Marketing Objectives - McDonalds - Case Study Example

Executive Summary McDonald’s is one of the largest food chain and been continuously taking measures to improve its brand image. The presence of the chain worldwide and its adaptability to changing culture and innovation has allows McDonald’s to develop its brand and provide quality food and service to the people. The report looks into the strategic analysis where the performance of McDonalds has been looked into. This goes well with the vision objective where McDonalds want to be one of the most sought brands. Their mission statement is helping them to achieve it. The report then looks into the positioning and SWOT which helps to identify the short and long term objectives. The short term objectives highlight the importance being laid on health issues and the long term objective looks into improving the brand image. The report then looks into the risk management issues and the manner McDonald’s will be able to check it. Thus on the whole the report highlights that McDonald’s has been striving to improve its image and ensure innovation to satisfy the customers. Contents 1. Introduction 3 2. Purpose of the report 3 3. Strategic Analysis 3 3.1. Vision & Mission Statement 4 3.2. Positioning 5 3.3. SWOT Analysis 6 4. Strategic Objective 8 4.1. Short Term Objective 8 4.2. Long Term Objectives 9 5. Risk Management Strategy 9 5.1. Product Analysis 10 5.2. Marketing Strategies 10 5.3. Contingencies 11 6. Conclusion 12 7. References 13 1. Introduction McDonald’s has been in existence for a long time and their sheer quality and service has made them grow and become one of the most renowned fast food chains in the world. McDonald’s has its branches all over the world and with adaptability to the conditions and culture of different country the brand has moulded itself which has helped it to grow its presence and satisfy human wants. 2. Purpose of the report To analyze the strategic analysis of McDonald’s and looking into their vision, mission, positioning and SWOT analysis To identify both the short and long term objective of McDonald’s To conduct a risk management analysis which looks into product, marketing and contingencies 3. Strategic Analysis McDonald’s is one of the largest food chain and has its presence in over 120 countries with 12,000 branches. McDonald’s has been successful due to consistency in service and innovation in product. (Vijayrani, 2007) McDonald’s has around 40 million visitors worldwide visiting their store every day. Their major sales constitutes from eight countries. Their financial performance depicts the same as it shows stability and growth. (Vijayrani, 2007) McDonald’s recently has been looking towards faster delivery, customer satisfaction, cleanliness and innovation in their product to ensure that the brand image improves. (Vijayrani, 2007) McDonald’s has been working on this model and are ensuring that they ensure that customer get value for money. This can be seen from the growth of McDonald’s all around. A look at Australia suggests that McDonald’s has 808 outlets where it employs around 85,000 people. This shows the sheer volume and growth McDonald’s has been able to achieve. McDonald’s to ensure satisfaction and proper service has given stress on training. This has made the employees develop their skills and ensure those customers are dealt at the shortest time by providing quality food. This has ensured that McDonald’s is able to achieve its mission and is looking towards growing as a bigger brand. 3.1. Vision & Mission Statement McDonald’s which has grown as a brand recognized by all has the following vision statement McDonald’s vision statement is “to be the best quick service restaurant”. (McDonald’s Website, 2010) The company by being “the best” wants to provide quality service, cleanliness and value for their money. The company aims to ensure this by seeing a smile on everyone who visits the restaurant. (McDonald’s Website, 2010) McDonald’s to ensure that the company is able to deliver on the vision statement has a mission statement which allows the company to ensure that there is achievement of the vision statement. The following are the mission statement which will help to achieve the vision statement To ensure best employment by being the best employer everywhere in the world where McDonald’s has a presence Ensure that operational experience is delivered for the customer through their outlets Expand brand by ensuring growth through satisfaction of customer wants Ensure continuous innovation and development of products Being ethical in all our dealings McDonald’s thus aims to achieve the vision through the mission statement which will help the company to deliver better service and ensure customer satisfaction. 3.2. Positioning McDonald’s have positioned their product for “all category of customers starting from the tender age of 5 to 60”. (Dylan, 2007) The product has been positioned to ensure that “every customer who wants the product can have it”. (Dylan, 2007) For this the company has kept the prices low and also have small packages so that it can eye all customers. McDonald’s has ensured that they are able to penetrate the market by providing something for everyone. McDonald’s for this has ensured that that they ye the family, children and people of all age group. McDonald’s has an environment where children can plan and enjoy at the same time relish the lovely burgers being offered. (Narula, 2007) McDonald’s thus has been able to develop its positioning strategy based on the customer base it wants to target. 3.3. SWOT Analysis Strengths McDonald’s has a “strong brand name due to the number of years the company has been operating”. (Ferrell, 2002) McDonald’s have many products aiming at different customers according to their wants like different varieties of burger, salsa French fires and so on McDonald’s has “a strong presence which has ensured that the products are readily available”. (Ferrell, 2002) Large market and increasing customer base due to population growth Huge market penetration and market share Economies of scale in production process (Adam, 2009) Lot of items to choose from (Adam, 2009) Adaptability to different cultures in different countries (Adam, 2009) Innovation & Product development Weakness “Limited storage time for products” (Ferrell, 2002) is making the company to ensure that it is sold within that interval Advertisements which are targeted towards children thereby not paying attention to others (Adam, 2009) The turnover rate for employees is high (Adam, 2009) Competition from competitors like KFC in relation to price dwindling profits (Adam, 2009) Opportunities Developing new products “which improves there product range” (Ferrell, 2002) and gives them a scope to grow like salads Innovating and coming with new supplies techniques and moving into new markets Expand in new markets Develop stores which are more luxurious at places where customers are willing to spend extra (Adam, 2009) Entering into joint ventures with other supermarkets to increase sales Threats Health issue surrounding the food industry New entrants entering the food industry Heavy investment in technology and advertisement by other food chains (Adam, 2009) 4. Strategic Objectives Strategic objectives forms an important aspect of business planning as it will help to determine what the business wants to achieve in the short and long term. The short and long term objectives of McDonald’s are as follows 4.1. Short Term Objectives To increase the image by demonstrating health consciousness through different advertising campaign which highlights the low fat used by them over a period of 2 months Continuous enforcement of the health campaign though promotional event and advertisement by having different outlooks for a period of 6 months. KPI: The above short term objective will help McDonald’s improve their brand and will show the customers that McDonald’s is considering health issues seriously and is looking even to target the health conscious customers. 4.2. Long Term Objectives Improve their brand image and be recognized as the number one provider of fast food which is healthy over a period of 3 -5 years. Increase the sale of the product through penetration and product development so that all type of customers is eyed at. The company expects to achieve a growth of 15% within a period of 3 years. KPI: To ensure that McDonald’s is able to achieve its long term objective the company is looking towards more promotional campaign and organizing different events at their outlets to attract crowd. McDonald’s is also looking towards adding new product every 6 months and have a continuous feedback process from the customer to achieve the objectives. McDonald’s objectives matches well with the vision statement and the steps the company is taking will help the company to achieve this feat. McDonald’s can improve its brand image through analyzing their risk management strategy which will help McDonald’s to deliver better services 5. Risk Management Strategies Risk Management strategies will help McDonald’s to better understand the market and develop strategies which will help the company to be able to achieve its objective which will finally transform into vision for the company 5.1. Product Analysis The risk associated with the product that McDonald’s offer is that it contains calories. This is making health conscious customers stay away from it and the growth in health issues is a concern for McDonald’s. This makes it important that McDonald’s devises a strategy which will help it to improve its image and will help it to shed the tag of being high on calories. 5.2. Marketing Strategies Marketing of McDonald’s holds an important aspect and will help McDonald’s meet its objectives. McDonald’s which offers burgers are criticized for offering high calories which affects the health of the customer. Also the tactics and promotional campaign of McDonald’s are eyed towards the younger age group. This makes it important that McDonald’s markets itself to be able to gather a bigger market. To market McDonald’s will look forward to create brand awareness. In the beginning “McDonald’s will advertise the product through in stores promotion”. (Bristow and Frankwick, 1994) It plans to have “television commercial as the viewership is high for such advertisement”. (Bristow and Frankwick, 1994) McDonald’s should also ensure that marketing takes place through “advertisement in news paper, hoardings and distribution of pamphlets”. (Bristow and Frankwick, 1994) McDonald’s provides an integrated marketing communication to make the customer aware of the services and ensure that they remain loyal. McDonald’s offers advertising on television, radio, billboards, newspaper, hoardings, and public relations, personal selling, direct mail and internet. (Justin, 2008) The technological advancement has allowed McDonald’s to use the marketing communication according to their requirements. Thus, it presents a wide avenue to choose to sell the services and also have loyalty programs to retain customers. 5.3. Contingencies McDonald’s faces threat from competitors who supply similar products like burgers and French fries. This has increased the competition and is a threat but a major threat comes from heath issues surrounding burgers as they have high calorie content. McDonald’s need to look into this matter seriously and ensure that they highlight the changes by shifting from fries to salads or nuggets which are healthy and will help to improve the brand image. This has also been highlighted in the opportunities and presents before McDonald’s an opportunity to fight the risk associated with this. At the same time McDonald’s need to ensure that it markets and devices advertisement which highlights the manner in which McDonald’s is looking towards reducing calorie content which will help McDonald’s to ensure growth and face the risk associated with it. 6. Conclusion McDonald’s has been able to grow and improve its brand image. The above mentioned point even highlights the same and shows the manner in which the company is looking towards changing itself with the changing culture. It also supports that the fact that the company has been innovative continuously and brought the changes which will help McDonald’s to ensure better food and service. 7. References Adam, (2009), “McDonald’s SWOT Analysis”, retrieved on November1, 2010 from www.isolution.org Bristow D and Frankwick G, (1994), “Product manager influences tactics in marketing strategy development and implementation”, Journal of Strategic Marketing, Volume 2, Issue 3 Dylan W, (2007), “Even McDonald’s has a market positioning”, retrieved on November 1, 2010 from www.marketingyoursmallbusiness.com Ferrell G, (2002), “SWOT Analysis for McDonald”, Orland, Dryden Press Justin A, (2008), “Hotel Industry”, Service Sector Management, Business Week McDonald’s Website, (2010), “McDonald’s Website”, retrieved on November 1, 2010 from http://mcdonalds.com.au Narula A, (2007), “McDonald’s positioning what do you think”, customer & management consultancy services Vijayrani N, (2007), “McDonald’s business analysis”, ezine articles, retrieved on November 1, 2010 from http://EzineArticles.com/?expert=N._Vijayarani Read More