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McDonalds PR
Group Involved Dhaval Shah Sohil Jevani 49 41
Index
Introduction to McDonald
Challenges before Entering Indian Markets Segmentation, Targeting and Positioning Customer Perception and Customer Expectation The McDonalds Experience A perfect example of revitalising a product in decline phase Competitors Analysis
McDonalds PR
Committed to the well-being of our customers Making people a priority McDonalds Corporate Responsibility = Values in Practice Our Road Map for a Sustainable Supply Chain
McDonalds PR Disasters
Indian Beef Case McDonald's is in PR pickle in U.K.
Conclusions
All izz (not) well still PR /Luck/ public support / lord knowns how?
Bibliography
Introduction to McDonald
Its beginning and formula of success
The story of McDonalds started in 1954, when its founder Raymond Kroc saw a hamburger stand in San Bernardino, California and envisioned a nationwide fast food chain. Kroc proved himself as a pioneer who revolutionized the American restaurant industry. Today McDonalds is the worlds largest fast food chain serving 47 million customers daily. McDonalds is now one of the most valuable brands globally, worth more than $25 billion. The Golden Arches and its mascot Ronald McDonald have gained universal recognition. Though the company has roots in the US, McDonalds today has become an accepted citizen of the world. Year 1955 1957 1963 1965 1968 1974 1996 Events Ray Kroc opens his first restaurant. McDonalds Corporation is created Quality, Service, Cleanliness and Value (QSC & V) becomes company motto Ronald McDonald makes debut The company goes public Big Mac is introduced` Happy Meal is launched McDonalds opens in India, the 95th country
Business Model
Franchise Model Only 15% of the total number of restaurants is owned by the Company. The remaining 85% is operated by franchisees. The company follows a comprehensive framework of training and monitoring of its franchises to ensure that they adhere to the Quality, Service, Cleanliness and Value propositions offered by the company to its customers. Product Consistency By developing a sophisticated supplier networked operation and distribution system, the company has been able to achieve consistent product taste and quality across geographies.
Act like a retailer and think like a brand McDonalds focuses not only on delivering sales for the immediate present, but also protecting its long term brand reputation.
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. I am loving it projects McDonalds as a place for the whole family to enjoy. When McDonalds 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 maintains a positive relationship with the customers.
Target Segment A Family with children Urban customer on the move Teenager
What is McDonalds for me? A treat to children, a fun place to be for the children. Great taste, quick service without affecting the work schedule Hangout with friends, but keep it affordable.
Customers expect it to be an ambient, hygienic and a little sophisticated brand that respects their values. The customers expect the brand to enhance their self-image. Customer responses obtained at the Vile Parle, Mumbai outlet confirmed the fact that they connect strongly with the brand. However, fulfilling some of the customer expectations like a broader product variety provide McDonalds a great scope for improvement.
The punch line Im loving it is an attempt to show that the employees are loving their work at McDonalds and will love to serve the customers.
Competitors Analysis
McDonalds has been a leading fast-foods, But the outlet understudy has other competitors eating away into its market share. In addition to its traditional rivalsKFC, Dominos, Pizza Hutthe 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 McDonalds. 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 McDonalds can use for competitive advantage against Jumbo King. Keeping in mind the demographics of the area, McDonalds 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. Competition also reduces product lifecycle; inducing firms to revise their products portfolios and to revisit their product market to understand changing needs, expectations and perception of different market segments. The new McBreakfast would be introduced between 6 to 11 am as a pilot project. This would open up a whole new revenue stream for McDonalds by tapping into the student and working population by providing a healthy and wholesome breakfast. This shows how demographic shift can affect the demand for products and services. McDonalds has anticipated these changes to maintain its competitive edge.
McDonalds PR programs
McDonald considers its self a socially responsible & thus effort fully complies to its duties. Following are the plans and polices of McDonalds: -
Vision We envision a supply chain that profitably yields high-quality, safe products without supply interruption while leveraging our leadership position to create a net benefit by improving ethical, environmental and economic outcomes. Ethical - We envision purchasing from suppliers that follow practices that ensure the health and safety of their employees and the welfare and humane treatment of animals in our supply chain.
Environmental - We envision influencing the sourcing of our materials and ensuring the design of our products, their manufacture, distribution and use minimize lifecycle impacts on the environment. Economic - We envision delivering affordable food, engaging in equitable trade practices, limiting the spread of agricultural diseases, and positively impacting the communities that our suppliers operate in.
High-Quality Choices - Continue to develop high quality menu offerings that provide our customers with a range of choices that meet their needs and preferences and that fit in a balanced diet. Consumer-Friendly Nutrition Information - Enable consumers to make the right decisions continuing to provide even easier access to nutrition infromation Communicate Responsibly - Continue to refine our marketing and communication practices, particularly to children
Energy efficiency Find further ways to increase energy efficiency in our restaurants to save money and reduce our environmental impact. Sustainable Packaging & Waste Management Continue exploring ways to reduce environmental impacts of our consumer packaging and waste in our restaurant operations. Green Restaurant Design Enhance our current strict building standards to incorporate further opportunities for efficiency and innovation in the design and construction of our restaurants.
Respect - Create a diverse and inclusive culture where everyone feels valued and respected. Commitment Enhancement - Continue to enhance our employment value proposition to drive high levels of employee commitment. Talent Management - Attract, develop and retain the most talented people at all levels.
PLEASE NOTE HERE ON TILL CONCLUSION WE ONLY HAVE PASTED BLOG AS IS LANGUAGE/OPTION BORNE AND ANY OTHER LIABILITY IS NOT BORNE BY REDER OR AUTHORS OF PROJECT editing if any shall be considered adjustment and not manipulations
Authors of each blogs are mentioned in bibliography
Long-time U.S. PR counselor John F. Budd Jr., Chairman of The Omega Group in New York, agrees. "The best method is to ignore it. If you react every time to every adversary group you'd spend all your days in court." Budd, like others, notes that the company could win in court and lose in public opinion. "The legal opinion has prevailed over the PR opinion. "More lawyers are taking the initiative in public disputes and lawayers do not concern themselves with perception." Besides, Budd points out that the company does not seem to have suffered financially from all the criticism. Indeed, McDonald's outlets in the U.K. have grown from 200 to 600 in the last decade, according to Mike Love, who heads up the PR department at McDonald's U.K. But Love said that it's hard to quantify the damage the leaflets have caused over the last 10 years. "The allegations have been repeated back to us by schools and with Morris and Steel, but the company would not concede to the duo's demands: an apology and a promise not to sue critics over similar charges. Love said the lawsuit precludes any proactive PR by McDonald's but the company tries to correct any inaccurate media coverage. Outside of the U.K., however, the corporation's policy seems to be beyond "no comment." Asked about the McLibel coordinators to publicize the case in the U.S., through literature dissemination, demonstrations and keeping McLibel alive on the Internet, Ebling said he was not aware of any protests in the U.S. Members of the McLibel group even staged an anti-birthday party on McDonald's 40th anniversary on April 15 at the first store in Des Plaines, Ill., with a cake-smashing ceremony led by Morris and Steel, who flew in from London for the affair. McLibel protesters also appeared in front of "Rock and Roll McDonald's" in Chicago demanding that lifesize statutes of the Beatles be removed. "Paul McCartney is a big supporter of the McLibel campaign," says Mike Durschmid, McLibel coordinator in Chicago. "And before he died, John Lennon made his own bread. He wouldn't have touched McDonald's food." Aside from The New York Times and the Wall Street Journal, the U.S. media have paid little attention to the McLibel efforts either here or abroad. Durschmid thinks it's delf-censorship on the part of Chicagobased media. "This is McDonald's town, and McDonald's is one of the biggest advisertisers. You see the golden arches on TV two or three times a night. The media know where it's bread is buttered," he said. "And McDonald's is laying low hoping it will go away."
Localize story Containing the McLibel matter as a "U.K. problem" seems to be not just a U.S. PR strategy, but a worldwide one. Brian Lipsett, McLibel coordinator out of Pennsylvania, points to a confidential internal McDonald's memo out of Australia. The memo, which was sent to Love, outlines the "damage control" strategy the head of McDonald's Australia, Peter Ritchie, should adopt for an interview with a news program. It suggested that Ritchie decline the interview on the grounds that McLibel is a U.K. matter. "This will not be a positive story for McDonald's Austrialia, but buy being prepared we hopefully can deal effectively with each situation as it arises and minimize any further negative publicity," it said. The memo also outlined a strategy for responding to follow-up media coverage of the "60 Minutes" segment. It suggested which reporters to talk to and whom to avoid. Foar example, it said not to talk to "any ABC radio of TV station in Australia because they have given significant coverage to the case in a positive perspective." The Australian "Current Affairs" type show aired the McLibel segment tin May. "Iat made McDonald's look bad," said Dan Mills, a McLibel coordinator based in London. "It showed the cake-smashing party in Chicago and the confidential memo." Lipsett thinks McDonald's attempt to play down the controversy as a "U.K. problem" is futile. "A lot of people know about this case all over the world. This is a case of how not to proceed in PR. McDonald's assumed that Helen and Dave would back down, that they'd make mincemeat aout of them. Now they're in a position to defend their business practice." No win situation Many agree that the company has put itself in a non-win situation. If it conceded to McLibel 2's demands, McDonald's would look foolish. But by persisting in the somewhat silly court case -- fat content of french fries under fire and the like -- its reputation has been tarnished anyway. With the counterclaim, says Mills, "They're stuck." The case is expected to continue through next summer -- and handling the PR of a win or loss will be another big job for Love. "He's a good guy. We feel sorry for him," said Muccini. If you were Mike Love, what would you do? "Looking with hindsight," says Mills," McDonald's should have withdrawn from the case, but they thought they would get bad publicity from backing down."
"If McDonald's wins they should issue a gracious statement," said Budd. Losing will be expensive, both financially and image-wise. Losing the case will give credence to the allegations and "elevate the anarchists to stars," he said.
If McDonald's thinks selling salads constitutes social responsibility, they must figure clean bathrooms deserve the Nobel Prize.
When asked why McDonalds isnt doing more about a number of issues -- including buying organicallygrown food, building more energy-efficient restaurants, paying employees better and reducing environmental impact the companys answer included a perky assertion that Mickey-Ds food choices prove its commitment to being a responsible corporation: Over the last three years, we have introduced many new food items that offer more choices for everyone. The salads are terrific! New grilled premium chicken sandwiches. Apple dippers. ... we are putting nutritional information on our packaging to help educate our customers.... So we think we are leading our industry in offering a range of products that can fit into our customers' dietary needs and helping them make informed choices. I certainly give McDonalds big kudos for facilitating an interactive dialogue with its customers and detractors. But answering a direct question about social and environmental concerns with a marketing brochure defeats the purpose.
McDonald's dishes up PR entree to fast food film Eric Schlosser in Sydney to promote his film.
Photo: Peter Rae
IT'S just a happy coincidence, according to McDonald's public relations team. The fast food giant's nation-wide campaign encouraging consumers to ignore the negative publicity surrounding Fast Food Nation has nothing to do with the film's release in Australia next month. Nor does it have anything to do with the arrival in Melbourne this week of Eric Schlosser, author of the top-selling book of the same name, which caused a stir when it was released in 2001. McDonald's spokeswoman Sarah Gibbons said the campaign had been planned for more than six months. It had nothing to do with the film, which McDonald's dismisses on its website as a "fictionalised thriller" . McDonald's insists its TV and online campaign, which urges consumers to "make up your own mind", is about educating the paying public. But Dendy Films, distributor of Fast Food Nation, thinks otherwise. Marketing and publicity manager Nicki Martin said the timing was revealing. "The fact that this marketing campaign launched the very week before Eric Schlosser arrived in Australia to promote the film is definitely no coincidence," she said. "And they did the exact same thing for Super Size Me." The Morgan Spurlock film, Super Size Me, hit cinema screens in 2004. Ms Martin said the star power behind Fast Food Nation - which stars Greg Kinnear, Ethan Hawke and Patricia Arquette - would add weight to debate on the global obesity epidemic and the place of fast food in people's diets.
She welcomed the McDonald's campaign. She said the publicity would only add to the film's profile. "All (McDonald's) are doing is creating another situation where they are generating this incredible exposure and awareness about a film that wouldn't necessarily get the same interest without them bringing the public's attention to it," she said. Choice food policy officer Clare Hughes said while the fast food chain was offering more healthy alternatives on its menu, the "make up your own mind" campaign should be seen for what it was. "Our concern is that it is a PR exercise. McDonald's is wanting to dispel some of the negative perceptions about their product, but essentially it is not licence to eat unlimited amounts of McDonald's. It doesn't make their product any healthier or better for you." Since Super Size Me, which sparked worldwide criticism of the hamburger giant for marketing calorie and fat-laden food to children, McDonald's has eliminated "Super Size" portions of French fries and soft drinks, and produced marketing and advertising material promoting physical activity. Next month McDonald's Australia will introduce "percentage daily intake" information on packaging informing consumers what percentage of their total daily intake of energy and nutrients are in products, including burgers, fries and salads. Fast Food Nation screens in Australia from October 26.
Shameless staff and Social Media foster fast food PR disasters april 23
Filthiest McDonald\s restaurant in world
The power of social media to unravel reputations has again been amply demonstrated with shocking footage emerging from fast food outlets in North Carolina, USA and in Adelaide, Australia. Staff at Dominos Pizza and McDonalds have let their employers down with in one case malicious hygiene stunts and in the other, lack of attentiveness re standards of restaurant presentation. Two US Dominos Pizza staff are facing criminal charges after posting an appalling video of a staffer passing wind on a sandwich and shoving cheese up his nostril. In Australia, diners branded a McDonalds restaurant as the filthiest fast-food joint in the world; in both cases heritage media has picked up and run with these bad news balls. From a PR/crisis management viewpoint, Id contrast the way the companies have responded to the damaging footage. In the States, a honcho from Dominos uploaded a SocMed-friendly video addressing the issue, slamming the staff and
apologising to the franchisee and public for the incident. All I can see from McDonalds in Oz is a bald statement from a PR saying McDonalds prides itself on the highest standards of cleanlinessyaddayaddazzzzzzz A picture still paints a thousand words, so does Maccas response say theyre not concerned by this coverage (almost 150,000 online views plus TodayTonight national TV coverage), or does it say McDonalds Oz dont yet know how SocMed works or how to upload credible corp responses to the new media channels?
Conclusion
By going through the whole project on PR of McDonalds we are in a kind of soup there is strange behavior on both sides. People do like policy and practices quite clearly yet the business is expanding till the extent that it receives an award for growth ACG Chicago Honors McDonald's Corporation with Outstanding Corporate Growth Award Oak Brook-based McDonald's honored for resurgent growth. Chicago, IL, February 07, 2008 --(PR.com)-- The Association for Corporate Growth Chicago (ACG Chicago) today announced that it has selected McDonald's Corporation as recipient of the Outstanding Corporate Growth Award for 2007-2008. ACG Chicago the premier professional organization focused on corporate growth, corporate development and mergers and acquisitions selected McDonald's for its iconic status in the Chicago business community and its global resurgence. ACG Chicago will honor McDonald's with this distinction at the Outstanding Corporate Growth Award Luncheon on Feb. 19 at The Standard Club in Chicago. Chris Pieszko, senior vice president of finance strategy, will accept the award on McDonald's behalf. As this years winner, McDonald's join an esteemed list of past recipients, including RR Donnelley (2006-2007), Fortune Brands, Inc., (2005-2006), Alberto Culver Company (2004-2005) and Biomet, Inc. (2003-2004). The projects before us have came to conclusion that PR is backbone but we cant say the same about McDonalds and that why we are in a soup. Before this we had NO doubt PR is important for mere existence but after what we have seen in McDonalds we have to consider that PR is an exercise to keep the image clean rather that to communicate the truth. We also want to mention that the above cases maybe nothing more than false accession for financial gains and have cause grave damage to company but still even after so much damage the mere existence of company cases us to think if PR is make a image or to clean it?
Bibliography:Searched via Google and yahoo Page no 1 to 6 from MBA reports from Scribd.cm Page no 7 to 9 from www.aboutmcdonalds.com McDonald's admits using beef fat for 'vegetarian' french fries http://www.telegraph.co.uk/news/worldnews/asia/india/1331625/McDonalds-admits-using-beef-fatfor-vegetarian-french-fries.html McDonald's is in PR pickle in U.K. http://www.mcspotlight.org/media/press/prservices_dec95.html Liebeck v. McDonald's Restaurants Www. Wikipedia.org McDonald's dishes up PR entree to fast food film http://www.theage.com.au/news/national/mcdonalds-dishes-dirt-on-fast-foodfilm/2006/09/26/1159036547348.html Shameless staff and Social Media foster fast food PR disasters http://prdisasters.com/shameless-staff-and-social-media-foster-fast-food-pr-disasters/ McDonald's Shuns Miracle Weight Loss Man http://gawker.com/5017175/mcdonalds-shuns-miracle-weight-loss-man ACG Chicago Honors McDonald's Corporation with Outstanding Corporate Growth Award http://www.pr.com/press-release/71047