Sunday, March 27, 2011


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:




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

Wednesday, March 16, 2011

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.”

Thursday, March 10, 2011

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. 

Thursday, March 3, 2011

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”.