Posted at 10.14.2018
MC DONALDS is one of the leading food string brands coming in contact with the lives of people every day. As a brand it were only available in California through the 1940s as a restaurant by two brothers Richard and Maurice mcdonald, mainly it began as a favorite teenager hangout place. To give food to the teens age people the brothers reduced the menu to only hamburgers, and then expanded their business to four restaurants by 1953. For further development after their success in 1955, the businessman Ray kroc bought the to franchise mc donalds as a globalized brand. from then on he renamed it to mc Donald firm in 1960, kroc concentrated mainly on family meals for children, spending huge amounts heavily on television set advertising. today, the mcdonald family has exceeded to about 30, 000 restaurants globally and provides over 50million people in more than 100 contries each day. between 1969 and 2005 mc Donald strategies were exhibited on the business enterprise pages of the brand new YORK TIMES displayin repeatedly the American success story in the united states important news paper. however, the brand also experienced many criticism in the news headlines for the labour, environmental issues and its broadening empire. the critics mainly voiced concerns and anxieties about the problems of the young ones labour, its effect on the community beliefs and the healthy standards of living of individuals.
Marketing strategy is vital for the success of a product in a marketplace as argued by Philip Kotler (1988). Nower days the completion in market has increased substantially. For ant company I global market to achieve success should give attention to the three basic core elements that are mission, vision and principles. These help and are accountable for the successful growth and stable profit earning of the company. For a worldwide businesses like McDonald's, building the three pillars needs more effort as diversity and culture be taken into consideration and value.
Mission: to serve around the world and to promote diversification of culture employed in harmonized manner with no discrimantion.
Vision: to become the customers top priority choice The McDonald's system leverages the initial talents, talents, and assets in our diversity around the globe
Value's: "Q. S. C. & V. " - Quality, Service, Sanitation, and Value.
McDonald's is one of the company that is nationally known for its diversity and got adequate of awards in USA only including
PUSH-Excel Corporate Partner Award,
Corporate Achievement and Image Prize,
Nullities Corporate Honor, Corporate Vision Honor,
Circle of Inclusion Award.
it is a global brand having 31, 000 restaurants in 120 countries which is famous both internationally and nationally. Us is the biggest market with 14, 000 restaurants.
the price reduction technique is use of market of sale. It expands and takes risks with cost-effective growth.
'The Ronald McDonald House' is one of the better effective charity home that is very famous.
the majority of revenues acquired are by providing franchisee of the barnd to various restaurants and by increasing junk food sales.
it is just a social responsible company that is more nervous about modern culture and environment.
it blends and adjusts based on the global culture of where it is located.
it chooses location that are local general public hub like air-port, vacationer placeas, theme parks etc.
the food is made hygienically, efficientally and in systematical manner.
it offers customer with the insights of balanced diet bt providing them with nutrious tips.
the adverts are only focused on children
training amount always keeps increasing because of more number of people working for small amount of time.
Price competition with the rivals leading to low income.
Insufficient progressive products.
the product range can be increased by use of new impressive ideas.
For other offers it can use the renewable energy and fulfill the environmental factor along with communal factor.
a few of its location can be improved to increase customer volumes and the earnings figures.
Slow and gradual expansion can only help to boost the profit margin
as all the prices are standard so fluctuation in monetary prices lead to loss.
as competition is increasing everyone is lowering cost and increasing income.
Medical issues regarding the junk food chain.
market stocks were reduced as investment property on adverts was increased.
the advertising marketing strategy only concentrate on kids which is highly objectionable.
Emergence of major junk food competitors burger king, Wendy's, Taco Bell, KFC.
"Marketing Blend The set of controllable marketing variables that the company blends to produce the response it would like in the target market. "
- Kotler et al
The four P's of market are very important and are responsible for the market development and brand popularity. the four P's of marketing blend can be described as below:
Product has to vary according to the taste such as food and beverage industry the quality and flavour of food things a lot. it ought to be matching to overall customer needs. All products have got there own life cycle from introduction to growth period and then to the decrease phase but it should make an effort to stay maximum in the growth area to increase capital.
Price should be worthy of the value purchasing the merchandise and the most crucial it ought to be economical and relating to customers need. Customers affordability shoul be kept in mind than only customer will contribute to increase your company sales.
Promotion is both 'above-the-line' and 'below-the-line'. 'Above' is advertisement done such as Television and press adverts. 'Below' is other offers such as special offers, value added and contests. The skill lies in using a quantity of ways to create a campaign.
Place identifies where in fact the product is sold and how it extends to there. That is called the resource string. mc donalds have around 30, 000 stores worldwide working all together incidentally of company possessed or franchise owned
The emergence of food chain has pressured industry members to continually add features and slice prices. Although McDonald's is a market leader in its food and drinks industry but it is now facing rough competition from the new entrants. It must continuously update the business strategies to compete with young newbies.
Following are the major McDonald's Opponents present globally
1. Burger Ruler: is second to McDonald's in competition of hamburger fast food chain. Although as compared to McDonald's they have more amount of franchised restaurants but revenues are low due to McDonald's big size.
2. Wendy's: is on third quantity of fast food chain competition around the world. It is greatly affected by tough economy; it includes quite small operation margins as compare to McDonald's.
3. YUM! Brands: includes KFC, Taco Bell, Pizza Hut, and Long John Silver's American Food Restaurants. China market is dominated by YUM! Brands. It acts as a biggest rival while entering into the china market. While McDonald'srun its business under one flag. YUM! Has splits its resources into variety of brands making high income.
In this section we will use certain tools to judge McDonald's current products. Proper sections are labeled as celebrities, cash cows, question grades or dogs. Matching to analysis initially when McDonald's as an enterprise product was a legend that has high development rate along with high market talk about, but now it offers turned into cash cows. Cash cows is the fact strategic business unit where has low growth rate and but it is enjoying high business share or product. McDonald's can be an established strategic unit that now needs less investment to garb its market talk about when compared with other emerging sections. In the BCG matrix Actors that depicts old traditional products are actually enjoying a high market share without having too much changes as prior. They have reached at ecological market position, whereas McDonald's continues with increasing more ground breaking food product that relishes a great market share as well as shows a high progress rate. But there are a hardly any products which may be placed in pet dogs. With the passage of time strategic business units change their position. They complete their life pattern. Something may begins as a question grades then it been successful and becomes actors. Then after a while they turned into cash cows and when they reach to their maturity they ends up as pet dogs.
PROBLEMS OF MC DONALDS
Now in this present time, People are more worried for there health they would like to be more fit and fine. Clearly, the explanation for this increased consciousness because all sorts of information is available and all studies and research have to link junk food with the growing fatness. Nw to encourage people more about there health various diet plans have been created. this is a problem as in the beginning it gained reputation for offering greasy harmful food.
HUMAN Tool PROBLEM
The employee turnover rate is high to mangae them all together is a very trial as you can find great variety of culture and tradition. So whole lot of attention, concentrate and consideration must be given devotion and harwork are marketed to be the key success elements. Some individuals working here might not exactly work in harmony and create problem but overall company can blend all employers into global company culture.
LACK OF NEW PRODUCT LINE
The third problem that mc donalds encounters is the lack of new product variety, mcdonalds from the last few years is merely trying on its old products the customers now are receiving uninterested in the same all food stuff, where as the other brands are developing different new innovative products, due to this reason also mc donalds gets less customer attraction.
INTRODUCTION OFINTEGRATED MARKETING COMMUNICATION
However, despite of the set up brand mc donalds management has to redefine its image globally and unlike its past accomplishments; The online marketing strategy of company is implementating the process of Integrated marketing Communication (IMC). The major area targeted is advertising adn promotions for promotion of product and increase sales shape. Integrated ADVERTISING CAMPAIGN is primary worried on campaign of low calorie food as now people are fitness freak and are much wary of fat and over weight. The business while hoping something new considered concentrating on children food thta provided ita somewhat bad. the company launched soon-to-be called' McKids Meals thta was new and different from traditional foods and today it focused on health insurance and nutition. Furthermore, the advantages of Integrated Marketing Communication implements a new horizon of client satisfaction and integration along with new advertising methods.
MANAGING HUMAN RESOURCE
McDonald'sprovides many opportunities equally to all or any employers. McDonald guarantees that there is no sex, age or gender discrimination while selection, training or promotion but all are cured enough on fair basis. all employees are motivated for hardwork on basis of there interior ability to work and exactly how they perform.
The working environment and cororate culture looked after by McDonald's is very legal i. e free from all discrimantion and harassments. team wok is the key to success for this company. all workers of the business are given privileges to use the company handbook in case if indeed they feel they aren't been treated pretty od they aren't content with there services.
McDonald's have to innovate with new products. It's advocated that McDonald's should innovate some diversified products so as to again capture the marketplace. now for mc donalds to go back to its expansion stage should count on the test of marketing of its new products. by this process it can help mcdonalds new product to achieve the legend in future market.
They should identify the near future target markets be careful and clear in initiating any ad campaign to allow them to affect the prospective customers minds firmly. They should focus on the old health conscious people instead of focusing on kids and young adults.
The immense development of McDonald's has made the grade of their R &D to decline. Now they have to develop a small quality control procedures in order to again increase their quality in the product so as to create a huge market talk about.