Marketing Excellence Case: >> cDonalds

Cham Lee Peih Hiew Fei Shun Lee Wen Hong Lee Shook Yee Nyon Pui Wai Tan Kim Foo Prepared by: (GM04398) (GM04344) (GM0xxxx) (GM04387) (GM04382) (GM0xxxx)

Core Brand Values

32, 000 restaurants in 118 countries. Serves 58 million of people each day. 75% are franchise restaurants

Service type
Simple Easy Fun/enjoyable

Quality Service Cleanliness Value Framework Plan to Win hot, high quality food, great value and convenient

Brand Value

Customer approach

Core Brand Values

All time favourite: Big Mac, Quarter Pounder, Happy Meal, Filet-O-Fish, Egg McMuffin Premium - Angus burger Coffee line McCafe (affordable speciality coffee) Healthy food Salad, all-white-meat McNugget

Promotion Activities
Advertising Campaign targeted at children & families. Ronald McDonalds, Grimace, Hamburgler, Mayor McCheese Slogan: Im Loving It

Ronald McDonald House Charities CSR that strives to improve childrens lives.

Menu

CSR

Core Brand Values Evolved

Customer Approach
Previous: Quick and Cheap Now: Hot, speed, high-quality, great value, and convenience [Plan To Win]

Food Choice

Previous: beef menu, Super Size & focus on walk-in purchase Now: Less beef more chicken options, Eat for health concept, & drive-thrus services

Targeted Market

Previous: Children and families Now: Children, families as well as higher end market but with less expensive specialty coffee drinks and burgers e.g. Angus burgers & McCafe.

Packaging

Previous: No focus/strategy in this area Now: Create unique personalities for our menu items by telling a story about each one. quoted by Mary Dillon, McDonalds Global CMO

Marketing Strategy
Marketing Strategy should change in response to shifts in the Global Economy

Keep our brand relevant Global brand promise alongside adopting a more localized strategy in individual markets e.g. the Plan to Win $1 menu & cheap combination meals Great value meal menu Quality food at lower price Give customer better value

Entice consumers away from $1 special Shift from Super Size to More Buys thru introducing new items e.g. coffee, smoothies New initiatives include opportunities in chicken, breakfast, beverages and snacking options

Recession

Economy Recovery

Future risks/challenges:
Lost focus and direction
Lack of control on food quality, consumer preferences, customer service, operation management.

Lost of customer
Bad consumer experience Consumer taste changed

Competitors
Major competitors E.g. Burger King ,Carl Junior, Jollibee, KFC, Subway, Wendy's McCaf coffee line Vs. Starbucks

Food price
Cost of food increased may affect to target-lower income consumer E.g. Set lunch meal

Country culture & localization

Serving menu that appeal to local taste and cultural preferences E.g. Premium M burger in France, Bacon roll breakfast sandwich in UK. E.g. Prosperity burger (CNY , Msia), GCB burger (Hari Raya, Msia)

Future risks/challenges:
Perceived as unhealthy fast food
Children are prohibited to go to McDonalds by their mums due to its high calories and high fat food menu. Stagnant in sale growth

Its market penetration will become saturate. New ideas and innovation are essential to create new needs.

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