Don’t Miss! Top 7 Business Strategies Could Change Your Life: McDonald’s Case Study. Introduction to this Brand Company makes 37,000 Outlets & 118 Country in the world. Just read the full blog
No.1 Fast Food Chain in the World, According to Forbes.
1. McDonald’s (Hold 1st Position in Fast Food Industry)
2. KFC (2nd Position)
3. Subway (3rd Position)
Why McDonald’s stand 1st Position In Fast Food Industry?
1) Most Visited Restaurant in the world
2) Burger Ready in 3 minutes
3) 37,000 Outlets in the World
4) Serves 118 Countries
5) Servers 68 Million Burgers To Customer
6) 100 Billion Burger Sold, Earned 24 Billion $ Revenue
7) 3.35 Lakh Employees
There are many strategies but 7 main Strategy For You
Step #1: Power of System & Repeatability
Step #2: Strategic Values Q.S.C.V
Step #3: Begin with internal Marketing Plan
Step #4: Menu Innovation
Step #5: Coined The Term Fast Food
Step #6: Local People, Local Product, Local Price
Step #7: Invite in with Low Ticket Prize & Cross-Sell For High Ticket Size
Ronald McDonald has become More Famous than Santa Clause.
The total population of the world is 7.5 Billion, but McDonald’s Sold over 100 Billion Burger.
1) Power of System & Repeatability
Company CEO Mr. Ray Kroc want a Speed in the business. For Speed, they want the company should have Repeatability. Mr. Ray Kroc knew that Company will only grow when there is any Repeatability in the business.
1st Rule of the Business: Scalability & Repeatability
No need Hire an Intelligence Chief, A Normal Chief can do all the Work because it’s a repeatability Business.
Model & Method | Format & System
When you doing with Model & Method, it will help you to Grow in Business.
Junior Employee can do all work in the McDonald’s with Low Wages.
Mr. Ray Kroc already identified that the Product is not My actual Product. Business Format is my Actual & Final Product.
I hope you have a question on this Actual Product?
Let’s Understand with an Example:
In Mumbai, Specific Place Burger is extremely awesome made by Ram. It is 10 times better than McDonald’s. But Ram Only Sold there Burger in that Specific Place. Because of One Burger, You can Expand Domestic or International. If Ram wants to expand his Burger Business, then they need a Good Business Model. So, Mr. Ray Kroc already knew that Business Model is important than a Burger or Product.
So, I hope you understand & clear about Business Model & Actual Product.
The Business Model For McDonald’s is Franchisee Owner. Franchisee Owner is the First Customer, Last Customer & Most Important, Customer.
Mr. Ray Kroc Knew that I had to teach or Educate Franchise Owner How to make a Burger, with a certain easy step. Just because of Methods & Model Burger can make in 3 minutes.
Because of Model & Method Format in System, they got a very good advantage like
1) Number of Restaurant: Increased
2) Global Profitability
3) Growth of Sale
4) Operational Excellence
5) Product Standardization Increased
6) Lower Operating Cost
2) Strategic Values Q.S.C.V
Quality of Burger, No Compromise on Quality. Every item in the McDonald’s Should be maintained Quality.
Service of the McDonald’s had to be Speedy. Service plays an important role in McDonald’s because of Fast Service.
Cleanliness. is extremely important. Wherever you go, In McDonald’s it is very Neat & Clean.
V=Value For Money
McDonald’s is not expensive, in just a few dollars you can get Fast Food that is called Value For Money. It is an Affordable Hangout & Meal Under Rs 100 Category Tag they got in Customer.
3) Begin with Internal Marketing Plan
Before going to the Marketing Plan, We should Educate Our Internal Marketing Team. Internal Marketing itself says that Develop & Educate the Employe who are working in McDonald’s. They are very much intended to educate the worker from Strach. So, this is a good mark to grow your company in Faster ways.
Whenever there is a Launch of New Product, it is First tasted by Employee & Taken their Feedback, regarding New Product. They take a serious note on Feedback of the Employee.
Continuous Traning, Free Food For Employee & taking care of Employee is the weapon for the McDonald’s to have faith in Employee.
I’m loving it! The campaign is spread like Fire in the World. Especially to the children & middle age. McDonald’s Strategy is a unique Strategy in the World.
4) Menu Innovation
McDonald Franchise Analyze the behavior of the Customer.
They had Analyzed that Kids are the targeted area, Kid itself acts as an influencer. The Kids are Obstinate to go to McDonald’s because of “Cartoon Toy” but Kids act like influencer & Parent acts as Decision Maker.
Because of the Kids, Family goes to McDonald’s, it is Affordable Hangout & it will be Family Outing, etc. So because of Family, one burger converts into the meal. An employee of McDonald’s had a strategy like “Would you have some fries with order” to every customer. because they want to UpSale their product, obviously it will increase the business.
They have Fast, Slow, Non-Moving Technique & limited Product Menu. There Strategy is Sell only those Product, Who Sold Very Fast.
5) Coined The Term Fast Food
Because of McDonald’s Fast Food invented in the world.
Quick Service Restaurant is invented by McDonald’s.
McDonald’s Says that “Any Food that needs more than 5 minutes, it’s not on the List“. The order should be Very Fast.
6) Local People, Local Product, Local Price
Hire Manpower Local According to the Sate
When you go to America, he will make their burger according to the American people Same goes for India, Italy, China, & Japan almost 118 Countries.
Strategy For the Local Market Taste & beat the Competitor.
Local Responsiveness & Global Integration are regional strategies.
7) Invite in with Low Ticket Prize & Cross-Sell For High Ticket Size
McDonald’s Invite you with a Low-Cost Strategy, if you entered, they will say to you “Would you take a Fries with that or Coke with that” this is the main strategy for every business called as Cross-Selling. There is a Chances of 1/3rd people take that cross=selling product. This is Called a Marketing Strategy For McDonald’s Case Study.
Introduction McDonalds Case Study:
We should look at the case study of the world’s most popular food chain McDonald’s. McDonald’s is present in 118 countries serving over 69 million customers each day they have over 37,000 outlets employing 420 thousand people worldwide.
They are huge right so how did it do it we have a look at the story’s strategies and their sucks mantra in this presentation McDonald’s was founded in1940 as a barbecue restaurant by the McDonald brothers & Ray Kroc later joined the company as a franchise agent.
Ray Kroc subsequently purchased the chain I recommend you to watch the movie founder which is based on Ray Kroc the story of McDonald’s is something similar to Starbucks they Howard Schultz joined Starbucks as an employee later acquired the company any successful businesses should define a strong set of core values target audience their competitors and revenue model clearly.
McDonald’s core values
McDonald’s core values quality, service, cleanliness, and value for money any business moves or strategies should revolve around these core values and defining them clearly are very important so that the target audience is teenagers kid’s families.
The people who are in a hurry the restaurant is divided based on their target audience they have a section where there are comfortable settings for the teenagers to hang out on a separate section for family and they also have arrangements for people who are in a hurry to get a quick fight.
McDonald’s competitors are Domino’s, KFC, Subway, Dunkin Donuts, Taco Bell and other fast-food chains and because of my cafe, they directly compete with Starbucks Coffee, Cafe Coffee Day and other coffee chains they make money by investing in properties franchising and operating their restaurants’ franchising has been that core strategy. This is all about McDonald’s Case Study & Competitor
The Core Strategies is expansion but reduces the capital risks & the main challenge of franchising is providing that standard experience across all restaurants and McDonald’s have been doing that very successfully let’s now look at how McDonald’s became one of the most valuable brands in the world.
Brand Association & Brand extension
Let Look into How McDonald’s is the most popular brand in the world using smart brand elements holistic marketing approach brand Association and brand extension they have been able to build a very popular brand the most successful brand element.
Introduction of Renaud McDonald the most popular mascot in the world the slogans like I’m loving it! and logo connects instantly with a large customer base McDonald’s sponsor a lot of events like the Olympics FIFA World Cup the NFL and soon it also uses a holistic marketing approach to build its brand by opening many charitable.
McDonald family room & capable to help children with leukemia the successful introduction of McAfee directly targeted the customers in the booming coffee industry and stole the market share from companies like Starbucks, coffee day, barista and are the big coffee chains this is a good example of a McDonald’sworks to appeal to new customers and stay relevant through the years.
During the Expansion of this brand, they did make some mistakes during the 1980s, they expanded aggressively and during the 1990s in the early 2000s, this growth led to many struggles as it added over 2,000 new restaurants every year they lost focus in the direction the staff was not trained enough.
Because of this, there was a drastic drop in customer service they realized they get distracted from their values in 2003. McDonald’s implemented a strategic effort called plan to win which is still in effect this strategy has mcdonald’s refocused on high-quality food at great value and at great speed eyes they faced more problems there was a documentary that was released which linked McDonald’s with obesity.
The gods quickly reacted by removing the supersize burger options and they also introduced the premium salads and healthier apple slice in order to compete with companies like Subway that offered healthier food options there are many successful strategies that has helped McDonald’s.
Free Wifi & Tv Strategy
Mcdonalds achieve great success because of smart moves like the $1 menu based on regions drive-throughs TVs and free wi-fi’s different seating for different target audience free toys for kids and improved aesthetics has helped McDonald’s increases customer base.
But they still face many risks obesity is a major concern and consumers are shifting towards healthier food options and competitors like Subway are also offering very fresh and healthy food.
McDonald’s Case Study should be very careful about expansion and should continue to stay relevant to the current trend and hence brings an end to this article.
In this article, we saw the scare of McDonald’s Case Study and how it all started we also saw the core values target audience competitors and their revenue model we also saw how they built a very popular brand their mistakes successful strategies and risk their face in the future so thank you, everyone, hope you all liked it.
See the full video: Top 7 Business Strategies For McDonald’s Case Study