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Introduction about McDonald
McDonald is one of the largest chains of hamburger fast food restaurant. More than 58
million customers serve daily worldwide by McDonalds. A McDonald’s restaurant runs by a
franchise, an affiliate or the corporation itself. The company’s revenues come from rent,
royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants.
The revenues grew 27 % over the three years ending in 2007 to $ 22.8 billion, and 9% growth
in operating income to $ 3.9 billion.
The main products that McDonalds sells are hamburgers, cheeseburgers, chicken products,
French fries, breakfast items, soft drinks, milk shakes and desserts. The company alter its
menu such as salads, wraps and fruit in response of obesity trends in western nations and in
the face of criticism over the healthiness of its [Link]
Brand Vision and Ambition
Our Brand Mission is to be our customers’ favorite place and way to eat and drink, we will
bring customer unique customer experience that can only be found in our restaurants
Our Brand Ambition is serving Good Food with Good People and being a Good
Neighborhood
Brand Mission
• Being the best restaurant that customers wish to come for not only meals but also the
experience! We are committed to continually improve the quality of our services and bring
exciting experiences to our customers through our core and favorite products such as French
Fries, Big Mac and Chicken. McNuggets, that you can only get at McDonald's.
• McDonald's is committed to follow the standard of McDonald's global: Quality,
Service,Cleanliness & Values
History of McDonald's
The first Mc Donald’s restaurant was opened by brothers Richard and Maurice McDonald.
Their father held a food stand in Monrovia, California called "The Airdrome", where he sold
cheap hamburgers and orange juice. In 1940, brothers moved the restaurant to San
Bernardino, California and called it "McDonald's Bar-B-Q" where they sold mostly barbeque.
When they realized that most of their profits came from hamburgers they streamlined the
making of hamburgers and started selling a smaller menu with just hamburgers,
cheeseburgers, french fries, shakes, soft drinks, and apple pie. They also shortened their name
to "McDonald's," and reopened on December 12, 1948. In 1952 they started franchising. In
1954, Ray Kroc bought a franchise and from then McDonald’s starts its expansion. By 1958,
McDonald's Corporation had 34 restaurants and by 1959 - 102. Ray Kroc bought out
McDonald brothers in 1961. In 1962, McDonald's got its, today’s famous, Golden Arches
logo and Ronald McDonald, a red-haired clown, appeared in 1963. McDonald’s had skillful
marketing and was very fast in responding to customer demands. They experimented with
new types of hamburgers constantly and some of the worked while other didn’t. Hamburger
with slice of pineapple and a slice of cheese, a "hulaburger", - flopped while Big Mac (which
appeared in 1968) became popular immediately and is popular even today.
In the late 1970’s began "Burger Wars". Other fast food chains, like Burger King and
Wendy's, began spreading seeing their place in the market. They all maintained aggressive
advertising campaigns and low prices to try and stay competitive but McDonald’s survived.
They introduced McChicken, a chicken sandwich, in 1980 and Chicken McNuggets (after
McChicken flopped) in 1983. Experts of that time thought that fast-food industry was
saturated but McDonald’s continued its growth. They opened their 10,000th restaurant in
April 1988. By the beginning of the ‘90s they had more than 3,600 outlets in 58 countries not
counting those in United States (where they had some 9,000). But 1990s brought difficulties.
Too many experiments flopped and advertising campaigns failed. McDonald’s had so many
outlets that new started taking costumers from the old ones. Because of all that expansion in
United States slowed down but McDonald’s managed to get out of the problem by
introducing popular toys with meals (Teenie Beanie Babies and toys from Disney and Pixar
movies). In 1998, company had the first decrease in net income since the 1965 when it went
public and resulted in job cuts.
Beginning of 2000s brought more job cuts along with lawsuits and accusations of selling
unhealthy food. McDonald’s restaurants were attacked around the world as symbols of
globalization. Because of all of that McDonald’s concentrated on improving the image and
started selling more healthy food. Today, McDonald’s is present in 119 countries where it has
more than 35,000 restaurants and where more than 68 million customers are served daily.
Finance
For the fiscal year 2018, McDonalds reported earnings of US$5.9 billion, with an
annual revenue of US$21.0 billion, a decrease of 7.9% over the previous fiscal cycle.
McDonald's shares traded at over $145 per share, and its market capitalization was
valued at over US$134.5 billion in September 2018.
Net Total
Revenue Price per
income assets Location
Year in mil. share Employees
in mil. in mil. s
USD$ in USD$
USD$ USD$
2005 19,117 2,602 29,989 31.88
2006 20,895 3,544 28,975 36.79 31,046
2007 22,787 2,395 29,392 50.98 31.377
2008 23,522 4,313 28,462 58.06 31,967
2009 22,745 4,551 30,225 57.44 32,478
2010 24,075 4,946 31,975 70.91 32,737
2011 27,006 5,503 32,990 83.97 33,510
2012 27,567 5,465 35,387 92.53 34,480
2013 28,106 5,586 36,626 97.26 35,429 440,000
2014 27,441 4,758 34,227 96.38 36,258 420,000
2015 25,413 4,529 37,939 100.28 36,525 420,000
2016 24,622 4,687 31,024 120.14 36,899 375,000
2017 22,820 5,192 33,804 148.76 37,241 235,000
2018 21,025 5,924 32,811 166.06 37,855 210,000
Mc Donald’s Target Market
McDonald’s targeted customers are sorted according to various segments. The main
targeted customers are parents with younger children, young children, business customers
and teens. These can be sub-segmented into demographic groups, which may include, among
others, mainstream domestic, African American, Asian American, Latino, women
(particularly single moms) and millennials. Because of the wide variety of segments that offer
a great deal of diversity, McDonalds must petition an extensive and inclusive audience. With
their traditional menu offerings of burgers and chicken sandwiches, salads, soft drinks and
milk shakes, some items have currently undergone alteration to provide an appeal to the more
health-conscious outlook being comprehensively considered by most consumers .
In order to differentiate these segments, profiles of consumers are established that are
both horizontal and vertical. The following examples illustrate how these might appear:
Target Market of McDonald ( and Customer Profile)
Parents with younger children Visits Mc Donald’s to give children a treat
Children Want to visit McDonald’s as it is a fun place
to eat
A business Customer Visits McDonald’s during tha day as servive
is quick,the food tastes great and can be
eaten in the car without affecting a busy
work schedule.
Teenagers Are attacted by the Saver Menu which is
affordable, and the internet access available
in restaurants
Parents with younger children – This group of consumers are sometimes occasioned with
myriad issues, such as adopted children, unmarried/separated/divorced parents and those
experiencing poverty However, overall the typical young family will be median income
earners, mobile, and in the case of many, health-conscious. Mainstream domestic consumers
in this group will be targeted with features such as ecologically balanced offerings, e.g.
sustainable and certified fish and sirloin burgers. Culturally distinct groupings will be
attempted to these healthy alternatives as well. Single moms and millennials are also
oftennotoriously health conscious, and will recognize these as positive attributes [CITATION
Chi15 \l 1033 ].
Young children - Young children are learners, working to absorb new words and concepts.
Young children are frequently comprehensive in nature, irrespective of culture. In current
society they are exposed to a great deal of televised advertising, and almost universally
recognize brands that are seen during viewing. The Happy Meal is ubiquitously known
among kids around the world. In an effort to appease health conscious parents, fruits such as
apples and orange slices are offered as substitutes for French fries. Yogurt is a replacement
for the cookies that were classically included in the boxed meal, and fruit juices and milk as
alternatives for soft drinks. As young children are very active with high energy levels,
playgrounds that allow climbing, crawling and other moderately strenuous activities are
typically included at restaurant locations. It should also be noted that McDonald’s set the
standard of including promotional toys with children’s meals, which are typically co-branded.
For ages under three alternative toy selections are available secondary to safety concerns
[ CITATION McD15 \l 1033 ].
Business customers – The average business customer will have a disposable income, be
educated, and often hurried as a result of tight schedules The demographic segment is is
geared toward information which provide U.S. Department of Agriculture guidelines for
dietary recommendations, and include sample menu suggestions which are based on gender,
age, weight and daily physical activity levels. Breakfast and lunch meals are most often
consumed by business customers [ CITATION McD151 \l 1033 ].
Teens – Teens represent the most dependable and at the same time difficult of McDonald’s
targeted segments. Teens of both genders are increasingly mobile, active, and notoriously
hungry secondary to growth spurts that occur during adolescence. Millennial teens are
distinguishing themselves from their historic contemporaries, however, as they are yet
another modern segment focused on health considerations. Fewer hamburgers are being
consumed by today’s teens than were by Generation X or Baby Boomer youngsters. They
have been described as self-interested and entitled, and yet at the same time open-minded and
conscientious. Advertising which includes trendy music and images of youths enjoying
McDonald’s food while engaging in vigorous and energetic activities is the predominant
integrated marketing communications for the teens segment [ CITATION You15 \l 1033 ].
