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With more than 24,500 restaurants in 115 countries, some of those operated by the many, some by franchisees or by affiliates operating under joint-venture agreements. The global market potential is still huge, yet on any day, even as the market leader, McDonald’s serves less than one percent of the world’s population. The restaurant chain plans to expand their leadership position through convenience, superior value, and excellent operations. (3) In today’s society, McDonald’s has become one of the most successful franchises, as well as Fortune 500 companies out there.
There are many aspects to this success In the cruel world of business, competition and our always fluctuating economy. The mall questions marketers must arrow In on are who Is our target market, how do we reach them, what do they want from our product, and based on that Information, where do we see our business growing? McDonald’s has a very specific target market. Based on certain aspects of the company’s’ advertisement, we can simply see how their company is being portrayed to society. Ronald McDonald, a very popular figure in the eyes of children, is a clown with a constant happy and loving face offering love and fun to kids.
Ronald McDonald, as well as other real life anima characters, adds to the children’s’ desire to beg Mommy and Daddy to go to McDonald’s. The average child begins eating at McDonald’s at the age of 3. (2) There is no single child in this world, to my belief, that prefers McDonald’s food because of their exquisitely perfectly salted and cooked to perfection French fries or there Juicy secret sauce Big Mac burgers cooked Just the right way, every time. The simple facts show that parents bring their children to McDonald’s based on happiness, the fun atmosphere, and sadly, the Inexpensive product, which goes a long way.
The “toys” In happy meals, as well as the “play areas” in most McDonald’s restaurants offer an exciting, fun place to eat and a playground or kids, giving those parents that need an extra 5 minutes to themselves, exactly what they are looking for. McDonald’s has made their target market clear, for the most part, being children, parents, specifically mothers, and overall a low to middle class working family. McDonald’s does not only offer children an exciting and fun way to eat their breakfast, lunch or dinners. 3) It offers parents a meal for their child, as well themselves, at an extremely affordable price, in quick time, and has the same affect on the body to fulfill being satisfied. McDonald’s revenue is 2010 was $31. 51 lion. Revenue for the fast food business In 2010 grossed to $1 90 billion dollars. As you can see, McDonald’s plays a large role In year grossed amount. With great competitors, such as Wendy, Burger King, Five Guys, Pizza Hut, Taco Bell, Johnny Rockets, and even now Subway, Solons, and Long John Silver’s, McDonald’s malignant that dominant leadership in the fast food world.
McDonald’s’ predicts strong sales for sales from restaurants opened more than a year, rose 5. 9% in July, led by an impressive 12% gain in its Asia/Pacific, Middle East and Africa division. Same-store sales in its U. S. Outlets rose 3. 5%, increasing for a 54th consecutive month, and believe to continue this fashion in the upcoming months. (2) The company cited its value menu, breakfast offerings, and beverages as helping to boost sales. Same-store sales are an important gauge of performance in the restaurant industry.
The latest results continue a hot streak for McDonald’s that began in 2003 and continues for a variety of reasons including savvy marketing, discount menus, and popular new products. For years their philosophy of providing good food for a low price has lead to astounding growth throughout the world. This has lead to new Jobs and economic benefit for wherever the stores are located. McDonald’s uses strong marketing and solid economic practices to insure they will not lose their position in the fast food industry. McDonald’s has high popularity among many Americans.
The Golden Arches are a symbol of one of the major structures in place in America, fast food. Since McDonald’s was first opened, its goal has always been to promote its fast service and great food. There have been some great slogans and advertisements from McDonald’s. (2)Some of its most famous ones have been in more recent years. Slogans such as, “Two all-beef patties, special sauce, lettuce, cheese, pickles, onions on a sesame seed bun”, Mimi deserve a break today’, “I’m Loving’ it”, and the most recent, “McDonald’s Dollar Mercenaries. These slogans serve as a gateway between McDonald’s and its customers. It is McDonald’s way of getting their name out. (3) When McDonald’s announced that it would make the standard child’s Happy Meal more healthful, this brought a new light and future to the Golden Arches. This is not only an attempt to fight back with the long battle of a non-nutritional product, but simply, the move makes business sense. This is good publicity, and if you sell more Happy Meals, you’re likely selling more Big Macs to the parents. Happy meals on average are 10% of their food sales.
They do more than $32 billion in sales every year, so Happy Meals are potentially a $3 billion chunk of that. That alone is more revenue than a lot of big restaurant chains. For McDonald’s, it’s about holding on too loyal customer base, one that has grown up being exposed to the Golden Arches. McDonald’s has done great through the recession, they continue to grab market share and have had the cash to remodel their restaurants, while some of the other sat-food restaurants have struggled to keep up. (2)The competition has not been standing still though.
The National Restaurant Association launched a similar initiative for healthier kids’ choices earlier this month, pre-emitting McDonald’s. Among those signing on to the “Kids Lively” campaign are Burger King, ‘HOP, Dyne’s, Cracker Barrel and Sizzler. Recently, McDonald’s has even begun the extremely large plan of purchase on the new Happy Meal snacks, apples. Somewhere out there is an apple supplier who is probably even happier than the kids. The size of McDonald’s supply chain in huge and growing. They have thousands of stores, serving apples in every Happy Meal, do the math, it is huge!
To be sure, healthier options at McDonald’s have long been there for the asking. (3) A parent could request fruit or milk instead of a soft drink. The big change is that the new Happy Meal will automatically include a quarter-cup of apple slices and about half as many French slices instead. The move also should help ease criticism the company has long faced. McDonald’s has high hopes for the Golden Arches and there is no reason why they should think different. Besides being the first of its kind, the McDonald’s family has always offered a reliable product for their valued customers.
With our population and mass index only increasing in the years, McDonald’s sales plan on their steady possibly 9% increase in revenue each year, as well as 3% in operating income. Adjustments are obvious, times change, and so must businesses to keep up with the time. Twenty years ago I doubt that even the CEO of McDonald’s imagined half the fries in a Happy Meal, with substitution of apples. Well, that is because twenty years ago obesity wasn’t a strong enough concern in our society. There also weren’t parents nuking fast food restaurants for “their child” gaining too much weight from the company’s product. 1)Change is not necessarily a bad thing in the business world, it offers new targets and possible advancements never seen before. Simple methods that we can use to examine these changes in the economy and sales forecast for upcoming years. We must first measure the business and its growth by sales, and the sales forecast sets the standard for expenses, profits and growth. The sales forecast is almost always going to be the first set of numbers you’ll track for plan vs.. Actual use. This is what you’ll do even if you do no other numbers.