Essays on The Strategic Marketing Plan of the McDonald's Franchise Case Study

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The paper “ The Strategic Marketing Plan of the McDonald’ s Franchise” is a  potent example of a case study on marketing. McDonald’ s started as a small restaurant in Chicago by brothers Mac and Dick McDonald. In 1955, Ray Kroc established the McDonald’ s corporation after pitching his idea of creating a national franchise to the brothers. The restaurant has since expanded to be a global brand easily recognised by its golden arches. It is in the business of delivering fast foods such as burgers, French fries, and beverages through its four fundamental goals of quality, service, cleanliness, and value.

The mission of the franchise is providing its customer’ s with a unique eat and drink experience at their favourite place. It values good business ethics through top standards in honesty, fairness, and integrity. It values individual accountability and collective responsibility. Being a top brand, it also values social responsibility. It has established the Ronald MacDonald House Charity an initiative that helps local communities build better neighbourhoods. In addition, it has a three-pronged strategy focused on balancing the interests of its customers, suppliers, and employees (McDonald’ s, 2013b).

McDonald is a public traded company and is thus sensitive to environmental concerns such as rising labour rates and commodity prices. In reference to SMART objectives, the sales for the quarter ending March 2013 decreased by 1.2% in the US, 3.3% in Asia Pacific, Africa, and the Middle East, and 1.1% in Europe averaging $6.61 billion. Market share was $1.26 per share. Net income was at $1.27 billion (Mark, 2013). Hierarchy of strategiesMcDonald’ s corporate strategy is hinged on the aggressive public relation efforts developed in the 1960s and 1970s. Paul Schrage, a former marketing executive at McDonald during these years asserts that the efforts helped in endearing the brand targeting kids to the general community.

In 1957 for example, a prominent Chicago newspaper in the US ran a front-page article showing McDonald giving free burgers to the Salvation Army workers (Kate, 2005). This showed the community that despite the products low pricing, the company valued giving back to the community from which it operated. This set the benchmark for the fast-food industry. In addition, the franchise pooled funds for corporate marketing by supporting local league teams and national television advertising.

The success of this strategy led to the establishment of Operator National Advertising Council (OPNAD) that requires franchisees to contribute 1% sales to the council. At the business-level, the franchise model has contributed to the brand’ s success. In the initial years, the franchisee contract required 2.5% of sales be channelled towards business development and expansion. The contribution was increased to 4%. In addition, the support of OPNAD in terms of advertising on behalf of the franchisees has increased development at the business level (Kate, 2005).

The functional strategy at McDonald’ s involves quality, service, and cleanliness. As early as 1957 when most fast-food restaurants focused on the delivery of products only, McDonald offered clean premises as well as washrooms. It has since continued with this trend. By employing youthful staff, the franchise ensures quick service delivery and the management ensures that all franchisees undergo special training for uniform quality in its product and services.      

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