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Customer retention at McDonalds

3204 words (13 pages) Essay in Marketing

02/05/17 Marketing Reference this

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In the previous chapter, the researcher explains the strategy to conduct the research. First of all I have mentioned the data collection methods used in order to complete the research. After that I highlight and explain the methods selected and finally explain how those methods are implemented. In this chapter, I am going to mention the finding achieved from the surveys I have conducted based on the questionnaire. I have conducted a total of 63 surveys. 54 out of 63 surveys among the McDonald’s restaurants of Central London area in order to get the answers of Question 1 to 6 of Questionnaire. While remaining 9 surveys visiting Kentucky Fried Chicken (KFC), Burger King, Pizza Hut, Nandos and Subway in order to achieve the answers of Question 7 of the Questionnaire. This questionnaire is asked to the customers visiting the McDonald’s stores by means of surveys. Questionnaire are enlisted in the Appendix section at the end

The answers that researcher got during his surveys in the form of questionnaires are interesting and knowledgeable. The results of these surveys are mentioned in the forms of graphs, tables and charts which are enlisted and described below:

5.2 Data Analysis

The researcher divided survey in five sections based on five set of questionnaires which are demographics (Age and Gender), education, timing of visits, factors in choosing McDonalds, customer retention at McDonalds and factors for Customers switching McDonald.

5.2.1 Demographics

Age Group (years)

The research has been taken place among 123 customers visiting Central London McDonalds stores.

Figure 1: Representing ages in years

The above pie chart shows the percentages of age of consumers visited McDonald’s restaurants. The results are described below:

Customers having ages from 18 to 24

it has been found during survey that the age group visiting McDonalds the most are the young people between the ages of 18 to 25 years. The percentage for this particular ages of customer is 45 %, which is quite significant a number. Study also reveals that most of the customer is this particular age group are students and normally work part time. Therefore because of the high frequency of visits it is very vital for McDonalds to fulfil the requirements of this particular age group more effectively and efficiently to gain competitive advantage over its competitors.

Customers having ages from 26 to 30

The second highest consumers are having from 26 to 35 years. The percentage of visits of these consumers is 33 %. Some of these customers are student and some of them have just completed their degree and started jobs, fewer are business person. This age group consumers often visits McDonalds as couples like husband wife, girl friend and boy friends, family with and without kids. One thing that is common is that all the individuals lying in this age section that all of these customers have busy schedule that’s why all of these customer wants fast and efficient service. McDonalds is able to retain these consumers because of its speedy and effective customer service and satisfaction standards.

Customers having ages from 36 to 40

Only 16% of third age group (ages 36 to 40) visits McDonalds. The consumers in this particular age group are more inclined towards healthy eating habits. These consumers avoid fast food in order to keep them healthy and fit. However, there is a notable number of customers of this age section visiting McDonalds restaurants regularly.

Customers having ages more than 40

The frequency of customers visiting McDonalds more than 40 years is only 6 %. The customers in this particular category are more health conscious. These customer normally visits McDonalds for Tea, Coffee and Hot chocolates. They avoid hamburgers, fries and other regular menu of the restaurants. Moreover these customers are elderly and are more conscious of their health that’s why normally avoids fast food.

Gender

Figure 2: Represents Gender

During the surveys, the researcher has found that 48 % of the customers visiting McDonalds are males and 52 % are females which is not a considerable difference. The above graph shows that McDonalds is popular both in men and women.

5.2.2 Educations

Figure 3 shows educational level of consumers

Consumers having secondary education level

During the surveys based on set of questionnaire it has been found that highest numbers of consumers come to McDonalds having secondary level of education. This is about 49% of overall respondents. These customers have usually been through high school education. Also some of these consumers are labours usually having secondary level education, working in that particular occupation and McDonald’s foods are affordable for them that’s why go to McDonalds. Theses consumers are college students mostly come in group. McDonalds offer good value of money that’s why it is famous among the students who have less sources of income.

Consumers having university education level

28% of consumer visited McDonalds having secondary education level. The reason is the location of restaurants. Most of the customers in Central London area are well educated and the minimum education level is high school. The customers in this category have busy schedule. These respondents are university students, professionals and business persons.

Consumers having primary education level

The customers with primary educational level are 23%. These are mostly foreigners and labourers. The important point here is that theses respondents are regular customers. Therefore it is vital to fulfil the requirements of these customers.

5.2.3 Timings of visits to McDonalds

Figure 4 Represents timings of visits

The above graph shows the timings of visits by customers to McDonalds Central London stores. There are three notable time intervals which are mentioned below:

6:00 am to 12:00 pm

12:00 pm to 6:00 pm

6:00 pm to 12:00 am

Customers visiting from 12:00 pm to 6:00 pm

The chart indicates that 57% consumers visited McDonald’s stores from 12:00 pm to 6:00 pm. The reason is the prime location of these restaurants. Since the researcher is conducting his research in the Central London area of McDonald’s stores. Theses all restaurants are located in the commercial area of main London City. There are lot of shops of different brands and offices nearby. Hence people working close to these stores prefer McDonald’s because they are near and fast in service and most of these working class customers have tight working schedules.

Customers visiting from 6:00 pm to 12:00 am

31% of consumers visited McDonald’s stores from 6:00 pm and 12:00 am. They are mostly evening and night shift staff, working in various shops nearby McDonald’s stores. Therefore during their breaks and when they finish their job, normally visit McDonald’s. This specific group is significant because of their percentage which is about 31 %. In summer and Christmas seasons, lot of foreigners visit McDonalds during above mention hours. These foreigners come from various part of the world. They are American, European, South American, Middle East, African and Asians etc.

Customers visiting from 6:00 am to 12:00 pm

The researcher found that 12% of respondents visited McDonalds from 6:00 am to 12:00 pm. McDonalds stores offer breakfast menu from 5:00 am. These consumers are mostly working class who have to start their work early in the morning therefore chooses McDonalds. Important point here is that they are regular customers.

5.2.4 Factors for Choosing McDonalds

Figure 5 Represents factors for choosing McDonalds

McDonalds Corporation emphasis a great deal on QSC&V statement which stands for Quality, Service, Cleanliness and Value. It is a benchmark used by McDonalds Corporation in order to maintain and access the standards in its own stores and stores run by franchisees. Source (http://en.wikipedia.org)

The success of McDonalds based on personal and professional integrity. The company gain consumer trust by serving hygienic food, honouring its staff and consumers and providing great Quality, Service, Cleanliness and Value.

Source (www.aboutmcdonalds.com)

Value

The research indicated that 36% of consumers eats McDonald’s food because of its value. These respondents buy McDonald’s food because of its great value of money. Theses consumer prefer McDonalds restaurants because they offer cheaper prices for its hamburger, fries and drinks compare to other fast food chains. Moreover McDonalds offer good value of food. McDonalds offers medium size Extra Value Meals like BigMac, Quarter Pounder with cheese, McChicken and McNuggets with fries and any drink less than five pounds which are economical.

Source (www.mcdonalds.com)

Service

It has been found by the researcher that the 31% of customers visit McDonald restaurant is because of its high standards of Customer Care and Service. It is the distinction of McDonalds to provide the highest levels of service to all of its consumers in every store. The main reason for great success of McDonalds is because of its effective and efficient customer care and service. The company can only retain its competitive advantage by satisfying its consumers. It is very important to identify the enquiries and take feedback from customers. This knowledge can be used to improve service standards and fulfil consumers’ requirements appropriately.

Source: (www.mcdonalds.co.uk)

Cleanliness

Around 13% of respondents visit McDonald’s restaurants because of their cleaned and hygienic environment; especially families prefer McDonald’s stores due to their tidy and friendly atmosphere.

Branding

The above pie chart shows that particular numbers of consumers choose McDonalds on the basis of branding. Eating McDonalds has become a part or habit of busy lifestyle. The researcher found that 11 % of customers go to McDonald’s stores because of brand consciousness.

Quality

This research reveals that 9 % of consumers prefer McDonalds due to its highest standards of quality. It has been ensure that every McDonald’s restaurants have appropriate machines and follow accurate cooking methods in order to provide customers safe and hygienic food at all times. McDonalds Corporation is very keen to maintain and develop its food standard and quality. The company has made commitments to food quality, nutrition and safety and work with health and safety team to identify improvements. The key focus of the company is health and safety of its consumers. For this purpose, McDonalds has made a food safety policy guideline in order to maintain the focus on the absolute food quality and safety responsibilities:

It is been ensured that all the raw material supplied to the company must be produced to the optimum levels of safety and hygiene. The company system and methods should be updated in order to ensure the greatest standards of food safety and hygiene for all consumers every time. It is important that all team members should receive appropriate training in food hygiene. The equipments used should be proper for the requirements of every store and should be maintained and calibrated appropriately.

Source (www.mcdonalds.co.uk)

5.2.5 Factors of Customer Retention at McDonalds stores

Figure 6 Shows Customer Retention at McDonalds

It is very important for any company to retain its customers in order to maintain and expand its business. Consumers are the back bone of any business therefore it is vital to understand their needs and motives. There are following reasons for customer retention at McDonalds:

Value for Money

It has been found by researcher that 35 % of consumers visit McDonalds because of the value. McDonalds is one of most economical fast food chain which offers good value of money. During the survey it is revealed that these respondents like McDonalds because of the most affordable prices of food menus it offered. Some of these consumers are students who like Pound Saver menu which includes Cheese Burger, French fries, Mayo Chicken or McFlurry ice creams, while prefer Extra Value Meals.The respondents also mentioned that whenever they buy anything from McDonalds they get good value either drinks, fries , hamburgers or desserts.

Customer Service and Satisfaction

The researcher found that 26 % of respondents go to McDonald’s stores because of their high standards of Customer Service and Satisfaction. Most of the consumers are convinced that they get good customer care and service whenever they visit McDonalds. That is the reason Families prefers McDonald’s restaurants. Few respondents complain about individual bad experiences. According to the consumers, the response time of management is accurate and quick regarding any issues related to customers.

McDonalds Corporation is very conscious about its customers because they are the main focus of the business. Therefore emphasis a great deal on Customer service and Customer Satisfaction (CSCR).In order to attain this, McDonalds appoint Customer Care Assistants. The key responsibility of customer care assistants is to maintain and improve greatest level of customer care and service at all times for every customer. Source (http://mcdcareers.co.uk)

Brand loyalty

The third highest numbers of respondents which are 13 %, visit McDonalds because of the brand loyalty. This group of customers insist that McDonalds is one the leading brand in the fast food industry and it is a symbol of busy lifestyle that’s why they prefer McDonald’s food. According to the consumers branding plays a very important role in the success of any business.

Pleasant friendly environment

The above bar graph indicates that 11 % of respondents visit McDonald’s restaurants because of their cleanliness and welcoming environment. According to the consumers staff of McDonalds are friendly and charming, the dining area and toilets are clean and pleasant at all times. These factors play a vital role in customer retention at McDonald’s stores.

High quality standards

The above chart shows that 10 % of customers come to a McDonald’s restaurant due to its superior quality standards. This group of consumer claim that they get high standards of food quality and safety every time they visit McDonald’s stores. According to the consumers food quality and safety should be the priority of any food company because it is related with public health and McDonalds Corporation is the one which ensues that the foods served in all of its stores are 100 % healthy and hygienic.

New products, Offers and Discount vouchers

Above chart shows that 5% of respondents visited McDonald’s stores because of their new products, offers and discount vouchers. The consumers revealed that McDonald’s promotional menu attracted them. Moreover offer on meals and discount vouchers have an impact on consumers’ choice. According to a respondent, McDonald gives a free hamburger, fries or ice cream on the purchase of a medium meal to a student.

5.2.6 Reasons for leaving McDonalds foods

Figure 7 Indicates Reasons for leaving McDonalds foods

I have done 9 surveys based on question 7 of the questionnaire listed in the Appendix section in order to find out the reasons for consumers switching from McDonalds. I have visited some of the competitors of McDonalds Corporation in the Central London area which include Kentucky Fried Chicken (KFC), Burger King, Pizza Hut, Nandos and Subway. I have found four main causes for consumer leaving McDonald’s foods which are explained below:

Foods contain high levels of fats

The above chart shows that 42 % of customers avoided or left McDonald’s food because they have excessive fats and calories. During the surveys one of the consumers of Nandos commented that hamburgers and fries served at McDonalds contain high level of fats and extra calories whereas menus served at Nandos are grilled rather than fried which is a healthier option. Some of these respondents not totally left McDonalds food but go to fast food very rare.

Continuous use can cause Obesity

The above graph shows that 36 % of respondents avoided McDonalds because regular eating of McDonald’s food can cause obesity. It has been found by the researcher that lifestyle of urban areas is quite busy and people eat fast food a lot which in long run can make them fat. Obesity itself can cause many diseases to a person including diabetics, heart diseases and many others.

Competitors offer more variety and taste

I have found in my research that 22% of consumers switch from McDonalds because its competitors offer more variety and taste. This group of consumers claims that KFC, Nandos and Pizza Hut offer more taste and variety compare to McDonalds. According to one of the customer of Kentucky Fried Chicken (KFC), the chicken fillet burger of KFC is more tasty compare to McDonalds McChicken sandwich. Also KFC offers fried chicken and wings menu which have great taste whereas McDonalds do not make fried chicken pieces and wings. Another customer insisted that Nandos food has more variety and taste.

Key Findings

The key findings from above analysis are enlisted below:

1 Age group

45% of customers visited McDonalds having ages from 18 to 25 years.

33 % of respondents visited McDonalds having ages from 26 to 35 years.

16 % of consumers visited McDonalds having ages from 36 to 40 years.

Only 6 % of respondents visited McDonalds were more than 40 years.

2 Genders

McDonald’s food is equally famous among men and women.

48 % of customers visited McDonalds stores were males whereas 52 % of customers are females.

3 Education

49% of customers visited McDonald’s stores have secondary education.

28% of customers visited McDonald’s stores have university education.

23% of customers visited McDonald’s stores have primary education.

4 Timings of visits to McDonalds

57% of consumers visited McDonald’s restaurants from 12:00 pm to 6:00 pm.

31% of customers visited McDonald’s stores from 6:00 pm to 12:00 am.

Only 12% of customers visited McDonald’s restaurants from 6:00 am to 12:00 pm.

5 Factors for Choosing McDonalds

36% of customers visited McDonald’s restaurant because of its value.

31% of customers visited McDonald’s restaurants because of its high service standards.

13% of respondents visited McDonald’s stores because of its cleaned environment.

11% of consumers visited McDonald’s stores due to brand consciousness.

9 % of respondents visited McDonalds because of their high quality standards.

6 Factors of Customer Retention at McDonalds

35% of customers visited McDonald’s stores due to good value of money.

26% of customers visited McDonald’s restaurants because of implementing high levels of Customer Service and Satisfaction

13% of customers visited McDonald’s stores due to brand loyalty.

11% of consumers visited McDonald’s stores due to pleasant and friendly atmosphere.

10% of customers visited McDonald’s due to its high quality standards.

Only 5% consumer visited McDonalds due to introduction of new products, offers and discounts

7 Reasons for leaving McDonalds foods

42% of customers avoided McDonald’s foods due to high levels of fats and calories.

36% of respondents left McDonald’s food because it can cause obesity.

22% of consumers avoided McDonald’s food because its market competitors offers more variety and taste.

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