Brand McDonalds - Assignment Example

Brand McDonalds Contents The Report 2 Framework in support of idea 2 Selection criteria and final choices of consultancies 5 The processes and planning involved in the proposed brand change 7 The Plan 10 The branding brief 10 Timeline, Design phases and brand rollout with chosen agency 11 Budget, scope, management and measurement of proposed brand reinvention 13 Conclusion 14 Referrences 15 Introduction Brand is anything and everything that identifies a product and differentiates it from that of other company’s products. A Brand may use name, design, term and distinguishable features to identify and differentiate a company. The huge Brands have the same fate as beauty queens. No matter how successful a brand is, it has to change over time to stay relevant. No brands have everlasting life. Big brands have to change their image to stay connected with their changing customers’ needs and expectation and to sustain their identity in the competitive world. In the following pages the brand of McDonalds’ the company with the golden arches is taken into perspective and analyzed in detail. The Report Framework in support of idea McDonalds and Golden arches can be said to be a beacon of success. As per 2011 it is the largest fast food chain. Its revenue as of 2013 is US $ 28.1057 billion. McDonalds’ has a good brand image and ranks among top ten in survey of most valuable company in the planet (McDonald Corp. 2013). However McDonalds is facing some peculiar problem. 1. It ranks quite low when compared to its rivals in factors of quality perception. 2. It has a new breed of customers with changing taste and preference and it has to keep itself relevant before it is too late or become history (Slama, 2014, pp. 9-11). Let us analyze the Brand management strategies of McDonalds through the lens of Keller’s brand equity model. Keller’s Brand Equity model Image- Keller’s model (Keller, 2008) Keller published this theory in his book strategic brand management. The theory of this model is pretty simple. It simply states that the company needs to redefine how customers think about their product for creating a strong brand. As per the figure there are four steps in order to build a strong brand image. Applying the models 4 steps in case of Mc Donald’ Step 1. Brand Identity Mc Donald wants to change its brand image in which it is identified as major culprit for the chronic obesity problem faced by US and other countries. In wants to reposition itself as a brand that makes nutritional foods instead (Doole and Lowe, 2008, pp. 42-44). Its recent advertisement campaigns focus on people and emotions. Even there is a change in the product line to include new and healthy products. Step 2: Brand Meaning McDonald looks at how the company can spread the message of its campaign and how is its brand perceived. In order to change perception about the brand the company has started a program called Happy Exercise and love touch health campaign (HEALTH) in association with WHO. To promote its changed brand image it has changed it’s advertise styles (Dend, 2009, pp. 15-16). Nowadays the focal theme of its advertisements has changed from products to human values. Through its advertisements it wants to project itself as a health conscious brand by showing that starting from the procurement sage everything that it does is keeping in mind health concern. Step 3: Brand Response After going through media reports, internal surveys, and government’s rules and regulations Mc. Donald has found out that people generally associate with the company unhealthy lifestyle practices and resulting obesity problem (Bull, 2013, pp. 26-29). In certain countries even it had to face government litigations. In order to change all this and stay relevant to the current new breed of health conscious customers it has decided to reinvent itself in several ways. It had decided and has introduced new items in its menu such s happy meal, veg. Sandwiches, salad menus to promote healthy eating habits (Assael, 2005, pp. 7-9). It has changed its advertising strategies and now promotes the fact that its foods are procured from healthy sources etc. Step 4: Brand Resonance In order to improve relationships with its customers and to promote its new brand image, it has started story telling in its ad campaigns to increase connectivity with the younger generations by telling them how McDonalds’ is preparing their food and the sources they are using to procure foods. Secondly they are trying to improve connectivity with the older generation (Cowan, 2014, pp. 46-47). To improve its connectivity with its new breed of customers it has launched a highly successful digital platform in its Canadian store called “our food your questions”. Selection criteria and final choices of consultancies Before selecting a brand consultant the first thing to identify is what is the need of brand consultant? That is the first thing to identify need of reinventing the brand (Onkvisit and Shaw, 2009, pp. 18-19). Is it required to reinvent the brand to thwart the threat of a new entrant? Does it need to reinvent itself to keep it relevant to new breed of customers? Is the reinvention necessary because there is some negative publicity and the company wants to change its image in the minds of the public? In case of McDonald it is found that the company wants to rebrand itself because of the following reasons. It wants to reinvent and reposition itself as environment and health friendly company (Barriaux, 2007, pp. 10-12). The company wants to remove all the negative publicity about the company and prove that they are different and they care. The company wants to change its image from just a fast food chain to a family owned restaurant. The company wants itself to be perceived not just a burger company but as one providing variety of food options (Arcature and Arcature, 2009, pp. 61-62). Next step is to identify what are skills and competencies of a particular consultant? That is the consultant suitable for the particular exercise that McDonalds wants to undertake. What are the main qualities of the employees in the particular consultant? What type of work they have done in the past are also important questions to ask for before selecting a particular consultant. While searching for perfect brand consultant for rebranding McDonald and reinventing their image to the new breed of customers, the Company may choose between no. of Brand consultants (Franzen and Moriarty, 2008, pp. 72-74). The lists of Brand consultants from which they may choose are Wolff Olins Besides being counted as one of the top 10 brand consultants another reason to choose this particular concern is because they have dealt with similar brand reinvention strategy for GE and AOL (Wolff Olins, 2014). In both of those works they had to reinvent the respective brands to keep it relevant to the present generation (Kotler, Lee, Farris, et al, 2010, pp. 84). Brand Union This has a higher rank as compared to Wolff Olins in the list of top 10 Brand consultants. This company has also worked in Brand reinvention strategies before with Vodafone and Bank of America. It has worked with Vodafone and is continuing to do so help the company reposition itself as not just a technology provider but as a service provider company (Brand Union, 2014). Besides Brand Union has a global presence and it will be able to properly guide McDonald as it tries to create a proper market position in the Brick countries. The processes and planning involved in the proposed brand change In order to stay relevant in the current market scenario and to attract its new breed of customers of the twentieth century, it is clear that the company has to reinvent itself. Before it starts reinventing company can do a SWOT analysis to know its current position. Additionally the company can organize market surveys and scan media for reports and other valuable titbits of information (Hill and Jones, 2011, pp. 36-38). A market survey will help the company to understand the market scenario and optimise the available opportunities. At the planning stage such initiatives will cater as the foundation stone before implementation of the planning process. A suitably constructed planning process will be beneficial for the company. A Swot analysis of its current position is as follows. SWOT analysis Strengths With its sprawling network of 33,000 restaurants in 110 countries it is one of the largest fast food chains in the world. It has its presence in list of top ten brands in the world. It has strong financial performance. Weaknesses Besides offering a variety of menu options it is still identified as a burger special restaurant and is associated with obesity threats. While comparing in quality terms with its competitors it constantly ranks near the bottom. McDonalds does not include special dish for different countries in the list of menu items. Opportunities New breed of health conscious customers. To project itself as not just a fast food chain but as a family restaurant Threats Government ruling against McDonald and its products. Newer fast food chains with different and newer product categories. After analysing the SWOT it is found that McDonald’s major weakness and threat lies in making it relevant and acceptable to the new breed of health conscious customers (Pahl, and Richter 2009, pp. 55-57). Additionally Mc Donald has to break free of its image as only a burger and French fries company. To do this McDonald has to reinvent its brand image. One way it can do this is by actively supporting organic farming and introduces a visible change in its menu items by including more healthy items (Solis, 2013, pp. 19-21). For its French fries and burgers it can research on using newer variety of oil and other ingredients that goes into the making of its recipes having no less cholesterol content at same time maintaining the taste factor intact. For its outlets in BRICK countries it can introduce newer menu items catering to the tastes and preference of the people in the BRICK countries. McDonald can additionally go in for review of its food it’s to check for their nutritional values by a dietician of international repute. The results obtained from the survey can be then published on its website. Additionally the company may include product’s nutritional information in the menu and the wrappings used to wrap its products. The company may also include a free health check-up of its customers and suggest those meals accordingly (Arnell, 2010, pp. 92-93). After doing internal changes McDonald must go in for advertisement and propaganda to depict its changes to its customers. In its new ad campaigns it can use storytelling to better connect with its customers and their emotional values. It can modify its ad campaigns and other promotional strategies to project itself as a restaurant company and not only as a fast food chain. McDonald can also include subtle changes in the logo of the company to project its changed image (Rolfes, 2009, pp. 79-80). The Plan The branding brief McDonald has traditionally used to brand themselves as a product centric company with most of its commercials focussing on products. Additionally they have used the tag line ‘I’m loving it’ and their joker as mascot to target the children and make an emotion connect with them. However they have changed their logo over a few times in the years it has been in existence. Now a day’s however due to increased pressure for healthy foods McDonald has to changing its branding and advertising strategies. The focus has shifted to what we’re made of. It has additionally to connect with a new and emerging customer base. To do these changes in its Brand reinvention they have changed their ad campaigns. Now days the ad campaigns focus more on human relationships as compared to earlier campaigns which focussed on products (Pride and Ferrell, 2012, pp. 61). Additionally to counter several negative and criticize remarks about the company and its meals doing rounds in the media including a documentary called super size me it has introduced positive changes in the organization by introducing newer and healthier items in its menu. In its newer advertisement campaigns it has also focussed on the issue how it is using sustainable farming to produce its items. It has also engaged in storytelling to engage at emotional level with new breed of consumers. In certain stores like its Canadian outlet it has engaged with customers through digital forum with question like our food your questions. Additionally it has revamped certain stores so that they look new and have the feeling of restaurant so that large number of customers may come in (Solis, 2013, pp. 45). Timeline, Design phases and brand rollout with chosen agency The Process of repositioning and reinventing the McDonalds brand image is a long process and will involve working both inside the company and then projecting the work done to the outside the world. The strategy for McDonald should be to leverage its strength to overcome its weakness and then aim at turning its threats into opportunities. It has its presence in more than 110 countries but its recipe features only that of the American home company. So to increase its connection and attract more customers in those countries it has to engage with its customers of those countries (Enz, 2009, pp. 17-18). In the first month or so the campaign should focus on including variable and customizable menu items rather than readymade menu items it currently offers. Secondly it should include nutritional information with each of the items it sells (Kotter, 2008, pp. 39-41). The first few months should be devoted to work on websites. The websites of each country should reflect something about the country. For example Hofstede model can be applied in this case to understand different factors of the model for a particular country and Pepsi can be considered as an example. Factors PDI IDV MAS UAI LTO Germany 35 67 66 65 31 India 77 48 56 40 61 China 80 20 66 40 118 In addition to developing and revamping the website at the front face of the company at the background newer items to be included in the menu that reflects the culture and cuisine of that country. In this case Pepsi’s case may be emulated. Pepsi introduces a potato chips flavour in china which has a flavour of shredded cucumber modelled after a very popular Chinese dish and is its top selling product in the Chinese market (LO, 2013, pp. 4-8). In addition to building its overseas market McDonald should not lose focus of its home market and its traditional menu. In its traditional menu it should include more items that are aimed for the health conscious individuals. This is a long term and continuous process and involves many years of dedicated work (Mathis, 2011, p. 29). Another thing that involves lot of research is identifying how to make its products so that they have less cholesterol content. This process may involve work for about 1 year or more. Time period Particulars Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Change in menu items Website development Introducing new menu items Introducing healthy menu items Introducing changes in menu card to reflect nutritional information Continuous research on healthy food Budget, scope, management and measurement of proposed brand reinvention The budget for the brand reinvention project can be easily financed because the firm enjoys a good financial position (Batey, 2012, pp. 56-57). Still the project may be divided in several pats with the parts that requires up to one year time may be financed now and its efforts be seen at first before continuing its efforts for other areas which requires long term focus. An additional strategy may be to implement its strategies for one market at a time. To know whether its strategy is working for a particular market or for all markets in general or having any positive effect on the psyche of the customers it can include indicatives such as customer feedback form (Middleton, 2012, pp. 46). Additionally they can invite the customers to share their choices about what they would like to see in their McDonald menu or what positive changes they would like to see at McDonalds? Conclusion In the case study it was found out that almost all leading brands need to reinvent themselves to stay relevant and to remain in the psyche of the customers. Otherwise it will be part of History. The fact that McDonalds has been able to retain its position for so long at the top is because it has reinvented itself from time to time. Currently the company has faced a lot of negative publicity for being solely responsible for making junk foods and causing obesity problems. So it is being somewhat forced to reinvent its brand image to cater to a new breed of health conscious customers. How it will reinvent itself has been discussed above in detail and which brand consultant will it enlist for the purpose is also discussed. Referrences Arcature, L.L. and Arcature, J.K., 2009. Six rules for brand revitalization: Learn how companies like McDonald’s can re-energize their brands. New Delhi: Pearson Education India. Arnell, P., 2010. Shift: how to reinvent your business, your career, and your personal brand.  New York: Crown Publishing Group. Assael, H., 2005. Consumer behavior.  New Delhi: Dreamtech Press. Barriaux, M., 2007. 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Swot analysis - idea, methodology and a practical approach. Norderstedt: Books on Demand. Pride, W. and Ferrell, O. C., 2012. Foundations of marketing.  London: Cengage Learning. Richter, T., 2012. International marketing mix management.  Berlin: Logos Verlag Berlin GmbH. Rolfes, R., 2009. The competition within: How members will reinvent associations. Bloomington: iUniverse. Slama, J., 2014. McDonalds can make history -- and rescue its brand -- with sustainable food. [online]. Available at: [Accessed 12 November 2014]. Solis, B., 2013. What's the future of business: Changing the way businesses create experiences.  New York: John Wiley and Sons. Wolff Olins, 2014. Our work. [online] Available at: http://www.wolffolins.com/work [Accessed 12 November 2014]. Read More