Download - McDonald's Marketing Mistakes Presentation
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A story of expansion, moderation and international success
By Malvika (Overview), Milena (The Mistakes), Alzahra (Way forward)
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McDonald’s & you
Value for Money?
Convenience?
Outlet Experience?
Healthy options?
Status?
Finally, do you go to it or not?
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History
Kroc was selling milkshake machines to Maurice and Richard McDonald in San Bernardino, CA, before taking the firm to 8,300 locations in 30 years.
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Today
34,000 restaurants
In 118 countries
Serve 68 million customers daily
Format: Stand-alone + Drive-throughs
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Talking revenues…
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McDonald’s Leadership
James Cantalupo(CEO 2003-2004)Jack Greenburg
(CEO 1998- 2003)Jim Skinner (CEO 2004 -2012 )
It takes A McDonald's worker 4 months to earn what the makes in an hour: $9,247
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A LOOK AT THEPROBLEMS
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THE FRANCHISE PROBLEM
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• Conflict between corporate and franchise owners
• Too many restaurants cannibalization
• Franchising 2000
• American Franchisee Association Current no. of McD outlets around you right now
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THE TOO-MUCH-TO-HANDLE ACQUISITIONS
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McDONALD’S SUFFERING PR
• Public perception of cleanliness, food and service slips
• Increasing health awareness
• Europe: mad cow disease affecting consumption
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WAY FORWARD
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Focus on Existing Restaurants
- Tastier food.
- Renovation.
- Bearding Starbucks with upscale coffee drinks.
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Competition, domestic
1980: Pizza Hut, Taco Bell, Burger King
1991: “Extra Value Meals,” to keep up with Taco Bell’s value pricing
1995: PRICE PROBLEM- Prices are no longer attracting customers- Received low marks on food quality, value, service, and cleanliness. Top honors instead went to Wendy’s
Late 1990’s: WORKERS PROBLEMLow unemployment. Finding good help was hard while others were doing better.
2001: - McDonald’s: 1% same-store sales growth - Burger King & Wendy’s: 4% average
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Competition, international
Germany: - Burger king which expanded from 268 stores in 2000 to 390 in 2002.- local retailers such as gas-station food marts and traditional mom-and-pop
bakeries.
UK:- Service and cleanliness issues.- consumer tastes.
Japan:saturated market, local competitors became stronger- Same-store sales fell 12.1% in 2002- fell additional 4.4 percent in 2003
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McCafe
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SWOT
Strengths- Market share- Convenient - Familiarity - Price consistency - Well known old brand- Restrooms cleanliness
Weaknesses - Franchisee relations - Brand image - Food quality - Menu problems - Low growth and quality
control
Opportunities- Coffee drinks - Change positioning. - Quality improvement.- Interiors renovation.
Threats- Health awareness - Criticism - Competition- Decreasing sales
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FUTURE?