Mc Donald Case Study

Camille Gabriel
Rafael Sabale
Bernadette Torres
I. Time Context

21st Century – They started started to suffer

decreasing profitability
II.Viewpoint:

Charles H. Bell –
President and
COO
III. Central Problem

Decreasing Profitability at the start of the 21st

Century
IV. Statement of Objective

Must: To increase profitability of Mc Donalds

Want: To be the best quick service restaurant globally.

V. Areas of Consideration

Threats: 1. Growing trend for a healthy lifestyle among consumers.

2. Aggressive Competition in the industry

Opportunities: 1. Convergence of Consumer needs.

2. Consumers are in need of instant things
V. Areas of Consideration

Weaknesses:
1. The yellow and red Garbed clown is no longer
effective in attracting customers.
2. Unhealthy food image

Strengths:
1. With Own quality Centers at strategic locations
2. Moderate Market Diversification.
3. Mc Donald applies some variations in its marketing mix
to suit the condition of local or regional market.
4. Strong Brand Image and reputation
VI. Alternative Course of Action

ACA I
Introduce new menu for health conscious consumer

Advantages : Could cater to the evolving consumer needs

Disadvantages: Will need to have an effective Supplier

Management and Inventory monitoring control especially for the
supply of fresh fruits and vegetables
VI. Alternative Course of Action

ACA II
Co-Branding with other companies as part of marketing
strategy

Advantages: Relatively lower investments needed and more

personal advertising method.

Disadvantages: Might not exclude a significant effect in profit.

VI. Alternative Course of Action

ACA III
Heavily invest in marketing by employing celebrities to
promote the product.

Advantages: If effectively implemented, it could imprint to the

minds of consumer for a long period of time.

Disadvantages: High Cost of advertising and employing

celebrities who are known globally.
VII. Recommendation

ACA I
 VIII. Detailed Plan of Action

Activities Department Timeline

Studying current consumer trends, includes Research and Development Week 1- Week 6
studying which countries are into healthy lifestyle

Formulating a new menu and testing out of the Research and Development Week 3-12
food in small group / in one country
Product Promotion thru Social Media/T.V. Marketing Week 10-Onwards
Advertisements.
Initial Implementation Operations Week 12
Studying of Initial feedback from the consumer if Marketing Week 12-Week 16
this shall be continued or not.

Evaluating the feedback to come up on ways to Marketing and Research and Week 14-20
improve the process/food to suit target markets Development
taste.
Making adjustments to the menu if needed. Research and Development Week 16- Week 24