Name: Sakib Ahmed
ID: 112212068
Introduction
McDonald’s is one of the leading Ham Burger food chains all over the world have 32,000
restaurants over 180 countries.
Its main values are Quality Services, Cleanliness, and Value providing a fun food
experience.
From the biggening McDonald’s is being focused on cheap fast-food option, in the
recession time by providing cheap fast-food and regular customization they expended
their revenue but their quality of food is decreased due to poor training in franchise stores
, with dirty ambiance as well as lac of management in franchise stores
Now the income level rising, people are choosing more healthy foods and other food
choices like pizza McDonald’s is facing problems.
Background
McDonald initially started 1955 and successfully doing business among these years.
Even in rescission in the late 2000s they did amazing business but after rescission the
company is facing a lot of problems and risks.
The problems are after rescission people income levels are rising people are focusing on
more healthy food choices.
New food items from KFC, Pizza Hut, Dominos and Subways are becoming popular than
burgers.
There are big completions are coming up like Berger King which provides more
customize food options.
Starbucks coffee is widely poplar and a big competition for McDonald coffee chain
Expending to many countries and providing franchise to everyone makes the quality of
the food and restaurant low.
Although McDonalds positioning are changing over the time and they are adding new
food options but their core values are not changed much as they focus on cheap fast-food
option, after recession this value needed to be changed.
We are discussing some alternatives option to be added on MacDonald strategy to cope
up with new challenges and problems McDonald’s going to face in forward
Alternatives
1. Improve the service quality for franchise restaurants
2. They need to introduce more healthy food options
3. McDonalds can introduce category segments like frozen items in super stores new
pizza and Hot Dogs with exciting flavors to grab new segments.
4.McDonalds need to integrate with local celebrities to make the global campaigns like I
am loving it more successful.
5. Halal Food option can be introduced
6. Collaborating with local new shopping mall, Gaming zone, Cineplex can increase the
sales.
7. Company must focus on owning important palaces restaurants.
8 Restaurant interior design can be changed
9. Play zones, eventually kids will be targeted trough these campaigns.
10. Local event focused campaigns
11. Innovative digital media influencer campaigns.
12. Collaborate with big brands
13. McCafé coffee line need to push a lot get more attention
14. App based orders and customization of food needed,
15. Food Safety
Propose Solutions
Among these 15 alternatives 12 Solutions needed to be added
1. McDonalds must concentrate to improve the service quality; management must
monitor the franchise restaurants by providing regular training McDonald’s can improve
staff’s performance.
2.They need to introduce new healthy food options and introduce culturally accepted new
food item to generate new customers, as income level is increasing quality is main
concern for people rather than lower quality cheap food.
Healthy food options can focus on wide range of Salads, Veg Foods for vegan customers
and customization on Healthy food option can grab families and Health-conscious
people.
3. Halal Food option can be introduced to grab market in UAE and Muslim contents of
Asia.
4. Collaborating with local new shopping mall, Gaming zone, Cineplex can increase the
sales.
5.Restrurent re interior design can add new customers, sometimes customers consider
both environment and food by providing good environment McDonald’s can get more
customers.
McDonalds can change old design add more worm and cozy interior for attracting
environment focused customers
6. Play zones, play zones are very helpful to attract families into the restaurant, family
who have children want’s restaurant with kids paying zone, McDonald’s can launch
social media and TV campaign and school activation campaign to generate awareness on
children about the kid’s friendly restaurant, eventually kids will be targeted trough these
campaigns.
7. Local event focused campaigns, As McDonalds is focusing expending business in
Europe and Asia, they need to consider local event focused campaigns like European day,
Pohela Boishakh,Phoela Falgun, Puja
8. Innovative digital media influencer campaigns, social media influencer campaigns are
so popular now a days, Brands like Dominos pizza, Pizza Hut, Burger kings are doing
this type of social media influencer campaigns a lot to grab young customers.
9. Collaborate with big brands like Have a Happy Meal and every day the Lucky winner
will get Samsung Galaxy note 21, it will engage customers to both of the brands.
10. McCafé coffee line need to push a lot get more attention and it can be strong
alternative to the brands like Starbucks by providing more reasonable prices with high
range of flavors of coffee and confectionery line.
This venture needs to expend to Europe and Asian Markets where students and young
professionals are heavy consumers of coffee.
11. App based orders and customization of food needed, due to covid restaurants are
depending online orders.
Where Pizza Hut and Dominos are providing 30 minutes delivery insurance McDonald’s
can also focus on online delivery systems.
Partnering with local Food delivery can also provide advantage like Food panda, Zomato,
Uber Eats can help McDonald’s to get more orders in this quarantine situations
12. Healthy food options can focus on wide range of Salads, Veg Foods for vegan
customers and customization on Healthy food option can grab families and Healthconscious people.
13. Food Safety is a major concern for consumers now a days, customer wants safer and
healthier food rather than tasty and cheap food.
McDonalds’ need to promote safer chicken and other food materials.
They must collect from the safer organic food sources to ensure highest food quality as
well safer food for consumers
3 Alternatives are rejected because
1.Introduction New flavor pizza and Subways: Right now, introduction of Pizza and Hot
dogs to beat Pizza Hut, Dominos and Subways is bit difficult as Pizza and Subways
market is dominated by these brands, as the marketing budget of this brands are huge it’s
difficult to McDonald’s to compete with these international food chains.
Frozen food market is also very competitive it the customer can buy the frozen
McDonalds food at stores why the customer will visit to the restaurants.
As the flagship products of McDonalds are burgers and fries, they must concentrate on
that. They need to put the position on the customers mind whenever they think about
Burger and Fires McDonald’ picture will pop up on their mind.
2. Owning important places McDonalds’ is not possible in Asia and Europe as in many
countries McDonald’s don’t want to maintain full ownership shop it will raise the
maintenance cost.
Now it’s not possible as McDonald’s must concentrate its most profitable markets.
3. Hiring new local celebrities may cost huge expensive rather than sticking up
international celebrates can be more helpful like They can promote collaboration with
Marvel in Asia as Asian people are also crazy about Marvel shows.
Brands like Lux or Pepsi does follow these strategies, they run internal celebrity-based
campaigns in Asia also
Recommendations:
From my recommendation McDonalds’ core values needed to changed
They must concentrate on these new core values
1. Safer foods and Healthier foods ensuring highest food quality and Halal food and
Vegan food options also needed to consider
2. Online centric customization focused and delivery enabled food chain.
3. More local authentic foods are available with accessible prices
4. Innovative marketing concepts with both ATL, BTL campaigns
5. Innovative worm and cozy decoration to ensure better environment for both
family kids and young TG
6. Marketing strategies can be developed following 7p
If McDonald change its core value to compete with other international food chain so the
company will be miles away from its competition.
The core vales will be maintained by to top management of the organization and the
process need to follow to achieve the values.
1. Local digital and event management agencies will be marinating digital campaigns
as well as off line based activation.
2. Zonal Franchise manager will be hired in every zone to train and develop the
employees as well as managing the quality of the food.
3. Supply chain system needed to ensure the highest quality food as well as ensuring
the proper row materials delivery.
4. Organic and safer chicken and vegetables can be managed by McDonalds’ so that
it will be the USP for the brand.
5. Regular survey needed to be done to get the customers feedback on choice of the
food and introduction of new customized food in local market as well as
improving the quality of the food.
6. Decoration of the restaurant needed to managed by international interior chain in
all the markets over the world
So, we can say that McDonald’s is one of the leading food chains in all over the
world, it has been changing its brand value over the time by going forward they need
to consider the current situation of the organizations and change their core value of
the brand to beat the competitor and future challenges.