McDonald's Segmentation, Targeting and Positioning

00:04:48
https://www.youtube.com/watch?v=tKOITmV0NfU

Summary

TLDRThe video explores McDonald's targeted marketing strategy that segments consumers to cater to their specific needs. Unlike traditional brand management, McDonald's has segment managers who focus on distinct groups, allowing for more precise consumer insights derived from continuous market research. These insights inform product positioning and advertising, tailoring messages to resonate with varied demographics, such as promoting the Southwest Chicken Salad differently to Hispanic and African-American consumers. This strategic segmentation has resulted in increased sales and strengthens the connection between McDonald's offerings and consumer preferences.

Takeaways

  • 🍔 McDonald's uses segment managers to target specific consumer groups.
  • 📊 Continuous market research provides insights into consumer behavior.
  • 🎯 Target marketing increases relevance for diverse demographics.
  • 🥗 Southwest Chicken Salad is marketed differently to various segments.
  • 👩‍👧 Focus on young adults and women is key to McDonald's strategy.
  • 🔍 Consumer insights inform compelling product descriptions.
  • 📈 Effective targeted ads lead to increased sales overall.

Timeline

  • 00:00:00 - 00:04:48

    Companies use target marketing to make products relevant to different consumers. McDonald's uniquely employs segment managers instead of traditional brand managers, focusing on demographic groups such as young adults, women, and various ethnic communities. This approach allows McDonald's to maximize its targeting efforts by gathering consumer insights, which inform how to position products effectively. Insights are derived from market research that explores consumer values, needs, and lifestyles, leading to tailored advertising strategies. For instance, the Southwest Chicken Salad is marketed differently to the general population versus specific demographics, highlighting appealing features according to each group's preferences. This strategic targeting has successfully increased McDonald's sales and reinforced its market presence.

Mind Map

Video Q&A

  • How does McDonald's segment its market?

    McDonald's uses segment managers instead of traditional brand managers, focusing on specific consumer groups like young adults, women, and various ethnicities.

  • What are consumer insights?

    Consumer insights are information about consumer behavior gathered through market research to tailor products and marketing strategies.

  • Why is targeted marketing successful for McDonald's?

    Targeted marketing allows McDonald's to effectively reach and resonate with different consumer segments, increasing overall sales.

  • What role does market research play in McDonald's strategy?

    Market research provides continuous data on consumer segments to inform product descriptions and marketing campaigns.

  • How does McDonald's advertise its Southwest Chicken Salad?

    Advertising for the Southwest Chicken Salad varies by segment, focusing on different aspects like variety for the general market and heartiness for African-American consumers.

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Subtitles
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  • 00:00:06
    in order to make their products relevant
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    to a variety of consumers companies use
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    Target marketing marketers identify
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    specific segments of the population and
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    position their products to appeal
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    specifically to that segment at
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    McDonald's segmenting is Central to
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    their marketing strategy but the burger
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    giant takes a different approach to
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    segmenting than most companies
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    traditional consumer package Goods
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    companies such as Fredo
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    organize their marketing department by
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    brand and so you will have a brand
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    manager on Doritos or a brand manager on
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    lays etc etc at McDonald's instead of
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    having a brand manager on Big Mac and a
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    brand manager on french fries what we
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    have are segment managers and so at
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    mcdonals you will find a director of
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    young adults a director of women mom a
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    director of
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    africanamerican consumers a director of
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    Hispanic consumers Etc so that structure
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    all by
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    itself puts McDonald's in a position to
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    really maximize targeting marketing
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    efforts in order to Target markets
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    accurately McDonald's uses segment
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    insights insights are information about
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    consumer behavior that are developed
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    through market research we're constantly
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    every day all week long collecting
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    information and data about the different
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    segments that each of our marketing
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    people are responsible um you know are
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    responsible for understanding and what
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    we pull from these segments are insights
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    pieces of information that help us
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    understand how to describe our products
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    in a way that will be most compelling
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    for the particular segment consumer
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    insights focus on the values needs and
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    life style of each segment using these
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    insights each segment team creates a
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    positioning profile for every product
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    then the creative team uses these
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    profiles to produce ads targeted to
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    relevant segments as well as to the
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    general
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    population in the case of our southwest
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    chicken salad we learned from our
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    consumer uh intelligence that this salad
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    presented such a cool variety of
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    ingredients that the General market
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    would find that comp sing so if you look
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    at our ads that were targeted to the
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    General market you'll see the emphasis
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    on the variety of fun things in the
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    southwest chicken salad hi can I get a
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    southwest salad with Crispy Chicken and
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    I want that new thing with the grilled
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    chicken and tortilla strips you know it
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    has that real creamy dressing oh and I
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    think some lettuce on the other hand if
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    you look at the African-American
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    consumer advertising we learned from
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    marketing intelligence that the
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    African-American consumer is less
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    inclined to uh cons consider a salad as
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    a substitute for almost any of the
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    sandwiches we have at McDonald's and so
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    uh instead we needed to develop our
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    message in a way that said to this
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    segment this is a hearty
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    filling interesting and exciting salad
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    if you look at our Hispanic consumer
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    segment the southwest chicken salad is
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    full of ingredients that are that
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    resonate with with culture and Heritage
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    and are compelling ingredients to
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    Hispanic segment for a whole different
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    reason the Asian consumer requirement
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    includes variety of taste and tasting
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    new and different things and so what we
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    presented in our advertising that was
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    targeted to Chinese and Korean Americans
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    was the whole notion of this variety of
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    ingredients and a new exciting taste
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    Target marketing has proven to be very
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    successful for McDonald's by
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    understanding the various consumer
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    segments and positioning their products
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    to appeal to each segment McDonald's has
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    been able to increase overall sales at
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    McDonald's there are a couple hundred
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    people who work full-time just keeping
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    the information current and keeping the
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    information coming so that we can use
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    insights to make certain our marketing
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    is compelling and that our marketing
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    efforts do in fact result in business
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    building Market marketing
Tags
  • McDonald's
  • Target Marketing
  • Consumer Segmentation
  • Marketing Strategy
  • Market Research
  • Consumer Insights
  • Advertising
  • Sales Increase
  • Cultural Preferences
  • Product Positioning