MC Donald's E-marketing Strategies
McDonald's Success in e-Marketing Strategies
McDonald's is a corporation of the world's largest or longest chain of hamburger fast-food restaurants. The company serves up to approximately seventy million customers each day. The corporation owns over 34,000 restaurants in about 119 nations across the globe. The company traces its foundation back in 1940 within the United States by two brothers-Richard and Maurice McDonald. It began as a barbecue restaurant, and in 1948, Richard and Maurice McDonald recognized their business as a hamburger through the production line principles (Mark, 2009, pp. 37). Later in 1955, a businessman-Ray Kroc joined the business and begun franchising restaurants, as well as improving the company's return on capital. Subsequently, he purchased the food chain from McDonald brothers, thereby, overseeing its worldwide progression. Currently, the McDonald's is run either through an affiliate, a franchisee or by the corporation itself. The corporation accrues it revenues through royalties, rents, and/or fees from the franchisees, alongside sales generated from the company's operated restaurants (Mark, 2009, pp. 44). For instance, in the year 2012, the company accrued grand annual revenues of $27.4 billion, and a profit of about $5.5 billion. Primarily, McDonald's sells cheeseburgers, hamburgers, French fries, chicken, milkshakes, breakfast items, desserts and soft drinks. In response to the world's changing competition and consumer tastes, the corporation undertakes various marketing strategies, including both online (e-marketing) and offline marketing. Moreover, in order to cover a wide market and a wide range of customers' tastes, McDonalds extended its menu to comprise fish, salads, smoothies, wraps, and more fruits (Mark, 2009, pp. 39). This paper will capitalize on the company's e-marketing strategies, and take a narrow dimension and scrutiny on its marketing successes.
McDonalds brand promise begins even before their customers enter their restaurants, through advertisements and marketing, which are worthy, truthful and tasteful as one of the globally well-known brands for retail. McDonalds' golden arches code (policies and standards) contains useful information on the chain's commitment to their mode of communication. This is through marketing and advertisements, as well as trademark standards and legal policies. According to Mark (2009, pp. 43), the corporation earns its revenues as a franchiser of restaurants, an operator of restaurants, as well as an investor in properties. Approximately 16% of McDonald's restaurants are under the direct ownership and operation by the McDonalds Corporation. The remaining 84% are run by other operators through an assortment of joint ventures and franchise agreements. The business model of McDonald's Corporation slightly differs from a number of related fast food chains across the globe (Schmitt, 2013, pp. 11). Besides the ordinary franchise and marketing fees (calculated as a percentage of sales), the McDonald's Corporation may similarly collect rent, which is also calculated on the basis of the company's total sales. As a condition for several franchise agreements, varying from location, country, contract, and age, the Corporation may lease or own the business properties upon which McDonalds' franchises are located. In most case, if not all, the franchisees do not own the restaurants' location.
McDonald's business model is portrayed by a "three-legged stool" comprising the company's employees, suppliers, and operators/owners as its principle foundation (Schmitt, 2013, pp. 18). The corporation balances its interests among these three groups, essentially for its success. Currently, the company encompasses over 1.85 million employees, and approximately 5000 franchisees. The company's strength and alignment, with regards to its employees, suppliers, and franchisees has been the only key to its success. This is because its business model enables it to be consistent in locally delivering the relevant restaurant experiences for customers. This action makes it emerge as an integral part of the enclosed communities through its services (Schmitt, 2013, pp. 15). Furthermore, it facilitates its capability in identifying, implementing, and scaling the innovative ideas, which can meet the changing preferences and needs of the customers.
The Ireland and United Kingdom business models differ from that found in the United States. Fewer than 30% of the restaurants are under franchise, majority being under the company's ownership (Schmitt, 2013, pp. 20). Commendably, McDonalds offers training to its franchisees, as well as other interested parties at Hamburger University in Oak Brook- Illinois. In the remaining 116 countries, the operations of McDonald's restaurants are undertaken via joint ventures of the corporation, local entities, as well as governments. Regarding the corporation's policies, McDonald's do not undertake direct sales food and/or materials to the franchisees. Instead, it organizes the supply of food and related materials to the restaurants via logistics of the third party operators. Media and statistical reports reveal that McDonald's...
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