Below I have made comparisons between McDonalds and NIKE as a business
brand. I am going to illustrate the different marketing techniques, the limitations
and the constraints of these techniques. Additionally, how these businesses market
their products in order to increase profit. Furthermore, a comparison will be drawn
between the marketing techniques of the two companies and I will be evaluating the
effectiveness of these techniques. I have acknowledged that there are many
strategies that must be used effectively in order to avoid a calamitous reputation in
the wider business market. Hence advocating the significance of strong marketing
strategies.
Market Penetration strategy is a measure of product or category popularity. The strategy
involves selling more established products into existing market through volume discounts,
bundling, promotions or advertisements in order to increase outcome profit. This strategy is a
measure of the extent of a product’s sales volume relative to the total sales volumes of all
competing products, expressed usually as a percentage. Therefore market penetration
involves focusing on existing products into existing market to gain a higher market share.
McDonalds has used market penetration prudently by understanding customer needs. This
can be evidenced as McDonalds has improved the value of its meals hence providing an
affordable price for existing and new customers. A contemporary example of this is the
introduction of ‘Happy Meals’, targeted at children. The use of pester power (toys) enables
the business to reach the targeted audience effectively. Moreover, in summer McDonalds
provides fizzy drinks at a cheaper price. This again enables them to gain profit as more
people are likely to take advantage of the deal due to the hot weather conditions. Similarly,
NIKE as a company uses celebrity endorsements by renowned athletes Tiger Woods (golf
player)to nationally brand their products and broaden their consumer base. This encourages
customers to buy the product increasing its popularity hence an effective strategy. NIKE
could take further advantage of this strategy from present opportunities by sponsoring 2012
Olympic champions, by presenting a current centre-stage celebrity, NIKE would be able to
increase profit by reaching out to a more global audience. A weakness that exists in the
company is its reliance on retail industry and seasonality of sportswear, for instance if
targeted sale is not achieved within the season then the company would be at lost as the
products will not be brought later in the year. Threats that NIKE as a brand can undergo
include, competitive market, changing trends and consumer price. NIKE fights off the threats
thrust upon them through competitive market, by focusing on innovation and new product
developments. The brand is aware that they must constantly be introducing fresh ideas in
order to retain and gain new customers.
Branding is a name, sign, symbol, design or a combination of these intended to distinguish
the products from different companies. McDonalds has a logo followed by its strap line.
‘i’mlovin’ it’ is an international branding campaign by McDonald’s corporation which allows
the business to deliver a clear message and motivate buyers. The use of strap line connects
the business to the target prospects immediately and ensures consumer constancy as such
logos can be easily identified. The logo as a means of marketing can be evidenced from the
distribution of balloons and toys, which consist the ‘M’ logo; the logo on these objects can be
seen by a large sample which is beneficial to the marketing of the business. On the other hand
NIKE’s “swoosh mark” serves a similar purpose. The logo is present on every product and is
internationally recognised. The use of these logo’s ensures that the company is regarded as
unique and can easily be differentiated. Furthermore it can be argued that these logo’s result
brand. I am going to illustrate the different marketing techniques, the limitations
and the constraints of these techniques. Additionally, how these businesses market
their products in order to increase profit. Furthermore, a comparison will be drawn
between the marketing techniques of the two companies and I will be evaluating the
effectiveness of these techniques. I have acknowledged that there are many
strategies that must be used effectively in order to avoid a calamitous reputation in
the wider business market. Hence advocating the significance of strong marketing
strategies.
Market Penetration strategy is a measure of product or category popularity. The strategy
involves selling more established products into existing market through volume discounts,
bundling, promotions or advertisements in order to increase outcome profit. This strategy is a
measure of the extent of a product’s sales volume relative to the total sales volumes of all
competing products, expressed usually as a percentage. Therefore market penetration
involves focusing on existing products into existing market to gain a higher market share.
McDonalds has used market penetration prudently by understanding customer needs. This
can be evidenced as McDonalds has improved the value of its meals hence providing an
affordable price for existing and new customers. A contemporary example of this is the
introduction of ‘Happy Meals’, targeted at children. The use of pester power (toys) enables
the business to reach the targeted audience effectively. Moreover, in summer McDonalds
provides fizzy drinks at a cheaper price. This again enables them to gain profit as more
people are likely to take advantage of the deal due to the hot weather conditions. Similarly,
NIKE as a company uses celebrity endorsements by renowned athletes Tiger Woods (golf
player)to nationally brand their products and broaden their consumer base. This encourages
customers to buy the product increasing its popularity hence an effective strategy. NIKE
could take further advantage of this strategy from present opportunities by sponsoring 2012
Olympic champions, by presenting a current centre-stage celebrity, NIKE would be able to
increase profit by reaching out to a more global audience. A weakness that exists in the
company is its reliance on retail industry and seasonality of sportswear, for instance if
targeted sale is not achieved within the season then the company would be at lost as the
products will not be brought later in the year. Threats that NIKE as a brand can undergo
include, competitive market, changing trends and consumer price. NIKE fights off the threats
thrust upon them through competitive market, by focusing on innovation and new product
developments. The brand is aware that they must constantly be introducing fresh ideas in
order to retain and gain new customers.
Branding is a name, sign, symbol, design or a combination of these intended to distinguish
the products from different companies. McDonalds has a logo followed by its strap line.
‘i’mlovin’ it’ is an international branding campaign by McDonald’s corporation which allows
the business to deliver a clear message and motivate buyers. The use of strap line connects
the business to the target prospects immediately and ensures consumer constancy as such
logos can be easily identified. The logo as a means of marketing can be evidenced from the
distribution of balloons and toys, which consist the ‘M’ logo; the logo on these objects can be
seen by a large sample which is beneficial to the marketing of the business. On the other hand
NIKE’s “swoosh mark” serves a similar purpose. The logo is present on every product and is
internationally recognised. The use of these logo’s ensures that the company is regarded as
unique and can easily be differentiated. Furthermore it can be argued that these logo’s result
