Case Study Of Mcdonald's And Starbucks

McDonald’s and Starbucks are in the business of selling an experience. The marketing sections/divisions for both companies have tapped into the human psychy and provided customers with a glimpse of things they didn’t even know they needed. When one walks into McDonald’s they are instantly transported back to a happier time when they were children eating happy meals after soccer practice, while Starbucks creates such a comfortable yet sophisticated ambiance customers leave with a sense of motivation. This is the magic of marketing. This is why, even if you don’t like McDonald’s, you are still secretly waiting for the 100 Billionth person to be served. Provide the customer with an experience and they woln’t even know why they are coming

This has become a stroke of marketing genius. Allowing local entrepreneurs to invest in the McDonald’s franchise has allowed McDonald’s to adjust their look and menus to fit the customer’s preference whether domestic or abroad. Panos Mourdoukoutas (2012) of Forbes magazine defined the McDonalds’ marketing strategy by franchising as “adaptation and innovation, coming up with fresh products and services to address the needs of a diverse consumer market—as shaped by demographic, economic and local factors around the world” In addition, franchising allowed McDonald’s to exploit the talents of franchisees. For example, some of the most popular sandwiches (including the Big Mac, Filet-o-Fish, and Egg McMuffin) were invented by McDonald’s franchisees. (Kreutzer, M. 2012) One misstep committed by McDonald’s as part of franchising was expanding globally to quickly without a specific plan. “McDonald’s took their US business model and tried to export it. It didn’t work because of brand recognition, different cost structures, cultural differences and laws.” (Mathia,

(Our Heritage) Today Starbucks has over 21,000 stores througout 65 countries, and is the lead roaster and retailer of specialty coffee in the world. (Our Heritage) Starbucks provides an upscale environment backed by quality service. They perfect the sophisticated ambiance that is so prevalent in large socialite societies. They make the average famer in Iowa feel like he or she just stepped into a coffee shop in New York city. This experience is what drives customers back again and again. Starbucks was initially reluctant to dive into the world of franchising but gave in due to the continual change in the marketplace as discussed previously. (Janowicz, E. 2013) Starbucks owner Howard Shultz developed an idea of a “third place,” one in which he believes that consumers occupy three places, work, home and the third place. (James, J. 2013) Starbucks has been activily strive to be the third place for consumers all over the world through creating a pleasant experience and mass expansion. Starbucks leads the world in specialty coffee drinks for a reason, mass expansion. It is known that in large cities such as New York and Chicago, there are starbucks stores across the street from each other. This form of mass expansion led to large profit gain, but sometimes when moving to fast a company can lose sight of their objective. Despite the pleasant surroundings, great quality, and delicious