EPS/EBIT McDonald's corporate strategy

EPS/EBIT
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EPS/EBIT
The corporate strategy for McDonald’s is low cost strategy; the company has made itself to be recognized in the marketplace as a family friendly low-cost restaurant within the fast food sector. Product positioning simply refers to a marketing technique used in presenting products in the best possible light to dissimilar target audiences (Thomadsen, 2005). The target market for McDonald’s is narrowed down to families with young children and most of the restaurants feature children playgrounds and toys. Product positioning is aligned with McDonald’s corporate strategy in that all of McDonald’s products are positioned or directed toward families and the products are low-cost. The various products sold by McDonald’s are low-cost in order to appeal to families of dissimilar income levels – from low income families to low income families with children whose ages range from 3 to 12 (Thomadsen, 2005). The products priced lowly such that they are affordable to nearly all families with children.
The main weakness in positioning at McDonald’s is that the restaurants are directed at families with small children. Some products such as Happy Meal are advertised with toys for children. In China, McDonald’s offers a balloon with the company’s logo on it to every child who eats at McDonald’s restaurants. Due to their positioning, McDonald’s restaurants are viewed to a large extent as a hangout place for parents with small children. It is of note that the company takes children of the ages of 3 to 12 as its core and its key consumers, and pays a lot of attention in building their loyalty (Thomadsen, 2005). This is both a weakness and potential gap in the product line. As a weakness, it leaves out youngsters/teenagers and adults – 20 to 35 ye...