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Mcdonalds brief history
Identify the key elements in McDonald’s global marketing strategy
Efficient marketing strategy
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McDonald's is the world's leading foodservice retailer with more than 30,000 restaurants serving nearly 46 million people in more than 110 countries each day. In the UK, McDonald's and its franchisees employ 70,000 staff in 1235 restaurants. This is McDonald's 30th year of operating in the UK.'
http://www.mcdonalds.co.uk/?f=y [accessed 16th November]
Those infamous golden arches have come a long way since being established in 1940 by Dick and Mac McDonald. Ray Kroc, credited with the chain's global ambitions, bough the rights in 1955, he developed the brand and created the McDonalds Corporation.
Throughout this study I am going to evaluate the marketing strategies being pursued by McDonalds and identify the market dominance, which has lead to McDonald's being on of the most successful multi-nationals to date.
Effective marketing has enabled McDonalds to create a worldwide demand for fast food.
The aim of marketing is to make selling superfluous. The aim is to know and to understand the customer so well that the product or service fits him/her and sells itself!'
Peter Drucker, Cited in Marketing Concepts & Strategies p6
The underlying principle of marketing is that to be successful, a business needs to satisfy their customers so to increase the likelihood of repeat custom. To ensure this, the business needs to construct an appropriate marketing strategy to fulfil this criterion.
McDonald's has an exceptional understanding of these aspects within there marketplace, as McDonalds do not offer a product for every type of consumer they attempt to identify groups of customers, defined as a market segment', this is a band of people in the case of McDonald's these will be defined demographically for instance...
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...he years has been a success. The constant evolution of the marketing mix has enabled McDonalds to remain a dominant feature throughout the fast food industry. The use of celebrity endorsement is one key factor which has lead to McDonald's marketing strategy being so successful, this helps distinguish themselves from competitors such as Burger King and KFC and remain the market leader in the fast food retail industry.
Dibb, S., Simkin, L., Pride, W.M. & Ferrell, O.C., 2001, Marketing Concepts & Strategies, Houghton Mifflin, Boston, New York
Lines, D, Marcouse, I & Martin, B, 2003, A-Z of Business Studies, GreenGate Publishing Services
http://www.mcdonalds.co.uk/?f=y [accessed 16th November, 2004]
www.supersizeme.com [accessed 6th November, 2004]
www.supersizeme-thedebate.co.uk [accessed 6th November, 2004]
www.rmcc.org.my [accessed 5th December 2004
The first McDonald’s opened in 1948. The franchising operations soon became McDonald’s Corporation in 1955.
Our research indicated more viable strengths than weaknesses. Strengths such as brand recognition, steady growth in global markets, and strong leadership. McDonald's has become part of America's culture and now the same can be said for the global arena based on the demonstration of growth and continued dominance over competitors. Business Week Magazine even ranked McDonald's as "one of the ten most recognized brands in the world", a position that creates significant opportunities for the company. An important strength that continues to have the most dramatic impact on McDonalds is their top level management. Even though this is classified an as internal strength, McDonald's has capitalized on a management style that helps to infuse a strong culture. A dynamic aspect of the McDonald's culture is the willingness to innovate and adapt, thus making necessary changes when the need arises.
Everyone has heard of McDonald’s, but where did this familiar name come from? When people think of American food, it is not uncommon for two golden arches to appear in their minds. This story began with two brothers Dick and Mac McDonald who owned and ran a small restaurant in San Bernardino, California during the 1940s. In 1954 a man named Ray Kroc came across these two brothers while selling multi-mixers and was impressed with the business they were running. The menu was compact, listing options for only a few burgers, fries and beverages, but the restaurant was effective in its operation. Ray Kroc pitched the idea of spreading McDonald’s restaurants across the United States and in 1955 he founded the McDonald’s Corporation. By 1960 he bought the exclusive rights to the name. Kroc was able to expand substantially on this small business so that by 1958 McDonald’s sold its 100 millionth hamburger. (“McDonald’s.com”)
According to Royle (1999) McDonald’s is a very large multinational enterprise (MNE) and the largest food service operation in the world. Currently the company has 1.5 million workers with 23,500 stores in over 110 countries with the United Kingdom and Germany amongst the corporation’s six biggest markets, and over 12,000 restaurants in the United States. In 1974 the United Kingdom corporation was established and in 1971 the Germany corporation was established, currently the combined corporation has over 900 restaurants and close to 50,000 employees in each of these countries (Royle, 1999).
McDonalds Canada opened in 1967, thirteen years after McDonalds had taken the United States by storm. This was the first restaurant to be opened outside of the United States.
McDonald's Corporation is the largest fast-food operator in the World and was originally formed in 1955 after Ray Kroc pitched the idea of opening up several restaurants based on the original owned by Dick and Mac McDonald. McDonald's went public in 1965 and introduced its flagship product, the Big Mac, in 1968. Today, McDonald's operates more than 30,000 restaurants in over 100 countries and have one of the world's most widely known brand names. McDonald's sales hit $57 billion company-wide and over $25 billion in the United States in 2006 (S&P).
The McDonald's Corporation is the largest chain of fast food restaurants in the world. It is franchised in over 119 countries and serves an average of 68 million customers daily. The company started in 1940 as a barbecue restaurant operated by Richard and Maurice McDonald in the United States. They reorganized their business as a hamburger stand in 1948. In 1955, Businessman Ray Kroc joined the company as a franchise agent. He purchased the chain from the McDonald brothers and oversaw its global-wide growth (McDonald’s 2014).
MacDonald’s campaigns have branded its values through good food products in MacDonald’s marketing. An example is MacDonald’s have strategically produced their public relation in China to improve recognition of Mc China Wrap burger using unique brand names (Shah, 2008). The campaign has captured new clients and spread to new provinces by positioning itself as efficient compared to its competitors.
Have you ever wondered how the business empire of McDonalds was started? With over ninety nine billion served, it was started in 1940 in San Bernardino, California. It was started off as just a Bar-B-Q that served just twenty items. Its first mascot was named “Speedee” They eventually realized that by setting up their kitchen like an assembly line that they could be much more productive and get their food done faster, with every employee doing a specified job; the restaurants production rate became much higher. A milkshake machine vendor came into their small restaurant one day, his name was Ray Kroc.
McDonald’s strength’s include their market share size, their ability to advertise new products, renovations made to food chains and their community service through the Ronald McDonald’s House. Some of the weaknesses that McDonald’s brand has in the market is the perception of their food being cheap and greasy as well as their inability to produce products that appeal to middle and upper class consumers. One opportunity I think McDonald’s can expand upon is their McCafe brand. I believe the McCafe brand could be a completely separate segment than the McDonald’s brand, they could market it as a fast casual restaurant that serves higher quality food at a higher price.
...dvertising. They took a new approach towards advertising. Instead of advertising on network TV they focused on outdoor advertising. They made the single largest purchase in the history of advertising when it purchased 20,000 billboards to reach consumers on the road and within minutes of a purchase decision. McDonalds used the concept of market fragmentation, which is the identification of smaller and smaller market segments. They not only expanded their variety of burgers, but also test-marketed fish-and-chips, fried chicken, pizza, and carryout groceries. Bibliography Fundamentals of Marketing (10th Edition) by William J. Stenton, Michael. J. Etzel, Bruce. J. Walker. (Pages: 41-42, 48, 56, 104, 115, 116, 130, 169, 171, 243, 265, 299, 458) http://www.mcdonalds.com/corporate/index.html http://www.fortunecity.com/meltingpot/dalston/714/myribbon.htm#intro
McDonalds also uses diversification in its global marketing. McDonalds recognizes that different countries have different values, customs, and tastes. Therefore, McDonalds satisfies these diverse global tastes by diversifying the menu according to each country’s unique preferences. This added diversification tactic, allows McDonalds to stay competitive in a global market. Examples of McDonalds globally diversified menu would be that McDonalds offers an exclusive beefless menu to its customers who live in India. This is because eating beef in India is sacrilegious. To meet the tastes of customers in India, McDonalds created new offerings such as the “Pizza McPuff” and the “McVeggie.” McDonalds considers the cultural tastes in every country it opens its doors
In today’s market, McDonalds faces numerous challenges such as fierce competition, a more health conscious customer, and the continual need for improved customer satisfaction and menu. McDonalds needs to go through some changes in order to remain ahead in the fast-food industry.
Much like a smile, the “Golden Arches” can be understood in any language. The McDonalds brand is the most well-known, internationally embraced fast food empire. McDonalds operates over 31,000 franchises throughout the world, with the United States leading the way with a whopping 13,381outlets as of May 2009 [1]. McDonalds has the fast food market cornered, offering an increasing variety of food of beverages, marketed to people of all ages to eat at any time of the day. However, being a corporate giant has its issues. McDonalds has faced a lot of criticism for its high-fat, high-sugar, potentially addictive menu. While the corporation is not likely to outright admit responsible for its actions, McDonalds has seen some changes to address some of the issues. Despite the flaws in the public elements of the brand, McDonalds has established an almost recession-proof economic base [2].
Vignali, C. (2001). McDonald’s: “think global, act local”--the marketing mix. British Food Journal, 103(2), pp.97--111.