Whether you love ‘em or not, most agree that McDonald’s is a powerful marketing machine. Last week, McDonald’s stock hit an all-time high; market share is increasing; revenues are up. When consumers are spending less, how is this possible?
McDonald’s has made its share of mistakes but they know who buys their products – Moms. Moms driving min-vans at lunchtime; moms on their way to soccer practice. What is more easy for a mini-van-driving-soccer/music-lesson mom than drive thru to pick up a quick bite? There’s no getting car seats in and out, no being late for practice.
By focusing on one of their core demographics, McDonald’s was able to seek out new products to market. The mega restaurant has expanded the opportunities for a mom with new smoothies and frappes, giving moms that little “self-indulgent treat” they so crave mid-morning or early afternoon.
Geoffrey A. Moore, a consultant and author, wrote Crossing the Chasm and Inside the Tornado about marketing high-tech products and increasing market share. Let me loosely apply one of his theories to the McDonald’s scenario and how they develop new markets and products based on what they know best. It looks like this:
Think about your target market:
- How can you best leverage what you already sell to new target markets?
- How can you further leverage new products to your current key demographic markets?
Let’s say that your core demographic is office managers of dental offices. What other products or services can you offer within dental offices? Find a way to leverage what you know about office managers; what other industries can you easily target? Look to expand your offerings to current markets; find new markets by looking for similar attributes.
Apply these principles to your marketing strategy, and soon, you’ll be lovin’ it. – Helen Dutton, Business Coach