A Case Study on Mc Donald’s: Marketing Strategy
Company Background
Mc Donald is one of US based biggest and largest fast food chain restaurants across the globe with market presence in 119 countries and 35000 outlets approx.
Mc Donald mainly sells different varieties of burgers, cheeseburgers, chicken, French fries, breakfast items, soft drinks, milkshakes, and desserts etc.
Analysis on McDonald Entry Operations and Strategies
As McDonald has completed 18 years by now in India since from 1996 and McDonald has registered tremendous growth in these years.
What actually attracted McDonald to do business in India even though Indian market doesn’t really suited?
India is having 10th largest economy in the world as if now and third largest by purchasing power parity.
Due to fiscal
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SWOT Analysis:
Brand Image. Market segment mainly focused on kids
World Wide Presence. Image of unhealthy food and obesity.
Strategic locations. Employee turnover rate is too high.
Overseas market
Healthy food i.e. low calorie and high fiber. Competition from rivals i.e. KFC or Burger king. Cost control by reducing food wastage. Threat from local food shops.
New Product with different variety. More vulnerable to economic slowdown due to company’s rapid growth. Image of unhealthy food product i.e. Obesity. Changing demographics.
Micro environmental Issues (Porter’s Five Forces)
Porters Generic Strategy Analysis:
So from above analysis we can say Indian market is moderately attractive.
Challenges
“Our purpose goes beyond what we sell. We’re using our reach to be a positive force. For our customers. Our people. Our communities. Our world.” This is what Mc Donalds has in place for their mission statement, or as they call it their “ambition”. Although on the surface it seems genuine and wholehearted, one must look beyond the words being stated and towards the actions that follow. According to Eric Schlosser, the author of Fast Food Nation, Mc Donalds does not follow said mission statement. He argues how there is a danger with fast food, yet many people are blinded by the golden arches and unaware of its harmful effects. I for one agree with Eric Schlosser, based on the findings I discovered regarding their food, employees,
McDonalds was founded in 1943, and 1967 British Colombia was its first international expansion, advertising to middle and upper class. McDonalds decided to expand internationally, due to the enormous success in America. There was heavy research involved in the expansion. Through globalization and internationalization, McDonalds were able to develop marketing strategies according to cultural needs, to serve specific target markets. McDonalds enter India’s foreign market and 1996 and is a tough foreign market to enter, but with McDonald’s success they were able to earn high revenue in India. The success strategy is researching and the development of food. McDonalds thoroughly analyzed the preferred taste, especially to not offend locals. Their key to success is to “think global, act local.”
The menu however is different across nations. There are a variety of choices depending on the location. For example, in France, one of the highest selling items after Big Mac is a mustard topped burger called Le Royal Deluxe. In India, Mc Donald’s do not serve beef at all, instead it offers vegetarian dishes. In some Asian locations, Mc Donalds serves fried shrimp in Big Mac roll. In Brazil, it offers baked banana pies for desert. It had taken around 33 years for Mc Donald’s to open its first 10,000 restaurants. In April 1988, the 10000th unit was opened. However, the 20000 mark was reached in only eight more years. However, everywhere across the world, Mc Donalds has not received a warm welcome. Many European nations feel it is an insult to the national cuisines that they cherish. In 1999, Jose Bove was declared a national hero when he along with other activists destroyed Mc Donalds under construction. This was to protest “globalization and bad food”. Although there were protests, Mc Donalds is seen as a symbol of peaceful globalization. After discussion of 14 years with Kremlin, the first Mc Donalds restaurant was opened in Moscow in 1990. This move has supposedly helped thaw Cold
It entered in 1996 in India. This company is the world’s largest chain hamburgers fast food restaurants. It started in 1940 with two brothers Dick and Mac Mc Donald and was opened firstly in San Bernardino, California by Richard and Maurice Mc Donald. The headquarters are in US. It is serving 111 countries and to serving 69 million people. It is the symbol of globalization and spreading the American culture. The restaurant can be opened by franchisee, an affiliate or corporation. Its located in different locations like that of Mumbai, Delhi, Pune, Ahmedabad, Jaipur, Ludhiana and so on.
According to Vikram Bakshi, managing director and joint venture partner of McDonald 's India (North & East), the company invested about Rs 400 crore even before its
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.
McDonald’s corporation is famous for its burgers and fries. It operates more than 35,000 restaurants over 100 countries, such as in Europe, Africa, and Asia. Specifically, they have around 36,000 stores in the U.S. and about 2,000 stores in China. One of its management strategies is to sell both locally and globally. This tactic helps them have $ 27,441.3 million revenue in 2014. To understand how Mc Donald’s succeeds, here is the marketing mix of McDonald’s focusing on the internet marketing in China and USA.
The mission statements of Mc Donald’s is to be the world’s best fastest service restaurant . Being the best means implement the outstanding service, quality, cleanliness and value, so that they can make every customer in every restaurant satisfied with their povided service.
McDonalds is one of the biggest fast food companies in the market share today. It has been running in over 119 countries, as well as they have acquired over 31,000 restaurants in the world now. McDonald’s brand mission is to be customers’ favourite place and way to eat, they are aligned around a global strategy called the ‘Plan to Win’, they also committed to continuously improving their operations and enhancing their customers’ experience. As we all know that McDonald’s had successfully achieved their goal through out the years. (aboutmcdonald’s, 2012) Apart from this, as McDonald’s is a worldwide company, they also had the social responsibility to return the community; therefore, the ‘Ronald McDonald House Charities’ was
Increase Outlets: In terms of total sales Mc Donald’s is the world’s largest F&B outlet. Mc Donald’s is also the second largest outlet operator with more than 33,000 restaurants in 118 countries serving more than 67 million customers each day.
McDonald’s Corporation is the world’s largest chain of hamburger fast food restaurants. There are over 31,000 McDonald’s locations worldwide primarily selling hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, and desserts.
line with the existent nature of McDonald's premises and business model. Thus, it is recommendable to
Now that other companies in the food industry offer healthier food choices and all day breakfast, McDonalds can begin to offer healthier foods and breakfast all day to accommodate the customer. They have begun to do this and an increase in revenue has been seen. McDonalds can venture out into new markets as they only serve 1% of the worlds population. They can go into new markets in China and India as they are the most populated countries in
McDonald’s has been a staple in the restaurant business for as long as most of us can remember. It has achieve around the globe, but not without overcoming a fair amount of challenges in its pursuit of the title “King of Fast Food”.
Mc Donald is one of the largest food providers in present word. More than 58 million populations consume Mc Donald every day. The menu varies from hamburgers, burgers, fries, cheese burgers, salads and cold drinks. Mc Donald has a powerful branding as Coca Cola and General Motors.