McDonald's
Company profile
McDonald's is an
American fast food company, founded in 1940 as a restaurant operated by Richard
and Maurice McDonald, in San Bernardino, California, United States. They
rechristened their business as a hamburger stand. The first time a McDonald's
franchise used the Golden Arches logo was in 1953 at a location in Phoenix,
Arizona. In 1955, Ray Kroc, a businessman, joined the company as a franchise
agent and proceeded to purchase the chain from the McDonald brothers.
McDonald's had its original headquarters in Oak Brook, Illinois, but moved its
global headquarters to Chicago in early 2018.
McDonald's is the
world's largest restaurant chain by revenue, serving over 69 million customers
daily in over 100 countries across approximately 36,900 outlets as of 2016.
Although McDonald's is known for its hamburgers, they also sell cheese burgers,
chicken products, French fries, breakfast items, soft drinks, milkshakes,
wraps, and desserts. In response to changing consumer tastes and a negative
backlash because of the unhealthiness of their food, the company has added to
its menu salads, fish, smoothies, and fruit. The McDonald's Corporation
revenues come from the rent, royalties, and fees paid by the franchisees, as
well as sales in company operated restaurants. According to a BBC report
published in 2012, McDonald's is the world's second largest private employer
(behind Walmart with 1.9 million employees), 1.5 million of whom work for
franchises.
Vision
McDonald's Brand vision
is "To be the best quick service restaurant experience". Being the
best means providing outstanding quality, service, cleanliness, and value, so
that we make every customer in every restaurant smile.
Mission
McDonald’s mission
statement is officially stated as follows: “Our mission is to be our customers’
favorite place and way to eat & drink. We’re dedicated to being a great
place for our people to work; to being a strong, positive presence in your
community; and to delivering the quality, service, cleanliness and value our
customers have come to expect from the Golden Arches – a symbol that’s trusted
around the world.”
McDonald’s objectives
Basic questions 4: Goals and objectives:
1) What are the goals?
The goal for McDonalds is to successfully communicate
their new healthy alternatives. After the movie “Supersize me” McDonalds experienced
a lot of critique and has therefore established a new strategy with the
following goals:
Reputation management goals:
Improve McDonald’s reputation within the industry: They do not aim solely at being perceived as a healthy
restaurant, but as a restaurant that offers alternative meals for their
publics. They furthermore want to be recognized as a company which is aware of
the growing societal issues of obesity.
Reinforce McDonald’s image with a new communication focus: Simultaneously
with the increasing focus on healthier alternatives, McDonalds has realized
that they have to change their focus in order to create a new image and
perception of McDonalds. As a result they have taken some initiatives that
should change the focus from the unhealthy products and introduced healthier
menus. This has generated a lot of buzz because this change of focus was
inevitable. It can be discussed whether this communicational change has been a
success.
Relationship management goals:
Promote their new initiatives to new potential customers. It is obvious that
the new strategy will generate a positive relationship between existing
customers and potential customers due to the fact that the strategy will create
access to new markets and that existing customers now have a broader range to
choose from including the original menu choice.
Furthermore they provide more alternatives to their customers as a
result of the new focus.
Task management goals:
Increase public support
for McDonald’s new aim.
2) What position do you seek? Before the issue evolved
McDonalds was known as a popular but still greasy fast food restaurants. They
are still perceived in this way but at the same time people now know that they
offer some alternatives. Furthermore McDonalds have been really good
at communicating their products’ nutritional values. This has increased
the transparency and makes it possible for people to know how many calories
they consume in a meal. This way they are perceived as being a more open and
credible organization.
McDonalds should focus on maintaining this position. They
should be a place for all kinds of people and continue to develop both their
burgers and also the healthier alternatives. However, they should still keep
their original brand.
3) What are the specific objectives?
1. Awareness objective: Increase awareness amongst the
publics with the aim of knowing that McDonalds offers healthier alternatives. Create
awareness amongst families with kids under 15 years old. (Increase of 20 %
within a year)
2. Acceptance objective: Create a smooth transition when
trying to increase positive attitude towards the healthier new alternatives.
3.
Action objective:
Opinion action: to have the customers who are fond of the changes spread the word Behavior: To change the behavior of existing customers to also buy the new options, and to attract new customers who are interested in the new products.
Opinion action: to have the customers who are fond of the changes spread the word Behavior: To change the behavior of existing customers to also buy the new options, and to attract new customers who are interested in the new products.
Future plan of McDonald’s
McDonald's Reveals Plans to Invest
Two-Thirds of Its Capital in 2018 on the Guest Experience
During its Q4 2017 earnings conference call, McDonald's
executives discussed 2018 plans for the QSR (quick service restaurant) giant.
In particular, the executives focused on how they would spend money to enhance
the consumer "experience of the future." According to Kevin Ozan,
CFO, the company expects to spend approximately two-thirds of its capital in
2018 on further accelerating this guest experience within the United States.
"We have realized that we are going to need to
continue to invest in technology and digital in order to keep up with where the
world is going and our customers' expectations," he noted.
Steve Easterbrook, president and CEO, discussed some of
the technology initiatives McDonald's has already undertaken in the past year
and their success. For instance, McDonald's partnered with UberEATS (Online
food ordering company) in 2017 within the United States. According to Easterbrook,
delivery orders tended to be above average check size by 1.5 to 2 times, and
have encouraged "solid" repeat business from those who try it.
Delivery was not only successful in the United States but emerged as a
meaningful contributor to the company's comparable sales in several of its
largest markets.
Easterbrook went on to discuss how McDonald's
"experience of the future" platform went beyond delivery to encompass
a more seamless, personalized and enjoyable experience for customers including
digital menu boards, self-ordering kiosks, improved hospitality from staff, and
a more modern look. Additionally, the company is seeing customers engaging with
the brand via its mobile app much more frequently. In the United States alone,
McDonald's has more than 20 million registered users of its mobile app.
"We are well positioned to capitalize on that user
base," Easterbrook said. "We ended 2017 with 20,000 restaurants
around the world offering mobile order on pay. While still very early with
customer usage we're encouraged by digital orders as we're seeing higher
average check size and greater customer satisfaction among the customers. In
particular many customers are appreciating the added convenience of curb side
pickup."
For 2018, Easterbrook stressed that the company's focus would
continue to be on improving the customer experience, specifically by offering
them greater choice in how they order, pay and receive/are served their food.
The company plans to raise customer awareness of the enhanced convenience available
with delivery and mobile order on pay.
References
Chapter 1:
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