Situational Analysis:• In 2012, the public health concern for fast food customers was raised significantly when Jamie Oliver, television chef, introduced the public to the term ―pink slime.‖ ―Pink slime‖ is the substitute term for lean beef that has been processed and chemically cleaned by the use of ammonium hydroxide. Ammonium hydroxide is an ingredient in fertilizers and household cleaners. (Sanburn, 2012)• Due to the lack of customer communication regarding the decision to discontinue the use of the ammonia-treated beef, a year before it was made public by the media, McDonald’s public perception was lowered. Shortly after McDonald’s, who has over 13,000 stores in the US, changed their beef, Jamie Oliver, tried to take credit for the announcing of McDonald’s beef choice on the show. However, McDonald’s released a statement saying before Jamie’s show was aired in April, ―we made a decision to discontinue to the use of ammonia-treated beef in our hamburgers.‖ (Sanburn, 2012)• McDonald’s now resides on changing the current image by purchasing locally grown organic vegetables, and starting a farmers’ market to help rebuild credibility in the community. The purchasing of locally grown organic vegetables will build customer interest showing McDonald’s not only cares about the customer’s health, but also the health of the community. McFarmers’ Markets will create customer awareness by allowing the customers of the community to socialize, receive an education about the products, better the local economy, and help further establish a positive future brand image.• As of Friday, August 31, McDonald’s will be sending out promotional letters to all stakeholders informing them of the events to come, and the procedures that will be followed. Proper promotion and communication will ensure credible organization, allowing the community to know that starting Saturday, September 1, McFarmers’ Market Day will be held the first Saturday of every month. A percentage of the proceeds made will be donated to Ronald McDonald House Charities. RMHC provides a home for families of hospitalized children at little or no cost.
SWOT ANALYSIS STRENGTHS WEAKNESSES Quality (competition does not buy products from organic Mcdonald’s currently has a public image of adding to the suppliers) problem of obesity. One of the largest global fast food chains Customer perception was recently misconstrued by thinking McDonald’s was poisoning the public with “Pink Slim” High consumer demand in repeat business Lost a small percentage of committed customers due to secretive operations of changing the beef without telling the public until Jamie Oliver started attacking McDonald’s beef. High global brand recognition Loss of credibility and trust Capitalize on variety with our menu (burgers, chicken sandwiches, wraps, salads, optional side items, desserts) Good PR image when supporting the community in charitable and educational events. High Social Media involvement is used though out many channels such as Youtube, Facebook, Twitter and the McDonalds blog OPPORTUNITIES THREATS Entering of a new market while maintaining current one Losing more customers to the “Pink Slime” issue Obtaining a different healthier brand image The new market does not accept what McDonald’s is doing Obtaining a higher percentage of brand loyalty Loss of money in advertising in promotional department (also many other departments) Higher customer satisfaction by buying locally grown organic Damaged vendor relations products Higher economical rate of return by buying organic products Competition may capitalize on the issue from local farmers Educational opportunities to advance the future generations Negative PR (If situations are handled wrongly we could suffer on proper food choices, and introduce more to McDonald’s at the loss more customers) the same time Higher customer awareness through changes in promotional Wrong celebrity endorsement could create a bad reputation departments ( nutritional facts, organic activities, overalls on for future healthy plans McFarmers’ Market Day)
Goals of Communication • Inform the customers of our new positive image. This would generate brand loyalty by influencing the customers from a healthier organic approach. • Educate current and potential future customers. McDonald’s will try to persuade customers on why organic is the best option for them by creating small interactive events to learn about the products at McFarmers’ Market Day. • Motivate support from the community to influence others to support and be involved in the McFarmers’ Market Day. This would eventually grow to generate a higher future customer basis. • Generate positive media attention and understanding regarding McDonald’s wants for a healthier future.http://www.wallpaper1080hd.com/desk/1440x900/2010/0829/5274.html
Stakeholders & Audience Selection Stakeholder Type Customers Venders Farmers Managers Media EmployeesAudience SelectionTarget Market: Middle Class Mothers & Students with agricultural interest Age – 24-39Consumers of all demographics are obtaining higher levels of education, and studies showthese are the groups that are more likely to buy organic products. (Economic ResearchService, 2009) Trial runs of this plan will start in areas with higher levels of education
Key Messages • Building awareness and interest in McDonald’s new organic produce. • Changing the perception of how consumers view McDonald’s values. • Attracting a new target market while engaging consumer to help create futurehttp://www.20twentygraphics.com/blog/?Tag=tips%20and%20strategies
Supporting Facts ―Organic foods now occupy prominent shelf space in the produce and diary aislesof most main-stream U.S. food retailers, while offerings of organic meats, eggs,breads, grains, and beverages have increased. The marketing boom has pushedretail sales of organic foods up to $21.1 billion in 2008 from $3.6 billion in 1997.‖(ERS, 2009)―In 2006, there were more than 4,300 farmers’ markets operating across thecountry—an 18 percentage increase from the 3,700 markets operating in 2004.Recent estimates suggest more than 60,000 farmers participate each year andgenerate $1 billion in consumer spending. ‖ (Trimarchi, M., 2012).―Research has suggested that when a brand becomes associated with an event,some of the associations linked with the event (e.g. youthful, relaxing, enjoyable,disappointing, sophisticated) may become linked in memory with the brand.‖(Gwinner and Eaton, 1999)(McDonald’s Media Kit located on their website) Promoting of apples instead of friesby the end of 2012 will create a 20% reduction in calories to most popular happymeals.
Tactics & Stakeholder Tactic Audit Tactics Duration CostYoutube video promoting new organic goods / 2 mins ________McFarmers’ Market DayNew page on website that helps promote ___ Current payment to company’s webMcFarmers’ designersPromotion of McFarmers’ Market Day though $25,000,000different Media Channels (Budget)----Press Releases 5-10 mins 6,250,000----Commercials 1-2 mins 6,250,000----Radio 30 secs 6,250,000----Print --------- 6,250,000 (This may change depending on demands of the media.)Stakeholder Type Audit Face-to- Telephone Email Print Web Direct Radio Social Face Ads Ads Mail MediaCustomers * * * * * * *Venders * * *Farmers * * * * * * * *Management * * * * * * * *Media * *
Success Measures & Total Budget S.M. *Scorecard* *Ad Cost Analysis* Final Success will be measure by the change in: *Quantitative estimation of how successful the organic will be compared to our predictions. *We will also look at the Number of satisfied customers who fill out our surveys Starting Total Budget Estimated around - $85,000,000.http://www.pulsarmedia.eu/r_miscellaneous_wallpapers_70_mcdonalds_line_wallpaper_51474.html
Sources:Gwinner, K.P., Eaton, J. (1999). Building Brand Image though Event Sponsorship: The Rold of Image Transfer’, Journal of Advertising, 28,4(Winter), 47-57Sanburn, J. (2012, Feb 1). McDonald’s Drops ‘Pink Slime’ From Hamburger MeatRetrieved from http://moneyland.time.com/2012/02/01/mcdonalds-drops-pink-slime-from-hamburger-meat/Seitel, F. (2011). The Practice of Public Relations. Eleventh Edition. Upper Saddle River, New Jersey: Pearson Education Inc.Trimarchi, M. (2012). Ultimate Guide to Farmers’ Markets.Retrieved from http://recipes.howstuffworks.com/farmers-market.htm/printableEconomic Research Service (2009, Sept). Marketing U.S Organic Foods: Recent Trends From Farms to ConsumersRetrieved from http://www.ers.usda.gov/media/185268/eib58_reportsummary_1_.pdf http://www.pulsarmedia.eu/r_miscellaneous_wallpapers_70_mcdonalds_line_wallpaper_51474.html