McDonald's Marketing Mistakes Presentation

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McDonald's History, Size, Growth, Menu, Acquisitions, Franchise Problem, Renovation, Moderation, Competitors, Way forward, competition with Starbucks. Did with Milena Price and Alzahra Alrasheed at the University of San Francisco.

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  • Lets look at the ad.. Mcd showing off its fancy side there…
  • But let’s see what you think…
  • And yes, price is one of mcd’s strongest points. Here is its ad for the loose change menu.
  • Marketing focus fast food. Speed. The business began in 1940, with byrichard and mauricemcdonald. Speedee service system.
  • McDonald's Marketing Mistakes Presentation

    1. 1. A story of expansion, moderation and international success By Malvika (Overview), Milena (The Mistakes), Alzahra (Way forward)
    2. 2. McDonald’s & you Value for Money? Convenience? Outlet Experience? Healthy options? Status? Finally, do you go to it or not?
    3. 3. History Kroc was selling milkshake machines to Maurice and Richard McDonald in San Bernardino, CA, before taking the firm to 8,300 locations in 30 years.
    4. 4. Today 34,000 restaurants In 118 countries Serve 68 million customers daily Format: Stand-alone + Drive-throughs
    5. 5. Talking revenues…
    6. 6. McDonald’s Leadership James Cantalupo (CEO 2003-2004)Jack Greenburg (CEO 1998- 2003) Jim Skinner (CEO 2004 -2012 ) It takes A McDonald's worker 4 months to earn what the makes in an hour: $9,247
    7. 7. A LOOK AT THE PROBLEMS
    8. 8. THE MENU
    9. 9. THE FRANCHISE PROBLEM
    10. 10. • Conflict between corporate and franchise owners • Too many restaurants  cannibalization • Franchising 2000 • American Franchisee Association Current no. of McD outlets around you right now
    11. 11. THE TOO-MUCH-TO-HANDLE ACQUISITIONS
    12. 12. McDONALD’S SUFFERING PR • Public perception of cleanliness, food and service slips • Increasing health awareness • Europe: mad cow disease affecting consumption
    13. 13. WAY FORWARD
    14. 14. Focus on Existing Restaurants - Tastier food. - Renovation. - Bearding Starbucks with upscale coffee drinks.
    15. 15. Competition, domestic 1980: Pizza Hut, Taco Bell, Burger King 1991: “Extra Value Meals,” to keep up with Taco Bell’s value pricing 1995: PRICE PROBLEM - Prices are no longer attracting customers - Received low marks on food quality, value, service, and cleanliness. Top honors instead went to Wendy’s Late 1990’s: WORKERS PROBLEM Low unemployment. Finding good help was hard while others were doing better. 2001: - McDonald’s: 1% same-store sales growth - Burger King & Wendy’s: 4% average
    16. 16. Competition, international Germany: - Burger king which expanded from 268 stores in 2000 to 390 in 2002. - local retailers such as gas-station food marts and traditional mom-and-pop bakeries. UK: - Service and cleanliness issues. - consumer tastes. Japan: saturated market, local competitors became stronger - Same-store sales fell 12.1% in 2002 - fell additional 4.4 percent in 2003
    17. 17. McCafe
    18. 18. SWOT Strengths - Market share - Convenient - Familiarity - Price consistency - Well known old brand - Restrooms cleanliness Weaknesses - Franchisee relations - Brand image - Food quality - Menu problems - Low growth and quality control Opportunities - Coffee drinks - Change positioning. - Quality improvement. - Interiors renovation. Threats - Health awareness - Criticism - Competition - Decreasing sales
    19. 19. FUTURE?

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