McDonald’s “Family Box” Product Line

This product line has the Mcvalue box and McFavorites Box. McValue Box is collectively luxury products meant for family consumption for pleasing every person in the group. One is expected to pick two burgers of different flavors: Big Mac, McChicken, Quarter Pounder, Cheeseburger or Chicken and Cheese, with Family Size Fries and 4 x Small Soft Drinks. The menu contains individual items with information regarding nutrition, allergens, and ingredients it contains. The McFavourites Box from (Australia)comes with client’s choice of either of the four burgers; Quarter Pounder, Big Mac, Cheeseburger, and McChicken. It conforms to the work out of order.

Price

The pricing strategy employed for the case of McDonald’s ’’family box“ is competition-based, as it entails price bundling and psychological pricing. Price bundling allows the firm to entirely offer meals and other product bundles at a discount. Regarding mental pricing, the product line settles for prices that are considerably more affordable. For example, McDonald’s Family McValue Box containing 4 Burgers, Family Fries, 4 Soft Drinks goes for $19.95. The primary assumption regarding elasticity of demand adopted by the product line is that as the product prices decrease to accommodate more consumers, the amount of quantity demanded by consumers significantly increase as well. For the above case, there exists an inverse relationship between the quantity of food demanded and commodity price.

Places

Restaurants and kiosks are the most convenient physical locations, and joints considered the prominent places where the product is sold. It further adopts the direct distribution channel were a client places an order, and possible location to enable vendors to deliver it on time, packed in a cute pleasing box. These websites are located on McDonald’s mobile app as well as Post mate’s website, that further allow clients to directly claim special deals by finding nearest McDonald’s restaurant locations. It is a marketing mix that enhances diversification of McDonald’s intensive growth strategies, particularly market penetration. The websites display available offers for a day, as well as its timing.

Promotions

The major promotion strategy employed for the McDonald’s ’’family box” is the provision of purchase offers. For example, upon purchasing a family box, one is entitled to various discounted add-ons, entailing $4 Happy Meals, $6 for Ten Nuggets and $2 Sundaes. The product line offers discount coupons and freebies for particular products, which are made known to people via radio, TV, online and print media. Essentially, McDonald’s considers the sales promotions, direct selling, advertising, and Public relations tactics during its promotional mix. Basically, it adopts to the Integrated Marketing Communications to ensure that all communication channels are directly linked together for purposes of conveying a similar message. It provides all promotional tools operate in unison, in tat, the offers are posted online through the TVs.

People

The staff comprises of dedicated people that carefully manage the entire production process with the aim of working on client’s final judgment on the quality and value of the product. The frontline, therefore, displays the appropriate attitude, knowledge and physical appearance wen delivering the products and services. Since tangibility is critical to product service delivery, client interactions are entirely quantified, measured and improved using system regularity. For reasons of overcoming variability, the service marketing professionals within the firm have developed a special service packages. Standardizing service offerings have enabled McDonald’s ’’family box” product line to be specific in identifying service and quality deliverables hence decreasing variability to meet the expectations of clients simultaneously. In this context, variability is notably the point of differentiation because it facilitates service customization and flexibility. Perishability is avoided by scheduling delivery of products via appointments or introduction of additional site personnel to ensure several clients are attended to within a short period. 

Process

McDonald’s ’’family box” product line as for a long time maintained a high level of satisfaction since the product line puts into consideration the local tastes and preferences of diverse people, maintaining product and service standardization during menu development and engagement in marketing efforts. Collectively, all these factors meet the customers’ satisfaction levels.  There is a high level of involvement because staff and consumers are collectively considered part of the firm’s success, hence, addressed appropriately.

Physical evidence

The tangible signals indicating the value and quality of services provided trusted recommendations clients are subjected to, appropriate staff interactions with consumers by using clear, positive and precise communications wen giving notification. Basically, the ability of assigned staff to adhere to the brand promise positively impacts on the success of the firm. Use of quality equipment wen serving and packaging, reasonable pricing adopted in the product line as well as a safe environment for product and service delivery. The logo symbols used during promotions provide a great level of tangibility as they offer an embodiment of marketing for the organization. The premium pricing adopted at McDonald’s ’’family box” product line reflects high quality standards.

Competitive Advantage

Comparison between McDonald’s and two direct competitors; KFC and BURGER KING

Variable

McDonald’s

KFC

BURGER KING

SIZE

The firm serves close to sixty-nine billion consumers within one hundred countries globally

The brand has as exponentially grown and expanded further to more than twenty thousand other branches.

It contains close to twenty thousand locations in more tan 120 states globally

It has more than fifteen thousand locations within 100 states.

It has entirely positioned itself as a point of reckoning across the world

STRATEGY

Cheat prices are the firm’s major competitive advantage as McDonald’s upholds extensive utilization of economies of scale for achieving the resultant cost advantage.

It focuses on speed of customer service delivery without compromising the quality of services provided.

It has maintained tis great advantage over fast food chains

KFC uses a combination of international market expansion and cost leadership strategies. It further utilizes franchising and licensing procedures towards the new market entry.

Specializes in Fried chicken and burgers that attracts a large number of world wide consumers

Diversification is considered a point of focus since the firm focuses on a narrow market segment by specializing on an area that directly appeals to a niche consumer base.

It strives at being the cost leaders by offering foods at affordable prices to attract a broader market segment

The firm has continued expanding its menu and brand

MARKET SHARE

It has a high market share with its business booming across 100 states internationally

It has a high market share with its business booming across 120 states internationally

It has a high market share with its business booming across 100 states internationally

PRODUCT QUALITY

Taste universality is McDonald’s competitive advantage.

Product quality is equally maintained differentiation strategy since the firm offers very superior products at the same costs offered by other companies with inferior products.

KFC fried chicken has globally been hailed as the best chicken quality worldwide.

The finder-licking slogan embodies ow quality, and essential their products and services are.

If offers desserts, soft drinks, hot dogs, chicken and French fries of good quality.

Its delicacies are loved all over the world 

REVENUE GENERATED

As of 2016, the firm ad 24.6 billion dollars wort of revenue

As at 2013, the firm’s revenue stood at 23billion dollars

It is one of the most abundant fast foods restaurants

It had an income of over 18.4 billion dollars as per 2015 report

Comparison between McDonald’s and an indirect competitor; STARBUCKS

Variables

McDonald’s

Starbucks

SIZE

The firm serves close to sixty-nine billion consumers within one hundred countries globally

Starbucks serves in almost 23,700 operational locations world-wide with more than 238,000 employees worldwide

STRATEGY

Cheat prices are the firm’s major competitive advantage as McDonald’s upholds extensive utilization of economies of scale for achieving the resultant cost advantage.

It focuses on speed of customer service delivery without compromising the quality of services provided.

It has maintained tis great advantage over fast food chains

The firm continually innovates new products for attracting more customers.

It is an element of the marketing mix that entirely covers diverse organizational outputs of goods and services that a firm promptly provides to potential target markets.

It majors in making smoothies, Frappuccino beverages, hot and cold drinks and espresso. 

PRODUCT QUALITY

Taste universality is McDonald’s competitive advantage.

Product quality is equally maintained by differentiation strategy since the firm offers very superior products at the same costs offered by other companies with inferior products

It supports product quality by monitoring the local tastes and preferences, and enhancement of product and service standardization during menu development

REVENUE GENERATED

As at 2016, the firm had 24.6 billion dollars wort of revenue

As at 2015, the firm ad generated revenue of 19.16 billion dollars following the sales of the coffeehouse.

Comparisons between Point of Difference and Point of Parity within the marketing mix, positioning and target markets

They both require an establishment of appropriate balance for generating market success

Bot aspects relate to marketing mix and positioning since they provide offerings to major market competitors

They both contain essential production elements of pricing and locations, promotion activities, and ow they collectively affect the market performance of a firm

They both focus on the possibilities of how a chain of fast foods outlets impact or affect the revenues the topmost market leader

They are built upon the competitive advantage of high quality ingredients and menu flexibility in their stores and restaurants for accommodating their target markets

References

Ibis World report: http://clients1.ibisworld.com.au.ezproxy.newcastle.edu.au/?u=CTSG2PjPdH3LGpo6Jrw9kw==&p=ulffJbmsTfeZU/YvSy7Mpg