

  So,   McDonald   Simpang   Dago   had   to   make   a   decision,   whether   it   should   be   focused  more  on  marketing   channels   that   lack  of   awareness.  Or   remove   the  marketing  channel  from  the  marketing  strategy,  and  thus  the  cost  will  be  reduced,  or  can  also  be  transferred  to  other  marketing  channels  which  more  promising.  

!

Channel Integration

Message Effectiveness

Low Moderate High

High - - -

Moderate - - -

Low - - -

b.  Conversion  Rate  Analysis  

  In  addition  to  analyzing  the  effectiveness  of  marketing  channels  /  media  owned   by   McDonald   Simpang   Dago,   as   explained   earlier,   our   distributed  questionnaires   are   also   useful   to   obtain   data   about   the   effect   of   media   communication  towards  the  consumer  behavior  in  buying,   in  this  case  that   is  Conversion  Rate.  Based  on  the  opinion  of  the  respondent  towards  the  statement  "This  media  may  help  me  choose  the  menu  faster",  and  here  is  the  graph  of  the  data  recapitulation:    

  Based  on  our  question  on  the  questionnaire,  from  the  40  respondents,  "Display  Menu"  has   the  highest  average   in   in@luencing  compare   to  another.  Followed  by   "Promo  /  Discount"  and  "Direct  Offer"  with  a  score  3:55  and  3525.  The  forth  place  @illed  by  "Banner",  with  score  3.4.  While  "Poster"  has  average  is  3,325.  And  the  last  but  no  least,  the  "Flyer"  has  the  smallest  average  score  in  compare  to  other,  that  is  only  3.  From  the  data  above,  we  can  categorize  the  "Flyer"  as  MODERATE  (mean  =  3),  while  the  other  is  categorized  as  HIGH  (mean  >  3).  

  Thus,   it   can   be   concluded   that   each   channel   of   McDonald   Simpang   Dago   already  participate   effectively   and   actively   in   in@luencing   consumer   behavior   in   Conversion   Rate.  There  is  no  a  big  problem  in  this  category,  only  the  pro@iciency  level  scores  may  be  improved  by  McDonald  Simpang  Dago  by  more  focusing  in  doing  the  integration  of  marketing  channels.  

c.  Spending  Time  Analysis  

  As  mentioned   earlier,   that  we   divide   our   questionnaire   into   two   parts.  The  @irst  part  is  about  Effectiveness,  Integration,  and  Conversion  Rate.  This  time  we  will  discuss  the  second  part  of  the  questionnaire,  namely,  Spending  Time.  

  Why?  Why   are  we   separating   Spending  Time  with   the  others?  Because  the  variables  or  factors  that  will  be  discussed  are  also  different.  That's  why,  we  separate  it  into  two  parts  to  make  it  easier  for  us  to  analyzes.  

  The   variables   or   factors   that  we  use   to   analyze   Spending  Time   ie   "Store  Design"   and  "Store  Facility".  We  asked  respondents  about   their  opinion  regarding   the  effect  of  both   these  factors  against  spending  their  time  at  McDonald  Simpang  Dago.  

  Remind  you  again  that  in  this  questionnaire  we  use  Likert  scale,  1  to  5.  Where  number  1  means  "Strongly  Disagree",  number  2   is  "Disagree",  number  3   is  "Normal",   the  number  4   is  "Agree",  and  the  last,  number  5  means  "Strongly  Agree".    

  First  statement:   “The  Store  Design   in@luences  me  to  stay  here  more”  and  here  we  got  the   data.   Based   on   the   questionnaire   results,   33%   (13   out   of   40)   of   respondents   choose   “4”  option.  This  rank  was  followed  by  “3”  and  “5”  option,  which  has  the  same  score,  which  is  20%  (8  out  of  40).  And  then  15%  (6  out  of  40)  choose  “1”  option.  The  last,  there  is  only  12%  (5  out  of   40)   of   respondent  who   choose   “2”   option.   For  more  details,   let’s   take   a   look   at   the   graph  below:  

!!!!!!!!!   Based  on  the  data  above,  we  can  conclude  that  most  of  people  who  came  to  McDonald  Simpang  Dago   agree   that  McDonald   Simpang  Dago’s   store  design  has   a   fun   and   exciting,   so  that  makes   them   comfortable   to   stay   there   for   long.   McDonald   Simpang   Dago   does   have   a  store  design  and   layout   that  makes  us   comfortable   to   stay   there,   from   the  placement  of   the  seat,  as  well  as  the  separation  between  the  outdoor  and  indoor  space,  etc.  

  Next,  second  statement:  “The  Store  Facility  in@luences  me  to  stay  here  more”.  Based  on  the   questionnaire   results,   40%   (16   out   of   40)   of   our   respondents   choose   “4”  option.  Then  33%  (13  out  of  40)  choose  “5”  option.  This  rank  was  followed  by  “2”  option,  which  has  20%  (6  out  of  40)  from  our  respondents.  And  then  12%  (5  out  of  40)  choose  “3”  option.  Fortunately,  there  is  no  from  our  respondents  who  choose  the  “1”  option,  0%  (0  out  of  40).  

!!!!!!!!    

!   Based  on  the  data  above,  we  can  conclude  that  most  of  people  who  came  to  McDonald  Simpang   Dago   agree   that   the   store   facility   of   McDonald   Simpang   Dago   able   to   make   them  spend   a   lot   of   time   there.   Some   of   these   facilities   are   24   hours,  Wi-­‐Fi,   smoking   room,   pray  room,  etc.  These  facilities  clearly  an  important  factor  to  make  a  lot  of  people  spend  time  in  the  store.  And  McDonald  Simpang  Dago  did  it.  

!e.  Recommendation  

PROBLEM  and  OPPORTUNITIES  

  So,  based  on  the  research  that  has  been  done,  we  got  the  problems  and  opportunities  that  are  owned  by  McDonald  Simpang  Dago.  Problem  is  located  at  the  integration  itself.  Why?  Because,  some  of  the  marketing  communications  failed  recognizable  by  the  public.  In  addition  to  these  problems,  McDonald  Simpang  Dago  also  has  quite  a  lot  of  opportunities.  Among  them  are  the  capabilities  of  marketing  channel  to  deliver  the  message  effectively  and  the  ability  of  marketing  channel  /  strategy  in  in@luencing  consumer  decision  making.  

NEW  MARKETING  STRATEGY:    

Coup  D’état     The  word  Coup  D'etat  derived  from  French  meaning  a  sudden  attempt  by  a  small  group  of  people  to  take  over  the  government  usually  by  force.  

  Coup   D'etat   event   is   an   hour   in   which   a   group   or   community   can   use   a  McDonald  Simpang  Dago  as   a  place  where   they   can  gathered.   So   it   is   clear   the  target  of  this  event  is  a  community  /  group.  Here,  they  take  over  the  room.  Why  a  community?  Because,  these  community  has  a  name  as  well  as  the  in@luence  of  the  

other.   "More   people   believe   in   the   opinions   of   others   as   compared   with  advertising".   Coup  D'etat  will   take   place   in   time   as   desired   by   the   community,  but   is   limited   to   2   hours.   The   amount   of   time   depends   on   the   number   of  community  members  /  groups  that  came  at  that  time.  How  to  participate  in  this  event,  that  is  by  registering  community  /  group  they  are  a  few  weeks  before.  Then  McDonald  Simpang  Dago  will  choose  based  on  the  terms  and  conditions  that  apply.  

!Get  the  Mc  Now     This  promotional  was  offered  to  a  customer  in  terms  of  a  time-­‐speci@ic,  free  item  with  purchase   or   BOGO   (buy   one,   get   one).   Here,   McDonald   Simpang   Dago   can   gives   a   greater  discount  for  the  customer  returning  during  off-­‐peak  hours  (20%  off  Lunch  or  10%  off  Dinner)  through  a  coupon,  one  coupon  one  person.  This  strategy  was  encouraging  them  to  revisit  soon  to  the  restaurant.  

!!!!!!!!!!!!!

!!!

Chapter  4  

Conclusion    

!4.1  Conclusion  

  We   know   that   the  majority   from   this   observation   that   College   students   is   the  major  visitor  of  McDonalds  Simpang  which   the  most  of   their  activity   in  McDonald’s  Simpang  Dago  besides  eating  and  drink  are  doing  the  task  because  of  of  the  location  of  McDonald’s  Simpang  Dago   near   from   their   campus   and   house.   Moreover,   the   conversion   Rate   of   visitor’s   of  McDonald’s   Simpang   Dago   on  weekends   higher   than  weekdays   for   a   little   difference   about  1.08%.   Otherwise,   on  weekdays,   the   spending   time   of   the   visitor’s   that  majority   of   college  students  is  longer  than  on  weekend,  it  indicates  that  in  productive  day  they  spend  long  time  to  doing  task  in  McDonald’s  Simpang  Dago  with  their  friends.    

  Some   of   the   marketing   communications   of   McDonald’s   Simpang   Dago   are   failed  recognizable  by  the  public.  So,  we  recommend  the  new  program  for  marketing  Strategy  that  should  implemented  by  McDonald’s  Simpang  Dago  are  Coup  D’tat  and  Get  The  Mc  Now.  

!!!!!!!!!!!!

!!

Reference  

Az  central.com.  What  is  STP  Marketing.  Retrievend  in  December  12nd  2013  from  http://yourbusiness.azcentral.com/stp-­‐marketing-­‐1769.html  

Market  Segmentation  Study  Guide.  The  Full  STP    Process.  Retrieved  in  December  1  2nd  2013  from  http://www.segmentationstudyguide.com/stp-­‐process/full-­‐stp-­‐process/  

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Appendix  

Ques7onnaire  of  Shopper  Behaviour  in  McDonald’s  Simpang  Dago  

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Ques7onnaire  of  Integrated  Marke7ng  Communica7on  

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