Module Title: Marketing Management

Programme: MBA

Semester: One

Student name : AL mabrouk ereghei

Academic Year Period: July 2014 September 2014

Lecturer: Dr. Lewis Leong

Introduction .

In fifty years ago. Companies have to adapt to the changing world in order to
survive or keep the position on the market. These changes are especially
profound for fast-food sector. Looking at the market leader provides good
understanding of this process .
McDonalds is one of the best known brands worldwide. it is one brand name
famous in the world . it has gone by many of stage of development to
keeping this kind of success. McDonalds has created a number of successful
marketing campaigns and slogans such as You Deserve a Break Today, Its
a Good Time for the Great Taste of McDonalds, and Food, Folks, and Fun.
Its current campaign, Im Loving It, seems on track to join the others by
helping the company reach record sales and growth despite difficult
economic times.
in this assignment I would like to find the core brand values of McDonalds.
and there is any changes over the years? Also there is any change its
strategy? and I will try to find Why or why not? Also What risks do you feel
McDonalds will face going forward?
I will answer all this Questions in this assignment,,,,,,

Analysis

McDonalds Brand
Brand name is the most important element when designing a brand. The
logo McDonalds use is strongly connected to the brand name. The capital
M, sometimes called Golden Arches, with the distinctive smooth shape
looks the same as the one in the name. This kind of smart connotation
increases memorability and recognition of the brand. The direct connection
between those two leaves no room for a mistake. Easiness on putting it on
any product offered or in any form of advertisement invented, is an
important brand building element. Having such a simple, and on the other
hand, so distinctive in shape and color logo allow legal protection that does
not need any other special effort
McDonalds Core Values
(values) are the basis for how to do business, and they are what set us
apart from the competition. They believe that creating an atmosphere where
workers, suppliers, and franchisees understand and embrace them values is
essential to the continued success. When we Looking at the brand equity
drivers, analysing its brand equity and positioning on the market will help to
understand the phenomenon of the Golden Arches. Is successful brand
building a key to success in todays world.On other hand what makes

mcdonals has that kind of success the strategic . McDonalds Throughout

the years new products were introduced and new marketing campaigns were
used to get customers attention. The identity of the brand was built through
adding different brand elements. The expansion to new locations .
McDonalds understood that successful brand building would help company
in the future. By implementing different branding strategies the Golden
Arches were able to create unique brand associations. The company
communicated the meaning of the brand in order to create strong and
favourable image of the brand in consumers minds. McDonalds knew that
having a strong brand could be taken step further and affect judgement and
feelings in order to create positive reaction to the brand every time. To get
the positive response McDonalds promoted McDonalds lifestyle. Brand
equity drivers like marketing activities and internal branding helped in this
process. McDonalds has known from the very beginning, that the goal of a
strong brand is to make customers loyal. The creation of intense and active
relationship was the key to McDonalds success.
Also , grasp what the brand is and what makes it special, summarizing and
translating the intent of a marketing program. those six main criteria for
choosing brand elements: ( Memorability- Meaningfulness- LikableTransferability- Adaptability- Protectability)
There are many examples of item adjustments that have been made around
the world over the years to address local tastes and preferences . The menu
changes resulted from many different reasons such as cultural, religious,
taste preferences and translation reasons. Some specific examples are in
India, there are no beef items served throughout the country, so McDonalds
added the Maharaja Mac, a lamb version of the standard Big Mac.
The marketing of international restaurants is handled with the same process
as product development. Locally, the countries develop and test market
ideas that differ from the corporate worldwide message. Any differences in
the core message are then presented to the corporate office for approval.
Marketing overseas, like product development, is mostly handled away from
the corporate office. There are many reasons why the core marketing
message would change, including; translation reasons, cultural differences,
customer target differences and the fact that the product itself being
marketed might not even exist in the companys core message.

McDonalds

strategy.

i would like to know what McDonalds marketing Strategy first , its content to
stapes;
A- Business strategy:
1. Running more outlets is main way at this stage.
2. The franchise chain will be an inevitable road to business expansion.
B- Competitive strategy:
1. Providing featured service and health products.
2. Achieving standardization in each process and areas of service.
3. Establishing a brand image that penetrates into the essence of every
detail.
4. Setting target market with clear personalized positioning
Differentiation strategy of McDonalds:
In differentiation strategy, fast food chains need to be more selective in
which products to offer & more creative in their promotion strategy.
McDonalds offers specialized (Regionalized) version of its menu. This leads
to differentiate the products from other competitor products as well.
Mc Grilled sandwiches in US & Canada.
Mc Chicken Premiere & Zesty chicken in UK, France, Italy & Belgium.
To overcome their healthy issues Mc Donalds added salads & other lighter
options to its menu & encourage people to visit more often.
Product adaptation in India- Vegetarian selections, No beef or pork items,
McMasala
Wide variety of menu items according to the Indian menu items;
Vegetable & non vegetable products.
Health conscious items.
Local flavors.

McDonalds cost leadership strategy & growth strategy is based on;

Adding new restaurants. Maximizing sales & sales in existing restaurants.
Improving profitability (globally)
McDonalds uses an overall low-cost leadership strategy to reduce cost and
increase sales. Higher profits resulting from sales through lower prices than
competitors as the unit cost is lower.
McDonalds should stay in that kind of strategic with carrying develop if would
like to counting with same level in higher profits .Also The range of actions
that increase flexibility are great. Personnel can be cross-trained so that

operations can be increased or reconfigured quickly. can be developed to be

more adaptable to new competitions and new markets. Sales and marketing
staff can be kept up to speed on potential opportunities in related markets.
Leadership can use periodic management meetings to keep staff members
informed of outside events. but every business needs to spend some time
thinking about how to achieve greater flexibility in their strategy and
operations.
-McDonald's risks will face going forward.
-investments in smaller countries .
investments in far and smaller countries
The primary reason for the failure of Mc Donald in smaller countries is
observed from a statement mention competitors all use domestic meat and
lettuce and so on, while Mcdonalds are flying in these materials, which is
extremely expensive,. All produces that Mcdonalds uses are imported.
- financial crisis:
Risk from failed banking system - Banking and financial system transformed
in 2007 from a small-scale, low-risk deposit money banks to an international
banking system with high-risk leveraged investments Major Banks
capitalizing on this change in perspective invested across world their by
improving their balance sheets Thereby reducing the investors confidence.
Risk associated with foreign exchange transactions has increased a lot for
Mcdonalds.
-Risk from policies.
Risk from global crisis 2008 sub-prime Global Crisis is a cause of misguided
policies and these troubled polices created exhaustive imbalances in the
world economy. These imbalances affected already troubled because of
Foreign investors loosing confidence. Also the situation in countries Reflects
the risk on investments.

-Healthy damage.
McDonalds has been the target of a great deal of criticism in recent years
with public health officials with damning comments. ,

salt and sugar contained in the meals, with all being named by detractors as
key causes of obesity.

.Conclusion.

The aim from this assignment is to know the Brand name is the most
important and to know a core McDonalds brand and what kind of strategy
flow Through a combination of expanded product ranges, intense marketing
efforts and operational efficacy McDonalds has been able to defy the critics
and tough economic decisions McDonalds has been forced to contend with a

number of potential obstacles to growth in recent years, most notably stark

criticism and a less-than-favorable global economic climate that has seen
consumers reduce their discretionary spending. McDonalds has, however,
employed strategies to counter these problems, and the decisions the
company has taken have allowed it to maintain a strong level of growth.
The move towards a healthier menu, achieved by making changes to existing
items and introducing new offerings, has helped satisfy some of its critics
and attract those who are perhaps more health-conscious than the
traditional McDonalds customer, while new items such as the McCafe range
are helping the company attract new customers. The message has been
reinforced by a relentless and innovative marketing campaign, which has
helped make the McDonalds brand one of the most recognized and valuable
in the world.
The company continues to excel in operational efficiency through a wellintegrated chain that brings together suppliers, franchisees and employees
and allows them to provide diners with the best service possible. All of these
factors combined are enabling McDonalds to stay ahead of the game and
continue to increase revenues, profits and the number of restaurants it has
globally.
World is changing, and so is McDonalds.

References.
http://www.assignmentpoint.com/business/marketing-business/mcdonaldsgolden-international-markets.html

http://www.mcdonalds.com/usa/eat/mcdonalds_menu.html
http://www.forbes.com/sites/billconerly/2013/02/20/uncertainty-and-riskmanagement-what-to-do-about-black-swans/
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Effective Brand Building A Case Study of McDonalds CorporationJaroslaw

Sliwka arhus School Business Aarhus University2010