The Marketing Strategy of Mcdonald's

Topics: Marketing, Fast food, Hamburger Pages: 12 (3223 words) Published: September 14, 2012
I. Introduction

The biggest fast food chain restaurant in the world is McDonald’s. This report will show the marketing strategies of McDonald’s, facing Burger King as one of its competitor. In this case, it also affects in McDonald’s success. There are some issues that make McDonald’s a good competitor achieving growth economic, advanced technologies and many more issues. McDonald’s also has been using two marketing strategies such as advertise and promotion . Besides that, McDonald’s would be able to know what its strengths and weaknesses. In addition, the unique yet memorable logo had been applied by McDonald’s so that can leave a deep impression to customers. In this report, some point will be exposed 4Ps that about strategies have been done by McDonald’s and SWOT analysis that about the way how McDonald’s competes its competitor and effectively gain more loyal customers.

Fig.1.Growth Economic of McDonald’s
(source from )

II. History and Background

A. McDonald’s

Richard and Maurice (the McDonald brothers) opened a small
drive-in bistro the first restaurant called McDonald’s that started in the year 1940, in San Bernardino, California. The very first menu that McDonald’s serves consists of 25 barbequed food. This restaurant ran ‘carhop’ service which meant waitresses sometimes using rollerblades, in order to serve food to people in their cars at drive-in restaurants. Even though McDonald’s just earned in $200,000 per year, the two brothers chose to close and renewed the McDonald’s restaurant by selling hamburgers, French fries, chicken, desserts, milkshakes and many more.

Based on the information of the McDonald’s history, the most popular food in McDonald’s restaurant are its hamburgers. Richard and Maurice decided to revolutionize their restaurant by using new system as known as “Speedee Service System” (refer to appendix 1) in the year 1948 which is only served food after the customer had ordered what they want. (Petrakas,K)

Richard and Maurice decided to franchise their McDonald’s restaurant in 1953. However, Neil fox bought the franchise for $1,000 and he was the first one to do that. Neil Fox ran four McDonald’s restaurants were disclosed because of franchising of it.

Ray Kroc who was chosen to become the first franchisee by Richard and
Maurice in San Bernardino has succeeded in convincing them to sell $2.7
million of the rights to him in 1961. In 1984, Ray Kroc was dead.

There are over 31,000 restaurants all over the world, located in 119 countries. McDonald’s serves 58 million customers every day and has more than 1.5 million employees. (Petrakas,K)

Fig.2.Country with McDonald’s store
(source from

The first McDonald’s restaurant was opened in Singapore in 1979 which is located at Liat Towers, Orchard Road. Today, more than 100 McDonald’s restaurants serve 1.2 million customers every week in Singapore. Due to the McDonald’s restaurant becoming famous and McDonald’s started its McDelivery service in the year 2005. (McDonald’s Singapore., 2008)

B. Burger King

In 1952, a carhop restaurant was opened in Daytona Beach, FL
by Keith Cramer who owned it. He travelled to California because his stepfather suggests him to see the newest invention in restaurant, McDonald’s.

He was impressed with the way how the speed and automation work. So they considered to make fast food really fast such as made multiple shakes which is called Insta-Broiler that can cook four hundred burgers an hour. Fast food burger was opened by Cramer that joint in Jacksonville that named Insta-Burger King, in 1953.

They were success as his burgers sold for 18 cents per piece. James McLamore and David R. Edgerton, Jr adored the concept and opened some...
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