Analyse Marketing de l'entreprise Mcdonald (document en anglais)

McDonalds

Business 188

Case Analysis

Group Members:

Meghan Dilawari

Tammy Huynh

Matt Salisbury

Isabel Soboszek

Farhan Latif

Meghan Dilawari

Tammy Huynh

Matt Salisbury

Isabel Soboszek

Farhan Latif

McDonalds

McDonald has been a well-known and valuable brand for over half a century. The company’s mission and vision is striving to be the world’s best quick service restaurant and formalizing their beliefs into “People Vision and People Promise.” “Quality, Service, Cleanliness and Value (Q.S.C. and V) also became the company’s motto. (http://www.mcdonalds.com)1 The company’s first McDonald store was built in 1940 by the original McDonald brothers, Dick and Mac. Later in 1954, Ray Kroc became the first official franchisee appointed by Dick and Mac McDonald in San Bernardino, California. Soon after, Mr. Kroc opened his first restaurant in Des Plaines, Illinois, and the McDonald’s corporation was created.

The new franchise began to grow rapidly as a result of its success. It wasn’t long before the 100th McDonald’s restaurant opened in Chicago in 1961. Less than ten years after the opening of Ray Kroc’s restaurant the company began to expand all over the United States. Ray Kroc bought all rights to the McDonald’s concept from the McDonald’s brothers for “2.7 million in 1961.”2

McDonald’s continued to have enormous growth during the 1960’s. In 1963 alone, McDonald’s sold their one billionth hamburgers, opened their 500th restaurant, “Ronald McDonald” made his big debut, and McDonald’s net income exceeded $1 million.3 In 1966 McDonald’s was first listed on the New York Stock Exchange, and in 1967 McDonald’s went global. The company kept expanding with the introduction of the “Big Mac” and the opening of its 1,000th restaurant, which was where it all started- in Des Plaines, Illinois.

McDonald’s began to mature as a successful global business toward the beginning of the 70’s. By 1970, there was at least one McDonald’s restaurant in every U.S. state, and several in different countries around the world. Countries including France, Japan, Germany, and even Guam all had McDonald’s. And in 1972 the company’s assets reached an all time high of “500 million” while sales reached the billions. 4Statistics showed that a new McDonald’s was being opened each day around the world. With all this success, the company kept expanding globally. In 1972 the 200th restaurant opened, again in Des Plaines, Illinois. The company also continued to develop their product with the introduction of the Quarter Pounder. And in 1975 McDonald’s first drive-thru opened in Sierra Vista, Arizona.

Along with the company’s many successes, they also faced some significant challenges. Ray Kroc made a $250,000 donation presidential campaign in 1972, a donation which was subject to investigation during the Watergate scandal. According to the “Behind the Arches Book,” which was written with the backing and assistance of the McDonald’s corporation, the donation was made during the time that McDonald’s executives were lobbying to prevent an increase in minimum wage.5 In 1984 there was a terrible incident in San Diego, California where a man named James Huberty opened fire in a McDonald’s restaurant and 22 people were killed. As a result, the company had a lot of public relations to deal with along with its damaged reputation. In 1987 the Attorney Generals of Texas, California and New York threatened to sue McDonalds under the consumer protection laws because of an add campaign claiming that McDonald’s food was nutritious, meaning healthy and well-balanced. There have also been matters of food poisoning, and other related law suits.

Even today the company continues to expand. More countries around the world are opening more McDonald’s. There are many restaurants in the U.K., Hong Kong, Switzerland, and Spain and so on. The company’s sales and revenues are immeasurable, well into the billions. McDonald’s employs millions of people around the world. In America, many of the company’s employees are young and Latino. In other countries, employees seem to depend on the population of the country.

The McDonald’s company has a wide range of loyal customers. Many people feel as if they grew up with McDonald’s. People trust the company, and the McDonald’s concept just seems to make people feel good. That’s why their customers are rich, poor, old, young, black, white, Asian, and European. Though many of McDonalds’ competitors are also successful, they are no match for the giant franchise. Other restaurants such as Burger King, Jack in the Box, and Taco Bell simply don’t have the same image as McDonald’s. The company focuses on marketing strategies that effectively attract a wide variety of people. They especially appeal to children in hopes that they will become lifelong customers.

CURRENT STATUS OF COMPANY:

“"Billions served," indeed. McDonald's is the world's #1 fast-food company by sales, with more than 30,000 of its flagship restaurants serving burgers and fries in more than 100 countries” . Today, “McDonald's operates over 31,000 restaurants worldwide, employing more than 1.5 million people.” 6In terms of countries, it operates in more than 119 countries on six continents. 70% of the locations are run by franchises while the corporation owns the other 30%. The Boston Market and Chipotle Mexican Grill fast-casual chains are also owned by McDonald's. There are some quick-service kiosk units located in retail areas and airports; the other locations are free-standing units. On a day to day basis, more than 47 million customers world wide are served by McDonalds. Over the years, McDonald has brought different promotions into the market to make the consumer purchase a fun experience. The most recent promotion was the Monopoly Best Chance Game 2004 which lasted from October 12 – November 15.7 It is also very important for the company to have a standard reputation. Therefore, the corporation makes sure that a Big Mac purchased in Pittsburgh tastes the same as one bought in Beijing by using standardized

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