The Global Fast Food Industry Marketing Essay

The Global Fast Food Industry Marketing EssayMcDonalds Incorpo ranged recognized as a premier franchising affair around the demesne, leading planetary pabulum service retail merchant having over estimately ab egress 32,000 local eaterys which serveits favourite foods The World Famous - Fries, Big Mac, Quarter Pounder, cowardly McNuggets and Egg McMuffin to to a greater extent than than Sixty four (64) million race in117 countries from each one daytime. Primarily , McDonalds , cut fries, breakfast items, sells hamburgers, nuggets cheeseburgers, chicken ,ice -cream soft drinks, milkshakes and desserts. In response to changing consumer mouthfuls, the come with has expanded its circuit card to imply salads, sundae , fish, wraps, and smoothies .McDonalds has made convenience a bring up factor in its success as downstairs -ConvenienceRestaurant locations argon so prevalent in suburban towns and cities that you are never more then a few minutes away by car or by foot. McD onalds eaterys commitd inside for customer availability Shopping centers and strip m e actually last(predicate)(a)s gener in anyy have a McDonalds happen upon ond or within walking distance , ordainingness to innovate, even while striving to get hold of consistency in the action of its some(prenominal) outlets and likewise McDonalds to operate 24-hour drive-thruhttps//encrypted-tbn0.gstatic.com/images?q=tbnANd9GcSaDWH9X4IAsCkYCWZgWNc_q4LxAEkVxQlEBJMHhRmORRuzjvBRZA https//encrypted-tbn1.gstatic.com/images?q=tbnANd9GcScMysGdHJbfJD_0k8b95FTtL_PYzGxvfNnh950cxLGQc4xZwby7gAffordabilityMcDonalds considered as Fast food, fast-moving lifeFast food has its own place in todays fast-paced life as time is limited. A recent report reveals that up to 70% of the respondents surveyed eat out all day, and among them, 77% head for fast food restaurants between superstar and trey times a week aboutly for lunch.The worlds largest restaurant chain posted 10 percent reaping in its third-qu arter profit that topped market estimates, McDonalds has economic downturns because of the affordability of its menu give customers the option to eat a full meal at a small costBecause of the fast-food restaurants ability to appeal to low-income and middle crystallize families, the go with continues to see profit gain.https//encrypted-tbn3.gstatic.com/images?q=tbnANd9GcSq5soyD0JnZJWlswY1-RPEVWxZlIsip8aezyhd-2JoriH0oX7hhttps//encrypted-tbn1.gstatic.com/images?q=tbnANd9GcT6x5kVSJXctzLYo3ymxeo2hTCGcKkhkbsbst3J2PLvV86C2_HgeAhttps//encrypted-tbn3.gstatic.com/images?q=tbnANd9GcSU9kbCjmlumQPiVI7YFqaps5W-Stg9zsLGJVyo17tcZOK1dAFetANutritionMcDonalds as well as pledged to provide customer-friendly nutrition in pissation on menu items. Customers have access to the caloric and fat content to make better choices. This acknowledgement of customer wellness has helped keep McDonalds successful.On the organizations website, McDonalds states that part of its success is due to its commitment to th e well- cosmos of customers. McDonalds established a global advisory council to provide expert guidance on nutrition and well-being. To satisfy health-conscious customers, the fast-food company began to include high- whole step choices on the menu. Customers are able to choose from hamburgers or salads as their main entre. Apples may also take the place of French fries in childrens Happy Meals.French fries are considered to be one of the most sellable items. The very main reason for this is that no matter what other crossway the consumer is inactive willing to buy, but in every set French fries are included automaticallyhttps//encrypted-tbn3.gstatic.com/images?q=tbnANd9GcREJNJ9dZIHZuem2xdZmHZnlEy28McSgaiYZROEwfXui7YunpWUjwhttps//encrypted-tbn3.gstatic.com/images?q=tbnANd9GcQmfq5H6VzUZLw9DPxQ_StveJlWCVxU1QprfH_5zfIp77uFNmBkThe global fast-food industry is dynamic with variety ofcompetitors. This report identify the current factors influencingthe industry specifically management o n McDonalds Corporation,which considered as the current global leader.Based on the analysis, the report identify several areas for rise andmakes strategic recommendations for McDonalds to enhance itsposition. . McDonald s mountains revenues come from the rent, royalties and fees paid by the franchisees, as well as sales in company-operated restaurantsProactive strategies, interesting promotions and a constant update of menus while retaining the best-selling signature items will boost the frequency of customers visits. McDonalds, for example, has chalked up impressive sales by offering seasonally-based toys with its Happy Meals. It also scored points as a front thawner in offering free internet connectivity at its outlets when WiFi was not freely getable at many public places.A McDonalds restaurant is operated by either a franchisee, an affiliate, or the corporation itselfAs a result, taglines much(prenominal)(prenominal) as Subways Eat fresh, McDonalds Im lOving it and the oft- repeated story of Colonel Sanders secret recipe in Kentucky Fried Chicken can influence dining decisionshttps//encrypted-tbn0.gstatic.com/images?q=tbnANd9GcSxCB6gIIu_lggbJZTL9_HKwadqOb6DzIEmi0uw8pjdus9Q3tLUqAThe earlier stages of McDonalds attracted more families than it did other categories, nowadays, McDonalds has made it exit that it positions itself to target and cater community of all backgrounds. Suitable for people of various needs and wants from families to young children, to people who love to enjoy life to people who are on the go, and meat lovers to vegetarians, virtually anybody and everybody can get word something on the menu for themselves.https//encrypted-tbn2.gstatic.com/images?q=tbnANd9GcQRZib45RcWFIr_BAO1s3J7mkUlJLfDrpYyCokKM_9BfT14jNJQNg https//encrypted-tbn1.gstatic.com/images?q=tbnANd9GcQD0Du3jvRQNteJNUTBOXDufWNtPkgI10_GndFYvVPqgtXgtEkYlQ.Other products such as salads are relatively immature in this restaurant. The send-off salads were added to its menu in 1985. Nowadays more and more people are concerned about their health so, McDonalds puts its all efforts to achieve more and not lose any of the potential customers.The biggest soft drink provider is the Coca-Cola Company. Hot and iced tea is delivered by SD Coffee in the US), hot chocolate, various juice and other regional beverages such as milkshakes are available in various markets all around the globe.Desserts are considered to be the last big group of products in McDonalds restaurants. It includes such items as ice-cream (McFlurry), McDonaldland cookies, Freshly Baked cookies, Pies, Cinnamon melts, the take and yougurt parfait, smoothies and other items which depending on the region and country.McDonalds Business StrategyMcDonalds has pursued 2 strategies since 2003. To be in the run with the fast changing customer preferences, demographics and spending patterns, McDonalds has introduced novel items in their menu including angus beef burger and bountifulness chicken sandwiches and does campaigns to create more healthy foods including salads on the side. This strategy basically reflects the beliefs that mental home as conflicting to reliability to traditional products is the key determinant towards success in the fast food industry.They have also focused more on increasing their sales at their current restaurants instead of opening new ones. To do so, McDonalds has redesigned many of their restaurants, kept their stores open till late and change magnitude menu options. Nonetheless, new restaurants are still getting opened around the world at a rapid pace the company plans to open or so 1,000 units in 2010, and continues to produce its new restaurants at a 1%-2% rate each year.Size MattersSize of McDonalds has three main advantages* McDonalds has a strategy of uniform menu offerings that can be accumulation produced, lowering production costs.* Bargaining power with their suppliers reduces input costs with improved margins.* Large advertizing costs mea n lots of exposure towards domestic and international market.Mission. Vision. ValuesMcDonalds brand mission didactics is to Be our customers favoriteplace and way to eat .McDonalds are committed to improvingoperations and enhancing customers experience. .. world-wide operations have been aligned around a global strategy called the Plan to win cantering on the fivebasics of an exceptional customer experience such as -Place, Promotion, People Products and PriceProviding the gauzy service to all customers and achieve the growth with a profit through strengths as McDonalds system innovation and technologyThis mission includes becoming of the best employer for people in eachlocal community one by one in location.The Mission Be the best employer for our people in each community around the worldDeliver operational excellence to our customers in each of our restaurantsAchieve enduring profitable growth by expanding the brand and also leveragingThe vision of McDonalds is to be the best qu ick service restaurant inthe whole world . McDonalds company states that their fosters in practice are thecorporate responsibility of the company. . It refers to undischarged Quality, Cleanliness, HighQuality Service and High Value Food in order to make every customer satisfied and made sure customer smile. McDonalds values is customer satisfaction which is very consequential .McDonalds show the appreciation by serving a high quality food andsuperior service. It is said. Their concentratedvalues helped them to become who they are and that the reason for McDonalds existence are customers.The work together with suppliers and independentfranchisees to achieve a sustainable upcoming not only for the companybut for the communities in which they operate as well. They also strive to achieve a welcoming environment by greeting all customers nicely and perfectly . They are individually accountable and collectivelyresponsible.They are achieving some goals and most significantlyopen lines of communication is the main value between customer and also to theother stakeholders.Another value is to be committed to people who are working to them.They do believe that working in a well-trained team with interculturalexperiences and backgrounds are the core of success.The other value is that they believe in the McDonalds System.. McDonalds obliged to grow byplay profitably as long as it ispublicly traded company. This requires not only focus on gaining moremoney but also on customers and the health of the whole system.Ethic in vexation is also one of the important values.The changing environment, customer, employee and systems need lead to theMcDonalds evolution and innovation as well. impression Analysis is an analytical tool for strategic fear planning.PESTLE is a strategic framework for pinch outside influences on a business.There are many macro-environment factors that effect strategic planning such as New laws, tax changes, trade barriers, demographic change.Macro-e nvironment factors includes all the factors that influence an organization, but are out of its direct control.Macro-environment factors tend to have a very long term impact.By understanding these external environments, organizations can maximize the opportunities and minimize the threats to the organizationPESTLE stands for Political, frugal, Social, Technological, Legal and Environmental and is used for business and strategic planning, marketing planning, organizational change, business and product exploitation and research reports..PESTLE analysis answers 6 key questionsPolitical What are the political factors that are likely to affect the business?Economic What are the economic factors that will affect the business?Sociological What cultural aspects likely to affect the business?Technological What technical changes that may affect the business?Legal What current and impending commandment that will affect the business?Environmental- What are the environmental servants tha t may affect the business?Political FactorsPolitical factors relates to the pressures and opportunities brought by political institutions and to what period the government policies impact the business. Government policies Government term and change Trading policies Funding, grants and initiatives Lobbying and pressure groups Wars, terrorism and conflicts Elections and political trends Internal political issues Inter-country relationships Local commissioning processes Corruption BureaucracyPoliticalGlobal fast-food firms must coincide with country-specific political requirements, such as national minimum wage regulations, affecting costs. Hygiene and quality regulations sidetrack significantly between nations and may influence the quality of products provided by fast-food outlets . Different countries set varying regulations regarding labelling and packaging.Economic FactorsEconomic factors relates to economic policies, economic structures and to what degree the economy impacts th e business. Local economy Taxation Inflation engross Economy trends Seasonality issues Industry growth Import/export ratios International trade International exchange rateEconomicDespite the 2008 recession and the resulting decrease in consumer confidence across the globe, average consumer fast-food spending has additiond its due to convenience and low-cost. Consumers are still looking for the convenience of eating out, but are pinched to the low prices of fast-food over table-service restaurants (Financial Times, 2009). Many fast-food chains have capitalised upon the recession by introducing new deals in summing up to their already low-priced menus.Social FactorsSocial factors relates to the cultural aspects, attitudes, beliefs, that will affect the demand for a companys products and how the business operates. Demographics Media views of the industry Work ethic Brand, company, technology image Life path trends Cultural Taboos Consumer attitudes and opinions Consumer buying patt erns Ethical issues Consumer aim models Major events and influences Buying access and trends Advertising and publicityIncreasing consumer awareness about healthy lifestyles has pressured many fast-food players to offer healthier selections within their menus (BBC, 2011). This includes offering low-calorie options and salads alongside burgers, and prominently displaying nutritional content. The fast-food industry has also been heavily criticised for targeting young children by including toys within childrens mealsTechnological FactorsTechnological factors relates to the technological aspects, innovations, barriers and incentives, and to what degree these impact the business. Emerging technologies maturity of technology Technology legislation Research and Innovation Information and communications Competitor technology development Intellectual property issuesAs consumer familiarity with new technology increases, fast-food firms are using channels such as social media websites to eng age with their customers. For example, McDonalds is the 9th most liked brand on Facebook . Additionally, digital displays allow outlets to change their menus efficiently, to wooing the time of day and self-service ordering points have increased service speed and reduced labour party costs.Legal FactorsLegal factors relates to the laws, regulation and legislation that will affect the way the business operates. Current legislation Future legislation International legislation Regulatory bodies and processes Employment law Consumer protection Health and galosh regulations Money laundering regulations Tax regulations Competitive regulations Industry-specific regulationsGlobal operators must comply with country-specific regulations and legislation. This includes opening hours, taxation and participation regulations such as the National Minimum Wage Regulations in year of 1999 in the UK. Firms are a good deal required to meet national food standards such as the requirements set out by the US Food and Drug Administration (as known as FDA). Furthermore, authorities are becoming increasingly in a bad way(p) about childhood obesity associated with the industry and have tightened regulations regarding targeting childrenEnvironmental FactorsEnvironmental factors relates to the ecological and environmental aspects that will affect the demand for a companys products and how that business operates. Environmental regulations Ecological regulations Reduction of carbon footprint Sustainability relate of adverse weatherEnvironmental lobbyists and governments are pressuring the fast-food firms to become more green. Rainforests are being destroyed to increase the area of land for beef production to meet the demand for beef-burgers . Recycling is a prominent global issue and in response, McDonalds adopted recyclable packaging. Increased environmental awareness among consumers provides firms with a significant probability to position themselves as green to garner customer loy altyStrengths of McDonaldsIdentification of strengths weaknessesMcDonalds provides the best employees-business relationship such as providing an equal opportunity employer. As an equal opportunity employer McDonalds reckons that employees and job applicants are selected, trained, its promoted without discrimination to race, gender, internal orientation, age or disability.McDonalds brand strengths keep customer come back againFor quick-service restaurant patrons the most important factors that drive loyalty to a brand are good value and convenience, with low prices and quick-service being very important as well McDonalds has a clear image lead on all of these factors, with Subway consistently being the 2nd-best performing brand and Burger King and Wendys also performing wellThe imagination strength, behavior, weakness, synergy and distinctivecompetences are major components of the internal environment of anorganization. . McDonalds high repeat-purchase intention scores scorn thei r lower satisfaction scores illustrates the strength of their brand on the attributes that matter most to quick-service customers.Taking into consideration that McDonalds is a global company, workingits capital in many countries worldwide and known for almost allpeople in the world, we can point out such strengths of thisfranchiseIt is all about how the company manages to use itsresources and put into what outcome it brings.McDonalds is the market leader in both the domestic andinternational marketsThe coat of McDonalds, as it was mentioned before, its enormous and ithas an advantage of economies of scale, which is very crucial for everybusiness. McDonalds is a strong competitor for all sit-down restaurants becauseof its size, worldwide extent and famousness. Smaller brands need to find ways to differentiate among themselves to gain serving of wallet in this ultra-competitive segment.Diversifying business worldwide in various countries let to reduce orat least to verify the risk o f business and find best advantages ofdifferent countries economies.McDonalds also takes an advantage of a long-term economic growth asan international company.It is also known that McDonalds has a strong actually estate portfolio,which is also considered as strength of a company.The companys outlets are located in areas that are super known forvisibility, traffic volume and ease of access. It can adapt to the needs of the societies and undergo an innovative product line.McDonalds promotes and sustains a working environment, which is free from unlawful discrimination, harassment and bullyingThe brand of McDonalds is easy recognised among competitors and is very strong.Through aggressive market planning, MacDonalds has been able torecapture its youth market once again.Viewing the strengths of McDonalds form consumer eyes, the strengthscan be more focused on brand, famousness, quick supply of a food, goodtaste of food, which often lead even to an addiction ofMcDonalds foods, also mo stly well perceived personnel civil andperforming their job well.Weaknesses of McDonaldsWeaknessesSaturated Nature of Business The company has a presence in nearly every nook and cranny the world has to offer, so in that respect is not much more dwell to runMcDonalds has a very coarse extent in the world, has a strongstrategy, feels comfortable in a market and well known brand , however,as all business it faces some difficulties or some threats and as allbusiness has some internal weaknesses but can be place only by professionaleconomists, which actually cannot be alwaysvisual by individual eyes, The heavyset of McDonalds weaknesses might beLooming market saturation which it can lead to difficulties inadvertising new products. new-fangled Disappointment Recently the company has reported declining revenues and a great strain on their same-store growth rate however in the long-term view of things these short- term issues should not prove significantMcDonalds also a low innovativ e companyFast growing and competitive market. That makes company to face income problemsIncome problems and huge emulation do not let the range ofproduction rise into value ones but makes to diversify a range ofcheap and quickly made ones.Nevertheless, fast foodindustry is not a esteem industry in most of nowadays point of viewbecause of rising number of various diseases caused by fast, unhealthyfood. Moreover, McDonalds food might seem more unhealthy and fattyfood, rather then delicious. And there the price seemed as low doesnthelp in case of quality of foodLow bar to Entry All a person has to possess to compete with McDonalds is food, and it is an under-exaggeration to say that there is fierce achievement in the industry McDonalds operates inIn more simple view the McDonalds might have weaknesses because ofhuge competition in fast food industry.Vulnerability to Rising Input Costs The historic drouth this year has already caused food prices to soar, and this will cause McDonald s to face a situation in which they climbing prices for their customers or allow their margins to be squeezed, a lose-lose situationCharityMcDonald House charity offers thousands of sick children in estimate about 48 countries hope and it inspires courage. They say laughter is the best medicine and nothing makes people smile more than a Happy Meal. world-policy-heroAt McDonalds we recognize our responsibilities to protect and preserve the environment for future generations to comeInternal and External environment analysis for McdonaldsThis McDonald business is ranked as number 1 in the Fortune Magazines 2008 list of most admired food service companies.McDonalds has been a thriving business since year 1955 and 20 of the top 50 corporate staff employees started as a restaurant train employee. Fortune Magazine 2005 listed McDonalds as the Best Place to Work for Minorities.They have an efficient, fictionalisation line style of food preparation. In addition they have a systemization a nd duplication of all their food prep processes in every restaurant.McDonalds is a community oriented, socially responsible company. They run McDonald House facilities, which provide room and food ,board and sibling support at a cost of only $10 a day for families with children needing lengthy hospital care. McDonald Houses are located in more than 259 local communities worldwide, and McDonald Care Mobile programs offers cost good medical, dental and education services to children. They also sponsor Olympic athletes.They successfully and easily adapt their global restaurants to appeal to the cultural differences. Example, they serve lamb burgers in India they provide separate entrances for families and single women.McDonalds uses only deoxycytidine monophosphate% pure USDA inspected beef, no fillers or additives. Additionally the produce is farm fresh. McDonalds serves 100% farm raised chicken no fillers or additives and only grade-A eggs. McDonalds foods are purchased from only certified and inspected suppliers. McDonalds works closely with ranchers, growers and suppliers to ensure food quality and freshness.McDonalds only serves name brand processed items such as Dannon Yogurt, Kraft Cheese, clutch Chocolate, Dasani Water, Newmans Own Salad Dressings, Heinz Ketchup, Minute Maid Juice.McDonalds takes food safety very seriously. More than 2000 inspections checks are performed at every stage of the food process. McDonalds are required to run through 72 safety protocols every day to ensure the food is maintained in a clean contaminate free environment.McDonalds was the first restaurant of its type to provide consumers with nutrition information. Nutrition information is printed on all packaging and more belatedly added to the McDonalds Internet site. McDonalds offers salads, fruit, roasted chicken, bottled water and other low fat and calorie conscious alternatives.It has branded menu items e.g. Big Mac, Chicken McNuggets, which further promote McDonalds.Mc Donalds EgyptHas the second largest market share in Egypt with branches exceeding 60. instant(prenominal) delivery service provided in Egypt.Nutrition information is printed on all packagingSafety protocols and quality assurance to serve best quality food.More than 92% of suppliers are Egyptian (Halal)Efficient assembly line to serve food as fast as possible with maintaining high quality.McDonalds is the first restaurant in Egypt to provide drive through in 7 branches.Has a joint venture with instance petroleum.Sponsors many events and football teams.Cares about the environment by recycling the oil used in preparedness for delivery motorcycles.