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.
Features and benefits
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
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.
Features and benefits
- MarketLine Case Studies describe topics such as innovative products, business models, and significant company acquisitions.
- Fact-based and presented in an accessible style, they explain the rationale of commercial designs and illustrate wider market and economic trends.
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
Sources
Further Reading
Ask the analyst
About MarketLine
Disclaimer
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
Sources
Further Reading
Ask the analyst
About MarketLine
Disclaimer
