CASE STUDY ON
14, MARCH 2013
McDonalds A Current Marketing Situation
1. McDonald’s is the world’s largest restaurant organization. 2. Strong brand name and recognition.
3 McDonald’s generate more than $40 billion in system wide sale. 4 It operates over 35000 restaurants in more than 100 countries on six continents. 5 It has an unparalleled global infrastructure and competencies in restaurant operations, real estate, retailing, marketing and franchising. 6 McDonald’s website says that it is a leader in the area of social responsibility and is committed to protecting the environment for future generations. 7 Strong and wide communication channel in the market. (deng, 2009) 8 Play areas for children.
9 Large target markets.
10 Recession resistant (Birchall, 2008)
11 In September 2003 successful backing up of new products was launched with MTV’s advertising campaign featuring the new tag line, “I’m Lovin’it”. (Jennifer, 2004)
1 McDonald’s has not achieved its growth expectations in past several years. 2 Narrow Product lines. (deng, 2009)
3 McDonald’s brand association as a junk food. (deng, 2009) 4 Few option for healthy eating
5 High employee turnover rates. (macy, 2012)
6 McDonald’s also have some bad effects on environment. (ltd., 2006) 7 McDonald’s also faces many types of legal actions on many issues.
OPPORTUNITIES 1 Product packing for McDonalds now features QR codes for customers to get nutritional information. (Mcnamara, 2013) 2 Opportunity to enlarge market, the consumers who care about health issue. (deng, 2009) 3 Slightly changing market brand image of McDonalds. (deng, 2009) 4 In 2009, McDonald’s launched its hefty Angus burger in all U.S.A locations. 5 Introduction of trans-fat-free French fries in all restaurants in the U.S.A and Canada. 6 Introduction of McCafe.
7 Testing marketing fruits and vegetables as happy meal at some outlets. 8 McDonald’s franchises overseas became a favorite target of people and groups expressing antiglobalization sentiments. 9 Entry into new and highly popular product categories.
1 Public attack about obesity issue. (deng, 2009)
2 Changing taste of consumers. (deng, 2009)
3 Unable to keep patrons as special order sandwiches offered by rivals Burger King and Wendy’s. 4 Promotional plans like McDonalds game found conspiracy with 51 people charged in a part of scam winning $24 million by stealing winning McDonald’s tickets. 5 McDonalds showed a delayed effect than other restaurants operators in switching over to zero trans-fat cooking oil. 6 In 2001 McDonald’s was sued for hurting religious sentiments by vegetarian groups for not revealing its flavors in French fries as it added beef extract to vegetable oil and showing it as veg in menu. 7 Consumers began filing law suits that eating at McDonald’s had made them over weight. 8 Competition from burger kings and Wendy’s. (Thomadsen, 2007)
TARGET MARKET| BABY BOOMERS| GENERATION X| GENERATION Y| GENERATION Z| DEMOGRAPHICS| 45-65+| 35-44| 19-34| 0-18|
GEOGRAPHICS| URBAN| URBAN| URBAN| URBAN|
PSYCOGRAPHICS| More concerned with low cholesterol food| More concerned with low fat food| More concerned with physical fitness food products| Generally eats taste oriented food products| BEHAVIOURAL| Mostly concerned with good quality of food products| Requires access with quick and fresh food service| Generally catch-up food by themselves by reaching out| Check out with friends and family|
1 In 2004,Morgan Spurlock’s documentary film Super-Size Me gave very criticism to McDonald’s fast “nutrition”, in which he shows how he gains fat and...