TOPIC: CONSUMER AUDIT

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 TOPIC: CONSUMER AUDIT

BATCH NO: 2017-2018

PREPARED BY:
ARHAMA ZAFARMG-020
SYEDA SIDRA MG-018
FILZA SAMAR MG-016

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MARKET SEGMENTATION

a) EXTERNAL INFLUENCES:
1. Are there cultures or subcultures whose value system is particularly consistent
(or inconsistent) with the consumption of our product?
Ans. McDonalds on standardization and cultural settings, and emphasizes that a person always
knows what to expect from McDonalds anywhere in the world, local franchises also adopt to
local cultural customs and traditions. McDonalds adopt cultural aspect for local purposes. For
example: in Chinatown, for consumer marketing strategies McDonalds represents as an
“authentic cheese” fast food restaurant. The outdoor sign is in Chinese, a two-story Chinese
arch inside is painted in red for good luck, and the front wall displays four Chinese characters
that symbolize long life, happy marriage, lots of children and lucky money. In Muslim counties,
McDonalds show Respect to their cultural values by offering separate sitting rooms to families
and singles in the restaurant. In Beijing, there is a strong relationship maintained between staff
and customer’s children. Parents leave their children with female staff of the McDonalds. The
female staff also visits to the kids’ school and home after work, send cards on their birthdays
and holidays. Because of all this, they are now called “Aunt McDonalds”.

2. Is our product appropriate for male or female consumption? Will ongoing

gender role changes affect who consumes our product or how it is consumed?
Ans. McDonald’s products are appropriate for both male and female consumption. However,
the ongoing change in gender role is increasing the consumption of the product. As in today’s
modern world, not only men work but females are also focusing on their careers. Due to this,
men and women both somehow prefer to eat McDonald’s product when unable to make food
due to busy routine or when they are having lunch time. People who live in abroad alone for
their job purpose also prefer MC’s value meal because of its low price, good quality and taste.

3. Do ethnic; social, regional, or religious subcultures have different consumption

patterns relevant to our product?
Ans. McDonalds segmented their products on the basis of geographical, ethnic and religious
subcultures. People of different region, religion and ethnic groups consume different products
of McDonalds due to their vast and diversified menu.

For example: In U.S, people prefer to eat beef rather than chicken and In India, people don't
like to eat beef so, there they offer more chicken items in their menu. In Philippines, McDonalds
has introduced McSpaghetti and McArabia in the Middle East to its menu. To attract the
youngsters and adults of countries such as Germany, Europe and Japan. McDonalds is serving a
draft beer as drinks.

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4. Do various demographic or social-strata groups (age, gender,

urban/suburban/rural, occupation, income, education) differ in their
consumption of our product?
Ans. Demographic segmentation of McDonalds is effectively working in different markets of the
world. "Happy meal" feature of McDonalds is a great option for kids who choose it for toys that
are serves with the meal. Moreover, they built playrooms for kids in the restaurants. In New
Zealand, McDonalds has taken a gold card initiative to attract senior citizens by giving free
coffee or tea. It is targeting youth with Wi-Fi facility at their restaurants. People from different
social classes (lower, middle and upper) ate different products like upper class people opt for
expensive deals, middle- and lower-class people opt for value meals. Life cycle stages
(bachelors, single parents, kids, newly married couples, and old people) also affect the
consumption of the product. Their consumption and choice of product may vary according to
their income, situation and desire. On the contrary, old people go for coffees and teas at the
restaurant.

5. Is our product particularly appropriate for consumers with relatively high (or
low) incomes compared with others in their occupational group?
Ans. Yes, people from different income groups are offered with diversified menu. Value meal is
considered as a great option for people with low income as its price is low with the same
quality and taste. Whereas, BigMac, quarter pounder, double cheese burgers etc. are usually
consumed by people with high income level.

6. Can our product be particularly appropriate for specific roles, such as students
or professional women?
Ans. McDonalds not only sell fast food but, they also have salads, low calories food and
breakfast items. It's good for students of primary to eat something healthy yet tasty food.
Professional women also prefer McDonald's food when they are busy at unable to make
breakfast, during lunchtime or even they want to eat something healthy as professional
woman’s need to be fit and healthy so they can eat salads, fresh vegetables and low calories
nutritional food from their nearby franchise of McDonalds. Secondary Students can eat
McDonalds with their own pocket money as the prices of McDonalds are flexible. Students and
job doing people who live in abroad alone, without their families prefer McDonald's food as it's
less costly and they can have meal to their table quickly in the busy schedule of their life.

7. Would it be useful to focus on specific adopter categories?

Ans. It would be useful not to focus on specific adopter categories. McDonalds is preferred by
people of different demographic, behavioral and psychographic groups so, they should try to
target all adopters over time by innovating new items, improving the quality of the existing
meals, deals and services.

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8. Do groups in different stages of the household life cycle have different

consumption patterns for our product? Who in the household is involved in the
purchase process?
Ans. Yes, people consume McDonald’s product differently in their distinct household lifecycle
stages. Bachelors consume frequently while outing or sometimes during studies. Newly married
couple purchases less frequently but they bought different products. Empty nest seems to
purchase food items but obviously they do so according to the amount of money they have in
their pockets as they are not earning. Solitary survivor invests in such fast food items during
their job’s lunch time or when they are in hurry and want to do breakfast, they opt for
McDonalds. Obviously, person who is earning in the household is involved in the purchase
process. But, when it comes to students, during outing, they are involved in the purchase
process on their own.

b) INTERNAL INFLUENCES:
1. Can our product satisfy different needs or motives in different people? What
needs are involved? What characterizes individuals with differing motives?
Ans. Yes, McDonald’s unique and diversified menu can satisfy different needs or motives in
different people. These needs and motives influence the consumer’s buying decision. When
you buy something to eat, you do so to satisfy your hunger needs. Similarly, when you buy
something to drink, you satisfy your thirst motives. Other needs which customer satisfies
through the consumption of McDonald’s product are self-actualization needs. Consumers
feel a sense of attainment after eating from McDonalds as it is one of the most famous
brands. Rational motives are satisfied of most consumers due to effective social media
presence and social responsibility activities of McDonalds. They feel a sense of belonging to
one of kind and generous corporations.

2. Is our product uniquely suited for particular personality types? Self-concepts?

Ans. McDonalds is uniquely suited for particular personality types such as; openness,
conscientiousness, extraversion, agreeableness and neuroticism.

 Openness: It includes people who are highly open to experience something new,
appreciate new things, arts and imaginations. McDonalds is suitable for such people due
to its continuous innovation in the menu and eye watering display of menu items,
 Conscientiousness: Such types of people are quite disciplined and are attracted by calm,
kind and generous personality of McDonald’s staff and, by the pleasant environment of
McDonalds.
 Extraversion: cheery fellows are always is search of good and pleasant atmosphere
where they can fulfill their social needs by chatting with people. McDonalds is best place
for such kind of people due to its peaceful environment and attracting interior.
 Neuroticism: folks seeking for hygienic food prefer McDonalds due to the quality of
food and hygienic working environment.

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3. What emotions, if any, are affected by the purchase and/or consumption of this
product?
Ans. People who crave for eating burgers and fries feel satisfied with the food of McDonalds
and opt for McDonalds happily whenever they want to eat such kind of fast food. For those
people, nothing is more important than eating from a good, low- priced restaurant of their
choice. They really feel admired and adored after eating hygienic, fresh, quality and low-priced
food. McDonald’s technique of accurately assigning serial numbers to the orders ensures that
customer has received the right order and prevents dissatisfaction of the customer. McDonald's
"ask, ask, tell" drive thru order technique excites customers as they are able to eat from their
favorite restaurant anytime. Kids had a feeling of joy after getting toys on the purchase of
happy meal. People who live in abroad, far from their families, gets relief and home like feeling
after having breakfast and dinner at the McDonalds

4. Is our product appropriate for one or more distinct lifestyles?

Ans. McDonald's has become a global icon and many people like McDonalds all over the world.
McDonald's always shows family, friends, kids, Sport players in their ads and tries to promote
the message of fun, excitement, togetherness, staying active or clean and green society.
Recently, McDonald’s has launched a clean and green campaign in which they have shown that
they will now recycle the restaurant material to reduce the use of paper and cardboard and, to
save trees. In the meantime, McDonald's launched a theme that would give active messages to
the people or tell them the benefits of staying active. The purpose of this active lifestyle
campaign was to make their customer’s over all well-being better. In addition, McDonald's has
set up a website called goactive.com that provides fitness tips to the sports players and
families. One of the initiatives taken by McDonald's for school-aged children was to show them
a 30 minutes video in schools to motivate the children to be active with fun. In addition to this,
McDonald's always emphasizes the benefits of staying fit, improving one's health or eating
healthy food. In a nutshell, McDonalds is suitable for ones following healthy, active and fun
lifestyle. And, are environment friendly.

5. Do different groups have different attitudes about an ideal version of our

product?
Ans. Every human being has a different attitude towards different things. McDonald’s
customers are in different counties of the world. They have a different attitude or perception
about the McDonald’s menu. In some cases, if the name of McDonalds is mentioned in front of
people, then the image of McDonald’s burgers or fries is the first thing that comes in their
mind, which means that McDonalds for most people is famous only for burgers or fries. Many
people don’t like McDonald’s shakes because of the it’s flavors like if you order a chocolate
shake, there would be chocolate only on the top of the shake and the rest would be made of
whole vanilla ice cream. People who doesn't like or likes light chocolate usually prefer
McDonald's shakes. While McDonald's is very popular for its one-of-a-kind ice-creams, known
as McFlurry. Many people like this ice-cream very much whereas, many people consider this ice
cream to be very heavy and think that they can’t eat it completely. Due to its variety of coffee

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flavors, McDonald's has attracted a lot of coffee lovers who don’t feel much difference in the
coffee of their favorite brand and McDonald’s coffee. People who live alone love the
McDonald's breakfast menu. And those who like to eat healthy and delicious food are attracted
by McDonald’s nutritional food menu.

C. SITUATIONAL INFLUENCES:
1. Can our product be appropriate for specific types of situations instead of (or in
addition to) specific types of people?
Ans. McDonalds generate its menu and services according to changing trends, situations and
cultural factors. Businessmen and job doing people considers time factor while making
purchases and use drive thru when they are in rush. McDonalds offers low-cost, good deals for
teenagers and students. Working people and their children eat McDonald’s breakfast when
they are in a hurry. Those who like to eat veggie food there is a lot of variety in the McDonalds
menu for them and, for those who like to eat meat there are different items in the menu. The
location of the outlet can greatly affect the people’s buying process if you are going somewhere
and you find your favorite restaurant on the road then you will not like anywhere else other
than McDonalds. The franchise of McDonald's airport has a special place in the hearts of
people, so if anyone wants to go out or return from any country, or if he wants to eat
something, he chooses McDonald's. Moreover, people waiting at airport due to delays in their
flights, spend time or even eat something at McDonalds. People also choose McDonalds for
social purposes like to celebrate birthday parties, anniversaries or other events as McDonalds
offers a party room. McDonalds has a strong social media presence that keeps its customers
engaged through its apps and other social accounts. Some McDonald’s products are also
purchased by consumers due to McDonald’s deals or games. McDonalds offers a play a win, or
play to win deals in their apps that attract customers.

D. DECISION PROCESS INFLUENCES:

1. Do different individuals use different evaluative criteria in selecting the
product?
Ans. Yes, different people use different evaluative criteria while choosing product. Some people
consider price at the time of selecting the product decide while other focuses on quantity.
Appearance is more important for some people whereas, some give importance to the
intangible aspects of the product. McDonald’s customers also take into account different
criteria when choosing a product. Teenagers, students or low-income people are the ones who
focus on items that provide more quantity in less money and choose deals like value meals,
happy meals and other sandwiches. Although there are some customers who buy the product
just by considering the taste or quantity of the product and they don't care about the price,
they buy expensive meals like BigMac burger, double cheese burger, quarter pounder,
McRoyale burger and so on that can satisfy their cravings.

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2. Do potential customers differ in their loyalty to existing products or brands?

Ans. Of course, each customer has their own level of loyalty for each brand and product. If the
customer does not find what s/he is looking for then they just move towards an alternative
option. Although, McDonalds focuses a lot on developing loyalty programs in order to make a
strong relationship with the customers. McDonalds gives discounted programs that offer
discounts to customers based on their past purchases. McDonald’s mobile friendly app helps
them to increase engagement of customers with the brand. With the help of this loyalty app,
they try to better understand their customers and satisfy them by giving discounts and deals.

PRODUCT POSITIONING
1. What is the general semantic memory structure for this product category in
each market segment?
Ans. By semantic memory structure, it is meant the portion of long-term memory that
deals with the concepts and ideas that are not based on any personal experience. Instead,
semantic memory refers to the things that are common knowledge or basic facts that are learnt
over a period of life time. If we talk about famous brand McDonald’s, then one could have a
very obvious semantic memory structure about it. McDonald’s has positioned itself in the minds
of consumers as a low-cost and family-friendly fast-food retailer. McDonald’s has focused on
narrow base of customers, appealing to families only. McDonald’s is being positioned in the
minds of people as an efficient operator due to their efficiency in installing technologically
advanced equipment to make things easier, quicker and cheaper. Moreover, by having dual
drive-through, McDonald’s have positioned itself as least time consuming or the fastest service
in the minds of consumers. By having play-grounds and meals like happy-meal including toys
with it, McDonald’s is positioned in the minds of children as a place to go and have fun, or as
the most reliable and suitable place to go with family. Their ads and family-friendly plays a great
part too though. Moreover, through their low-calorie menu, it is positioned in the minds of
adults as the healthy option.

However, McDonald’s say itself cost-friendly or low-cost operation, or that it targets

middle- and lower-income group but according to their prices and luxuries, it is more likely to
target middle- and higher-income group because lower income groups in countries like Pakistan
simply cannot afford its products.

2. What is the ideal version of this product in each market segment for the
situations the firm wants to serve?
Ans. McDonald’s is serving in market segments on the basis of geographic,
demographic, and psychographic characteristics. The ideal version of its product in each
segment would be different. To the children, it is meal with fun and, and that McDonalds is
doing through the provision of play-grounds and toys with the meal. To the adults, it is healthy
meal, and that McDonald’s is doing by the provision of low-calorie menu with a hygienic
environment. To the young adults or office going people may be, it is ease of having a healthy

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and reasonable breakfast and lunch, and that McDonald’s is doing by their delicious breakfast
menu and may be delivery services to the offices. To the youngsters, it is a place to enjoy and
have fun with friends or may be having good selfies, and that McDonald’s is doing by its
outstanding interior and exterior design. If we talk about geographically scattered consumers,
the idea version of product would be a meal which is up to the norms and culture, and the taste
of the region. McDonald’s is doing that by having different and continuously updating menu for
different geographic regions.

3. Which evaluative criteria are used in the purchase decision? Which decision
rules and importance weights are used?
Ans. If we talk about consumer purchase behavior, a typical consumer evaluates a
product or brand on the grounds like past experience, peer’s reviews, affordability, suitability of
the location (if it isn’t far from home/office), or even it might be a heresy about the product or
brand too. Now, if we talk about fast-food retailer giant McDonald’s, their environment and
customer service is so molded towards consumer that a consumer who have been there once
would might not think about any other thing before making a purchase again. If a consumer is
considering it first time, then McDonald’s has enough good reputation over social media, or the
consumer might get a favorable review from a peer. However, the things that could fall
unfavorably are the affordability and the suitability of the location.

PRICING

a) EXTERNAL INFLUENCES:
1. Does the segment hold any values relating to any aspect of pricing, such as the
use of credit or conspicuous consumption?
Ans. People from diverse backgrounds prefer to pay price through different methods.
McDonald’s customers are from upper, middle and lower classes, so everyone make a payment
according to their convenience. Those who order food at home through home delivery service
make payments from their bank account. People from middle class choose cash on delivery
options. Likewise, outlets also have a lot of options for people of middle and upper class which
allows them to make payment by debit card, credit card or by paying cash. In short, McDonalds
allows different payment methods for the comfort of their consumers.

2. Does the segment have sufficient income, after covering living expenses, to
afford the product?
Ans. Yes, segment has at least minimum income with which they can choose the item of their
choice from the offered items of McDonalds to satisfy themselves. As McDonalds provide
different products at different Price Range so their menu is pocket friendly for every customer.
It depends on the customer to select the product that works as a bundle of satisfaction for him.

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3. Is it necessary to lower price to obtain a sufficient relative advantage to ensure

diffusion? Will temporary price reductions induce product trial?
Ans. McDonalds always try to find out the right price for their products which is not too low
so that most people think that the quality of the product is being compromised or the
product is of cheap quality and is not so much expensive that the people can’t afford it.
McDonalds focuses on value pricing and develops strategies that can help them in
increasing their over-all revenue by charging low prices at low cost and providing high
quality product. McDonalds has its own supply chain process that is why it is able to
provide high quality at low price. So, their affordable prices have been relative advantage
for them. Every fast food lover has tried the McDonald’s product once in a lifetime, so there
is no need for trial. People are familiar with the taste and also consume the product
because of the Affordable Prices of the product. However, McDonalds offers Discounts to
Student at their student card and offers deals on public events that play a huge role in
triggering the trial.

4. Who in the household evaluates the price of the product?

Ans. The person in the household, who is paying the price, evaluates whether the price of the
product is reasonable or not according to the quantity or quality of the product.

b) INTERNAL INFLUENCES:
1. Will price be perceived as an indicator of status?
Ans. Status can be indicated by looking at the price. Consumers who bought expensive deals
are self-conscious about their status. They fulfilled their need for self-achievement by buying
expensive deals or felt happy that they have eaten from this brand. An even low-income
person, after consuming McDonald’s cheap deals feels that he has eaten from a branded place.
And obviously, it is clear that those who spend more money are wealthier and they are from
the upper class. The ones who spend a lot of time thinking while making purchase or thinking
about price are the ones who are from the middle or lower class. Apart from this, the person
who is paying with debit card is obviously better than the person who is paying with credit card
in terms of status.

2. Is economy in purchasing this type of product relevant to the lifestyle(s) of the

segment?
Ans. Yes, first of all, McDonald’s prices are not too low that they can’t make revenue neither
too high that people will not come to the restaurant. McDonalds offers different prices in
different countries as per the demand and economy of the country. Whereas, when it comes to
ASIAN food markets, the food business in Asia is booming. People love to eat and drink . If we
talk about Asian food markets, we will find that the food business in Asia is very popular. Also,
there are people from diverse ethnicity who love to eat food of unique tastes so, if this
opportunity is properly utilized, it can benefit the economy and can generate more revenue.

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3. Is price an important aspect of the segment’s attitude toward the brands in the
product category?
Ans. Yes, as there are so many alternatives of fast food restaurants in our country so, after
considering the price, if customers like the McDonald's brand and want to buy its product, then
it means that the customer has a good image in their mind about McDonald's and they loyal
with the brand. But if they increase the prices too much, they will be threatened because there
are too many competitors, the customers can shift towards alternatives.

4. What is the segment’s perception of a fair or reasonable price for this product?
Ans. McDonalds, being cost Leadership Company, generally uses a value based pricing or low
pricing approach which is a big threat to McDonald’s competitors. McDonald’s customers
whether they are from any status or class find the pricing strategy of McDonalds very
reasonable. However, some people assume that McDonalds charges higher prices for coffees
and Shakes, but apart from this, all customers find the price of McDonald's products pocket-
friendly.

c) SITUATIONAL INFLUENCES:
1. Does the role of price vary with the type of situation?
Ans. Yes, price is an important factor and every individual consider his own situation while
purchasing something. Often when people go to eat something at restaurants, they select items
of low cost if they have less money or don't have salaries in their pocket. There are also some
unexpected events that can cause people to think that the price is high and they reduce the
consumption. For instance, as we all know that the whole world is in crisis due to today's
corona situation and everyone's financial position is bad. People are spending money carefully.
That is to say, the situation matters while deciding whether the price of the product is good or
not.

d) DECISION PROCESS FACTOR:

1. Can a low price be used to trigger problem recognition?
Ans. Yes, most people who have never tasted a product or have seen it, at a discount or a low
price can try it out. Also, if the people already eating something at the restaurant and if they
see something in the menu that they like and the price of that item is too low, they will
definitely order it. Low price can persuade the customer to visit the outlets and once the
customer has come to the outlet, about 60% of the people would buy something.

2. Is price an important evaluative criterion? What decision rule is applied to the

evaluative criteria used? Is price likely to serve as a surrogate indicator of
quality?
Ans. Evaluation criteria are factors that anyone assess while making any decision. Price is
an important factor for some whereas, for some people, the price does not matter. It totally

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depends on the type of the customer. McDonald’s customers apply a compensatory

decision rule to their evaluative criteria. They judge weigh the strengths and weaknesses of
McDonalds. One who want a lower price consider it as strength of McDonalds and ignores
their own preferred taste. On the contrary, people who like to eat quality food consider the
quality of McDonalds as their strength and ignore the price of the product. The factor which
is related to another factor of the product or which indicates something about the other
factor of the product is called surrogate indicator. Again, it depends on the Consumer's
mind-set that which factors and variables are inter-related with each other and which are
not. Some people think that because the price is too low, the quality of the product may be
compromised. Whereas, many people think that there is no relation between quality and
price of the product. That's why McDonalds always focuses on value pricing, which is
neither too low nor too high.

3. Are consumers likely to respond to in-store price reductions?

Ans. Yes, lower- or middle-class consumers, even upper consumers are likely to respond in
a positive way to in- store cost reduction. It is obvious that every customer wants his/her
maximum benefit or maximum satisfaction that’s why customers are more likely to pick the
deal or discounted items. Many fast food lovers embrace McDonalds over other fast food
restaurants because their prices are low and they also offer good deals.

DISTRIBUTION STRATEY
1. What values do the segments have that relate to distribution?
Ans. For distribution, each segment must have different needs and values. Young adults
may want the outlet to be nearer to their working place or their houses. Youngsters may value
the outlet to be nearer to their colleges or universities, or may be to their home. Youngsters
may also value the outlets to be inside the or by the places called as picnic points. Like if we talk
about Karachi, McDonald’s has its outlets by the sea-view point, and at the Jinnah International
Airport, and that’s what consumers value about distribution that the product would be
available everywhere. Apart from picnic points people would also value the availability of such
products by the cinemas and shopping malls. Moreover, the physical outlet has its own value
with all its interior and exterior, and all the cheesy customer service but people would also
value an online provision. Like housewives and women who can’t go the physical outlet would
prefer a home delivery. The office workers who can’t go to the outlets in office hours would
also prefer a delivery at their work places.

2. Do the male and female members of the segments have differing requirements
of the distribution system? Do working couples, single individuals, or single
parents within the segment have unique needs relating to product distribution?
Ans. If we talk about the requirements of males and female regarding the distribution,
then we won’t find a big difference. Male members of the segments won’t be offended if the
outlet is a bit far away from their house or their office but in the case that if they’re not allowed

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to leave their workplace in lunch hours, then they would require a delivery service. Female
members would likely to require an outlet to be nearer to their homes, offices, or
colleges/universities. However, both male and female members would require an outlet by the
shopping malls, cinemas, picnic points, and places like that. As far as the working couples
concerned, they would likely to require an outlet on their way to office or from office, may be a
delivery service too, or a drive-thru if they want to eat at home. Single individuals won’t be
offended by the location or if there is no delivery service operating. However, female members
could be. Single parents may require a delivery service to their homes or an outlet nearer to
their homes, if they want their children to take to the play area of McDonald’s.

3. Can the distribution system capitalize on reference groups by serving as a

means for individuals with common interests to get together?
Ans. As we can see that different members of different segments have different
requirements regarding distribution system. It would be a good strategy to mold the
distribution system according to the requirements of different members by putting the
members in same group with same requirements. For example, a robust delivery service could
be operated in order grab those customers who cannot make it to the outlets. In this way the
female members would be benefitted. It may be preferable to operate delivery service first in
lunch hours in the commercial areas to grab the workers. This would help in gaining more
customers who would next likely to visit the outlets. On the other it would also be useful to
open an outlet on the junction of every area. So, that consumers would not be bothered to
travel far from their homes. Like there is no outlet of McDonald’s in central and northern areas
of Karachi. An outlet at Five-Star food street would be beneficial to both the people from
central and northern areas.

4. Is the product complex such that a high-service channel is required to ensure its
diffusion?
Ans. Product is not that complex though but an efficient distribution service channel is
required. McDonald’s is doing great with outlets and drive-thrus, by operating a fast service,
utilizing advanced technological equipment to save the precious time of consumers. However,
there is much room of improvement with the home delivery services.

5. Will the selected outlets be perceived in a manner that enhances the desired
product position?
Ans. The aesthetic exterior and interior designs would play a great role towards the
positioning of the product. Moreover, as mentioned and depicted by McDonald’s that they
often have a play-area within the outlets to give family-friendly look to them. A peaceful and
hygienic environment would also play a part. If we talk about services, like McDonald’s is being
known for operating efficiently. They are efficiently utilizing technological advanced equipment,
the drive-thru thing, and their approaches towards cutting on the time of the customers. These
are things that might help making consumers perceive in accordance to the positioning.

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6. What type of distribution system is consistent with the lifestyle(s) of each

segment?
Ans. In Pakistan, McDonald’s are targeting upper income and middle-income groups. In
a society like Pakistan, there is not much difference between these two groups. However, most
people living an elite lifestyle would prefer hanging out and chilling at restaurants with families
and friends frequently. So, a network of well-developed outlets within the well furbished areas
would require in a good distribution system. While, if we talk about the middle-income group,
they might be bothered if there is no home delivery system. Because they very often prefer to
go out.

7. What attitudes does each segment hold with respect to the various distribution
alternatives?
Ans. If we talk about segments demographically, then children and youngsters would
hold a positive attitude towards physical outlets but they won’t towards drive-thru may be
except in some conditions. While young adults (office going people) and adults would not that
much fond of physical outlets except if it is once in a blue moon or if it is with family. However,
females, working ladies, or single mothers would hold a positive attitude towards physical
outlets when the outlets are in shopping malls or at somewhere, they brought their children to
enjoy, and they would like home delivery service too.

8. Do the desired features of the distribution system vary with the situation?
Ans. They might need to be varied in extreme conditions like the one we are facing right
now, i.e. Covid-19 pandemic. In the conditions like this, the outlets wherever they are wont
work. People are not allowed to step out of their houses, they are locked-down. In situations
like these, the online operations may work best, there would a strong need to operate the
business online efficiently. There would a need of robust home delivery system. Drive-thrus
may also work best with strict observation of SOPs.

9. What outlets are in the segment’s evoked set? Will consumers in this segment
seek information in this type of outlet?
Ans. When a customer wants to make a purchase and narrows down a product to a few
brands, these brands are called an evoked set. These are the brands that are most familiar to
the customer and quickly come to mind as quality products from which to make a purchase. If
we talk about the consumers of products that are similar to what McDonald’s are dealing with,
then consumer’s evoked set would be comprising of retailers like KFC, Burger King, Hardees,
Burger Lab, OPTP, and may be other fast-food retailers that are operating in competition with
McDonald’s. Now, about information, consumers may seek the locations of the outlets, the
interior, the environment or ambiance, the menu, and maybe they would compare the price
structures. However, consumers may also interest in ad campaigns and CSR work by the brand
and would likely to seek information about it.

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10. Which evaluative criteria does this segment use to evaluate outlets? Which
decision rule?
Ans. The evaluative criteria may differ from segment to segment, and even to sub-
segments. However, a consumer may evaluate on past experiences if any, a review from a peer
or friend, suitability of the distribution channel, and may be the price structure. If the consumer
is a loyal customer and s/he like the service or the taste of food, then none of these things
would matter. Even a bad experience won’t matter, the consumer would like to give it a chance
again.

11. To what extent are product decisions made in the retail outlet?
Ans. To a large extent may be. Because when a consumer goes to the retail outlet s/he
exposes to an un-ending sea of luxurious services and products that may sparkle his/her eyes.
The marketing efforts of the sales representative are sometimes so on point to make a
consumer feel that s/he needs a certain product that s/he hasn’t come to buy. The interior
decoration of the store plays a part too. Or sometimes free sampling is a way to persuade
consumer.

PROMOTION STRATEGY
The manager must develop a promotion strategy, including advertising, nonfunctional package
design features, publicity, promotions, and sales force activities that are consistent with the
product position

A. External factors
1. What values does the segment hold that can be used in our communications?
Which should be avoided?
Values that the segment hold that McDonalds uses to communicate its products are family-
oriented values, diverse in nature, represents fun and excitement, have warm relationships,
mutual respect among people and helping each other out. Concisely, values that appreciate
cultural and societal norms are used in the communications. Any values that are offensive
against any culture, gender, age group, race, religion should be avoided at all costs. Any type of
offensive or sexual humor should be avoided in our communications as our society prohibits
these types of advertisements.

2. How can we communicate to our chosen segments in a manner consistent with

the emerging gender-role perceptions of each segment?
Ans. We can communicate to them in a way that we can show them in our ads, like either it a
man or woman both can consume products we are offering, or while conveying any massage
we want can add all genders like McDonalds did in their " KICK THE TRASH DIGITAL CAMPAIGN "
they communicate to their chosen segments in a manner consistent with the emerging gender-
role perception.

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3. What is the nonverbal communication system of each segment?

Nonverbal communication means facial expressions, eye contact, voice tone, body language,
gestures etc. and McDonalds use all these nonverbal modes in their Bf & Gf commercial, video
shows male kid using different facial expressions when female kid demand a burger The Male
character also expressing its word with Gesture when the female character as whether she is
his GR or not (gesture) ,eye gaze of male character& their body language this way their
nonverbal communication system works. Not just this their product wrapping and postures also
help in communicating nonverbally.

4. How, if at all, can we use reference groups in our advertisements?

Ans. Yes we can use them in advertisements, infect McDonalds had used them in their various
campaigns like McDonalds ad of "celebrating 20 years" in that ad they almost show everyone
business man, family man youngsters, children etc., there "HAND FULL", "GROWUP" and "IT
MUST BE" ads targeting parents and many more reference groups.

5. Can our advertisements help make the product part of one or more role-related
product clusters?
Ans. Yes our advertisement had done this many times by showing people of different roles
consuming our product like children month special ad "switch offend play" target kids, "don't
give up your right to choose" ad targeting elders and making them realize how it feels if their
right to choose is taken from them, McDonalds ad of "celebrating 20 years" in that ad they
almost show everyone business man, family man youngsters, children etc.

6. Can we reach and influence opinion leaders?

Ans. Yes McDonalds can reach and influence opinion leaders, since opinion leaders are early
adopters &validate a company's product or idea, marketers reach them for collaborations,
advertising campaigns and product endorsement but they can only do that if they are
influenced by our brand .for instance once McDonald released a campaign in 2017 called
"Search it" ad show actress Mindy Kaling urging viewers to do a Google search "for the place
where the taste of coke is good" with a aim to highlight how information in collected by
youngsters .This campaign is a good example of how McDonald reach an opinion leader and
influence them to the influencer in their campaign

7. If our product is an innovation, are there diffusion inhibitors that can be

overcome by promotion?
Ans. Yes because usually early adopters are diffusion inhibitors. If promotions are done in an
effective way and product prices are affordable with high quality than innovation will be
accepted but innovation should be pleasing enough to attract customers.

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8. Who in the household should receive what types of information concerning our
product?
Ans. As people have to make purchase, it is important for an individual to have a know-how
about the product of the brand and, it's competitor's product. Parents wants the knowledge
that are products healthy, children want to you that are they getting toys at any purchase, a
middle-class man want to know are price affordable etc. McDonalds customers should have the
knowledge of menu(how much variety we are offering), pricing of each meal (shakes, burgers,
fries etc.) and competitor's offerings ( are we providing more quality at feasible prices with a
diversify menu than our competitors or not) so that they can choose a best possible bucket for
themselves at the point of purchase

B. Internal factors
1. Have we structured our promotional campaign such that each segment will be
exposed to it, attend to it, and interpret it in the manner we desire?
Ans. Yes, we did, once we used Instagram music campaign in a way that people of each
segment got engaged to it and interpret it in a manner we desire. First, we dedicated song to
our entire menu - from "KUCH KUCH HOTA" when we see a burger to "IS THIS LOVE" with
regards to our fries. The brand saw individual pouring in with their own melodies to show love
for our food. To ramp up the entertainment and add to the furor Instagram music had just
made. The digital agency partner to McDonald’s decided to play Instakshari; an Antakshari on
McDonald’s Instagram handle With Instakshari, the brand and the office chose to include a
couple of seconds of enjoyable to liven up their exhausting/tiring day. A sequence of letters was
delivered on the Instagram handle in two hours and each of the one needed to do was a remark
with tunes that start with that letter. 20 victors won free fries for a day and one uber champ
has been qualified with the expectation of complimentary fries for a year. Instakshari has been
an admirable achievement. The brand got 10X greater commitment on each substance piece
distributed. The action made 7 lakhs+ impressions and created 13K+ remarks for tunes across
11 letters - this in 2 hours. Arvind RP, director, marketing and communications at McDonald's,
said, "we are absolutely delighted with the response we have got for this activity. We will
continue to push creative boundaries to create compelling content to better engage with our
consumers.” & their hand full campaign is also structured in a way that each segment was
exposed to it and interpreted it in a manner McDonalds decide.

2. Have we made use of the appropriate learning principles so that our meaning
will be remembered?
Ans. Yes, McDonalds through various competitions, programs, functions and distribution of free
coupons, promote themselves which help in attracting consumers help them in remembering
brand meanings. Different challenges like 'the cheerful family minutes’, ‘across the nation' ,
'NFL love' have expanding helped their deals and piece of the overall industry by making a
mindfulness of the brand and ingraining it in the brains of the purchasers. These promotions

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and challenges additionally go live on twitter and other online media systems that raise
consideration of the brand step by step.

3. Do our messages relate to the purchase motives held by the segment? Do they
help reduce motivational conflict if necessary?
Ans. The motives of our segment are to get food when they are hungry or to have something to
eat instantly when they are busy. it is usually portrayed in the McDonalds ads that someone is
hungry, so he is eating burgers from McDonald's or when someone is in hurry for office, He is
having breakfast from McDonald's. In addition to this, the self-esteem motive of the customers
is also being fulfilled as McDonalds is a well-known brand and it’s a satisfaction for customers
that they are eating from an international brand. apart from this, messages are usually directed
to help increase motivational conflicts by showing discounts or offers which persuade target
audience to get something from the McDonalds.

4. Are we considering the emotional implications of the ad and/or the use of our
product?
Ans. Yes, they consider, they have three strong connection points at the higher order emotional
level that cut across segments. Most QSR brands are lucky to get two or even one of these
higher order emotional connections in a way that cuts across segments. When you compare the
connection signature of McDonald’s to other QSR brands, they are much more scattershot.  

5. Is the lifestyle portrayed in our advertisements consistent with the desired life-
style of the selected segments?
Ans. Yes, we portray our advertisement in a way that it is consistent with the desired life-style
of the selected segments like in the wake of rising numbers of childhood fatness, the
McDonald's Corp has launched a new campaign to promote healthy eating and exercise
targeting youngsters.

6. If we need to change attitudes via our promotion mix, have we selected and
properly used the most appropriate attitude-change techniques?
Ans. If we need to change attitude via our promotion mix, we can use technique of associating
the product with an admired group or event for instance, few years back Mc Donald's made a
greatest cheap food coordinated effort with animation Despicable Me 3. There additional
menus with minions, influenced items in order to help promote Despicable Me 3. The
examination shows that it is shown a smart thought to presented to the purchasers the
explanation of their sponsorship so as to evade negative intentions.

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C. Situational influences
1. Does our campaign illustrate the full range of appropriate usage situations for the
product?
Ans. Yes, our campaign illustrates the full range of appropriate usage situational for the
product. As from decades McDonald's has maintained an extensive advertising campaign, in
addition to the standard media (TV, radio, and paper), the organization utilizes announcements
and signage, supports games from extending from Little League to the Olympic Games, and
makes coolers of orange beverage with their logo accessible for nearby occasions of various
types. In any case, TV has consistently assumed a focal job in the organization's promoting
system. Until now, McDonald's has utilized 23 distinct mottos in United States promoting, just
as a couple of different trademarks for select nations and districts. On occasion, it experiences
run into difficulty with its missions.

D. Decision process influences

1. Will problem recognition occur naturally, or must it be activated by
advertising? Should generic or selective problem recognition be generated?
Ans. Problem recognition occurs naturally or sometime activated by advertising (specially in
case of children) marketers create more motives to stimulate consumers. For example,
marketers of McDonald’s market toys of their product named happy meal to attract children. In
addition, they also collect information about consumers in order to identify the circumstances
that trigger consumers’ needs, and build relevant marketing strategies that could draw
consumers’ attention. Marketing managers often want to influence problem recognition rather
than react to it. They generate both generic& selective problem recognition, a discrepancy that
a variety of brands within a product category can reduce, or to induce selective problem
recognition, a discrepancy that only one brand in the product category can solve.

2. Will the segment seek out or attend to information on the product prior to
problem recognition, or must we reach them when they are not seeking our
information? Can we use low-involvement learning processes effectively? What
information sources are used?
Ans. No as we are food selling brand so the segment not only seek information only when they
need it, they usually seek information without even recognizing problem or sometime check it
out form their future plans related to those products. And yes we can use low involvement
learning process effectively as in that people buy product with having less info about it

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3. After problem recognition, will the segment seek out information on the product
or brand, or will we need to intervene in the purchase decision process? If they
do seek information, what sources do they use?
Ans. After recognition the problem the segment seeks out information on the product or brand
that how that brand solves their problem. Are they being able or not? You can get this info from
using different mediums like through watching advertisement, doing internet search, asking
from a sales person etc.

4. What types of information are used to make a decision?

Ans. Decision making require following information regarding the identification of problems
you need to solve or the questions you need to answer, details relevant to your decision that
how can you solve the identified issues, alternative's search & their ranking. after all this one is
able to make decision and choose among alternatives.

5. How much and what types of information are acquired at the point of purchase?
Ans. In Order to make purchase, it is important for an individual to have a know-how about the
product of the brand and, it's competitor's product. McDonalds customers should have the
knowledge of menu(how much variety we are offering), pricing of each meal (shakes, burgers,
fries etc.) and competitor's offerings ( are we providing more quality at feasible prices with a
diversify menu than our competitors or not) so that they can choose a best possible bucket for
themselves at the point of purchase.

6. Is post-purchase dissonance likely? Can we reduce it through our promotional

campaign?
Ans. Post purchase dissonance arises when customers are not satisfied with the product and
service they consume, which triggers them to complaint. As far as reduction is concerned it
depend on how much disappointed the customer is. Like if he/she is displeased with the quality
served then, it's bit difficult to reduce his/her disheartens by promotional campaigns. So as. But
yes their dissatisfaction can be reduced or eliminated by running promotional campaign, that
shows how you are trying to improve your products & services just to offer them incredible
experiences.

7. Have we given sufficient information to ensure proper product use?

Ans. Yes our promotional strategies are designed & employs are trained in such a way to ensure
that sufficient information is provided to customers regarding the usage of product.

8. Are the expectations generated by our promotional campaign consistent with

the product’s performance?
Ans. Yes as one of the characteristics of McDonald's success is, its consistency. Using the
technique of paid advertisement, for their promotional campaigns they are not only successful

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in increasing customers but also make them repeat purchaser by providing them the same
product's performance.

9. Are our messages designed to encourage repeat purchases, brand-loyal

purchases, or neither?
Ans. Being a successful, series marketing & advertising campaigns runners, McDonalds
designed their messages in way to increase brand loyal purchases & repeat purchases. They
make sure that all their consumers are aware of their discount offers, promotions& good work.
Their quality food, quick service, well -mannered or trained employs, fun & entertaining
environment insisted customers to visit again& again & make memories.

PRODUCT
1. Is the product designed appropriately for all members of the segment under
consideration, including males, females, and various age groups?
Ans. If we talk about age groups, the product is more than perfectly designed. A we mentioned
above also, that there is separate menu for the children and adults. A comparatively light meal
to suit the stomach of children is being provided, that too with toys and with the presence of a
play-area in the best of their interest. For the adults and young adults, there is a low-calorie
menu to suit best to their diet plan, as well as there are products for those who want to cheat
on their diet plans. For male and female, there are products that would suit their preference
and taste. McDonald’s are good at molding their menus according to the geographic changes is
tastes and preferences of people, as well as according to the new trends.

2. If the product is an innovation, does it have the required relative advantage and
lack of complexity to diffuse rapidly?
Ans. Product is not an innovation; similar products were already existing in the market.
However, their menu and some of the ways of operation were new. Also, they continue to
innovate and bring new things according to the demand and that would be beneficial for the
consumers. Moreover, there is no such complexity in the operations or the product that would
hinder is diffusion.

3. Is the product designed to meet the varying needs of different household

members?
Ans. As we mentioned above, the product is position itself as family-friendly. So, there must be
a suitable product design to meet the needs of every member of household. And there is. Like
we mentioned about separate menu for children and adults according to their choices, and
according to the geographical characteristics. The product or the brand is working robustly to
gain information on the psychological traits of customers in order to improve the product
design and make it more flexible.

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4. Will the product be perceived in a manner consistent with the desired image?

Ans. Absolutely, it would. McDonald’s has efficiently described its frame of reference, points of
difference, and points of parity to be complete and properly understood by the consumer that
about what the product is. Moreover, the various advertising and marketing campaign would
play a critical part towards it. The social media marketing, and the interactions, the CSR
activities, and many other information would also contribute towards it. Additionally, for a
brand like McDonald’s it would be an advantage to be studied, there are various presentations,
assignments, and papers on McDonald’s that are really good to build the desired image.

5. Will the product satisfy the key purchase motives of the segment?
Ans. Of course, it would. It would satisfy the need of hunger, the need for hygienic food, the
need for efficient service, the need of pocket friendly purchase, and the need for self-
achievement. McDonald’s is operating mainly for these motives.

6. Is the product consistent with the segment’s attitude toward an ideal product?
Ans. Yes, we can see that it is hygienic, in diverse variety, according to the tastes and
preferences, according to the pockets, with efficient service, and a rich loyalty or positive brand
image. Therefore, we can say that the product is consistent with the attitudes of the segments
as the ideal product.

7. Is the product appropriate for the various potential usage situations?

Ans. As we have discussed above that McDonald’s are providing breakfast services and lunch
services with separate menus. That means the product fits different meals w.r.t their times and
specific requirements. Moreover, McDonald’s fulfil the requirements of refreshment food by
providing snacks, ice creams, and shakes.

8. Does the product or brand perform better than the alternatives on the key set of
evaluative criteria used by this segment?
Ans. We can say that they perform well up to some extent of evaluative criteria. Like if a
consumer is evaluating on the grounds such as past experience or a peer review, then there is a
high probability of performing well amongst the alternatives. However, if a consumer judges on
the grounds like price structure and suitability or availability, then there may be a relatively low
probability.

9. Will the product perform effectively in the foreseeable uses to which this
segment may subject it?
Ans. It depends on the category or the frame of reference of product. A food product may not
have some robust kind of foreseeable uses but there is a possibility of change of demand or a
drop in demand, obsoletion of the way they operate, new eating patterns and trends, new
dishes, new cultures, cases like these could be probable. About McDonald’s they have already

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proven them as much flexible with changing environment and rapidly changing business
environment.

10. Will the product perform as well as or better than expected by this segment?
Ans. Product could perform well if the brand or the company would operate efficiently and
exceed the expectations of the consumers. It could be done by surprise campaigns that would
attract consumers, a good staff behavior, complementary meals, membership services, and may
be discounts and vouchers. The best part would be played by the taste and wholesomeness of
the food. The meal should be proper and worthy of the price to satisfy the consumer, the
consumer must not think that it is too less for the price they’ve paid.

CUSTOMER SATISFACTION & COMMITMENT

Marketers must produce satisfied customer to be successful in the long run. It is often to a
firm's advantage to go beyond satisfaction and create committed or loyal customers.

1. What factors lead to satisfaction with our product?

Ans. Success of McDonalds depends on their belief that "listening to consumer is vital'. Factors
that lead to satisfaction are there quality food, quick services, well-mannered employs,
excellent ambience& not only this McDonald's offers different services for different age groups.
Like they offer fun happening things & toys to catch the attention of children so that they want
their parents to take them to McDonald's. For businessmen they have a quick & affordable bite
for businessmen, they can manage to have a quick and affordable bite.

2. What factors could cause customer commitment to our brand or firm?

Ans. The factors that cause customer commitment to McDonalds are

 Cultural factor
 Social factor
 Personal factor
 Psychological factor

CULTURAL FACTOR
Consumer's wants & behaviors are mainly affected by culture. That's the reason McDonalds
design their food menu according to different cultures & understood consumer buying
behavior. For example, in India they design a menu considering their problems with cow meat.
Similarly, they use different marketing strategies for different culture just to make customers
committed to them

SOCIAL FACTOR
Along with consumer buying behavior, social factor also effects consumer responses& as family
members play vital role in influencing, so to make customers committed, McDonalds must take
social factor in account

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PERSONAL FACTOR
As different people of different age groups have different perceptions. So in order to make
customers attracted& committed with product, McDonalds target almost every age group from
kids to adults & business people also.

PSYCHOLOGICAL FACTOR
 Four factors that impact consumer are motivation, learning, attitude, perception & beliefs
People have various needs which are of different nature, like some are more considerable as
compared to others. Needs become motivation when it is more vital than other & direct
consumer to hunt for satisfaction. For illustration McDonalds provide delicious verity of food
items such as fries, burgers, wraps etc. As customers have different attitude& belief towards
these products. So, marketers try to change such belief and attitude by different campaigns also
by providing good services, to portray a good impression so that consumers will come back
again.

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