The way a company markets their product is essential in the competitive marketpl
ID: 2746573 • Letter: T
Question
The way a company markets their product is essential in the competitive marketplace. In the food industry for instance, Wendy's and McDonalds have taken totally different approaches when it comes to product marketing. Wendy's has taken the adult approach, basically overlooking the market of the children. McDonalds, on the other hand, has long pursued the children's market through their advertising and toy giveaways. Taking a look at the perspectives of these organizations and their different approaches toward attaching opportunity and facing potential threats, which company do you think is positioned better going forward in the future? Explain each position in detail.
Explanation / Answer
The product marketing strategy is essential for setting a product future roadmap and subsequent product releases. The product marketing strategy enables the company to focus on a specific target market and consumer group, instead of trying to be everything to everyone.
McDonalds’ Position:
Target audience of McDonalds are children. This is evident from every aspect of McDonalds from colourful store design to their mascot and bundling toys with meals. This good marketing strategy because they attract customer from young age. This will help to build loyal customer base who would hooked with the product for long time. Thus it would increase customer lifetime value (sum of all revenue across entire life of the customer). Also it is easy to attract children compare to adults.
Wendy’s Position:
Wendy’s targeting only adults while McDonalds may not be directly targeting adults but the children would form adult customer group for McDonalds in future. Thus McDonalds have clear advantage in compare to Wendy’s. Also customer acquisition cost for children is lower than same for the adults. Therefore McDonalds is better positioned going forward.
I hope this will help. Good Luck.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.