In order to develop a marketing strategy, it is very important for company to understand its target customers. If the company can understand its customer then only it can communicate itself to their consumer Market. Better you know about your consumers, more effectively you could communicate and market them. McDonalds has segmented their products according to bases of Demographic, Psychographic and Behavioral. They have segmented their products and positioned their products according to kids, students and family. But they haven’t segmented their products according to the Adult target group. Also they haven’t started segment related to breakfast in every outlet.
Market segmentation is defined as dividing a single market into smaller segments. The basic reason for dividing the market into small segments is to make it simple to address the needs of smaller groups of customers and try to manufacture different products according to their consuming habits. Particularly it is done according to the people who have similar characteristics. It can be done on the basis of age, gender, lifestyle, region, etc. McDonalds in India segmentation it has done is on three different bases:
1) Demographic Segmentation: Kids, Family and Students
McDonalds offers different products like Happy Meal which includes a free toy for kids. For families it has made different outlets and meals which are suitable for takeaways and drive-thru. McDonalds has made its environment which is suitable for students of school to hang out with their friends and can get their lunch at McDonalds.
2) Psychographic segmentation: Convenience and lifestyle
McDonalds has adopted itself according to the convenience and lifestyle of the Indian consumers, as India has a huge vegetarian population so McDonalds came up with a different and new product line which includes items like Mc Veggie burger and Mc Aloo tikki Burger. They also made McDonalds as a place to relax and even for entertainment.
3) Behavioral segmentation: Occasions, for e.g. Birthday Parties of kids
McDonalds can get more customers by whom they can get most of the share of India Fast Food Industry but they should emphasis on their Targeting technique. To Get a Sustainable Advantage over their competitors McDonalds should introduce new as well as modified products which contains low cholesterol content in it. McDonalds has so much upcoming competition in Indian market that it should concentrate on Differentiation of its products increase its market size by implementing penetration pricing technique in which they should introduce the product with a lower price even lower than the market substitute’s price. By this they can they can associate with their marketing objectives and can increase their sales and total revenue even in future.
They should apply new positioning technique to create a new image in the minds of consumer about McDonald a place with healthy variants. McDonalds should observe present approach which they are following and subsequent the current advertising with healthy messages. This can be done by adding a more organized and expertise team which can work on healthy mindful advertisement. There advertising should contain all the benefits and healthy qualities about the products McDonalds is offering. Positioning is a process of creating an image in the mind of consumers by which consumers can understand the uniqueness about your product when compared to competitor’s product. In India positioning of McDonalds has been directed as a Family restaurant.
Then they started positioning according to the kids as well by introducing new advertising of toys with their products such as “Happy Meal”. In the start they made certain special efforts to not allow it to convert into a teenage and adults (20 to 24 years of age) hangout place. Now youngster and adults has became so use to fast foods that McDonalds should also target them and try to position McDonalds as a place for all. They should target adults also because they can pay for quality and variety of products. This will help McDonalds to be most recognizable brand in India for people of all ages. Or we can say that they should follow concept of undifferentiated marketing in which they should offer same marketing mix to mass audiences. This is due to the fact that in India has second largest population in the world and if they adopt this approach and try to do positioning according to this approach then they will be benefitted and their sales and revenue will surely increase.
Courtney from Study Moose
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