MKT00720 Marketing Case Study Analysis of Nike and McDonalds: Assignment 1 Answer
MKT00720 – Marketing Session 2, 2019
Assignment 1: Case Study Analysis
Marketing process is the fundamental action for the growth and development of an organisation. In other words, marketing processes are important for business promotion and creating awareness about valuable products and services that change customer life and bring success to the business environment of all types of organisations. In this report, it will discuss about the two different case studies related to marketing processes and actions used by Nike and McDonalds. Firstly, it will analyse the case study of Nike’s marketing campaign for “Just Do It”. In addition, it will also confer about McDonalds’ “Our Food your Questions” campaign. Apart from this, the report will provide evidence-based study to justify the success of these marketing campaigns used uniquely by these organisations. Further, it will throw deep insight upon the marketing strategies such as implemented by both the organisations respectively for gaining competitive advantage in the business.
Section 1: Case Study Analysis of Nike
Nike is considered to be the top most American cosmopolitan business that deals with innovative sports shoes, apparels and accessories worldwide. The organisation is located in Eugene, US since its existence from the year 1964. In fact, it currently employs around 73,100 staffs working in different regions, which consists of full-time and part-time retail employees and generated revenue of about $ 34,485 by the financial year 2018. Hence, the brand name came to be popular by inventing sports products by athletes launched in the market. According to Davis (2016) in his journal opined that a brand like Nike has developed for creating cultural reverberation and understanding consumer needs. Analysing the case study, it could be understood that Nike’s marketing process involves brand personification and philosophic dominance over generations, emotional advertising contents for the spirit of sports in different regions. It has gained universal appreciation for using its marketing process to create value.
Section 2: Case Study Analysis of McDonalds
McDonalds is an American largest fast food chain of business selling wide range of foodstuff and beverages worldwide. It was founded in the year 1940 and located in San Bernardino, US. Based on the current strategic research, McDonald comprises of approximate number of 210,000 employees working in multiple regions and franchisees and its owned branches producing average revenue of $ 21,025, which consisted of company-operated restaurants and franchised partners. For example, the marketing processes identified in the company seems to have prioritised more on transparent promotion of food and its healthy ingredients for customers ranging from kids to the adults. From the study and analysis of the online journal, stated by Gorham, Gibson and Irlbeck (2016) it could be understood that McDonalds gives customers’ health preference and healthy food attributes for its campaign to gain customer loyalty. This is the reason for increasing its demand in the market.
Section 3: Discuss / explain sustained marketing success for each case/organisation
Nike’s marketing success evidence:
The success of marketing processes comes back in various forms that give positive or negative feedback from the customers. Nike’s success story behind its “Just Do It” campaign seems to be quite controversial over the time (Davis 2016). Based on the report analysis of the company, it could be identified that the marketing process applied by Nike has increased its sales volume from its target audience.
Facts and figure 1: Breakdown of Revenue
The change percentage over the last few years from 2016 till the end of 2018, the company have raised its income from 8% to 6% that reveals that some of its brands could not sold, as expected by the marketing team. This determines the fact that Nike’s performance growth could have done well, if some of its agenda could have addressed with strategic modifications.
Other than this, it can also traced from an article, Kelner (2018) stating about its digital transformations with time that has emphasized on PHOTOiD campaign with its existing tag “Just Do It” to strengthen its demographic customer segment mostly and athletes’ spirits to increase its revenue and value. For example, most of its regions like Greater China, Japan, North America and Asia Pacific regions have increased rapidly with the latest marketing campaign. Therefore, it can be ensured that Nike has sustained its market with purity and emotions with its philosophy and digital evolution.
McDonald’s marketing success evidence:
From the case study of McDonald, it could be understood that the brand has struggled a lot behind its fast food with healthy awareness to the world using its unique idea of marketing process. McDonald’s “Our Food Your Question” campaign has exclusively utilized various ways of marketing processes towards healthy and nutritional value of food (Gorham, Gibson and Irlbeck 2016). Below is an evidence-based report of financial performance over the last three years that shows its growth of sales:-
Facts and Figure 2: Revenue Breakdown of McDonald
According to this above information, it shows that the company had increased its sales volume by 82.1% compared to its previous results. It can be clearly evident from the market analysis and review that the brand has sustained its marketing process by using its psychographic segmentation mostly for preparing its food products with differences in regional flavours. Other than this, as per the review of the online article, Carlos Grande (2015) it also gives clarity that McDonald has also gained IPA Effectiveness Award in the year 2011 for using deep-seated simplicity in its advertisement through TV or Social media platform to sustain healthy food intake.
Section 4: Theoretical analysis of the reasons for the achievement of this advantage to assess marketing strategies used by both the organisations
The theory of marketing strategies is widely present in all the regions of the world in any type of organisation. Below is a marketing strategy that can be appropriately considered for understanding the growth market of both Nike and McDonald in the current market.
Significance of Customer-centric Growth Strategy in Business:
According to theoretical concept of customer-centric strategy, it focuses mainly on the customer, as prime concern in a market. In other words, the development of products and services based on the understanding the customer preferences, tastes and choices and living styles, an organisation can be able to heighten its business operations with sustainability (Simon, VAn Den Dries and Wilms 2016). It demonstrates the fact that if organisations use such strategy of growth matrix then it could attain value and maintain brand reputation.
Figure 3: Customer-Centric Growth Strategy
(Source: Simon, VAn Den Dries and Wilms 2016)
From this figure, it can be illustrated further that implementing customer-centric leadership is to give primary preference to the customers of all category that would focus mainly on the prices of fast food sold in the market. Other than this, designing experience means modifying the product design and innovation in the preparation and packaging process that is operated by the production team of an organisation (Price and Wrigley 2016). In addition, empowering the frontline staffs is responsible for handling customer queries, complaints and requests working in different locations. The metrics that matters refers to the evaluation report of marketing performance and execution of strategy to train the staffs for improving their skills for productive growth in business (Lievesley et al. 2017). Apart from this, continuous improvement of performance depends on the metrics that can identify the areas of weakness of an organisation and further progress in the similar section. Therefore, it can be attained from feedback received from the public and opinions that comes from the Government based on intervention.
Drawing attention to the case study of Nike, it can be intervened with strategic vision that the brand has used cultural leadership to focus on its customers having strong desire for shoes by developing constantly on digital technology in the market. Apart from this, it has strengthen its brand value by giving reasonable offers using e-commerce platforms and stores as well by distributing its shoes, apparels and accessories by understanding prime importance to the demographic segmented groups. However, it can be assumed that the brand has utilised the mentioned growth strategy effectively for its business growth.
On the other hand, the McDonald’s case study throws light upon its consistent approach of cultural leadership, innovation of food with variety of flavours and shape, as per customers’ taste and resiliency in business by enhancing their staff competency through adequate knowledge and technical efficiency in handling customer queries and solving problems. In addition, it has increased its food menus by 70% growth in all regions by incorporating Velocity Growth Plan that is part of this growth strategy covering all the fundamentals of running sustainable operations of business in restaurants and franchisees by using EOTF accelerators. Hence, it has gained increased value by attracting the psychographic segment of customers and has retained its existing customer base and habit and regularise the purchasing habit. Therefore, the growth of the brand is evident here from the analysis of this strategy.
The overall analysis of the marketing processes and strategies applied by both the organisations such as Nike and McDonald, it can be understood that businesses can flourish well by the help and support of strategic impact of decision-making process and leadership approaches of an organisation. Besides, it can also improve well if the marketing strategies are implemented with the right measurement and accurate metrics that empowers management to strengthen its weakness and make continuous improvements in the process. Nike and McDonald has included customer-centric growth strategy in a different way and different perspectives to attract their existing customer base and enhance their sales volume with time by the help of digital innovation and transformation in the application.
Hence, it can be concluded that the gaining competitive advantage in a business is possible through technical evolution, brand management and customer service management that altogether forms a sustainable relation for long-term aspects.