Plan de Marketing - McDonald's

1. Introduction

This report focuses on the analysis of McDonald’s in the global market, concentrating on UK features and facts. It includes the marketing mix, the marketing environment, an interpretation of its main strategies, showing that in the 21st century McDonald’s is not just a fast-food restaurant chain but a social event which promote the American trends worldwide.

2. The company

McDonald’s, the most well-known fast-food restaurant, has revolutionized the fast-food industry, becoming a global corporation: more than 30,000 local restaurants in over 100 countries, serving up to 54 millions customers per day.

It started back in 1940s when Dick and Mac McDonald decided to open a fast-food restaurant establishing the principles of today’s informal eating-out market, by introducing "Speedee Service System". In 1955, Ray Kroc opened another McDonald’s restaurant, creating a franchising company, McDonald’s System, Inc., now more that 70% of the outlets being earned and managed by independent persons.

Since 50 years ago, McDonald’s has succeeded in its worldwide expansion in operating other restaurant brands, like Piles Café or Pret a Manger; besides that, it has a branch of Redbox, a company focused on DVD rental. It used to earn a majority stake in Chipotte Mexican Grill, until October 2006, Donatos Pizza, until 2003 and Boston Market until August 2007. Overall, McDonald’s will still be a leader in foodservice retailing chains, having delivered 54 consecutive months of comparable sales increases, facing a n average sales and revenue growth of 3% to 5%, an average annual operating income growth of 6% to 7%, in this way exceeding the growth targets set in 2003.

3. Marketing mix

As a marketing-orientated company, McDonald’s achieved delivering superior value to their viewed customers, by meeting and exceeding their needs. They created added value by delivering both the food product and the high quality standardized service. Taking into account the customers’ needs, they developed a marketing mix consisting in the four important decision areas, product, price, promotion and place, which had a major influence in achieving the target’s customer value.

3.1 Product

Besides the accurate service, McDonald’s sells a wide range of fast-food based on five main ingredients: beef, chicken, potatoes, bread and milk. Their menus include hamburgers, cheeseburgers, chicken products, french fries, breakfast items, salads, wraps, desserts, fruits, milkshakes or soft drinks.

In response to public concern besides obesity, McDonald’s set in its menu healthy choices, as salads, fruits and natural juices. Giving the fact that “British consumers are increasingly interested in the quality, sourcing and ethics of the food and drink they buy", as UK chief executive Steve Easterbrook declared, McDonald’s coffee is now brewed by beans certified by Rainforest Alliance, and the milk used in its hot drinks or milkshakes is purely organic.

3.2 Price

Price is a key element of the marketing mix, representing the company’s revenues for the provided products and services. McDonald’s decides the price fully aware of the brand integrity and of the market environment. There are many factors that should be taken into account: setting the company’s objectives, determining the demand, estimating the costs, analyzing competitors’ prices, costs and offers and being aware of the product life cycle. McDonald’s most important objective is to gain market share by setting the right price for the right market and being perceived as a good quality product commercializing company. Hence the difference of prices worldwide. (See appendix 1)

3.3 Promotion

Willing to make its target audience aware of the existing products, McDonald’s used advertising, sales promotions, direct marketing, public relations, publicity and Internet and online promotion to become a global company. Being conscious of the globalization risks, the firm adapted to the needs of the communities they enter or they are already in, considering the cultural differences. Based on the slogan “brand globally, advertise locally”(Slander and Shani, 1991), McDonald’s analyses the customers’ preferences, attitudes towards the product, moral and religious patterns and environmental characteristics.

3.4 Place

With more than 30,000 outlets in more 100 countries, McDonald’s has realized the growth potential of international markets and focuses continuously on a prudent and strategic expansion. If in 1990, there were just 381 restaurants in the UK, today the number of outlets has exceeded 1,200; the top five branches are: Liverpool Street Station, Gatwick Airport, Meadow Hall Shopping Centre, Sheffield, 291 Oxford Street, London and 185-187 Oxford Street, London. (September 2007) (source: http://www.makeupyourownmind.co.uk/questions/how-do-you-operate/facts-and-figures/#question9). The company strives to respond sympathetically to local circumstances, developing a close analysis of the location and community; opening the right type of restaurant at the right place and the long term positioning are two of vital factors of continuing success. Due to franchising, the company is able to develop quickly, though managing to maintain high standards.

(source : http://www.bized.co.uk/compfact/mcdonalds/mc12.htm )

4. SWOT analysis

Through SWOT analysis, McDonald’s acknowledged its strategic position, by internal evaluation, identifying its strengths and weaknesses, and external opportunities and threats.

Strengths • Brand recognition

McDonald’s has come to occupy a central place in fast-food industry, beyond American borders. In this way they achieved their main goal, to dominate, as the company’s chairman said: “Our goal: to totally dominate the quick service restaurant industry worldwide I want McDonald’s to be more than a leader. I want McDonald’s to dominate.”(source: “The McDonalization of society”, George Ritzer). McDonald’s and its golden aches logo have achieved an exalted position and global recognition, operating in more than 100 countries and serving

around 728 millions of customers per year.

• Accurate products and services

McDonald’s ensures consistent food in a wide menu, the use of the best raw materials and high quality food. Along the quality food, they offer a highly efficient service, they assure their products are the same over the time and in all locations, they offer comfort and the pleasure of eating in a family-friend environment, good value for money, quick service and cleanliness. They focused on pleasing children with their products: Happy Meal with different toys, large indoor or outdoor playgrounds or “R-Gyms”-areas which provide interactive game-zones for children aged 4 to 12. Nevertheless they provide WI-FI connections, Plasma-TVs offering news and weather repots or music.

• Advertising

For half a century, McDonald’s developed an extensive adverting campaign, which had a major contribution in achieving a marketing leading position. In addition to frequent mass-media (television, radio, newspaper), they sponsored sports events like Little League, World Cup or Olympic Games. Besides their well known logo and their slogan “I’m lovin’ it.”, they also use the image of Ronald McDonald or the McDonaldland’s characters.