1.1. Market Position
According to Kotler, “Market Leader is the firm with the largest market share in an industry; it usually leads other firms in price changes, new product introductions, distribution coverage and promotion spending.” McDonald’s market position both within Australia and throughout the world is the market leader.
Hungry Jack’s, however, is positioned more as a market follower.
Some may argue that Hungry Jack’s is more of a market challenger than a follower, and that it is fighting to increase its market share. However, I feel that they don’t really present any offers to challenge McDonald’s, for example when McDonald’s was offering 2 dollar burgers Hungry Jack’s did nothing to counter this.
1.2. Target Markets
The definition of the target market could be, “A set of buyers sharing common needs or characteristics that the company decides to serve.” – Kotler et al. There are three components involved in target marketing that can be further broken down into six individual steps. These are:
The Term Paper on Hungry jacks annual report
Forward HUNGRY JACK’S is proud of its reputation that the ‘Burgers are Better at Hungry Jack’s’. In particular Australia’s favourite burger the ‘Whopper’! We provide customers with high quality, convenient food, served quickly in a clean safe and pleasant environment at a value price. Our packaging plays an important part in delivering our customer promise and is designed to be minimal by nature, ...
•Market segmentation
– Identify bases for segmenting the market
– Develop profiles of resulting segment
•Market targeting –
– Develop measures of segment attractiveness
– Select the target segment(s)
•Market positioning –
– Develop positioning for each target segment
– Develop marketing mix for each target segment
McDonald’s has used demographic variables. Most segments of McDonald’s targets are broken-down into age and lifestyle stage; this is probably because they are easily identifiable and consumer needs and wants vary closely with demographic variables. McDonald’s primary target markets are seniors, adults and teenagers, but the most heavily targeted segment is children.
Like McDonald, Hungry Jack segments their market using demographic variables. They also segment their market into seniors, adults, teenagers and children. However, unlike McDonald, they primarily target the teenagers and adults segments.
1.3. The Marketing Mix
The final step in target marketing is developing a marketing mix. These tools are also known as the four P’s and in the case of services, the seven P’s. They are product, price, promotion, place, people, process and physical evidence.
1.3.1 Product
The products that McDonald’s and Hungry Jack’s sell are almost identical; hence it becomes essential for them to differentiate themselves. Hungry Jack’s uses the phrase “The burgers are better at Hungry Jack’s” to suggest they have a superior tasting product. While McDonald’s put more emphasis on the service of their staff and the overall experience not just the physical product.
1.3.2. Price
McDonald’s have regular “specials” such as two-dollar burger which competitors find difficult to follow. As they are market leader they obtain largest revenue, so can afford to have these specials. McDonald’s generally use a value-based approach to pricing, looking to give consumers the best value for money. Hungry Jack’s use a more competitor-based approach to pricing. Being a market follower they tend to follow trends McDonald’s set when they can afford to.
The Essay on Ansoff's Product Market Grid
The Ansoff product-market matrix helps to understand and assess marketing or business development strategy. Any business, or part of a business can choose which strategy to employ, or which mix of strategic options to use. This is one simple way of looking at strategic development options: Each of these strategic options holds different opportunities and downsides for different organizations, so ...
1.3.3 Promotion
McDonald’s use a number of different methods to retain high awareness and promote their image, including: •Advertising (television, radio, billboards, etc.),
•Sponsorship (AFL, local basketball, Ronald House),
•Sales promotion (e.g. the two-dollar burger),
•Direct marketing (through birthday clubs, etc.) and
•Publicity (McHappy Day)
Hungry Jack’s promotion efforts are not quite as ferocious. They tend to just maintain awareness through television advertising and billboards. They occasionally use sales promotion to persuade customers to try new products. Hungry Jack’s also use direct marketing through ‘Kids’ Clubs’.
1.3.4. Place
McDonald’s and Hungry Jack’s have very similar “place” components. McDonald however holds a different place in the consumer’s mind. This is due to the image built through promotion (price is fairly similar).
McDonald’s is seen more as a fun place for children through tools such as Ronald Mc Donald, while Hungry Jack’s is seen more as merely a place to eat. 1.3.5. People
Both McDonald’s and Hungry Jack’s use their staff to emphasise a “friendly” environment and to promote the: “service” element of the product. Staff adopts the ideal that “the customer is always right”. People are ultimately part of the product; therefore they must perform to customer expectations. This is an approach that is constant throughout any service industry.
1.3.6. Process
Both organizations have processes such as Drive-thru, EFTPOS, Dine-In, WiFi facility that is seen as a convenience, makes the product easier to consume.
1.3.7. Physical Evidence
For McDonald’s and Hungry Jack’s a consumer is likely to judge aspects such as the quality of burger or product they bought. Aspects such as the appearance of staff and the store are also involved.
2. CONCLUSIONS
When comparing McDonald’s and Hungry Jack’s marketing mix, the major difference is although Hungry Jack’s and McDonald’s have similar elements of the marketing mix McDonald’s use the marketing mix more evenly. They promote their product through elements like service, price, people and process. Hungry Jack’s are not as heavily promoted and are more interested in promoting just the product. The reason for this is to differentiate them from the McDonald’s by showing more time is taken, making sure consumers receive a higher quality product.
The Essay on This report based on 4Ps theory analysis Head & Shoulders products and promotion
Introduction The Procter & Gamble (P & G) was founded in 1837. Procter & Gamble researchers started making a new anti-dandruff shampoo in 1950. (Procter & Gamble, 2010) the new anti-dandruff shampoo is Head & Shoulders. Head & Shoulders is an old brand. In 1961 for the first time it entered the US market, but now it is a modern product, because “Head & Shoulders shampoo ...
References
•Adam, S., Armstrong, G., Brown, L., Kotler, P., (1998), Marketing, (4th edn.), Prentice Hall, Australia.
•Barnhart, C. L., Barnhart, R. K., The World Book Dictionary: A-K, (1988), World Book Inc., Sydney.
•McDonald’s Corporate website, http://www.mcdonalds.com.au/
