Prepared by:Cham Lee Peih (GM04398)Hiew Fei Shun (GM04344) Lee Wen Hong (GM0xxxx)Lee Shook Yee (GM04387)Nyon Pui Wai (GM04382)Tan Kim Foo (GM0xxxx)
Marketing Excellence Case:
>> cDonald’s
Core Brand Values
• 32, 000 restaurants in 118 countries.
• Serves 58 million of people each day.
• 75% are franchise restaurants
Brand Value
• Simple• Easy• Fun/enjoyable
Service type • Quality • Service • Cleanliness • Value• Framework “Plan to
Win” – hot, high quality food, great value and convenient
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
Menu
• Advertising Campaign targeted at children & families.
• Ronald McDonalds, Grimace, Hamburgler, Mayor McCheese
• Slogan: “I’m Loving It”
Promotion Activities • Ronald McDonald
House Charities – CSR that strives to improve children’s lives.
CSR
Core Brand Values Evolved
• Previous: Quick and Cheap• Now: Hot, speed, high-quality, great value, and convenience [Plan To Win]
Customer Approach
• Previous: beef menu, “Super Size” & focus on walk-in purchase• Now: Less beef more chicken options, ‘Eat for health’ concept, & drive-thrus services
Food Choice
• 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.
Targeted Market
• 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, McDonald’s Global CMOPackaging
Marketing Strategy
• “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
Recession
• 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
Economy Recovery
Marketing Strategy should change in response to shifts in the Global
Economy
Future risks/challenges:• Lack of control on food quality, consumer preferences, customer service,
operation management.
Lost focus and direction
• Bad consumer experience• Consumer taste changed
Lost of customer
• Major competitors E.g. Burger King ,Carl Junior, Jollibee, KFC, Subway, Wendy's
• McCafé coffee line Vs. Starbucks
Competitors
• Cost of food increased may affect to target-lower income consumer• E.g. Set lunch meal
Food price
• 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 , M’sia), GCB burger (Hari Raya, M’sia)
Country culture & localization
Future risks/challenges:
• Children are prohibited to go to McDonalds by their mums due to its high calories and high fat food menu.
Perceived as unhealthy fast food
• Its market penetration will become saturate.
• New ideas and innovation are essential to create new needs.
Stagnant in sale growth
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