Mcdonald’s Environmental Factors
McDonald’s: A Giant Marketing Success Story in APA style (your name) (your school) McDonald’s 2 Abstract When it comes to marketing a business domestically and globally, a lot of environmental factors come into play. These can involve finances of a foreign country, customs, culture, and trends. McDonald’s has been a worldwide corporate success, and much of this success has been due to their marketing decisions. Here, we will find out what exactly McDonald’s has done to beat the competition and grow as a company worldwide.
McDonald’s 3 Worldwide, Ronald McDonald is one of the most recognizable characters to this day. The first McDonalds opened in 1937 (Colonel 66, 2003). In just a little over seventy years, McDonalds has become one of the biggest corporations in the world.
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This success did not happen overnight. McDonalds has made great decisions in marketing and advertising over the years. There are many factors that contribute to global and domestic marketing, and McDonalds has seemed to tackle each and every one.
When McDonalds first launched, the two McDonald brothers had to decide how to market their product. The environment and culture of the United States during the 50’s were becoming more and more fast-paced. People wanted quality food for a good price and in a timely manner. The McDonald brothers then came to the idea of using the new technology of assembly lines in order to make quick hamburgers (Wikipedia, 2008). Soon, word of mouth spread the popularity of cheaper hamburgers and faster service compared to traditional diners.
During the beginning of the McDonalds legacy, the United States was booming with new technology and a faster-paced lifestyle, and McDonalds learned how to incorporate this with their marketing. Soon after, in 1955, Ray Kroc took interest in the McDonald restaurant and established the McDonald’s System, Inc (Wikipedia, 2008). This served as the legal structure for the entrepreneur’s planned franchises. It wasn’t long before the McDonald brothers sold their business rights to Ray Kroc.
Although the brothers may have founded the idea of assembly line burgers and fries, Ray Kroc had the marketing plans to take McDonalds into the global direction. McDonald’s 4 As the baby boom began, and families seemed to revolve around the busy lifestyle of work and taking care of children, Ray Kroc decided to market McDonalds to children. It’s not surprising that after the Great Depression subsided, family became the focal point in the American environment. Marketers of McDonalds were smart to hire Willard Scott, formerly known as Bozo the Clown, to play the role of Ronald McDonald (Wikipedia, 2008).
The idea of Ronald McDonald stuck, and a few years later, the whole family of McDonaldland was developed. These characters enticed children, and after the hard times America endured, American parents wanted to make their children happy. It is no wonder McDonalds became a nationwide success. After becoming a phenomenon in the United States, McDonalds had to deal with global marketing and different environments and cultures in foreign countries in order to grow. When expanding to another nation, a company must have a deep knowledge of the needs of potential customers.
Culture and custom plays a big role in marketing for any company, and McDonalds has achieved success despite many environmental factors in different nations. In India, many people are vegetarians due to religious beliefs. This may seem like a dead-end to a fast-food restaurant that specializes in hamburgers, but McDonalds developed the “Maharaja McBurger,” in Indian stores. This is a burger made from assorted vegetables and mayonnaise prepared without eggs (Associated Content, 2005). In addition, McDonalds has promoted various items throughout the world to celebrate
McDonald’s 5 foreignevents. For instance, in China, Taiwan, Hong Kong, and Singapore, McDonalds sells a “Prosperity Burger” during the Chinese new-year (Associated Content, 2005). In addition to culture, financial situations in different countries also affect the way McDonalds operates. It would be impossible to have a set value for a Big Mac worldwide. Instead, McDonalds compares prices to local competitors in order to set their prices. This makes McDonalds infamous burgers affordable to most everybody in a variety of different nations.
Technology has also played a big role in the global market for McDonalds. China’s first drive thru opened in December of 2005 by McDonalds. This new dining experience excited the Chinese as well as confused them. It took a strong team to teach employees how to conduct traffic through the drive thru (McDonalds Corporation, 2005). The success of McDonalds is greatly impacted by staying up to date with technology and equipment in all of their stores. While marketing in terms of profit, a company must also look into social and ethic behaviors.
It’s not enough to provide a great product if the customers do not approve the methods of production. This has been a huge factor for McDonalds. One of the biggest social issues tied to McDonalds in the United States is obesity. According to Michael Russell (2006) over 60 million people are obese. McDonalds has been a target of concern for unhealthy eating habits. As a result, marketing turned away from the traditional core products of McDonalds: the hamburgers, shakes, and fries. Instead, McDonalds has focused attention on new, healthier products such as salads and fresh fruit.
This healthful concern McDonald’s 6 even spreads over to the United Kingdom. Shiv Singh (2008) reports that McDonalds has launched a new national advertising campaign. These advertisements show parents that only healthy, high quality ingredients are used in Happy Meals. It’s clear that the marketing giant McDonalds is staying on consumer trends in all nations. To conclude, McDonalds has shown a successful path in marketing. Their decisions have been based on local culture and environment, and it’s shown that McDonalds has a deep understanding for the concept of environmental marketing.
By treating each location as a local focal point, McDonalds has succeeded in becoming the global corporation that it is today. McDonald’s 7 References Associated Content (2005, March 3). McDonald’s Strategic Marketing Mix. Associated Content, Inc. Retrievedon July 30th 2008 from http://www. associatedcontent. com/article/263943/mcdonalds_strategic_marketing_mix. html? cat=4 McDonalds Press Release (2005, December 10). First McDonalds Drive-Thru Opens InChina. McDonalds, Inc Retrieved on July 30th, 2008 fromhttp://www. mcdonalds. com/corp/news/corppr/2005/cpr_12102005. tml Russel, Michael. (2006, May 21). Obesity in the United States. Ezine Articles. Retrieved on July 30th, 2008 from http://ezinearticles. com/? Obesity-In-The-United-States;id=202439 Singh, Shiv. (2008, July 1). McDonalds and Social Influence Marketing. Going Social Now. Retrieved on July 30th, 2008 from http://www. shivsingh. com/goingsocial/2008/07/heres-another-example-of-socia. html Wikipedia. (2008, July 1). History of McDonalds. Wikipedia, Inc. Retrieved on July 30th, 2008 from http://en. wikipedia. org/wiki/History_of_McDonald’s