2. Unhealthy food menu Although McDonald’s tries to introduce healthier choices in its menu, the menu is largely formed of unhealthy meals and drinks. Such menu offering prompts protests by organization that fight obesity and hence, decrease McDonald’s poularity. 3. Mac Job and high employee turnover Mac Job is a low paid and a low skilled job, which is often seen negatively by its employees.
This also helps McDonalds to attract the young urban families who wanted to spend some quality time, while their children can enjoy every movement of McDonalds. Their Wi-Fi services are also provided to attract students. McDonald 's corporate have used advertising, personal selling, sales promotion, public relations, and direct marketing which contributed as the worlds largest leading fast food place. The above five promotion tools are used by McDonalds to integrate marketing communication program, which allows McDonalds to have access to the communication channels clearly, and easily transfers messages and product to their target audiences. McDonalds has provided a great deal of advertising methods.
Another strength of McDonald Corp. is their history of strong financial performance. McDonalds is known for shareholder-friendly efforts intended to provide investor returns. The fast food industry is a very competitive space and requires constant innovation and new product development to maintain a competitive advantage. McDonalds has shown their ability to forecast and put into action what their customer wants and needs are. A great example is the McCafé line which is exceeding performance expectations.
3.2.4 Buyer power. (Strong) The buyer power is strong as McDonald’s depends on a strong customer base. Customers can easily impose their demands on McDonald’s due to the ease of changing from one restaurant to another. It will not cost customers much to switch to other brand like Burger King, Subway, and Yum! Brands.
Strengths: McDonald’s is the largest fast food restaurant chain, its sales are 8% higher than any other fast food restaurants. It serves around 68 million customers per day in over 119 countries across 35 000 stores. For this reason it has been given the name of the largest fast food market share in the world, which means the brand is well known this gives the company edge over other similar company’s like Burger King. The brand is valued at 40 million dollars which is huge compared to Burger King which are only valued at 28 million dollars. The brand has become so popular because McDonald’s clever use of Ronald McDonald Clown to promote their products which became such a hit with young children and young adults.
The diagram above shown the CPM of McDonald’s and its competitor, KFC and Burger King; indicates McDonald’s is in a strong strategic position than its competitor. Some of the reasons McDonald’s is successful and has high market is due to it strong brand name recognition, a strong customer loyalty, and its global expansion. Furthermore, McDonald’s is also invested a large sum of money in advertising and very well known toward it charity program through Ronald McDonald’s House. Nevertheless, there are areas in which the organization can improve. One of those areas is their public image.
McDonald’s is successful because of the continuous equipment updating, improvement on serving time, and in finding more ways to satisfy customers. McDonald has a unique value chain because of the rare need to depend upon other companies for supplies. The firm owns nearly every portion of the value chain. McDonald's have their warehouses within a reasonable proximity to all of their restaurants. This, along with owning the warehouses allows the restaurants to get all of the needs met in one shipment and not deal with multiple suppliers.
Marketing and Strategy McDonald’s adopts different marketing strategies for different marketing environment. In United States, McDonald’s emphasizes convenience and efficiency because the rhythm of life in America is fast. McDonald’s regards white-collar workers as main target customers. On the contrary, in China, McDonald’s makes emphasis on comfort and romantic. And its target customers are young people because young people in China occupy the main part of fast food consumption.
The Company operates and franchises McDonald’s restaurants, which serve a locally-relevant menu of quality food and drinks sold at various affordable price points in more than 100 countries. McDonalds is also the second largest restaurant network. Strengths- The Strengths of McDonald’s are big numbers of restaurants and its marketing success. McDonald’s have 36,899 restaurants in 120 countries and McDonalds most successful promotions ever is with DreamWorks Shrek the third. I would say the brand name of McDonalds are their biggest strengths.
McDonald’s products are stocked pre cooked. This product is to customer and makes an order by customer the product is finished .The product can made when customers order. This called the product ‘Made for you’ .This is new technology and challenge to McDonald’s.High flexibility is key to McDonald’s success(example: a hamburger with no pickles).Besides that, a high volume of production McDonald’s because of the billions of customers that McDonald’s serves on a daily basis.McDonald’s classification by type of Customer Order.When customer need,the product can be made follow taste,size,quantity of item because in a MTO process .The MTO process's cycle is of production and order fulfillment begins with the customer order and after receiving the order with customer satisfaction with the food.The customer satisfaction is very important to McDonald’s.Besides that,the design must be completed. The most important part of this process in McDonald’s is the length of time it takes to fully deliver the product after the order has been made by customer, this is called the Lead Time. Lead time made the customer not satisfy with the service .This is can causes the customer do not want to coming again.McDonald’s is big restaurant that have billion customer and employee.So,the speed in their production is needed to fulfill their customer needed.This bigger