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BPMM1013 Principles of Marketing Oz Assignments
How segmentation is done
The segmentation is based on various variables such as demographics, geographic, psychographic, and behavioural (Yan, 2013). There are various sub variables also based on which segmentation is done. After a heavy market research this segmentation is done. While doing segmentation it is to be ensured that no potential segments in the market is left untouched (Bhasin, 2018). Types of segmentation is on the basis Region, Density, Age, Gender, Life cycle stage, Income, Occupation, Degree of loyalty, Benefits Sought, Personality, User status, Social media marketing class and Lifestyle. In all these criteria there are various types of segments that company aims to target so as to ensure the success of their business. Continuous evaluation of these segments has been done by the company.
Evaluation of the market segment
Evaluation of market segment is essential as it ensures that firm do not waste resources on the people that will not buy the products of the company (Kincheloe, 2011). Evaluation of market segment has to done on the basis of the qualities of the products and the abilities of the company to sell it to customers that are actually looking for those qualities. Some of the variables are:
Market potential: This is done by checking which types of people are actually looking for the qualities in the product (Talpau & Boscor, 2011). It also calculates how many people have the capacity to pay the price of the product. Since the hamburgers are available at the lower prices hence all the segments in the society are able to afford the product.
Sales Potential: Our Company expects that on an average one person will buy hamburger once or twice a week. The higher class people are expected to purchase this hamburger thrice a week.
Competition: Total sales of the existing suppliers are going to remain on the lower side hence it is expected that McDonalds will take business away from the competitors. But in some markets sales of competitors are closer to market potential hence it may result in fewer sales. This might call for heavy promotions to be done (Lee & Lambert, 2017).
Target market segment
Company targets people in almost all the regions of the world hence company can use undifferentiated marketing for all of them. Since it is targeting all the people having different kind of behaviour hence the company will also take use of differentiated marketing so as to attract people of different kinds of behaviour (Andreasson & Johansson, 2016). Since the company has large age group to target, company aims to build concentrated marketing for people of different age group. On the other hand for attracting people having lower income, it can use concentrated marketing. Since loyalty terms are same for all the people hence company can take use of undifferentiated marketing for these people. In term of life cycle stage and occupation it can do differentiated marketing.
Possible Value Differences and positioning strategy
Hamburger is a product that provides different kind of taste to its customers. McDonalds provides a unique taste of spices and freshness so as to achieve competitive advantage over their rivals. In the hamburger they want to highlight the size and ingredients that they use in their hamburger. For achieving greater customer value, prices are lowest in the market and are affordable by all the customers in the segment.
The positioning strategy of the McDonalds basically focuses on product characteristics or customer benefits (Paul & Roy, 2014). Since hamburger is a products that is having the capability to lure the taste buds of many customers demanding for different taste. On the other hand its strategy also seeks the benefits of the customers. Hamburger is something that can be taken by the customers as a meal and it is available at lower cost hence they can position the product for their customers who want cost and time benefits.
In marketing positioning statement is highly beneficial for the company. The positioning statement for this product can be “A taste that calls you every day”, “An ever ready meal at your capital budget”, “Enjoy the meal anytime anywhere”.
All these three positioning statements are capable of attracting large numbers of customers and are according to the segmentation done by the company.
1. Andreasson, J., & Johansson, T. (2016). ‘Doing for group exercise what McDonald's did for hamburgers’: Les Mills, and the fitness professional as global traveller. Sport, Education and society, 21(2), 148-165.
2. Bhasin, H. (2018) Positioning strategy. Retrieved from:https://www.marketing91.com/positioning-strategies/.
3.Kincheloe, J. L. (2011). Mcdonald’s, Power, and Children. In Key works in critical pedagogy (pp. 155-170). SensePublishers.
4. Lee, A., & Lambert, C. (2017). Corporate social responsibility in McDonald’s Australia. Asian Case Research Journal, 21(02), 393-430.
5. Paul, R., & Roy, S. K. (2014). Case study 11: Marketing of services: The McDonald’s way. In Marketing cases from emerging markets (pp. 99-112). Springer, Berlin, Heidelberg.
6. Talpau, A., & Boscor, D. (2011). Customer-oriented marketing-A strategy that guarantees success: Starbucks and McDonald's. Bulletin of the Transilvania University of Brasov. Economic Sciences. Series V, 4(1), 51.
7. Yan, Y. (2013). Of hamburger and social space: Consuming McDonald’s in Beijing. Food and culture: A reader, 449-471.