MKT10009

Marketing and the Consumer Experience

Semester 2, 2024.

Assignment 2

Date of Submission: _30_/_06_/_2024_____

Name: __Phạm Trần Phú Thành__________________
Word count: 1884 words, not include table of content and references.
Table of Contents:
1. Summary of the Brand
2. Application of the Three Levels Theory
3. Macro and Micro Environmental Factors
- Micro Environmental Factors
- Macro Environmental Factor
4. Personal of the Ideal Target Consumer Segment
5. Triggering Need Recognition
6. References
 1. Summary of the Brand
Background Information
McDonald's is a big fast-food company. They opened their first restaurant in Yagoona, Sydney,
Australia in 1971. Since then, McDonald's has grown a lot in Australia. They now have over 1,000
restaurants across the country. McDonald's has become an important part of Australian culture. They are
known for popular items like the Big Mac, McChicken, and McFlurry.

McDonald's has a large market share in Australia. They control about 30% of the fast-food
market, making them a leader in the industry. McDonald's has also seen good financial results in recent
years. Their same-store sales and total revenue have increased.

Brand Offerings
McDonald's Australia offers a wide range of products and services under various sub-brands and
product lines:
- Sub-brands: McCafe, Create Your Taste
- Product Lines: Burgers, Chicken, Breakfast, Happy Meal, Beverages, Desserts
- Variants: Big Mac, Quarter Pounder, McChicken, Filet-O-Fish, McFlurry
The brand positions itself as a family-friendly, value-for-money fast-food option that focuses on
quality, convenience, and customer satisfaction.

Marketing Mix (4Ps)

Product
Core/Essence: The main benefit that McDonald's provides is convenience. They also offer a satisfying
meal experience for both individuals and families.
Actual: McDonald's has many different menu items. The food quality is high and the taste is consistent at
all their locations.
Augmented: Additional services and benefits such as PlayPlaces for children, McCafe for coffee
enthusiasts, mobile app for easy ordering, and loyalty programs enhance the customer experience.
Price
McDonald's sets its prices based on providing value to customers. Their prices are competitive and appeal
to a wide range of people. The company often runs special offers and discounts. This helps attract
customers who are very concerned about prices. It also helps keep their regular customers loyal.
Place
McDonald's has a lot of restaurants in Australia. They are located in cities and suburbs. Customers can
also use the drive-thru or get McDonald's delivered. This wide distribution network makes McDonald's
easily accessible and convenient for customers.
Promotion
McDonald's Australia uses different ways to promote their business. This includes advertising on TV,
radio, and online. They also do sales promotions and public relations. And they have digital marketing
campaigns. A big part of their promotion is using social media. This helps them connect with customers
and tell them about new menu items and deals.
 2. Application of the Three Levels Theory
Core/Essence
The main goal of McDonald's is to give customers a convenient, fast, and pleasant dining experience.
They work to provide food that is consistently high quality and tastes good, whether you're dining alone
or with your family.
Actual
The actual things you get from McDonald's include the different menu items, the quality of the food, the
atmosphere in the restaurants, and the standards of customer service. McDonald's makes sure that they
use high-quality ingredients and follow strict cleanliness rules when preparing their food.
Augmented
McDonald's also provides additional services beyond just the food. This includes PlayPlaces for kids, the
McCafe coffee shops, a mobile app for easy ordering, and loyalty programs like MyMacca's Rewards.
These extra features help make the overall experience at McDonald's more valuable and satisfying for
customers.

3. Macro and Micro Environmental Factors

Micro Environmental Factors
Supplier: OSI Group
One of the key suppliers for McDonald's Australia is OSI Group, which provides high-quality beef patties
for McDonald's signature burgers. This supplier ensures that the beef meets stringent quality and safety
standards.

Role: OSI Group provides a consistent supply of high-quality beef. This is crucial for keeping the taste
and quality of McDonald's food products.
Risk: If there were problems with this partnership, it could disrupt the supply chain and affect the quality
of the products.
Opportunity: Strengthening the partnership with OSI Group could lead to developing more sustainable
farming practices. This could improve the reputations of both companies.
Intermediary: Martin Brower
Another key supplier is Martin Brower. They play an important role in getting McDonald's products
distributed to all the different locations. This ensures timely and efficient delivery.
Role: Martin Brower makes sure McDonald's products are available at all their restaurants. This supports
McDonald's promise of convenience and accessibility for customers.
Risk: Any disruption in the relationship with Martin Brower could impact the supply chain and
potentially cause other problems.

Macro environment factors

Economic Environment

The economic conditions in Australia have a big impact on how McDonald's operates. Things like
inflation rates, unemployment levels, and how much money people have to spend affect how customers
make purchasing decisions.
Role: The economic environment affects McDonald's pricing strategy, cost management, and
overall profitability.
Trends:
- Inflation: If inflation goes up, it can increase the cost of the raw materials and
transportation that McDonald’s needs. This can force them to raise their prices.
- Unemployment: High unemployment means people have less extra money to spend. This
can lead to them buying less fast food from places like McDonald’s.
- Consumer Spending: Changes in how much money people have to spend can directly
impact how often they go to McDonald’s and how much they buy.

Social and Cultural Environment

The social and cultural environment in Australia shapes what customers want and how they feel
about food. Trends like health consciousness, environmental concerns, and ethical sourcing
influence what McDonald's puts on their menu and how they market themselves.
- Role: Social and cultural factors determine consumer trends and drive new product
development at McDonald’s.
- Trends:
o Health Consciousness: As people have become more concerned about health and
nutrition, McDonald’s has added healthier options like salads and fruit-based
items to their menu.
o Sustainability: Growing worries about the environment have led McDonald’s to
adopt more eco-friendly practices, such as reducing plastic use and sourcing
sustainable ingredients.
o Ethical Sourcing: Customers are more interested in the ethical sourcing of food
products. This has prompted McDonald’s to ensure their supply chain meets
ethical standards.

Technological Environment

Technological advances affect how McDonald's runs their business and interacts with customers.
Innovations in things like mobile technology, food delivery services, and kitchen equipment play
a big role in improving the customer experience and making McDonald's operations more
efficient.
- Role: Technological advancements in kitchen equipment improve food preparation
efficiency and consistency, reducing wait times and enhancing customer satisfaction.
- Trends:
o Mobile Technology: Technological advancements in kitchen equipment improve
food preparation efficiency and consistency, reducing wait times and enhancing
customer satisfaction.
o Delivery Services: Technological advancements in kitchen equipment improve
food preparation efficiency and consistency, reducing wait times and enhancing
customer satisfaction.
o Kitchen Automation: Technological advancements in kitchen equipment improve
food preparation efficiency and consistency, reducing wait times and enhancing
customer satisfaction.
Political and Legal Environment

The political and legal environment in Australia affects how McDonald's operates through
regulations and policies related to food safety, labor laws, and environmental standards.
- Role: Complying with political and legal regulations ensures McDonald's can operate
smoothly and avoid legal problems.
- Trends:
o Food Safety Regulations: Strict food safety standards mean McDonald's must
follow very careful hygiene and quality control practices.
o Labor Laws: Employment regulations impact how McDonald's manages their
workforce, including things like wages, work hours, and working conditions.
o Environmental Policies: Government policies on waste management and
emissions influence the sustainability initiatives McDonald's takes on, such as
recycling programs and energy-efficient practices.

Environmental Factors

Environmental factors, like climate change and the availability of natural resources, affect
McDonald's supply chain and how sustainable their operations are.
- Role: environmental concerns, drive McDonald’s sustainability initiative and risk
management strategies
- Trends:
o Climate Change: Disruptions caused by climate change can impact the availability
and cost of the raw materials McDonald’s needs. This has led them to develop
supply chain strategies that are more resilient.
4. Persona of Target Consumer Segment
Persona Development:
Demographics
- Age: 18-35 years old
- Gender: Male and Female
- Income Level: Middle to upper-middle class
- Occupation: Students, young professionals, and families
Psychographics
- Lifestyle: Busy, seeking convenience, enjoys fast food, social media savvy
- Values: Value for money, quality, and convenience
- Interests: Socializing, dining out, trying new foods, and participating in loyalty programs
Behavioral Traits
- Frequency of Visits: Regularly dines out or orders takeout
- Product Preferences: Prefers quick-service restaurants, enjoys a variety of menu options
- Brand Loyalty: Participates in McDonald's loyalty programs, follows McDonald's on social
media
Example Persona: Emily
- Age: 28
- Occupation: Marketing professional
- Lifestyle: Lives in a busy city, often eats out due to a hectic work schedule
- Values: Convenience, quality, and affordability
- Interests: Enjoys socializing with friends, trying new foods, and staying updated on the latest
trends through social media
- Behavior: Frequently uses food delivery apps, values quick and easy meal options, follows
McDonald's on Instagram for updates on new products and promotions

5. Triggering Need Recognition

Understanding Need Recognition
Need recognition is the first step in the consumer decision-making process. This is when a person
realizes they have a desire that is not being met. For McDonald's in Australia, they try to make consumers
aware of their need for convenient, tasty, and satisfying food options.

Strategies to Trigger Need Recognition

Advertising and Promotions

McDonald's uses different advertising strategies to remind people about their products and services.
This includes TV commercials, online ads, and social media campaigns that highlight new menu items,
special deals, and seasonal promotions.

- Example: A TV, ad showcasing a limited time offer on the Big Mac meal can prompt viewers to
consider visiting McDonald’s to take advantage of the deal.

Product Innovations

Introducing new products or limited time offers can create a sense of urgency and novelty, triggering
the need for consumers to try something new.

- Example: Launching a new burger variant or a special dessert for a limited period can attract both
existing and new customers eager to try the latest offerings.

Convenience and Accessibility

Emphasizing the convenience of McDonald's locations, drive-thru services, and delivery options can
address consumers' needs for quick and easy meals.

- Example: Promoting the ease of ordering through the McDonald’s mobile app or highlighting the
availability of 24/7 drive-thru services can appeal to busy individuals seeking convenient meal
solutions.
Social Proof and Influencer Marketing

Leveraging social proof, such as customer testimonials, reviews, and influencer endorsements, can
trigger need recognition by showcasing how others enjoy McDonald's products.
- Example: Collaborating with popular Australian influencers to share their positive experiences
with McDonald's can influence their followers to consider visiting McDonald's.

Emotional Appeals

Creating emotional connections through marketing campaigns can resonate with consumers' feelings
and memories associated with McDonald's.

- Example: A campaign that evokes nostalgia by reminiscing about childhood visits to McDonald's
can trigger emotional responses, prompting consumers to revisit for the sake of reliving those
memories.

Seasonal and Event-Based Campaigns

Aligning marketing efforts with seasonal events and holidays can trigger need recognition by
associating McDonald's with specific occasions.

- Example: Launching a special menu for Christmas or promoting festive-themed Happy Meals can
attract families looking to celebrate the season with McDonald's.

6. Conclusion:
Despite facing competition and changing customer demands, McDonald's in Australia continues to be
successful. They do this by adapting their menu, using digital innovations to improve the customer
experience, and addressing sustainability issues.
McDonald's is able to maintain its position as a leader in Australia's fast food industry by taking
advantage of its strong brand reputation and strategic initiatives.
7. References:
- Australian Bureau of Statistics. (2023). Demographic trends in Australia. https://www.abs.gov.au/
- McDonald's Australia. (2023). About Us. https://mcdonalds.com.au/about-maccas/maccas-story
- Retail Food Group. (2022). Fast Food in Australia: Market Research Report. IBISWorld.
https://www.ibisworld.com/au/industry/fast-food-takeaway-services/2005/
- Morgan, R. (2022, May 27). Major Australia Food Trends in 2022.
Chefcollective.com.au. https://chefcollective.com.au/blog/major-australia-food-eating-
trends/
- ngham's. (2024). Partnership with McDonalds. Ronald McDonald House Charities of the
Triangle. https://rmhctriangle.org/partnership-with-mcdonalds/
- O’Connor, T. (2017, January 12). McDonald’s. Transportation and Logistics
International. https://tlimagazine.com/news/mcdonalds/
- OSI GROUP. (2024). Products. OSI. https://www.osieurope.com/en/products/