MARKETING MANAGEMENT

CASE STUDY REPORT ON MCDONALDS

PRESESNTED TO: MR. RIAZ KHAN
PRESENTED BY: NEELAM KARIM
INSTITUTE OF BUSINESS MANAGEMENT

STUDENT ID: 11483
SECTION: D
DAYS: TUESDAY/THURSDAY
TIMINGS: 9:00 to 10:30
MARKETING MANAGEMENT

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CONTENTS

INTRODUCTION ................................................................................................... 2
HISTORY .............................................................................................................. 3
ALLEGATIONS ...................................................................................................... 4
OBESITY ............................................................................................................... 5
THE ISSUE FACED BY MCDONALD ........................................................................ 5
SOLUTIONS .......................................................................................................... 6
MARKET RESEARCH ...................................................................................................... 6
NUTRITIONAL CHANGES ................................................................................................ 6
INCENTIVES AND ADVERTISING..................................................................................... 7












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INTRODUCTION
McDonald's Corporation is the world's largest chain of hamburger fast food restaurants,
serving around 64 million customers daily in 119 countries. McDonald's operates over 31,000
restaurants worldwide, employing more than 1.5 million people. The company also operates
other
restaurant bran
ds, such as Piles
Caf.
Most
standalone
McDonald's
restaurants
offer
both counter
service and driv
e-
through service,
with indoor and
sometimes
outdoor
seating.



McDonald's is famous for its playgrounds, redesign, kids meals and happy meals.



Industry Restaurants
Headquarters Oak Brook, Illinois, U.S.
Number of
locations
33,000+ worldwide
[1]

Area served Worldwide
Products Fast food
(hamburgers chicken French fries soft
drinks coffee milkshakes salads desserts breakfast)
Revenue US$ 24.075 billion (2010)
Net income US$ 4.949 billion (2010)
Employees 400,000 (January 2010)
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HISTORY

The business began in 1940, with a restaurant opened by
brothers Richard and Maurice McDonald in San Bernardino,
California. Their introduction of the "Speedee Service System"
in 1948 furthered the principles of the modern fast-food
restaurant that the White Castle hamburger chain had already
put into practice more than two decades earlier.
The original mascot of McDonald's was a man with a chef's hat
on top of a hamburger shaped head whose name was
"Speedee." Speedee was eventually replaced with Ronald
McDonald by 1967 when the company first filed a U.S.
trademark on a clown shaped man having puffed out costume legs.


The overlapping double arched "M" symbol logo was
temporarily disfavored by September 6, 1962, when a
trademark was filed for a single arch, shaped over many of the
early McDonald's restaurants in the early years.


With the expansion of McDonald's into many international markets, the company has
become a symbol of globalization and the spread of the American way of life. Its prominence
has also made it a frequent topic of public debates about obesity, corporate ethics and
consumer responsibility.



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ALLEGATIONS

The director of the obesity program for the Childrens hospital, Boston, David Ludwig, claims
that fast food consumption has been shown to increase calorie intake, promote weight gain
and elevate risk for diabetes.
McDonalds foe told the Huffington Post: Instead of doing the right thing, McDonald's is
avoiding limiting its marketing to kids or improving the nutritional quality of their unhealthy
food by selling toys separately for an additional 10 cents while still requiring purchase of a
Happy Meal to get the toy.
In 2001, Eric Schlosser's book Fast Food Nation included criticism of
the business practices of McDonald's. Among the critiques were
allegations that McDonald's (along with other companies within the
fast food industry) uses its political influence to increase its profits
at the expense of people's health and the social conditions of its
workers. The book also brought into question McDonald's
advertisement techniques in which it targets children. While the
book did mention other fast-food chains, it focused primarily on
McDonald's.
McDonald's is the world's largest distributor of toys, which it includes with kids meals. It has
been alleged that the use of popular toys encourages children to eat more McDonald's food,
thereby contributing to many children's health problems, including a rise in obesity.


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OBESITY
Obesity means having too much body fat. It is not the same as being overweight, which
means weighing too much. A person may be overweight from extra muscle, bone, or water,
as well as from having too much fat.
Both terms mean that a person's weight is higher than what is thought to be healthy for his or
her height.
64% of all Americans overweight and 30% are obese; the percentage of children age 6 to 19
that are overweight has doubled in the last two decades
Health risks: heart disease, Type II diabetes, high cholesterol, high blood pressure
THE ISSUE FACED BY MCDONALD
Weighing too much may increase risk for developing many health problems. A person being
overweight may be at risk for type 2 diabetes, coronary heart disease and stroke, metabolic
syndrome, certain types of cancer and many other diseases.
By the increasing awareness of people towards obesity and
its outcomes, they have started shifting towards healthier
means of foods. They started analyzing the meals offered
to them in the restaurants and finding the nutrients in
them.
Several allegations on McDonald by health institutions and
scholars have forced people, especially youth to think
about their health and work on it.
This awareness and increasing need for analysis has
decreased sales of McDonalds in past 10 years. Along with
decreasing sales, it has face several lawsuits and loss of
customers to more healthy restaurants like subways.
Successful marketing companies have inverted the organizational chart. At the top are
customers and benefiting them is their core value. The key objective of a company should be
satisfying their customers, gather new one, benefit the older ones and retain the ex-ones.
Buyers operate under various constraints and occasionally make choices that give more
weight to their personal benefit than to the companys benefit.
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SOLUTIONS
MARKET RESEARCH

McDonalds should carry out a market research program to identify the main prospects and
reasons for the allegation imposed on it. As the allegation clearly state that McDonalds
unhealthy foods are creating obesity and heart attack problems, it should carry research
internally and externally.
McDonalds should carry out internal research of what are its key constituents in food
which are creating unhealthiness and obesity, which of their meal are having most
calories, and what ways are inappropriate to make them.

It should carry an external research, to find the most affected

Gender- who is most affected males or females
Geographical area- which geographical area is most affected by the obesity
problem
Age group- kids, youth, seniors

It should find the lifestyle of people who are facing the problem of obesity and those
who claim McDonalds to be unhealthy. There could be people whose activities are null
and they make the company and its products to be responsible of their diseases.
NUTRITIONAL CHANGES

McDonalds needs to focus on public relations reputation building through increased
transparency and dialog
Should Change its menu choice: premium salads, bottled water, low fat/skim milk,
white meat chicken
Should change the trans fat cooking oil to a healthier alternative for its most wanted
product French fries.
Should lower fat, salt, and/or calorie counts on its core products.
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INCENTIVES AND ADVERTISING

Introduce walking programs with the cartoon characters of McDonalds for kids
Provide incentives as passes for pass or a morning walk with celebrities
Should provide nutritional labeling or balance diet cards with its meals and products.
Should provide appointments with health consultants
Ubiquitous advertising campaign emphasizing physical activity.