Last Updated 06 Jan 2022

McDonalds Marketing techniques: Ansoff matrix – growth strategy

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McDonalds Marketing techniques: Ansoff matrix – growth strategy.

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a) Product development

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Product development is an Ansoff matrix technique when a business will, change certain characteristics of an existing product to meet customer’s needs; they may call the changed product “new and improved” or may give it a new title all together. McDonalds has done this in the past in 2007 when they tried to develop a new burger called the “Big ocean burger” this was used to replace another fish based burger which was not selling as well. Within the first week the “big ocean burger” was not selling well and was taken off the menu in only a few months of its initiation.

B) Downsizing

Downsizing is when a business will fire some employees in order to make more space, or be able to focus on one place at a time. McDonalds has done this in November 2002 the business said that they wanted to close up to 175 restaurants and terminate up to 600 jobs and close down in three countries that were located in the middle east and northern America because it needed to get rid of some worldwide costs. But the consequences of this were that McDonalds missed its 2002 earnings forecast.

C) Making redundancies

Making a redundancy is when a company will fire an employee on the basis that they were not fulfilling their post properly, and want to get someone to replace them. McDonalds has done this because in 2011 over 1,000 employees were made redundant in Saudi Arabia because the company could not afford it, so they had to cut some employers.

D) Brand building

Brand building is when a business will enhance their brand by advertising directly and promoting it though event sponsorship. McDonalds does this by advertising everywhere possible, they have posters in the subway advertising cheaper prices and flyers on the bus about new products they have made.

E) Diversification

Diversification is when a business will begin by making a product or delivering a service in one market, but then moving into a new market altogether for example Nokia began by selling tires, but they went into selling mobile phones. McDonalds has begun this by selling toys in children’s happy meals they have begun to manufacture toys for children and sell them and make profit off of them.

Oxfarm - Marketing techniques: Ansoff matrix – growth strategy.

Description:

a) Product development

Oxfam does this but not with products with their services, with fair-trade they have begun spreading their businesses to different parts of the world such as Africa and India.

b) Market development

Oxfam does this by trying to develop with the private sector and working alongside them.

McDonalds Marketing techniques: Ansoff matrix – growth strategy essay

Related Questions

on McDonalds Marketing techniques: Ansoff matrix – growth strategy

How does McDonald's use the Ansoff Matrix?

McDonald Corporation often uses Ansoff Matrix’s growth strategies, to focus on the firm's present and potential products and markets & customers by considering ways to grow via existing products and new products, and in existing markets and new markets. There are four possible product-market combinations of Ansoff Matrix of Mcdonald's are given.

How does McDonalds use product development as a growth strategy?

Product development is the second intensive growth strategy of Ansoff growth matrix. McDonalds uses it as a secondary strategy to achieve growth objectives. This strategy involves the development of new products or modification in the current product lines to make them new to current customer base.

Does McDonald's need a diversification strategy?

Diversification is not the best of the idea for the company because it can’t afford to make new products in the new markets. It’s actually not possible with the franchisee system that McDonald’s adopts.

How does McDonalds adopt the focus strategy?

McDonalds adopts the focus strategy both in terms of low cost and offering the best value. The low-cost focus strategy is adopted by serving the needs of a niche market segment at the lowest possible price.

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