The recipe for success has served McDonald’s restaurants well since Its Inception, 955, as a lone hamburger stand In Des Plainest, Illinois; further, founder Ray Crock created McDonald’s Corporation, with the specific purpose for expanding the business by franchising; McDonald’s represents one of the most valuable brand names in the world (Rowley, 2004). Each new global franchise featured standardized brand product values In concert with diverse cultural fare, owned, manned, and supplied by local communities.
Acting or expanding globally while thinking locally is the broad marketing strategy that has allowed McDonald’s to retain its competitive advantage as the world’s largest fast- DOD retailer. In a statement from 1 958, which still headlines the corporate governance page Ray Crock advanced “The basis for our entire business is that we are ethical, truthful and dependable” (McDonald’s. Com, 2009, ‘1 1). How has this strategy affected market mix attributes, the way that they were implemented, and transformed for ensuring the long-lasting success of this giant?
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Product Life in the asses was simpler than today-??no personal computers, no internet, no cell phones, no Jet airplanes, no health or wellness consciousness-??that landed Itself icily to the early success of McDonald’s’ simple product line of burgers, fries, and thick ice creamy milk shakes. McDonald’s provided a value-based choice for convenience dining, as family units grew in size-??baby boomers-??and product affordability, which was served efficiently in a meticulous environment became appealing, not to mention the soon to be Iconic golden arches and Ronald McDonald.
Competition offered no threat and by 1 958, the growing company sold Its 100 millionth hamburger. The refinements and miraculous advances of society increased the presence of monitors, as a trend towards healthy living was fast becoming an accepted lifestyle. The days of resting on one’s laurels were outdated-??that is if a company expected to continue operating with increased worth. McDonald’s reinvented its product lines over the years and never lost touch with controls for monitoring service appropriate order was a recipe for expansion into the global marketplace.
Two years after their tenth anniversary in 1965, which was celebrated with an initial public offering price of $22. 50, McDonald’s commenced global operations in Canada and Puerco Rice; further, presently operations span the globe in 118 countries (McDonald’s. Com history, 2009). With product mainstays such as the Big Mac, Quarter Pounded, French Fries, Filet- o-Fish, Happy Meals, breakfast fare, salads, soft drinks, coffees, teas, and desserts amongst others, McDonald’s franchises were established in such exotic locations as India, Israel, China, Singapore, Fiji, and Morocco.
Extensive research preceded expansion into diverse lands, which afforded smooth franchise transitions to operate and expand within the mindset of think locally. Collaborations with local citizens proved to be a valuable lesson and a profitable one. McDonald’s franchises featured native citizens as owners, employees, and suppliers, which allowed for that seamless integration. All McDonald franchises agree to conduct business that will offer consistency of products and services. Adapting to the local customs and ethnicities in China for example, the ‘Prosperity Burger’ is offered during Chinese New Year celebrations.
This popular item has seen the number of outlets in China swell to 1,000; further, the sectarian ingredients of the Maharajah Encumber has revolutionized franchises in India by respecting the religious and cultural custom, which forbids eating beef (McDonald’s. Com, history, 2009). Competition from Cutbacks, which introduced breakfast sandwich and coffee combo specials in addition to daily croissant/sweet roll with a coffee, was answered by McDonald’s with the introduction of MacAfee, a premium offering of coffees, blended, and iced offered at a more reasonably priced commodity than that at Cutbacks.
In keeping with the trend towards healthy lifestyles, McDonald’s once gain has demonstrated a shift to meet changing market demands by providing zero trans-fats in its fries, Filet-O-Fish, and other products. Frankly, McDonald’s offers products on a global basis, which provides a revolutionary blend of product conformity with creativity. Promotion Promoting products is as diverse as the global print of this fast food giant, but consists of five vehicles for informing and offering many reasons to choose McDonald’s: advertising, direct marketing, sales promotions, public relations/ publicity, personal selling (Kettle and Keller, 2006).
Advertising ploys are similarly carried out in various countries, which feature a celebrity touting the value, quality, avoiding television advertising, as programs only feature advertising between episodes, and studies indicated that the majority of viewers would change to another station, thus advertising has been targeted in print-??newspapers and magazines (Vaginal, 2001). Direct marketing has been achieved through the internet, as globally positioned web sites cater to specific cultural diverseness while considering ethnic, religious, moral, and consumer attitudes towards products.
Promoting the corporate vision for respecting all communities by operating in a ‘green’ manner, disclosing healthy alternatives with posted nutritional information, and providing interactive features, such as feedback has been effective for keeping an eye on customer needs and monitoring change in attitudes as a vehicle for maintaining a posture that is poised for market upheavals (Rowley, 2004). Sales promotions are launched to keep the consumer informed of the value to quality relationship, which has been successfully used for sustaining and expanding corporate wealth.
Offering various contests such as the Monopoly game transforms mere consumers into contest game players, often returning for another visit, which would not have occurred without the lure of winning prizes and money. The initial themes of circus flare Happy Meals, has sustained the interest of the younger set, with Walt Disney Characters included in Happy Meals. Offering values for the mature customer-??parents-??creates an enjoyable and fulfilling experience for the entire family.
Everybody is happy! Big Mac Jingles and current slogan “I’m loving it” have kept a freshness to advertising campaigns. Public relations are important to McDonald’s. A visit to Mcdonald’s. Com offers something for every member of the family, including rich content for students who are interested in using McDonald’s as a topic for term papers. McDonald’s acts responsibly by respecting the global environment and the diverse populations that this fast food mogul operates in-??a green machine!
Feedback is welcomed and the rich history of this historic company is presented as an interactive feature on the main company’s website. In Beijing, individuals are hired as public relations agents or the company; further, creativity, originality, and a corporate mind set for satisfying all communities creates value (Vaginal, 2001). Ronald McDonald House was established in various communities as a program to assist children and their families with special needs, such as serious medical conditions.
According to a special weapon titled Cause that Counts, 2009, ‘1 4, Research shows that 92% of Americans have a more positive image of companies that support a cause. And, 87% of Americans are likely to switch brands, when price and Mcdonald’s has been the official sponsor of the Olympics and other sporting events. In 1977, McDonald’s selected its first ever All-American High school Basketball Team, which played an exhibition game against the Washington Nationals, famed for always playing and losing to the Harlem Globetrotters (McDonald’s. Mom, history, 2009). McDonald’s cares and maintains an optimal balance of the right type of public exposure. Employees are extensively trained in all aspects of safe food handling, product information, and courteous customer service. Product information varies among the diverse cultures, but consistency in employee awareness for safe food handling and dedication to excellent customer service parallels the basic product food fare offered on virtually all McDonald’s menus.
Informed and polite people on the other side of the counter makes the experience for the customer much more gratifying. Placement and Price Various research studies have indicated that McDonald’s has saturated the United States market, but opportunities still exist in the global marketplace as new nations feel the effects of technological wonderment’s. This causes the standard of living to improve, education standards to improve, and with knowledge comes power.
The power of knowledge improves the mortality rate, stabilizes fertility rates, and creates a new market for McDonald’s to expand responsibly, ethically, and with respect for the environment, as corporate wealth and value is enhanced. According to Vaginal, 2004, “McDonald’s overall pricing objective is to increase market share” (‘1 3, Pricing Decisions). Extensive studies into market sectors thoroughly researches demand, factors in costs, analyzes competitor positioning, and systematically arrives at a price that will sustain customer demand for value, quality, ND convenience, all delivered in a clean, pleasingly friendly environment.
Value menus featuring selected items for one-dollar increase customer traffic and revenues as other regularly priced products are added to the order. A win- win situation for all parties will increase market share and shareholder wealth. Conclusion McDonald’s operates in an environment that is influenced by diverse cultures, ethnic customs, religious tenets, political systems, consumer watchdog groups, and fierce competition from other entities seeking to erode some of the dominant market share that McDonald’s enjoys.