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Mc Donalds Presentation
McDonald’s
Repositioning the Golden Arches
01/30/2013

5.

“In the middle of difficulty lies opportunity”
- Albert Einstein

Mc Donald’s is Global-and in Your Hometown
         Leading global foodservice retailer More than 34,000 restaurants with 1.4 million employees Serving nearly 69 million people in 119 countries 80% of restaurants are franchised (Business model) Strategic Direction: “Plan to Win” (execution of 5 P’s) and “System Partners” (Franchisees, global suppliers and Workforce) Global comparable sales growth 5.6% Top performing company in Dow Jones Industrial average (1.5 M shareholders by Jan. 31st 2012) Ranked #2 in Fortune magazine among “Management Quality” and “Global Competitiveness” Sustainability and charity efforts (About Mc Donald’s, 2013)

Wedding Party in Hong Kong

Q1-What environmental trends have challenged Mc Donald’s?
 New arrival into the market: Subway, Pret a Manger, Benjys Starbucks, Costa Coffee = more pressure to defend market share  Healthy eating awareness among competitors: Quiet revolution, Eat and Love Juice  Series of health scares: Bird flue, BSC crisis, swine flue  Rise in levels of childhood obesity (Marketing Week, 2005)  Lawsuits: obesity and heart problems of 2 teens and Mc Donald’s coffee case (Consumers Attorneys of California,2011)  Media influences- TV chef Jaime Oliver & film "Super size Me“  Opening many restaurants rather than growing the overall market- “Quantity over quality”

Q2-Repositioning and Assessment
PRODUCT Similarity Similarity TARGET MARKET households earning less than $60,000 per year Global advertising Campaign Social Media •Advertising (I’m lovin’ it) •New look (every 3y) •Sponsorship •Bloggers Sustainable product • Organic coffee • Free range eggs • Fairtrade milk Differences Revising menu •Smoothers •Premium product • limited edition offering

Differences

Health nutrition •Introduction fruit and vegetable product; •healthy snacks

McDonald’s


References: - Jobber, D. and Chadwick, E. (2013) Principles and Practice of Marketing, 7th Edition. London: McGraw-Hill. - McGinley, H. (2012) McDonald’s national movement gives local leadership hope for healthier tomorrow; Virginia: The Health Journal. - Murphy, P.E., Laczniak, G. R. and Prothero, A. (2012) Ethics in Marketing: International Cases and Perspectives. New York: Routledge. - Wallop, H. (2010) McDonald’s now biggest seller of coffee in UK. The Telegraph: [Online] Available from: < http://www.telegraph.co.uk/finance> [Accessed 29 January 2013]. - Allegra Strategies Limited (2010) ProjectCafé10 UK [Online], London: Allegra Strategies Limited. Available from: < http://www.allegrastrategies.com/Publications/Project-Cafe10.aspx> [Accessed 29 January 2013]. About Mc Donald’s (2013) Our Company [online] available from [Accessed 29 January 2013]. - Anonymus (2005). Who Cares Wins, But is There a Hidden Agenda? Marketing Week, 28 April. - Ladika, T. (2013). Healthy menu items contribute to profit rise for McDonald 's. Michigan: The Michigan Daily. - O’Brien, K. (2012). How McDonald’s Came Back Bigger Than Ever. New York: The New York Times. Thank you Gracias Рахмет! Danke Cпасибо Merci शक्रिया ु Grazie Xiè Xie Kam-sa-ham-ni-da
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