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The image of McDonald’s has always been one of fast and cheap, the company is struggling to find a new niche in the market. While finding its new niche it still needs to improve drive-thru business and sales must start to climb as the hamburger giant struggles with declining sales. It is estimated that increasing drive-through efficiency by 10 percent increases average fast-food restaurant sales by $54,000.
Other trends in the market are affecting McDonald’s sales; one trend is the desire to have a fast-casual dining experience. We as consumers want that dining experience, but we want it quick, and that has aided companies like Panera Bread, Boston Market, Atlanta Bread Company.3These are a few of the chains that offer deli sandwiches and meals that are more upscale than traditional fast food, served in nicer restaurants with more comfortable surroundings, but faster than in traditional restaurants.
Another trend is to recognize heavy users which are said to be single males under 20 years of age, who have working class jobs, love loud music, don’t read much and hang out with friends. This group makes up 60% of the company’s heavy users, so McDonald’s would have to cater to that market and find a product that appeals to those users. McDonald’s has come up with advertising campaigns to help combat the dropping sales such as its New Taste Menu, and this was geared toward the healthier consumer.
The message was that the company was tasty and nutritious, friendly folks and fun could be found at McDonald’s. The company has tried other areas of expansion in the coffee market with its McCafe coffee shop. This concept was a 32-seat 900-square-foot building that shares access with a McDonalds. McCafe offers all regular coffee drinks and speciality pastry items and has grown to 300 united in 17 countries.
Although the efforts to focus on certain user groups has helped, the company has been blasted by the first lady as being one of the most unhealthy choices, and the super-size-me movement didn’t help either. We are a country that overindulges taking in portions that are 4 times the daily amount required for a healthy lifestyle, and although adding more was good for the company’s bottom line it has not been healthy for America’s waistline. In 2005, the company announced that it was to start printing nutritional information on its packaging, including fat, salt, calorie and carbohydrate content, thus putting the information directly in the consumer’s hands and allowing them to make an informed decision about their meal choices McDonald’s has been forced to contend with a number of potential obstacles to growth inrecent years, most notably stark criticism and a less-than-favorable global economic climate that has seen consumers reduce their discretionary spending.
McDonald’s has, however, employed strategies to counter these problems, and the decisions the company has taken have allowed it to maintain a strong level of growth. The move towards a healthier menu, achieved by making changes to existing items and introducing new offerings, has helped satisfy some of its critics and attract those who are perhaps more health-conscious than the ‘traditional’ McDonald’s customer, while new items such as the McCafe range are helping the company attract new customers. The message has been reinforced by a relentless and innovative marketing campaign, which has helped make the McDonald’s brand one of the most recognized and valuable in the world.
Strengths
McDonald’s has worked very hard to build a huge brand with 31,000 restaurants in 120 countries. There golden arches and Ronald McDonald are one of the most recognized symbols. McDonald’s market share is still increasing while most are losing market shares. Training managers is a serious business. They even have their own program to train managers to be the most professionally. They have global operations all over the world. A big part of the restaurants is franchised out. They have established excellent locations in places like theme parts, airports, Wal-Mart’s, and along well traveled roads. McDonalds is efficient in operating guidelines in the assembly line fashion. Our McDonalds in Ruidoso has a very good drive-through line. They keepthe line moving.
Weaknesses
McDonald’s food provides large amount of calories, but not so much nutrition. They have some very strict competition with Burger King and Wendy’s. McDonalds loses customers everyday favor of different brands. They lose money to training costs due to high turnover. There is not much of a variation in seasonal products that are offered. Some franchisees are becoming dissatisfied with fees that McDonald’s is forcing them to pay. As McDonalds keeps expanding, the amount of fees franchisees has to pay also goes up. It is causing some franchisees to sale their businesses.
Opportunities
McDonalds should research on green energies and green packaging and find a way to make it part of their advertisements and marketing strategies. They can also advertise the capabilities of Wi-Fi services in McDonalds. They are more about favors and cultures in each county they enter, which gives them a chance to favors and culture of their country. Keep a low cost menu, because it attracts low income customers. McDonalds also can create more play places for the children in more restaurants. They can also do an upscale appearance to attract a more upscale clientele.
Threats
Other fast food restaurants are being more of a threat to McDonalds every day. McDonalds is still no 1, but brands like Burger King and Wendy’s are becoming more of a threat every day. Consumers are starting to focus on healthier dieting plans. They are going to have to make a more balanced meal with fruits and vegetables in the servings. McDonalds will keep being a target for Americans being obese because of things like Supersized Meals, no fruit or yogurt, very slim salad selection. Their marketing strategies have to reach a wide variety of people. Like small children all the way to adults. Criticism comes with how they try to market.
Promotion and Communication Analysis
McDonalds uses several outlets to promote their company. One of the most successful methods of promotion by McDonalds was by coming up with their latest jingle, “I’m loving it”. McDonalds, fortunately, is not one of those companies who have a hard time with brand recognition. The familiarity of using the same color pallet, the same sounding names for their products such as “McCafe” or “McDouble” are just a few examples of ways that McDonalds has succeeded in the Fast Food industry by mastering brand recognition. Recently, McDonalds has tried to attract a different type of consumer by offering healthier menu options. Many of McDonalds recent advertising campaigns has been centralized around tasty and nutritious food options, hoping to change their image from “greasy” to “fresh” by offering grilled chicken options and more salad choices.