MacDonald's Marketing Paper

In the united states go active meals have been

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: organization understands that health trend is an increasingly popular trend therefore; the organization has recently focused extraordinary efforts to promote their new nutritious choices. Although not specifically built into the organization¶s vision, McDonald¶s has already introduced many options to achieve this goal. In the United States, ³Go-Active´ meals have been offered within the last few years. These meals include a salad, bottled water, and a ³step-ometer´ to help customers keep track of how many steps they take a day. Other countries have seen similar healthy options. The United Kingdom saw fresh fruit bags, containing apples and grapes, as an alternative to French fries. Not only does McDonald¶s care about its customers, but it is also considerate of its employees¶ health. In Europe, the organization worked with external nutritionists to develop an ³Employee Guidebook´ which contains tips and nutrition information for healthy lifestyles. McDonald¶s has assembled their Global Advisory Council on Balanced Lifestyles. This council consists of exercise & obesity spets, environmentalists, and other professionals to ensure that McDonald¶s takes appropriate steps in helping its customers achieve optimal health. 47 | P a g e The company is also utilizing technology to their advantage. The current McDonald¶s website lets a user select any combination of menu items, place the items in the online bag, and conduct a nutritional analysis on their selections. The user can break down the analysis even further than a menu item, down individual condiments, including ketchup; pickles etc. Not only has the company introduced many steps to ensure nutrition, but it will strive to continue the trend toward nutrition. McDonald¶s plans to add additional healthy menu options (fruits and vegetables) increase nutrition awareness among McDonald¶s employees; conceive new ways to deliver nutrition information to its customers, and other actions. CHANGE IN STRATEGY Made for You McDonald¶s organization recently underwent drastic strategy changes to serve better to their customers. Under their ³old system,´ the company would make several sandwiches at once, and hold the sandwiches in a warming bin until purchased by a customer. Under this system, management had to accurately predict how much food had to be put on hold. Accurate prediction had to be used because if there were not enough food placed on hold, this would create the problem of increase waiting times for customers, and too much food would cause waste of 48 | P a g e expired items. McDonald¶s dramatically changed their strategy in order to stay competitive with other fast food organizations. In 1999, McDonald¶s spent $181 million to introduce their ³Made for You´ system. Under this new system, standard food items are not held in a bin until they are sold. In the ³Made for You´ system, modern technology greatly assists McDonald¶s operations. When a customer places an order, the sandwich items are immediately displayed on a computer monitor in the kitchen and a tone sounds to alert the kitchen staff. Upon a new order, an employee in the kitchen will toast the bun, and assemble the sandwich accordingly. Standard items simply list the name of the sandwich, while customized orders list the sandwich name and the desired condiments. Once the sandwich is assembled, it is presented to the food loading area, where a different staff person retrieves the sandwich and completes the order by adding French fries, desserts, etc. The system works the same for front counter orders as well as drive-thru orders. Unfortunately, the introduction of the ³Made for You´ system did not come easily. McDonald¶s watched its customer satisfaction drop for the three consecutive years beginning in 1999. After further research, they realized that although the new system provided fresher food, it was not as quick as the previous system. Instead of reverting back to the old system, McDonald¶s continues to fine tune ³Made for You´ and add new options to help the system work faster. Revitalization Plan In order to cope with the first ever quarterly loss that resulted from inefficient use of the Made-for-you-system McDonald¶s has devised a new plan to increase profits. Previously, the corporation emphasized adding 49 | P a g e more restaurants to increase sales, but the new plan places emphasis on increasing sales at existing restaurants. The new plan will reduce spending, to enable more cash to shareholders through dividends and share repurchases. Specific goals of the revitalization plan are to: y y y y Attract new customers Encourage existing customers to visit more often Build brand loyalty Create enduring profitable growth The main goal is to increase sales by creating an exceptional customer experience. McDonald¶s plan is to achieve this goal by focusing on its people, products, places, prices, and promotions. Menu Along with changes in their process strategies, McDonald¶s has flirted with menu changes as well. Last year, they offered a ³...
View Full Document

Ask a homework question - tutors are online