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Chapter 2 Company and Marketing Strategy Partnering to Build Customer Relationshios 65 Real Marketing 2.1 McDonald's: On a Customer-Focused Missionaries. The plan and the soundingly surple sitt ups products, place, prior and promotion. While the five Pack of com corporate Speak company official maintain that they have pro foundly changed McDonald's direction and pri in mission forced McDonalds and es to focus on quality service, and the resta More than half a century ago, Ray Kroc per you the new stones herpedales, but cu price rather than simply providing the S2-year-old salesman of milkshakeming tome en die de bescherpest, most convenient option to cut machines, set out on a mission to transform the company and a good womens The Pan to Win which barely fits on a the way Americans eat in 1955, Kroc com es fast rough Meanwhile McDonalds indesheet of paper wrested as sacred ered a string of seven restaurants owned by many became a formalige made the company Richard and Maurice McDonald. He saw the action and nutritionists McDonald brothers' fast-food concept as when the corbuting to the Under the Plan to Win, McDonald's got perfect fit for Americas increasingly on the tombeydewer french back to the basic business of taking care of 90, time-squeezed family oriented festyles tries and assess that customers. The goal was to get better, not Kroc bought the small chain for $2.7 million kids with the word of toys just bigger The company hated rapid expan and the rest is history sion and instead poured money back into From the start Kroc preached a motto of Although McDonalds mained the improving the food, the service, the atmo OSCV-quality service, cleanliness, and all world's most voted fast-food chain, the one here, and marketing at existing outlets. became McDonalds hy Golden Arthes lost some other user McDonalds decorated with customer-focused mission statement. Apply Sales grown slumped and market sharefeldean, simple, more modern interiors and ing these values, the company perfected the ty more than 3 percent de fast food concept delivering convenient tween 1997 and 2003 good quality food at affordable prices 2002, the company posted McDonald's grew quickly to become the first to the world's largest fast-feeder. The fast-food face of changing customer ant's more than 32,000 restaurants worldwide value expectations, the com now serve 60 million customers each day rack paytadost sight of it ing up system wide sales of more than 579 damental proposition lon annually. The Golden Arches are one of "We got acted from the the world's most familiar symbols, and other most important thing hot than Santa Claus, no character in the world's high quality food great more recognizable than Ronald McDonald value at the speed and con In the mid-1990s, however, McDonald venience of McDonaldsays fortunes began to turn. The company cured content CEO Im Sinne the to fill out of touch with both its mission and its company and customers. Americans were looking for fresher needed to det better-tasting food and more contemporary In early 2003. a med mospheres. They were also seeking healthier McDonaldsonedau eating options in a new age of health.com aroundplatnow consumers and 55 wttes at Subucks to Win the heat McDonalds seemed a bit out of step with the of this plan was a new times. One analyst sum it up this way statement that focused the company on customers. A McDonalds was struggling to findes de cording to the way amid a fun of competitors and changing Consumer stes. The company and from onetailed de to another it tried to keep pace changed from being the by offering pizza tasted del sandwiches and works best the Archet, aadly advertised new burger restaurant to bene u that flopped. It bought into orburgeries customers are place and le Chipotle and Boston Market. It also find way to the Pan to win with its menu, no longer hosting the buttons out where Donald switching pickles, and changing the speciel Sac wars to be and how to McDonald's new mission-"eing our customers' favorite on Big Macs. None of these things world. Al to get the place and way to eat-coupled with its Plan to Win, got the while, McDonalds continued opening new fue hic in the company back to the basics of creating exceptional restaurants a ferocious pace, as many as 2.000 customer experience Decole customer experiences a McDonald's E Continued one 66 Part One Defining Marketing and the Marketing Process amenities such as live plants, wireless internetit--that underscores the important interplay McDonalds outperformed its competitors by a access and flat-screen TV showing cable between eating right and staying active notatile margin Despite the tough times news. Play areas in some new restaurants now McDonald's rediscovered dedication to McDonalds achieved a lotty 15.5 percent three feature video games and even stationary bicytomer value sparked a remarkable turnaround year compound anul total return to investors cles with video screens. To make the customer Since announcing its Plan to Win, McDonalds the S&P 500 average of 56 percent experience more convenient, McDonalds sales have increased by more than 50 percent, Thus, McDonalds now pears to have stores now open earlier to extend breakfast and profits have more than quadrupled in 2008, the right mission for the times. Now, once hours and stay open longer to serve late-night when the stock market lost one third of its again, when you think McDonald, you think diners-more than one-third of McDonalds value-the worst loss since the Great Deprewaluwhether its a college student buying a restaurants are now open 24 hours a day son-McDonald's stock gained nearly 6 percent. sandwich for a buck or a working mother at the A worked menu, crafted by Chef Daniel making it one of only two companies in the Dow drive-through thing a breakfast ate that's Coudreuta Culinary Institute of America Jones Industrial Average whose share price rose dolor cheaper than Starbucks. And that has graduate and former chef at the Four Seasons during that year the other was Walmarts customers and the company like humming in Dallas, now provides more choice and vath Through 2010, as the economy and the rest the chain catchy inglem lovin' it." ety, including rather options, such as rant industry as a whole continued to struggle. Chicken McNuggets made with white meat, a Ine of Snack Wraps, low-fat milk jugs. apple stions, Premium Salads, and the Angus burger Within only a year of introducing its Premium Sources and on information found Andrew Martin, McDonalds the cele Salads, McDonalds became the world's largest Hotel in York Times, 11,2008, en Adam McDonalds Sets Ways to Stral Set Salad seet. The company also launched a man March 10, 2001, Atardo Cloud. Dorsa Chetime, bary 22, 2016. . 18-21 for multifaceted education campaign--thered Franca dhe information and stron www.aboutador comments its what i eat and what I do i'm lovin October 2010 Portfolio analysis The process by which management evaluates the products and businesses that make up the company Analyzing the Current Business Portfolio The major activity in strategic planning is business portfolio analysis, whereby maruge ment evaluates the products and businesses that make up the company. The company will want to put strong resources into its more profitable businesses and phase down or drop its weaker ones Management's first Mop is to identify the key businesses that make up the company called strategic business units (SBU). An SBU can be a company division, a product line within a division, or sometimes a single product or brand. The company next assesses the attractiveness of its various SBUs and decides how much support each deserves. When de signing a business portfolio, it's a good idea to add and support products and businesses that fit closely with the firm's core philosophy and competencies The purpose of strategic planning is to find ways in which the company can best use its strengths to take advantage of attractive opportunities in the environment. So most stan dard portfolio analysis methods evaluate Sus on two important dimensions: the attractive ness of the SBU's market or industry and the strength of the SBU's position in that market or industry. The best known portfolio-planning method was developed by the Boston Con sulting Group, a leading management consulting firm. The Boston Consulting Group Approach. Using the now.classic Boston Consulting Group (BCG) approach, a company classifies all its Sus according to the growth-share matrix, as shown in Figure 2.2. On the vertical axis, market growth rate provides a mea sure of market attractiveness. On the horizontal axis, lative market share serves as a measure of company strength in the market. The growth-share matrix defines four types of SBU 1. Stars Stars are high-growth, highshare businesses or products. They often need heavy Investments to finance their rapid growth. Eventually their growth will slow down, and they will turn into cash cows 2. Cast Cows Cash cows are low-growth, high-share businesses or products. These estab lished and successful SBUs need less investment to hold their market share. Thus, they Growth-share matrix A portfolio planning method that evaluates acomo sus in terms of its market gowth rate and relative market share