McDonald’s Perfect Pair Contest:

To celebrate the perfect pairing of strawberry and lemon in the New McCafé Frozen Strawberry Lemonade, McDonald’s USA is asking customers to team up with a friend, co-worker, relative or significant other to answer the question – what makes you McDonald’s Perfect Pair? One grand prize winning pair will split a $5,000 travel voucher for a dream vacation, along with $5,000 in cash. In addition, two runner-up pairs will each receive $1,000 in McDonald’s Arch Cards, $500 for each person.
From May 9 through May 15, consumers can enter McDonald’s Perfect Pair Contest by Tweeting @McDonalds explaining why they are McDonald’s Perfect Pair. Contest entries must include the hashtag, #McDFSLPairs, the official link to the contest rules http://bit.ly/hK0wCH and the Twitter handle of the other person that makes up that pair to be considered.
Entries will be evaluated by an expert judging panel, who will choose 10 finalist pairs to advance to the contest’s second round, where customers will then be asked to select a grand prize winner by voting on their favorite pair’s video submission. NO PURCHASE NECESSARY TO ENTER OR WIN. For complete Official Rules, restrictions and prize info, please visit: www.mcdonalds.com/McDFSLPairs.

McCafe Frozen Strawberry Lemonade Added to McDonald's McCafe Line of Beverages

Today, customers can visit McDonald’s restaurants in Atlanta and across the country to experience the newest blended ice beverage on the McCafé menu - Frozen Strawberry Lemonade. McCafé Frozen Strawberry Lemonade is a unique twist on an old favorite, combining tart frozen lemonade with sweet strawberry syrup swirl.
To celebrate the launch, all Atlanta-area McDonald’s will be offering small-sized Frozen Strawberry Lemonades for $1 through this weekend (Sunday, May 15).
“Especially considering the forecast coming up this week in Atlanta, the new Frozen Strawberry Lemonade is a great, refreshing addition to our line of McCafe beverages,” said Vicki Chancellor, Vice President of the Greater Atlanta McDonald’s Operators Association. “We’re glad to add one more reason to make McDonald’s the premier beverage stop for thirsty Atlantans this summer.”
This new menu innovation is available in small (12 oz.), medium (16 oz.) and large (22 oz.) sizes, and features a taste profile unlike other products currently on the McDonald’s menu, coupling together two of America’s favorite flavors – strawberry and lemon.

Ch 7- Business Marketing

"Business Marketing is the marketing of goods and services to individuals and organizations for purposes other than personal consumption." Mcdonalds focuses on its strategic alliances with suppliers for their coffee. Along with their great marketing skills they still need to maintain the great alliances they have for their new McCafe line.   

McDonalds and McCafes in many national markets are part of the rainforest alliance. All McDonalds outlets and McCafes in Ireland and Australia for two examples offer only Rainforest Alliance coffees.

So far in the U.S. markets Franke Espresso Super automatics are being installed along with Bunn brewers. Three roasters are now the primary coffee suppliers for the U.S. McDonalds and McCafe outlets. They are located regionally: Gavina, Vernon, Califorinia, distant lands of Tyler, Texas; and S&D coffee of Concord, North Carolina.

S & D is currently the largest supplier of McDonalds' coffee plus all of its tea. According to Distant Lands, the McCafe rollout took six years of preparation, closely working with a McDonalds team to realize a unique espresso taste. These roasting companies are privately held and maintain their own ongoing coffee roasting and packaging activities, for their own brands or for the store brand/private label sectors. F. Gavina & Sons, owned and managed by the Gavina family, reportedly generates 100 million dollars in sales, of which 15% is from McDonalds. Gavina sources coffee to more than 3,000 McDonalds/McCafes in the western U.S.

McCafe is not just for McDonalds to become excited by, the entire coffee industry from trees to bars to office and vending services to store shelves ought to be caught up in this major new development, potentially the most vigorous coffee sales initiative since Starbucks' rise. Espresso, especially with McCafe, is gaining a vast new drinking market. And it might as well bring a significant young market to the drink, which coffee needs. Certainly no one should doubt the power of McDonalds or its new commitment to coffee. Here again we watch what could be a brighter future in the brewing for coffee.

mcdonalds commits $100 million to coffee war

http://www.msnbc.msn.com/id/30583933/ns/business-consumer_news/t/mcdonalds-commits-million-coffee-war/ 

NEW YORK — Specialty coffee retailers, now including the nation’s biggest hamburger chain, are hoping new ad campaigns and price cuts that start this week will entice more latte lovers to take a sip.

McDonald’s Corp. on Tuesday began a more than $100 million marketing campaign including TV, radio, print, online and outdoor ads for its McCafe line of espresso drinks. The drinks are now being rolled out to the chain’s 14,000 U.S. locations.

The ads portray the drinks as the antidote to a miserable day and aim to get consumers to see the beverages as affordable, quality alternatives to lattes at more gourmet chains like Starbucks Corp. “We think that the timing is right,” said McDonald’s USA President Don Thompson. “We think the opportunity is right.”

Just two days earlier, Starbucks ran — on a full page in the Sunday New York Times — the first ad of its new campaign, which positions its drinks as higher in quality than the competition and less pricey than consumers might expect.

Starbucks sales have slid as consumers bypass lattes and other small luxuries to save money.

 

Video: Dollar menu bringing in a lot of dollars

 

The company has been trying to appeal more to value-conscious consumers to bring sales back up and announced Tuesday it will sell grande iced coffees for $1.95 — 25 cents to 45 cents less than usual. Most of the chain’s prices vary by location, but all company-owned stores will sell grande iced coffees for $1.95 through June 29.

Jean-Pierre Dube, professor of marketing at the University of Chicago Booth School of Business, said it is “extremely important” for McDonald’s to advertise their new drinks right now during the recession because they cost slightly less than others in the sector.

McDonald’s and Starbucks aren’t the only ones trying to bring in customers through ads or price cuts.

Dunkin’ Donuts said Monday its New York, New Jersey and Connecticut locations are rolling back latte prices about 15 percent.

 

A small hot latte will now cost $1.99, down from $2.59 on average, and a small iced latte will be $2.49, down from $2.79.

Flavors like vanilla or hazelnut can be added at no extra charge, the company said.

Dunkin’ is also offering its Chicago customers small lattes — hot or iced, with flavors added or without — for 99 cents beginning May 11 through June 20. Dunkin’ Donuts is owned by Dunkin’ Brands Inc., which also owns Baskin’ Robbins. Dunkin’ Brands is owned by Bain Capital, The Carlyle Group and Thomas H. Lee Partners.

Shares of Starbucks fell 10 cents to $14.14 in afternoon trading while shares of McDonald’s rose 59 cents to $53.36.

Ch 8- Segmenting and Targeting Markets

“Marketers use segmentation bases, or variables, which are characteristics of individuals, groups, or organizations, to divide a total market into segments.”  The key is to identify significant and assessable segments that attract different marketing mixes. Geographic segmentation is important when you are thinking of opening up a McCafe restaurant. We need to know what consumers are appealed to and arrange our McCafe to their taste. Marketers often use demographic segmentation because it is available and it is related to consumers buying behavior. Age, gender, income, ethnic background and family life cycle are all taken into effect when it comes to a new McCafe.  Young children, tweens and generation y are all likely to go to a mcdonalds, while generation y and x are more likely to visit the environment of a McCafe. I believe the most beneficial segmentation bases we should focus on are benefit segmentation. The one intention a marketer should have is to know your consumer is satisfied with the product they purchased. This focuses more on what the consumer needs and wants instead of focusing on their age or gender. When targeting consumers for McCafe we know what they want is a quick and affordable tasting coffee and that’s what they will receive.

Ch. 11 - Developing and Managing Products

The McDonald's starting of McCafe is an excellent example of diversification and new product development. By starting McCafe, McDonald's is offering new products that were not available in traditional McDonald's stores. McCafe specializes in serving cafes, which attracts customers that usually don't come to McDonald's to eat fast-food. McCafe is also not only a product development. McCafe has its own section of the store and clearly distinguishes itself from the traditional McDonald store. The store has a modern, yet relaxing mood. This is important to attract new market segments. Perhaps customers who go to a cafe don’t go to satisfy hunger, but possibly to take a sip of coffee and chat in a relaxing environment. Thus, McDonald's McCafe serves as an example performing diversification by developing both new products and new markets. 

Jan Fields COO of McDonalds was asked why are they opening up their new McCafe line and he answered "Drinks overall, beverages are a huge growing part of the business and from an industry standpoint, beverages make up $60 billion."          The McCafe idea was originally tested at McDonalds locations in Melbourne, Australia. The testing in Australia was successful. McDonalds restaurants who offer McCafe drink choices made 15% more profit than locations that did not. It eventually became the largest coffee chain in Australia. The same result happened when testing was expanded to New Zealand.

Ch 16- Integrating Marketing Communications

Promotional strategy sums up all the promotion elements in one: advertising, public relations, personal selling and sales promotion. McDonalds focuses on advertising to their target market by focusing on the overall marketing objectives. McDonalds uses mass communication to communicate with their audience. That is ideally the most efficient way for McDonalds to reach their large audience. By providing us with commercials and outside advertising we are fully aware of McDonalds and the message they are sending. The internet has made a huge impact on the marketing environment. You could simply search McDonalds and their website will come up with everything you need to know about McDonalds including their menu. They show the exact dates of when something new came to the menu. They even have a separate menu for the new MCcafe. 

Blogs have been a huge impact as well. “Noncorporate blogs are independent and not associated with the marketing efforts of particular brand or company.” For example there is a blog called mcchronicles.blogspot.com and it is simply about McDonalds  and not associated with them. “Mcchronicles” simply speaks about McDonalds  as a whole and their experience. Also other followers can comment on the blog. I just followed “mcchronicles” and it is quite interesting. I learned some things I never knew about McDonalds and it caught me by surprise. They also have a lot of their own personalized stories that are fun to read. I recommend looking into it and seeing how well it sums up McDonalds.

SECRET MENU!

Click on this link to find out some secret sandwiches that you could order at Mcdonalds.

 http://www.npr.org/blogs/waitwait/2010/05/10/126672420/sandwich-monday-the-mcdonald-s-secret-menu?sc=fb&cc=fp

Also check out the noncorporate blog: http://mcchronicles.blogspot.com/

Ch 10- Product Concepts

Product items, lines, and mixes are very essential when companies are trying to make a sale. It is unlikely that a company will sell one thing.  When McDonalds first opened they sold only burgers and fries. Their product line now is infinite. They sell anything from burgers to ice cream to coffee. Their new product line McCafe which is mainly coffee now sells smoothies as well. McCafes coffee line includes: McCafé Mocha, McCafé Caramel Mocha, McCafé latte, McCafé cappuchino, McCafé hot chocolate, McCafé iced mocha, McCafé iced caramel mocha, McCafé iced latte, McCafé mocha frappe, McCafé caramel frappe,  McCafé Wild Berry Smoothie,  and McCafé strawberry banana Smoothie.The product mix consists of coffees, iced coffees, frappes, cappuccino, and smoothies.  The product line depth for McCafe drinks totals 12 products.  Once you go to a McCafe they also have a whole pastry section available to go along with your coffee beverage.

 McDonalds and McCafe is also a global brand. They have restaurants all over the globe and they adapt to different cultures and local taste. Such as in the Dominican Republic they will sell platano chips with their burgers. Consumers like being familiar with their brands and once they see McDonalds they think of their trademark which could be a catchy phrase. McDonald’s uses the phrase “I’m lovin’ it” after every commercial or advertising. Consumers become more familiar with the trademark and it keeps them coming back because they know McDonalds is unique and different from other companies.



I also came across a couple of videos. Even though this would've been better to post during the global chapter I still found it interesting. The first video is a commercial from Germany which shows how they prefer Mccafe over other restaurants.

The second video shows a man actually recording his visit to a Mccafe in a train station in berlin, Germany. He shows the comfortable setting of the café and gives us a taste of his experience.

McCafé Motor Coach

I came across this website called tourmccafe. I had absolutely no idea McDonalds had used this technique to promote their new product line which is the Mccafe real fruit smoothies. This would be considered sampling which allows the consumer to try a product for free. Even though this event has passed I believe it definitely was a huge impact on trying to promote their new product.

“The tour will run from August through October 2010. For maximized national outreach, the tour encompasses nine primary markets and along the way makes “friendly drive-by” stops in 25 seconday markets throughout the East, Midwest, and South regions.  Developed exclusively for 2010 AACM McCafe program, the customized McCafe branded motor coach serves as the key vehicle for national smoothie sampling activities. The motor coach features a sleek interior lounge that is equipped to provide consumers with full McCafe brand experience."

 click on the link below to view the website:

 http://tourwithmccafe.com/index.html

Ch 18- Sales Promotion and Personal Selling

Sales promotion is a short term incentive that motivates consumers or members of the distribution channel to purchase a good or service immediately, either by lowering the price of by adding value. McDonalds and Mccafe are continuously trying to lower the price of a product instead of raising the price. They constantly use coupons or premiums to promote their product. A premium is an extra item offered to the consumer; usually In exchange for some proof that the promoted product has been purchased. McDonalds uses a premium when they sell happy meals which its tarket market is children and include a free toy with it. They also promote the toys according to new movies. For example if Toy Story 2 came out in theaters then they will also feature Toy Story toys in their Happy meals. Premiums can also include a two-for-the-price-of-one bonus pack. Since lent began McDonalds recently started the filet-o-fish premium where it is 2 for $3. They usually sell one for that price.

Mcdonalds uses traditional selling and advertising and sales promotion is more important than personal selling.  Mcdonalds sells a good or service at a low price and has many customers. Consumers know what they will expect when they enter a McDonalds restaurant because they are aware of it due to their advertising on televisions and billboards. They are also global so almost everywhere you go you will see a McDonalds. They try to build a relationship with their customers and by doing so they give us more and more reasons as to why we should go back to their restaurant. Another sales promotion McDonalds uses is giving their customers free products called and this strategy is also considered a game called a monopoly. The more and more pieces you get to the puzzle is a higher chance you have of winning a greater prize. McDonalds gives customers the opportunity to win prizes, money or anything on the menu. Whenever you buy fries or a soda you get a coupon attached to it and when you tear it out you win a prize.  

While launching a premium coffee line smack in the middle of a recession may seem counterintuitive, the debut of McCafe helped drive McDonald's second quarter sales. The chain announced a comparable U.S. sales increase of 3.5 percent and a 4.8 percent spike globally. CEO Jim Skinner, in a statement, gave credit to the chain's "balanced focus" on favorites like the Big Mac, beverage value offerings and the McCafe launch. "This is the weakest the restaurant in 28 years," said NPD restaurant industry analyst Bonnie Riggs. "McDonald's is one of the few that is faring well. They have a lot of marketing initiatives. It's not just the value menu. They are introducing a lot of new products.
  -Kenneth Hein

McDONALD’S CONTRIBUTES TO DISASTER RELIEF EFFORTS IN JAPAN

McDONALD’S CONTRIBUTES TO DISASTER RELIEF EFFORTS IN JAPAN

OAK BROOK, Ill. – McDonald’s Corporation today announced that it will contribute to the Japan disaster relief efforts with a donation of $2 million USD. The funds will channeled through the International Federation of the Red Cross.

“The devastation in Japan has stunned and saddened the global community, and we’re reaching out to help with this contribution,” said Jim Skinner, McDonald’s Chief Executive Officer. “We send our best to everyone affected by this disaster, including our employees and our customers.”

McDonald’s has 3,302 restaurants in Japan. As of this date, the vast majority of the restaurants are open; fewer than 300 remain closed due to damage or staffing issues.

Healing and Hope for Kids

McDonald’s believes in the power of community to transform the world. This is particularly true when it comes to empowering young minds and hearts. So, it’s natural that our charity of choice should be Ronald McDonald House Charities (RMHC). Since 1974, McDonald’s has continued to strengthen our support of RMHC through various means originating in all parts of the McDonald’s System. McDonald’s Corporation provides free use of facilities, equipment, materials and a portion of general and administrative costs for the global office of RMHC. This helps defray costs that RMHC would otherwise incur and allows donations to be distributed directly to grants and program services that benefit children.

McDonald’s franchisees, restaurant and regional staff members and suppliers provide additional funding and volunteer support. McDonald’s customers also support RMHC through a variety of fundraising events and programs, including donations in RMHC Donation Boxes and McDonald’s McHappy Day® – a global fundraiser that takes place each November.

Seventy-three percent of the most prestigious children’s hospitals in the world are supported by at least one of the RMHC core programs providing families and children much-needed access to health care.

Ch 17- Advertising and Public Relations

McDonalds mostly uses institutional and product advertising. When they came out with Mccafe they advertised their coffee with product advertising. They focused on one specific product; which is coffee. They also have smoothies and that was a huge product because it’s healthy, enjoyable and inexpensive. McDonalds also uses institutional advertising where they show their fast- food restaurant as a place of comfort and family outings. Also a common advertising appeal is convenience. Consumers want food and drinks that are convenient for them and they don’t have to make a stop for it. This is why McDonalds has a drive thru option. Another common executional style for advertising is “slice-of-life”. That is an advertisement that depicts people in their everyday life.  Whenever you want something fast or on the go you will get McDonalds. McDonalds also has the option of having birthday parties for children and the play area. This is convenient because you do not have to rent something expensive and buy a lot of food. Every child can have a happy meal and the adults can have Mccafe.

McDonalds uses every form of advertising out there; Newspapers, magazines, radio, television, outdoor media and television. Everywhere you go you will hear or see a McDonalds advertisement. Whenever I put on my television I come across a McDonalds commercial. McDonalds also uses public relations. They have a charity called Ronald McDonald House Charities (RMHC) that helps save children all over the world. They also offer scholarships to students. “Local Chapters of Ronald McDonald House Charities (RMHC), with support from RMHC Global offer scholarships to students from communities who face limited access to educational and career opportunities. These scholarships are part of RMHC's ongoing commitment to education.”

Ch 15- Retailing

McDonalds is a franchise with over 32,000 restaurants world -wide. To open up a new McDonalds it can cost anywhere from $511,000 to $ 1 million. The form of franchise McDonalds uses is a business format franchising which is a relationship with the franchisor and the franchisee. The franchisee must meet with all the requirements of the franchise and the franchisor expects all the requirements to be fulfilled according to the restaurant. 

Location is one of the most important aspects in the retailing mix. The proper location for a Mccafe would be any place where there are lots of students or workers. They want something instant and on the way since we are usually all in a rush to get to our destination. Malls are also great areas to place a Mccafe because while people are shopping they get tired and need a drink that'll give them energy. Mccafe is quick and affordable and that’s what people want and need. The fact that McDonalds offers a drive- thru option is great for people who are on the go and are looking for a coffee. It makes it more convenient for drivers and that’s what people are looking for, something that involves low to no action on their part. 

I recently went to the McDonalds that is right by our school on chambers street. For example this location is perfect because we have a college and a high school right next to a Mccafe and of course Tribeca is full of other busy business men and women. Consumers want diversity and not your average coffee from a street stand or a coffee that cost $4. Mccafe introduced a whole new coffee line now including smoothies as well. Mcdonalds has great customer service and the time it takes them to get your meal or drink is sixty seconds. I personally love their coffees and new smoothies; you can’t go wrong with a tasty and affordable beverage. 

Ch. 6 - Consumer Decision Making

The consumer decision making process includes five steps when buying a good or service. First step is you Need recognition. Need recognition can be faced with wanting something. When you’re hungry and you see McDonalds advertised on television your first instinct is to go and eat at McDonalds. Second step is Information search. When you go to a Mccafe and experience good customer service or you’ve heard from a family or friend how good their service is you want to go back again. Mcdonalds' logo "I'm lovin' it" also makes consumers want to visit and see if that logo is actually true. Third step is Evaluation of alternatives. This is when a consumer figures out what it is that they want and then break down their search. If you’re looking for a delicious, nearby and affordable coffee drink then Mccafe is the place to go. Fourth step is Purchase. Purchasing comes to play when you decide whether to buy or when, where, what and how to pay. These are all easy decisions to make when you go to a Mccafe because the fact that there are so many restaurants available and affordable makes your decision much easier. Last step is Post- purchase behavior. When you purchase a good you expect to be satisfied with the product or good you purchased. Mccafe’s number one goal is customer satisfaction. So of course once you drink any of their many coffee beverages you will be satisfied and your money will be well spent. Of course there are many other factors that come into play when a consumer is making a decision on what they should purchase. Other factors are social class, culture, demography, and also Maslow’s hierarchy of needs. 

Mr. Skinner who is the Chief executive of McDonalds said “Everyday affordability has become the most important thing. People are pinched everywhere. They should not have to feel pinched at McDonald’s”.

Ch 5- Developing a Global Vision

McDonalds has been using global marketing as a way to expand their company. McDonalds is the number one fast food company in many countries such as Argentina, India, Romania, Saudi Arabia, and turkey. McDonalds is also a multinational corporation. McDonalds in other countries is also different in appearance and within the food that they serve. In Paris, France they use lime green chairs, which is very different to the usual white or woodened chairs in America. In Britain they also serve freshly ground fair trade coffee. McDonalds is selling more than ever in the global market.  

McDonalds focuses on the global marketing mix and maintaining the “four P’s” throughout every country. Since it is a fast food restaurant the price remains the same for every country but of course you have to take the exchange rates into consideration. Their promoting is towards their target market which is children and young adults. For place (distribution) McDonalds is located throughout all seven continents. McDonald’s has over 32,000 locations in more than 100 countries around the globe. McDonalds’ product and promotion is reliable and is developing more and more every day. Their main purpose is to satisfy their customers.

Ch. 4 - The Marketing Environment

The new Mccafe's are different from your usual Mcdonalds.  Mcdonalds offers the environments component lifestyles. Instead of serving only burgers and French fries they produced a Mccafe that offers a wide range of low cost coffee. Mccafe is unique, trendy and appealing to young adults.  They have free Wi-Fi available for students and workers who want to log onto the internet and spend time on their work. The affordable low prices are also appealing and convenient for students who are on a budget and cannot afford to spend a lot of money on coffee. Mcdonalds also focuses on demography. They study peoples statistics such as age, race and location and focus primarily on where it would be best to locate a Mccafe. They are mostly target marketing the "Generation Y".  Mcdonalds is also concerned with the environment and societies health. In today's health conscious societies the introduction of a healthy hamburger is a great opportunity. They would be the first QSR (Quick Service Restaurant) to have FDA approval on marketing a low fat low calorie hamburger with low calorie combo alternatives. 

Ch. 3 - Ethics & Social Responsibility

McDonald's Vice President for Corporate Social Responsibility Bob Langert has been ranked among the 100 most influential people in business ethics by Ethisphere Magazine—a global publication dedicated to illuminating the correlation between ethics and profit.

“These individuals deserve tremendous praise for their efforts to advance the public discourse on issues relating to business ethics,” said Ethisphere Editor Stefan Linssen. “[They] represent many different industries and organizations—large and small, public and private—but what unites them is an unwavering commitment to promoting ethical best practices and stimulating corporate social responsibility.”

McDonalds always takes corporate social responsibility into consideration. They focus on the society’s welfare and well being. They gave us a new coffee line that is healthy and also affordable as a whole. “Every bean we grind at McDonald’s Australia is made using 100% Arabica coffee beans sourced only from Rainforest Alliance Certified farms in Brazil, Colombia and Costa Rica that meet strict environment and social standards.”

Ch. 2 - Strategic Planning for Competitive Advantage

Mcdonalds saw increasing demand in the gourmet coffee industry with competitors such as Starbucks and Dunkin Donuts. They already had a competitive advantage against Mcdonalds being that they're solely in the gourmet coffee market.  Both Starbucks and Dunkin Donuts increased other areas in the fast food market by introducing a lunch menu which directly competes with Mcdonalds' core business which is its lunch and dinner. Mcdonalds used their marketing development strategy and still kept their customers by introducing a new coffee line called McCafe.  By introducing these "gourmet" coffees to their already large customer base McDoanlds had a competitive advantage against these other more expensive coffee chains. It couldn't have come during a better time for  Mcdonalds to introduce their new coffee line during the of the recession in 2008 and 2009. During the recession people were trying to save their money and instead of going to Starbucks and Dunkin Donuts they turned to Mccafe.  Mcdonalds also used their marketing strategy by focusing on target markets such as Dunkin Donuts and Starbucks and  also maintaining mutually satisfying exchanges.  

My company

The company I chose is McDonalds. The reason why I chose this company is because it is worldwide known and it has exchanging offerings that satisfy the customer. McDonald's brand mission is to "be our customers' favorite place and way to eat."  The first McDonald's Restaurant opened was in Des Plaines, Illinois by McDonald's Corporation founder, Ray Kroc, on April 15, 1955.  McDonalds has a marketing concept where their primary goal is to maintain a social and economic organization that satisfies what the customer wants and needs.