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INTRODUCTION

Trend of fast food industry in Mc Donald

Marketing strategy is essential for the success of a product in a target market as argued by

Philip Kotler (1988). This is mainly because of the increasing diversity in the nature of the

customers and the stiff competition in the market. In this essay the marketing strategy of Mc

Donald the leading conglomerate in the fast food restaurants and services industry on selling

vegetarian burger in the UK. Furthermore, the consumer behaviour for vegetarian burger in the

UK is critically analysed in order to justify the approach of Mc Donalds approach to deploy the

identified strategy.

Schlosser describes the growth of the fast food industry as being driven by fundamental

changes in United States society. Since the 1970s there has been a steady decline in the hourly

pay (adjusted for inflation) of the average United States worker. Additionally more and more

United States mothers were working outside the home. In 1975, about 1/3 of United States

mothers with young children held jobs. That ratio has risen to 2/3 at the beginning of the 21st

century. A generation ago, three-quarters of the money used to buy food in the US was spent to

prepare meals at home. Today, about half of that same money is spent in restaurants mainly

fast food restaurants. In 1968, McDonald's had 1,000 restaurants today it has about 30,000, and

2,000 new ones are opening each year.

COMPANY BACKGROUND

History: McDonalds in Malaysia

McDonalds first made its to our shores in December 1980 when McDonalds Corporation, USA

gave GOLDEN ARCHES RESTAURANTS SDN BHD the license to operate McDonalds

restaurants in Malaysia.

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The first Mc Donalds Malaysia opened its restaurant at Jalan Bukit Bintang, Kuala Lumpur on

29 April 1982. Now, McDonalds Malaysia has 194 restaurants located nationwide and is

currently expanding at about 10- 15 restaurants annually.

McDonalds has created many job opportunities in Malaysia. McDonalds Malaysia employs

more than 8000 local people with 120 support staff at its headquarters managing the day to day

operations of the McDonalds business. There is also a regional office in Penang and Johor

Bahru.

Mission and vision we to achieve our mission:

We place the customer experience at the core of all we

do

Our customers are the reason for our existence. We

demonstrate our appreciation by providing them with high

quality food and superior service, in a clean, welcoming

environment, at great value. Our goal is outstanding

QSC&V for each customer every time.

We are committed to our people

We provide opportunity, recognize talent, and develop

leaders. We believe that a diverse team of well-trained

individuals working together in an environment that

fosters respect and drives high levels of engagement is

essential to our continued success.

We believe in the McDonalds SystemMcDonalds business model, depicted by the three-

legged stool of owner/operators, suppliers, and company

employees, is our foundation, and the balance of interests

among the three groups is key.

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We operate our business ethically

Sound ethics is good business. At McDonalds, we hold

ourselves and conduct our business to the highest possible

standards of fairness, honesty and integrity. We are

individually accountable and collectively responsible.

We give back to our communities

We take seriously the responsibilities that come with

being a leader. We help our customers build better

communities, support RMHC, and leverage our size,

scope and resources to help make the world a better place.

We are committed to sustainable business practices and

are determined to conduct our operations in a manner that

does not compromise the ability of future generations to

meet their needs.

We grow our business profitably

Our stakeholders support our ability to serve our

customers. In return, we work to provide sustained,profitable growth for all members of our system and our

investors.

We strive continually to improve

We consider ourselves a learning organization that is

green and growing which anticipates and responds to

changing customer, employee, system and community

needs through constant evolution and innovation.

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ORGANIZATION CHART

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McDonalds logo and the Complexity of Marketing Sign Systems

As a sign system, brand communication is achieved through a complex matrix of

signifying elements, including material, structural, conventional, contextual, and per formative

dimensions. Let me illustrate this reference to the logo for the McDonalds.

Material a visual icon

Structural golden arches, red background, brand name superimposed on the

arches in white, squared font. The arches located to the left of the square so the

logo moves off to the right, suggesting movement.

Conventional or codified the golden arches, the color scheme, and the brand

name consistently signify the company and brand offerings for the McDonalds

company. Anywhere in the world, in various languages, this logo tells the

consumer that a burger and fries are not far away.

Per formative Marketing sign systems engage consumer in a communication

event by means of codes inscribing subject positions for I and you in

representation. This dimension is crucial for building brand relationship and for

calling the consumer to action, i.e. making a brand choice.

MARKETING STRATEGY

Promotion

The advertising and promotion initiative of an organization to increase the sales of a

product play a critical part in the marketing strategy s argued by Frances Brassington and

Stephen Pettit (2003). This is evident from the companys investment in advertising its products

and the launch of promotion campaigns reflecting upon the social and national events like

football premiership, health awareness initiative of the government etc. Furthermore, the

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promotion of the vegetarian burger as a corn burger and not just a vegetarian burger emphasizes

upon the companys strategy in distinguishing its vegetarian burger from that of its competitors.

This is because it is universally known that corn is low in fat and is a healthy diet in the UK,

which was forgotten with the increase in the fast food culture (Simon Taylor, 2001). This

approach of the company to promote its vegetarian burger has not only increased its sales but

also accomplished the process of establishing the product as a unique item in the category of

vegetarian burgers in fast food.

The McDonalds promotion of free iced coffee through mobile coupons could spur the

roll out of mobile coupons. The McDonalds mobile coupon is a strategic test for a strong brand

and a free offer that extends beyond the millennial generation. The mobile user has to download

the Cellfire service, but simply receives a SMS text message with a redemption code.

The McDonalds mobile coupon will be a comparison with direct-mail pieces.

McDonalds is sending direct-mail coupons for free iced coffee with the purchase of any

breakfast sandwich. The direct mailers have other offers for getting a free hamburger with the

purchase of a like product.

McDonalds will be able to evaluate the redemption of the iced coffee mobile coupon

for cross-selling other products compared to the clipped direct mail offers. And Cellfire can

expand its targeted marketing according to the redemption behavior and the retailer loyalty.

The redemption of the McDonalds mobile coupons will also be a comparison test against the

click-through rates on downloadable mobile search software like Google, Yahoo and Microsoft.

At the recent CTIA tradeshow, Bango Analytics showed that mobile Web sites have click-

throughs of about 2% to 8% and a conversion rate of 2% to 5%. McDonalds free iced coffee

could test if mobile coupons can improve targeted marketing to handsets.

Place

Place in the marketing mix, is not just about the physical location or distribution points

for products. It encompasses the management of a range of processes involved in bringing

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products to the end consumer. Conclusion Once the marketing strategy is in place various

responsibilities are given to different individuals so that the plan can be implemented. Systems

are put in place to obtain market feedback which measure success against short-term targets.

McDonald's has to ensure that this is done within the confines of a tightly controlled, finite

marketing budget.

Price

In terms of price, Mc Donalds offered affordable price to their customer. They provide

variety price that the customer will choose the menu that they want. The pricing strategy that

they used by offer McValue Lunch. From 12 noon until 3 pm, they offer great price that the

customer can enjoy their lunch at this fast food restaurant everyday on Monday until Sunday.

Other strategies, they offer half price with any purchase of Mc Value Meal. This strategy can

attract customer to buy it with McValue Lunch.

Product

This restaurant provides variety of product. They tend to focus with their burger because

one of image of their brand. Many customer will enjoy this meal when came here. But, they also

come out with another product or menu. For instance like Breakfast menu including variety of

menu, Happy Meal, Dessert, Beverages, and Mc Saver. They also can produce the new menu to

look the demand with the product. If success, they will maintain the menu at the restaurant. The

seasonal strategies, they produce Prosperity Burger when Chinese New Year. From that

customer will know the menu have in the restaurant.

COMPETITIVE ADVANTAGE

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We have come to a time where the competitions between firms is getting more

aggressive than ever before therefore every company has to have a certain weapon to defend

itself or to gain new markets. This project is about the differentiation tools used by the

McDonalds Company and how it uses it resources to gain a competitive advantage and to be the

leader in the market differentiation. It is the act of designing a set of meaningful differences top

distinguishes the companys offering from competitors offering. The number of differentiation

opportunities varies with the type of industry.

First is volume industry. Companies can gain on only a few but rather large, competitive

advantage. In the construction-equipment industry, a company can strive for the low cost

position or the highly differentiated position and win big on either basis. Profitability is

correlated with company size and Market share.

Second is stalemated industry. It is mean one in which they are a few potential

competitive advantages and each is small. Profitability is unrelated to the market share. Third is

fragmented industry. One which companies face many opportunities for differentiation, but each

opportunity for competitive advantage is small. Fourth is specialized industry. One in which

companies face many differentiation opportunities, and each differentiation can have a high

payoff, some small companies can be profitable as some large companies. Lastly is Product

differentiation. Physical products vary in their potential for differentiation at one extreme.

McDonalds also find product that allows little variation for example is chicken. The other

extreme products there are products which are capable of high differentiation, for instance are

car. It is how many products the company produces and for how long does have to be in the

market before we can introduce new ones. It depends on how long the products are in the market.

In a new market, McDonalds prefer not to have too much in order to be consistent with the

public knowledge. Few products at first are always a better strategy. For instance are McDonaldsintroducing Big, quarter, pounder, and filet o fish. Eventually they introduce more products such

as Mc royal, Mc feats, Double cheeseburger after a certain period when the people are familiar

with the old product which is Happy Meal. It is the quality of the product and what are the steps

taken by the firm to have the maximum quality using the available resources.

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When McDonalds start with a few products, it is also increase the quality of the products.

Quality requires several needs. Purchasing a product has to be done in a very organized way and

it has to pass all the health procedures. They conduct a training program for all the crew in the

kitchen so they can make sure that they have good sanity and have the knowledge of the all the

required measurements. All this makes sure that quality is food. Taste Is how the consumer

perceive the product even he likes it or not and if he things that it needs improvement or not

McDonalds company get the right ingredients and the right portions of ingredients either locally

made or imported to make sure that we are serving the right product and the same taste expected

worldwide.

In some countries after a few years, McDonalds try to offer special product with local

taste such as spicy chicken and burger in Egypt, Japan with Japanese sauce, and China with

sweat and sour. They try to adapt to the local taste in few items and to keep our international

flavor as well. They have standard size internationally. Size is very important. The more the

client pay in a big size the more it is profitable as they save more on paper cost. The more the

size is bigger the more they can save the cost.

Other than that is service differentiation. When the physical product cannot easily be

differentiated, the key to competitive success may lie in adding valued services and improving

their quality. For example is ordering ease. This refers to how easy it is for the customer to place

on order with the company. For instance, McDonalds give the best for a customer to take a

product in the right timing. The product must be ready, this needs a lot of experience .The

employee behind the counter has to see what the product the most wanted is so he can tell the

Back area to increase a certain product. A harmony between the crew has to exist in order to

satisfy the customer needs. When there is a lot of traffic or the restaurant is full, it is easier to

produce the product in a better quality. The difficult part is when it is a slow day part in this case

the employees have to entertain the customer so that he will not feel board.

Instead of that, drive trough. McDonalds have only one lane but it has to be very wide in

order to have two cars or if one car wants to leave the line. They have to provide good and quick

service. The stand has to be equipped with a mic in order to make the order, when the client

reaches the second window the meal should be ready to be delivered. Drive through gets 35%

more sales than any restaurant as it has accessibility and good service. The disadvantage of the

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drive through is the big size of the required building which will increase the capital needed.

Other that is delivery. Delivery refers to how well the product or service is delivered to the

customer it includes speed accuracy and care attending the delivery process, buyer will often

choose a supplier with a better reputation for on time delivery. McDonalds also introduced home

delivery .They try to make a good service so the consumer can receive a hot meal in a short time.

They also make sure that all the outlets conduct delivery service to the decrease the radios of

each restaurant. Usually they have two to three lines with waiting calls and around five to ten

motorcycles. We have also more drivers than the number of motorcycles to make sure that if one

did not show he will be immediately replaced.

McDonalds also make personnel differentiation. Companies can gain a strong

competitive advantage through having better trained people and screen people before they enroll

them and give the proper local and international training and on job training. All job skills are

taken into consideration as competence and how to be accurate to customer requests. Courtesy

and friendliness are very important aspects in the personnel, Credibility is expected from the

crew to match customer expectation by providing good service and also reliability,

responsiveness are also very important to serve the client immediately with his order. The greater

the responsiveness in a fast food business the better image and the frequency of repeat visits by

the same customer are achieved. Communication is important between the crew and the mangers

to provide better, fast service to customer.

Image differentiation buyers respond differently to company and brand images. Identity

and image needs to be distinguished. Identities compromise the ways that a company aims to

identify or position itself or its products. Image is the way the public perceives the company or

the product. Images are affected by many factors beyond the company's control. An effective

image does three things. Firstly, establish the product's character and value position. Second is, it

conveys this character in a distinctive was so as not to confuse with competitors. Thirdly is, it

divers emotional power beyond a mental image.

Analyze consumer behavior buy the product of Mc Donald

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Consumer behavior is defined by Blackwell, Miniard and Angel (2001) as activities

people undertake when obtaining, consuming, and disposing of products and services. It is this

behavior, and how it can be influenced that will be analyzed in this section.

The primary objective is to find out how potential customers respond to different

advertising techniques. This is because, a company in order to achieve its marketing and

advertising goals needs to create and promote a USP (Unique Selling Point) to its target

audience. To maximum its return on marketing and advertising it must understand consumer

behavior.

A company will therefore, design their marketing strategies around the factors that will,

ultimately, influence consumer behavior. According to the model of consumer behavior devised

by Assael, 1992, the consumers buying decision is influenced by a number of factors i.e. the

individuals previous buying experiences, their current desires, environmental influences (e.g.

culture, social class) and the impact of various marketing and advertising campaigns.

The individual consumers choice is determined by such things as age, occupation,

demographics, personality and lifestyle. Also, brand loyalty, preconceived thoughts about the

products and services and competitors also contribute to this factor. The environmental issues

that may affect consumer decisions can include culture. According to Kotler culture is the mostfundamental determinant of a persons wants and behaviors and embodies the norms, beliefs,

artifacts and customs that are learned from society and that constitute its values

Evaluate the effectiveness of consumer behavior

Consumer decisions are influenced further by four psychological factors:

MOTIVATION

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One of the most popular theories about motivation was devised by Abraham Maslow. His theory

bases human motivation upon a hierarchy of needs a person faces. Ranging from basic needs

such hunger, thirst and sex all the way through to self-actualization. Maslow sought to explain

why people are driven by particular needs at particular times

ATTITUDE

Actually attitudes are learned predisposition to behave in a consistently favorable or

unfavorable way with respect to a given object. Thus, attitudes can be learned predisposition,

consistency, and occur within a situation.

Attitudes can be learned predisposition is based on the experienced of the customer. And

the customer have the intention to purchases the product for the next time because they already

experiencing to use the product before this. For example, when the customer likes the product,

they will buy for the next time.

Then, attitudes have consistency with the behavior they reflect. However, attitudes are

not necessarily permanent. For example, Ali is loyal with Proton brand car, but one day he thinksthat the car is lowest quality and he more prefer to the Toyota brand car.

Attitudes also can occur within a situation which is event or circumstances at a particular

point, influence the relationship between an attitudes and behavior. For example, husband and

wife, wife dislike durians, but after married, wife learn to eat durians slowly.

Mc Donald consumer behavior attitude formation : for years people in India have

followed the same Traditional food habits. Emphasis has always been given on the nutrition

content of the food. Our values and beliefs have been carried forward from ages.

Mc Donald consumer behavior attitude change: Now the emphasis is more on the taste

than the Traditional nutrient values. With large no of entrants in India, the consumption pattern

of peoples that have completely changed.

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Then, addition of good quality food in market, the mind set of people are changing and

they accept these fast food joints a good place to enjoy their meals.

PERSONALITY

Personality can be defined as inner psychological characteristics and that both determines

and reflects how a person responds to his and her environments.

Personality can divide into three, which is personality reflects individual differences,

personality consistent and enduring, and personality can change. Personality of reflects

individual different is willing to accept the risk of doing something new or different.

Then, is personality consistent and enduring is personality of consumer which

unchanged. The marketer cannot change the personality of consumer, but they can know the

personality of consumer and find the way to influenced the consumer.

Personality can change is depend in the certain circumstances. Individual may altered by

major life event like married. The personality not only changes because of event, but also

because of maturing.

Mc Donald consumer personality is depend for gender and age. The personality of

customer which busy working person more likely to come to Mc Donald often because did not

want to waste their time and proceed with their work after lunch.

This is the one of personality which can get what they want when go to Mc Donald and

Mc Donald think that, by providing Mc Value Lunch, will encourage this personality of person

to consume Mc Donald food than other. Besides that, Mc Donald indirectly change the

personality of the customer which more loyal to KFC or other food which more expensive than

Mc Donald and did not provide Mc Value Lunch.

Cross-cultural analysis also suggests that residents of different countries have a national

character, or a distinct set of personality characteristics common among people of a country or

society. Personality characteristics are often revealed in a persons self-concept, which is the way

people see themselves and the way they believe others see them.

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EVALUATE THE EFFECTIVENESS OF CONSUMER BEHAVIOR

ATTITUDES

The evaluation of the consumer attitudes among Mc Donald product is depend in the

attitudes of the consumer at that time.

The first attitude that common occur to the consumer is learn predisposition. This

attitudes show that, if consumer experiencing of eating the meal of Mc Donald and feel the meal

is not bad or delicious, that person will think why he or she try again the product for the next

time.

Secondly, the attitude that influences the consumer in doing the decision making is by the

consistent and enduring attitude. This type of attitudes is known as loyal customer. Which only

concern to consume only certain brands. For example, Ali want to save his money, before this he

only go to KFC to enjoy their meal. Because of economic problem, he not effort to eat KFC and

force to eat Mc Donald which is cheaper than KFC, like Mc Value Lunch.

Attitude influences by the situation is which two couples whom have different interest

will satisfied each other and give and take. This types of attitudes can attract tha Mc Donald to

influence this attitudes of consumer. For example, provide chicken and beef prosperity burger.

PERSONALITY

Evaluation of the consumer for Mcdonald based on their personality is can be divide by

three group of Mc Donald consumer, which is individual different, consistent and enduring, and

personality can change. There have three types of personality that evaluate by the marketer of

Mc Donald.

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The easy personality which can capture by the Mc Donald is reflects individual different,

this types of personality willing to accept the risk. So, this types of consumer is being more

targeted by the company.

Personality consistent and enduring person make company difficult to attract this types of

people or influence it to accept the company meal. But the advantages for the customer if the

customer consistent and enduring the Mc Donald. For the personality which consistent with the

other company meal, can attract by the Mc Donald by known well their customer personality.

Personality can change, this situation make the Mc Donald to provide the each level of

the meal and suitable to the all ages of the consumer and standardized. Actually personality can

change not only because of situation. But also can change because of the maturity level of

someone.

CONSUMER PERCEPTION

McDonalds restaurant is a part of service and enjoyment marketing. McDonalds is the

leading global foodservice retailer with more than 31,000 local restaurants serving more than 58

million people in 118 countries each day.

McDonald using store image strategies means that they influence the shopper mind based

on the functional qualities of a store such as product offerings, store layout, store location, price-

value relationship and other such qualities that the consumer can somewhat objectively compare

to competitors or physiological attributes which means refer to consumers perception of the

store attributes, such as friendliness and helpfulness of store personnel or attractiveness of dcor.

Store image is the summation of all the attributes of a store perceived by the customers through

their experience of the store.

An element of product positioning is an important to evaluate the consumer behaviortowards the products. In this case, McDonalds try to occupy the products through in the mind of

customers. So that it will help them to increase the perception of their product in the mind of

customers. This restaurant is also use umbrella positioning to create the overall image of the

company around which a lot of products can be featured individually. The positioning

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approaches include Your deserve a break today at McDonalds, Nobody can do it like

McDonalds can and Good times, Great Taste.

CONSUMER MOTIVATION

McDonalds used strategy by determine the needs and want of customer with their

product. Based on that, they can analyze what type of product that they want. It based on the

Maslows Hierarchy of Needs. From that, they can know the main need is physiological need, so

they created the food product to fulfill the needs of customers. Trend of lifestyles nowadays

make them to choose fast food product because lot of works that they want to do. So it is

strengthens that this restaurant have when produce their product. They create delivery service to

increase the customer that does not have enough time to go to their restaurant. Usually they

target to customers such as children, teenagers and family to buy their product. These strategies

will success because demand of the product based on this target market is highly.

EVALUATE THE EFFECTIVENESS OF CONSUMER BEHAVIOR

CONSUMER PERCEPTION

Consumer perception that McDonalds use to attract the customer based on figure and

ground. So the customer will interpret the figure and ground based on their perception. If the

perception positive, it will help the restaurant to come out with brand image of their product.

They created the variety of product that the customer can choose what type of menu that they

want to eat. It is because customer will judge the menu based on the information such as

advertisement, the color, size or flavor of the menu (intrinsic) while other extrinsic such as price,

store image, brand image and service environment.

CONSUMER MOTIVATION

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Motivational research is important to McDonalds to gain deeper insight into the whys of

consumer behavior than conventional marketing research techniques can yield. From the

research of motivational behavior, this restaurant can reveal unexpected consumer motivation

concerning product or brand usage. So this restaurant will develop new strategies based on

consumer reaction towards their product.

This research provide consumer researchers with basic insights that enable them to design

structured, quantitative marketing research studies to conduct on larger and more representative

samples of consumers. For instance, they provide the questionnaire to evaluate the consumer

when enjoy their meals at their restaurant.

CONSUMER INFLUENCES AND LEADERSHIP

McDonald's brand has been successful in selling hamburgers and fries. Having committed

people and happy customers they have been able to employ many people around the world,

giving people a choice of career. During this time there has been much change in the industry,

both in customer's habits and opinions and choices of employees. McDonald's has used a very

directive style of leadership, which has made it quite successful and has worked well. However,

it has failed to adjust to its new surroundings, some being lifestyle, education and the knowledge

of its people. The directive style of leadership is seen to be tired and old fashioned.

There are two theories adopts by McDonald's restaurant managers. First is situation theory.

This theory has been based on the idea that leaders need to alter their behaviours depending on

situation being the readiness of the follower. The theory focuses on two behaviours being Task

Behaviour and Relationship Behaviour. To make these behaviours effective, the report looks at

the follower's readiness and the ability to accomplish a task .The two behaviours face different

obstacles at times, so the four leadership styles, telling, selling, participating and delegating are

used to make sense of the leadership style that has been used to accomplish a task. There was a

need for the company to remove the directive style and introduce more of a somewhat participant

style of leadership.

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Second is Path-Goal Theory. It is described the influence in motivation and job satisfaction

of subordinates, the theory is focused on the way leaders influence its subordinates. It is looks at

how the perception of the subordinates is affected by the leaders behavior, these being,

directive, supportive, and participative and achievement orientated. Having such a scale of

possibility the report describes what the impact would be on subordinate's motivation, goal

attainment and job satisfaction.

Understanding the Situation Leadership Theory

Hersey and Blanchard had developed a Situation Leadership theory based on the idea that

leaders need to alter their behaviours depending on one major situational factor the readiness of

followers. It focuses on two behaviours which are Task Behaviour, the leader's tendency to spell

out duties and responsibilities of the group and Relationship Behaviours, how much the leader

uses two-way or multi-way communications, including listening, facilitating and supportive

behaviours.

Evaluating and Adopting the Situation Leadership theory at McDonald's

Although McDonald's as a company has provided the tools and materials for

management in their training, it has lacked the knowledge that people and times have changed.

From being a trainee manager to becoming a restaurant manager, Task Behaviour was a strong

practice. McDonald's head management spelled out the duties or responsibilities and also

emphasized what the outcomes would be. Been able to voice an idea or provide an opportunity to

clarify issues was not possible. The question of retention of management was becoming a

problem, as restaurant managers were becoming more educated on what else could be done to

improve situations, and be a participant leader. Restaurant managers knew the business betterthan department heads or consultants because the restaurant manager was more involved in the

day to day operations of the business. The need for restaurant managers to use more of a

participant leadership style was important for the company's move into the future. Leaders such

as consultants needed to realise that a task would be completed quicker and faster when a

decision was made directly by a restaurant manager, rather than going through a variety of

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channels. Creating that satisfaction of self involvement in the business leads to happier

followers. As the ladder of management grows so does the ability of the manager to take

responsibility, but their willingness to do so does not grow. The need for two way

communication and collaboration is most important during 'participation' to ensure smooth

operation. Finally being able to 'delegate' is the key to experienced and senior management, the

ability to be given a task and being able, willing and confident to complete the task with little or

no direction or support. Although it seems that Situational Theory outlines some strong

leadership styles, restaurant managers may also practise other theories.

Understanding the Path-goal Theory

Path-Goal theory is a leader behaviour that can influence motivation and job satisfaction

of subordinates. It is closely associated with the expectancy theory and focuses on the way

leaders' influence subordinates' perception of work goals and paths to achieve both work and

personal goals. This theory argues that the perception of subordinates is affected by leader

behaviours, directive, supportive, participative and achievement orientated.

Evaluating and adopting the Path-goal theory at McDonald's

McDonalds is faced with the question, of "what else can we do to make our restaurant

managers happy and work for the companies goals?" Incentives were great but not as attractive

any more, compared to what duties needed to be completed. For a long time restaurant managers

were given directive leadership which seemed to be quite a successful style. The reward and the

performance of a duty were linked to ensure that a restaurant manager had a reason to complete

the task. Expectancy to increase performance improved and so did the reward expectancy.

Granted, there has been a change in people's lifestyle and the thought of working twice as hard is

not anymore as it was ten years ago. Incentives need to be favoured to individual needs and

realistic to achieve, with a work load that does not affect the individual's lifestyle. A Leader's

directive behaviour is no longer attractive to subordinates. Participative and Achievement

orientated leader behaviours are what will motivate and job satisfy today's restaurant managers in

McDonald's. Both these behaviours require the involvement of both sides of management the

leaders and the subordinates.

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Reference group and family influences

The study of groups and their impact on the individual is of great importance to

marketers concerned with influencing consumer behavior. As related to the to the reference

group, McDonalds were success to influence the group behavior. For instance are friendship

groups, shopping groups, work groups, virtual groups and also consumer-action groups.

The reference group appeals most commonly used in marketing is celebrities, experts, the

common man, the executive and employee spokesperson and the trade spokes character.

McDonalds used the trade or spokes-characters as well as familiar cartoon character, serve as

quasi-celebrity endorsers. These trade spokes-characters present an idealized image and dispense

information that can be very important for the product or service that they work for.

For McDonalds, trade characters serve as exclusive spokesperson for a particular product

or service. They sometimes provide a kind of personality for the product or service and make

product appear friendlier. For instance is Ronald McDonald.

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RECOMMENDATION

Communication and consumers behavior strategy

1. Preferred Channels of Communication

For McDonalds psychographic segmentation and the need of passing different messages,

the HEALTH campaign. It will focus on advertising on TV or radio or magazines, print such as

brochures, posters, scientific reports and public relations such as event, endorsements, and some

new channels like internet and cell phone.

2. Communication Strategies and Promotion

Introducing of a new clown.

Ronald is now familiar with white-face, in a canary-yellow jumpsuit, and a fire-engine

red wig. Ronald is still being strategically re-fashioned. In 1998, refashion Ronalds hair and

increase the width of the red stripes on his socks. The idea is to introducing the new endorser

into Mc. Donald, called Ronnie. We would like to represent the healthier food with Ronnie.

Ronnie is the same exact character like Ronald, the only thing that differentiate the two of them

is their color. If Ronald has red to dominate his cloth, Ronnie has green. The color green

represents life; Abundant in nature, green signifies growth, renewal, health, and environment

The strategy is to put them together in every occasion so that people will notice that here in Mc.

Donald, we have something new to introduced that is healthy foods such as Salad topped with a

grilled or crispy chicken breast, salad with free choice of Newman's Own all natural salad

dressings, two sides of vegetables with each salad purchased. A Fruit and Walnut was added in

2005 that provides 2.5 servings of the daily recommended fruit for adults.

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Healthy Meal Package

The idea is to offering packages which have salad included with the cheaper price. The

cheaper price for this salad packages have an objective to attract the existing consumers to

switch their behavior to become healthier food with the lower price offered.

The lower price is the tool forreinforce the consumerto consume more healthy food.

Free Sport Coupon

This strategy is made for the existing consumers who like to consume less healthy food in

Mc. Donald: after the fifth times they come to McDonald, they deserve for swim free coupon.

This free coupon will give the consumers a chance to exercise themselves and change their

behavior toward exercise. McDonald has to collaborate with the existing sport center to build

this strategy.

This strategy is a form of positive reinforcement with reward. The consumers expected to learn

that exercise is really good for their life style balance.

Two meals at one price

Another way to get an effective communication strategy is through buzz marketing. With

this strategy we can get lots of advantage because the consumers themselves who do the

marketing for us. The only matter is we have to create the right buzz and deliver it to them

correctly; otherwise the buzz marketing will goes to another way than we expect it.

To create buzz, we planned to make an event for six months where people can buy two meals at

one price in the particular hours. Since they can buy two healthy meals, they have to buy the

food and eat in the restaurant and no take away. This event will encourage people to search for

their pair to eat together in McDonald. This will create the buzz because the only way to get the

discount, they have to find their pair at that time. Think about how many people will search for

their pair and create the buzz for McDonald about the healthy hours in McDonald.

Donations

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People will feel good when they generate their money for other people who need it. With

this consumers behavior we can create the donation program. For every healthy food that they

buy from McDonald, we will generate 1% from the total amount of the transaction. This program

expected to create a good buzz about McDonald especially the healthy menu in McDonald. This

event can change McDonald image in the society, they will notice that McDonald do have

healthy menus.

Negative Reinforcement.

We are also using advertising as our strategy to change McDonalds consumers. In this

case, we use negative reinforcement. People will shown the negative impact if they never take an

exercise on their daily routine. The audiences are expected to avoid the scene with start to

change their behavior with buy healthier food and/or exercisemore.

Cell Phone

Everybody has a cell phone right now. In 1994, 16 million Americans subscribed to

cellular phone services. Today, more than 110 million Americans are subscribers. Some experts predict that worldwide subscribership reached 1.2 billion people by 2005

(http://www.networkworld.com). This means we can use cellular phone in our campaign and

become more effective to communicate our message that McDonald has health menus. With this

campaign, expected the audience will notice about the new McDonald and start to buy healthy

food in McDonald.

Merchandising, credit card and on line order.

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As we know, McDonald produces many types of merchandise for their young consumers.

We just like to add organic icons for their merchandise such as fruits and vegetables. We also

will give free salad for consumers who pay with the credit card or on line orders. This

reinforcement should communicate the message that McDonald is now selling the healthy food.

Consumer behavior to consume the Mc Donald depend with certain situation and

behavior of customer like attitude, personality, perception, motivation, leadership, family,

learning and classical theory toward the product.

The Mc Donald has the seasonal product. This factor make the customer who loyal and

like this seasonal switch to the other restaurant which similar with the seasonal product. So, the

Mc Donald must have fixed the product produce when the products get the positive feedback

from the customer like prosperity burger.

Secondly, they need to improve their customer service. It is important to make sure the

customer more comfortable to enjoy their meals at the restaurant. So, they should create training

program to all their staff to enhance their knowledge. For instance, this training program should

include the basic thing how to greet customer when they come to the restaurant. Customer

perception toward the restaurant is important to maintain their credibility of the restaurant.

Next, they should make the standard of the menu for each franchise. They should give

proper guideline to all franchisee about the standard of the menu. For instance is the size, flavor

and others. It is because to give fully satisfaction of the customer. The customer should pay the

same price, so that they have to make the standard of the menu.

Lastly, consumer can change the personality based on situation and maturity. For

example, if one person like Mc Donald before married will switch to other restaurant after

married because Mc Donald not convenience for the family because not provide family bucket.

So, the Mc Donald should have bucket meal to attract this type of personality person.

CONCLUSION

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Strength

The strength of Mc Donald are McDonalds has built up huge brand equity. It is the No. 1

fast-food company by sales, with more than 31,000 restaurants serving burgers and fries in

almost 120 countries. Sales, 2007 (11, 4009 million), 5.6% sales growth. Good innovation and

product development. It continually innovates to retain customers in the business. The

McDonalds brand offers consumers choice, reasonable value and great service large amounts of

investment have gone into supporting its franchise network, 75% of stores are franchises. Loyal

staff and strong management team. McDonald's has been a thriving business since 1955 and 20

of the top 50 corporate staff employees started as a restaurant level employee. In addition, 67,000

McDonalds restaurant managers and assistant managers were promoted from restaurant staff.

Fortune Magazine 2005 listed McDonald's as the "Best Place to Work for Minorities."McDonalds invests more than $1 billion annually in training its staff, and every year more than

250,000 employees graduate from McDonald's training facility, Hamburger University.

The business is ranked number one in Fortune Magazines 2008 list of most admired food

service companies. One of the worlds most recognizable logos (the Golden Arches) and spokes

character (Ronald McDonald the clown). According to the Packard Childrens Hospitals Center

for Healthy Weight children age 3 to 5 were given food in the McDonalds packaging and then

given the same food without the packaging and they preferred the food in the McDonalds

packaging every single time. McDonalds is a community oriented, socially responsible company.

They run Ronald McDonald House facilities, which provide room and broad, food and sibling

support at a cost only $10 a day for families with children needing extensive hospital care. They

are a global company operating more than 23, 500 restaurants in 109 countries. By being spread

out in different regions, this gives them the ability to weather economic fluctuations which are

localized by country. They can also operate effectively in an economic downturn due to the

social need to seek out comfort foods. They successfully and easily adapt their global restraints

to appeal to the cultural differences. For example, they serve lamb burgers in India and in the

Middle East; they provide separate entrances for families and single women. They have an

efficient, assembly line style of food preparation. In addition they have a systemization and

duplication of all their food prep processes in every restaurant. McDonalds uses only 100% pure

USDA inspected beef, no fillers or additives. Additionally they produce is farm fresh.

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McDonalds serves 100% farm raised chicken no fillers or additives and only grade-A eggs.

McDonalds foods are purchased from only certified and inspected suppliers. McDonalds works

closely with ranchers, growers and suppliers to ensure food quality and freshness.

Some types of evaluation such as media clips, phone calls, surveys, blogs, interviews or

reviews can be efficient ways to evaluate and research further about McDonalds communication

performance and prepare for improvement all the time. To conclude we would say that the voices

of the people as those health advocates and other communities cannot be stopped and there is no

end of this game. These issues would be raised again but what we need is to change the

consumers attitudes. We can maximize our wealth by changing consumers attitudes. And by

following this communication strategy we can make our all stakeholders happy.

Weaknesses

There are some weaknesses of this restaurant. Firstly the core product line out of line

with the trend towards healthier lifestyles for adults and children. Product line heavily focused

towards hot food and burger. The company frequently accused of selling junk foods with too

much fat and poor nutritional quality, has eliminated some of its super sized offerings and begun

selling more salads. So they offer apples as dessert alternatives to calorie- laden pies.

Other weaknesses are the quality issues across the franchise network. Different franchise

restaurant will different the quality of product. It is including with the presentation of food. For

example, set of fried chicken has different with the size of the chicken but same price. It will be

biased for this restaurant if they do not improve the quality of the menu. In terms of the service

environment, there are no standardized with their service. The company should give more

training program to improve their customer service. It is because it very important to maintain

their reputation in the market.

Opportunity

Mc Donald has many opportunities whish make the company unique which is joint

ventures with retailers (e.g. supermarkets). This factor make Mc Donald has many opportunities

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to market the company product besides can be drive the customer to try the meal when saw the

shop twice and more. Consolidation of retailers likely, better locations for franchisees.

Respond to social changes - by innovation within healthier lifestyle foods. Its move into

hot baguettes and healthier snacks (fruit) has supported its new positioning. The Mc Donald meal

consists of the meal which has high quality of healthy.

Use of CRM, make database marketing to more accurately market to its consumer target

groups. It could identify likely customers (based on modeling and profiles of shoppers) and

prevent brand switching. This can secure the customer which has the personality changes depend

with situation.

Strengthen its value proposition and offering, to encourage customers who visit coffee

shops into McDonalds. McCafe strategy analyze the personality which suitable for the customer

which have the consistent personality, for example the person which only visit coffee.

The new formats, McCafe, having Wifi internet links should help in attracting

segments. Mc Donald attracts the customer by installing childrens play-parks. The Mc Donald

also focuses on educating consumers about health, fitness.

Besides that, Mc Donald focus on corporate social responsibility, reducing the impact on

the environment and community linkages. Mc Donald also expands the business by involved

international expansion into emerging markets of China and India.

Threat

First threats are fabricated stories about the quality of our chicken. E-mails and

websites have published fabricated information that McDonalds is using monster-chickens in

its products. McDonalds could build on its open door policy with the press and apply it to the

web, to combat false distribution of information.

Second are unhealthy foods for children. If competitors begin to offer premium healthy

alternatives for children with small gifts to encourage them to eat healthy, this would be a

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significant threat to McDonalds. McDonalds positive strategy to provide a range of healthy

products could include healthy products for children.

Other than that are health concerns surrounding beef, poultry and fish .There are

various initiatives working against hormone induced cows and other issues such as bird flu

epidemics and heavy metal levels in fish could reduce McDonaldss sales and cause profits and

its share price to fall. McDonalds could use its purchasing power to its advantage to source

supplies that are healthy and at low prices.

Fourth is labour exploitation in China .Chinese manufacturers exploit labour in their

production of Happy Meal toys. McDonalds could use its purchasing power to its advantage to

demand that manufacturers provide toys without exploiting labour.

Lastly is contributor to global warming. It is because McDonalds is the largest

consumer of beef. Greenfields used to supply this beef comes at the expense of rainforests, heavy

use of chemicals, fertilizers and pesticides. McDonalds could use its purchasing power to its

advantage to source CSR suppliers.

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