...MARKETING EXCELLENCE McDonald’s Learning to love the brand again Marketing Excellence 2 | About The Marketing Society About The Marketing Society INSPIRING BOLDER MARKETING LEADERSHIP The Marketing Society is a not-for-profit organisation owned by its members, with over 2500 senior marketers. Over the past 50 years it has emerged as one of the most influential drivers of marketing in the UK business community. The Society challenges its members to think differently and to be bolder marketing leaders by supporting the development of leading-edge thinking, and promoting the evidence of effective marketing. The Society does this through the Marketing Society Awards for Excellence; its publications Market Leader, Our Week and rich online Knowledge Zone; a national programme of world-class events; innovative professional development, such as the annual Marketing Leaders Programme; and extensive on-and-offline networking opportunities. www.marketing-society.org.uk Foreword | Marketing Excellence 2 | Foreword By Roisin Donnelly, President of The Marketing Society What is marketing excellence? Marketing excellence can drive breakthrough business results for the short and long term. Marketing excellence requires great strategic thinking, great creative thinking and perfect execution. But how do we assess marketing excellence? First we choose brilliant industry judges who are all experienced and successful practitioners of excellence and we ask them to pick out the cases which...
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...MarketLine Case Study McDonald’s Corporation Case Study Remaining relevant in a health conscious society Reference Code: ML00001-040 Publication Date: January 2012 WWW.MARKETLINEINFO.COM MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED MCDONALD’S CORPORATION CASE STUDY © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED ML00001-040/Published 01/2012 Page | 1 OVERVIEW Catalyst McDonald's Corporation is one of the world's largest foodservice retailing chains. The company is primarily known for its burgers and fries, which it sells through more than 32,000 restaurants in 117 countries. In 2010, the company served an average of 64 million customers per day. It primarily operates in Europe, Asia Pacific, and the Americas. The company is headquartered in Oak Brook, Illinois and employs about 400,000 people. McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment. Summary McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price. McDonald’s has been the target of much criticism in recent...
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...CASE STUDY: MCDONALD’S Executive summary This case study looks to evaluate marketing within McDonald’s and will look into how it has affected McDonald’s in terms of its position within the market. Through research, a positive correlation has been revealed between how successful a company operates and how committed they are in terms of customer focus and its marketing strategy (Kloter and Armstrong, 2010). This study will demonstrate how McDonald’s marketing strategy has helped render the company a global success. This is shown through the SWOT analysis. This study has found that the pivotal ingredient in this company is the unique and effective marketing strategy. Also to be credited was that the strategy showed that there were areas which could potentially disrupt the current rate of success (in terms of monetary results) If they are not rectified. A recommendation could be to increase the amount of ‘Healthy foods’ McDonald’s currently offer, to do so McDonalds would need to invest more in their product segment of the marketing mix. Introduction In many cases a company does not become successful overnight. There are a number of key ingredients which need to be focused on, in order to achieve its potential. An important part of this is the ‘marketing strategy’. The majority of successful firms invest large sums of capital and time into tailoring their strategy focusing on the potential changes in customer levels, rivals and the environment (Bradley, 2005). McDonald’s currently...
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...Running Head: MCDONALD’S AND OBESITY Case Study #1: McDonald’s and Obesity Monica Cassetta Central Michigan University-- MKT 560 February 1, 2014 Introduction Obesity is an ongoing problem not only in America, but seen all over the world. There are many assumptions in regards to why this has been on the rise in recent years, and who is to blame for this. Obesity and over-weight adults, as well as children, has become increasingly common, as well as seen. With over 1 billion overweight adults with 400 million of them being obese, and with 155 million children being over-weight worldwide (Cateora, Gilly, Graham, 2013), this issue needed to be addressed. With that said, the big question is, how do we stop this rise as a whole. An ongoing issue and example to today’s obesity is fast food chains i.e. McDonald’s, and how they advertise. And though McDonald’s is one of the leading companies in the fast-food chain industry across the globe, people have been outraged with their marketing and campaigns to eat their unhealthy menu items. Thankfully, even with the bad publicity McDonald’s had and has received on numerous occasions, they are still able to have a constant growth within their company. Question #1: When it comes to fast-food industries, marketing and advertising is the key to their success. They typically use the 4P’s of marketing which are, product, price, place, and promotion. “Having accurate research is essential in creating the right marketing” (Business...
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...Introduction In August 2001, it was discovered that the McDonald’s Monopoly game was a fraud. Simon Marketing, which ran the game on behalf of McDonald’s was responsible for the fraud. An investigation was initiated pursuant to a confidential tip. The investigation was led by the Federal Bureau of Investigation and dubbed Operation “Final Answer”. During the investigation to uncover the fraud, the FBI used several different forms of surveillance. In this paper I will describe how the actual fraud was committed and subsequent aftermath of the investigation. Case Study The McDonald’s Monopoly game fraud was discovered in August of 2001, when it was revealed that certain employees of Simon Marketing and associates had colluded to defraud the McDonald’s Corporation in excess of $13 million worth of game prizes over the promotion period (Albrecht et al, 2012, p.210). The Simon Marketing firm was contracted by McDonalds to run their promotional sweepstakes games. The game prizes consisted of cash, vehicles, vacations and/or food prizes. According to Richard Dent (FBI Special Agent in Charge), the main players involved in the scheme were as follows; Linda L. Baker, 49, of Westminster, South Carolina; Noah D. "Dwight" Baker, 49, of Westminster, South Carolina; John F. Davis, 44, of Granbury, Texas; Andrew M. Glomb, 58, of Fort Lauderdale, Florida; Michael L. Hoover, 56, of Westerly, Rhode Island; Ronald E. Hughey, 56, of Anderson, South Carolina; Jerome...
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...McDonald’s: Behind The Golden Arches “Since 1955, we’ve been proud to serve the world some of its favourite food. And along the way, we’ve managed not just to live history, but create it: from drive-thru restaurants to Chicken McNuggets to college credits from Hamburger U and much more. It’s been quite the journey, and we promise this is just the beginning-we’ve got our hearts set on making more history” (McDonald’s Corporation, 2011). Almost 60 years have passed since Raymond Kroc envisioned a nationwide fast food chain, which needless to say went on to revolutionise the American restaurant industry and become the world’s number #1 fast food restaurant. Today McDonald’s serves 52 million people a day from one of its 31,000 restaurants dotted around the world (Ritabrata Giiosii, R.G. 2009). The golden arches along with Ronald McDonald and the catch phrase “I’m lovin’ it” have assisted McDonald’s in becoming one of the most globally recognised brands, allowing them to become McDonald’s most valuable intangible assets, but how did they do it? Countless elements threaten McDonald’s reputation; health issues, legal and technological changes, social factors, environmentalists and obviously competitors especially those who offer similar services and products such as KFC. They too have become a national brand recognized all around the world however to understand how McDonalds have achieved such success we must first understand what they do differently and what objectives...
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...McDonald’s Types of business organisations Link to case study here Overview: a case study of McDonald’s and its relationship with its franchises. Learning objectives: ➢ to analyse the role of franchises and franchisor ➢ to consider the importance of franchisees to the success of McDonald’s. Introduction (30 minutes) Introduce the lesson: you will look at McDonald’s and its relationship with its franchisees. You will consider the advantages and disadvantages of having franchises. The first McDonald’s was opened in 1940 in San Bernadino, California. However, success really began when Ray Kroc became involved in the business. McDonald’s is now extremely successful with over 30,000 restaurants. In 2002 it served over 16 billion customers, to expand rapidly over 70% of McDonald’s restaurants are franchises. Explain what a franchise is ( where McDonald’s sells the rights to use its name , products and systems in return for a percentage of the franchises earnings) Student task: How does brand franchising enable an organisation like McDonald’s to grow? How does brand franchising reduce the risk for the franchisee? Why are franchisees prepared to pay McDonald’s 4.5% of their sales revenue towards national marketing costs? Why does McDonald’s provide ongoing support to franchisees? Students to suggest the benefits of being a franchisee of McDonald’s. (e.g. support, well known brand, established systems, share resources). Put these ideas on the...
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...restaurants, marketing, success, brand, suppliers, sales, standards, customers, Ray Kroc, market research, recognises, Football Association, staff. Summary: From extremely modest beginnings, they hit on a winning formula selling a high quality product cheaply and quickly. However, it was not until Ray Kroc, a Chicago based salesman with a flair for marketing, became involved that the business really started to grow. There are now more than 29,000 McDonald's Restaurants in over 120 countries. This case study examines the success of franchising and investigates the special three way relationship that exists between the franchisee, the franchisor and the suppliers. McDonald's is an example of brand franchising. Being their own boss in return, the franchisee agrees to operate the restaurant in accordance with McDonald's standards of quality, service, cleanliness and value. The cooking processes in McDonald's restaurants are broken down into small, repetitive tasks, enabling the staff to become highly efficient and adept in all tasks. There is no need to develop the product or do expensive market research. It begins with working in a restaurant, wearing the staff uniform and learning everything from cooking and preparing food to serving customers and cleaning. It recognises that the success and profitability of McDonald's is inextricably linked to the success of the franchises. Benefit from national marketing carried out by McDonald's A brand is a...
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...Questions 1.) What role do opinion leaders play in McDonald’s marketing? Opinion leaders for McDonald’s marketing initiate or introduce strategic implementation of product positioning within the marketplace. They identify what products are the most beneficial to integrate into the organizations value menu, and what methodology is needed in order to increase profitability and enhance nationwide growth expansion. The opinion leaders must understand about customer’s need and ensure that their needs are met depending on the consumer’s geographic region. They need to introduce some menu that is adapted to regional tastes. For example, McDonald’s restaurants in Moscow promote different value menu compare to other franchises such as in Argentina and France. In Moscow, consumers like to have fresh McMuffin sausage sandwiches as breakfast while in Argentina, Ranchero hamburger sandwich is the customer favourite. Opinion leader for McDonald’s marketing needs to know about the organization inside and outside so that they would able to inform marketers about the aspect of product placement based on the targeted demographic. Besides, last time, McDonalds was investigating for not having enough healthy options for customers. This is because McDonalds built its reputation on burgers and fries. As a result of the need for food with nutritional value, consumers are now able to choose a healthy alternative when dining out at McDonalds. Example, McDonalds introduce new salad, wrap sandwiches...
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...A- Introduction of the Case B- Statement of the Problem / Identify Problem C- Conduct Strategic Analysis - Issues related to the case D- Propose Alternatives Solutions E- Make Recommendation / Select Appropriate Solution Endnote A When we talk about a company with the magnitude of The McDonald’s, it like said “take off the hats”, because it’s a symbol of growing, integrity, prosperity. Year by year has tried to fall in love with the customers either way. Specials, new item in the menu, new restaurants, or remodeling the old one, and new toys for kids, are the few tactics to get attention in public eyes. Some customers come for breakfast, some for lunch and some while the time away likes me. I had four boys and they loved happy meals of nuggets and the most important toys and the game room, gets them in his zone it’s fabulous. I have about six restaurants in my range, my favorite is the one with game room of course for my kids. Never rush at the time I get there, quiet and fun that any customer want when they go to eat or drink a hot coffee. For me do this specific project is significant because I was there long time ago and was my pleasure been there. Mid 90’s I stared work in McDonald’s, 1511 Roosevelt ave, caparra heights San Juan, PR. Was my first job, my shifts 5:30am to 3:oopm, the first station was biscuit, then salad, later French fries, at noon cashier, cleaning...
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...emerald-library.com/ft McDonald's: ``think global, act local'' ± the marketing mix Principal Lecturer, Manchester Metropolitan University, Manchester, UK Keywords Globalization, Marketing mix, Marketing management, Fast-food industry, Marketing, Franchising Abstract Focuses on the marketing mix of McDonald's. Highlights how the company combines internationalisation and globalisation elements according to various fast food markets. Using the effect of strategical and tactical models, the case illustrates the effect of McDonald's on the global environment and how they adapt to local communities. Describes future franchise plans for McDonald's. McDonald's: ``think global, act local'' 97 Claudio Vignali Introduction McDonald's background Two brothers, Richard and Maurice McDonald founded McDonald's in 1937. The brothers developed food processing and assembly line techniques at a tiny drive-in restaurant east of Pasadena, California. In 1954, Ray Kroc, a milk-shake mixer salesman, saw an opportunity in this market and negotiated a franchise deal giving him exclusive rights to franchise McDonald's in the USA. Mr Kroc offered a McDonald's franchise for $950 at a time when other franchising companies sold restaurant and ice-cream franchises for up to $50,000. Mr Kroc also took a service fee of 1.9 per cent of sales for himself plus a royalty of 0.5 per cent of sales went to the McDonald brothers. The McDonald's brothers sold out for $2.7 million in 1961. McDonald's first international...
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...9 1011 1 2 3 4 5 6 7 8 9 2011 1 2 3 4 5 6 7 8 9 30 1 2 3 4 5 6 7 8 9 40 1 2 3 4 5 6 711 8 The external environment and its effect on strategic marketing planning: a case study for McDonald’s Demetris Vrontis* School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus Fax: 00357 22 353 722 E-mail: vrontis.d@unic.ac.cy * Corresponding author Pavlos Pavlou Department of Management and MIS, School of Business, University of Nicosia, 46 Makedonitissas Ave., P.O. Box 24005, 1700 Nicosia, Cyprus Fax: 00357 22 353 722 E-mail: pavlou.p@unic.ac.cy Abstract: This case study has been compiled in order to illustrate the effect of the external environment on the international marketing strategy of McDonald’s, the fast food chain. An external environmental analysis is necessary, as effective marketing strategies cannot be developed without firstly analysing the environment in which the company operates. The paper analyses a number of the theoretical approaches to strategic planning to be considered in international marketing. Keywords: adaptation; international; marketing; McDonald’s; standardisation; strategy. Reference to this paper should be made as follows: Vrontis, D. and Pavlou, P. (2008) ‘The external environment and its effect on strategic marketing planning: a case study for McDonald’s’, Journal for International Business and Entrepreneurship Development, Vol. 3, Nos 3/4, pp.289–307. Biographical notes: Demetris Vrontis is the Founder...
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...McDonald's Operation in South Africa A Case Study Abstract: The case focuses on the strategies adopted by the world's leading fast food restaurant chain, McDonalds Corporation (McDonald's) in South Africa. McDonald's opened its first restaurant in South Africa in November 1995. Today McDonald's operates 170 restaurants in nine of South Africa's provinces-Gauteng, Western Cape, Eastern Cape, KwaZulu-Natal, Mpumalanga, Free State, Northern Province, North West and Northern Cape. In March 2011, Shanduka Holdings, owned by Cyril Ramaphosa, acquired control of McDonald's South African operations. The deal gave Ramaphosa exclusive rights for 20 years; including the powers to lease out real estate of its stores. McDonald's has struggled under fierce home-grown competition. Famous Brands, its main rival has more than 1100 outlets operating under names such as Steers, Wimpy and Mugg and Bean. Since then, McDonald's has been expanding heavily in South Africa providing quality, service, and value to its customers. South Africa has proven to be one of the most successful markets for McDonald's at one point opening a staggering number of 30 restaurants in record time. This case concludes by addressing challenges faced by the new owners of McDonald's with increasing competition, commodity price fluctuations, and variances with direct costs. Issues: * Examine some of McDonald's efforts to localize its offerings in South Africa. * Understand McDonald's marketing strategies...
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...19 Globalisation and international marketing A Activity 19.1 − answer provided on Student’s CD-ROM. Activity 19.2 (page 374): Zumo the energy drink 1 As a business analyst, write a report to Zumposa’s board of directors recommending an appropriate marketing strategy for this product in your country. It should contain: explanations of global marketing and localisation; advantages and disadvantages of both strategies for this product in your country; details of the changes you would recommend for the marketing strategy in your country. Don’t forget that your marketing strategy should be integrated. [20] Advantages Global marketing: A pan-global marketing strategy adopts common products, branding and promotional campaigns across the world. Disadvantages • There will be economies • The brand name may • • • of scale as the product is the same in each country. Therefore, purchasing economies of scale can be utilised. No need for different flavours of Zumo. Promotional costs will be reduced as the same advertising is used everywhere – thus no need to commission different adverts in different countries. Advertising already used in Spain can simply be translated for other markets. The economy is increasingly globalised and there are fewer and fewer differences between tastes in countries around the world. The product may benefit from a common global identity. This has worked well for Coca Cola. • • • not be suitable in all countries, e.g. Plop, a popular Swedish chocolate...
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...McDonald’s Restaurants The route to fast food franchising Introduction When the McDonald brothers, Dick and Mac opened their first restaurant in 1940 in San Bernardino, California, they could never have imagined the phenomenal growth that their company would enjoy. From extremely modest beginnings, they hit on a winning formula selling a high quality product cheaply and quickly. However, it was not until Ray Kroc, a Chicago based salesman with a flair for marketing, became involved that the business really started to grow. He realized that the same successful McDonald’s formula could be exploited throughout the United States and beyond. There are now more than 28,000 McDonald’s Restaurants in over 120 countries. In 2000, they served over 16 billion customers, equivalent to a lunch and dinner for every man, woman and child in the world! McDonald’s global sales were over $40bn, making it by far the largest food service company in the world. In 1955, Ray Kroc realized that the key to success was rapid expansion. The best way to achieve this was through offering franchises. Today, over 70 per cent of McDonald’s restaurants are run on this basis. In the UK, the first franchised restaurant opened in 1986 - there are now over 1,150 restaurants, employing more than 49,000 people, of which 34 per cent are operated by franchisees. This case study examines the success of franchising and investigates the special three way relationship that exists between the franchisee, the...
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