14-09-16 cheapnisha 0 comment



McDonald’s Corporation is the largest fast food restaurant chain in the world which is present in more than 120 countries with over 35,000 outlets. The company has been operating from the United States since the 1940s when it was established by Richard and Maurice McDonald. The growth of the company has been because of its product differentiation and cost leadership strategy. This hybrid business strategy has created tremendous growth opportunities for the chain which has rapidly expanded into different countries. The success of the company is based upon its ability to understand the customers and provide affordable and quality level meals to the customer segments.  McDonald’s long term competitive position will be based upon its ability to offer healthier meals to large number of customer segments. The corporate image of the organization should be to focus on its family friendly environment, convenience, quality, affordability, and satisfaction. The focus on children means that the company needs to restructure itself as being their favorite place. Focusing on children and families helps to create a stable business for the organization. Diversified products for families and children will help the organization to achieve its critical objectives within a short period of time. Corporate social responsibility is another objective which needs to be achieved as McDonald’s can position itself as a responsible and sustainable enterprise. This report will create an integrated marketing communication plan for the organization which will be based upon the ability to reposition itself as a corporate socially responsible firm.

Context and Situational Analysis

Internal Context

McDonald’s is the largest fast food chain operating in the global fast food industry. The organization has brand recognition which is estimated to be around $40 billion. It has an advertising budget which is equivalent to $2 billion. The aggressive advertising budget which the organization has enables it to successfully reach its customer segments in an efficient and effective manner. McDonald’s focuses on creating a strategy of thinking globally and applying locally. Locally adapted food menus are considered to be one of the most popular in the fast food industry in different parts of the world. McDonald’s has been able to create partnerships with the best brands which has helped it to achieve the highest levels of efficiency and effectiveness. The business model of the organization is based upon offering franchises with the result that 80% of its restaurants are independent franchises. The company targets children as the main customer segments by offering high levels of efficiency, quality, and satisfaction. Despite this, McDonald has been under public scrutiny because of concerns that its food items cause obesity. The marketing focus on young children has also been criticized which has led to negative publicity (Ferrell & Hartline, 2007: p. 81). McDonald’s has tried to provide healthier choices but the bulk of its products remain unhealthy meals and drinks. Employee turnover rates are significantly higher for the company because the jobs are relatively low paid and low skilled. Lower performance and high employee turnover are the key problems faced by the company which has to increase its training costs.