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Major marketing strategies
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Unit 3 D1, D2 by Dylan Orrick Report To: CEO From: Dylan Orrick CC: Fiona Lynch, Nicola Errington Date: November 27th 2017 Re: Evaluation of the effectiveness of the use of techniques in marketing products and recommendations for improvements for McDonalds Market Segmentation & Target Marketing McDonalds incorporate a range of marketing segmentation and target marketing to help understand and target customer audiences. McDonalds have a lot of experience doing this and a very good at it, they are able to target markets with products they create to attract new customers, they target markets like families, teenagers, people with low income, and people who need a quick meal. McDonalds spend a lot of their time to understanding their target markets …show more content…
McDonalds has added extension to previous restaurants that are very popular and added their McCafe, this helps to attract more customers, McCafe also offer more variety of products that can be selected at McDonalds, and for example a customer can pick smaller products like snacks from the McCafe like muffins. McDonalds is also known for situation their restaurants around already developed car parks, this save them building a car …show more content…
When McDonalds are creating anything new they do a large amount of research done on the idea before it is fully launched, this is done to ensure that the product or strategy will be as successful as possible with positive profit. McDonalds check at the end of the year all the trends that have been happening over that year, this helps and is very successful as they can monitor what has been working and what hasn’t, which helps them to understand how to improve the business based on information they have gathered. Market
McDonald’s was created by the McDonald’s brothers(hint the name), Maurice and Richard, who wanted, from the beginning, to start their own business. After four years of trying to run a movie theater, the brothers decided to start a drive-in restaurant. By 1940’s the brothers started earning $50,000 a year. Instead of being happy, the brothers grew bored. Together they came up with a new idea and remodeled their whole place into a fast food place. No more serving people in their cars, time to serve people fast and cheap. Revolutionizing the food industry
With the help of 68 million customers around the world, McDonald’s has become a top ten company in the world with billions of dollars coming in. The story of McDonald’s started within the minds of Richard and Maurice McDonald in San Bernardino, California on May 15, 1940. The two brothers came up with the idea of the fast food chain with the observation from their father who was an owner of his own restaurant called “The Airdome.” Later, the brothers were given the idea to add the thought of a corporation with the help of Ray Kroc, seller of the milkshake machine that has been used at McDonald’s. Ray Kroc turned a locally branch fast food restaurant into what it is today. Today, McDonald’s is a company that is highly respected because of how
McDonald’s Corporation (MDC) known for its famous golden arches is the number one largest chain of fast food restaurant in the world. With headquarters in the United States and restaurants in 120 countries serving around 86 million customers a day. About 80% of the restaurants are operated by a franchisees or affiliates. McDonald's revenues come from the expenses paid by the franchisees such as fees, royalties, rent, as well as sales in company-operated restaurants. According to Hoovers, McDonald's Corporation in 2013 made and annual revenue of $28,105.7 compared to $27.5 billion made in 2012. Most of the restaurants are freestanding units offering dine-in and drive-through service, but McDonald's also has many restaurants located in airports, retail areas, and other high-traffic locations. The company has nine major markets – Australia, Canada, China, France, Germany, Japan, Russia, the UK, and the US – that account for 75% of sales. Although McDonald is a leading brand, the top companies that give McDonald competition include: Doctor’s Associates Inc., YUM! Brands Inc., Starbucks Corporation, Darden Restaurant Inc., and Burger King
From just one restaurant in San Bernadino, California, run by two brothers, McDonald’s has grown to become the best known and most popular fast food restaurant chain in the world.
The main target customer for McDonald's includes parents with young children, young children, business customers, and teenagers. Perhaps the most obvious marketing for McDonald's is its' marketing towards children and the parents of young children. Ronald McDonald was first introduced in 1963 and marked the beginning of their focus on young children as a critical part of their ongoing business. Parents like to visit McDonald's because it is a treat for the kids, and the kids enjoy the cartoon like atmosphere. McDonald's also targets business customers as a part of their core business. Business customers may stop during the workday and can count on fast service, and consistently good food. Another major target of McDonald's marketing is to teens. Teens find the value menu especially appealing and McDonald's markets their restaurants as a cool place to meet with their friends and to work (The Times 100).
.... They have successfully entered foreign markets through their success and reputation, which made it easier for local communities to readily accept their standardized processes and consider it a food of their own. They had the resources to transform local companies to similar versions of themselves, and spreading the concept of McDonaldization further on a global scale. Not only have they changed the operational aspect of local firms, but they have also adapted in some of their own ways. For instance, when entering the Indian market, McDonalds offered more vegetarian options and excluded beef from their menu, which they do not do in the North American market. McDonalds kept their processes standardized and basic items the same, but they do understand the importance of adapting to the culture of their target market given the differences in tastes and preferences.
According to The Statistic Portal “McDonald’s has grown into a global giant with increasing restaurant numbers years-on-years – in 2014, McDonald’s had 36,258 restaurants worldwide.” In 2015, number of franchises in the United States are 12,836, Canada are 1,181, and international are 15,527; the company personally owned 6,714 restaurants. The numbers of people who visit McDonald’s has increasing from 108.52 million in 2009 to 113.82 million in 2013 (The Statistic Portal). McDonald’s serves 1% of the population every day. People can easily find a McDonald’s restaurant around them; it is everywhere: in the malls, air ports, and even in hospitals. People have been eating McDonald’s since the company opened in 1948. Nowadays, it is often being
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.
McDonald's current customer environment is people on the go or people who don't want to spend a lot while going out and need something quick and good to eat. It is best stated in McDonald's mission statement that they want to be the world's best quick service restaurant experience. As stated before, McDonald's has restaurants in 121 countries and has extensive global experience in customer service and satisfaction. McDonald's is excellent at researching an international area before building restaurant there. For example, in India McDonald's realized that the majority of the population was Hindu and vegetarian, they therefore, did not even bother to put beef or any other red meat on the menu.
McDonald’s McCafe, offers new products to the traditional menu of McDonalds. McCafe specializes in a variety of different types of coffee as well as smoothies, which attracts new customers that might not otherwise come to McDonalds for its burgers and fries, and gives McDonalds an edge over the competition by offering products that are different than the competition. McCafe is its own entity as well as it holds its own specific area in most McDonalds restaurants.
McDonald's is the world’s leading food service retailer with more than 30,000 local restaurants in 121 countries serving 45 million customers each day.
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.
Some of the benefits of the McDonalds brand are pretty obvious. The golden arches and the mascot Ronald McDonald have some the best recognition worldwide. This stems from the benefit of having global operations and the availability of culturally diverse foods that are provided based on the location of the restaurant [3]. McDonalds also utilizes installations in prime locations such as theme parks, airports, superstores and even in hospitals. The business is ranked number one in Fortune Magazine's 2008 list of most admired food service companies [4]. McDonalds is also associated with cheap prices, good tasting food and fast service. McDonalds also maintains a strong community oriented vibe with its Ronald McDonald Houses which provide charitable services to families with sick children requiring extended hospital stays (www.rmhc.org). McDonalds also sponso...
McDonald’s restaurant was founded by two brothers, Richard and Maurice (Dick and Mac) McDonald, in 1940. They initially opened the restaurant under the name McDonald’s Barbeque which was located in San Bernardino, California. The McDonald brothers had a vision of a drive-in restaurant that focused on quality food and good service. They served a simple menu consisting of 20-25, mainly barbeque, items. In 1948 after eight years of operations the McDonald 's brothers discovered that the majority of their revenue was coming from hamburgers. With this in mind, they decided to change the menu and set their focus mainly on hamburgers. They also changed the name of the restaurant to simply “McDonald’s” and adopted an assembly line approach in the production process. After continued
McDonalds uniform menu offerings can be mass produced; therefore helps to lower production costs. Additionally, the company bargaining power with its suppliers lowers its input costs and boost margins and even more importantly, McDonald 's offers a very large advertising budget which gives the company a significant competitive advantage over its competitors. Much of McDonald 's sales occur outside the United States and thus, with McDonald 's tapping extensively into global expansion therefore the company’s international operations will continue to strive and