It valued McDonald 's brand at $31,049 million in 2008 (Datamonitor, 2009). 4. A. II. Strong operational capabilities McDonald 's has strong operational capabilities which allow it to provide high quality products and customer service across its restaurants (Abdullah, 2009). 4.
McDonalds SWOT Strength • It ranks very high on the Fortune Magazine 's food service companies • It has one of the best brand recognition in the world • It practices community oriented business models. • It is very socially responsible. • It is globally operated all over the world. • It has cultural diversity in the foods that are provided based on location of the restaurant. • Large part of the of its restaurants are franchised out.
As one of the most successful food franchise in the world, throughout the development of McDonald’s, we could easily identify many successful business strategy implementations. In this paper, I will discuss some critical business strategies, which linked to the marketing plan . I will analyze some particular strategies used by McDonald’s and how these strategies are suitable to their business structure. I will summarize the approaches used by McDonald’s to achieve their strategic goals. McDonald’s is one of the most widely known fast food brands in the world.
With no other fast food serving chain to compete with, McDonald’s had swiftly taken over all the major cities in India. McDonald’s strategy to target their consumer was different for different age groups (kids, teenagers, corporate officials and elderly). Their communication through advertisements and campaigns mainly focused on the family. The tagline at the introduction stage was “McDonald’s mein hai kuch baat” which indicated a special place for the family to celebrate. In the growth phase the tagline changed to “To aaj McDonalds ho jaaye”conveying an acceptable and an enjoyable place for the family to visit.
This statistic illustrates the challenges companies face when trying to grow in competitive environments. Achieving even 1%annual growth requires increasing sales to customers, both existing and new, by 14%. Reducing customers’ loss can dramatically improve business and brand loyalty which leads to consistent and even greater sales since the same brand is purchased repeatedly (Giddens, 2010) . 3.6.2 Premium Pricing Ability Consumers are fewer prices sensitive when increasing the brand loyalty. Generally, they are willing to pay more for their preferred brand because they perceive some unique value in the brand that other alternatives do not provide.
By correctly compensating employees and offering further pay incentives such as bonuses or paid time off, the company will suffer less from employee turnover, which will benefit their success in the long run. CNBC guest columnist Ron Volper summarizes how paying employees’ salary and incentives will positively impact an organization, “The companies with the highest employee morale and productivity pay a mix of salary and incentives. The salary compensates employees for performing all the tasks required of them and provides them with a consistent income.” This high moral and positive attitude for compensation will positively result in retaining good employees for the long run of their
However , Puma normally uses premium pricing strategy because Puma views its brand as premium. Premium pricing strategy means maximizing profit in areas where customers are happy to pay more. For Puma , premium pricing strategy may not be the best pricing strategy as nowadays , there are more and more price buyers , which means people who buys products at the cheapest place and only see the price as the only consideration . Even when price buyers were once a loyal customer of the company, if this strategy continues , they may not still be loyal and may go to other cheaper companies to be their loyal customer. 5 P : People Puma has always provided high quality customer service to customers and sales would provide trailor-made services to clients.
A huge change from their previous process that generally delivered most products over 12 months. Adoption of the agile process has allowed BT to reduce the time to solution delivery, adding greater value to their customers. This shorter cycle and improved value give them a competitive advantage in the market. To understand the importance
This kind of people are also indispensable to every company as they will indirectly be motivated by their positive aura. A good aura also affects other colleagues. They are always in a positive mood – even during difficult times – and their enthusiasm is contagious. They seldom talk poorly of the company or the business. When faced with unpleasant or negative situations, they choose to focus on the positive elements instead of allowing themselves to be dragged down.
The interest is largely driven by the realization that high service quality results in customer satisfaction and loyalty with the product or service, greater willingness to recommend someone else, reduction in complaints and improved customer retention (Zeithaml et al., 1996). Further, a satisfied customer is likely to be a loyal customer who will give repeating business to the bank (Heskett et al., 1994). Most importantly, the cost of retaining current customers by improving product and services is significantly lower than the cost of winning new customers. Because of the importance of the service quality and customer satisfaction as a route to competitive advantage and corporate profitability in banking, it has become difficult to identify a single bank which has not initiated some kind of service quality improvement