SWOT analysis: Macdonald's case

Résumé du document

This PowerPoint presentation evokes an internal and external analysis of McDonald's strategy. Extract : "Despite McDonald's leading position in the fast food market, the company currently has to face 2 major problems that make it unable to develop consumer preference: Firstly a growing gap between consumers: A priori perception of the brand and their actual experience in the chain's fast food; Secondly a slack relationship between McDonald and its consumers. Generally speaking there is a certain lack of intimacy and cooperation between McDonalds and its targets. The development of Happy Meal sales embodies the issues faced by the whole group since 2000 and shows to what extent 2003-2004 are a turning year."

Extraits

[...] It targets various types of segments functions of areas, ages and income. McDonald's targets worlwide nomadist people from the middle class and families: children teenagers (15 24) and adults, all kinds of eaters: from potential to regular, light to heavy eaters Positioning It offers medium price fast-food associating quality and pleasure It is a worldwide chain McDonald's tries to position itself as a healthier (new green logo, fresh products) and socially responsible company It also defines itself as open-minded chain as shown by the slogan come as you are 25 Recommendations In order to develop the fruits and vegetables field of the Happy Meal, the company has to improve its operational system and logistics to reduce costs. [...]

[...] SWOT analysis: Macdonald's case SWOT ANALYSIS THE CDONALD'S CASE Summary Internal analysis McDonald's Corporation McDonald's France The Happy Meal External analysis The IEO market The French IEO market Conclusion Targeting Positionning Recommendations Sources Problematic Despite McDonald's leading position in the fast food market, the company currently has to face 2 major problems that make it unable to develop consumer preference: Firstly a growing gap between consumers' a priori perception of the brand and their actual experience in the chain's fast food. Secondly a slack relationship between McDonald and its consumers. Generaly speaking there is a certain lack of intimacy and cooperation between McDonald's and its targets. [...]

[...] The development of Happy Meal sales embodies the issues faced by the whole group since 2000 and shows to what extent 2003-2004 is a turning year 3 Internal analysis McDonald's Corporation Strengths The world's largest fast food chain a turnover of $22 billion in 2007 which has raised continously raised More than 31,000 restaurants serving 52 million customers per day Present in more than 100 countries 65% of Mcdonald's restaurants are franchises Its leading position creates new visits (28 million additional visits between 2006 and 2007, superior to IEO evolution) World famous brand ( the big mac index Mcdonald's has become synonymous of hamburgers) The company has been listed on the New-York stock exchange since Internal analysis McDonald's Corporation Strengths A smile known all around the world through Ronald McDonald character A sustainable strategy consisting since 2004 in: Improving its reputation Upgrading its range and marketing activities Upgrading its restaurants Upgrading its communications Multiple targeting (especially the 15-24 and the 35 + age groups) 5 Internal analysis McDonald's Corporation Strengths Its image still consists in two major characteristics: Mcdonald's is made for people in a hurry and is the first choice for families More than 50% of people remain satisfied with Mcdonald's products and a priori satisfaction has raised between 2003 and 2007 McDonald's communicates a great value to customers 6 Internal analysis McDonald's Corporation Strengths A wide range of products which enables Mcdonald's to meet all the consumer needs identified in Informal Eating Out (IEO) A transparency on food origin An evolution of the relationship with its customers from junk food to the perfect compromise 7 Internal analysis McDonald's Corporation Weaknesses A brand which is synonymous with malnutrition, serving too sweet and too fatty products A gap between consumers' a priori perception of the brand and their actual experience in the chain's fast food. It is a potential source of conflict between the customers and the brand. A lack of emotion in the relationship with its customers that has moved from passion to neutral benevolence Internal analysis McDonald's Corporation Weaknesses A chain that fails to develop consumer preference. [...]

[...] An ambiance that is rated lower and lower among children Internal analysis McDonald's France Strengths McDonald's has been present in France since 1979 Even in France, the world's largest fast food chain succeeded in entering the market with: More than 1000 restaurants in France Over 1 million customers a day A 3 billion euro turnover employees. A consistent improvement since 2004 with : An increase in sales by in 2007 An increase in market share to in Internal analysis McDonald's France Strengths It is a socially responsible company with La Fondation Ronald McDonald for the children and Maisons de parents, funded by the Big Mac Don A growing reputation with of positive opinions Partnerships with Virgin and Galeries Lafayette It sponsored the French National Team 11 Internal analysis McDonald's France Strengths A brand promoted by stars such as Fabien Barthez A specific design based on series of theme restaurants A new range of healthy products that suits French consuming habits 12 Internal analysis McDonald's France Weaknesses A rising negative opinion from 39% to 42% between 2006 and Internal analysis The Happy Meal Strengths It has existed since 1979 A continous progress in sales since 2004 The Happy Meal menu offers 160 different choices Quite balanced menu offering fresh fruits, mixed salads, yoghurts, vegetables, fish, making parents more confident and children happier Internal analysis The Happy Meal Strengths A heavy global communication strategy for the Happy Meal Activities in restaurants TV and press advertising focusing on quality, pleasure and nutrition Use of movies licenses for their toys 6-14 years old represent 37% of McDonald's clients, which is superior to restauration market 15 Internal analysis The Happy Meal Weaknesses An image damaged by too fatty and too sweety products In 2003, most Happy Meal promotions were failures A drop in toy's quality confirmed in 2003. [...]

[...] It turned out to be an illusion in the long run, as shown by the standstill in Happy Meal and fresh food sales. Nevertheless, their approach to fruits and vegetables should remain an integral part of their strategy. McDonald's still has to create new forms of intimacy and cooperation with each target Targeting The company adopted undifferentiated marketing which means mass marketing for worldwide common needs. [...]