Case Background
McDonald’s has 31,377 restaurants in 118 countries around the world. Its current stock price is $63.63 with a market capitalization of 71.56 billion. The largely successful restaurant decided in 2003 to combine its media-buying operation, which is responsible for nearly $1 billion in advertising each year. The reason McDonald’s combined their media-buying operation was not to cut cost, but to become “the most powerful voice in advertising, to be more effective.” To assist with facilitating the goal set by the company, McDonald’s launched a marketing campaign with a tagline of “I’m Lovein It.” It was one of the most successful marketing campaigns ever lunched. It was created by Heye & Partner, a longtime McDonald's agency based in Unterhaching, Germany, and a member of the DDB Worldwide Communications Group, Inc. McDonald's Canada's corporate website states that the commercial campaigns have always focused on the "overall McDonald's experience", rather than just product. Furthermore, McDonald’s have never in their advertising history used negative or comparison ads pertaining to any of their competitors; the ads have always focused only on McDonalds alone. In addition to their ad campaigns, McDonald’s changed the focus of their menu to a healthier approach for their customer base.
Analysis of Issues: SWOT Analysis
McDonald’s is one of many restaurants within the fast food industry facing challenges to improve their menus, cook with healthier ingredients, changes the ways in which food is prepared, and improve the overall customer experience. McDonald’s must change in the mist of increased competition and decreased profit margins. However, management has made changes to improve the menu and stores which are bring the customers back to ...