Answered: 1. What are McDonakds core brand…

Principles Of Marketing

17th Edition

ISBN:9780134492513

Author:Kotler, Philip, Armstrong, Gary (gary M.)

Publisher:Kotler, Philip, Armstrong, Gary (gary M.)

Chapter1: Marketing: Creating Customer Value And Engagement

Section: Chapter Questions

Problem 1.1DQ

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Transcribed Image Text:Marketing Excellence help children with leukemia. Since then, it has expanded into a global charity offort caled Ronrald MoDonald House Charities that strives to improve chidren's lives, health, and well-being through three major programs: Ronald McDonald House, Ronald McDonald Family Room, and >>McDonald's Ronald McDonald Care Mobile. McDonald's aggressively expanded overseas throughout the 19e0s by adding locations throughout Europe, Asia, the Philippines, and Makysia. This rapid expansion, however, led to many struggles during the 1990s and early 2000s. The company lost focus and di- rection, expanding by as many as 2,000 new restaurants a year. New employees weren't trained fast or well enough, all of which led to poor customer service and dirtier restaurants. Now competitors popped up and the company acquirnd nonburger companies, Chipotle and Boston Market (which were eventually sold in 2006 and 2007). Consumer tastes changed, and new products McDonalo's McDonald's in the world's loading hamburger fast-food ike pizza, the Arch Deluxe, and deli sandwwiches faled to chain, with over 32,000 restaurants in 118 countries. More than 75 percent of MaDonald's restaurants are owned and operated by franchisees, which decreases connect with consumers, as did tweaks to the current menu including multiple changes to the Big Mac special sauce. Jim Skinner, McDonald's chief executive ex the risk associated with expansion and ensures long- plained, "We got distracted from the most important term tenants for the company. MaDonald's serves ihing: hot, high-quality food at a great value at the speed 58 million people nach day and promises a simple, eany, and convenience of McDonakd's." and enjoyable food experience for its customers. The history of the McDonaid's Corporation dates In 2003, MdDonald's implernented a strategic effort caled the "Plan to Win." The framework, which stil exists back to 1965 when Ray Kroc, a multimixer salosman, today, helped MaDorakd's restaurants refocus on affering franchised a hamburger restaurant from the McDonald a better, higher-qunity consumer experienoe rather than a brothers, named ik MaDonald's, and offered simple fods quick and choup fast-food option. The Plan to Win "play Such as the farmous 15 cent harmburger. Kroc helped de book" provided strategic insight on how to improve on the sign the bukding, which foatured red and white sides and company's 5 Ps-people, products, promotions, price, a single goldnn arch to attract local attention. Ten years and place-yet allowed local restaurmnts to adapt to dif- later, 700 McDonald's restaurants existed around the ferert evironments and cutures For example, MaDonalds country, and the brand was on its way to becoming a introduced a Bocon Rol breoldast sandwich in the United Kingdom, a premium M burger in France, and an egg. During the 1960s and 1970s, Kroc led MaDonald's tomato, and pepper McPf in China. Prices abo varied growth domestically and internationaly while pushing the slightly across the United States to better reflect diferent household name. importance of quality, nervice, cleanliness, and value. The taston in different regions. menu expanded to include the Big Mac, Quarter Some food ohanges that helped turn the company Pounder, Happy Meal, Flet-O-Fish, and breakfast tems around included offering more chicken options as beef ike the Egg McMuffin. Kroc also understood early on that corsumption started to decine, seling mik in a bottle in- stead of a carton, and removing "Super Size" options af- Therefore, he focused McDonald's advertising eforts at ter the documentary Super Sire Me targeted McDonalds these groups and introduced Ronald McDonald in 1965 and its ink to obesity. MaDonald's responded to heath during a 60-second commercial. Soon, characters such trends and began offering premium salads as well as ap- as Grimace, the Hamburgler, and Mayor MoCheese ple sices irstead of French fries in Happy Meals as well as made their debut in McDonald's advertising carmpaigns al-white-meat MaNuggets. While many of the healthier and helped lure ahildren into ts restaurants for simple, options targeted morms and held a premium price, McDonald's introduced the $1 menu at the sarme time, his core audience consisted of children and families. good-tasting food, and a fun experience. It was also during this time that McDonald's created which targeted the lower-income bracket and teenagers. Other responses included improving drive-thru service the Ronald McDonakd House, which opened in 1974 to

Transcribed Image Text:since 60 percent of McDonald's U.S. business came from drive-thrus, introducing more snack options, and ber of successful marketing campaigns and slogans refurbiching restaurants with leather soats, warmer paint such as "You Deserve a Break Today." 's a Good Time colors, and flat-screen TVs. Intial resuts were staggering: for the Great Taste of McDonald's," and "Food, Folks, from 2003 to 2006, the stock price increased 170 percent. and Fun." its curent compaign, "I'm Lovin' It," seems on Sales continued to increase through the late 2000s and track to join the athers by helping the company reach topped $23.5 billin in 2008, making MaDonalds one of record sales and growth despite difficult economic only two companies in the Dow Jones Industrial Average times. whose share price rose in 200. McDonald's continued to flourish in 20O9, Ind by its premium Angus burgers and its McCafe coffee ine, which 1. What are McDonald's core brand valuns? Have these drectly targeted competitors like Starbucks with less expensive specialty coffee drinks. McDonald's ako kunched a worldwide repackaging efort as a result of in 2. McDonald's did very well during the recession in the tense consumer research. The new packaging aimed to accomplish several tasks, including tesching consumers about McDonald's health conscicusnes and building Bwareness of its use of locally grown produce. It included 3. What risks do you feel McDanald's will face going bold text and full-color photographe of real ingredients ike potatoes on French fry packaging and vegetables, cheese, and cooking utensla on hamburger packaging. Mary Dilon, McDonald's global chief marketing officer, ax M e Mwoa Theta Rad te 'A plained that the goal is to "create unique personalities for Aatre Apri 17, 20 M O N ton lra cur menu iterrs by teling a story about each one." Through the years, McDonald's has created a num- Questions changed over the yoars? kate 2000s. With the economy turning around for the better, should MaDonald's change its strategy? Why or why not? forward? Skur ledw Vart, "Morait, the pet Maa e Pro"Nar kTima. anary 10, 200 at Adamy, "Meleral ta Winyo Kap SingStat Dnter , 200, Jia Wai, elifa zo Taugh tomomy, Some Thawing" Mina p Octier , 2.

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