Mc Donalds Presentation

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McDonald’s
Repositioning the Golden Arches
01/30/2013


5.

“In the middle of difficulty lies opportunity”
- Albert Einstein

Mc Donald’s is Global-and in Your Hometown
         Leading global foodservice retailer More than 34,000 restaurants with 1.4 million employees Serving nearly 69 million people in 119 countries 80% of restaurants are franchised (Business model) Strategic Direction: “Plan to Win” (execution of 5 P’s) and “System Partners” (Franchisees, global suppliers and Workforce) Global comparable sales growth 5.6% Top performing company in Dow Jones Industrial average (1.5 M shareholders by Jan. 31st 2012) Ranked #2 in Fortune magazine among “Management Quality” and “Global Competitiveness” Sustainability and charity efforts (About Mc Donald’s, 2013)

Wedding Party in Hong Kong

Q1-What environmental trends have challenged Mc Donald’s?  New arrival into the market: Subway, Pret a Manger, Benjys Starbucks, Costa Coffee = more pressure to defend market share  Healthy eating awareness among competitors: Quiet revolution, Eat and Love Juice  Series of health scares: Bird flue, BSC crisis, swine flue  Rise in levels of childhood obesity (Marketing Week, 2005)  Lawsuits: obesity and heart problems of 2 teens and Mc Donald’s coffee case (Consumers Attorneys of California,2011)  Media influences- TV chef Jaime Oliver & film "Super size Me“  Opening many restaurants rather than growing the overall market- “Quantity over quality”

Q2-Repositioning and Assessment
PRODUCT Similarity Similarity TARGET MARKET households earning less than $60,000 per year Global advertising Campaign Social Media •Advertising (I’m lovin’ it) •New look (every 3y) •Sponsorship •Bloggers Sustainable product • Organic coffee • Free range eggs • Fairtrade milk Differences Revising menu •Smoothers •Premium product • limited edition offering

Differences

Health nutrition •Introduction fruit and vegetable product; •healthy snacks

McDonald’s Attempts to Reposition its Brand
② Global Advertising Campaign & Social Media
• ‘It’s what I eat and what I do…I’m lovin’ it.’ advertising : Aimed at educating consumers towards living healthy lives. : A fun place to be “bababababa I’m lovin’ it” (Easy to remember, give sharing moments) • The social-media site to drive people to its new commercials highlighting some of the real-life farmers and ranchers who supply McDonald’s with its ingredients. • Interaction with bloggers, putting them behind curtains to make sure McDonalds is working together with their customers. • $45 million on advertising in the UK alone • Various Sponsorships

Assessment
• I’m lovin’ it : McDonald’s Global Advertising Strategy….……………..“Successful”  This branding work triggered their revival. In 2004 a double-digit profit gained in USA. Sales of the 2nd quarter jumped to $4.7 billion, a 9% rise

McDonald’s Attempts to Reposition its Brand
② Investment in new look
"People eat with their eyes first" President and CEO of McDonald’s Corporation Don Thompson. Restaurants renovation (stone, wood, glass, LED lights). Supplementary facilities (free Wi-Fi and LED television). Differentiation of the sitting area between different segment customers. Changing of color palette.

Assessment
Contemporary look. Contributing to efficient energy consumption. Number of customers increased.

McDonald’s Attempts to Reposition its Brand
① Revise in Menus “Healthy Nutritious Meals”
• Fruit bags and vegetables for children in Happy Meal as healthy snacks. Smoothies, Energy Drinks, Specialty coffees  Healthier beverage options • More emphasis on white meat such as chicken than beef after the BSE crisis. • Range of Quorn-based vegetarian meals • Fixing the basics ‘the nutritional content of the food’ – Reduce salt and sugar

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Assessement
• McDonald’s Healthier Meals Approach ………………………………….....“Successful”  Limited mixed success in the beginning, but after re-revising their menus and hiring...
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