Mcdonald's- Learning to Love the Brand Again

(Souce: https://www.marketingweek.com/mcdonalds-dead-dad-ad/)

About the Case

McDonald's is now facing a challenge of invigorating the brand value and the business. For that McDonald's started vigorous promotion and started producing & promoting new products in the market. They tried to understand the customers by surveying and asking them what they want. Giving customers what they want will increase the level of satisfaction amongst the customers.

In 2005, McDonald's business performance remained on the same level as it was in the previous year. The combination of factors in the brand's recent history had undermined the trust of the customers. It looked like the Love of a Burger from McDonald's might be over which is something McDonald's cannot afford. Now was the time for McDonald's to re-focus on the vision to increase the sales and expand the outlets of McDonald's in all the seven continents so as to increase the margin of profits and annual revenue. They changed the way they focused and presented themselves. McDonald's changed the approaches to deal with situations like the competitors, barriers to the entry and expansion in few countries.

The focus included focusing on improving the fundamentals of the business, the food, the restaurants and system of communication. The business started to prosper in the 3 years and in those 3 years, maximum sales was reported in 2008. Finally McDonald's came right back on the track and got what it wanted.

The below graph states the Annual revenues from 1994-2018. It is understood that the company started growing when it was incorporated but after the year 2005 the revenues stopped improving and diminished. So the company didn't ignore that and started working on that.

Interpretation:

The above graph states the Annual revenues from 1994-2018. It is understood that the company started growing when it was incorporated but after the year 2005 the revenues stopped improving and diminished. So the company didn't ignore that and started working on that.

ISSUES:

McDonald's started to feel a threat of inferiority in the year 2005 when the fear of low profit was seen for which it had to start a fresh. But starting fresh also brought some issues that were faced by the company:

• Low Profits: In the year 2005, McDonald's started to realise that the margin of profit were not apt when compared to the expenses. They realise that profits are not rising instead they are diminishing. The company has to now start afresh for high productivity and growth and high goodwill in the market.
• Barriers in Expansion: After they realised that there is a need to increase profits and productivity, they made a plan that would help them expand in different parts of the world. But, there were barriers while executing the plan of expansion. Many countries took a lot of time due to the formalities and restrictions that were to be fulfilled by the company.
• Competition: McDonald's have a lot of competitors when it comes to fast-food category. The level of competition is very much for McDonald's in the food industry. Competitors like KFC, Burger King, etc.

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MEASURES:

McDonald's took some steps to deal with the problems:

• McDonald's started to plan everything from the very beginning whether it's about the competitors or about the barriers while expansion. They started to plan how they will get back in the business, how will they increase their profits and productivity.
• McDonald's started to increase the level of employee satisfaction so that the employee could work with their full efficiency and with full satisfaction. McDonald's started using employee suggestion system and actually work on mostly all of the suggestions.
• McDonald's started a survey where the customers were asked to fill out a questionnaire where they were required to answer some questions which tell their tastes and preferences and what kind of product do they actually expect from the company.
• McDonald's actually worked on the customer preferences which gave them a unique identity in front of everyone in the market. This increased the level of profits which actually increased their productivity and goodwill.
• Two Complementary brand advertising campaigns, 'Trust' and 'Favourites' came on various Platforms including Television, media, stores, digital and outdoor.

(McDonald's Ad Campaign with its slogan)

RECOMMENDATIONS:

After the above case study analysis, it can be recommended that the company should expand itself in the various parts of the world. The expansion is only possible with a plan which should be executed properly by McDonald's. Every measure has been taken by McDonald's but every step has not been followed properly. As the level of employee satisfaction is less when each and every outlet of McDonald's is compared. The company should differentiate products according to the different countries. McDonald's should continue the path and should work on innovative products and should ensure consumer feedback on time to time basis. McDonald's should offer different kinds of meals to the customers which should attract the general public and kids. McDonald's should focus on the strategy to capture the target market constituting the small aged people falling in the category of 7 years to 15 years. Though, the company has already shown its capacity on working on that thing but still needs to do more.

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