Prepared by:Cham Lee Peih (GM04398)Hiew Fei Shun (GM04344) Lee Wen Hong (GM0xxxx)Lee Shook Yee (GM04387)Nyon Pui Wai (GM04382)Tan Kim Foo (GM0xxxx)

Marketing Excellence Case:

>> cDonald’s

Core Brand Values

• 32, 000 restaurants in 118 countries.

• Serves 58 million of people each day.

• 75% are franchise restaurants

Brand Value

• Simple• Easy• Fun/enjoyable

Service type • Quality • Service • Cleanliness • Value• Framework “Plan to

Win” – hot, high quality food, great value and convenient

Customer approach

Core Brand Values

• All time favourite: Big Mac, Quarter Pounder, Happy Meal, Filet-O-Fish, Egg McMuffin

• Premium - Angus burger

• Coffee line – McCafe (affordable speciality coffee)

• Healthy food – Salad, all-white-meat McNugget

Menu

• Advertising Campaign targeted at children & families.

• Ronald McDonalds, Grimace, Hamburgler, Mayor McCheese

• Slogan: “I’m Loving It”

Promotion Activities • Ronald McDonald

House Charities – CSR that strives to improve children’s lives.

CSR

Core Brand Values Evolved

• Previous: Quick and Cheap• Now: Hot, speed, high-quality, great value, and convenience [Plan To Win]

Customer Approach

• Previous: beef menu, “Super Size” & focus on walk-in purchase• Now: Less beef more chicken options, ‘Eat for health’ concept, & drive-thrus services

Food Choice

• Previous: Children and families• Now: Children, families as well as higher end market but with less expensive specialty

coffee drinks and burgers e.g. Angus burgers & McCafe.

Targeted Market

• Previous: No focus/strategy in this area• Now: “Create unique personalities for our menu items by telling a story about each

one.” – quoted by Mary Dillon, McDonald’s Global CMOPackaging

Marketing Strategy

• “Keep our brand relevant”• Global “brand promise” alongside

adopting a more localized strategy in individual markets e.g. the Plan to Win

• $1 menu & cheap combination meals • “Great value meal” menu• Quality food at lower price• Give customer better value

Recession

• Entice consumers away from $1 special• Shift from “Super Size” to “More Buys”

thru introducing new items e.g. coffee, smoothies

• New initiatives include opportunities in chicken, breakfast, beverages and snacking options

Economy Recovery

Marketing Strategy should change in response to shifts in the Global

Economy

Future risks/challenges:• Lack of control on food quality, consumer preferences, customer service,

operation management.

Lost focus and direction

• Bad consumer experience• Consumer taste changed

Lost of customer

• Major competitors E.g. Burger King ,Carl Junior, Jollibee, KFC, Subway, Wendy's

• McCafé coffee line Vs. Starbucks

Competitors

• Cost of food increased may affect to target-lower income consumer• E.g. Set lunch meal

Food price

• Serving menu that appeal to local taste and cultural preferences• E.g. Premium M burger in France, Bacon roll breakfast sandwich in UK.• E.g. Prosperity burger (CNY , M’sia), GCB burger (Hari Raya, M’sia)

Country culture & localization

Future risks/challenges:

• Children are prohibited to go to McDonalds by their mums due to its high calories and high fat food menu.

Perceived as unhealthy fast food

• Its market penetration will become saturate.

• New ideas and innovation are essential to create new needs.

Stagnant in sale growth

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