McDonald’s is one of the leading fast food chains in the international market. This document provides a detailed analysis of McDonald’s, including its key activities and value proposition through the business model canvas and value proposition canvas.
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MARKETING1 Table of Contents Background of Company.............................................................................................................................................................................2 Business Model Canvas of McDonald’s......................................................................................................................................................3 Value Proposition Canvas............................................................................................................................................................................5 References....................................................................................................................................................................................................7
MARKETING2 Background of Company McDonald’s is one of the leading fast food chains in international market. McDonald’s opened its small restaurant in the year 1940 in California. Raymond Krocand is the founder of McDonald’s that has changed the fast food industry in America by striving as well as controlling the hamburger, milkshakes as well as French fries. The company has adopted effective marketing strategies that made them successful in the global market (Howse et al, 2018). In the following part there will be detailed analysis of McDonald’s, in which its key activities and value proposition will be highlighted through business model canvas and though value proposition canvas.
MARKETING3 Business Model Canvas of McDonald’s Key Activities Preparing Marketing Strategies Communicate with consumers Preparingand servingquality food Participationin Employment generation Socialservices Programs FunctionalFast casual restaurant Maintaining strong relationshipwith suppliers Key Partnerships Suppliers such as Coca Cola, Simplot Franchise Holders Wholesalers OtherCommercial Equipment’s SponsorshipDeals such as FIFA Customer Relationship FeedbackForum providedto consumers Involvementin Community Support Focusonhigh standardqualityof food Supportfor Environment Providedetail informationabout McDonald’swhich include its services Recentattemptto change the image of the company in the eyes of consumers Foodsareprovided atnominaland competitive prices to the consumers Providediscount coupons to the loyal consumersto maintainhealthy Value Propositions Provide comfortable environmentto the consumers Provide services of home delivery forthe consumers Maintain consistencyof foodquality across the globe Itprovide diverse past food menu Premiumitems intrudefor consumers Customers Segment Families Young Generation such as students Employeesthose whoarebusy consumers Healthconscious people Broad Reach ChannelsKey Resources
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MARKETING4 Own Outlets and Restaurants Advertisement through Social media, Radio, Magazines, Billboards as well as Newspaper Mobile App Sponsorship Deals- FIFA Brand awareness campaign Food Blogs relationshipwith them (Kane, 2016) Capital Employees(Cook,Serversandwaiters, Cleaning Staff) Strategic Location Suppliers Utensils and Kitchen Cost Structure Employees’ Salaries Maintenance of store Other Equipment’s Rent of Building Carriage Charges Payment of Taxes Cost of Marketing Purchase of Raw Material Revenue Streams Sales of Product Royalty Publically Traded company Through borrowing from market (Badal, 2017)
MARKETING5 Value Proposition Canvas Product Gains Cost Effective Good Ambience Quantity and QualityPains Gap time in Order Expected Taste Staff of Well Manner Customer Jobs Varity of products Friendly Environment Affordable for all age Gain Creators Different types of combo included in menu Products are popular among consumers Cooperation and Leadership Do not require waiting for waiter to order food Free and casual environment provided to consumers Product and Services Value: McDonald’s provide different variety of burgers and other means such as Big Mac, Filet-O-Fish, several chicken sandwiches, French fries, snack wrap, soft-serve cons, salads, shakes, Flurry desserts, coffee, soft drinks, McCafe Beverages and other beverages and so on. Location: McDonald’s has expanded its business in the international market. It is majorly provided in shopping malls and other crowded places. Target Segment: all age group is targeted by the company with the range starting from 7 to 60 years. Different Offers from Competitors: Unique taste, consumer friendly environment, nominal prices and different offers with discounts (Longacre et al., 2016). Pain Relievers Good Tasting hamburgers, fries as well as drinks that provide value to the consumes Kind fun through excitement of birthday parties, relationship with Ronald McDonald’s as well as other characters with the feeling of special gamily time.
MARKETING6 References Howse, E., Hankey, C., Allman-Farinelli, M., Bauman, A., & Freeman, B. (2018). ‘Buying Salad Is a Lot More Expensive than Going to McDonald’ss’: Young Adults’ Views about What Influences Their Food Choices.Nutrients,10(8), 996. Kane, G. C. (2016). How McDonald’ss cooked up more transparency.MIT Sloan management review,57(2). Badal, A. (2017). McDonald’ss Corporation–2015 (MCD).Academic Journal of Business. Administration, Law & Social Sciences,3(2), 27-40. Longacre, M. R., Drake, K. M., Titus, L. J., Cleveland, L. P., Langeloh, G., Hendricks, K., & Dalton, M. A. (2016). A toy story: Association between young children's knowledge of fast food toy premiums and their fast food consumption.Appetite,96, 473-480.