Therefore, having a Mctoy fulfils the forth level needs, called as Esteem Needs. Self-esteem is the desire for status, self-respect and prestige. Owning the series of Hello Kitty dolls has gained a sense of fulfilment to the individual because it is not that easy to get the limited edition toys at any time. Besides that, the Kiasu attitude which is very popular among Singaporeans to have something which everyone else is having, regardless of whether it is of any use. The fear of losing out drives the feeling to fulfil their esteem needs, where they are happy knowing they too have one like others. In order to fulfil the esteem need, people are often engaged in either profession or hobby to gain recognition. For those who loves collecting dolls, use this hobby as a platform to gain recognition from others so that they will be praised. Thus, they feel that by owning the series of hello kitty dolls can make them gained recognition. How has McDonalds created value to its consumers by offering Hello Kittty dolls in their Extra Value Meals? Marketing experts, Don Peppers and Martha Rogers say that
The only value a company will ever create is the value that comes from customers. Customer value is the relationship between the consumers perception of benefits they believe they will derive from a purchased compared to the price that will be paid. The total benefit package includes functional attributes of the product and related service attributes. Creating value not only transforms sales effectiveness, it also provides insulation from price pressure. There are many sales strategies, tactics and techniques for creating value for customers. McDonalds has identified the benefits that consumers would gain from the promotion by creating a series of value to its customer through the promotion. The total value created to its consumers by McDonalds comprises of four sources namely product, services, personnel and image.
Firstly, the product (Hello kitty Dolls) were given as a premium to its loyal consumers at its cost price when consumer purchases the Extra Value Meal, rather than charging any extra amount for it. McDonalds has created value to its consumers by offering this product premium. In terms of service, McDonalds has created value to its consumers an alternative way of getting the exclusive dolls, where these dolls can only be purchased through McDonalds outlets during the limited period of time. This series of limited-edition toys will not be available as and when consumers want them. Thirdly, the satisfaction gained by consumers by owning these dolls.
As the dolls were limited edition and were sold at cheaper price, McDonalds has created the satisfaction feeling among its consumers when they own them. And finally image value is created to McDonalds consumers where the consumers have the option to choose designs of their preferences during the one-month promotion. The image of Kitty representing different cultures wedding costumes creates value to those owning them. Thus, McDonalds has added up values from all the four sources mentioned above to successfully create values to its consumers through its Hello Kitty Promotion.
Recommendations and Conclusion
Here are several alternatives that McDonalds should have considered before carrying out the promotion to avoid such havoc from happening:
1) Study the consumer behaviour of Singaporeans
2) Periods of the promotion
3) Increase the number of toys offered for promotion
In conclusion, the havoc caused from the Hello Kitty Promotion in Singapore has not tarnished McDonalds image in any aspect. This was proven when McDonalds introduced another six sets of designs featured royal costumes around the world a year after, and the sales seem not to be declining. There was no repeat of the previous years frenzy as McDonalds was prepared. Several precautions were taken such as limiting the number of dolls each customer can buy to four, and had more dolls in stock for panic buying. Besides that, to monitor and control the crowds, McDonalds has hired security personnel and mobile squad officers to visit McDonalds outlets.