Tom - McDonalds marketing strategies

Business Blog

Thomas Godts

2^nd February 2015

 

McDonald's sales slump

Sales at McDonalds have decreased for the first time in 12 years. Don Thompson, (president of McDonalds) will be replaced by the new executive president Steve Easterbrook who has all the pressure to safe the Fast Food company that is getting replaced by new companies such as Shake Shack and Chipotle who treat their employees well and also serve good quality food. The average percentage of 19-21 year old visiting McDonalds has decreased by 13% in the last years, meanwhile other leading fast food companies sales has increase significantly in the past years. Wealthy customers rather to visit restaurants that treat their employees fairly and also serve good quality food rather than going to McDonalds that has had a lot of scandals including bad quality food and unfair wages.

Similar problems were recorded in the past already, 2003 McDonalds made a huge loss but the chief executive Jim Canatalupo said “The world has changed. Our customers have changed. We have to change, too.”  Canatalupo was able to rescue his company due to his significant management strategies.

McDonalds it loosing its customers because of the low choice menu, there is no variety for customer to choose is frankly always the same.

McDonalds is focusing on a different customer base, people with low income/budget and people that do not really care about the food quality. McDonalds is launching a new cheap Asian salad that also attracts customers that want to become healthy or want to try something new. McDonalds is looking forwards to their new president and all the ideas he has set up, they are looking forward to launch new products that customers have never seen before. Due to the scandals that occurred last summer in china, McDonalds certainly has to concentrate on the reputation of the food quality. McDonalds is thinking about doing market research in their restaurants asking what the customer’s wants and needs are. McDonalds are loosing their customer to Burger King (competitive fast food restaurant) partly because of their wide menu choice and because of good reputation is has towards their employees. McDonalds is ready to change the salaries and the treatment of their employees to gain a good reputation. This is a big change for the employees of McDonalds since they are now able to afford better quality food and therefore live healthier. McDonalds is therefore also globalizing their employee’s lives. McDonalds is starting to market to different age groups with different demographics this will make a change for the company since their have to change their menu and style of restaurant. McDonalds innovative strategies of serving new products will help the company to gain their customers back.