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Mcdonald’s Marketing Strategy 2024: A Case Study

McDonald’s, a renowned name in the fast food industry , has consistently excelled in brand promotion through its effective marketing strategy. With well-planned advertising campaigns and a targeted approach to market segmentation, McDonald’s has managed to gain a competitive advantage in the industry. By conducting thorough market research and embracing digital and social media marketing , the company has successfully engaged with customers and built customer loyalty programs .

McDonald’s marketing strategy has evolved over time, adapting to the changing demands of the fast food industry . From its initial focus on brand recognition and expanding its market penetration through franchising, McDonald’s has embraced a combination of online and offline marketing methods. The company leverages digital marketing channels like its dedicated mobile app and traditional advertising channels such as billboards and TV ads to reach its target audience .

Targeting a diverse range of customers, McDonald’s has successfully segmented its market to create a family-friendly atmosphere that appeals to brand-loyal casual diners and parents of young children . The introduction of the Happy Meal , with its free-themed toy, specifically targets families and has contributed significantly to building brand loyalty .

McDonald’s adopts an effective advertising strategy to promote its brand and menu offerings. It invests in billboards , TV ads , digital marketing , and social media marketing to maximize its reach. With a strong presence on platforms like Facebook, Instagram, and Twitter, McDonald’s encourages its customers to share their experiences and engages them in a personalized manner. Outdoor ambient marketing , including unique installations, further enhances the brand presence.

Key Takeaways:

McDonald’s marketing strategy focuses on brand promotion and effective advertising campaigns .
The company utilizes market research to segment its target audience and create a family-friendly atmosphere .
McDonald’s advertising strategy includes a mix of traditional and digital marketing methods.
The company engages customers through social media and offers personalized experiences .
McDonald’s customer loyalty programs , such as the Happy Meal , contribute to brand loyalty and attract repeat business.

The Evolution of McDonald’s Marketing Strategy

McDonald’s marketing strategy has evolved over the years to meet the changing demands of consumers and the fast food industry . From its early days of building brand recognition and market penetration through franchising, the company has embraced both online and offline marketing methods to reach a wide audience.

One of McDonald’s key strategies for brand recognition was through franchising. By expanding its franchise business model, McDonald’s was able to rapidly penetrate new markets and increase its presence worldwide. Franchisees played a crucial role in building brand recognition and establishing local market share.

As technology advanced, McDonald’s adapted its marketing strategy to include online marketing . The company recognized the importance of digital channels in reaching its target audience , and invested in online marketing platforms. In recent years, McDonald’s mobile app has become a central component of its digital marketing efforts , providing customers with personalized experiences and convenient ordering options.

At the same time, McDonald’s has not neglected the power of offline marketing . The company continues to utilize traditional methods, such as billboards and TV ads , to spread its brand-centered messages. These offline marketing tactics complement the digital strategies and ensure a comprehensive approach.

Online Marketing Strategies

Mobile app : McDonald’s dedicated mobile app allows customers to easily place orders, access exclusive deals, and customize their meals. The app also offers features like mobile ordering and contactless payment, enhancing the overall customer experience.
Social media marketing : McDonald’s maintains a strong presence on popular social media platforms, engaging with customers, and promoting its brand and new menu offerings. The company encourages user-generated content and utilizes social media influencers to reach a wider audience.
Online advertising : McDonald’s uses various online advertising channels, such as display ads and search engine marketing, to target its audience and drive traffic to its website and mobile app.

Offline Marketing Strategies

Billboards: McDonald’s strategically places billboards in high-traffic areas to reinforce its brand image and showcase new menu offerings.
TV ads: McDonald’s utilizes TV commercials to reach a wide audience and create brand recognition. The company invests in memorable and creative ad campaigns to capture viewers’ attention.

By combining a mix of online and offline marketing tactics, McDonald’s effectively reaches its target audience and maintains a strong presence in the market. The seamless integration of digital and traditional strategies ensures that McDonald’s marketing efforts remain relevant and impactful.

McDonald’s Target Market Segmentation

McDonald’s caters to a diverse range of customers, targeting both brand-loyal casual diners and families. The company strives to create a welcoming and family-friendly atmosphere that appeals to parents and young children.

Through extensive market research , McDonald’s has identified the preferences and demographics of its target market. The majority of its customers fall within the age range of 35 to 54 and have low to average incomes. This valuable data helps the company tailor its offerings to better meet the needs and preferences of its customer base.

One of McDonald’s notable initiatives to target parents of young children was the introduction of the Happy Meal in 1979. The Happy Meal offers a set of children’s meals accompanied by a free-themed toy, creating a fun and enjoyable dining experience for families.

By creating a family-friendly environment and offering menu options that appeal to both children and adults, McDonald’s successfully attracts a diverse range of customers.

McDonald’s Target Market Demographics

McDonald’s target market consists primarily of individuals between the ages of 35 and 54, with low to average incomes. These customers are looking for convenient and affordable dining options that cater to their busy lifestyles.

The table below provides an overview of McDonald’s target market demographics:

This data highlights the importance of targeting parents of young children and customers seeking a convenient and family-friendly dining experience. McDonald’s continuously strives to meet the needs of its target market through menu enhancements, service improvements, and dedicated marketing efforts.

McDonald’s Advertising Strategy

McDonald’s understands the importance of advertising in promoting its brand and new menu offerings. The company allocates a significant amount of its budget to various advertising channels to maximize its reach and create brand awareness .

One of McDonald’s primary advertising channels is traditional media, including billboards and TV ads. The company strategically selects placements and time slots to ensure maximum visibility and impact. By leveraging these traditional advertising formats, McDonald’s effectively reaches a broad audience.

In addition to traditional media, McDonald’s also embraces digital marketing as a core component of its advertising strategy. The company recognizes the power of social media marketing and maintains a strong presence on platforms such as Facebook, Instagram, and Twitter. By engaging with customers on these platforms, McDonald’s promotes customer interactions , encourages them to share their meals and experiences, and strengthens its brand presence online.

To further enhance its advertising efforts, McDonald’s employs outdoor ambient marketing tactics that involve creative and unique installations. These installations create a memorable brand experience and capture the attention of passersby. By utilizing outdoor ambient marketing , McDonald’s extends its advertising reach beyond traditional channels and creates a lasting impression.

By combining traditional advertising channels, digital marketing techniques, and outdoor ambient marketing tactics, McDonald’s successfully reaches and engages its target audience. This integrated approach allows McDonald’s to create brand awareness , promote its menu offerings, and ultimately drive customer traffic to its restaurants.

McDonald’s Digital Marketing Strategy

McDonald’s recognizes the importance of digital marketing in reaching and engaging with customers. The company leverages online advertising platforms, such as social media channels like Facebook and Instagram, to target its audience effectively. By creating visually appealing and engaging content, McDonald’s draws the attention of users scrolling through their social media feeds.

The growing trend of food photography is also harnessed by McDonald’s to enhance brand awareness . Customers are encouraged to share pictures of their delicious meals on social media platforms, creating user-generated content that showcases McDonald’s menu offerings and stimulates customer interaction.

To improve its online visibility, McDonald’s focuses on search engine optimization (SEO). By optimizing the content on its website and integrating relevant keywords, McDonald’s can improve its organic search rankings and drive more traffic to its website. This strategic approach ensures that when customers search for fast food options, McDonald’s is prominently featured in the search results.

Furthermore, McDonald’s understands the importance of building strong relationships with customers. Through social media marketing, the company engages in direct customer interactions by responding to comments, queries, and feedback. This level of engagement helps McDonald’s foster a sense of community and strengthen brand loyalty among its customers.

By combining various digital marketing tactics, including online advertising, social media engagement, search engine optimization , and customer interactions , McDonald’s effectively enhances brand awareness and continuously attracts customers to its restaurants.

McDonald’s Customer Loyalty Programs

McDonald’s understands the importance of fostering customer loyalty , and to achieve this, the company has implemented several customer loyalty programs . By providing unique experiences and personalized offers, McDonald’s aims to create lasting brand loyalty and enhance overall customer satisfaction .

1. The Happy Meal

Introduced in 1979, the Happy Meal has become a staple of McDonald’s customer loyalty programs . This program specifically targets families and offers a fun dining experience for children. Each Happy Meal comes with a themed toy, creating excitement and delight for young customers. The Happy Meal not only encourages repeat visits from families but also builds brand loyalty among children who may become lifelong customers.

2. Personalized Experiences Through the Mobile App

McDonald’s recognizes the value of personalization in creating memorable customer experiences. Through its mobile app, McDonald’s offers customers the ability to customize their orders and receive exclusive discounts and offers. By tailoring offerings to individual preferences, McDonald’s enhances customer satisfaction and encourages repeat visits. The mobile app also allows McDonald’s to gather valuable data on customer preferences , which can be used to refine marketing strategies and further personalize the dining experience.

These customer loyalty programs play a significant role in cultivating brand loyalty and strengthening McDonald’s customer base. By creating unique and engaging experiences, McDonald’s ensures that customers keep coming back for more, driving repeat business and fostering a sense of loyalty to the brand.

Market Research at McDonald’s

Market research is a key component of McDonald’s marketing strategy. The company conducts surveys and questionnaires through various channels to gather valuable customer feedback . By understanding customer preferences , McDonald’s can continuously improve the quality of its food and service.

McDonald’s utilizes both traditional and digital channels to conduct market research. In its stores, customers are often asked to participate in surveys to provide feedback on their dining experience. The company also leverages social media platforms and its mobile app to gather insights from a wider audience.

The data collected through market research enables McDonald’s to make informed marketing decisions. By analyzing customer feedback , the company can identify trends, preferences, and areas for improvement. This helps McDonald’s tailor its offerings to better meet the needs and preferences of its customers.

In addition to surveys and questionnaires , McDonald’s closely monitors digital channels such as social media platforms and online review sites. This allows the company to track customer feedback and sentiment in real time. By staying connected with its customers through digital channels, McDonald’s can respond quickly to any concerns or issues.

Through market research, McDonald’s is able to gain valuable insights into customer preferences and make data-driven decisions. This not only helps improve customer satisfaction but also informs the company’s marketing strategies, ensuring that they effectively resonate with their target audience.

McDonald’s Competitive Advantage

McDonald’s has established a strong competitive advantage in the fast food industry through its brand recognition, global presence , customer loyalty , and innovative marketing tactics . The company’s strategic marketing strategies have played a pivotal role in positioning McDonald’s as a leader in the industry.

One of McDonald’s key strengths is its brand recognition. The iconic golden arches and the famous “I’m lovin’ it” slogan have become synonymous with the McDonald’s experience worldwide. This brand recognition gives McDonald’s a competitive edge by attracting customers and instilling trust in the quality of its products.

With over 37,000 restaurants in more than 120 countries, McDonald’s global presence is a significant advantage. The company’s expansive network allows it to reach a diverse customer base and cater to local preferences and tastes. McDonald’s ability to adapt its menu and marketing strategies to different cultures and markets demonstrates its commitment to serving customers worldwide.

Customer loyalty is another crucial aspect of McDonald’s competitive advantage . The company’s customer loyalty programs, such as the Happy Meal, create a sense of attachment and loyalty among families and young children. By offering personalized experiences through its mobile app, McDonald’s strengthens its relationship with customers, enhancing brand loyalty and encouraging repeat visits.

McDonald’s innovative marketing tactics also set it apart from competitors. The company continues to push boundaries and embrace technological advancements to connect with customers. From unique advertising campaigns to tailored digital experiences, McDonald’s uses innovative marketing approaches to engage and attract its target audience.

McDonald’s Competitive Advantage can be summarized as follows:

In conclusion, McDonald’s competitive advantage lies in its brand recognition, global presence, customer loyalty, and innovative marketing tactics. By leveraging these strengths, McDonald’s maintains its position as a leader in the fast food industry and continues to drive growth.

McDonald’s Market Expansion and Growth

McDonald’s has experienced remarkable market expansion and rapid growth since its early days. The establishment of its first franchise agreement in 1952 marked the beginning of its global footprint. Today, McDonald’s operates over 40,000 restaurants worldwide, solidifying its position as a dominant force in the fast food industry. Its strategic marketing initiatives, including brand recognition and targeted advertising campaigns, have played a vital role in driving its market expansion and growth. With consistent sales growth and a strong global presence, McDonald’s continues to thrive as a leader in the fast food industry.

Franchise Agreements and Global Expansion

McDonald’s remarkable growth can be largely attributed to its successful franchise business model. The company entered into its first franchise agreement in 1952, allowing it to expand rapidly and establish a presence in new markets. By partnering with franchisees, McDonald’s has been able to leverage local knowledge and expertise while maintaining consistency in its offerings. Today, McDonald’s has franchise agreements with independent business owners in multiple countries, contributing to its global sales and market expansion.

Market Growth and Presence

McDonald’s continuous growth is evident in its extensive network of restaurants around the world. With a presence in over 100 countries, McDonald’s operates both company-owned and franchisee-operated restaurants, catering to diverse consumer preferences and tastes. The company’s commitment to adapting its menu to suit local tastes, while maintaining its signature offerings, has been a key driver in its market growth and widespread popularity.

To illustrate McDonald’s global presence, here is a table showcasing the top 10 countries with the highest number of McDonald’s restaurants:

The Power of McDonald’s Marketing Strategies

McDonald’s marketing strategies have been pivotal in driving its market expansion and growth. The company’s focus on building global brand recognition has allowed it to establish a strong presence in new markets. McDonald’s targeted advertising campaigns, tailored to local cultures and preferences, have effectively captured the attention of consumers and encouraged them to visit their restaurants.

Furthermore, McDonald’s commitment to utilizing digital marketing channels has been instrumental in its growth. The company effectively leverages social media platforms, search engine optimization , and online advertising to reach and engage with its target audience. By embracing digital marketing, McDonald’s has stayed ahead of the curve and effectively tapped into the online consumer market.

The image above depicts the global presence of McDonald’s, symbolizing its market expansion and growth.

Through its innovative marketing strategies, McDonald’s has successfully attracted customers, enhanced its brand image, and fostered long-term loyalty. As a result, McDonald’s continues to experience significant market expansion and growth, solidifying its position as a leader in the fast food industry.

McDonald’s Impact of COVID-19 on Marketing Strategy

The COVID-19 pandemic has had a profound impact on McDonald’s marketing strategy, prompting the company to adapt and innovate in response to changing consumer behaviors and safety regulations. With a focus on digital marketing, contactless experiences , delivery services , and safety precautions , McDonald’s has navigated the challenges posed by the pandemic while continuing to meet the needs of its customers.

Shift towards Digital Marketing

In order to reach customers and maintain brand visibility during lockdowns and social distancing measures, McDonald’s has intensified its efforts in digital marketing. The company has leveraged social media platforms, email marketing , and targeted online advertisements to engage with its audience and promote its products and services.

Contactless Experiences

Recognizing the importance of safety and hygiene, McDonald’s has introduced contactless experiences in its restaurants. This includes contactless pick-up options, digital kiosks for ordering, and mobile app features that allow customers to customize their meals and make cashless payments. By providing these contactless experiences , McDonald’s ensures a safer and more convenient dining experience for its customers.

Expansion of Delivery Services

With the closure of dine-in options and the increased demand for food delivery, McDonald’s has expanded its delivery services . The company has partnered with popular food delivery platforms and implemented efficient delivery systems to bring its menu directly to customers’ doorsteps. By offering delivery services , McDonald’s has adapted to the changing preferences of consumers and provided them with convenient access to their favorite meals.

Safety Precautions

In response to the pandemic, McDonald’s has implemented rigorous safety protocols to protect both customers and employees. This includes enhanced cleaning procedures, strict adherence to social distancing guidelines, and the use of personal protective equipment. These safety precautions not only ensure the well-being of those who visit McDonald’s restaurants but also communicate a strong commitment to customer safety.

By embracing digital marketing, contactless experiences, delivery services, and safety precautions , McDonald’s has successfully navigated the challenges brought about by the COVID-19 pandemic. The company’s ability to adapt to evolving customer needs and market conditions demonstrates its resilience and commitment to providing a safe and enjoyable dining experience for all.

McDonald’s Future Marketing Initiatives

As a leader in the fast food industry, McDonald’s is committed to staying ahead of the competition and driving future growth through innovative marketing initiatives. The company recognizes the importance of personalization, sustainability, and community engagement in shaping its future marketing strategies.

Innovation:

McDonald’s understands the significance of innovation in capturing the attention of its target audience. By continuously exploring new ideas and embracing emerging technologies, McDonald’s aims to revolutionize the fast food experience. From digital advancements to interactive dining solutions, the company is focused on enhancing customer engagement and satisfaction.

Personalized Marketing:

Building upon its vast customer data and preferences, McDonald’s is determined to deliver personalized marketing experiences. By utilizing customer insights, the company can tailor its offerings to meet individual preferences and create memorable interactions. Whether through customized menu options or personalized promotions, McDonald’s aims to strengthen its connection with customers.

Sustainability Initiatives:

McDonald’s recognizes the importance of sustainability in today’s world. The company is working towards reducing its environmental impact and implementing sustainable practices throughout its operations. From responsible sourcing of ingredients to eco-friendly packaging solutions, McDonald’s is committed to making a positive difference for the planet.

Community Engagement:

Community engagement and social responsibility are integral components of McDonald’s future marketing initiatives . The company actively seeks opportunities to connect with local communities and contribute to social causes. By fostering meaningful relationships and making a positive impact, McDonald’s aims to be more than just a fast food restaurant.

By embracing innovation , personalized marketing , sustainability initiatives , and community engagement , McDonald’s is positioning itself for success in the future. The company’s forward-thinking approach ensures that it will continue to evolve and meet the changing needs of its customers, while maintaining its position as a leader in the fast food industry.

McDonald’s marketing strategy has played a vital role in its success as a leader in the fast food industry. The company’s unwavering focus on brand recognition, customer loyalty, digital marketing, and market research has allowed it to stand out from its competitors. By investing heavily in advertising and utilizing a variety of marketing channels, McDonald’s effectively reaches its target audience and creates brand awareness. Through customer loyalty programs and personalized experiences, McDonald’s fosters a strong sense of brand loyalty and keeps its customers engaged.

One of McDonald’s key strengths lies in its ability to continually evolve its marketing strategies and embrace innovation. By staying at the forefront of digital marketing trends and utilizing customer data, McDonald’s delivers personalized experiences that resonate with its target audience. Moreover, the company’s commitment to market research allows it to understand customer preferences and make informed marketing decisions. In a highly competitive industry, this gives McDonald’s a significant competitive advantage .

As McDonald’s looks to the future, it remains committed to driving growth through its marketing efforts. The company will continue to invest in innovative marketing initiatives that deliver personalized content to its customers. It will also focus on sustainability initiatives and community engagement, further enhancing its brand reputation. By staying true to its core values and consistently delivering exceptional marketing experiences , McDonald’s will maintain its position as a leader in the fast food industry.

What is McDonald’s marketing strategy?

McDonald’s marketing strategy involves various tactics, including brand promotion , advertising campaigns, market research, digital marketing, social media marketing, and customer loyalty programs.

How has McDonald’s marketing strategy evolved over the years?

McDonald’s marketing strategy has evolved to include both online and offline marketing methods, such as digital marketing, mobile apps, billboards, TV ads, and social media marketing.

Who is McDonald’s target market?

McDonald’s target market consists of brand-loyal casual diners and families, with a specific focus on parents of young children.

How does McDonald’s advertise its brand and menu offerings?

McDonald’s utilizes various advertising channels, including billboards, TV ads, digital marketing, and social media marketing, to promote its brand and new menu offerings.

How does McDonald’s use digital marketing in its strategy?

McDonald’s leverages digital marketing platforms, such as social media channels and search engine optimization, to engage with customers, improve brand awareness, and drive website traffic.

What customer loyalty programs does McDonald’s offer?

McDonald’s offers customer loyalty programs like the Happy Meal, which targets families and provides a fun dining experience for children. The company also offers personalized experiences through its mobile app.

How does market research contribute to McDonald’s marketing strategy?

Market research helps McDonald’s understand customer preferences, improve its offerings, and make informed marketing decisions based on customer feedback and sentiment.

What is McDonald’s competitive advantage?

McDonald’s competitive advantage lies in its strong brand recognition, global presence, customer loyalty, and innovative marketing tactics that set it apart from competitors in the fast food industry.

How has McDonald’s expanded its market presence?

McDonald’s has expanded its market presence through franchise agreements and rapid global growth, currently operating over 40,000 restaurants worldwide.

How has the COVID-19 pandemic impacted McDonald’s marketing strategy?

McDonald’s has shifted its focus to digital marketing and contactless experiences, such as delivery services and online ordering, to adapt to safety regulations and changing customer preferences during the pandemic.

What are McDonald’s future marketing initiatives?

McDonald’s future marketing initiatives include leveraging customer data for personalization, focusing on sustainability initiatives, and engaging with local communities through community outreach programs.

Editorial Team

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In 1940, California was where the first McDonald's opened. It became well-known quickly for its tasty hamburgers and friendly service. Eight years later, it was one of the first places to switch from traditional table service to fast food. It added new kinds of burgers and milkshakes to its menu. The success of the development led the company to sign its first franchise agreement in 1952, which led to rapid growth worldwide. The company runs about 40,031 restaurants worldwide, and sales in other countries brought in about $21.076 billion in 2019.

McDonald's marketing strategy has helped the company achieve the success it commands today. From the start of its growth, the company wanted to build strong brand recognition and market penetration to help promote its growing franchise business. As the company's number of customers grew, they did more research on demographics to help them target easily. McDonald's marketing strategy includes investing in online and offline marketing methods that spread its clear, brand-centered messages to a large audience and using other channels like its dedicated mobile app to reach and keep loyal customers.

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McDonald's has a wide range of customers because it uses mass marketing and has low prices at fast-food restaurants. Most of the chain's customers are between 35 and 54. Buyers, both men and women, often have low to average incomes. They are known as brand-loyal casual diners who spend an average of $7.79 each time they eat.

Many of these customers are parents of young children who like that the brand's atmosphere and food are good for families. This market group was first targeted in 1979 when Happy Meal, a set of children's meals with a free-themed toy, was introduced.

McDonald's website wants to create a "pleasant, entertaining environment for everyone to enjoy." This shows how many different kinds of people it wants to attract. The brand does primary market research to determine how to market itself and make sure it fits the demographics of the people it wants to reach. McDonald's uses surveys and questionnaires in stores, on social media, and through its mobile app to find out how happy customers are with the food, service, delivery, and other things. McDonald's Community and other digital channels are always being watched to keep track of what customers say and do.

McDonald's spends a lot of money on billboards and TV ads. In 2018, the company spent nearly $1.5 billion on advertising in the US alone. Outdoor, TV, and radio ads aren't likely to reach many people, so digital marketing strategies are used to send consistent information to people who aren't likely to see or hear the ads.

McDonald's marketing strategy uses TV and radio to get the word out about its brand and promote new menu items, meal discounts, and charitable work. Its broadcast channels and times are chosen so that most people will watch or listen. In November 2018, when the NFL season was at its peak popularity, McDonald's is expected to have spent $52.9 million on TV ads in the United States. This shows the importance of the fast-food chain getting the most prominent broadcast ad positions.

McDonald's has a lot of traditional billboard ads, which have the same marketing goals and content as its TV ads. With billboards that range from static to digitally interactive and are placed in high-visibility, high-traffic areas, the company tries to keep its target demographic and other connected consumer groups thinking positively about its brand.

This is a great example of how multiple ways to promote the same goals can make the campaign more successful compared to campaigns that only use one method.

McDonald's also does creative and interesting outdoor ambient marketing. Ambient advertising is when promotional materials are put in places or on things that are very unusual or unexpected or that aren't usually used for advertising. McDonald's is using this type of guerrilla marketing to make more of an impact on customers. McDonald's campaign shows this for its "Massive McMuffin Breakfast." During the whole year of 2010, the company put up big paper takeout bags with the name of its new breakfast item on major streets in New Zealand. The unexpected and hard-to-miss image got a lot of attention from people walking by, as shown by the many photos of the scene people took and shared on social media. This helped promote the McMuffin breakfast.

The brand's street markings at pedestrian road crossings are another example. They are meant to look like fries sticking out of a McDonald's-branded package of fries.

Online advertising helps the brand reach its goals of building brand awareness and creating demand. The information used online is similar to what you might see in a McDonald's TV ad or on a billboard. However, both the language and the graphics are made to work best on the social media platforms used, such as Twitter, Facebook, and Instagram. By asking customers to post pictures of their meals online, McDonald's takes advantage of the growing food photography trend. In fact, between September 2018 and February 2019, 4,9 million logos of McDonald's were posted on Twitter around the world. This made McDonald's the second most pictured brand.

The company also works on search engine optimization (SEO), but its "organic" SEO method does better than "sponsored" promotion. As of December 2019, 90.7% of the search traffic to mcdonalds.com came from natural search results, while 9.3% came from sponsored keywords.

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McDonald's marketing strategy in the digital medium includes customer interactions through social media like Facebook and Instagram. The customers interact with the brand and with each other on social media. Also, the company offers various discounts and coupons through their social media pages and the company app. McDonald's was one of the few companies that performed well during the 2000s recession. The reason for the success was that the company communicated its strategy to the consumers.

McDonald's digital marketing strategy allowed the company to fight back rumours circulating on social media in 2018. The company got a Long Term Excellence Award from the Marketing Society. The company responded directly to the allegations that it faced and was able to get its message out in the open.

McDonald's marketing strategy across the various offline and online methods has allowed the company to maintain its leadership position in the fast-food business. The target audience is families that allow most of the population to feel comfortable at the restaurant. McDonald's marketing strategy across the digital channels helps the company communicate clearly and directly.

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McDonalds marketing strategy: Inspiring Findings from a Case Study

case study mcdonald's business plan marketing essay

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Published on Feb 23 2023

McDonalds marketing strategy: Inspiring Findings from a Case Study

Introduction to mcdonald’s, about mcdonald’s, mcdonald’s marketing strategy – the 5ps, mcdonald’s challenges.

The History of McDonald’s growth was something more than what had been expected. From being just a drive-through restaurant to earning college credits from Hamburger University, they’ve had a great journey, not just as a food service but as a great competing business in the market as well. And the market competition that its competitors face is no exception.

Right after World War II, there were a lot of businesses introduced to keep up with the economy for survival. This is where most of the food-serving business came into the picture. With the increase in services, there was also an increase in market competition.

Case studies were conducted to thoroughly examine the causes of such difficulties in order to adequately explore how to solve them for businesses. They strive to identify a solution to the issue after conducting a thorough examination.

Here is another Sprintzeal article that will introduce you to some of McDonald’s successes from their business case studies. This is a compilation of the top five inspiring McDonald's solutions gleaned from the case study on McDonald's marketing and service.

The McDonald brothers, Maurice ("Mac") and Richard, established the first McDonald's restaurant in San Bernardino, California, in 1940. At first, it operated as a drive-in with a limited food menu. This made it easier to provide a high-quality service while also being quick and efficient.

This limited menu included a 15-cent hamburger, a few varieties of shakes, and fries. This helped the McDonald brothers operate their speed service system effectively and introduce it to other places by franchising it. To adapt to mass expansion and engage more customers, they continued to add new varieties of shakes and burgers.

In 1955, Ray Kroc opens the first franchised McDonald's in Des Plaines, Illinois as its franchising. The first advertisement for MacDonald’s was done in the 1960s as a first mode of promotion for the business.

20 years into the business, McDonald’s brothers began to face heavy competition within the same business and service. Yet again, for being a quick-service restaurant, they had to face a lot of direct competition. Most of its competition came from Taco Bell, Subway, Burger King, and KFC. Here is how McDonald's tackled its competitors to become a worldwide success.

Since the competition in the field was heavy, every business began to come up with their own unique strategy to compete with one another. Direct competition's harsh reality is that it must be met with new, similar, and relevant products. Another unavoidable fact is that you must attract customers away from your competitors while also providing satisfactory service.

" To grow under such competition is to make a way out, to reach out to the world..." And so they did. Here are some of the findings that contributed to McDonald’s worldwide success. The 5Ps marketing strategy allowed them to reach a wide audience. The 5Ps are five important factors to consider: place, product, price, people, and promotion.

One of McDonald’s primary objectives is to ensure that the product fulfills every customer’s demand and also to maintain the same bond over the long term. McDonald's cherishes its customers, which is why they adapt their services to suit customer preferences and lifestyles. They value building long-term relationships with their clients and customers.

The following are some inspiring findings for McDonald’s worldwide succession:

McDonald’s marketing strategy – Place

McDonald's franchised locations are one of the best strategies they have implemented for the best results. They majorly target people of young ages, like college students and family, since almost every McDonald's outlet is a fun place to visit and to play at. With this, McDonald’s customer count grew due to its loyalty to its customers.

After a small survey, it was noticed that, on average, an adult is spending about 7+ USD for a single meal. This was because the outlets are easily accessible, but more than just being accessible, it was because the pricing was very reasonable and affordable.

McDonald’s marketing strategy – Pricing

The strategic planning done with pricing based on the customer’s profile can be called a masterplan. Another masterpiece was making it as affordable as possible while also not making it super cheap, which would cause them to run loose.

As the customer’s profile said, it was seen that the majority of people using the service were college adults and family members. This forced them to rethink their franchise placement. It was also discovered that the buyers for the chain were both men and women who frequently worked for low to average pay. This data allowed McDonald’s to precisely strategize their pricing for their service in the most appropriate way.

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McDonald’s marketing strategy – Product

As previously stated, McDonald's was founded in 1940 in San Bernardino, California, with a very limited menu in order to provide quality service while also being quick. They had to make some changes to their products as franchising grew in order to maintain that loyal bond with their customers.

Initially, McDonald’s was known for their burgers, which were made of pork and beef. Due to religious reasons, customers felt uncomfortable with all other products. With this, there was a gradual decrease in the number of customers. Hence, to bring the customer count up and satisfy customers' demands, McDonald’s then began to work on burgers with chicken and fish as an alternative.

Customers stayed loyal to the brand, and McDonald’s paid them in exchange by giving first priority to customer satisfaction.

McDonald’s marketing strategy – Promotion

The companies’ promotion strategies are yet another well-designed master strategy. Utilizing multiple forms of promotion, they had the chance to reach more new customers and stay engaged with their existing loyal customers.

Promotional communication methods such as billboard advertising, contests, broadcasts, coupons, and other emotionally connecting marketing contents make a good impression on customers and also aid as a step towards brand awareness. When the topic is about advertising and promotion, being presentable plays a key role.

McDonald’s marketing strategy – People

Due to the mass marketing done by McDonald's, they generate a large number of customers. McDonald's always conducts primary research on its customers, utilizing the massive customer profiles now available to clearly understand the demands and satisfy them in the required manner.

As it all boils down to one sole reason, the main objective of McDonald's marketing and advertising is to make people aware of its brand, its products, and its services. To get more details and questions from the customers, they perform surveys and questionnaires at stores. They use this data to help them build a better brand by meeting the needs of their customers.

Referred article: A CASE STUDY ON MCDONALD’S MARKETING STRATEGIES

One of the most challenging things faced by McDonald's was bringing their menu to India while franchising. Because the majority of the Indian population is lacto-vegetarian and eats meat, they needed to find alternatives for beef and pork, as well as for religious reasons.

McDonald's prioritized their customers' demands and accepted the challenge. With this, the burger filling was replaced with a potato base, naming it the McAloo Tikki for the Indian vegetarian customers. And, as read from one of the blogs read on the internet, written by the McDonalds Company, they say “ McAloo Tikki burger is a balanced meal, with recommended amount of protein, fat, and carbohydrates.”

In addition to the Indian menu with alternatives like chicken and fish was made for the Indian non-vegetarian customers.

McDonald's even decided to separate vegetarian and non-vegetarian cooking methods in order to provide a completely vegetarian experience.

McDonald's always prioritizes its customers' comfort and demands. This allows them to stay loyal to their customers, allowing a huge number of families to feel comfortable with the brand at the restaurants.

By opting to make use of multiple marketing communication methods, McDonald's makes its way to the top over all other fast food businesses. Marketing strategies not only help businesses grow with respect to revenue but also help spread awareness to wide audiences.

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McDonald's Corporation

By: Frank T. Rothaermel, John Kim

The case is written from the perspective of McDonald's CEO Steve Easterbrook. Easterbrook assumed office in March 2015, and the case highlights the company's recent and dramatic decline in…

Length: 23 page(s)
Publication Date: Sep 28, 2017
Discipline: Strategy
Product #: MH0050-PDF-ENG

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The case is written from the perspective of McDonald's CEO Steve Easterbrook. Easterbrook assumed office in March 2015, and the case highlights the company's recent and dramatic decline in performance amidst increasing competition. In addition, the case details Easterbrook's strategic initiatives in an attempted turnaround of McDonald's' fortunes. With some $25 billion in sales (in 2017) and some 45,000 restaurants globally (thereof 27,000 in the U.S.), McDonald's remains the largest quick-service restaurant (QSR) chain. At the same time, McDonald's has been struggling on several fronts in recent years. Attempting to be "everything for everybody," McDonald's fell victim to being "stuck-in-middle," without a clear strategic position. With such a large global installed base of restaurants and franchisees, any changes coming from the McDonald's headquarters require significant leadership, investment, and potential risk.

Learning Objectives

Vision, mission, and values; Core competency; Business model; Business unit and corporate strategy; Industry and competitor analysis.

Sep 28, 2017

Discipline:

Geographies:

United States

Industries:

Restaurants and food service industry

McGraw-Hill Education

MH0050-PDF-ENG

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McDonald’s Marketing Strategy – a Case Study

Executive Summary

Introduction

Mcdonald’s background.

Environmental Analysis
SWOT Analysis

Study Objectives

Marketing Mix
McDonald’s Marketing Mix

Formal Marketing Control

Marketing audits, executive summary.

McDonald’s is one of the largest companies that specialize in fast food in the whole world. The company has experienced expansion businesswise to feature a global scale. However, McDonald’s faces a number of challenges in its operations. One of the main challenges is the stiff competition from fast food joints such as the KFC. In addition, McDonald’s suffers from the problem of cultural diversity in the areas where it operates which makes it hard for it to implement its marketing strategies.

This report therefore, presents an analysis of the internal and external environments of the company, reviews its marketing mix. The report finds out that the implementation of the company’s marketing strategy in international markets is influenced by cultural differences including language, value and customer behaviors.

The implementation of a marketing strategy in most of the international markets is affected by major factors such as value, language and the way customers behave when looking at the national aspect (Barnes 2008).

For this reason, it becomes important to analyze the cultural background and differences of any company in order to determine whether the company’s culture has any influence on the marketing strategies in terms of place, promotion, price and product. This report aims at analyzing the marketing strategies of McDonald’s company. As such, the report will cover the background of the company, its environmental analysis, SWOT analysis, and the general marketing mix of the McDonald.

McDonald’s Corporation is one of the largest multinational enterprises dealing with fast foods such as breakfasts, salads, milkshakes, coffee, soft drinks, French fries, chicken and hamburgers (Deng 2009). It operates within the fast food industry serving more than 120 countries and owns more than 290000 restaurants located in major parts of the world. In addition to the above products, the company stills deals with other consumable products by the use of set standards within the fast food industry.

Such a scale of operation explains why McDonald is one of the largest suppliers of fast foods in the whole world. McDonald’s employs over one million people and such a large number of employees make it possible for the corporation to offer quality services to all its customers, as well as offer a demonstration of the outrageous size of MacDonald’s. For any given year, McDonald’s has the potential of serving over 96% of the global population.

McDonald’s first restaurant was started in the fifties, and since then, the company had been working towards broadening its operations through the company’s mission of expanding all costs (Deng 2009). This implies that the company should establish very numerous outlets within the company’s resources.

According to Vrontis and Pavlou (2008), McDonald’s prides itself in the use of several strategies that have been successful in ensuring that the company remains at the fore front of the fast foods industry. The company thus changed the world’s eating habits through the strategy of leveraging on the spending habits of the customers, real estate, brand power, as well as on the company’s cash flow.

McDonald’s Environmental Analysis

In carrying out the environmental analysis of any company, it is important to consider both the internal and external analysis of the given company.

The external environment

The external analysis in this context will involve the competition, political, legal, economic, social and technological factors.

Competition

Barnes (2008) points out that there is a lot of competition within the fast food industry. It is anticipated that the competition will become intense with time with the main focus being on pricing strategy. This can be attributed to the fact that there are so many restaurants being started every day. In addition, some of the competitors of McDonald’s, such as KFC, have invested a lot of capital thus threatening the existence of McDonald’s company in the market.

Economic growth and stability

There is a lot of pressure on McDonald’s as far as the economic factors are concerned. This can be attributed to the fact that economic factors affect organizational performance. Deng (2009) points out that some of the economic factors affecting the organizational performance of McDonald’s include the rate of unemployment, exchange rate, and tax rate. When operating from the local market setting, a company faces governmental regulation especially on profit and tax.

Considering that McDonald’s operates in many parts of the world, the company has established itself with the government of the countries where it operates. However, different countries have different regulations based on their tax index. As such, the exchange rates, as well as the people’s living standard tend to influence the productivity and cost of operations.

Political trends

Different policies especially, from the governments of different countries negatively affect the operations of McDonald’s as far as fast food regulations are concerned. Some of the regulations are based on hygiene and health policies. Research has showed that many people are concerned with their eating habits. This follows high cases of cardiovascular diseases and effects of cholesterol. For this reason, there is a need for the company to maintain a cordial relationship with different countries’ governments in order to remain in the fast food market.

Legal and regulatory issues

Considering that McDonald’s is in the fast food industry, the company has to meet a number of legal requirements in order to continue its operations is given areas. Some of these legal and regulatory issues include tax, company law, labour and employment law requirement. In a region whereby the legal issues are not favorable, the productivity of McDonald’s is adversely affected.

Technological advancements

The advancement of technology has played a great role in developing the fast food industry. This is evident in the way companies are operating and their service delivery to customers. Research has showed that there are not many effects on the fast food industry as a result of technological advancement.

However, trends how that McDonald’s is likely to advance in its operations, as well as productivity if it makes use of technology in its operations. There are several ways in which the company can make use of technology including sales service, internet advertising, as well as Wi-Fi and internet devices provision. Such advancement is aimed at enhancing customer satisfaction.

Socio-cultural trends

Nowadays, trends show that the lifestyle of many people all over the world is changing. As such, the performance of McDonald’s will be affected adversely. For example, many people in the recent days are changing their eating habits to adopt high expensive styles. As such, fast food is being competed out by high quality and expensive food.

In addition, research has showed that different people have diverse eating behavior. For example, people in western countries are fond of hamburger and potato while Chinese have a liking for hamburger and rice. For this reason, McDonald’s has changed its advertising strategy to promote rice for dinner as opposed to rice burgers as they used to do few years ago.

The internal environment

Review of marketing goals and objective.

The marketing goals and objectives of McDonald’s are to ensure that it reaches many customers all over the world. According to research, the promotion and marketing campaign of any company determines the sales volume. As such, McDonald’s is investing in numerous promotional materials as a way to increase its sales.

Review of current marketing strategy and performance

Currently, McDonald’s makes use of an effective and strong marketing strategy as a way to boost the volume of the company’s sales. A review of the company’s internal environment over the last three to four years shows that McDonald’s uses localized marketing strategy in order to remain competitive within the fast food industry (Vrontis & Pavlou 2008).

In the application of such a strategy, the company focuses on customer-centric approach. This can be attributed to the fact that customer satisfaction is very significant in any business or company (Deng 2009). For this reason, McDonalds ensures that its marketing strategy is aligned with consumer behavior while putting into consideration that such behaviour change over time.

Review of current and anticipated organizational resources

Currently, McDonald’s is experiencing crisis as far as its capital base is concerned since its profit margins have gone down following stiff competition from other players such as KFC. As for the customers, there is a strained relationship due to the company’s provision of unhealthy food and drinks. However, the company can improve the current as well as the anticipated organizational setting by making use of the available resources while keeping the interest of the customers at heart.

Review of current and anticipated cultural and structural issues

Research has showed that the internal culture of any company plays a significant role in the achievement of the company’s goals. Therefore, McDonald’s should thus consider structural issues such as customer orientation, commitment of employees and their job satisfaction.

McDonald’s SWOT Analysis

The company has a number of strong points that makes it possible for it to remaining business and as a world-leader in the fast food industry (Vrontis & Pavlou 2008). Outlined below are some of the strengths of McDonald’s.

Brand recognition

McDonald’s is one of the companies in the fast food industry whose brand is highly recognized. This is an advantage to the company in that it serves as a selling point for its products. McDonald’s brand recognition can be estimated to a tune of $40 million. Such a situation makes it possible for the corporation to attract a lot of attention from customers all over the globe. This has an effect of increasing the client conversion rate of the company and consequent profits.

McDonald’s owns a big share in the global fast food market

The market for fast foods has become saturated over time. Such saturation can be attributed by the entrance of new players. It has numerous restaurants all over the world making it possible for McDonald’s to dominate the fast food market globally.

The global sales of the company stand at 8%. In addition, the company is the second largest with operations in more than 30,000 regions whereby it covers an estimated number of about 70 million customers on a daily basis in over 120 countries worldwide. This gives McDonald’s a competition advantage over other suppliers of fast food in the world.

High capital for advertising

McDonald’s has an advertising budget of $2 million. Compared to other fast food suppliers, such a budget is very high and enables the company to reach most of its existing customers while still attracting new ones. As such, McDonald’s is able to remain at the helm of the fast food market.

Partnership opportunities with other strong brands

Partnerships are important in helping any given organization, company or business to increase its market recognition. For this reason, the company has adopted the partnership strategy. The choice of the partnerships is important for the company since it has to ensure the partnership it has entered into is enhancing its growth within the industry. As such brands like the Coca Cola help in increasing brand recognition and McDonald’s popularity.

Adapts local food menus in most of its outlets

Most of the areas where McDonald’s outlets are situated have different tastes and preferences when it comes to the type of food. This difference can be attributed to cultural diversity that is not similar to the cultures of most European countries and that of the United States of America.

In order to ensure that the company is relevant in all areas, it ensures that it adopts local food menus. Such strategy is a strength in that the company can provide for customers according to their cultures, tastes and preference regardless of the region the restaurants are situated.

Presence of independent franchisees in the company’s ownership

A great percentage of the restaurants are owned, managed and run by independent franchisees. For this reason, the company can direct much of its resources in ensuring that it perfects the company’s marketing strategies, as well as its serving system.

Targets children

A business can only succeed if it lays out strategies that are aimed at a given target group within the purchasing population, and one that can earn the business the projected profit margin (Barnes 2008). For this reason, McDonald’s has set up strategies that aim at the young children. Such a strategy serves as strong points for the company within the fast food industry.

McDonald’s has several weak points which if not addressed can make the company fail to achieve its objectives (Vrontis & Pavlou 2008). The following are some of the weakness of McDonald’s.

Unhealthy food menu

In spite of the fact that McDonald’s has laid strategies to establish different health choices in its outlets, the menu has been criticized extremely since it comprises of drinks and meals that are not as healthy as required. For this reason, the company is suffering from constant protests from organizations, as well as people who are against unhealthy eating habits. As a result, the popularity of McDonald’s has been decreasing considerably following such protests.

Negative publicity

The company has had a lot of pressure from different organizations and people following its unhealthy food menus, obesity stimulation, as well as the company’s robust focus on children who are very young. For this reason, the fame that existed many years ago is no more, and thus the company is at risk of being competed out of the market by other providers offering healthy meals and drinks.

Low differentiation

Nowadays, the company is no longer in a position to distinguish itself from other suppliers of fast food. For this reason, the company is experiencing threat of being competed out in terms of its market share. Following such a threat the company has opted to maintain its market share through price competition whereby it reduces its prices as opposed to the use of additional features on the products that it supplies.

Mac job refers to a job that is low skilled and thus attracts low payments. Employees in this organization have negative attitude towards the Mac job. As such, the performance of the employees is reduced with a subsequent increase in employee turnover. High employee turnover, low employee productivity results in increased costs of training, which leads to high overall costs incurred by the company while trying to maintain its position in the market.

Opportunities

In spite of the above weaknesses, McDonald’s still has a potential to remain in business through the following opportunities.

Adoption of new strategies such as home delivery of meals

Nowadays, only a few companies in the fast food industry are offering home delivery of meals. As such, McDonald’s can exploit this opportunity as a way of boosting its profit margins while enhancing the company’s market position all over the world. Such a strategy will not only increase McDonald’s profits but also broaden its customer base.

Ensure that the company provides healthier food

Many people are now concerned with their eating habits considering that there are many diseases that have come up as a result of unhealthy meals and drinks. As such, the company can work towards provision of healthy food. Such an opportunity is possible since there is an increased demand for food that is healthy. Following such an opportunity, McDonald’s has plans of starting a restaurant in India that will focus on the provision of vegetarian means only.

Adopt new customer group while changing their habits

The types of habits that customers have play a great role in determining whether a business can achieve its organizational goals. The change of customer habits presents McDonald’s with the opportunity to establish new needs for the business to meet.

Stick to its new strategies

Recently, the company changed its existing restaurant design as well as the company logo. Moreover, the company has established a number of practices as a way to help in maintaining its market share in the fast food industry.

Saturation of the fast food market

In the developed countries, the market for fast food has been saturated by numerous chains of restaurants. In addition, some of these chains are powerful min terms of capital endowment and popularity. For this reason, McDonald’s is threatened to be competed out of the fast food market.

Changing trends that are aimed at healthy eating habits

Many organizations, people and the government are advocating the adoption of healthy meal and drinks in the fast food menus of all fast food suppliers. Such advocacy is aimed at the fight against obesity among adults and young children. As a result, McDonald’s is forced to change its menu to incorporate healthy food as opposed to what the company has been offering for a long time.

Establishment of fast foods outlets locally

Many people especially the locals, are turning to local types of foods. This turn of events can be attributed to the fact that many local fast food restaurants are in the business of changing the approach of providing as well as serving food. One of the changes adopted is the inclusion of local tastes in the restaurants’ menu. Such changes including the increase in the number of local fast food outlets, as well as the low prices they offer is a big threat to the market position of McDonald’s within the fast food industry.

Fluctuations of currency

Foreign exchanges play a significant role in increasing the income of the business. For example, when sending profits to the United States of America, it has to be send in terms of dollars. As a result, the amount can be influenced by the prevailing exchange rates, particularly for a case where there is an appreciation of the dollar in comparison to other currencies.

Constant lawsuits

The company has been involved in a number of conflicts, which have ended into lawsuits most of which the company has lost. The company has incurred a lot of expenses, as well as time in these lawsuits. However, as it stands McDonald’s is likely to be involved min other lawsuits that are even more expensive.

SWOT Matrix

This study was aimed at establishing McDonald’s culture differences and how such differences influence the 4P marketing strategies in different ways.

Marketing Mix Strategy

According to Barnes (2008), the amount of market shares, revenue and profit are defined by a company’s marketing strategies and objectives. Thus, the company should set marketing objectives that are common and specific by ensuring that it defines long-term profitability as well as the strategic aims such as strong communication and offering motivation to the workers in charge of marketing.

The marketing mix strategies of this company comprises of a number of elements that are highly significant in McDonald’s marketing system, and are thus important in achieving the objectives of the company as far as its marketing is concerned.

The products that the company offers to the market are significant in determining the satisfaction of consumers. According to Vrontis and Pavlou (2008), it is evident that the needs of customers change with time. McDonald’s should introduce a few new products that can be used in place of the old ones. However, the company should take care to ensure that the adopted changes do not negatively influence the sales of a number of its choice through the introduction of new choices.

Such a move can if not carefully thought out can cannibalize sales from the company’s trade off. Usually, the items in the menu of the company are likely to draw different attention from the customers. For example, the move to start an only vegetarian restaurant in India can be seen as a successful move considering that most of the people in this country rely on vegetables. The addition of the happy meal with a special focus on children can equally be a great selling point for McDonald’s.

Usually, customers determine the value of any given product by assessing the price tag on it. As such, through an analysis of the price and their perceived value, the customers are in a position to build their mental picture regarding the worth of a given product. Customers do not see a given product as a physical item only, but they are concerned with the psychological connotations that the product can have on the customers.

For this reason, it becomes highly dangerous for the company to use low price for its products and services as a marketing tool. This is because customers are likely to develop a feeling that low quality products attract low prices and vice versa. Thus, the company should carry out a thorough research on the brand, and its integrity before attaching any price to a given product.

Place in this context does not necessarily refer to the physical setting of any given products or their points of distribution. Place thus, comprises of the several processes that are carried out before a given product gets to the final consumer. McDonald’s has a potential of being accessible by many customers all over the world by ensuring that its outlets are spread everywhere. In addition, the adoption of drive in, as well as drive through is a very important strategy.

There are numerous methods that the company can adopt to ensure that it reaches millions of people all over the world. One of these methods included the use of advertisements. Advertisement can be done in a number of ways such as through the use of televisions, online platforms, in cinema, radio, print media, as well as by the use of posters. However, apart from advertisement there are other methods of promotions such as door drops, loyalty schemes, direct mail, merchandising, point of sale display and sales promotion.

McDonald’s Marketing Mix Strategy

Proposed strategies.

For McDonald’s to achieve its organizational and business goals, it should come up with viable strategies with respect to its 4p’s marketing mix.

First, the company should ensure that it provides differentiated products to its customers all over the world. This strategy can be implemented by carrying out a research on customers’ tastes and preference and comparing customers’ needs with what other restaurants are providing.

Secondly, McDonald’s should decide on a given price range for which it will sell its products. However, the adopted range should not be so high to scare away customers, or so low such that customers might build a negative perception regarding the quality of the products being offered.

Thirdly, fast food customers are everywhere in the whole world. As such, the company should come up with best areas where it can locate more restaurants to ensure that it reaches many customers. In addition, there is a need to strategize on the processes that the company is supposed to cover before availing the finished product to the final consumer. Some of the strategies in this context can include home delivery as a way of increasing sales and widening customer base.

Lastly, McDonald’s should focus on reaching many potential customers. Thus, the company can come up with a campaign that adopts different promotional methods as a way to maintain existing customers and attracting new ones. Some methods such as TV adverts are used to carry out an awareness of a given product while press advertising is suitable for the provision of detailed information about a given product or service. As such, the company can adopt TV and press advertising with a little support from in-store promotions in a bid to woo customers.

Related tactics leading to strategy implementation

In order to implement the proposed strategies, McDonald’s can rely on the following tactics:

Develop the company’s workforce with the focus being on the proposed strategies.
Disburse enough resources that can help in the implementation process
Creation of approaches aimed at the proposed strategies
Ensure that realization of results is linked to a compensation structure
Adopt strategic leadership in the implementation plan

Proposed time schedule and accountable parties in the firm/ organization

Evaluation, review and control.

The goals and objectives of a marketing strategy are only achievable if properly implemented. The expectations of any marketing strategy are often different from the actual results from the strategy. If the company experiences such difference there is a possibility that the strategy used or the implementation process was not suitable. In addition, there might have been a change in the company’s environments or the implementation process did not follow the right course.

Input controls: actions needed before the marketing plan can be executed

The company will have to carry out an a number of activities such as recruiting, selecting and training employees, human resource allocations, outlaying capital and analyzing expenditures for research and development

Process controls: actions needed during the execution of the marketing plan

During the execution of the marketing plan, the following actions are necessary: setting up systems for evaluating and compensating employees, employee empowerment, ensuring that the management is committed.

Output controls: performance standards to be compared to marketing goals and objective during and after the execution of the marketing plan

Product performance standards: In a situation whereby the market is favorable for the product, actions will be set in place to ensure that the product maintains its performance, as well as introduce advanced products with the potential to perform in the current market. For a situation whereby the product does not perform well, or its demand is low, its provision will be stopped.

Price performance standards: the distribution cost and demand will be used to determine the price standard. As such, the price will be directly proportional to the distribution cost and demand.

Informal marketing control

Employee self-control: The goals and expectations of the employees will determine the control. The primary focus lies on employee commitment to plan execution, their effort, and job satisfaction.

Social control: the social control in McDonald’s is based on the expectations of the organization, as well as society’s norms with emphasis laid on the shared organizational values.

Cultural control: the expectations and norms of the organization determine the cultural control. However, the main areas of concern include cultural changes and organizational culture.

Implementation schedule and timeline

Methodology of study

The systematic planning of actions that are applied in the collection of information and subsequent analysis of data in a logical manner that help in realization of the purpose of the study is called the study design (Creswell 2009). Research methodology refers to the principles and processes that are applied to collect data that can be utilized in decision making, in business and/or social setting.

The study used sampling technique. The sampling technique applied is the simple random sampling procedure. This method allows the research to be very inclusive, bearing in mind that the study aims at covering a wide geographical area, which has many restaurants. The random sampling will give all the restaurants in the sample frame an equal chance of being represented in the sample.

Data Collection and Analysis

Data was collected by the use of interviews. Interviews are good research instruments that can be applied in the collection of information in order to gain insights into attitudes and perceptions (Creswell 2009). They also serve to explore personal differences, experiences, and outcomes. The study used guided interviews, as they probe to get specific information from the respondents. The guided questionnaire thus have questions that are clear and succinct and in line with the research objectives.

The analysis revealed that the cultural differences play a great role in the marketing strategies of McDonald’s. This is attributed to the fact that McDonald’s operates in different countries with different languages, value as well as diverse customer behaviors. As such, the implementation of the company’s marketing strategy in such conditions becomes difficulty added to the fact that there are so many new players offering expensive, quality and healthy meals and drinks.

Limitation, bias and constrains in study

The study was limited to marketing strategy and the 4Ps, thus other aspects of the company could not be easily established.

Conclusion & Recommendations

From the foregoing, it is evident that McDonald’s holds a big share in the fast food industry. However, the company has a number of challenges such as threat from powerful competitors such as the KFC, change of customers’ eating habits, as well as legal and regulatory issues from the countries where the company operates. In order to increase the sales volume of the company, the study proposes the following recommendations; establish more outlets, and provide featured services as well as health products.

In addition, the company should set target market alongside a robust customized positioning while maintaining consistency in the products’ quality and taste. Such goals can be achieved if McDonald’s adopts strong advertising and promotional methods in order to reach very many people all over the world.

Barnes, D. 2008, Operations Management: An international perspective , Cengage Learning EMEA, UK.

Creswell, J. 2009, Research design: Qualitative, quantitative and Mixed methods approaches , Sage publishers, Thousand Oaks, CA.

Deng, T. 2009, ‘McDonald’s New Communication Strategy on Changing Attitudes and Lifestyle’, IJMS , vol.1, no.1, pp.1-2.

Vrontis, D. & Pavlou, P. 2008, ‘The external environment and its effect on strategic marketing planning: A case study for McDonald’s’, JIBED , vol. 3, no. 3/4, p.289.

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McDonald’s: Company Analysis, Essay Example

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Introduction

McDonald’s has revolutionized the way in which people from all over the world eat fast food. When thinking about the success of the McDonald’s it is equivalent to thinking about the American Dream. The McDonald’s franchise was not the first, but it has been the premier example of a successful business model that started from just a single-drive in food place by a pair of brothers. McDonald’s has grown to have over 30,000 locations within over 100 countries. The McDonald’s franchise has followed the standards of innovation, consistency, and resiliency.

There have been roadblocks and challenges along the way, but for the most part McDonald’s has seemed to weather the storms. Their business strategy entails acknowledging the challenges from external and internal sources and commandeering a way to stay on top of the issues when they service. This following business analysis is to provide a critique overview of McDonald’s history, their business strategy, their internal and external environment, and examine the driving forces behind McDonald’s success. This information along with their successful financial statistics will allow the paper to see into the future 40 years ahead in determining if the company will sustain their success, and their impact on the environment. A strategic plan will be develop to keep McDonald’s as the market leader and ahead of their competition in the future.

McDonald’s is considered one of the first pioneers of the fast food industry. It began when Patrick McDonald opened “The Airdrome” in California at 1937. After three, years his two sons, relocated the entire building and opened the restaurant with a different name “McDonald’s Bar-B-Que Restaurant. It was a regular drive-in featuring an extensive menu and car hop service. The company was founded by brothers Maurice and Richard McDonald. The McDonald’s brothers opened their first McDonald’s restaurant located in San Bernardino, California in 1948. At the time, the menu included hamburgers, fries and milkshakes. In 1954, the two brothers met with Ray Kroc, a 52 year old Multimixer salesman, who was impressed with their company and decided to pursue them nationwide (McDonalds, 2013). The biggest event at that time in 1960 was the announcement that McDonald’s has sold more than 100 Million more hamburgers in more than 100 restaurants in America, and opened up the Hamburger University in 1961. When students “graduated” they received a Bachelor degree of “Hamburgerology”.

The Business started to develop, and in 1967, McDonald’s starts the business internationally. Therefore, nowadays we can see McDonald’s restaurants in 119 countries around the world. McDonald’s changed history with creating the first Drive-thru. The first drive-thru restaurant was opened in Sierra Vista, Arizona. The local army fort where there was no shortage of solider were usually not allowed to leave their vehicle wearing their army fatigues. In order for McDonald’s to continue to serve them, they solved this problem by introducing a new service “drive-thru”. The Drive-thru became one of most successful implementation in services field.

From this innovation in their fast food service, McDonald’s started to expand the business at a rapid pace. In 1963, the Ronald McDonald clown debuted as the spokesperson (clown), while McDonald’s sold their 1 billion number of burgers. The Big Mac introduced in 1968 was an instant hit, soon after; the famous frozen French fry was also introduced. To meet the needs of workingwomen the Happy Meal was introduced in 1979; the meal included a burger, fries, a soda and a toy. By June 1993, McDonald’s had 2,576 companies operating, and had over 9,000 franchises. In over 60 countries, they had over 1000. In the United States daily there were over 18 million people visiting a McDonald’s location.

Developing Business Strategy

At the time, McDonald’s had the second biggest brand recognition of any global brand. They had a high brand awareness with a $1 million advertising budget dedicated to the company. They introduced the new ad campaign in 1991, “Great Food at a Great Value,” that was successful in promoting productive value-meal combinations. In 1992, they followed up with their largest outdoor advertising campaign by a single brand. Their advertising messages focuses on customer satisfaction and value. Due to their increase brand awareness it was particularly pertinent to McDonald’s as many customers that were buying impulsively, and would select the McDonald’s locations out of a manner of convenience. An estimated 28% of the company revenues were obtained from their franchise fees. This amount was based on the percentage of sales gathered to cover the corporate services costs that included R&D and centralized marketing research. Now over 70% of McDonald’s restaurants are franchises. McDonald’s usually placed businesses in new countries aligned with company-owned restaurants that are located capital cities. There are franchised after they have well been established.

To attract more mature customers the company launched its Arch Deluxe in 1996, but the low-fat burger fell down. In 2001 subway surpassed McDonalds as a fast-food chain with 148 more stores than McDonalds, causing McDonalds to announce its first ever quarterly loss. The coffee based specialty drinks were successfully launched in 2006. In 2012, McDonalds sustained to emphasize beverages, value, breakfast, and traditional core favorites. They expanded the McCafé beverage offerings with the Chocolate Chip Frappé and Cherry Berry Chill. McDonald’s has expanded the coffee business offering over 1,600 McCafé locations, which in different countries such as Europe have different areas that are normally being located inside the restaurants that provide specialty coffees, desserts and snacks. In addition, McDonald’s has increased their convenience and accessibility, and with extended operating hours, self-order kiosks, optimized drive-through, and opened over 250 new restaurants.

In 2010, Don Thompson was elected and continues to be the president and CEO of McDonald’s, currently one of the world’s largest food service companies. McDonald’s Corporation franchises and operates McDonald’s restaurants that provide menu at different price points providing value in 119 countries. McDonald’s customer-focused Plan to Win (“Plan”) offers a common framework for a global business while also allowed for local adaptation. From the implementation of various initiatives surrounding the five pillars of McDonald’s: Plan, People, Products, Place, Price and Promotion.

McDonald’s has improved the restaurant experience for customers globally and grown worldwide comparable sales and visitor counts in each of the last nine years. As of December 31, 2012, there were 34,480 restaurants in 119 countries, 27,882 were franchised or licensed that included 19,869 franchised to established franchisees. There are over 4,000 licensed to developmental licensees and over 3,000 licensed to foreign affiliates that are located in Japan. While McDonald’s operates over 6,500. (McDonald) All restaurants are operated either by the Company or conventional franchisees fall under the franchise arrangements, and the developmental licensees and foreign affiliated markets are under the license agreements. The franchises that fall under the conventional franchise arrangements contribute a measure of the capital required by investing initially in the seating, equipment, signs, and decoration of their restaurant businesses. They have helped by reinvesting into the company over time. Modernizing the customer experience continued through McDonald’s grand remodeling approach, which provides latest restaurant designs and retailing efforts. The enhanced appearance and functionality of McDonald’s restaurants, which provide a more relevant experience for customers. In 2012, there were over 900 existing restaurants remodeled, the adding drive-thru capacity to attract additional guest counts.

Their Financials are continually improving:

McDonald’s: Company Analysis, Essay Example

Internal Analysis

McDonald’s brand mission statement is “To be our customers’ favorite place and a way to eat.” McDonald’s global processes have been aligned around a global strategy called the Plan to Win centering on the five factors of an exceptional customer experience: Products, People, Price, Place, and Promotion. McDonald’s has stayed dedicated to improving their operations and enhancing their customers’ experience. (McDonald’s) This mission includes becoming the first company for people in each local area independently in location. In McDonald’s, there is a strategy named “Plan to Win” since 2003. It exists in the field till now, and it forced McDonald’s to have 32 months of international, comparative, and productive sales which is the longest streak in the last 25 years. McDonald’s has had a success which lies generally above the industry average growth. To maintain the excellent service to all customers and continue to attain success with a profit through strengths such as McDonald’s process innovation and technology. Their vision refers to exceptional quality, cleanliness, high quality service and excellent value in customer service.

McDonald’s company states that their values in business are the corporate responsibility of the company. Both factors work together with independent franchisees and suppliers in order to achieve a maintainable future not only for the company but for all the surrounding communities. McDonald’s strong values having helped them to become the success they are, and how it is incorporated into their daily routine. The one the primary cores of the McDonald’s values are customer satisfaction. One of the reason for McDonald’s business are the customers. They are trying to explain the admiration by serving a high quality food and excellent service. McDonald’s strive to achieve a welcoming environment, and are committed to the people who are working for them. McDonald’s maintained a well-trained team with intercultural experiences and diverse backgrounds that are a part of their success.

The business model which contains the “three-legged stool” (suppliers, operator and employees) as the primary foundation for developing the business globally. The most prominent is to keep the balance between those “stool’s legs”. Ethics is also one of the values. McDonald’s tries to conduct their business with fairness, honesty and integrity. McDonald’s states that: “We are individually accountable and collectively responsible”. (McDonald’s). This necessitates not only focus on attainment more money but also on customers and the health of the whole system. The changing environment, customer, employee and systems need lead to the McDonald’s progress and innovation as well.

Their business strategy is rooted in their care paid to their customers and customer satisfaction. The customer service philosophy is talking about to retaining customer loyalty and dedication is the central core. If the company do not incorporate the principles of customer service to serve their customers, a company cannot survive. Customers will continue support the company products or services if the company cares about customers, their comfort and concerns. Adam Smith’s legendary Wealth of Nations (1776) said that customer service is the essence of the basic principles of competition. If one company wants to succeed, the company needs to comprehend what kind of products or services customers need at different times. If not the customer will lead to other companies understand what they want to satisfy their needs.

The products produced can be separated into several groups: Hamburgers, Chicken, pork and fish products. They have French fries, Soft drinks, and healthy alternatives such as salads and desserts. Their biggest seller are their hamburgers. They have Big Mac, Double Cheeseburger, McDouble, Big N’Tasty, etc. The most edible items on the menu with its signature taste are the French fries. The main reason for this is that no matter what other product the customer is willing to take, but in every set the first salads were added to the menus in 1985. Currently there are more, and more people are concerned about their health so, McDonald’s puts its all efforts to gain more and not lose any of customers throughout the world. Coca Cola is the biggest soft drink supplier to McDonald’s, followed by specialty coffees, and Hot and iced tea that is delivered by S& D Coffee in the US. McDonald’s also offers hot chocolate, assorted juice and other local beverages such as milkshakes are available in different markets all around the globe. The desserts that McDonald’s offers includes such items as ice-cream (McFlurry), McDonald-land cookies, Freshly Baked cookies, Pies, Cinnamon melts, the fruit and yogurt parfait, smoothies and other items which depending on the country and region.

External Analysis

The fast food restaurants industry is just one of the numerous components of the extensive food services listing. The total estimated revenue from this sector is about $1.86 trillion (US dollars) during the year 2012. Around $706.7 billion is the estimated earnings in 2012. This contributes to around 38% of the food service sub-sector of the world. The revenue from the industry is expected to grow at an estimate of 3.2% in 2012. On a global level, the fast food industry plunged down because the global recession arose and the unemployment rate hit high in the United States and many other countries. To keep the market position and to keep up the idea, some of the fast food operators set up promotional activities to attract customers and also shut down some of the underperforming stores (Smith, 2012). The recovery of McDonald’s after the global financial crisis is at a surprising pace, and the rate in sales growth continues to grow. One of the biggest fast food restaurant in the world announced that it is still gaining market shares from its competitions. The high rate of unemployment does not alter telling people to spend money and eat at McDonald’s. It has suggested and improved breakfast menu with the new frappe drinks. It was the critical success factor in recovering after the huge losses. The surprise of industry execs, McDonald’s reported a growth of 6.0% worldwide while the comparable store sales growth was almost 3.8%. The company is forecasting the further expansion of 5-6% worldwide. The chart below shows the slowdown experience in 2008.

Though the convenience that is provided by fast-food retailers which was valued by the growing numbers of travelers and families in the first part of the 90’s, the recession and fierce competition had produced a decline in growth and decreasing profits for the fast food sector. Predominantly the most hard-hit were independent restaurants that found it problematic to compete with the value-pricing strategies of the burger chains’ and their powerful advertising budgets. As a result, independents encompassed only 56% of all the restaurants in the U, S Sales declined in 1993, down from 63% in 1986, the restaurant industry in fact indicates that saturation in the “limited menu” portion of the restaurant industry was forcing growth-oriented chains to expand overseas and consider alternate outlets domestically. The growth in the restaurant industry includes the: total sales growth for this section during 1990–1991 that was only 0.3% in the U.S. Customer satisfaction, nutrition, and the price which seemed to form the basis for competition nationally. Even though all of the rapidly growing restaurant chains have pursued various strategies. “For example, Rally’s advertised “We get it right or you get it free,” Boston Chicken emphasized nutrition by roasting, steaming and baking its dishes, and Checkers, a double-drive-through burger chain, offered made-to-order burgers at lower prices. Drive-through window sales industry-wide reached $25 billion in 1992.” (GlobalENS 3)

(WikiInvest)

One of the problems that the fast food industry is facing is the criticism about the product, for being high in fat content, increase in body mass index (BMI) and putting on weight. A number of books and documentaries have increased awareness among the public about the harmful consequences on one’s health. The various articles get the health conscious consumers skeptical towards fast food and look for other resources to meet their likes. The rise in commodity prices has significantly affected the fast food industry. The cost of food and beverage inputs comes up to approximately 33% of costs, and higher cost of other raw materials has drastically reduced the profit margin. Due to fierce competition from other players in the market, trying to build a price increase is not possible either. Instead, many of the fast food franchises promoted meals at a remarkably affordable price, affecting their limits making plenty.

Situational Analysis (PEST Analysis)

Demographics will appear where most of your potential customers live their age, gender, needs, likes and dislikes. It appears that McDonalds has been successful in creating and fulfilling a need for just about everyone and appears to have hit on every demographic.

Daily traffic at McDonald’s is 62 million people, more than the population of Great Britain
McDonalds feeds 68 million people per day. That is similar to 1% of the world’s population.
McDonalds hires over a million workers in the U.S. every year with over millions of employees worldwide. (Business Insider)

The socio-cultural aspect of McDonald’s is rooted in their 27 billion in revenue each year that has made it the 90th largest economy in the world. $8.7 billion of this revenue comes from the franchise stores only, making McDonald’s richer than Mongolia. One in every worker in the United States has been employed by McDonalds. As for entertainment, McDonalds offers a recreation area for kids with slides and games, and free WIFI for adults. Parents get a break as their children eat a happy meal and play in the play area. McDonalds is an equal opportunity employer. Male, female, young and old, different nationalities and even handicapped people can be found working at McDonalds.

The political and legal aspect of McDonald’s takes into account the global offerings that they must adhere to. Although global consumer confidence continues to negatively affect the overall sales in retail for the food industry, yet McDonalds is still outperforming the market as it has grown its market share. The other significant contributors to comparable market sales were the U.K. and Russia. Despite ongoing economic challenges, McDonald’s priority remains: growing the overall business by balancing a strong focus on their unique value offerings, endless premium product innovation, and new products. In APMEA, comparable sales rose 1.4%, and approximate visitor counts rose 2.2%, despite a challenging year of economic pressures, partly due to Japan’s uneven recovery and the slower economic growth of China. Several problems have been due to economic uncertainty and government-initiated austerity measures implemented in many countries.

McDonalds has worked hard to streamline the customer experience through their major remodeling initiatives, which offer modern restaurant designs and retailing efforts. The enhanced appearance and functionality of the restaurants delivers a more enjoyable experience for the customer. Over 900 existing restaurants were remodeled during 2012 with the most adding drive-thru capacity to attract additional guest counts. McDonalds has also extended the accessibility of more convenient locations with extended hours and efficient drive-thru service. More than half of the restaurants use some form of various order points to maximize drive-thru capacity, including 1,500 with hand-held order takers to help improve customer service times. As mentioned earlier McDonalds also offers free WIFI and television to its customers. McDonalds tries to invest in the latest technology.

McDonalds incorporates a long-term, average annual constant currency, financial goal to measure business as they continue to build the business. McDonald area has also delivered strong results for their shareholders ever since its inception. McDonald’s long term, average annuals constant currency financial targets are: 1. Statewide sales growth of 3% to 5%, 2. Operating and revenue growth of 6%, and 3. POIC in the high teens. McDonalds strives to keep its prices affordable and uses a cost low advantage strategy to be competitive in the food industry. McDonalds also recognizes their responsibility to give back to the community locally and globally. In 2012 McDonalds sponsored the 2012 London Olympics. The McDonald house was built to help families and children that are dealing with cancer. Globally, McDonald’s uses a customer focused plan that provides a common framework for a global business and continues to prepare for local adaptation. Multiple initiatives encompass the five pillars of the McDonald plan. The five pillars include—People, Products, Place, Price and Promotion, each incorporated to enhance the restaurant experience for customers worldwide. This idea has grown worldwide comparable sales and visitor counts in each of the last nine years. McDonald’s restaurants are located throughout the entire world.

Environmental Impact

Environmentally, McDonald’s has strived to continue their success in trying to in waste reduction, and being a leader in protecting the environment. Since 1993, Michael Quinlan, McDonald’s CEO, felt pretty confident about his company’s environmental performance. McDonald’’ formed a partnership with the Environmental Defense Fund (EDF), which has helped to win over the approval of the customers and its efforts to reduce waste, combined with its highly-publicized move from polystyrene “clamshells” to paper-based sandwich wraps. It has helped to repositioned McDonald’s as the market leader, and purport the image in protecting the environment. In 1994, however, there was another problem with a nonprofit environmental group, this groups called the Beyond Beef Coalition, aimed at McDonald’s in a bigger plan to reduce beef consumption. The environmental complaints this time held to launch an attack at McDonald’s that did not criticize supplementary factors of their business but, rather, aimed at their central products and growing markets. “Quinlan did not want this campaign to devalue the reputation the company had solidified through the EDF partnership.” (UMich 5) It has been proved that as income rises, so does meat consumption. Take in for example the Koreans in 1975 and Japan that red meat consumption doubled as the population has grew in Asia so has the meat consumption. As more people around the world are adopting an American Style diet, they are consuming meat at a faster pace than the world’s farmers are able to produce.

The Beyond Beef Coalition saw the expansion of the “cattle culture” to the developing world as one of the greatest threats to the global environment. “The Coalition was comprised of individuals and organizations involved in environmental protection, animal rights, public health, and world hunger. “ (UMich 4) Similar to the Environmental Defense Fund, this groups of activist aimed at McDonald’s for its business strategy due it to being the industry leader, and one of the largest buyers of beef throughout the world. The goals of the Coalition were: to reduce individual beef consumption in the “U.S. by at least 50%; to replace beef in the diet with organically raised grains, legumes, vegetables and fruits; to change current cattle-industry practices, and to promote humanely and organically raised beef as an alternative for those who continue to include some beef in their diet.” (UMich 6) The main aim for the McDonald’s campaign was to notify at least 1 million McDonald’s customers about beef’s negative effect of on the environment through a large campaign around their thousands of McDonald’s locations around the United States. The volunteer activist group, Beyond Beef protested outside of a McDonald’s establishment on April 17, 1993 to leave leaflets and children’s literature that informed passersby’s of McDonald’s environmental costs with beef. The activist groups collect names for petitions in an effort to assist individuals to reduce their beef consumption by 50%, and to encourage McDonald’s to make a vegetarian component to their U.S. menu. By doing so they are also able to deliver 25% of advertising to the new item. According to research conducted by the University of Michigan, there has been no other commercial entity such as McDonald’s that has been responsible for the encouragement of prime beef consumption. In the United States alone in their over 9,000 restaurants in addition to tens of thousands around the world, McDonald’s proudly displays they have served over 85 billion hamburgers and counting. (UMich 5) According to them the real cost of beef is:

* Tens of millions of cows slaughtered;

* Trillions of gallons of water used to develop their feed;

* Millions of tons of methane, a greenhouse gas, released;

* Millions of acres of public land eroded and destroyed;

* Enough grain fed to cows to produce millions of hungry families with a daily meal. Most McDonald’s patrons are unaware of how their individual decisions as consumers make up to create such a devastating global consequences.

The Future (SWOT Analysis)

From their most recent financial statistics, McDonald’s has made in 2012 $27.56 billion in revenue, and $5.46 billion in profit. They have over 1.8 million employees in 2013, and they have over 34, 000 local restaurants that serve 69 million people in over 119 countries on a daily basis. (McDonald’s) Their main competition now is Subway, Wendy’s, Yum! Brand (Jack in the Box, etc.) Inc., and Burger King. Using the SWOT analysis, we can see that that are several strengths that include that they are the market leader, and they have the largest fast food market share in the world. They have better brand recognition than most other global companies that are valued at over $40 billion. McDonald’s is the one of the most recognized brands throughout the world. They have an annual $2 billion budget allocated for advertising, and is able to adapt their food menus to match the local community. In an effort to strengthen their brand they have partnered with notable brands that include Heinz ketchup, Dannon Yogurt, Pepsi and Coca Cola, and others that add value to the corporation.

However, there are several weaknesses that McDonald’s must overcome in the future to sustain their success. These factors include the negative publicity they contrived from critics that heavily criticized their unhealthy food choices that are targeted towards children let alone the rest of their demographics. McDonald’s helps to contribute to the problems of obesity that has expanded to be a factor around the world. The increase in introducing healthier food choices could potentially lower McDonald’s popularity as competition will soon spring up to offer better healthier food alternatives. While customers are their focal point, they also have an increasing number to employee turnover, as employees are low paid and low skilled. Yet the major problem with McDonald’s is their low differentiation from other fast food competitors, and opts to compete based on price than product differentiation.

In developing a strategic plan for the future, one must incorporate all of these factors as they will continue to be a problem and strength in the far future. Their current market share is broken down:

The long term strategy must recognized that the external factors will continue to change. McDonald’s must thus constantly monitor and erect the most efficient and effective actions to taken into response to the situations. McDonald’s needs to continually be involved in government related programs, the image created can be further supplemented by the active link to the political system. By engaging in programs that promote international growth, contribute to employing more national citizens, and maintaining a positive relationship with the government, McDonald’s will continue to maintain its’ market share. McDonald’s needs to comply and cooperate with various resources that can be used to implement new government programs that benefit society. Changes in economic factors such as the price of raw materials have effects on the profit margin. McDonald’s needs to take control of their suppliers, in becoming self-sufficient, they are able to forecast the changes in the deficit, and minimize the proverbial dip in profit margin. The growing concern in health will continue to be a critical component as society progresses. The changes in health and factors will continue to change. If America continues to eat the way they have been doing, the factors of chronic diseases will be a primary concern for the customer base. McDonald’s will continually invest in Research and Development in order to develop more products that create a neutral balance that benefits those that are looking for healthier alternatives for consumers. This change will help to improve McDonald’s image overall, and win the confidence of the general consumers, which will continue to lead to a better profit margin.

The values estimated for the next five years includes an increasing amount of income, focus on the changing trends and the amount of attention being paid to placing healthier choices on the menu. These include the strategy of heaving a salad and fruit bar for those that are looking for healthier choices. Also placing vegan choices on items, which can be served in a like manner for burgers and fries, but with vegan ingredients. The threats to new entrants have been high as there are certainly no legal barriers that have kept competition from entering the industry. Since McDonalds is already an established company and in 40 years will continue to grow they will enjoy the luxury of maintaining a large amount of market share with new restaurants in developing countries. By offering menu items at a value price, more consumers will continue to demand McDonald’s products. While many of the competition have tried to imitate, by continuing to use quality products people will continue to be the preferred Choice. As evident in this financial chart in the next five years, the income, sales, profits, and margin will continue to improve. By the year 2043, McDonald’s will be the largest franchise in the world. They will employee the most people around the world that contributes to countries GDP, and push for more products on their menus that cater to all types of food choices.

McDonald’s could be on pace to be the first trillion dollar company, and will be able to use improved technology to support its millions of customers that will no doubt still take to consume their trillions of burgers that will be served, on a daily basis. McDonald’s will still need to provide a strategy of sustainability that will help to reduce their environmental impact on beef and waste reduction with smaller packaging, better recycling alternatives, and using more organic food choices to cut down on water consumption. The feasibility of this long term strategy working for McDonald’s is extremely high. Experts have agreed that the type of strategy that McDonald’s currently implements has allowed them to be a public mainstay that more and more companies wanting to invest and buy franchises to place on every corner. Potentially with McDonald’s adhering to these type of strategies used they will be one of the first companies to make a trillion dollars, and can possibly help developing companies by employing more and more people. It can also cross over to providing better training and educational classes that will help with low skilled workers, and helping them to compete with more people around the world. McDonald’s will need to invest in other companies such as competitors like Yum! Brands, that has a diverse portfolio. By investing they will be able to add and grow to their customer base and their profit margins. This will set up for McDonald’s to remain a success beyond forty years from now.

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“Stock:McDonald’s Corporation (NYSE:MCD). “Wikinvest.” 2013. Web. 11 Dec. 2013. http://www.wikinvest.com/stock/McDonald%27s_Corporation_(NYSE:MCD)

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Marketing Cases from Emerging Markets pp 99–112 Cite as

Case Study 11: Marketing of Services: The McDonald’s Way

Rik Paul 4 &
Sanjit Kumar Roy 5
First Online: 01 January 2013

3874 Accesses

2 Citations

For a lot of people, the name of McDonald’s instantly brings a smile. It is known for its crispy burgers and its wide network of outlets. The company started its business operations in India in 1996 as a 50:50 joint venture partnership between the two businessmen Amit Jatia (Jatia) and Vikram Bakshi (Bakshi). India was a challenging market, given local dietary preferences for vegetarian dishes. Tim Fenton pointed out that India’s eat out market was about $128 billion a year compared with $132 billion in China, but was growing faster than that of China.

If you work just for money, you’ll never make it, but if you love what you’re doing and you always put the customer first, success will be yours. —Ray Kroc, Founder, McDonald’s Corporation.

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Amit Jatia, the MD of Hardcastle Restaurants, joined the McDonald’s family as the youngest JV Partner in 1995. He took hands on training for a year at McDonald’s in Jakarta (Indonesia) as well as a degree in Hamburgerology from the Hamburger University, Oak Brook (Illinois, USA). He was also nominated for “The Economic Times Awards for Corporate Excellence” as “Entrepreneur of the Year” in 2004 and 2005.

Vikram Bakshi became the MD, McDonald’s India (North and East) on September 28, 2006. He was also nominated as the President of the National restaurant Association of India.

Tim Fenton was the president of Asia, Pacific, Middle East and Africa and was accountable for the 38 countries and more than 8,200 McDonald’s restaurants in this region. He served as president, East Division, for McDonald’s USA. He was responsible for more than 5,200 restaurants in the eastern United States, covering eight geographical regions in 21 states.

It is a vegetable burger, which includes a patty made out of potatoes, peas, and spices. It also includes tomato slices, onions, and vegetarian mayonnaise.

It starts with a rectangular shaped crust, but instead of a creamy sauce, it is flavoured with a tomato-based sauce and then is topped with carrots, beans, bell peppers, onions, peas and mozzarella cheese.

It looks similar to McAloo Tikki Burger, but starts with the sesame seed bun. In between the bread, there is a vegetarian patty made from peas, carrots, green beans, red bell pepper, potatoes, onions, rice, and seasoning. It is garnished with lettuce, and has mayonnaise spread thickly on the bread.

A samosa is a stuffed pastry and a popular snack in South and Southeast Asia. It generally consists of a fried or baked triangular, semi-lunar or tetrahedral pastry shell with a savory filling, which may include spiced potatoes, onions, peas, coriander, and lentils, or ground beef or chicken.

Kababs are a wide variety of meat dishes originating in Persia and later on adopted by the Middle East andTurkey, and now found worldwide.

Chole bhatura is a combination of spicy chick peas and fried bread called bhatura made of flour.

Pakoda is a fried snack (fritter) found across South Asia. It is created by taking one or two ingredients such as onion, eggplant, potato, spinach, plantain, cauliflower, tomato, chilli, or occasionally bread or chicken and dipping them in a batter of gram flour and then deep-frying them.

A paratha is an Indian flat-bread that originated in the Indian subcontinent. Parathas are usually stuffed with vegetables such as boiled potatoes, leaf vegetables, radishes or cauliflower and/or paneer (South Asian cheese). Aloo-paratha is the variety that is stuffed with boiled potato and spices.

The bhaaji is a vegetarian dish made from a vegetable. A typical north Indian lunch or dinner usually starts with Poori (flat bread), accompanied by one or more bhaaji(s).

Dosa is a fermented crepe or pancake made from rice batter and black lentils. It is indigenous and is a staple dish in the southern Indian states of Andhra Pradesh, Karnataka, Kerala, and Tamil Nadu.

Vada can vary in shape and size, but are usually either doughnut or disc shaped and are about between 5 and 8 cm across. They are made from dal, lentil, gram flour or potato. Vadas are preferably eaten freshly fried, while still hot and crunchy and is served with a variety of dip called sambar.

Rs = Indian Rupee (s), Re. 1 = 100 paisa, In February 2011, US$1 = Rs. 45 (approximately).

V S Rama Rao, “Fast Food Retailing in India,” www.citeman.com , September 17, 2010.

In India, highways are dotted with local restaurants popularly known as dhabas (singular: dhaba ). They generally serve local cuisine. They are most commonly found next to petrol stations, and are generally open 24 h a day.

“The Burger Story” www.tonicpanel.com .

Leo Burnett Worldwide is an American advertising company, created in 1935 by Leo Burnett. The company was opened in Chicago in 1935. In 1950 the company started its two first major advertising projects, for Kellogg’s and P&G.

Bollywood is the informal term popularly used for the Hindi-language film industry based in Mumbai, Maharashtra, India. The term is often incorrectly used to refer to the whole of Indian cinema; it is only a part of the total Indian film industry, which includes several regional film industries sorted by language.

The Indian Premier League (IPL) is a professional league for Twenty20 cricket competition in India. It was initiated by the Board of Control for Cricket in India (BCCI) headquartered in Mumbai, India.

The Associated Chambers of Commerce and Industry of India (ASSOCHAM) is the umbrella body of chambers of commerce in India. The organisation represents the interests of trade and commerce in India, and interacting with the Government of India on policy issues, and liaisoning with their international counterparts to promote trade between India and other nations.

India’s first Food Franchising Report by Franchise India and CIFTI-FICCI. The primary objective of the report is to provide a snapshot of current trends in Food Franchising vis-a-vis expert analysis of various elements having implications on it.

Established in 1991 by Arvind Singhal, Technopak Advisors is a Management Consulting firm in India, offering strategic advice, start up assistance, performance enhancement impetus, consumer insights and capital advisory to Indian and International companies.

Sagar Ratna is a well known brand of restaurant chain in northern India serving vegetarian cuisine with a speciality in south Indian delicacies.

Yo! China is India’s first and largest chain offering Indian Chinese cuisine in almost all corners of the country. It offers a trendy casual dining atmosphere and has 43 points of presence in trendy locations across India.

Haldiram’s is one of India's largest sweets and snacks manufacturers, based in Delhi, India.

Bikanervala is a chain of traditional restaurant in India which specializes in ethnic Indian food specially sweets and snacks.

Nirula’s is India’s oldest fast food restaurant chain, based in North India and most popular in NCR Delhi. It specialized in “Desi (local) version” of western fast food as well as offered Indian cuisine and casual dining.

Mavalli Tiffin Room (commonly known as MTR) is the brand name of a food related enterprise located in India. It is famous for the MTR restaurant located on the Lal Bagh Road in Bangalore and also for the pre-packed food articles which are sold in packets having the MTR brand. MTR also claims to be the inventor of the popular South-Indian breakfast item, Rava idli.

Murugan idli shop is considered among the best to taste South Indian dishes. Idly, Dosai and Meals are enjoying the prominent positions among the menu of a south Indian.

Denny’s Corp is a full-service coffee shop/family restaurant chain. It operates over 1,500 restaurants in the United States. Denny’s is known for always being open, serving breakfast, lunch, dinner, and dessert around the clock. .

Pollo Tropical is a fast food restaurant chain specializing in the Floribbean cuisine of South Florida (a fusion of Florida cuisine and Caribbean food). Pollo Tropical is owned and operated by Carrols Corporation. The chain has its headquarters in Kendall, unincorporated Miami-Dade County, Florida.

Johnny Rockets is an American restaurant franchise whose concept is to create a classic American restaurant atmosphere. The theme is the diner-style restaurant that had become a common sight by the 1950s.

Wendy’s Old Fashioned Hamburgers is an international fast food chain restaurant founded by Dave Thomas. As of March 2010, Wendy’s was the world’s third largest hamburger fast food chain with approximately 6,650 locations.

Arby’s is a fast food restaurant chain in the United States and Canada that is a wholly owned subsidiary of Wendy’s/Arby’s Group. It is primarily known for selling roast beef sandwiches and curly fries. The company's target market attempts to be more adult-oriented than other fast food restaurants.

CKE Restaurants, Inc. is the parent company of the Carl’s Jr., Hardee’s, Green Burrito, and Red Burrito restaurant chains.

Schlotzsky’s is a privately held franchise chain of restaurants, specializing in sandwiches, headquartered in Downtown Austin, Texas. As of November 20, 2006, Schlotzsky’s has nearly 380 franchised and company-owned locations in 36 states in the United States and in six other countries around the world, generating $210 million in systemwide revenue.

BannaStrow’s is a franchise concept that focuses on a menu of Crepes and Waffles, cooked to order in front of its customers for a wonderful show.

Moe’s Southwest Grill is an American chain of fast casual style Tex-Mex restaurants headquartered in Atlanta, Georgia.

Carvel is an ice cream franchise owned by Focus Brands. Carvel is best known for its ice cream cakes, which feature a layer of distinctive ‘crunchies’. It also sells a variety of novelty ice cream bars, ice cream sandwiches and soft serve ice cream.

Dunkin’ Donuts is an international doughnut and coffee retailer founded in 1950 in Quincy, Massachusetts by William Rosenberg.

Popeyes Chicken & Biscuits (sometimes named Popeyes Louisiana Kitchen or Popeyes Chicken & Seafood; often referred to as just Popeyes) is a chain of fried chicken fast food restaurants, owned since 1993 by the Sandy Springs, Georgia-based AFC Enterprises.

The Pizza Company is a restaurant chain and international franchise based in Bangkok, Thailand.

Swensen’s is a global chain of ice cream restaurants that started in San Francisco, California.

Burger King, often abbreviated as BK, is a global chain of hamburger fast food restaurants headquartered in unincorporated Miami-Dade County, Florida, United States.

Ipsos Indica Research is an independent company which ranks fifth among global research companies.

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Paul, R., Roy, S.K. (2014). Case Study 11: Marketing of Services: The McDonald’s Way. In: Mutum, D., Roy, S., Kipnis, E. (eds) Marketing Cases from Emerging Markets. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-36861-5_15

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Strategic Management: McDonald’s Report

Introduction, organization overview, strategic recommendations, reference list.

All businesses, irrespective of their industry, require strategies in order to be successful. High competition resulting from globalization and technological advancement has necessitated clear-cut strategies in order to survive. Strategic management has never been as important as it is today.

Through strategic management, organizations are able to identify and implement the best practices to gain competitive advantage, increase profit margin and grow (Hubbard, Rice, and Beamish 2008). Fast food industry is one of rapidly growing and competitive industry.

A company in this industry has to develop and implement successful business strategies in order to gain competitive advantage. In this report, a case study for McDonald’s is provided. The report reviews the strategies that McDonald’s has adopted in order to maintain its global position in fast food industry.

The McDonald’s has been in operation in food industry since 1954. The US based company operates a chain of fast food restaurants in more than 119 countries. Though initially established by McDonald’s brothers, McDonald’s success is attributed to its later owner: Ray Kroc. Over years McDonald’s has emerged to be a strong brand in the fast food industry. Most of its restaurants across the globe are operated as franchises.

McDonald’s chain of restaurants is renowned for its uniform and standardized menu. McDonald’s menu across its chain mainly consists of burgers, milk shakes, French fries, sandwiches, Ice cream sundaes, vegetable salads and desserts (McDonald’s Corporation 2010). The menu however changes slightly from country to country depending on culture and customer taste.

The company is renowned for its innovative products. Some of its successful products include Big Mac, Chicken McNuggets, Quarter Pounder with Cheese and the Filet-O-Fish (McDonald’s Corporation 2010). McDonald’s main target for its products over years has been children and mothers. The company has therefore adapted its products and restaurants to its main target. Besides its ‘Happy Meals’, some of McDonald’s restaurants serve breakfast offering that include coffee, Egg Sandwiches, Sausage McMuffin, biscuit and hotcake.

Though McDonald’s is generally successful, it has encountered various challenges along the way. High competition in fast food industry has been one of the main challenges in its global strategy. Apart from high competition, the company has been involved in controversies over its contribution to obesity. Increased health concerns especially in the US and UK has been a major concern to McDonald’s management.

McDonald’s has adopted various strategies in order to be successful in global fast food industry. Although McDonald’s is one of the most experienced companies in the fast food industry, established and upcoming companies have been a threat to its market share. Wendy’s is just one of the fast food companies that have been a threat to McDonald’s.

Through adopting certain strategies, McDonalds have been able to withstand competition and increase its number of restaurants across the globe. Strategic management should define an organization’s position, its desired position in the future and actions to be taken in order to achieve the desired goal.

Through its ‘plan to win’ global strategy, McDonald’s has been able to remain highly competitive despite of negative publicity over health concerns.

Increased health concerns and negative publicity resulting from health related controversies have been a major challenge to McDonald’s (Wilsher 2010). To address this, McDonald’s has adapted various business strategies. To create a healthy image for itself, McDonald’s plan to do away with soft drinks and Super French fries.

Besides, the company plans to make changes to its menu in order to reflect increases health concern. For instance cinnamon roll with a sausage burrito is considered to be the major breakfast offering in United Kingdom.

McDonald’s has been able to establish a strong brand over years. With negative publicity resulting from health concerns, the company has increased its effort to protect its brand. “Be our customers’ favourite place and way to eat” is the company brand mission (Ganapathy 2009). To ensure the mission is achieved, the company has taken firm actions from improving products, customer service to promotion.

The company has implemented a new cooking system aiming at improving quality of products served in its menu (Howard 1999). Restaurant décor to brand icon has been improved across the globe in order to ensure consistent image to its customers. In addition, McDonald’s has consistently increased its promotion effort through conventional channels as well as new technology such as the internet.

Customer service is core to success in hotel and hospitality industry (Prakash and Olsen 2003; Tse and Jogaratnam 2008). McDonald’s has taken strategic actions to ensure high customer feel. Part of the strategies includes recruitment and training of right staff.

McDonald’s staff is trained to treat customers with respect and maintain a smiling face while serving. High standard of hygiene is maintained including restaurants’ bathrooms. To show its concern for environment, McDonald’s collects dropped burger wrappings and cups using its three-wheeled vehicle (Livesey 1999).

The principle objective of strategic management is to boost an organization’s competitive advantage. It enables the management to establish plans to address current and future needs of an organization (Thompson, Strickland and Gamble 2007; Carpenter, Sanders, Rice and Martin 2010). Fast food industry has attracted many players that try to address various customer needs.

Most of these competitors exploit customers’ needs and concerns not well served in McDonald’s. McDonald’s therefore needs to put more effort to maintain its market share in the industry. Some of strategic actions that McDonald’s should take include:

Enhance promotion and advertisement in order to overcome negative publicity
Progressively expand its menu in order to accommodate increased customer needs and tastes, including health concerns
Invest more on product development in order to come up with competitive products for different cultures

Strategic management approach is a necessity in all industries in the global economy. Hotel and hospitality industry is one of the industries that most require strategic management. Companies in this industry must align their products and services to rapidly changing customer needs and taste. McDonald’s success in fast food industry can be attributed to its adherence to strategic management principles.

The company is able to overcome its challenges by following clear-cut plans. Though clouded by controversy over health concerns, the company seems to maintain customer loyalty and still has high competitive advantage over other players in the industry.

Carpenter M. A., Sanders W., Rice J. and Martin N., 2010, Strategic Management: A Dynamic Perspective, Concepts and Cases , Pearson Australia, Frenchs Forest.

Ganapathy, S., 2009, McDonald’s International Strategy: Squander Brand Equity? Web.

Howard, T., 1999, The Over-Arching Strategy-McDonald’s Global Brand Strategy Task Force . Web.

Hubbard, G., Rice, J. and Beamish, P., 2008, Strategic Management Thinking Analysis, Action, Pearson, Sydney.

Livesey, S., 1999, McDonald’s and the Environmental Defence Fund: A Case Study of a Green Alliance, The Journal of Business Communication, Vol. 36

McDonald’s Corporation 2010, Travel through Time with Us . Web.

Prakash, K. and Olsen, M., 2003, Strategic alliances: a hospitality industry perspective, International Journal of Hospitality Management Vol. 22, pp 419-434.

Thompson, A., Strickland, A., and Gamble, J., 2007, Crafting and Executing Strategy, McGraw-Hill, New York.

Tse, E. and Jogaratnam, G., 2008, From the top down: strategic management in the Hospitality Industry, SAGE Handbook of Hospitality Management , SAGE London, pp165 – 191.

Wilsher, S., 2010, McDonald’s in Hot Water over Marketing Tactics. Web.

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McDonald’s Case Study Freshest Ideas – Strategic Management, Global Marketing, etc.

The picture provides introductory information about McDonald's Corporation.

Have you ever wondered how McDonald’s became world-famous for selling sandwiches and potatoes?

McDonald’s Corporation is a leader in the fast-food industry, an extremely competitive market. This article will discuss various factors that brought the restaurant chain to success. We will answer all your questions for the McDonald’s case study: strategic management, marketing, competition, crisis management, etc. Let’s start!

🦸 McDonald’s Facts
🌿 McDonald’s Case Study Ideas
🍔 Marketing
🥤 Strategic Management
🧸 McDonald’s Staffing
🍟 McDonald’s Vs. Burger King
🤢 McDonald’s and Obesity
🥻 McDonald’s in India
🤠 Crisis Management

🎉 McDonald’s Case Study – 50 Best Examples

🔗 references, 🦸 5 crazy facts about mcdonald’s.

We bet you didn’t know most of these facts:

French fries are the best-selling item on the menu. No, not everyone’s all-time favorite Big Mac. But it is pretty popular too, in second place.
US military inspired Mcdonald’s to create McDrive. Some of the soldiers on duty were not allowed to leave their cars. That is why a Mcdonald’s restaurant near a military base developed a drive-through system that spread to other branches.
Mcdonald’s sells around 75 hamburgers in a second. More than 750 hamburgers will be in customers’ hands only before you finish reading this article.
Some countries banned McDonald’s. Bermuda, Iran, Macedonia, Yemen, Montenegro, North Korea, Zimbabwe, Bolivia, and Iceland don’t have a single Mcdonald’s restaurant on their territories.
McDonald’s is the biggest toy distributor in the world. The company gives kids more than 1.5 billion toys yearly, thanks to Happy Meal. Check out McDonald’s Research Topics & Essay Examples to learn more about the company!

🌿 McDonald’s Case Study – Fresh Ideas

McDonald’s is an excellent research field. It’s a big and famous company with many departments and a long history. Don’t know what to begin with? Check McDonald’s case study starters below:

Advertising campaigns.
Pricing strategies.
Human resource management.
McDonald’s hiring process in 2021.
Creative marketing campaigns.
Ronald McDonald House Charities.
Corporate environment.
International markets strategies.
Fast-food industry problem statement.
McDonald’s financial summary.
Food shortage in local markets.
Benefits for employees.
Supply chain.
Sustainability.
Community connection.

🍔 McDonald’s Case Study Marketing – Idea #1

Take a look at key marketing focus areas of McDonald’s:

Quarter Pounder
Filet O’Fish
McDonald’s advertising The advertising budget is constantly growing and expanding to new markets. The company spent $1.62 billion on ads in 2020.
McDonald’s branding The fast-food chain developed a string brand using red and yellow colors, “M” golden arches and copywriting. You probably know McDonald’s world-famous slogan, “I’m loving it.”
Marketing for children segment Happy meals and marketing campaigns targeted at children made McDonald’s No1 fast-food restaurant for families.
McDonald’s franchising model The company was one of the pioneers in franchising. It also implemented a unique quality control system and adapted menus to regional tastes.

The picture provides information about the approximate daily income of McDonald's.

🥤 McDonald’s Case Study Strategic Management – Idea #2

McDonald’s constantly sets new goals and reviews current strategies to maintain its position in the market. Here is what you can research:

McDonald’s strategic objectives Apart from generating revenue, McDonald’s focuses on its mission and vision. The company aims to become its customer’s favorite restaurant with excellent service.
McDonald’s strategic management in HR The company devotes much attention to employment and workforce management planning. McDonald’s also implements innovative technologies to automatize HR processes.
McDonald’s strategic investments McDonald’s continues to invest in core menu positions’ marketing as they make roughly 70% of the sales. They plan to integrate more bestsellers into regional menus.
McDonald’s strategic innovations The company prioritizes 3Ds (Digital, Delivery, and Drive-Thru) in its current growth strategy. The company works on social and digital client interactions to create a better customer experience.
McDonald’s financial strategies McDonald’s financial goal is to maximize its revenue by offering more straightforward financial solutions to its partners. The company supports suppliers and franchisees to help local economies recover after the COVID-19 pandemic.

👔 McDonald’s Staffing – Case Study Idea #3

McDonald’s offers various jobs, from the front counter and drive-thru to top management careers. How are employees treated in McDonald’s? Let’s find out:

2021 measures to fight labor shortage At the beginning of 2022, McDonald’s announced that in 2021, it had significantly grown its number of employees. The reasons were wage increases, more benefits, and additional bonuses.
McDonald’s recruiting The company uses various selection, screening, and testing techniques depending on the career a person applies to. Hiring managers have many responsibilities, as McDonald’s employs around 200,000 people yearly.
McDonald’s human resource management There are more than 1,7 billion McDonald’s crew members around the world. McDonald’s provides training and performance appraisal.
Career ladder in McDonald’s Based on the results of its employees, there are multiple career growth opportunities at McDonald’s.
Diversity and inclusion in McDonald’s McDonald’s works on key factors that are equal pay, supplier and franchisee diversity, and other sustainability goals. The company implements its DEI (Diversity, Equity & Inclusion) strategy in its departments and supply chains.

The picture states that McDonald's annually purchases around 2 billion eggs for their US restaurants.

🍟 McDonald’s Vs. Burger King Case Study – Idea #4

Burger King is one of McDonald’s main competitors on the market. You can compare these fast-food chains using the following aspects:

McDonald’s and Burger King’s customer service Burger King greets each customer when they enter its restaurants. In addition, Burger King replies to unsatisfied McDonald’s customers on social media and offers their coupons.
McDonald’s and Burger King’s pricing strategy In general, McDonald’s prices are a bit lower. But there is no significant difference in their pricing strategies.
McDonald’s and Burger King’s menu positions Burger King offers more balanced options than McDonald’s. On the contrary, McDonald’s is the leader in the breakfast menu and has many healthy options.
McDonald’s and Burger King’s advertising McDonald’s implements better branding decisions and consistent advertising. Burger King creates more memorable and witty TV commercials.
McDonald’s and Burger King’s coffee McDonald’s offers better coffee with a broader menu, especially in McCafe. Burger King’s coffee is not as popular.

The picture provides a comparison of McDonald's and Burger King in different aspects.

🤢 McDonald’s and Obesity Case Study – Idea #5

McDonald’s and other fast food generally contain many calories, leading to weight gain. This problem is especially prominent in the US, where fast food is much more popular than in Europe.

McDonald’s responsibilities As the most popular fast-food chain, Mcdonald’s can set trends in the industry that other chains will follow.
McDonald’s nutritional information presentation In 2022, Mcdonald’s changed its calorie legislation. You can see calorie and macronutrient information about all the menu items in all customer touchpoints.
McDonald’s and childhood obesity The company aims to reduce the amount of sugar, salt, and fat on the Happy Meal menu. McDonald’s also promotes healthy and balanced eating habits in its ads for children.
McDonald’s accusations Advertisements, loyalty programs, and discounts motivate people to buy more. That is why much of McDonald’s marketing is criticized because it makes people buy bigger portions and more menu items.
McDonald’s healthy meals The restaurants offer different salads, healthy breakfasts, low-fat milk, apple dippers, and other region-specific options.

🥻 McDonald’s in India Case Study – Idea #6

Indian culture and eating habits were a challenge for McDonald’s. Now we can see that the restaurant has successfully conquered the market.

Mcdonald’s expansion to India McDonald’s opened its first restaurant in Delhi in 1996. Before McDonald’s entered the market, Indians didn’t even consider a burger as a meal.
McDonald’s menu in India You can find many spicy burger options, spicy fries, kebabs, pizza, and rice bowls on the menu.
Domino’s Pizza
Dunkin Donuts
Burger King
Vegetarian market Indians don’t eat beef or pork at all. Nearly half of the Indian population is vegetarian. That is why McDonald’s made adjustments to its branding and ingredients.
McDonald’s opportunities in India Indians’ eating habits have changed over the last few years. More of them choose to eat out and eat western food.

The picture states how long it will take to burn off a Big Mac, Coke, and fries.

🤠 McDonald’s Crisis Management Case Study – Idea #7

McDonald’s regularly faces controversies and scandals that they have to deal with. Here are some examples of such cases:

McDonald’s crisis response in 2020 During the Covid-19 pandemic, McDonald’s provided financial support to its franchisees and employees. It also continued operating and ensured no delays in the supply chain.
Steve Easterbrook lawsuit The former McDonald’s CEO was fired because of an affair with an employee. Later, the company discovered he had three other relationships with his employees.
McDonald’s discrimination scandals Multiple sources alleged that David Fairhurst, former Chief People Officer, sexually harassed female employees. He also was forced to leave his job.
McDonald’s transparent investigations After the scandals that involved higher management, McDonald’s implemented new policies. They include public and transparent actions and a proactive position in the investigation.
Million-dollar nugget lawsuit A man from Florida cracked his tooth because of a bone in a nugget. Currently, he is trying to sue McDonald’s for the damage.

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Case study McDonalds Business Plan

Published Date: 23 Mar 2015

Disclaimer: This essay has been written and submitted by students and is not an example of our work. Please click this link to view samples of our professional work witten by our professional essay writers . Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of EssayCompany.

In view of the current issues facing the company as well as the result of the SWOT analysis and Porter's Five Forces Analysis, McDonald's may find it compelling to enter new offshore markets. Consequently, the Asia-Pacific region, more particularly China has been considered a promising market for McDonald's. The SWOT analysis revealed that McDonald's has the internal capabilities to enter new market and that external threats make it imperative for the company to enter new markets. In addition, Porter's Five Forces Analysis also confirms that McDonald's initiative to expand to China could benefit the company to a large extent. Finally, the PESTEL Analysis also suggest that China is potentially a good new market for McDonalds.

1.0 Introduction

A news article by Nicholas (2010) featured McDonald's voluntary recall of tumblers sold in its store. As revealed in the article, the tumblers were sold at McDonald's as part of the promotional tie up with a new film. According to the news article, the tumblers contained cadmium, which is a toxic substance that is extremely dangerous to the developmental health of children (Nicholas 2010). In response to the issue, the Consumer Product Safety Commission called on fast food companies for a stricter and thorough review of domestic and international supply chains in order to prevent products with potentially dangerous elements to reach its stores (Nicholas 2010). Consequently, this issue could add to the list of challenges being faced by the company. To recall, McDonald's has also been held responsible for obesity among children in the US and the UK (Kilkenny, 2010), which may so far be considered as the most disastrous issue facing the company. In view of the issues facing the company, McDonald's may find it vital to launch new business initiatives. This paper presents a business plan for McDonald's, which centers on the strategic issues facing the company and on the result of the SWOT (strengths, weaknesses, opportunities, and threats) Analysis, Porter's Five Forces Analysis, and PESTEL (political, economic, social, technological, environmental, and legal) Analysis conducted on the company.

2.0 McDonald's Company: Business Overview

According to Adams (2007), McDonald's is a popular destination for fifty million customers every day, making the company one of the largest fast food restaurants in the world. McDonald's is considered as the world's leading fast-food Company in terms of revenues and

number of restaurants. At present, there are about 32,500 McDonald's stores in over 100 countries across the globe, employing a total of 385,000 employees worldwide (McDonald's 2010). The company is headquartered in Oak Brook, Illinois, but its operations span from the United States to Europe to the Middle East and to the Asia Pacific region (McDonald's 2010).

McDonald's stores sell a standardized menu, but there are slight variations depending on the country where the store operates. For example, aside from its standard menu, McDonald's sell coconut water in Brazil, rice burgers in Taiwan, and porridge in the UK to suit the local taste of the customers (Adams 2007). The key or standard products served at McDonald's stores include hamburgers and cheeseburgers, chicken sandwiches, French fries, wraps, chicken nuggets, salads, desserts, sundaes, soft served cones, pies, as well as cookies. Furthermore, McDonald's also serves a wide range of beverages including milk shakes, soft drinks, coffee, and flavored tea. In addition, McDonald's also sells breakfast items especially in the US and many international markets, whereby breakfast offerings include muffins, biscuits, hotcakes, and bagel sandwiches. McDonald's markets its products under the following global brands: Big Mac, Big N' Tasty, Filet-O-Fish, McNuggets, McFlurry, McMuffin, and the McGriddles (McDonald's, 2010).

McDonald's Head Quarters

3.0 SWOT Analysis

3.1 Strengths

Strong Brand: As mentioned in Leong and Lwin (2006) brands are valuable symbols that magnify the image of the company. In the case of McDonald's, strong brands may be considered one of the greatest strengths of the company. As a proof, McDonald's was included in the list of the "best global brands" in the annual ranking of the Business Week magazine for 2009 (Holbrook, 2009). In relation, McDonald's brand equity for 2009 was valued at around $32,000 million (Holbrook, 2009). As a strong global brand, McDonald's is very well known in the informal-eating out market in almost all countries where it operates.

Strong Global Presence: Aside from a strong brand, McDonald's strong global, diversified presence may also be considered a major strength of the company. At present, McDonald's has more than 32,000 stores in key geographic locations, such as, the US, Europe, Asia Pacific, Middle East, and Africa (McDonald's, 2010). Furthermore,

McDonald's operations span across 118 countries across the globe (McDonald's 2010). Consequently, McDonald's operations tend to be relatively larger compared to rivals.

Large Scale of Operation and Product Customization: Given that McDonald's is the world's largest food service retailing chain, it could leverage on its size to compete effectively in the market. Furthermore, McDonald's has bigger economies of scale in terms of sales or revenues to compete with rivals. For example in fiscal year 2009, McDonald's generated revenues totaling to $22,744.7 million, which is significantly higher compared to the revenues of Wendy's ($3,580.8 million) and Burger King Corporation ($2,537.8 million).

Low-Cost Foods: McDonald's has been popular in the market due to its dollar menu, which includes fruit and yogurt parfait, cheeseburger, and fries (Dunlop, 2009). McDonald's low cost food has been considered a major strength to the extent that the company still managed to increase sales by 6.8 percent over the previous year in spite of the economic downturn. Aside from the regular menu, McDonald's also sell specialty coffee such as those sold at Starbucks but a lower cost. To illustrate, Huglett (2009) noted that prices of espresso-based coffee sold at McDonald's costs about 75 cents cheaper than Starbucks' coffee. Generally, Holbrook (2009) noted that fast food companies flourished even in a struggling economy due to its cheap menu items.

Good Community Reputation: McDonald's sponsors the Ronald McDonald House of Charities, which is an integral aspect of the company's corporate social responsibility programs. As part of the program, McDonald's sponsors various community outreach programs that aim to benefit children especially those who come from poor families in various communities where McDonald's operates (Adams, 2009). For example, the Ronald

McDonald Care Mobile aims to provide free screenings and treatments to children all around the United States (McDonald's, 2010). McDonald's corporate social responsibility program has helped create a positive company image. McDonald's mascot, Ronald McDonald has become a symbol of goodwill among customers, most especially to the children.

Progressive External Orientation: As part of the company's commitment to total customer satisfaction, McDonald's offers free Wi-Fi services in over 15,000 stores across the globe (McDonald's, 2010). The free Wi-Fi access is intended to meet the personal and professional needs of McDonald's customers (McDonald's, 2010).

3.2 Weaknesses

Health Issues: One of the weaknesses of McDonald's is that its core products were considered unhealthy (Adams, 2009). For example, McDonald's French fries was feared to have more Tran's fat, which could cause obesity among consumers.

Legal Suits Filed Against the Company: McDonald's is party to several litigations around the world. McDonald's have faced charges of violation of state consumer fraud acts, unfair competition or deceptive trade practices acts, strict liability, failure to warn, negligence, breach of express and implied warranties, fraud and fraudulent concealment, negligent misrepresentation and concealment, unjust enrichment, and false advertising (Brown, 2003). Additionally, McDonald's have admitted to 20 offenses of illegally employing children aged 15 and 16 at two restaurants in Surrey, UK (Brown, 2003). Furthermore, the company also received more than 2,750 recorded customer complaints of food poisoning a year (Brown, 2003). Consequently, these issues have tarnished McDonald's reputation in the market.

3.3 Opportunities

Adding Healthy Food Options: Studies reveal that consumers are becoming more particular of the health implications of their consumption, whereby consumers now tend to demand healthy food options (Taylor, 2006). For McDonald's, this trend could create an opportunity for McDonald's to expand its menu to include healthy food varieties such as salads and fruits.

Improving the Transaction and Service Delivery Processes: Improvements in technology provide a way for more efficient ordering and paying processes. Technologies that could improve transactions at fast food restaurants include the following: touch-screen ordering system, which makes order taking faster and more efficient; timing systems, which aims to monitor meal progress and hence ensure that orders are delivered accordingly; reservation systems, which aims to maintain good flow of traffic within the restaurant; inventory management system, which allows restaurants to effectively track supply levels and reduce wastes from over stocking and spoilage; and hand-held point of sale devices, which allows servers to place orders and print checks at the tableside.

3.4 Threats

Slowing Economy: As mentioned in Horovitz (2009), businesses, including fast food restaurants are vulnerable to economic downturns. Generally, the economic slow down has negative implications to the business reflected in slightly depressed sales growth of restaurants.

Consumer Eating Out Less: Surveys reveal that consumers are beginning to eat out less relevant to the economic downturn. In relation, a survey conducted by the Nielsen Company revealed that about 46 percent of American households have begun to eat out less (Panian, 2010).

Increasing Competition: Competition in the fast food industry has intensified over time, thereby putting pressure on McDonald's. McDonald's does not only compete with rival companies in the industry, but also with formal restaurants and easy-prepare meals sold at supermarkets (Zwolak, 2010).

Increasing Regulations: The fast food industry is under strict regulation from the government due to health issues associated to products sold at fast food restaurants. For example, some states in the US have required fast food restaurants to print calorie and nutrition information on their menu and at the same time placed restrictions on selling snack food and soda (Hirsh, 2009).

4.0 Industry Analysis

4.1 Size and Growth

According to Data Monitor industry report, the US fast food market generated total revenues of $68.2 billion in 2008, equivalent to a compound annual growth rate of 5.5% for the periods between 2004 to 2008. Furthermore, the industry is highly fragmented, with the four top players holding only 35 percent of the available market share (Zwolak, 2010). Furthermore, 48 percent of establishments are small business operators with nine or fewer employees, while the other 52 percent have between 10 and 99 employees.

The fast food industry is in the mature phase of its industry life cycle (Zwolak 2010). In this regard, growth may still be expected but at a slower pace and has the possibility of reaching saturation point in the domestic market. For the fast food industry, annual growth is expected to be around 2.5% over the next five years (Zwolak, 2010).

5.0 Porter's Five Forces Analysis

5.1 Buyer Power

Buyer power is assessed as moderate to the extent that buyer power within the fast food market is weakened by the fact that while not everyone enjoys fast food, large numbers of people are patronizing fast food. Buyer power is strong as such fast food companies are compelled to offer low prizing scheme.

5.2 Supplier Power

Supplier power is assessed as strong to the extent that the supplier market is quite consolidated whereby few supply companies have substantial market shares and have other customers in the cost foodservice sector and in other segments of the profit food sector, hence decreases their dependence on fast food companies.

5.3 New Entrants

Entry to the fast food market does not require huge capital outlay, allowing small business owners to establish single, independent fast food outlets. Furthermore, franchising agreements are common in the industry. As a proof, franchisees run the majority of McDonald's outlets in the US. In this regard, there is a strong likelihood of new entrants.

5.4 Substitutes

Generally, substitutes present a strong threat to companies operating in the fast food industry. At present, substitutes for fast food include other forms of profit food service, and also food retail such as ready meals or easy-to-prepare meals (i.e., frozen meals) for home cooking.

5.5 Rivalry

Rivalry in the fast food industry is relatively strong, given that the industry is highly fragmented. As mentioned before, the top four players in the industry hold only 35 percent of the total market share.

6.0 Business Expansion Plan: Entering New Market

In view of the current issues facing the company as well as the result of the SWOT analysis and Porter's Five Forces Analysis, McDonald's may find it compelling to enter new offshore markets. Consequently, the Asia-Pacific region, more particularly China has been considered a promising market for McDonald's. In relation, the Data Monitor market research found that the Asia-Pacific fast food market has posted strong, generating total revenues of $47.1 billion in 2008, equivalent to a compound annual growth rate of 10.3 percent for the period spanning 2004 to 2008, with the Chinese and South Korean markets having compound annual growth rates of 14.5% and 5.6% respectively.

7.0 PESTEL Analysis

The PESTEL analysis will be used to validate the attractiveness of China as the target market for McDonald's. The goal of the PESTEL analysis is to analyze how political, economic, social, technological, environmental, and legal factors will interfere with the organization in entering the Chinese market.

7.1 Political Factors

China adopts the "open door" reform policy, which aimed to decentralize the economic system and to attract overseas investment. In this regard, McDonald's would not have difficulties in entering the Chinese market, as the political structure of the economy supports foreign direct investment.

7.2 Economic Factors

China is one of the fastest growing economies in the world today and growth forecasts for the subsequent years are fairly high. For McDonald's the booming economy and increasing gross and disposable income of the population in China suggest higher revenues in the future.

7.3 Social Factors

The population of China was estimated at 1,328,020,000 as of 2008 and is expected to grow at a slower pace, given the one-child policy being adopted by the country. For McDonald's the large number of population in China opens opportunity for higher sales potentials.

7.4 Technological Factors

Chinese government has placed significant investments on science and technology, leading to significant improvements in technology in the country. For McDonald's, improvements in technology could offer significant opportunities for businesses in managing different aspects of the business. Companies could leverage on newly introduced software to increase productivity and efficiency.

7.5 Environmental Factors

The Chinese government has committed to reducing its carbon footprint in the future. In this regard, stricter environmental restrictions on businesses may be expected.

7.6 Legal Factors

The Chinese labor force is highly regulated compared with other countries in the Asian region, whereby regulations are tighter for dismissing workers than on hiring.

8.0 Customer Analysis

The target market segment of McDonald's in the new market includes mostly of busy, working people, to the elderly and young. Convenience may be considered as the main factor that attracts busy, working people to fast food as well as to the elderly and the young. Additionally, value for money may be considered as the greatest factor that would attract low to middle income households to fast foods. Finally, the children's meal offered at McDonald's would appeal to children.

9.0 Competitor Analysis

McDonald's major competitors in the international fast food market are: Wendy's International and Yum Brands Inc. Focusing first on Wendy's International, the company is engaged in the operation, development, and franchising of restaurants, operating a total of 6,645 restaurants in the US and in 19 other countries and territories (Data Monitor, 2009). Same with McDonald's, Wendy's also offer a standardized menu, comprised of hamburgers and chicken sandwiches, as well as chicken nuggets, chili, baked and French fried potatoes, freshly prepared salads, milk, frosty dessert, floats, and kids meals. In FY 2008, the company reported revenues totaling to $1,822.8 million and net losses amounting to 413.6 million (Data Monitor, 2009).

Meanwhile, Yum Brands Inc., similarly develops, operates, franchises, and licenses a system of restaurants. The company operates under five branded restaurant concepts, namely KFC, Pizza Hut, Taco Bell, LJS, and A&W (Data Monitor, 2009). Yum Brands operates a total of 36,000 restaurants in more than 110 countries. Yum Brands generated total revenues of $11,279 million in the financial year ended December 2008, equivalent to an 8.3% compared to the previous year.

10.0 Conclusion

McDonald's is considered as the world's leading fast-food company in terms of revenues and number of restaurants. However, in view of the current issues facing the company as well as the result of the SWOT analysis and Porter's Five Forces Analysis, McDonald's may find it compelling to enter new offshore markets. Consequently, the Asia-Pacific region, more particularly China has been considered a promising market for McDonald's. In relation, the PESTEL analysis confirms that China is potentially a good new market for McDonalds.

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Abstract. For a lot of people, the name of McDonald's instantly brings a smile. It is known for its crispy burgers and its wide network of outlets. The company started its business operations in India in 1996 as a 50:50 joint venture partnership between the two businessmen Amit Jatia (Jatia) and Vikram Bakshi (Bakshi).
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May 8, 2022. MCDONALD'S CORPORATION 2. Case Study "McDonald's Corporation". McDonald's first fast-food restaurant opened in 1948, less than a decade after the first. draft of the Company's ...
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Increased health concerns and negative publicity resulting from health related controversies have been a major challenge to McDonald's (Wilsher 2010). To address this, McDonald's has adapted various business strategies. To create a healthy image for itself, McDonald's plan to do away with soft drinks and Super French fries.
McDonald's Case study: McDonald's Staffing, Marketing, Crisis
This case study defines the external and internal factors that affect McDonald's HRM, the company's strengths, weaknesses, and opportunities. McDonald's, Tesla and Apple: Segmentation, Targeting, and Positioning. The paper compares strategies these giant companies use to define and interact with their target customers.
Marketing Case Study Mcdonald's
McDonald's has been in business since 1955. Through many years of great strategic and financial planning, it has become one of the most successful food chains in the world. In order to continue its great success, McDonald's must continue to adapt to change.
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It is somewhat of impossibility for one to not come across a McDonald's with over 30,000 local restaurants in over 100 countries (McDonald's, 2011). Those restaurants are owned either by a franchise owner or a corporation; a percentage of all the earnings from a franchise owner, including a percentage from their annual revenue go to McDonald's.
Case Study Of Mcdonalds In Singapore Marketing Essay
Jun 4 1991: Opening of McDonald's Place, McDonald's new corporate headquarters at King Albert Park. Sep 1992: McDonald's Becomes Halal. Jul 5 1993: Singapore Polytechnic is the First McDonald's Restaurant in an Educational Institution. 1996: Hong Kah CC is the First McDonald's in a Community Centre.
Case study McDonalds Business Plan
Disclaimer: This essay has been written and submitted by students and is not an example of our work. Please click this link to view samples of our professional work witten by our professional essay writers.Any opinions, findings, conclusions or recommendations expressed in this material are those of the authors and do not necessarily reflect the views of EssayCompany.

Mcdonald’s Marketing Strategy 2024: A Case Study

Key Takeaways:

The Evolution of McDonald’s Marketing Strategy

Online Marketing Strategies

Offline Marketing Strategies

McDonald’s Target Market Segmentation

McDonald’s Target Market Demographics

McDonald’s Advertising Strategy

McDonald’s Digital Marketing Strategy

McDonald’s Customer Loyalty Programs

1. The Happy Meal

2. Personalized Experiences Through the Mobile App

Market Research at McDonald’s

McDonald’s Competitive Advantage

McDonald’s Market Expansion and Growth

Franchise Agreements and Global Expansion

Market Growth and Presence

The Power of McDonald’s Marketing Strategies

McDonald’s Impact of COVID-19 on Marketing Strategy

Shift towards Digital Marketing

Contactless Experiences

Expansion of Delivery Services

Safety Precautions

McDonald’s Future Marketing Initiatives

Innovation:

Personalized Marketing:

Sustainability Initiatives:

Community Engagement:

What is McDonald’s marketing strategy?

How has McDonald’s marketing strategy evolved over the years?

Who is McDonald’s target market?

How does McDonald’s advertise its brand and menu offerings?

How does McDonald’s use digital marketing in its strategy?

What customer loyalty programs does McDonald’s offer?

How does market research contribute to McDonald’s marketing strategy?

What is McDonald’s competitive advantage?

How has McDonald’s expanded its market presence?

How has the COVID-19 pandemic impacted McDonald’s marketing strategy?

What are McDonald’s future marketing initiatives?

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McDonalds marketing strategy: Inspiring Findings from a Case Study

Table of Contents

McDonald’s marketing strategy – Place

McDonald’s marketing strategy – Pricing

McDonald’s marketing strategy – Product

McDonald’s marketing strategy – Promotion

McDonald’s marketing strategy – People

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Case Analysis: McDonald's Corporation

McDonald's Corporation

Learning Objectives

McDonald’s Marketing Strategy – a Case Study

Introduction

Study Objectives

Formal Marketing Control

McDonald’s Environmental Analysis

The external environment

Competition

Economic growth and stability

Political trends