Recognizing one valuable competitive advantage of McDonald is approximately 30,000 worldwide outlets with established well-known brand name and cost leadership, the management team adopted the “Plan to Win” strategy, which was to increase sales at existing locations by improving the menu, refurbishing the outlets, and extending hours with added snacks and drinks. This strategy turned around McDonald from an unfavorable market position to a favorable market position. McDonald experienced considerable growth thanks to this strategy.
Besides, McDonald repositioned its perceptions through phrasing out supersizing, providing nutritional information on product packaging, offering healthier products, and including more fruits and vegetables in Happy Meals. It further projected it as a lifestyle brand rather than just a place to eat hamburger through large-scale outlet refurbishment, introduction of McCafes, and Micro-marketing to different target segments. 1. Major issues in this case A. Growing in quality and sales
This issue focuses on the corporate-level strategy, which concerns whether more value is created through diversification. Initially, McDonald experienced very high growth by franchising. As more outlets flourished internationally while the grading system of franchisees disappeared, the service quality of McDonald started to decline, hurting its competitive position in terms of sales and branding. Although McDonald had tried to acquire other fast-food chains and introduce many new products, they failed. McDonald turned around its unfavorable market position after James R.
The Research paper on McDonalds Strategy
According to the McDonalds 2010 annual report, the company continues to remain in a good position for success because McDonalds applies the “plan to win” strategy (McDonalds, 2010-2014). The concept behind the “plan to win” strategy is not for McDonalds to be the biggest fast food chain but for the company to be the best fast food chain (McDonalds, 2010-2014). The plan to win strategy focuses on ...
Cantalupo took the lead as a CEO to adopt the “Plan to Win” strategy, which was to increase sales at existing locations by improving the menu, refurbishing the outlets, and extending hours with added snacks and drinks. B. Branding itself as a healthy lifestyle brand This issue focuses on the business-level strategy, which concerns differentiation through branding can capture more demand from fragmented segments and stay ahead of competitors. With growing global concern for health, McDonald was attacked for its low nutritional food.
McDonald repositioned its perceptions through phrasing out supersizing, providing nutritional information on product packaging, offering healthier products, and including more fruits and vegetables in Happy Meals. It further projected it as a lifestyle brand rather than just a place to eat hamburger through large-scale outlet refurbishment, introduction of McCafes, and Micro-marketing to different target segments. 2. Competitive environment for McDonald Five Forces Model: McDonald faces intense competition from rivals such as KFC, Wendy’s and N-out chain.
They also experiences great threat of substitute from health food and quick meals. Since price for fast food is low with little differentiation from competitors, buyer has low switching cost and high buyer power. As McDonald has many options to purchase huge volume of finished goods for sale worldwide at a low cost, supplier power is low. Market entry to fast food industry is low since the capital investment is quite low. PESTEL Model: McDonald was challenged by rapidly fragmenting market and global growing concern for health.
The Business plan on Swarovski Branding Strategies & Products
His guiding principle is still followed by the company today: “To constantly improve what is good. ” 1949 SWAROVSKI OPTIK is founded, and goes on to become a leading manufacturer of precision optical instruments for hunting and nature observation (binoculars, telescopes, rifle scopes, range finders, and night vision and optronic devices). 1956 The first Swarovski crystals for chandeliers and ...
To position itself as a healthy fast food provider, McDonald phrased out supersizing, provided nutritional information on product packaging, offered healthier products, and included more fruits and vegetables in Happy Meals. It promoted corporate branding through different channels to different finely fragmented segments. 3. Competitive Advantage of McDonald One valuable competitive advantage is approximately 30,000 worldwide outlets. This strong network heightens international brand awareness of McDonald.
It also enables McDonald operating in economy of scale, benefiting from low cost of production. With many worldwide outlets, established well-known brand name, and cost leadership, this forms very strong entry barrier, which protects McDonald from new competent rivals. 4. Core Competence of McDonald McDonald demonstrated high level of recession resistance in global economic slowdown, which was evidenced by its strong results for the fourth quarter of 2008 and its plans to add 650 more outlets by the end of 2009.
Its competitors, such as KFC and Wendy’s, had not managed to cope with the global economic downturn well. This showed McDonald having a core competence in crisis management in the time of recession. 5. Suggestions for Improving Performance of McDonald Having observed significant failures from many new product introductions, it is suggested McDonald seriously take quick and comprehensive marketing research about consumer’s changing taste in order to introduce taste-fitting products that meet their needs.
It is also important to carry out experiments and tests with its new offerings at selected locations so as to gather initial customer feedback for amending the menu. Secondly, the acquisitions possessed by McDonald did not contribute to much growth and even posted considerable losses in recent years, it is suggested to sell these underperforming acquisitions. Gather the resources from selling on its “Plan to Win” strategy, which is to increase sales at existing locations by improving the menu, refurbishing the outlets, and extending hours with added snacks and drinks.
Last but not least, as global health concern is rising, it is advisory of McDonald to introduce scented tea with healing efficacy for its specialty drinks, which targets health conscious segments and improve the brand image of McDonald. More cause marketing should be conducted with non-profit making healthcare units such as World Vision, and Red Cross to project a socially responsible brand image to the public.
The Essay on Strategic Brand Positioning To Improve Marketing Planning
In order to create effective, impact ful marketing plans, you need to: - on the one hand, have a clear idea of the trends and issues going on in the market that have implications for your business, - and on the other hand, have a clear understanding of where you want your brand to be positioned in the market to best take advantage of, or minimise the impact of, those global trends and issues. Let ...
