In addition to their use of social media, television, radio, and newspaper, the McDonalds has make significant use of billboards. Television has always has always had a crucial role in the company 's advertising. McDonald 's growth strategy is based on three aspects; introducing more restaurants, maximizing sales and profits at existing restaurants, and improving international profitability. Maximizing of sales and profits at their existing restaurants were accomplished through better operation and innovation, product development and refinement, effective marketing and lower development and operating costs. (Global Strategy of McDonald and How It Reached All corners of World) To sustain its life, McDonalds has put in to focus an effective competitive strategy to make them stand out against their competitors.
This gives McDonalds more time to focus on more important matters like its marketing campaign which is very important to any business. McDonalds has huge upper hand on competitors because they have partnerships with the best brands such as: Coca cola and many more. A huge strength for McDonalds would be their advertising section. They have a budget off $2 billion set aside every year this is more than most fast food restaurants chains
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.
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.
The majority of restaurants are owned by independent franchisees. Ability to adapt to local tastes is one of McDonald’s strengths. Their raw materials like potatoes, meat, and bread are direct link with different producers. 4. Partnership with best brands.
An assessment uses immediate entry modes of franchising, external factors, selection of the brand for the franchisee, in this case I have talked about many different brands from the Norwegian retail store to one of the biggest fast food chains McDonald’s and their ability of franchising. In recent years McDonalds has taken a lot of market in the fast food business. The result of this is that other fast food chains get a competitor. Huawei goes out to be number two in the world when it comes to the fast food market considering locations they have around the world. Due to their constant involved in the development of new fast food chains using franchising.
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.
One of these immensely prominent franchises could generate $1.9 million a year generally. Rapid food franchising accounts for the biggest part of dining establishment online sales in the US. With well-known names that consumers link with franchising, a widely known rapid meals franchise business can promptly set up brand name acknowledgment. The terms "franchise" and "McDonald's" are virtually synonymous with one another, as well as it's still the general agreement that a McDonald's is the Cadillac of franchise possibilities. If you've been taking into consideration a doughnut franchise business, after that perhaps the $2.4 million annual sales of a Krispy Kreme franchise will certainly sweeten the
Further research and analysis into the two franchises shows the difference in the action each franchise has decided to take in terms of social responsibility and corporate governance. The conclusion reveals that McDonald’s is ore successful than Burger King, as it has been in the Fast Food Industry for a longer period and has established its bran and customer base within the country. It
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.