McDonald's is marketing convenience and more

And you thought fast food just had to be fast. That's not the only (or even the most important) benefit that McDonald's is marketing for competitive positioning in the hyper-competitive world of casual dining. With 37,000+ restaurants worldwide, the company is a powerful marketer and continues to innovate as part of its growth strategy.

In the UK market, McDonald's is now offering McDelivery. Via Uber, it will deliver meal orders to home or office, a service that has helped the company increase sales despite competition and other elements in the marketing environment. In fact, the company says orders for home delivery on 1/1/18 made that the busiest delivery day to date. Convenience is adding to the appeal of burgers, fries and other McD's menu items.

What else is McDonald's doing? It recently became a sponsor of the NatWest Six Nations rugby tournament, after ending its long-time Olympic sponsorship. The rugby sponsorship is being used to highlight upmarket burgers in its Signature Collection. These three burgers, featuring British and Irish beef, have new, trendy flavors compared with traditional McD's burgers. One is a BBQ burger, one is 'spicy' and one is 'classic' with smoked bacon, Cheddar cheese and a Brioche bun. So not only is convenience important, a menu with more variety--in tune with today's taste buds--makes a difference.

The latest in McDonald's marketing

McDonald's is always cooking up something new to market. It's just redone its McCafe brand look, as shown above, for a more upmarket, posher image. In fact, the fast-food chain will switch to all-sustainable coffee beans by 2020.

McCafe is challenging Costa and Starbucks and all the others selling gourmet and special coffees in the UK. Also, to be an integral part of local UK communities, the McDonald's site has a special section on grassroots football. Did you see McDonald's holiday advert, featuring Juliette the vintage wooden doll? Fun.

In addition, McDonald's just opened a fast-food outlet a few steps from the Vatican--touching off a controversy. In response to negative comments, the company announced: 'As is the case whenever McDonald’s operates near historic sites anywhere in Italy, this restaurant has been fully adapted with respect to the historical environment'.

BTW, McDonald's UK is highly social: 68m Facebook likes, hundreds of thousands of Twitter followers and lots of videos on YouTube. Working hard to engage customers!

Easy marketing £1 coffee

EasyCoffee is a growing franchised coffee chain under the Easy brand umbrella, soon to open dozens of new branches around the UK. The top brand attribute for Easy is (no surprise) value (£1 for a regular -sized coffee or tea). You know, Easy as in easyJet, the high-profile Easy-branded budget airline.

Here's the EasyGroup mission:

To manage and extend Europe's leading value brand to more products and services, whilst creating real wealth for all stakeholders.

Businesses or other organisations can have an EasyCoffee vending machine (above) on their premises to offer employee value-priced branded coffee. In other words, EasyCoffee's distribution strategy goes beyond consumer-oriented retailing into B2B marketing.

Which is a good thing, because competition in the retail side of coffee shops is intense, given the strong brands trying to increase market share (Starbucks, Costa and so on). Not to mention competition from other food service brands that make coffee a signature element in their outreach to certain customer segments (such as McDonald's with its McCafe coffees).

Speedier self-service at McDonald's

McDonald's UK wants to speed up ordering by having customers touch a screen just inside the entrance to its UK outlets. Tap to order meals or a coffee, insert a payment card and retain the receipt so you can collect your order by number. Those cashiers who previously staffed the till are now working behind the scenes or delivering meals to the table. Also being tested: delivery to home or office.

Amidst intense competition for the 'fast casual dining' customer, McDonalds needs to differentiate itself and refine its positioning. Self-serve ordering is one way to appeal to customers who habitually tap screens (smartphone or tablet) to order all kinds of products. The screen also updates the look of the outlets, adding a modern touch to a brand that has been in business for decades. The Aberdeen McDonald's, soon to open, is being promoted as 'high tech' because of its proliferation of screens and its table service.

Liverpool, interestingly, has a high concentration of McDonald's units, much higher than the national UK average.

Despite the high-tech updates, McDonald's UK continues its low-tech frequent-buyer reward scheme to encourage loyalty amongst coffee buyers. Every coffee cup comes with this peel-off loyalty card, good for a free coffee after the purchase of 6. This is an easy way to keep coffee lovers loyal without a lot of technology to slow down transactions.

Unilever faces changes in consumer behaviour

Butter is becoming more popular as consumers return to its taste and its natural ingredients. McDonald's, for instance, has experienced higher demand for its Egg McMuffin sandwich since switching from margerine to butter last year.

And this is only one of the changes in consumer behaviour that are challenging Unilever, which markets such spreads as I Can't Believe It's Not Butter, Stork and Flora.

Recent financial results show spreads lagging in revenue growth. Yet the company, which was created early in the 20th century by combining the soaps of Britain's Lever Brothers with the spreads of Dutch margarine maker Margarine Unie, isn't ready to simply sell the spreads division. With consumer behaviour changes in mind, it is putting new marketing efforts behind new products in its existing range, such as Stork with Butter.

Being a global corporation, Unilever has 400+ brands in markets on every continent. And it recently arranged to begin marketing again in Cuba, after an absence of several years. But the CEO sees a challenging year ahead as economics give consumers little reason to reach into their pockets and spend.

Colourful new look for McDonald's packaging

McDonald's is updating its take-away packaging for a modern, 21st-century look. 'Every day 69 million customers visit McDonald’s around the world and this new packaging will be a noticeable change', says the company's senior director of global marketing.

Notice the use of the Golden Arches as the M in McDonald's? And the updated colours that are bold, a little playful and positive? This new packaging was created by a global team of designers who were brought together for one week to brainstorm. Their ideas were then presented to consumers for input and reaction.

Finally, the core ideas were provided to a Chicago-based design firm for refinement. The result: Simpler, less frenetic graphics that instantly convey the brand and the affect behind the brand.

The new packaging is part of an ongoing marketing effort to generate higher sales for McDonald's worldwide.

McDonald's newest marketing ideas

NEW IN MARKETING AT MCDONALD'S

McDonald's is going hyper-local to satisfy food tastes in certain regions--and to reassure customers of the purity of its ingredients. It's also adjusting its marketing strategy to better differentiate itself and attract new customers, while maintaining the loyalty of current customers who are tempted by the many fast-casual alternatives.

On the McDonald's Japan site, you can see a photo of the newest sandwich, a 'burger with an egg on top' that features cheese from the region of Hokkaido plus a strip of bacon and a dab of secret sauce. Not only does this product introduction fit with changing consumer tastes--such as a preference for eating locally-produced foods--it also fits with a seasonal moon-viewing festival in the autumn, when round-shaped foods are in favour.

Another new marketing idea for McDonald's is table service. After experiments in France, Australia and other nations, McDonald's is testing in-restaurant service in Manchester. The UK market is a bright spot in the McDonald's global empire, because sales continue to increase in the UK even as they've plateaued in the US, where competition is extremely intense and other casual-dining chains are growing quickly.

McDonald's knows that many of its customers are mobile-savvy, so it's preparing its mobile ordering and payment strategy for more convenience and speed in China, among other markets.

Can new McDonald's CEO bring fresh ideas to fast food?

McRib sandwich, a limited-time menu item that's a cult favourite in UK and US markets

Under Steve Easterbrook as CEO, McDonald's UK has reinforced a more local brand positioning and tested new products and promotions for the changing customer profile.

Now Easterbrook is moving to America to become CEO of the entire McDonald's business, which faces significant challenges such as intense competitive pressure, overall sales declines and increased customer interest in healthy eating.

Many of the innovations that helped McDonald's build sales in the UK may be implemented across multiple markets. For example:

• Crowdsourcing new products. McDonald's asked customers to build their ultimate beef burger, and then featured the 5 winning "My Burger" product ideas during autumn of 2014.
• Increasing transparency about food sourcing. To help customers understand what's in McDonald's meals, it established a special section on its website called 'What Makes McDonald's?' In addition to posting videos about agriculture and other sources of production, McDonald's invited questions from the public. This is also being done at McDonald's Canada.
• Healthier eating. McDonald's UK encourages healthier eating with 'Free Fruit Fridays'. Once a month, children get a free bag of fruit with the purchase of a Happy Meal.

Easterbrook sees potential in marketing meals customised for each customer: 'People’s desires are changing. They want to be treated as individuals, not as numbers'.

McDonald's UK joins the twittersphere

Now in the twittersphere: McDonald's UK, where hash browns have been more popular than hashtags--until this week. McD's UK Twitter account has posted more than 50 tweets and attracted more than 500 followers in only three days. 

In addition to mouth-watering product photos, McD's UK is tweeting for Throwback Thursdays and--of course--following McD's Twitter accounts for Europe and elsewhere around the globe.

Two years ago, McDonald's US took a wrong turn with its Twitter strategy by inviting consumers to post tweets about favourite McDonald's experiences and products with the hashtag #McDStories. Instead, consumers posted negative comments, forcing the company to end that social media campaign. Recently, McDonald's appointed Ronald McDonald as one of its social media spokescharacters. 

McDonald's UK has been one of the multinational's bright spots in a crowded and competitive fast-food marketplace. Looking ahead, the chief exec of McD's UK plans to continue focusing on value and responding to what customers need and want: quality food and more menu choices.

 

What's cooking at McDonald's

After its summer success at the London Olympics, when the McDonald's on-site restaurant served up 2.5 million meals, the restaurant chain has had mixed global sales results more recently. Now it's looking to UK high street locations and family purchases for higher growth in 2013.
 
The recent horse meat scandal hasn't been a problem for McDonald's--in fact, it's an opportunity for the chain to showcase its reliance on 100% quality British and Irish beef suppliers. Because of these supplier ties, Jill McDonald, boss of the company's North Europe region, is confident about the all-beef burgers served up in UK restaurants.

McDonald's has made some changes to its Happy Meals--changes that should please parents. 'I don’t think our customers have noticed, but in our Happy Meals there’s half the salt there was back in 2000', McDonald says.

Replacing the free toy with a free book, at least temporarily, is another change. Working with the National Literacy Trust, the company is giving away a book with each Happy Meal during the current promotion with DK Books, part of its goal to distribute 15 million books to children by the end of 2014. (Last year, McDonald's distributed 9 million books in a pilot programme.)

McDonald's has 414,000 Facebook likes; its YouTube channel has attracted more than 15 million video views during the past 7 years. Increasingly digital, one element of its mobile marketing is an app that locates nearby McDonald's restaurants, provides nutrition info and shows the latest promotions.

McDonald's markets to the world

Every continent has a McDonald's restaurant, and more are on the way. By 2013--that's just a few months away--McDonald's will have 2,000 locations in China and more than its current 3,300 in Japan. The company is also expanding in India, where it will soon open all-vegetarian restaurants to cater to local tastes. McDonald's has operated in India since 1996, always avoiding beef, but the addition of vegetarian-only locations is a new approach for the global fast-food giant.

One of McDonald's biggest growth areas, however, is France. By giving French customers what they like (such as smaller sandwiches, table service, specialty cheeses and so on), McDonald's has increased the size of the average transaction in France well above the level of the average transaction in its US restaurants.

Speaking of the world of McDonald's, the fast-food firm has been bringing the world to UK restaurants with the return of the "Tastes of the World" menu. Above, the Spanish Grande.

McDonald's caters to the budget-conscious

Iceland's financial difficulties have caused McDonald's to close its three restaurants there at the end of this week. The company is unlikely to reenter the market for some time because high costs have pushed profit margins to unacceptably low levels.

Yet overall, turnover at the company's European and Asian restaurants is increasing, largely because of the popularity of specially-priced menu items.

Cash-strapped consumers are still eating out on a budget. The Times Online reports that sales of McDonald's Extra Value Meals during the past three months increased by 8.6 per cent compared with the same period in 2008.

Discussing the positive results, the Chief Executive of McDonald's UK tells the Telegraph:

What was encouraging was about three-quarters of this increase was down to more customer visits, not higher prices. The reality is that consumers are still finding life tough, and they are unforgiving of price rises.

More European customers are trying breakfast at McDonald's and visiting McCafes for gourmet coffee, boosting market share, revenue and profits. Clearly, the company's strategy of growth by increasing sales per customer and restaurant -- rather than by opening new restaurants -- is a cost-effective approach to today's financial climate.

McD's targets students

McDonald's UK knows that students often need to research companies for class projects--why shouldn't it be a McD project? The company has special web pages for students and instructors, with downloadable information packs about customer service, marketing, financials, franchising and entrepreneurship, stock control, recruitment and work experience.

The info packs have a surprising amount of detail. In the 'Finance at McDonald's' info pack, for example, is an illustration of how to calculate ROI. The pack also mentions McD's long-term ROI targets for new restaurants and restaurant renovations.

The 'Marketing at McDonald's' info pack is a mini-tutorial on marketing, including a brief glossary defining benefits, brand, market research, marketing mix and other terms. I was particularly interested in the mini-SWOT analysis (see below). I'd say that providing good material for school projects is an example of how McD's keeps its brand strong and relevant.

• Strengths: The brand, and detailed market research to create the right marketing mix.
• Weaknesses: McDonald's has been around for a long time (therefore important to keep innovating).
• Opportunities: Increasing numbers of customers looking for food that is served in a quick and friendly way.
• Threats: New competitors. Changing customer lifestyles.