The Global Fast Food Industry Marketing Essay

The Global Fast Food Industry Marketing EssayMcDonalds Incorporated recognized as a premier franchising melody around the public, leading worldwide fodder service retailer having over estimately nigh 32,000 local eaterys which serveits favourite foods The World Famous - Fries, Big Mac, tail Pounder,Chicken McNuggets and Egg McMuffin to to a greater extent than Sixty four (64) million bulk in117 countries each day. Primarily , McDonalds , french fries, breakfast items, sells hamburgers, nuggets cheeseburgers, chicken ,ice -cream soft drinks, milkshakes and desserts. In response to ever-changing consumer tastes, the company has expanded its menu to include salads, sundae , fish, wraps, and smoothies .McDonalds has make convenience a key factor in its success as be secondary -ConvenienceRestaurant locations ar so prevalent in suburban towns and cities that you are never more then a few legal proceeding a focussing by car or by foot. McDonalds restaurants located inside for cus tomer availability Shopping centers and strip malls generally take over a McDonalds include or within walking distance ,willingness to innovate, even while striving to achieve consistency in the operation of its many outlets and in like manner McDonalds to ply 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- chiliadd life as time is limited. A recent report reveals that up to 70% of the respondents surveyed wash up out e really day, and among them, 77% head for fast food restaurants between one and three times a week largely for lunch.The worlds largest restaurant chain posted 10 percent addition in its third-quarter profit that topped market estimates, McDonalds has economic downturns because o f the affordability of its menu give customers the option to eat a full meal at a small appealBecause of the fast-food restaurants ability to appeal to low-income and middle class families, the company continues to see profit actualize.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-Stg9zsLGJVyo17tcZOK1dAFetA pabulumMcDonalds overly pledged to provide customer-friendly nutrition information on menu items. Customers have access to the caloric and fat content to make better choices. This identification of customer health has helped make McDonalds successful.On the organizations website, McDonalds states that part of its success is due to its commitment to the well-being of customers. McDonalds established a global advisory council to provide adroi t 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 briny 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 actually primary(prenominal) indicate for this is that no matter what separate proceeds the consumer is calm willing to buy, but in every set French fries are include 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 focusing on McDonalds Corporation,which considered as the current global leader.Bas ed on the analysis, the report identify several areas for improvement andmakes strategic recommendations for McDonalds to enhance itsposition. . McDonald s corporations 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 magnificent sales by offering seasonally-based toys with its Happy Meals. It also scored points as a frontrunner in offering free internet connectivity at its outlets when WiFi was non freely available at many public places.A McDonalds restaurant is operated by either a franchisee, an affiliate, or the corporation itselfAs a result, taglines such as Subways Eat fresh, McDonalds Im lOving it and the oft-repeated story of Colonel Sanders secret recipe in Kentucky Fried Chicken can influence d ining decisionshttps//encrypted-tbn0.gstatic.com/images?q=tbnANd9GcSxCB6gIIu_lggbJZTL9_HKwadqOb6DzIEmi0uw8pjdus9Q3tLUqAThe earlier stages of McDonalds attracted more families than it did otherwise categories, nowadays, McDonalds has made it clear that it positions itself to target and cater people 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 find 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 new in this restaurant. The first 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 supplier 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 fruit 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 premium chicken sandwiches and does campaigns to create more reasoned foods including salads on the side. This strategy basically refle cts the beliefs that innovation as opposed to reliability to traditional products is the key determinant towards success in the fast food industry.They have also centre more on increasing their sales at their current restaurants instead of airfoiling new ones. To do so, McDonalds has redesigned many of their restaurants, kept their stores open till late and incr take overd menu options. Nonetheless, new restaurants are still getting opened around the world at a rapid pace the company plans to open nearly 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.* too large advertising costs mean lots of exposure towards domestic and international market.Mission. Vision. ValuesMcDonalds brand mission statement 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 canter on the fivebasics of an exceptional customer experience such as -Place, Promotion, People Products and PriceProviding the excellent service to all customers and achieve the growth with a profit through strengths as McDonalds system innovation and engineeringThis mission includes becoming of the best employer for people in eachlocal lodge independently 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 quick service restaurant inthe whole world . McDonalds company states that their values in practice are thecor porate responsibility of the company. . It refers to outstanding Quality, Cleanliness, highschoolQuality 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 important .McDonalds show the appreciation by serving a high quality food andsuperior service. It is said. Their weapons-gradevalues 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 future not only for the companybut for the communities in which they operate as well. They also strive to achieve a welcoming surroundings by greeting all customers nicely and perfectly . They are one after another accountable and collectivelyresponsible.They are achieving some goals and most importantlyopen lines of communication is the main value between customer and also to theother stakeholders.another(prenominal) 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 credit line line profitably as long as it ispublicly backingd company. This requires not only focus on gaining moremoney but also on customers and the health of the whole system.Ethic in care is also one of the important values.The changing environment, customer, employee and systems need lead to theMcDonalds evolution and innovation as well.PESTLE Analysis is an analytical tool for strategic business planning.PESTLE is a strategic manakin for instinct external 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-environment 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, Economic, Social, scientific, effective and Environmental and is used for business and strategic planning, marketing planning, organizational change, business and product development and research reports..PESTLE analysis answers 6 key questionsPolitical What are the policy-making 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 technological changes that may affect the business?Legal What current and impending decree that will affect the business?Environmental- What are the environmental considerations that may affect the business?Political FactorsPolitical factors relates to t he pressures and opportunities brought by political institutions and to what full point 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 committal processes Corruption BureaucracyPoliticalGlobal fast-food firms must comply with country-specific political requirements, such as national minimum wage regulations, affecting costs. Hygiene and quality regulations vary 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 the business. Local economy Taxation Inflation Interest Economy trends Seasonality issues Industry growth Import/export ratios International trade International deputise ratesEconomicDespite the 2008 recession and the resulting decrease in consumer confidence across the globe, average consumer fast-food spending has increased its due to convenience and low-cost. Consumers are still looking for the convenience of eating out, but are drawn to the low prices of fast-food over table-service restaurants (Financial Times, 2009). Many fast-food chains have heavy(p)ised upon the recession by introducing new deals in addition 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, engine room image Lifestyle trends Cultural Taboos Consumer attitudes and opinions Consumer buying patterns Ethical issues Consumer role models Major events and influences Buying access and trends Advertising and publicityIncreasing consumer awareness about bouncing 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 engage with their customers. For example, McDonalds is the 9th most care brand on Fa cebook . Additionally, digital displays allow outlets to change their menus efficiently, to suit the time of day and self-service ordering points have increased service speed and trim labour 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 safety regulations Money laundering regulations Tax regulations Competitive regulations Industry-specific regulationsGlobal operators must comply with country-specific regulations and legislation. This includes opening hours, gross and employment regulations such as the National Minimum Wage Regulations in year of 1999 in the UK. Firms are often 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 progressively worried 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 Impact of adverse weatherEnvironmental lobbyists and governments are pressuring the fast-food firms to become more green. Rainforests are being sunk 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 opportunity to position themselves as green to garner customer loyaltyStrengths of McDonaldsIdentification of strengths weaknessesMcDonalds provides the best employees-business relation ship such as providing an equal opportunity employer. As an equal opportunity employer McDonalds ensures that employees and job applicants are selected, trained, its publicized without discrimination to race, gender, sexual 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 perform brand and Burger King and Wendys also performing wellThe resource strength, behavior, weakness, synergy and distinctivecompetences are major components of the internal environment of anorganization. . McDonalds high repeat-purchase intention loads despite their lower satisfaction scores illustrates the strength of their brand on the attributes that matter most to quick-service custo mers.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 size 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 share of wallet in this ultra-competitive segment.Diversifying business worldwide in various countries let to reduce orat least to verify the risk of business and find best advantages ofdifferent countries economies.McDonalds also takes an advantage of a long-term economic gro wth asan international company.It is also known that McDonalds has a strong real estate portfolio,which is also considered as strength of a company.The companys outlets are located in areas that are highly 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 recognized 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 mostly well perceived military group polite 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 there is not much more room to runMcDonalds has a very huge extent in the world, has a strongstrategy, feels well-provided 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 identified only by professionaleconomists, which actually cannot be alwaysvisual by person eyes, The summary of McDonalds weaknesses might beLooming market saturation which it can lead to difficulties inadvertising new products.Recent Disappointment Recently the company has inform 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 innovative companyFast growing and competitive market. That makes company to face income problemsIncome problems and huge competition do not let the be give n ofproduction rise into value ones but makes to diversify a range ofcheap and quickly made ones.Nevertheless, fast foodindustry is not a respected industry in most of nowadays point of viewbecause of rising number of various diseases caused by fast, unhealthyfood. Moreover, McDonalds food might face more unhealthy and fattyfood, rather then delicious. And there the price seemed as low doesnthelp in case of quality of food scurvy Barrier 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 completion 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 past drought this year has already caused food prices to soar, and this will cause McDonalds to face a situation in which they raise prices for their customers or allow their margins to be squeezed, a lose-lose situationCharityM cDonald 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 nix 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 comfortable business since year 1955 and 20 of the top 50 corporate staff employees started as a restaurant level employee. Fortune Magazine 2005 listed McDonalds as the trump Place to Work for Minorities.They have an efficient, assembly line style of food cookeryaration. In addition they have a systemization and duplication of all their food prep processes in every restaurant.McDonalds is a community oriented, socially responsible company. They run Mc Donald House facilities, which provide room and food ,board and sibling support at a cost of only $10 a day for families with children needing extensive hospital care. McDonald Houses are located in more than 259 local communities worldwide, and McDonald Care Mobile programs offers cost effective 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 bear burgers in India they provide separate entrances for families and single women.McDonalds uses only 100% pure USDA inspected beef, no fillers or additives. Additionally the produce is upraise 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 do brand processed items such as Dannon Yogurt, Kraft Cheese, Nestle 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 recently 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.McDonalds EgyptHas the second largest market share in Egypt with branches exceeding 60.Fastest delivery service provided in Egypt.Nutrition information is printed on all packaging precaution 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 game with shell petroleum.Sponsors many events and football teams.Cares about the environment by recycling the oil used in cooking for delivery motorcycles.