Creative Marketing Strategy for Mcdonald's

1. McDonald'
s
Competitiv
e Strategy
Project Sample-Yuhan
Zhou
Group Members: Yuhan
Zhou, Youwei Lian,
Jiayi Chen, Minghao Li

2. Agenda ➢Executive Summary
➢Company Background
➢Vision, mission and values
➢Goals and Objectives
➢Situational Analysis
➢Problems and Opportunities
➢Strategies
➢Timeline and budget

3. Executive Summary
McDonald’s has always been the largest fast-food chain in the U.S. Even though it still possesses the
most market share through all these years, its image to millennials seems starting to dime. That’s why this
whole competitive strategic plan aims to help Mcdonald’s win back the favors among this demographic
group.
Based on the characteristics of millennials, the core strategy is to have them find their own
personalities from Mcdonald’s brand. The specific strategies are elaborated in four aspects, including
social activation, tech sense, social responsibility and trendy. For each section of the strategies, we have
various tactics corresponding to it, which all come from millennials’ preference. Hopefully, millennials will
find their resonance in McDonald’s brand, thus resulting in 50% increase of all restaurants traffic.

4. Company Background
36,000+ location -- World Famous Leading Fast
Food Service Chain
U.S -- Where It Origins
Burgers and Fries -- What It’s Famous For
Franchisee, Affiliate and Corporation -- How It’s
Being Operated

5. Organizational vision, mission &
value
Vision: "To be the best quick service restaurant experience"
Mission: "Is to be our customer's first choice, when it comes to, top quality
products, outstanding service / cleanness and great value for money ".
Value: Make better food, more sustainable sourcing, happier people, a stronger
community and a healthier planet.

6. Goals and Objectives
Brand
Image
Millennial
Store Traffic 50%

7. Situational analysis --- Internal
$200
Billion
(2015)
REVENUE
200,000
+
RESTAURANT
S
50
Million
Per Day
CUSTOMERS
80%
OPERATION
Franchised
Quality Center
Food Safety Advisory Council
Independently owned and
operated distribution channel
Supply Chain & Quality Assurance Product
Substantially Uniform Menu
Local Flavor
Hamburger, cheeseburger,
Fries, nuggets, oatmeal,
wraps, coffee, beverage
All-day breakfast
Egg Mcmuffin, bagel
sandwiches

8. Situational analysis --- Internal
Culture Change US Emphasis
Ability to move one
test market in April to
launch in October in
over 13000
restaurants
Simplify order procedure
Interact with customers
through mobile app
More choices with compelling price
Future
Resolution

9. Situational analysis --- Customer
“All Ages”
25%
Eat some type of
Fast food every
day
44%
Say that they’ll eat
fast food at least
one time per week.
6%
Say that they
eat fast food 7x
per week.
53% vs. 42%
Men are more likely
than women to eat
fast food weekly.
110 million
Visited McDonald’s
in the past month at
least one time.
Household Income
$75k/year
vs
$50k/year
Same likelihood to
eat once per week at
Mcdonald’s
39% of less than
$20k/year
Eat at least once per
week

10. Situational analysis --- External

11. Situational analysis --- External
Regulation & Policy:
➢Food safety & standards
➢Labor relations
➢Smoking bans
➢Franchising laws
The level is medium
The trend is increasing
Technology & systems:
➢Quality of service
➢Point of sale systems
➢Labor scheduling
➢Social media
The level is medium

12. Competitive Analysis
McDonald’s Panera Bread Starbucks Chipotle
Strengths
1.Largest fast food
market share
2.Strong brand image
3.Higher income and
more capital
4.Global operations all
over the world
1.A core
competency of
Panera bread is in
artisan foods
2.Strong consumer
loyalty
3.Highest quality of
the food
1. Highest sales
growth
2. Global coffee
brand built upon a
reputation for fine
products and
services
1.Rapid growth
2. Healthier food
choices
3.Strong
management team
and good at
innovation

13. Competitive Analysis
McDonald’s Panera Bread Starbucks Chipotle
Weaknesses
1.Changeless on
food menu
2.Unhealthy
3.High employee
turnover
1. Brand presence of
the company is not
as strong as
McDonald’s
2.The development
of the brand is slow
3.The restaurant
does not provide
1.Slow to diversify
into other sectors
2.Stereotype of the
brand image
3.Remain
vulnerable to the
new product
1.Higher price than
competitor
2.Limited menu
3.Not authentic
Mexican food

14. Problem “Big Mac” is Facing
Ain’t
Popular
Among
Millennial
⇩ 2011
Age 19-21
Monthly Visits Has Fallen by 12.9%
Age 22-37
Monthly Visits Remain flat
⇩ 2012
3.6 billion visits vs. 4.2 billion visits in 2007

15. Chances to Reverse
Millennials
Easier to access to millennials in digital age
56% report them to be
one of the first to try
technology
50% of Millennials wouldbe more willing to make apurchase from a companyif their purchase supportsa cause
46% of them post
original photos or video
online that created by
themselves
Active in social activities of
different types

16. Target Audience
Demographic
❖ 18-24 - the millennials
❖ 31.2 million (9.7% of
U.S Population)
Psychographic
★ Transparency: the quality of food, the
transparency of a company, where the
food comes from, and the sustainability
of that food
★ Food experience
★ Food meets their healthy lifestyle
★ Social Responsibility
★ Early adopter of technology
★ 98% of online US adults aged 18-24
use social media

17. User Profile

18. Strategy
Social
Activation
Tech
Sense
Social
Responsibility
Trendy

19. Unique Selling Proposition
Find Your Personalities with Mcdonald's

20. Acquisition
Speak for people and create resonance
Retention
Provide reward value and new experience

21. Social Activation

22. “I am best”
“M” logo
Encourage Millennial to pose “M” in
their creative way
Purpose: Showcase their strengths
and expertises
#mbest

23. Ad Campaign
Slogan - “That’s how you make M
colorful”
Support LGBT
#mcolorful

24. Collect different filters
in different store
Where, when, and why
40%~60% of daily
Snapchatters
”Snapchat - Sponsored Lenses & Geofilters”
Interactive ad
Average play 20
seconds
41%

25. Tech Sense

26. Geofencing & Mobile App Marketing
Real-time Promotion
Reward Program
“Hey, you are in the M zone.
Why not get refreshed or sweeten?
Today-only Deal
Get your next selected beverages 50% off”
Bonus: Buy 8 combos for 1 combo free
Lottery: 10 Free Recent Celebrity Concert
tickets for those who purchase over 50 times
and pay by mobile app in 3 months

27. In-store VR Kiosk
● Directly Order & Pay
● Customize their food
● Virtual Tour to Mcdonald’s
factory
Restaurants
in
the hub area
of
major cities

28. Social Responsibility

29. Set up Recycle stations in
selected McDonald’s
locations
Recycle: batteries, mobile
phones, globes and printer
cartridges
Recycle Station

30. For every dollar you spend
in McDonald’s, we donate 5
cents to the UN Refugee
Agency
Charity Program

31. Trendy

32. Sponsorship for Electric Daisy Carnival
Official Food & Drinks
Provider
Peripheral Products

33. Mcdonald’s Dota 2 Tournament
20M
M
Viewership

34. TimeLine & Budget
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
#mbest $ 40 million
#mcolorful $ 50
million
Geofilter $40 million
Lense $40 million
Geofencing $ 75 million
VR Kiosk $ 50 million
Recycle $ 18 million
Charity $ 100 million
EDC $ 50 million
Dota 2 $ 50
million
Budget account for 6% of the sales from last year: 8.56 billion * 6%
Total budget: $513 million

35. References
http://www.valueline.com/Stocks/Highlight.aspx?id=13574#.V5_NfZOAOko
http://www.valueline.com/Stocks/Highlights/McDonalds_Corp___A_Short_SWOT_Analysis.aspx#.V5_TAfkrIY0
http://www.freeswotanalysis.com/restaurant/646-panera-bread-swot-analysis.html
https://www.yahoo.com/beauty/why-millennials-just-arent-that-into-mcdonalds-126035358772.html
http://www.millennialmarketing.com/who-are-millennials/
http://thenextweb.com/socialmedia/2011/10/08/98-of-online-us-adults-aged-18-24-use-social-media/#gref
https://www.djmastercourse.com/edm-demographics-case-study/
http://brandongaille.com/22-notable-mcdonalds-customer-demographics/

36. Thank You!