History and marketing strategy of McDonalds

Introduction: McDonald's

McDonald's is an internationally franchise restaurant, serving almost 47 million customers per day. (www. mcdonalds. ca) Thus, it also identified by the golden arches. (encyclopedia2. thefreedictionary. com) McDonald's provides fast foods such as burgers, French fries, etc. They serve the entire world some of the favorite foods such as World Famous Fries, Big Macintosh personal computer, Quarter Pounder, Chicken breast McNuggets and Egg McMuffin. (www. aboutmcdonalds. com)

1. 1 Background of McDonald's

In 12 months 1940, McDonald's Bar-B-Que opens in San Bernardino, California, by Dick and Mac McDonald. After a three-months shut down for alterations, McDonald's has reopens as a self-service drive-in restaurant, which includes included to nine items, plus they got the World Famous France Fries by replacing potato chips into French fries. (www. aboutmcdonalds. com) In time 1955, the first McDonald's restaurant has opened in Des Plaines, Illinois, plus they acquired $316. 12 of sales in the first day and the McDonald's Organization was created. Furthermore, in yr 1958 and 1959, McDonald's has become very successful as they had sell out 100 million hamburgers and possessed opened up 100 restaurants, and by season 1963, McDonald's has opened up 500 restaurants. (www. aboutmcdonalds. com) McDonald's start to promote Hamburger School and indoor seats restaurant in season 1960's, plus they started to go internationally in year 1967.

The first McDonalds' restaurant in UK was wide open at Oct of 1974, that was the 3000th McDonalds' restaurant on the globe. The location of the first UK McDonald is Woolwich, south east London. Presently, in line with the Annual Article of McDonald's in yr 2009, McDonald's has getting ultimately more and more outlets, on the finish of calendar year 2009, there are 32478 McDonald's restaurant in 117 countries where 26216 restaurants were handled by franchisees and 6262 were controlled by the company. And UK has a complete of 1115 McDonald's restaurants. (www. nationmaster. com) Additionally, matching to www. mcdonalds. co. uk, there are almost 1200 restaurants can be found in variety of location such as shopping centers, leisure centers, airport, railway place, traditional high streets, retail parks, roadside, and motorway services areas. It has shown the progress of McDonald's from a drive-in and carhop service, into an internationally franchise fast food restaurant.

1. 2 McDonald's Great Britain - The Turnaround Summary

McDonald's in UK growing perfectly nevertheless they were also experience a slack period in 12 months 2003 and 2004. You will discover many reasons that cause these slack. With the low barrier of access in food & beverage market, McDonald's has started to have significantly more and more challengers. New F&B chains such as Yo! Sushi and Nando's Chicken Restaurant have outpaced McDonald's. Furthermore, Subway Restaurants are bringing in customers with the healthy fresh food; and Starbuck has made McDonald's stores look out of time frame.

McDonald's has its day and is now on the slippery slope to oblivion. There are numerous negative factors cause the increased loss of trustworthiness of McDonald. The best-selling e book, Fast Food Nation, said that McDonald's meat patties could come from up to 100 different cows; an professional in popular company, Super Size Me personally, did nothing at all except eat at McDonald's for a month cause his medical condition; the released documentary, McLibel pitted McDonald's against two Greenpeace activists. Although there are extensive negative issues occurs, but nonetheless involve some positives announcements from McDonald's, which is $118 million income each year and it still the main food brand.

There are steps that used by McDonald's have to reserve the development. You will find new healthy quality recipes provided by McDonald's, which is to satisfy the demand of customers. Nutritional information is provided to let customer know better what they are eating. New label range "McDonald's --- However, not as you know it" show the healthy meals such as salad and fruits. Besides that, McDonald's is serving coffee made form newly ground Kenco coffee beans. Result show that they are selling best for their new products.

As for the feedback from the recently appointed CEO of McDonald's UK, they are not going to change even the world is changing. There will update the McDonald's experience and give more values to their customers. There are going back to the basics on the service area, know very well what the customers' problem and needs, for example make McDonald's UK as breakfast restaurant. After five consecutive many years of sales decreases, in 2007, sales were up 4. 6 percent with considerable in market share. This positive respond has shows that the steps taken by UK management were beginning to pay off. They perform many occurrences such as change their menu and include healthy options, menu changes to suit the local flavour, new designs of restaurant prospect and staffs outfits, and launch promotional initiatives to counter negative images of McJobs. McDonald's UK vice leader said the marketing campaign is not being done, because it is difficult to appeal to customers who already have strong negative understanding on McDonald's.

2. 0 Question 1

Identify the problems confronting McDonald's, U. K. and list them from the most to the least critical. For every problem identified, explain your reasoning.

2. 1 Negative Images & Impressions from Mass media, Documentary, Press and others

The most significant problem that McDonald's U. K. encounters is the impact of negative news and documentaries that exploit the lack of health in their menu. Using the rise of vegetarianism and inexperienced or natural diets, the needs of the nutritional balance of foods are incredibly high. Therefore, McDonalds are no more satisfied those customers, as consumers are be inspired by the multimedia, documentary and presses. The bestselling publication "Fast Food Nation", which uncovered about the mad cow disease that doubts consumer from purchasing McDonald's. Nevertheless, the beef or patties in McDonald's can come from up to 100 difference cows. In addition, the strike film "Super Size Me" was a substantial affect against McDonald's as it offers convincing data against the food they provide. A documentary, McLibel has also recounts and reopened McDonald's old wounds, and it influences the image of McDonald's.

2. 2 Health Issue

British government aspires to reduce child years obesity. That they had the coverage to prohibit various tv channels to try out any "junk food" advertising before 9. 00 pm, and to decrease the opportunities for children to view these advertisements, which McDonald's is one of them. According to the British isles experts, cola, carbonated drinks, candies, French fries, poker chips, hamburgers and many other high sweets or high-oil food, salty treats, are the primary culprit to cause teenagers obese and obese. Based on the British government radio, television, and communication sector Ofcom information, it has demonstrated that 70% of UK school-age children watch Television between 6 pm to 9 pm, which more and more people obese because of eating too much snack foods and insufficient exercise. THE GLOBE Health Group warned that the overweight has serious effected the global health insurance and economic development. Furthermore, not only about health conscious, the meals that functions in McDonald's is missing its quality and benchmarks, which is also a drawback for McDonald's.

2. 3 Structure, Design

Another problem confronting McDonald's U. K. is their structure and design of the restaurant. Based on the research study, it is observe that Starbucks has made McDonald's stores look sterile and outdated. There are plenty of McDonald's customer had been fascinated by the Starbucks outlets. According to Clifford Burrows, the general manager of Starbucks U. K. , they take McDonald's as a rival, and as a result, many consumers will choose Starbuck rather than McDonald. The McDonald's restaurant design of yellowish, white, and red colorization with plastic material furniture has made people feel boring and dry. Due to the tendencies, consumers need different things and new that can renew them. Not only Starbucks, other restaurants nowadays equipped with a far more trendy and modern environment, in order to draw in more customers.

2. 4 Service Standard Decreases

Service standard is also one of the main role in every restaurant, however, McDonald's is facing problem on services that provided by the staffs and employees. Matching to Cateora(2009), it experienced stated that the shows on the assistance in McDonald's are chiseled. Meaning the assistance at McDonald's UK has been sliding. In order to keep customers come back, it is important to provide good services. It is because if customers are unsatisfied with the service provided, they'll not only just strolls away and never come back. They will start mouth-to-mouth complaining to their friends and family, in order that they won't go dine in McDonald's due to bad services provided.

2. 5 Competition

The junk food industry has becoming an increasingly competitive sector. Although McDonald's is the clear innovator of the fast food industry in terms of revenues made and restaurants set up, however they still faces competition from other junk food chains, such as Burger Ruler Organization, Wendy's International, Carl's Junior, Yo! Sushi, Jack port in the Field Inc, and much more. Other new chains which come into the market such as Nando's Hen, have outpaced McDonald's as well. Operators such as U. S. -founded Subway Restaurants are attracting their customers with fresh salads and sandwiches on focaccia bakery. Therefore, there's a need to keep up the benchmarks and quality in every sector of the restaurant, so that consumers won't change their focuses on by visiting other outlets, and become more dedicated to McDonald's.

Question 2:

Some problems you recognized in question1 may require a "magic pill" in the short run, while others may require a significant change in company strategy. Assuming that you cannot focus on all the issues at once, suggest the order in which the issue should be attended to and suggest a procedure for fixing each problem.

3. 1 Quality of Food

The most important issues that almost all of the consumers face is their menu, McDonald's used to be a very famous and delightful junk food restaurant, where their food is good in standard and quality. However, based on the case study, the majority of the problems that occur are about food. For instance, their bread flavour like cotton or wool, and the meat patty is lacking its consistency compare to days gone by. (Cateora, et al, 2009) Therefore, this is a need to increase the quality of these food, get back into their fundamentals, and gain back their old customers. McDonald's can also add in more options on the menu, so that customers can have more choices. For example, McDonald's breakfast is one of the nice starts, to provide more options to satisfy consumer needs and would like.

According to the case study, it has also mentioned that McDonald's has actually providing health food such as salads and fruits. However, the product quality is still lacking, because McDonald's is still a franchise junk food restaurant. As health food is one of the top things in the industry nowadays, it is important for McDonald's to handle medical value with their menu, and continue to add more light options. They can add in more selections and options for their salads and their dressings, salads without meat are motivated, to entice more vegetarians. Additionally, McDonald's can also make an effort to add in organic and natural foods into their menu, that will lead to a great boost on their business.

3. 2 Services

According to the case study, McDonald's services have been sliding; it has become inefficient and inconsistent, so as their sanitation. (Cateora, et al, 2009) Based on the case study, customers are outspoken and they criticize. Therefore, as the service in McDonald's is bad, customers will start criticizing the bad services provided in McDonald's, which finally affects the business to decrease. It's important to build up the services of their staffs and employees. Therefore, providing training for new and existing employees about how to treat customers is an outstanding step to consider.

Moreover, accepting the duty whenever there are customer support problems, and following through on disciplinary activities to be able to prove both customer and staff that McDonald's do take their customer services in a significant manner. Keeping the cleanliness is also very important as friends can dine in McDonald's in a more clean and comfortable environment. By doing so, you won't only reunite customers' satisfactions, they'll start mouth-to-mouth praising McDonald's services and makes them come and dine.

3. 3 Design/Layout

As mentioned previously, Starbucks has made McDonald's outlets look sterile and out of date. As comparison, the design in Starbucks is modern and trendy, while McDonald's still remain the old style- yellow, white, and red color with clear plastic furniture. It has showed that the design and structure in McDonald's has becoming boring, dried out and out to particular date. Therefore, it is a need to improve the designs in McDonald's, by making them into a more sophisticated and trendy such that it can appeal to customers to stay and dine in McDonald's. However, McDonald's is wanting to get into the trend by redecorate and refurbish their shops in UK. Therefore, it is very important for McDonald's to keep carefully the faith by putting trendy designs in the restaurant and in the same time remain their trademark such as the big yellowish "M", or the McDonald's clown.

Not just the restaurant design, the costumes and the uniforms is also one of the tools to help make the restaurant more trendy and modern. As an undeniable fact, if the restaurant design is modern and trendy however the service crew's standard is strange and out of fashion, it'll pull down the images of the restaurant as well. Moreover, service staffs not only dress in a far more fashion look, but also with the requirement that related to the restaurant. It is not to show that they look trendy and good, but showing how the way they dress as experts, which is part of the service that can pull attentions, as consumers need something difference and new that can refresh them.

3. 4 Culture

McDonald's is a franchise company that locates in worldwide; therefore, it is hard to keep the same procedure in every country, because different countries have their different cultures. Additionally, it is impossible to fix each McDonald's retailers in to the same culture. Therefore, it is recommend that McDonald's can in fact recruit menu, designs or even services that suits with the ethnicities in the respective location. In so doing, it can attract customers' attention because McDonald's gets closer to their culture not only on design but their menu options.

4. 0 Question 3:

By 2007, it seemed that the decision created by McDonald's U. K. management experienced begun to pay off. However, McDonald's U. K. still lags behind the performance of other region in the Western european section. Considering your responses to Question 1 and 2, identify issues that may still exist and suggest actions to be studied.

4. 1 Service

The quality of services in McDonald's continues to be a major issue as British people don't value people who work in McDonald's, because they mix up service with being servile. (Cateora, et al, 2009) Furthermore, for customers who experienced bad services from McDonald are will definitely preserves them remember how they been treated. They will continue to keep bad image in heart and soul although they received good services when they go to the second time. Therefore, as an indicator, McDonald's can run campaigns, events, or advertisements that can gain back customers to dine in McDonald's by reinforce the friendliness of McDonald's environment. It might not pay off immediately, but as the image of the friendly face of McDonald's is constantly on the get that promotion, customers will give them another chance and try.

4. 2 Quality of Food

McDonald's is a franchise restaurant, and it is hard to keep up the typical of the meals because their foods are constructed, and their food largely comes in iced basis. Therefore, the freshness with their food continues to be a limitation as it is produced and frozen. Keeping the standard of the meals, especially vegetable and frits is very important as they provide salads, fruits and smoothies, which needs to maintain its freshness. Healthy menu is very recommended to maintain and improve. Moreover, providing healthy selections that assists fast could turn around their bad health reputation very quickly. However, becoming the healthy choice for fast food is something that could established them, or any fast food restaurant, in addition to the rest.

4. 3 Bad Images That Created

As mentioned above, bad publicities such as Super-Size Me and JUNK FOOD Nation possessed created an extremely bad image and impression towards consumers. Additionally, to all whole bad images that created, it includes changed customers' belief that McDonald's is not a healthy food, so do other fast food restaurants. Therefore, keeping the beliefs and keeping their benchmarks of the menu is one of the encouraged solutions. In so doing, it will help to lead customers to change their perceptions that McDonald's actually do provide healthy menu.

5. 0 Conclusion

As bottom line, although McDonald's has become so successful as compare with the pass as yet. However, due to the expansions and innovations in the meals and drink industry, McDonald's has facing a whole lot of problems and hazards that affects their business as well as their income and profit. Things such as the increases of competitors, the negative publicities upon McDonald's, the quality of food and service, customer changes in preferences and more. All these are their ideal negatives that definitely impacts McDonald's image and for that reason it becomes down their business. As when each one of these threats are receiving increase, McDonald's is facing a huge decrease in earnings, plus they then start to put actions on it, to pull again the business. However, because of the bad images that has already created and customers' understanding on McDonald's has transformed to poor food, they find hard to turn their way back to what they used to be.

Due to the issues that occurred, McDonald's has attempting their best to further improve and keep maintaining their standard in menu, services, and environment, to get again customers' attention. They add up extra selections on the menu such as McDonald's breakfast time, and giving out fresh and well balanced meals such as salads and fruits. In addition, McDonald's also encourages special offers on the menu such as a greater burger. (Cateora, et al, 2009) They also changed their structure and designs in their restaurants and provide extra service such as free Wi-Fi services, to provide customers fresher and better environment to dine. (Cateora, et al, 2009) Although they provide out many ideas and strategies to get back their customers, they still need to put more efforts on it, to show customers they are improving. However, McDonald's is still many people's favorite food, and they'll be more successful if indeed they really put work for improvement.

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