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Multinational Company

McDonalds’sDepartment of

Marketing

Erasmus student

Simone Santos

Portugal

Management of SMEs

This paper intends to examine the company McDonald's

Corporation from the point of view of marketing. It will focus on

four basic points: product, price, promotion and point of sale.

The brand has become synonymous MCDONALD’S Fast Food,

or as the Americans prefers, Fast Food. The largest network of

this type of power is one of the symbols of capitalism and the

American way of life in the world. Challenged. Hated. Target of

numerous protests. None of this seems to shake its dominance in

the world. The brand became so well known that the prestigious

magazine The Economist uses its main sandwich, the Big Mac, to

make comparisons of purchasing power between countries. The

MCDONALD'S can even disappear someday, but their culture

will be forever implanted worldwide.

The History

The story of the transformation of MCDONALD'S the largest

network of fast food in the world began in 1937 when brothers

Richard (Dick) and Maurice (Mac) McDonald decided to open a

modest restaurant in the system Drive-In in the city of Arcadia,

California, for sell hot dogs. Shortly after, in 1940, they moved to

the city of San Bernardino, also in California, where he opened a

restaurant with the name of MCDONALD'S BAR-BQ on the

famous Route 66 with approximately 20 Carhops, waiters on

roller-skates gave the order customer in the car. This has become

extremely popular and very profitable. The menu contained 25

items, mostly barbecue. In 1948, after noticing that most of the

money they earned from selling the burger, which at the time cost

$ 0.15, the brothers totally renewed the restaurant.

In 2001, McDonald's Corporation owned approximately 30,000

restaurants in several countries, a total of approximately 1.5

million employees and $ 40.6 billion global revenue.

Logo The golden arches are a symbol of

McDonald's, the global fast-food chain

restaurant. Originally, royal arches were

part of the design of the restaurant. They

were incorporated into the chain logo in

1962, which resembled a stylized restaurant, and current Golden

Arches logo, introduced in 1968, similar to an "M" for

"McDonald."

ScreenCap a McDonald commercial aired in 1979.

Slogan Graphic "You deserve a break today" campaign in 1982.

Slogan Graphic "Someone said McDonald" campaign in 1997.

Slogan graphic "We like to see you smile" campaign in 2000.

Slogan Graphic "I'm lovin 'it" campaign in 2003.

Since 2003, the main slogan used by McDonald's "I'm lovin 'it", although this has been used less in recent years.

A screencap of a McDonald's commercial that aired in 2005.

The logo commonly used in windows of restaurants with mansard roof McDonald.

The new logo with the slogan since 2012.

Mission

"Providing consumers of fast food a food of high quality in the same way that is offered around the world, reasonably priced and delivered consistently in discrete decor and friendly atmosphere."

Mc Donald applies the same competitive strategy in every country: be the first to market and establish its brand as quickly as possible through intense advertising.

Key market: "Providing consumers of fast food the same food that is offered around the world."

Contribution: "A high-quality food."

Distinction: "Deliver (around the world) consistently discrete decor and friendly atmosphere."

The product

The product is the McDonald's fast food or fast food. On his

menu included sandwiches, salads, ice cream, soft drinks,

biscuits, juices, chips and other items that vary from country to

country and also the time of year, or marketing plan. The greater

dynamism of the menu, adding new items with temporary or not,

was increased several years ago, as a strategy to gain new

customers and maintain loyalty.

In addition, the restaurant chain seeks to adapt the menu to

regional culture and habits. Some items are only available in

certain countries, such as the Cheddar McMelt in Brazil, the

extensive menus for breakfast in the U.S. and Hong Kong and the

ten types of menu in India, which vary by state or region and who

bring sandwiches picturesque vegetarian or lamb (the Maharaja

Mac) instead of beef. In Israel, where there are restaurants

kosher1 not sell cheeseburgers or other dairy products. In

Uruguay, sells up a hamburger with a poached egg on top,

McHuevo, and serves up beer in restaurants chain in Germany.

You can not enjoy the taste, nutritional content or the ambience of

a restaurant like fast food, but it is unquestionable that the

standard of hygiene, service and speed of service McDonald's

become a case study of universities and today are virtually

minimal requirements for any company wishing to operate in the

same segment. The rigorous hygienic covers from production to

their handling of ingredients in the store. In the factory of burgers,

meat goes through several batteries of microbiological tests right

out of the freezer to packing. Kitchens are always visible to

customers and can be visited.

McDonald quality products and services through monitors

customer surveys constants and devotes much effort to improve

methods of production of hamburgers in order to streamline

operations, reduce costs, accelerate service and deliver greater

value to customers.

McDonalds uses a very rigid system operations. There are

specific rules for everything from set the distance between the

wall and the refrigerator and the exact temperature for frying

potatoes. All these methods are detailed in special manuals.

All these characteristics seek to establish a high standard of

quality for meals, for the type of service proposed, and also

uniformity (be sure to receive a restaurant meal identical

regardless of network or occasion), so as to form a bond with

customer: fidelity.

The price

A meal like BigMac, fries and soda supplies about half of the

daily caloric needs of a person and provides good amount of protein

and carbohydrates and also fat. The current cost to consumers of about

$ 7.00, close to the price charged by restaurants like "dish made"

consisting of rice, beans, beef or chicken and salad. Although the

latter option seems more healthy nutritional point of view, we have to

verify that the restaurants that serve these dishes are more likely to

follow hygiene rules more "flexible" than targeted by the big fast-food

chains such as McDonald's. And under the tax issue, these restaurants

often do not issue invoices, which brings no contribution to the State.

In these respects, the price charged by McDonald's in your meals,

even if not classified as very low, is affordable and is a strong power

option with a high standard of hygiene and preparation and,

especially, convenience and fast service.

Basically, the pricing strategy (which varies from restaurant to

restaurant) provides three modes:

1. Individual prices for each menu item;

2. Unique prices for meals, usually composed of a sandwich, soda

and monitoring, which are smaller than the sum of individual

prices;

3. Temporary promotions for some items, with more aggressive

prices.

A curiosity is that the penetrating power and popularity of the

brand McDonald's became the price of its main product, the Big

Mac in economic index, often used to compare cost of living

between countries and regions.

POINT OF SALE

McDonald's reserves to itself the responsibility and function of

choosing the points where commercial installs its restaurants are

owned or franchised. These are company-owned and will be

leased to franchisees for a fee on revenues ranging from 5 to 15%.

Considered very high percentage, several franchisees in the

country (about one third) were motivated to enter into litigation

against the company, and also claiming that their businesses were

being hurt by excessive opening of the chain restaurants, resulting

in cut-throat competition.

Without addressing these merits, the company usually install

the busiest stores in a city, especially in shopping centers, which

may even contain more than one store. Internally, they are quite

bright and clean look. The arrangement of spaces is easily

discernible and also became standard for competing chains: there

is a large counter where orders are made and tables for

consumption. If the store is large, it may still contain hall for

events and park with toys for children. Condiments, napkins and

straws are usually available at strategic points between tables.

On the facade, the restaurants usually follow a pattern that

makes them easily identifiable. The restaurant has typical red roof

with two slopes (one degree lower base and greater degree on top)

and white ornaments arranged periodically, following

perpendicular to the roof of the base to the top. The walls are

beige hue and containing large windows opening onto the interior

of the shop. Landscaping complete the exterior finish and the end

is the logo, made by McDonald's word written in white letters and

the "M" initial in stylized format arches, golden in color. This

logo was considered the eighth most valuable in the world by

BusinessWeek magazine in 2002, estimated at $ 26.4 billion. It is

practically an icon and gave rise to the expression "golden arches"

or golden arches, also known as McDonald's.

The facade is not fixed, however, and accommodates changes to

adapt to local conditions or special construction. Or, to take

different architectural proposals and appealing to the public. In

China, the restaurants use Chinese characters "Mai Dang Lao",

for which approximate phonetically the word "McDonald's" (see

Figure 1). In Sedona, Arizona, USA, the arches of the logo

assume the color green, as the standards of local architecture. In

the Champs Elysees in Paris, France, the interior of the restaurant

adopts a refined atmosphere.

Marquee in Chinese characters (Taipei, Taiwan)

Marquee in Hebrew

Arcos 'green'

Inside the store in paris

Interior beachy style in the Basque coast, France

Mountain style interior with solid wood tables, stone walls and

wooden beams. Briancon, France, ski area.

In keeping with the philosophy of fast food, McDonald's also

installs points in ships and trains, as well as kiosks selling ice

cream, and in Brazil - perhaps the only country to display the

service - the home delivery (McEntrega). The strategy is simple:

"surround" the customer, always putting stores closer to him.

PROMOTION

The company uses various types of retail promotion known. It may be

noted:

• Campaigns with reduced price;

• Release of different sandwiches for a specified time, as

inspired by countries (McÍndia, McAustrália, McFrança);

• sale of sandwiches differentiated at certain times of day, such

as promoting McNight, offering the Super Big Mac, a Big Mac

with three burgers;

• loyalty promotion as "chump change now is" where is

distributed tokens for purchases above a certain value at the

drive-thru, and which can later be exchanged for products, and

promoting U.S. based Monopoly game, which gives prizes to

customers who can complete sequences of chips of the same

color;

• charitable campaigns such as the Sundays where the money is

dedicated to the sale of sandwiches BigMac for a charity;

• advertising on television channels open and paid, billboards,

magazines and other publications;

• merchandising with the logo placement on plates of street

names, litter boxes and other locations;

Internally, for employees, we have:

• Awards like "employee of the month" and for stores that stood

out in sales and achievement of goals;

• setting goals for sales, service time, preparation time, and the

corresponding award;

• Promotions to positions of higher hierarchical level and constant

training (the company has training centers known as the

Hamburger University, coaching from the attendants to the

owners of franchises);

• Encouragement and support for sports.

The Propaganda

The propaganda in the media tends to be more institutional,

calling for the brand and seasonal campaigns. The advertisements

next to points of sale already tend to show consumer prices,

leading to decision making.

The institutional campaigns tend to appeal to the young and for

children (according to their own fast food chains discovered,

children holds great power of choice in families). The last global

campaign network, with the theme "I love all that much"

(adaptation of the original slogan "I'm lovin 'it"), as the

soundtrack uses a hip-hop and motifs from everyday life with

young characters. It is a new initiative for the company, as the

advertisements do not recall the product or the stores directly, but

a spirit, an attitude. This differs from traditional pieces, which

always showed images of people in the stores and products sold.

The new campaign reminds philosophy propaganda of certain

toothpastes, like Smile (former Kolynos), and the old cigarette

commercials like the Holywood with his productions and

expensive that evoked the spirit of adventure and sport, like skiing

snow and waterskiing, surfing and skydiving.

Brilliant advertising McDonald's

McDonald launches propaganda that shows how the fast food

meal can unite people.

The advertising happens when a single mother decides to take her

boyfriend (Dave) to live in his house. But the propaganda shows

how difficult it is, and accept your child become friends with her

boyfriend.

Briton Leo Burnett created the ad, "McDonald all have in

common," to bring the McDonald's brand TVs in the UK and

shows how the restaurant burgers can unite people.At first, the

woman's son is indifferent to attempts to Dave to establish a

relationship with him, but then they go to McDonald and realize

that they actually have more in common.

Here's how this brilliant advertisement for McDonald's:

http://www.youtube.com/watch?

feature=player_embedded&v=rF2lqFegHLc

Curiosities

Did you know?

● One in 10 Americans has been employed by the company. Even

so, in 1986, entered the Oxford Dictionary the term McJob,

referring to work that required few skills, offering a good

payment.

● Celebrities such as Sharon Stone, Shania Twain, Jay Leno and

Pink MCDONALD'S worked in before becoming famous. Jeff

Bezos, founder of Amazon, has also had a stint plate from the

cafeteria.

● The MCDONALD'S was in 2012 for the eighth consecutive

year the official restaurant of the Olympic Games. The estimate of

the International Olympic Committee (IOC) is that athletes make

25% of their meals in the restaurant of the network during the

wind.

● On July 16, 1984, James Oliver Huberty, attacked a restaurant

in San Ysidro network in California with a gun, killing 21 people

and wounding 19, called the McDonald's massacre.

The mark on the world

There are over 33,500 restaurants MCDONALD'S scattered in

119 countries employing 1.7 million people, serving 68 million

customers a day and generate sales in excess of $ 27 billion (2011

data). The network sells about 190 burgers per second and a new

restaurant is opened every ten hours. The breakfast items

represent approximately 15% of the sales network.

Approximately 80% of the restaurants are operated by

independent franchisees that follow the concepts of work

established by the McDonald's System, which ensures the high

quality standard of products and services on the network. The

MCDONALD'S is the largest purchaser of beef, pork, potatoes

and apples from the United States.

Conclusion

It is evident from this study that the company `s McDonald

presented and still presents a huge growth in the market for fast

food.

The worldwide recognition of the brand McDonald's is due to a

marketing program well done and designed based on scientific

research, making for almost 50 years, the company firmasse as #

1 in the business of fast food.

The company, over the years managed to create a strong image

with its customers.

Displays concern: in customer service, quality products and a

physical space where people feel welcome and comfortable.

It is also important to note that the network has a strong

organization and planning, fundamental to the success of the

company, not forgetting to mention: standardization of its

franchises both with respect to physical space, marketing services

and products.

It should also emphasize the innovation of its products is constant

and its periodic releases on the market.

Their pricing structure is carefully studied by the franchisor that

develops policies, strategies and tactics very competitive price

which, due to the inelasticity of consumer demand, not exert great

influence on sales, even when there is an increase in prices.

The location of each restaurant is based on studies done in the

region and predetermined, even if it is in distant places, it has no

effect in terms of sales.

We conclude that McDonald's cares about the whole, that makes

it what it is. Care image, products, service consumers, cleanliness,

organization and marketing.

Bibliography

http://www.mcdonalds.pt/

http://pt.wikipedia.org/wiki/McDonald's

http://pt.wikipedia.org/wiki/McDonald's