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2019 Situational Analysis of McDonald’s ‘Hotter, Juicier, Tastier’ Burgers
Name: Liau Ying Rong Student ID: 1089262 Email: [email protected] Word Count: 4398 (excluding headers and tables) Tutor: Professor Bernadette & Professor Laveena
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1. Executive Summary
The aim of this report is to conduct a situational analysis and evaluate the effectiveness of McDonald’s
Australia marketing strategies with a detailed focus on its ‘hotter, juicier, tastier’ Big Mac, Quarter
Pounder and Cheeseburger. Considering the growing trends towards healthier eating and
premiumisation, the company’s offering was beneficial in meeting consumer’s changing needs and
preferences. While McDonald’s Australia is currently positioned as the market leader for the fast food
industry, the close competitor and SWOT analysis suggests that Hungry Jacks and Grill’d pose the
biggest threat to the company. Hence, it is imperative for McDonald’s Australia to assess and
strengthen its marketing efforts to minimise the threat of competition.
The report also highlights the STP for the revamped burgers into 3 main customer segments, which are
families, Gen Z students and working adults. Based on a netnographic and empathetic research, it is
established that the target audience is the Gen Z students, who according to the diffusion of innovation
(DOI) theory, are the early adopters that will creates a bandwagon effect and generate more sales for
the company. As such, a value proposition statement is provided. Moreover, the report examines the
marketing strategies in terms of product, pricing and distribution. While the company appears to be
effective in its pricing strategies, the improved burger range are made from beef which excludes
certain consumer groups and used the same packaging design as the original versions which makes the
differences indistinguishable in the minds of consumers. Similarly, the company needs to be mindful in
managing their quality control and customer service.
Analysing the communication campaign using a media scanning, the report identifies journalist’s use
of different framing techniques to discuss the issue about McDonald’s improved burgers that
emphasises the media ability to select aspects of the issue and make them more salient in the
communicating text, which would potentially affect sales for the company. Furthermore, the 3M
framework analysis indicate that McDonald’s Australia was effective in its Megaphone messages,
audience listening and community tracking, but would have been more effective if they used Youtube
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that is highly utilised by the target Gen Z students in its communication campaign. It is hence
recommended that the company:
• Market the improved burgers to include chicken and fish burgers products
• Change the packaging design for the improved burgers
• Conduct more training programs for staff members
• Pay for more feature ads
• Adopt YouTube for their communication campaign
• Ensure transparency by communicating their steps for improvements.
2. Introduction This report is a situational and strategy analysis of McDonald’s Australia ‘hotter, juicier, tastier’
burgers. McDonald’s is the global leader for foodservice retailers which manufactures and markets
hamburgers, French fries, chicken products, breakfast items, salads, beverages and desserts that
expands across 120 countries worldwide (McDonald’s, n.d.). In Australia, McDonald’s Australia
Holdings Pty Ltd is a business franchise that employs approximately 5,550 full-time employees
throughout 981 restaurants in the country (IBISWorld, 2018). Currently, the company generated an
estimate revenue of AUD$1.82 billion in 2018, and the market is expected grow by 2.2% annually
until 2024 (Colangelo, 2019).
With the expanding consumer trends in preference for premium and healthier burgers that drives
growth for the fast food industry, earlier this May, McDonald’s Australia was the first country in the
world to launch its campaign introducing the ‘hotter, juicier and tastier’ versions of the classic Big
Mac, Quarter Pounder and Cheeseburger (“The subtle changes being made”, 2019). Several
improvements have been made to these burger’s quality which include adjustments to the sear of fresh
beef patties and grill of onions; use of softer, freshly toasted buns and melted cheese; as well as the
addition of the Big Mac special sauce (McDonald’s, n.d.).
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Hence, in order to assess the effectiveness of McDonald’s Australia marketing strategies for its
improved burgers, the report examines the trends and competitors within the fast food industry, the key
target market using STP, its marketing mix in terms of product, place and price, and its promotional
strategies through a media scanning and 3M framework analysis. The report concludes with
recommendations for McDonald’s Australia.
3. Marketing Environment
3.1 Industry Trends According to Caldwell (2018), the fast food industry in Australia is characterised by high competition
and a market saturation. Rapid changes in consumer preferences along with the entry of new gourmet
burger shops have contributed to the growth in revenue for the fast food burger industry over the last
five years (Caldwell, 2018). This has also resulted in an industry shift where traditional fast food joints
have moved towards more niche businesses (Ganev, 2019). Furthermore, the collaboration with food delivery services such as UberEATS has increased convenience for consumers who are now able to
purchase these fast foods from the comfort of their homes, which aids in the expansion of the market
and industry growth (Caldwell, 2018).
There has been a mega-trend towards healthier eating and premiumisation— the rising consumer demand for premium, healthy and better-quality fast foods (Vuong, 2019). This is further supported by
Australia’s legislation that requires nutrition transparency, which makes consumers more informed and
aware about what goes into their foods (Hall, 2018). While the increase in health-conscious consumers
suggests a threat to the industry due to the high-fat content of fast food products, this insight has
provided business opportunities for small operators and companies like McDonald’s to provide
gourmet options made from fresher and higher quality ingredients that drives industry growth
(Caldwell, 2018).
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Despite the overall growth of the market, rising competition indicates a declining growth rate for the
industry over the next five years (Caldwell, 2018). At the same time, the rise in household
discretionary income is forecasted to improve the industry’s performance (Caldwell, 2018). Therefore,
in order to remain competitive and successful, it is imperative for the company to understand and meet
consumer’s changing needs and preferences. With the premiumisation trend projected as the biggest
opportunity for segment growth in the coming years, McDonald’s Australia needs to improve menu
options, highlights these efforts and communicate effectively with its customers (“Australia
Foodservice Market”, 2019).
3.2 Competitors Table 1 illustrates the direct competitor analysis for McDonald’s Australia and the level of threat they
pose to the company.
Brand Strategies Strengths Weaknesses Level of Threat
Hungry Jacks
• Market its tasty and affordable fast food
• Differentiate itself with its flame-grilled burgers advertisements
• Strong branding and marketing efforts
• High market penetration
• Variety in menu (recently expanded its selection of vegetarian and vegan items)
• Perceived as unhealthy with high fat content and calories
• Lack of marketing strategy compared to McDonald’s
• High— recent strong marketing efforts to increase brand awareness and offers similar products to McDonalds at an affordable price
Grill’d
• Capitalising from the gap in domestic market for healthy, premium burgers
• Provides premium burgers with a healthy twist that differentiate its products
• High price point (from $9.90); only captures the upper-middle income class
• High— expected outperformance; Grill’d appeals to increasingly health-conscious consumers
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• Catered specifically for the Australian market
• Varied burger range (vegetarian, vegan and gourmet options)
• Relatively new brand
Subway
• Highlights the freshness, nutrition, quality and health-related benefits of their custom-made sandwiches
• Promotes its product range with six grams of fat or less
• Provides healthier fast food option that appeals to the increasing health-conscious customers
• Customisable menu offerings
• Lack of strong marketing efforts
• High price
point ($7.95-$11.95 for 6-inch sub)
• Inconsistency in service across outlets
• Medium — Does not provide equal variety as McDonald’s but caters to increasingly health conscious consumers
KFC
• Market its strong trademark recipes and distinctive taste that makes its food stand out
• Targets a wide demographic (both middle-class and price-sensitive customers)
• Strong brand presence
• High brand loyalty
• Strong
marketing efforts
• Perceived as unhealthy with high fat content and calories
• Limited product mix; introduce new products mainly through their chicken range
• Criticised for
causing harm to animals, which hurt the brand’s image
• Low— although the company has strong brand presence, they are mostly limited to selling chicken products
Table 1: Analysis of McDonald’s Australia Close Competition
[Source: (Caldwell, 2018); (RoyMorgan, 2017); (Yeoh, 2019)]
Currently, McDonald’s Australia is positioned as the market leader for the fast food industry with its
strong brand presence and its ability to keep prices low (See Appendix 1 for McDonald’s Australia
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SWOT Analysis). However, in reference to Table 1, it can be observed that the current biggest threat
for McDonald’s Australia is Hungry Jacks and Grill’d. These companies, although having a weaker
brand presence, is able to outdo McDonald’s Australia by catering to the heightened number of health-
conscious consumers and increasing their marketing efforts. Therefore, understanding the industry
trends and competitors will help the company assess its marketing strategies accordingly and
differentiate its products in effort to minimise the threat of competition.
4. STP Approach
4.1 Segmentation
Table 2 illustrates the segmentation for McDonald’s Australia new ‘hotter, juicier, tastier’ burgers into
3 main subgroups: families, Gen Z students and working adults along with their respective
consumption needs and behaviors.
Segmentation Variables
Families Gen Z Students Working Adults
Demographic Middle-aged parents with young children, typically median income earners
Children Age: 3-10
Teenagers and young adults, below average employment
Age: 13-22
Millennials and middle-aged adults, working/ middle class
Age: 25-40
Psychographic
-Personality and lifestyle
-Motives
Easygoing, closely knitted family that enjoys a meal together
Trendy, brand conscious, socially active, tech-savvy
Impatient, busy lifestyle; eat quickly/ simultaneously without affecting work schedule
Bonding with family members, satisfy their children’s cravings for fast foods
Seek for premium quality burgers but at an affordable price, socialise with friends
Seek convenient meals; ‘grab-and-go’
Behavioral -Price Sensitivity
Low — relatively less concerned with price, willing to pay more for quality
Medium — seeks for the best deals but willing to pay a little more for quality
Medium — seeks for the best deals but willing to pay a little more for quality
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-Purchase Occasion Weekend outings, evenings on weekdays, less frequent
New product launch, hang out spot with friends, study sessions
Visit McDonald’s during peak hours on weekdays
Media Usage Mainly watch TV commercials for latest products, uses Facebook and YouTube on tablets
Highest usage on Instagram, SnapChat and YouTube on smartphones and tablets
Mainly uses Facebook, Instagram and Pinterest to research and buy products
Benefits Sought Family set meals/ kids’ meal
Fun and Entertainment
Quality of food/ Taste
Cost Benefits
Quality of food/ Taste
Environment- (area with Wi-Fi)
Time efficiency
Convenience
Quality of food/ Healthiness
Degree of Loyalty Loyal Hard Core Loyals, Fan communities
Switchers/ Loyal
Table 2: McDonald’s Market Segmentation
[Source: (“Children and parents: media use and attitude”, 2019), (RoyMorgan, 2018), (Dimock, 2019), (Green, 2019), (“Facebook Is the Most Used Social Network Platform by Millennials in 2018, n.d.), (“Digital Marketing Statistics & Metrics”, 2019)]
4.2 Targeting
A netnographic research, an “ethnography adapted to the study of online communities”, has been
conduct on these market segments on a qualitative and quantitative level to obtain their consumption
patterns and insights. It is identified that Gen Z students have the most online engagement with
McDonald’s Australia on Internet forums, blogs and social media platforms, and are the primary target
market for the company’s ‘hotter, juicier and tastier’ burgers (Kozinets, 2014, p. 1). For instance, on
Facebook’s “@McDonald’sFanClub” page that posted “tag your group of your friends who can finish
this [giant beef burger] in one shot”, the majority who commented and tagged their friends falls under
the Gen Z demographic (McDonald’sFanClub, 2017). For example, Shannyn Brown, a 20-year-old
student currently studying at RMIT University, tagged her friend with the comment “us together would
finish this 100%” (McDonald’sFanClub, 2017).
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Based on the data analysis and interpretation, Gen Z are the “most hooked to McDonald’s” with 67.3%
patronising the restaurant in an average six-month span (RoyMorgan, 2018). According to a research
by Mintel Academic (2019), 96% of Gen Z students also seek for higher quality products, which
indicates that the improved burgers will appeal to them the most. This target groups are highly wired,
spending 6 to 9 hours per day dominating online searches for information and mainly uses Instagram
and Youtube (Dimock, 2019). As they tend to keep up with the latest news and product launches on
social media platforms, they are the early adopters most ready to try out these new burgers (Green,
2019). With DOI in effect, they will share their experiences on social media and start to influence the
early and late majorities (working adults and families) to try out these burgers. Therefore, they are the
brand influencers who will create a bandwagon effect and generate more sales for the company.
An empathetic research in the form of an interview is also conducted as shown in the sample customer
profile provided in Appendix 2 to obtain a deeper understanding of Gen Z student’s needs and desires.
4.3 Positioning
Based on the market research, Gen Z students are the most profitable segment for McDonald’s
Australia revamped burgers. Given that the company champions in product development and market
penetration, the following positioning statement is created (see Appendix 3):
“To the Gen Z students who wants an affordable and delicious burger, McDonald’s Australia is the
world’s largest fast food company chain that adds a friendly and convenient experience to eat and
drink, that unlike other competitors who are inconsistent and unappetising, delight every customer
by serving food with constant great quality at a low price quickly every time.”
5. Marketing Strategy Analysis
A marketing mix analysis for McDonald’s Australia has been undertaken to access the current
effectiveness in marketing their overall fast foods and the ‘hotter, juicier, tastier’ burgers.
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5.1 Product
As the world’s leading fast food restaurant, McDonald’s Australia provides a variety of choices in its
product line for customers which includes hamburgers, French fries, chicken products, breakfast items,
salads, beverages and desserts (McDonald’s, 2019). The company also regularly conduct market
research to cater to the changing needs and preferences of consumers. For example, McDonald’s
Australia recently launch the ‘hotter, juicier, tastier’ versions of the Big Mac, Quarter Pounder and
Cheeseburger as a permanent fixture on its menus nationwide in response to the increasing demand for
better-quality burgers.
Besides changes in the way these burgers are being prepared, McDonald’s Australia pride itself for
using the best ingredients such as its 100% Australian beef sourced from homegrown farmers
(McDonalds, 2019). Moreover, as McDonald’s brand name is highly reputable, each of its product is
brightly packaged in different colors and its iconic brand logo—the golden arches of the letter ‘M’—is
positioned at the center or left of the product packaging (see Appendix 4). This makes the company’s
packaging eye-catching yet easily recognisable which builds brand awareness and differentiate itself to
majority of its competitors who use standardised theme colours throughout (see Appendix 5).
Since 2013, the company has also changed most of its packaging to “fibre based packaging that comes
from recycled, renewable or certified sources” (“Environment & Sustainability”, n.d.). This aids in
demonstrating the company’s commitment in being an environmentally responsible business to satisfy
the moral foundation of consumers’ ethics. Not to mention that McDonald’s Australia is a service
marketing which provides a friendly customer service, free Wi-Fi in its restaurants, and McDelivery
services.
While McDonald’s Australia provides a variety of menu options and has improved the quality of its
burger range, these burgers, made of beef, excludes vegetarians, vegans and religious groups like
Hindus and Buddhists from consumption, which limits the sales volume. Furthermore, the improved
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burgers use the same packaging design as the original versions which makes the improved quality
indistinguishable in the minds of consumers.
5.2 Price
The fast food industry is highly price competitive. As a result, McDonald’s Australia aim to “deliver
strong value across every price tier” by adopting a mixture of pricing strategies (Skinner, 2012, p. 3).
Firstly, as the majority of McDonald’s customers are price sensitive consumers, the company uses an
integrated cost leadership and low-cost strategy to minimise operational costs and keep prices low in
order to generate higher sales volume (Mohammed, 2019). Currently, the company also conducts a
value-based pricing that sets the prices for each product depending on the perceive value of the target
customers. While there are economy burgers offered at a low price to cater to students and individuals
in the lower-middle income class, the gourmet ‘Signature Collection’ burgers perceived to be of a
better quality are priced higher to customers willing to pay for more. Furthermore, the company often
performs a competitive pricing strategy and base prices on par with direct competitors like Hungry
Jacks to retain customers.
To encourage customers to buy more of its products, McDonald’s Australia also offers items both
individually (a ‘la carte) and in bundles (set meal or combos). Often, items that are offered in meals are
discounted as opposed to purchasing them separately. Additionally, the company adopts an optional-
product pricing by offering ‘extras’ or sides like sauces and desserts to complement their main
purchases to increase profits.
In particular, McDonald’s Australia conducted sales promotion for the newly launched ‘hotter, juicer,
tastier’ burgers. Instead of its usual price of $6.45, the improved Big Mac were sold simply at $1 on
the mymacca’s app on 25 June 2019 (ARN Radio, 2019).
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With all these pricing strategies in place, the company appears to be effective in setting prices to attract
the target customers, especially price sensitive teenage students, and maximum profits.
5.3 Place
Currently, McDonald’s Australia has an intensive coverage of 981 restaurants across the country and is
embarking on a “$350 million plan to open 45 new restaurants in Sydney and Melbourne” over the
next three years (Boreham, 2019). Most outlets in McDonald’s Australia open 24/7 and are typically
situated in prime locations such as shopping malls, airports and the CBD, which indicates that its
products are widely available and made convenient for purchase. According to IBISWorld (2018),
approximately 80% of McDonald’s Australia restaurants are local franchises while the other 20% are
company-owned restaurants.
Apart from all restaurants and drive-thrus, McDonald’s Australia products like the revamped burgers,
are also sold through kiosks to increase cost-efficiency. Moreover, customers can access information
about the company’s products, obtain special offers, find restaurant locations and make purchases
through the mymacca’s app made available on IOS and Android. For instance, customers were able to
claim special deals of the improved Big Mac for a limited period of time only through the mobile
ordering app. Furthermore, the company has collaborated with other Postmates websites and delivery
apps such as UberEATS that not only allows consumers to order food to their locations quickly but caters to the increasingly tech-savvy consumers.
Looking at place as an element of the marketing mix, McDonald’s Australia supports the company’s
vision in reaching out to more customers, predominantly the younger demographics. However, with
the high number of franchises and a considerable amount of changes in its business operation in recent
years, this has led to the increase in disputes, quality and control issues (Maze, 2019). In addition,
although the improved burgers are marketed primarily to the Gen Z students who are proficient with
technology, it is noteworthy that the increase in self-serving kiosks in recent years has led to overall
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customer’s dissatisfaction as consumers continue to prefer face-to-face interactions commonly
associated with McDonald’s core business structure (Chung, 2018).
6. Communication Campaign Analysis
6.1.1 Media Scanning
The report conducts a media scanning for McDonald’s product launch campaign for the ‘hotter, juicier,
tastier’ classic Big Mac, Quarter Pounder and Cheeseburger globally (Australia, Canada, UK). In effort
to promote the revamped burgers, McDonald’s Australia also offered the improved Big Mac for $1 and gave away 250,000 Quarter Pounders through the mymacca’s app for a limited period of time (Khalil,
2019). The report tracks the issue on how the media report the campaign efforts along with the quality
of the improved burgers from 18 May 2019 to 28 August 2019.
A detailed summary of five news articles are provided and highlighted in Appendix 6,7,8,9 and 10
respectively.
6.1.2 Summary of Issue
After conducting a media scanning, it is identified that journalists have different representations of the
issue about McDonald’s improved burgers, which suggests the agenda-setting effect driven by the
media’s ability in framing and creating a “general top-of-mind salience” about the quality of the
burgers that would potentially affect the company’s sales (Hallahan, 1999). In the first article (see
Appendix 6), the journalist appears to be rather skeptical and negative towards these new burgers. This
can be observed in the use of spin in the title, “Uh-Oh – McDonald’s Just Changed Its Classic Burger
Recipes” (Jager, 2019). On the other hand, the article published on News.com.au (Appendix 7) and
Strategy (Appendix 9) uses valence framing to cover both positive and negative aspects of consumer’s
reactions towards the taste of the burgers. Additionally, although the news article in Appendix 8
reported on the chaotic scenes at McDonald’s alike the article in Appendix 7, the news article in
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Appendix 8 solely uses positive framing to address the improved burgers. Lastly, the editorial in
Appendix 10 uses story framing to emphasise significant improvements in the taste of the new Quarter
Pounder. Therefore, this shows the differences in news reporting where each journalist uses a different
“advertising framing of product experience” to “transform how the consumer perceives and judges the
subsequent consumption of a product” (Hallahan, 1999, p. 212). Consequently, this affects what and
how consumer think about the improved burgers. Additionally, as all the news articles take place on a
digital broadcast media, this indicates a greater reach to potential customers. For instance,
News.com.au is the most popular news website in Australia and the 4th most viewed website by the
Generation Z (RoyMorgan, 2018). Hence, it is vital that McDonald’s Australia pay close attention to
the media as compiled negative reviews may threaten the company’s sales for the new burger range.
6.2 Discovery Report
6.2.1 Message Analysis
McDonald’s Australia media campaign aims to promote the suite of improvements made to the
‘classic’ burger range and change customer’s perceptions about the quality of McDonald’s products to
drive core burger sales and gain market share. Targeted towards the Gen Z students, the key message
of the campaign highlights McDonald’s Australia launch of the ‘hotter, juicier, tastier’ burger range
that encourages customers to go on a “Macca’s run” to try out these burgers, guaranteed to attain their
satisfaction (McDonald’s, 2019). It is identified that McDonald’s Australia mainly uses Facebook,
Instagram and asynchronous media platforms such as the company’s official website as a Megaphone
to share their message with the Australian audiences (see Appendix 11). Appendix 12 provides a
comprehensive social media coverage analysis to illustrate McDonald’s campaign efforts and reach to
the public.
Firstly, McDonald’s Australia uses its Facebook corporate fan page to connect with approximately 79
million fans by updating their newly launch burger range and promotions like the International Burger
Day from strategic videos and captions on their news feed (McDonald’s, 2019). In addition to the
platform’s strong network, the videos adopt semiotics such as the use of large bold texts, beef-heavy
visuals and bright contrasting colours to manage positive gastronomic impressions towards the
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burgers. This is also known as impression management which is referred to “the conscious and
subconscious attempt to control images” that influences consumer’s perception about these burgers by
regulating information in social interactions (Fisk & Grove, 1996, p. 7). Furthermore, the company
provides a community page on Facebook to encourage consumers to share photos and their
experiences on the topic. Similarly, McDonald’s Australia also uses videos and captions on its
Instagram account to reach out to 146K followers and adopt hashtags such as #hotterjuiciertastier to
promote spreadability of its content (McDonaldsAU, 2019).
While McDonald’s Australia currently performs well in producing high volume of online content and
use visual imagery to expose their message to the public, the company did not use YouTube which is a
more utilised media platform by the target Gen Z students as opposed to Facebook (Green, 2019).
6.2.2 Audience Listening
In effort to generate buzz and persuade consumers to go on a “Maccas run” to get a taste of these
improved burgers, the company uses Facebook and Instagram as a magnet to draws comments, praises
and complains to Megaphone messages. For example, McDonald’s Australia posted on Facebook
“Everyone has a favourite favourite. What’s yours?”, to which many customers responded with
comments like “Big Mac, but they need to go back to the bigger size” (McDonald’s, 2019). Moreover,
the company induces customers’ participation and draw inbound traffic to separate locations like the
mymacca’s app by providing direct rewards such as giving out 250,000 free improved Quarter
Pounders. Under the social exchange theory, this is effective in attracting customers as it increases the
benefits for them relative to the costs incurred where they now have greater incentives to participate in
the campaign and share their experiences online in hopes of obtaining the physical reward and
anticipate responses from the company or other customers (Pan & Crotts, 2012). Particularly,
McDonald’s Australia managed to gather a total of 25.2K comments on Instagram and Facebook
(McDonald’s, 2019). In aggregate, these initiatives leverage inbound dialog in which the company can
capture customer feedback, expand market research and improve their customer service (Gallaugher &
Ransbotham, 2010).
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6.2.3 Community Tracking
McDonald’s Australia uses Facebook and Instagram to facilitate ‘Likes’ and customer-to-customer
dialogue visible to the public on their news feed. However, it is examined that audiences have an
overall negative reaction to the campaign, taking their complaints to the comment sections on fan
community pages and Internet forums (see Appendix 13). Majority of these negative audiences comes
from fans of McDonald’s who are dissatisfied with the taste and quality of the revamped burgers such
as comments that end of with “from a disappointed big mac fan” (Nolan, 2019). According to the
psychological ownership theory, “the motive to write either a negative or positive review may be a
desire to control or influence the business indirectly by communicating with its future potential
customers” (Pan & Crotts, 2012, p. 7). These customers are highly influential and threatening to the
company’s business because their unhappy comments online have the capability to spread messages
virally for everyone to see, allowing the exchange of hostile comments to other customers through
word of mouth which further extend the viral reach. For instance, Scott Elder posted a 3D image on
Facebook and commented, “Is this part of the Hotter. Juicier. Tastier menu? A raw burger patty on a
quarter pounder…Someone needs to contact me ASAP before I share this everywhere!”, which led to
other hateful comments like “Gross! McDonald’s is rubbish these days”. (Elder, 2019).
However, through consistent monitoring and social listening, McDonald’s Australia is effective in
mediating negative reactions when attacked by asking customers to contact the company through their
website, amplifying praises and ignoring some comments (see Appendix 14). Nevertheless, the
company should ensure transparency by communicating to the public how they are taking in these
feedbacks and the steps they are taking to improve their business.
6.3 Overall Discussion and Evaluation
As a whole, it is analysed that McDonald’s Australia was overall effective in using Megaphone,
Magnet and Monitor on their official website, Facebook and Instagram that work together to spread,
attract and facilitate online dialogue. However, the company should integrate YouTube as a media
platform to promote their campaign.
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7. Conclusion and Recommendations In conclusion, this report conducts a situational analysis to assess the effectiveness of McDonald’s
‘hotter, juicier, tastier’ Big Mac, Quarter Pounder and Cheeseburger. As there is a rising consumer
trend for better-quality burgers that drives growth for the fast food industry, McDonald’s Australia was
strategic in launching its improved burgers. Based on the competitor analysis, there is a high amount of
threat from Hungry Jacks and Grill’d that emphasises the importance in comparing the offerings of the
company against these competitors. Therefore, it is recommended that McDonald’s Australia continue
to focus on its strengths by providing fast foods at an affordable price while closely monitoring its
competitors’ sales promotion and product innovation. The company should hence invest more in
research and development to come up with new products that caters to the increasing demand for
healthy gourmet burgers to stay competitive in the market.
Using STP, the report establishes that the main target market for these burgers is the Gen Z students
who are the brand influencers. Furthermore, looking at the marketing mix, the company is successful
in its current product, pricing and distribution strategies. However, although its marketing strategy is
successful, its ‘hotter, juicier, tastier’ products exclude vegetarians, vegans and religious groups which limits the potential sales volume and restricts changes to consumer’s overall perception of McDonald’s
quality of burgers that the company wishes to promote. Furthermore, the high number of franchises
and kiosk machines has caused rising tensions amongst employees and customers in recent years. In
order to propel the business to become more successful, the company should market their ‘hotter,
juicier, tastier’ burgers and use of fresh ingredients to include chicken and fish burgers products.
Moreover, the company should also change the packaging design such as placing the words ‘hotter,
juicier, tastier’ and including images of the change in preparation methods on the burger box for these
the newly improved burgers that differentiate itself from the previous version. As the availability of
well-trained staffs are crucial in delivering high quality services and customer satisfaction for the
growth of the company, McDonald’s Australia should conduct more training programs for their staff
members to ensure their product and service meets the highest quality standards.
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Conducting a media scanning and 3M framework analysis, the report showed that McDonald’s
Australia was overall effective in its communication campaign strategy. Nevertheless, the company
should take note of how the media talks about them that would significantly affect their business. It is
recommended that McDonald’s pay more for feature adverts or even pay outside vendors to remove
offensive articles and forums. In addition, although the company has a smart campaign objective and a
clear communication key message, its communication strategy would have been more effective if they
had focus on YouTube to reach out to its target Gen Z students. For instance, McDonald’s Australia
can let participants try out these new burgers, record their positive reactions, compile them into a video
and post it on YouTube. The company should also ensure transparency by communicating the steps
they are taking to improve the quality of their burgers. With all these sustained efforts, this will ensure
McDonald’s Australia to sustain its thriving business.
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whats-different/
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Appendices Appendix 1: McDonald’s Australia SWOT Analysis
Strengths (Internal) Weaknesses (Internal)
• Strong brand presence and awareness • Leading fast food company in
Australia; market power over competitors
• Low price offering; integrated cost leadership
• Efficient supply chain management • Strong marketing efforts • Standardised processes
• Perceived as unhealthy with high fat content and calories
• Controlling quality with franchise • Weak product differentiation
Opportunities (External) Threats (External)
• Upgraded menu catering to changing consumer’s needs and preferences (Caldwell, 2018)
• Collaboration with food delivery services (Caldwell, 2018)
• Forecasted rise in household discretionary income and increase in consumer spending (Caldwell, 2018)
• In the mature stage of the product life cycle (Caldwell, 2018)
• Intense and rising competition (Caldwell, 2018)
• Growing health conscious consumers (Vuong, 2019)
• Growing demand for premium and quality burgers (Vuong, 2019)
• Possible sugar tax (Davey, 2018)
24
Appendix 2: McDonald’s Australia Customer Profile on a Gen Z Student
Customer Profile:
Amy, an undergraduate student aged 18, lives in Perth, Western Australia. Every weekend, she patronises her nearby McDonald’s at Applecross and occasionally grab brunch with her friends there. As a foodie, Amy loves to try out McDonald’s new menu items and keeps up-to-date with the latest Instagram posts and online news articles. She also loves to explore other restaurants that provides a good gourmet burger.
Appendix 3: Detailed McDonald’s Australia Value Proposition Statement for ‘Hotter, Juicier, Tastier’
Burgers
For Gen Z Students
Who wants an affordable and delicious burger
McDonald’s Australia
is the world’s largest fast food company chain
That adds a friendly and convenient experience to eat and drink
Unlike other competitors who are inefficient and unappetising
This Offering delight every customer by serving food with constant great quality at a low price quickly every time
25
Appendix 4: McDonald’s Australia Packaging
Armin, B. (2016). New Packaging for McDonald’s [Image]. Retrieved from
https://www.underconsideration.com/brandnew/archives/new_packaging_for_mcdonalds_by_boxer.php
Appendix 5: KFC’s and Subway’s Packaging
The Colonel Is Back at KFC [Image]. (n.d.). Retrieved from http://gdusa.com/news/the-colonel-is-back-at-kfc
Corcoran, C. (n.d.). Subway VIS Redesign [Image]. Retrieved from https://independentcopywriter.com/design-
writing
26
Appendix 6: ‘Uh-Oh - McDonald's Just Changed Its Classic Burger Recipes’ article Jager, C. (2019). Uh-Oh - McDonald's Just Changed Its Classic Burger Recipes. Retrieved from
https://www.lifehacker.com.au/2019/06/mcdonalds-just-changed-its-classic-burgers-heres-
whats-different/
The article written by journalist Chris Jager introduces McDonald’s Australia recent launch of the
newly improved Big Mac, Quarter Pounder and Cheeseburger with all-new cooking formulas and
described these changes. While the article adopts a seemingly objective tone, it appears to be rather
skeptical towards these new burgers. Firstly, it highlights the possible dismay among Big Mac fans regarding the change in their already familiar taste of the Big Mac’s special sauce. It also mentioned a
similar case with Arnotts’s ‘new and improved’ Shapes biscuits that did not generate a positive
outcome, alluding to the possible ineffectiveness of McDonald’s campaign.
Appendix 7: ‘It’s International Burger Day and Macca’s is giving away 250,000 free burgers’ article
Khalil, S. (2019, May 28). It’s International Burger Day and Macca’s is giving away 250,000 free
burgers. New.com.au. Retrieved from https://www.news.com.au/lifestyle/food/eat/maccas-is-
giving-away-250000-free-burgers-on-international-burger-day/news-
story/e9e793f73223aa1f0044b940edd0fe0f
McDonald’s Australia has caused chaotic scenes as bargain burger lovers bombarded into restaurants
such as the Sydney’s George Street outlet to claim McDonald’s 250,000 free burger offer for its
‘hotter, tastier, juicier’ Big Mac. The article points out the disparity in opinions about the improved
burgers; some customers have expressed their delight in tasting the delicious new burgers on the
McDonald’s Instagram page while others strongly disagreed. One customer even mentioned his
preference for the previous versions, describing the new burgers as “inedible” and “tasted like stewed
onions” and would never order them again (Khalil, 2019).
27
Appendix 8: ‘McDonald’s offers $1 Big Macs for one day only’ article
Deutrom, R. (2019, June 25). McDonald’s offers $1 Big Macs for one day only. News.com.au.
Retrieved from https://www.news.com.au/lifestyle/food/eat/mcdonalds-offers-1-big-macs-for-
one-day-only/news-story/f227c66994c963550d531238ed73c18b
There was a frenzy and complete chaos at McDonald’s Australia who rush to grab the $1 ‘hotter,
juicier and tastier’ Big Mac. Despite so, the article focuses on the positive aspects and reactions
towards the campaign and the appetising improved burgers from Australians going crazy over the one-
day offer to thousands of people sharing their plans on social media that they are heading down to
McDonald’s to grab a taste of these burgers. The article cited some examples of this positive response
on social media such as “Guess what’s for lunch and dinner on Tuesday?!” (Deutrom, 2019).
Appendix 9: ‘McDonald’s Canada is still lovin’ burgers made from beef’ Article
Dunne, M. (2019). McDonald’s Canada is still lovin’ burgers made from beef. Retrieved from
http://strategyonline.ca/2019/08/26/mcdonalds-canada-is-still-lovin-burgers-made-from-beef/
Earlier this August, McDonald’s Canada came up with the new Classics Remastered campaign
featuring “images of cows in a field and Mounties playing hockey on a frozen pond” and random
close-ups of the ‘hotter, juicer and tastier’ Big Mac, Quarter Pounder and Cheeseburger (Dunne, 2019).
The campaign also emphasise that its burger is made with 100% Canadian beef. Despite garnering
22,000 views of the campaign video on McDonald’s Canada’s Twitter account, mixed reactions were
in the comments ranging from positive feedbacks, complains over the quality of meat and buns to
questioning whether McDonald’s has learnt their lesson from New Coke.
28
Appendix 10: ‘McDonald’s Just Made a Massive Change to its Burgers- Here’s the Verdict’ Article
Tyler, K. (2019, May 8). McDonald’s Just Made a Massive Change to its Burgers- Here’s the Verdict.
Independent. Retrieved from https://www.independent.co.uk/life-style/food-and-
drink/mcdonalds-burger-fresh-beef-quarter-pounder-review-menu-change-a8341686.html
McDonald’s UK attempted to test a revamped Quarter Pounder made with fresh beef that is
supposedly hotter, juicier, and more flavourful. Despite how the article addressed that McDonald’s
previous frozen beef patties has a usual dry and cardboard-esque taste, it reviewed that the new burger
has clear improvements and is noticeably juicier and tastier while still retaining the essence of a typical
McDonald’s burger. However, it also stated that the ‘hotter’ patty did not fully melt the cheese as
promised, which would have made the overall burger taste much better.
29
Appendix 11: Examples of McDonald’s Australia Use of Media Platforms
Top Left: a Facebook promotion Top Right: an Instagram promotion
Bottom: advertisement on McDonald’s Official Webpage
30
Appendix 12: Table of Social Media Coverage and Analysis Report
Organisation: McDonald’s Australia
Campaign Issue: ‘Hotter, Juicier, Tastier’ Burgers Date/Period: 18/5/19 - 28/8/19
Date Content Platform
(e.g. Facebook, Instagram)
Media Type
(eg. Text, video, image)
Reach
18/5/19 “Everyone has a favourite favourite. What’s yours?”
Facebook Text and video 427 comments, 22 shares
22/5/19
“The Big Mac, Quarter Pounder and Cheeseburgers you love, are now hotter, juicier and tastier. Time for a Macca’s Run?”
Facebook Text and video
Cover image: zoomed in version of double cheeseburger
2.5K comments, 147 shares
Instagram 7.3K views, 72 comments
23/5/19 “We think you’re going to positively melt when you taste our burgers with perfectly melted cheese. Three cheers to hotter, juicier, tastier burgers.
#dailynuggets #maccas #imlovinit #hotterjuicertastier”
Instagram Text and video
Cover image: “cheese to make you melt”
5.6K views, 25 comments
24/5/19 “It’s pretty hard to improve on a classic, but now the Big Mac® has extra Big Mac® special sauce. Just one of the reasons to do a Macca’s run and try our hotter, juicier and tastier burgers today.
#dailynuggets #hotterjuiciertastier #maccas #imlovinit”
Instagram Text and video
Cover image: “saucier than ever”
5.8K views, 32 comments
25/5/19 “We’re pretty sure you’re going to develop a soft spot for our hotter, juicier and tastier burgers, especially with their softer, freshly toasted buns. Time for a Macca’s Run?
#dailynuggets #hotterjuiciertastier #maccas #imlovinit”
Instagram Text and video
Cover image: “Get a load of these soft buns”
8.5K views, 25 comments
31
25/5/19 “Our Quarter Pounder® burgers are now hotter, juicier and tastier, so we’re giving away 250,000 of them for free on May 28th! Time for a Macca’s run?”
Facebook Text and video 2.9K comments, 274 shares
28/5/19 “Get your free Quarter Pounder today only on the mymacca’s app. They’re now hotter, juicier and tastier, so get in quick before all 250,000 are gone! Time for a Macca’s run?”
Facebook Text and video 3.1K comments, 269 shares
29/5/19 “With perfectly melted cheese, more of the Big Mac ® special sauce that you love and softer, freshly toasted buns, your favorites just got hotter, juicier and tastier. Time for a Macca’s Run?”
Facebook Text and video 732 comments, 44 shares
9/6/10 “Some say the only thing that beats our hotter, juicier, tastier Cheeseburger, is when you double it! Guess what beats the Double? That’s right, the delicious, oh so cheesy Triple. Taste our new hotter, juicier, tastier burgers today.
#dailynuggets #triplethefun #cheesypost #maccas #imlovinit”
Instagram Text and video
Cover page: “classic” and image of a cheeseburger
7.9K views, 28 comments
11/6/19 “Hotter, Juicier, tastier burgers are here! Taste the difference with a classic Big Mac, Quarter Pounder or Cheeseburger with meltier cheese today. Time for a mmmmeltier Macca’s run?”
Facebook Text and video 214 comments, 9 shares
19/6/19 “Drop everything and say ‘I do’ to our hotter, juicier and tastier burgers. Time for your very own Macca’s Run?”
Facebook Text and video 1.4K comments, 124 shares
22/6/19 “We’ve got something special for you coming up on Tuesday the 25th of June. The hotter, juicier and tastier Big Mac will be available for only $1, for a limited time on the
Facebook Text and video 9.9K comments, 455 shares
32
mymacca’s app. Save the date for a Macca’s Run.” (McDonald’s, 2019)
25/6/19 “UPDATE: Hundreds of thousands of Aussies have already gone on a Macca’s run to redeem their hotter, juicier and tastier $1 Big Mac, so unfortunately this limited time offer is no longer available. But don’t let this stop you from enjoying one of the best Macca’s burgers ever!”
Facebook Text and video
Text and video
2.5K comments, 172 shares
Instagram 22.5K views, 128 comments
27/6/19 “Our 100% Aussie beef patties are now cooked in smaller batches, with onions added at the grill, making them hotter, juicier and tastier. Time for a Macca’s Run?”
Facebook Text and video 323 comments, 12 shares
17/7/19 “Get it while it’s super-hot. The brand-new hotter, juicer and tastier Chilli Quarter Pounder is only available exclusively through McDelivery via UberEats. Hurry though, it won’t be around for long”
Facebook Text and video 214 comments, 9 shares
5/8/19 “Do you like it hot? Add some extra spice to your life with our delicious, new Quarter Pounder Chilli. Time for a Macca’s Run?”
Facebook Text and video 527 comments, 37 shares
14/8/19 “Think you can handle the double? Head to Macca’s and get stuck into a hotter, juicier and tastier Double Quarter Pounder. Double the beef, double the love! Available after 10:30am for a limited time.”
Facebook Text and video 232 comments, 15 shares
28/8/19 “By the way, if you haven’t heard, BURGER’S THE WORD around town. If you know what’s up, you’ll drop everything and bite into a hotter, juicier, tastier burger at Macca’s today.
#dailynuggets #maccas #imlovinit #BTW #bunsout”
Instagram Text and video
Cover page: “BTW” and image of cheeseburger
6.6K views, 12 comments
[Source: Facebook-McDonald’s, 2019), Instagram- (Mcdonaldsau, 2019]]
33
Appendix 13: Negative Discussion Threads about McDonald’s ‘Hotter, Juicier, Tastier’ Burgers
Top: Whirlpool-McDonald’s General Discussion
Bottom Left: Comments on Facebook Post Bottom Right: McDonald’s ProductReview.com.au
34
Appendix 14: Example of McDonald’s Australia Mediating Negative Responses and Amplifying Praise