CasestudyMcDonalds.ppt

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McDonalds

Case Study



Overview of E-Business Marketing

• McDonald’s is a large corporation in thefast food industry.

• They have been around since 1955 whenRay Kroc started the chain of McDonalds.They have been growing ever since.

• The majority of the restaurants are ownedthrough franchises.



• They employ 447,000 people.

• They have over 3,200 restaurants in over 119 countries.

• The majority of the McDonald’s franchises are owned by

individual franchises. McDonalds is the largest fast foodindustry in the world.

• Their primary competitors are other fast food chainssuch as Burger King and Wendy’s. The competition canget pretty intense to build customer loyalty to their food.

• The McDonalds Brand is one of the most well knownBrands in the world.



Marketing challenges faced

• Strengths:

• Brand Awareness

• Broad geographic locations

• McDonalds standard and conformedchanges in large areas efficiently





• Opportunities:

• Newer products

• More franchises - less risk

• High Growth in China and Russia



• Threats:

• Competition - global, national, regional,

and local. Commodity• Growing health conscious population

• Food safety – bacteria, e. coli, 41 -150



E-Business Marketing Goal orStrategy

• McDonald’s real goal as a corporation is to makemoney for the stockholders. Their stated goal isLong term sustainable growth for all

stakeholders.• McDonalds has realized that they are reaching a

big maturation stage in the business cycle,based on its profits slowing down more and

more every year. It is going to be time toreinvent or re-image this corporation to try tostart the business cycle over again.





Strategies….

• Goal changing from getting bigger, togetting better.

• Advertise on the internet more. Get morepeople to visit their website.

• Secondary advertising

• Of course build brand awareness and loyalcustomers



Business Model

• The business model seems to be abranding model.

• They are trying to get out there andmaking sure every last person knows whatMcDonalds is

• McDonalds spends more money onmarketing than any of its fast foodcompetitors.



The Value Bubble



• They utilize the following items:

• Attract, engage, retain, learn, and a little

relate



Attracting

• Secondary advertising – customer videosand employee videos – Youtube

• Metatags

• Advertising on products – happy meals,

monopoly





Engaging

• Macromedia Flash – used extensively

• Games for the kids

• Online calculators for nutrition information

• They use a map locator to show you howto get to McDonalds (inaccurate map – no

road names)



Retaining

• The site uses a common color theme ofred, yellow and black, with a logo on the

top left• There’s a news link that shows the news

that goes on, but is only updated once

every two months• Overall the site is easy to navigate



Learning

• The website uses clickstream technologyon the server side.

• They collect information about what pagesyou visit and how long, along with whereyou are approximately from

• They also collect information about certainprograms that are installed on thecomputer



Relating

• Everyone sees the same page

• They are collecting data, and possibly

using it to make the site efficient• They also use telephone, e-mail, and

regular mail as forms of relating



Review

• Overall, McDonalds is trying to do whatthey do best: Marketing

• They are trying to control the secondaryadvertising, and utilize it for somethingthat’s profitable for the stockholders

• They are building brand awarenessthrough this marketing



Customerization

• McDonalds can fit into some aspects ofthe customerization model.

• The one downfall that they will have astruggle doing is “premium priceacceptance”…too much competition.



Questions? Examples…

• What is McDonald’s biggest strength?

• What is the ultimate goal for

corporations like McDonalds?• What is McDonald’s biggest weakness?

Documents

CasestudyMcDonalds.ppt