McDonalds: Service Marketing
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McDonalds: Service Marketing

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Tutorial with students from the Strategic Marketing Summer School 2013 at Imperial College London.

Tutorial with students from the Strategic Marketing Summer School 2013 at Imperial College London.

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  • 1. © Imperial College Business School Tutorial: McDonald’s Strategic Marketing – SUMMER SCHOOL 2013 1 The Art & Science of Service Marketing
  • 2. © Imperial College Business School Today’s Session 2 What we are going to cover… • Three things from yesterday’s lecture on services? • McDonald’s Case Study Analysis: – Evolution of the McDonald’s service offering – McDonald’s Franchising Model – McDonald’s Glocalisation Strategy • Love or Hate? How to design effective service solutions • Group Exercise: Service Design
  • 3. © Imperial College Business School Yesterday’s Lecture 3 Key Marketing Concepts • Three things from yesterday’s lecture on services? – Services: Key Characteristics – The ‘8 Ps’ of Services – ?
  • 4. © Imperial College Business School What is Franchising? 4 Spot the odd one out…
  • 5. © Imperial College Business School A Great Model for Services 5 Top 500 Franchises • Using another firm’s successful business model and brand. • Franchisor has an alternative to building chain stores to distribute goods and avoid risk / investments. • Franchisee or operator pays a fee
  • 6. © Imperial College Business School 6 View from the operators http://www.aboutmcdonalds.com/mcd/franchising/us_franc hising/why_mcdonalds/success_stories/john_ebert.html McDonald’s Franchise Model
  • 7. © Imperial College Business School McDonald’s Franchise Model 7 Rules & Regulations • The Hamburger University (1961) • McDonald’s is one of Britain’s biggest trainers. It gets about 1m applicants a year, accepting only one in 15, and spends £40m ($61m) a year on training.
  • 8. © Imperial College Business School McDonald’s Franchise Model 8 Ad spend and brand recognition • Restaurants spend $5.875 billion on advertising in the U.S. • McDonald's spent $963 million in advertising in 2012, up 8.6% from the year before. • That means $1 out of every $6 spent on restaurant advertising in America is done by McDonald's. Why?
  • 9. © Imperial College Business School Glocalisation Strategy 9 Adapting the McDonald’s service to local markets Marketing Mix Element Standardisation Localisation Product Big Mac McAloo Tikka potato burger (India) Promotion Brand name / advertising slogan ‘I’m lovin it’ Slang Macca’s (Australia) MacDo (Philipines) Place Free standing Home delivery (India); Swiss rail dining cars Price Big Mac is $3.10 in US and Turkey $5.21 (Switzerland) $1.31 (China)
  • 10. © Imperial College Business School The Service Revolution 10 The booming service economy • Services account for nearly 70% of UK economy (GDP). • Product market is satisfied • Technology enables services (online banking, broadband) • Individual needs (customisation vs. standardisation) Source: ONS 2008
  • 11. © Imperial College Business School Designing Services 11 Thinking from a Customer’s Perspective Holistic experience Department A Department B Department C Department D Department E Department F Provider Customer Service Interface
  • 12. © Imperial College Business School Love… 12 Which services do you love?
  • 13. © Imperial College Business School Hate… 13 Which services do you hate?
  • 14. © Imperial College Business School Designing Services 14 Analysing Customer ‘Touchpoints’
  • 15. © Imperial College Business School Designing Services 15 Analysing Customer ‘Touchpoints’
  • 16. © Imperial College Business School Service Design Process 16 The Double Diamond Model
  • 17. © Imperial College Business School Phase 1: Discover 17 Using observation and empathic research e.g. What is using a train like for wheelchair passengers? Services are co-created
  • 18. © Imperial College Business School Phase 1: Discover 18 Mood-o-gram: One Person’s Emotional Journey
  • 19. © Imperial College Business School Phase 2 : Define 19 Creating Personas and Empathic Design * Personas are visual and anecdotal profiles – empathic tools which help providers understand the perspectives of different users.
  • 20. © Imperial College Business School Phase 3: Design & Develop 20 Designing a Service Blueprint
  • 21. © Imperial College Business School Group Exercise 21 Design a new service blueprint - Get into groups of three - 30 minutes – plan your time! - Use of flipchart, pens and sticky notes
  • 22. © Imperial College Business School Group Exercise 22 Defining the Customer Journey 1. Think of a service you either love (and wish to demonstrate why you love it) or hate (and wish to present your idea for an improved service proposition). e.g. nightclub, BA degree, haircut, online retail, ski holiday 1. Identify a ‘persona’. List their needs and desires 2. Map out the customer journey 3. Underneath that, match up the customer touchpoints (i.e. interaction between provider and customer) and suggest ways of improving it. See example of service blueprint.
  • 23. © Imperial College Business School Group Exercise 23 Defining the Customer Journey
  • 24. © Imperial College Business School Group Exercise 24 Defining the Customer Journey