Marketing Plans of mcdonalds - May 17th, 2011McDonald's Corporation (NYSE: MCD) is the world's largest chain of hamburger fast food restaurants, serving more than 58 million customers daily.[3] In addition to its signature restaurant chain, McDonald’s Corporation held a minority interest in Pret A Manger until 2008, was a major investor in the Chipotle Mexican Grill until 2006,[4] and owned the restaurant chain Boston Market until 2007.[5]A McDonald's restaurant is operated by either a franchisee, an affiliate, or the corporation itself. The corporation's revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurants. McDonald's revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth in operating income to $3.9 billion.[6]McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in Western nations and in the face of criticism over the healthiness of its products, the company has modified its menu to include alternatives considered healthier such as salads, wraps and fruit.

A McDonalds Marketing Plan is a great idea if you want to out perform all other McDonalds restaurants. Many franchisers jump right into play without ever taking time to draw up a marketing plan. They think just because the company name is already known that they do not need to market it.This is absolutely wrong. When drawing a McDonalds Marketing Plan, you should figure out what is unique about the target market in your area that you could use to appeal to them.

There are many different ways to go about writing a McDonalds Marketing Plan. There is tons of information about how to put the plan together. The most important thing to consider when drafting your McDonalds Marketing Plan is that the buyer has a number of McDonalds in the area he/she could probably go to.

As a McDonalds owner, when considering different options for your McDonalds Marketing Plan, you need to figure out how to give the buyer the incentive to come to your location above all the others.

There is a lot of beneficial information available you and other fellow franchisers that can give you creative ideas on how to draw up a unique marketing plan that can give you the edge on all other McDonalds in the area. All the vital information you might ever need to know about marketing plans can be found in this marketing plan workbook written by David Frey. You can learn how to determine what you can do to out perform the competition stores.

McDonald's, touting its pervasive slogan, ''I'm loving it,'' isn't feeling the love from local Floridians. After advertising on kids' report cards — good grades equal free food — McDonald's received much disapproval from parents in Seminole County, Florida. Especially from one mother, who fumed, ''The ad offered kids a free Happy Meal for their good work. Shouldn't kids be taught to work for knowledge and pride, not crappy food and imported toys?'' 

+ EnlargeThe McDonald's ad came wrapped around elementary students' report cards. Students, ranging

from kindergarten up to fifth grade, would receive a free Happy Meal for earning A's and B's.Looks like Ronald McDonald received an F in Marketing. 

When parent Susan Pagan discovered the ad, she contacted the Campaign for a Commercial-Free Childhood (CCFC). "My daughter worked so hard to get good grades this term, and now she believes she is entitled to a prize from McDonald's," said Pagan. "And now I'm the 'bad guy' because I had to explain that our family does not eat at fast-food chains. I'm outraged that McDonald's is trying to exploit my daughter's achievement." At once, the CCFC created a campaign to have the advertisement removed. 

The ad came wrapped around elementary students' report cards. Students, ranging from kindergarten up to fifth grade, would receive a free Happy Meal for earning A's and B's. A smiling Ronald McDonald led the campaign. However, after the uproar, the yellow and red clown was banished from all report cards. McDonald's agreed to discontinue the ad, reprint the envelopes at no cost to the school, and acknowledge the outcry because "we believe the focus should be on the importance of a good education." 

A good education, not a free box of fries and nuggets. 

The CCFC and nearly two-thousand parents reigned victorious. As the CCFC's director, Dr. Susan Linn, put it, "This is a good day for parents and children in Seminole County and [for] anyone who believes that corporations should not prey on children in schools. We are pleased that McDonald's is listening to parents all over the country who believe that report cards should not be commercialized."

However, this isn't McDonald's first attempt at directly marketing their products to young kids. According to an article by former fast-food service employee Pratap Chatterjee, "In the 1990s there was a hue and cry by groups like UNPLUG! of Oakland, California, after McDonald's and other companies provided 'sponsored educational materials' on subjects like nutrition to teachers to supplement or take the place of approved curriculum in the U.S. The company was also protested for sponsoring McTeacher's Night in southern California, which involved teachers working at local McDonald's restaurants to raise funds for schools by selling burgers to their own students." 

But with another loss tucked under its belt, McDonald's may finally realize that its marketing ploys aimed at children won't get by without a fight. Especially when parents are involved. After all, "One parent can make a difference," said Linn. "And when that parent was joined by other parents and CCFC members, one of our nation's largest corporations was forced to back down. What we accomplished in Seminole County should put all marketers on notice: advertising has no place in our nation's schools." 

Challenges in Entering Indian Markets Regiocentricism: Re-engineering the menu - McDonald’s has continually adapted to the customer’s tastes, value systems, lifestyle, language and perception. Globally McDonald’s was known for its hamburgers, beef and pork burgers. Most Indians are barred by religion not to consume beef or pork. To survive, the company had to be responsive to the Indian sensitivities. So McDonald’s came up with chicken, lamb and fish

burgers to suite the Indian palate. The vegetarian customer – India has a huge population of vegetarians. To cater to this customer segment, the company came up with a completely new line of vegetarian items like McVeggie burger and McAlooTikki. The separation of vegetarian and non-vegetarian sections is maintained throughout the various stages. Segmentation, Targeting and Positioning McDonald’s uses demographic segmentation strategy with age as the parameter. The main target segments are children, youth and the young urban family.

As shown above, kids reign supreme in FMCG purchase related to food products. So to attract children McDonalds has Happy Meal with which toys ranging from hot wheels to various Walt Disney characters are given (the latest in this range is the toys of the movie Madagascar). For this, they have a tie-up with Walt Disney. At several outlets, it also provides special facilities like ‘Play Place’ where children can play arcade games, air hockey, etc. This strategy is aimed at making McDonald’s a fun place to eat. This also helps McDonald’s to attract the young urban families wanting to spend some quality time while their children have fun at the outlet. To target the teenagers, McDonald’s has priced several products aggressively, keeping in mind the price sensitivity of this target customer. In addition, facilities like Wi-Fi are also provided to attract students to the outlets like the one at Vile Parle in Mumbai. “Mc Donald’s mein hai kuch baat” projects McDonald’s as a place for the whole family to enjoy. When McDonald’s entered in India it was mainly perceived as targeting the urban upper class people. Today it positions itself as an affordable place to eat without compromising on the quality of food, service and hygiene. The outlet ambience and mild background music highlight the comfort that McDonald’s promises in slogans like“Yo u deserve a Break Today” & “Feed your inner child”. This commitment of quality of food and service in a clean, hygienic and relaxing atmosphere has ensured that McDonald’s maintains a positive relationship with the customers.

McDonalds Marketing Mix (5 P’s) After segmenting the market, finding the target segment and positioning itself, each company needs to come up with an offer. The 5 P’s used by McDonalds are: 1.Product2.Place3.Price4.Promotion5.People

Product is the physical product or service offered to the consumer. Product includes certain aspects such as packaging, guarantee, looks etc. This includes both the tangible and the non- tangible aspects of the product and service. McDonalds has intentionally kept its product depth and product width limited. McDonalds studied the behaviour of the Indian customer and provided a totally different menu as compared to its International offering. It dropped ham, beef and mutton burgers from the menu. India is the only country where McDonalds serve vegetarian menu. Even the sauces and cheese used in India are 100% vegetarian. McDonalds continuously innovates its products according to the changing preferences and tastes of its customers. The recent example is the introduction of the Chicken Maharaja Mac. McDonalds bring with it a globally reputed brand, world class food quality andexcel lent customer specific product features.

Pricing includes the list price, the discount functions available, the financing options available etc. It should also take into the consideration the probable reaction from the competitor to the

pricing strategy. This is the most important part of the marketing mix as this is the only part which generates revenue. All the other three are expenses incurred. The price must take into consideration the appropriate demand-supply equation. McDonald’s came up with a very catchy punch line “Aap ke zamane mein ,baap ke zamane ke daam”. This was to attract the middle and lower class consumers and the effect can clearly be seen in the consumer base McDonalds has now. McDonalds has certain value pricing and bundling strategies such as happy meal,combo meal, family meal etc to increase overall sales volumes

The various promotion channels being used by McDonald’s to effectively communicate the product information are given above. A clear understanding of the customer value helps decide whether the cost of promotion is worth spending. There are three main objectives of advertising for McDonald’s are to make people aware of an item, feel positive about itand remember it. The right message has to be communicated to the right audience through the right media. McDonald’s does its promotion through television, hoardings and bus shelters. They use print ads and the television programmes are also an important marketing medium for promotion. Some of the most famous marketing campaigns of McDonald’s are: • “You Deserve a break today, so get up and get away- To McDonald’s” • “Aap ke zamane mein ,baap ke zamane ke daam”. • “Food, Folks, and Fun” • “I’m loving it”

The McDonald’s Experience Marketing in a services industry is becoming an increasingly complex challenge. The paradigms of service marketing demand a passionate understanding of customer expectations and perceptions, and linking them to product design & delivery as well as operational planning. This is where McDonald’s has excelled due to its ability to successfully integrate the customer’s perspective in its products and operations in a comprehensive manner. The revamped menu in India is an example of McDonald’s strategy of integrating the customer’s perspective in its products. And, the operational integration is evident from McDonald’s emphasis on its suppliers as its customers as well as its treatment of its consumers as co- producers of services. The ultimate aim of Service Marketing is not just to become a Service Leader but to create a Service Brand. The Service Delivery Process is the key to achieving this aim of Service Marketing.

Competitors Analysis McDonald’s has been a leading fast-foods outlet in Vile Parle. But the outlet understudy has other competitors eating away into its market share. In addition to its traditional rivals—KFC, Dominos, Pizza Hut—the firm encounters new challenges. Jumbo King competes using a back-to-basics approach of quickly serving up burgers for time-pressed consumers. On the higher end, the KFC has become potent competitor in the quick service field, taking away customers from McDonald’s. Perhaps in the new environment, fast, convenient service is no longer enough to distinguish the firm. At this time, a new critical success factor may be emerging: the need to create a rich, satisfying experience for consumers. This brings us to service and experience based competition which McDonald’s can use for competitive advantage against Jumbo King. Keeping in mind the demographics of the area, McDonald’s has Wi-Fi enabled the outlet to cater to the student community. It is for this overall “Food, Fun & Folks” experience that customers pay a premium over the other competitors.

McDonald’s is the world’s largest fast-food restaurant chain. It has more than 30,000 restaurants in over 100 countries. Over one billion more customers were served in 2007 than in 2006.

Although net income was down by $1.1 billion in 2007, McDonald’s sales were up 6.8%, and revenue was a record high of $23 billion. “The unique business relationship among the company, its franchisees and suppliers (collectively referred to as the System) has been key to McDonald’s success over the years. The business model enables McDonald’s to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonald's, 2008, 25). McDonald’s overall strategic plan is called Plan to Win. Their focus is not so much on being the biggest fast-food restaurant chain, rather it is more focused on being the best fast-food restaurant chain. McDonald’s “strategic alignment behind this plan has created better McDonald’s experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonald's, 2008, 25). McDonald’s also incorporates geographical strategic plans. In the U.S., McDonald’s strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonald’s has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. In the beverage business, McDonald’s starting introducing new hot specialty coffee offerings on a market-by-market basis. In Europe, McDonald’s uses a tiered menu approach. This menu features premium selections, classic menu, and everyday affordable offerings. They also “complement these with new products and limited-time food promotions” (McDonald's, 26). In the Asia-Pacific, Middle East, and Africa markets, McDonald’s strategic plan is focused around convenience, breakfast, core menu extensions and value. With McDonald’s overall strategic plan and its geographical strategic plan, the company should start to see more positive financial results. McDonald’s incorporates several organizational strategies. Some of the organizational strategies consist of better restaurant operations, placing the customer first, menu variety and beverage choice, convenience and daypart expansion, and ongoing restaurant reinvestment. McDonald’s plans to “continue to drive success in 2008 and beyond by leveraging key consumer insights and our global experience, while relying on our strengths in developing, testing and implementing initiatives surrounding our global business drivers of convenience, branded affordability, daypart expansion and menu variety” (McDonald's, 2008, 25). One of the ways McDonald’s can obtain a positive net income is to maximize efficiency in its restaurant operations while at the same time placing the customer first. With strategic focus on menu variety and beverage choice, McDonald’s is hoping for increased sales and guest counts. With their convenience and daypart expansion initiative, McDonald’s is hoping to increase efficiency in its drive-thru pick up window, and the company is staying open later for those late-nighters who want a quick bite to eat. McDonald’s also has locally owned and operated restaurants which “are at the core of their competitive advantage and makes them not just a global brand but a locally relevant one” (McDonald's, 27). They are in the process of remodeling and upgrading its franchises. The company is also opening up McCafe’s “with the expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at existing U.S. restaurants over the next decade” (Peter & Donnelly, Jr., 2007, 253). A couple other organizational strategies are branded affordability, and the development of their employees starting with recruitment and training and leading all the up to leadership and management. McDonald’s strategic plan is influencing their marketing efforts by building better brand transparency. They want their image to be recognized globally. They are enhancing the customer’s experience. “Across their markets, they are making is easier for customers to enjoy a great McDonald’s experience. They are introducing drive-thrus to the increasingly mobile

populations in China and Russia, while in the U.S. and Canada, greater drive-thru efficiency and double drive-thru lanes enable them to serve even more customers quickly” (McDonald's, 2008, 13). In Germany, McDonald’s has a reimaging program that includes adding about 100 McCafes. They are also installing new kitchen operating systems so that they can continue to deliver high food quality. McDonald’s has already renovated about 10,000 restaurants world wide. They want their restaurants to be an expression of their brand. The company is also delivering greater value to the customer with new menu selections. “By serving a locally relevant balance of new products, premium salads and sandwiches, classic menu favorites and everyday affordable offerings around the world, they create value for customers and satisfy their demand for choice and variety” (McDonald's, 15). Types of marketing mix that McDonald’s use to achieve their marketing goals are longer operating hours, everyday value meals, and optimizing efficiency in the drive-thru. McDonald’s also uses marketing campaigns. In 2007, McDonald’s used the Shrek movie to give children a choice between milk, fruit, or vegetables as part of their Happy Meal. In addition to their commitment with children, McDonald’s is building their brand image “with innovated marketing transporting ideas across borders and using i’m lovin’ it to deepen their connection with customers who love their food and the unique McDonald’s experience” (McDonald's, 2008, 17). In the 2008 Olympics held in Beijing, McDonalds offered the Beijing Burger, Carmel and Banana Sundae, and Rice Sticks. They featured nine Olympic and Paralympic athletes on their packaging. In Australia, McDonald’s held a marketing campaign where the people could decide what name to give its new hamburger. The name that won was Backyard Burger. With marketing campaigns like these, McDonald’s is trying to create a better brand image. Other organizational and marketing strategies are “creating stronger bonds of trust by being accessible and maintaining an open dialogue with customers and key stakeholders” (McDonald's, 2008, 27). The company is reinvesting approximately $1.9 billion into their restaurants primarily to reimage existing restaurants and build new ones. McDonald’s is also moving towards a more heavily franchised, less capital-intensive business model. Although in some countries, such as China, this is not permissible due to governmental laws. With McDonald’s growing global brand image and its emphasis on the five factors of exceptional customer service, this should help them increase sales and net income. With the initiative of remodeling and upgrading existing franchises, this will give the customer a more pleasant and friendly place to dine out at. With McDonald’s marketing campaign for the 2008 Olympics, they were an integral part of the games and this only enhanced McDonald’s brand image in a positive way. With the recruitment and training initiatives for current employees or future prospects, this will allow McDonald’s to achieve less of an already high turnover ratio. 

Re-branding The head office decided it was time to stop the decline in global profits and the bleeding of customers to healthier options, and charged its communications specialists to respond to the changing climate of opinion. This McDonald’s did with great fanfare devoting billions of dollars in a global corporate re-branding intended to blunt McDonald’s association with unhealthy kids. Charlie Bell, the CEO of McDonald’s whose “plan 

to win” approach was a revival of the five P’s of marketing price, people, product, place and promotion. At an operational level, McDonald’s stores were to be given new interiors, revamped staff uniforms and packaging, and new menu items. In their UK print and outdoor campaigns, a golden question mark now replaced the Golden Arches explained by the tagline “McDonald’s. But not as you know it”. Menu changes alone could not achieve the turn around, however, so McDonald’s also developed a two-pronged global marketing strategy. They decided to sidestep the child market by targeting teens rather than children, ironically returning to the burgers original fans. Their first ad in the global youth campaign featured, global pop star Justin Timberlake singing its new “I’m Lovin’ it” strapline. This youth campaign focus unfolded with growing sponsorship of MTV show Advance Warning followed by ads employing hip yet dynamic teen icons like skater legend Tony Hawks to speak to its new youthful targets based around four core areas: music, sport, fashion and entertainment