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McDonald's Growth Strategy Analysis

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McDonalds’ growth strategy analysis

Table of content

1. Introduction        

2. McDonalds’ growth strategy analysis        

2.1 Brand strategy        

2.2 Marketing and technological support analysis        

3. Conclusion        

Reference        

1. Introduction

McDonalds’ success is closely related to its reasonable development strategy. Enterprise development strategy is a great choice and planning for businesses' development direction, development speed and quality, the development point, and the development ability in a given period of time. The development strategy of McDonalds for the next five years’ growth is to strengthen its brand presence, retain and attract new customers through strong marketing and technological support. The strategy is reasonable and success is overall speaking. However, improvement space also exists.

2. McDonalds’ growth strategy analysis

2.1 Brand strategy

The brand is the symbol and representative of enterprises and products. By establishing the brand image, enterprises can establish their position in the market to gain respect and reorganization by the consumers, so as to achieve the purpose of long-term occupation of the market (Kroc & Anderson 1992).

The “M” of McDonalds’ brand is a symbol of joy, and delicious, Ronald McDonalds symbolizes harmony and friendly; it means that McDonalds is always a friend of the public and ready to contribute to the children and the development of communities. In addition to the serious operation, McDonalds will put part of their profits to charity every year. The plenty organized public welfare activities have produced good effects in consensus, which is positive for strengthening the brand image and promoting the product sales.

With the contribution of brand effects, McDonalds has become a leader in the global fast food industry. More than 32000 fast food restaurants are established and distributed in 121 countries and regions in the worldwide. As early as 2001, the total revenue of McDonalds Corp had reached for $14.87 billion; the net profit was of $1 billion 640 million. In 2012, McDonalds ranked for 410th in the top 500 companies selected by “Fortune” (Online News 2016).

2.2 Marketing and technological support analysis

4P marketing strategy (Constantinides 2006) is used to analyze McDonalds’ marketing strategy. First of all, regarding products, McDonald's product quality is far superior to the similar products in the market, coupling with a higher degree of product standardization. With the increased pursuit of a high quality standard of living, McDonalds puts more and more effects on the nutritional value of food. Regarding price, McDonalds’ price is higher than the general price of peers, on the one hand, it can remind consumers that McDonald's products are better than others; on the other hand, the profit can also be ensured. Regarding channels, the choices of shops have strict rules for both business and the authorized-running chain stores. Moreover, all stores’ inner and outer decoration must be completed by the same standards. In promotion, strategic, tactical, random and other promotional methods are used by McDonalds, coupling with varied performance patterns. For example, various types of advertising, discount and present, bundled sales, public relations activities, and so on.

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