Mcdonalds and Starbucks

Topics: Brand, Coffee, Brand management Pages: 5 (1763 words) Published: January 29, 2012
McDonalds and Starbucks spend huge dollars developing their brand names and marketing initiatives domestically and internationally. How do you think McDonalds and Starbucks are able to establish their brands to fit local markets through architectural design of the stores, their e-commerce strategies and service to accommodate the local markets and culture?


McDonalds is a longtime leader in the fast food business. Since its opening in 1954 it has seen tremendous growth to about 30,000 plus restaurants and credit of serving about 43 million people in 100 different countries every day. The success and strategies of the company are celebrated often in the world media. The company had to focus on their core values and develop strategies that help rebrand itself in the market. Continuous attention on the customer needs and their values is main strategy for resurgence as top fast food retailer. They spend huge money on advertising to promote their brand. Their advertising budget for year 2011 was almost in the vicinity of one billion dollars. McDonalds has been working on improving and maintaining its brand value since it has seen its profits decline especially from 1997 to 2002. Brand value and marketing strategy:

Revitalization the brand is the important work for the leadership. “The focus is to improve the brand experience by increasing the power of the brand in the mind of the customer”. (Light.L, 2010). Brand revitalization is in direct relation with customer needs and demands. This led to emphasis on customer service. McDonald’s invested a great deal in market research studies which gave an idea of the constantly changing customer demands. This lead to the introduction of several options in the menu including salads, chicken items, fruits and also discontinuing the super-size portions. Introduction of drive thru is also a plus for the busy and in hurry customers who have no time to wait. Its launch of McCafe which serves premium coffee, cappuccino and various other drinks also is very well enticed by the customers. It also provides various menu options based on the cultural, social and religious values of the customers. One example is providing vegetarian menu items in India where beef is not consumed as part of a religious custom. With the basis of this customer inflow and positive financial outlook the company is also focusing on remodeling the stores to give soothing and better ambiance. This includes changing furniture, wall colors, new air circulation systems and offering Wi-Fi. They even reconfigured the drive thru for more efficiency. This is helping in building an image of social place rather than a fast-food restaurant. McDonald’s also take local customs and traditions into designing their stores so it is more appealing to the local customers. McDonalds invests heavily in e-commerce. This can be explained in different ways. Process enhancement and brand promotion. E-commerce is extensively used in terms of product and service communication, promoting culture and interacting with the customer. Brand promotion is done through online advertising and social media. Focus on online media has been significant for McDonalds as it provides direct interaction with the customers. With this continuous focus on customer needs McDonalds is reinventing itself constantly. This leads to promising brand value and image in customer which leads to increased profits. Starbucks:

Ever since Howard Shultz acquired Starbucks in 1984 it has become the biggest coffee chain in the world. The company has aimed at building coffeehouse culture in its stores. (“Company timeline”, 2009). In an interview Shultz said “Coffee is the center of what we do, but it’s the experience we create in our stores and in our company” explaining the quality of coffee and the customer they are serving. Today Starbucks has about 20,000 stores and is the world leader in coffee chain business.

It is a Starbucks promise of...
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