1. Financial Investment: McDonald’s spends a lot of money for marketing promotion and branding. For example, McDonald’s will invite celebrities as the spokesman (Eason Chan) and spokeswoman (Joey Yung) for different promotion. McDonald’s launch large marketing campaigns from time to time to keep customer engaged. For example, the Monopoly Game in 2011.
2. Location coverage: McDonald’s restaurants locate basically every shopping mall and shopping center no matter the class, from the low level like government-subsidized estates to the high level like the peak and central financial district.
3. Good community-caring image: Ronald McDonald House Charities which is a worldwide charity group established in 1974 to help the sick children to heal faster. Part of customers spent in McDonald’s restaurants will be donated to charity. McDonald’s also organized fund raising activities and sponsored activities for cha
...rity especially for children.
4. Good positioning: McDonald’s usually converts itself to suit Hong Kong’s need. A growing number of Hong Kong loves the café culture when Starbuck’s success in Hong Kong. McDonald’s open McCafé to suit the need and to compete with Starbuck’s with a lower price and convenient location (located in all McDonald’s restaurants). Health concern is always a critics to McDonald’s. McDonald’s provides healthy food like salad and corn cup for customers to choose.
5. Target: Children’s menu with toys Clear spokeperson Large investment: Celebrities spokenperson; sponsorship; branding building Large marketing campaign: make the customers involved and engaged
Weaknesses Localization: McDonald’s keeps the global image and American brand in Hong Kong. The menu is unchanged and keeps the western style of hamburgers and fries. Comparing with the major competitor KFC, KFC doe
a better job in localizing the menu to suit Hong Kong. Hong Kong is
Localization: compared with the major competitor of KFC, KFC does a better job in localizing the menu to suit Hong Kong people
Opportunities Increase birth rate in Hong Kong
Threats
1. Obesity: Hong Kong children are being criticized to eat too much junk food with high fat and high cholesterol and obesity is a high concern of Hong Kong parents to their children. McDonald’s is always be the representative of junk food so doctors and nutritionists are asking Hong Kong parents to avoid eating McDonald’s food. Thus this is a threat to McDonald’s unless McDonald’s continuous to strengthen its healthy menu and promote healthy style of McDonald’s at the same time.
2. Increasing wages: with impose of minimum wages in Hong Kong and the society is discussing about the standard working hours as well. The labour cost of McDonald’s is increasing so McDonald’s may not be able to keep the low pricing when comparing with other competitors.
3. Environmental concern: the voice of protecting the planet is overwhelming and all the packages of McDonald’s are using one-time packing and they are disposed immediately after one-time usage. In a long run, this would be the threat of harming the image of McDonald’s if they do not think of the improvement about the package. As the major competitor of McDonald’s, KFC uses reusable utensils for dining in KFC like glasses and plates.
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