Market Segmentation and domino effect Essay Example | Topics and Well Written Essays - 2250 words

Market Segmentation and domino effect - Essay Example The strategy formulation is when the revelation of business strengths and weaknesses, for the growth of a wide range of strategic plans for the successful administration of environmental openings and threats. The corporate projects are redefined by signifying attainable goals, emergent strategies, and setting execution procedure. Strategy formulation is germane both for organization's proposal in general and for individual product. Economic Conditions: economic conditions of the area or territory where the company market their product can affect the sales of the product. Thus it is important to understand the economic conditions such as unemployment rate, inflation rate, interest rate etc. before launching the product Innovation is the process of creating a commercial product or process and also an invention of the product. Thus, in terms of creating value, an invention's potential is reached only when a firm develops and sells a product that satisfies customer's current or unmet needs. McDonalds is known a the most popular fast food chain, with more than 3000 franchises in almost every country of the world. The global annual sale of McDonald is 57 billion dollars while more than 25 billion dollars only in America (Arndt, 2007: 64-72). Committed to stringent standards of product quality, service and cleanliness, McDonalds uses value pricing (the source of relatively low costs to customers) while offering menu and storefront variety and relying on the power of its brand name (sources of differentiation). Globally, McDonalds seeks to provide its combination of relatively low costs and some levels of differentiation in a culturally sensitive manner. In India, for example, the Maharaja Mac, which is made from lamb, substitute for the beef-based Big Mac. Popular corn soup is offered on the chain's menu in its Japanese units (MacArthur, 2001:13 -53). McDonalds marketing strategy mainly focus on children, parents having young children, teenagers and business workers. Market Segmentation for McDonald's new burger The company which practice the strategy of market segmentation is discouraging broad segmentations sections because minor segmentation helps in focusing and better understanding of the consumers. An advertising company states, "there will be no market for products that everybody likes a little, only for products that somebody likes a lot" (Cutler, p.76, 1989). While other marketers are of the view that market segmentations are very important (Linneman & Stanton, 1991: 50-67). McDonald has been in the fast food industry for a long time and it has ample experience of new food products. Statistics have depicted that the size of fast food industry has reached, to the annual growth of 4.8% in the industry of fast food. McDonald's per year income is almost 102.4 billion dollars, along with the global