HND

BUSINESS

Research Project
Strategic changes in marketing of
McDonald in Hong Kong

Name: WONG Ka Wai

Date of Submission: April 3 2017

Table of Content

Executive Summary

Contents

Acknowledgements

Chapter 1. Introduction

Chapter 2. Background of Study

2.1 Company analysis

2.2 Customer analysis

2.3 Market analysis

2.4 SWOT analysis

2.5 4Ps analysis

2.6 The Ansoff Matrix analysis

2.7 Maslow’s Hierarchy

Chapter 3. Methodologies

3.1 Quantitative analysis

3.2 Qualitative analysis

3.3 Timeline

Chapter 4. Findings & Conclusions

Chapter 5. Recommendations

Appendix

References

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 Strategic changes in marketing of McDonald in Hong Kong

Executive Summary

The Golden arches and Uncle McDonald have long been recognized as brand image of

McDonald. In order to expand its market, strategic changes to meet the local requirement

as well as the global concern is a must. Franchise operation not only allows the company

to earn a reasonable return, but also develop a partnership with other companies for

meeting its expectation, for instance selling a controlling stake in China and Hong Kong

operations for about $1.7 billions to fast food giant reorganization (Bloomberg News,

2017). In light of healthy lifestyle to be concerned by the public, fast food restaurant like

McDonald has to find a way out for promoting their new plans as customer-oriented

healthy foodstuff and green restaurant atmosphere. The following pages contain analysis

of McDonald’s. The review of McDonald for the marketing strategies in Hong Kong is

evaluated. The next chapters for 4Ps, SWOT, Ansoff analysis are being used. The data is

presented and analysed hereafter based on interview and questionnaire to further

understand how the evolutionary changes in recent marketing in Hong Kong and fine-

tune its brand as positive image.

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 Strategic changes in marketing of McDonald in Hong Kong

Acknowledgement

I would like to take this opportunity to thank Mr. Calvic Wong for his advice and support

throughout the process of doing this project. It is really my honor and pleasure to have

Mr. Calvic Wong to be my advisor. During the preparation of this project, so many

constructive ideas on how to develop the whole project, including design of title,

questionnaire design and make improvements to be a better one. I enjoy every moment

with him during consultation in the past few months.

On the other hand, I am also very grateful to my family and friends for the support

endlessly with encouragement and sharing. I would like to thank them for supporting me

to be tough in facing challenges in this project.

Further, I am pleased to have two restaurant managers from McDonlad Hong Kong

Limited to spend some time to undertake the interviews. I would like to thank them for

providing some critical information in this project.

All research described in this project was my own original work and was carried out by

myself with questionnaire.

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 Strategic changes in marketing of McDonald in Hong Kong

Chapter 1. Introduction

McDonald’s Restaurants (Hong Kong) Limited was established in 1975 where the first

restaurant was located at Paterson Street, Causeway Bay, following the global motto of

QSC&V (Quality, Service, Cleanliness and Value) (McDonald’s the Company, 2006).

Brand of McDonald, Ronald McDonald is appeared as white-face, in a canary-yellow

jumpsuit and fire-engine red wig (Deng T., 2009). Selling a controlling stake in China

and Hong Kong operations for about $1.7 billions to fast food giant reorganization, such

plan helps McDonald to reach more than 1500 restaurants over the next five years in

China cities. In line with increasing demand of high quality and healthier dining options,

it helps for the attraction of middle-class Chinese consumers by expanding rapidly and

the re-innovation of old restaurants. At present, McDonald’s current franchise in

Mainland China has reached over 2400; such new partnership targets on menu

innovation, retail digital leadership and delivery (Bloomberg News, 2017). In an attempt

to adopt the marketing strategies in Hong Kong for changing the public perceptions with

a raised concern over healthy image to McDonald, that is to say, Deng T. (2009) claimed

that a recent Google search revealed over 46000000 websites related to the term

“nutrition advice”, health concept has to be introduced and implemented.

Promotion campaign plays a crucial role, which is supported by the tactic of public

relations, sales promotion, advertising (TV, radio, prints), direct sales (site or restaurant

promotions), internet marketing (www.mcdonalds.com.hk) and personal selling

(McDonald’s Ambassadors).

Customer-oriented approaches in McDonald such as My Signature Collection, MyVoice,

24 hours McDelivery, and many others, helps to boost McDonald’s image as friendly and

healthy brand so as to attract more new customers to adore McDonald’s foodstuff.

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 Strategic changes in marketing of McDonald in Hong Kong

The objective of this project is to determine the strategies change in Hong Kong market,

the new plans and developments of McDonald in Hong Kong helps to change the

perception of McDonald to become a positive and healthy brand image and the existing

problems of McDonald that has been facing in the society.

Chapter 2. Background of Study

2.1. Company analysis

McDonald Restaurant Hong Kong Limited is a well-known restaurant in the world.

Nonetheless, it has been challenged by nutritionists with its “junk food” products for a

decade, when the world has been promoting a healthy lifestyle with good eating habit.

Most of people believe that McDonald’s foodstuffs are high in fat and salt. In recent

decade, McDonald’s products are innovative with healthy and Asia-oriented meal for

Hong Kong people. The feedbacks from consumers are still in link with McDonald’s

stereotyped image as junk food provider.

McDonald focus on changing the restaurant environment constantly to meet the demand

of green environment as well as improving its image with Ronald McDonald House

Charities for serving the needy.

With the promotion slogan of “I am already doing it”, with trustworthy and expertise but

not only credibility and attractiveness, since it aids in maximize effectiveness of

marketing. Sometimes, advertisement from McDonald can show a firm and explicit

conclusion to allow customers to feel how truly the heart McDonald has. Deng T. (2009)

illustrated that with the suggestion from dietitian ”a young mother who is worrying about

children’s health of eating McDonald’s a lot that “1 hamburger + 1 salad + 1 game = 1

healthy life”. In addition, by leaving two-sides augment messages, which stated that, fat is

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 Strategic changes in marketing of McDonald in Hong Kong

caused by excess calories ad less exercise but not due to McDonald’s food. Eating smart

and scientifically in McDonald’s, customers can enjoy food without getting fat. Adopting

fear appeals in relationship between health risks and high fat diets frequently in fast food

customers; nevertheless, scientifically proved response alleviate the fear problem, in

connection with the statistics and vivid examples (Deng T., 2009).

2.2. Consumer analysis

The target groups for McDonald’s are mainly children, parents, students and young

people with its brand image as clean, efficient and high quality food and beverages

(MEYER P., 2015). Sometimes, business consumers may also be found in McDonald’s

due to its quick service for their busy work schedule. Also, students and young people are

likely to be attracted by the affordable menu with free Internet connection.

2.3. Market analysis

Meyer P. (2015) stated that McDonald’s take the role as market leader, which occupy

more than 20% share of Hong Kong fast food industry.

Marketing strategies in McDonald’s focus customers in terms of age, current dietary

practice, existing nutritional attitudes and eating behaviors; as such the development of

quality assurance team is established to monitor the food quality for continuous

improvement. Also, McDonald’s chooses supplier with ingredients mainly come from

designated suppliers and are of the best qualities, namely New Zealand, America,

Australia, China, and many others (MEYER P., 2015)

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 Strategic changes in marketing of McDonald in Hong Kong

2.4. SWOT analysis

Strengths

With regards to its strong brand name and reputation, McDonald’s market around the

world finds confident with its increased sales and revenue. In addition to strong and wide

communication channels in the market, namely, advertisement (like TV, radio, print

media and online media), sales promotions (offer discount coupons and freebies for

certain products), public relations (the Ronald McDonald House Charities/ McDonald

Friends Charity for boosting the value of corporate brand to target market) and direct

selling (corporate clientele, local government of community events and parties).

Weaknesses

McDonald’s holds a narrow product lines and its brand is usually stereotyped as junk

food with confusion and skepticism about fast food nutrition messages. A lot of

competitors, such as Burger King, Jolibee, Maxim’s Café de Coral and Fairwood also

bring about the similar products to be sold in market. As such, too many competitors in a

small area of Hong Kong which reduces the ability to increase revenue and company

growth.

Opportunities

In connection with other enterprises, by selling a controlling stake in China and Hong

Kong franchise operations, the number of restaurants will be dramatically increased. Such

enlarged markets in the cities of Mainland China and Hong Kong, together with the

slightly changing market brand image about McDonald for the promotion of new healthy

image, the consumers who care about healthy issue will be welcomed for it.

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 Strategic changes in marketing of McDonald in Hong Kong

Also, modern and busy Hong Kong increases the number of people who dine out, as well

as the increase in full day school students, allowing more consumers to consume

McDonald during lunch and dinner time.

Threats

The change of McDonald foodstuffs may change the taste of the consumers. Again, the

unhealthy junk food image is not easy to erase, there may have a lot of public attacks

about the issues of obesity and heart disease. Moreover, saturation in market slows down

the expansion and revenue in Hong Kong.

2.5. 4Ps analysis

Product

The main product lines such as hamburgers and sandwiches, chicken and fish, salads,

snacks and sides, beverages, desserts and shakes, breakfast/ all-day breakfast, which are

common categories of fast food (MEYER, P., 2015).

McDonald’s Create Your Taste which allows consumers to choose all their favorite high

quality ingredients involving sauce and vegetables in order to build their own burger and

salad (McDonald’s Hong Kong, 2017).

My Signature Collection by McDonald’s provides an option with 3 steps and 27 flavors,

for extra thick 100% angus beef, crispy buttermilk chicken and grilled chicken together

with an assortment of the finest ingredients which are cheesy champignon angus burger,

spicy jalapeno chicken burger and garden breeze grilled chicken burger respectively

(McDonald’s Hong Kong, 2017).

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 Strategic changes in marketing of McDonald in Hong Kong

McCafe is an other product line for a relatively comfortable environment and seats for

espresso coffees, iced coffees, teas, frappes, treats, bakeries, cakes, ciabattas, and the

recent Oreo thins delights with McCafe x Oreo (McDonald’s Hong Kong, 2017).

Place/ Distribution

In terms of place, product distribution in restaurants and McDonald’s smartphone apps

for iOS and Android OS are widely in use. Plus, it is widely distributed, almost at least

one or more than one McDonald’s restaurants in every district in Hong Kong. Those can

be found in busy, crowded market, counters or independent stores, tourist and shopping

centers; less crowded residential areas and even near to schools. You won’t miss one

when you walk out. It is the power of restaurant coverage to step up the revenue. Meyer,

P., (2015) claimed that most sales revenues are where McDonald’s restaurants can be

generated and let customers to claim special deals and locate McDonald for market

penetration and intensive growth strategies.

Promotion

Product promotion in McDonald has been an important tactic, advertisement (like TV,

radio, print media and online media), sales promotions (offer discount coupons and

freebies for certain products), public relations (the Ronald McDonald House Charities/

McDonald Friends Charity for boosting the value of corporate brand to target market) and

direct selling (corporate clientele, local government of community events and parties)

(MEYER, P., 2015).

Buzz marketing, customers do the marketing for McDonald by creating buzz such as

discount and “healthy hour”. With healthy meal consumed, money will be automatically

donated to McDonald charity fund for the needs. This can change the McDonald’s image

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 Strategic changes in marketing of McDonald in Hong Kong

as well as get notice of healthy meal for the public; in addition to negative reinforcement,

cell phone promotion, merchandising, credit card and online order (Deng T., 2009) as a

whole. Further, simple banners and signs on the establishment will bring in customers

with outside lighted marquees (Steve G., Samuel H., & Sue L., 2014).

TV advertisements using local celebrities are powerful but expensive way of promotion,

use print media to distribute coupons and light box advertising in MTR stations are also

of high cost. Charitable organization e.g. the Ronald McDonald House Charities is

established and creation of “Litter Patrol” in Hong Kong for the strong focus on

environmental protection (McDonald’s Hong Kong, 2017). As for the elderly, special

privilege will be given to those with senior citizen card. McDonald’s Fun Club and

McDonald’s Mother’s Club have been undergoing by offering members’ discount for

target customers, such as kids and mothers respectively.

Different restaurant design of McDonald’s in a fashionable Hong Kong metropolis such

as Minimal – a little goes a long way in Diamond Hill; Form & Allergo – freedom and

moments in Sha Tin; Public & Hub Metro – my time, my space in Tsim Sha Tsui and

Wan Chai (McDonald’s Hong Kong, 2017) help making restaurants an eye-catching

possibility. To be more environmental-like, more green decoration and environmental

atmosphere are established in restaurant design.

McDonald’s launches different projects in different time continuously to promote and

brush its brand. For instance, HEALTH project uses TV, radio, magazines, print such as

brochures, posters, scientific reports and public relations such as events, endorsements,

and new channels like Internet and cell phone app (Deng T., 2009).

By adopting three approaches as advertising strategies such as national, regional and local

approaches in order to ensure revenue success (Steve G., Samuel H., & Sue L., 2014)

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 Strategic changes in marketing of McDonald in Hong Kong

Positive dietary and lifestyle change is a complex and formidable endeavor as nutrition

message. In certain countries, fast food TV advertisement with cartoon character has been

banned directly to children, shifting fast food advertisement to healthy-eating messages.

According to global criticism and “Super Size Me” negative effects on McDonald, it tries

to changing the marketing and communication strategies to prevent such negative effects

on the brand image, trying to change on food nutrition structure, promoting menu changes

with healthier salad, fruit and small portion size, offered “Happy Meal” for adults and

children to encourage a balanced and health lifestyle. Nonetheless, changing people’s

concept on McDonald find difficult to take junk foods and not to associate McDonald’s

brand image with healthy food (Deng T., 2009).

Prices

The pricing strategy in McDonald involves price bundling combined with psychological

pricing such as value picks. McDonald’s offers meal and other product bundles for a

discount in price bundling. This makes McDonald’s foodstuff appear to be significantly

more affordable for relatively low-paid consumers. Such pricing strategy draws

consumers’ attention to buy more products (MEYER, P., 2015). The most important

pricing strategy in McDonlad’s to offer competitive low price that can be affordable by

the general public in order to maximize the market revenue in different classes of Hong

Kong citizens.

2.6. The Ansoff Matrix analysis

Marketing Development

McDonald targets different geographical markets like different districts in Hong Kong by

using market segmentation to target different groups of people, age, gender and

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 Strategic changes in marketing of McDonald in Hong Kong

demographic profiles from usual customers. It is used to apply different sales channels

such as direct sales or online for marketing development as well as provide membership

cards.

Diversification

McDonald’s aims to sell completely different products or services to different consumers;

nevertheless, the existing business or products may not be affected. In a medium and long

run, it helps in widening the food categories to attract more existing and new consumers.

Also, add-on advantage on 24-hour delivery service may enhance wider distribution.

Marketing Penetration

McDonald’s adopts the strategy with more products will be sold to the same market by

encouraging more people to choose it. The strategy is to introduce a loyalty scheme with

products card, increase your sales force’s activities, and determine which products have

to invest further and which should be disregarded. In an extreme way, a giant fast food

enterprise can buy a competitor company, particularly in mature markets to enhance the

rate of market penetration.

Product Development

McDonald’s has been developing products by selling different products to the same

people to extend the products with different variants or repackage existing products, so as

to develop related products or services as well as shorten the time to market or improve

customer service or quality.

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 Strategic changes in marketing of McDonald in Hong Kong

2.7. Maslow’s Hierarchy

By applying Maslow’s Hierarchy, McDonald can satisfy its employees with physiological

needs (food, water, shelter), with acceptable salary and room for personal development in

career; it may somehow meet the safety needs (security and protection) to the consumers

as the brand image of McDonald is important not to cause food safety issue on

consumers; social needs (sense of belonging and love), employees and consumers may

find McDonald as a home as McDonald believed that its employees are the primary

source of progress in the field of quality and productivity, that is to say, the result is done

by a man which adhere McDonald’s basic principle (McDonald, 2017); with mothers’

club and fun club membership together with the host as birthday party. Also by achieving

esteem needs (recognition and status), the employees love the famous and multi-national

company for them to develop and be proud of working in; as well as self-actualization

needs (self development and realization) due to the fact that McDonald tried to apply the

human resources as the power of service industry. They concern on personal development

in every single employee, and allow them to have clear and attainable goals. As such it

motivates employees to work harder and recommend the products to others.

Chapter 3 Methodologies

The questionnaire is carried out by randomizing sample of 100 respondents at four

selected McDonald restaurants in Causeway Bay, Yuen Long, Mong Kok and Kowloon

Bay, covering Hong Kong Island, Kowloon and New Territories, where this may cover

the whole Hong Kong population in some extents. Collection of data can be done in terms

of quantitative research.

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 Strategic changes in marketing of McDonald in Hong Kong

A face-to-face interview with two restaurant managers from different districts of

McDonald’s (Hong Kong) Limited in order to come across with the market strategy

especially promotion in restaurants by using inquiry based research so as to gather a more

in-depth understanding of consumers’ behavior.

In addition, marketing journals review as well as literature review in related to the

business and the mode of operation in McDonald are utmost important to give a full

picture of this giant fast food enterprise.

3.1 Quantitative analysis

Demographic population

Among 100 respondents, 67% of them were male. 70% of respondents are single. With

42% were fell into the age group of 31 to 45 while 38% of them were between 18 to 30.

70% of them were tertiary level or above, with 37% were employed and 33% were

student. Most of the respondents had a monthly household income of $10,000 to $20,000.

Consuming habit

Most of the respondents consumed McDonald each week due to convenient (100%) and

price (95%). 90% of respondents were considered McDonald is unhealthy due to the

concept of fast food or junk food as well as the news of trans-fats from cooking oil in the

process of frying process. The rest of respondents considered it as healthy due to media

effect and food types, which are both 80%. Most of consumers visited McDonald 11 to 15

times in the past 3 months. Almost all respondents agreed that salad, corn cup as well as

My Signature Collection are healthy foodstuffs. 90% of respondents went to McDonald

with friends. Almost all respondents were not recommend fast food in McDonald to

others due to unhealthy. 5% were likely to recommend to others, as it is cheap and likely

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 Strategic changes in marketing of McDonald in Hong Kong

for gathering. In consideration with consuming products, 90% of them placed price as one

of the very important factors. Others such as variety of products (70%), taste of products

(72%), nutritional values (69%) and service environment (84%). In respect of promotion,

recommendation from others (65%) and new menus offering healthy fast food (70%)

plays a neutral role, with 60% agreed that they were influenced by media.

Among the companies provided, McDonald’s, Kentucky Fried Chicken, Maxims, Café

De Coral and Fairwood, McDonald listed the highest with 59% as successful marketing

strategy with 28% in Café De Coral comes in second.

Perception on fast food

The respondents agreed that health is very important to consumers (80%), environment in

McDonald’s encourages consumers to consume (72%) and McDonald’s is a famous

brand to consume (60%). With Oriental styled food, which are suitable for consumers

(50%) as well as a combined style of Western and Oriental food fascinated consumers

much (49%) did neutral response. Half of respondents disagreed fast food could be both

convenient and healthy to consumers.

Communication approach

80% of respondents received information of McDonald products from point of purchase

and 70% were from advertisement. Respondents were likely to consume McDonald

products when new products released (92%) and items at discounted period (79%).

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 Strategic changes in marketing of McDonald in Hong Kong

3.2 Qualitative analysis

Based on the face-to-face interview to restaurant managers who have been working for 3

years from different districts, namely Jordan and Wan Chai, brief information about

marketing strategies can be resulted.

The market status in McDonald (Hong Kong) Limited targets on price and speed and that

is the basics of an ordinary fast food culture. Different locations of McDonald restaurants

may somehow be different in food types or stocks to be sold, such as flagship restaurant

in Admiralty so called McDonald Next, meaning it will be the next generation or

revolution of McDonald restaurants for the other branches, no matter the atmosphere, the

setting and the new products, and many others, seed restaurant, one or two restaurants in

Tsim Sha Tsui with pizza products. In order to attract customers, promotion, coupons,

non-food products e.g. toys are required. What is more, restaurant atmosphere is crucial

for increasing influx of customers due to hygienic or cleaning environment that is

valuable to customers. Regularly, McDonlad releases new products to be sold in

restaurant monthly

As for the most profitable or frequent group of customers, it varies from districts to

districts. For instance, in Jordan East Asian and age of 30 are common. South Asian

ethnics were predominated in Jordan possibly due to high population of South Asian. In

Wan Chai, executives and students are common.

The difficulties in managing the operation of McDonald restaurant should be the general

staff management and inexperienced managerial grade staff.

The successful factors in McDonald Hong Kong Limited are hot food items provided and

promotion with frequent new products. Modern marketing channels that step up the

restaurant revenue are posters, cashier screen, television, radio, magazines, staff

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 Strategic changes in marketing of McDonald in Hong Kong

promotion of new products to all target groups, roadshow promotion, facebook, and many

others.

3.3 Timeline

Activity

January

February

March

April
Week number 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Read literature

Finalise objectives

Draft literature review

Read methodology literature

Devise research approach

Draft research strategy and method

Develop questionnaire

Administer questionnaire

Perform interview

Analyse data

Draft finding chapter

Complete remaining chapters

Revise draft, format for submission

Print, bind

Submit

KEY DATES 1 2 3 4 5 6

KEY DATES

1. January 2017: review of literature, research methods and strategy

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 Strategic changes in marketing of McDonald in Hong Kong

2. February 2017: compile, pilot and revise questionnaire as well as collection from

three different locations for primary data analysis

3. Mid-February 2017: compile and revise interview questions and perform

interview from two different McDonald restaurants

4. March 2017: analysis of data for completion of first draft of project report

5. Mid-March 2017: final writing of project report

6. April 2017: final submission

Chapter 4 Findings and Conclusions

Most male and single, 31-45, 18-30 with tertiary educated with employed and students

take the dominant group by earning $10,000 to $20,000. Convenient and price are major

consideration. They believe it is unhealthy due to fast food is being recognised as junk

food with trans fat during food production. Some believe it is healthy with the influence

from media and food types. People are quite frequently visited to McDonald’s with salad,

corn cup and newly promoted My Signature Collection. Often, people believe that it is a

cheaper way to gather with friends.

Those love McDonald are due to price, variety of products, taste and service

environment. Many people agreed that health is very important to consumers,

environment in McDonald’s encourages consumers to consume and McDonald’s is a

famous brand to consume.

New menu offers draws consumers to visit. Many people received information of

McDonald products from point of purchase and advertisement. People are eager to

consume McDonald products when new products released and items at discounted period.

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 Strategic changes in marketing of McDonald in Hong Kong

It is suggested that the value-added McDonald gift card can be implemented. With regard

to the expansion of smartphone application development, the gift card can be a physical

card in hand or mostly importantly, it is a virtual card in McDonald app, such virtual card

can allow consumers to order by using the app. As if using app, they can order anywhere

by tapping the order button and pay for your products, the consumers then pick up at the

designated restaurants. This can save time for lining up at restaurants, particularly those

busy areas.

Further, a salad bar can be launched in Hong Kong for the healthy lifestyle of people

especially ladies. It is known that females are concerned about their health with slim

images. As such, the population of females is lower than that of males in the survey. To

attract this gender group, salad is one of the possible food products.

Apart from burger-dominated mainstream, McCafe is another line of McDonald, selling

coffee and cakes in accordance with the business mode of Starbucks or Pacific Coffee.

Different variety of drinks and desserts can be developed with the invention of McDonald

brand of coffee bean. The expansion in small takeaway industry as tuck shop like Subway

can be considered to increase the competition in the existing market so as to eliminate the

number of competitors. Locations of tuck shop can be found in MTR stations to

maximize the coverage in Hong Kong market.

On the other hand, brushing the brand image as green and positive is crucial, by means of

sponsoring certain events held by environmental group, namely World Wide Fund

(WWF), Oxfam, people may aware that McDonald is somehow belonged to their partner

as environmental friendly company which may use healthy food ingredients for making

burgers. Also, McDonald can also promote or subsidy those food recycling companies to

show its positive attitude and bring out its social responsibility for food industry.

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 Strategic changes in marketing of McDonald in Hong Kong

and expanding mature market against competitors. In order to stay as a leader in the fast

food industry, McDonald’s has to maintain its quick and fast service, high quality of food,

easily accessible locations and affordable pricing of food. In addition, global concern

over health issue may take into consideration for its growth and expansion in Hong Kong.

Conclusion

Traditional promotion channels such as television, poster and magazine is not important

in future, the news and developments in this revolutionary society in Hong Kong, that is

point of purchase and McDonlad app can be the preferred methods in Hong Kong, with

the change in restaurant atmosphere, and further development of apps. People with aged

18-45, who are highly educated, used to click on smartphone app for purchase. Feedback

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 Strategic changes in marketing of McDonald in Hong Kong

It is suggested that the value-added McDonald gift card can be implemented. With regard

to the expansion of smartphone application development, the gift card can be a physical

card in hand or mostly importantly, it is a virtual card in McDonald app, such virtual card

can allow consumers to order by using the app. As if using app, they can order anywhere

by tapping the order button and pay for your products, the consumers then pick up at the

designated restaurants. This can save time for lining up at restaurants, particularly those

busy areas.

Further, a salad bar can be launched in Hong Kong for the healthy lifestyle of people

especially ladies. It is known that females are concerned about their health with slim

images. As such, the population of females is lower than that of males in the survey. To

attract this gender group, salad is one of the possible food products.

Apart from burger-dominated mainstream, McCafe is another line of McDonald, selling

coffee and cakes in accordance with the business mode of Starbucks or Pacific Coffee.

Different variety of drinks and desserts can be developed with the invention of McDonald

brand of coffee bean. The expansion in small takeaway industry as tuck shop like Subway

can be considered to increase the competition in the existing market so as to eliminate the

number of competitors. Locations of tuck shop can be found in MTR stations to

maximize the coverage in Hong Kong market.

On the other hand, brushing the brand image as green and positive is crucial, by means of

sponsoring certain events held by environmental group, namely World Wide Fund

(WWF), Oxfam, people may aware that McDonald is somehow belonged to their partner

as environmental friendly company which may use healthy food ingredients for making

burgers. Also, McDonald can also promote or subsidy those food recycling companies to

show its positive attitude and bring out its social responsibility for food industry.

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 Strategic changes in marketing of McDonald in Hong Kong

As sum, in order to catch the eyes of people in Hong Kong, endless effort to develop new

products with discount or promotion is a must for the success in fast food industry.

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 Strategic changes in marketing of McDonald in Hong Kong

Appendix

Research Questionnaire (Quantitative Method)

Randomized sample of 100 respondents at 4 selected McDonald restaurants in Causeway

Bay, Yuen Long, Mong Kok, Kowloon Bay

1. Gender:

Male _____________ Female _____________

2. Marital Status:

Single _____________ Married _____________ Divorced _____________

3. Occupation:

Student _____________ Employed _____________

Self-employed _____________ Others _____________

4. Age:

Below 18 _____________ 18-30 _____________

31-45 _____________ Over 45 _____________

5. Education:

Secondary level or below _____________

Post-secondary level ___________

Tertiary level or above _____________

6. Household income per month:

Below $10,000 _____________ $10,000-$20,000 _____________

$20,001-30,000 _____________ $30,001-$40,000 _____________

Over $40,0000 _____________

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 Strategic changes in marketing of McDonald in Hong Kong

7. Have you ever consumed McDonald once a week?

Yes _____________ No _____________ (please go to Question 9)

8. The reason to consume in McDonald is/are:

(you can choose more than one)

Convenient _____________ Price _____________

Taste of food _____________ Variety of food _____________

Others _____________

9. Have you ever considered McDonald is healthy?

Yes _____________ (please go to Question 11) No _____________

10. The reasons you did not consider McDonald is healthy is/are:

11. The reasons you consider McDonald is healthy is/are:

(you can choose more than one)

Peers recommendation _____________ Media effect _____________

Food types _____________ Brand _____________ Others _____________

12. How many times have you consumed McDonald in the past 3 months?

Less than 5 times _____________ 6-10 times _____________

11-15 times _____________ More than 15 times _____________

13. Please list the food type(s) in McDonald that you believe is healthy:

14. Whom do you usually go with in McDonald?

Family _____________ Friends _____________

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 Strategic changes in marketing of McDonald in Hong Kong

Colleagues _____________ Others _____________

15. Will you recommend fast food in McDonald to others?

Yes _____________ No _____________ (please go to Question 17)

16. If Yes, state the reason(s) why?

17. If No, state the reason(s) why?

18. Do you think the following factors are crucial when you consume in McDonald?

(please tick your answer)

Very Important Neutral Not Not very

important important important

18.1 Variety of products

18.2 Taste of products

18.3 Nutritional values

18.4 Price

18.5 Media effect

18.6 Recommendation

from others

18.7 New menu offering

healthy fast food

18.8 Service

environment

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 Strategic changes in marketing of McDonald in Hong Kong

19. Which of the following you think is the best marketing strategy for your

consumption? (5 = the best; 1 = the least)

McDonald _____________

Kentucky Fried Chicken _____________

Maxims _____________

Café De Coral _____________

Fairwood _____________

20. How do you agree with the following statement?

(please tick your answer)

Strongly Agree Neutral Disagree Strongly

agree disagree

20.1 Health is very

important to me

20.2 Oriental styled food

are suitable for me

20.3 Fast food could be

both convenient and

healthy to me

20.4 McDonald is a

famous brand to consume

20.5 Environment in

McDonald encourages me

to consume

20.6 A combined style of

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 Strategic changes in marketing of McDonald in Hong Kong

Western and Oriental food

fascinated me much

21. Where do you get information of McDonald products?

(please choose only one)

Advertisement _____________ Internet _____________

Mobile Apps _____________ Recommendations from others _____________

Point of purchase _____________ Others _____________

22. At what occasion you would usually consume McDonald products?

(please choose only one)

With free gift _____________ New products released _____________

Items at discounted period _____________ Others _____________

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 Strategic changes in marketing of McDonald in Hong Kong

Research Interview Questions (Qualitative Method)

A face-to-face interview with two restaurant managers from different branches of

McDonald (Hong Kong) Limited in order to come across with the market strategy

(promotion) in restaurant.

1. How often will McDonald release new products to be sold in restaurant?

2. How will the food types or stocks be varied depends on the location of the

branch?

3. How do you know about the marketing strategy in Hong Kong that will be

different from other countries?

4. What do you know about the market status (e.g. fast food culture, convenient,

teenagers or young adult groups) in McDonald (Hong Kong) Limited?

5. Any competitors you think are the threat to McDonald?

6. What are the strategies required to attract customers?

7. Restaurant atmosphere is crucial for increasing influx of customers? Why?

8. What are the most profitable or frequent group of customers?

9. What are the difficulties in managing the operation of McDonald restaurant?

10. What are the modern marketing channels that can be used to increase the

restaurant revenue?

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 Strategic changes in marketing of McDonald in Hong Kong

References

1. BLOOMBERG NEWS. “McDonald’s Sells Control of China Business to Citic,

Carlyle. https://www.bloomberg.com/news/articles/2017-01-09/mcdonald-s-sells-control-

of-china-business-to-citic-carlyle. [Assessed 09/01/17]

2. DENG, T. (2009). McDonald’s New Communication Strategy on Changing Attitudes

and Lifestyle. International Journal of Marketing Studies. 1 (1), pp. 37-42 (May 2009)

3. McDonald’s the Company (2006). “Brief history”,

http://www.mcspotlight.org/company/index.html [Assessed 10/01/17]

4. McDonald’s Hong Kong (2017) “ Home” http://www.mcdonalds.com.hk/en.html.

[Assessed 30/01/17]

5. MEYER, P. (2015). “McDonald’s Marketing Mix (4Ps) Aalysis”

http://panmore.com/mcdonalds-marketing-mix-4ps-analysis. [Assessed 10/01/17]

(October 7 2015)

6. STEVE, G., SAMUEL, H. and SUE L. (2014). Small Business Marketing Strategy

Based on McDonald’s. ASBBS Annual Conference: Las Vegas, 21 (1), pp. 271-278

(February 2014)

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