McDonald’s Case Study: Remaining Relevant in a Health Conscious Society

Date: January 3, 2012
Pages: 20
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US$ 495.00
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Publisher: MarketLine
Report type: Strategic Report
Delivery: E-mail Delivery (PDF)
ID: M38E4E1FA5BEN
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McDonald’s Case Study: Remaining Relevant in a Health Conscious Society
Introduction

McDonald’s has been able to successfully increase revenues and profits in recent years in spite of much negative publicity and an increasingly health conscious public. This case study shows how the company has achieved these goals in a difficult trading environment.

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Highlights

McDonald’s has, to a great extent, defied recent difficult economic conditions and continued to experience strong sales and profit growth in recent years, as it has been able to attract diners with an improved and expanded product range while remaining competitive on price.

McDonald’s has been the target of much criticism in recent years. The company responded to this criticism by introducing healthier menu choices, adjusting portion sizes, and reducing salt and sugar content. It has also expanded its product range in an attempt to attract a new type of customer.

McDonald’s utilizes a highly visible and innovative marketing campaign to push its offering to consumers so that they are always aware of what is on offer in its restaurants. Its marketing and publicity efforts have made it one of the world’s most valuable brands.

Your key questions answered
  • How has McDonald's increased revenues and profits in recent years in the face of heavy criticism and an increasingly health conscious public?
  • What is McDonald's operational structure?
  • How does McDonald's implement several marketing strategies to maximize sales?
OVERVIEW

Catalyst
Summary

ANALYSIS

McDonald’s continues to perform well in the face of challenges
McDonald’s has come under intense scrutiny in recent years
  The 2004 documentary film Super Size Me brought McDonald’s under the spotlight
  McDonald’s reacted in a number of ways to the criticism generated by the film
  The most noticeable change has been a move towards healthier menu items
  Happy Meals have been afforded particular attention
  McDonald’s has also expanded its menu to improve choice for customers
  Expansion has been a feature of McDonald’s evolution
McDonald’s utilizes a highly visible marketing campaign to push its offering to consumers
  The company is known for its innovative marketing strategies
  The McDonald’s brand and its famous golden arches have become ubiquitous
  McDonald’s has embarked on an ambitious program of restaurant reimaging
  The McCafe format is an attempt to attract a different demographic
McDonald’s balanced business model of franchised and company-operated restaurants is key to its ongoing success
  The company is primarily a franchisor
  Company-operated outlets are the key revenue driver
  Global presence means that the company’s risk is not geographically concentrated
  The McDonald’s empire sits atop the ‘three-legged stool’

CONCLUSIONS

Through a combination of expanded product ranges, intense marketing efforts and operational efficacy McDonald’s has been able to defy the critics and tough economic decisions

APPENDIX

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