McDonalds Marketing Campaign - Case Study Example

You're 17th April 2006 Marketing McDonald's has been a success story, which many Business Schools teach to their for Management and Marketing courses. It all started with Ray Kroc, the person who had conceived this idea, and nourished it into one of the biggest fast-food chains in the world. McDonald's is the undisputed king of burgers. Mcdonalds started with a firm commitment to QSC&V (Quality, Service, Cleanliness and Value) principle, which was an instant hit. Without a doubt the base of McDonald's success was in substituting the conventional China glass that people used in other restaurants, for the paper bags. Ray Kroc saw early on what needed to be done. He changed what was at one time a product orientation, into a marketing orientation. Back in 1955, this was still a new type of management.( Kroc 185-217) From the beginning, Kroc was already in the forefront of marketing. Ray Kroc founded the McDonald's way back in 1954 that worked as a single restaurant till 1955 but soon Kroc thought upon the idea of franchise-system. By 1974 the Brand Mac has already become a name to reckon with from its first Woodwich High Street in South London. Each succeeding generation since then saw the McDonald's hype increase and permeate almost every body's life in a few decades. For such a great hype however the McDonald's cannot be held the sole responsible. The people enjoyed the freedom that the Mac provided with-a release from sheer labour of preparing the foods three-times a day. If the Mac rationalized the trend of serving, the people welcomed with even greater response. McDonald's uses a theory referred to as relationship marketing. Relationship marketing is defined as marketing to protect the customer base. The customer is viewed as an asset and the company's marketing goal is to attract, maintain, and enhance customer relationships. McDonald is facing a major attack on its brand from anti-globalisation and other pressure such as, United Poultry Concerns- (www.upc-online.org). They are going after McDonald's because they think it has deep pockets. So far the company has been able to use finical marshal to fend off attack. The litigation cases in the United States against McDonald so far has been settled out of courts and the courts have thrown out most of them. Kids represent an important demographic to marketers because they have their own purchasing power, they influence their parents' buying decisions and they're the adult consumers of the future. With this in mind, McDonald, like many other manufacturers are using various marketing and communications strategies to encourage children and adults to buy their products. The McDonald's new mantra, other than the diet is 'Go Active', 'Eat Smart' and 'Be Active'. Now Dr. Cathy Kapica and Anita Bean are more concentrating on the Happy Meal with emphasis on to keep the customers healthier, free from risks of weight gaining. McDonald's is now an organization by itself. It is 'the process by which the principles of the fast-food restaurant are coming to dominate more and more sectors of American society as well as the rest of the world' ( Greider 13-88). It's affected all walks of life-education, work, travel, the family and every other sector. In trying to connect the brand with the consumer, McDonald has teamed up with pop star Justin Timberlake to shed 'new breath of young and coolness t' to the brand. As part of McDonald's multi-dimensional global relationship with superstar Justin Timberlake, the company announced today its sponsorship of the "McDonald's Presents Justin Timberlake lovin' it live" concert tours. McDonalds implemented the latest technology into it's business to gain more market share. McDonald's implemented a new computerized logistic system which makes it possible to transport materials, components and products with far greater speed and at much lower cost as a result of developments in road, rail, sea and air transport. These improvements in transport have also increased the amount of new subsidiaries opened around the world. For example, in post Soviet Union countries patterns of food consumption have altered. In the markets for fast food its consumption has increased, partly as a result of the increased mobility that modern transport systems have brought about. McDonald's has a history of providing nutrition information to customers through in-store brochures, educational programs or interactive websites. The company is launching an advertising campaign to remarket the brand, together with a change in store design. It is getting rid of plastic seats and introducing fruit, organic milk and baguettes. McDonald's is ditching its packaging and looking to adapt burger cartons to its increasingly popular dining environment -- the car. It will print healthy lifestyle messages on coffee cups in "did you know" style and will give the calorie counts for burgers and fries on its paper trays. "Promoting a healthy active lifestyle is going to be a bigger part of our strategy," says Smyth. "Packaging is a great way to educate customers." (Johnson 142-185) Despite concerns about excess packaging, consumers today are more willing than in 2000 to try a new product if the packaging is interesting and are more willing to buy products that have attractive packaging, while more accept the association between the packaging and the product's image. This is good news for those involved in the design of packaging, but it clearly needs to be seen in the context of concerns about the overuse of packaging. Despite success, McDonald': faces tough competitors such as Burger King, Wendy's, Kentucky Fried Chicken, and now also Pizza Hut. And fast food in re-heatable containers is now also sold in supermarkets, delicatessens and convenience stores, and even gas stations. McDonald's has done very well, with a great percentage of profits coming now from international operations. McDonalds has not changed because it wanted to, it changed because the market is not the same as it was in 1953, but can this success continue Although times have changed, technology has played a pivotal role in the rapidly changing world, but one thing has remained constant and shall remain the same in the future too, which is "Customer Focus" (Macarthur 23-31) Although McDonalds has tried to play with various marketing and advertising techniques, but the core focus has remained the same throughout these years, believing in the "customer first" approach. Works Cited Greider, William Victory at McDonald's. Nation, 2003 Vol. 277 Issue 5, 13-88 Johnson, J., Scholes, K. (1993) Exploring Corporate Strategy, Prentice Hall. Pg.142-185 Kroc, Ray with Robert Anderson, 1987. Grinding It Out: The Making of McDonald's. Chicago: St. Martin's Paperbacks, Pg. 185-217 Macarthur, Kate Mcdonald's Flips Business Strategy, Advertising Age, 2001, Vol. 72, Issue 14, 23-31 United Poultry Concerns, www.upc-online.org accessed on 17th April 2006 Read More