Steve Easterbrook 's New Marketing Strategies

McDonalds is a role model for other industries regarding its dominance over the value chain. The company is both vertically and horizontally integrated. McDonalds is known for purchasing farms, to raise and ultimately slaughter animals, to produce the meat for their products. This type of dedication to the value chain is what has made McDonalds so successful. McDonalds also owns the logistics and transportation lines that bring products to the restaurant. McDonalds has even created their own health insurance company to supply employees with health insurance, for a cost. It appears McDonalds is attempting to control the entirety of its value chain to, reduce its cost while maintain quality and in turn pass along some of that cost, these savings can be turned into a perceived value by the customer resulting in brand loyalty.

Looking at the future, McDonalds recognizes the fact that they need a reset in the business. While McDonald’s has had its share of criticisms, their board has also shown that it is willing to respond to shareholder and customer concerns. In its most recent

McDonalds is a corporation that has great success because of good strategy and planning. In the next five years, McDonalds needs to keep up with the changes of the consumer and social

Good Taste: The fast food chain is operating in many diverse cultures where tastes in food are extremely different than those of US or Indian consumers. Thus ability to adapt to local taste is one of McDonald’s strengths.

McDonalds is known for the success of their fast food chain restaurants. As a pioneer in the fast food market, McDonalds success is founded on their innovative ideas to maximized profit and product for minimal cost and labor. Their innovation can be seen in all aspects of their business, finance, marketing, advertising, and products.

McDonalds changed menu with items such as porridge, smoothies and chicken wraps is on reason for the growing business

In contrast with McDonalds their success is from globalization. Since the early 1940’s McDonalds has been a burger business, and accomplished to be the first one’s to become global. McDonalds has invested into several community organizations that helped the business to earn trust from the communities and gave more of a positive outlook towards their restaurants. They support their own employees, their families, and other groups of society in every country where it has business. McDonalds has website links to promote healthy living for kids, teens, and Latin and African Americans. McDonalds Happy Meals, McDonalds for teens, Me Encanta, and 365Black. They have corporate governance, which shows in detail of their operational structure. There is a whole webpage that is dedicated to explain about what is their drive to stay successful, what the board of

McDonalds obtained an additional customer base and this had a positive impact on sales. Also McDonalds have sponsored past Olympics and this increased the demand of a product especially the Big Mac, they also gained free publicity and this also increases the customer base. This avoids customers to switch to competitors and this means that they will obtain a healthy and stable profit for the future. In the past year if a customer bought a meal from McDonalds the customer would receive a cup as part of their purchase. This increased the amount of customers they get and it also made McDonalds stand out from its competitors. A unique selling point of products differentiates McDonalds from its competitors because they will be more customers visiting the restaurant and this will result to increase of sales.

As food industry is saturated, it will be hard to add new outlets. Other than that increase in food sources pricing, the continuation of annual dividend and price competition that driven by the competitors hinder the capability to raise revenue. Nonetheless, to rectify this problem the company has swift the focus from a value menu to a more diverse one. Another problem is that there is limited product innovation and sometime customers will be sick of eating the same food again and again. It is also harder to find prime locations and when expand over to other countries; it will have to face the posing potential cultural challenges. There is also growing concern with the healthy diet as the result MacDonald being a fast food restaurant will be an unhealthy choice to most of the healthy lifestyle people and they will choose not to visit MacDonald. Lastly it may create an unhealthy eating culture to the country as fast food is not a good choice for healthy lifestyle and it may increase the rate of obesity of the country.

McDonalds is a fast food company that was founded in the 1940’s. In McDonalds short existence it has revolutionized not only the fast food industry, but the way in which business is conducted world wide. What the McDonald brothers and then Ray Kroc set out to accomplish was a business model that standardized all aspects of operation, in order to make expansion effortless. So great their power of growth that McDonalds now has over 31 thousand stores in over 118 countries. So iconic that the average US school child can recognize Ronald McDonald.

In past years, McDonalds have shown the ability to often adjust and perform effectively to any economic/financial climate. This is due to when there is an economic downturn, consumers living on a tight budget in a bad economy often turn to fast food chains for inexpensive meals. For example, within Europe, where stressed consumers are still pulling back, McDonald 's notched 6.9 percent same-store-sales growth in 2009 's second quarter. Thereby illustrating of a maintenance of long term economic growth for the company.

In 1965 USA market, McDonald’s held an IPO in new York stock exchange, with the analysis, it is been figured out that the US market has reached to saturation and that every opening of a new McDonald’s restaurant intruded upon the revenues of other restaurants already in operation. Based on considering all these facts, McDonald’s decided to pursue a diversification strategy, in pre-selected countries, General Management would develop core competencies, the purpose of which was to build more profit and revenue-winning restaurants, and to develop these core competencies for use as a model throughout the corporation.

Although it is large and established company it does face some troubles which is recently trying to overcome. As generally known in today’s time people become more health and diet conscious. Healthy lifestyle and fitness are becoming more popular what makes people think about the nutrition values and quality of food they consume. Although McDonalds is called a restaurant, people know it as a fast food which always was known as an unhealthy, fattening, junk food. In last couple of years company tried to overcome unhealthy problems with some successes and filatures. Now days in the menu we can find, healthy smoothies and healthy breakfasts, but still year-after-year declines in revenue are recorded and year 2014 had the worst sale decline in a decade (businessinsider.com 09/2014). Company during the fight for a new image of the business ‘from fast food to good food fast’ decided to invest in technology, that lead to some organisational and structural changes within the organisation.

Since McDonald’s is the most well know fast food chain in the world with a market cap of 69.35 billion, brand recognition is their biggest strength. The secret of McDonald’s success is its willingness to innovate and maintain consistency in the operation of its many outlets. In recent years McDonald’s has introduced Premium Salads, Snack Wraps, fresh Apple Dippers in the United States, and Corn Cups in China. Also, McDonald 's products are priced so low that economic conditions are almost insignificant.

1. Competitors – As there are many other restaurants who are trying very hard to compete with McDonalds like KFC, Burger King, and Burger Fuel etc. They are also serving people with same kind of services like McDonalds and burger king is really giving a tough competition to McDonalds at the moment.