Report-Analyse Case Suty McDonalds Corp Essay Example | Topics and Well Written Essays - 2000 words

Report-Analyse Case Suty McDonalds Corp - Essay Example Proper segmentation, product targeting and positioning are important. McDonalds also needs to be selective in their franchisee selection as it should not disturb the existing franchisees in the region. Customer-oriented approach is essential in the fast food industry. Mass marketing techniques and standardization are no more applicable. Local adaptation is now essential to fight competition. All these indicate that McDonalds need to redefine their marketing strategy. McDonalds, that had once changed the way a nation ate and provided jobs to millions, is now reeling under difficult times. They lag behind in service and quality and despite bringing about changes in their food offers they have met with little success. The main issue is the unpopularity that has developed towards the McDonalds burgers. This has given rise to franchisee relations, downward sales and profits which ultimately are leading to closure of many units across countries. Product diversification without focus, lack of strategic direction and marketing strategies along with the top-down manner in which they dictate the franchisees is responsible for the stunted growth of the company. Attempts to create price war have yielded negative results. The profit margins of the franchisees have reduced between 2-4% against the 15% they enjoyed earlier. The retired CEO has been brought back along with two experienced executives to assist him but there are no signs of recovery. About 30-40% fewer outlets are being added to the chain each year while many close down every month. McDonalds need to realize that their marketing and franchising strategies have to be altered to suit the changed market environment and the ever-changing consumer needs. Kara, Kaynak and Kucukemiroglu (1997) contend that fast-food marketing strategies should have a sound understanding of consumers’ perceptions of and preferences for fast-food outlets and how they differ across cultures/countries. It was assumed in