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1、Case analysisI) McDonalds Corporation in the New Millenniuml Backgroundl Major competitors in the hamburger and non-hamburger segmentII) The strategy of McDonaldsIII) The strategy of competitorsIV) Question Analysis 10工商六班背景分析：韩淑宇 黄宽 谷昌坤 李颜夕 凌玉雪问题分析：李颜夕 黄宽 谷昌坤 赵亮制作报告：庞路畅 黄宽McDonalds Corporation in t
2、he New Millennium1. Background:Dynamic market expansion, new products, and special promotional strategies had made McDonalds Corporation a leader of the fast-food industry. However, sales growth in the United States had slowed to below the industry average in recent years. Major competitors in the h
3、amburger segment of the fast-food industry in order of annual sales are McDonalds, Burger King, Wendys and Hardees. Three of the major competitors offering non-hamburger fast foods are Pizza Hut, Kentucky Fried Chicken and Taco Bell.In the fast-food industry, years of profit drains and flat sales ar
4、e driving fast-food chains to find new marketing strategies to compete In a mature market. There are some industry features appearing in recent years.1) They are trying to increase the speed of drive-through delivery. Strategies include using timers to encourage employees to prepare and deliver food
5、 faster, training employees in faster food preparation methods, having separate kitchens and food preparation facilities for drive-through customers, and even wind-shield responders that automatically bill customers.2) A growing trend is the move by customers to non-hamburger sandwiches. Prepared me
6、als and sandwiches available in supermarkets, convenience stores, and gas stations are competitors to the variety of microwave meals.3) Another trend is the recognition of the importance of heavy users of fast-food restaurants. They are defined by some features and loyal to the fast food. Their spen
7、d occupies a lot in the sales.4) A major change in the fast-food industry is the increase in the fast-casual segment. Some chains offer deli sandwiches and meals that are more upscale than traditional restaurant5) Americans are eating out less often compared to previous years a s.nd eating habits ar
8、e changing. On the one hand, the recession is a reason that cut the cost of peoples daily life. On the other hand, many younger consumers are getting tired of fast food and are thinking about their health.McDonalds has three major competitors in the hamburger segment.1) BURGER KING CORP.: It is deve
9、loping a more permanent marketing strategy and moving away from its previous tactical approach, which revolved around the monthly changes in menu items and deals. It offered a new salad line and a permanent array of value-priced offerings.2) HARDEES: The industrys No.4 burger chain, had dominated ma
10、nagements attention in its conversion of Hardees to a format called “star Hardees”. The company attempted to reverse sliding sales by introducing new items on the menu and joining the price- promotion burger wars. 3) WENDYS INTERNATIONAL: At least part of the growth is attributed to Wendys line of f
11、our upscale salads called “Garden Sensations”. Wendys planned 30 percent boost in media outlays and in-store operations.McDonalds has major competition in the Non-hamburger segment.1) PIZZA HUT: It scored a major success with its PZone , a portable, calzone-like item that company officials called “t
12、he pizza that actually sold out in test market.”2) KFC: Its recent strategies included a “Kids Lap Top Pack” meal program, to attract more kids and families to its food offerings.3) TACO BELL: The dramatic rebound in sales were due to a strategy shift to higher-priced products.The strategies of McDo
13、nalds1) While McDonalds and most other hamburger chains continue discounting and offering a variety of new products to attract customers, they also seek to shed their “cheap and greasy” image with new store designs. McDonalds accelerated plans for “New Taste Menu” items. Different kinds of food were
14、 created like Italian-style burger. McDonalds advertising message focused on tasty and nutritious food, friendly folks, and fun. 2) drive-through To increase the speed of drive-through delivery, the company use timers to encourage employees to prepare and deliver food faster, training employees in f
15、aster food preparation methods, having separate kitchens and food preparation facilities for drive-through customers, and even windshield responders that automatically bill customers. Drive-through sales are expected to increase the sales of McDonalds.3) The company invested heavily in improving its
16、 public image. McDonalds annual Charity Christmas Parade and its Ronald McDonalds House charity provide the company with a positive image.4) McDonalds opened McCafe with expectation that the gourmet coffee shop would move it closer to its goal of doubling sales at existing U.S. restaurants. The menu features a selection of specialty drinks, aiming to appeal more upscal
