Marketing plan Essay Example | Topics and Well Written Essays - 1250 words

Marketing plan - Essay Example This is because Carl’s Jr. was selling the same type of hamburgers but at half the price. Others offer that the accompaniments that were served with the hamburger, mustard/mayo sauce on potato roll to be specific resulted to the failure. The mega campaign which failed was also partially blamed for the product failure as it targeted the adult population only. Still, some customers offer that the high calorie in the burger was the reason behind the product failure to capture the market. Background McDonalds is undoubtedly one of the fastest growing companies in the fast food industry, which is dominated by a host of players. Some of these players include Carl’s Jr, Burger King, KFC, and Pizza hut. These competitors pose a threat to McDonalds as they have conduced to the decrease in profits. This is because of the alternative products that these competitors continue to offer to the customers. McDonalds is a franchise of many companies with only 19% owed by the company. The company has over 33000 restaurants spread across the globe, serving close to 58 million customers. The company also has dozens of branches situated in 119 countries. McDonalds collected an average of $22,744,700 million in revenues from its global branches in 2009 with operating profits standing at $ 6,841000 million. Market Analysis Analysts predict that the fast food industry is growing at a first rate as customers’ demands for fresh quickly served meals surges. One of the dominant key players in this market is the McDonalds. The company is currently at its maturity level in the product life cycle. However, the fast food market faces constant decrement because of factors such as limited expansion sites, increasing operation costs, and market saturation. Vivid competition in the market has led to production promotion techniques such as price cuts, which have resulted to a diminution in profitability in the industry. Normal Forecast Most of the products that fail to capture the attention of customers in the market are not always inferior. In order for a company to succeed in launching a product, management has to undertake an in-depth research on the market. Through such an initiative, the organization can come up with creative ideas on the areas of packaging, market communication, and pricing. All these activities are facilitated through brainstorming with all the departments in the organization. Failure to consult will result to the release of uncompetitive products in terms of price, packaging, and market communication, into the market. The same applied to McDonald’s Arch Deluxe, which despite massive campaign, failed to sustain the market forces. As mentioned above, some of the reasons were high market price, mega campaign fail and poor market presentation. The other reason behind product failure is intensive competition. When many producers offer the same product to the market, the resultant effect will be edacious competition, where only t he superior products in price, packaging and advertising, end-up being selected by the customer. A good example is Carl’s Jr., which blocked the entry of McDonald’s Arch Deluxe. According to Brand marketing (2006, p. 3), Jack Greenberg McDonalds’ CEO, on an interview with the Financial Times consented that the company spent too much time deciding on when to launch the product. Most of the company’s marketing and branding decisions are made at the headquarters in Oak Brook, Illinois. As such, the