Discuss McDonald’s Case

READ THE CASE AND WATCH THE VIDEO TO RESPOND TO THE QUESTIONS:

Video  https://online.fiu.edu/videos/?vpvid=f49b9004451e4d89ba5236dec9e16fda

ANSWER THESE THREE QUESTIONS:

Question 1: According to the second video, segmenting markets is central to McDonald’s marketing strategy and advertising efforts. Based on this video case, what are the advantages of McDonald’s marketing approach? What do you think about this approach?

Question 2: If you were a segment manager at McDonald’s, how would you target coffee products in Latin America? Describe which population segment you would focus on and why.

Question 3: Describe the strategy that McDonald’s used to obtain/assure their supply of (quality specifications and quantity) raw materials in India to produce their menu offerings.

ANSWER THESE TWO RESPONSES: 

Response 1: Due to the lack of agricultural, communications, and transportation technologies India holds versus that of the US, McDonald’s was able to fix this problem by working closely with local producers to get their supplies. Because of this, McDonald’s was able to build relationships with local farmers and suppliers. Through working hand and hand with their suppliers, McDonald’s was able to introduce their standards and technology to the locals. McDonald’s works to increase its suppliers’ quality of work by improving their irrigation technology. This was they were even able to improve their national support and avoid problems from importing products.

Response 2: McDonald’s marketing approach is very different from other companies. As was stated in the video, the company usually has a manager for each product the company sells, but McDonald’s has segment managers for target marketing. Although all companies use target marketing, McDonald’s uses it at another level. They are able to market to every segment, not just one or two. They use various ads to market the same product but advertise them in a different way for each consumer. This comes to an advantage to McDonald’s because they can profit well by attracting all consumers not just one. I think this approach is a smart one that McDonald’s took to try and reach every consumer in the market.