First Stage-Marketing Plan Investment

The brand value process begins with the firm investing in the marketing program targeting its actual & potential consumers. This marketing program can be product research & development, design,trade or intermediary support,advertising,promotion,sponsorship,direct or interactive marketing.

McDonalds major investment in marketing activities in the last few years was in its hoardings. All the outlets had hoardings & steamers on display about new offerings & special deals. Not just that for special deals McDonalds used prime location hoardings for the marketing purposes.The other major investment have been in the TVCS McDonalds ran approximately one yearly campaign for a short time period. The TVCs highlighted the brand and focused on it not on the offerings or product variants. This was in total contrast of the hoardings, which showcased the products and different deals over time.

Another major chunk of marketing investment programs have been through Social Media campaigns and advertisements in local newspapers. Social media campaigns focused on spreading Joy, attracting youth while local newspaper advertisements related to new offerings and promotions.

First Multiplier-Program Quality Multiplier

The quality of marketing program depicts the effectiveness of the campaign. It is observed through the following four factors.

Clarity The recent media campaign focused on Open Door They allowing customers to take a tour of the facility to see the way service is being delivered. You can either book a tour of the facility or you can take a virtual tour on the website. This campaign was both run on TVCs and billboards also.

Other campaigns do included the limited time offerings or special offerings like the latest one being the classic beef burger campaign which is a limited time offering. McDonaldss also ran campaign for new menus like the introduction of the breakfast menu.

RelevanceMcDonalds in its advertisements focus on enjoying the food. They are perceived as providers of a clean atmosphere and tasty foodstuff, which make their marketing program count relevant to their customers.They do have separate menus for separate customer segments.Which include Happy meals targeted at the kids and extra value meals for those who are big eaters.

DistinctivenessSocial media campaigns at McDonalds really are distictive. Use of analytics,imaginative characters make them unique in their advertisements. Also the TVCs being run over time all had a unique theme to them.not a regular run of the mill thing.

ConsistencyMcDonalds being a global brand do have the consistency in its flavors to a great extent. And in terms of quality also. This is being portrayed and communicated through its marketing program also.

Customer MindsetCustomer Mindsets challenges Brand managers to look at the world from the customers point of view. This includes the following factors Brand AwarenessThis includes the ease at which customers can recall and recognize the brand. McDonalds brand awareness is highest among its competitors as per the results obtained through brand tracking. The marketing program is one of the most important thing in making the brand awareness increased.

Brand AssociationMcDonalds has very high association among its customers. People associate McDonalds with Joy , Fun and tasty food. It is considered as the place to share good times with friends and family.

Brand AttitudeThe reason behind McDonalds success all over the world is its dedicated belief and uncompromising drive in providing customers the best in terms of product quality, service, cleanliness and value.Service is an attitude in McDonalds.Crewmembers are trained to make customers feel appreciated. Customers are treated with courtesy, attentiveness, respect, and enthusiasm. Brand AttachmentBrand attachment refers to brand loyalty. Customers at McDonalds are found more loyal to the brand as compared to its competitors with 78% people recommending it to their friends.

Brand Activity This refers to customers engagement with the brand. Their participation on social media is way higher than the competitors. People talk about the brand, engage in the activities carried out by the brand. Active participation of customers is visible in competitions carried out on social media as well.

Marketplace ConditionThis includes three different aspects. Competitive SuperiorityMcDonalds has a huge direct competition at such scale. But if in terms of big players or international chains only 2 other competitors are present. McDonalds maintain its superiority by due to its constant quality and its diverse menu. Channel and other intermediary SupportMcDonalds despite having its own home delivery services have started collaboration and got into partnership with different delivery firms by offering them special packages and discounts for their customers.

Customer Size and ProfileMcDonalds has a very high level of awareness among potential customers as well as have a very large customers base with 78% people recommending their offerings.

Market PerformanceCustomers mindset relates to market performance. Their are six main factors which contributes to market performance. Premium PriceCompetitition in last few years have gone too intense. Customers have different options so commanding high price premium is not applicable. However in some specialty products like the Extra Value Meal McDonalds is commanding a premium price but again that price is similar to that of the other competitors

Market ShareMcDonalds has the highest market share as a brand among its top competitors as 57%. This does not include market share captured by local outlets.

Brand ExpansionsMcDonalds has expanded its brand by including new flavors and variety of products.The inclusion of different menus also helped in defining the brand for different market segments

Cost StructureMcDonalds has very low advertising budget as compare to other multinationals. Their cost structure is very effective, as they believe in passing relief in form of price directly to their customers.

High Stock ValueMcDonalds being a large-scale multinational brand has high stock values across the globe. Their parent company stock price around the globe has increased by 6% on the whole.

Investor SentimentThis has four components. Market DynamicsMarket dynamics are changing at a very rapid speed across the world. People are getting more aware of the offerings and have more access to information. McDonalds works in a franchising model but the standards are equally followed around the world. A mix of research organization provides McDonalds with customers information and changing demands other than direct feedback from employees.

Growth PotentialFast food industry in Pakistan is on the rise as do the population ageing 18 and above. So, this provides McDonalds with tremendous growth potential to capture the major chunk of the market.

Risk ProfileMcDonalds despite being one of the leading fast food brand is at high risk due to new entrants in the market and changing dynamics. It is of utmost importance for them to maintain their image and include new products in their category.

Brand ContributionMcDonalds is not a part of any brand however over time many smaller brands have developed under the Mcdonalds umbrella.