Question

Marketers are innovative when it comes to product positioning. Part of product positioning is differentiation, a way of showing how a product is unique from its competitors. Analyzing and selecting a positioning strategy can mean the difference between success and failure for a new or existing product or service. Brand ambassadors, such as celebrities or other well-known icons, sports figures, or mascots, have become product endorsers to capture the customers' attention in advertising and social media campaigns. Two examples include the following:

• A popular insurance company has used its mascot, a gecko, to deliver its multi-channel messages through traditional and social media to differentiate itself among other insurers.
• A popular recording artist delivers his message for a nutrition snack via commercials and social media to launch a new global brand.

For this discussion, select your favorite fast-food restaurant, and discuss the following:

1. Define your target market. What is the age group? What are the customers' occupations and other defining factors?
2. Does the restaurant use a brand ambassador such as a celebrity, athlete, singer, or so forth? Is this effective for brand awareness? Why?
   • If your restaurant does not have an endorser, who would you select, and why? Explain the rationale behind your choices.
3. Name 1 competitor and how your brand is unique.

The following information is provided to help with your assignment:

Marketing strategies use the formula of STP/D or segmentation, targeting, positioning, and differentiation. A good way to remember the objective of each part of this formula is to think about what type of customer is interested in your product or service and to put him or her in a group—known as segmentation. For example, suppose you are in a reading club; you most likely have similar characteristics as others interested in the group. A marketer can segment you and place you in the same groups as others based on your similarities and preferences. Or, you might be part of a social media group or community with several similarities or things in common with others. This is segmentation.

The next important part of the STP/D formula is to think about how to talk to or communicate with these customer groups. Specific appeals are shown in advertising messages to encourage the segmented groups to buy. This is customer targeting or target marketing.

Finally, positioning and differentiation consider how the product is positioned in the marketplace, or where it sits in the market. For example, the product might be positioned as a value or luxury brand. Positioning includes differentiation, which is the unique way the marketer makes the product different from its competion

Answer 1

The given analysis is done for McDonald’s, which is a well-known fast food restaurant chain across the globe.

1. The target market of the company includes both males and females from various life style stages, social classes, income, etc. The target age group of customers for McDonald’s ranges from 6 years to 50 years. Detailed description of the target market of McDonald’s is shown below:

Occupation = Employees, working professionals, students, homemakers, etc.

Income = People from low to middle income group

Status = Fast food eating customers looking for cost effective fast food options

Social class = People from lower to middle class

Region = Both rural and urban markets across various countries

2. Currently McDonalds have Ronald McDonald as its brand ambassador who promotes its core values and culture of spreading happiness. He is a clown character used by the firm as their primary mascot. Besides him, the company also hired John Cisna as his brand ambassador who is a nationwide sensation. He proved in his research that people can have a balanced diet at a fast food restaurant along with exercise/walk to stay healthy and fit. In a research conducted by him, in only 60 days he has lost 60 pounds by eating a health option menu and walking 45 minutes daily. He promotes the new initiative of McDonald’s towards healthy food items like salads. Both the ambassador of the company is completely different and effectively communicates the company’s culture and values.

3. Burger King is one of the prime competitors of McDonald’s, however McDonald’s is unique in terms of its size, customer awareness and loyalty, menu composition, market presence, service quality, and social concern. The overall experience that a customers gets from visiting a McDonald’s restaurant is completely different from other ones and it provides it a competitive edge and uniqueness.