Marketing Plans of mcdonalds - May 17th, 2011 McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger

fast food restaurants, serving more than 58 million customers daily.[3] In addition to its signature restaurant chain, McDonald¶s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006,[4] and owned the restaurant chain Boston Market until 2007.[5] 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% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.[6] McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit. A McDonalds Marketing Plan is a great idea if you want to out perform all other McDonalds restaurants. Many franchisers jump right into play without ever taking time to draw up a marketing plan. They think just because the company name is already known that they do not need to market it. This is absolutely wrong. When drawing a McDonalds Marketing Plan, you should figure out what is unique about the target market in your area that you could use to appeal to them. There are many different ways to go about writing a McDonalds Marketing Plan. There is tons of information about how to put the plan together. The most important thing to consider when drafting your McDonalds Marketing Plan is that the buyer has a number of McDonalds in the area he/she could probably go to. As a McDonalds owner, when considering different options for your McDonalds Marketing Plan, you need to figure out how to give the buyer the incentive to come to your location above all the others. There is a lot of beneficial information available you and other fellow franchisers that can give you creative ideas on how to draw up a unique marketing plan that can give you the edge on all other McDonalds in the area. All the vital information you might ever need to know about marketing plans can be found in this marketing plan workbook written by David Frey. You can learn how to determine what you can do to out perform the competition stores. McDonald's, touting its pervasive slogan, ''I'm loving it,'' isn't feeling the love from local Floridians. After advertising on kids' report cards ² good grades equal free food ² McDonald's received much disapproval from parents in Seminole County, Florida. Especially from one mother, who fumed, ''The ad offered kids a free Happy Meal for their good work. Shouldn't kids be taught to work for knowledge and pride, not crappy food and imported toys?''

+ Enlarge The McDonald's ad came wrapped around elementary students' report cards. Students, ranging

the company had to be responsive to the Indian sensitivities. not a free box of fries and nuggets. Especially when parents are involved. The ad came wrapped around elementary students' report cards. What we accomplished in Seminole County should put all marketers on notice: advertising has no place in our nation's schools. and acknowledge the outcry because "we believe the focus should be on the importance of a good education. McDonald's agreed to discontinue the ad. "One parent can make a difference. which involved teachers working at local McDonald's restaurants to raise funds for schools by selling burgers to their own students. The company was also protested for sponsoring McTeacher's Night in southern California. would receive a free Happy Meal for earning A's and B's. The CCFC and nearly two-thousand parents reigned victorious." A good education. reprint the envelopes at no cost to the school. Students. and now she believes she is entitled to a prize from McDonald's. ranging from kindergarten up to fifth grade. she contacted the Campaign for a Commercial-Free Childhood (CCFC). We are pleased that McDonald's is listening to parents all over the country who believe that report cards should not be commercialized. When parent Susan Pagan discovered the ad. California. To survive. after McDonald's and other companies provided 'sponsored educational materials' on subjects like nutrition to teachers to supplement or take the place of approved curriculum in the U. However. lamb and fish . language and perception. the yellow and red clown was banished from all report cards. value systems. put it. lifestyle.S. I'm outraged that McDonald's is trying to exploit my daughter's achievement. one of our nation's largest corporations was forced to back down." Challenges in Entering Indian Markets Regiocentricism: Re-engineering the menu McDonald¶s has continually adapted to the customer¶s tastes. "This is a good day for parents and children in Seminole County and [for] anyone who believes that corporations should not prey on children in schools. the CCFC created a campaign to have the advertisement removed." said Linn. Looks like Ronald McDonald received an F in Marketing. So McDonald¶s came up with chicken. would receive a free Happy Meal for earning A's and B's. According to an article by former fast-food service employee Pratap Chatterjee." But with another loss tucked under its belt. "My daughter worked so hard to get good grades this term. Susan Linn. Globally McDonald¶s was known for its hamburgers." However. "And now I'm the 'bad guy' because I had to explain that our family does not eat at fast-food chains. As the CCFC's director. this isn't McDonald's first attempt at directly marketing their products to young kids. McDonald's may finally realize that its marketing ploys aimed at children won't get by without a fight. after the uproar. beef and pork burgers. "And when that parent was joined by other parents and CCFC members.from kindergarten up to fifth grade. A smiling Ronald McDonald led the campaign. Dr." said Pagan. After all." At once. "In the 1990s there was a hue and cry by groups like UNPLUG! of Oakland. Most Indians are barred by religion not to consume beef or pork.

Price 4. The outlet ambience and mild background music highlight the comfort that McDonald¶s promises in slogans like³Yo u deserve a Break Today´ & ³Feed your inner child´. Today it positions itself as an affordable place to eat without compromising on the quality of food.People Product is the physical product or service offered to the consumer. McDonald¶s has priced several products aggressively. The recent example is the introduction of the Chicken Maharaja Mac. Pricing includes the list price. guarantee.Promotion 5. To cater to this customer segment. The 5 P¶s used by McDonalds are: 1. etc.burgers to suite the Indian palate. In addition. looks etc. Targeting and Positioning McDonald¶s uses demographic segmentation strategy with age as the parameter. This commitment of quality of food and service in a clean. each company needs to come up with an offer. The main target segments are children. Segmentation. This also helps McDonald¶s to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. service and hygiene. hygienic and relaxing atmosphere has ensured that McDonald¶s maintains a positive relationship with the customers. keeping in mind the price sensitivity of this target customer. At several outlets. McDonalds bring with it a globally reputed brand. ³Mc Donald¶s mein hai kuch baat´ projects McDonald¶s as a place for the whole family to enjoy. beef and mutton burgers from the menu. facilities like Wi-Fi are also provided to attract students to the outlets like the one at Vile Parle in Mumbai. Product includes certain aspects such as packaging. finding the target segment and positioning itself. Even the sauces and cheese used in India are 100% vegetarian. youth and the young urban family. It should also take into the consideration the probable reaction from the competitor to the .Place 3. The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages. the financing options available etc. This strategy is aimed at making McDonald¶s a fun place to eat. the discount functions available. As shown above. world class food quality andexcel lent customer specific product features. It dropped ham. kids reign supreme in FMCG purchase related to food products. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. This includes both the tangible and the nontangible aspects of the product and service. When McDonald¶s entered in India it was mainly perceived as targeting the urban upper class people. McDonalds has intentionally kept its product depth and product width limited. McDonalds studied the behaviour of the Indian customer and provided a totally different menu as compared to its International offering. India is the only country where McDonalds serve vegetarian menu. it also provides special facilities like µPlay Place¶ where children can play arcade games. To target the teenagers. the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The vegetarian customer ± India has a huge population of vegetarians. For this. air hockey.Product 2. McDonalds Marketing Mix (5 P¶s) After segmenting the market. So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar). they have a tie-up with Walt Disney.

Fun & Folks´ experience that customers pay a premium over the other competitors. taking away customers from McDonald¶s. Perhaps in the new environment. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. Pizza Hut²the firm encounters new challenges. Folks. This is the most important part of the marketing mix as this is the only part which generates revenue. This is where McDonald¶s has excelled due to its ability to successfully integrate the customer¶s perspective in its products and operations in a comprehensive manner. But the outlet understudy has other competitors eating away into its market share. the operational integration is evident from McDonald¶s emphasis on its suppliers as its customers as well as its treatment of its consumers as coproducers of services. McDonald¶s is the world¶s largest fast-food restaurant chain. McDonalds has certain value pricing and bundling strategies such as happy meal. family meal etc to increase overall sales volumes The various promotion channels being used by McDonald¶s to effectively communicate the product information are given above. The revamped menu in India is an example of McDonald¶s strategy of integrating the customer¶s perspective in its products.pricing strategy. Over one billion more customers were served in 2007 than in 2006. It is for this overall ³Food. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending. On the higher end. McDonald¶s came up with a very catchy punch line ³Aap ke zamane mein . fast. Competitors Analysis McDonald¶s has been a leading fast-foods outlet in Vile Parle. so get up and get away. The paradigms of service marketing demand a passionate understanding of customer expectations and perceptions.000 restaurants in over 100 countries.baap ke zamane ke daam´. a new critical success factor may be emerging: the need to create a rich. The ultimate aim of Service Marketing is not just to become a Service Leader but to create a Service Brand. The right message has to be communicated to the right audience through the right media. There are three main objectives of advertising for McDonald¶s are to make people aware of an item. satisfying experience for consumers. They use print ads and the television programmes are also an important marketing medium for promotion. and Fun´ ‡ ³I¶m loving it´ The McDonald¶s Experience Marketing in a services industry is becoming an increasingly complex challenge. Some of the most famous marketing campaigns of McDonald¶s are: ‡ ³You Deserve a break today. The price must take into consideration the appropriate demand-supply equation. Jumbo King competes using a back-to-basics approach of quickly serving up burgers for time-pressed consumers. Keeping in mind the demographics of the area. ‡ ³Food.combo meal. Dominos. the KFC has become potent competitor in the quick service field. .baap ke zamane ke daam´. and linking them to product design & delivery as well as operational planning. And. It has more than 30. At this time. The Service Delivery Process is the key to achieving this aim of Service Marketing. McDonald¶s has Wi-Fi enabled the outlet to cater to the student community. hoardings and bus shelters. In addition to its traditional rivals²KFC. All the other three are expenses incurred.To McDonald¶s´ ‡ ³Aap ke zamane mein . convenient service is no longer enough to distinguish the firm. feel positive about itand remember it. McDonald¶s does its promotion through television. This brings us to service and experience based competition which McDonald¶s can use for competitive advantage against Jumbo King.

In the U. This menu features premium selections. The business model enables McDonald¶s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers. In the beverage business. 2008. and the company is staying open later for those late-nighters who want a quick bite to eat. price and promotion´ (McDonald's. and the development of their employees starting with recruitment and training and leading all the up to leadership and management. McDonald¶s is hoping to increase efficiency in its drive-thru pick up window. and Africa markets. In Europe. and ongoing restaurant reinvestment. menu variety and beverage choice. McDonald¶s overall strategic plan is called Plan to Win. 25). they are making is easier for customers to enjoy a great McDonald¶s experience. McDonald¶s strategic plan continues to focus on breakfast. They want their image to be recognized globally. 2008. 27). chicken. beverages and convenience. McDonald¶s strategic plan is influencing their marketing efforts by building better brand transparency. McDonald¶s strategic plan is focused around convenience.S. McDonald¶s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. With strategic focus on menu variety and beverage choice. These are the core areas in the United States.S. 253). With McDonald¶s overall strategic plan and its geographical strategic plan. In the Asia-Pacific. branded affordability.´ (McDonald's. Their focus is not so much on being the biggest fast-food restaurant chain. 2007. and everyday affordable offerings. McDonald¶s incorporates several organizational strategies. restaurants over the next decade´ (Peter & Donnelly. A couple other organizational strategies are branded affordability.. Jr. while relying on our strengths in developing. They are enhancing the customer¶s experience. and revenue was a record high of $23 billion.Although net income was down by $1. Some of the organizational strategies consist of better restaurant operations. breakfast. With their convenience and daypart expansion initiative..8%. its franchisees and suppliers (collectively referred to as the System) has been key to McDonald¶s success over the years. core menu extensions and value. place. ³The unique business relationship among the company. McDonald¶s starting introducing new hot specialty coffee offerings on a market-bymarket basis. McDonald¶s also incorporates geographical strategic plans. McDonald¶s sales were up 6. They are introducing drive-thrus to the increasingly mobile . placing the customer first. convenience and daypart expansion. McDonald¶s uses a tiered menu approach. The company is also opening up McCafe¶s ³with the expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at existing U. the company should start to see more positive financial results. 26). They are in the process of remodeling and upgrading its franchises. McDonald¶s also has locally owned and operated restaurants which ³are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one´ (McDonald's.1 billion in 2007. rather it is more focused on being the best fast-food restaurant chain. One of the ways McDonald¶s can obtain a positive net income is to maximize efficiency in its restaurant operations while at the same time placing the customer first. McDonald¶s plans to ³continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience. 2008. They also ³complement these with new products and limited-time food promotions´ (McDonald's. ³Across their markets. products. testing and implementing initiatives surrounding our global business drivers of convenience. daypart expansion and menu variety´ (McDonald's. 25). classic menu. 25). McDonald¶s is hoping for increased sales and guest counts. Middle East. McDonald¶s ³strategic alignment behind this plan has created better McDonald¶s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences ± people.

In Germany. In addition to their commitment with children. They want their restaurants to be an expression of their brand. and Rice Sticks. 13). and Canada.S. less capital-intensive business model. McDonald¶s has already renovated about 10. 2008. everyday value meals. McDonald¶s also uses marketing campaigns. The company is reinvesting approximately $1. McDonald¶s is building their brand image ³with innovated marketing transporting ideas across borders and using i¶m lovin¶ it to deepen their connection with customers who love their food and the unique McDonald¶s experience´ (McDonald's. Charlie Bell. They featured nine Olympic and Paralympic athletes on their packaging. In 2007.9 billion into their restaurants primarily to reimage existing restaurants and build new ones. McDonald¶s is also moving towards a more heavily franchised. With McDonald¶s marketing campaign for the 2008 Olympics. fruit. 17). McDonalds offered the Beijing Burger.000 restaurants world wide. McDonald¶s is trying to create a better brand image. greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly´ (McDonald's. premium salads and sandwiches. this will give the customer a more pleasant and friendly place to dine out at. McDonald¶s has a reimaging program that includes adding about 100 McCafes. 2008. With McDonald¶s growing global brand image and its emphasis on the five factors of exceptional customer service. In Australia. The name that won was Backyard Burger. Other organizational and marketing strategies are ³creating stronger bonds of trust by being accessible and maintaining an open dialogue with customers and key stakeholders´ (McDonald's. while in the U. this will allow McDonald¶s to achieve less of an already high turnover ratio. Although in some countries. 15). With the recruitment and training initiatives for current employees or future prospects. This McDonald¶s did with great fanfare devoting billions of dollars in a global corporate re-branding intended to blunt McDonald¶s association with unhealthy kids. ³By serving a locally relevant balance of new products. this should help them increase sales and net income. Re-branding The head office decided it was time to stop the decline in global profits and the bleeding of customers to healthier options. The company is also delivering greater value to the customer with new menu selections. and charged its communications specialists to respond to the changing climate of opinion. they were an integral part of the games and this only enhanced McDonald¶s brand image in a positive way. such as China. or vegetables as part of their Happy Meal. 2008. the CEO of McDonald¶s whose ³plan . they create value for customers and satisfy their demand for choice and variety´ (McDonald's. In the 2008 Olympics held in Beijing. and optimizing efficiency in the drive-thru. McDonald¶s held a marketing campaign where the people could decide what name to give its new hamburger. Types of marketing mix that McDonald¶s use to achieve their marketing goals are longer operating hours. McDonald¶s used the Shrek movie to give children a choice between milk. classic menu favorites and everyday affordable offerings around the world. 27). this is not permissible due to governmental laws. With the initiative of remodeling and upgrading existing franchises. With marketing campaigns like these.populations in China and Russia. Carmel and Banana Sundae. They are also installing new kitchen operating systems so that they can continue to deliver high food quality.

McDonald¶s stores were to be given new interiors. ironically returning to the burgers original fans. so McDonald¶s also developed a two-pronged global marketing strategy. product. They decided to sidestep the child market by targeting teens rather than children.to win´ approach was a revival of the five P¶s of marketing price. people. Their first ad in the global youth campaign featured. global pop star Justin Timberlake singing its new ³I¶m Lovin¶ it´ strapline. however. fashion and entertainment . sport. a golden question mark now replaced the Golden Arches explained by the tagline ³McDonald¶s. But not as you know it´. place and promotion. This youth campaign focus unfolded with growing sponsorship of MTV show Advance Warning followed by ads employing hip yet dynamic teen icons like skater legend Tony Hawks to speak to its new youthful targets based around four core areas: music. revamped staff uniforms and packaging. Menu changes alone could not achieve the turn around. and new menu items. At an operational level. In their UK print and outdoor campaigns.

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