promotion strategies of mcdonald

8/12/2019 promotion strategies of mcdonald

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INTRODUCTION OF MRETING STRTEGYMarketing strategy is very much important for developing any of the business.

Without it, the effort of the business to attract customer is random and very inefficient. The

main focus of your strategy must make sure that your product should fulfill the demands of

the consumers and as well as it maintains the long-term relationship with those consumers.

To achieve this, you will have to initiate flexible strategy that responds to change in

customer demand and perception. It may also give brand name to your product which will

help you to run your business in new markets smooth and efficient manner. First of all the

main purpose of your marketing strategy should be to identify the weather the target

customer's are satisfied with your product and services of your business.

Once you have created and implemented your strategy, try to identify the feed from

you customer and if any changes or improvement is required apply it for the maximum

satisfaction of customers

This helps you to identify that, where your strategy needs to be improved and how it

can be developed, so that it can be implemented for effective action. Before applying any

strategy in the business proper planning programs must be organized within the members of

the organization.


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Objectives

To investigate the management system of one big corporation. To describe the chosen company and the market it is operating in. To analyze principles of a selected company and existing strategies in it. To acquaint the strategies taken by this corporation in order to held its position. To study the promotion strategies of the said company. To find the market of the said company. To suggest some future strategic direction the company might want to take to keep up the

trends in the world today.


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What is marketing?"Marketing is the activity, set of institutions, and processes for creating,

communicating, delivering, and exchanging offerings that have value for customers,

clients, partners, and society at large."

From the above definition we are able to understand that a successful marketing

deals with satisfaction of both the parties. The definition basically explains that there is a

simple process i.e. "selling something to somebody" however, the definition conveys that

an exchange of goods and services without any barter system and having common

currencies, that exchange is called a sale. So while achieving the goals of the marketing by

selling, it is not compulsory that both the parties should agreed upon the transaction.

Satisfaction of both parties is a hided in the exchange relationship. Marketing must

understand the "product, ideas and services" along with the "Needs &Wants" of the

consumers. Marketing must not only understand this equation but also establish the policy

to maintain balance between both the sides, by implementing "marketing strategy".

DEFINITION OF MARKETING STRATEGY

Marketing Strategy is a set of specific ideas and actions that outline and guide decisions on


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the best or chosen way to create, distribute, promote, and price a product or service

(manage the marketing mix variables).

A marketing strategy is a process that can allow an organization to concentrate its limitedresources on the greatest opportunities to increase sales and achieve a sustainable

competitive advantage.

Company profile- McDonalds Corporation

The McDonald's Corporationis the world's largest chain of hamburger fast food

restaurants, serving around 68 million customers daily in 119 countries. Headquartered in

the United States, the company began in 1940 as a barbecue restaurant operated by Richard

and Maurice McDonald; in 1948 they reorganized their business as a hamburger stand

using production line principles. Businessman Ray Kroc joined the company as a franchise

agent in 1955. He subsequently purchased the chain from the McDonald brothers and

oversaw its worldwide growth.

A McDonald's restaurant is operated by either a franchisee, an affiliate, or the

corporation itself. The corporation's revenues come from the rent, royalties and fees paid

by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues

grew 27 percent over the three years ending in 2007 to $22.8 billion, and 9 percent growth

in operating income to $3.9 billion.

McDonald's primarily sells hamburgers, cheeseburgers, chicken, french

fries, breakfast items, soft drinks, milkshakes, and desserts. In response to changing


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consumer tastes, the company has expanded its menu to

include salads, fish, wraps, smoothies, and fruit.

McDonald's restaurants are found in 119 countries and territories around the world

and serve 68 million customers each day. McDonald's operates over 34,000 restaurants

worldwide, employing more than 1.7 million people.

HISTORY OF McDonalds

The business began in 1940, with a restaurant opened by brothers Richard and

Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino,

California. Their introduction of the "Speedee Service System" in 1948 furthered the

principles of the modern fast-food restaurant that the White Castle hamburger chain had

already put into practice more than two decades earlier. The original mascot of

McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name

was "Speedee". Speedee was eventually replaced with Ronald McDonald by 1967 when

the company first filed a U.S. trademark on a clown shaped man having puffed out

costume legs.

McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4,

1961, with the description "Drive-In Restaurant Services", which continues to be renewed

through the end of December 2009. In the same year, on September 13, 1961, the company

filed a logo trademark on an overlapping, double arched "M" symbol. The overlapping

double arched "M" symbol logo was temporarily disfavored by September 6, 1962, when a

trademark was filed for a single arch, shaped over many of the early McDonald's


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restaurants in the early years. Although the "Golden Arches" appeared in various forms,

the present form as a letter "M" did not appear until November 18, 1968, when the

company applied for a U.S. trademark. The present corporation dates its founding to the

opening of a franchised restaurant by Ray Kroc, in Des Plaines, Illinois, on April 15, 1955,

the ninth McDonald's restaurant overall. Kroc later purchased the McDonald brothers'

equity in the company and led its worldwide expansion, and the company became listed on

the public stock markets in 1965. Kroc was also noted for aggressive business practices,

compelling the McDonald brothers to leave the fast food industry. The McDonald brothers

and Kroc feuded over control of the business, as documented in both Kroc's autobiography

and in the McDonald brothers' autobiography. The San Bernardino store was demolished

in 1976 (or 1971, according to Juan Pollo) and the site was sold to the Juan

Pollo restaurant chain. It now serves as headquarters for the Juan Pollo chain, as well as a

McDonald's and Route 66 museum.[9]With the expansion of McDonald's into many

international markets, the company has become a symbol of globalization and the spread

of the American way of life. Its prominence has also made it a frequent topic of public

debates about obesity, corporate ethics and consumer responsibility.
http://en.wikipedia.org/wiki/McDonald's#cite_note-9http://en.wikipedia.org/wiki/McDonald's#cite_note-9http://en.wikipedia.org/wiki/McDonald's#cite_note-9http://en.wikipedia.org/wiki/McDonald's#cite_note-9


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McDonald s IndiaMcDonald's is the leading global foodservice retailer with more than 32,000 local

restaurants serving more than 58 million people in around 130 countries each day. 70

percent of our restaurants worldwide are owned and operated by independent, local

businessmen and businesswomen.

In India, the brand is managed by two business entities...

Connaught Plaza Restaurants Private Limited, led by Mr. Vikram Bakshi, JV Partner andManaging Director, North & East India

Hardcastle Restaurants Private Limited, led by Ms. Smita Jatia, Managing Director, South& West India

McDonald's philosophy of QSCV (Quality, Service, Cleanliness and Value) is the

guiding force behind its service to the customers in India. Following its philosophy of

being sensitive to local food and cultural preferences, India was the first country in the

McDonald's system where it served non-beef and non-pork products. More than 70

percent of the menu in India has been locally developed with complete segregation of

vegetarian and non-vegetarian products right from the food processing plants to the point

of serving the customers.

McDonald's commitment to its Indian customers is evident even in development of

special sauces that use local spices and chillies. The mayonnaise and all other sauces are

egg-less. McDonald's also pioneered the establishment of Cold Chain across Indiawhich

helps maintain freshness and nutrition in every product.

McDonald's regular scrumptious menu includes wide range of products like McAloo

Tikki, Filet-O-Fish, Spicy Range, Chicken McGrill, McVeggie, Veg Pizza


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McPuff, Chicken Mcnuggets, Fries, Wraps, an assortment of Sundaes, Soft Serve and

refreshing beverages such as Ice Tea & Cold Coffee with outstanding service in a vibrant

and lively ambience, for which McDonald's is known worldwide.

McDonald's had further reinforced the branded affordability mantra via the introduction

of the Happy Price Menuwhich starts at Rs 25 only.

Keeping pace with the customer evolving needs McDonald's also functions on

models that drive convenience and create unique differentiation like McDelivery, Drive

thru, Breakfast Menu, high ways and extended hours. (Currently, available in select cities)

At present, there are 300 McDonald's restaurants in India.

The strong foundation that Ray Kroc built... continues today with McDonald's vision

and commitment for its internal as well as external customers. Since then, it has evolved

into a value driven brand, and recognizes that affordability of its products is an attractive

proposition for its customers along with taste. McDonald's continues to strengthen it

business model and progress with customers evolving needs.


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Key Milestones1996 saw the opening of the first McDonald's restaurant in India and since then,

there have been numerous milestones for us. Here is a look at the last 17 years and all that

was special about them.

1996

First McDonald's restaurant opened on Oct. 13, at Basant Lok in New Delhi. It was also

the first McDonald's restaurant in the world to not serve beef and pork based products.

1997

First Drive -Thru restaurant at Noida (UP).

First disabled friendly store at Noida (UP).

1999

First Mall location restaurant at Ansal Plaza (New Delhi).

2000

First highway restaurant at Mathura (UP).

2001

First thematic restaurant at Connaught Place (New Delhi).

2002

The first restaurant in a food court at 3C's, Lajpat Nagar (New Delhi).

The first restaurant at the Delhi Metro Station at Inter State Bus Terminus.

The first fundraiser in association with ORBIS and Dr. Shroff's Charity Eye hospital

(Delhi).


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2003

The first Dessert Kiosk - Faridabad (Haryana).

2004

McDonald's Delivery Service (McDelivery) introduced in New Delhi Local menu

innovations like McAloo Tikki, McVeggie and Pizza McPuff exported to Middle

East.

2006

McDelivery on Bicycles flagged off at Chandni Chowk (Delhi) - another first initiative

by McDonald's India.

100th McDonald's Restaurant opens in India.

10th Year Anniversary.

2007

First McDonald's open in Eastern Region at Park Street, Kolkata.

First restaurant opened at Airport (Domestic Airport at New Delhi).

First 'Made For You' (MFY) restaurant opened at Greater Noida, Uttar Pradesh.

2008

First 24 hours McDonald's Restaurant opens at Old Delhi Railway Station.

Chicken McNuggets launched in India.

2010

The first reimaged (new look) restaurant opened at Ambiance mall, Vasant Kunj, New

Delhi.


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2012

McDonald's launches the global singing contest for its restaurant employees - Voice of

McDonald's.

Introduces Spice Festival from April - June - Launches Spicy variants (Limited time offer).

New Product Launch - McEgg.

2013

McDonald's Celebrates National Breakfast Day.


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MARKETING STRATEGIES OF MCDONALDS

BUSINESS STRATEGY

FRANCHISE MODLE - As per franchise model of McDonald Only 15% of the total

number of restaurants are owned by the Company. The remaining 85% is operated by

franchisees. The company follows all the framework of training and monitoring of its

franchises to ensure that they achieve good QUALITY SERVICE, CLEANLINESS AND

VALUE FOR THE MONEY offered by the company to its customers.

PRODUCT CONSISTENCY- By developing a sophisticated supplier networked operation

and distribution system, the company has been able to achieve consistent product taste and

quality across the nations of the world.

ACT LIKE RETAILER THINK LIKE A BRAND- McDonalds focuses not only on

delivering sales for the immediate present, but also protecting its long term brand

reputation.

STRATEGY AS PER INDIAN MARKET

RE-ENGINEERING THE MENU- McDonaldsthinks according to the customerstastes,value systems, lifestyle, language and perception. Globally McDonaldswas famous for its

hamburgers which are prepared from beef and pork burgers. But, most Indians religion

does not allow them to consume beef or pork. So in order to satisfy demand as per Indian

preference, McDonaldscame up with chicken, lamb and fish burgers to suite the Indian

diet.


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THE VEGITERIAN CUSTOMER-India has a huge population of vegetarians. To satisfy

this customersdemand, the company came up with a completely new menu of vegetarian

items like McVeggie burger and McAlooTikki. The separation of vegetarian and non-

vegetarian sections is maintained throughout the various stages.

SEGMENTATION, TARGETING AND POSITIONING

McDonalds uses demographic segmentation strategy with age as the parameter.

The main target segments are children, youth and the young urban family. If they take

children into consideration, children are more attracted towards toys and delicious meals

including todays youth prefer such places for their entertainment and the urban families

select McDonald's on various occasion like birthday party, treat to their children etc.

Kids are on the top most level in FMCG purchase related to food products. So to

attract childrens McDonalds has Happy Meal in which they gift one toy on each happy

meal, there are toys ranging from hot wheels to various Walt Disney characters. Example

of the latest range is the toys of the movie Madagascar.

For this, they have a tie-up with Walt Disney. At several outlets, it also provides

special facilities like PLAYING PLACE where children can play arcade games, air

hockey, etc.

This strategy is targeting in making McDonaldsa fun place where you can enjoy

both playing and eating. This also helps McDonaldsto attract the young urban families

who wanted to spend some quality time, while their children can enjoy every movement of

McDonalds. To target the teenagers and young youth, McDonalds has priced several

products aggressively, keeping in mind the price sensitivity of this target customer. In

addition, facilities like Wi-Fi are also provided to attract students to the outlets, example of

such outlet is of a Vile Parle situated in Mumbai.


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MCDONALDS MEIN HAI KUCH BAATprojects McDonaldsas a place for

the entire family to enjoy. When McDonaldsentered in India it was mainly targeting the

urban upper class people. But, today it had positioned itself as an affordable place to eat

without compromising on the quality of food, service and hygiene. The outlet atmosphere

and mild background music highlight the comfort that McDonalds promises in slogans

like YOU DESERVE A BREAK TODAY, FEED YOUR INNER CHILD. This

commitment of quality of food and service in a clean, hygienic and relaxing atmosphere

has ensured that McDonalds maintains a positive relationship with their customers.


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MCDONALDS MARKETING MIX (5PSSTRATEGY

After analyzing the market, finding the key factor, target segment and understanding the

market demand, every company needs to come up with an offers or such type of plan, that

speed up the growth of the company. For which McDonalds uses 5ps of marketing mix

which are as follows:

1. Product

2. Place

3. Price

4. Promotion

5. People


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PRODUCT:

Product includes that, how the company should design, manufacture the product so that it

enhance the customer experience?

Product is the physical product or services offered by the company to its customers.

McDonalds includes certain aspects of its product such as packaging, desirability, looks

etc. This consists of tangible and non- tangible aspects of the product and services.

McDonalds has purposely kept its product depth and product width limited. McDonalds

had first studied the behavior of the Indian customer and provided a totally different menu

as compared to its menu offered in International market. It removed pork, beef and mutton

burgers from the menu. India is the only country where McDonalds serve vegetarian menu.

Even the sauces and cheese used in India are 100% vegetarian. McDonalds continuously

innovates its products according to the changing preferences and tastes of its customers.

The recent example is the introduction of the Chicken Maharaja Mac and latest

introduction of chicken style is Chicken Mcnuggets.


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McDonalds brings best product of quality and of best features as per the preference and

demand of the target market.

PLACE:

The place mainly consists of distribution channels and outlets of the company. It is

considered as very important because the product must be available to the customer at the

right place, at the right time and in the right quantity. In U.S.A nearly 50% of outlets are

situated within the distance of 3 minutes.

There are certain degree of fun and happiness that McDonalds provides to its customers. It

provides value position based on the needs of the customer. McDonalds offers proper

hygienic atmosphere, good abidance and better services.

Now McDonalds have also started offering internet facilities at their outlets, along with

music system through radio, not the normal music but the music which is preferred by

young generation in order to attract them.

There are also games for children the one example is air hockey.

Children play games till the time there parents spend quality time in McDonalds.


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PRICE:

Pricing strategy is most important aspect of Marketing Mix. It includes price list, if

any discount facility available or payment facility available. It should also take into

consideration the possible reaction from its competitors regarding the pricing. Pricing is

very much necessary because it is this part, which decides revenue for the business unit.

All the other three are the expenses incurred in the business. The price needs to

take demand and supply equation into consideration by analyzing the pricing demand as

per Indian market.

McDonalds came up with a very grasping punch line Aap ke zamane mein ,baap

ke zamane ke daam. This pricing strategy was founded to attract middle class and lower

class people and the effect can clearly be seen in the consumer base that McDonalds has

now.

McDonalds has certain value pricing and bundling strategies such as happy meal,

combo meal, family meal, happy price menu etc to increase overall sales of the product.


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PEOPLE

McDonalds understands the importance of both its employees and its customers. It

understands the fact that a happy employee can serve well and result in a happy customer.

McDonald continuously does Internal Marketing because if the internal marketing is

effective it will automatically lead to in the success of external marketing.

Internal marketing includes hiring, training and motivating employees. In this way

they can easily serve customers and the result will be the smiling faces of the customers.The level of importance has to be placed in the following order (the more important people

are at the top):

1. Customers

2. Front line employees

3. Middle level managers

4. Front line managers

The punch line Im loving it is an attempt to show that the employees are loving their

work at McDonalds and will love to serve the customers.

.


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PROMOTION:

The promotional activities adopted by the McDonald helps to communicate

efficiently with the target customers. The diagram gives idea about the promotion strategy

of McDonalds. Application of above mentioned Communication Mix describes the cost

that is feasible as per the consumers. Some of the most famous marketing campaigns of

McDonalds are:

You deserve a break today, so get up and get away- To McDonalds

Aap ke zamane mein ,baap ke zamane ke daam.

Food, Folks, and Fun

Im loving it.

McDonald's corporate used advertising, personal selling, sales promotion, public

relations, and direct marketing and became worlds largest leading Burger Empire. These

five promotion tools are used by McDonalds to integrate marketing communication

program which allows McDonalds to access the communication channels clearly,

consistently and easily transfers messages and product to the target audiences.


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SETTING THE PROMOTION MIX

Advertising

An Advertisement is targeted to attract the masses it reaches to large number of

people at a time. Advertising is one of the most important tools for promotion which had

various ways of advertisement in that advertisement through billboards and media are

often used by any of the business enterprise. Consumers mostly perceive goods which are

advertised goods, as they assume it is more rightful.

Due to distinct features of advertisement McDonalds also hold the hand of

Advertising. There are three main objectives of advertising for McDonalds are to make

people aware of an item, feel positive about it and remember it. The right message has to

be communicated to the right people through the right media. McDonalds does its

promotion through television, hoardings and bus shelters.

They use print ads and the television programmes are also an important marketing

medium for promotion.

Personal Selling

Personal selling is most effective tool for building buyers preference, convenience

and actions. Personal interaction allows knowing for feedback and adjustments if required.

If the organization had a good Relationship with Buyers they are more attentive towardspersonal selling.

In personal selling McDonalds employees working in different outlets are the best

example of personal interaction, the employees are directly serving the customers so, and

the face to face communication is easily possible. In the McDonalds outlet there are such


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staff which are appointed for personal selling they are the one who perform the activities

regarding selling up of goods to customers.

Sales Promotion

Sales promotion activity consist of promoting the business unit through organizing

various contest, programmes, functions, distribution of free discounts coupons etc that

attracts attention of the customers, Also offers strong purchase incentives, dramatizes

offers, boosts sagging sales Stimulates quick response; Short-lived; Not effective at

building long-term brand preferences.

McDonalds organizes several sales promoting contest and programmes in different

retail markets and outlets in which they distributes free discounts coupons. The statue of

Mascot McDonalds is always there for any occasions that are also one of the logo of

McDonalds.

Public Relations

Highly credible; Very believable; Many forms: news stories, news features, events

and sponsorships, etc.; Reaches many prospects missed by means of other forms of

promotion; Dramatizes company or product; Often the most under used element in the

promotional mix; Relatively inexpensive (certainly not 'free' as many people think--there

are costs involved)

Public Relations are also an important part of the McDonald's marketing strategy.

The restaurant employees play a huge role in interacting with the public. On a day-to-day

basis the employees commit themselves to customers and the customers' feelings toward

the brand. McDonald's feels that before they communicate with their customers they need

to be aware of what their competitors are communicating, so they can create a beneficial

difference between themselves and the competitors.


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Direct Marketing

Many forms: Telephone marketing, direct mail, online marketing, etc.; Four

distinctive characteristics: Nonpublic, Immediate, Customized, Interactive; Well-suited to

highly-targeted marketing efforts.

Direct marketing is also one of the efficient tools for promotion. The McDonalds

uses tool in the home delivery services in which they directly serve the order to their home.

Also they have a websites which are more in preference for direct marketing in that they

usually mentioned all the new offers along with the contact number of your nearby outlets.


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ANSOFF PRODUCT MARKET GROWTH MATRIXThe Ansoff Product-Market Growth Matrix is a marketing tool created by Igor

Ansoff and first published in his article "Strategies for Diversification" in the Harvard

Business Review (1957). The matrix allows marketers to consider ways to grow the

business via new products, new markets there are four possible product/market

combinations.

This matrix helps companies decide what course of action should be taken given current

performance. The matrix consists of four strategies:

1. Market penetration strategy

2. Market development strategy

3. Product development strategy

4. Diversification

MARKET PENETRATION STARTEGY

Market penetration is one of the four growth strategies of the Product- Market

Growth Matrix defined by Ansoff. Market penetration occurs when a company

enters/penetrates a market with current products. The best way to achieve this is by gaining

competitors' customers.


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Other ways include attracting non-users of your product or convincing current

clients to use more of your product/service. Market penetration occurs when the product

and market already exists in market. McDonalds is one most popular brand in fast food in

entire world. In 1975, the first McDonalds opened at Hong Kong; many thought that this is

wrong move for McDonalds. Various reasons were laid for this claim. Although, the main

reasons lays on the fact that Americans and Hong Kong Chinese at that time have very

different perception about food. McDonalds, being an American food chain, view breads

full meal while Hong Kong Chinese view them as snacks. As time went by, McDonalds

slowly became the part of the Hong Kong landscape and way of life rather than just being

an outpost of American culture. Hong Kong Chinese soon accepted that the food

McDonalds serve are ordinary, thus they are for ordinary people like them.

Future more, believes that the introduction of McDonalds to the Hong Kong society

changed the direction of the Hong Kong cultural framework along with the rest of the

world, Hong Kong was also McDonalized.

MARKET DEVELPOMENT STARTEGY

Market development strategy targets non-buying customers in currently targeted

segments. It also targets new customers in new segments.

Marketing manager has to think about the following questions before implementing a

market development strategy: Is it profitable? Will it require the introduction of new or

modified products? Is the customer and channel well enough researched and understood?

The marketing manager uses these four groups to give more focus to the market

segment decision: existing customers, competitor customers, non- buying in current

segments, new segments. McDonalds is currently following above mentioned strategy, to

focus on market segments. For serving synonymously to the existing customers they are

coming up with different menus as per change in taste and preference of their customer


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e.g.: happy price menu, beverages including milk shakes and cold coffees etc. Also, by

keeping in mind their rivals they are introducing products to compete them e.g. to answer

the KFC they came up with chicken mcnuggets. They are adopting pricing policies for

non-buying customer and as well as new segments.

PRODUCT DEVELOPMENT STRATEGY

In business and engineering, new product development (NPD) is the term used to

describe the complete process of bringing a new product or service to market. There are

two parallel paths involved in the NPD process: one involves the idea generation, product

design, and detail engineering; the other involves market research and marketing analysis.

Companies typically see new product development as the first stage in generating

and commercializing new products within the overall strategic process of product life cycle

management used to maintain or grow their market share.

McDonald's is always within the fast-food industry, but frequently markets new

burgers. Frequently, when a firm creates new products, it can gain new customers for these

products. Hence, new product development can be a crucial business development strategy

for firms to stay competitive.

McDonalds are always enhancing their existing product along with it; they also try

to introduce new and new products so that they can easily survive in market.


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DIVERSIFICATION

Diversification is a form of growth marketing strategy for a company. It seeks to

increase profitability through greater sales volume obtained from new products and new

markets. Diversification can occur either at the business unit or at the corporate level. At

the business unit level, it is most likely to expand into a new segment of an industry in

which the business is already in.

At the corporate level, it is generally and its also very interesting entering a

promising business outside of the scope of the existing business unit.

McDonald's made its foray into the hospitality industry in 2001, opening two hotels

in Switzerland, at Zurich and Lully. The "Golden Arch Hotels" were positioned as four-

star facilities with the latest in-room technology and very original, modern interior design.

Reactions and reviews of guests following their stay there were mixed.

Most seemed to agree, that the hotel's four-star rating didn't seem to correspond

with McDonald's image. The Golden Arch in Zurich is McDonald's first hotel.


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IMPORTANCE OF PLC IN MCDONALDSThe requirements of customers change over time and thus the product offering has to be

changed accordingly. What is the trend today may be out of market within few weeks.

Thus continuous innovation is required.

To counter these changes McDonalds has continuously introduced new products and has

phased out the old ones which were at the decline stage of their PLC. The introduction is

timed such that the new product does not cannibalize (which eats same of it) the product

already in the maturity or growth stage. Thus the secret lies in getting profits with different

products in the different stages of the PLC.

A perfect example of revitalizing a product in decline phase -


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The French Fries have been an important part of the McDonalds menu worldwide. But

now it was in the stage of decline and was actually not generating proper return. In an

attempt to revitalize it, a new variant was introduced namely Shake Shake Fries. This is

being served with chatpata spice mix which has resulted in increase in the sales of French

Fries and has elevated it from to the decline stage.

This is used to delay the decline of a well established product which has the potential of

generating further revenue.


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CHANGE IN STRATEGY

Made for You

McDonalds organization recently underwent drastic strategy changes to serve

better to their customers. Under their old system, the company would make several

sandwiches at once, and hold the sandwiches in a warming bin until purchased by a

customer. Under this system, management had to accurately predict how much food had

to be put on hold. Accurate prediction had to be used because if there were not enough

food placed on hold, this would create the problem of increase waiting times for

customers, and too much food would cause waste of expired items. McDonalds

dramatically changed their strategy in order to stay competitive with other fast food

organizations.

In 1999, McDonalds spent $181 million to introduce their Made for You

system. Under this new system, standard food items are not held in a bin until they are

sold. In the Made for You system, modern technology greatly assists McDonalds

operations. When a customer places an order, the sandwich items are immediatelydisplayed on a computer monitor in the kitchen and a tone sounds to alert the kitchen

staff.

Upon a new order, an employee in the kitchen will toast the bun, and assemble the

sandwich accordingly.

Standard items simply list the name of the sandwich, while customized orders list

the sandwich name and the desired condiments. Once the sandwich is assembled, it is

presented to the food loading area, where a different staff person retrieves the sandwich

and completes the order by adding French fries, desserts, etc. The system works the same

for front counter orders as well as drive-thru orders.


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Unfortunately, the introduction of the Made for You system did not come easily.

McDonalds watched its customer satisfaction drop for the three consecutive years

beginning in 1999.

After further research, they realized that although the new system provided

fresher food, it was not as quick as the previous system. Instead of reverting back to the

old system, McDonalds continues to fine tune Made for You and add new options to

help the system work faster.

Revitalization Plan

In order to cope with the first ever quarterly loss that resulted from inefficient use

of the Made-for-you-system McDonalds has devised a new plan to increase profits.

Previously, the corporation emphasized adding more restaurants to increase sales, but the

new plan places emphasis on increasing sales at existing restaurants.

The new plan will reduce spending, to enable more cash to shareholders through

dividends and share repurchases. Specific goals of the revitalization plan are to:

o Attract new customerso Encourage existing customers to visit more ofteno Build brand loyaltyoo Create enduring profitable growth

The main goal is to increase sales by creating an exceptional customer experience.

McDonalds plan is to achieve this goal by focusing on its people, products, places,

prices, and promotions.

Menu

Along with changes in their process strategies, McDonalds has flirted with menu

changes as well. Last year, they offered a new taste menu, where they offered a new


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sandwich for one week. The purpose was to offer customers a variety of options to satisfy

peoplesdesire for variety. However, the new taste menu proved to be ineffective.

Some customers would fall in love with an item, but it would only last one week, and

they would be frustrated that they couldnt purchase their new beloved favorite sandwich.

More recent changes to the menu have proved effective. McDonald realized that many

of todays customers seek healthy food options, and the Corporation has offered items

accordingly. As mentioned above in Competition Bases, McDonalds now offers a

wider variety of nutritious items and provides information to help its customers as well as

employees make informed healthy choices.


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CONCLUSIONMarketing Strategies implied by McDonald's clearly gives the entire

comprehensive information that is necessary for the growth and development of a business

enterprise. Basically, the strategies that are implemented by McDonald's includes many

basic essentials features like market research, innovative ideas, customers views,

forecasting consumers demand, planning, organizing etc, these are the few basic essentials

elements that plays a vital role for the successful business and also in creating the brand

name of a product. Today, in this fast moving dynamic world the demand for goods and

services are increasing at an alarming rate due to which there is greater competency and

competitors ruling in the market. Therefore, most of the companies adopt different types

of marketing strategies in order to serve their customers in a more better and efficient

manner than their competitors so that, their business can easily survive in the market.

Even corporate companies like Reliance and Tata industries are implementing various

strategies from past many years. This shows that marketing strategies provides competitive

edge for every business unit.

McDonalds is considered to be the King of the fast food. To achieve thisgreatness McDonalds has tried hard for ages to prove itself in the competitive

environment of Fast food. The key factors in success of McDonalds in my view is

innovation, customization, good management and above all best Marketing strategies

adopted by McDonalds. McDonalds in India has a very bright future because of the

customersbank, customized approach from McDonalds towards its customers and

above all the strong brand Image.


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http://mcdonaldsnindia.blogspot.in/2012/09/mcdonalds-in-india-full-assignment.html

http://en.wikipedia.org/wiki/McDonald's#Facts_and_figures

http://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-

analysis.html

http://www.mcdonalds.at/presse/maps/McDCSR.pdf

http://www.mcdonaldsindia.net/mcdonalds-india.aspx

http://www.mcdonaldsindia.net/key-milestones.aspx

http://dc445.4shared.com/doc/nAYYRGF9/preview.html
http://mcdonaldsnindia.blogspot.in/2012/09/mcdonalds-in-india-full-assignment.htmlhttp://en.wikipedia.org/wiki/McDonald's#Facts_and_figureshttp://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.htmlhttp://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.htmlhttp://www.mcdonalds.at/presse/maps/McDCSR.pdfhttp://www.mcdonaldsindia.net/mcdonalds-india.aspxhttp://www.mcdonaldsindia.net/key-milestones.aspxhttp://dc445.4shared.com/doc/nAYYRGF9/preview.htmlhttp://dc445.4shared.com/doc/nAYYRGF9/preview.htmlhttp://www.mcdonaldsindia.net/key-milestones.aspxhttp://www.mcdonaldsindia.net/mcdonalds-india.aspxhttp://www.mcdonalds.at/presse/maps/McDCSR.pdfhttp://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.htmlhttp://www.strategicmanagementinsight.com/swot-analyses/mcdonalds-swot-analysis.htmlhttp://en.wikipedia.org/wiki/McDonald's#Facts_and_figureshttp://mcdonaldsnindia.blogspot.in/2012/09/mcdonalds-in-india-full-assignment.html

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