McDonalds Case Study
Overview of E-Business Marketing <ul><li>McDonald’s is a large corporation in the fast food industry.  </li></ul><ul><li>T...
<ul><li>They employ 447,000 people.  </li></ul><ul><li>They have over 3,200 restaurants in over 119 countries.  </li></ul>...
Marketing challenges faced <ul><li>Strengths:  </li></ul><ul><li>Brand Awareness  </li></ul><ul><li>Broad geographic locat...
<ul><li>Weaknesses:  </li></ul><ul><li>There is lower operating income in Europe and Canada – In Canada the operating inco...
<ul><li>Opportunities:  </li></ul><ul><li>Newer products </li></ul><ul><li>More franchises - less risk </li></ul><ul><li>H...
<ul><li>Threats:  </li></ul><ul><li>Competition - global, national, regional, and local. Commodity </li></ul><ul><li>Growi...
E-Business Marketing Goal or Strategy <ul><li>McDonald’s real goal as a corporation is to make money for the stockholders....
 
Strategies…. <ul><li>Goal changing from getting bigger, to getting better. </li></ul><ul><li>Advertise on the internet mor...
Business Model <ul><li>The business model seems to be a branding model. </li></ul><ul><li>They are trying to get out there...
The Value Bubble
<ul><li>They utilize the following items: </li></ul><ul><li>Attract, engage, retain, learn, and a little relate </li></ul>
Attracting <ul><li>Secondary advertising – customer videos and employee videos – Youtube </li></ul><ul><li>Metatags </li><...
 
Engaging <ul><li>Macromedia Flash – used extensively </li></ul><ul><li>Games for the kids </li></ul><ul><li>Online calcula...
Retaining <ul><li>The site uses a common color theme of red, yellow and black, with a logo on the top left </li></ul><ul><...
Learning <ul><li>The website uses clickstream technology on the server side. </li></ul><ul><li>They collect information ab...
Relating <ul><li>Everyone sees the same page </li></ul><ul><li>They are collecting data, and possibly using it to make the...
Review <ul><li>Overall, McDonalds is trying to do what they do best: Marketing </li></ul><ul><li>They are trying to contro...
Customerization <ul><li>McDonalds can fit into some aspects of the customerization model. </li></ul><ul><li>The one downfa...
Questions? Examples… <ul><li>What is McDonald’s biggest strength? </li></ul><ul><li>What is the ultimate goal for corporat...
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Casestudy Mc Donalds

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Casestudy Mc Donalds

  1. 1. McDonalds Case Study
  2. 2. Overview of E-Business Marketing <ul><li>McDonald’s is a large corporation in the fast food industry. </li></ul><ul><li>They have been around since 1955 when Ray Kroc started the chain of McDonalds. They have been growing ever since. </li></ul><ul><li>The majority of the restaurants are owned through franchises. </li></ul>
  3. 3. <ul><li>They employ 447,000 people. </li></ul><ul><li>They have over 3,200 restaurants in over 119 countries. </li></ul><ul><li>The majority of the McDonald’s franchises are owned by individual franchises. McDonalds is the largest fast food industry in the world. </li></ul><ul><li>Their primary competitors are other fast food chains such as Burger King and Wendy’s. The competition can get pretty intense to build customer loyalty to their food. </li></ul><ul><li>The McDonalds Brand is one of the most well known Brands in the world. </li></ul>
  4. 4. Marketing challenges faced <ul><li>Strengths: </li></ul><ul><li>Brand Awareness </li></ul><ul><li>Broad geographic locations </li></ul><ul><li>McDonalds standard and conformed changes in large areas efficiently </li></ul>
  5. 5. <ul><li>Weaknesses: </li></ul><ul><li>There is lower operating income in Europe and Canada – In Canada the operating income fell 12.6%, likewise the European restaurants operating income also fell at 1.5%. </li></ul><ul><li>There is a relatively small revenue growth - In the last 5 years McDonalds revenues have grown at a rate of 7.5% compared to industry growth at 13.6% </li></ul>
  6. 6. <ul><li>Opportunities: </li></ul><ul><li>Newer products </li></ul><ul><li>More franchises - less risk </li></ul><ul><li>High Growth in China and Russia </li></ul>
  7. 7. <ul><li>Threats: </li></ul><ul><li>Competition - global, national, regional, and local. Commodity </li></ul><ul><li>Growing health conscious population </li></ul><ul><li>Food safety – bacteria, e. coli, 41 -150 </li></ul>
  8. 8. E-Business Marketing Goal or Strategy <ul><li>McDonald’s real goal as a corporation is to make money for the stockholders. Their stated goal is Long term sustainable growth for all stakeholders. </li></ul><ul><li>McDonalds has realized that they are reaching a big maturation stage in the business cycle, based on its profits slowing down more and more every year. It is going to be time to reinvent or re-image this corporation to try to start the business cycle over again. </li></ul>
  9. 10. Strategies…. <ul><li>Goal changing from getting bigger, to getting better. </li></ul><ul><li>Advertise on the internet more. Get more people to visit their website. </li></ul><ul><li>Secondary advertising </li></ul><ul><li>Of course build brand awareness and loyal customers </li></ul>
  10. 11. Business Model <ul><li>The business model seems to be a branding model. </li></ul><ul><li>They are trying to get out there and making sure every last person knows what McDonalds is </li></ul><ul><li>McDonalds spends more money on marketing than any of its fast food competitors. </li></ul>
  11. 12. The Value Bubble
  12. 13. <ul><li>They utilize the following items: </li></ul><ul><li>Attract, engage, retain, learn, and a little relate </li></ul>
  13. 14. Attracting <ul><li>Secondary advertising – customer videos and employee videos – Youtube </li></ul><ul><li>Metatags </li></ul><ul><li>Advertising on products – happy meals, monopoly </li></ul>
  14. 16. Engaging <ul><li>Macromedia Flash – used extensively </li></ul><ul><li>Games for the kids </li></ul><ul><li>Online calculators for nutrition information </li></ul><ul><li>They use a map locator to show you how to get to McDonalds (inaccurate map – no road names) </li></ul>
  15. 17. Retaining <ul><li>The site uses a common color theme of red, yellow and black, with a logo on the top left </li></ul><ul><li>There’s a news link that shows the news that goes on, but is only updated once every two months </li></ul><ul><li>Overall the site is easy to navigate </li></ul>
  16. 18. Learning <ul><li>The website uses clickstream technology on the server side. </li></ul><ul><li>They collect information about what pages you visit and how long, along with where you are approximately from </li></ul><ul><li>They also collect information about certain programs that are installed on the computer </li></ul>
  17. 19. Relating <ul><li>Everyone sees the same page </li></ul><ul><li>They are collecting data, and possibly using it to make the site efficient </li></ul><ul><li>They also use telephone, e-mail, and regular mail as forms of relating </li></ul>
  18. 20. Review <ul><li>Overall, McDonalds is trying to do what they do best: Marketing </li></ul><ul><li>They are trying to control the secondary advertising, and utilize it for something that’s profitable for the stockholders </li></ul><ul><li>They are building brand awareness through this marketing </li></ul>
  19. 21. Customerization <ul><li>McDonalds can fit into some aspects of the customerization model. </li></ul><ul><li>The one downfall that they will have a struggle doing is “premium price acceptance”…too much competition. </li></ul>
  20. 22. Questions? Examples… <ul><li>What is McDonald’s biggest strength? </li></ul><ul><li>What is the ultimate goal for corporations like McDonalds? </li></ul><ul><li>What is McDonald’s biggest weakness? </li></ul>
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