Haley Dodds, Jose Cardoso, Jamil Kadri, Shivaan Levesque

ADMC 150 [Section 01]

Brand Marketing Plan
April 14, 2014
Instructor: Anna Santilli-Finn

Table of Contents
Background

Page 4

Company Image

Page 5

Targeted Demographics

Page 6

McDonalds current marketing plan

Page 7

Strategy

Page 9

Product Description

Page 10

Internal Situation Analysis

Page 14

Target Market

Page 14

Examination of Marketing Mix

Page 15

External Situation Analysis

Page 19

Competition

Page 19

Competitors Promotional Tools

Page 21

PESTLE

Page 25

Political

Page 25

Economic

Page 25

Social

Page 26

Technological

Page 28

Legal

Page 28

Environmental

Page 28

Consumer Analysis

Page 29

Positioning

Page 32

SWOT Analysis

Page 36

PART TWO

Page 37

IMC Message

Page 37

Objectives

Page 38

Objective 1

Page 39

Objective 2

Page 42

Objective 3

Page 45

Objective 4

Page 48

Objective 5

Page 55

Brand Recommendations

Page 58

Works Cited

Page 59

Market Place Overview with McDonalds

1. Background

McDonalds was first opened, as a Bar-B-Q restaurant in San Bernardino, California. It was a drive-in featuring a large menu
and a carhop service.

After 8 years the founders Dick and Mac McDonald decided to shut down their restaurant for 3 months for alteration. In
December of that year, it had reopened as a self-serviced drive- in restaurant.

Their menu was reduced to nine items: hamburger, cheeseburger, soft drinks, milk, coffee, potato chips, and a slice of pie.

A year later, McDonalds had decided to remove their potato chips from the menu and replace them with their world famous
French fries. (McDonalds.com(n.d)

5 years later, the owners of McDonalds partnered with Ray Kroc who was fascinated by the operation of McDonalds. With
Ray Kroc on the team, McDonalds began opening restaurants across the US. (McDonalds.com(n.d)

In the late 60s McDonalds goes international opening in Richmond, Vancouver, Canada and in Puerto Rico.

McDonalds decided to remodel their logo and the look of their buildings from the old red and white to more on the emphasis
on the golden arches.

Since the late 60s to present McDonalds has been adding new and exciting burgers for people to enjoy.

In the late 70s, they debut their Happy Meals from kids.

Recently, McDonalds began redesigning the look their restaurants to a warmer and relaxed environment to eat.

They have also introduced their new line of new premium tasting coffee for consumers to buy. (McDonalds.com(n.d)

1.1 Company Image

o Iconic logo the M (in 69 it was changed emphasising on the golden arches)
o World famous French Fries (the taste has never changed since 1949)
o McDonalds exposure in 119 countries
o The Ronald McDonald House Charities
o Seen as a cheaper alternative, focus on value
o A beacon of success (Morrison, 2012)
o Perception of product quality low compared with competing brands
o High-ranking among its cohorts for convenience with competing brands
o Seen primarily for as a burger-and-fries chain (Hadley, 2008)
o Iconic among its contemporaries in the world of fast food

Targeted Demographics

Parents and children (3-12): happy meals and Play Zone

o

Creates excitement and fun for children, for parents its carrying a tradition, and enjoying a meal that everyone can
eat

Teenagers (13-19):
o Place to hang out with friends
o

Affordable food

Baby Boomer/Seniors:
o Tradition
o Place where they could take their grandchildren to eat

2. McDonalds current marketing plan:

Adherent to brand mission: To be our customers favorite place and way to eat and drink

Brand goals encapsulated by the acronym, QSC&V: Quality, Service, Cleanliness & Value; serves as a foundation for their
marketing initiatives and internal practices

Objectives:
o

Balance menu with established favourites and new additions

Position tried-and-true options as being timeless and representative of the brand itself (examples mentioned
include Big Mac and Egg McMuffin)

Work towards an increase in choice by introducing new ingredients

Explore categories with high growth opportunity so as to broaden appeal of their menu: beef, chicken,
beverages and breakfast

Improve customer service

Cement importance of interactions between consumers and workers stationed at drive-thru's and storefront
counters identified as the moment of truth

Emphasize specific aspects of the exchange: staffing, scheduling and positioning of work team

Ensure affordable options are provided across menu

Strengthen value platforms so affordable menu options remain driving forces of customer interaction
7

Offer more choices at every price tier

Maintain contemporary restaurant design

Continue renovation work on McDonalds restaurants as a follow-up to the more than 1,500 jobs done in 2013

Modern interiors and exteriors are now a facet of nearly 60% of all McDonalds restaurants

Develop environmentally efficient restaurants

Grow business to leverage market opportunities

2013 saw more than 1,400 new restaurants in both established and emerging markets - plan to continue this
trend in 2014

Broaden franchise accessibility

Explore new, geographically diversified restaurant developments

Extend restaurant hours

Improve drive-thru efficiency

Provide more delivery service and dessert kiosks

Concentrating on customer relationships for 2014 with the goal of giving more reasons for customers to choose McDonalds,
and to do so more often

Focusing on: unparalleled convenience, building respect and trust, creating memorable in-store and out-of-store
experiences, and improving customer perceptions of McDonalds food

Has identified U.S., Japan and Germany as being areas with significant market opportunity for growth plans to improve
performance in these regions

Takes a decentralized approach to allow for a grassroots-focused market structure in turn, allows them to implement local
initiatives to better connect with customers

Continuing their re-imaging program into 2014 will update around 300 restaurants

In the process of refining a newly-formed, global digital strategy to improve customer engagement planning to build on
technological investments

Strategy:

Broadening their product portfolio as whole

Focus of a Healthy and more natural element

o Adding salads, fruits and carrot sticks to the menu

Showcasing a natural dinning environment

o Helps reflect the healthy options with their menus

2.1 Product Description

Traditional McDonalds

Breakfast
o Egg McMuffin: English muffin, egg, processed cheese, and Canadian-style bacon (MCD, 2014)

Beef, Chicken and Fish Burgers

o Combos include fries and soft drink
o Option of substitute by request
o Standard Hamburger: Beef patty; regular bun; with condiments (MCD, 2014)
o Premium Burgers: come with a sesame buns on all burgers;
o

Comes with the option of chicken or beef

o Filet-O-Fish: Pollock fish patty, regular bun, with special condiments (MCD, 2014)

10

Salads, Snacks and Sides

o Standard Salad: Romaine and spring mix lettuce; with other salad condiments
o

Dressing options from Rennes: Creamy Caesar, Balsamic Vinaigrette, Ranch, Roasted Creamy Garlic

Chicken McNuggets
o Boneless chicken breast cut into small-size pieces
o

Comes in quantities of four, six, ten; cooked in vegetable oil (MCD, 2014);

Option of dipping sauce: Plum, Hot Mustard, Buffalo, and Honey

Value Pick and Wraps

o Premium McWrap: Grilled or crispy chicken breast; tortilla; and condiments (MCD, 2014)
o Other McWrap variants feature smoked bacon, crispy chicken, cheddar cheese

Desserts, Beverages and Milk Shakes

Happy Meals
o Happy Meals: customizable contents: Hamburger, Cheeseburger, four-piece Chicken McNuggets,
Chicken Snack Wrap, Grilled Cheese sandwich; yogurt or apple slices with caramel dip; beverage
options: fat-free chocolate milk, low-fat white milk or apple juice; includes free toy (e.g., 2014 roster
includes Skylanders and My Little Pony memorabilia) (MCD, 2014)

11

French Fries
o Sizes: Kids, Small, Medium, Large
o Cooked in Canola oil

McCaf:
Hot beverages:

Mocha and Latte

Cappuccino and Americano

Espresso

Deluxe Hot Chocolate

Roast Brewed Coffee

o Made with Arabica beans

Premium Teas

12

Cold beverages:

Real Fruit Smoothies (MCD, 2014)

Iced Latte and Iced Mocha

Premium Roast Brewed Iced Coffee

Coffee Iced Frappe

Vanilla Chai Tea Iced Frappe (MCD, 2014)

13

3. Internal Situation Analysis

3.1 Target Market
Demographic Profile

Males and Females

Primary Target:

o Children: (ages 3-12)

o Teenagers: (13-19)

Parents with two or more Children

Adults (Generally with a 9am 5pm job)

o Young Adults: (20-35)

o Baby Boomers: (50+)
o Seniors: (60+)

Income: Families with low-mid level income

Occupation: Students and working class

Region/geographic: Urban

Potential Target Market

Millennial Generation (aged 14 24)

Young adults who grew up with the brand and have lost touch
14

3.2 Examination of Marketing Mix

Product

Varied menu design:

o Breakfast

Egg McMuffin, Hash Brown, Pancakes

o Premium Burgers and Wraps

Beef, Chicken and fish

o Salads
o Snacks and Sides

Apple slices, cookies, side garden and caser salad, fries

Desserts, Beverages and Milk Shakes

Soft drink

Jus and milk

Tarts, yogurt

Triple thick milk shake

15

o Happy Meals

Hamburger

Cheeseburger

Nuggets

Grill Wraps

Grill Cheese

Price

Combos $
o $7-$10

Premium Burgers and wraps (just the burger or wrap)

o $6-$8

Salads
o $10 - $12

Value Items
o $1 - $3

Miscellaneous food items

o $1 - $6

16

Place

Went through redesign in the late 60s

Recently redesigning the look of their restaurant

o Relax and comfortable place to eat

Certain restaurants run on a 24 hour system

o In certain restaurant only drive thru is open 24 hours
o In certain restaurants its both drive thru and dining room open 24 hours

Some restaurants are partnered with Walmart

o McDonalds are located in all Walmart stores

Currently in 119 countries

o Operating 33,000 restaurants worldwide

Up to 70% of business are conducted at the drive-thru

17

Promotion

Yearly Monopoly game to win prizes

o Between Mid September and end of October

Around 2 to 3 times a year, McDonalds launches their coupons through the mail
o Varies depending on the time of season

2014 winter games, McDonalds had decided to launch, for a limited time only, the 20-Piece McNugget fan pack to help
support the athletes at the games

McCaf trial periods - free coffee; recently a component of a larger marketing campaign

$1 any size cold drinks in the summer (w/ free refills)

o Begins April and ends in September

Angus Beef burger and angus wraps

Cadbury Egg cream McFlury (blend of McDonalds ice cream and Cadbury Egg Cream)
o

Seasonal - Easter time only Cadbury eggs come out

Filet-o-fish

18

4. External Situation Analysis

4.1 Competition
o McDonalds functions within a massive fast food market
o Competitors are watching McDonalds to see how they can react to marketing
o McDonalds currently stands at number one in the fast food market with the largest shares
o Faces competition from other food brands looking to overtake McDonalds share size

Brand
Taco Bell

Product/Price
-

Tacos
Sandwiches
Burritos
Vegetarian and
Healthy options
(Containing fresh
tomatoes and
lettuce)
Medium end
$4 - $9

Position

Communication

Quality food
Currently holds
a promise to
made food
healthier
More mature
demographic

Get With The

Times is newest
campaign slogan,
attacking other
brands breakfast
food
Heavily
promoting
breakfast tacos
Mature audience
Relaxed tones

Package
-

Combination
boxes are
packaged in
cardboard
boxes
(Includes
drink, chips
& product
ordered)

Uses
recyclable
paper to wrap
burritos and
tacos

Market Share
-

58% in
USA
Mexican
QSR

19

A&W

Burger King

Burgers
French fries
Root Beer

Medium end
$5 - $9

Burgers
French fries
Soft drinks
Offers toy with
child menu

Low end
$2 - $8

Promises food is
steroid &
hormone free
Food has no
preservatives
Family
demographic

Promises cagefree chickens

and pork
Food is fully
customizable
Family
demographic

Fun, playful
attitude
Promotes good
food in playful
ways
Audience is
treated maturely

Taste is King
slogan promotes
brand name and
food quality
Food is made to
look epic with
heavily malepromoted
commercials
Arguably
humorous
advertising

Innovative
burger
wrappers to
reduce waste
Recyclable
packaging

Designed to
look like
older
packaging
Has vintage
look to
packages
Recyclable
packaging

58% in
USA
Burger
QSR

Unavailable

20

Subway

Submarine
sandwiches
Breakfast wraps
Soup
Chips & cookies
Soft Drinks
Coffee until 11am

Medium end
$3 - 11

Fully
customizable
food
Bread is cooked
fresh every day
Vegetables are
promised to be
fresh

Pairs with
celebrities, brands
and entertainment
businesses to
promote food
Both fun and
mature air
Commercials
targeted to
children are not
condescending

Sandwiches
wrapped in
compostable
paper
Simple
packagingwhite and
green cups
and wrappers

Unavailable

Competitors Promotional Tools

Burger King:
o

Standard Hamburger: Fire-grilled beef patty; toasted sesame seed bun; with condiments

Whopper Sandwiches (option - Double, Triple, Angry, Jr., Double Jr.): Fire-grilled beef patty; sesame seed bun;

BK Big Fish: Premium Alaskan Pollock fish patty; bakery-style bun;

Original Chicken: Lightly breaded chicken patty; sesame seed bun;

BK Veggie Burger: Fire-grilled soya patty; toasted sesame seed bun (Heavyweights, 2008)

French Fries: thick-cut fried potatoes

Size: Small, Medium, Large;

21

Chicken Fingers: home-style breading chicken breast with;

Comes in quantities of four, six, 10 (option of dipping sauce: Zesty, Barbeque, Buffalo Style, Sweet and Sour,
Honey Mustard

BK Kids Meals: Hamburger, Cheeseburger, four- or six-piece Chicken Nuggets; sides: garden salad, fries or apple
sauce

Subway:
o

Customizable, build-your-own sub format; made in front of customers

Standard breads: 5 types of bread options (Nine-grain, Italian, herbs and cheese, flatbread, nine-grain honey oat)

Condiments: cheeses: American, Monterey, Mozzarella

Vegetables: Lettuce, tomatoes, cucumbers, peppers, red onions, pickles, olives

Standard sauces: Variety of Sauce options

Subway Club: Turkey breast, roast beef and black forest ham; choice of fresh vegetables

Foot long and 6 Subs: Multiple varieties including Cold Cut Combo; Sweet Onion Chicken Teriyaki (teriyaki-glazed
chicken strips; and Italian B.M.T. (Genoa salami, spicy peperoni, black forest ham)

Breakfast Sandwiches: Consist of eggs, cheese, and options of meat offered on your choice of bread.

Kids Meal: Medium-sized, six-inch Mini Subs; with the option of meat, veggies and bread; includes apple slices and
low-fat milk

22

Taco Bell:
o

Beef Tacos: Seasoned ground beef topped with optional toppings wrapped in corn shell (Hard Taco) or soft tortilla
(Soft Taco)

Chicken Soft Taco: (grilled chicken breast strips; wrapped in soft tortilla)

Beef Burrito: (ground beef topped with nacho cheese sauce; wrapped in soft tortilla)

Cheese Quesadilla: Melted 3 cheese blend inside toasted tortilla

French Fries: featured in paper bag; Cheesy variety adds nacho cheese sauce inside container; Chilli Cheese variety
adds beef chilli and nacho cheese sauce inside container

Build Your Own Box Combo: Two tacos or burritos; with option of one side, one dessert or one soft drink

Small Burgers:

A&W:

Baby Burger: Small beef patty- with condiment options

Mama Burger: Regular beef patty on a sesame seed bun with condiments (Domik, 2013)

Teen Burger: Regular beef patty on a sesame seed bun with condiments

Large Burgers:

Papa Burger: Two regular beef patties on a sesame seed bun with condiments

23

Grandpa Burger: Three regular beef patties on a sesame seed bun with condiments
Uncle Burger: Large beef patty; A&W seasoning (spices, garlic powder, onion powder); onion slice, teen
sauce, mayonnaise, ketchup, lettuce, tomato, mustard, pickles; sesame seed bun

Specialty Burgers:

Veggie Deluxe: (Veggie patty) on a wheat bun with condiments

Chubby Chicken: Boneless and skinless chicken breast breaded on a sesame seed bun with condiments

Chicken Grill Deluxe: Boneless and skinless chicken breast breaded on a wheat bun with condiments

Bacon N Egger: egg; processed cheese; hickory-roasted bacon; on a sesame seed bun;

French Fries: Thick-cut potatoes, deep-fried, served with the option of gravy or ketchup

24

4.2 PESTLE Analysis

Political

Government laws affecting McDonalds would be food management and animal processing

McDonalds needs to acquire a FDA certificate (U.S. Food, Beverage and Dietary Supplement)

Needs to clear all checks for bioterrorism

Clear farms of animal cruelty and push that proper animal hygiene

Taxes to be applied to both animal meat and to the final food products (determined by checking current stocks)

Changes at Heinz have prompted McDonalds to end their relationship with them as primary ketchup suppliers

Workers rallying for higher wages

Quebec laws impact food marketing to children (relevant for new campaigns McDonalds plans to undertake)

Economic

Surging food prices have begun to show

Essential foods such as chicken and beef have all suffered a five percent increase in price

Spells trouble for McDonalds, whose main products contain chicken and beef

Prices are also higher for vegetables, fruit, sugar and milk

Coffee is also rising seventy percent in price

25

Pigs are currently facing concerns from new diseases and increases in price by forty two percent

Inflations can cause a market crash or riots

Prolonged challenging economic environment is staged to pressure brand results in the coming year as it did in the preceding
term

Social

McDonalds has over thirty five thousand stores worldwide

Individual stores can however suffer from societal factors

Food store popularity depends on where you put it the store

A store in a safe neighborhood will flourish under many different age ranges

Age ranges will eventually decrease as young adults begin to move away and children move houses or elderly pass away

Store could be either forced to close and relocate or change to accommodate new factors

Lifestyle changes by customers can positively or negatively affect the store and business

Keeping good customer relation is key to keeping most customers coming despite negative press (such as a scandal, price
inflation or market crash.)

Competitors moving towards low-sodium options and reducing salt content; plans to reduce sodium across U.S. menus by
2015

26

Does the market now demand even more reduced traces of salt? McDonalds has already responded in the past but may need to
take further action should these consumer needs be more widespread.

Experimenting with mobile payments and digital ordering methods

Some calling for 24-hour breakfast options

Social trend towards snacking and food truck movement

Wendys has dropped out from growing their presence in the breakfast market for the time being

U.S. consumers become increasingly cautious in their purchasing decisions around holiday season

Muted spending habits and lower brand confidence in Europe

Taco Bell pursuing aggressive and disruptive advertising campaigns that encroach on the corner of the market that
McDonalds controls

Kraft removes additive (azodicarbonamide) from Kraft Singles - same additive used by McDonalds in some products

Slower market reception to higher-priced fast food/premium offerings, as in the Angus Burger

Convenience stores stocking up on ready-made breakfast offerings to divert traffic to fast-food establishments

27

Technological

McDonalds uses a Garland brand Xpress Grill

Grill has the ability to do double-sided cooking with temperature control

Grill will cost nearly $25, 000

THERMADOR grills would be a replacement option to consider if the Garland Xpress becomes unavailable

Legal

Food establishments must strictly abide by Health and Safety Acts within each state/ country/ territory they reside in

Work-related injuries or fatalities need to be reduced

The Canadian Human Rights Act protects employees from any form of harassment within the workplace

The Canadian Human Rights Act assists in helping those who have a valid complaint against an employer

Environmental

Mainly affect vegetable growth for consumers

Conditions too hot or too cold can stunt the proper growth of season-sensitive products

Animals will also need to be monitored in extreme heat or cold conditions.

Rising wholesale prices on chicken; chicken wings as a commodity

Rising beef costs

U.S. stores greatly impacted by severe weather conditions over the last five years

Slower growth in Europe and Asia markets

28

4.3 Consumer Analysis

Market Size:

Massive market size: In 2010, marketers had a budget of $4.8 Billion. In 2011, the budget was $6.5 Billion.

Budgets for marketing expected to rise in $2 Billion trend every two years

Consumer Characteristics:

Customers aged 2 years 65+

Characterized by all walks of life (rich, poor; doctors, teachers & repair men/women; male & female)

Consumer Motivations:

Heavily motivated by hunger

Satisfies the need for food

Motivated by a need or addiction to food within the business

Brand loyalty plays a major role

29

Anticipated Behavior Changes:

Pros:

Increasing market for Fast Food draws in more customers

Childrens meals are bringing in larger markets (attraction to toys and tasty food)

Brand loyalty is attaching to more customers as loyalists spread word of mouth

Cons:

Fast Food is widely seen as something that cannot evolve past greasy, unhealthy food

Food prices are surging by 40% in some products

Behavioral Segmentation: (Consumers knowledge, attitudes, uses and response to products)

McDonalds continues to responds well to fast service grab and go with quality

Consumers no matter where they are to respond when they see the iconic logo
30

Consumers are choosing healthier alternatives when eating at McDonalds

Consumers are responding to McDonalds campaign Get Answers positively

Kids responds to McDonalds advertising seen on TV showcasing their Happy Meals promotional toys

Parents looks for McDonald restaurants that cater to parents and children by having a Play Zone

Yearly promotions attract consumer to consume more their products:

Monopoly Game

$1 drinks on all size cups during the summer

Coupons

Consumers respond well according to how McDonalds caters food based on cultural customs.

Ex. Muslim diet laws

31

4.4 Positioning
As a competitive advantage for McDonalds it would be a combination of both attribute positioning product and benefit positioning.

Product never changes

o Consistency

It fulfils consumers needs

o The variety on their menu

The logo is a symbolic icon in the fast food industry

o Seen in 119 countries
o Sponsor in the Olympic Games

Creates excitement for kids

o Free toys in each Happy Meal

32

Key Features

Premium Burgers:

Larger burger

Come in a box

Offered at a higher price with a combo

Salads:

Come in a black container

Is offered with or without chicken

Offered at a higher price like a Premium Burger

Value Items:

Their small portion size

Presented in a wax paper

Its offered at a cheaper price

Happy Meals:

Comes in a box

33

Presented with healthy side choices

Beverage option: milk, jus or soft drinks

Benefit Positioning
Tangible:

Grab and- go

Quick Service

Affordability

Compact (Box packaging)

Novelty

Happy Meal toys

New product introductions

Combo meals

34

Intangible:

Products arent made in the same way

o Myth of pink sludge chicken nuggets was debunked in 2014 by McDonalds

Quality of products are better

Consistency

Feeding people without thought

35

5. SWOT Analysis
Strengths:

Largest fast food market share in the world

with more than 33000 restaurants
worldwide
It targets very young children through
offering playgrounds, toys with meals and
advertisements
McDonalds recent Our food. Your
question. campaign the company is
willing to respond to any question to clarify
all the negative myths
There not many fast food restaurant that
still provide a playground for kids

Opportunities:

Loyalty programs
Greater meal customization
o (See: build-your-own-burger
experiment)
Allow breakfast options to be purchased at
any point in the day (or into the afternoon)
Increasing demand for healthier food
McDonalds food truck?
Possibility of vegetables being added to
Happy Meals
Vegetarian option with burgers

Weaknesses:

McDonalds is heavily criticized for offering

unhealthy food by the public
McDonalds is no longer able to differentiate
itself from other fast food chains like the
Burger Kings Big King burger, which is
similar to the Big Mac but .8 ounce more beef
Unhealthy food menu

Threats:

Convenience stores
Local fast food restaurant chains with menu
that represents local taste and have lower meal
prices
Trends toward healthy eating because of
obesity
Multiple companies exploring coffee,
including Burger King with $0.25 small coffee
Companies are creating similar menu ideas as
McDonalds
o Ex. Value menu

36

- Part Two: Overall Integrated Marketing Communications -

IMC Message:
1. To generate renewed enthusiasm for McDonalds as a more health-conscious, responsive brand poised for unprecedented
growth.
2. To incite lapsed customers to return through engaging initiatives that reflect changing company culture and harken back to
traditional values and marketing tactics.

IMC Goals can be summarized by the acronym, BIG MAC:

BUILD increased trust in the brand by improving relationships with customers

IMPROVE brand image by leveraging healthier menu options, company heritage and contemporary store design, making
customers feel comfortable about eating at McDonalds

GROW current market position by drawing in lapsed customers with revisited and strengthened brand values

MITIGATE the influence of competitors in opportunity markets with counter measures

ADVANCE reach and company sustainability by penetrating new and emerging markets

CREATE environments where customization, loyalty and personalized experiences become all-important values

37

Objectives:
1. Foster increased customer lifetime value among children ages 3 - 12 by end of December 2016.
2. Renew appreciation for brand among lapsed customers with 20% sales increase by December 2015.
3. Introduce new programs to increase awareness of healthy choices at McDonalds and improve sales by 30% by December
2015.
4. Secure footing in new product markets and achieve a 5% market share in each by end of January 2015.
5. Boost sales among millennials aged 14 - 24 by 20% by December 2015.

38

Objective 1: Foster increased customer lifetime value among children ages 3 - 12 by end of December 2016.

Strategy: Improve the quality of McDonalds playrooms to have interactive and educational elements.

Rationale:

Children need brain stimulation in order to have increased brain capacity (which therefore makes them smarter)

Education about food in a playroom setting is intended to make children excited about learning

Franchises child-focused arm is built on novelty and fun

A way of reaching parents who may be skeptical about the franchise or the atmosphere of restaurants

Tactics:

Digital screens to simulate preparation of food

Digital screens providing basic education on the human body and the importance of healthy eating

Repair playgrounds to put in more interactive and food-related activities

39

Burger-themed pinball machine (navigate balls into designated slots to progressively make meal items)

Partner with Namco to make a McDonalds-themed Pac-Man game

o

Programs to teach older or less privileged children how to construct healthy meals at home
o

Instead of fruit, have Pac-Man eat Hamburgers, Chicken McNuggets and other menu items

Programs can be used to also show how McDonalds deals in healthy choices

Repair and refurbish playrooms for new activities

o

Activity period where children are quizzed on healthy choices

Children will receive a coupon for free 6-Piece Chicken Nuggets for answering correctly

Insert a chalk wall for children to draw on between activity periods to encourage sharing and cooperation

Evaluation:

Feedback surveys from children and parents

Daily reports on playroom activity through digital counters (e.g., on screens)

Turnstile counters

Internal data from arcade machine that clocks user play time and high-scores

Activity counselors to note the number of children attending each activity period

40

Progress updates every fiscal quarter

Budget:

Partnership with Namco Bandai

Playroom construction and renovations

Digital applications

Arcade cabinet with McDonalds-themed branding

Pinball machine

Programming

Chalk wall and supplies

Hire activity counselors / playroom supervisors

41

Objective 2: Renew appreciation for brand among lapsed customers with 20% sales increase by December 2015.

Strategy: Improve drive-thru efficiency and return to franchise roots, leveraging nostalgia and company heritage.

Rationale:

Company wants to employ brand-wide digital strategies to increase market share and customer engagement

60% or more of business is conducted at the drive-thru

Many customer complaints have to do with slow service at the drive-thru

Lapsed customers at one time associated brand image with positive qualities connected to their branding and value platforms

Tactics:

Bring back McDonalds old McValue Menu: special pricing on select menu items on certain days for daily low prices
o

Monday - McFlurry (seems off compared to everything else)

Tuesday - Big Mac

Wednesday - McChicken

42

Thursday - Two Cheeseburgers

Friday - Filet-O-Fish

Saturday - Double Quarter Pounder

Sunday - Chicken McNuggets (6 pieces)

Resurrect classic mascots

Create a brand new loyalty program where customers collect digital Golden Arches in a Smartphone App or on a points card
o

$1 = 10 points

One Golden Arch is equal to 10 points

1000 Points earns one free meal size upgrade

Limited-edition figurines of mascots as a preliminary incentive to attract lapsed customers who miss the old
McDonalds

Add outdoor signage along walls leading up to drive-thru windows

Create a second window for drive-thru

Create more machines by the drive-thru to cut down wait time by as much as 30 seconds

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Evaluation:

Metrics connected to the app and points card usage

Weekly reports by management teams

Customer satisfaction surveys on receipts

Progress updates every fiscal quarter

Budget:

R&D for loyalty program: points card, smartphone app

Outdoor signage

Figurine design and production

New-store window installments

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Objective 3: Introduce new programs to increase awareness of healthy choices at McDonalds and improve sales by 30% by
December 2015.

Strategy: Push for greater transparency across business operations and encourage healthy eating through trials and experiments.

Rationale:

Apple slices in Happy Meals are not seen as a good-enough supplement for fruit/ vegetables in meals

Children encouraged to opt for healthier menu items when they are paired with incentives (i.e., toys)

Franchise needs to adopt a more health-conscious image to survive against competitive focuses on fresh options

Changing consumer demands are prompting sodium-reduced menu options

A predictable image follows the companys affairs; seen as being relatively unresponsive and callous to marketplace changes

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Tactics:

Add vegetables to Happy Meals in the form of diced carrots and celery sticks

Launch a pilot program in India as an emerging market that would be receptive to vegetable options in Happy Meals

Employ advertising methods through posters and social media to connect with audience on their response to the franchises
revised health focus: engage with consumers by asking them how theyd redefine Happy Meals for a healthier image

Connect with Mens Health and Todays Parent magazines for cover/feature stories in their respective publications so as to
connect with health-conscious men and busy mothers

Opt for more open work stations (by repositioning equipment layouts) that allow customers to see more closely how their food
is being prepared

Continue the build-your-own-burger experiment and leverage healthy ingredients/toppings

Add buffet-style carts or small bars separate from the counter in connection with the build-your-own-burger option: toppings
include kale

46

Evaluation:

Vegetables will be monitored for quality to ensure positive image

Inventory for buffet carts

Readership of Mens Health and Todays Parent magazine

Social media metrics

Pilot program in India

Progress updates every fiscal quarter

Budget:

Magazine spreads

Buffet carts with custom signage

Arrange supplier for vegetables

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Objective 4: Secure footing in new product markets and achieve a 5% market share in each by end of January 2015.

Strategy: Explore three new market opportunities frozen goods, food trucks and packaged desserts.

Rationale:
Why Frozen Goods?

Some products lend themselves to alternative distribution methods, with existing success providing a window for
diversification

Tim Hortons recently took away Cold Stone Creamery products from its menu to refocus on coffee; Cold Stone still has plans
of dominating the Canadian ice cream market but must deal with this setback of a lost partnership (Shaw, 2014)

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Why Food Trucks?

Food trucks are growing in popularity and becoming a hot trend in the food business for 2014

Other competitors, such as Taco Bell and Wendys, have already experimented with the idea of having a food truck linked to
their franchise gives McDonalds an opportunity to enter while the competition remains undecided and lead in the category

Can be used to reach centralized areas where current and previous customers gather

As per social trends, traditional eating schedules are being replaced with smaller meals and snacks functioning as meals

McDonalds already has a foot in small-portion snacking with Spicy Chicken McBites; emphasis can be placed on portability,
which some existing menu items have as a benefit (MCD, 2014)

Why Packaged Desserts?

McDonalds is already preparing to sell packaged coffee in grocery stores now would be a good opportunity for other nonmenu items with shelf life to penetrate the grocery market

Tim Hortons currently leading with its brand of blends for home use, making for considerable competition when McDonalds
enters with their own coffee having packaged desserts alongside these efforts will help counterbalance and close the gap
between the two

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Tactics:
Frozen Goods

Recreate and tweak McFlurry and Vanilla Cone formulas for a small line of ice cream tubs to occupy the same space as
Chapmans, Breyers and store-brand alternatives (e.g., Presidents Choice)

Impose limits on how many products will be made available in stores and when

Core offerings, such as the Big Mac, must remain central to the business and not be extended into other marketplaces for fear
of distancing their audience key reasons for consumers to visit establishments must remain intact

Launch products in June 2014 with campaign running separately from Dollar Drink Days (begins April or May) but still
embodying the same idea as being a celebration of summers arrival (or warm weather)

Space out the launch of new products so as not to have a repeat of 2013s events with multiple product launches in a short time
frame

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Food Trucks

Have two brands of food trucks: one type specifically design for downtown squares; the other for fairs, playgrounds and
amusement parks

Product roster is limited and streamlined (e.g., no combo deals) so as not to divert from in-store promotions and offerings:
Quarter Pounder, Hamburger, Cheeseburger, McChicken, Chicken McNuggets, Fries, Vanilla Cone, McFlurry

Portable foods take priority

Avoid foods that are considered premium, messy to eat (McWraps), or heavy/sit-down offerings (Big Mac)

Beginning with five to twenty as an experiment

Bring food trucks out beginning July, coordinate with hotspots like Canadas Wonderland

Initial run will involve five to twenty trucks as a test

Street team positioned within 1-2km of food trucks, handing out free balloons to kids (red with Golden Arches) and coupons
for a free drink (with meal purchase)

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Packaged Desserts

Offer baked apple pie in a larger format to be stocked in Highland Farms, Sobeys and other grocery stores with a range of
store-bought baked goods

Offer take-home versions of seasonal-themed products, such as pumpkin pie, at grocery stores as a limited-time promotion

Modest packaging that relies on brand association above colour choices not trying to separate itself from gourmet options

Evaluation:

Campaign numbers

Social media

Product / food sales

Market research on competitors

Feedback from street team

Fair / park admissions

Progress updates every fiscal quarter

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Budget:
Frozen Goods

New packaging: printing and containers

Advertising costs

Food Trucks

Banners and other signage

Printed T-shirts for street team

Custom balloons

Printer ink for coupons

Hire eight employees per location: 4 food truck vendors, 4 street team employees

Food truck

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Packaged Desserts

New assembly line/production wing

Ingredients for tweaked recipe

Minor in-store promotion costs (e.g., signage)

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Objective 5: Boost sales among millennials aged 14 - 24 by 20% by December 2015.

Strategy: Introduce a new brand of Happy Meals specific to the millennial crowd and continue pushing for a modern store feel.

Rationale:

Unconventional offerings at Taco Bell like the Waffle Taco are attractive to millennials

Millennials drawn in by the idea of a memorable dining experience; a place to hangout, rather than just a station to grab food
and leave

Options like the McWrap appeal to a younger demographic interested in fresher menu choices, which should come available in
packaged formats

55

Tactics:

Introduce new packaging to distinguish from standard Happy Meals and to evoke a more hip image

Food options will include Quarter Pounder, McChicken or 10-piece Chicken McNuggets; and for sides, brand-new poutine and
onion rings

Menu will also resurrect the Angus Burger in McWrap format; previously had trouble standing on its own as a premium
offering against value menu deals, but being featured in a Happy Meal for the millennial crowd and as a fresh alternative will
help strengthen value platforms

Meals include more mature collectibles such as action figures

Begin with a September launch once the school season resumes

Continue design renovations across existing McDonalds establishments for a more welcoming and lounge-like atmosphere

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Evaluation:

QR Codes on packaging

Food sales

Customer satisfaction surveys

Weekly reports by management on customer behaviors

Progress updates every fiscal quarter

Budget:

Packaging costs

Company partnerships for collectibles

Collectibles

Interior design renovations

57

Recommendation and Net Benefits:

Renew appreciation for brand among lapsed customers

o

Gain new vegetarian customers that are willing to pay more for food that they can eat

Introduce new, healthy choices programs at McDonalds

o

Gain trust of parents to bring their kids

Increases customer lifetime value among children ages 3 - 12

Increase awareness of the company changing to a healthier place for customers

Connect with Mens Health and Todays Parent Magazine to spread word more broadly

Boost sales among millennials aged 14 - 24

o

Improve company image

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AdAge. (2013). Meet Americas 25 Biggest Advertisers. Advertising Age. Web.
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Domik, Ken. (2013). A&W Teen Burger Combo Taste Test & Review. YouTube. Web.
Dreibus, Tony; Josephs, Leslie; Jargon, Julie. (2014). Food Prices Surge as Drought Exacts a High Toll on Crops. The Wall Street
Journal. Web.
Durden, Tyler. (2014). Beef Prices Surge Most In A Decade As Food Inflation Soars. Zero Hedge. Web.
Farfan, Barbara. (n.d.) Company Mission Statements - Complete List of Worlds Largest Retail Missions. Retail Industry- About.com.
Web.
Freeman, Hadley. (2008). McCouture: Bruce Oldfield revamps Big Mac outfits. The Guardian. Web.
Heavyweights. (2008). Big Burger Business: McDonalds and Burger King. Food Network. Television Program.

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MCD. (2014). Meal Bundles: Happy Meals. Food McDonalds. Web.

MCD. (2014). Our Company: Mission & Values. About McDonalds. Web.
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MCD. (2014). Product & Nutrition. Food McDonalds. Web.
Morrison, Maureen. (2012). Is McDonalds Losing That Lovin Feeling?. Ad Age. Web.
Nutrition. (2012). Nutritional Facts. A&W Food Services of Canada. Web.
SaW Ontario. (2014). Health and Safety. Ontario Ministry of Labour. Web.
Shaw, Hollie. (2014). Tim Hortons pulls plug on ice cream sales at Canadian stores in move to simplify menu. Financial Post:
Business. Web.
Smith, Andrew. (2006). Encyclopedia of Junk Food and Fast Food. Print.
Subway FAQ. (2009). Official Subway Restaurants FAQ. Subway Website. Web.
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Subway. (2014). Subway Restaurant Website. Web.

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