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MACDONALDS-PLC

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maram abunaaja

on 21 April 2017

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Transcript of MACDONALDS-PLC

Product Life Cycle Of McDonalds
By: Jawaher Alotaibi
Maram Abunaja

Product Development
Introduction
Growth
Maturity
Decline
Outline
Maturity
During the Maturity stage organizations look for ways to make their products more appealing to the consumer that will maintain or increase their market share.
Maturity of McDonalds
McDonalds has matured a lot throughout the years. They went from having 25 items on their menu(mostly BBQ) to having a variety of items. When they just opened all they had were hamburgers, milkshakes, and fries. Today you can still get hamburgers and fries but you can also get soft drinks, chicken nuggets, snack wraps, ice cream ect. They have shown their competitors that they are better by introducing new products that still satisfy their costumers just as their old products did.
McDonalds in the 1960's
McDonalds 2015
Growth
This stage in the McDonald company life cycle is without a doubt the most crucial one. This stage was where most of the major changes happened (or started) that turned McDonalds into the famous, world wide company that it is today.
Name change in 1948, which brought along changes in products (and restaurant makeover).
"Look for the Golden Arches" campaign in 1960, and official logo in 1962.
The introduction of Ronald McDonald the clown in 1963. (They shortly after sold there millionth hamburger).
In 1972 Egg McMuffin was born when market research indicated that a quick breakfast would be welcomed by consumers. Five years later McDonald's added a full breakfast line to the menu.
First drive through in 1975- goal
was
to serve customers in 50 seconds or less.
Significant changes that helped McDonalds growth as a company
Also,
Catchy slogans for individual products for example; The big mac -"SAY THAT AGAIN!" ( ), Fish fillet- "the fish that catches your eye"
The "You Deserve a Break Today" in 1971 ( ) advertising campaign helped McDonald's reach all 50 states.
Introducing a number of characters to promote their products - "Fry Kids" introduced in 1987, "Happy Meal Gang" introduced in 1984
Decline
INTRODUCTION/BIRTH
McDonald's has been through frequent changes throughout it's years concerning it's products, price, place and promotion.

PLACE
Started with “The Airdrome” later on known as “McDonald’s Bar-B-Q” before it became just “McDonalds”
Began Franchising with about 700 restarants opened in the United States.
The first McDonald's restaurant outside the United States opened in Richmond, British Columbia.


It decreased the sale of McDonalds by 42 million dollar in USA.
After the release of SuperSize Me McDonald's modify their products and re-launch it as “New and Improved”
The biggest factor that caused McDonald's sales to take a massive dive is the release of the movie
Super Size Me.
Morgan was inspired to make this movie when two
overweight
girls from New York tried to
sue
McDonalds for their health conditions and McDonald's responded saying they have no
proof
to support their arguments.
Therefore, he ate McDonalds for 1 month for breakfast, lunch and dinner to prove the health repercussion .
PROMOTION
Golden Arches
Ronald McDonald

PRODUCT
Decided to create a simple menu of just hamburgers, cheeseburgers, french fries, shakes, soft drinks, and apple pie.
PRICE
[1955]--15 cents
[1964]--15 cents
[1968]--18 cents
[1974]--30 cents
[1979]--38 cents
[1984]--50 cents
[1987]--62 cents
[1990]--75 cents

DECLINE
Health Report After the Experiment
They add healthy and organic foods in their menu. They introduce salads, milk shakes, grill burgers and so on.
Release of their “Go Active” campaign
They changed the environment of their restaurants by painting bright colors to attract the customers.
They started giving better toys with the kid’s meal.
They add less oily food in their menu such as snack wrap.
McDonalds also stop selling super size portion in most of their restaurants.

DECISION POINT STAGE
They arrange place for children to run and play. Children get attracted towards the playground, so the parents have to bring them in McDonalds.
They also arranged competitions for schools in order to show that they are supportive towards the physical activities.
These are the process for how McDonalds tried to overcome the negative effects of the Super size movie on their reputation.
DECISION POINT STAGE
OUTCOME
They successfully made their reputation better as their sales are increasing every month.
In 2008 the global sales of McDonalds increases by 6.9%.Their total revenue in 2008 were 23.5 billion dollar cash returned to the stakeholders were 5.8 billion dollars in 2008.
To sum up it can be said that McDonalds was affected abundantly by the movie ‘Super Size Me’. That movie represented McDonalds as an unhealthy fast food chain.
But McDonalds usefully changed their reputation by introducing healthy and organic food by the side of burgers and fries.
Now McDonalds offer healthy foods to their customers and is now back on track.
1) Permanent Strategy:
McDonald's features several products on their menu that are permanent and do not change.
2) Temporary Strategy:
McDonald's regularly develops temporary products.
3) Local Development Strategy:
As MacDonald's has expanded internationally; it has created several products to meet consumer demand.
4) Local Adaption Strategy:
Mac also used this strategy to take the product and modify it to fit local tastes.


Product Development
Started with “The Airdrome” later on known as “McDonald’s Bar-B-Q” before it became just “McDonalds”
Began Franchising with about 700 restarants opened in the United States.
The first McDonald's restaurant outside the United States opened in Richmond, British Columbia
Full transcript