This report will provide an in-depth situation analysis of McDonald’s in Singapore. In doing so, it will analyze the internal and external environment influencing the company’s operation in Singapore as it introduces new services and products in this region. In doing so, the report will provide an overview of the brand and then discuss the appropriate marketing mix McDonald’ should adopt in Singapore, where the 4Ps will be critically evaluated. The report will also discuss the market situation and provide details about the target market, size, growth, and market share. Furthermore, in the market situation segment, the report will provide competitor analysis using porters five forces. It will then move and discuss the macro and micro environment, which will impact heavily on PESTLE analysis and SWOT analysis. The report will then go ahead and analyze the ideal market segmentation that McDonald’s should adopt and then finalize by drawing a perception map showing the position of McDonald’s against its major competitors, such as KFC and Hamburgers King.
Company Overview and Product Line
McDonald’s is a global fast-food restaurant that has been operation o for a long period. The brand started operating in Singapore in 1979 (McDonald’s, 2023). However, what most people are not familiar with is that McDonald’s is part of Hanbaobao, which was registered as a private limited company in Singapore in 1976, and up to date McDonald’s lists it on the Singapore website that it has the right to operate a McDonald’s restaurant (McDonald’s, 2023). This explains why the receipts usually bear the name Hanbaobao Pte. LTD is when a customer orders food from McDonald’s and pays using a credit or online platform. More so, ever since the company started in Singapore, it has undergone numerous changes in terms of meals and services it engages in. (McDonald’s, 2022). Some of the common products McDonald’s offers in over 135 restaurants in Singapore are the likes of Mcspicy, prosperity burger Chicken McCrispy, e-donation for charities, and 24/7 delivery services (McDonald’s, 2022). All the services mentioned earlier have allowed the company to remain strong in Singapore.
McDonald’s has been providing various services and products from its 135 restaurants in Singapore, providing a menu that aligns with the local demands of Singaporeans. Some common products offered are the likes of Mcspicy, prosperity burger Chicken, McCrispy, Hamburgers, and cheeseburgers (McDonald’s, 2023). These meals are available at all the company restaurants across Singapore, serving over 6.5 million individuals. Besides the single meals named above, the company also offer a collection of meals at set prices, such as family meal (Cheeseburger) and family meal (hamburger).
McDonald’s engages in promotion, and one of the ways through which it promotes its products and services is through the use of social media platforms such as Facebook, Twitter, and Instagram to inform customers of upcoming services (McDonald’s, 2023). Besides social media, the company also promotes its services through charitable donations to help several families and Children access healthcare services (Rmhc.org, 2023). McDonald’s contributes about $200000 yearly to The Ronald McDonald House Charities (RMHC), independently run (McDonald’s, 2023). Besides, whenever a customer purchases a Happy meal at the store, the brand usually donates about $0.05 to RMHC (McDonald’s 2023). Also, McDonald’s promotes itself through the use of its mobile application. The brand has a mobile application which customers can use to order food and get rewarded (McDonald’s, 2023). This is such that whenever s customers order a meal using the McDonald’s application, they will earn ten points for every $ 1 spent.
Pricing is one of the marketing elements that are vital for McDonald’s, and as such, the company is known to have a wide range of products depending on the product being purchased. More so, most of the items found in McDonald’s Singapore restaurants are fair and affordable to most of them. This move is meant to ensure that the restaurant can retain its customers. It also uses Bundle package pricing whereby different meals are charged a single price that is discounted and is much less compared to buying single items.
McDonald’s is available in various places within Singapore. In total, it has about 135 restaurants in Singapore which are located at various places within Singapore. Furthermore, it has about 17 drive-thru in different parts of Singapore, enabling customers to buy their favorite meals without alighting from their vehicles which helps in saving time for busy customers (McDonald’s, 2022). It also has an online distribution channel whereby customers can make orders and deliver them to their desired location using its McDelivery.
The competition in Singapore’s fast food restaurants is high. As such, the economic crisis has resulted in stiff competition as all the restaurants want to appeal to a wide range of the same customers. McDonald’s is not the only fast food restaurant that is operational in Singapore; instead, there are other restaurants such as KGF and Burger King. However, this report will have to look at the market share in terms of the number of restaurants e brand has and the market share it controls. This is such that McDonald’s seems to have a higher market share than most of its close competitors in Singapore, as it was the one with the higher market share, followed closely by KFC. This is such that McDonald’s has a market share of 18.5%, KFC has 5.4%, and Burger King has a market share of 2.4% (Hirschman, 2022). A higher market share indicates that McDonald’s has higher brand awareness than KFC and Burger King.
Apart from the market share, McDonald’s has a higher number p of stores spread across Singapore. This is such that one of its major competitors is KFC which offers the same services and does heavy promotions by offering coupons s that customers can redeem and get the meals in its restaurants across the island (KFC, 2023). Likewise, Burger king also offers stiff competition to McDonald’s as it has about 60 restaurants across Singapore offering the same services (Burgers King, 2023). Despite the extreme competition, McDonald’s has strong brand recognition as it has 135 restaurants which are way higher than KFC, which has about 80 and Burgers King, which has about 60. A high number of stores insinuates that McDonald’s has higher brand awareness which will give it a competitive advantage over KFC and Burger King.
Burger King. (2023). Online offers and ordering. Retrieved February 14, 2023, from https://www.burgerking.com.sg/
KFC. (2023). Let’s start ordering. Retrieved February 14, 2023, from https://www.kfc.com.sg/
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Rmhc.org. (2023). Ronald McDonald House charities. Retrieved February 14, 2023, from https://rmhc.org/#:~:text=RMHC%20serves%20millions%20of%20children,sick%20children%20and%20their%20families.
Hirschmann, R. (2022, October 17). Singapore: Chained Foodservice market share by brand 2021. Retrieved February 14, 2023, from https://www.statista.com/statistics/724478/chained-foodservice-market-share-in-singapore-by-brand/