Problem Definition: Key Issues
McDonald’s is known worldwide as an industry leader in the fast food industry.
Declining sales over the past few years, prompted McDonald’s marketing team to begin research
and implementation into new marketing strategies.
Key issues to be considered include healthier
menu offerings, more deli-style menu items, more “non-hamburger” menu items, quick drive-thru
services, and an increase in sales overseas in the global market.
Probably the largest contributing market disadvantage for McDonalds’s is their image of
a fast food, burger-and-fries restaurant. The fast-food industry as a whole has received much
criticism for their many high-calorie menu items.
As the industry leader, this puts McDonald’s in
a position to be the primary target of criticism.
While some non-burger fast-food restaurants may
have healthy choices already established and well known within their menu options, McDonald’s
and other burger chains have had to reconsider their offerings in order to provide healthier
choices for consumers.
In addition, restaurants such as Taco Bell, KFC, and Pizza Hut continue to be very
competitive with their “non-burger” items such as chicken, tacos, pizza, pasta, and salads.
consumers, who want a better quality food, have turned to such restaurants as Boston Market and
Panera Bread Company, now categorized as “fast-casual”.
These restaurants offer deli-style
menu items, more upscale than fast food chains such as McDonalds, and much faster service than
other upscale restaurants with similar quality food items.
Overseas, McDonald’s has ventured to such countries as China, however competition still
Prior to McDonald’s first restaurant opening in China, the majority of Chinese
consumers had never been to a fast food hamburger chain. This was a disadvantage at first, due to
the mainstream culture that existed, where most consumers ate at home or dined inside.