Economic Environment

Discuss About The Social Media Market Principles Strategies?

Economic Environment: Economic changes around the world which gives direct impact to influence the M.C. Donald’s environment by considering its global nature. Donald’s has a great opportunity to grow in the market. The economic recession was incredibly disruptive for the firms in various industries. It reduces the revenues and profits across the boards and also minimizes the demand of consumers for products and services. In the Australian market the main issue that arises is concerned with the general taxation issues. The company also faces many monetary issues that impact the working of the company. So to minimize this also the company can take corrective measures so that the growth can be attained in effective manner.

Socio- Cultural environment: Fast food has minimized the image in the mind of consumers as the society is more concerned about the health now a day. People are attracted towards a product in which the product is concerned with the health. The company should give main focus on maximizing the product which gives benefit to the health. In response to this it is seen that in Australia people are more concerned about their health. So M.C. Donald’s should offer healthier menu options to the consumers. They should also launch various marketing campaigns which give highlight to the new range of healthy products. It gives positive impact on the operations of the business and also helps to maximize the sales (Sachdeva, 2015).

Technological environment: The internet has taken into consideration various opportunities for low cost and which give a high impact on range and firms. The opportunities concerned with marketing and by using the internet are many. It is seen that the fast food industry was slow to catch the benefits of internet marketing in the beginning. The company should also use the updated technology, so that the customer can feel comfortable to purchase the product (Galician, 2013).

Competitive environment: In Australian market there is a high competition in the market. The fast food products are available to the consumer in low price also, so the company should offer attractive discounts to the consumer so that they get induced to buy a product.

Political environment: The fast food industry is targeted by the government and it aim to enhances the health and minimize the obesity particularly in the Australian market. The fast food industry is more regulating with less intervention of the government as it is seen that many reports are published between the fast food industry and childhood obesity. The company should take into consideration proper policies and procedures which enhances the profit of the organization. The company should keep the profit margin more than those countries where the restrictions have been imposed.

Sociocultural Environment

Legal environment and regulatory environment: The legal environment in which the company operates is highly dependent on the Australian market. M.C. Donald’s should operate all the functions under health and safety legal framework. The company should also take into consideration all the controls that are essential by the health agency (Percy, 2014). 

SWOT analysis refers to analyze the strength, weakness, opportunity and threats that are prevailing in the market.

Strength: Company has much strength that is prevailing in the market. It helps the company to attain the goals and objectives in effective manner. The main advantage to the company is that it is considered as a recognized brand worldwide. The menu helps to promote the services and products of the company. The company was the first who give customers the food nurture. The company also provides the training for its managers in effective manner. The company is present globally while having the great impact on its competitors. Mc. Donald’s is considered as a leader of the market in both domestic and international market. The company has a capability of generating more revenues and sales due to its brand recognition (Brentari, Dancelli & Manisera, 2016).

Weakness is in all the companies that are prevailing in the market. The weaker side of the company is that it has an unhealthy food image an also the quality of the food is incompatible. The revenue of the employees is huge. The other drawback is that more advertising is given on children. The company should take into consideration product innovation. The company has a very slow process of product innovation. Market saturation has also caused a major difficulty for the company to expand its operations in the market. The company should take corrective steps soon, so that the goals and objectives can easily be attained (Wang,Silva & Moutinho, 2016).

There are various opportunities that are prevailing in the market. The company can make its outlet chains better and more attractive for the customers who are new. It can be done by offering value added services like internet access. There are many ways of product innovation that are available for the company. The company should utilize that opportunities so that the profits can be easily attained. Product innovation helps the organization to enhance its operations in the market and in Australian market the company should take into consideration the strategy of product innovation. Mc. Donald’s should always adopt the strategy of new product line for expansion. To attract more and more customers towards the company the company should use low cost menus so that customer gets induced to buy a product (Chari, Katsikeas, Balabanis & Robson, 2014).

Technological Environment

Threats are there in every organization. There is no business who survives without threats. The main threat to the company is that the economy situation is weak with the negative impact from the recession by its diversification. The main problems that are arising are the fluctuation in the currency. There are many health problems also that are arising which are concern with the quality of food and healthier menu items. The market share is diminishing with the huge promotion of investments. The big threat to the company is from the fluctuations that are prevailing in the market. The company should give main focus on the fluctuation pattern so that the threats or the risks that are arising can be minimized (Kirzner, 2015). 

MC Donald’s has taken into consideration the strategy which takes the age as a major structure for segmentation. The main target segments of the company are children, youth and the young urban family members. McDonalds in Australia should be segment into three different bases (Paul & Roy, 2014).

Demographic Segmentation: In this the segmentation criteria the kids, family and students are involved. The company should offers goods like happy meal which consist a free toy for kids. For families the various outlets and meals which are best for take away should be considered. The company has made its atmosphere which is best for students of school to chill with their friends and can go for a dine at McDonalds (Kotler & Armstrong, 2013).

Psychographic Segmentation:  It is concerned with convenience and lifestyle. The company should adopt the lifestyle and convenience of the Australian consumers, as Australia has a large number of non-vegetarian population, so the company should come up with something new and innovative which consist items like chicken fried burger. The consumer should consider the place to relax and also for entertainment then only the company can enhance its growth in effective manner (Galician, 2013). 

Behavioral Segmentation: It is concerned with Occasions like birthday party for the kids. The company can get  easily attract more customers by whom they can easily get the large share of Australian fast food industry, but the main emphasis should be given on targeting techniques. The company should take into consideration the mindset and the taste of consumers in the market.

To get the benefits over the competitors the company should introduce new and innovative products which can be based on low cholesterol. In Australia the company faces so much of competition that is should give emphasis on variation of its products enhancement in market size by executing the penetration strategy of pricing in which the products can be introduced in the lower price (Salar & Salar, 2014).  By this the objectives can be attained and there can be increase in the deals and total revenue even in the future. The company should target the children and teenagers more. By positioning also the company can easily attain the target in effective manner. By this there can be enhancement in the marketing objectives and in the sales and total revenue. The company should implement arranging techniques to create a new image in the consumers mind about the company. McDonald’s should take into consideration the current approach which they are following and also the latest advertising with is concerned with the good messages (Samnani, 2014).  The advertising of the company should give focus on the qualities about the products the company is giving to its consumers. Positioning is a method by which the company can create an image in the consumer’s attention by which the consumers can easily analyze the exclusivity about the product when the comparison is made with the competitors. In Australia positioning of the company has been focused as a restaurant for families. Now the company should target the kids by presenting new advertising toys with the products such as “Happy Meal”. The adults should be given target because they can pay for the quality and various goods that are offered by the company (Grün & Dolnicar, 2016).

Competitive Environment

Mission statement: To be our customers favorite place and a way to eat with the good people who are delighted with every client with the unmatched quality, service, quality and value every time. The company wants to be the best food industry in the Australian market. The team give you an opportunity to be a part of our team and give yourself and chance to grow with the family that can create smiles on the faces of millions people (Puzakova, Kwak & Bell, 2015).  The company believes that customer perception is considered as a one thing which always guarantees the success of the product. So the strategies of marketing are designed with a view of customer perspective. IT is seen that the there are many innovative products that are not successful in the market just due to the incapability of making a strong perception in the mind of consumers. The company brings the hopes for its clients. The brand mission of the company is to be the customer’s favorite place and also a good way to eat and drink. The operations that are globally aligned around the strategy should be called as the plan to Win, which takes into consideration people, products, place, price and promotion (Keiningham, Gupta, Aksoy & Buoye, 2014).

The main objective of the company is to enhance the sale so that the profitability can be enhanced in effective manner. The main objective of the company is to be the place where people enjoy more to spend their time. The company objective is to attract more and more customers towards the company so that the sales can be enhanced in effective manner. The sales should be increased by promotions, because promotion is the best medium through which the company can induce the customers to buy a product. McDonalds have an great advantage through which the sales can be enhanced efficiently. The company has an objective to enhance and improve their menu. This will attract more and more customers and also help to satisfy the customers (Osman, Johns & Lugosi, 2014).

The main objective of the company is to cover large market share in the market, so that the goals and objective can be attained in effective manner. If the company tries to expand its market and provide quality product to its consumers then it is very simple to enhance the growth of the organization. The more the market share attained by the company, the more will be the profit achieved by the company. It is very essential to cover a large area market so that company can enhance its market growth in effective manner. The company should give more on enhancing the quality so that the more customers are attracted towards the product in effective manner. If the market share of the company is more, then the profitability of the company will be enhanced in effective manner (Armstrong, Adam, Denize & Kotler, 2014). 

Political Environment

Product: The Company should give main emphasis on the menu which attracts the customers towards the company. The needs and wants of the customers changes from time to time. So the company should take into consideration the products that are needed by the company. In the Australian market the non-veg food is more preferred, so the company should see this that the product is according to the need of the customers. The company should introduce new and innovative product and should phase out the old one. The Non veg varieties should be offered in the market so that customer get induced and buy the product (Aaker & Biel, 2013). 

Price: The value of the product is a major aspect for the customers before buying the product. The product is rated according to the perception of the consumer mindset. The main threat of using low price as a marketing tool is that in which customer can think that the quality is been compromised. It is very essential at the time of deciding the price as it is important to be aware about the brand and integrity. The company should start the strategy of giving the value meals in a range of process and also the affordability of the customers should be considered. For example: if a consumer eats with the Mcaloo Tikki then he will use it and same is with the Non Veg. The company should also provide a range of entry level products to its consumers (Armstrong, Kotler, Harker & Brennan, 2015).

Promotion: Promotion is also considered as an important part to enhance the growth of the company. Promotion includes advertising which is conducted on television, online, newspaper. There are many various promotional methods like sales promotion, point of sale display and direct mail. The company gives main focus on the children and teenagers. So the advertisement should be based on happy meal with a toy should be given. There are various schemes that should introduced by the company like lucky draws and also scratch cards which should be given when a consumer place an order. The company should maintain the strategy of promotion with the highest spending marketing by comparing with the competitors. Attractive taglines should be used by the company so that the customer gets attracted towards the product (Stephen & Yakov, 2015).

Place: Place plays an essential role. It is not only concerned with the physical location or with the point of distribution for products. It takes into consideration the various processes which are involved in bringing the product to the consumers. The company outlet is spread throughout the cities which make them very accessible and easy to reach to the consumers (De Mooij, 2013). The company should locate its outlet at the place where it caters huge population. If the outlet is a place where everyone can reach in easy way then the objectives and goals can be attained in effective manner. If the outlet is situated at the corner of the city, then it will create difficulty for the customers to go there. It can affect the sales of the company. So the outlet should be located at the center of the city (Wang & Chang, 2016).

Legal Environment and Regulatory Environment

Conclusion

By analyzing this report, it is concluded that for expansion the company should follow proper marketing strategies. If the marketing strategy is in place then there are many responsibilities which are given to different individuals so that the plan can be implemented in effective manner. The systems should be put in place so that the feedback of the market can be attained and measured against the targets which are for short term. McDonald’s should assure that this is done with the tight controlled and finite marketing budget. The fast food industry in Australia is concerned with the changing lifestyles of thee young population. The strategies which are discussed in this report should be implemented effectively, so that the company can easily attain the goals and objectives of the organization. McDonalds is considered as the famous leading food service brand with the retailer of more than 30,000 restaurants in 119 countries serving 46 million customers each day. The company should provide good quality product, because for expansion it is the main element which is considered by the company. The company should manage its employees also in effective manner, so that they can work with their full dedication.

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