Case study on McDonald's IMC Plan

1. INTERGRATED MARKETING COMMUNICATIONS | CASE STUDY

2. Introduction
McDonald’s is one of the best known brands worldwide.
McDonald's Corporation is an American fast food company, founded in 1940 as a
restaurant operated by Richard and Maurice McDonald, in San Bernardino, California,
United States.
Although McDonald's is best known for its hamburgers, cheeseburgers and french
fries, they feature chicken products, breakfast items, soft drinks, milkshakes, wraps,
and desserts.
In response to changing consumer tastes and a negative backlash because of the
unhealthiness of their food, the company has added to its
menu salads, fish, smoothies, and fruit.

3. Promotion
McDonald’s uses the following promotional tools.
Advertising
Sales Promotion
Public Relations
Direct Marketing
Personal Selling

4. Advertising
Conducted on Television, Radio, Cinema Halls.
3 main objectives of advertising for McDonald’s are:
• To make people aware of their product
• To make them feel positive about it
• To ensure that they remember and retain the product
Most famous Marketing Campaigns
“ You deserve a break today, so get up & get away – To McDonald’s”
“Food, Folks & Fun”
“I’m Lovin it”

5. Sales Promotion
Consists of conducting and encouraging activities that promote
McDonald’s through contests and programmes and giving away
free coupons
Contests like ‘Coast to Coast’, NFL Love’, Happy family moments’,
created awareness and boosted their sales and market share.
Promos and Contests are held on social media to engage more
youth.

6. Market Strategy
• Franchise Model
 Only 15% of total restaurants are owned by the company, rest are franchisee
operated
 Comprehensive framework of training
 Adherence to quality, service, cleanliness and value propositions
• Product Consistency
 Sophisticated Supplier networked Operation & Distribution System
 Consistent product taste and quality across all the geographies.

7. • Act like a Retailer, Think like a Brand
 Focuses on:
o Delivering sales for immediate presence
o Protects its long term brand reputation
• Re-engineering the Menu
 Menu is different across the world
 Depends on the customer’s taste, values, beliefs, lifestyle and perception
 Being famous for hamburgers, McDonald’s came up with chicken and fish burgers
for customers with related religious beliefs
 McDonald’s also came up with a whole new vegetarian menu to satisfy its respective
customers

8. • Segmentation, Targeting, Positioning
 McDonald’s uses demographic segmentation with age as a parameter.
 Main target segments are:
oChildren
oYouth
oYoung urban family
Happy Meals for children comes with toys from Hot wheels to Walt Disney

9. • Swot Analysis
STRENGTHS
 Global brand
 Strong operational capacities
 Successful products
 Quality products
WEAKNESSES
 Weak revenue growth
 Weak product development
OPPORTUNITIES
 Expansion
 Franchisee-operated restaurants
 Growth in take-aways and home
deliveries
THREATS
 Intense competition
 Growing health consciousness
 Increased sales tax

10. Product Launch
McSpicy Range
Advertising Campaign (2011)
“How Spicy is McSpicy”
Aim
To project McDonald’s as a youthful brand & that it met the taste &
preferences of the youth
Pre-Launch Campaign
“The Great Spicy Speculation”
(Reached 250,000 people)

11. Channels for Product Launch
Store
Television
Radio
Outdoor
Online promotions
Technological Innovations (LED Hoarding and Kiosks)

12. Case Study Questions
1. What are the risks that McDonald’s might face in the future?
• Growth health consciousness of society
• Change in lifestyle and tastes
• Competitions from local fast food chain
• Rivals like Subway offer customized food items.
2. What are McDonald’s core brand values?
• High quality at a great value
• Speed and accuracy
• Identical taste across the restaurants
• Cleanliness and hygiene
• Implementation of 5 P’s.