University Of Educati on

BBA-4 Evening
Marketi ng
McDonald’s: On a customer focused mission

Muhammad Talha (340)

Prof. Khadija Syed

02-17-2016

McDonald’s
A 52 years old man, Ray Kroc who was a salesman of milkshake mixing machines made an aim
to change the way American eats. He get inspired by the McDonald brother’s fast food concept.
He bought a chain of seven restaurants owned by McDonald brothers for $2.7 million. He made
better quality, service, cleanliness and value in McDonald’s customer focus mission statement
which made McDonald’s fast food concept perfect at affordable prices.

McDonald’s very soon became the world largest fast food restaurant. By more than 32,000
restaurant serving 60 million customers each day its worldwide sale more than $79 billion. Its
symbol became one of the world’s most familiar symbol. In 90’s McDonald’s found competitors
which were offering fresher and healthier food and people also starts looking for healthier
food. McDonald’s introduced pizza, toasted deli sandwiches and a heavily advertised new
burger but everything new idea get flopped. Their fall continues whereas they continued
opening new restaurants estimated 2000 per year but they failed to hire good staff. Soon
animal rights activists, nutritionist and environmentalists targeted it. McDonald’s was still the
world’s most visited fast food chain. In 1997 and 2003 its market shares fell by more than 3%. In
2002 for the first time company posted its loss. Its CEO Jim Skinner accepted that McDonald’s
has distracted from high quality food at the speed and its convenience which were the most
important things.

McDonald’s made a new plan in 2003, “Plan to win”. They change their mission to “being our
customer’s favorite place and way to eat” which was first “being the world’s best quick-service
restaurant”. It takes them where they wanted to be. They plan forced its employees to focus on
quality and services. Under this plan their goal was to get better not just bigger. Instead of
opening new restaurants, McDonald’s spent money on improving the food, atmosphere and
service. They redecorated their restaurants with more modern interiors. They gave customers
facilities of wireless internets and TVs showing cable news. They also made playing areas for
kids in the restaurants. McDonald’s now remain open for 24 hours. They introduce some new
meals for breakfast. They reworked on their menu which include healthier food like chicken
McNuggets, Milk shakes, premium salad and angus burger. Because of premium salad they
became world’s largest salad seller. McDonald’s changed their slogan to “I’m loving’ it”.

After introducing Plan to Win McDonald’s sales increased by 50%. Even in 2006 when American
stock market known as NASDAQ lost one third of its value, McDonald’s stock still gained 6
percent and its shares rose. In 2010 McDonald’s defeat its rivals by a great margin. Even though
in hard times McDonald’s attain a huge 15.5% three year compound annual return to investors.
McDonald’s achieved their mission and rediscovered their dedication to customers and did a
remarkable turnaround. Thus, McDonald’s now appears right mission for the time. Whenever
you think about McDonald’s, its value comes to your mind. A college student can buy a
sandwich for a buck or a working mother can buy a breakfast lattes one dollar cheaper than
Starbucks. This is like company and costumers singing the McDonald’s famous jingle “I’m loving
it”.