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Analysis and Decision

In: Business and Management

Submitted By audreyway76
Words 8516
Pages 35
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Executive Summary
McDonald’s Corporation currently markets its products across its 8 geographic segments through customizing its food items to suit local tastes and preferences. Furthermore, all advertisements are shot in 12 different languages, featuring the customized products catered to each region. However, the company’s international motto, “I’m Lovin’ it”, is not translated. McDonald’s locates all of its franchises in convenience locations such as malls, airports and local neighbourhoods.

These marketing strategies have proven to be effective, indicated by the company’s 7% increase in profit margins over the past 4 years. However, McDonald’s has strived to improve them with recent marketing initiatives with respect to the 4Ps. McDonald’s has begun to renovate its eateries, such as going from a plastic look, to a more brick and wood design in an effort to maintain a contemporary image. They have also decided to “re-image” themselves in their ads by incorporating a hip-hop theme with teen icons such as Justin Timberlake as a means to attract teenagers. Additionally, company has begun to offer healthier food products, such as oatmeal, given consumers are more health conscious.

In light of McDonald’s recent efforts to improve its marketing strategies, they still face three pressing issues. Firstly, although the company has begun offering healthier food items, they are still high in fat, sugar and salt. This was confirmed in a study performed by Dr. Linda Schacter which found McDonald’s recent food offerings can still cause heart disease and kidney failure. Secondly, McDonald’s common marketing of products to children has resulted in a high degree of ethical scrutiny among the public. In the same regard, the firm’s product purchases from sources who contribute to deforestation has further decremented the company’s image. In fact Primary...

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