situational analysis - rational - therical background 3
TRANSCRIPT
MacDonald’s : Use Social Media Mr Peters 2011-2012 Simon Bridel : 2053414 – Marie-Emmanuelle Berdah : 2053328
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 2
RATIONALE
McDonald's was ranked 32nd in the top 100 brands mentioned on the social web
in 20081. McDonald’s is the largest chain of fast food international suppliers. The annual
income of the company amounted to 18,167,452 million Euro in 20102. The company
operates with over 33,000 restaurants worldwide and more than 118 countries all
around the world3. McDonalds had been implanted in France in 1979. In 2010,
McDonalds France was the second largest contributor to the group results4. An
effective awareness and a good use of social media are the keys to solidify the current
position of McDonalds. Consequently, we will be focus on how McDonalds uses social
media in France.
The basis of social media is Web 2.0. The term Web 2.0 is associated with web
applications that facilitate participatory information sharing, interoperability, user-
centered design, and collaboration on the World Wide Web5. At the origin, the users
started with blogs and websites. Currently, these methods of communication are
increasing at a large scale. Social Media are now the main pillars of Web 2.0. Social
Media is a type of online media that accelerates conversation as opposed to traditional
media, which delivers content but does not allow readers/viewers/listeners to
participate in the creation or development of the content6. Finally, incorporate a new
social media structure in a company is definitely necessary in a developed organization.
It is a new way to trade.
The company will automatically benefit from the social media because the firm
could use the customer’s behavior to understand their different expectations via
internet. The purpose of the company is to increase the visibility and the proximity with
their clients. McDonalds does not really deal with social media in France. They could use
this tool to attract the customers on their website. Moreover, appeal to the consumer on
the internet will become a priority for their web strategies.
That is the reason we are going to study the different steps the company could
use to improve their social media communication.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 3
SITUATIONAL ANALYSIS
To define what a social media communication can bring to this company, it is
important to understand some points.
Social Media cannot directly give us figures about sales or efficiency because the
meaning point is to create exchange between a company and its customers. It is kind a
question of relationship between them and make the customer feel as a partner of the
company. For example, if a customer creates content in a website about a company, the
possible consequence will be that many users will read it and they might share it on
their personal pages or websites. This is a viral aspect. Moreover, this is a credibility
bonus for the company you definitely can gain the customers confidence if you can
connect to them on both personal and professional level7.
Social media are becoming essential in order to understand the web users. It is
therefore necessary to attract their attention. It lets a company improve branding, and
boost the impact of his direct marketing, by for instance increase web traffic8.
Furthermore, this is a cheaper way to communicate. It can affect lot of people and
make them talk about your company. Currently, many web users are giving their point of
view for any subjects. By make them talk in a good way of your company; you are
increasing your chances to get a good ranking in some web research program (Google,
YouTube, specific websites etc).
In France, McDonalds has been using social media but they need to redefine it in
order to make a coherent and attractive work. For example, Twitter’s page of McDonalds
in France is still «in building» (See Appendix 1). This is a very important point to
improve it because web users who are giving their opinion about everything and they
also can follow a company or a person compose Twitter. McDonalds France does not
solicit enough their consumers on the net. This is has had a lack of content, presence and
activity on the various social media.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 4
Figures speak for themselves. In France, more than 3/4 of web users have
consulted a blog or a social network in December 2010. More precisely, 32, 5 million per
month and 11,7 million per day did it. In terms of hours, it is like five hours by
consulting websites or a social network per month. (Médiamétrie NetRatings)
In addition, we can see that competitors, for example QUICK restaurant are now
having a good using of social media where they let the consumer see the different offers
and let them contribute to their choice of sandwiches offer with games and vote. The
numbers of fans is eighty percent higher than McDonalds fans (Facebook). Their use of
social media is actually base on the principle of direct interaction with the consumer.
Thus, they promote a simple and constructive exchange to improve their offers and their
relationship with the customers as well. They are our first competitor.
Another competitor of McDonalds in France is Speed Burger. This company
delivers good hamburgers homemade and they are still considering as a fast food maker.
They are present on Facebook and on Twitter as well. Their Twitter page is well
designed (Background, pictures etc), they are also posting every new promotional offers,
advantages for the consumer and about new opening restaurants. In fact, they are doing
a great job by making the consumer aware about what they are doing. Nevertheless, this
company is not well known but they are working on it with a social media
communication. As we can see on their Facebook page, they are growing about twenty
percent per year concerning the fans. Twitter’s figures are about fifty percent.
Dominos Pizza is a fast food competitor as well. They deliver sandwiches and
pizzas. There are 193 restaurants in France (Domino’s website). Their Facebook page is
strongly structured and the customers can find directly the information that they need.
Through their Twitter’s page, their clients can access to all promotional offers. They
have much more fans than McDonalds on Facebook, which make them the second one
after Quick. They are considering their consumers as partners who can improve their
visibility on social network.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 5
Courtepaille restaurant is another restaurant in France that is a competitor of
McDonalds. Nevertheless, Courtepaille is not really a fast food company. They offer full
meals that are affordable. That could be considered as an alternative for eating.
However, their presence on social media is very weak. After some researches, we saw
that they have a low impact on internet.
Facebook Twitter LinkedIn Turnover Numbers
of stores Quick 219,331 2 52 185,000,000 € 265 Domino’s Pizza
161,765 1,328 20 89,700,000€ 142
McDonalds 158,000 65 0 3,000,000,000€ 1,134
Speed Burger 1,942 143 0 28,000,000€ 44 Courtepaille 41 1 32 245,000,000€ 216 NB: all these information are about French market only.9 10 11 1213 In conclusion, to this situational analysis, there is a huge opportunity for Macdonald’s France to use social media and there is no doubt that they need to focus on simple aspect of this type of communication. It will increase its visibility and give them more credibility in social media.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 6
THEORICAL BACKGROUND
What is a social media?
According to “merriam website”14, it could be define as a forms of electronic
communication (as Web sites for social networking and micro blogging) through which
users create online communities to share information, ideas, personal messages, and
other content.
This brief definition let us go to one point; web users have made this type of
communication and it may contribute a lot concerning the visibility and awareness for
an organization or a company.
Social media is the human conection between media. The rainbow theory deals
with the interaction between a company and its consumers; listen, learn, share, join,
engage. According to this theory, people want to talk about you product or brand. In
average, there are almost 25 millions conversation about brands per week15. This theory
also states that there are three lever wich are listen and learn, participate and engage
and finally leads loyalty.
As discussed in the analysis situational, we have seen that MacDonald’s is present
on the social media’s market. Nevertheless, their lack of knowledge about social media is
clearly identified. This company use social media but not in the good way. McDonalds
has to secure the loyalty of their clients.
According to “Techterms website”16 Facebook is a social networking website
media created in 2004 by Mark Zuckerberg for the student of Harvard University. This is
the biggest social media now on. The definition of LinkedIn is as follow : LinkedIn is
a social networking website geared towards companies and industry professionals
looking to make new business contacts or keep in touch with previous co-workers,
affiliates, and clients (According to Hudson Horizon’s website17).
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 7
Twitter is the second largest social media18. We can define it as follow; Twitter is
an online social networking and micro blogging service that enables its users to send
and read text-based posts of up to 140 characters, informally known as "tweets"19. This
social network gives a real chance to have a discussion with the customers and also
provide a strong relationship. McDonalds France has to just take care about wha t
followers are posting and instantly answer to their questions. That way the interaction
will be done and the visibility will surely increase.
McDonalds France has created their Facebook page in January 2011. At the
beginning, the page did not offer a good service for their consumers. Firstly, they did not
grant enough attention on consumer’s discussion. Secondly, they did not take care about
their page’s quality. Their logo is just product billboard and everyone can post on the
wall. This is one of the main problems because clients cannot find information that they
need. For example, we can see an advertise between two consumer’s questions which
show us that they need to rebuild their Facebook page including a huge change of the
settings.
Social media works via a single space and at the same time, attractive. The
consumer is seeking information, clear, free and complete. It should not be embarrassed
by organizational problems and gaps. Social media is defined in three main areas;
visibility, credibility and contact.
The first one is the visibility. Thus, the content posted by users, pro
or individual, has a real impact on the visibility. Companies must create quality
content, encourage contributions and regularly update their news. Secondly, the
exchange of expertise and support premium networks and social media is definitely
needed. By positioning itself as an expert in a specific area, the company
could participate in the exchange by providing real answers and relevant qualitative
information. Thirdly, the media and social networks are using a strategy of identifying
and attracting new customers. These social networks allow easy access to recent
information. Often, users do not hesitate to disclose their personal details on social
networks and their point of view as well.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 8
McDonalds is using the “Walk Before Running”20 theory. Indeed, it is better to
learn the first reactions (walk) before to activate the strategies that are helping the
company to growth the community (run) of the internet users. There are over 800
million active users on Facebook21 and more than 50% of the users log on the website
every day. After some research, we have figurate out that McDonalds is still in a “walk”
position. They need to start running and growing their community to be present on
social media world.
To conclude, we have decided to revolutionize the way of thinking of the
company by using simple techniques of social media and finally to get the success back
of the reputation of McDonalds on the internet.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 9
CONCEPTUAL MODEL
How McDonalds could generate more traffic on their social networks pages? As
maintained by the theoretical background, McDonalds has three opportunities to solve
their problems. The first one is increase the visibility. The second one is to improve their
relationship in term of contact quality. The last one is the credibility question.
The three hypotheses to focus on are now defined: Is visibility the main
solution of McDonalds’s problem? Is credibility a good way to increase their traffic? Is
contact the best solution to improve their social media?
How to generate traffic on their social network?
As we have seen on the situational analysis, Quick has perfectly understood how
the visibility can work. They have a clean, complete and well design Facebook page. That
way, the consumers can find whatever they are looking for. Quick organize some contest
with their products to offer coupons for their customers. There is another interesting
example; McDonalds US. In fact, their use of social media is completely different
compared to McDonalds France. Their social media methods has been become a strongly
tool and indispensable one. It is very well organized and it let them navigate easily
between the different parts of the page. Indeed, they created a “Local” tab on their
Facebook page, which can allow them finding the nearest McDonalds wherever they are.
Consequently, commercial action will solidify the loyalty of their web users. F inally, they
feel concerned about these actions and it will lead to a better relationship between them
and the brand. There is a world of a difference between online existence and online
presence.
Visibility
CredibilityContact
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 10
Concerning the credibility hypothesis, there is two ways to increase it. The first
one is to make sure that people are convinced that you know your stuff. This is about a
lack of knowledge, having a poorly written web site or social media space can spell
disaster, even if you are giving solid tips22. By combining solid tips and a structured
page, a company has a coherent impact of what they decided about their social media
strategies in order to satisfy their consumers. For instance, McDonalds US Facebook
page gives a clearly and simple information.
Their credibility is strengthened by a constant and a qualitative discussion with
the consumers. The second one is give people what they want. It is important to focus on
your consumer’s wishes. Indeed, McDonalds US has created a “survey” tab to be
constantly aware about the consumer’s point of view.
For the last hypothesis, which is about the contact, it is simply to improve the
interaction with web users navigated in your pages. We can considerate it as the main
social aspect in order to make the consumer feel more and more solicited. That way they
would like to visit the company’s page and come back frequently. The perfect example
would be Domino’s Pizza strategy on Twitter. They are answering to their client’s tweets
personally. This helps them to keep their followers by maintaining a qualitative and
constructed dialogue. That is what contact talks about.
After some research, we have discovered that visibility is the first step that
McDonalds should use in their social media communication. To discuss this choice we
think that McDonalds should inform their consumers about their social networks pages.
The credibility and contact point will come after because they need a strong structure
before which is visibility. The following step will be to show how McDonalds can simply
improve it.
Our final hypothesis is: Visibility generates more traffic. Will it improve their
social media marketing?
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 11
RESEARCH DESIGN
QUESTIONNAIRE
We are two students in Avans Business School and we are studying on how McDonalds
could improve their use social media. This questionnaire will help us to know the point of view
of the customers and the consumers. We would like to focus on French people between fifteen
and thirty years old. We have chosen this segment because they are part of the web 2.0
generation. They know how to use it, and how it works. Social media is a young type of
communication and this segment understand perfectly what influence it has on our current life.
We would like to administrate this questionnaire on internet and on the street. This will help us
to have a global idea about the consumer’s feedback. We would like to thank you for the time
you just accorded to us.
INTERNET & SOCIAL MEDIA
1. Do you have a Facebook account? Yes No
3. Do you have a website or blog?
Yes No
5. How much time do you spend on social website?
1 hour per day Between 2 and 3 hour per day 4 and more Never
FAST FOOD
6. Which fast food brand comes to your mind in first?
8. Which fast food company do you prefer?
Courtepaille McDonalds Speed Burger Domino’s Pizza Quick
2. Do you have a Twitter account?
Yes No
4. How much time do you spend on internet?
1-2 hour per day Between 4 and 6 hour per day 6 or more Never
7. How often do you go to a fast food?
Once per month Between two and four per month Twice per week More :
9. Do you go to McDonalds?
Yes No
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 12
SOCIAL MEDIA & FAST FOOD
10. Do you follow a fast food company on Facebook?
Yes No
12. If Yes, Why are you following this company on internet?
Promotional offer Information New Product To find the closet McDonalds in a city
13. Have you ever seen any advertise about McDonald’s social network (Facebook, Twitter) in their restaurant?
Yes No
14. Would you be interested by seeing any promotional offers or information of McDonalds in a social network?
Yes No
PERSONAL INFORMATION
15. How old are you?
Between 15 and 20 years old Between 20 and 25 years old Between 25 and 30 years old
17. Sex?
Male Female
According to our hypothesis and the question thirteen and fourteen, we have
figurate out that McDonalds should give more efforts on their promotio nal offer and
more information in their social network. The visibility point validates our theory.
11. Do you follow a fast food company on Twitter?
Yes No
16. What is your social professional group?
High professional society Student Employee Employer No activity
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 13
CONCLUSION & RECOMMENDATIONS
To conclude, we have seen that McDonalds can improve their use of social media
by increase their visibility on the different social networks. In order to help them, the
following paragraphs will precise how they can do it.
As seen in the analysis, the consumers of the company who are making post on
the Facebook page do not have answer to their questions. That is why the firm need to
create a “Question/Answers” tab, this will help McDonalds to answer to their questions
and this will create a real link between the company and the consumers. Moreover, they
need to propose to their consumers special offers in order to make them “like” their
Facebook page. We would propose to the brand to create also a “Video” tab where every
client could watch the different adverts. They need to create an interesting content for
their customers. In fact, they could share it and participate to the visibility of McDonalds.
These operations have to be done on the Facebook page and on the Twitter page at the
same time. McDonalds has to be the only one available to post on the Facebook wall in
order to have a qualitative page.
The consumers perceive McDonalds as a work “degrading” because for them this
job only consist as making fries and hamburgers. As we can see in an ad23, this work can
also consist in managing the workers. People who are working as a manager receive
training enabling them to learn to manage a team. We could purpose to the brand to
persuade their workers to create a LinkedIn page where they can show to the world
what they are truly doing. It can improve the working reputation of McDonalds but let
the employees talk about their responsibilities in order to show that you can graduating
in your professional ambitious.
The Twitter page of McDonalds is still not working on the internet in France.
McDonalds France will have to build their tweeter page with the same model of
McDonalds US. It is a simple operation, which can bring many advantages. They also
need to be available to answer immediately to the clients with a clear and a simple
solution.
Finally, the only way to validate the visibility hypothesis is that the company
must take this project seriously and create a new social media department. That would
support their position on social media.
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 14
APPENDIX
APPENDIX: “THIS IS A TEST” (FRENCH TWITTER PAGE)
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 15
REFERENCES
1 Report from private organization, available on organization’s website (2009, December 1st). La stratégie de McDonald’s sur les médias sociaux . Article posted to http://www.athomedia.com/blog/2009/12/01/strategie-mcdonalds-medias-sociaux/ 2 Online document, no author identified, no date McDonalds Company’s Turnover. Retrieved September 30th, 2011, from http://www.zonebourse.com/MCDONALD-S-CORPORATION-4833/fondamentaux-chiffres/ 3 Report from private organization, available on organization’s website Getting to know us... Retrieved September 30th, 2011, from McDonald’s website http://www.aboutmcdonalds.com/mcd/our_company.html 4 Online newspaper’s article Galliona A.S. (2009, January 28). La France, deuxième meilleur marché de McDonald's. Article posted to http://www.20minutes.fr/article/554595/Economie-La-France-deuxi-egrave-me-meilleur-marche-de-McDonald-s.php 5 Online dictionary’s article Web 2.0. (n.d.). The Free On-line Dictionary of Computing. Retrieved November 30th, 2011, from Dictionary.com website http://dictionary.reference.com/browse/web 2.0 6 Online dictionary’s article
Social Media (n.d). Retrieved November 30th, 2011, from Sbinfocanada website http://
sbinfocanada.about.com/od/socialmedia/g/socialmedia.htm
7 Online document, no author identified, no date The Advantages and Disadvantages of Social Networking. Retrieved November 1st 2011, from Everyday Wisdom website http://www.everyday-wisdom.com/social-networking.html 8Report from private organization, available on organization’s website About Us. Retrieved November 30th, 2001, from Shift Communication website http://www.shiftcomm.com/social_media_benefits.html
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 16
9 Report from private organization, available on organization’s website (2010, October 18). Speed Burger description. Retrieved November 30th 2011, from Les Echos de la Franchise website http://www.lesechosdelafranchise.com/franchise-speed-burger/ 10 Report from private organization, available on organization’s website Notre histoire. Retrieved October 25th,2011 from Domino’s Pizza online http://www.dominos.fr/marque_histoire.php 11 Report from private organization, available on organization’s website Le Groupe. Retrieved October 25th, 2011 from Quick website http://groupe.quick.fr/fr/le-groupe 12 Online newspaper’s article Galliona A.S. (2009, January 28). La France, deuxième meilleur marché de McDonald's. Article posted to http://www.20minutes.fr/article/554595/Economie-La-France-deuxi-egrave-me-meilleur-marche-de-McDonald-s.php 13 Report from private organization, available on organization’s website Qui sommes nous? Retrieved November 30th, 2011 from Courtepaille Website http://www.courtepaille.com/qui-sommes-nous/communiques-presse-restaurant-grillades.php 14 Online dictionary’s article Social Media (n.d.). Retrieved November 30th, 2011, from Merriam Webster website http://www.merriam-webster.com/dictionary/social%20media 15 Online presentation Nick Decrock (2010, November 21st). Social Media: The Rainbow Theory. Posted to http://www.slideshare.net/ndecrock/social-media-the-rainbow-theory 16Online dictionary’s article Facebook (n.d.). Retrieved October 18th, 2011, from Techterms website http://www.techterms.com/definition/facebook
Simon Bridel – Marie-Emmanuelle Berdah – PG003 Page 17
17 Online dictionary’s article LinkedIn (n.d.). Retrieved October 18th, 2011, from Hudson Horizons website http://www.hudsonhorizons.com/Our-Company/Internet-Glossary/LinkedIn.htm 18 Online newspaper’s article Bounoua M. (2010, April 16). Les 10 sites de réseaux sociaux qu'il faut connaître Article posted to http://www.20minutes.fr/article/398400/A-la-Une-Les-10-sites-de-reseaux-sociaux-qu-il-faut-connaitre.php 19 Online document, no author identified, no date Twitter (n.d.). Retrieved November 30th, 2011, from Tweeternet website http://tweeternet.com/#explained 20Report from private organization, available on organization’s website (2009, December 1st). La stratégie de McDonald’s sur les médias sociaux . Article posted to http://www.athomedia.com/blog/2009/12/01/strategie-mcdonalds-medias-sociaux/ 21 Online brochure, no author identified, no data Retrieved November 30th,2011 from Facebook website https://www.facebook.com/press/info.php?factsheet
22 Online article, no author identified, no data How To Build Credibility With Social Media Marketing. Retrieved November 30 th, 2011 from http://www.lewishowes.com/social-media/how-to-build-credibility-with-social-media-marketing/
23 Online Video McDonalds advertise recruitment. Mac Donald's Publicité recrutement. Video posted 2008, May from http://www.youtube.com/watch?v=vxpOBeaeJlw