Wireless Internet at McDonalds - marketing/demographic research, product offering research

Essay by oldcowhandUniversity, Bachelor'sA+, October 2004

download word file, 11 pages 3.7

McDonald's Wireless Access

The growing number of wireless users in the United States includes thousands of mobile professionals, business travelers, and students who need to connect to work, family, and friends while on-the-go and are willing to pay for a convenient wireless service option. With only one major competitor, high-priced Starbucks/T-Mobile, an attractive wireless service offering could have a potentially significant impact on revenue, both in terms of income from wireless services and from increased food service sales at McCafés and adjacent McDonald's restaurants. This phase of the marketing plan reviews the market segmentation process, identifies two key market segments, and outlines the wireless service and its delivery in McCafé stores.

Market Segmentation

Market segmentation, where an entire market is divided into segments of consumers who share similar traits, will allow McDonald's to produce a marketing mix designed specifically for the type of consumers it wants to reach. The benefits of marketing segmentation include:

A clear identification of the customer base

Help in creating the proper marketing mix tailored to the wants and needs of the market based on consumer behavior and background

Help in enhancing McDonald's efficiency of production, promotion, and sales by targeting specific consumer groups (Perreault-McCarthy, 2002)

The marketing segmentation process will help McDonald's identify segmented markets, analyze each segment, evaluate market opportunities, and forecast marketing share possibilities.

Such identification process helps focus the company on the most appropriate consumer segment (Perreault-McCarthy, 2002). McDonald's market segmentation should identify target opportunities and divide the consumer within the market. The SWOTT analysis aids in identifying such opportunities; it matches McDonald's core competencies with the requirements needed to fulfill potential prospects, hence pointing to two important considerations relevant to market segmentation. First, with over 30,000 restaurants worldwide, McDonald's is well-positioned to offer wireless service in international markets. Second, its McCafé,