Mc donald's imc case study

Case study on McDonald's IMC Plan

1. INTERGRATED MARKETING COMMUNICATIONS | CASE STUDY

2. Introduction McDonald’s is one of the best known brands worldwide. McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. Although McDonald's is best known for its hamburgers, cheeseburgers and french fries, they feature chicken products, breakfast items, soft drinks, milkshakes, wraps, and desserts. In response to changing consumer tastes and a negative backlash because of the unhealthiness of their food, the company has added to its menu salads, fish, smoothies, and fruit.

3. Promotion McDonald’s uses the following promotional tools. Advertising Sales Promotion Public Relations Direct Marketing Personal Selling

4. Advertising Conducted on Television, Radio, Cinema Halls. 3 main objectives of advertising for McDonald’s are: To make people aware of their product To make them feel positive about it To ensure that they remember and retain the product Most famous Marketing Campaigns “ You deserve a break today, so get up & get away – To McDonald’s” “Food, Folks & Fun” “I’m Lovin it”

5. Sales Promotion Consists of conducting and encouraging activities that promote McDonald’s through contests and programmes and giving away free coupons Contests like ‘Coast to Coast’, NFL Love’, Happy family moments’, created awareness and boosted their sales and market share. Promos and Contests are held on social media to engage more youth.

6. Market Strategy Franchise Model Only 15% of total restaurants are owned by the company, rest are franchisee operated Comprehensive framework of training Adherence to quality, service, cleanliness and value propositions Product Consistency Sophisticated Supplier networked Operation & Distribution System Consistent product taste and quality across all the geographies.

7. Act like a Retailer, Think like a Brand Focuses on: Delivering sales for immediate presence Protects its long term brand reputation Re-engineering the Menu Menu is different across the world Depends on the customer’s taste, values, beliefs, lifestyle and perception Being famous for hamburgers, McDonald’s came up with chicken and fish burgers for customers with related religious beliefs McDonald’s also came up with a whole new vegetarian menu to satisfy its respective customers

8. Segmentation, Targeting, Positioning McDonald’s uses demographic segmentation with age as a parameter. Main target segments are: Children Youth Young urban family Happy Meals for children comes with toys from Hot wheels to Walt Disney characters.

9. Swot Analysis STRENGTHS Global brand Strong operational capacities Successful products Quality products WEAKNESSES Weak revenue growth Weak product development OPPORTUNITIES Expansion Franchisee-operated restaurants Growth in take-aways and home deliveries THREATS Intense competition Growing health consciousness Increased sales tax

10. Product Launch McSpicy Range Advertising Campaign (2011) “How Spicy is McSpicy” Aim To project McDonald’s as a youthful brand & that it met the taste & preferences of the youth Pre-Launch Campaign “The Great Spicy Speculation” (Reached 250,000 people)

11. Channels for Product Launch Store Television Radio Outdoor Online promotions Technological Innovations (LED Hoarding and Kiosks)

12. Case Study Questions 1. What are the risks that McDonald’s might face in the future? Growth health consciousness of society Change in lifestyle and tastes Competitions from local fast food chain Rivals like Subway offer customized food items. 2. What are McDonald’s core brand values? High quality at a great value Speed and accuracy Identical taste across the restaurants Cleanliness and hygiene Implementation of 5 P’s.