Marketing and Sales of McDonalds
PROFILE:
What started as a barbecue restaurant boomed into an international craze and became known worldwide as one of the top player in the fast food industry. This fast food restaurant called McDonalds. McDonalds started on May 15, 1940 where in 80% of its generated revenue came from hamburgers alone. Back then, its operations were developed to target young family. In 1945, Ray Kroc saw a potential for growth and was able to convince the McDonald brothers to have the company franchised with his support. In 1963, Ronald McDonald, a fun loving clown, was introduced to promote the restaurant as a family establishment. This became a huge success and now Ronald McDonald is a known symbol of McDonalds.
In 1981, George T. Yang, President of McGeorge Food Industries had the privilege of franchising McDonalds here in the Philippines. The very 1st store opened in the busy University of Morayta while the 2nd one was established in the prime commercial area of Cubao. Soon hundreds of McDonald restaurants opened nationwide.
Over the years, McDonalds has attempted to change their image by applying different marketing strategies. For example, they changed packaging on their products to become more environmentally safe. They have also created new menu items in the past 10 years in order to offer a diverse selection of food to its ever changing customers. They also started offering some “healthy” options to those who are weight conscious. With this and many other efforts McDonalds is able to tap certain customers who might have overlooked it in the past because of traditional stereotypes.
McDonalds has an extremely large market; therefore, it is crucial for the company to learn and understand what the wants and needs of their market are by recognizing how they regard the McDonald experience. To ensure the effectiveness of their strategy, the company was able to recognize the effect and the importance of having a diverse consumer base. They have created numerous strategies in order to satisfy their customers changing needs and wants around the globe.
MARKETING AND SALES:
Though out the years, McDonalds has expanded its business through franchising. According to Suplico, Garcia & Esguerra, franchising is a continuing relationship in which the franchisor provides a licensed privilege to the franchisee to do business, and offers assistance in organizing, training, merchandising, marketing and managing, in return, for a consideration. In this case McDonalds is the franchisee. As such, McDonald Philippines has to pay royalty fees to the mother company in exchange for the patent, trademarks, technical, managerial and marketing services it received upon the act of franchising.
McDonalds practices the Value-Based Pricing method where in the company initially