McDonald’s E-Marketing Plan
McDonald’s is the leading fast food corporation in the world. The fast food giant serves more than sixty eight million consumers on a day-to-day basis spread across more than 119 nations. Since 1974, McDonald’s has seen rapid expansion in Singapore where it operates a huge number of outlets throughout the country. It serves a wide variety of fast foods that include burgers, coffee, sandwiches, and other fast food products in well-conditioned stand outlets (Toombs, 2014). McDonald’s operates in a highly competitive industry in which other famous corporations that include Sub Way, Wendy’s, as well as Burger King run some of the most famous brands that include KFC, Taco Bell, as well as Pizza Hut. The company however enjoys a competitive advantage mainly due to its ability to maintain high quality standards despite location constraints that it encounters in some regions (Ryan, 2012). This essay evaluates the environmental situation in Singapore as well as outlines the plan, objectives, budget, and evaluation process for the E-marketing strategy that can be employed at McDonald’s corporation in Singapore.
One of the reasons for the rapid economic growth and development in the country is the political stability which been experienced in the country over the past decades. The country is very peaceful thus making it attractive for many investors from both the local and international business communities. Unlike its neighbors, which have bore the brunt of civil wars, the country’s political system has played an integral part towards its social, political and economic success. Singapore has a democratic political system, which allows for equal representation of all constituencies in a parliamentary Westminster system. This allows for the implementation of a fair constitution that has been established through a representative democracy that intends to equally favor all the citizens. This aspect of Singapore’s political system is favorable to McDonald’s as it perpetuates its freedom to implement a supposedly successful E-marketing strategy in all its outlets throughout the country (Mauzy, 2011). The country’s executive power lies in the hands of the cabinet, which is usually governed by the prime minster. This is equally favorable to McDonald’s in its attempt to implement a potentially successful E-marketing strategy. This is because the company’s intentions can be discussed by the entire cabinet thereby enhancing significant government support (Grzegorz, 2012).
Singapore has a huge population estimated at 5,456,700 people including citizens, permanent residents and foreign students and workers. This is favorable to McDonald’s as it will be able to reach out to a huge number of consumers that may be interested in exploiting the E-marketing services to access a wide range of the company’s fast food products. Due to scarcity of land, most citizens in Singapore are concentrated in public apartments that are mainly located in towns (Grzegorz, 2012). This creates a favorable opportunity to McDonald’s as it can easily strategize its market niche along this geographic characteristic. Singapore reports a low unemployment rate that is estimated at 4%. This indicates that most individuals within the target age bracket can afford technological instruments that they can use to access McDonald’s E-marketing platform as well as be able to purchase a wide variety of the company’s fast food products.
Eighty seven percent of Singapore’s citizenry have an easy access to mobile phone services. This is beneficial to McDonald’s as most targeted consumers can easily access the E-Marketing platform using their mobile phones. The country has a rich internet network that is usually provided through a residential service program (Dalal, 2013). This means that individuals can easily access internet services from their households, which are beneficial to McDonald’s as most of its target consumers, can easily access the E-marketing platform from their homes.
Singapore is the world leader as pertains to the number wealthy individuals with one out of every seven households estimated to have at least one million US dollars. This is beneficial to McDonald’s as it means that most individuals in the region can afford the various fast food products marketed through the E-marketing platform. Acute poverty in Singapore is uncommon, which indicates that there is only a small population that can fail to access McDonald’s E-marketing platform or afford a variety of fast food products (Bill, 2011).
McDonald’s has the largest market share in the fast food industry serving more than 69 million individuals through over 34,000 outlets in more than 119 nations. This ensures a high popularity, which increases easy acceptance of its wide variety of fast food products. The company operates the most popular brand in the industry valued at $40 billion. This means that the company can easily win consumers’ loyalty to purchase new products that may be marketed through the online platform (Audrey, 2012). McDonald’s operates on a two billion US dollars budget on advertisement, which is more than the amount budgeted for by the subsequent fast food restaurants combined. This is beneficial to the company, as it will ensure that all the resources required to implement the new E-marketing plan are fully catered for (Anthony, 2013).
McDonald’s experiences negative publicity as it is highly criticized for selling highly unhealthy food products to its consumers. The company is for example criticized for offering food products that can lead to obesity mainly among young children, who constitute the company’s primary client base. This challenges the company’s efforts to introduce an E-marketing plan, which might inhibit its capacity to generate overall benefit to the company at large (Alfino, 2008). Despite McDonald’s attempts to integrate healthy food product choices, its food menu is largely made up of unhealthy products that can lead to obesity. This reduces the company’s popularity mainly in instances when organizations promoting healthy living protest against unhealthy eating habits (Mehta, 2012).
While there is a growing demand for healthy food products, McDonald’s has a huge opportunity to introduce healthy food products in its menu, which would in return transform its overwhelming weakness into a major strength. The company can for example introduce new more healthy food choices through its E-marketing platform to enable new as well as old customers quickly acquire information pertaining to the new products. McDonald’s has redesigned its emblem and hotel design as well as introduced certain new practices. The company should exploit the E-marketing platform to share these developments with a wide range of consumers, which creates an opportunity for rapid market expansion (Mehta, 2012).
Singaporean fast food industry is already saturated with a huge network of restaurant chains that mainly overcrowd developed economies. This proves to be a huge threat for McDonald’s especially because it only gained stability in the country in 2012 (Cunha, 2013). The growing trends towards adopting healthy eating habits proves to be a huge threat to McDonald’s, which saturates its food menu with unhealthy food products. Singapore has rapidly emerging local fast food stands that can easily employ a local approach in offering food products that satisfies the local tastes (Talwar, 2012).
The target population for the E-marketing strategic plan will be segmented along geographic, psychographic, behavioral, and demographic aspects. In terms of geographic segmentation, the market that will be targeted using the proposed E-marketing plan will mainly include Singaporean citizens that are mainly concentrated in cities. This is because this population has an easy access to a huge internet network that is readily available in public residents situated in Singaporean cities (Cunha, 2013). Individuals residing in rural areas can also be included in this segment as long as they will have access to the internet mainly using mobile phones, tablets and other electronic devices. In terms of demographic segmentation, the target market for the E-marketing strategy will include individuals aged between five and sixty years particularly those belonging to upper and middle social classes. As pertains to behavioral segmentation, the target market for the intended marketing strategy includes individuals that are fond of “eating out” during free time. These will include individuals that take breakfast and lunch dates with friends, family and work mates. In terms of psychographic segmentation, the E-marketing plan will target individuals that perceive “eating out” as a form of unique lifestyle (Talwar, 2012).
The specific individuals constituting to the target population for the E-marketing strategy plan will include young children, teenagers, youths, and working adults. From the market segments established, working adults seems to be the most profitable target population compared to young children, teenagers and adults. This is because working adults are bound to be more sensitive to lifestyle, easily access internet services without any hustles, as well as afford a huge variety of McDonald’s fast food products without much struggle.
Efficiency will be a key differentiation aspect that will be integrated in the E-marketing strategic plan so as to give McDonald’s a competitive advantage over other players in the fast food industry. The company will use the E-marketing platform to routinely direct customers to the restaurant outlets that will be located along highways where vehicles can easily stop in. The company will also employ online services to enhance rapid ordering processes, which will include indicating specific service time for specific products (Sanjay, 2012). This aspect will particularly give this company a competitive advantage over other restaurants in the industry. This is because customers will be informed beforehand the specific time at which their favorite products will be ready. McDonald’s will also develop its website as well as employ social media platforms that include Face book, tweeter and Instagram to offer customers an online tour where they can be able to view a wide range of products offered at an array of outlets. This will not only allow customers to experience a unique level of innovativeness and creativity but it will also enhance brand image thereby promoting differentiation against other competitors in the industry (Jones, 2013).
McDonald’s intends to position itself as a market leader in terms of timely quality services, quality products, and fair pricing. It will present itself as a twenty-four hour operator that can be viewed as a convenient place where members of the working class can get food even late at night.
Recognizing the important role that E-marketing can play in perpetuating a competitive advantage has seen most organizations adopting the strategy for varying reasons. McDonald’s aims to increase its online presence through its website and online platforms like Face book, Tweeter, video and photo sharing sites so as to enhance brand awareness and recognition. Another major objective influencing McDonald’s intention to employ this strategy in Singapore is to improve its brand identity so as to attract potential new costumers while maintaining the old ones. This is particularly attainable given that the internet is something that cannot be ignored in Singapore and can thus aid in reaching a huge population within a short period of time. McDonald’s also intends to increase its online sale by 20% by 2018. It also intends to increase profits from online sales by 15%.
With a key focus on young children, teenagers, youths and working adults, McDonald’s will put into consideration cultural factors while serving Singaporean consumers. This way, the company will make that it does not market food products that might compromise the cultural beliefs prevailing in this region. Engaging consumers into an online tour can meet this objective where they can explore a wide variety of fast food products that meet the local taste. The company will also ensure that there is a wide variety of food choices to meet the requirements for various categories of target consumers. McDonald’s will also incline its marketing perspective towards healthy eating by outlining the various foods that can increase consumer-eating experience. Consumers, for example, may be informed about the replaced saturated oil with Trans oil in making the renowned McDonald’s French fries (Kellner, 2013).
Although a certain amount of food products are characterized by high price tags mainly those intended for middle and high-class consumers, the company will use its website among other social media platforms to inform consumers about food products with competitive prices. Customers will for example be informed about the “Value Mc Savers” as well as the “Mc Value Meal”, which are high quality meals offered at affordable costs. Clarification will also be offered on the high quality linked to products that might seem expensive (Toombs, 2014).
McDonald’s intends to employ an online platform to market its products. It will thus use its website, emails and social media platforms like Face book, tweeter, and Instagram to take orders from customers. This will be followed by doorstep delivery or drive-in-and-pick, depending of customers’ choices. In terms of product distribution, McDonald’s has 150 restaurant outlets across Singapore. The outlets are built in open retail locations such as shopping malls and gas stations (Sanjay, 2012). The company also has an express café intended for working individuals and on-the-move motorists. These locations will be posted in the E-marketing platforms to help customers indentify locations that will be most convenient for them (Ryan, 2012).
Fast food customers go for fair price deals and promotions even before they can make actual purchases on fast food products. McDonald’s will use its website and social media platforms that include Facebook, Instagram, and Twitter to create and increase customer awareness and enhance product image. It will also use the platforms to advertise products offered at promotional prices mainly during festive seasons to attract more children than adult consumers. The platforms will also be used to advertise upcoming events during which a huge variety of food products can be offered at promotional prices (Mauzy, 2011).
The implementation of the E-marketing strategy plan will be summarized in a table as follows:
|Strategy||Activity description||Specific duties||Time frame|
|Product||-Redesign McDonald’s Singapore website to enhance online marketing||Finance managers: funding the activities
IT experts: oversee the implementation process
Marketing experts: describing web content
|During preparation in December 2015.
Continuous maintenance through 2015-2018.
|Upgrade McDonald’s Singapore website to facilitate online transaction||Finance managers: funding the activity.
IT experts: redeveloping the website to help meet the target audience requirements.
Marketing staff: describing web content.
|During launching: 2015|
|Launch interactive social media platforms||Finance managers: funding the activity
IT: developing content and implementing it on social platforms
Marketing staff: describing posted content, responding to online chats.
|During preparation in December 2015, continuous through the entire period|
|Price||Quoting product prices||Finance managers: quoting prices that are reasonable for various products.
IT experts: updating information relating to product pricing
Marketing staff: explaining prices relating to various products
|Launching promotional prices||Finance managers: quoting promotional prices that would not comprise profitability of the organization.
IT experts: updating the website with quoted promotional prices
Marketing staff: explaining promotional prices in relation to certain events.
|Place||Direct distribution||IT experts: updating and maintaining online operation
Front office personnel: receiving orders and responding to customer queries.
|Promotion||Advertisement through social media platforms||IT experts: Creating marketing accounts on Face book and Instagram
Marketing staff: updating marketing information and communicating with different customers.
|Product||Redesigning McDonald’s Singapore website||Increased access to company website following integration of understandable information and authentic images.||$50,000 at the first instance, $50 per annum for maintenance
|Upgrading McDonald’s website to enhance online transaction||Increased utilization of the company platform to conduct online transactions by 20% after implementing user friendly website||$30,000|
|Launch interactive social media platforms||Quick response to chat messages (within 60 seconds)
Increased usage of company products (by 15%) after using the social media platforms
|$30 per month for maintenance
|Price||Quoting product prices||Generating reasonable operating online profit:
Less than 25%;poor performance
Equivalent to 25%; average performance
Above 25%; excellent performance
|Launching promotional prices||Sales increase by 20% following a promotional campaign. Sales above, equivalent to or below 30% will indicate excellent, average, and poor performance respectively.||
|Place||Direct distribution||Order confirmation sent to the customer through online chats within 30 minutes.
Ordered products picked/delivered within 2 hours.
|$ 10000 per month to cover for product distribution cost
|Promotion||Advertisement through social media platforms||A minimum of 500,000 followers on Instragram
500,000 funs of face book, 100 likes per product photo.
Alfino, M. (2008). McDonaldization Revisited: Critical Essays on Consumer Culture. WestPort: CT: Praeger.
Anthony, F. (2013). “A Visualization Pilot Study for Hypermedia: Developing Cross-Cultural User Profiles for New Media Interfaces.” Journal of Educational and Hypermedia, 11(1):11-56.
Audrey, C. (2012). “Singapore’s Economic Internalization and its Effects on Work and Family.” Sojourn: Journal of Social Issues in Southeast Asia, 15(1):77-93.
Bill, M. (2011). “Do Traditional Strategic Concepts Apply in the E-Marketing Context?” Journal of Business Strategies, 18(2):45-98.
Cunha, D. (2013). Singapore in the New Millennium: Challenges Facing the City-State. Singapore: Institute of South EastAsia Studies.
Dalal, M. (2013). “Customer Relationship Management Strategies for the Internet.” Academy of Information and management Science Journal, 4(1-2):118-126.
Grzegorz, M. (2012). “Virtualization of Marketing.” Contemporary Management Research, 8 (3):81-109.
Jones, G. (2013). Multinationals and Global Capitalism: From the Nineteenth to the Twenty-First Century. New York: Oxford University Press.
Kellner, D. (2013). Media Spectacle. WestPort, CT: Routledge.