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McDonald's North America Marketing Plan - Research Paper Example

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Marketing Strategy The marketing strategy of the company is based on building the company brand. Branding is a very effective strategy to increase the customer retention rate. A branding strategy works better when a company has a long presence in the market since it takes time to build up brand value…
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McDonald's North America Marketing Plan

Download file to see previous pages... The company currently has a global presence in 118 countries. Mission McDonald’s mission statement is to be their customer’s favorite place to eat (Aboutmcdonalds, 2011). The mission of the company is achieved by offering a wide variety of products at low prices that provide value to the customers. The firm is also able to achieve its mission by offering its customers a McDonald’s location near their homes. McDonald’s is the industry leader in both sales and number of outlets with 2010 sales of $24 billion and over 33,000 stores worldwide (Annual Report: McDonalds, 2010). The employees of the company are well trained to provide its customers with an excellent level of service that will keep them coming back for more. Marketing Objectives The marketing objectives of the company are to continue growing the brand of the company, to satisfy the needs of its customers, and to maintain its leadership in the fast food industry. McDonald’s invests millions of dollars each year to ensure its marketing objectives are met. The annual advertising budget of McDonald’s is approximately $2 billion (Chicagobreakingbusiness, 2010). No other company in the fast food industry spends as much on advertising as McDonald’s does. ...
An organic growth model can be defined as expansion of a firm’s operations from its own internally generated resources, without resorting to borrowing or acquisitions of other firms (Businessdictionary, 2011). The firm operating results have been outstanding with the company achieving sales growth for eight consecutive years. The appreciation of the company’s common stock is evidence that the company has increased the wealth of its shareholders. Appendix A shows the price movement of McDonald’s common stock during the past five years. McDonald’s common stock is traded in the NYSE under the symbol MCD. The price of the MCD common stock as of September 23, 2011 was $87.37 (Nyse, 2011). During the last five years the price of McDonald’s common stock has more than doubled. Another financial goal of the company is to increase its sales internationally. The aggressive expansion plan the company implemented decades ago has helped the company achieve that goal. Target Markets McDonald’s has a large target market. The firm has a product that can be consumed by people of all ages. The company over its long history has realized that the best way to build its customer base is by targeting young people including children. McDonald’s is the most effective company in the fast food industry at adverting for children. The Ronald McDonald character is beloved by American children. The company has done a great job at using this character in its children advertising campaigns. Customers that have a need to eat outside on a daily basis are the main target of the company. Everyone that has a full time job and eats outside at lunchtime on weekdays is a prime target of the company. ...Download file to see next pagesRead More
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