McDonald Marketing Strategies
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McDonalds Marketing Strategy
McDonalds is the worlds 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, McDonalds 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 McDonalds success over the years. The business model enables McDonalds to play an integral role in the communities we serve and consistently deliver relevant restaurant experiences to customers.” (McDonalds, 2008, 25).
McDonalds 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. McDonalds “strategic alignment behind this plan has created better McDonalds experiences through the execution of multiple initiatives surrounding the five factors of exceptional customer experiences – people, products, place, price and promotion” (McDonalds, 2008, 25). McDonalds also incorporates geographical strategic plans. In the U.S., McDonalds strategic plan continues to focus on breakfast, chicken, beverages and convenience. These are the core areas in the United States. McDonalds has launched the Southern Style Chicken Biscuit for breakfast and the Southern Style Chicken Sandwich for lunch and dinner. In the beverage business, McDonalds starting introducing new hot specialty coffee offerings on a market-by-market basis. In Europe, McDonalds 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” (McDonalds, 26). In the Asia-Pacific, Middle East, and Africa markets, McDonalds strategic plan is focused around convenience, breakfast, core menu extensions and value. With McDonalds overall strategic plan and its geographical strategic plan, the company should start to see more positive financial results.
McDonalds 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. McDonalds 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” (McDonalds, 2008, 25). One of the ways McDonalds 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, McDonalds is hoping for increased sales and guest counts. With their convenience and daypart expansion initiative, McDonalds 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. McDonalds 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” (McDonalds, 27). They are in the process of remodeling and upgrading its franchises. The company is also opening up McCafes “with the expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at